1. Roanoke Valley-Allegheny Regional Commission June 28, 2012

2. A multi-year effort: August 3, 2009—City Council Retreat August 3, 2009—City Council Retreat March 9, 2010—Physical Development Comm. (PDC) March 9, 2010—Physical Development Comm. (PDC) April 13, 2010—PDC April 13, 2010—PDC July 13, 2010—Council Work Session July 13, 2010—Council Work Session September 28, 2010—City Council Meeting September 28, 2010—City Council Meeting December 14, 2010—City Council Meeting December 14, 2010—City Council Meeting January 25, 2011—SWAC recs. To City Council January 25, 2011—SWAC recs. To City Council February 8, 2011—City Council Meeting February 8, 2011—City Council Meeting March 22, 2011—Council Work Session March 22, 2011—Council Work Session April 26, 2011—Council Work Session April 26, 2011—Council Work Session September 13, 2011—Ordinance to City Council September 13, 2011—Ordinance to City Council October 25, 2011—Public Hearing October 25, 2011—Public Hearing December 13, 2011—Ordinance adopted with $0.00 fee December 13, 2011—Ordinance adopted with $0.00 fee April 24, 2012—Fee adopted with Credit Program (eff. July 1, 2012) April 24, 2012—Fee adopted with Credit Program (eff. July 1, 2012)

3. 3 The What, Why, How and When of Stormwater Management April 26, 2011 Council Work Session

4. 4 The Why Regulations are increasing Regulations are increasing Stormwater services are increasing Stormwater services are increasing Organization is fragmented Organization is fragmented Infrastructure needs are unknown Infrastructure needs are unknown Funding; questions of fairness and equity Funding; questions of fairness and equity

5. 5 The Why- Regulations are increasing Clean Water Act Water Quality Standards TMDL NPDES CSOWWTPStormwater

6. 6 The Why- Regulations are increasing Implementation Loads Stormwater Wastewater CSO Measures Total Phosphorous Total Nitrogen Sediment Bacteria Plans Stormwater MS4- $120M WWTP VPDES- $80M CSO Consent Order- $325M

7. Current Chesapeake Bay Regulations Point Source Non Point Source NPDES NPDES Wastewater Treatment Plants Wastewater Treatment Plants Municipal separate storm sewer system (MS4) Municipal separate storm sewer system (MS4) Stormwater Stormwater Erosion and Sedimentation (E&S) Erosion and Sedimentation (E&S) Best Management Practices (BMPs) Best Management Practices (BMPs)

8. Phase II NPDES Stormwater Regulation Lynchburg is in the second year of their second five-year permit cycle Lynchburg is in the second year of their second five-year permit cycle – First permit issued in 2003 – Current permit expires June 30, 2013 – Reduce the discharge of pollutants to “maximum extent practicable” (MEP) Protect water quality and aquatic habitat Protect water quality and aquatic habitat Satisfy the appropriate water quality requirements of the Clean Water Act Satisfy the appropriate water quality requirements of the Clean Water Act “Six Minimum Measures” “Six Minimum Measures” Maximum of $10,000 fine per violation Maximum of $10,000 fine per violation Phase II Purpose The Phase II Rules apply to @ 100 stormwater system operators in Virginia

9. The U.S. Environmental Protection Agency is leading a major initiative to establish and oversee achievement of a strict “pollution diet” to restore the Chesapeake Bay and its network of local rivers, streams and creeks. – US EPA Fact Sheet Chesapeake Bay TMDL

10. Initiative resulting in additional regulations Initiative resulting in additional regulations 64,000 mi 2 watershed 64,000 mi 2 watershed Covers six states Covers six states Approximately 17,000,000 people Approximately 17,000,000 people Initiative resulting in additional regulations Initiative resulting in additional regulations 64,000 mi 2 watershed 64,000 mi 2 watershed Covers six states Covers six states Approximately 17,000,000 people Approximately 17,000,000 people

11. Lynchburg Impaired Streams 10 streams (45 miles in length) identified as impaired by the State 10 streams (45 miles in length) identified as impaired by the State Primary impairments Primary impairments – Nutrients – Bacteria

12. 12 The When- Regulations are increasing What we know: What we know: – MS4 (2013) and VPDES (2016) Permits – CSO Consent Order – General Watershed Nutrient Permit (2011) – State Stormwater Regulations (<2014) – Bacteria TMDL What we don’t know: What we don’t know: – Chesapeake Bay TMDL (WIP Ph. 2, Oct/Nov) – National Stormwater Regulations (2012)

