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Chapel Hill – June 23, 2005 Scott Bryant, PE – JEWELL Engineering Consultants

Chapel Hill – June 23, 2005 Scott Bryant, PE – JEWELL Engineering Consultants. Managing Stormwater Utilities for Results. Stormwater Issues. Flooding hazards. NPDES stormwater rules. Basinwide Rules. TMDLs. BMPs. Nonpoint source pollution. Watershed restoration & management.

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Chapel Hill – June 23, 2005 Scott Bryant, PE – JEWELL Engineering Consultants

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  1. Chapel Hill – June 23, 2005Scott Bryant, PE – JEWELL Engineering Consultants Managing Stormwater Utilities for Results

  2. Stormwater Issues Flooding hazards NPDES stormwater rules Basinwide Rules TMDLs BMPs Nonpoint source pollution Watershed restoration & management Drainage infrastructure Public awareness & involvement Water resource & ecological protection Quality of life Water supply protection

  3. Framework for a Stormwater Solution

  4. Overview * Utility 101 * NC Utilities * Management Lessons Learned

  5. Basic Options for Funding the Stormwater Program • 2 key primary funding methods • General funding (tax based) • Utility funding (user fee based) • Supplemental funding can come from… • Plan review fees • Site inspection fees • Interest earned on idle funds • A few others

  6. A Fee for Stormwater? A fee for stormwater is a new concept for many!

  7. Stormwater Utility must be… • > Allowed by state law, • > Desired by local decision makers, & • > Accepted by community ratepayers.

  8. The Stormwater Reality Recently in the news regarding proposed utilities: “It’s nothing but a tax increase, and I can’t go along with that. We have to live within our means.” “We’re going to pay for it one way or the other. It’s either establish the fees or take money out of the (city’s) general fund.” “If I vote against this resolution will the EPA come down and arrest me?” “It’s going to move (our city) into the next level of stormwater management.”

  9. Willingness to Pay? • Citizen perception of free services in past • How much would the typical citizen in your community be willing to pay for the “new” stormwater services? • Utility fee raises level of service expectations

  10. Basis for Stormwater Fee Greater Stormwater Runoff & Pollution Greater Impact to Receiving Waters More Impervious Area

  11. Basis for Stormwater Fee Two customer billing classifications typical • Single-family residential (SFR) • Non-single-family residential • Fairness and equity in fee structure to cover public program cost of service • Majority of revenue often from Non-SFR class • Commercial/industrial • Public streets and roads (to bill or not to bill?)

  12. “Show Me the Money”* I = 50% I = 20% *From the movie, “Jerry Maguire”

  13. SFR Levels of Imperviousness • What is the “typical” SFR parcel? • ERU, ESU, other • Nationwide average ~ 2,500 sq ft Based on over 53,000 SFR parcels

  14. Tiered Rate StructuresExample: Single-Family Residential Tiers

  15. Tier I SFR Example Parcel ID xxxx-0002-052 Parcel Area = 7,567 sq ft Impervious Area House = 1088 sq ft Paved Drive = 515 sq ft Total Impervious = 1603 sq ft (21.2%)

  16. Tier II SFR Example Parcel ID xxxx-0003-024 Parcel Area = 12,234 sq ft Impervious Area House = 1147 sq ft Shed = 302 sq ft Paved Drive = 1096 sq ft Total Impervious = 2545 sq ft (20.8%)

  17. Tier III SFR Example Parcel ID xxxx-0702-069 Parcel Area = 13,618 sq ft Impervious Area House = 2,284 sq ft Shed = 119 sq ft Paved Area = 715 sq ft Total Impervious = 3,118 sq ft (22.9%)

  18. Commercial Property (or any Non-SFR Property) Parcel ID xxxx-0001-009 Parcel Area = 453,461 sq ft Impervious Area Building = 98,652 sq ft Paved Lot = 269,558 sq ft Total Impervious = 368,210 sq ft (81.2% imperviousness) Stormwater Utility Fee = 368,210 sq ft/2,543 sq ft per ERU or 145 ERUs (for example)

  19. Administration Program mgt, utility (if applicable) customer service, billing, indirect costs, etc Water Quality Monitoring programs, BMP inspections, illicit discharge program, NPDES MS4 permit compliance, TMDL programs, etc. Planning & Engineering Plan review, master planning, floodplain mgt, GIS, system inventory, technical guidance, capital project design, consultant management, etc. Public Education Education, outreach, and involvement programs System Operation & Maintenance Sweeping, infrastructure maintenance, open channel maintenance, litter collection, drainage complaint response Capital Improvement Program (CIP) Debt Service, if applicable Fund Balance/Retained Earnings Use should mesh with program strategy Stormwater Program Cost Centers

