Oahu Storm Water Utility Project City and County of Honolulu Stakeholder Advisory Group Meeting #3 January 13, 2020 <?msam 2020 2019 1 August 19 Utility Formation Process Introductions, charge & protocols DFM introductions & role State enabling legislation “What, Why, How & When” of a Stormwater Utility - Definition of service - Cost of service - Stormwater fees - Rate structures - Adoption process Working principles Community engagement 5 May 18 Credits & Incentives Approaches for credits & incentives On-site and centralized project opportunities Ensuring equity in the stormwater utility program Collaboration & leveraging opportunities Community outreach update & feedback 2 October 21 W December 9 Utility Program Needs Program needs: Challenges & opportunities for the stormwater program *WEBINAR* Cost of service study update Fee/Rate Structures Impervious cover distribution by property/customer type Draft Definition of Service & working principles Community engagement update, community outreach plan Community engagement update 6 July 13 Implementation Planning Draft implementation plan Program, rate & credit phasing City adoption process Community engagement for the adoption process Fee analysis/ rate structure process 3 January 13 Fee, Revenue & Impacts Draft fee levels & rate structure options Level of service & investment supported by rate options Implications by ratepayer type: Largest ratepayers; public facilities; tax-exempt landowners; disadvantaged areas 4 March 16 Program Priorities: Matching projected revenue to program & investments Identify fee level & rate structure option to be refined Evaluate priority of projects, investments Community update & feedback Community engagement update 7 September 14 Program Refinement Status & feedback from the city adoption process Program responsibilities & timing for implementation Priorities for early investments 8 October 5 Moving Ahead Final Implementation Plan Stakeholder Advisory Group Process outcomes summary Community engagement update Stakeholder Advisory Group Meeting Map Next steps for the Stakeholder Advisory Group Update 9/11/2019 Today’s Agenda S#*/ S(A#. ]O^^G]O(^'9E @/:+-E/'"#2'J-$#2,".:/'K:-6"4 ]O(^G]O(0 K7/#2"'*H/%H3/B'"#2'\/B'_3#2/%'=",/%3":4 ]O(0G]O)0 Community Engagement Updates 4:35-4:50 Revised Core Values 4:50-5:50 Storm Water Utility Building Blocks 5:50-6:10 Brainstorm on Likely Community Questions 6:10-6:20 Public Comment WOQ^GWOQ0 N%/H3/B'-D'="%+6'(W5'Q^Q^'=//,3#7'K7/#2" 6:25-6:30 @%"9GF9 ! -.$/%'0&&'1&2&34'$5#'6$%&'7%.89%8.&':"%;<54' ! 1&2&3'&5%'78""<.%&#'?@'6$%&':"%;<54 ! =>"3;9$%;<54'?@'6$%&"$@&.'A@"&B'1$.C&4%'6$%&"$@&.4D'E8?3;9'0$9;3;%;&4D'A$FG HF&>"%'1$5#,"L/6-:2/%4 _%/"LD"4,'<-%$E4'D-%'3#,/%/4,'7%-$94' b/c7c'9%-9/%,&'E"#"7/%45'D"3,6' +-EE$#3,3/45'.$43#/44'3#,/%/4,45' 7-:D'+-$%4/'E"#"7/%45'/,+cd =32G';*;5' E"U-%':"#2'6-:2/%4d I3,&'8'>,",/'7-H/%#E/#,' "7/#+3/4 Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." (0 eNews (hark CONTACT Learn Participate Contact Stakeholder Advisory Group Get Lgpciates! Enter your email aciclress! SIGN UP What does a Storm Water Utility mean for Oahu? There are more than 2,000 storm water utilities across 39 US. states, and more are being formed each year. They play an important role in the communities they serve, focusing on managing impacts of storm water runoff on the community and the environment. The City and County of Honolulu has begun a community engagement process to review options for establishing a storm water utility for Oahu. 1 I A: ll] 1 ?10101 Participate Contact Stakeholder Advisory Group OAHU Want De?ning the Challenge Rain millions of gallons flushes down rooftops, streets and other hard surfaces collecting dirt, debris, trash, and more pollutants along the way. Then, as storm water, it makes its way into ditches, drains, and canals that flow into streams and the ocean. (.ONTAU LEARN Urbanization and an increase of hard surfaces that don't absorb water means much of this water runs off More RESOUFCGS the mountains and land, rather than percolating back into the soil, robbing our island?s groundwater . su of re lenishment. Th's excess runoff can create local'zed draina efloodin issues. Frequently Asked Questions pp Identifying a Solution In 2015, recognizing that ?If Hawaii does not begin planning ahead, ensuring the is/ands?supp/y of fresh water in the future may cost the public agreat Hawaii's State Legislature adopted a bill that allows counties to set up storm water utilities. Contact Stakeholder Advisory Group Community Engagement The City and County of Honolulu has begun a community engagement process to review options for establishing a storm water utility for Oahu. The Citys Department of Facility Maintenance Storm Water Quality Branch is overseeing this process. A stakeholder advisory group, which is meeting through 2020, will help balance community priorities with financial impacts to ensure that a storm water utility will be responsive to Oahu's needs. The wider community also will have many opportunities to participate in Upcommg shaping the storm water utility program as the planning process continues. The City will be holding many different outreach events to inform community members about the study and collect their input on considerations for the study. Completed Storm Water Utility O?ahu Community Engagement Program ?Alp-A Dan ll?l?Ab i Kellen; a w-I Home Learn Participate Stakeholder Advisory Group .94?? ?fto - "4?4 .I OAHU I Want TO Have a question about Storm Water Utility Oahu or the process? Fill out the form below. Department of Facility Maintenance City and County of Honolulu 1000 Uluohia St., Ste 215 LEARN lu'. ., Kapolei, HI 96707-2040 More Resources Your Name (required) Your Email (required) . 