city of san antonio transportation apital i · houston, tx business (address) storm water fee...

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CITY OF SAN ANTONIO

TRANSPORTATION & CAPITAL

IMPROVEMENTS (TCI)

STORM WATER UTILITY FEE

COMPREHENSIVE STUDY

TFMA - SEPTEMBER 4, 2014

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DEPARTMENT OVERVIEW

–2Transportation & Capital Improvements

Office of the Director

Project Delivery

Streets Storm WaterSupport Services

Transportation & Traffic

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STORM WATER FUNDS


• Revenue from FILO

• FY 2014 Budget $3.3M

• Developer Projects

STORM WATER

REGIONAL FACILITIES

• Revenue from Storm Water Utility Fee

• FY 2014 Budget $41M

• MS4 Permit Compliance

STORM WATER

OPERATING FUND

• Storm Water Proposition

• 2007 - $131M

• 2012 - $128M

CITY OF SAN ANTONIO

BOND PROGRAM

• Regional Flood Control Partnership

• $500M, 10-Year Program

• 52 capital projects within CoSA limits

BEXAR COUNTY FLOOD

CONTROL PROGRAM

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OVERVIEW OF THE STORM WATER UTILITY FEE

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• Established May 1993• Rate structure based on lot size and land use• Funds operational services related MS4 Permit• Rate has been increased 6 times

Fiscal Year 2000 2003 2004 2005 2007 2008

Residential Rate $2.29 $2.98 $3.08 $3.68 $3.93 $4.25

% Increase 15% 30% 3.36% 19.5% 6.8% 8.14%

Transportation & Capital Improvements

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FY 2014 EXPENDITURE CATEGORIES

Budget Category FY 2014 Budget

Personal Services $13,760,851

Contractual Services $4,139,056

Commodities $1,577,835

Self Insurance/Other Expenditures $5,805,642

Capital Outlay $51,374

SAWS Reimbursement $4,419,802

Total Operating Expenses $29,754,560

Transfer to GF Indirect Cost $1,270,689

Transfer to GF Other $966,626

Transfer to Capital Projects $1,726,000

Transfer to Debt Service $6,882,754

Transfer to Grant $251,758

Total Transfers $11,097,827

Total FY 2014 Appropriations $40,852,387

Cost of Service (Operating Expenses) FY 2014 Budget

Tunnel Maintenance $2,246,384

Arterial & Collector Street Sweeping $1,651,895

Residential Street Sweeping $1,936,106

CBD Street Sweeping $1,034,225

Debris Removal $1,412,802

Channel Restoration $3,133,244

Concrete Repair $1,897,352

Natural Creekway $1,741,771

Contract Mowing $650,539

Channel Mowing/Herbicide $3,782,775

Tree Removal (Rapid Response) $1,248,149

Public Relations & Outreach $215,950

Engineering and Contracts Management $1,609,803

Administrative & Support Costs $2,722,389

Capital Outlay $51,374

Billing & Collecting (SAWS) $4,419,802

Total $29,754,560


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STORM WATER REVENUES AND EXPENDITURES ($ IN MILLIONS)

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$0

$10

$20

$30

$40

2009 2010 2011 2012 2013 2014 Estimate

Revenues Expenditures


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BACKGROUND FOR FEE STUDY

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• TCI proposed 11.8% fee increase during FY 2013Budget process:

Increase of street sweeping cycles

Increase of mowing cycles

A portion of new service center

• Concerns raised by City Council:

Cost allocation to upper tier fees

Need for increasing street sweeping cycles

Directed TCI to examine structure and providerecommendations for FY 2014


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CURRENT RATE STRUCTURE

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= Fee Tiers in Question


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FINDINGS OF PILOT PROJECT STUDY

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FOCUS FINDINGS/RECOMMENDATIONS

Current Structure Analysis: Analyze the current Storm Water Utility Fee Structure and develop options for the adjustment of the upper tiers of the multifamily, commercial, and public.

1. Inequities identified in current rate structure.

2. Options were developed for an interim adjustment of the fee schedule.

Impervious Cover Analysis: Conduct a study of five pilot areas and develop a fee structure based on impervious cover maintaining current revenue levels.

