HomeMy WebLinkAboutPackets - Stormwater Utillity Commission (105)AGENDA
ORO VALLEY STORMWATER UTILITY COMMISSION
WORK STUDY SESSION
NOVEMBER 19, 2015
HOPI CONFERENCE ROOM
11000 N. LA CANADA DRIVE
WORK STUDY SESSION AT OR AFTER 3 P.M.
CALL TO ORDER
ROLL CALL
1. Presentation on how the Pima County Flood Control District Funds Projects by
Deputy Director Bill Zimmerman
2. Review and discuss the Stormwater Rate Analysis Report
ADJOURNMENT
POSTED: 11/12/15 at 5:00 p.m. by mrs
When possible, a packet of agenda materials as listed above is available for public
inspection at least 24 hours prior to the Stormwater Utility Commission meeting in the
Town Clerk's Office between the hours of 8:00 a.m. and 5:00 p.m.
The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any
person with a disability needs any type of accommodation, please notify the Town
Clerk’s Office at least five days prior to the Commission meeting at 229-4700.
INSTRUCTION TO SPEAKERS
Members of the public have the right to speak during any posted public hearing.
However, those items not listed as a public hearing are for consideration and
action by the Stormwater Utility Commission during the course of their business
meeting. Members of the public may be allowed to speak on these topics at the
discretion of the Chair.
If you wish to address the Commission on any item(s) on this agenda, please complete
a blue speaker card and give it to the Recording Secretary. Please indicate on the
speaker card which item number and topic you wish to speak on, or if you wish to speak
during “Call to Audience,” please specify what you wish to discuss when completing the
blue speaker card.
“Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions,
and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and
Section 2-4-2 of the Oro Valley Town Code, a majority of the Town Council, Board of
Adjustment, Conceptual Design Review Board, Historic Preservation Commission,
Parks and Recreation Advisory Board, Planning and Zoning Commission, and Water
Utility Commission may attend the above referenced meeting as a member of the
audience only.”
STORMWATER RATE
ANALYSIS REPORT
AND
RECOMMENDATION
2015
DATE: 12‐19‐2015
STORMWATER UTILITY – DEVELOPMENT & INFRASTRUCTURE SERVICES
TOWN OF ORO VALLEY | 11000 N La Canada Drive, Oro Valley, AZ 85737
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Stormwater Utility Mission
To provide safe and efficient management of the Stormwater Utility, promote and
protect life and safety, water quality, and the Town’s working and natural environments
before, during, and after the occurrence of storm events in accordance with all Town
codes, standards and policies.
ORO VALLEY TOWN COUNCIL
Dr. Satish I. Hiremath, Mayor
Lou Waters, Vice Mayor
Brendan Burns, Council Member
William Garner, Counci l Member
Joe Hornat, Council Member
Mary Snider, Council Member
Mike Zinkin, Council Member
ORO VALLEY STORMWATER UTILITY COMMISSION
David Parker, Chair
Michael Stankiewicz, Vice Chair
Jim Mikolaitis, Commissioner
John Lynch, Commissioner
Frederick Wayand, Commissioner
TOWN STAFF
Greg Caton, Town Manager
Stacey Lemos, Finance Director
Paul Keesler P.E., Director
Aimee Ramsey, Assistant Director
Phil Trenary, Operations Manager
Michael Todnem P.E., Stormwater Sr. Civil Engineer
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Table of Contents
PART I. Executive Summary ................................................................................................. 3
PART II. Regulatory Program Information .............................................................................. 5
Stormwater Infrastructure ................................................................................................... 5
Background ............................................................................................................................. 7
Stormwater Purpose ........................................................................................................... 7
Municipal Separate Storm Sewer System (MS4) ............................................................... 9
Part III: Stormwater Utility Rate Proposal ............................................................................. 11
Current Funding ................................................................................................................ 11
Revenue Forecast and Requirements .............................................................................. 12
Organization Chart................................................................................................................ 13
Current Stormwater Utility Structure ................................................................................. 13
Proposed Stormwater Utility Division Structure ................................................................ 14
Appendices ........................................................................................................................... 15
Appendix A – Stormwater Fund 5 Year Forecast ............................................................. 16
Appendix B – Stormwater Utility Fund Chart .................................................................... 17
Appendix C – Stormwater Fund Preferred Scenario – 5 Year Forecast ........................... 18
Appendix D – Stormwater Project Listing ......................................................................... 19
Appendix E – Western Kentucky University...................................................................... 20
Appendix F – Equivalent Residential Unit Study .............................................................. 21
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
PART I. Executive Summary
The functions and duties of the Oro Valley Stormwater Utility Commission “Commission”
include reviewing and developing recommendations for Stormwater revenue requirements,
Stormwater rates and fee structures. Controlling the Stormwater drainage runoff and aiding
in water quality management has become essential in keeping our water safe for all of its
many uses.
