Item VI (D1) - First Reading of Ordinances - Second Reading and Public Hearing are Scheduled for September 3, 1991 - Ordinance No 91-20, Relating to Stormwater management UtilityOcoee
TO: THE
FROM: MON
DATE:
j "CP4TgR OF GOOD LIVING - PRIDE OF WEST ORANGE"
i
CITY OF OCOEE
I� 150 N. LAKESHORE DRIVE
OCOEE FLORIDA 34761
(407)656-2322
STAFF REPORT
AGENDA 8-20-91
Item VI D 1
COMMISSIONERS
RUSTY JOHNSON
PAUL W. FOSTER
VERN COMBS
SAM WOODSON
CrrY MANAGER
ELLIS SHAPIRO
HONORABLE MAYOR AND BOARD OF CITY COMMISSIONERS
YE BEAMER, DIRECTOR OF ADMINISTRATIVE SERVICES %�
S W. SHIRA, P.E., CITY ENGINEER/UTILITY DIRECTOR
ST 14, 1991
SUBJECT: STORMWATER MANAGEMENT UTILITY
ISSUE
Should the Honorable Mayor and
the attached Ordinance and
Stormwater Management Utility?
BACKGROUND/DISCUSSION
Board of City Commissioners approve
accompanying Feasibility Study of
An analysis of the Citys sixteen drainage sub -basins is required by
1992 for comprehensive planning purposes; this is further discussed
in the attached report on the Feasibility Study of Stormwater
Management Utility. Besides the necessary basin studies, minimum
levels of service must be identified and deficit corrections must
be determined. A stormwater utility fee would provide funding for
not only these studies but more importantly for corrections and
improvements to the current system. The budget (Table 1) differs
from that originally submitted in the Capital Improvements Program
and the FY 92 Budget Workbook in that a better approximation of
revenue is now available; the report as completed by Professional
Engineering Consultants includes a review of all parcels of land in
the City and their use (residential or non-residential).
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Staff Report - Stormwater Management Utility
August 14, 1991
TABLE 1
PROPOSED STORMWATER UTILITY EXPENDITURES
Fiscal Year 1991-92
Feasibility Report and Initial
Basin Studies
$100,000.00
Fence/Spring Lake Retention Pond
7,200.00
Lakeshore Drainage Improvements
42,800.00
20' Boom Mower
17,500.00
Mott Flail Mower
5,600.00
Yazoo Mower
900.00
Toro Riding Mower
3,000.00
Ford Tractor
12,000.00
Total $189,000.00
OPERATION EXPENSES AND TRANSFERS
Administrative Services
$25,000.00
Contingency
50,000.00
Professional Services
5,000.00
Miscellaneous Expenses
1,000.00
Total $81,000.00
GRAND TOTAL $270,000.00
Page 3
Staff Report - Stormwater Management Utility
August 14, 1991
The budget targets those areas to be accomplished in this first
year; the eventual goal being, a viable stormwater management
system.
(1) Operation and maintenance - the purchase of the appropriate
equipment for cleaning the existing conveyances.
(2) Basin studies - review of all existing systems and
improvements or necessary redesigns. The PEC report contains a
description of the sixteen drainage sub -basins. As an attachment in
this Staff Report, the Request for Proposal for Basin Drainage
Inventory and Study has been included; this should be issued
immediately to allow adequate time for advertising and selection of
the engineering firm(s).
(3) Capital Improvements Program - replacement of Lakeshore Drive
pipes with larger structures and different wall design to allow
safer movement and adequate clearance for vehicular and pedestrian
traffic.
(4 ) Contingency - After studies, development of system design for
replacement, enlargement, or purchase of additional property for
areas of immediate and/or critical concern.
As noted both in the PEC Study and the Ordinance, Section 403.0893,
Florida Statutes, allows the establishment of fees for the services
and facilities provided by the City's Stormwater Utility System.
403.0893 Stormwater funding; dedicated funds for stormwater
management. - In addition to any other funding mechanism legally
available to local government to construct, operate, or maintain
stormwater systems, a county or municipality may:
(1) Create one or more stormwater utilities and adopt stormwater
utility fees sufficient to plan, construct, operate, and
maintain stormwater management systems set out in the local
program required pursuant to s. 403.0891(3);
(2) Establish and set aside, as a continuing source of revenue,
other funds sufficient to plan, construct, operate, and maintain
stormwater management systems set out in the local program
required pursuant to s. 403.0891(3); or
(3) Create, alone or in cooperation with counties,
municipalities, and special districts pursuant to the Interlocal
Cooperation Act, s. 163.01, one or more stormwater management
system benefit areas. All property owners within said area may
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Staff Report - Stormwater Management Utility
August 14, 1991
be assessed a per acreage fee to fund the planning,
construction, operation, maintenance, and administration of a
public stormwater management system for the benefitted area. Any
benefit area containing different levels of stormwater benefits
shall include stormwater management system benefit subareas
which shall be assessed different per acreage fees from subarea
to subarea based upon a reasonable relationship to benefits
received. The fees shall be calculated to generate sufficient
funds to plan, construct, operate, and maintain stormwater
management systems called for in the local program required
pursuant to s. 403.0891(3). For fees assessed pursuant to this
section, counties or municipalities may use the non -ad valorem
levy, collection, and enforcement method as provided for in
chapter 197.
The necessity was clearly defined in the "Surface Water Improvement
and Management Act" and as such, was incorporated into the Florida
Statutes as Sections 373.451 - 373.4595. As indicated in Section
373.451,
(2) Legislative intent. - The Legislature finds that the water
quality of many of the surface waters of the state has been
degraded, or is in danger of becoming degraded, and that the
natural systems associated with many surface waters have been
altered so that these surface waters no longer perform the
important functions that they once performed. These functions
include:
(a) Providing aesthetic and recreational pleasure for the
people of the state;
(b) Providing habitat for native plants, fish, and wildlife,
including endangered and threatened species;
(c) Providing safe drinking water to the growing population
of the state; and
(d) Attracting visitors and accruing other economic
benefits.
(3) The Legislature finds that the declining quality of the
state's surface waters has been detrimental to the public's
right to enjoy these surface waters and that it is the duty of
the state, through the state's agencies and subdivisions, to
enhance the environmental and scenic value of surface waters.
(4) The Legislature finds that factors contributing to the
decline in the ecological, aesthetic, recreational, and economic
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Staff Report - Stormwater Management Utility
August 14, 1991
value of the state's surface waters include;
(a) Point and nonpoint source pollution; and
(b) Destruction of the natural systems which purify surface
waters and provide habitats.
(5) The Legislature finds that surface water problems can be
corrected and prevented through plans and programs for surface
water improvement and management that are planned, designed, and
implemented by the water management districts and local
governments.
The PEC report examined various methods of stormwater utility fee
calculation. The recommendation is to utilize a variable rate based
on the impervious area on each property with a flat rate for
residential properties. Staff concurs with this rate structure.
Table 2 shows graphically how this calculation was established.
Based upon the currently known requirements, each ERU would be
charged at the rate of $3.00 per month with a minimum charge of
$3.00 per month for those non-residential properties with an ERU
calculation less than 1.0.
In order to apprise the customers on Ocoee's current billing system
(water, sewer, and/or garbage) of this charge, the following
statement is recommended for inclusion on the August billing:
PLEASE BE ADVISED THAT ON (DATE TO BE ESTABLISHED], THE
HONORABLE MAYOR AND BOARD OF CITY COMMISSIONERS WILL HEAR
PUBLIC COMMENTS ON ESTABLISHING A STORMWATER UTILITY FEE.
THE CHARGES PER MONTH TO BE CONSIDERED ARE
RESIDENTIAL $3.00
NON-RESIDENTIAL VARIABLE WITH A $3.00 MINIMUM
THE CHARGES, IF APPROVED, WOULD APPEAR IN THE OCTOBER BILLING
AND WOULD BE DUE ALONG WITH PAYMENTS FOR CURRENT SERVICES.
Besides this announcement, Staff time will be needed to develop the
individual rates for non-residential properties. Computer
programming modifications and the necessary testing of these
program changes must also be accomplished. The program which also
will upgrade the current utility billing system is available from
NCR for $5,000.00. A transfer from General Fund Contingency for
$5,000.00 is requested; the balance in General Fund Contingency
after this transfer is $4373.11.
T A B L E 2
EQUIVALENT RESIDENTIAL UNIT
USING THIS RATE STRUCTURE, THE IMPERVIOUS AREAS OF
RESIDENTIAL UNITS WERE TOTALLED, THEN AVERAGED.
Single Family
Detached Units
Condominiums, Townhomes,
Apartments Buildings, and
Other Multi -Family Units
Mobile Homes
Manufactured Housing
IMPERVIOUS AREA (INCLUDES ON-SITE PAVED DRIVEWAYS
AND PARKING LOTS)
TOTAL AMOUNT OF IMPERVIOUS AREA FOR ALL
1.0 E.R.U. = RESIDENTIAL PROPERTIES
TOTAL NO. OF RESIDENTIAL PROPERTY UNITS
1.0 E.R.U. = 2054 SQ. FT. (AVERAGE IMPERVIOUS AREA)
UNDER THIS RATE STRUCTURE:
* ALL RESIDENTIAL UNITS, REGARDLESS OF RESIDENTIAL
CLASS, WOULD BE CHARGED ONE E.R.U.
* NON-RESIDENTIAL CUSTOMERS WOULD BE CHARGED BASED ON:
TOTAL IMPERVIOUS AREA OF EACH PARCEL_
2054 SQ. FT. (1.0 E.R.U.)
Page 7
Staff Report - Stormwater Management Utility
August 14, 1991
RECOMMENDATION
City Staff recommends that (1) the Stormwater Utility Ordinance be
approved, (2) the stormwater utility fee of $3.00 per month per
equivalent residential unit be approved, (3) the Request for
Proposals for Basin Drainage Inventory and Study be advertised, ( 4 )
the notice of intent be added to the August billing with date
certain for hearing so specified, and, (5) that $5,000.00 be
transferred from General Fund Contingency to account number 001-
513-6405 for computer programming modifications.
