Agenda #4b | Carolina North Stormwater Utility Discussion

AGENDA # 4b

Carolina North Stormwater Utility Discussion

Executive Summary

Purpose

One of the Group I issues for discussion between the Chapel Hill Town Council and the University of North Carolina at Chapel Hill’s Board of Trustees is the payment of stormwater fees for the proposed development at Carolina North. The respective stormwater staffs were directed to provide recommendations and a draft policy for sharing the costs associated with stormwater management at Carolina North. This document presents a recommended method and fee and detailed background on the stormwater programs, a comparison of the stormwater services provided by each program, and supporting information for the fee calculation.

Recommended Method

The Town of Chapel Hill (Town) and The University of North Carolina at Chapel Hill (University) staffs agreed to calculate a proposal for fee participation based on the services provided by the Town to the University. This began with a comparison of the University and Town stormwater programs and a discussion of services provided in parallel by the University and Town Stormwater staff.

The University provides some services in parallel to the Town and would not therefore pay for those services in the stormwater utility fee, unlike other landowners who rely on the Town for all services. At the time of future rate changes, the portion of the fee paid by the University will be recalculated using this method. This will ensure that the University continues to pay for the services provided.

The following table represents the Town budget for the current fiscal year (2009) and the proposed fee payment by the University.

Stormwater Budget Area		% of Town Stormwater Budget (2009)	Fee Payment by UNC
A	Plan Review & Construction Inspection	9%	Yes
B	Stream Determinations, FEMA Floodplain Mapping, Hazard Mitigation Planning	3%	Yes
C	Street-Sweeping and Storm Drain Maintenance	42%	28% of this category for Pan-Community Impacts
D	NPDES Phase II MS4 Permit Activities	26%	No
E	Technical Assistance, Localized Flooding	20%	No
F	Jordan Lake Rules	0% (Currently)	No
G	Capital Costs	0%	Cost-Sharing by Project
		100%	24% for current year

Example Calculation

The existing impervious cover at Carolina North is 1,715,324 square feet. In the Town’s stormwater utility calculations this is equal to 859 Equivalent Rate Units (ERUs). Under the current rate structure, the full stormwater utility fee payment (100%) for 859 ERUs would be $33,462. With the proposed partial fee payment agreement, the University would contribute $8,030 (24%) for the existing impervious cover at the 2009 rates.

Carolina North Stormwater Utility Discussion

The payment of stormwater fees for the proposed development at Carolina North is one of the Group I issues for discussion between the Chapel Hill Town Council and the University of North Carolina at Chapel Hill’s Board of Trustees.

The respective stormwater staffs were directed to provide recommendations and a draft policy for cost sharing associated with stormwater management at Carolina North. This document presents a comparison of the stormwater services provided by each program, and a proposed way forward.

BACKGROUND

In June 2004, the Chapel Hill Town Council authorized establishment of the stormwater management utility fee to fund the Town’s stormwater management program. A stormwater fee is billed annually to property owners within the Town’s municipal boundaries based on the total amount of impervious surface on the property. Impervious surfaces are those surfaces that, because of their composition or compacted nature, impede or prevent natural infiltration of water into the soil.

The Town of Chapel Hill (Town) stormwater utility fee provides a dedicated source of funding for the Town to develop and implement stormwater-related activities and functions, partly in response to Federal and State water quality requirements. The stormwater utility fee is not limited to implementation of and compliance with the NPDES Phase II MS4 stormwater regulations. The Town submitted its NPDES Phase II permit application in March 2003 and received its permit in July 2005.

In March 2003, The University of North Carolina at Chapel Hill submitted its stormwater permit application to the North Carolina Division of Water Quality. In November 2003, the University notified the Town Manager that the University would not participate in the Town’s stormwater management utility fee. This decision was based on commitments made by the University regarding control of both the quantity and quality of stormwater runoff, the requirements of the federal stormwater regulations that all owners and operators of small municipal storm sewer systems develop and implement their own stormwater management programs, and the need for the University to meet its own stormwater infrastructure needs. The University has made substantial investments in personnel, equipment, master planning, and installation and maintenance of stormwater best management practices. The University’s stormwater program is not limited to implementation of and compliance with the NPDES Phase II MS4 stormwater regulations. The University received its permit in May 2007.

