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HomeMy WebLinkAboutCamp Dresser & McKee Inc. - 2002-05-06-III NMA6�1NI 1 Council/Agency Meeting Held: W- ol, -O L Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied ,be( Clerk's ignature Council Meeting Date: May 6, 2002 Department ID Number: PW 02-044 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION T SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL o Z SUBMITTED BY: RAY SILVER, CITY ADMINISTRATORS c ^ PREPARED BY: ROBERT F. BEARDSLEY DIRECTOR OF PUBLIC WORKS `I- '. w SUBJECT: AUTHORIZE CONTRACT FOR DEVELOPMENT OF A N STORMWATER UTILITY � `J Statement of Issue, Funding Source, Recommended Action, Alternative.Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: To implement a :funded. stormwater utility, preliminary steps must be taken to develop data and demonstrate that the charge is- reasonably related to the cost of the service. Camp Dresser & McKee Inc. (CDM) is currently under contract to prepare the Drainage and Water Quality Master Plans, and much of that information can be directly applicable to the development of a stormwater utility. Funding Source: Funds in the amount of $75,600 are budgeted in the General Fund, Coastal Remediation Program, Professional Services, Account No. 10086001.69365. Recommended Action: Motion to: Authorize the City Administrator to execute a contract with CDM for professional services leading to formation of citywide stormwater utility. Alternative Action(s): 1. Do not authorize a contract with CDM and direct staff to seek other proposals. This action will extend the study completion by three to six months. 2. Do not pursue the implementation of the stormwater utility. This action would have an on- going fiscal impact to the General Fund insofar as no funding sources have accompanied the new stormwater regulations promulgated by the Santa Ana Regional Water Quality Control Board. REQUESTFOR ACTION • MEETING DATE: May 6, 2002 DEPARTMENT ID NUMBER: PW 02-044 Analysis: Providing stormwater management and meeting water quality mandates will become increasingly more costly over the next few years. The Santa Ana Regional Water Quality Control Board (SARWQCB) recently enacted a series of water quality mandates for the Orange County region. It is,incumbent upon the local cities and the County to implement programs that meet these objectives. The SARWQCB dictates the requirements for the National Pollutant Discharge Elimination System (NPDES)- stormwater permit. The County of Orange is the lead permittee and 26 cities are co-permitees. The primary requirement of the permit is to prohibit non-stormwater discharges and reduce pollutants to the maximum extent practicable. Among the new mandates for municipalities are regular inspection and enforcement programs, public education campaigns and pollutant prevention plans. Additionally, the cities contribute funding for the countywide program elements. CDM already has been retained by the City to develop a Water Quality Master Plan (WQMP). The. Citywide Water Quality Task Force is one component of the WQMP. The Task Force was formed to assist in validating and developing solutions to many water quality issues. Dedicated program funding will be required to meet the objectives of the water quality, storm water and dry weather runoff projects. In addition to the water quality aspect of the drainage system, CDM is preparing a revised Master Plan of_ Drainage (MPD). The MPD will provide a detailed inventory of existing stormwater drainage infrastructure, compute the hydraulic capacities, document deficiencies and recommend system improvements. The Infrastructure Advisory. Committee also has identified rehabilitation and increased maintenance of the drainage_ system components as the second highest priority capital need, behind sanitary sewers. A stormwater utility is permitted under California Health and Safety Code Section 5471. This section of the Code, which also governed the sewer service fee, restricts the use of funds to those programs directly related to stormwater infrastructure or compliance programs. It is anticipated that the fee will be applied to developed properties only and be established consistent with the requirements of Proposition 218. This issue will be included in the utility development process and will be coordinated with the City Attorney's Office.,-,._. . The scope of services provided by CDM outlines the necessary steps to take the program from project development to program implementation. Many of the detailed, labor intensive tasks such as Geographic Information System (GIS) parcel mapping and pervious surface . calculations will be performed by City staff. CDM will act in an advisory capacity, suggest methodologies, validate necessary data and assist in the rate analysis: Preliminary calculations on the rate structure and billing process will be presented to the City Council in the fall. At that time, the