ESTES VALLEY STORMWATER MANAGEMENT PROGRAM

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1 ESTES VALLEY STORMWATER MANAGEMENT PROGRAM Phase I. Stormwater Master Plan Phase II. Stormwater Utility Feasibility Study Board of Realtors Meeting May 3, 2018 Stormwater Master Plan Summary Stormwater Utility Feasibility Study Draft Fee Summary 5/3/2018 1

2 Presentation Outline Purpose and Need Phase I. Stormwater Master Plan Phase II. Stormwater Utility Feasibility Study Next Steps Input and Questions 5/3/2018 2

3 Why is Public Works Pursuing a Stormwater Utility? 1. After the 2013 flood, the Federal Emergency Management Agency launched the standard flood disaster response effort to update the Flood Insurance Rate Maps for the Estes Valley. The existing maps were based on floodplain hydrology and mapping from 1977, 1985, and Example: the adopted peak 1% Probability annual discharge in Fall River was 680 cubic feet per second (cfs). 2. Updated hydrology was completed for the Town by Wright Water Engineers in Example: the modeled peak 1% Probability discharge in Fall River is 1860 cfs (nearly 3x the previous value). The 2013 flood discharge in Fall River was estimated to be about 2000 cfs. 3. The proposed new FEMA floodplains will be much larger, causing new challenges for redevelopment and increased flood insurance premiums for many parcel owners. The size of these expanded floodplains (and the associated negative impacts) can be reduced by building the proposed new stormwater infrastructure. 5/3/2018 3

4 Why is Public Works Pursuing a Stormwater Utility? 4. In 2016 the Town Board established the following infrastructure objective: Explore the need for a stormwater master plan and the feasibility of a stormwater utility (including floodplain considerations). 5. In 2017 the Town Board identified the following infrastructure objective: Consider implementation of the Stormwater Master Plan and formation of a stormwater utility. 6. The Board of Trustees included the following three objectives in the 2018 Strategic Plan: Pursue funding for flood mitigation projects. Implement recommendations of the Stormwater Master Plan. Prioritize and pursue projects and funding to reduce flood risk and flood insurance costs for the property owners and businesses of the Estes Valley. 5/3/2018 4

5 Guiding Principle for the Proposed Stormwater Utility Past and future floods damage transportation and utility infrastructure that is essential for community safety and wellbeing. Substantial private property damage also occurs. These repetitive risks of adverse economic impacts are a community problem which should be addressed by all community members. Our local elected officials and staff (Town of Estes Park and Larimer County) should lead the effort to mitigate these flood damage risks. 5/3/2018 5

6 Purpose of a Stormwater Master Plan 1. Identify Stormwater Infrastructure Problems 2. Develop Conceptual Solutions to Improve Drainage Issues 3. Develop Concept Level Costs for the Potential Improvements 4. Provide an Implementation Plan based on a Prioritization of Identified Improvements 5. Provide the Basis for Funding Capital Improvements Program (solicit grants/loans/etc. & form the basis for fees/assessments/tax/etc.) 6. Provide a Flexible Document to Guide Program Implementation and Integrate New Development within the Watersheds and the Community 5/3/2018 6

7 PHASE I. STORMWATER MASTER DRAINAGE PLAN 5/3/2018 7

8 Focus of the EV SMP Five Major Drainage Basins Dry Gulch Basin Black Canyon Basin Fall River Basin Big Thompson River Basin Fish Creek Basin Development Code Boundary 8471 parcels (5191 in Town of Estes Park and 3280 in unincorporated Larimer County) 5/3/2018 8

9 Facility Evaluations Results PUBLIC FACILITIES over MAJOR DRAINAGEWAYS 57 Total Road and Pedestrian Bridges and Culverts ~23 Capacity Deficient (Mostly over Fall River and Big Thompson Rivers) ~6 Additional Facilities in Poor Condition (Half over Dry Gulch) STREAM AND CHANNEL CAPACITY The lower reaches of Black Canyon, Fall River, & Big Thompson River generally have insufficient capacity to carry the 1% annual probability flood flow. 5/3/2018 9

10 Facility Evaluations Results PUBLIC FACILITIES ON SECONDARY DRAINAGEWAYS & LOCAL DRAINAGE ISSUES Flooding Issues Generally: Small, Localized, and Impact Few Properties Lack of Defined Conveyance Path Limited Capacity in Streets and/or Roadside Swales Conflicts with Existing Buildings and/or Property 5/3/

11 Facility Evaluations Results LOCAL DRAINAGE ISSUES Based on the Known Local Flooding Issues a GIS Screening Tool was Developed to Estimate Number of Potential Local Flooding Issues Screening Estimated the Potential for Approximately 600 Similar Small/Localized Drainage Issues within the EVDC Boundary 5/3/