ORDINANCE NO. 91-20
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA
RELATING TO STORMWATER MANAGEMENT; CREATING
CHAPTER 35 OF THE CODE OF ORDINANCES;
PROVIDING FOR THE CREATION OF A STORMWATER
MANAGEMENT UTILITY; PROVIDING FOR AUTHORITY;
PROVIDING FOR FINDINGS AND DETERMINATIONS;
PROVIDING FOR DEFINITIONS; PROVIDING FOR THE
ESTABLISHMENT OF A STORMWATER UTILITY FEE;
PROVIDING FOR A SCHEDULE OF RATES; PROVIDING
FOR STORMWATER UTILITY FEE BILLING AND
COLLECTION AND FOR THE PLACEMENT OF A LIEN ON
REAL PROPERTY IN THE EVENT OF NONPAYMENT;
PROVIDING FOR SITE INSPECTIONS; PROVIDING FOR
POWERS, DUTIES AND RESPONSIBILITIES OF THE
CITY ENGINEER AND DIRECTOR OF PUBLIC WORKS;
PROVIDING FOR ADJUSTMENT OF FEES AND APPEALS
TO THE CITY COMMISSION; PROVIDING FOR A
STORMWATER MANAGEMENT FUND; PROVIDING FOR
SEVERABILITY; PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Ocoee has
indicated its intent to properly manage stormwater runoff; to
provide for public safety through reduced flooding, property damage
and erosion; and to achieve improved water quality in the City's
receiving water bodies (i.e., its lakes, streams and aquifer); and
WHEREAS, all developed real property in the City
contributes stormwater runoff to the City's overall storm drainage
system thereby adding to the stormwater management problem; and
WHEREAS, the City has received a report containing
recommendations related to (1) the development of an improved
stormwater management system in the City by means of the
establishment of a stormwater utility, and (2) the method of fee
computation and billing suitable for raising the monies needed by
the City's stormwater management system; and
WHEREAS, the above -referenced report recommends the use
of stormwater utility fees based on the amount of impervious area
on developed property within the City; and
WHEREAS, the City Commission of the City of Ocoee has
determined that a need exists for additional funding for the
stormwater management system of the City and that the use of
stormwater management utility fees is the most equitable method of
providing this funding.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF
THE CITY OF OCOEE, FLORIDA, AS FOLLOWS:
Section 1. Short Title. This Ordinance shall be known
and may be cited as the "Stormwater Management Utility System
Chapter".
Section 2. A new Chapter 35 of the Code of Ordinances
of the City of Ocoee, Florida is hereby adopted and reads as
follows:
Chapter 35
Stormwater Management Utility System
Sec. 35-1. Authority.
The city is authorized by the Florida
Constitution and the provisions of Chapter
166, Florida Statutes, and Section 403.0893,
Florida Statutes, to construct, reconstruct,
improve, and extend stormwater utility systems
and to issue revenue bonds and other debts if
needed to finance in whole or in part the cost
of such system and to establish just and
equitable rates, fees, and charges for the
services and facilities provided by the
system.
Sec. 35-2. Findings and determinations.
It is hereby found, determined and
declared as follows:
(1) Those elements of the stormwater
management utility system which provide
for the collection of and disposal of
storm and surface water and regulation of
groundwater are of benefit and provide
services to all property within the city,
including property not presently served
by the storm elements of the system.
(2) The cost of operating and maintaining the
city stormwater management utility system
and financing necessary repairs,
replacements, improvements, and extension
thereof should, to the extent
practicable, be allocated in relationship
to the benefits enjoyed and services
received therefrom.
(3) It is the intent of this Chapter to
establish stormwater management as a city
utility and to establish a program of
user charges and fees for stormwater
management services, which charges and
fees are to be levied against all
developed property within the city to
accomplish the purposes of such utility.
Sec. 35-3. Definitions.
The following words when used herein
shall have the meanings indicated, unless the
context clearly indicates otherwise:
"Developed property" or "developed
lot or parcel" shall mean that property
2
which has been altered from its natural
state by the addition of any
improvements, such as a building,
structure, impervious surface, change of
grade or landscaping. For billing
purposes related to new construction, a
parcel or lot shall be considered to be
developed pursuant to this Chapter only
upon the earlier of the following:
(a) Issuance of a certificate of
occupancy, or upon completion
of construction or final
inspection if no such
certificate is issued; or
(b) Completion of at least fifty
percent (50%) of the permitted
new construction and when such
construction is halted for a
period of three (3) months.
"Dwelling unit" shall mean any
residential space identified for
habitation by members of the same family
or as classified by the city building or
zoning codes.
"Equivalent Residential Unit" or
"ERU" shall mean the statistical average
impervious area in square feet of
dwelling units within the City of Ocoee.
In the City an ERU equals two thousand
fifty-four (2,054) square feet. Such
measure provides the basis for comparing
the runoff generated by one (1) parcel
with that generated by another.
"Impervious area" or "impervious
surface" shall mean any part of any lot
or parcel of land that has been modified
by the action of persons to reduce the
land's natural ability to absorb and hold
rainfall, including areas which have been
cleared, graded, paved, graveled or
compacted, or covered with structures or
retention areas; provided, however, that
all lawns, landscape areas, gardens,
farming areas, public roadways and
private roadways serving residential or
commercial subdivisions shall be excluded
from the definition of impervious area.
"Residential property" shall mean
any lot or parcel of land developed
exclusively for residential purposes,
including single family homes,
condominiums, manufactured homes,
townhomes, duplexes, apartment buildings
and other multifamily structures;
provided, however, that retirement and
publicly -assisted housing complexes
providing on-site health care services
are excluded from this definition.
"Nonresidential property" shall mean
any developed lot or parcel of land not
included within the definition of
residential property. Nonresidential
property shall include transient rentals
such as hotels and motels and tax-exempt,
religious, educational, institutional,
commercial and industrial properties.
Nonresidential property shall also
include all properties owned by
governmental entities, including the
City, except for public roadways and
appurtenances related thereto.
"City utilities" shall mean water,
sewer, garbage, trash, and/or stormwater
utility services available to lands
located in the City.
Sec. 35-4. Establishment of Stormwater
Utility Fee.
(a) A stormwater utility fee is hereby
imposed upon each developed lot and parcel
within the city for services and facilities
provided by the stormwater management system.
For purposes of imposing the stormwater
utility fee, all developed lots and parcels
within the city are classified into the
following two (2) customer classes:
(1) Residential property.
(2) Nonresidential property.
The city manager or his designee is directed
to prepare a list of developed lots and
parcels within the city and assign a
classification of residential or
nonresidential to each such lot or parcel.
(b) There is hereby established the
following uniform schedule for calculating
charges and fees for the services and
facilities of the stormwater management system
by the owner, tenant, or occupant of the
developed property using the services and
facilities of such system:
(1) Residential. Each residential
property shall be billed a flat fee based upon
one (1) ERU multiplied by the number of
individual dwelling units existing on such
property.
(2) Nonresidential. The fee
imposed for nonresidential properties as
defined herein shall be based on the number of
ERU's which shall be determined for each
nonresidential property on the basis of the
impervious area on such property. The number
of ERU's for each nonresidential property
shall be calculated in accordance with the
following formula:
Number of = Impervious Area (square feet)
ERU's 2,054 square feet
provided, however, that each nonresidential
property shall be billed based upon a minimum
of one (1) ERU. For property classified as
nonresidential and developed as a commercial
condominium, the total bill for such property
shall be divided among the commercial
condominium units with each such unit being
assigned a pro -rata share of the total
impervious area for the entire nonresidential
property; provided, however, each such
commercial condominium unit shall be billed
based upon a minimum of one (1) ERU. The
number of ERU's calculated in accordance with
the above formula shall be rounded to the
nearest one-tenth (1/10th) of an ERU.
Sec. 35-5. Schedule of Rates.
The stormwater utility fee shall be
charged at the rate of Three Dollars ($3.00)
per month for each ERU. The number of ERU's
applicable to each developed lot or parcel
shall be calculated in accordance with the
provisions of Sec. 35-4 hereof. The City
Commission shall annually review the rates
established by this section in order to make
such revisions as are necessary to reasonably
cover the cost of providing stormwater
management services.
Sec. 35-6. Stormwater utility fee billing and
collection.
(a) The stormwater utility fee shall be
billed and collected with the monthly utility
bill for those developed lots or parcels
utilizing city utilities. The stormwater
utility fee shall be billed and collected
separately for those developed lots or parcels
and owners thereof not utilizing other city
utilities.
(b) For each single family or mobile
home residential unit, the bill shall be sent
to the account holder of the individual water
meter or if there is no individual water meter
then to the property owner. For each multi-
family residential unit, the bill shall be
sent to the account holder of the individual
water meter or if there is no individual meter
then the total bill shall be sent to the
account holder of the master meter who shall
be responsible for payment thereof. For
nonresidential property, the bill shall be
sent to the account holder of the individual
water meter or if there is no individual meter
then the total bill shall be sent to the
account holder of the master meter or if there
is no master meter then to the property owner.
(c) All bills for stormwater utility
fees shall be rendered monthly and shall be
payable at the same time and in the same
manner and subject to the same penalties as
utility bills of the City under the terms and
conditions of the Code of Ordinances of the
City. The stormwater utility fee is part of
a consolidated statement for utility customers
which is generally paid by a single payment.
In the event that a partial payment is
received, the payment shall first be applied
to garbage and trash, next applied to
stormwater management, next applied to sewer,
and finally applied to the water account.
(d) In addition to any other remedies or
penalties provided by this Chapter or any
5
other ordinance of the city, failure of any
user of city utilities within the city to pay
said stormwater utility fees promptly when due
shall subject such user to discontinuance of
water and sewer utility services, and the city
manager is hereby empowered and directed to
enforce this provision as to any and all
delinquent users.
(e) In the case that an occupant or
tenant of any developed lot or parcel shall
receive a stormwater utility bill pursuant to
this Chapter and shall fail to pay such bill,
then the owner of such developed lot or parcel
shall be liable for such bill and the city
shall not be required to look to any person
whatsoever other than the owner for the
payment of such bill. In the event that any
stormwater utility bill shall not be paid as
and when due, any unpaid balance thereof,
along with all interest accruing thereon,
shall be and constitute a lien on any lot or
parcel affected thereby. The City may record
in the Public Records of Orange County,
Florida a Notice of Lien giving notice to all
persons that the City is asserting a lien upon
the affected lot or parcel. In the event that
any such utility fee shall not be paid as and
when due and shall be in default for thirty
(30) days or more, the unpaid balance thereof
and all interest accrued thereon, together
with the costs of collection, including, but
not limited to, attorneys' fees and costs, may
be recovered by the City in a civil action,
and any such lien, accrued interest and any
additional costs may be foreclosed or
otherwise enforced by the City by action or
suit in equity as for the foreclosure of a
mortgage on real property.
(f) The City may backbill the stormwater
utility fee to the owner, tenant or occupant
of developed property whenever the City
Engineer determines that such owner, tenant or
occupant has been underbilled or has not been
sent a bill for stormwater utility fees as
provided by this Chapter; provided, however,
that the City may not backbill for any period
greater than twelve (12) months from the date
the City Engineer or his designee notifies
such owner, tenant or occupant of such
underbilling or nonbilling. In any event, the
owner, tenant or occupant may extend the
payments of the backbill over the same amount
of time for which the City issued the
backbill.
