June 23, 2016

Phase II - Upper Narraganset Bay

Regional Stormwater Management

District Feasibility Study

Stakeholder Group Meeting #3

Shelby Basel

CDM Smith

Scott McClelland

CDM Smith

Governance, Framework, and

Implementation

Roles & Expectations

Role

• Represent a Stakeholder Group that is:

– Impacted by the effects of stormwater

– Affected by the costs to implement a program to address stormwater impacts

• Communicate to peers about your understanding of stormwater problems facing the region and formation of a stormwater utility as a possible solution to revenue shortfall

• Essential to a Sustainable Solution

Expectations

• Educate yourself on stormwater issues and the Feasibility Study

• Participate in the Stakeholder Group

– Attend Meetings

– Review Reports

– Provide Input

– Focus on Solutions

– Provide input and comments to the various legislative bodies that will be evaluating the issue.

• Tell others/Tell us

Project Update

4

Phase II – Study Goals & Objectives

� Assess current and future program operations, capital needs, and costs for each of the six member communities.

� Develop a strategic organizational structure and governance plan for a regional stormwater management district.

� Complete tactical planning to support a regional stormwater management district under Phase III –Implementation.

� Enhance public awareness of regional stormwater issues and efforts to evaluate regional stormwater management district through Steering Committee and Stakeholder Group outreach.

5

Project Update

� Task 1: Facilitate the Steering Committee’s Investigation of a Regional Stormwater Management District for the UNB Region

� Task 2: Facilitate Public Understanding and Support for Enhanced Stormwater Management and the Benefits of the Regional Approach

� Task 3: Develop a 10-Year Cost of Services Estimate of the Operational and Capital Needs of the Region’s Stormwater Management System

� Task 4: Develop a Funding Plan for the Regional Management District

� Task 5: Develop Operational, Financial and Administrative Framework for a Regional Stormwater Management District

� Task 6: Develop an Implementation Plan for a Regional Stormwater Management District

� Task 7: Phase II Feasibility Report

66

Agenda

� Framework Alternatives

� Greater New Haven Case Study

� Funding Plan

� Break

� Stormwater District Steering Committee

Recommendations

� Next Steps

� Questions/Discussion

7

Framework Alternatives

88

Regionalization - Benefits

� Consistent stormwater management expertise and services

� Improved efficiencies

� Ability to address regional stormwaterissues

� Relieve municipalities of financial burden

� Representative governance

� Consistent level of service provided within the region

� Transfer of assets and liabilities

� Dedicated funding

� Everybody pays for the service based on impervious area creating an equitable solution to stormwater management

99

Regionalization - Issues

� Dis-similar development patterns

� Focus on specific flooding and water

quality issues

� Transfer of assets and liabilities

� Billing structure

� Minimal billing leverage

� Concern for equitable services

across the region

� Equitable Representation

� Balance Local Prerogatives

1010

Alternatives

One Regional Stormwater District

Two Regional Stormwater Districts

� Northern District: Central Falls, East Providence, Pawtucket and

Providence

� Southern District: Cranston and Warwick

Assumptions

� Status Quo - Level of Service & Financial Commitment not adequate

given drainage and water quality issues.

� Investment in Either Local Enterprise Fund or Regional Utility

Necessary.

� Addition of Staff & Creation of New Billing Structure Required.

1111

NBC Participation - Benefits

� Existing regional utility operating in 4 of 6 municipalities

� Highly professional and credible entity and staff

� Existing management and financial staff in place

� Stormwater technical requirements can build from existing

programs

� Understands regional water quality issues

� Consolidating authority for managing all catch basins and

separate stormwater collection systems leads to overall

improvement in water quality

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NBC Participation - Cost/Complications

� Requires new statutory authority and possible modifications

to Governance structure

� Significant shift in NBC operating model

� Potential for Public Utilities Commission oversight

� Expansion of operational and capital improvement

responsibilities and costs

� Will require NBC to establish a separate stormwater cost of

service and rate

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Questions

14

Greater New Haven - Case Study

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Greater New Haven Case Study

Background

� Regional Wastewater Authority

� Created in 2005/2006 following 9 month evaluation and negotiation process

� Similar considerations and challenges

� Merged assets of New Haven & three surrounding towns

� New Haven previously provided wholesale service to towns through inter-municipal agreements

Drivers for Regionalization

� City of New Haven’s financial distress

� Duplicative and inefficient services across four communities

� Improved ability to address regional wastewater issues

� Relieving municipalities of financial burden and management stress of operating wastewater system

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New Haven Case Study - Major Issues

Challenges that had to be resolved to form a district:

� Governance and potential domination by New Haven

� Transfer of assets and liabilities

� Staff transfer issues

� One municipality had significant ongoing consent decree

obligation

� Equitable Capital Improvement Program development over

time

� Local planning/zoning control and conformance

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New Haven Case Study - Outcomes

� Nine member board—4 represent New Haven, all New Haven votes plus at least 1 vote from others to approve anything

� Certain actions require 2/3s vote, including Capital Improvement Projects and changes to by-laws

� Each community transferred:� Physical infrastructure

� Some mobile equipment

� Permits, easements and any liens

� Billing history and data

� Existing debt, mandated projects & enforcement actions, and current accounts payable

� Cities kept some employees; balance were guaranteed employment with regional entity

� Left to Board how to prioritize and justify Capital Improvement Projects

� New regional entity would include 40% of the New Haven CSO projects in cost of service and New Haven would be responsible for the other 60%

� Regional cost capped at $80 million

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Questions

19

Funding Plan

2020

Purpose of Funding Plan

� Summarize projected costs to provide planning level

projected utility and customer costs

� Assumes that the individual communities or the regional entities

seeking to achieve “Service Level C”

� Assumes the communities and regional entities will make investments

to comply with anticipated TMDL requirements

� Assumes that rate payers will be billed in relation to the amount of

impervious area

� Illustrate financial impact of alternative regional approaches

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Improved Level of Service

(Moving from a D to a C)

Operation & Maintenance Example:

� Before (LOS D)

� Based on customer complaint

� Facility failure before maintenance

� Piecemeal maintenance

� Non-dedicated crews and equipment

� After (LOS C)

� Routine inspection based maintenance

� Dedicated crews and equipment

� Systemic improvements

� Methodical replacement of old infrastructure

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What will you get?

� Improved Management:

Scheduled stormwater system maintenance

Dedicated maintenance crews and equipment

Planned stormwater improvements

Compliance with regulatory requirements

Capital project planning and implementation

Water quality improvements over time

Reduced flooding

Improved readiness to respond to large storms/emergencies

� Dedicated funding source

� Equitable rate based on impervious area

2323

Expenditures - One Regional Entity

� Current expenditures are approximately $4.7 million.

� For a 10 year funding plan total annual expenditures must

increase to $11.4 million from the current level.

� To achieve LOS C within the first year total annual expenditures

must increase to $10.5 million from the current level.

4.7 Million

LOS D/F

11.4 Million

LOS C10 Years

4.7 Million

LOS D/F

10.5 Million

LOS C1 Year

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Expenditures - One Regional Entity

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Program Mgmt MS 4 Compliance O&M CIP TMDL Catch up

LOS D

LOS C

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Expenditures - Two Regional Entities

� Northern Region’s total annual expenditures must increase

from $2.4 million to nearly $7.2 million by 2025.

� Southern Region’s total annual expenditures must increase

from $2.3 million to nearly $4.5 million by 2025 and are

summarized below.

2.4 Million

LOS D/F

7.2 Million

LOS C

2.3 Million

LOS D/F

4.5 Million

LOS C

10 Years

10 Years

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Planning Level Customer Impacts

� Based on Regional Level of Service assumptions and existing GIS data,

estimated annual user rates per 1,000 sq. ft impervious area

Billing Estimates - Cost per 1,000 Square Foot for Regional Alternatives

Single Region Northern Southern

Total Impervious Area755,500,000 368,200,000 387,300,000

Average Revenue Requirement, Years 1 to 5$5,790,000 $2,675,000 $3,249,000

Estimated Average Annual cost per 1,000

square foot of billable impervious area$7.65 $7.26 $8.39

Typical Annual Billing Rates

Single Region Northern Southern

Average Impervious Area per

Dwelling Unit (sq ft)2,370 1,480 3,260

Average Annual Cost per

Dwelling Unit$18.13 $10.74 $27.35

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Potential Customer Impacts - Examples

Iggy’s Doughboys & Chowder House

889 Oakland Beach Avenue, Warwick

� Parcel Size – 0.169 acres

� Impervious Area – 0.166 acres (7,231 sf. – 98%)

� Annual Cost - $55

� Estimated Property Tax - $11,496

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Potential Customer Impacts - Examples

St. Joseph’s Church

391 High Street, Central Falls

� Parcel Size – 1.99 acres

� Impervious Area – 1.81 acres (78,844 sf. - 91%)

� Annual Cost - $603

� Property Tax - $0

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Potential Customer Impacts - Examples

Scott’s Volkswagen

777 Taunton Avenue, East Providence

� Parcel Size – 6.45 acres

� Impervious Area – 6.01 acres (261,796 sf. - 93.2 % impervious)