3C- Home Learn Participate Contact STAKEHOLDER ADVISORY GROUP OAHU I Want The City Department of Facility Maintenance has convened a Stakeholder Advisory Group to provide input on issues and priorities to consider in the study and how to balance the diversity of needs, communities, and environments on Oahu. The Stakeholder Advisory Group composition reflects a cross section of communities, interests, and perspectives. Members represent Oahu neighborhoods, local organizations, and interest groups. The City Department of Facility Maintenance will draw upon recommendations of the Stakeholder Advisory Group and present findings to City Council for consideration. LEARN cox-mgr The City will be holding many outreach events to inform community members about the study and collect their input. Stakeholder Advisory Group Meetings Monday, January 13, 2019 Download Amanda If 11 1r News You Can Use A STORM WATER UTILITY FOR WHY WE NEED STORM WATER MANAGEMENT Storm water runs off impervious roofs. roads and parking lots. up pollutants 6 0 6 6 6 ?ows UNTREATED lnto storm dralns, streams, and our ocean. . *9 Trash Dirt Bacteria HOW DOES STORM WATER AFFECT Storm water management affects water quality, fresh water supply, ?ooding and pollution. RUNOFF FROM 1" OF RAINFALL MEANS: 750 27,000 GALLONS GALLONS of water of water LOST LOST for each house for each acre of (1.200 sq. ft. roof) parking lot An estimated 3,700 KEI KI POOLS worth of TRASH entered the City storm water system in 2018 GARBAGE TRUCKS . worth of DIRT AND DEBRIS per year cleared by City street sweepers to prevent pollution FACES BIG CHALLENGES AND DOES NOT HAVE DEDICATED FUNDING TO MEET THEM. What does a Storm Water Utility mean for O?ahu? 39 CLEAN HEALTHY 8: SAFE COMMUNITY SHARED WATER ENVIRONMENT INVOLVEMENT RESPONSIBILITY Capturing rainwater Protection mauka to makai Deciding how funds are spent Everyone pays a fair share Improved water quality Clear stream channels Setting priorities Everyone can get credits Pollution prevention Protecting ocean waters Meeting community needs Everyone makes a difference n\ ?x I t. Clean ?later Healthy lit Safe Environn'tent Community Involvement Responsibility Learn More it: Be Part of the Solution LEARN MORE: .urg 22 “Grabber” Video ! *$%'B",/%'4$99:&'34'46%3#L3#7'2$/',-'3E9/%H3-$4'4$%D"+/4',6",'+"$4/'E-%/'4,-%E'B",/%',-'%$#',-' ,6/'-+/"#c ! >,-%E'B",/%'/#,/%3#7',6/'-+/"#'+"%%3/4'9-::$,"#,4'"#2',%"465'"#2'6$%,4'-$%'/#H3%-#E/#,c ! K'4,-%E'B",/%'$,3:3,&'34'9%-9-4/2',-O ! improve water supply, ocean health, and cleaner environment. Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." ! change how we pay for storm water Q) ! create more equitable, dedicated funding for storm water management mm:_m> ECU Short Version: Values Card What does a Storm Water Utility mean for O?ahu? e: CLEAN HEALTHY SAFE COMMUNITY SHARED WATER ENVIRONMENT INVOLVEMENT RESPONSIBILITY Capturing rainwater Protection mauka to makai Deciding how funds are spent Everyone pays a fairshare Improved water quality Clear stream channels Setting priorities Everyone can get credits Pollution prevention Protecting ocean waters Meeting community needs Everyone makes a difference I Print Web Versions What does a Storm Water Utility mean for O?ahu? CLEAN HEALTHY SAFE COMMUNITY SHARED WATER ENVIRONMENT INVOLVEMENT RESPONSIBILITY Capturing rainwater Protection mauka to makai Deciding how funds are spent Everyone pays a fairshare Improved water quality Clear stream channels Setting priorities Everyone can get credits Pollution prevention Protecting ocean waters Meeting community needs Everyone makes a difference . What does a Storm Water Utility mean for O?ahu? CLEAN WATER Capturing rainwater Improved water quality Pollution prevention 9% HEALTHY 8r SAFE ENVIRONMENT Protection mauka to makai Clear stream channels Protecting ocean waters COMMUNITY INVOLVEMENT Deciding how funds are spent Setting priorities Meeting community needs SHARED RESPONSIBILITY Everyone pays a fair share Everyone can get credits Everyone makes a difference Moving Ahead with Values: 82&7'(.)O'';-/4',6/'46-%,GD-%E'H":$/4'+"%2'+-#H/&',6/'.%-"2'-$,:3#/4' -D'B6",'&-$'"4'4,"L/6-:2/%4'4$99-%,'"4',6/'?6-BC'"#2'?B6&C'-D'"' >,-%E'@",/%'F,3:3,&` 9..:()*+;,&<0O''<-%',6/'?R-#7'e/%43-#C'f I%/",/':-#7/%'4,",/E/#,'3#' ="&'f !$#/'-#O' 1. 2. 3. 4. Values Objectives for different program areas Benchmarks for performance Accountability Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." Qg Storm Water Utility Building Blocks ! Parcel Impervious Area Distribution by Size ! Rate Structure Options Evaluated ! Program Costs Evaluated ! Summary of Fees and Financial Analysis ! Customer Impacts Impervious Area (IA) Data: - Impervious Area (roads, other paved) from 2013 satellite data - Buildings from Dept. of Planning & Permitting; current & updated continuously - IA data covers 2/3 of island and 90% of developed areas Buildings Other Paved Surfaces Roads and Railroads - Buildings - Other Paved Surfaces - Roads and Railroads Saws; [3:31 1521ij 639313, mm 833 Jam warewnwm?sy 33" was 1284 LLJ vagamw .J LEM an: cue; - Buildings - Other Paved Surfaces - Roads and Railroads 8031x513: Barf]u Dilgl'?kr? 1'1"an ?Gxauaya, Eammr 61309121 Minx, CNES/??dbus USDA 'Ugjw'??i?g?w r' m4 m- u'rla Usafi Why is Impervious Area a more equitable basis for funding a storm water program? Percent of Parcels where IA > 300 Fed. Govt. / Military, 0.01% Institutional, 0.06% Remnant Lands, 0.08% Percent IA Commercial / Hotel, 0.10% Fed. Govt. / Military, 0.11% Remnant Lands, 0.11% Utilities, 0.11% Fed. Govt., 0.20% Not Classified, 0.21% Residential, 43.83% Institutional, 0.35% Commercial / Hotel, 0.43% Not Classified, 0.53% Utilities, 0.67% Restricted Land , 0.93% Public Roads, 1.00% Industrial, 0.26% Faith Based, 1.01% Faith Based, 0.34% Restricted Land , 0.48% Government, 0.61% Government, 1.21% Residential, 85.51% Agriculture, 1.61% Vacant Land, 1.74% Agriculture, 0.61% Industrial, 1.98% Muni. Govt., 1.05% Muni. Govt., 4.08% Public Roads, 1.34% Vacant Land, 2.26% Commercial, 9.27% Commercial, 2.96% State Govt., 3.83% Residential parcels represent 85% of prospective customers (i.e. entities that would receive a SWU bill)… Fed. Govt., 16.95% State Govt., 14.21% …but residential uses make up only 44% of the impervious cover, and would pay 44% of the program cost. Establishing “tiers” of parcels that pay the same fee based on IA 33 45,000 100% 40,000 90% 35,000 80% 90 percent of all parcels/properties on Oahu have impervious area less than ~7,000 square feet 30,000 70% 60% 25,000 Biggest Bills! 