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Home My WebLink About12-9-13 Consent Storm Water Fund.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Administrative Services Director SUBJECT: Adoption of the Storm Water Fund Capital Improvement Plan (CIP) for FY15-19. AGENDA ITEM TYPE: Consent MEETING DATE: December 9, 2013 RECOMMENDATION: Adopt the Storm Water Fund Capital Improvement Plan (CIP) for FY15-19. BACKGROUND: Each year, the City Manager is required to prepare a 5 Year Capital Improvements Plan and submit it to the Commission by December 15th. The Public Works and other city staff met in October and November to develop the attached Capital Plan for the equipment and capital needs of the Storm Water Fund. As is noted on the schedule, many capital items are listed as "unscheduled" until our Utility method for charging customers is refined to be more equitable, anticipated some time in FY15. Items of Note: • SWRM14 – Storm Water Rate Study is needed in FY15 to arrive at a more nuanced and equitable charge method for properties in our system. 81 • STRM15 – Impervious Surface Data Creation is needed in FY15 in order to utilize the impervious surface method of charging customers. Neither of these items would be required if we kept a more simplistic approach to assessment, such as per meter or per lot charges. However, these methods are generally seen as a less- desirable way to charge customers, as they don’t get at the heart of what impacts the stormwater system (run off, age of existing infrastructure, etc). UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission is does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY15. Report compiled on: November 27, 2013 Attached: Draft Storm Water Fund CIP 82 Storm Water Utility Capital Improvement PlanFinancial Summary Current YearFY14 FY15 FY16 FY17 FY18 FY19UnscheduledProjected Beginning Reserve Balance Dedicated to CIP‐$ ‐$ (53,188)$ 6,466$ 69,101$ 135,495$ Plus: Storm Water Utility Fees Dedicated to Capital‐$ 56,813$ 59,653$ 62,636$ 66,394$ 70,378$ Less: Scheduled CIP Project Costs‐$ (110,000)$ ‐$ ‐$ ‐$ ‐$ (1,139,300)$ Projected Year‐End Cash Dedicated to CIP‐$ (53,188)$ 6,466$ 69,101$ 135,495$ 205,873$ (1,139,300)$ Assumptions Made for Revenue Estimates: Current YearFY13 FY15 FY16 FY17 FY18 FY19Estimated Annual Storm Water Utility Revenue 225,000$ 225,000$ 227,250$ 238,613$ 250,543$ 265,576$ Estimated Annual Increase ‐ Attributed to Growth 1% 1% 1% 2% 2% Estimated Annual Increase ‐ Rate Increase 4% 4% 4% 4% 4%Total Estimated Revenues 225,000$ 227,250$ 238,613$ 250,543$ 265,576$ 281,510$ Current Revenues Dedicated to CIP % 0.0% 25.0% 25.0% 25.0% 25.0% 25.0% Plus: Increase Dedicated to Capital 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP 0.0% 25.0% 25.0% 25.0% 25.0% 25.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP‐$ 56,813$ 59,653$ 62,636$ 66,394$ 70,378$ Note: Many Capital Items are listed as "unscheduled" until our Utility method for charging customers is refined to be more equitable for Storm Water customers, anticipated in approx FY15.1,200,0001,000,000800,000600,000400,000200,0000FY15 FY16 FY17 FY18 FY19 UnscheduledStorm Water Projects 83 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY16UnscheduledFY15FY17FY18FY19Storm Water FundSTRM01STORM WATERVALLEY UNIT PARK$80,000STRM02STORM WATERROCKY CREEK STORM WATER IMPROVEMENTS$20,000STRM04STORM WATERANNUAL STORM WATER PIPE REHABILITATION$300,000STRM08STORM WATERROUSE AVENUE STORM DRAIN UPSIZING$186,300STRM09STORM WATERROUSE AVENUE STORM WATER TREATMENT$93,000STRM10STORM WATERSWEEPER$75,000STRM11STORM WATERSERVICE TRUCK$40,000STRM12STORM WATERFLUSHER VAC TRUCK$345,000STRM14STORM WATERSTORM WATER RATE STUDY$35,000STRM15STORM WATERIMPERVIOUS SURFACE DATA CREATION$75,000Summary for Storm Water Fund (10 items)Totals by year:$110,000$1,139,300FY15FY16FY17UnscheduledFY19FY1884 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM01 DEPARTMENT STORM WATER PROJECT NAME Valley Unit Park FY15 FY16 Unscheduled $80,000 DESCRIPTION OF PROJECT Improvements to the detention pond at Valley Unit Park, as described on page 6-5 in the Storm Water Facility Plan. This item is listed as unscheduled until our Utility method for charging customers is refined to be more equitable for Storm Water customers. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Will reduce flooding along Meagher Avenue and Durston Road ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Storm Water Utility, possible Grants. New Replacement Equipment Project FY17 FY18 FY19 85 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM02 DEPARTMENT STORM WATER PROJECT NAME Rocky Creek Storm Water Improvements FY15 FY16 Unscheduled $20,000 DESCRIPTION OF PROJECT Improvements to increase and restore the native vegitation cover and diversity, thereby reducing sedimentation and improving water quality in Rocky Creek, as described on page 6-7 of the Storm Water Facility Plan. This item is listed as unscheduled until our Utility method for charging customers is refined to be more equitable for Storm Water customers. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Reduced sedimentation and improved water quality. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Storm Water Fund, possible grants. New Replacement Equipment Project FY17 FY18 FY19 86 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM04 DEPARTMENT STORM WATER PROJECT NAME Annual Storm Water Pipe Rehabilitation FY15 FY16 Unscheduled $300,000 DESCRIPTION OF PROJECT General repairs and infrastructure maintenance are estimated to cost $300,000 per year. After mapping and condition assessments are complete, the utility will begin a systematic program of infrastructure repair and replacement, including installation of Storm Water Treatment systems. In the future, specific projects and project areas will be defined. Until then, this item acts as a financial indicator of that work program. When specific projects are scheduled in the CIP, those amounts will reduce the $300,000 scheduled in this item each year. One year's allocation of this item is listed as unscheduled until our Utility method for charging customers is refined to be more equitable for Storm Water customers. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Storm Water Fund, grants when available. New Replacement Equipment Project FY17 FY18 FY19 87 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM08 DEPARTMENT STORM WATER PROJECT NAME Rouse Avenue Storm Drain Upsizing FY15 FY16 Unscheduled $186,300 DESCRIPTION OF PROJECT This project is in coordination with the MDOT improvements to Rouse Avenue. It entails the upsizing of Stormwater Infrastructure on Rouse. We will need to be prepared to fund this project in according the construciton timelines established by MDOT, which are fairly fluid at this point. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Storm Water Utility, TSEP Grant, other grants. New Replacement Equipment Project FY17 FY18 FY19 88 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM09 DEPARTMENT STORM WATER PROJECT NAME Rouse Avenue Storm Water Treatment FY15 FY16 Unscheduled $93,000 DESCRIPTION OF PROJECT This project is in coordiantion with the MDOT improvements to Rouse Avenue. It will provide Storm Water treatment facilities for run-off on Rouse Avenue. We will need to be prepared to fund this project in according the construciton timelines established by MDOT, which are fairly fluid at this point. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Storm Water Utility, TSEP Grant, other grants. New Replacement Equipment Project FY17 FY18 FY19 89 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM10 DEPARTMENT STORM WATER PROJECT NAME Sweeper FY15 FY16 Unscheduled $75,000 DESCRIPTION OF PROJECT Sweeper Lease, for cleaning streets. Keeping streets free from debris keeps the sedimentation and objects out of our storm water system. ALTERNATIVES CONSIDERED Borrow Sweeper from Street Division ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Maintenance Costs FUNDING SOURCES Stormwater Utility New Replacement Equipment Project FY17 FY18 FY19 90 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM11 DEPARTMENT STORM WATER PROJECT NAME Service Truck FY15 FY16 Unscheduled $40,000 DESCRIPTION OF PROJECT New Vehicle dedicated to use by Storm Water crews. ALTERNATIVES CONSIDERED Borrow vehicle from other divisions; purchase used truck. ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Minimal Maintenance Costs FUNDING SOURCES Storm Water Fund New Replacement Equipment Project FY17 FY18 FY19 91 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM12 DEPARTMENT STORM WATER PROJECT NAME Flusher Vac Truck FY15 FY16 Unscheduled $345,000 DESCRIPTION OF PROJECT Replacement of 20 year old vac truck handed down from the sewer division. This truck is used to flush vacuum storm sewer mains. ALTERNATIVES CONSIDERED Continue using current truck and pay increased costs to maintain. ADVANTAGES OF APPROVAL Increased reliability and safety for staff and stormwater operations. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual operating and maintenance costs (expected to be lower than existing vehicle) FUNDING SOURCES Storm Water Fund New Replacement Equipment Project FY17 FY18 FY19 92 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM14 DEPARTMENT STORM WATER PROJECT NAME Storm Water Rate Study FY15 $35,000 FY16 Unscheduled DESCRIPTION OF PROJECT The City will hire a contractor to perform a rate study to analyze different rate structures and methods for assessing our stormwater fees. ALTERNATIVES CONSIDERED Continue calculating rates as we currently are or develop another method ADVANTAGES OF APPROVAL The City's Stormwater Utility is new and our system hasn't been maintained in the past. A rate study will allow us to determine how we should be assessing rates so we can ensure that our utility can support itself and we can better maintain and build our system in the most effective way possible. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED None FUNDING SOURCES Storm Water Fund. New Replacement Equipment Project FY17 FY18 FY19 93 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM15 DEPARTMENT STORM WATER PROJECT NAME Impervious Surface Data Creation FY15 $75,000 FY16 Unscheduled DESCRIPTION OF PROJECT Create polygon data to represent the extent of impervious surface area for all properties - so that the Storm Water Utility can base its charges on the impervious surface on each property. ALTERNATIVES CONSIDERED Use existing (partial) Department of Revenue data to supplement known property areas ADVANTAGES OF APPROVAL This information will allow for the accurate assessment of the relative impact of stormwater runoff. Industry best practices recommend that impervious surface is the most defensible and common method used for storm water utility fee calculations. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Recurring costs may be required depending on the level of detail necessary to support overall policy direction (i.e., residential vs commercial vs tiered structure, etc). Interdepartmental workflow will also be necessary to coordinate and update/maintain construction information on a persistent basis FUNDING SOURCES Storm Water Fund. New Replacement Equipment Project FY17 FY18 FY19 94