HomeMy WebLinkAboutAgenda - 05-04-2004-5lORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 4, 2004
Action Agenda
Item No. _~~~
SUBJECT: Billing and Collection of Fees for Proposed Town of Chapel Hill
Stormwater Utility
DEPARTMENT: Manager/Revenue
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
04/26/04 Town of Chapel Hill Agenda
Item on Proposed Stormwater Utility
INFORMATION CONTACT:
Rod Visser, ext 2300
Jo Roberson, ext 2725
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider giving conceptual approval to a request from the Town of Chapel Hill
that the County bill and collect on the Town's behalf fees that would be associated with the
creation of a Town stormwater management utility.
BACKGROUND: At their meeting on April 26, 2004, the Chapel Hill Town Council endorsed
the creation of a utility, to be funded through a series of fees, that would provide a stable source
of revenue to fund a comprehensive stormwater management program within the Town's
jurisdiction, The purpose and functions of that stormwater utility are outlined in the
accompanying agenda materials from that Town Council meeting,
In anticipation of the passible creation of this utility, Town staff approached County staff in
Summer 2003 to determine the feasibility of the County's undertaking billing and collection of
stormwater fees on the Town's behalf, Following extensive coordination with the Town staff
and their consultants, County staff have determined that it would be possible for the County to
perform this service, provided that additional staff and financial resources are made available
and funded entirely by the Town, For many years, there has been substantial cooperation
between the Town and County on billing and collection of fees and taxes, The County collects
real, personal, and motor vehicle taxes for the Town, and the Town collects some of the
County's revenue from schocl impact fees and the occupancy tax, The County's billing and
collection of stormwater fees would continue the tradition of mutual support and cooperation
that exist between the County and the Town.
If the BOCC concurs with the recommendation of the County billing and collecting Town
stormwater fees, staff would plan tc bring back by June 2004 an interlocal agreement for review
and approval by the BOGC and Town Council to govern the terms of the billing and collection
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arrangements, Some of the major elements that County staff would propose to incorporate into
such an interlocal agreement are listed below:
• Billing will be established with ownership record of January 1 of each given year.
Expectations are that the database provided by Chapel Hill would use the same
ownership/existence timeframe,
• All matters related to the calculation of impervious surface and fee amounts owed are
entirely the responsibility of the Town of Chapel Hill.
• The cost for billing exempt properties, persons qualifying for homestead exemptions,
disabled veterans, etc. (i.e. for those entities that would normally not receive an annual
property tax bill) would be funded by the Town of Chapel Hill.
• Expectations are that the data set from Chapel Hill will be compatible with the County
Assessor's computerized billing records, Chapel Hill will bear responsibility for resolving
non-matches,
• Expectations are that any "corrections" to the record after billing will be handled by
Orange County through the written direction of the Town of Chapel Hill,
• Town of Chapel Hill will designate to the Assessor and Revenue offices contact
individuals within the Town's employ to deal with citizen complaints or concerns that
relate to stormwater utility structure, objectives, activities, etc. and to calculations of
impervious surface, resulting fees due, and the like.
• The Town's articulated intention to conduct and maintain an extensive
education/outreach process for their citizens will, prior to the first cycle of billing, explain
the rationale for fees and make it clear that this is a Town program, not a County
program.
• The Town will provide training to Orange County employees of the Assessor and
Revenue Departments regarding the rationale and objectives for the stormwater utility
and the need for the fees (this will enable County staff to mare competently handle the
initial contacts involved with any citizen questions/concerns, before those are handed off
to Town staff).
• Orange County will provide the billing, receipt and distribution of funds, but will not be
responsible for pursuing delinquent payments through any enforcement measures that
are or may become statutorily available,
• The intent would be for the County to include the Chapel Hill stormwater fee as a
separate line on the annual property tax bills, which are typically mailed in late July or
early August. The Town will be responsible for ensuring that complete and accurate
billing data are provided to the County and/or its vendor in adequate time to meet this bill
mailing schedule. The Town will be responsible far the cost of creating and mailing any
separate bills that cannot be included in the regular annual property tax bill mailing,
• Upon notification from the Town, County staff will make and post the necessary notes
within the Revenue computer system to indicate that a particular account is being
pursued by Town representatives through any enforcement mechanisms that are or may
become statutorily available.
• Any additional County expenses incurred after the initiation of billing by Orange County
will be reimbursed from the Town of Chapel Hill upon appropriate documentation of
County costs incurred.
• Should the County at some point in the future determine to implement a new or
upgraded taxation and records software system, the Town will be responsible for bearing
the cost of making its stormwater management database systems operationally
compatible with the County's system,
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• The Town of Chapel Hill will handle direct billing of all properties within the Town limits
but outside of Orange County jurisdiction (i.e. the portion of Town that lies in Durham
Gounty).