Sec. 35-7. Powers, duties and
responsibilities of city engineer and director
of public works.
(a) The city engineer shall have the
following powers, duties and responsibilities
with respect to this Chapter and the city's
stormwater management system:
(1) To administer and enforce this Chapter
and any other appropriate stormwater
related ordinance and support regulations
in the operation, maintenance,
alteration, repair and replacement of
stormwater management systems, facilities
and devices;
(2) To plan and execute the City's stormwater
management program, except for the
performance of routine maintenance and
minor improvements to the stormwater
management system;
(3) To plan, design, acquire rights-of-way
and easements for, and construct capital
projects as approved and funded by the
city commission;
(4) To research, develop and refine
experimental and prototypical stormwater
management systems, facilities, devices
and techniques;
(5) To inspect public and private systems so
as to assure performance and compliance
with all applicable stormwater codes and
regulations;
(6) To review and approve all new development
permits and all drawings, submittals and
site plans, both public and private, for
stormwater management systems, devices
and facilities for adequacy, sufficiency,
and consistency with all applicable codes
and regulations;
(7) To prepare a master stormwater management
plan;
(8) To keep accurate records of all persons
using the services and facilities of the
stormwater management system of the city
and to make changes in accordance with
the rates and charges established by this
Chapter;
(9) To determine the impervious area of
nonresidential property based on data
supplied by the county property
appraiser, or if such information is
unavailable, then based on such other
data as may be available, including but
not limited to data provided by the
property owner, tenant or developer, and
to update and revise such determinations
based on any additions to the impervious
area as approved through the building
permit process;
(10) To charge and collect fees, fines and
penalties; conduct periodic rate studies
so as to maintain an efficient and
equitable rate structure; and ensure a
prudent and stable financial base from
which to operate;
(11) To advise the city manager or, consistent
with Charter, other appropriate city
officials on matters concerning
stormwater management;
(12) To promulgate rules, practices and
procedures necessary for efficient and
effective management of the utility; and
(13) To perform acts incidental and/or
necessary to the efficient and effective
operation of the utility.
(b) The director of public works shall have
the following powers, duties and
responsibilities with respect to this Chapter
and the City's stormwater management system:
(1) To plan and execute the performance of
routine maintenance and minor
improvements to the City's stormwater
management system; and
(2) To perform acts incidental and/or
necessary to the efficient and effective
operation of the utility.
Sec. 35-8. Site Inspections.
The city engineer and other duly
authorized employees of the city bearing
proper credentials and identification shall be
permitted to enter all properties tributary to
the city's stormwater management system for
the purposes of inspections, observations,
measurement and testing in accordance with the
provisions of this chapter and any rules or
regulations adopted pursuant hereto.
Sec. 35-9. Adjustment of Fees.
(a) Requests for adjustment of the
stormwater utility fee shall be submitted to
the city engineer, who is hereby given the
authority to develop and administer the
procedures and standards for the adjustment of
fees as established herein. All requests with
respect to nonresidential property shall be
judged on the basis of the amount of
impervious area on the site. No credit shall
be given for the installation of facilities
required by the city or county development
codes or state water management district
stormwater rules. The following procedures
shall apply to all adjustment requests of the
stormwater utility fee:
(1) Any owner, tenant or occupant who has
paid his stormwater utility fee and who
believes his stormwater utility fee to be
incorrect may, subject to the limitations
set forth in this Chapter, submit an
adjustment request to the city engineer.
(2) Adjustment requests for the stormwater
utility fees paid by an owner, tenant or
occupant making the request shall be in
writing and shall set forth, in detail,
the grounds upon which relief is sought.
(3) Adjustment requests made during the first
calendar year that the stormwater utility
fee is imposed will be reviewed by the
city engineer within a six (6) month
period from the date of filing of the
adjustment request. Adjustments
resulting from such request shall be
retroactive to the beginning of billings,
but retroactive adjustment shall not
exceed one (1) year.
(4) Adjustment requests made after the first
calendar year that the stormwater utility
fee is imposed will be reviewed by the
city engineer within a four (4) month
period from the date of filing of the
adjustment request. Adjustments
resulting from such requests shall be
retroactive to the date of filing of the
request. Under no circumstances will the
city be financially liable beyond the
time limits set forth herein.
(5) The owner, tenant or occupant requesting
the adjustment may be required, at his
own cost, to provide supplemental
information to the city engineer,
including, but not limited to an
independent fee calculation, survey data
(including the impervious areas) approved
by a registered professional land
surveyor, and engineering reports
approved by a professional engineer.
Failure to provide such information may
result in the denial of the adjustment
request.
(6) Adjustments to the stormwater fee will be
made upon the granting of the adjustment
request, in writing, by the city
engineer. Denials of adjustment requests
shall be made, in writing, by the city
engineer.
(b) Upon receipt of the written denial
of the adjustment request, the owner, tenant
or occupant who initially requested the
adjustment may, within thirty (30) days of
receipt of such denial, appeal to the city
commission for review of the denial by filing
a written notice of appeal with the City
Clerk. The City Clerk shall schedule the
appeal for consideration by the City
Commission within forty-five (45) days from
receipt thereof. In reviewing appeals, the
city commission shall apply the standards and
criteria for review contained in this section.
The decision of the City Commission on any
appeals arising out of this section shall be
final.
Sec. 35-10. Stormwater management fund.
All stormwater utility fees collected by
the City shall be kept separated from other
revenue of the City and paid into a
proprietary fund which is hereby created, to
be known as the "Stormwater Management Fund".
Such fund shall be used for the purpose of
paying the cost of the stormwater management
facilities to be constructed in the various
storm drainage basins, debt service financing,
and paying the cost of operation,
administration and maintenance of the
stormwater management facilities of the city,
including a pro rata charge for general city
government services as in effect for other
city utilities. To the extent that the
stormwater utility fees collected are
insufficient to construct the needed
stormwater management facilities, the costs of
the same may be paid from such city funds as
may be determined by the city commission, but
the city commission may order the
reimbursement of such fund if additional fees
are thereafter collected. When the fund has
surplus dollars on hand in excess of current
needs, the surplus dollars will be invested to
return the highest yield consistent with
proper safeguards and shall be available to be
used exclusively for stormwater management
expenditures.
Section 3. If any section, subsection, sentence, clause,
phrase or portion of this ordinance is for any reason held to be
invalid or unconstitutional by any court of competent jurisdiction,
such portion shall be deeded a separate, distinct, and independent
provision, and said holding shall in no way affect the validity of
the remaining portions of this ordinance.
Section 4. This ordinance shall become effective on
October 1, 1991.
PASSED AND ADOPTED this day of
ATTEST:
Jean Grafton, City Clerk
(SEAL)
f:11*9. •
CITY OF OCOEE, FLORIDA
. 1991.
Lester Dabbs, Jr., Mayor
ADVERTISED , 1991
READ FIRST TIME 1991
READ SECOND TIME AND ADOPTED
, 1991
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA.
APPROVED AS TO FORM AND LEGALITY
THIS DAY OF , 1991.
FOLEY & LARDNER APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON , 1991
By: UNDER AGENDA ITEM NO.
City Attorney
WP50\OCOE\247.CLN(5)
01-8891 (08/14/91)
10
I
REQUEST FOR PROPOSAL FOR
BASIN DRAINAGE INVENTORY AND STUDY
FOR CITY OF OCOEE, FLORIDA
Sealed Expressions of Interest for Basin Drainage Inventory and
Study will be accepted by Susan Swilley, PPB, Purchasing Agent for
the City of Ocoee at Ocoee City Hall until , local time,_
, 1991. Six (6) copies should be submitted.
Expressions of Interest received after the specified time and date
shall be returned unopened.
MAIL AND DELIVERY ADDRESS:
City of Ocoee
150 N. Lakeshore Drive
Ocoee, Florida 34761
EXPRESSIONS OF INTEREST MUST BE RECEIVED AT THE OCOEE CITY HALL,
150 N. LAKESHORE DRIVE, OCOEE, FLORIDA, NO LATER THAN _:00 — M.
LOCAL TIME, ON DAY OF OPENING. EXPRESSIONS OF INTEREST RECEIVED
AFTER THAT TIME WILL NOT BE ACCEPTED. NO EXCEPTIONS WILL BE MADE.
A MANDATORY PRE -SUBMITTAL CONFERENCE WILL BE HELD
1991, AT 0:00 _M IN THE OCOEE COMMUNITY CENTER.
U
NO FACSIMILE OR TELEGRAPHIC SUBMISSIONS WILL BE ACCEPTED.
SCOPE OF SERVICES:
Engineering services, including, but not limited to, the following:
1. Existing Stormwater Drainage System Inventory;
2. Develop maps and a data base of the existing stormwater system
in a computerized format compatible with the City's existing
computer system;
3. Evaluate existing and future drainage systems pertaining
to quality as well as quantity;
4. Establish the minimum levels of service for the drainage
system;
5. Identify problem areas and system deficiencies;
6. Based on the levels of service, generate the basin master -plan
and establish capital improvement prioritization;
7. Propose alternate solutions (structural and non-structural)
and provide recommendations for eliminating the system
deficiencies;
8. Prepare preliminary and final design and construction cost
estimates for the recommended solutions;
9. Prepare legal descriptions and maps for existing and proposed
drainage easements and/or rights-of-way;
10. Prepare the appropriate regulatory agency permit
applications;
11. Coordinate with Orange County NPDES permit applications, where
necessary; and
12. Prepare construction plans and specifications and assist with
bid evaluations.
FOR FURTHER INFORMATION CONTACT: SUSAN SWILLEY, PURCHASING AGENT,
AT (407) 656-3431. THIS PACKAGE IS AVAILABLE IN THE PURCHASING
DEPARTMENT AT NO CHARGE.
NOTE: ALL PROSPECTIVE OFFERORS ARE HEREBY CAUTIONED NOT TO CONTACT
ANY MEMBER OF THE CITY OF OCOEE BOARD OF CITY COMMISSIONERS
REGARDING THIS PROJECT. SUCH CONTACTS SHALL BE CAUSE FOR
DISQUALIFICATION. ALL CONTACTS MUST BE CHANNELED THROUGH THE
PURCHASING DEPARTMENT.
The City reserves the right to reject any or all offers, with or
without cause, to waive technicalities, or to accept the offer
which in its best judgement best serves the interest of the City.
Cost of submittal of this offer is considered an operational cost
of the offeror and shall not be passed on to or borne by the City.
In accordance with Section 287.055(11), notice is hereby given that
any plans, documents, and work papers submitted in response to this
solicitation or under any contract awarded pursuant to this
solicitation are subject to re -use by the City of Ocoee.