The Stormwater Utility has been in place since 2004 and associated fees since 2006. Since
the initial rate was established no formal review of the program and associated rates has
taken place. It is the intention of the Commission to annually evaluate the rates and
analyze to assure the recommendations meet Town policies and the programs ensure the
financial stability of the program and associated projects.
This Stormwater Rate Analysis Report contains detailed information on the Stormwater
Utility fund. The Stormwater Utility “Utility” is an enterprise of the Town and generates
revenue from rates, fees and charges and does not receive revenue from taxes or
payments from the General Fund. The management of the monthly utility fees include
personnel, operations and maintenance of the Small Municipal Separate Storm Sewer
Systems (MS4) Program. The Utility pays the General Fund for services received
including finance, human resources, information technology, legal, insurance and rental of
office space. The Utility also pays the Water Department for billing and receiving of the
monthly utility fee. In addition, since the Utility does not have its own maintenance crew, the
Utility pays the Highway Fund for associated expenditures for street sweeping, storm
cleanup and drainage channel vegetation. The Utility hires local contractors to complete
Stormwater projects that exceed the work load capabilities of the operations street crew.
This past fiscal year expenditures totaled just under $100,000 for contract maintenance.
The Stormwater Utility Commission has made a recommendation for a Preferred Financial
Scenario (PFS). The PFS has been selected to meet the minimum requirements as outlined
under the Stormwater Town Code 15-2413-H. The Town Council shall, by resolution,
establish the annual (fiscal year) monthly base rate for the Stormwater Utility fee. The base
rate shall be calculated to ensure adequate revenues to fund the costs of stormwater
management and to provide for the operation, maintenance, and capital improvements of
the stormwater system in the Town.
Under the Preferred Financial Scenario, the Operating Fund will have an approximate
ending cash balance of just over $200K at the end of the five-year projection period. A cash
balance of 15% (based on revenue projection) is required by Town Code. This amount
preserves a balance of 17% to 25% depending on the fiscal year and the associated capital
expenditure requirements. The Preferred Financial Scenario includes cash funding to
preserve $50K per year for culvert and wash cleaning as well as increased expenditures on
internal small projects by $80,000 per year or $400,000 over the five-year period. The
Preferred Financial Scenario proposes no other new debt for capital expenditures.
This is the first year since establishment of the rate in 2006 that the rate has been reviewed.
The Stormwater Rate Analysis is prepared based on the most up-to-date information
available for a five-year projection period. Operational needs and capital improvement
requirements change annually and are carefully evaluated when they are included in the
analysis. The Stormwater Utility Commission reviewed several scenarios, however, based
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
on the necessary funding amounts required to meet minimum outcomes, maintenance
requirements have a five-year sustainable rate. Table 1 reflects the proposed rate changes
to the Stormwater Utility fee.
Table 1
Stormwater Preferred Funding Scenario
FY 2015/16 FY 2016/17
Monthly Stormwater Utility
Fee/Unit Current ERU Reduction
Residential Rate $2.90 $4.50
Commercial Rate $2.90 $4.50
ERU = Square Feet 5,000 4,000
# of Units:
Residential 17,460 17,749
Commercial 5,068 6,335
Total
Units: 22,528 22,817
Revenue:
Gross Revenues $ 783,974 $ 1,300,536
Funding from Outside Sources $ 3,250 $ 3,250
Grant Funds
$ 787,224 $ 1,303,786
Additional Revenue $ 516,562
Purpose of Fee
Program Development – project definition
Program Proposal – project design and costing
o Budget development
o CIP development
Construction Management
o New projects small and large
o Maintenance Oversight
Increased Inspections
o New washes
o Additional residential requirements
Management of existing assets
o Review of status of infrastructure stability
o Service and maintenance work order schedules
o Annual review
Business Continuity
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
PART II. Regulatory Program Information
Why Must We Manage Stormwater?
The Town of Oro Valley administers, operates, and maintains a stormwater management
program meant to:
Preserve valuable natural resources
Protect people and property
Reduce nuisance flooding
Improve water quality
The U.S. EPA has estimated that about 30 percent of known pollution to our nation's waters
is attributable to stormwater runoff. In 1987, Congress directed U.S. EPA to develop a
regulatory program to address the stormwater problem. U.S. EPA issued regulations in
1990 authorizing the creation of a NPDES permitting system for stormwater discharges
from a select group of industrial activities. The National Pollutant Discharge Elimination
System (NPDES) is the administrative mechanism chosen for the stormwater permitting
program. In Arizona, this program is called Arizona Pollutant Discharge Elimination System
(AZPDES). An AZPDES permit is required for any point source discharge of pollutants to a
water of the United States. Because stormwater runoff can transport pollutants to either a
municipal separate storm sewer system or to a water of the United States, permits are
required for those discharges.
ADEQ has prepared a draft 2016 Small Municipal Separate Storm Sewer System General
Permit (Small MS4 GP) that is intended to succeed the 2002 Small MS4 GP (Permit No.
