Post on 17-Dec-2015
Stormwater Utility Fee Advisory / Technical Committee Meeting
March 14, 20114 – 5:30 p.m.
March 14, 2011Meeting Agenda
1. Minutes (February 14, 2011)2. Member Inquiries / Staff Follow-up3. Stormwater Management – Revenue Plan4. Public Participation5. Next Meeting (April 11, 2011)6. Adjourn
Stormwater Utility FeeAdvisory Technical Committee Meeting
March 14, 2011
Agenda Item 3Revenue Plan
Rate Structure
Background InformationRevenue Plan defines how the costs of the
Expenditure Plan will be allocatedRate structure contains the specifics of the plan
Program Costs (from Expenditure Plan)
- Other Revenues (various fees, interest, etc)
+ Revenue Reductions (bad debt, credits, etc)
= Revenue Needed from Fee
÷ Rate Base (total number of billing units)
= Rate
Stormwater Utility FeeAdvisory Technical Committee Meeting
March 14, 2011
Agenda Item 3Rate StructureBase Structure
Impacts of Development on Runoff
Impact of development on runoff peakRational Formula
Q = C i A
where Q = discharge rateC = runoff coefficienti = rainfall intensityA = drainage area
“C” increases with increasing intensity of development
(imperviousness)
Impact of development on runoff volumeSimple Method
V = P Rv A / 12
where V = runoff volumeP = rainfall depth
A = drainage areaRv = runoff coefficient
= 0.05 + 0.009 ii = impervious percentage
Impact of development on runoff qualitySimple Method
L = V EMCL = (P Rv A / 12) EMC
where L = pollutant loadV = runoff volume EMC = event mean concentrationP = rainfall depthRv = runoff coefficient
= 0.05 + 0.009 ii = impervious percentage
Imperviousness as a rate method Imperviousness is utilized in hydrology as the
measuring stick for intensity of development
Multiple ways to include imperviousness in fee calculations: Straight imperviousness (actual or incremental blocks) Equivalent Runoff Units, ERUs (single family flat rate) Impervious plus gross area Impervious plus pervious area Intensity of development
Each method has pros and cons
Rate Bases
Imperviousness is the only physical parameter per parcel
Direct correlation to runoff and thus to demand
Easily measured and verified
Impervious Area
Rate Bases Compound rate structure
Imperviousness for development
Gross area component for entire property
Applies some costs to undeveloped properties
Can set minimum threshold for billing
Impervious plus Gross Area
Rate Bases
Based on the runoff potential of impervious and pervious areas
Directly compute billing units per parcel
Can apply program costs to undeveloped properties
Impervious Plus Pervious Area(Effective Hydraulic Area)
Rate Bases
IOD Land Use
Parking
Commercial
Institutional
Multi-Family
Single Family - small lot
Single Family - large lot
Vacant
Utilizes the average runoff potential by land use Gross area Land use IOD factor
Directly compute billing units per parcel
Typically not accurate enough for billing
Incre
asi
ng
In
ten
sity
Intensity of Development
How A Fee Is Calculated
Significant aspects of rate bases Single family residential
Typically flat rates
Some use tiers to add equity
Some (very few) measure every parcel
Determines (typically) the base rate unit
Other parcels
Measure impervious area and compute billing units
How A Fee Is Calculated
Non-single family = 10,000 square feet impervious= 3.33 ERUs - credit
Impervious Only(Equivalent Residential Unit,
ERU)
Quarter acre lots1 ERU = 3,000 square
feet of impervious area
Single family residential= 3,000 sq ft impervious= 1 ERU
How A Fee Is Calculated
Non-single family = 10,000 square feet impervious= 0.218 + 0.002 – credit= 0.220 – credit
Impervious Plus Pervious Area
(Effective Hydraulic Area, EHA)
Quarter acre lotsEHA = 95% of impervious area
+ 10% of pervious area
Single family residential= 3,000 sq ft impervious= 0.065 + 0.018 units= 0.083 units
Rate Base DiscussionDo you have questions / comments about any of the rate base concepts? What did you like / not like about the various methods and their approaches?