13. Future Regulatory Impacts to Lynchburg Chesapeake Bay TMDL and other TMDLs and regulations: Chesapeake Bay- “pollution diet,” 2-yr milestones begin 2013, 2025 completion date Chesapeake Bay- “pollution diet,” 2-yr milestones begin 2013, 2025 completion date Revised State stormwater regulations pending (2012) Revised State stormwater regulations pending (2012) Bacterial TMDL for the James River and Lynchburg Creeks (2010) Bacterial TMDL for the James River and Lynchburg Creeks (2010) Chlorophyll A TMDL for the James River (pending) Chlorophyll A TMDL for the James River (pending) MS4 permit with focus on urban stormwater MS4 permit with focus on urban stormwater National stormwater regulations proposed (2012) National stormwater regulations proposed (2012)

14. $2.3M (current) $3.2M (proposed) TMDL Timeline $2M $4M $6M Annual Cost Annual cost unknown, total cost approx. $120M over 15 yrs 2011201220132014201520162017 2018 Annual Cost $6M Annual Cost $4M $6M Annual Cost $2M $4M $6M Annual Cost TMDL Adopted & Phase I WIP Phase II WIP & New State SW Regulations MS4 Permit renewal EPA Milestone EPA Milestone, 60% goal & WIP adjustment (i.e. more $$) EPA Milestone

15. 15 The Why- Services are increasing CSO adds 2 miles per year of storm pipe CSO adds 2 miles per year of storm pipe Public stormwater devices Public stormwater devices – 16 in 2007 – 40 in 2011 – 20+ under design Private stormwater devices Private stormwater devices Erosion & Sediment Control Program improvements Erosion & Sediment Control Program improvements

16. Historic Stormwater Problems Existing Stormwater Program Stormwater Program is ONLY Stormwater Historic Combined Sewer Problems City Long Term Control Plan for CSO CSO Program is Wastewater with Stormwater Combined Sewer vs. Stormwater

17. Stormwater Management Affects Quality of Life and Economic Growth: Erosion/Flooding Public safetyPublic safety Insurance costsInsurance costs Development costsDevelopment costs Water Quality Drinking waterDrinking water RecreationRecreation RegulationsRegulations Stream Condition Public safetyPublic safety HabitatHabitat AestheticsAesthetics

18. Why Do We Care About Stormwater? Clean water & healthy streamsClean water & healthy streams No flooding or erosion and safe environmentNo flooding or erosion and safe environment High level of service at low individual costHigh level of service at low individual cost Typically Citizens Expect… City prevents development impactCity prevents development impact City maintains the entire stormwater systemCity maintains the entire stormwater system City takes lead role in assisting private sector with regulatory requirementsCity takes lead role in assisting private sector with regulatory requirements Typically Citizens Believe…

19. Why Do We Care About Stormwater? National Pollutant Discharge Elimination System (NPDES)National Pollutant Discharge Elimination System (NPDES) Chesapeake Bay Protection RulesChesapeake Bay Protection Rules National & State Stormwater RegulationsNational & State Stormwater Regulations Total Maximum Daily Loads (TMDLs)Total Maximum Daily Loads (TMDLs) Regulatory Drivers

20. Compliance Language in City’s NPDES Permit “The failure to provide adequate program funding, staffing or equipment maintenance shall not be an acceptable explanation for failure to meet permit conditions.” 4VAC50-60-1220. of NPDES General Permit

21. Stormwater Management - A City-wide Function STORMWATER MANAGEMENT PUBLIC WORKS UTILITIES PARKS & REC IT DEPT. COMUNICATIONS & MARKETING COMMUNITY DEVELOPMENT FINANCE SUPPORT LEADING

22. 22 The Why- Organization is fragmented

23. 23 The Why- Infrastructure needs are unknown What we know: What we know: – 50+ miles of storm pipe – 10,000+ inlets and outfalls – 100+ road culverts – No funding for improvements What we don’t know: What we don’t know: – Condition – Age – Location

24. 24 The How Organization Organization – Stormwater Utility – Utilities Dept manages program and below ground – New branding; “Department of Water Resources” – Public Works manages above ground Funding Funding – Implement a fee for service – Implement a credit program – Alternative: General Fund Subsidy (taxes & fees)

25. Virginia Dedicated Stormwater Funding Programs 16 programs have dedicated funding 16 programs have dedicated funding – 13 are fee-based – 3 are tax-based Two communities have pending fee programs and two are evaluating options Two communities have pending fee programs and two are evaluating options - Virginia First City

26. Guiding Principles Provide services that promote the health, safety and prosperity of the city Provide services that promote the health, safety and prosperity of the city Manage the city’s stormwater needs and infrastructure effectively and efficiently Manage the city’s stormwater needs and infrastructure effectively and efficiently Comply with environmental regulations Comply with environmental regulations Engage State and Federal regulators to keep the city well-positioned on future issues Engage State and Federal regulators to keep the city well-positioned on future issues Fairly and equitably charge for services provided Fairly and equitably charge for services provided Educate and engage the public Educate and engage the public