AZG2002-002) which is currently administratively continued. The review and subsequent
adoption of this general permit is scheduled to occur in early 2016. The draft general permit
2016 builds on the requirements of the previous general permit and is designed to control
pollutants to the maximum extent practicable (MEP). The new draft requires updates in the
SWMP consistent with the specific permit requirements, implementing the program and
evaluating the BMP’s as an iterative process to ensure BMP effectiveness. The new draft
permit will contain more specific tasks and details than the current 2002 general program
and therefore require additional management and program compliance to control pollutants.
Stormwater Infrastructure
Table 2
as of August 2015
Assets Listing 2006 2015 Change Growth
Miles of FEMA designated floodplains/levees, 18 18 0
Square Miles of FEMA designated floodplains/levees, NA 35 NA
Square miles of mapped local regulatory floodplains NA 1.285 NA
Miles of underground storm pipe, 4.5 6.485 1.985 44%
Miles of public drainage easements, 5 5 0 0%
Street catch basins/inlets, 400 560 160 40%
Culverts, 180 209 29 16%
Detention basins, 40 127 87 218%
First flush devices, and 50 66 16 32%
Outfalls, and 150 261 111 74%
Lineal miles of mapped washes. NA 195 NA
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
The Preferred Financial Scenario rate increase to $4.50 per month with a reduction in the
Equivalent residential unit (ERU), average (amount of impervious area associated with single-
family residential property in the Town) to 4,000 square feet per month will allow the
Stormwater Utility to meet:
MS4 compliance and review minimums
o Redesign program to meet new 2016 General Permit Requirements as
outlined by ADEQ
Project Identification 20% to 30% level
- costing
- design
- build under 80K projects
Work order development
- Prioritization of inspection and maintenance scheduling
- increased inspections
- increased Public Education
Program Sustainability
- 5 years
Note: Program Sustainability only accounts for funds to preserve activities defined above.
Additional County or other external funds must become available to pay for larger capital
projects which will be identified. In the absence of County or other external funds, the rate
structure will need to be revised again within one or two years or so that large capital
projects identified by the new staff can be completed and funded by the Utility.
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Background
Oro Valley is located in northern Pima County approximately six miles north of the Tucson
city limits. The valley itself was formed by the Canada Del Oro Creek that begins in the
Santa Catalina Mountains. The town sits at an elevation of 2,620 feet, covers over 34
square miles and has a current population of just over 41,000. Oro Valley was incorporated
in April, 1974.
The Town initially became covered by the NPDES General Permit For Discharges from
Small Municipal Separate Storm Sewer Systems (MS4) in 2004. This permit, often simply
called a “Stormwater Permit,” is required by the US Environmental Protection Agency and is
implemented in Arizona by the Arizona Department of Environment Quality (ADEQ). Neither
the US EPA nor the State of Arizona provides any funding to Oro Valley for the operation of
the Stormwater Program.
Most cities and counties with a population greater than 10,000 and/or located in an
“urbanized area” as defined by the US Census must follow this permit, which regulates
discharges of stormwater runoff to waters of the state.
Stormwater Purpose
The Stormwater Utility program is responsible for meeting all quality and quantity issues
including the Town's Stormwater Management Plan, Floodplain and Erosion Hazard
Management, and supporting all other Town programs that are impacted by storm events. This
program also coordinates with Federal, State and local government agencies related to the
Town's Stormwater program.
Typical Storm Water Activities Include:
• Drainage Channel Vegetation Maintenance*
• Storm System Inspections
• Storm Cleanup
o Street Sweeping ‐ Stormwater determination*
o Normal street surface deterioration
o Low water crossings depositing
sand, rock, boulders and vegetation
debris*
o Windblown material from shoulders
during dry season
o Sediment deposition in roads during
larger events of monsoons*
o Material blown out of/ or dropped
from trucks
Storm generated Debris Removal*
Road Safety due to storm activity at low water crossings and shouldering due to
erosion*
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
• Public Education and Outreach
• Technical Support
• Minor Construction and Repair Projects – Post storm event structural damage that
endangers the public or may realize more extensive damage if not repaired
immediately*
• Hydrologic and Hydraulic Studies and Designs
• Preparing and Revising Town Ordinances and Manuals
The Stormwater Utility fee also reimburses the Highway Fund for utilization of the streets crews
for some of the activities listed above and marked with an (*). The allocated expenditures are
determined by task and scope and are assigned to the Stormwater Utility funds and are not
considered routine street maintenance.
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Municipal Separate Storm Sewer System (MS4)
The permit provides requirements in each of the following six Minimum Control Measures
(MCM):
1. Public Education and Outreach
2. Public Involvement/Participation
3. Illicit Discharge Detection and Elimination
4. Construction Site Stormwater Runoff Control
5. Post-Construction Stormwater Management in New Development and Re-
Development
6. Pollution Prevention/Good Housekeeping for Municipal Operations
More information about each of these six main categories is provided below.
