HomeMy WebLinkAboutAgenda Work Session 10-09-07 PacketZ:\Council Packets\2007\WS10-9-07\Agenda Work Session 10-09-07.doc Last Printed 10/5/2007 2:34:20 PM
NOTICE OF THE
WORK STUDY SESSION OF
THE FOUNTAIN HILLS TOWN COUNCIL
Mayor Wally Nichols
Councilmember Mike Archambault Councilmember Keith McMahan
Vice Mayor Ginny Dickey Councilmember Henry Leger
Councilmember Ed Kehe Councilmember Jay Schlum
TIME: 5:00 P.M. – 7:00 P.M.
WHEN: TUESDAY, OCTOBER 9, 2007
WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS
16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ
ALL WORK-STUDY ITEMS LISTED ARE FOR DISCUSSION ONLY. NO ACTION CAN OR WILL BE TAKEN.
The primary purpose of work session meetings is to provide the Town Council with the opportunity for in-depth discussion and
study of specific subjects. Public comment is not provided for on the Agenda and may be made only as approved by consensus
of the Council. In appropriate circumstances, a brief presentation may be permitted by a member of the public or another
interested party on an Agenda item if invited by the Mayor or the Town Manager to do so. The Presiding Officer may limit or
end the time for such presentations.
WORK STUDY AGENDA
1.) CALL TO ORDER AND ROLL CALL – Mayor Nichols
2.) PRESENTATION AND DISCUSSION of the storm water management impact fee concept by
AMEC Technical Director Ed Latimer.
3.) ADJOURNMENT.
DATED this 4th day of October, 2007.
Bevelyn J. Bender, Town Clerk
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 837-2003 (voice) or 1-800-367-8939
(TDD) 48 hours prior to the meeting to request a reasonable accommodation to attend this meeting or to obtain agenda information in large print format.
Supporting documentation and staff reports furnished the council with this agenda are available for review in the Clerk’s office.
User-Fee Revenue Through A Stormwater Utility: Concept OverviewEd Latimer, PhD, PE, CPSWQTechnical Director – Water ResourcesAMEC Earth & Environmental, Inc.October 2007
Upcoming SPAC andTown Council DecisionDoes it make sense for the Town to establish a user-fee-based funding mechanism to proactively meet growing stormwater regulatory requirements and stormwater management needs of thecommunity?
Presentation Overview¾Town’s Stormwater Management Program¾The Stormwater Utility Concept4 Development/Implementation Tracks¾Closing Thoughts¾Questions/Comments
AMEC STORMWATER UTILITYWORKArizona and other communities that implemented
•In 1987, Congress amended the CWA to add stormwater pollution prevention to the NPDES program in a two-phased approach•The Town became regulated as a Phase II Stormwater MS4 community in March 2003•This is a federally mandated, but unfundedpermit-based programStormwater Regulations
Small MS4 General Permit6 Minimum Control Measures1.Public Education and Outreach2.Public Involvement3.Illicit Discharge Detection and Elimination4.Construction Site Runoff Control5.Post-Construction Runoff Control6.Municipal Good-Housekeeping
Mandatory Stormwater Management Program•Under each MCM, there are mandatory and recommended requirements•Renewed/updated every 5-years, current program good through 2007.•Annual reporting requirements•Includes adopting and enforcing new ordinances, plus increased construction & post-construction inspections
The Truth of the Matter...1.Municipal stormwater management has become an integral community service.Stormwater Annual Maintenance•Wash Clean-up$ 153,021.00•Dam Inspections$ 8,569.00•Bridge Inspections$ 3,000.00•Street Sweeping$ 158,957.00•Public Works staff time$ 71,250.00•Street Dept. staff time$ 68,616.00•Code Enforcement staff time$ 20,000.00•Stormwater educational program/website$ 11,000.00•GIS Stormwater map$ 5,000.00•Confined spaces & chemical application training $ 15,000.00Total $ 514,413.00
The Truth of the Matter...2.Permit-required Stormwater Management Program, plus O&M funding of existing and future stormwater infrastructure, an ever-increasing financial burden to the Town.3.Environmentally Friendly Pollution Prevention ÙQuality of Life
When Does a StormwaterUtility Make Sense??9Stormwater Challenges are Real and Unresolved9Competing priorities for limited revenue9Stable, Equitable Funding Can be Created that Results in Real Benefits
NeedsResources… or when needs are greaterthan available resources
What is aStormwater Utility?•A funding method•A program concept•An organizational entityMix of methods
Stormwater Utilitiesin the U.S.1975 1985 1995 2000 201012004002,500A growing Trend!