Susan Swilley, PPB
Purchasing Agent
150 N. Lakeshore Drive
Ocoee, FL 34761
PUBLISH ONE TIME:
ORLANDO SENTINEL:
CITY OF OCOEE REQUEST FOR
BASIN DRAINAGE INVENTORY AND STUDY
All applicable laws and regulations of the United States, the State
of Florida, and the City of Ocoee, Florida will apply to the
resulting agreement. The provisions of the Consultants'
Competitive Negotiations Act (Section 287.055, Florida State
Statutes) shall apply, where applicable.
Information regarding Scope of Services and submittal of
Expressions of Interest is outlined in the attached Legal
Advertisement.
Expression of Interest must include all of the following and
include six ( 6 ) copies clearly marked on the outside, "Proposal for
Basin Drainage Inventory and Study."
General Selection Criteria will be as required by law and will
include:
1. Legal name, Federal taxpayer indentification number, address,
and telephone number of the proposer (firm, corporation,
partnership, individual). The person signing the RFP on
behalf of the proposer shall have the authority to bind the
proposer to the submittal proposal;
2. Professional qualifications of Firm and specific individuals
to be assigned to the project (include resumes). Names of any
anticipated subcontractors for Professional Services to be
listed ( Proposers shall include completed Standard Forms 254
and 255 with their proposal). Include names, addresses, and
previous qualifications if you propose using Specialty
Consultant Services;
3. Past performances in similar projects for governmental
clients. List all projects of similar nature within the past
three years. Title and brief description of each project to
include:
- Client (contact person, address, and telephone numbers)
- Year completed
- Nature of work involved in each project
- Total cost, including number of change orders, value,
and reason
- Construction cost versus bid;
4. Current and near future workload (ability to perform in a
timely fashion). Submit current list of projects and
percentage of completion and expected date for completion;
5. Location of Firm within general geographical area;
6. Provide statement agreeing to obtain (prior to award)
Professional Liability Insurance (minimum coverage of
$500,000.00) and Comprehensive General Liability Insurance
(minimum coverage $200,000.00. The City of Ocoee is to be
named as an additional insured on this policy of insurance).
Policies other than Workers' Compensation shall be issued only
by companies authorized by subsisting certificates of
authority issued to the companies by the Department of
Insurance of the State of Florida to conduct business in the
State of Florida and which maintains a Best's Rating of "A" or
better and a Financial Size Category of "VII" or better
according to the A.M. Best Company. Policies for Workers'
Compensation may be issued by companies authorized as a group
self -insurer by F.S. 440.57, Florida Statutes;
7. Any additional data pertinent to project regarding Firm's
capability (please limit to two (2) pages).
8. Disclosure of any potential Conflict of Interest due to any
other clients, contracts, or property interests for this
project only. Include a notarized statement certifying that
no member of your firm ownership, management, or staff has
vested interest in any aspect of or Department of the City of
Ocoee;
9. Complete and return Public Entity Crimes Form; and
10. Financial Statement.
Expressions of Interest will be evaluated using the above criteria.
Firms will be notified in writing as to whether they have been
selected for interview within weeks after submittal date.
Notices for interview will contain expressed directions.
Subsequently, firms will be notified in writing as to "short -
listing."
All expenses for making proposals to the City of Ocoee shall be
borne by the Proposer. Action on proposals normally will be taken
within 45 days of opening; however, no guarantee or representation
is made herein as to the time between proposal opening and
subsequent Commission action. The City reserves the right to waive
informalities contained in any Expressions of Interest and to
readvertise for Expressions of Interest. Award of a contract, if
made, will be to the most highly qualified proposer based upon the
criteria listed above. The successful proposer(s) shall be
required to execute an agreement, in form and content acceptable to
the City, indemnifying and holding harmless the City, its
officials, officers, employees, and agents from all claims.
All prospective professionals are hereby cautioned not to contact
any member of the City of Ocoee Board of City Commissioners or any
member of the Selection Committee. All contacts must be channeled
through the Purchasing Department. Failure to comply with these
procedures shall be cause for disqualification of firm's Expression
of Interest.
CITY OF OCOEE, FLORIDA
STATEMENT OF
"NO BID"
IF YOU DO NOT INTEND TO BID ON THIS REQUIREMENT, PLEASE COMPLETE
AND RETURN THIS FORM PRIOR TO DATE SHOWN FOR RECEIPT OF BIDS TO:
CITY OF OCOEE, PURCHASING DEPARTMENT, 150 N. LAKESHORE DRIVE,
OCOEE, FLORIDA 34761.
WE, THE UNDERSIGNED, HAVE DECLINED TO BID ON YOUR BID, BASIN
DRAINAGE INVENTORY AND STUDY, FOR THE FOLLOWING REASON(S):
SPECIFICATIONS ARE TOO "RESTRICTIVE", I.E., GEARED TOWARD
ONE BRAND OR MANUFACTURER ONLY (PLEASE EXPLAIN REASON
BELOW).
INSUFFICIENT TIME TO RESPOND TO INVITATION TO BID.
WE DO NOT OFFER THIS PRODUCT OR EQUIVALENT.
OUR PRODUCT SCHEDULE WOULD NOT PERMIT US TO PERFORM.
UNABLE TO MEET SPECIFICATIONS.
SPECIFICATIONS UNCLEAR (PLEASE EXPLAIN BELOW).
OTHER (PLEASE SPECIFY BELOW).
REMARKS:
WE UNDERSTAND THAT IF THE "NO BID" LETTER IS NOT EXECUTED AND
RETURNED, OUR NAME MAY BE DELETED FROM THE LIST OF QUALIFIED
BIDDERS FOR THE CITY OF OCOEE FOR FUTURE PROJECTS.
Typed Name and Title
Company Name
Address
Signature and Title
Telephone Number Date
•lw-
MWAIN
ITT
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PEC/PROFESSIONAL ENGINEERING CONSULTANTS, INC.
EOLA PARK CENTRE • 200 E. ROBINSON ST. • SUITE 1560 • ORLANDO, FLORIDA 32801
engineers (407) 422-8062 Affiliate Firm: PEC/W. K. Daugherty Consulting Engineers
planners
surveyors
August 15, 1991 OE -152/1.0
1-1.0
Honorable Mayor and City Commission
City of Ocoee
150 N. Lakeshore Drive
Ocoee, Florida 34761
RE: Report on Feasibility of Stormwater Management Utility for the City of Ocoee
Pursuant to the City's request, enclosed herewith is our Report on the feasibility of establishing
a Stormwater Management Utility (SMU) to fund the City's future stormwater management
functions. We believe that the information contained herein will provide sufficient information
to allow City elected officials, staff and the public to commence a serious dialogue regarding
establishment of a Stormwater Management Utility for Ocoee.
A Stormwater Management Utility, as described herein, is recommended as the appropriate
method to assist the City in achieving compliance with the 1985 Growth Management Act and
9J-5, FAC, requirements. Implementation of the SMU will enable the City to fund needed basin
studies, operation and maintenance and initiate deficit corrections as identified by the basin
analysis. It is recommended that the City immediately proceed to adopt by ordinance a $3.00
per month stormwater utility charge for each residential unit including detached single family
homes, apartments, condominiums, townhomes and mobile homes. The same rate of $3.00 per
ERU (equivalent residential unit) would be charged to all developed non-residential properties
in the City, with an ERU based on the average on-site impervious area of 2054 square feet for
residential units in Ocoee.
It is estimated that the above monthly rates will initially generate approximately $270,000 on an
annual basis for equipment purchases, operation and maintenance, and capital improvements on
the City's existing stormwater system and development of drainage basin master plans for future
improvement projects. Further it is recommended that upon completion of the drainage sub -
basin analysis, a minimum level of service be established, deficit corrections be identified and
long term operation and maintenance costs be identified. The above Stormwater Management
Utility fee may require revision based upon the results of the sub -basin analysis.
It is recommended that the City's monthly stormwater charges be placed on the City's monthly
utilities billing system. It is also recommended that additional funding be provided from the
ORLANDO CLEARWATER LAKE CITY
City of Ocoee
August 15, 1991
Page 2
OE -152
City's General Fund to the Stormwater Management Utility as may be necessary in the future
until the Stormwater Management Utility is self-sufficient.
If there are any questions, please advise.
Sincerely,
PROFESSIONAL ENGINEERING CONSULTANTS, INC.
Tom R. Kelley P.E.
Principal
TRK/sg-WO1
cc: Mr. Ellis Shapiro, City Manager
Ms. Montye Beamer, Director of Administrative Services
Mr. James W. Shira, P.E., City Engineer/Utilities Director
Mr. Paul Rosenthal, Esq., City Attorney
l
REPORT ON DEVELOPMENT OF
STORMWATER MANAGEMENT UTILITY FOR
CITY OF OCOEE
I
TABLE OF CONTENTS
Sectio n Page
EXECUTIVE SUMMARY & RECOMMENDATIONS
1 INTRODUCTION
1.0 Background..................................1-1
1.1 Growth Management Act Requirements ................. 1-1
1.1 History and Description of Stormwater Management Utilities .... 1-2
2 EXISTING STORMWATER MANAGEMENT PROGRAM
2.1 Existing Stormwater Management System ................ 2-1
2.2 Proposed Stormwater Budget for 1991-92 ................ 2-1
3 FUNDING SOURCES FOR STORMWATER MANAGEMENT
3.1 General.....................................3-1
3.2 General Fund.................................3-1
3.3 User Charges ................................. 3-2
3.4 Fees and Other Charges ........................... 3-4
3.4.1 Plans Review and Inspection Fees ................ 3-4
3.4.2 Impact Fees .............................. 3-5
3.5 Special Assessment .............................. 3-5
3.6 Financing for Capital Improvements ................... 3-6
4 STORMWATER MANAGEMENT UNDER THE UTILITY CONCEPT
4.1 General.....................................4-1
4.2 Organization and Staffing .......................... 4-1
4.3 Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2
5 RATESTRUCTURE
5.0 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5-1
5.1 Criteria
for Evaluating Alternative Rate Structures ...........
5-1
5.1.1
Perceived Equity and Public Acceptance ............
5-1
5.1.2
Flexibility...............................5-2
5.1.3
Cost of Implementation .......................
5-2
5.1.4
Data Requirements .........................
5-2
5.1.5
Compatibility With Data Processing Systems ..........
5-3
5.1.6
Funding Source for Implementation of
Stormwater Management Utility .................
5-3
3
f�
Section
TABLE OF CONTENTS
Cont'd
Page
6 BILLING ALTERNATIVES
6.1
5.1.7 Upkeep................................5-3
5.2
Alternative Rate Structures .........................5-4
Separate Billing System ...........................6-1
5.3
Rate Development ..............................
