Stormwater Utility Formation September 25, 2018 Utility Formation - PowerPoint PPT Presentation

EXHIBIT 7 City of College Place Stormwater Utility Formation September 25, 2018

Utility Formation  Regulatory Driver: – Beginning in 2019, the City is required by WA State Department of Ecology (DOE) to comply with NPDES Phase II Permit requirements – DOE directed the City to establish a Stormwater Utility  Benefits of a Separate Utility – Financially self-sufficient – Reliable revenues dedicated for stormwater management – Equitable cost recovery through rates – Transparency and accountability to the public FCS GROUP Page 2

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DOE 2019 Phase II Permit Requirements City Requirements for Compliance :  Stormwater Management Plan  Public Education and Outreach  Public Involvement and Participation  Illicit Discharge Detection/Elimination  Construction Site Stormwater Runoff Control  Post Construction Stormwater Management (New Development and Redevelopment)  Municipal and Operations Maintenance  Monitoring  TMDL Compliance Monitoring FCS GROUP Page 4

Revenue Requirement – Total 2019 Costs 2019 Cash Need Projected Cost Operating Costs Salaries & Benefits $175,000 Regulatory-Mandated Programs $20,000 Administrative Costs $13,000 10% Contingency $21,000 Estimated Taxes $6,000 Operating Fund Minimum Balance $76,000 Capital Costs $60,000 2019 Revenue Requirement $371,000 FCS GROUP Page 5

Revenue Requirement – Operating Costs Projected Operating Costs $300,000 $250,000 $200,000 $150,000 Contingency Taxes $100,000 Administrative Costs $50,000 Regulatory-Mandated Programs Salaries & Benefits $0 2019 2020 2021 2022 2023 2024 FCS GROUP Page 6

Revenue Requirement – Capital Costs Planned Date w/out Capital Project Projected Cost Date Grants Street Sweeper $240,000 2019 2021 Vactor Truck $410,000 2020 2024 Street Waste Decant $700,000 2021-2022 2028-2029 Facility 10 th St Stormwater $300,000 2024 2031 Improvements Point Source Loading $250,000 2025 2032 Improvements Possible Regional $500,000 2026 2035 Facilities NE “C” Street Projects $145,000 2020 2022 FCS GROUP Page 7

Revenue Requirement – Capital Costs Capital Costs by Year (escalated $) $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2019 2020 2021 2022 2023 2024 FCS GROUP Page 8

Rate Recommendation  Equivalent Service Unit (ESU): 3,500 sq. ft. of impervious area Rate Class 2019 Rate Single Family Residential $9.19 per month Non-Residential $9.19 per ESU per month On-site Mitigation Credit Maximum Credit of $2.63 per ESU  2020-2024: Annual rate increase of 3.0%/year to keep pace with inflation FCS GROUP Page 9

Level of Service Choices Level of Service Comparison Operating Costs Only $7.46 $9.19 Recommended Rate $9.18 Full Capital Program $13.75 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 FCS GROUP Page 10

Level of Service Outcomes Capital funding shortfall must $900,000 be made up with grants $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2019 2020 2021 2022 2023 2024 Operating Expenses Operating Fund Reserve Available Capital Funding Full Capital Cost Rate Revenue FCS GROUP Page 11

Stormwater Utility Maintenance Operations:  Cleaning/maintaining the stormwater system  Illicit Discharge Detection/Elimination  Upgrading existing system  Monitoring/testing Administrative:  Reviewing stormwater drainage plans for compliance  Assistance with site plan review for compliance  Public Education and Outreach  Public Involvement and Participation  Monitoring/testing FCS GROUP Page 12

Rate Comparison Single Family: Monthly Stormwater Bills Richland $3.85 Kennewick $4.11 Yakima $5.84 West Richland $6.75 College Place $9.18 Walla Walla $11.90 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 FCS GROUP Page 13