  20. Utility 101 NC Utilities Management Lessons Learned

  21. Greensboro’s Projected Program Expenditures (10 years into Utility - Fiscal Year 04-05) Capital Improvement Program Contributions 31% Street Cleaning & Litter/ Floatables Control 19% Indirect 4% System Maintenance & Ops Mgt 26% Administration 4% Water Quality 5% Planning & Engineering 10% Public Education 1%

  22. Summary Stats for Local Stormwater Utilities In North Carolina - April 2004 Survey - Charlotte, Durham, Fayetteville/Cumberland, Greensboro, Raleigh, Wilmington, Wilson, Winston-Salem

  23. Annual Revenue - NC Utilities

  24. Expenditures – NC Utilities

  25. Full Time Staff – NC Utilities Total FTEs per Square Mile of Service Area

  26. Staff by Function – NC Utilities

  27. Utility 101 NC Utilities Management Lessons Learned

  28. Education, Education, Education Future Leaders/ Stewards Define the “public”

  29. A little “humor” may be helpful… Ad sponsored by the Texas Natural Resource Conservation Commission & U.S. EPA

  30. Program Leadership + Vision + Strategy + Action Vision without action is a daydream; Action without vision is a nightmare. - Japanese proverb

  31. Understand the “MEP Mandate” Organizational Resources ($, People, Other Assets) MEP Legal / Regulatory Mandates Political Will

  32. Get a Good Lawyer • Place utility on a solid legal foundation from day one. • Hard lessons will be learned through a lawsuit • Greensboro & Durham Cases • liability could have exceeded $28 MM in Greensboro • Legal action is distraction for program, staff, and community

  33. Understand System Anatomy Stormwater pond Manmade pipe system Open stream channel Inlets Culvert system

  34. Focus on the Customer • Think like a business in providing excellent customer service • Public staff should understand their jobs exist to serve the rate-paying customers. • Value creation. • Recognize only time will help some accept the utility.

  35. Pay-as-you-go Provides time to evaluate real needs and find optimal solutions Interest cost savings Allows for future borrowing Allows more flexibility in funding operating costs More limited # and scope of capital projects Debt financing G.O. or Revenue Bonds G.O often cheaper, but require vote If have a number of problem areas with good capital solutions identified Can often show more improvements in lesser time Ability to fund larger projects If revenue stream stable and will support Pay debt service from annual revenue; reduces pay-as-go funding Pay-as-You-Go v. Debt Financing Key = Financing should mesh with stormwater program strategy

  36. Develop & Implement a CIP Rating System -Maximize objectivity in use of limited public funds -Develop rating criteria that is important to the community -public safety -regulatory requirements -ability to fund -ability to permit/mitigate -Keep database of projects -Make public

  37. Balanced Program Measurement • 4 broad areas (or perspectives) – Kaplan & Norton • Customers (how do we appear to customers?) • Financial performance (budget v. actual, etc) • Learning & growth (how do we change & improve?) • Internal processes (what do we need to perform & excel at?) • Very appropriate for public/nonprofits • Recall strategic context Measures should flow from strategy

  38. Tracking Progress in Receiving Waters

  39. Tracking Progress in Receiving Waters Ambient water quality monitoring results - WQI

  40. Sound Utility Fee Crediting Policy *Understand major revenue and cost (expenditure) centers for the public stormwater program *Structure policy ensuring financial solvency to satisfy ongoing public operational and capital needs *Provide fair and reasonable incentives for ratepayers that adopt proper controls *Provide awareness of the fee-crediting program

  41. Seek to Leverage Local Resources • Availability of state and federal grant programs • External funding support can help keep rates lower and/or defer the need for a rate increase • Demonstrates good financial stewardship • Partner with nearby municipalities/towns/counties to extent possible • Learn from the experiences of others

  42. Thoughtful Vision & Focused Plans Program Implementation Visible Results Community motivated Value Recognized “Stormwater Virtuous Cycle” People & Program Stakeholders Quality of life

  43. Scott Bryant, PE – JEWELL Engineering ConsultantsOffice Tel 336.996.9974Email sbryant@jewellengr.com Q & A The ultimate test of management is performance. -Peter F. Drucker

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