• Priority of distribution of funds collected and applied to outstanding bills will be: 1) All tax
and related costs, 2) fees billed and owed Orange County, 3) Town of Chapel Hill fee.
If the BOCC approves conceptually of this arrangement at this meeting, staff also recommend
that the BOCC approve the immediate creation of a permanent Tax Clerk position to work
specifically with the billing and collection of the stormwater fees. The Town of Chapel Hill would
fund all costs related to the position. Approval of the position now would allow the Personnel
Department to appropriately classify and recruit for the position, and permit the Assessor and
Revenue Departments to quickly hire and train the new staff member. It would be important to
accomplish this as soon as possible and before stormwater fees would be billed on the
County's FY 2004-05 real property tax bills that will be mailed by early August 2004.
FINANCIAL IMPACT: The estimated casts for the County to perform this service (if billing is
included on County tax bills) on behalf of the Town of Chapel Hill for FY 2004-05 would be in
the range of $60,000 - $70,000, with all of that cost being funded by the Town.
RECOMMENDATION(S): The Manager recommends that the Board:
1) Provide conceptual approval to the Town's request that the County bill and collect its
stormwater fees;
2) Direct staff to develop, in conjunction with Town staff, an interlocal agreement to cover
billing and collection of stormwater fees, which agreement would be scheduled for review
and approval by both the BOCC and Town Council by .June 2004; and
3) Authorize the creation of a new permanent full-time Tax Clerk position.
Introduction
i~GM®RANDUM
TO:
FROM:
SUBJECT:
DATE:
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AGENDA #7
Mayor and Town Council
W. Calvin Horton, Town Manager
Recommended Program and Budget for Proposed Stonnwater Management Utility
April 26, 2004
This report discusses the Manager's recommended program and budget recommendations for a proposed
Town Stormwater Management Utility.
No formal Council action is being requested at tonight's meeting; however, these recommendations are
an important part of the Manager's Recommended Budget for 2004-05.
INTI2ODi1CTION
Key elements included in the Manager's recommended stormwater management program are:
® Implementation of stomrwater management activities necessary for compliance with existing and
new State and Federal regulations;
® Development of a master plan in year one intended to identify and schedule program activities in
future years;
® Continuation and enhancement of stormwater management services currently being provided by the
Town;
® Provision of stable and sufficient funding for capital improvements and drainage assistance projects;
• Provision of an emergency reserve fund;
® Reimbursement to the Town General Fund for' Utility development costs;
® Identification of existing General Fund costs that could be billed to the Utility;
e Establishment of broad-based public education and information activities to maximize community
involvement in managing stormwater;
® Minimal increases in Town staff to support the i.J61ity program, with emphasis on using contract
services;
® Establishment of an Equivalent Rate Unit (FRET) of 2000 square feet of impervious surface area and
an annual Utility fee of $45.00 per ERU;
• Approximately 90% of Chapel Hill properties involve three or less ERUs; and
® Annual program budget between $2 and $2.5 million over first five program yeazs.
The following materials are included with this report;
Summary of a utility-based stonnwater management program recommended by the Tawn
Manager
httpa/townhall.townofchapelhill, org/agendas/ca040426/7-Stormwater%20LJtility%204-26-.. 4/26/2004
Introduction Page 2 of 11
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• First yeaz operating budget for the Manager's recommended program.
• Draft Ordinance establishing a stormwater management utility and advisory board.
• Summazy and responses to questions and comments from the March 24, 2004 Public Forum.
• Advisory board recommendations.
BACKGROUND
On March 24, 2004, the Council held a Public Forum to discuss and receive public comment nn the
proposed establishment of a stormwater Management Utility that would provide a stable source of
revenue to fund a comprehensive stormwater management program. The comments and questions raised
at the Public Forum, with our responses, are summarized in Attachment 8,
Materials regarding the proposed stormwater management utility have been distributed to ail Town
advisory boards for comments and recommendations. We have received comments from the Planning
Board, the Transportation Board, the Community Design Commission and the Historic District
Commission. Attachment :3 includes comments and recommendations from Town boards and
commissions. Attachment 9 includes correspondence we have received regarding the proposed
stormwater management utility.
The Council requested suggestions from the stormwater Urility Policy Review Committee regarding the
makeup and responsibilities of an advisory board to be established concurrently with the U61ity. The
Policy Review Committee has not provided us with its recommendations to date. We will include the
Committee's comments and recommendations with future materials presented to the Council on this
matter.
Reports and background materials previously provided to the Council for consideration regazding the
proposed stormwater management utility can be viewed on the Town's web site.