Impervious only Impervious plus gross areaImpervious plus pervious areaIntensity of development
Stormwater Utility FeeAdvisory Technical Committee Meeting
March 14, 2011
Agenda Item 3Rate Structure
Residential Rate Simplifiers
Imperviousness in ChampaignImperviousness is a significant part of all
stormwater rate structures
For the initial phase of the project an estimate of total imperviousness was needed:Identified primary land usesDetermined the statistically significant sample
sizes for each land use Digitized the appropriate number of samples
for eachEstimated rate base size based on the product
of gross area and measured intensity of development by land use
Imperviousness by Land UseLand Use
No. of Parcels Gross Area
Impervious %
Impervious Area
Single Family 18,050 167,040,210 62,777,900
Duplex 317 2,804,024 1,102,526
Multi-Family 824 19,471,798 51% 12,250,300
Condo 333 2,281,497 66% 1,514,686
Industrial 62 7,347,754 68% 4,973,695
Commercial 1,811 108,411,645 71% 76,636,192
Churches 149 6,449,735 53% 3,437,064
Government 757 65,589,695 32% 20,785,374
University 160 24,825,203 39% 9,785,206
Misc 204 25,202,975 32% 1,337,392
Agriculture 79 71,417,617 1% 857,011
Total Area 22,746 500,842,152 195,457,346
Approximate Areas in Square Feet
”Bundling” ImperviousnessIssue: How do you bill the proposed $2.25M (or
$3.21M) annual program cost? Billing per square foot of impervious area (195M) results
in a fee of $0.0115 / sq ft / yr (not modeled) and thousands of units to be billed per ratepayer
Other utilities “bundle” the units of serviceElectric utilities measure in kilowatt hours Water utilities sell water in thousands of gallons
Imperviousness is typically “bundled” in one of two ways:In increments of 500 or 1000 square feetIn “equivalent” units, such as based on the average
imperviousness on a single family residential property
Nu
mb
ers
are
Ap
pro
xim
ate
”Bundling” ImperviousnessLand Use
Impervious Area*
500 Sq Ft Units
1000 Sq Ft Units
3478 Sq Ft Units
Single Family 62,777,900 125,556 62,778 18,050
Duplex 1,102,526 2,205 1,103 317
Multi-Family 12,250,300 24,501 12,250 3,522
Condo 1,514,686 3,029 1,515 436
Industrial 4,973,695 9,947 4,974 1,430
Commercial 76,636,192 153,272 76,636 22,035
Churches 3,437,064 6,874 3,437 988
Government 20,785,374 41,571 20,785 5,976
University 9,785,206 19,570 9,785 2,816
Misc 1,337,392 2,675 1,337 385
Agriculture 857,011 1,714 857 246
Total Rate Base 195,457,346 390,915 195,457 56,201
*Approximate Area in Square Feet
”Bundling” ImperviousnessTherefore, $0.0115 / sq ft / yr could be billed as:
$ 5.75 / 500 sq ft / yr $0.44 / 500 sq ft / mo$11.50 / 1000 sq ft / yr $0.88 / 1000 sq ft / mo$40.00 / 3478 sq ft / yr $3.33 / 3478 sq ft / mo
The number of billing units for single family residential properties under a flat rate method would be:7.0 units at 500 sq ft bundles3.5 units at 1000 sq ft bundles1 unit at 3478 sq ft bundles, or
1 equivalent residential unit (ERU)
Nu
mb
ers
are
Ap
pro
xim
ate
Single Family Imperviousness
Residential Rate SimplifierIs there a need to further refine the billing within the single family residential properties?Why some communities do add detail;
decreased fees for less imperviousnessincreased fees for more imperviousness
Illinois communities with tiered single family rates:Bloomington, Moline, Rock Island
Residential Rate Simplifier
Is there a need to further refine the billing within the single family residential properties?Why some communities do not add detail;
increased cost of master account file creationincreased cost of master account file maintenanceincreased uncertainty in account calculationvariations within flat rate typically low (± $1.00/mo)
Illinois communities with one rate for all single family:Morton, Normal, Highland Park
Questions?