Stormwater Management Program
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1 Derry Township Municipal Authority Stormwater Management Program Stormwater Stakeholder Advisory Committee Meeting #6 July 27, 2016 Agenda 1. Where did we leave off? 2. What progress have we made? 3. What comes next? 4. Budget Review 5. SPF Development 6. Plan for Credit Policy 1
2 Where We Left Off in April 1) Revised Articles of Incorporation approved by State 2) Completed first public meeting and shared info on goals, objectives and cost of proposed stormwater management program 3) Received feedback from SAC on fee structures, exemptions..prior to tabling fee calculations while IA data was further developed 4) Commenced discussions on impaired waterways, need for improved water quality in Township, importance of credit policy, and credit policy concepts Progress Since Last meeting 1) Completed IA Estimates for each property 2) Reviewed questionnaire responses from large property owners. 3) Analyzed IA data to refine ERU definition and developed draft rates. 4) Updated DTMA board on progress to date 5) Held rain barrel event 2
3 What is Next? Finalize Stormwater Program Fee (SPF) Billing system updates Public Meeting #2 scheduled for August 15th Develop a Stormwater Fee Resolution First bill for stormwater fee anticipated to be issued in Fall 2016 MS4 Permit Transfer Develop DTMA Stormwater Rates, Rules & Regs Execute Management & Services Agreement with Township Transfer Stormwater Assets Develop & Implement Credit Policy Budget Review 3
4 DTMA Proposed SWM Budget Budget Category % of Total Avg. Cost (Years 1-5) Operation & Maintenance 28% $330,000 MS4 Compliance 24% $285,000 Capital Improvements 35% $415,000 Administrative/General 13% $150,000 Total Annual Budget 100% $1,180,000 Administrative/General 13% Capital Improvements 35% Operation & Maintenance 28% MS4 Compliance 24% Program Fees Which program fees are fixed costs and what s dependent upon reduced rate/volume of runoff? Costs Fixed Variable Rate/Vol Variable WQ Administrative/General $585,000 $0 $0 Operation & Maintenance $195,000 $65,000 $25,000 Capital Improvements $160,000 $75,000 $75,000 Total $940,000 $140,000 $100,000 % of Total 80% 12% 8% 4
5 Future Costs What future costs and actions can be avoided if water quality is improved? Future TMDL (if implemented) related costs. Additional MS4 Requirements for municipalities discharging to an impaired waterbody include: Requires additional actions to reduce contaminant loadings to within limit Additional annual costs estimated to be $250,000-$450,000 = Annual cost increase of ~ 20% Total assumed variable costs related to rate/volume = 15% Total assumed variable costs related to water quality = 30% Stormwater Program Fee (SPF) Development 5
6 Rate Models Effort Tiered Flat Fee Runoff Coefficient/ Intensity of Development Level of Service/ Geographic Area Impervious Area Measurements Flat Fee Accuracy Fee Types ERU 48.6% Some square footage impervious 22.1% Not ERU - unclassified 15.5% Residential Equivalence Factor (REF) 6.7% Flat fee [for all properties] 1.9% Tier 1.5% Per total square foot 1.1% Flat fee for +2 zoning categories 1.0% Based on parcel size 0.7% Flat fee [residential & non-residential properties] 0.4% Based on water meter/usage 0.4% Parking spaces 0.1% Intensity development factor 0.1% 71% Ref: data from WKU Stormwater Utility Survey
7 Properties and IA in Derry Twp. IA Distribution in Township IA Range No. of Properties Average IA (Sq. Ft.) Cumulative % < % % 1,000-1, % 1,500-1, % 2,000-2, % 2,500-2, % 3,000-3,499 1, % 3,500-3, % 4,000-4,499 1, % 4,500-4, % 5,000-5, % 5,500-5, % 6,000-7, % 8,000-9, % 10,000-14, % 15,000-19, % 20,000-49, % 50,000-99, % >100, % Grand Total 7,833 12,278 7
8 Tiers for Residential Are all Residences Equal? What should an ERU equal? 8