5-6
Annual Property Tax Bill ..........................6-1
5.3.1 Equivalent Residential Unit ....................
5-6
6.4
5.3.2 Estimated Total Potential Customer Base ............ 5-8
5.3.3 Revenue Potential ..........................
5-9
5.4
Specific User Charge Rate Issues ....................
5-10
6 BILLING ALTERNATIVES
6.1
General.....................................6-1
6.2
Separate Billing System ...........................6-1
6.3
Annual Property Tax Bill ..........................6-1
6.4
City of Ocoee Utilities Billing System ..................
6-2
7 IMPLEMENTATION
7.0
General.....................................7-1
7.1
Stormwater Utility Ordinance .......................
7-1
7.2
Public Information Program ........................
7-2
7.2.1 Staff Training .............................7-2
7.2.2 Presentations.............................7-2
7.2.3 News Releases ............................7-3
7.2.4 Trial Billing ..............................7-3
7.3
Stormwater Utility Fund ...........................
7-3
7.4
Billing System.................................7-4
7.4.1 Data Base Development ......................
7-4
7.4.2 Billing Software Modifications ..................
7-5
7.4.3 Data Base Maintenance .......................
7-6
Appendix
endix
Master Drainage Basin Map
1A
TABLE OF CONTENTS
Cont'd
LIST OF TABLES
Table Paye
1-1 Stormwater Management Utilities in Florida
2-1 City of Ocoee Drainage Basin Characteristics
2-2 Proposed Stormwater Utility Capital Improvements
Fiscal Year 1991-92 ......................................2-2
5-1 Property Tax Roll Data ERU Estimate ........................... 5-7
5-2 Non -Residential Properties .................................. 5-8
5-3 Total ERU Estimate for Ocoee................................5-9
5-4 Stormwater Management Utility Revenue Potential in Ocoee
For Various Rate Options...................................5-9
i
EXECUTIVE SUMMARY & RECOMMENDATIONS
The enclosed Feasibility Report on the establishment of a Stormwater Management Utility for
the City of Ocoee contains the following conclusions and recommendations:
1. The City of Ocoee currently operates a stormwater management system consisting of
many miles of storm sewer lines, over 21 miles of roadside swales and other minor
ditches, approximately 6.5 miles of larger open ditches, 24 retention ponds, and
numerous inlets, manholes, outfalls, and other structures. The system also includes 3
drainage wells, and 1 control structure between Starke Lake and Lake Olympia. Crews
from the City's Public Works Department currently maintain these facilities only on an
as -needed basis except for mowing the retention areas. Minor repair and/or reconstruc-
tion is only performed when absolutely necessary. City forces also maintain over 25
miles of roadside swales/ditches along state roadways, for which FDOT reimburses the
City approximately $21,000 annually.
The 1990 Comprehensive Plan identifies a need to complete the analysis for the City's
sixteen (16) drainage sub -basins by 1992. Based on the results of the sub -basin analysis,
the City will establish minimum levels of service, define deficit corrections and describe
a funding source for implementing the capital improvements.
2. The City is authorized under Florida Statutes to establish a Stormwater Management
Utility to assume the operation and maintenance of the City's stormwater related
operations. It is recommended that the City immediately move to adopt an appropriate
ordinance to establish a City-wide Stormwater Management Utility.
3. The impervious area for average residential units in Ocoee was determined to be
approximately 2,054 square feet. With the definition of an Equivalent Residential Unit
(ERU) based on 2,054 square feet, a total of approximately 7,506 ERU's were estimated
for Ocoee.
I
-1- OE -152
11
4. It is estimated that a initial user fee of $3.00 per month per ERU will generate
approximately $270,000 on an annual basis, and is recommended as the City's initial
stormwater utility user fee charge. In the future, the user fee may need to be adjusted
based upon required sub -basin analysis, minimum levels of service and funding
requirements for any identified deficit corrections.
5. The City should appoint the City Engineer to the additional position of City Stormwater
Engineer and, as such, would be responsible for all technical functions of the stormwater
management utility.
6. The City should establish a Stormwater Section within the City's Public Works Division
to be responsible for providing operation and maintenance services for the City's
stormwater management system.
7. The City should proceed expeditiously to implement the necessary steps to issue the first
month's stormwater management utility charges on the City's Utilities billing system,
after adoption of the enabling ordinance by the City Commission.
-2- OE -152
r
U
SECTION 1
INTRODUCTION
1.0 Background
Professional Engineering Consultants, Inc. (PEC) has been authorized by the City
of Ocoee to determine the feasibility of the City establishing a Stormwater
Management Utility (SMU) to be responsible for the: (a) operation and mainte-
nance of the City's drainage and related stormwater management systems; (b) the
development of drainage basin master plans for future improvement projects; and,
(c) capital funds for right-of-way acquisition, and for design and construction of
future improvements. This would include cleaning and repair of existing inlets,
catchbasins, manholes, and drainage pipes, as well as street sweeping. It will also
provide for the planning, design, construction and maintenance of improved
conveyance systems or storage/detention systems to reduce flooding and for new
stormwater retention ponds to enhance water quality in the City's lakes and other
receiving waters.
1.1 Growth Management Act Requirements
The Growth Management Act of 1985 (Chapter 163 F.S.) requires all local
governments to adopt Comprehensive Plans containing the following: (1) establish
minimum levels of service; (2) describe how public services would be provided
concurrent with the infrastructure needs created by new growth; and, (3) determine
revenue/cost implications concerning implementation of the Comprehensive Plan.
Chapter 9J-5 of the Florida Administrative Code requires detailed information
concerning specific areas (i.e. water, wastewater, drainage) of infrastructure
analysis. The City of Ocoee is a rapidly growing community and does not have
detailed information on many of its 16 drainage sub -basins. As described in the
1-1 OE -152
City's 1990 Comprehensive Plan, the 16 basins must be analyzed and deficit
_ corrections must be determined. Upon completion of the basin analysis, a
minimum levels of service must be established and a cost for any deficit correction
must be determined. Many public entities have utilized the Stormwater Manage-
ment Utility (SMU) approach to provide funds for basin studies and to provide long
term funding for operation and maintenance and deficit corrections.
1.2 History and Description of Stormwater Management Utilities
The first known Stormwater Management Utility in the U.S. was established in the
City of Bellevue, Washington in 1976. Tallahassee was the first city in Florida to
adopt an SMU approximately five years ago and has been followed by a reported
31 cities and 7 counties as shown in Table 1-1.
An SMU is typically organized in a manner similar to a water or sewer utility
operation where the sewer or water utility is set up to be a self-supporting utility,
by charging a user fee to customers of the system who occupy developed property
within the limits of the city. The revenues and expenses of such an SMU are
typically set-up and accounted for in an enterprise fund,type of accounting
system, similar to a water or sewer utility enterprise fund.
Florida Statutes (Sec. 403.0893) authorize municipalities to charge for drainage
facilities as a service provided by a public utility. Furthermore, case law from
other states has verified that the provision of such stormwater management services
is a valid municipal function which may be operated as a utility. It is also
important to note that the fee charged an improved property under an SMU is not
a tax on the ad valorem valuation at a given improved property, but rather is
typically based on that improved property's contribution to stormwater runoff. The
runoff potential is primarily a function of the impervious area on the property
1-2 OE -152
I�
n
[3
OE -152
TABLE X
STpRMWATER MANAGEMENT �JTILTM Il FLQRIDA
,:;.... Rafe
ERt1: .
1
Tallahassee
$2.12
2.
Gainesville
$3.30
3.
Ocala
$2.00
4.
Daytona Beach
$1.10
5.
Port Orange
$2.50
6. -
Port St. Lucie
$3.33
7.
Miami
$2.50
8.
Oakland Park
$1.00
9.
Orlando
$3.00
10.
Altamonte Springs
$1.75
11.
Winter Park
$3.50
12.
Mount Dora
$3.00
13.
Edgewater
$3.00
14.
St. Petersburg
$4.50
15.
Tavares
$3.00
16.
Dunedin
$3.00
17.
Kissimmee
$2.00
18.
Holly Hill
$0.50
19.
S. Daytona
$1.00
20.
Ormond Beach
$2.50
21.
Largo
$1.60
22.
Deland
$2.00
23.
Cape Coral
$2.50
24.
Sarasota County
$3.50
25.
Brevard County
$3.00
26.
Hillsborough County
(1)
27.
Clearwater
$3.00
28.
W. Palm Beach
$3.50
29.
Ft. Meade
(1)
30.
Oldsmar
(1)
31.
Jacksonville Beach
$3.00
32.
Delray Beach
$2.25
33.
Clermont
$3.00
34.
Lee County
(1)
35.
Titusville
$3.00
36.
Indian River County
$3.50
37.
Collier County
$3.50
38.
Dade County
(1)
Notes:
(1)
Stormwater Utility Ordinance passed but actual monthly rate not yet set.
OE -152
I
11
which can either be directly measured or obtained from the County Property
Appraiser's Office.
Since all improved properties, including those tax-exempt, are usually charged a
fee in an SMU based on runoff potential, such SMU fees are generally considered
the most equitable of the methods available for funding stormwater management
functions. Also, since the fee is not a tax, those who occupy developed property
would be required to pay a stormwater management fee, even if they are exempt
from ad valorem taxes. The City would be charged a fee for improved property
owned by the City, including the City Hall complex and fire stations. Similarly,
other governmental entities including the State, County, and the School Board,
would be assessed a stormwater fee, as would churches and hospitals. Owners of
public roads, whether the State, County or the City, are typically exempted from
the payment of stormwater management fees, although this is optional and can be
considered as a future possibility. It is noted that funds from the Stormwater
Management Utility are not typically used to cover the costs of construction of the
drainage components of public road projects.
1-3 OE -152
TABLE 2-1
CITY OF OCOEE
DRAINAGE BASIN CHARACTERISTICS
Total
100 -Year
Drainage
Drainage
Land
Lake
Flood
Outfall
Basin Name
Area
Area
Area
Elevation
Conditions
(acres)
(acres)
(acres)
(msl)
1.
Lake Addah
264
254
10
90.4
Land -locked
2.
Lake Meadow
1,207
11149
58
90.2
Land -locked
3.
Prairie Lake
676
602
74
90.2
Land -locked
4.
Northwest Ditch
1,473
1,454
19
N/A
Lake Apopka
4a.
Moxie/Peach Sub -Basin
243
224
19
142.0/149.0
Northwest Ditch
5.
Spring Lake
416
384
32
121.0
Land -locked w/Drainage Well
6.
Lake Johio
204
177
25
Land -locked w/Drainage Well
7.
Starke Lake
833
611
222
101.0
Land -locked w/Drainage Well
8.
Lake Olympia
426
326
100
101.0
Land -locked
9.