STORMWATER SERVICES COMPARISON

The Chapel Hill and the University stormwater programs share similar goals and characteristics. These include the following:

Receipt of NPDES Phase II MS4 permits
Stormwater infrastructure maintenance responsibilities
Sustainable program practices
Future Jordan Lake TMDL regulations

The University’s Stormwater Program distinguishes the University from other property owners in the Town of Chapel Hill. All property owners in Town are required to maintain the stormwater management controls on their property, and other large property owners conduct activities such as street sweeping or storm drain system maintenance on private property. The University’s stormwater maintenance program includes these items and extends maintenance to some of the streets owned by the Town, NC-DOT and the University. The University stormwater program includes technical assistance, water quality monitoring, master planning, and capital improvements that are not undertaken by other land owners. Similar to the Town, the goals of the University’s stormwater program are water quality improvements, mitigation of localized flooding, and downstream quantity issues.

The Town’s stormwater management program and fee are not limited solely to implementation of and compliance with the NPDES Phase II MS4 stormwater regulations. The Town’s stormwater utility fee also funds a variety of stormwater management programs and activities that serve the entire community, including the University and its employees, families and students. These stormwater program activities and related services provided by the Town include development plan review; technical assistance for compliance with applicable local, state, and federal regulations; public storm drainage system improvements and maintenance; bridge inspections; sedimentation and erosion control oversight; National Flood Insurance Program (NFIP) administration; hazard mitigation planning; floodplain management; storm sewer inventory; data management, mapping, and maintenance; regional watershed coordination; and design and construction of capital improvements. Many of these activities involve coordinated efforts between Town staff and staff from the University, OWASA, and Orange County.

The Town and University share watersheds. Some streams in the University’s permit jurisdiction discharge into the Town’s permit jurisdiction. Some streams under the Town’s permit jurisdiction enter the University’s permit jurisdiction, pass through, and discharge back into the Town. Other streams in the Town’s permit jurisdiction may enter the University’s permit jurisdiction, pass through, and discharge outside of the Town’s jurisdiction. The Town also receives upstream runoff from the Town of Carrboro and unincorporated Orange County.

The Town believes that University runoff becomes the responsibility of the Town, both as to water quantity and water quality. The University agrees that the Town conveys the quantity of water that enters the Town jurisdiction via stream channels, road culverts, and storm drain networks. In some cases the University conveys runoff from the Town’s drainage system. The University takes responsibility for controlling the quality of runoff from University property, similar to the other upstream jurisdictions whose runoff also passes through Town streams and conveyances.

The seven budget areas of the Town program are identified in sections A-G below, with points of agreement between the Town and University staff.

A. Stormwater Plan Review & Construction Inspection

Points of Agreement

The Town reviews the University’s stormwater plans as part of the development permitting process. The University also internally reviews its stormwater plans prior to submission.

B. Stream Determinations, FEMA Floodplain Mapping, Hazard Mitigation Planning

Points of Agreement:

The Town conducts stream determinations and administers the FEMA Floodplain Mapping program.
Hazard Mitigation Planning is currently coordinated by the Town’s Stormwater Management Division. The University participates in Hazard Mitigation Planning.

C. Street-Sweeping and Storm Drain Inspection/Maintenance

Points of Agreement:

The University’s maintenance goes beyond the scale of other property owners, as UNC sweeps some streets and cleans out storm drain infrastructure associated with Town and DOT roads on the central campus as well as connector streets owned by UNC (e.g., Skipper Bowles Drive, Stadium Drive).
This work on DOT and Town roads within the campus offsets the fee payment by the University for street sweeping and storm drain maintenance.
The University also street sweeps and maintains private roads, driveways, and parking lots;however, that was not considered in calculating the fee payment.
There is an indirect impact of the University’s population traveling through Town to reach the campus.
This indirect or pan-community impact will be addressed through the University’s partial payment in this portion of the stormwater utility fee.
Partial payment for pan-community impacts will be based on the portion ofTown maintenance activities associated with major thoroughfare roads that provide access to campus. (e.g., Franklin Street, 15/501, MLK, S. Columbia Street, NC 54)

D. NPDES Phase II MS4 Permit Activities

The Clean Water Act gave the U.S. Environmental Protection Agency (EPA) authority to regulate stormwater discharges through its National Pollutant Discharge Elimination System (NPDES) permitting program. In most states, the EPA delegates the permitting programs; in North Carolina, the Department of Environment and Natural Resources, Division of Water Quality issues NPDES permits. Public bodies with a system of stormwater conveyances (pipes and open channels), that meet the EPA definitions are required to obtain permits controlling the quality of stormwater runoff. These are known as NPDES MS4 (Municipal Separate Storm Sewer System) permits to distinguish from NPDES permits issued to wastewater treatment plants and industries. The University’s NPDES MS4 permit is applicable to property owned by the University. The Town also has a NPDES MS4 permit. No other entities within the Town of Chapel Hill are required to obtain a NPDES MS4 permit.

