Loading...
HomeMy WebLinkAboutAgenda - 06-02-2004-5hORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 2, 2004 Action Agenda Item No. 5 ~n SUBJECT: Interlocal Agreement for Billing and Collection of Fees for Proposed Town of Chapel Hill Stormwater Utility DEPARTMENT: Manager/Revenue PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Proposed Interlocal Agreement 5/24/04 Revenue Director Memo FAQ About the 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 approving an interlocal agreement under which Orange County would bill and collect on behalf of the Town of Chapel Hill 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. Pursuant to a request from Town staff, County and Town staffs have worked together since Summer 2003 to devise a structure through which the Ccunty might undertake billing and collection of stormwater fees on the Town's behalf. At the May 4, 2004 regular meeting, the BOCC provided conceptual approval for the County to bill and collect Town stormwater fees and the creation of a new Tax Clerk position, to be paid for by the Town, to assist in administering this program, As indicated at that time, Town and County staff were to draft an interlocal agreement that would govern these arrangements, and bring that proposed agreement back to the County Commissioners and Chapel Hill Town Council for review and approval by June 2004, That draft is provided for the BOCC's review, and if acceptable as now written, for approval. As noted in the May 4 meeting materials, some of the major elements that have been incorporated into the interlocal agreement include: 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, z • 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 Hilh • 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. Any resulting refunds will be issued by the Town of Chapel. • 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 tc the first cycle of billing, explain the rationale far 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 more 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 an 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 for the cost of creating and mailing any separate bills that cannot he included in the regular annual property tax bill mailing, • Upon notification from the Tawn, 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 cast of making its stormwater management database systems operationally compatible with the County's system. Should any special programming be required to a new or upgraded taxation and record software system, the Town will be responsible for bearing the cost. • 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 County). • Priority of distribution of funds collected and applied to outstanding bills will be: 1) All tax and related costs, 2) fees billed and awed Orange County, 3) Town of Chapel Hill fee. FINANCIA<_ IMPACT: The estimated costs 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 approve the interlocal agreement or a modified version thereof, stabject to final review by staff and the County Attorney, and confirm staff plans to immediately recruit for and fill the new Tax Clerk position. ~~ INTERLOCAL AGREEMENT FOR ADMINISTRATION OF STORMWATER MANAGEMENT UTILITY FEE BY ORANGE COUNTY FOR THE TOWN OF CHAPEL HILL This is an Interlocal Agreement, made and entered into by and between, ORANGE. COUNTY, a political subdivision of the state of North Carolina, and hereinafter referred to as "COUNTY" AND TOWN OP CHAPEL. HIL.L., a municipal corporation existing under the laws of the state of North Carolina, hereinafter referred to as "TOWN". WHEREAS, the COUNTY maintains a Department of Revenue and Orange County Assessor Department which inclusively handles the creation, billing, mailing and collections of monies due, WHEREAS, the TOWN is desirous of procuring all or some of the services of the COUNTY for the performance of billing, receipt and dishibution of the Stormwater Management Utility Fee, WI-IL^REAS, COUNTY, tluougb said Deparm~ent of Revenue, and Assessor Department, is willing to perform such services respectively, pursuant to the terms and conditions hereafrer set forth; WHEREAS, it is in the best interests of Orange County and the Town of Chapel Hill, NOW, THL•.REFORE, IN CONSIDERATION of the mutual terms, conditions, promises, covenants and payments hereinafter set forth, COUNTY and TOWN agrees as follows: ARTICLE I -SCOPE OF SERVICES L l TOWN agrees to appoint, designate, empower the COUNTY the authority fo perform the services in fhe Town limits in accordance with Schedule "A" for the Stormwater Management Utility Fee.. 1.2 COUNTY shall perform the above services pursuant to Schedule "A" tluough its Revenue Department/Assessor Deparfirent, or any successor division as maybe designated by the County Manager 1.:3 It is understood and agreed that COUNTY will be required to employ additional personnel to perform the Services required under this Agreement. 