20,000 Median Parcel Impervious Area is ~3,900 square feet 15,000 40% 30% 10,000 20% 5,000 0 50% Cum. Pct. of Number of Properties Number of Parcels Balance is equity vs. complexity – how many tiers? 10% 0% 1,000 2,000 Number of Parcels 3,000 4,000 5,000 6,000 Cum. Pct. 7,000 8,000 9,000 10,000 11,000 12,000 13,000 Impervious Area (sq. ft.) 14,000 15,000 16,000 17,000 18,000 19,000 >20,000 33 34 45,000 Frequency Distribution of Parcel Impervious Area 100% 40,000 90% 30,000 25,000 20,000 15,000 10,000 Fed. Govt. / Military Remnant Lands Commercial Institutional Commercial / Hotel Not Classified Utilities Restricted Land Public Roads Faith Based Government Agriculture Vacant Land Industrial Muni. Govt. State Govt. Fed. Govt. Residential 80% Cum. Pct. of Properties Number of Parcels 35,000 70% 60% 50% 40% 30% Cum. Pct. of Number of Properties 20% 5,000 0 10% 0% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 >20,000 Impervious Area (square feet) 34 35 Frequency Distribution of Parcel Impervious Area for Residential, Commercial, and Hotel 40,000 100% 90% 35,000 25,000 20,000 80% Commercial / Hotel 70% Residential 60% Cum. Pct. of Number of Properties 50% Cum. Pct. of Properties Number of Parcels 30,000 Commercial 40% 15,000 30% 10,000 20% 5,000 0 10% 0% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 >20,000 Impervious Area (square feet) 35 36 1,800 100% 1,600 90% 1,400 80% Commercial Cum. Pct. of Properties Number of Parcels Frequency Distribution of Parcel Impervious Area for Commercial and Hotel 70% 1,200 Commercial / Hotel 1,000 60% Cum. Pct. of Number of Properties 50% 800 40% 600 30% 400 20% 200 10% 0 0% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 >20,000 Impervious Area (square feet) 36 37 2,500 Frequency Distribution of Parcel Impervious Area for Federal, State, and Local Government 100% 90% 1,500 Fed. Govt. / Military Remnant Lands 80% Restricted Land Public Roads 70% Government Muni. Govt. 60% State Govt. Fed. Govt. Cum. Pct. of Properties Number of Parcels 2,000 50% Cum. Pct. of Number of Properties 1,000 40% NOTE: Public Roads are assumed to be exempt from the fee, as common land used by all rate payers 500 30% 20% 10% 0 0% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 Impervious Area (square feet) 14,000 15,000 16,000 17,000 18,000 19,000 >20,000 37 38 Frequency Distribution of Parcel Impervious Area for FaithBased and Institutional Uses 350 100% 90% 300 Number of Parcels 250 200 Cum. Pct. of Properties 80% Institutional 70% Faith Based 60% Cum. Pct. of Number of Properties 50% 150 40% 100 30% 20% 50 10% 0 0% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 >20,000 Impervious Area (square feet) 38 Storm Water Utility Building Blocks ! Parcel Impervious Area Distribution by Size ! Rate Structure Options Evaluated ! Program Costs Evaluated ! Summary of Fees and Financial Analysis ! Customer Impacts What defines a rate structure? ! 1,m4'"'B"&',-'43E9:3D&',6/'3E9/%H3-$4'"%/"'2","'4-',6",'0#*#$+)& A)(A/)"#/0&A+%&"F/&0+*/&D//5'B63:/'23DD/%/#,'43X/'9%-9/%,3/4'9"&'3#' 9%-9-%,3-#',-'3E9/%H3-$4'"%/" ! All properties treated the same, e.g. no difference between residential, commercial, nonprofit, government ! All properties of similar size pay the same fee ! J",/'4,%$+,$%/'Y+$+,./0&/U7#"%&Z#"F&+3*#,#0")+"#?/&.(0"O ! More tiers = more equity, ! More tiers = more administrative costs, especially if underlying estimates of IA per parcel is not of sufficient accuracy to put all properties correctly in the right tier. Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." ]^ What defines a rate structure? ! l6/',-,":'#$E./%'-D',3/%45'%/D:/+,3#7'%"#7/'-D'3E9/%H3-$4'"%/"' 1='(.)7+>&+&?<@2<'&0A++B+'(&/7+<)0+C+'(&/7 ! A-B'23DD/%/#,':"#2'$4/4'B3,6',6/'4"E/'3E9/%H3-$4'"%/"'"%/',%/",/2 All land uses are treated equally in the two options ! A-B'"%/'.3::4'?/Y$":3X/2C'"+%-44'/"+6',3/%`'' G F4/'"'?E$:,39:3/%C'D-%'/"+6',3/%n VT"E9:/O''N%-9/%,&'BP)Q^^'><'-D'1K'o'#/376.-%3#7'9%-9/%,&'BP)M^^'><'-D'1K p'K<%L'".<"&.%;&4'"$@4'%L&'A;&.'M'.$%& NO83%;"3;&.4'9$5'?&'2$.;&#P'#&%$;3';5'%L&'L$5#<8%4'$5#'%$?3&4 Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." ]( 42 Two Rate Structure Options Considered Reflect distribution of impervious area by parcel Option 1: 8 tiers with increments of 1,000 sf: * Tier 1 minimum of 300 sf, ** Tiers 1-7 pay flat fee *** Tier 8 (>7,000 sf) pay based on actual IA. 40,000 Number of Parcels 35,000 30,000 1 2 3 4 5 6 7 90% 80% 70% 8 60% 25,000 Option 2: 4 tiers with increments based on equal number of parcels per Tier * Tier minimum of 300 sf, ** Tiers 1-3 pay flat fee *** Tier 4 (>5,200 sf) pay based on actual IA. 20,000 15,000 10,000 50% 40% 30% 20% 1 5,000 0 100% 2 3 4 Cum. Pct. of Number of Properties 45,000 10% 0% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 Impervious Area (sq. ft.) 14,000 15,000 16,000 17,000 18,000 19,000 >20,000 Number of Parcels Cum. Pct. 42 Two Rate Structure Options Considered: How Many Tiers Reflects Balance of Equity vs. Complexity ! QA"#(,&IO'Z'l3/%4 ! Advantage: Highest Equity (More Tiers = Fee more representative of impervious area (IA) ); ! Disadvantage: More Complexity (More Tiers means more opportunity for errors/appeals because property put in wrong Tier) ! 