For past reports to the Town Council:
http_//townhall.townofchapelhill.or stormwater/stornlwtr_utili .htmlreports
For supplemental background information:
http_//townhall.townofchapelhill ore/stormwater/stormwtr_utili_ty_.html#background
DISCUSSION
Based on Council discussions and comments from citizens and advisory boards, we have developed the
following recommended stormwater management utility program and operating budget The
recommended program would focus the first year of operations on program organization, master
planning and public education/involvement activities, and would reimburse all of the Town's sank costs
for [Jtility development work and materials in the first year of the utility operation,
MANAGER'S RECOHR)vIENDED PROGRAM
The recommended program is consistent with the Policy Review Committee's recommended top
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Introduction
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priority of master planning.. However, it would defer other program elements and activities to future
years in accordance with the program master plan
The key elements included in year one of the Manager's recommended program are:
• A stormwater management program master plan would be developed to identify program
activities in future years, and to establish an implementation schedule including
associated resource needs and costs.
• A comprehensive public education and participation plan would be developed to provide
outreach services.
• Existing stormwater management services would be continued and required new services would
be provided.
• A portion of the utility revenue would be reserved to establish a capital improvements project
fund account (proposed at $60,000 in the first year).
• A portion of the utility revenue would be reserved to establish an emergency fund account
(proposed at $50,000 in the first yeaz),
• A portion of the utility revenue would be reserved to establish a 10% fund balance for
operational reserves and to meet Town accounting standards ($188,000 in the first year).
• A portion of the utility revenue worrld be used to reimburse the General Fund for all costs
associated with the development and establishment of the Llrility Attachment 4
provides a summary of these reimbursable casts to date, totaling approximately
$402,000.
• The utility would be charged for costs incurred by the Town for providing stormwater
management services. Based on the Consultant's study, the Town's estimated annual
billable cost for stormwater management is approximately $779,000. Attachment 5
provides a detailed summary of current General Fund costs that we believe should be
paid by the stormwater Management Utility. The summary identifies and differentiates
costs that are either partially billable or fully billable.
A fee rate of $45.00 per Equivalent Rate Unit (ERU) per year would be implemented, based on
an ERU area of 2000 square feet.. The first ERU would include 200-2000 square feet of
impervious surface area, and there would be no cap on the number of ERUs per property.
Each property owner would pay a fee based on the total square footage of impervious
surface azea found on the property, divided by 2000 square feet, to determine the number
of ERL7s present on the property.. The number of ERUs multiplied by the fee rate per
ERU would yield the annual utility fee assessed to the property owner.
Attachment 6 is a summary of the number of ERiJs (22,088) found on single-family and
two-family residential properties in Chapel Hi1L The distribution of properties and
associated ERUs shows that approximately 90% of properties would include three or less
ERUs. This attachment also shows the number of ERUs by land use classification.
A listing of property parcels within the proposed utility service area as of March 2003,
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including the number of ERUs associated with each property, can be found on the
Town's web site at:
http_//townhal l . townofchapel hi l1. org/stormwater/records/swdata/search_asp
The properly parcel list can be searched for information on individual parcels by using
the property owner's name or the property identifrcation number (PIN).
The Utility rate base would not include assessment of fees for public streets and/or other
public access ways owned and maintained by the Town or by the North Carolina
Department of Transportation because public roads and streets collect and convey
storrnwater runoff as an integral part of the public drainage system infrastructure.
Property owned by the University would not be included in making the initial estimate of total
Equivalent Rate Units. It is our understanding of the law that the University would be
subject to the Town's utility ordinance, including payment of applicable fees. However,
the University has a different understanding of the relevant law. Therefore, the Manager
recommends that the Utility proceed without including any revenue from the I.Jniversiry
in the first-year revenue estimate; and, that the Council request discussions with the
University to determine how we can best move forward to a mutually acceptable
outcome.
A storrnwater management credit system would be explored during the first year of the
program, and the Manager would provide recommendations for the Council's
consideration regarding the issue of allowing credits.
To accomplish the above objectives, the first year of the program recommended by the Manager would
involve primarily organizational, planning, and public information and participation activities, with new
services limited to those mandated by State and federal regulations.. New services would be linked for
the most part to implementation of the Town's National Pollutant Discharge Elimination System, Phase
Two (NPDES-II) permit requirements.
The following discussion provides details of the key storrnwater management program activities, general
resource needs, and estimated expenses associated with the program recommended by the Manager far
2004-05:
1. storrnwater Management Program Master Plan
A storrnwater Management Program Master Plan would utilize a holistic approach to identify and
prioritize the short-term and long-term storrnwater management needs of the Town by integrating
storrnwater management practices, regulatory requirements, public education, land use, restoration and
resource protection, floodplain management and capital improvements. The Master Plan would map and
schedule the Town's storrnwater management program. It would include a prioritized, watershed-based
strategy to develop individual basin plans focusing on water quantity and quality issues.
