HomeMy WebLinkAbout28. 18-599 DECEMBER 11, 2018 18-599 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: ESTABLISH 2019 STORM WATER UTILITY RATE TO$184.08/ERU/
YEAR
INITIATED BY: DEPARTMENT OF PUBLIC WORKS
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 2019 shall be $184.08/ERU.
BE IT FURTHER RESOLVED that the appropriate City officials are hereby
authorized and directed to take those steps necessary to implement this charge to become
effective for services provided on and after April 1, 2019.
City
of�
Oshkosh
MEMORANDUM
TO: Honorable Mayor and Members of the C on Council
FROM: James Rabe, Director of Public Works
DATE: December 6, 2018
RE: Establish 2019 Storm Water Utility Rate to $184.08 / ERU
BACKGROUND
The City of Oshkosh (City) 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 have been
periodic subsequent rate increases, the most recent being to $172.04 per ERU per year in 2018. The Storm
Water Utility has funded several major 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 Clubhouse Area Wet
Detention Basin, the James Road Area Detention Basin, the City Hall Underground Detention and
parking lot project, the Armory Area Wet Detention Basin, the 9th & Washburn Area Wet Detention Basin,
the Fernau Watershed North Main Street Area Wet Detention Basin, the South Park Lagoon Retrofit, and
the Libbey / Nicolet Watershed North Main Street Area Detention Basin. In addition to these major
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 regulated
under a Municipal Separate Storm Sewer System (MS4) permit 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 requirement for a
reduction of 40% by 2013. The City of Oshkosh has met the 20% goal. The State Legislature has since
removed the 40% TSS reduction 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 and phosphorus reduction of in excess of 80%. It is
anticipated these targeted performance standards will be implemented in the next couple of years.
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AECOM was hired by the City to develop a City-wide plan for pollution reduction. The City has also
completed several flood studies 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 one (1) to two (2) 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 has worked with Ehlers (Financial Consultant) 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 $184.08 per ERU per year is
recommended. This rate will allow the City to complete all of the projects listed in the 2019 Capital
Improvement Program (CIP) — Storm Sewer Section, and also maintain daily operations. The rate is
proposed to be in effect on April 1, 2019. 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 $184.08 per ERU per year is required to implement all of the projects and operations in the
2019 budgets. 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 recommend a rate increase to $184.08
per ERU per year to fund all activities in the approved 2019 budgets. It is recommended the rate go into
effect on April 1, 2018. The effect of the increase equates to a total cost of $181.07 per ERU for 2019.
Approved:
Mar A. Rohloff
City Manager
JER/tlt
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