1.4 It is understood and agreed that the COUNTY wilt apply receipts of monies in the following priority with priority 1 being the highest: 1) all tax and related costs, 2) fees billed and owed the COUNTY, .3) TOWN fees. ARTICLE 2 -RESPONSIBILITY OF TOWN OF CHAPEL HILL 2, I It is understood and agreed that the TOWN will retain all billing and collection responsibilities for those properties within the Town limits and not within Orange County 2 2 In the event the TOWN desires to have the COUNTY provide the service for properties within the Town limits and not within Orange County, a separate agreement shall be required behveen the TOWN and the COUNTY, Other independent agreements or modifications to the agreements maybe necessary to effectuate this other service area. 2 3 It is understood that the TOWN will provide the COUNTY with the fee schedules and data set compatible with the COUNTY Assessor billing record. Non-matches will be resolved by the TOWN staff. ARTICLE .3 -TERM OF AGREEMENT 3 1 This Agreement shalt become effective upon execution by COUNTY and shall continue in full force and effective until midnight, .Tune .3Q 2009, with biannual extensions thereafter as maybe approved by the COUNTY and the TOWN. 3.2 This Agreement shall remain in full force and effective tlmough the termination date or any extended termination date, as seC forth above, unless written notice of termination by fhe COUNTY or the TOWN is provided pursuant to Article 5, TERMINATION and Article 7, NOTICES. ARTICLE 4 -GOVERNMENTAL IMMUNITY The TOWN is a North Carolina Municipal Corporation as defined in the North Carolina General Statutes. The COUNTY is a political subdivision of the State of North Carolina. L^ ach agrees to be wholly responsible for acts and omissions of their agents or employees to the extent permitted by ]aw. Nothing herein is intended to serve as a waiver of sovereign or govermmental immunity by any party to which sovereign or governmental inununity maybe applicable, Nothing herein shall be construed as consent by a municipal corporation or political subdivision of the State of North Carolina to be sued by third parties in any matter arising out of this Agreement or any other contract. ARTICLE 5 -TERMINATION This Agreement maybe ternunated by either party upon one (I) year written notice to the other party of such termination pursuant to Article 7, NOTICES, herein ARTICLE 6 -MISCELLANEOUS PROVISIONS 6,1 ASSIGNMENT: The COLiNTY shall perform the selected Services provided for in this Agreement exclusively and solely for the TOWN which is a party to this Agreement. Neither party shall have the right to assign this Agreement. 6.2 WAVER: The waiver by either party of any failure on the part of the other party to perform in accordance with any of the terms or conditions of this Agreement shat] not be conshved as a waiver of any future or continuing similar or dissimilar failure. 6 3 SL^VERABILITY: The invalidity of any provision of this Agreement shall in no way affect the validity of any outer provision. 6 4 ENTIRE AGREEMENT: It is understood and agreed that this Agreement incorporates and includes all prior negotiations, agreements or understandings applicable to the matters contained herein and the parties agree that there are no contmihnents, agreements or understandings concerning the subject matter of this Agreement that are not contained in this document. Accordingly, it is agreed that no deviation from the terms hereof shall be predicated upon any prior representations of agreements, whether oral or written. 6 5 MODIFICATION: It is further agreed that no modifications, amendments or alterations in the terms or conditions contained herein, excluding fee schedule, shall be effective unless contained in a written document executed with the same formality and of equal dignity herewith. 6.6 CHOICE OF LAW; WAIVER OF JURY TRIAL.: Any conttoversies or legal problems arising out of this transaction and any action involving the enforcement or interpretation of any rights hereunder shall be submitted to the jurisdiction of the State courts of the State of North Carolina, with venue in Orange County, and shall be governed by the laws of the State of North Carolina. To encourage prompt and equitable resolution of any litigation that may arise hereunder, each party hereby waives any rights it may have to a trial by jury of any such litigation- 6 7 DRAFTING: This Agreement has been negotiated and drafted by all patties hereto and shall not be more strictly construed against any party because of such party's preparation of this Agreement 1 ARTICLE 7 -NOTICES Any and all notices given or required under this Agreement shall be in writing and maybe delivered in person or by United State mail, postage paid, first class and certified, signature receipt required, addressed as follows: TO COUNTY Jo Roberson, CTC, Revenue Director Orange County Department of Revenue 200 S Cameron Street Hillsborough, NC 27278 John Smith, CAE, Assessor Orange County Assessor Department 200 S Cameron Street Hillsborough, NC 27278 With copy to: lolm M Link, Jr. Orange County Manager 200 S Cameron Street Hillsborough, NC 27278 Pam Jones, Director Orange County Purchasing Department 129 E King