We would need the assistance of a consultant to achieve the objective of developing a storrnwater
Management Program Master Plan within the first year of the Utility operation. We estimate that the
first year costs for the development of a Program Master Plan would be $200,000. Future costs to
implement identified Master Plan activities (modeling, watershed assessments, basin plans, capital
improvements, stream restoration, enhanced services, etc.) could be significant.. However, the actual
activities and costs would depend on the program Master Plan and schedule approved by the Council.
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Introduction
2. Public Education and Participation
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The Public Education and Participation Program would be an important year one activity. This program
would begin immediately upon implementation of the Utility. We believe that comprehensive and
continuing public information and public participation activities would be critical to community
acceptance of a utility-based stormwater management program and to the long-term effectiveness of
such a program. This would require that we regularly disseminate clear and compelling information to
the community concerning the importance of stormwater management as it affects both water quantity
and water quality.
We also anticipate a significant increase in the volume of citizen requests for assistance and questions
related to the new stormwater fee, how it is calculated and applied, and how the revenue is used. We
would need to have the means to efficiently and effectively respond to citizens' questions and requests
for assistance.
We anticipate that public information and public participation activities would include:
o Respond to citizens' requests for assistance and questions by phone and email..
® Develop and manage a website including interactive "question and answer" capability..
® Coordinate Orange County Big Sweep and implement other local stream cleaning and monitoring
activities.
® Establish and manage a stormwater Utility Service Line.
® Prepare and place multi-media advertisements.
a Prepare and distribute brochures, posters, maps, and other materials to homeowners, businesses,
schools, etc.
® Design and install stream and watershed information signs and maps.
® Develop and participate in school education and sttrdent involvement programs.
o Develop and present relevant materials at public speaking engagements and presentations.
® Provide support and leadership in local and regional initiatives such as protection of Jordan Lake
and the Cape Fear River Basin and the TJCOG clean water education partnership.
® Identify grant opportunities, write grant applications, and administer grant activities.
To accomplish this work we would need a new, full-time staff position at an estimated annual salary and
benefits cast of $50,000, plus approximately $26,000 ($0.50 per capita per year) for the cost of materials
necessary to provide information and education services.. The work. of the new position would be
coordinated through the Town Information Officer.
3. stormwater Management Services
The Town's obligation to meet existing and new demands for stormwater management services must be
addressed even if the utility is not established. Increasing and new demands for service resulting from
Land Use Management Ordinance reguiations, NPDES-lI permit application requirements, Flood
Hazard Mitigation Plan mandates, anticipated effects of the National Flood Insurance Program (NF1P)
flood map revisions, and expected Total Maximum Daily Load ('TMDL) mandates for the Upper Arm of
Jordan Lake already exceed the capacity of existing staff to respond promptly and effectively to
demands and responsibilities.
The following list identifies the primary stormwater management related activities and services provided
by the Town Engineering Department:
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Introduction Page 6 of l I~
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a National Flood Insurance Program (NFIP) Administration..
b Project management services (Capital Improvements Program, Drainage Assistance Program, NC
Big Sweep coordination, public education programs, etc.).
c. Liaison with local, State, and federal officials (Federal Emergency Management Agency, NC
Division of Water Quality, NC Division of Emergency Management, Orange County,
neighboring communities, etc) concerning erosion control, Total Maximum Daily Load
planning, local watershed planning and public education programming.
d. Hazard Mitigation Grant Program project identification and implementation.
e. Providing technical assistance to other Town staff, Manager and Attorney.
f Preparing reports and technical papers far the Manager and the Council.
g. Monitoring and reporting on NPDES Phase-II permit compliance..
h, Biological stream sampling, coordination and data management.
i. Ambient water quality sampling and data management..
j. Responding to citizen requests-for-assistance regarding water quality and quantity questions and
issues.
k. Providing development review and comments.
1. Hazard Mitigation Plan development and implementation..
m. Developing and providing Geographic Information System (GIS) products and managing GIS
database(s).
n. Performing stream classifications and delineating RCDs.
o. Developing a comprehensive Townwide storm sewer infrastructure inventory and map.
p, Preparing and revising the Town Design Manual and Standard Details including technical
provisions and engineering methods.
q. Develop and implement a Stormwater Management Utility Program.
r. Provide liaison with public and private sector representatives with regard to starmwater
management issues.
We need an additional staff engineer to provide an adequate level of service in responding to present and
expected stormwater management demands, This position is necessary whether or not a Stormwater
Management Utility is established.