Why are stormwater utilities on the rise? StableDedicated enterprise fund; does NOT rely on, or compete for, general funds;AdequateProper preparation and rate study should provide adequate program funding;FlexiblePrimary source for entire program; can credit good actors; account for environmental costs;EquitableBased on contribution to system rather than property value.
StableTax-basedUser fee basedMaximum possible programTime$SAFE
AdequateFor every $1 per month per house, a utility can generate about $20 to $50 per acre per year.16% Meet all needs44% Meet most needs34% Only urgent needs6% InadequateStormwater Program Costs0$100$150$200$50IncidentalIncidentalMinimumMinimumModerateModerateAdvancedAdvancedExceptionalExceptional$/acre/yearSAFENational Average = $3.40 per ERU
Flexible•Primary source for the wholeprogram•Other fees to enhance equity•Credits to encourage good performance•Can be geographically based•Can take into accountenvironmental costsSAFE
EquitableI want to pay for stormwater on the basis of what I contribute to runoff, not my property’s value or an unfair fixed feeSAFE
Model forStormwaterUtilitiesPublic EducationProgram DevelopmentFinanceBilling Database
The two basic political rulesfor utility success!#2“Bring me in early -I’m your partner”versus“Bring me in late -I’m your judge”#1Insert a group of citizens between yourself and the decisions that are made
Public Education Track•Endorsed Plan•Stakeholder Involvement•General Education & AwarenessMost failed stormwater utilities were doomed prior to implementation due to lack of public and political backing !!
SWAC Makeup?•Developers - Regulatory and Financial•Environmentalists - Water Quality, Habitat•Neighborhoods - “My Drainage Needs”•Clubs - Participate, “Stake”•Social Classes - Costs, Locations, Jobs•Tax Exempts - Utility vs. Tax•Commercial/Industrial - Costs, Credits•Designers - Technical Criteria and Procedures
Six Main Issues•What are we spending and doing now in stormwater?•What are the significant problems, issues and needs we face?•How have others solved them?•How should we solve them?•What will it cost?•How should we pay for it?
The Policy Paper ProcessDraft Policy PaperDiscuss PolicyPaperDraft Policy StatementDiscuss Policy StatementAgree on Policy Statement
Program Development Track•Evaluate existing program•Problems, needs and goals•Priorities•Cost of service•Organization•Implementation plan•Drives Rate•Due Diligence
Finance Track Rate Methodologies•Impervious Area•Impervious Area + Gross Area•Gross Area with Intensity of Development or Runoff Factor•Other (e.g., # of rooms, water use, flat fee, sector-specific fee, etc.)Most Common
Common Fee Calculation= 1 ERU= 40 ERUs (less credits)
Closing Thoughts1.Consider selecting the stormwater management monthly impact fee optionfrom the Sept. 2007 Revenue Enhancement Analysis for further assessment/study.
Closing Thoughts2.Perform a Stormwater Program Funding Study (2-3 months) to:a)Approximate and benchmark the Town’s current and projected stormwater-related costsb)Assess whether or not the Stormwater Utility Concept merits further consideration/study, and make necessary recommendations.c)Initial consultations with both the Water Company and Sewer District.
Closing ThoughtsPotential Timeline9January 2008 - March 2008: Perform Stormwater Program Funding Study9Include study recommendations in the Town’s FY08/09 Operating Budget9July 2008 - February 2009: Perform a Stormwater Utility Feasibility Study, to include a SWAC and Public Outreach
Closing ThoughtsPotential Timeline9Include (if necessary) the SWU Feasibility Study recommendations in the Town’s FY09/10 Operating Budget9July 2009 – June 2010: Implement Stormwater Utility9July 2010 – Begin invoicing and revenue collection
QUESTIONS / COMMENTS