Stormwater Funding and Utility Development Community Session AMEC Earth & Environmental, Inc.

1. Stormwater Funding and Utility DevelopmentCommunity SessionAMEC Earth & Environmental, Inc. Andy Reese Charlene Johnston

2. 1:00 IntroductionsOverview of municipal stormwater programs in RI – progress to date 1:15 Stormwater Utility Overview – Andrew Reese Keys to success at the local level Regional approaches 2:15 Break 2:30 Discussion: Municipal concerns, state role, next steps 4:00 Adjourn Agenda

3. Introductions RI Stormwater Overview

4. Stormwater Utility Overview1:15-2:15 What is a stormwater utility? What makes it “better” than other methods? How do we go about setting one up?

5. 1. “Run it in ditches” 2. “Run it pipes” 3. “Run it in stormwater pipes” 4. “Keep it from stormwater pipes” 5. “Just don’t cause a flood” 6. “Oh… and don’t pollute either” 7. “It’s the ecology stupid!” 8. “Water is water is water...shed” Urban Stormwater Paradigm Shifts

6. All these paradigms lead to specific drivers for stormwater programs: • Flooding problems • Aging infrastructure • Development pressures • Erosion of channels & creeks • Water quality & ecology • Regulatory mandates • Lawsuits • Quality of life & aesthetics • Preservation of property value • Drinking water protection and replenishment

7. 1. Administration General Administration Gen Prog Planning & Dev Interlocal Coordination Grants Program2. Billing And Finance Billing Operations Customer Service Financial Management Indirect Cost Allocation General Government Support 3. Public Ed & InvolvementPublic Awareness SW Qual Ed & Reporting Public Involvement Citizen’s Advisory Group Non-profit Integration Media Relations Risk Communications Elements of a comprehensive stormwater program 4. Technical Support GIS Applications Database Management Mapping & Imagery General Data Collection Web & Customer Support5. Engineering & Planning Des Criteria, Stds And Guidance Field Data Collection Quantity Master Planning Quality Master Planning Design, Field & Ops Engr Retrofitting For Water Quality Hazard Mitigation Zoning Support Multi-objective Planning Support6. Operations & Maintenance General Maintenance Mgmt General Routine Maintenance General Remedial Maintenance Emergency Response Maint Infrastructure Management Public Assistance 7. Capital Improvements Major Capital Improvements Minor Capital Improvements Land, Easement, And ROW 8. Regulation And Enforcement Code Dev & Enforcement General Permit Administration Drainage Sys Insp & Reg Zoning & Land Use Reg Special Inspection Programs Flood Insurance Program Multi-Obj Floodplain Mgmt Erosion Control Program Pest, Herb & Fertilizer Used Oil & Toxic Materials Spill Response & Clean UpIllicit Con & Illegal Dumping Groundwater & Drinking Water Watershed Assessment & TMDL Septic & I&I Program Industrial Program Monitoring

8. Stormwater Program Costs $/Dev. Acre/Year $250 Exceptional $200 Advanced $150 Moderate $100 Minimal Regulatory mandates or program anomalies can skew these numbers $50 Incidental $0

9. Public System Mine

10. What is a Stormwater Utility? Mix of methods • A funding method • A program concept • An organizational entity

11. 1. There are about 125 “funding” methods and variations for local governments… some better than others… 2. There is a big difference between “resources”, “money” and “revenue”

12. Resources, Money & Revenue • Resources – free, non-monetary, donated, volunteer, goods and services • Your neighbor’s lawnmower • Money – one-time, unpredictable, undependable, episodic, limited • You buy your own lawn mower • Revenue – regular, predictable, money, budgeted, cash flow • You hire a landscape firm

13. Building Blocks for Funding Fines Resource User Fee Volunteers Tax Assessment Impact Fee Bonding General Fund Special Sales Tax Shared Costs Inspection Fees Grants

14. Where are we? • What is a stormwater utility? • What makes it “better” than other methods • How do we go about setting one up?

15. Where are we? • What is a stormwater utility?

16. Public System Mine

17. What is a Stormwater Utility? Mix of Methods • A use-based funding method • A program concept • An organizational entity

18. Where are we? • What is a stormwater utility? • What makes it “better” than other methods

19. Advantages of a Stormwater Utility to Support Programs Read my lips: “no new taxes” Stable Adequate Flexible Equitable

20. User fee based StableUtility vs. Tax or “Money” Funding $$ “Money” or Tax-based Maximum possible program Time

21. 628 Utilities Some “apples and oranges” Some “lemons” Median = $3.23± Mean = $3.74±

22. Adequate $ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 8 $ 10 Okay - tell me when you start to feel this would be too much to charge to solve flooding and pollution problems where you live?