The estimated annual salary and benefits cost of the new position is $75,000,
4 Canital Improvements Program Reserve Fund
The Town currently has no reserve fund for drainage infrastructure capital improvements.. There is a
current backlog of known capital projects that need attention. We anticipate that additional capital
improvements needs will be identified as a result of master planning activities, The recommended
pragram would establish a reserve fund with a yeaz-one allocation of $60,000 for capital improvements
project.. This reserve amount could be adjusted in future yeazs in response to the program master plan
recommendations and schedule..
5. Emer~encv Reserve Fund
An emergency reserve fiord would provide for unexpected and emergency projects and/or activities that
require immediate response. The recommended program would establish a reserve fund allocation of
$50,000 in year one..
6. Reimbursement of Costs Incurred
The recommended program includes full reimbursement from the Utility to the General Fund of all costs
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incurred far the development and implementation of the stormwater management utility.. This would
include the cost of consulting services, advertising, committee meetings and other direct expenses
associated with the Utility development..
We believe that the recoverable casts total about $402,000. Attachment 4 provides the details of the
reimbursement amount..
7. Establishment of Ten Percent Fund Balance
We recommend that the utility establish a ten percent fund balance. General financial management
standards for local governments mandate positive fund balances, and recommend that they be
maintained at a minimum of 8-12% to ensure that operational reserves are in place to provide a stable
operating cash flow and to provide for contingencies.
The estimated cost of establishing and maintaining a 10% fund balance is approximately $188,000 in
yeaz one.
8. Purchase of Existing Services from the General Fund
The costs of existing stormwater management related services that are provided by the Town, and that
are currently paid for through the Town's General Fund, could be billed to the stormwater Management
Utility. These include costs of direct services provided by the Public Works, Inspections, and
Engineering Departnnents in addition to indirect costs for general management, financial control and
reporting and other services. We recommend the same charge as is made to other Funds, 13,55% of
payroll costs. This is estimated to be $27,000..
We estimate that CTeneral Fund direct costs ($751,000) plus general overhead costs ($27,000) that would
be billable to the stormwater Management Utility are approximately $778,000 per year. Attachment 5
provides a detailed summary table of General Fund costs that we believe could be billed to the
Stonnwater Management Utility,
9. Office Snace Needs
If the Utility is established as proposed, and two new staff are hired in year one as recommended, we
would require office space outside of Town Hall. Sufficient space is not available in Town Hall or in
any other suitable Town building for two additional people with necessary furniture and equipment. We
have evaluated the space needs and determined that approximately 1000 square feet of office space
would be necessary for the two new staff members and the two existing employees, along with storage
and conference space needed far the program. This work space estimate is consistent with comparable
areas now serving similar functions in Town Hall.
The estimated cast for office space, fumiture, phones, computers, supplies, and office equipment is
$76,500 in year one, Attachment 7 provides a summary of the relevant costs.
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Introduction
RECOMMENDED PROGR~IM COST SUMMARY
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The total estimated first year cost for the recommended program is $2,031,255. Attachment 2 is a draft
operating budget document and budget details for program year 2004-OS, assuming the Utility is
established effective July 1, 2004..
The following table summarizes estimated program revenues and costs far the first year of the
recommended program.
DESCRIPTION 2004-OS Estimated Bud et
TOTAL PROJECTED REVENUES 2,031,255
EXPENDITURES
Personnel 297,730
Operations 429,525
Capital 125,500
Other reimburse sunk costs; fund balance 1,178 500
TOTAL PROJECTED EXPENDITURES 2,031,255
The annual program budget is expected to remain stable between $2 and $2,5 million over the first five
program years, subject to changes directed by the Council in response to program master plan
recommendations
BII..LING AND COLLECTIONS
We recommend that billing and collections be administered through Orange County. We are currently
negotiating the scope and costs of billing and collection services necessary to support the Utility.. We
estimate that first year costs for these services would be approximately $68,000. We will continue
billing and collection discussions with Orange County with the objective of creating an inter-local
service agreement for consideration by the Council if it decides to establish a utility as recommended.
Billing for Chapel Hill properties in Durham County will be handled through a private contractor..
EQUIVALENT RATE LTNTT (ERU) FEE
The program recommended by the Manager includes an ERU fee of $45.00 per year per ERIJ. We
believe it would be prudent to establish an initial fee that could support the program over a period of
several yeazs and that the proposed $45.00 annual fee would be sufficient for the first three years of the
program. We anticipate that the cost of services could increase aver time because of increasing
regulatory requirements and depending on the schedule for implementation of work identified in the
program master plan. The fee rate would need to be periodically reevaluated in response to these
changes.
The recommended program would exempt State and Town public rights-of••way from assessment of fees
because public roads and streets collect and convey stotmwater runoff as an integral part of the public
drainage system infrastructure..
Property owned by the i.Iniversity would not be included in making the initial estimate of total
Equivalent Rate Units. It is our understanding of the law that the University would be subject to the
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Town's utility ordinance, including payment of applicable fees. However, the University has a different
understanding of the relevant law. Therefore, the Manager recommends that the Utility proceed without
including any revenue from the University in the first-year revenue estimate.