Public Education and Outreach & Public Involvement/Participation
These two related topics focus on educating and involving the public in all areas of
stormwater management. Several factors associated with the program costs: the size of
community and our target audience in order to increase Stormwater awareness, the ability
to tie into other municipal/3rd Party education programs versus developing our own, types
of education and outreach media used, the method of distribution through available
volunteer activities/programs, and the methods of measuring success and reporting to
ADEQ.
Illicit Discharge Detection and Elimination
Our Stormwater Permit requires and is dependent upon identifying and eliminating “illicit
discharges.” Town Code Article 15-24-14 defines the Town’s Stormwater Quality
Management System and Discharge Control Ordinance, passed in 2008. It defines “illicit
discharges,” prohibits them, and provides for enforcement options to eliminate them.
Program costs associated with eliminating “illicit discharges” are generated from the age
and extent of infrastructure, the mapping status and inventory of entire drainage system. At
present, services are based upon a complaint-based system versus a more costly proactive
detection. Current revenue covers staffing, contractor management, equipment to detect
discharges, and identify the source and cost of the actual repairs. It also includes Software
cost for database management, reporting and program evaluation.
Construction Site Stormwater Runoff Control
The next requirement of the Stormwater Permit is the control of runoff from construction
sites. Discharge of sediment or other waste (concrete truck washout, litter, etc.) from
construction sites is prohibited by the Town.
A permit is required for any land disturbance of any size inside the Town with a few
exceptions. Permit information and an application form may be picked up at the Town
located at 10000 N La Cañada Drive or may be downloaded from this website page. Please
call one of the contacts at the top of the page for more information. In addition, any land
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
disturbance totaling more than one acre requires a permit from the Arizona Department of
Environment and Conservation (ADEQ).
Program costs associated with this program element are dependent on the number of active
construction sites, the number of development projects in the pipeline, the average number
of inspections per site, and the current compliance record along with the efficiency of
enforcement.
Post-Construction Stormwater Management in New Development and Re-Development
Our Stormwater Permit requires treatment of stormwater runoff from areas of new
development and re-development. The cost factors associated with this part of the program
are dependent upon the number of development projects requiring municipal review and
inspection, the age and type of existing stormwater best management practices, future
enhancement of the review process to look for and encourage a site design, land use
planning for low impact development, and possible code updates to allow/foster green
infrastructure.
Pollution Prevention/Good Housekeeping For Municipal Operations
The final of the six stormwater permit requirements involves the Town’s own operations.
The Town must evaluate all sources of potential pollution such as streets and roads,
municipal parking lots, maintenance shops, outdoor storage areas, construction activities,
parks maintenance and landscaping, and salt storage. Procedures to eliminate or reduce
the potential for pollution must be developed, and employees must be trained on these
procedures at least annually. Cost factors associated with this requirement include the
number of Town facilities requiring pollution prevention plans, street sweeping and catch
basin cleanout equipment and labor, and employee education and training.
Storm Mitigation
Mutterer’s Wash Sept. 2014
Clean up cost FY 2015
$34,000
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Part III: Stormwater Utility Rate Proposal
Current Funding
Neither the State of Arizona nor the federal government provides funding for the Town’s
Stormwater Program. In 2008, the Town established a Stormwater Utility fee to provide
funding for implementing the requirements of the Stormwater Permit.
Pima County Flood Control District (PCFCD) under the State of Arizona enabling legislation
(Title 48 of ARS), is designated as a special taxing district and given the authority to levy
secondary property tax on parcels within the Town of Oro Valley. The Town of Oro Valley
and PCFCD have a very good relationship and over the past 10 years have been
successful in the delivery of both large and small Stormwater projects. However, this
funding is variable and not always available.
When the Stormwater Utility was first established, funding for projects was secured through
the budgeting process and overseen by Town consultants. The FEMA Lomas Del Oro
project in FY 09/10 was the last big project to be overseen by the Town. Since this time the
PCFCD requests project submittals and then prioritizes them to determine which projects
will move forward to oversee and implement. This year Pima County Flood Control District
has provided significant support in the area of wash maintenance and sediment removal.
However, no infrastructure projects and remediation of failing infrastructure occurred.
The PCFCD has already informed Stormwater staff that next year’s funding will be limited.
In addition, some items once available for funding such as low water crossings are no
longer eligible for funding even though they remain a safety concern for the Town. The
number of town projects is growing as more washes are identified and evaluated. Over 130
projects both large and small have been identified in Attachment D.
The Stormwater Utility intends to utilize part of the increased funding to develop not only a
project list, but develop the designated project to a design level that will include costing
scenarios. This process will allow the Town sound budgeting practices to evaluate capital
improvements and identify projects to submit for potential funding from the Pima County
Flood Control District. The new asset manager/engineer will be responsible for defining
these projects including separating out unit costs for services or outcomes.