Lake Lotta
2,470
2,426
44
99.0
Lake Rose
9a.
South Central Sub -Basin
161
161
0
N/A
Lake Rose
Lake Sherwood
10.
Unnamed No. 1
218
214
4
Unknown
Land -locked
11.
Unnamed No. 2
211
205
6
Unknown
Land -locked
12.
Lake Blanchard
139
120
19
118.3
Land -locked
13.
TABLE 2-1
325 277 48 119.4
(Cont'd)
14.
CITY OF OCOEE
931 931 0 N/A
DRAINAGE BASIN CHARACTERISTICS
Lake Stanleyl
Total
16.
100 -Year
Drainage Drainage
Land Lake
Flood
Basin Name Area
Area Area
Elevation
(acres)
(acres) (acres)
(msl)
13.
Lake Lilly
325 277 48 119.4
(Formerly Lake Pearl)
14.
South Maguire
931 931 0 N/A
15.
Lake Stanleyl
-- -- -- 86.5
16.
Lake Florence'
-- -- -- Unknown
' Limits of drainage basin extend beyond city limits, drainage basin unidentified at the present time.
Outfall
Conditions
Land -locked w/Drainage Well
Overland West to Black Lake
Land -locked w/Drainage Well
Land -locked w/Drainage Well
any excess revenue is generated in Fiscal Year 1991-92 from the Stormwater
Management Utility, the funds would be maintained within the SMU enterprise
fund to provide for future funding of planning, design, permitting and construc-
tion of capital improvements to the City's stormwater management system.
1.
CAPITAL EXPENSES
A
Feasibility Report and Initial Basin Studies
$100,000.00
B
Fence/Spring Lake Retention Pond
7,200.00
C
Lakeshore Drainage Improvements
42,800.00
D
20' Boom Mower
17,500.00
E
Mott Flail Mower
5,600.00
F
Yazoo Mower
900.00
G
Toro Riding Mower
3,000.00
H
Ford Tractor
121000.00
TOTAL
$189,000.00
2.
OPERATION EXPENSES AND TRANSFERS
A
Administrative Services
$25,000.00
B
C
Contingency
Professional Services
50,000.00
5,000.00
D
Miscellaneous Expenses
1,000.00
TOTAL
$81,000.00
GRAND TOTAL
$270,000.00
2-2 OE -152
I�I
II:
�A
SECTION 3
FUNDING SOURCES FOR STORMWATER MANAGEMENT
3.1 General
An American Public Works Association report states that throughout the United
States, unstable and inadequate local financing is a major obstacle to comprehensive
urban stormwater management programs. This is also true of Ocoee which, like
most cities, currently finances stormwater management from the General Fund.
This directly affects the City's ad valorem tax rate and reduces the financial
resources available for other programs.
The purpose of this section is to briefly review a number of financing options
available to the City of Ocoee for its future stormwater management program.
3.2 General Fund
General Fund revenues are derived from a variety of sources. The principal ones
are property tax, franchise fees and utility taxes, state revenue sharing, and
numerous miscellaneous sources. As a practical matter, however, the property tax
is the only flexible General Fund revenue source with the capacity for generating
large amounts of additional revenue. But, it is considered by many to be an
especially unpopular tax.
Stormwater management is usually considered one of the more discretionary items
in a City budget when it is financed from the General Fund. It is difficult for
programs focused on long term, costly public facilities construction and mainte-
nance to compete for funds in the annual budget. Like water and sewer utility
facilities, several years of planning and design are often required before stormwater
3-1 OE -152
management facilities are ready for construction. Of these three types of facilities,
however, stormwater management is the only type still commonly financed from
the General Fund. Cities which still use the General Fund for water and sewer
service experience similar problems of inadequate funding for these services.
Another problem with the General Fund is that revenues, to some extent, tend to
follow the economic cycle, whereas stormwater management costs do not.
Furthermore, taxes paid to the General Fund bear little or no relationship to the
benefit a given property receives from stormwater management, or the extent to
which that property contributes to stormwater problems.
3.3 User Charges
User charges are perhaps the fastest growing municipal revenue source. Although
stormwater management has been financed by user charges for some local
governments in the western United States for over ten years, this type of financing
has been available in Florida only since 1986.
The basic concept of stormwater utility user fees is more analogous to fees for
garbage service than water or sewer service fees. As with solid waste, something
(i.e. stormwater) is transported away and disposed of. Also, measurement of what
is carried away is difficult and costly.
Essentially all properties benefit from the City operating an adequate and properly
maintained system. All residents and property owners receive a service when the
stormwater management system prevents flooding of streets, parks and other public
facilities.
The essence of a user charge system is that the amount each user pays varies
depending on how much they use the service being charged for. Someone who
3-2 OE -152
L
uses more of the service pays more. Someone who uses less of the service pays
less. Therefore, the stormwater utility user fees for a particular property should
be based on the amount of water which runs off the property (stormwater runoff)
and into the City streets or storm sewers during and after a rain storm. Since
direct measurement of stormwater runoff is difficult and costly, an indirect
measurement is typically used. An appropriate indirect measurement is the total
amount of impervious surface on the property. This use of an indirect measure-
ment has precedent in that sewer charges are frequently based on water consump-
tion and charges for solid waste collection are based on the disposal capacity made
available to the customer, and not on the amount of waste actually disposed of.
User charges are a true alternative to General Fund financing for stormwater
management. Other options affect only a limited number of people or properties
and will not generate enough revenue to fund all the City's stormwater management
functions. User charges spread the expense of stormwater management as widely
as possible, including public and other tax exempt properties as well as taxable
properties.
Stormwater management utility rate structures are relatively inelastic. Consequent-
ly, stormwater revenues are more stable than water and sewer revenues which are
based on consumption. Most stormwater utility rates are based on how the use of
the property affects the quantity and quality of stormwater runoff, factors
unaffected by the economic cycle. The incidence of unpaid bills does tend to
increase during a recession, however, so stormwater utility revenues are not totally
immune from a shortfall.
User charges can be used to pay for administration, planning, design, construction,
operations and maintenance, support services, regulatory functions and any other
costs of the stormwater management program. They can also be used to support
revenue bonds to finance new construction as well as replacement of old systems.
3-3 OE -152
i�
l
Stormwater utility rate structures are flexible enough to allow the City to tailor the
rates to fit its own local policies and stormwater management program. Also, the
charges would remain in the fund if not spent during any one fiscal year. This
® helps develop long term stability for the stormwater management program.
3.4 Fees and Other Charges
Fees and charges, other than a general user charge, would not generate sufficient
�r revenue to fully operate the stormwater system. They could, however, recoup the
cost of special services provided by the City and be an important supplemental
revenue source for the Stormwater Utility Fund.
3.4.1 Plans Review and Inspection Fees
Many cities use fees to help fund stormwater management regulation and
enforcement efforts such as construction plans review, field inspection, and erosion
and sediment control. Most plans review and inspection is related to the design
and construction of on-site stormwater management systems. Fees for these
services are typically flat fees based on the average cost of providing plan review
and inspection functions with the charge varying for different categories of
projects. Hourly rates for plans review as well as inspection can also be used.
However, using this approach means that a project which demands more staff time
must pay a higher fee, while a well designed and well managed project would pay
less. Such variable fees can be billed after services are rendered, or a deposit can
be required when the permit application is filed, against which draws are made to
cover the costs of plans review and inspection. If the account is drawn down to
a minimum level, it must be increased to a required amount or a stop work order
is issued for the project.
3-4
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The value of the improvement is not widely used as a fee basis for stormwater
management plan review and inspection. The construction cost of various types
of on-site stormwater facilities has little to do with the amount of plan review and
inspection time required of the staff. It might be possible, however, to develop an
equitable system of fees based on the various features of the system, analogous to
the fee systems used for plumbing, electrical, and mechanical permits.
Inspection fees can also be used to finance other enforcement functions. Private
on-site stormwater management facilities are often not maintained in proper
working condition by their owners. Annual inspection of such systems would
identify needed maintenance before problems spill over into public stormwater
systems or lakes. An inspection fee could be collected as a charge for an annual
operating permit for the on-site stormwater system, or as a special service charge
on the stormwater utility bill.
3.4.2 Impact Fees
Conceptually, stormwater impact fees on new developments could be considered
as a means of providing capital funds for planning, design, and construction of
stormwater management systems required to accommodate new development.
However, we are not aware at this time of locations in Florida where governmental
entities have successfully imposed stormwater impact fees on new developments,
particularly in view of the stormwater requirements that are separately required of
new developments by City and County Development Codes.
3.5 Special Assessment
While special assessments could be used to finance stormwater management
facilities, there are several drawbacks to their use. Special assessments have
historically been used primarily for linear type improvements, such as sidewalks,
3-5 OE -152
A
3
sanitary sewers, resurfacing and street construction. This approach is most
acceptable when the perceived benefit of the project to each occupant of developed
property approximately matches the assessment each has in proportion to its
neighbors. Some stormwater projects, such as replacing a ditch serving only the
abutting properties with a pipe, would be appropriate assessment projects. But how
would someone two or three blocks away perceive a benefit from construction of
a retention pond? Similarly, would someone in the upper portion of a drainage
basin perceive a benefit from installing a larger storm sewer to eliminate ponding
in an intersection several blocks away? And, if that intersection is on a collector
street, motorists using the street may benefit as much, if not more, than the
properties in the basin. It is considered challenging, if not impossible, to develop
an equitable and acceptable method of distributing the costs of most stormwater
facilities so that they could be financed using assessments.
3.6 Financing for Capital Improvements
Major stormwater management systems have been very difficult to finance. The
public generally places a low priority on them except during and immediately after
storms. Most of those which have been built were financed by bond issues, such
as General Obligation Bonds. The cost of repaying a General Obligation Bond
issue falls either directly or indirectly on the property tax.
Local governments which have a stormwater utility can fund capital improvements
through revenue bonds, by using the utility user charges to pay the debt service on
the bonds. Stormwater Utility bonds have been sold by several Florida cities.
3-6 OE -152
SECTION 4
STORMWATER MANAGEMENT UNDER THE UTILITY CONCEPT
4.1 General
As described in Section 1.1 above, minimum levels of service for drainage must
be established in the Drainage Sub -element of the Comprehensive Plan. Any
deficit conditions must be identified and corrected in accordance with the Drainage
Sub -element. In order to implement the deficit corrections, the stormwater
management utility should have authority over all stormwater functions. This
includes new construction, correction of deficit conditions, and operation and
maintenance of the stormwater collection system comprised of retention areas, open
swales and ditches, culverts, inlets, storm sewers, outfalls, control structures and
drainage wells. Also included are any other measures undertaken to reduce the
pollutants in stormwater or otherwise mitigate the effects of stormwater on
receiving lakes and streams.