8 tiers with increments of 1,000 sf, ! first tier min of 300 sf ! upper tier >7,000 sf pay based on actual IA. ! QA"#(,&JO']'l3/%4 ! Advantage: Less Equity (Fewer Tiers = Fee less representative of IA); ! Disadvantage: Less Complexity (Fewer Tiers means less opportunity for errors/appeals because each tier has wider range of IA so less chance a property put in wrong Tier) ! 4 tiers with increments based on quartiles (25% of all parcels in each tier), ! first tier min of 300 sf, ! upper tier >5,200 sf pay based on actual IA. Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." ]) Rate Structure Option #1: 8 tiers with increments of 1,000 SF > 7000 SF pay based on actual IA - - Option 1: 1,000 sq. ft. increments, base unit = 1,000 sq. ft., rate $ / 1,000 sq. ft., rates by tiers apply multiplier, IA>7,000 pays based on actual IA. Tier # 1 2 3 4 5 6 7 8 Tier Impervious Area Range 300 to 1,000 sq. ft. 1,001 to 2,000 sq. ft. 2,001 to 3,000 sq. ft. 3,001 to 4,000 sq. ft. 4,001 to 5,000 sq. ft. 5,001 to 6,000 sq. ft. 6,001 to 7,000 sq. ft. Multiplier X1 X2 X3 X4 X5 X6 X7 Number of Parcels per Tier [1] 2,055 10,681 31,042 38,182 31,167 18,176 8,752 >7,000 sq. ft. actual IA 18,181 Total [1] does not include properties identified as ‘Public Road' and 'Vacant Land' for stormwater class purposes. [2] For first seven tiers, number of parcels times multiplier. For the eighth tier, based on actual IA divvied by 1,000 sq. ft. 158,236 Number of Billing Units [2] 2,055 21,362 93,126 152,728 155,835 109,056 61,264 948,295 1,543,721 Rate Structure Option #2: - 4 tiers - Tier boundaries based on quartiles = same number of customers in each tier - >5,200 SF pay based on actual IA Option 2: Quartiles increments, 1 - 25th, 26th - 50th, 50th - 75th, >75th. Tier 1 pays based on multiplier of 1. Multiplier for Tiers 2 and 3 based on mid-point of tier ranges, rounded. Tier 4 pays based on actual IA. Tier # 1 2 3 4 Tier Impervious Area Range 300 to 2,800 sq. ft. 2,801 to 3,900 sq. ft. 3,901 to 5,200 sq. ft. Multiplier X1 X3 X5 Number of Parcels per Tier [1] 36,197 42,104 39,538 > 5,200 sq. ft. actual IA 40,397 Total [1] does not include properties identified as 'Exempt' and 'Vacant Land' for stormwater class purposes. [2] For first seven tiers, number of parcels times multiplier. For the eighth tier, based on actual IA divided by 1,000 sq. ft. 158,236 Number of Billing Units [2] 36,197 126,312 197,690 1,079,547 1,439,746 Storm Water Utility Building Blocks ! Parcel Impervious Area Distribution by Size ! Rate Structure Options Evaluated ! Program Costs Evaluated ! Summary of Fees and Financial Analysis ! Customer Impacts Recap: @$91.6 million/ year in current Storm Water capital & operating costs are funded by Highway Fund + general fund TOTAL COST OF SERVICE ~$91.6 Million FY20 PRELIMINARY BUDGET $100,000,000 $90,000,000 $80,000,000 $70,000,000 CORE NPDES PROGRAM ~$65.4 Million $46.6M RELATED DFM SALARY & OPERATING ~$26 Million $60,000,000 $50,000,000 $46.6M $40,000,000 $30,000,000 Annual Average Salaries= ~$27.4 million $45M $20,000,000 $10,000,000 $18.8M $0 DFM - Storm Water Quality Branch & Chief Engineer DFM Salary DPP Salary DFM - Road Maintenance, Automotive Services, Building & Electrical Maintenance DDC Salary OPERATING Annual Average Capital = ~$46.6 million • Drainage structure repair $18.4 million • City facility retrofits $13.2 million • Erosional Areas $5.3 million • WQ Retrofits $5.2 million • Trash Reduction $2.4 million • TMDL Retrofits $2.04 million TOTAL CAPITAL Annual Average Other Operating = ~$17.7 million TOTAL COST OF SERVICE: $91.6 MILLION '#$$/3& 'S:0 k+.+,"& 'S:0 S("+$& _/D#,/3& 'S:0 Qg^ (]( ](( tQ)'E3::3-# t)0cZ'E3::3-# ;/9,'-D'N:"##3#7' 8'N/%E3,,3#7 QW ^ QW tQcg'E3::3-# tQcg'E3::3-# ;/9,c'-D';/437#'8' I-#4,%$+,3-# () (Z )( t(c0'E3::3-# tQc0'E3::3-# w)^M w(0M w]WZ eJN&*#$$#(, eLI&E#$$#(, Recap, Who Does What: Storm Water Labor ;<= mO Pm Nm l-,": -+%)($$&Z#"F& k+.+,.#/0& '#$$/3 J-$76:&'(P)'-D'"::' 9-43,3-#4'"%/'H"+"#, KL K^ S("+$& C7))/,"& -+%)($$ K^ JL Im IP t(0' E3::3-#' 7"9 IN I^ I^ N M N ^ [%//#' 1#D%"4,%$+,$%/' ="3#,/#"#+/ >@G JVRKlV;' lJK>A >,%/"E' ="3#,/#"#+/ ;%"3#"7/' >&4,/E' I:/"#3#7 N%-7%"E' ="#"7/ E/#, K$,-E-,3H/ P'VY$39c' ="3#,c I-#4,%$+,3-#' 1#49/+,3-# ;%"3#"7/' >&4,/E' J/9"3% I-#4,%$+,3-#' 8';/H/:c' N:"#'J/H3/B >,%//,' >B//93#7 I-EEP' 1#2$4,%3":' 1#49/+,3-#4 1::3+3,' ;34+6"%7/' ;/,/+,3-# =-#3,-%3#7 V2$+",3-#' 8'*$,%/"+6 I3,&' 1#2$4,%3":' <"+3:3,3/4 Fl1R1lv'&-$70&()&E#,70o&aJb ! Combination of Basic Compliance option plus increased service in areas of high community interest: Green infrastructure, drainage system cleaning, stream maintenance, trash, water quality monitoring & inspections ! More conservative assumptions about how quickly staff positions can be filled ! **Aggressive use of partnerships/MOAs across several areas Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." 0] MOA Carry aver funds LEVEL OF SERVICE 1 INITIAL SIX YEAR PERIOD FOR STORM WATER FEE . Current {all Current (with Vaca ncies) positions filled) L051 FTEs UnitIAnnuaI Cast FY21 FY22 FY23 $0 $0 $373,703 $575,000 $523,703 $3,499,390 $3,329,595 $3,329,595 Salaries - 514/0 3. DRM Admin $2,941,170 $3,499,390 32.9 $3,333,545 $3,499,390ll $3,333,545Ill $3,333,545 Salaries - in-haase Grants n/a n/a added $196,050 1 $0 $196,050" $196,050 7' rating $0 $200,000 Grant Writing 3: Management Support added $50,000 1 $0 $50,000 $50,000 Grants 3 Fund Leveraging - cash match n/a n/a added $150,000 1 $0 $150,000 $150,000 $5,530,373 $6,139,093 $6,272,743 $3,499,390 $4,029,595 $4,029,595 'l 'l 'l 'l $331,333 $524,539 $524,539 3.3 $524,539 $524,539 $524,539 rating $310,000 $310,000 $310,000 $0 $100,000 - - . $35,000 $35, 000 $35, 000 I $35,000 $35, 000 $65,000 a] eSt?lC [01"qu $1,134,539 $524,569 $624,569 'l 'l $393,231 3.0 $393,231 $393,231 $393,231 5 re ?65 6 ets ere $200,000 $200,000 $200,000 $200,000 33 $1,093,231 $1,093,231 $1,093,231 $1,093,231 'l 'l 'l $2,153,314 17.7 $2,153,314 $2,153,314 $2,153,314 $2,153,314 onco 5? 