City Council will have the opportunity to provide further direction regarding implementation of the stormwater utility fee. G:\R C A\2002\02-044 May 6 Daily (Stormwater Utility).doc -2- 4/29/2002 11:08 AM •REQUEST FOR ACTION • MEETING DATE: May 6, 2002 Environmental Status: Not Applicable Attachment(s): RCA Author: L. Daily DEPARTMENT ID NUMBER: PW 02-044 G:\R C A\2002\02-044 May 6 Daily (Stormwater Utility).doc -3- 4/29/2002 11:08 AM ATTACHMENT #1 • • City of Huntington Beach Storm Water Utility Implementation Scope of Services March 14, 2002 Summary Camp Dresser & McKee Inc. (CDM) will perform professional services necessary to assist the City of Huntington Beach to implement a Storm Water Utility Program. Once implemented, this program will provide a dedicated source of revenue for the City to address urban runoff water quality and drainage needs. CDM's assistance to the city will include the following tasks: Task Description 1 Project Administration and Coordination 2 Project Workshop 3 Data Collection and Review 4 Preliminary Cost of Service Analysis 5 Billing System Analysis 6 Rate Structure (Billing Units) 7 Parcel Billing Data Match 8 Master Billing Data File Development/System Modifications 9 Revenue Scenarios and Rate Analysis 10 Calculation of Actual Utility Charges Task 1 Project Administration and Coordination This task provides project management, reporting, and coordination of quality assurance to meet the requirements of the City in terms of project objectives, budget, and schedule. This task will include: ■, Preparation of monthly progress reports ■ Implementation of project documentation.procedures ■ Briefings with staff to review project progress and to resolve project issues ■ Quality assurance coordination Task 2 Project Workshop CDM will meet with City staff to assist in developing a common understanding of the requirements to establish.a storm water utility. The focus of the workshop and meetings will be to define goals and objectives for the storm water management program and explore the issues and concerns generated by the participants. The workshop will be directed toward: ■ Identifying existing data resources to support the storm water program ■ Establishing the role of GIS within the storm water program D:\Doeuments and Settings\dailyl\Local Settings\Temporary Internet Files\OLKA1\SCOPE rev.DOC • • City of Huntington Beach Storm Water Utility Implementation Scope of Services ■ Identifying storm water management issues and needs in Huntington Beach ■ Delineating existing storm water program services and associated costs ■ Establishing the goals and objectives for the program ■ Establishing the role of the City and CDM in implementing the billing system ■ Establishing the role of City staff and others in the public education/information program CDM will conduct a one -hour session with all potentially involved participants to provide an overview of the project and to determine overall program expectations of the participants. During the remainder of the workshop, CDM and the project manager will meet individually with all the participants to obtain their input and concerns, and to identify their role in the study process and overall program implementation. CDM will identify specific data/information needs and define each participant's role in the evaluation process. Deliverables Summarize workshop meeting results in a technical memorandum, including data and information needs, GIS needs, and staff/CDM responsibilities for implementing the billing system Task 3 Data Collection and Review The principal product from the Project Workshop will be the identification of available and required data and information for implementing the billing system. The CDM team will collect pertinent data and review this data relative to project objectives. Pertinent data and information to be provided by the City include: ■ Water and sewer billing information ■ Aerial photographs and mapping ■ Parcel and boundary maps information ■ Summary of storm water program funding requirements, including: Operations and Maintenance (O&M). The City will provide an adequacy of service evaluation. This assessment will identify the allocable cost for maintenance to a storm water funding source based upon the present level of service, and will also establish a basis for projecting increased O&M activities associated with increased levels of service and NPDES permit compliance currently known. Included in this evaluation will be increased staffing, assessment of allocable equipment purchases and annual charges to budgets for maintenance equipment. - Capital Improvements Program. The City will provide estimates of costs to implement the drainage system CIP and the amount of these costs allocable to the funding source. Program Administration and Regulatory Compliance. The City will provide a budgetary estimate of the cost of administering the storm water program. Costs associated with 10-2 