HomeMy WebLinkAbout21. 15-536DECEMBER 8, 2015 15-536 RESOLUTION
(CARRIED__7-0_____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: ESTABLISH 2016 STORM WATER UTILITY RATE TO $148.88/ERU
INITIATED BY: DEPARTMENT OF PUBLIC WORKS
STORM WATER UTILITY BOARD RECOMMENDATION: Reduce Capital Improvement
Program Budget by $1,500.00 and establish rate at $148.88.
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 2016 shall be $148.88/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, 2016.
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MEMORANDUM
TO: Honorable Mayor and Members of the Co on Council
FROM: James Rabe, Director of Public Work
DATE: December3,2015
RE: Establish 2016 Storm Water Utili[y Rate to $148.88 / ERU
BACKGROUND
The City of Oshkosh implemented a Srorm Water Utility in 2003 ro fund improvements [o [he City's s[orm
water management facili[ies. Based on Ihe initial Storm Water Utiliry study completed in Sep[ember of
2002, the Common Council implemented a phased introduction of the rates. The rete was initially se[ at
$79.10 per Equivalent Runoff Unit (ERU) per year for one half of 2003. There were eight subsequent rate
increases, the most recent being ro$136.60 per ERU per year in 2015. The Storm Water Utility has
funded several projects to date including the Fair Acres Area Detention Basin, Anchorage Channel
Constmction, the Baldwin Avenue Area Dry Detention Basiq 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 Wa[er Pump Station, the Westhaven Clubhouse Area Wet Detention Basin, the James
Roatl Area Detention Basiq the City Hall Underground Detention and parking lot projec[, the Armory Area
Wet Detention Basin, and the 9'" & Washburn Area Wet Detention Basin. In addition to these projects,
storm sewers are replaced/upgraded wi[h each street reconstmction project.
The Ciry experienced significant flootling during rain s[orms in 1990, 1993, 1996, 1999, 2001, 2004, 2008,
2010, and 2072. Localized areas also flood during smaller storm events. In additioq the City is now
under a permit (MS4) from the Wisconsin Department of Na[ural Resources (WDNR), as mandated by the
federal Clean Water Act, for discharge of storm wa[er ro local water bodies. This permit requires the
implementation of prectices to reduce the amount of pollutants entering lakes and rivers. 7he 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 Sta[e legislature has since removetl the 40% requirement The Federel Environmen[al
Protection Agency (EPA), in conjunction wi[h the WDNR, is wrrently tleveloping targe[ed performance
standards that are anticipated to require TSS reduction of 40% or more. It is anticipated [hat these
targeted performance standards will be implemented in ihe nex[ 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 plans
to reduce flooding in combination with pollution control. City staff, based on information fmm all studies,
developed a schedule of work needed to reduce flooding and implement polWtion control measures.
The schedule calls for one to lwo 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 Brown and Caldwell and Ehlers (Financial Consultant) to pertorm a rate analysis to
provide funding to implement the projects outlined in the schedule, to implement other Capital
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Improvement Projects, and to fund operational costs. In order ro support these activities, a rate of
$148.88 per ERU per year is recommended. This rate will allow the City [o complete all of [he projects
listed in the 2016 Capital Improvemen[ Program (CIP) — Storm Sewer Section, and also maintain daily
operations. The rate is pmposed to be in effect on April 1, 2016. Finance Director Larson has reviewed
the cash reserves and any available funds have been inwrporeted in order to minimize the ra[e increase.
The Utility must retain adequate reserves to maintain favorable bond ratings and meet the opera[ing
needs of [he Utility.
The Storm Water Utility Committee recommended reducing the Capital Improvement Progrem scope to
one major storm water project every other year, thereby reducing the budget by $1,500,000, which would
reduce the 2016 rate to $146.84. During the 2016 budget workshops, the Common Council gave clear
direction to staff to maintain the wrrent Capital Improvement Program scope of one major storm water
project per year.
In the event grants or other monies are secured at more favorable rates than anticipated in the study, the
rate increases for fu[ure years can be offset. The intent is to review the rate annually to incorporate
actual construc[ion costs from the previous year and incorporate other funds that become available to the
Utiliry.
FISCAL IMPACT
The rate of $148.88 per ERU per year is required to implement all of the projects and operations in the
2016 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 iess reduction of flooding during siqnificant rein 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 $148.88
per ERU per year to fund all activities in the approved 2016 budgets. It is recommended that the rate go
into effect on April 1, 2016. The effect of the increase equates to a total cost of $145.81 per ERU for
2016.
Approved:
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M k A. Rohloff
City Manager
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