Current Rate
Single-family residences currently pay $2.90 per month, billed to their water bill or
separately by the Town. Commercial facilities and non-profits are also charged $2.90 per
“Equivalent Residential Unit” (ERU) of impervious area (driveways, patios, roofs, or other
areas where stormwater does not infiltrate into the ground). At present an ERU is equal to
5,000 square feet per Town Code 15-24-13-G. For rental properties, the landlord may pay
the fee or may divide it amongst the tenants. The Preferred Financial Scenario includes a
five year projection of the fund and evaluates the impact of future costs and revenue
sources that will be required to meet those costs.
Staff conducted an impervious area distribution study this year to best determine the basic
ERU value. The result of the study indicates that the Town’s average rounded ERU value is
3,700 square feet. The report is provided under Attachment F. Since this study did not
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
measure all of the areas of drainage, the Commission believes that an ERU value of 4,000
square feet would be more accurate. Therefore the recommendation along with the rate
adjustment is to reduce the ERU value to 4,000. This new ERU change will require the
Town Code to be modified to reflect this new value. Along with the rate change the revised
Town Code will be submitted to Town Council for consideration and approval.
National Average
There are currently 1511 Stormwater Utilities throughout the United States (Campbell, 2011).
Western Kentucky University annually updates and provides access to their very extensive
Stormwater Utility database as summarized in Appendix E. This survey provides us the
opportunity to compare the Town’s current rate structure with others nationally. However, the
Western Kentucky University data survey results does not contain information about the
scope of activities of responding Utilities. The Oro Valley Stormwater Utility is performing
quality and quantity work whereas many survey responders may perform only quality work,
so direct comparison may not be representative.
The average national rate, as of the 2014 study, was $4.01 per month. The rates range from
“no fee” to $35.00 dollars per month to accommodate various programs with 10.6% of the
national rates being $2.50 to $2.99, over 34.5% of the utilities have rates averaging $3.00 to
$6.00 per month. In addition, for towns comparable in population to Oro Valley, approximately
256, the average monthly rate was cited as $4.26. The other noted comparison was the
equivalent residential unit (ERU) value of impervious surface. Only 11.5% of the utilities had
an ERU between 4,000 and 5,000 square feet. Over 22.8% classified an ERU as between
2,500 to 3,250 square feet. Many of the utilities, over 51.2% had an unspecified ERU.
Enhanced Program Highlights
The additional funding proposed will not only provide for the sustainability of the core
program, but increase utility infrastructure assets and associated maintenance requirements
as well as fund the development of small specific community infrastructure projects.
ADEQ has prepared a draft 2015 Small Municipal Separate Storm Sewer System General
Permit (Small MS4 GP) intended to succeed the 2002 Small MS4 GP (Permit No.
AZG2002-002). This draft is scheduled to be adopted in early 2016, significantly changing
and adding definition to the MCM required by each MS4. Adoption of the new rate will
provide funding for necessary staffing to ensure continued compliance.
Revenue Forecast and Requirements
Appendix A is a five year forecast for the Stormwater Utility should no rate increase occur.
As depicted in the chart, the utility has a structural deficit. The FY 2016-17 recommended
budget from staff would not meet the required reserve fund as outlined in the Town Code
15-24-10. A chart of the Stormwater Utility Fund is depicted in Appendix B.
The revenue forecast was based on analysis of the Stormwater Utility's monthly billing data
from FY 2015-16 and a projection of growth in the number of housing units expected to be
developed over the next five years. The revenue projects a flat fee not dependent on any
type of usage but is only coordinated with the total number of ERU’s calculated within the
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Town. The growth projected in residential units is determined by the Development and
Infrastructure permitting staff based on trend analysis.
Appendix C provides the detail information for moving forward with the Preferred Funding
Scenario. The 67% rate increase to $4.85 would provide for a stable and compliant
Stormwater program. The increase is established through Mayor and Council resolution
which was last updated November 7, 2007. Over the past 8 years the Stormwater
Management Program has developed. The opportunity presented to the Town with the
initial fee structure allowed staff to develop principles and best practices to meet the
requirements defined under the ADEQ MS4 program. The division produced its first annual
report and recently completed its first audit. The program’s parameters and outcomes have
changed. Since the initial conception and infancy the tasks and work have been defined.
With the aftermath of the audit, upcoming audit, and structural deficit, the rate increase is a
necessity.
The future expenditures stay relatively stable and grow to meet the projected personnel
costs, increase to support the Program Development, Design, Construction Management &
Maintenance program projects as outlined. In addition, the expenditures include a 3.5
percent annual merit. These projected increases are consistent with the General Fund's
financial planning. The projected operations and maintenance (O&M) costs include
inflationary increases in some areas that average 1.7 percent annually. The inflation factors
were provided by the Arizona Department of Revenue.
