/ 2007
STORMWATER UTILITY
ANNUAL REPORT

Background

This annual report is being submitted in accordance with Section 13.26.120 of the Milton Municipal Code which requires that by April 1st for the preceding calendar year, “The director [of public works] shall conduct an annual review of the utility’s operations, the total costs of operation and maintenance of the stormwater retention, detention, collection and conveyance systems, and the schedule of rates and charges. The director shall submit an annual report to the mayor and city council…summarizing the review and containing any recommendations for rate adjustments…”

Stormwater Comprehensive Plan – Capital Improvement Program

The Stormwater Comprehensive Plan Update (Comprehensive Plan) adopted in 2005 identified 11 capital improvement projects needed to prevent recurring flooding threats, one of which has already been constructed. The total cost of the remaining 10 projects is estimated to be almost $3 million. The Comprehensive Plan recommends these projects be completed by the end of 2013. This does not take into account projects that arise out of necessity, nor the stormwater portion of street capital improvement projects.

Table 1 (attached) provides summary information about each of the projects identified in the2005 Stormwater Comprehensive Plan Update. The recommendations included in each project summary are identical to the information provided in the last two years’ Stormwater Utility Annual Reports. (Note: Numbering in parenthesis match numbering in Comprehensive Plan Update.)

The projects identified in the Stormwater Comprehensive Plan Update range in estimated cost from $100 thousand to $800 thousand each. With an average cost of $500,000 per project, we can expect to complete only one stormwater capital improvement project every 4-5 years.

Due to the lack of water quality component in the projects – all are intended to improve flooding and potential overflow conditions – it is unlikely that any of the identified capital improvement projects would be awarded grant funding. The City of Milton will have to fund these stormwater capital improvement projects through a combination of utility rate increases and Public Works Trust Fund Loans.

During Council’s discussion of the 2006 Stormwater Utility Annual report and the subsequent public hearing for the recommended rate increase, there were a number of negative comments by the public regarding the Capital Improvement Program in the Comprehensive Plan. Some citizens felt the projects listed as priorities were in fact unnecessary, while other people questioned why the stormwater problems in their neighborhoods were not included in the program at all. In addition, the Public Works Department has received several complaints about stormwater problems – problems that are best resolved permanently through a large capital improvement project.

Although the Comprehensive Plan was updated only three years ago, it may be advisable to re-examine the Capital Improvement Program in light of current situations in the City.

2007 Financial Results

Based on the projected numbers presented in the adopted 2008 budget, the Stormwater Utility operating fund finished the 2007 year with an ending fund balance of $388,566.

2008 Financial Outlook

According to the approved 2008 budget, the Stormwater Utility has on-going anticipated revenues of $646,000 and on-going anticipated expenses of $607,460 which includes a transfer of $125,000 to the Stormwater Capital Fund as required by Ordinance 1656-05. These figures indicate a surplus at the end of 2008 estimated at $38,540.

2007 Capital Improvements

No stormwater capital improvement projects were constructed in 2007.

2008 Capital Improvement Outlook

Although a portion of the stormwater fees are allocated to capital improvements, the costs of these projects limit the City to only one stormwater capital improvement project every 4-5 years. There is not yet enough money saved in the capital improvement fund to complete another project.

The 2008 adopted budget includes an anticipated expenditure of $109,000 for the Kent Street Detention Pond, which is identified as a high priority in the Comprehensive Plan Capital Improvement Program. However, this is a “place-holder” as the project is dependent on resolution of other stormwater issues within the City.

No stormwater capital improvement projects are anticipated to be completed in 2008.

NPDES

In 2006, the Public Works Department hired a Stormwater Compliance Inspector and began the process of ensuring that all development in the City of Milton complies with the 2005 Department of Ecology Stormwater Manual for Western Washington. The City of Milton’s National Pollution Discharge Elimination System Phase II (NPDES) permit was officially issued on January 17, 2007.

Grants / Loans

In December of 2007, the City received a $75,000 grant from the Department of Ecology to assist with implementing the NPDES permit. During 2008 and 2009, the Stormwater Utility will utilize these funds for education and outreach programs, purchasing equipment for stormwater monitoring, and modeling new stormwater regulations, among other things.

The City is currently making payment on a Public Works Trust Fund Loan that was obtained in 2004 to assist in financing the Stormwater Comprehensive Plan Update. The loan of $71,904 is expected to be paid off at the end of 2009.