ESTABLISHING ORDINANCE
Attachment I is a draft ordinance that would establish a Chapel Hill Stormwater Management iJtility
and a Stormwater Management Utility Advisory Board. It also would establish relevant definitions and
an Enterprise Fund to account for utility revenues.
ADVANTAGES AND DISADVANTAGES
We believe that the main advantages of using a utility as a funding source for a comprehensive
stormwater ranagement program are: (1) a utility would provide a stable source of revenue upon which
a program could be designed to accommodate current and future stonnwater management needs; (2) a
utility would provide a uniform and equitable means of assessing property owners for service demands
placed on the Town's drainage system, based on impervious surface area; and (3) tax exempt properties
would be required to participate.
We believe that the main disadvantages of using a utility as a funding source for a comprehensive
Stormwater management program are: (1) a utility would result in additional costs to citizens; and (2)
fees would not be tax deductible.
CONCY,i7SION
We think that the first year of a utility-based Stormwater management program should focus primarily
on organizational and master planning activities to establish a solid basis upon which to implement
program activities in an orderly and effective manner.
The Manager's recommended program retains the basic elements and intentions of the program goals
and objectives developed by the Policy Review Committee while allowing sufficient time for thorough
program organization and master planning.
We think that developing and implementing a comprehensive public education and participation
program, continuing existing Stormwater management services, and providing new services in response
to federal and state mandates should alt be accomplished in year one as well. The recommended
program includes the addition of two (2) new staff positions in the Engineering Department and the
lease of necessary office space,
Finally, we think that the preparation of a detailed master plan for the Town's stormwater management
program would allow the program activities and work elements originally identified and recommended
by the Committee and Consultant to be undertaken in an orderly sequence and on a reasonable schedule,
if adequate resources are provided. Program work would include new and increasing compliance
activities relating to State and Federal mandates.
NERT STEPS
Following tonight's meeting we will continue to consider comments from the Council, citizens, and
advisory boards and will revise our recommendations and the draft ordinance as necessary. Additional
opportunities for discussion by the Council are available at the Budget Public Hearing on May 12 and at
subsequent Budget Work Sessions.
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We have tentatively scheduled Council action to establish a stormwater management utility for the June
14, 2004, regular Council meeting at the same time that the Council is scheduled to consider adoption of
a budget for 2004-05.
REC4DIVIML+;NDATI®NS
Planning Board's Recommendations: The Planning Board recommends the concept of establishing a
stormwater utility, including extensive public education in the first year. The Boazd also recommends:
(I) more work to include participation of UNC, Carrboro, and Orange County in the utility program; (2)
establishment of an acceptable credit system; (3) annual review of the program by the Planning Board;
(4) provide more and improved field inspection activities; and (5) establish a precise procedure for
enforcement of violations.
Comment: We agree with the Planning Board's recommendations and we think that the proposed
stormwater management program would provide the desired outcomes.
Community Desi Commission's Recommendations: The Community Design Commission
recommends: (1) elimination of a cap on impervious surface area for calculating ERL7s; (2) exempting
affordable housing from the first 2,000 square feet of impervious surface area; (.3) establishing the fee
structure to encourage innovative stormwater management practices; (4) revising the fee structure so
that it does not penalize large property owners with long driveways, and (5) using some method other
than aerial photography to determine impervious surface area. The Commission also noted that it felt
that public awareness of the proposed program has not been extensive; that more public education is
necessary after establishment of the program; that the Council should expect citizen abjection after fees
notifications aze mailed to property owners; and drat the nature of the process appears to be creating a
heavy-handed bureaucratic agency.
Comment: The cap has been eliminated from the fee rate calculations as recommended. We intend to
explore alternatives for issuing credits and/or exemptions in the first year of the program, and will
consider the Commission's recommendations regarding affordable housing, innovative practices, and
properties with long driveways.
Transportation Board's Recommendation: The Transportation Board recommended that: (1) the
minimum impervious surface that would be assessed a fee be 1500 square feet; (2) the cap be
eliminated; and (3) the University be included in the assessment.
Comment: We think that the minimum impervious surface area for consideration should be 200 square
feet (e.g. a 12' x 14' paved patio) because it generates stormwater runoff that places a demand for
service on the Town's drainage system.. The cap has been eliminated from the recommended program,
and discussions regarding University participation are proposed in the first year of the program.