27. Benefits of a Stormwater Utility This is the most effective way to manage stormwater, regardless of TMDLs More accountability (annual rate study and budget) Manage stormwater system infrastructure similar to water and sewer systems Efficiencies gained through better coordination and management

28. Council “Roadmap”- SWAC Recommendations Level of Service2.5 3 3.5 4 5 Option AOption B Funding MechanismFee or any combination of Fee/VDOT/General Fund General Fund-Increase Real Estate Tax or keep equal to current rate Basis of ChargeImpervious AreaProperty Value Tax Exempt Properties Included? YesNo Enterprise Fund Required?YesNo Who To Bill?Property Owner or TenantProperty Owner How To Bill?Water/Sewer Bill Real Estate Bill Separate Bill Real Estate Bill Financial Policy Required?YesNo Ordinance Required?YesNo Credits Allowed?YesNo

29. Council “Roadmap”- Staff Recommendations Level of Service2.5 3 3.5 4 5 Option AOption B Funding MechanismFee or any combination of Fee/VDOT /General Fund General Fund-Increase Real Estate Tax or keep equal to current rate Basis of ChargeImpervious AreaProperty Value Tax Exempt Properties Included? YesNo Enterprise Fund Required?YesNo Who To Bill?Property Owner or TenantProperty Owner How To Bill? Water/Sewer Bill Real Estate Bill Separate Bill Real Estate Bill Financial Policy Required?YesNo Ordinance Required?YesNo Credits Allowed?YesNo

30. Staff Recommendations: Fair and Equitable A fee is more equitable than a tax – all properties pay based on impervious area Credits incentivize good stormwater practices on private property Property owners can modify their impervious area, tenants cannot Water/Sewer bill allows 12 equal payments Reduces burden on General Fund

31. Finance-Billings and Collections-Utility Billing recommends changing from owner, occupant or tenant billing to all sewer/water/storm billing to owners as recorded on the City’s Real Estate Records Advantages: Utility Billing maintains and manages all billing records for water, sewer and stormwater utility funds Administrative Cost Savings can be realized over two year period (see attached spreadsheet for details) This recommendation was soundly rejected by Council. Staff Recommendations: Efficiency

32. Justification of a Higher Level of Service 3.5 FTEs for PM and O&M $200,000 Current MS4 permit requirements$100,000 – – Buffer Program – – GIS Analysis – – Private BMP Program – – Restore street sweeping effort Stormwater Utility startup$200,000 Master Plan work$150,000 Infrastructure repair/replace$250,000 $900,000

33. Benefits of a Higher Level of Service Ensure continued compliance with existing regulations Keep City well-positioned on future regulations Address existing infrastructure and stormwater needs more efficiently and effectively Position City to qualify for grants or loans Improved customer service Better water quality

34. Staff Recommended Funding Mechanisms 2011 Actual- $2.3M Proposed 2013- $3.2M Proposed 2012- $2.75M* *Fee effective for 6 months of FY 2012 Assumes a Utility is created. Thus, funding is from General Fund and VDOT only- no sewer fund money.

35. Comparison of Funding Mechanisms $3.2M Program Staff Recommendation SWAC Recommendation Current Funding Methods* *Assumes a Utility is created. Thus, funding is from General Fund and VDOT only- no sewer fund money.

36. Cost to Average Single Family Home $2.3M Program Proposed $3.2M Program *Assumes a Utility is created. Thus, funding is from General Fund and VDOT only- no sewer fund money.

37. A Tiered Rate Structure is Recommended for Single-Family Residential Customers Small Single-Family > 4,257 Sq. Ft. = 1.6 SFU> 4,257 Sq. Ft. = 1.6 SFU 1,294 to 4,256 Sq. Ft. = 1.0 SFU1,294 to 4,256 Sq. Ft. = 1.0 SFU < 1,293 Sq. Ft. = 0.5 SFU < 1,293 Sq. Ft. = 0.5 SFU Average Single-FamilyLarge Single-Family Tier 1 Tier 2 Tier 3 The Average Single-Family Residential Unit (SFU) in Lynchburg is 2,672 sq. ft.

38. Non-Residential Customers Should Pay a Fee in Proportion to Absolute Impervious Area Non-Residential Impervious Area SFU = SFU (2,672 sq. ft.) 554,750 sq. ft. impervious area = 208 SFUs

39. Lessons Learned Start early Start early Educate, educate, educate Educate, educate, educate Hire consultant for technical and public outreach support Hire consultant for technical and public outreach support Involve the public; SWAC, webcast, print and internet, community meetings Involve the public; SWAC, webcast, print and internet, community meetings Identify principles and stick with them Identify principles and stick with them Work regionally Work regionally Be persistent, consistent and patient Be persistent, consistent and patient