0 $200,000 $200,000 $200,000" $200,000 $200,000 $2,353,314 $2,356,314 $2,356,314 $2,356,314 II II II Assumptions ?11,6 $2,340,333 23.3 $3,044,329 $2,520,533 $2,340,333 $2,340,333 $2,250,000 $2,250,000 $2,250,000 $2,250,000 $2,250,000 $2,250,000 $2,250,000 $2,250,000 Zeame omecture so - so so so $5,090,333 $4,770,563 $5,090,333 $5,090,333 II II $414,233 $395,312 $395,312 10.0 $395,312 $414,233 $395,312 Ah? An! An" Ann Ann Important Caveats & Qualifiers ! \/3,6/%'-9,3-#'9%/+34/:&'E",+6/4':/H/:4' 3#',6/'I-4,'-D'>/%H3+/'4,$2& ! I-4,4'"%/'/4,3E",/2'"##$":'"H/%"7/' +-4,4'-H/%',6/'D3%4,'W'&/"%4'-D',6/'$,3:3,&' b@F'P3E"7/%&5'+%/23,'"2E3#34,%",3-#' K2E3#34,%",3-# tQcM'E3: t]'E3::3-#S'<$::'4,"DD3#7'o']'7%"#,4'B%3,3#7P"2E3#'4,"DD'o' V<7,+4<'V,+<@@.V<'(.)+U./+@&?&/<*()*+&Z'&/)<@+*/<)'7 N$.:3+'V2$+",3-#'8'*$,%/"+6 wt('E3: wt(c('E3::3-#S'<$::'4,"DD3#7'o'7V,..@+R+V.442)('5+=7 wt('E3: t(cM'E3::3-#S'<$::'4,"DD3#7',-'"+63/H/'+-E9:3"#+/P'E//,'#//2 nnI3,&'=>]'<"+3:3,3/4 wt(c)'E3: t(cW'E3::3-#S'<$::'4,"DD3#7',-'"+63/H/'+-E9:3"#+/PE//,'#//2 l=;R4'b+-#,%"+,'B-%Ld wt(cWg'E3: t(cWg'E3::3-#S'="3#,"3#'+$%%/#,'9%-7%"E l%"3#3#7 t0^^L t0^^LS'="3#,"3#'+$%%/#,'9%-7%"E K44/,'="#"7/E/#,'>-D,B"%/ t0^^L t0^^LS'="3#,"3#'+$%%/#,'9%-7%"E nn;%"3#"7/'>&4,/E'J/9"3% K$,-E-,3H/'8'VY$39E/#,'="3#,/#"#+/ tQcg'E3: K::'*,6/%'VY$39E/#, t(cQ'E3: I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>'D-%' 3::$4,%",3-#'-#:& Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." tQcg'E3::3-#S'=3#3E":'23DD/%/#+/'./,B//#'9%-7%"E4 0g t(cQ'E3::3-#S'=3#3E":'23DD/%/#+/'./,B//#'9%-7%"E4 Program Elements with differences: -)(1)+*&:$/*/," 1#2$4,%3":PI-EE/%+3":'>3,/'8' N-4,G I-#4,%$+,3-#'1#49/+,3-#4 C7))/," tZW^L ;+0#.&C(*A$#+,./&W VQ6&I I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& ;/""/)&-)(1)+*&W VQ6&J&q&()&` wt('E3::3-# <$::'4,"DD3#7'o't0^L'"7'3#49/+,3-#' 9%-7%"E'4$99-%, wt(c)'E3::3-# <$::'4,"DD3#7'o'K#M":+<*+72==./'+[+K!"":+ V27'.4&/+<77(7'<)V&\+.4X207=&/7.) I-#4,%$+,3-#'>3,/'1#49/+,3-#4 t]cW'E3: t0'E3::3-#S'D3::'H"+"#+3/4'.&'&4,/E'1#49/+,3-#'8' I:/"#3#7 t(c)'E3: t]c)'E3::3-#S'D$::'4,"DD3#7'bQT'+$%%/#,dS' 3#+%/"4/'H"+,-%5'2349-4":'+-4,4' 9%-9-%,3-#"::&',-'#/B'+%/B4' >,%//,'>B//93#7 wtQcgg' E3: t]cM0'E3::3-#S'D$::'4,"DD3#7'.&'v/"%')S' +-E9:/,/'QG&/"%5't0'E3::3-#'0/<()@()& ()7=&V'(.)+=/.*/<4+()+Q/ #+R+Q/ Q',-' 9%3-%3,3X/'+:/"#3#7'8'%/9"3%4'v% )G-# Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." tQcgg'E3::3-#S'E"3#,"3#'+$%%/#,':/H/:S' tQcZ'E3::3-#S'D$::'4,"DD3#7'.&'v/"%')S'%-$,/' E-%/'3#G6-$4/'4,"DD5':/44'+-#,%"+,/2 -9,3E3X",3-#'4,$2&'3#'v% Q Program Elements with differences: (part deux) -)(1)+*&:$/*/," >,%/"E'="3#,/#"#+/ l%"46 [%//#'1#D%"4,%$+,$%/' b[1d C7))/," I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& ;+0#.&C(*A$#+,./&W VQ6&I ;/""/)&-)(1)+*&W VQ6&J&q&()&` wt]cZ' E3: t]cZ'E3::3-#S'E"3#,"3#'+$%%/#,'4,"DD3#75' 2349-4":'8'/Y$39E/#,'+-4,4S'4,".:/' D$#23#7':3L/:&',-'3E9%-H/'+-#434,/#+&'-D' +:/"#3#7 eI^cL&*#$$#(,S'I'<'&/7+V.)7&/?<'(.) wt0c]' E3: tgcM'E3::3-#S'D$::'4,"DD3#7'-D'="&-%m4' I:/"#'l/"E5';J='9-43,3-#45'./:-#73#74' 4,-%"7/'.%"#+6S'3#+%/"4/2'2349-4":' +-4,4'BP'E-%/'4,"DD3#7 tgcg'E3::3-#S'4"E/'7-":4'"4'R*>'('.$,'"44$E/4' :-#7/%',3E/',-'%"E9'$9',-'D$::'4,"DD3#7 wt]cgM' E3: tgcW0'E3::3-#S'63%/'Q'[1'9%-7%"E'E"#"7/%4'o'D$::' tZ'E3::3-#S'63%/'Q'[1'9%-7%"E'E"#"7/%4' 4,"DD3#7'.&'v/"%'0S't#N#!M+4(@@(.)+U./+=./:U./V&+ +/%,3D3+",3-#4'8'+-EE$#3,&'7%"#,4 0&?&@.=4&)'+R+2/X<)+U./&7'/5 Program Scenarios Summary I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& _VllVJ'NJ*[JK=O' R*>'Q'o'-%'f t0M'E3::3-#P&/"%'+"93,": t0g'E3::3-#P&/"%'-9/%",3#7 t((W'E3::3-#P&/"%',-,": _K>1I'I*=NR1K\IV' R*>'(' t]g'E3::3-#P&/"%'+"93,": t0)'E3::3-#P&/"%'-9/%",3#7 t((^'E3::3-#P&/"%',-,": K44$E/4'D$::'4,"DD'63%/2'3#' v%4 ('8'Q N:"##/2'I1N'34'D$#2/25'.$,' #-'"44/,'%/#/B":P' %/9:"+/E/#, [1'9%-7%"E'/T9"#43-#' "+63/H/2',6%-$76'63%3#75' B3,6'4-E/'7%"#,4P' 3#+/#,3H/4 ! 0h'I%/23,4 ! 0h'#-#G9"&E/#,'.$DD/% ! J",/4'4,".:/'D-%'W'&/"%4 ! N"&G"4G&-$G7-'I1N'b#-'2/.,d'D-%'W'&%4 ! 1#+%/"4/2'3#49/+,3-#4 ! V2$+",3-#'9"%,#/%4639'D$#23#7 ! <$::'4,"DD3#7'-D'+%3,3+":'D$#+,3-#4'b9:"#' %/H3/B5'2%"3#"7/'4&4,/E'%/9"3%5'I3,&'D"+3:4d ! [%"#,4'B%3,3#7'8'+"46'E",+6'"::-+",3-# ! I1N'3#+:$2/4'"44/,'%/#/B": ! K224'+$4,-E/%'4/%H3+/G D-+$4/2'3#49/+,-%4 ! ;%"3#"7/'4&4,/E'3#49/+,3-#' 8'%34L'"#":&434 ! N"%,#/%4639'."4/2'[15' %/4,-%",3-#'8'/2$+",3-#'8' 9%-7%"E4 ! =-%/'[1'7%"#,4 ! =-%/'7%"#,4':/H/%"73#7'8' E"#"7/E/#, ! >:-B/%'63%3#7'3#'4-E/'"%/"4 Storm Water Utility Building Blocks ! Parcel Impervious Area Distribution by Size ! Rate Structure Options Evaluated ! Program Costs Evaluated ! Summary of Fees and Financial Analysis ! Customer Impacts What are the basic assumptions in our rate model? I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& (c lB-'%",/'4,%$+,$%/4'/H":$",/2 ! Option 1: 8 tiers/>7,000 SF based on actual IA ! Option 2: 4 tiers/>5,200 SF based on actual IA Qc lB-'N%-7%"E'*9,3-#4'/H":$",/2'bR/H/:'-D'>/%H3+/d ! “Basic Compliance” (LOS 1) ! “Better Program” (LOS 2 +/-) ! Both include projected 6-year O&M and Capital Program Costs )c K44$E/'4,-%E'B",/%'%",/4'+6"%7/2',-'+$4,-E/%4'%/E"3#''''''' 9<54%$5%'/<.'/;.4%'S'/;49$3'@&$.4'b4"E/'+&+:/'"4'I3,&'8'I-$#,&' "99%-H/2'I1N4d Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." WQ Assumptions for Rate Model per Discussions with DFM (continued) ! l"%7/,'-9/%",3#7'D$#2'.":"#+/'-D'M^'2"&4'-D'*8='+-4,4'k't(0=''''' bI3,&'%/Y$3%/E/#,d ! K44$E/'>@F'2-/4'#-,'344$/'3,4'-B#'%/H/#$/'.