Historic District Commission's Recommendations: The Historic District Commission does not
recommend establishment of a stormwater utility. The Commission commented that: (I) it is unlikely
that a utility would cause a builder to reduce the amount of impervious surface associated with a new
home; (2) consideration of pervious to impervious surface area is not logical unless consideration is
given to total land area as related to total impervious surface area; (3) the Town already does a good job
of managing stormwater and a utility is not needed; (4) the overhead costs for a utility could be costly;
and (5) the data presented does not substantiate the cost,
Comment: We think that, in an urban area such as Chapel Hill, increased stormwater management
http://townhall townofchapelhill org/agendas/ca040426/7-Stormwater%20LTtility%204-26- . 4/26/2004
Introduction Page 11 of 11
C, /~
service demand is directly related to increased runoff from impervious surface area, notwithstanding the
total land area involved on the majority of lots within the service area. We believe that the Town will
need to do more and better Stormwater management, and that a utility could provide the necessary fund
base with minimal overhead costs.
Note; Attachment .3 includes copies of the recommendations from each of the boards and commissions
rroted above.
Manager's Recommendation: That the Council discuss the proposed stonnwater management utility
and consider it as part of the 2004-OS Budget.
ATTAf'ffiVIIENTS
1. Draft Ordinance establishine the Stormwater Management Utility and Advisory Board (p 13).
2. Draft Operatinn Bud. eg t for progr_am_~ar'one (p, 20).
3. Advisory Board Comments and Recommendations (p 30)..
4. Reimbursable costs for the utility development (p..35).
5. BillaUle costs to the enterprise fund (p. 36)
6 Equivalent Rate Unit (ERU~ Tabulation (p. 37}.
7. Estimated Year one office lease space costs (p. 38).
8. Summary_of Questions and_staff comments from March 24 2004 Public Forum (p. 39),
9. Citizens' em_.ail..correspondence(p. 40).
Additional information is available through the Town's website as follows:
For past reports to the Town Council:
http.//townhall.townofchapelhill.or Stormwater/stormwtr_utili ..htnil#reports
For supplemental background information:
http..//townhallaownofchapelhill. o~stormwater/stormwtr_uti] ity.html#baclcgr_ound
http://townhall.townofchapelhill org/agendas/ca440426/7-Stormwater%20t.Jtility%204-26-.. 4/26/2004
ATTACHMENT 2
i5
DRAFT
FY 2004-2005
STORMWATER.
MANAGEMENT
UTILITY
BUDGET
(Submitted: Apri126, 2004)
26 April, 2004 `~~
STORMWATER MANAGEMENT UTILITY DRAFT BUDGET
FISCAL YEAR 2004-2005
Table of Contents
Page #
Budget Highlights.,_ ......................._,.....,...._.....,,.,,.....,.,.....,.,.,..,,...........,..,._. ...,.........,.,........,...,_,..,......._,. 7
Summary Budget Overview Spreadsheet .................._,....._,...,......,.,..,...,...._.._.,,.,....... _.....,..,........,........,...,... 2
Budget Requests:
Budget Request Expendihues ........................._.,.,....,....,..,..,,.,_...,.. ,_,_,..,.,....,..,,.., , ., ,...,,,...........,...,. 3,4
Budget Request Revenues ............................................................_, .,., , ..,.........,....,.,.._,...,.......,.,......,. 5
Detailed Tustification ,,,,,,,,,,,,,,,,,,,_,,.,,...,,,.,.....,,._.,., _..,.,. _...........,.. .,... _.....,.,,... __,.,.,,..._.,.,, .....,...,._.... 6,7
Personnel Summary.._ ......................._......,........,,.,.,.,..,.,....,,,.,, .
.
..._ ................._.._. ,..........,_.,.,...,. 8
END
Highlights
Stormwater Management Utility
2004-2005 Draft Budget
26 April 2004
The Stormwater Management Utility draft budget of $2,0:31,255 for FY 2004-OS would provide
for the following lcey programs and services:
• Development of a Stormwater management program master plarr and implementation
schedule
• Development of a comprehensive public education and participation plan
• Continuation of existing Stormwater management services, and implementation of new
services as mandated by State and Federal regulations
• Portions of the utility revenue would be reserved for:
o establishing a capital improvements project fund account (proposed $60,000)
o establishing azr emergency fund account (proposed $50,000)
o establishing a 10% fund balance
o reimbursing the General Fund for costs associated with development and
establislunent of the Utility(appraximately $402,000)
o reimbursing the Town for billable costs incurred in providing Stormwater
management services separately from the Utility (approximately $751,000)
The Stormwater Management Utility would operate as a division of the Town Engineering
Depaztment, and utility revenues could offset applicable casts in the Engineering Department
budget,
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Page 5
Date 26 April, 04
04-OS BUDGET REQUEST
DETAILED JUSTIFICATION ATTACHMENT
DEPARTMENT ORG.