Street Hillsborough, NC 27278 70 TOWN Cal Horton, Town Manager Town of Chapel Hill 306 N Columbia Sheet Chapel Hill, NC 27516 c ~~ WITNESS WHEREOF, the parties hereto have made and executed this Interlocal agreement between Orange County and the Town of Chapel Hill for selected Services to be Performed by the Orange County Department of Revenue/Orange County Assessor relative to the billing, receipt and distribution of the Town of Chapel Hill Stormwater Management Utility Fee, on the respective dates under each signahue: ORANGE COUNTY tluough its BOARD OF COUNTY COMMISSIONERS, signed and tluough its Chair or Vice Chair, authorized to execute same by Board action on the of 20 ta,~~~ and the TOWN, signed by and through its ,authorized to execute same by Commission action on the day of , 20 ~a~~>. COUNTY ATTEST: Orange County Manager and Ex-Officio Clerk of the Board of County Commissioners of Orange County County, North Carolina ORANGE COUNTY, tluough its BOARD OF COUNTY COMMISSIONERS By Chair ,day of , 20_(date) Approved as to form Office of County Attomey Orange County, North Carolina Geoffrey, Gledhill, County Attorney 129 E Tryon Street Hillsborough, NC 27278 Telephone: (919) 732-2196 Fax:(919) 732-7997 Chair Orange County Attomey Orange County Board of Commissioners TOWN Attest: 70WN OF CHAPEL. RILL. By: Mayor - Comnussioner day of , 20_ ~a~~m Town Clerk By Town Manager day of , 20_ ~a,~~~ APPROVED AS TO FORM: By: Town Attorney SCHEDULE A AI)- SERVICES • Billing will be established with ownership record of January 1 of each given year.. Expectations are that the database provided by the TOWN would use the same ownership/existence timeframe. • Cost for billing exempt properties, persons qualifying for homestead exemptions acid disabled veterans, et al, would be at the cost of the TOWN.. • Expectations are that the data set from the TOWN will be compatible with the COUNTY billing record, Non-matches will be resolved by TOWN staff. All matters related to calculation of impervious surface as it relates to fee calculation ate entirely the responsibility of the TOWN, • Expectations are that any "corrections" to the record after billing will be handled by the COUNTY tlm-ough the written direction of the TOWN. Any resulting refunds will be issued by the TOWN, at the expense of the TOWN, directly to the persons entitled to the refunds,. • The TOWN will provide to the COLINTY Assessor and Revenue offices contact individuals within the TOWN employment to deal with customer complaints or concerns.. • It is anticipated that the TOWN will enter into an extensive education process with their citizens prior to billing, • It is expected that the TOWN will provide training to COUNTY employees of the Assessor and Revenue departments on the origins and need for the charge. • The COUNTY will provide the one time billing, receipt and distribution of fluids, but will not be responsible for collection or legal recourse through the ,judicial system. • The TOWN will pay all costs described herein on a quarterly basis. The COUNTY will bill in conjunction with the tax revenue billing. • The TOWN agrees should the COUNTY upgrade or change software within the Taxation Systems, the TOWN will bear the equivalent expense of any customized software necessary to continue handling the Stormwater Management Utility Fee. • The TOWN agrees the personnel costs can change on a yearly basis due to anticipated pay increases due to cost of living and performance increases. The COUNTY will propose those changes to the TOWN allowing reasonable time for consideration during the amoral budget development. • The TOWN agrees to handle all billing, receipt and distribution of Stormwater Management Utility Fee for those properties within the Town and not within Orange County. A2) A.3) ONE TIME START UP COSTS (included fee on existing tax billing) Progranuning Costs $ 4,900 Billing Costs (setup fees) $ 500 Billing Variances-Add'I Bill $ 250 Personal Computer $ 1,768 Desk $ 750 Chair $ 237 Calculator $ 75 Telephone Installation $ 235 PERSONNEL COSTS AND RELATEll COSTS -ANNUAL COSTS Personnel (1) $46,658 (inclusive of all personnel costs subject to annual review) Training $ 400 Travel $ 400 Telephone $ 500 Office Supplies $ 400 A4) BILLING AND MAILING COSTS -ANNUAL COSTS Billing Cost (Exempt Prop, etc) $ 200 Postage Costs $ 275 2nd Notice $ 100 2"d Notice Postage $ 145 ~a ORANGE COUNTY REVENUE DEPARTMENT 200 SOUTH CAMERON STREET • P.O. BOX 8181 HILLSBOROUGH, NORTH CAROLINA 27278 Telephone (919) 245-2725, 919-245-2726 Fax (919) 644-3332 Email irober(c~co.orange.nc.us Jo Roberson, Revenue Director To: John Link, County Manager From: Jo Roberson, Revenue Director ~-~~ Subject: Town of Chapel Hill Public Education Plan(s) Storm Water Management Ufllity Feo Date: May 24, 2004 I have conversed with the Town staff concerning their public education proposal. They advise that the Town Council meets again on June 12, 2004 and they feel they will be given the fmal approval for the institution of the fee stmcture and approval of an education plan Ttte public education