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03-07-1988 - Workshop ~ ~ o o CITY COUNCIL OF EDGEWATER WORKSHOP MARCH 7, 1988 MINUTES Mayor Baugh called the workshop to order at 6:00 P.M. in the Community Center. He stated the purpose was for the presentation by Dyer, Riddle, Mills & Pre- court, Inc. of the technical aspects of a stormwater utility related to the Capital Improvement Program. ROLL CALL Mayor Earl Baugh Councilman Louis Rotundo Councilman Russell Prater Councilman Neil Asting Present Present Present Present Councilman David Mitchum Excused City Attorney Jose'Alvarez Arrived Later Acting City Clerk Wadsworth Present Chief Lawrence Schumaker Present Mayor Baugh stated that Councilman Mitchum had advised he may be late. Gerry Hartman, Vice President, Dyer, Riddle, Mills & Precourt, Inc., stated that Ron Ferland just got married and is on a trip. He said Mr. Harold Nantz is now a registered professional engineer and has been working with utilities and utility financing. He pointed out this has been instituted in the City of Port Orange and in Tallahassee and they're in the process of doing it for the City of Orlando and it's a good revenue base so the people who get the benefits will pay for them and the cost is relatively minor. Harold Nantz had a slide presentation prepared for viewing. He stated the storm- water utility is normally funded to alleviate the flooding problems or enhance pollution control, such as sediment run off. He said the utility assesses a monthly user fee which is dedicated to solving these problems and they set it high enough to solve the drainage problems and any pollution problems in conjunction with the drainage problems and they can also pay for the administration and operation of the system. He pointed out that the utility fee that's charged generates a fund that's an alternative funding source outside of the existing tax base and the utility gives them a more equitable assignment of the costs directly related to the benefits received. He noted that large paved areas create a lot of storm- water runoff. He again stated this is solely for stormwater and normally the funds are included in the streets and roads section so stormwater improvements have to compete with other projects for those general funds that are funded from the tax base. Mr. Nantz displayed examples of the stormwater utility set up for Port Orange and said the user charge is $2.00 per month. He reviewed the process to deter- mine the rates. He stated that their exemptions are public rights of way and vacant unimproved land in its natural state. He stated that Port Orange's objectives are for flood alleviation and pollution control, and they earmark their funds for capital improvements and operation and maintenance of their drainage system. Mr. Nantz then displayed examples for Bellevue, Washington, which has a user charge based on intensity factors. He reviewed the process to determine their rates. He said their exemptions are for senior citizens and the objective is simply pollution control and their revenue goes to pollution control and oper- ation and maintenance of the stormwater system. Mr. Nantz then reviewed the Boulder, Colorado, projects which combined the percentage of impervious areas and runoff factors. He stated their exemption is for undeveloped land and the objective is only for flood alleviation. Mr. Nantz stated the City of Orlando is in a proposed state of $2.88 user charge per month and is based on a current yearly budget, and it can go up or down, depending on the amount of improvements in anyone year that the City has to come up with. He said their only exemption is public lands and the objective with their large number of lakes is pollution control and the revenue goes to capital improvements. r ~ (.) (,,) ~ Mr. Nantz suggested they should set a goal and objectives for a stormwater utility for what they want out of the system and one of the most important is for the charge system to be easy to implement and administer and it should be fair and equitable to everyone and must be used to control natural resources, such as flood control. He stated that charges should be set high enough to provide enough revenue to cover any projects they have and with Gerry Ferrara's assistance they determined the flooding problems, such as Shangri-La and Wildwood and others and these capital improvements should be taken into consideration. Mr. Nantz stated the stormwater utility should have programs set up to say what the utility would take care of and any new developments should be regulated. Mr. Nantz suggested the government staff handle the billing and management of the utility and have the City Council, the City Manager, and Public Works Director develop the policies. He added that the City Engineer and any other consultants will assist with specific program planning, such as C.l.P. and deciding which projects are most critical. He said they should set up user charges and determine what basis to use for the rates and just set a flat rate or set it up on impervious areas and calculate the average, or go on run off coefficients. He added that as they go further, they get a little more fair and equitable. He said they then decide how much money the utility has to make and if they want to cover operation and maintenance and C.l.P. projects and determine the revenue requirements. He noted they want to keep the rates as low as possible and the rates should be equitable to all parties. He reviewed the process he used and the source of his figures to come up with a possible 2.6 million dollar cost for construction for the critical stormwater improvements plus a 10% bond cost and have it over a 20 year period with an estimated 8~% interest rate. He presented further calculations and said they came up with a calculation of $23.60 a year or $1. 97 a month and recommended they set the initial user charge at $2.00 per E.R.U. per month. He pointed out there were a lot of assumptions made and the figures are rough. City Attorney Alvarez arrived at the meeting at this time, 6:29 P.M. Mr. Nantz suggested they could invest some of the money that's carried over and put the interest back into the fund. He compared the $2.00 fee to $4.41 for Bellevue, Washington; $2.00for Port Orange; proposed $1.60 for Orlando; and proposed $3.00 for Tampa. He said the average rates seem to be about $2.50. Mr. Hartman stated this is a low cost and reasonable approach to solve the stormwater problem and they have to have a revenue source to fund the improve- ments. He added that $2.00 isn't a lot of money to buy insurance against flooding. Mr. Nantz stated they're applying for the 1988 request for inclusion for the federal grant funds for wastewater improvements. Mayor Baugh asked if it's the same as last year and Mr. Nantz replied yes and it needs to be submitted by March 15th and they need signatures. Mayor Baugh stated he'd sign it if Council has no problems with it. No Council member expressed an objection. Mayor Baugh asked Mr. Terry Wadsworth, Utilities Superintendent, to complete it. Mr. Hartman stated that once they identify the projects in more detail, a study can be put together and there will be requirements for public hearings and putting it in the City's Code similar to the utilities section. Councilman Asting moved they adjourn. Councilman Prater seconded the motion. Workshop was adjourned at 6:40 P.M. Minutes submitted by: Lura Sue Koser ~ t.;j~ (/ .N 0" lLMAN - ZO E TWO ~ CO~~ONii T . COUNCILMAN ~ ZONE FOUR t- ,/Yt!? -2- Council Workshop Minutes March 7, 1988 -?