4.2 Organization and Staffing
It is proposed that the City Engineer also serve as the City Stormwater Engineer
and be reponsible for the following:
1. Administer contracts for planning and design services.
2. Conduct an on-going public information program on the stormwater
management utility, its activities, and the water quality benefits that can be
attained with citizen cooperation.
4-1
OE -152
3. Develop a stormwater management plan to achieve desired water quality,
goals, and hold flooding within agreed upon level of service (LOS) criteria.
A capital program for stormwater management facilities should be an
element of this plan. As needed capital projects are identified, they must
be prioritized and scheduled in the long range capital improvement
program.
4. Work with the City's Finance Department to develop a revenue bond
program to finance needed major stormwater management facilities once the
needs are known in sufficient detail.
5. Review developer's plans to insure that they are consistent with the City's
stormwater management regulations.
6. Coordinate Ocoee's stormwater management program with the efforts of
other local governments and State and Federal agencies to improve water
quality in local lakes and receiving waters.
It is also recommended that the City establish a Stormwater Management Section
within the Public Works Division to be responsible for all operation and
maintenance activities related to the City's stormwater systems.
4.3 Finance
The stormwater management utility should be set up for accounting purposes as an
enterprise fund, as is discussed in other sections of this report.
4-2
OE -152
II
SECTION 5
RATESTRUCTURE
5.0 General
The rate structure of the Stormwater Management Utility should provide a stable,
adequate and publicly acceptable source of funds to support the City's entire
stormwater management program. Otherwise, the basic purpose of creating the
stormwater utility cannot be achieved.
5.1 Criteria For Evaluating Alternative Rate Structures
A variety of stormwater utility rate structures are in use, have been tried or have
been conceptualized for various local governments in the United States. There
must be some criteria used to determine which of the various options available is
best suited to Ocoee. Some of the criteria discussed below may be viewed as more
important than others. The order of presentation is not intended to suggest any
particular priority except for the elements of perceived equity and public
acceptance. These elements are essential for the political success of any new
proposal for financing stormwater management.
5.1.1 Perceived Equity and Public Acceptance
It is acknowledged that a number of citizens will be unwilling to pay anything
through any financing method for improved stormwater management. A large
segment of the population, however, will understand the need for an adequate
stormwater management program. To these citizens, the critical issue is equity.
Even if it were technically achievable, perfect equity would be too costly. But the
public must perceive the rate structure as being reasonably equitable. First, for the
5-1 OE -152
public to perceive the rate structure as reasonably equitable, the rate structure
needs to be simple and understandable. Second, the charge needs to be associated
as directly as possible with the service activity or capital project to which it relates.
Then the logic of the rate structure and the connection between service rendered
and the amount of user charges must be communicated to the public.
5.1.2 Flexibility
The rate structure selected by Ocoee should be flexible in terms of its revenue
generating capacity. There is some level of user charge beyond which the majority
of the public is unwilling to pay, regardless of how equitable the rate structure may
be. The City needs to select a rate structure and a combination of funding sources
which will generate sufficient revenue to pay for the stormwater management
program and still be within the limits of the public's willingness to pay.
5.1.3 Cost of Implementation
Cost is a limiting factor when considering other criteria. The pursuit of either
equity or flexibility to an extreme would result in a rate structure that is too costly
to implement and administer. On the other hand, a rate structure which costs more
to implement might be worth it if alternative approaches would not generate enough
revenue to fund the program.
5.1.4 Data Requirements
Data requirements are a major factor in the cost of implementing and maintaining
a billing file. Also, the normal negative public reaction to implementing a new
user charge is intensified if there are many erroneous bills due to bad data. For
these reasons, the type and quality of local data is a major factor in selecting rate
structure parameters.
5-2 OE -152
L'
l
A complex rate structure requiring a lot of data is not considered a good choice.
The rate structure should be based on one or two parameters which reflect the
dominant stormwater management concerns of the City. Existing data is least
expensive to work with if it is sufficiently accurate and easily accessible.
Generating new data is always costly and requires greater quality control.
5.1.5 Compatibility With Data Processing Systems
Creation of a stormwater management utility with user charges will require an
additional sub -system in the City's utility billing software. There will also need
to be a new fund established in the accounting system and other adjustments made
to various City financial record systems. The more these systems have to be
changed to accommodate the rate structure, the more implementation will cost.
Therefore, to the extent possible after taking other factors into consideration, the
rate structure should be designed to be compatible with existing systems.
5.1.6 Funding Source for Implementation of Stormwater Management Utility
Also, the City needs to decide what source of funds will be used to pay the
implementation costs. Historically, the General Fund has not paid for adequate
operating and maintenance of the stormwater drainage system. Another approach
would be to move ahead immediately and set up the Stormwater Utility Fund at the
outset.
5.1.7 Upkegp
Some rate structures will need very little file or record maintenance. Others will
require frequent updates. Rate structures which minimize upkeep requirements are
desirable. This must be balanced, however, against the need for equity and
flexibility. Upkeep requirements can be controlled through choices in the
5-3
OE -152
5.2
parameters of the rate structure, basic data sources and billing processes. The best
way to evaluate the upkeep requirements of a particular rate structure is to consult
with other local governments which have implemented a similar structure.
Alternative Rate Structures
The Drainage Finance Study, Rate Structure Analysis completed for the City of
Tampa by Water Resource Associates, Inc. identified ten alternative rate structures.
Rate structures one might devise would probably be modifications or combinations
of the following ten:
1. A flat charge for each existing utility account.
2. A flat charge for each existing utility account serving properties up to a
certain size, with a variable rate based on gross area for larger properties.
3. A variable rate based on the impervious area on each property.
4. A variable rate based on the impervious area on each property, but with a
flat rate for single family residences.
5. A variable rate based on the percent of impervious coverage and the gross
area for each property.
6. A variable rate based on the percent of impervious coverage and the gross
area for each property, but with a flat rate for single family residences.
7. A rate based on land use, with a different flat rate for each different land
use category.
5-4 OE -152
w
1 8. A variable rate based on land use and gross area for each property.
9. A variable rate based on land use and gross area for each property, but with
a flat rate for single family residences.
10. A variable rate based on land use and gross area for each property, plus a
factor for distance from the outfall to receiving waters, with a flat rate for
single family residences.
Each of these alternatives was evaluated in light of the criteria discussed earlier in
this section. Alternatives 1 and 7 would be easy and inexpensive to implement, but
must be rejected as inequitable. From the viewpoint of equity, alternative 5 would
perhaps be best, followed by 3 and 8, although all three of these alternatives would
be very expensive to implement, however, rates based on Alternative 2 would be
difficult to implement and is not considered equitable.
■ Although they would be better than Alternative 2, both 9 and 10 still have some
J
problems with rate equity, plus with 10 the implementation is more difficult.
While the two remaining Alternatives, 4 and 6, both use the amount of impervious
area on each property to determine the amount of the user charge, 6 is considered
more difficult and time consuming to implement. Therefore it is recommended that
the City of Ocoee adopt a stormwater utility rate structure based on Alternative No.
4.
Data on the amount of impervious area and the gross area for most non-residential
properties is available from the Orange County Property Appraiser's records.
Copies of these records have been obtained as a part of this feasibility study from
the Property Appraiser and will be provided to the City.
5-5
OE -152
Ll
In the methodology utilized in this report, the total impervious area for an "average
residential unit" in the City is first determined, utilizing available data for all the
residential units in Ocoee. This impervious area is then used to establish a single
fee unit referred to as an equivalent residential unit (ERU). All types of residential
properties, including detached single family homes, apartments, condominiums,
townhomes, are included in determining the ERU amount. The rates applicable to
non-residential properties are determined by dividing the total impervious area for
a property by the City's average impervious area for a residential unit, with the
result being the number of ERU's for each non-residential property. This type of
rate structure is compatible with the City's utility billing data system since charges
would remain constant once the files are initially set up. The charge would change
only when a file change is made.
5.3 Rate Development
The total impervious area of an average residential unit in Ocoee has been
determined for use as a basis for establishing individual stormwater management
utility rates. This impervious area is then used to establish a single fee unit
referred to as an equivalent residential unit (ERU). The total potential customer
base of fee units and the potential revenue can then be estimated for various rate
options. The estimate of revenue potential provides essential data for development
and adoption of a stormwater management utility budget and rate structure.
5.3.1 Equivalent Residential Unit
A printout of "appraisal cards" for all improved property in Ocoee was obtained
from the Orange County Property Appraisers Office. Each appraisal card typically
provides data on building square footage, and for other site improvements such as
patios, carports, garages, etc., in accordance with standardized use codes
established by the Florida Department of Revenue. The total area of on-site
5-6 OE -152
I
parking lots, driveways, etc. is typically provided for non-residential improved
property. Unfortunately, desired data is not usually provided on tax-exempt
property, nor is all the desired data provided for the condominium category and in
come cases the appraisal card data is incomplete or difficult to interpret.
The average impervious area for residential units in Ocoee was determined by
evaluating the total impervious area for each residential property where the data are
available and readily interpretable on the appraisal card. The impervious area was
then summed up for all residential properties and an average impervious area figure
was obtained for residential units by simple division. A total of 4,496 residential
units were utilized to develop the ERU estimate shown in Table 5-1. An overall
total of 4,776 residential type appraisal cards were provided, but approximately 280
were not useable in developing a valid ERU estimate because the data was either
incomplete or the actual impervious area was not defined.
TABLE 5-1
PROPERTY TAX ROLL DATA
ERU ESTIMATE
Total Avg. Imp.
No. of Residential Impervious Area Area Per
Category Units Utilized (Square Feet) ERU (sq.ft)
Residential Units 4,496 9,236,690 2,054
It is noted that since the data for detached single family residences does not include
the impervious area for on-site paved driveways or sidewalks, an estimated average
driveway/sidewalk area of 450 square feet was added to the impervious area for
each detached single family residence which was then utilized in determining the
average impervious area for an ERU in Ocoee.
5-7 OE -152
C
5.3.2 Estimated Total Potential Customer Base
The figures shown in Table 5-2 and 5-3 were developed from either the appraisal
card printouts or from City of Ocoee records containing apartment site development
plans, or by planning level estimates, to yield estimates of the total impervious area
of all non-residential/commercial properties and public/non-profit properties. The
uncertainty associated with the public and non-profit category is obviously the
highest, since the "Appraisal Card" data is essentially non-existent for such tax-
exempt property categories.
The data for non-residential properties was developed by reviewing the appraisal
card for each non-residential property, and summing up the total impervious area
on-site for each property, including the ground floor area of structures, plus on-site
paving for driveways, parking, etc. The data were then totaled and the resulting
total square footage amount of impervious area was then divided by the total
number of properties to yield an estimate of the number of equivalent residential
units for the non-residential property category. It is noted that a conservative
estimate for the impervious area on public and non-profit properties was developed
by assigning a planning level estimate of 1.5 ERU's to each property.