9 Rate Type - Equivalent Residential Unit [ERU] Statistical Analysis of representative sampling of residential parcels Define average Impervious Area for residential parcel Impervious area includes buildings, sidewalks, driveways, patios, etc. Example ERU: - Rooftop = 1,900 sf - Driveway = 1,200 sf - Sidewalk = 400 sf Total = 3,500 sf = 1 ERU Updated to 3,800 sf = 1 ERU What should an ERU equal? Descriptive Statistics for Single Family Properties in Derry Township Type of Residential Property No. of Average IA Properties (Sq. Ft.) R01 - R06: Single Family Residence 5,908 4,218 R07: Condos 979 1,768 R08: Modular Home 5 4,286 R09: Mobile Home 8 3,850 R10: County Estate 4 20,668 Grand Total 6,904 3,879 Total IA (Sq. Ft.) Ist Tier 2nd Tier 3rd Tier 4th Tier Statistic All SRF < 3,000 3,000-4,999 5,000-7,999 > 8,000 Min ,008 5,028 8,001 25th Percentile 2,531 1,343 3,200 5,569 8,537 50th Percentile 3,497 1,557 3,808 5,569 11,116 75th Percentile 4,371 2,419 4,348 5,569 15,462 Max 55,256 2,989 5,028 7,951 55,256 Average 3,762 1,838 3,809 5,647 14,082 Std. Dev 2, ,640 Mode 3,161 2,419 3,161 5,569 8,537 Skew 8 (0) Count 6,904 1,921 3, Sum 25,972,932 3,531,109 14,702,011 5,415,253 2,337,538 Calculated ERU Equiv. 3, NA Use Per ERU 9
10 Tiers for Residential Tier 1 < 3,000 sf Tier 2 3,000 4,999 Tier 3 5,000 7,999 sf DRAFT Tier 4 >/= 8,000 sf Tiers for Residential UPPER PER ERU > 8,000 sf SMALL 0.5 ERU < 3,000 sf LARGE 5,000 to 7,999 sf 1.5 ERU AVERAGE 3,000 to 4,999 sf 1 ERU 10
11 Sampling of Sq. Ft / ERU Source: Western Kentucky University, Stormwater Utility Survey 2014 ERU Distribution in Township Property Type Total IA (sq ft) No. of ERUs Single Family Residential 26,783,903 7,078.5 Multi-Family Residential 2,655, Commercial 27,984,519 7,363.4 Non Profit/Tax Exempt 21,544,357 5,669.4 Parks & Rec 12,064,049 3,174.8 Public Utilities 209, Agricultural 2,400, Vacant 2,349, Land Use Unknown 2,052, Grand Total 98,043,320 25, ERU = 3,800 sq. ft. 11
12 Rates Appropriate Stormwater Billing Units Relate User Contributions to Expenses Service Fee = Revenue Requirement (Units Credits Delinquency Allowance) Units = Residential Dwelling Units + Non Residential Impervious Area SF/ERU Stormwater Fee Monthly fees for various properties could be: Stormwater Program Fee Estimate Assume sf IA/1 ERU = 3800 Total 2021 Annual Stormwater Program Cost $ 1,330, Total ERUs Per Master Spreadheet 25, Less ERUs Excluded for 7.5% (1,936.96) Less ERUs Excluded for General 20% (5,165.22) Less ERUs Excluded for Educational 2.8% 1 (720.86) Less 2% (516.52) Total Assumed Billed ERUs 17, Annual Fee Per ERU $ Monthly Fee Per ERU $ 6.34 USE $6.50 Monthly Fee Per ERU with 45% Reduction $ 3.49 USE $3.50 1) Assumes 20% credit for DTSD, PSU & Hershey Trust properties classified as Land Use E3 Financial evaluation assumes no rate increase for ~5 years. 12
13 Residential Stormwater Fees in PA Philadelphia Lancaster Mount Lebanon Meadville Jonestown Hampden Radnor $13.48/month for 1,050 sq. ft. imp. Billed monthly $9.12/month (IA of 1,000 sq. ft.) Billed quarterly $8.00/month for 2,400 sq. ft. imp Billed annually $7.50/month for 2,660 sq. ft. imp Billed annually $6.67/month for 3,100 sq. ft. imp Billed annually $4.41/month for 3,534 sq. ft. Imp Billed quarterly $ $9.67/month (tiered) Stormwater Fee Monthly fees for various properties could be: LOS Residential Restaurant Church Shopping Center ERUs Monthly Fee Large Industry $6.50 $78 $162.5 $390 $1,950 Financial evaluation assumes no rate increase for ~5 years. 13
14 Credit Policy Plan DTMA s Credit Policy Primary Objectives A. Stimulate interest in making certain types of SW Improvements B. Ensure improvements undertaken result in a long term cost reduction impact on the system. C. Improve Water Quality D. Public Education and Awareness E. Positive Change in Thinking and Behavior F. Other? 14
15 DTMA s Credit Policy Credits offered for improvements which: o o o reduce rate of stormwater leaving a property Reduce volume of stormwater leaving a property Improve water quality. Proposed policy would provide a maximum reduction in fee of 45% = variable portion of SW budget. Propose credit policy implementation 6 months following fee implementation Consider providing 45% fee reduction to all properties for initial 6 months. Credits How are they Calculated Rain Garden BioSwale Traffic Island Building = 10,000 sf Parking Lot = 14,400 sf Total Impervious Area = 24,400 sf ERU = 3,800 sf TOTAL ERU s = 6.4 ERUs 30% WQ BMP Credit 1.9 ERUs Resultant ERUs= 4.5 ERUs Wetlan ds Note: Credit reduction is only applied for portion of property contributing runoff to BMP. If a 30% WQ BMP credit is approved and 50% of property runoff goes to BMP, overall credit is 15% (= 30% credit *50% of runoff) 15
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