23. Adequate For every $1 dollar per month per house (and appropriate fees to non-residences) A utility can typically generate about $25 to $35 per developed acre per year. $4 fee $1 fee

24. Flexible • Primary source for the whole program • Other fees to enhance equity • Credits to encourage good performance • Can be geographically based • Can take into account environmental costs • Can encourage LID designs

25. Costs are driven by: runoff peak runoff volume runoff pollution Each of these variables is directly related to impervious area in an urban setting. Equitable “The more you pave the more you pay.”

26. How a Fee is Calculated:some estimate of development Equals 1.0 ERU Say it is 2500 sq ft

27. How a Fee is Calculated = 1 ERU = 40 ERUs less credit Rate structures can reflect a number of different things…not just impervious area

28. Typical Properties$4.00/month charge 2 tiers residential Fast Food $62.72/mo less credit 200,000 sq ft shopping 700,000 sq ft impervious $1121.20/mo less credit Large Res. $5.50/mo Small Res. $2.50/mo

29. Typical Commercial Building 60% parking 40% office 10 ERUs $4/mo/ERU 10,000 sq ft commercial bldg Say rental is $18/sq ft/yr or $180,000/yr User fee is $40/mo or $480/yr this is less than 5 cents per sq ft per year not counting credit (0.26%)

30. Where are we? • What is a stormwater utility? • What makes it “better” than other methods • How do we go about setting one up?

31. We first need to be clear about potential pitfalls…

32. Who will not like the concept? • tax exempt properties • people with large paved areas with cheap buildings • fixed income • sometimes developers don’t like it • MAYBE EVERYONE

33. Really, it would have worked but… -or-How To Fail Flawlessly

34. What failure is not: Not going forward with the utility Not achieving a mature program in the first few years – but knowing the program path Not having 100% approval or a unanimous vote What failure is: Having an uncontrolled and unplanned crash Not being able to meet the expectations you created (not a program driven rate) Having a generally ignorant or unsupportive public and stakeholders Defining “Failure” "Retreat Hell! We're just attacking in another direction.” H.P. Crowe

35. Andy’s Top Ten List • We did it the convenient and inexpensive way, not the right way. • We didn’t make a true compelling case. • We didn’t understand the process. • It was not legal. • We didn’t involve the community early enough or in the right ways. • We couldn’t explain our program and funding strategy or rates. • We didn’t prepare our elected officials for vocal complaints. • Our revenue and rate structure limited our ability to do our program. • Our database was messed up without ability to easily fix. • Our program or performance did not meet community expectations.

36. It can work: • There are probably 800 stormwater utilities that fund comprehensive stormwater management programs in the United States today • Probably 500 more that fund only part of a stormwater program

37. Really, it canwork and… -or-How To Succeed Flawlessly (almost)

38. Establishing a successful stormwater utility requires that you pay attention to five key areas of due diligence: Governance and inter-municipal consensus Program concept and the compelling case Public and political education and support Financial policies and documents Database development & accuracy and customer service A question of “due diligence”

39. Example Logic Justifying a Utility • Stormwater Problems are Real and Unresolved • The Problems Can be Solved • Government Must Lead • Benefits will Result • Adequate, Stable, Equitable Funding is Needed • A Utility is the most Practical Vehicle for Solutions

40. Can you make a compelling case… …with a straight face ?

41. Right Brain Flooding pictures Horror stories Movies Testimonials Environmental appeals Threats of impending doom Left Brain Statistics Cost information Infrastructure information Lost revenue or tourist dollars Regulatory Facts A strong compelling case unites diverse people:

42. Ok, lets talk mechanics of setting one up

43. With or without SWAC 2 or 3 Step Process DIMS Study Feasibility Study Utility Implementation

44. Heeeeers Charlene !

45. Advisability StudyDIMS (does it make sense…at all) A DIMS study takes quick and dirty look at whether it is advisable to begin the process of stormwater utility development and outlines a general roadmap, costs, and approach. It answers the question, “does this make sense at all?”

46. Why is a DIMS study a good thing? • Tests the water with very little political, financial, or emotional investment • Can normally be authorized without RFP • Operates “under the radar” as an internal quick study • Builds internal vision for going forward • Can happen very quickly – takes a couple days to complete

47. Program Priorities Background Information Cost vs. Revenue Next Steps If “GO” Show Stoppers Our Process Compelling Case

48. Program Priorities Background Information Cost vs. Revenue Next Steps If “GO” Show Stoppers Our Process Compelling Case

49. Size Urbanized area Population Character Environmental “feel” Economic condition Key industries Basic land use Leadership Current “hot issues” Stormwater Program Budget Activities Characteristics Other ?? Background Information:

50. Program Priorities Background Information Cost vs. Revenue Next Steps If “GO” Show Stoppers Our Process Compelling Case