HomeMy WebLinkAbout19. 14-53
JANUARY 28, 2014 14-53 RESOLUTION
(CARRIED__7-0______ LOST ________ LAID OVER ________ WITHDRAWN_______)
PURPOSE: ESTABLISH 2014 STORM WATER UTILITY RATE TO $122.92/ERU
INITIATED BY: DEPARTMENT OF PUBLIC WORKS
STORM WATER UTILITY BOARD RECOMMENDATION: Eliminate Washburn WQ Basin
Project & reduce rate to $121.46
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 2014 shall be $122.92/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, 2014.
OJHKOJH
ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Steven M. Gohde, Assistant Director of Public Works 50,7,
DATE: January 23, 2014
RE: Establish 2014 Storm Water Utility Rate to$122.92/ERU
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 six subsequent rate
increases, the most recent being to $107.68 per ERU per year in 2013. 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 has since 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 worked with AECOM and Ehlers 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 $122.92 per ERU per year is
recommended. This rate will allow the City to complete all of the projects listed in the 2014 Capital
1:1Engineering\Storm Water Information12014 rate study memo_1-23-14.docx Page 1 of 2
Improvement Program (CIP) — Storm Sewer Section, and also maintain daily operations. The rate is
proposed to be in effect on April 1, 2014. Interim Finance Director Nokes 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 delaying work on the Washburn Water Quality Basin, preferring to focus on flood
control. Delaying the Washburn Water Quality Basin would result in a recommended rate of$121.84.
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 become available to the
Utility.
FISCAL IMPACT
The rate of $122.92 per ERU per year is required to implement all of the projects and operations in the
2014 budgets. Reducing the rate to $121.84 would result in delaying the Washburn Water Quality Basin
project. Further reduction of the rate would result in the delay of other proposed projects within the CIP.
Pushing projects to future years will result in less reduction of flooding during significant rain events prior
to project completion and will delay implementation of water quality improvements.
RECOMMENDATIONS
The Department of Public Works and Finance Department staff recommends a rate increase to $122.92
per ERU per year to fund all activities in the approved 2014 budgets. It is recommended that the rate go
into effect on April 1, 2014. The effect of the increase equates to a total cost of $119.11 per ERU for
2014.
Approved:
Mark A. Rohloff
City Manager
SMG/tlt
I:1Engineering\Storm Water Information12014 rate study memo_1-23-14.docx Page 2 of 2
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