Organization Chart
Current Stormwater Utility Structure
Director
Paul Keesler
Assistant Director
Aimee Ramsey
Operation
Manager
Phil Trenary
Stormwater Sr
Engineer
Mike Todnem
Stormwater
Engineer
Fritz Loas
Stormwater
Technician
Rob Wilson
Stormwater
Utility
Commision
Advisory Board
Office
Specialist
Carmen Ryan
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Proposed Stormwater Utility Division Structure
Director
Paul Keesler
Assistant Director
Aimee Ramsey
Stormwater Utility
Manager/Sr Engineer
Mike Todnem
Stormwater
Engineer
Fritz Loas
Asset Mgr
Engineer
NEW
Stormwater
Proj/Const Mgr
NEW
Stormwater
Technician
Rob Wilson
Stormwater
Utility
Commision
Advisory Board
PT Office
Assistant
NEW
Program
Management
& Compliance
Program Development,
Design, Construction
Management & Maintenance
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Appendices
Maintaining our washes
Before
After
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Appendix A – Stormwater Fund 5 Year Forecast
Stormwater Fund 5 Year Forecast Status Quo Revised: 10/19/2015
FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 19/2020 FY 2020/21
Actual Actual Budgeted
# of Units:
Residential 15,624 15,624 15,764 16,107 16,496 16,827 17,053 17,203
NEW:projected Residential 140 343 389 331 226 150 150
Commercial 3,852 3,852 3,852 4,063 4,063 4,063 4,063 4,063
NEW:projected Commercial - - 211 - - - - -
Metro Water - Residential 1,353 1,353 1,353 1,353 1,353 1,353 1,353 1,353
Metro Water - Commercial 1,005 1,005 1,005 1,005 1,005 1,005 1,005 1,005
Total Units:21,834 21,974 22,528 22,917 23,248 23,474 23,624 23,774
Carry forward Fund Balance 513,709$ 503,474$ 289,933$ 183,042$ 48,877$ (57,912)$ (134,551)$ (261,362)$
Revenue:
Monthly Stormwater Utility Fee/Unit 2.90$ 2.90$ 2.90$ 2.90$ 2.90$ 2.90$ 2.90$ 2.90$
Gross Revenues 759,404$ 771,578$ 783,974$ 797,512$ 809,030$ 816,895$ 822,115$ 827,335$
Funding from Outside Sources 1,225 310 3,250 3,331 3,415 3,500 3,587 3,677
Grant Funds 35,000
760,629$ 771,888$ 822,224$ 800,843$ 812,445$ 820,395$ 825,703$ 831,012$
Expenses:3.5%
Personnel
0.25 Operations Division Manager
1.00 Stormwater Sr. Civil Engineer
1.00 Stormwater Civil Engineer
1.00 Stormwater Technician II
0.60 Senior Office Specialist
0.63 Stormwater Intern
Total Personnel: 309,470$ 326,482$ 346,620$ 345,568$ 357,663$ 370,181$ 383,137$ 396,547$
Contracts/Services
Outside Professional Services* 90,000 111,326 116,795 a 117,963 119,143 120,334 121,537 122,753
Low Impact Development - 35,000
Other - 50,000 50,000 50,000 50,000 50,000 50,000
Stormwater Maintenance 129,775 129,493 134,000 b 138,690 143,544 148,568 153,768 159,150
Vehicle Repair & Maintenance 34,686 2,796 19,800 a 19,998 20,198 20,400 20,604 20,810
Equipment Repair & Maintenance 48,749 32,000 a 32,320 32,643 32,970 33,299 33,632
Rentals 102 - 250 a 253 255 258 260 263
Telecommunications 1,914 1,338 1,400 a 1,414 1,428 1,442 1,457 1,471
Postage 154 41 250 a 253 255 258 260 263
Printing & Binding 657 421 1,000 a 1,010 1,020 1,030 1,041 1,051
Travel & Training 2,335 4,870 5,000 a 5,050 5,101 5,152 5,203 5,255
Membership 6,000 6,140 7,500 a 7,575 7,651 7,727 7,805 7,883
Office Supplies 1,557 1,681 2,000 a 2,020 2,040 2,061 2,081 2,102
Gasoline 20,674 17,363 24,500 a 24,745 24,992 25,242 25,495 25,750
Uniforms 461 416 750 a 758 765 773 780 788
Bad Debt Expense 868 841 750 a 758 765 773 780 788
Field Supplies 851 9,000 9,000 a 9,090 9,181 9,273 9,365 9,459
Safety 279 500 a 505 510 515 520 526
Software Maintenance & Licensing 1,155 1,511 1,500 a 1,515 1,530 1,545 1,561 1,577
SW Projects 36,257 81,876 50,000 50,000 50,000 50,000 50,000 50,000
Depreciation 65,000 125,000 135,000 135,000 135,000 135,000 135,000 135,000
Total Contracts/Services: 392,447$ 543,140$ 626,995$ 598,915$ 606,021$ 613,320$ 620,818$ 628,520$