TABLE 5-2
NON-RESIDENTIAL PROPERTIES
Estimated No.
Categories of ERU's
1. Non-Residential/Commercial 2,700
2. Public and Non -Profit 30
5-8
2,730
OE -152
The total number of ERU's for the two major billing categories estimated, are as
presented in Table 5-3.
Category
1. Single Family
Residential Units
TABLE 5-3
TOTAL ERU ESTIMATE FOR OCOEE
Estimated Total
No. of Units
4,776
2. a. Non-Residential/Commercial 290
b. Public & Non -Profit 20
TOTAL 5,086
5.3.3 Revenue Potential
Method
of Assessing
ERU's/ Est.No. User
Unit ERU'S Fee
1.0 4,776 Flat Rate
9.3 2,700 Variable
1.5 30 Variable
7,506
Based on a total of approximately 7,506 ERU's in Ocoee, a charge of $1.00 per
ERU per month yields $90,072 per year. Table 5-4 shows the revenue potential
for rates ranging from $1.00 to $3.50 per ERU per month, in increments of $0.50
per month.
TABLE 5-4
STORMWATER MANAGEMENT UTILITY REVENUE POTENTIAL IN OCOEE
FOR VARIOUS RATE OPTIONS
Fee Per ERU
Per Month ($) Projected Annual Revenue
1.00
$ 90,072
1.50
135,108
2.00
180,144
2.50
225,180
3.00
270,216
3.50
315,252
RE
OE -152
5.4 Specific User Charge Rate Issues
It is recommended that not-for-profit or senior citizen housing complexes be
charged as residential units. However, when the complex actually provides health
care services on-site, it is recommended that the complex be charged as a
commercial property.
Also, it is recommended that commercial condominiums be charged as commercial
properties, with each such commercial condominium unit assessed a pro -rata share
of the total on-site impervious area, with a minimum charge of 1.0 ERU per each
commercial condominium unit.
5-10
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SECTION 6
BILLING ALTERNATIVES
6.1 General
Three possible alternative methods for billing stormwater management utility
charges are: (1) a separate bill could be generated; (2) the City could enter into
an agreement with the Orange County Property Appraiser to bill annually on the
property tax bill; or (3) the charge could be added to the City of Ocoee monthly
utilities bill.
6.2 Separate Billing System
It would be costly to set up a separate billing system for the stormwater utility.
The postage costs alone would equal the estimated cost of adding the stormwater
charge to the City of Ocoee Utilities bill. Since there is no special advantage to
a separate bill, this alternative was not explored any further.
6.3 Annual Property Tax Bill
Having stormwater management utility charges added to the annual property tax
bill has two advantages. The rate of collection is very high, and it would be easier
to charge vacant properties if, in the future the City decided to assess a charge to
such undeveloped properties.
There are, however, a number of disadvantages. With charges being billed
annually, some customers may have more difficulty paying twelve months of
charges all at once than they would paying a monthly bill. Also, putting this utility
charge on the property tax bill may make the charge less acceptable to the public
since many people would view it as just another part of their property tax.
6-1 OE -152
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It is noted that the estimated cost of using the property tax bill is about the same
as the cost of adding this charge to the Ocoee Utilities bill.
6.4 City of Ocoee Utilities Billing System
User charges for City water, sanitary sewer and solid waste collection services are
billed to users and collected monthly by the City's utilities system. The computer
generated billing shows each service as a separate line item on the bill. The billing
system software and procedures also track payments from each customer and
allocate money collected to the proper enterprise fund. Once an account file has
stormwater management utility rate data entered, collecting the stormwater charges
through this system would simply mean adding another line item to the monthly
bill. Implementation and on-going billing costs would probably be less using the
City's Utilities bill than for any of the alternatives. The cost of the software
package to provide for computerized billing of a stormwater management utility is
reported to be approximately $2,500. Additionally, labor costs will be incurred to
manually input all the initial data to the billing system and to generate a trial billing
for truthing prior to mailout of the first month's actual bills. Also, it is preliminar-
ily it estimated that billing and collection costs and related administrative costs should
be in the 25 to 35 cents per bill range after initial start-up of the billing system.
Since the City's Utilities Division is part of City government, the billings would
be under the direct control of the City. Procedures for handling delinquent
accounts are already in place, so collections should not be a problem. There may
be some properties with impervious surfaces which do not have a utility account.
In such cases, it will be necessary to set up a new account to properly charge the
property for stormwater management services. However, it is felt that there are
very few such cases. For these reasons, it is recommended that the City of Ocoee
Utilities billing system be used to bill for stormwater management utility charges.
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SECTION 7
IMPLEMENTATION
7.0 General
Implementation of a stormwater management utility for the City of Ocoee will
require the following steps: (1) adoption of an ordinance legally establishing the
utility; (2) development of policies and procedures on billing for stormwater
management user charges; and, (3) merging the new stormwater user charge into
Ocoee's utility billing system. At the same time these steps are being taken, the
City should have an extensive, ongoing public relations program to explain the
stormwater utility concept and why it is needed in Ocoee. One further step which
is recommended, although not required, is creation of the Stormwater Management
Section within the Public Works Division.
7.1 Stormwater Utility Ordinance
A stormwater utility ordinance should include a method for computing user charges
for individual users, procedures for any customer to appeal the charge computed
by City staff, and procedures for collecting delinquent accounts. The average
impervious coverage per residential unit in the City is established as the basic unit
of service for the stormwater utility.
7.2 Public Information Program
For the stormwater management program to be successful, the public must be
informed about its goals, plan of action, and the expected impact of implementing
the program. The City Commission and staff recognize this need, and have
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already taken steps to inform the public on the stormwater management utility
concept.
7.2.1 Staff Training
The experience in other municipalities has been that relatively few residents will
have questions about the stormwater utility user charge. If these questions are
handled properly by a well-trained and courteous staff, then most serious concerns
about this new fee can be resolved to the citizen's satisfaction. Staff training needs
to be the next step in providing public information since each succeeding step is
likely to generate calls and letters to City Hall.
Everyone who is likely to receive calls from the public with questions regarding
the stormwater utility should be briefed about it. They need to be familiar with the
concept, know which department will manage the stormwater utility and know to
which office calls should be transferred for answers to more detailed questions.
In order to remove unnecessary sources of irritation to people calling in with
questions, the City Manager should designate several people to answer questions
about the stormwater utility. This will make it possible to handle several calls at
once, and will minimize the chances of everyone knowledgeable on the subject
being out of the office at the same time. Those persons assigned to answer
questions should be thoroughly familiar with this report, prepared answers to
common questions and the proposed implementation schedule.
7.2.2 Presentations
One method of getting more information to the public on the stormwater utility is
public presentations. These can take a variety of forms. An oral presentation
supported by slides or video could be developed. Staff and Commissioners could
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then aggressively seek opportunities to make presentations to civic groups and
neighborhood organizations. Static displays could be developed and placed at City
Hall and in the Community Center.
7.2.3 News Releases
Appropriate news releases at each step of the implementing process will help
educate the public on what a stormwater utility is and what it does. A notification
to the potentially affected citizens could be done prior to the second public hearing
on the proposed ordinance by placing an appropriate message on the City's monthly,
utilities bill.
7.2.4 Trial Billing
a A final step which could be taken to ensure that every customer is aware of the
new fee before being billed for it would be to send out a trial billing. A less
expensive effort would be to send a trial billing to all stormwater utility customers.
This could include information on which the billing is based, i.e. the number of
units or the square footage of the various types of impervious surfaces on the
property. The customer could be requested to verify this data and inform the City
of any discrepancies. This approach would help avoid any ill will from erroneous
billings.
7.3 Stormwater Utility Fund
Upon adoption of an ordinance to set up a Stormwater Management Utility for
Ocoee, the City's Finance Department should immediately proceed with creating
a separate enterprise fund for this utility. Then the expense of implementing the
utility can be charged against this fund instead of the General Fund.
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7.4 Billing System
Several major tasks must be completed before the City can begin billing for
stormwater user charges. Once the system for billing these new charges is
implemented, a continuing effort will be necessary to keep billing information
current.
7.4.1 Data Base Development
The rate structure recommended in this report greatly simplifies data base
development. The only data needed to implement the billing system for residential
customers is (a) a listing of such residential customers; and, (b) the number of
dwelling units is needed, in the case of master metered apartment projects.
A new data base will have to be developed for nonresidential properties. The
major tasks required to develop this data base are as follows:
1. Match utility customer accounts with property appraisal cards. This should
be done first, since matching appraisal cards with customer accounts will
disclose additional questions which will need to be resolved by a field check
of the property.
2. Field check customer properties as required to resolve questions and gather
data on impervious surfaces. Since the user charge for nonresidential
properties is based on the amount of impervious surface, complete data on
impervious coverage for each property is important. For many public and
nonprofit properties this data is totally omitted from the appraisal card and
will have to be collected by City staff. Other properties show the building
area data, but no parking area is shown on the appraisal card. In some
cases it will be possible to obtain data from site plans in City files rather
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than making a site visit. Some properties may have more than one utility
customer account for a single appraisal card. In these cases, a field check
may be necessary to decide which account to bill for stormwater manage-
ment or how to split the charge between accounts. Utility and Property
Appraiser records can also have conflicting data on the use being made of
the property or the number of units on apartment properties. Such conflicts
need to be resolved.
3. Determine the number of ERU's to be billed to each non-residential
customer. As data are collected on the impervious surface for non-
residential properties, the number of ERU's to be billed to each stormwater
utility customer must be determined. If there is one utility customer
account matching one appraisal card, then only a simple computation is
required to make the determination. When several accounts match one
appraisal card, either all the ERU's will have to be charged to one account,
and the other accounts coded for no charge, or the impervious area on the
property will have to be appropriately divided between the accounts before
the ERU's can be computed for each account.
4. Enter the number of ERU's to be charged to each account into Utility
Billing's customer data base. Once the number of ERU's has been
determined for each nonresidential property, this data must be entered into
the computerized customer data base.
7.4.2 Billing Software Modifications
Once the City decides on a stormwater utility rate structure and makes some policy
decisions about how billing will be handled, the necessary software billing package
should be ordered.
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7.4.3 Data Base Maintenance
Once the stormwater management utility is implemented, procedures for
maintaining the billing data base must be established. The number of ERU's on
nonresidential properties is subject to change. Building construction or new paved
parking area will increase the number of ERU's. Demolition, removal of paving
or construction of retention areas will reduce the number of ERU's or perhaps
entitle the customer to a credit. Building permits are one of the best sources of
data on such changes.
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