HomeMy WebLinkAbout40. 13-162
MARCH 26, 2013 13-162 RESOLUTION
(CARRIED___6-0____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: ESTABLISH 2013 STORM WATER UTILITY RATE TO $107.68/ERU
INITIATED BY: DEPARTMENT OF PUBLIC WORKS
STORM WATER UTILITY BOARD RECOMMENDATION: Approved
WHEREAS, the City of Oshkosh has previously established a Storm Water Utility; and
WHEREAS, Section 14-4 (B)(2) of the Oshkosh Municipal Code gives the Common
Council authority to establish the Equivalent Runoff Unit (ERU) charge for the Utility.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the Equivalent Runoff Unit (ERU) charge for 2013 shall be $107.68/ERU.
BE IT FURTHER RESOLVED that the appropriate City officials are authorized and
directed to take those steps necessary to implement this charge to become effective for
services provided on and after April 1, 2013.
C411
OlHKOl
ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Steven M. Gohde, Assistant Director of Public Works
DATE: March 21, 2013
RE: Storm Water Utility Rate Increase
BACKGROUND
The City of Oshkosh implemented a Storm Water Utility in 2003 to fund improvements to the City's storm
water management facilities. Based on the initial Storm Water Utility study completed in September of
2002, the Common Council implemented a phased introduction of the rates. The rate was initially set at
$19.10 per Equivalent Runoff Unit (ERU) per year for one half of 2003. There were five subsequent rate
increases, the most recent being to $83.20 per ERU per year in 2012. The Storm Water Utility has
funded several projects to date including the Fair Acres Mall area detention basin, Anchorage Channel
Construction, the Baldwin Avenue area dry detention basin, the Tipler School area dry detention basin,
the North High School area wet detention basin, the Oakwood Road wet detention basin, the Melvin
Avenue storm water pump station, the Westhaven Circle area detention basin, the James Road detention
basin, and the City Hall underground detention and parking lot project. In addition to these projects,
storm sewers are replaced/upgraded with each street reconstruction project.
The City has experienced significant flooding during rain storms in 1990, 1993, 1996, 1999, 2001, 2004,
2008, 2010, and 2012. Localized areas also flood during smaller events. In addition, the City is now
under a permit (MS4) from the DNR, as mandated by the EPA Clean Water Act, for discharge of storm
water. This permit requires the implementation of multiple items to reduce the amount of pollutants
entering lakes and rivers. The largest expense item in the permit is reducing the Total Suspended Solids
(TSS) generated by the City as a whole by 20% in 2008 and previous requirements for a reduction of
40% by 2013. We have met the 20% goal. The State legislature recently removed the 40% requirement.
However, upcoming targeted performance standards are anticipated to require at least a 40% removal of
TSS within the next few years.
AECOM was hired by the City to develop a City-wide plan for pollution reduction. The City has also
completed several flood studies in the past and is currently studying several watersheds to develop plans
to reduce flooding in combination with pollution control. City staff, based on information from all studies,
developed a schedule of work needed to reduce flooding and implement pollution control measures.
The schedule calls for approximately two major projects to be constructed per year with an emphasis on
flood control. Wherever possible, pollution control measures will be implemented with flood control
measures.
ANALYSIS
The City hired AECOM to perform a rate analysis to provide funding to implement the projects outlined in
the schedule, to implement other Capital Improvement Projects, and to fund operational costs. In order to
support these activities, a rate of$107.68 per ERU per year is recommended. This rate will allow the City
to complete all of the projects listed in the Capital Improvement Program (CIP) — Storm Sewer Section
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and also maintain daily operations. The rate is proposed to be in effect on April 1, 2013. Finance
Director Steeno has reviewed the cash reserves and concluded the Storm Water Utility cannot further
reduce its reserves in order to minimize the increase. The Utility must retain adequate reserves to
maintain favorable bond ratings and meet the operating needs of the Utility. The Storm Water Utility
Committee reviewed the proposed rate increase and recommended approval of the rate based on the
needs of the community to address flooding and pollution control requirements.
In the event grants or other monies are secured at more favorable rates than anticipated in the study, the
rate increases for future years can be offset. The intent is to review the rate annually to incorporate
actual construction costs from the previous year and incorporate other funds that became available to the
Utility.
FISCAL IMPACT
The rate of $107.68 per ERU per year is required to implement all of the projects and operations in the
2013 budgets. Any reduced rate increase will result in some projects listed in the CIP being postponed
until future years. Pushing projects to future years will result in less reduction of flooding during
significant rain events prior to project completion and will delay reaching the 40% TSS reduction goal.
RECOMMENDATIONS
The Storm Water Utility Committee recommends a rate increase to $107.68 per ERU per year. The
Department of Public Works and Finance Department agree with the recommendation. It is
recommended that the rate go into effect on April 1, 2013. The effect of the increase in April equates to a
total cost of$101.56 per ERU for 2013.
Approved:
Mark A. Rohloff
City Manager
SMG/tlt
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