Engineering Stormwater Management Utility
ACCT ACCT
OBJECT NAME JUSTIFICATION/EXPLANATION
50100 Salaries - Full- 100% of salaries for existing 2 full-time staff; 28% of
Time Engineering Director; 30% of Engineering
Administrative Assistant; and 100% of 2 new staff,
hh-ed 3`~ quarter, $204,352. ($142,116 reduction ir:
currently proposed Engineering Department 2Q04-0.5
operating budget o for tke existing staf .)
50200 Salaries - Part- N/A
Time
50400 Salaries - Stormwater Technician interns hired part-time,
Temporary temporazy and paid hourly, $20,000 (100% reduction
in czrrrently proposed E»gineering Department 2004-
05 operating bud et.
50505 FICA See Personnel Data Sheet $15,376 ($10,61,5 reduction
in currently proposed Engineering Department 04-OS
o er°atin budget orexistin staf.)
50600 Retirement See Persormel Data Sheet $19,958 ($1.3,778 reductiot
in currently proposed Engineering Departrent 09-OS
bud et or existin sta .
50650 Group Insurance 'See Personnel Data Sheet $30,815 ($X6,427 z•eductiort
in currently proposed Engineering Department 04-OS
o w•atin bud et or existing sta .)
50700 Workers See Personnel Summary Sheet $5,108 ($616 reduction
Compensation in currently proposed Engineering Department 04-OS
Insurance o erating budget or existing sta .)
60000 Professional Consulting services for Stormwater Program Master
Services Plan: $200,000, Anticipated first year cost for billing
services: $68,000
60100 Business Meetings See Meetings and Training Sheet. $5550.
and Training
60130 Dues and Association of State Floodplain Managers, American
Subscriptions Society of Civil Engineers, Stoxrwater Permit Manual:
$1000
60200 Telephone Desk telephones, mobile phones, information
technolog connections, Bell South services: $7000
60220 Postage General osta e ex enses: $500
60230 Printing General plan, maps and drawing reproduction: $1000
Page 6
Date 26 April, 04 ~~~
60240 Advertising / Public Education Program; materials, multi-media,
Public Education etc.: $25,925
60241 Personnel Newsprint, magazines: $1000
Advertising
60330 M & R Building Office up-fit costs: $12,000
60370 M & R Equipment Office machines: $1000 ,
60380 M & R Computers Computers/network: $1000
/ Info Systems
606500 Utilities Electricity, water, recycle, other: $4000
60640 Fleet Use Charges Vehicle #618. $3200. (100% reduction in eca°rently
proposed Engineering Department 2004-0.5 operating
bud et.
60650 Vehicle Vehicle #618. $3600 (100%reduction in currently
Replacement pr°oposed Engineering Deparlneer:t 2004-OS operating
Charges budget.)
60660 Computer Use General computer costs: $2000
_ Charges
60690 Softwaze Licenses ArcInfo (2 registrations), MS Office (2 ea.): $5000
60692 Office Space Annual lease agreement: $18,000
Leased
60699 Misc Contracted Misc. service contracts: $25,000 (janitorial, waste
Services removal, survey, engineering, etc.)
60700 Supplies / Office furniture, desks, tables, chair's, book cases, files,
Furniture microwave oven, coffee maker, etc.: $15,000
60702 Computer /Office 2 computers, b/w copier, color printer, b/w printer:
Equipment $14,500
60705 Copying Costs Paper, ink, misc.: $1000
60710 Application ArcInfo, MS Office: $12,000
Software
60715 Safety Supplies Vests, boots, first aid, etc.: $2000
60845 Vehicle Su lies Misc.; $300
80100 Capital Drainage Assistance, small projects: $60,000
Im rovements
80100 Reserve Capital Reserve fund balance: $50,000
Improvements
80400 Capital Equipment Plotter, server: $15,500
N/A General Fund Billable to general fund for stormwater services:
Charges $588,500
N/A
Transfer to General _
Sunk costs for utility development: $402,000
Fund
N/A Balance Reserve 10% fund balance of next FY Operating costs:
$188,000
Page 7
26-Apr-04~~'
PERSONNEL SUMMARY SHEET
STORMWATER MANAGEMENT UTILITY
SALARY LINE TOTALS FROM
PERSONNEL
DATA SHEET
Temporary
Salaries Increase for
Obtaining
Prof. Engrg.
License
REVISED
REQUEST
50100 -Full-Time Salaries 200,989 3,363 204,352
50200 -Part-Time Salaries 0
50300 -Overtime Salaries p
50400 - Tem orar Salaries 20,000 20,000
50505- FICA 15;376 1,530 257 17,163
50600 -Retirement 19,958 334 20,292
50650-Medical Insurance 30,815 30,815
50700 - Worlcmans Com 5,108 5,108
50710 - Unem to meat p
Totals 272,246 21,530 4,727 297,730
Page 8