Points of Agreement:

The University, as a NPDES permittee, administers a program that serves the campus population. The Town NPDES program addresses the same NPDES measures but does not directly target the campus population.

All NPDES MS4 permits require the permittee to perform six minimum measures. Each permit is also individualized to include other requirements. The six minimum measures are:

Public Education & Outreach
Education of community members about impact of their behaviors and how they can improve water quality. For the University, the community is the students, faculty, and staff who live, work, or study on campus. For the Town, this is residents who live and work in Town.
Public Involvement & Participation
Includes volunteer involvement in shaping the program and conducting clean-up and education activities. The Town established a Stormwater Advisory Board, to which the University provides a representative.
Illicit Discharge Detection and Elimination
Finding and removing illicit discharges (pollutant sources). This permit activity also includes mapping of the stormwater system. UNC performs storm drain mapping for all University properties, including Carolina North. The Town performs all storm drain mapping outside University properties.
Erosion and Sediment Control
The University reviews plans and inspects active construction sites to ensure proper erosion and sediment control measures are in place. The Town has an Erosion and Sediment Control Ordinance, which requires measures to be installed for land-disturbing activities. The Orange County Erosion Control staff administers the permitting and performs inspections for the Town.
Post-Construction Runoff Control
Implementing stormwater controls (ponds, bioretention, etc.) with new development and ensuring these controls are maintained. The University is required by its NPDES permit to inspect, maintain, and retrofit Best Management Practices (BMPs) on University property. The Town is required to maintain its stormwater BMPs and ensure that BMPs installed on private property are inspected and maintained.
Pollution Prevention/Good Housekeeping
Staff training, waste disposal, street sweeping and catch basin cleanouts, and pollution prevention at Town/University maintenance facilities fall within this measure.

The following activities are required by the NPDES permit or are related:

Master Planning
The University is doing Stormwater Master Planning for the all University properties. The Town also has a Stormwater Master Plan under development.
Water Quality Sampling
Both the Town and the University conduct regular water quality monitoring activities.

E. Technical Assistance, Drainage Complaints, Localized Flooding (non-University)

The Town addresses flooding and drainage issues within the Town. The University handles localized flooding or erosion issues that occur on University property. The University does not seek Town funding or technical expertise for these matters.

Points of Agreement:

The University has in-house expertise regarding stormwater management. The University’s stormwater staff responds to inquiries from the campus community and neighbors about drainage investigations, pollution reports, and regulatory assistance. Any inquiries to the Town regarding University property should be referred to the University stormwater staff.

F. Jordan Lake TMDL Rules

The Jordan Water Supply Nutrient Strategy has been under development for a number of years and is expected to be adopted by the legislature in 2009. While some changes can be anticipated as part of the legislative process, the following aspects are expected to remain the same.

The University, as a State entity, will be specifically regulated by the North Carolina Division of Water Quality under the Jordan Lake Rules. See proposed section 15A NCAC 02B .0271.
The Rules will apply provisions directly to the University on new development, existing development, re-development, and buffers. No action will be required by the Town to apply these provisions to development at the University.
Proposed Jordan Lake rules will set specific pollutant load targets. Rules will apply the highest nitrogen limits in the State to the watershed that includes UNC/Chapel Hill (Upper New Hope Arm). Jordan Lake guidelines push the limits of technology for pollutant removal, especially for existing development. Only a few existing stormwater management practices (bioretention, wetlands, sand filters, rainwater harvesting) meet these requirements.
The cost of complying with the existing development portion of the rules is expected to be very high.

Points of Agreement:

As a state entity, the University will be responsible for meeting the future Jordan Lake Rules for all University property, including non-contiguous properties. Accordingly, the University will not contribute financially to meeting the Jordan Lake Rules outside of University property. The Town will be responsible for meeting the Jordan Lake rules for properties not owned by the University.

G. Capital Costs

In the future, the Town may use the stormwater utility to pay the capital costs related to the following areas:

Water Quality
Stormwater Infrastructure
Flooding (non-localized)

The University is responsible for the long-term repair and replacement of storm drain infrastructure on its campus property. In cases where the Town and University stormwater infrastructures are inter-connected, such as possible future Town roads at Carolina North, the University and the Town would discuss infrastructure improvements and cost-sharing.