proposal is currently under review by Town staff. They are proposing: • Direct Mailers -sent in July and again in the month of November • Newspaper Education Ads - to be run in Ute month of July and again in August in bout the Chapel Hill News and the Herald Sun. • Development of a power point presentation to be used in a group setting for educational purposes. • Extensive information made available via the Town website. There is currently already a FAQ sheet which can be located at luto'//townh311 townofcb~ioelhill ortJstormw•uer/indes hhnl • A direct email capability also exists allowing for the public to send inquiries and comments duectly to the Engineering staff for review and response, Town staff indicates that upon fmal approval of llte education portion of ffie Storm Water Management Utility Fee, they will immediately forwazd all materials and information to Orange County, Respectfully submitted, Frequently Asked Questions about the Proposed Stormwater Utility This list of questions relates to issues that have been raised in the Town's Stormwater Management Committee meetings and policy papers as far back as 1991, and the concerns expressed by the public in cities across the country regarding municipal stormwater utilities. The Town Council is considering implemenation of a local stormwater utility intended to provide a stable source of revenue to support a comprehensive stormwater management program for Chapel HiII, • Why do we need to manage stormwater? • Why do we need a "stormwater utility"? • How would this utility benefit taxpayers, homeowners, etc? • Would the utility be an entity separate from the Town (like OWASA), or a department within the Town, or something else? • Doesn't the Town already take care of drainage and stormwater problems? • How would the utility be funded? • How would fees be calculated? • How often would I get a bill? • About how much would the annual utility fee be for a single family property? What is an "impervious surface"? • Why are gravel roads and gravel parking lots considered to be impervious? Sei priniinc~ to "landscape" • How do you determine how much impervious surface is on my property? for nest results. . If you calculate the wrong amount of impervious surface on my property, r HTM~ t how could I get that corrected? WJ.. q,py~ • How could I reduce my fees? • What kind of public oversight or public involvement would this utility have? • When will the Town address the drainage problem going on in my yard or neighborhood? • Wouldn't it be easier and cheaper just to raise taxes to pay for the stormwater management program? • Would this require a large staff increase? • My subdivision is new and has some amount of stormwater management already built in Would we have to pay the same rate as older neighborhoods with no stormwater management? • I live on top of a hill, and I don't ever have any drainage problems. Why would I have to pay for stormwater management services? Why do we need to manage stormwater? http://townhall.townofchapelhill.org/stormwater/utility_faq.html 5/24/2004 Town of Chapel Hill Stonnwater Management -Stonnwater Utility FAQ Page 1 of 6 Town of Chapel Hill Storn~water Management - stormwater Utility FAQ Page 2 of 6 .'1, !~~J Urbanization causes significant changes in stormwater runoff characteristics, `"°`~ including increased volume and rate of runoff entering streams and the stormsewer system and reduced amounts of water filtering into the soil. Such changes cause increased erosion and formation of gullies in upland areas, increased sediment deposition in lower areas, degradation of water quality, peak storm flows that are higher and faster, more frequent flooding, and negative effects on stream ecological communities. These impacts on both man-made structures and natural systems require continuous management, maintenance, repair and replacement of the Town's stormwater management system, and careful planning to mitigate existing and future problems. Why do we need a "stormwater utility"? A stormwater utility is a "public enterprise" structure similar to a water or sewer utility. With a utility, the Town could develop a cost effective stormwater management program with a reliable and equitable source of funding that is based on the demand that a given property places on the stormwater management system.. Alternative funding sources, including general revenues and bonds, are based on the tax value of property and, as such, are less reliable and equitable than funding based on utility fees. The Town currently has an ad-hoc stormwater management program that is trying to respond to increasing regulatory requirements and local needs without increased resources. How would this utility benefit taxpayers, homeowners, etc? Depending upon the level and extent of services being funded, a stormwater utility could provide: . drainage and stormsewer maintenance, repair, and improvement . flood damage reduction and prevention • improved water quality in Town streams • watershed and development planning protection of future drinking water sources (i e Jordan