1. Consultant analyzed five pilot areas.

2. Rate structure would be based on an average impervious cover for a single family-residential property of 3,250 s.f. (Equivalent Residential Unit-ERU), and a Fee of $4.06/ERU.

Benchmark Survey: Conduct a benchmark survey of other Texas municipalities.

1. A survey of municipalities in Texas identified 55 of 91 Municipalities that have storm water utility fees based on the impervious cover method.

Cost for Comprehensive Study: Determine cost of a comprehensive fee study city wide.

1. Recommended to be funded in FY 2014 Budget

2. Estimated timeline for this study - 12 months.


Conducted January 2013 – May 2013

http://www.kimley-horn.com/


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IMPACT OF IMPERVIOUS AREA

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Property A – 90% Impervious

Cover

131,500 S.F.

Tier 4 = $154.81

Q = 23 CFS

Property B – 30% Impervious

Cover

132,500 S.F.

Tier 5 = $342.03

Q = 13 CFS


• Increases volume and rate of runoff• Best measure of drainage system usage/demand

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DESCRIPTION OF COMPREHENSIVE STUDY


Consultant CoSA

Calculate impervious cover per parcel

Internal review of all services funded by the Storm Water Utility Fee and determine revenue requirement

Develop impervious cover rate model

Develop and implement an outreach plan

Develop a Low Impact Development (LID) Credit/Incentive Mechanism

Coordinate with San Antonio Water System (SAWS) to reconfigure billing system



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PROPOSED FY 2015 PROGRAM CHANGES


Program Change Description Cost

Mapping of Outfalls MS4 Permit requirement to map outfalls in 3 years $576K

Community Outreach and Education

MS4 Permit requirement for enhanced education and public outreach

$135K

Network Televising & Condition Assessment

Implement a pilot program to televise and condition assess storm water infrastructure

$250K

Enhanced Channel Mowing

Increase mowing from 4 to 6 cycles during growth season (March-November)

$93K

Tree Maintenance Crew

Add a crew to address landscaping included as part of capital projects

$269K

Impervious Area Management

Add a team to manage impervious area changes and appeals (3 FTEs)

$149K

Position SavingsReduce positions in street sweeping and debris removal

($330K)

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PROPOSED FY 2016 PROGRAM CHANGES


Program Change Description Cost

Network Televising & Condition Assessment

Televise and condition assess 100 miles of storm water infrastructure (7-year program)

$1.4M

High Water Detection Maintenance

Provides funding to maintain approximately 86 additional high water detection sites

$329K

Leslie Rd. Service Center

Provides Debt Service funds to construct a new service center that will house storm water personnel

$1.5M

Capital/Maintenance Projects

Provide funding for backlog of existing storm water capital/maintenance projects

$2.5M

Median Enhancement Program

Implement a pilot program to enhance 10 acres of medians requiring less watering and maintenance/mowing cycles

$500K

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HOW WOULD THE REVISED CUSTOMER FEES BE ASSIGNED?

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• Impervious Area

Rooftops, parking, driveways, walkways, compactedsubgrades, etc.

• Equivalent Residential Unit (ERU)

Average impervious area for residential (single-family) isapproximately 3,400 square feet

• Rate Structure

Residential with multiple tiers (small, typical, large)

Non-Residential (commercial, multi-family, public)

Custom fee assignment for each land parcel

Equate impervious area to ERU


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IMPERVIOUS COVER METHODOLOGY AND RATE IMPLEMENTATION

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• No rate change in FY 2015

• Rate change required in FY 2016 to implementrecommended programs and MS4 requirements


Storm Water Fee Five-Year Revenue Forecast

Fiscal Year FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Revenue Requirement

$40.9M $42.0M $48.3M $50.1M $51.3M $52.6M

ERU Rate $4.38 $4.56 $5.32 $5.46 $5.54 $5.62

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WHAT’S THE DIFFERENCE (FY 2014)?