-#24'D-%'(4, W'&/"%4 ! Initial stormwater utility rate (constant for 6 years) generates sufficient revenues to cash-fund CIP ! Need a track record (2-3 years) of demonstrated stormwater utility revenues before issuing bonds ! K::-B"#+/4'D-%'%/H/#$/'%/2$+,3-#O' ! Credit program = reduce revenue by 5% of program costs ! Collection rate = 95% (5% non-payment) Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." W) Program Costs LOS 1 – “Basic Compliance” !"#$%&'(&)*$+',-,.$/0!$1 @6",'34',634'9%-7%"E` G 3#+%/"4/2'4,"DD3#7'8' 4$DD3+3/#,''%/4-$%+/4'D-%' +-E9:3"#+/ @6",'2-/4'3,'E/"#'D-%',6/' +-EE$#3,&'8';<=`'f =3#3E":'+6"#7/4'3#',6/' "+,3H3,&'4//#',-2"&5'.$,' 4-E/'"223,3-#":'9%-7%"E' /:/E/#,4 !'$" +,--,./01.213.--450 !'#" !'"" !&" !%" !$" !#" !" #"## #"#( #"#$ #"#) #"#% #"#* 6,074-18945 023&)-45( +),6$7859$+:% ;3<-$!3&=4>3 I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& ?'-)@$%&'(&)*$+',-, Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." W] I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& Scenario 1 -- LOS 1 Rates: 8 Tiers: 6.58 / 1,000 square feet 4 Tiers: $ 7.00 / 1,000 square feet &'()*+,'-)%.'/0/'1%2,'-%3*(4'50167%89&%:%%,4;%%<%'/-)= '()*+,-(.*&/(010(2&3-(.&4+)5(61278&9:'&;&&-5<&&%&(0.*= !* !) !"#$%& !"#$%& !"#$%& !"#$%& !"#$%& !"#$%& !( !' !& !% !$ !# !" !) !+,-.+#/"""+012+342 !*+,-*#."""*/01*231 !( !"#$$% !"#$$% !"#$$% !"#$$% !"#$$% !"#$$% $"$$ $"$% $"$& $"$' $"$( $"$) !' !& !% !$ !# $"$$ $"$% $"$& $"$' $"$( $"$) !" 560789+:-8. 45/678*9,7- !&>.*&;?@@@&=A#&B(# !%>-)%:?$$$%=@#%A'# Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." W0 Program Option 1 – Basic Compliance Fees by Tier (illustrative fees for top tier (#8, left and #4, right) for properties with 8,000, 9,000, and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b)5Z^^'4YcD,d'B-$:2'9"&' eJNcKK&4&*(,"F&#,&"F/&P&S#/)&%",/'4,%$+,$%/'"#2' NJVR1=1\KJv';JKl1=KlV>' Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." eKMc^^&4&*(,"F&#,&+&L&S#/)&%",/'4,%$+,$%/ D-%'3::$4,%",3-#'-#:& WW '$.$$$ /0123%*4 I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& Program Cost Scenario 2 -- LOS 2 +/!"#$%&'(&)*$+',-,.$/0!$1$234 !'%" !'$" +,--,./01.213.--450 !'#" !'"" !&" !%" !$" !#" !" #"## #"#( #"#$ #"#) #"#% #"#* 6,074-18945 056&)-78( +),9$:;8<$+=% >6?-$!6&@7A6 B'-)C$%&'(&)*$+',-, Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." Wg I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& Scenario 2 -- LOS 2 +/- Rates: 8 Tiers: $ 6.92 / 1,000 square feet 4 Tiers: $ 7.42 / 1,000 square feet '()*+,-(.*&/(010(2&3-(.&4+)5(61278&9:'&%&;<= -5>&&?&(0.*@ '()*+,-(.*&/(010(2&3-(.&4+)5(61278&9:'&%&;<= -5>&&$&(0.*? !* !* !) !"#$%& !"#$%& !"#$%& !"#$%& !"#$%& !"#$%& !"#$%& !"#$%& !"#$%& !"#$%& $"$$ $"$% $"$& $"$' $"$( $"$) !( !' !& !% !$ !# !" !) !"#$%& !+,-.+#/"""+012+342 !+,-.+#/"""+012+342 !( !"#$%& !' !& !% !$ !# $"$$ $"$% $"$& $"$' 560789+:-8. !&A.*&BCDDD&@E#&F(# $"$( $"$) !" 560789+:-8. !&@.*&ABCCC&?D#&E(# Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." WZ Program Option 2 – Better Program (illustrative fees for top tier (#8, left and #4, right) for properties with 8,000, 9,000, and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b)5Z^^'4YcD,d'B-$:2'9"&' NJVR1=1\KJv';JKl1=KlV>' eJOcNO&4&*(,"F&#,&"F/&P&S#/)&%",/'4,%$+,$%/'"#2' Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." t)gc^Z'9/%'E-#,6'3#'"']'l3/%'%",/'4,%$+,$%/ D-%'3::$4,%",3-#'-#:& WM How does this stack up with other storm water utilities? *Monthly rates for typical residential property in 2018 *Western Kentucky University SWU Survey ;/,%-3,5'=1 @3#4,-#G>":/E5'\I =/+L:/#.$%7'I-$#,&' bI6"%:-,,/5'\Id >/",,:/5'@K l"+-E"5'@K _-$:2/%5'I* =3443-#5'y> N63:"2/:963"5'NK e3%73#3"'_/"+65'eK V$7/#/5'*J =3##/"9-:345'=\ I6",,"#--7"5'l\ t(Q0c^^' tWMcQ0' t]McZ0' t)Wc^^' tQ)cQ0' t(WcZQ' t(Mc^^' t()c]Z' t(QcMM' t(QcQg' t((c]Q' tMcW^' IIA'>,-%EB",/%'N-443.:/' l1=KlV>' D-%'3::$4,%",3-#'-#:& Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." g^ No Two Stormwater Utilities are Alike! What makes utility budgets & fees different? ! @6",'9%-7%"E'/:/E/#,4'"%/'D$#2/2'b=>]'H4c'I>*5'B6",'9%-7%"E' /:/E/#,4'"%/'+6"%7/2',-',6/'D//d ! K99:3+".:/'9/%E3,'+-#23,3-#4'8'"44-+3",/2'+-4,4 ! R-+":'9%3-%3,3/4'8'B3::3#7#/44',-'9"& ! I$4,-E/%'."4/'b43X/'-D'4/%H3+/'"%/"5'#$E./%'-D'+$4,-E/%4d ! K7/'-D'3#D%"4,%$+,$%/'8'"44-+3",/2'#//24 Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." g( Fund balance grows for LOS1 over 6 years due to high initial program costs, and the need to maintain a constant fee for 6 years I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." gQ Fund balance increases and then drops for LOS 2 +/- because of additional capital spending over the 6 year period I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." g) Storm Water Utility Building Blocks ! Parcel Impervious Area Distribution by Size ! Rate Structure Options Evaluated ! Program Costs Evaluated ! Summary of Fees and Financial Analysis ! Customer Impacts Small Residential Residential Sample 1 (TMK#=112002138) Monthly Stormwater Charge Rate Option 1 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Rate Option 2 Dedicated Tax $17 $17 $14 $13 $7 $7 Tier 2 Tier 2 Tier 1 LOS1 Stormwater Class Tier 1 LOS2 +/Residential Parcel Area (sq. ft.) 1,741 Total IA (sq. ft.) 1,368 Rate Option 1 Tier 2 Rate Option 2 Net Taxable Property Value Tier 1 $366,000 Costs are PRELIMINARY DRAFT ESTIMATES for illustration only J/432/#,3":5'=/23$E'>3X/ l=y ((Q^^Q^]0 >,-%EB",/%'I:"44 N"%+/:'K%/"'b4Yc'D,cd l-,":'1K'b4Yc'D,cd J",/'*9,3-#'( J",/'*9,3-#'Q \/,'l"T".:/'N%-9/%,&'e":$/ J/432/#,3": 05^]g' ]5Q((' l3/%'0 l3/%') t(5QQ]5(^^' I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& Residential Apartment Building, Highest Tier (Fee based on actual IA) Residential Sample 5 (TMK#=111065039) Rate Option 1 Monthly Stormwater Charge $1,200 Rate Option 2 Dedicated Tax $1,109 $1,105 $1,000 $800 $600 $400 $223 $237 $234 $251 Tier 8 Tier 4 