Lake) . stream restoration, open space acquisition and other programs. Would the utility be an entity separate from the Town (like OWASA), or a department within the Town, or something else? The stormwater utility would operate within the Town organization as a division of the Engineering Department. It would coordinate stormwater management activities using both Town resources and contract services, Existing Town Departments expected to be most involved include Engineering, Planning, Inspections, Finance, and Public Works, Doesn't the Town already take care of drainage and stormwater problems? The Town does currently provide a variety of stormwater management http://townhall.townofehapelhill.org/stormwater/utility_faq.html 5/24/2004 Town of Chapel Hill Stomiwater Management - Stormwater Utility FAQ Page .3 of 6 ///~ services. However, due to new federal, state, and local regulations and limited staff and funding resources, the Town cannot adequately meet the current demand, let alone increasing demands, for stormwater management services such as drainage assistance, infrastructure maintenance and improvements, flood damage reduction, public education, illicit discharge detection, water quality improvement, development review, and administration of the National Flood Insurance Program (NFIP). How would the utility be funded? The utility would be funded by fees collected from all properties contributing stormwater runoff to the stormwater management system.. The fee would be based on the relative impact of each property on the stormwater management system. Sea the following question for fee calculation. How would fees be calculated? Fees would be calculated based on the amount of impervious surface (see question below about impervious surface) existing on each property within the Town Limits. This impervious surface area equates to the "demand" that each property places on the stormwater management system. Apre-determined unit area of impervious surface, called an Equivalent Rate Unit (ERU), would be assessed a set fee, The total utility fee for each property would be determined by the number of ERUs on that property multiplied by the unit fee.. A rate study was conducted to determine the unit fee for one ERU, based on a statistical analysis of the impervious surface area existing on single-family properties Townwide Initial analysis set one ERU at the mean impervious area for single family lots, found by the study found to be 3015 sq.ft. At the request of the Town Council, to more accurately represent the smaller impervious area of many lots, the size of a single ERU was placed at a natural "breakpoint" in the distribution of impervious square footage among the analyzed properties, determined to be 2000 sq.ft. The unit fee per ERU would be calculated by dividing the costs associated with the desired program level and extent of services by the number of ERUs to be assessed Townwide. All types of property within the Town limits would be subject to utility fees, with the exception of State and Town road rights-of-way. How often would 1 get a bill? The billing cycle would likely be on an annual basis and included with the Qrange County property tax bill as a separate fee. Properties in Durham County would be billed separately, also on an annual basis. About how much would the annual utility fee be for a single family property? The utility fee amount would depend on the amount of impervious surface on the property in question. The Manager's recommendation is for a $3.75/month/ERU fee. As an example, if a parcel has 5015 sq,ft, of impervious surface, the fee would be calculated as 3 ERUs x 3,75 x 12 months = $135 http://townhall.townofchapelhill.org/stormwater/utility_faq.lrtml 5/24/2004 Town of Chapel Hill Stonnwater Management -Stonnwater Utility FAQ Page 4 of 6 .--//- annual fee. What is an "impervious surface"? In general terms, an impervious surface is a hardened surface (concrete, rooftop, asphalt, compacted gravel, etc.) that does not absorb stormwater, Impervious surface areas cause increased pollutant loading, increased volume and rate of stormwater runoff, lower stream base flows, and decreased infiltration of stormwater into the soil and availability to plants' roots. Why are gravel roads and gravel parking lots considered to be impervious? Typical gravel materials (including "Chapel Hill gravel") used for roads and parking lots are engineered and compacted to withstand heavy loads. These compacted gravel materials form a seal through which water will not readily infiltrate, Some landscaping or stormwater management applications involve uncompacted, washed stone that would not be considered impervious, How do you determine how much impervious surface is on my property? The Town uses aerial photography and its Geographic Information System (GIs) to identify and measure impervious surface areas on properties. If you calculate the wrong amount of impervious surface on my property, how could I get that corrected? Upon request of the property owner, stormwater management staff would review the calculation