DADecuments and SettingsWailyl\Local SettingsUemporary Internet FileMOLKA7\SCOPE rev.DOC • • City of Huntington Beach Storm Water Utility Implementation Scope of Services administering and updating the billing system over time should be included in the total expenses. Other Services and Obligations. Other pertinent storm water related activities would be identified for potential increases in service levels. Other activities might include mapping; planning; design; storm water quality discharge monitoring; illicit discharge detection/ elimination; public education; inspection and enforcement; development plan review; and any additional storm water quality management or flood control needs. The City will provide budget estimates of any other services and obligations the City desires to be covered by the program. Deliverables ■ Summary of existing data and table of funding needs ■ List of additional data and information required for implementing the billing Task 4 Billing System Analysis In order for the user fee or utility concept to generate a continuous and dedicated revenue source for the City's storm water management program, a billing system must be developed to issue storm water bills and collect revenues. CDM will meet with City staff responsible for utility billing to clarify existing billing procedures. Based on this review, CDM will outline requirements for setting up the billing account database and make recommendations for the collection, updating and file maintenance requirements of the system. Deliverables ■ Identify in a technical memorandum the following items: - Database and billing system requirements to incorporate the new storm water information; - Procedures for file and information maintenance for the storm water information in the City's billing system; - Data transfer procedures for the storm water fee in the utility's billing system; - Billing format requirements to accommodate the storm water charge; - Procedures for updating the billing file database; Task 5 Rate. Structure (Billing Units or ERUs) The rate methodology identifies the basis for determining the runoff potential and storm water charge for each property. The rate structure determines how an actual billing unit is configured, typically through development of user classes.. Although several methodologies�have been employed across the country, the most common and. most defendable is the impervious area. methodology. Under this structure, each utility customer is billed based on the number of equivalent residential units (ERUs) on their property, where one (1) ERU equals the amount of impervious area associated with a typical residential dwelling unit. ►3 D:IDocutnnnts and Settings%dailyhLocal Settings\Temporary Internet FileMOLKAUSCOPE rev.DOC • • City of Huntington Beach Storm Water Utility Implementation Scope of Services Under this task, CDM will develop a rate structure using the impervious area methodology. CDM will meet with City staff to establish the information required from the sampling of residential parcels, including 400 parcels in each of the following residential categories: single family (including duplex and triplex), multi -family, condominiums, and mobile homes. Based on the parcel sampling completed by the City, CDM will develop the Equivalent Residential Unit (ERU). Statistics will be developed by CDM to determine if the range of impervious areas across the residential categories justifies consideration of a tiered residential system. In addition, a sensitivity analysis will be performed to determine if there are statistically significant differences in the ERU value for different residential categories, and this can be used to determine if fractional ERU values need to be assigned to some residential categories. Deliverables ■ Summary table identifying statistics pertinent to single and tiered residential billing system options ■ Average dwelling unit impervious area comparison of Selected cities similar to the City of Huntington Beach ■ Recommendation of an ERU value and/or tiered residential rate structure Task 6 Parcel Billing Data Match CDM will meet with City staff to establish the procedures required to perform a computer cross- reference between the parcel addresses in the assessor's information and the service addresses.in the utility information. The cross reference will be conducted by City staff. Non=residential and non -single family residential parcels that cannot be matched to a utility account by computer will need to be matched manually. CDM will review the computer file of matched parcel/utility accounts prepared by the City. CDM will implement quality control procedures to check the accuracy of the matched parcel/utility. information and any data deficiencies found will be noted to the City for correction. Deliverables ■ CDM will provide the City with a final computer file of the matched information. Task 7 Master Billing Data File Development/System