Capital Outlay/Projects
Minor Assets 2,266 2,500 a 2,525 2,550 2,576 2,602 2,628
Misc - Mos. Trapping 10,012 3,407 3,407 3,407 3,407 3,407 3,407
Vehicle Reserves 26,556 26,250 38,000 38,000 38,000 42,550 42,550 42,550
Vehicles - - - 35,000 - - 35,000 -
Capital Interest 3,798 1,919 305 305 305 - - -
Equipment 103,593 200,360 46,288 46,288 46,288 290,000 - -
Total Capital Outlay 133,947$ 240,807$ 90,500$ 125,525$ 90,550$ 338,533$ 83,559$ 48,585$
Total Expenses: 835,864$ 1,110,429$ 1,064,115$ 1,070,008$ 1,054,234$ 1,322,034$ 1,087,514$ 1,073,652$
Ending Balance/Contingency Reserve 503,474$ 289,933$ 183,042$ 48,877$ (57,912)$ (134,551)$ (261,362)$ (369,002)$
37.6% 23.3% 6.1% -7.2% -16.5% -31.8% -44.6%
Vehicle Reserve - Replacement 26,556$ 52,806$ 90,806$ 93,806$ 131,806$ 174,356$ 181,906$ 224,456$
Assumes Growth in Benefits & Wages b 3.5%
Internal drainage projects remain the same
Cost Escalation a 1.0%
Notes:
>continue to pay Operations Manager out of Hwy Fund except for .25
> continue to charge out operations support to Hwy Fund per current method
>ending revenue amounts are estimates subject to further revisions, and may not tie to cash balance in fund due to timing of revenues and expenditures
Assumes $2.90 fee/ERU
Draft Projected
Page | 17
STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Appendix B – Stormwater Utility Fund Chart
Revenue:$800,843 $812,445 $820,395 $825,703 $831,012
Expenditures 935,008 919,234 1,187,034 952,514 938,652
Fund Balance $48,877 $(57,912) $(134,551) $(261,362) $(369,002)
‐1,000,000
‐500,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
STORMWATER UTILITY FUND
Revenue:Expenditures Fund Balance
Page | 18
STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Appendix C – Stormwater Fund Preferred Scenario – 5 Year Forecast
Stormwater Perferred Funding Option - 5-year projection Revised: 9/24/2015
FY 2015/16 FY 2016/17
Current Change ERU Notes
Residential Rate $2.90 $4.50
Commercial Rate $2.90 $4.50
ERU = Square Feet 5,000 4,000
# of Units:
Residential 17,460 17,749
Commercial 5,068 6,335
Total Units:22,528 24,084
Carryforward Fund Balance 289,933$ 183,042$
Revenue:- Corrects structural deficient
Gross Revenues 783,974$ 1,300,536$ - Increases maintenance abilities
Funding from Outside Sources 3,250$ 3,250$ Provides staffing to
Grant Funds - Increases reporting / ADEQ BMP's
787,224$ 1,303,786$ - Develop a CIP program with projects
Additional Revenue 516,562$ - Manage and Inspect additional assets
Expenses:
Personnel
3.8 Current Staff 346,620$ 358,752$
New - Proposed
115 -1.0 Asset Mgr./Engineer - 69,089
119 -1.0 Stormwater Prj.-Const. Mgr - 83,982
5.8 Total Stormwater Staff - 153,071
Total Personnel: 346,620$ 511,822$
Contracts/Services Tasks - Outcomes
Outside Professional Services* 116,795 118,000 Project Identification
Stormwater Maintenance - OPS 134,000 139,000 - costing
Design/Consultants 50,000 10,000 - design
Increase Maintenance (Services)80,000 - build/maint under 80K
Culvert Cleaning 50,000 50,000 Work order development
Vehicle Repair & Maintenance 19,800 21,000 - prioritization / maintenance scheduling
Equipment Repair & Maintenance 32,000 32,000 - increased inspections
Gasoline 24,500 27,000 - increased Public Education
Rentals 250 500 New Program Compliance
Telecommunications 1,400 2,800 Personnel/Operations cost
Postage 250 250 increase for deliverables
Printing & Binding 1,000 1,000 Program Sustainability
Travel & Training 5,000 10,000 - 5 years
Membership 7,500 7,500
Office Supplies 2,000 6,000
Uniforms 750 1,500
Bad Debt Expense 750 750
Field Supplies 9,000 18,000
Safety 500 1,000
Software Licensing 1,500 1,500
Misc. - Items (Mos. Trapping, etc.) 3,407 3,500
Depreciation 135,000 135,000