of impervious surface area assigned to the property parcel and make any needed adjustments. How could I reduce my fees? There would be an established procedure for issuing "stormwater credits" to properties that include means and measures for reducing the amount of or mitigating the effects of stormwater runoff generated by the property. A manual describing these credits and procedures would be developed during the first year of the utility, to become effective the second year. What kind of public oversight or public involvement would this utility have? The stormwater program development and utility process has been and will continue to be a public process. An ordinance would establish a stormwater Management Advisory Board, similar to other Town Advisory Boards, that would meet quarterly to review program development and policy recommendations. See the main stormwater utility page for information about previous stormwater-related committees, their establishment, mission, and recommendations. http://towriliall.townofchapelhilLorg/stormwater/utility_faq.htnil 5/24/2004 Town of Chapel Hill Stormwater Management -Stormwater Utility FAQ Page 5 of 6 When will the Town address the drainage problem going on in my yard or neighborhood? One proposed element of the utility-supported stormwater management program would be to perform more drainage maintenance projects on private property. This program would have a method of ranking and prioritizing drainage problems. This work would be based on the currently established Drainage Assistance Program. The existing program is not currently funded. Wouldn't it be easier and cheaper just to raise taxes to pay for the stormwater management program? Although the existing funds for stormwater management are from the General Fund, taxes are not an equitable or reliable means to fund stormwater management activities. Equity is achieved when each property owner pays a fair share based on the demand his or her property places on the stormwater management system. Each year the Town establishes a budget, based on tax revenue and program needs throughout Town, both of which can and do change from year to year. As an example, the Capital Improvements Program is not funded in the 2004-2005 budget as currently proposed, A stormwater management program could most efficiently and effectively be operated on a reliable and consistent revenue stream that would be established through a fee-based utility. Would this require a large staff increase? Stormwater management staff resources would be increased from 2 to 4 full- time employees. Further increases would depend on the level and extent of services to be implemented in future years, It is anticipated that much of the program work could be accomplished efficiently and at lower cost by using contract workers rather than hiring new permanent Town staff. My subdivision is new and has some amount of stormwater management already built in. Would we have to pay the same rate as older neighborhoods with no stormwater management? It has not yet been determined how the proposed credit system would function (see the above question on reducing fees), but we expect to provide credits for stormwater management improvements implemented by individual property owners or by developers that exceed specified minimum requirements, The size or type of parcel would likely be a factor in the credit system. I live on top of a hill, and I don't ever have any drainage problems. Why would I have to pay for stormwater management services? Impervious surface on your parcel places a certain demand on the stormwater system, Stormwater runoff generated by your property must be controlled and conveyed once it leaves your property so that it does not create problems for http://townhall.townofelrapelhill.org/stormwater/utility_faghhnl 5/24/2004 Town of Chapel Hill Stormwater Management -Stormwater Utility FAQ Page 6 of/6 (~ others. While many projects funded by the utility would address drainage problems on private properties, all property owners would receive indirect benefits from a properly maintained and operated stormwater management system for the entire Town. Stormwater management activities with broad benefits include keeping the public streets drained and cleared, making necessary stormwater infrastructure upgrades, reducing erosion of hillsides, eliminating mosquito habitat, and collecting and conveying stormwater safely through all parts of the Town. A portion of the fees would also provide for compliance with federal, state, and local laws for water quality improvements; administration of the Land Use Management Ordinance (LUMO) through development review, inspections, bonding, and stream determinations for the Resource Conservation District; public involvement and educational programs; and responding to public health and safety issues that benefit all property owners. The Town's Flood Maps (NFIP) and associated administrative duties would also fall under the utility. Last updated: x/13/2004 http://townhall.townofchapelhilhorg/stormwater/utility_faq.html 5/24/2004