12 Potential Improvements Primary Focus Life/Health Safety On Major Drainageways Dry Gulch, Black Canyon, Fall River, Upper Big Thompson, Fish Creek On Arterials US 34, US 36, SH 7, SH 66, Devils Gulch Rd, Marys Lake Rd, Fish Ck. Rd., etc. On Critical Facilities & Access Hospital Routes and Police/Town Hall 5/3/

13 Potential Improvements Secondary Focus On Local Roads On Property Damage along Major Drainageways On Secondary Drainageways Known and Repetitive Problem Areas Potential Improvements Minor Focus On Property Damage along Secondary/Tertiary Drainageways On Tertiary Drainageways Minimal Focus on Private: Roads/Driveways, Culverts, Bridges, etc. 5/3/

14 Conceptual Improvement Maps (Appendix D) 5/3/

15 Improvement Plan - Updated 5/3/

16 PHASE II. STORMWATER UTILITY FEASIBILITY STUDY 5/3/

17 Feasibility of a Stormwater Utility Separate but related issues Financing and financial impacts Time frame for implementation Organizational structure

18 Financing and Financial Impacts Total Estimated Cost of Master Plan Capital Improvements: $79.0 million (2017 dollars increases to $128 million for 30 year implementation) Priority 1 Projects: $44.2 million Priority 2 Projects: $23.2 million Priority 3 Projects: $11.6 million

19 Time Frame for Implementation The time frame can be flexible. 30 years is proposed to keep user fees low. Driven by the community s desire to increase public safety by reducing flood risks; not regulatory driven The ability to pay for capital costs will play a major role in project completion Figure: One possible expenditure pattern based on the Master Plan

20 Financing Implementation Who pays and how? Owners of all parcels in the Development Code Boundary (Town and County), with fee consideration for the different types of land use Charges are proposed to be in the form of monthly bills, like water and sewer For new development, an impact fee is proposed to buy-in to the existing system Impervious area, such as the areas covered by roofs and concrete, is the basis for assessing charges. Downtown businesses tend to have relatively more impervious area than residences, and are expected to receive the greatest direct benefit from the proposed improvements.

21 Financing Implementation Assumed impervious area percentages of parcel for cost modeling and fee estimating are: 0% vacant parcel 5% Rural Estate zoning 10% Accommodations, Low Density 20% Estate zoning 30% Single Family zoning 45% Multi-family zoning 50% Accommodations, Highway 60% Industrial zoning 90% Downtown Commercial zoning Monthly user fee consists of three parts: monthly service fee ($2/mo), operation & maintenance fee (formula), and facility expansion fee (formula) Formula = Parcel area (sf) x impervious factor x (O&M rate of $ CEF rate of $0.0016) A calculation limit of 10 acres is proposed for any single parcel to keep fees reasonable.

22 Cost of the Master Plan to Property Owners A detailed, pay-as-you-go financial model for a stormwater entity over the 30 year planning period was developed to assess impacts Operation & Maintenance and inflation costs are included in the model Implementing the SMP within a year time frame will require debt financing or major grants, and high user fees Avoiding debt requires additional years to fund and build projects, and requires discipline in establishing and managing capital reserves

23 Estimated O&M Costs Costs are uncertain due to nature of the assets and how future capital R&R costs are recovered The preliminary analysis assumes $430,000 per year, increasing with inflation Approx. $200k for O&M and initial capital replacement, $50k for Admin, $180k for personnel Other Stormwater utilities Town of Windsor: $350,000 range without capital R&R; personnel costs are relatively low Lafayette: $750,000 range, without capital R&R; personnel costs approx. $190,000 Box Elder Stormwater Authority: $450,000/year, mostly contracted

24 Potential Fee Structure Based on a Range of Possible Stormwater Financing Plan Implementation Scenarios Varying implementation periods, primarily years Varying financing sources: user charges, sales tax revenues, grants, loans User charges were adjusted to meet desired implementation period and availability of other funds 9 scenarios were analyzed

25 Summary of Implementation Scenarios Focus on Scenario No.s 1A, 3A, 5A 5/3/

26 Scenario 1A Financed with 30 years of User Charges Only Most of the High Priority Projects constructed between 2024 through 2036 Entire 30 years is needed to complete the projects in appropriate sequence Total Cost of Plan: $128 million; Revenues Generated: $149 million Potential Monthly Bills for 2018, 2023, and Single Family Estate (1 acre parcel) Single Family Residential (1/4 acre parcel) Accommodations (2 acre parcel) $15 $29 $35 $7 $12 $15 $79 $153 $183 5/3/