Total Contracts/Services: 595,402$ 666,300$
Capital Outlay/Projects
Minor Assets 2,500 3,500
Vehicle Reserves 38,000 41,500
Vehicles - 35,000
Capital Interest 305 1,025
Lg. Capital Projects
Equipment 46,288 46,288
Total Capital Outlay 87,093$ 127,313$
Total Expenses: 1,029,115$ 1,305,435$
Ending Balance/Contingency Reserve 183,042$ 316,393$
23.3% 24.3%
Five Year Projection Year 1 Year 2 Year 3 Year 4 Year 5
FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21
Balance 183,042$ 183,042$ 235,165$ 317,182$ 399,862$
Revenue 1,300,536$ 1,329,797$ 1,359,643$ 1,390,086$ 1,421,137$
Personnel 511,822$ 529,736$ 548,277$ 567,466$ 587,328$
O&M 527,300$ 532,573$ 537,899$ 543,278$ 548,710$
Ops Main 139,000$ 143,865$ 148,900$ 154,112$ 159,506$
Capital 127,313$ 71,500$ 42,550$ 42,550$ 312,550$
Expenditure 1,305,435$ 1,277,674$ 1,277,626$ 1,307,406$ 1,608,094$
YE Balance 313,143$ 235,165$ 317,182$ 399,862$ 212,905$
Reserve Balance Percent 24.1% 17.7% 23.3% 28.8%15.0%
Vehicles/Equipment Truck Truck Sweeper
Monthly Stormwater Utility Fee/Unit
55% Increase respectively
94% Increase respectively
*Commercial may apply for credit
Change in ERU requires the Town Code to
be modified
Change in rate is accomplished through a
resolution
Return at a later date > if there is support for
project implementation
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STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Appendix D – Stormwater Project Listing
The project listing on the following pages is a compilation of projects some of which that
have been on the books as early as 2006. Others projects have been added as new
washes and new assets have been inventoried. Over 120 projects now have been
identified. Projects have been categorized as;
Restoration
Maintenance
Study
Design/Construction
At this time none of these projects are funded.
Page | 20
STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Appendix E – Western Kentucky University
Western Kentucky University What other are doing.
Stormwater Utility Survey Summary
2014
Average Lowest Highest
Cities, Towns, Counties Fee Fee Fee
Total US Stormwater Utilities 1511 4.01$ ‐$ 35.00$
Fee Range No.
No Fee 264 17.5%
.01 to 1.49 96 6.4%
1.50 to 2.49 137 9.1%
2.50 to 2.99 160 10.6% 43.5% Town of Oro Valley
3.00 to 3.49 81 5.4%
3.50 to 3.99 99 6.6%Possible Rates ‐ Residetial
4.00 to 4.99 206 13.6% Rates FY 15/16 Increase Funds
5.00 to 5.99 136 9.0% 34.5% 2.90$ 783,974$
6.00 to 6.99 97 6.4% 3.63$ 981,320$ 25.0%
7.00 to 7.99 79 5.2% 4.35$ 1,175,962$ 50.0% 391,988$
8.00 to 8.99 46 3.0% 5.80$ 1,567,949$ 100.0% 783,975$
9.00 to 9.99 29 1.9% 16.6% 7.25$ 1,959,936$ 150.0% 1,175,962$
10.00 to 14.99 61 4.0%
15.00 to 35.00 20 1.3% 5.4%
1511 100.0% 100.0%
Population Average High
≤ 10,000 477 31.6% 3.71$ 19.43$
≤ 25,000 388 25.7% 4.15$ 14.00$
≤ 50,000 256 16.9% 4.26$ 14.46$ Town of Oro Valley
≤ 75,000 105 6.9% 81.1% 3.93$ 11.99$
≤ 100,000 67 4.4% 3.71$ 13.05$
≤ 150,000 58 3.8% 3.94$ 14.26$
≤ 250,000 59 3.9% 4.31$ 14.00$
≤ 500,000 52 3.4% 15.6% 4.01$ 13.78$
≤ 1,000,000 34 2.3% 4.34$ 16.75$
> 1,000,000 15 1.0% 3.2% 2.72$ 13.48$
1511 100.0% 100.0%
ERU Classifications
< 1000 18 1.2%
< 1250 26 1.7%
< 2000 64 4.2%
< 2500 112 7.4% 14.6%
< 2600 69 4.6%
< 2750 68 4.5%
< 3000 82 5.4%
< 3250 125 8.3% 22.8%
< 4000 122 8.1%
< 5000 52 3.4% 11.5%
5000 ≥ 9000 26 1.7% Town of Oro Valley
9001 ≥ 25000 10 0.7%
> 43500 35 2.3%
Unspecified 702 46.5% 51.2%
1511 100.0% 100.0%
Page | 21
STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Appendix F – Equivalent Residential Unit Study
Page | 22
STORMWATER RATE ANALYSIS REPORT AND RECOMMENDATION | Date: 12-19-2015
Report - Maps
Bibliography
Campbell, C. Warren (2011). Western Kentucky University 2011 Stormwater Utility Survey,
Western Kentucky University, Bowling Green, 51 pp.