Points of Agreement:

Carolina North will be designed to prevent an increase in downstream flooding. Design calculations for development at Carolina North will include calculations of the peak rate of stormwater discharge at each point leaving the property for agreed upon design storms. Peak discharge rates at each point will not be increased as a result of development.

FEE CALCULATION

The Town believes that a stormwater user fee funding method is equitable, because the owner of a property is charged a fee that has a reasonable relationship to the service demand that a particular property places on the stormwater management system. This service demand or “use” results in the need to provide stormwater management services and facilities necessary to protect the property, downstream properties, and receiving waters. Service demand traditionally is measured in terms of peak stormwater flow leaving a property, with larger flows normally resulting in greater service demand on the stormwater management system. A key indicator of peak stormwater runoff is impervious surface on a property. For this reason, most stormwater management utilities base user fees on impervious surface. The University recognizes and agrees with the use of impervious cover as the billing unit for a stormwater utility fee.

The University’s stormwater program provides services that would otherwise increase the financial burden on the Town’s stormwater program. The Town recognizes the uniqueness of the University’s stormwater management program as a property owner and further acknowledges the University’s stormwater management activities toward achieving the shared goals of water quality improvement and stormwater system maintenance. The University recognizes that the Town provides some stormwater services to the University and as such, agrees to make a reduced stormwater payment to compensate the Town for these services at Carolina North.

The Town and University staffs agreed to calculate a proposed level of fee participation based on the services provided by the Town to the University. This began with a comparison of the UNC and Town stormwater programs and a discussion of services provides in parallel by UNC and Town Stormwater staff. The stormwater was grouped in seven areas, as listed in the table below. The percentage of the Town’s stormwater 2009 budget allocated to each area was calculated.

At the time of any rate changes, the portion of the fee paid by the University will be recalculated using this method. This will ensure that the University is contributing for the services provided. If rates are increased in the future, the percentage of the Town stormwater budget allocated to various areas may change and therefore the University’s partial payment percentage would change.

Fee participation in each budget area (A-G as described above) is categorized in one of four ways:

Yes: The University would pay this portion of the stormwater fee. The University agrees that this service is provided to the University.

No: The University would not pay this portion of the stormwater fee because it already performs this function. These are potential program areas where the University and the Town can better coordinate efforts and share data.

Pan-Community Impact: The University would pay the portion of the fee associated with major roadways (e.g., MLK/Columbia, NC 54, Franklin St, 15/501, Estes as described in C above). This recognizes the University’s program to sweep streets and clean storm drain infrastructure on some roads owned by the Town and DOT that traverse the campus.

Cost-Sharing by Project: For capital costs of projects that receive University drainage and are to the mutual benefit of the Town and University, a cost-sharing or other alternate funding agreement would be discussed for individual projects.

The following table represents the Town budget for the current year.

	Stormwater Budget Area	% of Town Stormwater Budget (2009)	Fee Participation by UNC
A	Plan Review & Construction Inspection	9%	Yes
B	Stream Determinations FEMA Floodplain Mapping Hazard Mitigation Planning	3%	Yes
C	Street-Sweeping Storm Drain Inspection/Maintenance	42%	28% of this category for Pan-Community Impacts
D	NPDES Phase II MS4 Permit Activities Public Education & Outreach Public Involvement & Participation Illicit Discharge Detection and Elimination Storm System Mapping Pollution Prevention/Good Housekeeping Erosion and Sediment Control Master Planning Water Quality Sampling BMP Inspections Advisory Board	26%	No
E	Technical Assistance Drainage Complaints Localized Flooding	20%	No
F	Jordan Lake TMDL Rules	0% (Currently)	No
G	Capital Costs water quality related storm drain flooding related (non-localized)	0%	Cost-Sharing by Project
		100%	24%*

* fee participation calculation = budget areas A+B+C = 3% + 9% + (28% of 42%) = 24%

Fee Calculation Example

The existing impervious cover at Carolina North is 1,715,324 square feet. In the Town’s stormwater utility calculations this is equal to 859 Equivalent Rate Units (ERUs). Under the current rate structure, the full stormwater utility fee payment for 859 ERUs would be $33,462. With the proposed partial fee payment agreement, the University would pay $8,030 for the existing impervious cover at the 2009 rates.

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