27 Scenario 3A Financed with 30-years of User Charges and 0.4% Local Sales Tax Beginning in 2024 Construction of most high priority projects constructed 2024 through 2035 Projects could be completed in less than 30 years, but more than 20 years Total Cost of Plan: $128 million; Revenues Generated: $177 million Potential Monthly Bills for 2018, 2023, and 2028 Single Family Estate (1 acre parcel) Single Family Residential (1/4 acre parcel) Accommodations (2 acre parcel) $15 $26 $26 $7 $11 $11 $79 $138 $138 5/3/

28 Scenario 5A Financed by 30-years of User Charges, 0.4% Local Sales Tax beginning in 2024, and Grant Assistance for Major Projects Most High Priority Projects Constructed between 2023 through 2032 Projects could be completed in less than 30 years, but more than 20 years Total Cost of Plan: $102 million; Revenues Generated: $163 million Potential monthly bills for 2018, 2023, and 2028 Single Family Estate (1 acre parcel) Single Family Residential (1/4 acre parcel) Accommodations (2 acre parcel) $15 $20 $20 $7 $9 $9 $79 $108 $108 5/3/

29 Property Owner Impact: Regional Comparison Figure: Proposed Initial EVDC Stormwater Rates - Sample of Regional Comparisons Jurisdiction Single Family Residential (7,000 sf lot, 40% Impervious area) Monthly User Charge Development Impact Fee ($/parcel) Monthly User Charge Development Impact Fee ($/parcel) Greeley $ 5.57 $ 369 $ $ 4,000 Longmont $ $ 862 $ $ 5,516 Fort Collins $ $ 498 $ $ 7,400 Loveland $ $ 500 $ $ 6,200 Windsor $ 4.00 $ 485 $ $ 7,200 Box Elder Stormwater Authority $ 5.50 $ 440 $ $ 862 Lyons $ $ Steamboat Springs None None None None Aspen 1 NA $ 12,600 Town of Estes Park 2018 Baseline Level $ 6.87 $ 500 $ Baseline Level $ $ 600 $ Commercial (1 acre site, 90% Impervious Area) 5/3/

30 Organizational Structure What sort of entity is required to finance and implement the Plan? A range is considered: The Town, through the General Fund. Competes with other Town services for sales tax funds The Town, through a new Stormwater Enterprise Fund. Recommended structure. Regional Stormwater Authority. BCC will not support New Regional Entity (District?) Encompassing Wastewater and Stormwater. Sanitation Districts do not support this option.

31 Stormwater Enterprise Fund Advantages Puts stormwater on par with other Town Enterprise Funds, a common approach for municipalities Allows for cost-of-service based rates and fees Town Board has rate-setting authority A range of funding sources may be available. Sales tax would require Town voter approval. Town could operate entity or it could be operated through contract Town has existing administrative structure to bill existing utility customers Disadvantages New staff and equipment are required to manage the projects and expanded maintenance efforts.

32 Who Decides? The elected officials (Board of County Commissioners and Town Trustees) must adopt an Intergovernmental Agreement that establishes roles and responsibilities for each jurisdiction (similar to Town administration of the Estes Valley Development Code) Why is this not decided by a public vote? An election administered by the Town only allows Town residents to vote. Not fair to County residents within the EVDC boundary. An election administered by the County would allow all County residents to vote. Not fair to Estes Valley residents to have larger County population of voters determine the outcome of this local issue. A regional stormwater authority or district boundary could be created and a special election conducted for the impacted property owners. BCC does not wish to be involved in the formation and administration of another district. No champion exists to form the required administrative structure.

33 NEXT STEPS (dates still tentative): June 7, 8, 10: Public Open Houses to present draft Stormwater Master Plan and proposed user fees. We want to learn: Should the Town be leading this effort, or do nothing while waiting for occasional grant funding for a few of the big projects? Are most residents willing to pay the proposed fees? Should owners of vacant land be obligated to pay the monthly service charge and O&M charge (but no facility expansion fee)? Is the longer 30 year project delivery period an acceptable tradeoff for lower monthly user fees? What else should we be asking? July 2, 2018: Public comment/survey period closes. July 24, 2018: Study Session with EP Board of Trustees to discuss draft IGA and citizen comments received on proposed stormwater user fees 5/3/

34 NEXT STEPS: Date to be determined: Work Session with BCC to discuss draft IGA and citizen comments received on proposed stormwater user fees Date to be determined: Public Hearing with EP Board of Trustees to approve SMP, approve IGA, and adopt new stormwater utility enterprise ordinance Date to be determined: Public Hearing with BCC to approve SMP and approve IGA to authorize Town to collect new stormwater user fees for county residents within the Estes Valley Development Code Boundary Date to be determined: Town Public Works and Finance Depts implement new user fees, hire a Stormwater Engineer, and begin designing the new projects. 5/3/

35 INPUT &/or QUESTIONS??? View the Stormwater Master Plan on the Town website (estes.org) and search for stormwater. Hard copy to be available in the Estes Park library by mid-may. 5/3/

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