Modifications CDM will meet with City staff to establish the procedures required to develop a master billing data file that contains all of the data required for the storm water utility billing system. The data file will be used to store, retrieve, and update the storm water utility billing information as it is verified. CDM will provide recommendations for the City to make the appropriate alterations and programming changes to the utility billing system and to allow the merging of the existing utility billing and new storm water utility billing files. CDM will provide guidance to the City staff for determining the impervious area for each non- residential parcel based upon reviewing the assessor's information and the utility information utilized during Task 6. This activity will concentrate upon developing actual values for each utility account to correctly represent the amount of impervious area and the ERUs determined by dividing the correct impervious area by the specific ERU value for the City. During the determination effort, CDM will review selected results and provide consultation to City staff as necessary. 00-4 DADocuments and Settings\dailyllLocal Settings\Temporary Internet Res\OLKAt\SCOPE rev.DOC City of Huntington Beach Storm Water Utility Implementation Scope of Services The City will be responsible for making appropriate alterations to its own hardware and software systems such as, computer programming changes to merge existing utility billing and new storm water management utility billing files. Thus, the City will obtain the necessary familiarity with the system to perform periodic updates (e.g., new accounts, etc.). Deliverables ■ Review of City developed data file(s) containing all ERU values for all customers Task 8 Revenue Scenarios and Rate Analysis A series of revenue projections will be produced for the rate structure considered most appropriate for the City. CDM will generate a series of projections for an initial planning period such as five years. These projections will allow Huntington Beach to identify the rate that satisfies the program needs utilizing a "pay-as-you-go" capital improvement funding methodology. The project team will evaluate the storm water utility's rate base over a five-year period for the selected user fee. The "pay-as-you-go" option will be considered, and will include projected capital improvements and the corresponding total program cost impacts such as administration, operation and maintenance, etc. The rate model can be used to determine a fixed rate to meet the needs of the first five years of the storm water program. Deliverables ■ Rate model table for three revenue scenarios. Task 9 Calculation of Actual Utility Rate and Charges CDM will meet with City staff to establish procedures for calculating the number of billing units (ERUs) and the corresponding storm water utility charge for each parcel in the City's existing billing system. Deliverables ■ Review of City developed computer file containing the verified storm water data necessary for maintenance and initial billing. 00- 5 DADocuments and Settings\dailyhLocal Settings\Temporary Internet Files\OLKA1\SCOPE mv.DOC • 0 CDM CITY OF HUNTINGTON BEACH STORMWATER UTILITY IMPLEMENTATION CONSULTING Task Staff Hours Total Hours Cost of Labor Expenses Cost of Task Project Tasks Proj. Mgr/ Task Mgr. Project Director Project Engineer Eng Tech Eng Tech Clerical STORMWATER UTILITY IMPLEMENTATION 1 Project Administration and Coordination 16 16 0 0 0 20 52 $6,460 $6,460 2 Project Workshop 8 20 20 0 4 52 $5,720 $1,056 $6,776 3 Data Collection and Review 8 20 20 10 8 66 $6,190 $1,056 $7,246 4 Billing System Analysis 0 8 16 201 0 4 48 $3,980 $3,980 5 Rate Structure (Billing Units 4 32 16 40 0 8 100 $9,680 $1,550 $11,230 6 Parcel Billing Data Match 4 32 16 40 0 8 100 $9.680 $4,000 $13,680 7 Master Billing Data File Development/System Modifications 4 32 16 40 0 8 100 $9,680 $4,000 $13,680 8 Revenue Scenarios and Preliminary Rate Analysis 4 16 8 22 0 81 58 $5,4841 1 $5,484 9 Calculation of Actual Utility Charges 4 16 16 40 0 81 84 $7,0401 1 $7,040 Total 1 521 1921 88 242 101 761 660 $63,9141 $11,6621 $75,576 2 HBBUDGET-Consulting Only revl 1 of 1 3/15/2002 RCA ROUTING SHEET INITIATING DEPARTMENT: Public Works SUBJECT: AUTHORIZE CONTRACT FOR DEVELOPMENT'OF STORMWATER UTILITY COUNCIL MEETING DATE: . May 6, 2002 Ordinance (w/exhibits & legislative draft if applicable Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable .Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorne Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance Approved by the City Attome) Not Applicable Financial Impact Statement Unbudget, over $5,000) Not Applicable Bonds If applicable) Not Applicable Staff Report If applicable) Not Applicable Commission, Board or Committee Report If applicable) -Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable :EXPLANATION FORMS INGATTACHMENTS; RCA Author:L. Daily x 5599