Stormwater Rates

In June of 2007, the City Council approved raising the stormwater rates from $12.75 to $15.50 per Equivalent Service Unit (ESU). The increase of $2.50 per ESU balanced ongoing revenues and expenses, while also providing an additional $0.50 per ESU for capital project funding.

Inflationary increases in on-going expenses can be expected to be offset in the short term by increases in revenues resulting from development.

Recommendations

The increase in stormwater rates in 2007 balanced revenues and expenses for the year, and the approved 2008 budget indicates a surplus of $38,540 at the end of the 2008 year. At this time, no fee increase is recommended.

A re-evaluation of the City’s stormwater concerns, including both historical flooding data and more current stormwater issues, is recommended. The goal of the re-evaluation would be to revise the Capital Improvement Program of the Comprehensive Plan and to develop a schedule for implementation including costs and stormwater rate adjustments.

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Table 1

(2) Surprise Lake Outfall
Because the pipes that restrict the outflow from Surprise Lake are located in City right of way, we have been advised by the City Attorney that should those pipes become plugged and cause flooding of lakeside properties, the City may be liable for significant damages. The Council should note that these pipes frequently get plugged by debris, and that City maintenance staff are called out to clear the debris from the pipes. In the past, the flooding situation has reached the point that the City had to pump water from the lake to prevent flooding of lakeside properties.
Because of the potential liability to the City, and because of the frequent maintenance required by the existing system, the replacement of the three small diameter outlet pipes with a 24-inch pipe and an outlet control is considered a high priority project.
(3) Kent Street Detention Pond
This project will help to alleviate potential flooding of the City’s Public Works Shop and adjacent well field. Although flooding of the shop area has not occurred frequently in the past, most heavy rains cause standing water within the shop area. Also, upland development can be expected to increase the frequency of flooding in this area unless some additional flow control facility is installed in the drainage system. The primary concern about flooding of the shop area is the threat to the wells in the area.
Because of the potential threat to the City’s water supply that may result from flooding in the shop area, completing of the Kent Street Detention Pond is considered a high priority project.
(4) 11th Avenue – Replace ditch with 15-inch and 18-inch pipe.
Although some localized flooding may occur in this area, the flooding that would occur is not considered a significant threat to private properties and, therefore, this is not considered a high priority project. It is recommended that this project be postponed.
(5 Milton Way and 13th Avenue – Reroute water to 11th Avenue
Because the pond, into which runoff from Milton Way drains, overflows on occasion and threatens adjacent private property, this is considered a high priority project.
(6) Milton Way and Yuma Street – Pipe flow to Yuma
The drainage from Milton Way drains onto private property on Fife Way. The potential exists that a heavy rainfall could cause erosion on private property and possibly impact a couple of new homes constructed in this area. The threat to these properties is not considered significant at this time. Also, this secion of Milton Way is going to need significant improvements in the near future. It is recommended that the subject drainage improvements be constructed in conjunction with the street improvements.
(7) Oak Street and 17th Avenue – Reroute storm water
In the past, properties at 1805-1807 Queens Street have threatened to flood. There has been no property damage to date, but the situation must be monitored. Because no actual flooding has occurred at this location, this is not considered a high priority project and, therefore, can be postponed.
(8) Taylor Street – Install pipe from 15th Avenue to 10th Avenue
The only problem this system would address is erosion of the roadway shoulder on Taylor Way, and provision of adequate capacity for drainage flows from the Oak Street and 17th Avenue project. Again this is not considered a high priority project and, therefore, can be postponed.
(9) Xavier Street and 14th Avenue – Install pipes to alleviate low spots
In the past the property at 1307 Xavier Street has threatened to flood. There has been no property damage to date, but the situation must be monitored. Because no actual flooding has occurred at this location, this is not considered a high priority project and, therefore, can be postponed.
(10) Emerald Street – Replace 12-inch culverts
There is no potential threat of property damage that would be eliminated by this project except for some erosion of the existing ditch system. Therefore, this project can be postponed.
(11) 5th Avenue – Replace 60-inch culverts with box culvert
The recent improvements to the Hylebos Creek wetland and channel are expected to significantly decrease the potential for flooding of the homes on the west side of 5th Avenue in this area. Therefore, this project should be postponed until the benefits of the wetland and creek improvements are known.

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