HomeMy WebLinkAbout15. 15-44
JANUARY 27, 2015 15-44 RESOLUTION
(CARRIED___7-0____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: ESTABLISH 2015 STORM WATER UTILITY RATE TO $136.60/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 2015 shall be $136.60/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, 2015.
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OIHKOIH
ON THE WATE2
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Steven M. Gohde, Assistant Director of Public Works s"�'y
DATE: January 22, 2015
RE: Establish 2015 Storm Water Utility Rate to $136.60/ 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 initiai 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 seven subsequent
rate increases, the most recent being to $122.92 per ERU per year in 2014. The Storm Water Utility has
funded several projects to date including the Fair Acres 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 Wet Detention Basin, the James Road
Area Detention Basin, the City Hall Underground Detention and parking lot project, and the Armory Area
Wet Detention Basin. In addition to these projects, storm sewers are replaced/upgraded with each street
reconstruction project.
The City experienced significant flooding during rain storms in 1990, 1993, 1996, 1999, 2001, 2004, 2008,
2010, and 2012. Localized areas also flood during smaller storm events. In addition, the City is now
under a permit(MS4)from the Wisconsin Department of Natural Resources (WDNR), as mandated by the
federal Clean Water Act, for discharge of storm water to local water bodies. This permit requires the
implementation of practices 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. The Federal Environmental
Protection Agency (EPA), in conjunction with the WDNR, is currently developing targeted performance
standards that are anticipated to require TSS reduction of 40% or more. It is anticipated that these
targeted performance standards will be implemented in the next couple of 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 p�ans
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 one to 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 (Financial Consultant) to perform a rate analysis to provide
funding to implement the projects outlined in the schedule, to implement other Capital Improvement
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Projects, and to fund operational costs. In order to support these activities, a rate of $136.60 per ERU
per year is recommended. This rate wiil allow the City to complete all of the projects listed in the 2015
Capital Improvement Program (CIP) — Storm Sewer Section, and also maintain daily operations. The
rate is proposed to be in effect on April 1, 2015. Finance Director Larson has reviewed the cash reserves
and any available funds have been incorporated in order to minimize the rate increase. The Utility must
retain adequate reserves to maintain favorable bond ratings and meet the operating needs of the Utility.
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 $136.60 per ERU per year is required to implement all of the projects and operations in the
2015 budgets. 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 $136.60
per ERU per year to fund all activities in the approved 2015 budgets. It is recommended that the rate go
into effect on April 1, 2015. The effect of the increase equates to a total cost of $133.18 per ERU for
2015.
Approved:
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Mark A. Rohloff
City Manager
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