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Item 1.
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| City Council Work Session | |
| Date: | 06/21/2021 |
| Title: | Stormwater Utility |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | Yes |
RECOMMENDATION
Staff recommends that City Council gives direction on the desired level of public involvement in further development of the stormwater utility and feedback on the Phase 1 results.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
In May 2020, Council authorized Staff to begin Phase I of the preliminary evaluation to form a dedicated stormwater utility. It was the intent of that initial evaluation to gather preliminary information on the existing storm system regarding operations, deferred maintenance, capital projects, and how the current revenue collected compares to current and desired level of services.
The City of Billings currently assesses a fee for stormwater for all city properties. The fee is based on zoning and square footage of the property. By creating a stormwater utility, the following benefits can be realized: formalized rules and regulations, a rate structure that is more equitable than the existing fee system including system development fees, proactive management of the infrastructure, and concentrated city resources to support a critical function.
Within the Phase I evaluation, it was found that the City owns approximately 300 miles of storm drain pipe, 9,300 inlets, 89 miles of open drains, and 26 acres of detention ponds. Furthermore, during the evaluation it was found that about 65% of existing stormwater system has little to no known information on material type, size, or age, and due to availability of maintenance personnel, much of the system does not receive annual maintenance. Phase I also explored the current City stormwater fee structure. The City fee structure was compared with other communities and against desired service levels.
Phase I identified six major categories that encompass a stormwater program:
· Deferred Maintenance
· Operations and Maintenance
· Capital Improvements
· Flood Protection and Risk Assessment
· Regulatory Water Quality Compliance
· Program Management and Administration
Phase I developed preliminary costs for each of these major categories. Four levels of service were explored in Phase I that directly relate to these preliminary costs and the anticipated timeframe to complete those activities; e.g. status quo, bronze, silver, and gold level of services. A higher level of service reduces the amount of time to complete deferred maintenance and construct capital projects.
Phase II will validate the information collected in Phase I and provide additional data not originally planned in Phase I. Within Phase I, it was found that major components of the storm system (boulder pits, open drains, outfalls) have no information collected and receive no ongoing maintenance. Phase II will further identify remaining system components and assign ongoing and deferred maintenance costs. In addition, Phase II will explore in much greater detail the regulatory water quality requirements and methods and costs to achieve compliance. Based upon Council’s direction and input, Phase II will identify a cost upon which a rate or fee structure can be developed based upon the desired level of service. One of those rate structures may utilize the amount of impervious surfaces on a property. If a new rate structure is selected by Council, Phase III will implement the new rate and processes identified in Phase II.
The City of Billings currently assesses a fee for stormwater for all city properties. The fee is based on zoning and square footage of the property. By creating a stormwater utility, the following benefits can be realized: formalized rules and regulations, a rate structure that is more equitable than the existing fee system including system development fees, proactive management of the infrastructure, and concentrated city resources to support a critical function.
Within the Phase I evaluation, it was found that the City owns approximately 300 miles of storm drain pipe, 9,300 inlets, 89 miles of open drains, and 26 acres of detention ponds. Furthermore, during the evaluation it was found that about 65% of existing stormwater system has little to no known information on material type, size, or age, and due to availability of maintenance personnel, much of the system does not receive annual maintenance. Phase I also explored the current City stormwater fee structure. The City fee structure was compared with other communities and against desired service levels.
Phase I identified six major categories that encompass a stormwater program:
· Deferred Maintenance
· Operations and Maintenance
· Capital Improvements
· Flood Protection and Risk Assessment
· Regulatory Water Quality Compliance
· Program Management and Administration
Phase I developed preliminary costs for each of these major categories. Four levels of service were explored in Phase I that directly relate to these preliminary costs and the anticipated timeframe to complete those activities; e.g. status quo, bronze, silver, and gold level of services. A higher level of service reduces the amount of time to complete deferred maintenance and construct capital projects.
Phase II will validate the information collected in Phase I and provide additional data not originally planned in Phase I. Within Phase I, it was found that major components of the storm system (boulder pits, open drains, outfalls) have no information collected and receive no ongoing maintenance. Phase II will further identify remaining system components and assign ongoing and deferred maintenance costs. In addition, Phase II will explore in much greater detail the regulatory water quality requirements and methods and costs to achieve compliance. Based upon Council’s direction and input, Phase II will identify a cost upon which a rate or fee structure can be developed based upon the desired level of service. One of those rate structures may utilize the amount of impervious surfaces on a property. If a new rate structure is selected by Council, Phase III will implement the new rate and processes identified in Phase II.
ALTERNATIVES
The presentation is primarily informational to update Council on the Phase 1 storm utility findings. The levels of services, costs, and rate alternatives will be analyzed further and fleshed out in Phase 2 and brought back to Council for direction. However, if Council currently has strong opinions regarding these issues, it would be helpful to obtain that feedback prior to the Phase II analysis. Staff is seeking specific direction from Council regarding the level of public involvement desired by Council in the development of the storm utility as we proceed into Phase II.
FISCAL EFFECTS
There are no direct fiscal impacts to directions given at this meeting. After Phase II, there will be opportunity for the City Council to determine the final rate or fee structure.