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Property Area = 3.1 acresImpervious Area = 1.9 acresCurrent Fee = $342.03

*Revised Fee = $106.52(1.9 acres x 12.8 ERU = 24.32 ERU x $4.38 = $106.52)


*Revised Fee = $3,005.03(53.6 acres x 12.8 ERU = 686.08 ERU x $4.38 = $3,005.03)


*Revised Fee = $274.71(4.9 acres x 12.8 ERU = 62.72 ERU x $4.38 = $274.71)

Impervious Cover Fee Calculation Assumptions:•1 ERU = 3,400 sq. ft.•1 acre = 43,560 sq. ft. = 43,560 sq. ft./3,400 sq. ft. = 12.8 ERU•1 ERU = $4.38

Parcel Size and Land Use-Based Fee

Impervious Cover-Based Fee


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CURRENT EXAMPLES OF IMPERVIOUS COVER-BASED STORM WATER UTILITY FEES

Arlington, TX

Business Storm Water Fee

Six Flags Over Texas $5,751.40/month

General Motors $8,861.80/month

AT&T Cowboys Stadium $6,569.00/month

Avg. Residential ERU $4.25/month

Houston, TX

Business (Address) Storm Water Fee

1Mercedes-Benz of Houston Greenway (3900 SW FWY) $707.39/month

1HEB (1701. W. Alabama) $606.91/month

1Camden Midtown Apartments (702 Hadley) $328.23/month

1Texas Land & Cattle (11960 Dickinson) $122.17/month

2Residential (curb and gutter street) 3.20¢/sq. ft./month1 Source: http://verify.rebuildhouston.org/prod/mydrain.htm

2 Source: http://www.rebuildhouston.org/images/pdf/fee-schedule-final.pdf

Transportation & Capital Improvements –17

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NON-RESIDENTIALACCOUNT IMPACT ANALYSIS


CustomerClassification

Total Accounts

At or below existing fee

Impact < $100

Impact > $100 < $500

Impact> $500< $1,000

Impact > $1,000 < $5,000

Impact > $5,000

Multi-Family 4,2542,649

(62.3%)1,404

(33.0%)189

(4.4%)12

(0.3%)0

(0%)0

(0%)

Commercial 16,23313,337 (82.2%)

2,411 (14.9%)

353 (2.2%)

86 (0.5%)

39 (0.2%)

7 (0.0%)

Public 2,7501,994

(72.5%)381

(13.9%)289

(10.5%)49

(1.8%)35

(1.3%)2

(0.1%)

Total 23,237 17,980 4,196 831 147 74 9

• FY 2014 revenues (ERU 3,400 sf @ $4.38)

77% at or below their current fee

1% significantly impacted (increase >$500)

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RESIDENTIALACCOUNT IMPACT ANALYSIS

• FY 2014 revenues (ERU 3,400 sf @ $4.38)

25% with monthly reduction of $1.36; 48% withmonthly increase of $0.13

24% with monthly increase of $2.10; 3% with monthlyincrease of $8.67


Proposed Tiers

Range of Impervious Sq. Ft.

CountERURate

Monthly Fee

Tier 1 0 - 2,748 87,535 0.66 $2.89

Tier 2 2,748 – 4,129 165,377 1.00 $4.38

Tier 3 4,129 – 7,000 83,320 1.45 $6.35

Tier 4 7,000 + 10,443 2.95 $12.92

Total 346,675

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LID CREDIT/INCENTIVE MECHANISM

• Coordinated with San Antonio River Authority (SARA) to develop a user friendly worksheet

• Incentive based oneffective imperviousarea

• 20% max credit


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PUBLIC OUTREACH

• Over 30 meetings held with stakeholders

Chambers of Commerce and ISDs

Professional Real Estate and Engineering Groups

Individual Briefings for Most Impacted (increase>$5,000)

Council Committee and Individual Briefings

• Website: www.sanantonio.gov/stormwaterfee

• SAWS included information on each ratepayer’smonthly water bill in August


http://www.sanantonio.gov/stormwaterfee

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NEXT STEPS

• Continue coordinating with stakeholders

Definition of Impervious Area

Max Incentive/Credit of 20% for LID

Multi-year phase in for significantly impactedaccounts (increase of $500 or more per month)

• Creating technical sub-committees to addresseach concern over next few months

• Recommendations to City Council in FY 2015


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ART REINHARDT, PE, CFM

ASSISTANT DIRECTOR

[email protected]

(210) 207-7785

city of san antonio transportation apital i · houston, tx business (address) storm water fee...

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