� Annual Cost - $2,003

� Estimated Property Tax - $79,916

3030

Potential Customer Impacts - Examples

Apex

100 Main Street, Pawtucket

� Parcel Size – 8.98 acres

� Impervious Area – 8.01 acres

(348,916 sf. - 89%)

� Annual Cost - $2,669

� Estimated Property Tax - $144,311

3131

Potential Customer Impacts - Examples

RI Hospital

593 Eddy Street, Providence

� Parcel Size – 20.9 acres

� Impervious Area – 16.0 acres

(696,960 sq. ft. - 76.6%)

� Annual Cost – $5,332

� Property Taxes - $0

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Potential Customer Impacts - Examples

Garden City

100 Midway Road, Cranston

� Parcel Size – 47.81 acres

� Impervious Area – 42.48 acres (1,850,429 sf – 89%)

� Annual Cost - $14,156

� Estimated Property Taxes - $2,460,324

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Questions

34

Break

35

Stormwater District Steering

Committee Recommendations

3636

Stormwater District Considerations

� District Organization

� Legislative Authority

� Governance

� Legal

� Financial

� Utility Billing

3737

District Organization - Services

� All aspects of stormwater permit activities included except construction and post-construction stormwater permitting (and related inspection and enforcement) and street sweeping.

� All aspects of non-CSO related stormwater maintenance included except street sweeping.

� All aspect of stormwater Capital Improvement Projects to address flooding and water quality included.

� The District will assume responsibility for all participant’s to achieve a Level of Service C.

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Legislative Authority

If NBC is involved:� Legislature must authorize

� Authorization by the adoption of a new chapter in Title 46 of the Rhode Island General Laws or by modification of Chapter 46 (Narragansett Bay Commission) to allow for a stormwater utility and operations (and may require modifications to NBC service area)

If NBC is not involved:� Chapter 45-61 (Stormwater Management Districts) allow cities to

collaborate and form regional entity

� Municipalities electing to participate will need to develop� Consistent implementation ordinance to be adopted in each community

� Inter-municipal agreement setting overall framework

� By-laws for the entity

Rhode Island Public Utilities Commission (RIPUC) � Current statutory authority: PUC does not have jurisdiction over

stormwater districts

� If NBC is involved, may be prudent to clarify in statute stormwater fee not subject to RIPUC rate regulation.

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Governance

Board Composition – Equity in Representation� Fixed number of board members per community

� Number of board members based on some objective criteria: such as population or system size

Board actions that may require “super-majority” or majority of the communities

� Addition of new communities

� Approval of Capital Improvement Program

� Transfer/sale of assets

Relationship of Regional Authority to Local Community� Are there projects or actions of the regional entity that should require local

community concurrence?� Siting of facilities

� Expansion of the system, connections for new development

� Major Capital Infrastructure Projects

Public Advisory Committee � Can be effective tool for obtaining input and buy-in from a diverse set of

stakeholders.

� Provides an opportunity for those stakeholders to formally raise concerns regarding investment and other policy decisions.

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Legal Issues

Operations and Maintenance Related

� Staff and Other Operating Assets

� Retirement, Seniority/Longevity, Staff Benefits and Union Participation

Capital Related

� Stormwater Infrastructure Assets

Permits and compliance responsibility

� Consent decrees or enforcement activities are to be shared by the municipality and the District.

� Subject to RIDEM decisions, but given the sharing of services it is preferable if the Regional entity and the local communities be co-permittees on future MS4 permits.

Other liabilities

� Existing municipal debt

� Staff related benefits

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Financial

Rate structure

� Based on impervious area or some other metric (flat rate by customer type)

� Recommend a particular rate structure (residential unit and actual impervious area)

Enforceability of rates

� Legislation allows for property liens

� Can go to small claims court

� Seek additional legislation to provide enforcement vehicle (tax sales, etc.)

Policies and Procedures

� Credits

� Exemptions

4242

Utility Billing

Billing of Stormwater Fees� Will bill individual property owners based on the amount of impervious area

minus any credits.

� Rate structure to be determined by the utility’s governing board.

� Will need to develop database that links assessor property records with impervious area detail.

� Will need to develop business rules and procedures.

Billing Enforcement� Existing legislation allows for property liens.

� May want to consider requesting authority for tax sales.

Equitable Costs to Customers� The Board will need to establish a rate structure that meets the goals and

objectives of the utility.

� Need to appropriately balance dimensions related to rate structure (equity, efficiency, transparency, administrative ease).

Equitable Capital Improvement Program Funding and Implementation � The Board will establish priorities for capital improvements and

maintenance.

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Next Steps

4444

What will happen next…

� Phase II Feasibility Report

� Steering Committee for comments

� Final Report will be posted to website

� Final Thoughts for Next Step

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Questions