Tier 8 Tier 4 TMK 111065039 $200 $0 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value LOS2 +/- Residential 71,586 33,896 Tier 8 Tier 4 $23,670,400 Costs are PRELIMINARY DRAFT ESTIMATES for illustration only Residential (Rural Agriculture), Highest Tier (Fee based on actual IA) Agriculture Sample 1 (TMK#=187021024) Rate Option 1 Rate Option 2 Dedicated Tax Monthly Stormwater Charge $450 $400 $363 $386 $382 $409 $350 $300 $250 $200 $150 $100 $50 $0 Tier 8 Tier 4 $37 Tier 8 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value Tier 4 $37 LOS2 +/- Agriculture 217,598 55,200 Tier 8 Tier 4 $790,600 Costs are PRELIMINARY DRAFT ESTIMATES for illustration only TMK 187021024 WA WU FAM LTD PTNRSHP Medium Size CommercialNAKAGA or Commercial/Hotel, (TMK#=121002035) Monthly Stormwater Charge $80 Rate Option 1 Rate Option 2 $73 Dedicated Tax $73 $70 $60 $50 $40 $33 $35 $35 $37 Tier 5 Tier 3 Tier 5 Tier 3 $30 $20 $10 $0 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value Commercial 4,008 4,008 Tier 5 Tier 3 $1,562,000 LOS2 +/- Costs are PRELIMINARY DRAFT ESTIMATES for illustration only TMK 121002035 Commercial or Commercial/Hotel, Highest Tier (Fee based IA) RFRI PROPER TIESon LLCactual (TMK#=111071001) Rate Option 1 Monthly Stormwater Charge $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $1,583 $1,684 Rate Option 2 $1,575 Dedicated Tax $1,664 $1,784 $1,582 TMK 111071001 Tier 8 Tier 4 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value Commercial 325,734 240,519 Tier 8 Tier 4 $33,752,100 Tier 8 Tier 4 LOS2 +/- Costs are PRELIMINARY DRAFT ESTIMATES for illustration only Industrial, Highest Tier (Fee based on actual IA) TANAKAPROPERTIESLLC(TMK#=112007001) Rate Option 1 Rate Option 2 Dedicated Tax Monthly Stormwater Charge $800 $700 $600 $606 $645 $643 $637 $683 $646 $500 $400 $300 $200 $100 $0 Tier 8 Tier 8 Tier 4 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value Tier 4 LOS2 +/- Commercial 95,680 92,087 Tier 8 Tier 4 $13,784,000 Costs are PRELIMINARY DRAFT ESTIMATES for illustration only TMK 112007001 <"3,6'_"4/2'"#2'1#4,3,$,3-#":5'=/23$E'>3X/ l=y (QW^(0^]W >,-%EB",/%'I:"44 N"%+/:'K%/"'b4Yc'D,cd l-,":'1K'b4Yc'D,cd J",/'*9,3-#'( J",/'*9,3-#'Q <"3,6'_"4/2 ]5Q^^' )5]0]' l3/%'] l3/%'Q \/,'l"T".:/'N%-9/%,&'e":$/ t^' I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& Faith Based and Institutional, Highest Tier (Fee based on actual IA) ST MARK 'SEPIS COPAL CHURCH (TMK#=131017044) Rate Option 1 Rate Option 2 Dedicated Tax Monthly Stormwater Charge $250 $200 $172 $183 $181 $194 $150 $100 $50 $0 Tier 8 Tier 4 $0 LOS1 Tier 8 Tier 4 $0 LOS2 +/- Stormwater Class Parcel Area (sq. ft.) Faith Based 37,488 Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value 26,123 Tier 8 Tier 4 $0 Costs are PRELIMINARY DRAFT ESTIMATES for illustration only TMK 131017044 Federal or Military Facility, Highest Tier (Fee based on actual IA) UNITED STATESOFAMERICA (TMK#=115041042) Monthly Stormwater Charge Rate Option 1 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $8,111 Rate Option 2 $8,625 Dedicated Tax $8,522 $9,138 TMK 115041042 Tier 8 Tier 4 $0 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value Fed. Govt. 1,781,467 1,232,077 Tier 8 Tier 4 $0 Tier 8 Tier 4 $0 LOS2 +/- Costs are PRELIMINARY DRAFT ESTIMATES for illustration only =$#3+39":'[-H/%#E/#,5'A376/4,'l3/%'b,-%EB",/%'I:"44 N"%+/:'K%/"'b4Yc'D,cd l-,":'1K'b4Yc'D,cd J",/'*9,3-#'( J",/'*9,3-#'Q =$#3c'[-H,c ))Q5^ZZ' (]W50]M' l3/%'Z l3/%'] \/,'l"T".:/'N%-9/%,&'e":$/ t^' I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& State Government, Highest Tier (Fee based on actual IA) STATEOFHAWAII (TMK#=197025004) Rate Option 1 Rate Option 2 Dedicated Tax Monthly Stormwater Charge $7,000 $6,000 $5,336 $5,674 $5,606 $6,011 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Tier 8 Tier 4 $0 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value State Govt. 3,750,759 810,519 Tier 8 Tier 4 $0 Tier 8 Tier 4 $0 LOS2 +/- Costs are PRELIMINARY DRAFT ESTIMATES for illustration only TMK 197025004 State Government, Highest Tier (Fee based on actual IA) SOF H DOT AIRPORTSDIV (TMK#=111003001) Rate Option 1 Rate Option 2 Monthly Stormwater Charge $350,000 $300,000 Dedicated Tax $317,979 $296,542 $300,115 $282,251 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Tier 8 Tier 4 $0 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value State Govt. 108,111,850 42,873,593 Tier 8 Tier 4 $0 Tier 8 Tier 4 $0 LOS2 +/- Costs are PRELIMINARY DRAFT ESTIMATES for illustration only TMK 111003001 Brainstorm on Community Questions 35:0 0033?: Next Meeting: March 16, 2020 Webinar: January 22nd, 2020 4:00 PM 2020 2019 1 August 19 Utility Formation Process Introductions, charge & protocols DFM introductions & role State enabling legislation “What, Why, How & When” of a Stormwater Utility - Definition of service - Cost of service - Stormwater fees - Rate structures - Adoption process Working principles Community engagement 5 May 18 Credits & Incentives Approaches for credits & incentives On-site and centralized project opportunities Ensuring equity in the stormwater utility program Collaboration & leveraging opportunities Community outreach update & feedback 2 October 21 W December 9 Utility Program Needs Program needs: Challenges & opportunities for the stormwater program *WEBINAR* Cost of service study update Fee/Rate Structures Impervious cover distribution by property/customer type Draft Definition of Service & working principles Community engagement update, community outreach plan Community engagement update 6 July 13 Implementation Planning Draft implementation plan Program, rate & credit phasing City adoption process Community engagement for the adoption process Fee analysis/ rate structure process 3 January 13 Fee, Revenue & Impacts Draft fee levels & rate structure options Level of service & investment supported by rate options Implications by ratepayer type: Largest ratepayers; public facilities; tax-exempt landowners; disadvantaged areas 4 March 16 Program Priorities: Matching projected revenue to program & investments Identify fee level & rate structure option to be refined Evaluate priority of projects, investments Community engagement update & feedback Community engagement update 7 September 14 Program Refinement Status & feedback from the city adoption process Program responsibilities & timing for implementation Priorities for early investments 8 October 5 Moving Ahead Final Implementation Plan Stakeholder Advisory Group Process outcomes summary Community engagement update Stakeholder Advisory Group Meeting Map Next steps for the Stakeholder Advisory Group Update 9/11/2019 MAHALO! Happy New Year Oahu Storm Water Utility Project City and County of Honolulu Stakeholder Advisory Group Meeting #3 January 13, 2020 mmeEmm Estimated Dedicated Tax on Net Taxable Property Value Required to Generate Revenue Equivalent to Stormwater Program Costs K44/44/2'e":$/2'-D'N%-9/%,3/4'bD%-E'/%H3+/ J/432/#,3":'K l-,": 9/#1F"/3&S+n&5+"/& -/)&eI>^^^ e":$/'-D'\/,'l"T".:/' l"T'J",/'9/%' N%-9/%,&'bl6-$4"#24' t(5^^^' -D';-::"%4d t)c0^' t(0(5)^Z5W))' t(QcM^' t()5^W^5^QZ' t(Qc]^' t(Z50Q05gZ]' t(Qc]^' tM50Mg5]g(' t0cg^' t(5^]Q5g^M' tZc0^' t0^5Z^Q' t0cg^' t0Q)5)(g' t^c^^' t)^' t]c0^' t(g5]W(5(])' tQ((50WM5M(g' l"T/4'R/H3/2' b;-::"%4d t0QM50Z^5Q(W' t(WZ5]g]5)W(' tQQM5g(M5gQQ' t((M5^^Z5W]^' t05M])5]](' t])(5Z(g' tQ5MZQ5M^g' t^' tgZ50g05(]]' t(5()]5g(W5Q]g' ;/23+",/2' >,-%EB",/%'l"T' J",/'9/%'t(5^^^' bR*>(d t^c0W^^' t^c0W^^' t^c0W^^' t^c0W^^' t^c0W^^' t^c0W^^' t^c0W^^' t^c0W^^' t^c0W^^' ;/23+",/2' >,-%EB",/%' ;/23+",/2' ;/23+",/2' l"T'J",/'9/%' >,-%EB",/%' t(5^^^' l"T'bR*>QoPGd' >,-%EB",/%'l"T' b;-::"%4d bR*>QoPGd bR*>(d'b;-::"%4d tZ]5g)]5ZZQ' t^c0WQ]' tZ05(^(5gW0' tg5)()5gMQ' t^c0WQ]' tg5)]05]0M' t(^5)g]5WM^' t^c0WQ]' t(^5](M5W(^' t05)g]5g(]' t^c0WQ]' t05)Mg5MZ0' t0Z)5M)(' t^c0WQ]' t0ZW5]0M' tQZ5]0^' t^c0WQ]' tQZ50g)' tQM)5^W0' t^c0WQ]' tQM]5))]' t^' t^c0WQ]' t^' tM5ggZ5]gW' t^c0WQ]' tM5ZQ^5Z(0' t((Z5]ZQ5^^^' t((Z5MM05^^^' eMcKN I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& Q+F7&6"()*&9+"/)&!"#$#"%&-)(R/." M] Small Residential Residential Sample 2 (TMK#=112003064) Rate Option 1 Rate Option 2 Dedicated Tax Monthly Stormwater Charge $40 $34 $34 $35 $30 $28 $26 $25 $22 $21 $20 $15 $10 $5 $0 Tier 4 Tier 4 Tier 2 LOS1 Tier 2 LOS2 +/- Stormwater Class Parcel Area (sq. ft.) Residential 5,002 Total IA (sq. ft.) Rate Option 1 3,702 Tier 4 Rate Option 2 Net Taxable Property Value Tier 2 $727,200 Costs are PRELIMINARY DRAFT ESTIMATES for illustration only TMK 112003064 Medium Sized Residential DCSHONOLULU LLC(TMK#=131010045) Rate Option 1 Monthly Stormwater Charge $40 $35 $33 Rate Option 2 $35 Dedicated Tax $35 $37 $30 $25 $20 $15 $10 $5 $0 TMK 131010045 Tier 5 Tier 3 $0 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value Tier 5 Tier 3 $0 LOS2 +/- Residential 9,374 4,408 Tier 5 Tier 3 $0 Costs are PRELIMINARY DRAFT ESTIMATES for illustration only Medium Sized Residential Residential Sample 4 (TMK#=131010064) Rate Option 1 Rate Option 2 Dedicated Tax Monthly Stormwater Charge $70 $58 $58 $60 $50 $40 $33 $35 $35 Tier 5 Tier 3 Tier 5 $37 $30 $20 $10 $0 LOS1 Property Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value Residential Sample 4 Residential 4,800 4,800 Tier 5 Tier 3 $1,235,700 Tier 3 LOS2 +/- Costs are PRELIMINARY DRAFT ESTIMATES for illustration only TMK 131010064 Commercial or Commercial/Hotel, Medium Size SBI HAWAII PROPERTYONEINC(TMK#=126016057) Rate Option 1 Dedicated Tax $425 $423 $450 Monthly Stormwater Charge Rate Option 2 $400 $350 $300 $250 $200 $150 $100 $50 $0 $33 Tier 5 $35 Tier 3 $37 Tier 3 $35 Tier 5 LOS1 TMK 126016057 LOS2 +/- Stormwater Class Parcel Area (sq. ft.) Commercial / Hotel 4,748 Total IA (sq. ft.) Rate Option 1 4,365 Tier 5 Rate Option 2 Net Taxable Property Value Tier 3 $9,058,500 Costs are PRELIMINARY DRAFT ESTIMATES for illustration only Commercial or Commercial/Hotel, Highest Tier (Fee based on actual IA) MCDONALD'SRESTAURANTS(TMK#=112022032) Rate Option 1 Monthly Stormwater Charge $300 Dedicated Tax $273 $271 $250 $200 Rate Option 2 $197 $209 $207 Tier 4 Tier 8 $222 $150 $100 $50 $0 Tier 8 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value Tier 4 LOS2 +/- Commercial 34,115 29,902 Tier 8 Tier 4 $5,816,400 Costs are PRELIMINARY DRAFT ESTIMATES for illustration only TMK 112022032 1#2$4,%3":5'=/23$E'>3X/ l=y ((Q^^)^(^M >,-%EB",/%'I:"44 N"%+/:'K%/"'b4Yc'D,cd l-,":'1K'b4Yc'D,cd J",/'*9,3-#'( J",/'*9,3-#'Q \/,'l"T".:/'N%-9/%,&'e":$/ 1#2$4,%3": ]5MZW' ]50Z)' l3/%'0 l3/%') t)5^M]50^^' I-4,4'"%/ NJVR1=1\KJv';JKl1=KlV>' D-%'3::$4,%",3-#'-#:& Faith Based or Institutional – Largest Tier (Fee based on actual IA) ROMAN CATHOLICCHURCH OF HI (TMK#=111071003) Rate Option 1 Monthly Stormwater Charge $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $772 Tier 8 Rate Option 2 $821 Tier 4 $811 $0 LOS1 Stormwater Class Parcel Area (sq. ft.) Total IA (sq. ft.) Rate Option 1 Rate Option 2 Net Taxable Property Value Dedicated Tax Tier 8 $870 Tier 4 TMK 111071003 $0 LOS2 +/Faith Based 142,671 117,299 Tier 8 Tier 4 $0 Costs are PRELIMINARY DRAFT ESTIMATES for illustration only Nontaxable Municipal Government, Medium-Sized Facility CITYAND COUNTYOFHONOLULU (TMK#=121002024) Rate Option 1 Monthly Stormwater Charge $30 Rate Option 2 $28 $26 $25 Dedicated Tax $22 $21 $20 $15 $10 $5 $0 Tier 4 Tier 2 $0 LOS1 Tier 4 Tier 2 $0 TMK 121002024 LOS2 +/- Stormwater Class Parcel Area (sq. ft.) Muni. Govt. 4,004 Total IA (sq. ft.) Rate Option 1 3,480 Tier 4 Rate Option 2 Net Taxable Property Value Tier 2 $0 Nontaxable Costs are PRELIMINARY DRAFT ESTIMATES for illustration only