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HomeMy WebLinkAboutINS-12-025 - Stormwater Credit Policy - Public Consultation Fol1 KITC;H>~.N~.R Staff Report Infrastructure 5ervrces nepari°ment www.kif[henerca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: February 27, 2012 SUBMITTED BY: Grant Murphy, Director of Engineering, 741-2410 PREPARED BY: Nick Gollan, Manager, stormwater Utility, 741-2422 WARD(S) INVOLVED: All DATE OF REPORT: February 15, 2012 REPORT NO.: INS-12-025 SUBJECT: STORMWATER CREDIT POLICY -PUBLIC CONSULTATION FOLLOW-UP RECOMMENDATION: That stormwater credit schedules as specified in Appendix B and C of report INS-12-025 be approved and come into effect on October 1, 2012 with eligible credits applied retroactively to January 1, 2011; and, That the proposed by-law in Appendix D of report INS-12-025, amending the existing By- law 2011-153 (Storm Water Charge By-law) be approved; and further, That one (1) engineering technologist position (full-time), one (1) program assistant position (full-time), and two (2) engineering co-op student positions (May-August annually) be hired beginning in March 2012 so as to enable the advance of stormwater related programs and the stormwater credit program. BACKGROUND: On January 9, 2012 staff provided Council with the recommended stormwater credit policy and proposed rate change. The objective of the proposed stormwater rate credit policy is to encourage the implementation of measures on private property in order to reduce total runoff volume and pollutant loading discharged to the city's stormwater management system, as well as to reward those properties which already have this type of best management practice in place. This report provides additional information based on inquiries and concerns raised by delegations and members of the Financial and Corporate Services Committee on January 30tH related to the proposed stormwater rate credit policy. As such, a decision on stormwater rate credit policy recommendations was deferred to February 27, 2012. REPORT: In addition to previous public consultation, staff have had further dialogue with interested parties including the City's Environmental Committee with respect to the recommended credit policy. 3-1 On February 16, 2012, staff presented the proposed credit policy to the Environmental Committee. Key components of the policy were highlighted along with the funding that could be received from the Ministry of the Environment to implement a public outreach and education program in conjunction with implementing the credit policy. The committee showed strong support for the implementation of the public outreach and education program. The success and effectiveness of the residential credit policy will be largely based on the city's ability to raise awareness through public education (particularly in the lower tiers). The RAIN program will focus on community outreach and providing residential property owners an opportunity to increase their efficient use of our water resources and subsequently the amount of credit they receive. At the same time this will provide staff an opportunity to evaluate the effectiveness of the program and report back to council on an annual basis as part of the annual stormwater management audit and make recommendations at those times. On January 9, 2012, a delegation appeared on behalf of the residents of the Queens Heights Condominium. A follow up meeting between staff and the delegation members took place on February 13, 2012. It was resolved that condominium boards were an important avenue to help residents apply for the maximum credit to the stormwater portion of their quarterly utility bill. It was agreed that as part of the RAIN program, staff would identify education opportunities that would engage condominium boards as well as condominium residents to identify opportunities to maximize the potential credit that condominium owners would receive (i.e. public outreach). On January 9, 2012, residents of the Grand Hill Village Association were concerned that their properties did not produce any stormwater runoff and as such they should be exempt from having to pay the stormwater rate. Staff have reviewed the 32 properties in the area and topographic information shows that approximately 23 of the 32 properties, discharge run-off onto the City's right-of-way (ROW), thereby using the city's stormwater system (e.g. swales and ditches). It appears that 9 properties receive run-off from the City's ROW and that this run-off is then discharged toward the Grand River behind their properties. Upon application, these properties would be eligible for the maximum 45% credit under the residential stormwater credit policy. It also should be noted that under the stormwater utility, all but two (2) properties in this area contribute less funding to stormwater than they did under the tax model due to the shift in funding from the residential sector to the non-residential sector. All properties also have the potential to reduce their stormwater fees even further with the implementation of the credit policy. This additional information was provided to the Grand Hill Village Association by email on February 2nd On February 6, 2012, delegations representing the Waterloo Region Chamber of Commerce and Landscape Ontario highlighted that they represent a number of companies in the area that provide stormwater management solutions and that many companies have implemented "green solutions" around the region. They wanted to ensure the RAIN program was not in competition with existing services provided by local business. Staff have clarified the RAIN program is a community outreach and education program that would generate additional opportunities for local businesses to implement stormwater management solutions. On February 13t", the opportunity to be engaged in developing the RAIN program and being members of the expert panel that is to be formed in the coming weeks was extended to these delegations. In relation to the residential credit policy, a concern was raised about the expected uptake in credits by single detached residential property owners. It was suggested that homeowners who have 1 or 2 rain barrels, should receive a 25% credit instead of 9% as currently proposed and that credit tiers should be collapsed from the current 5 tiers to 3, thereby increasing the costs of 3-2 the proposed residential credit program from $222,679 to $299,624 (a difference of $77,000 in 2011). Typically stormwater devices that hold more water cost significantly more, because they are typically placed underground and are more difficult to construct. As such, these property owners will lose the incentive to maintain these devices if the tiers are substantially compressed and more incentives are provided to property owners that have spent significantly less for the equivalent amount of stored rainfall volume. Further, with a larger credit come higher administrative costs as it would be expected that more resources would be focussed on inspecting and evaluating those properties with a 25% credit. Whereas, the lower tier (9% credit) would require less oversight and is viewed more as an educational awareness opportunity for the residents. At this time, staff do not recommend making a change to the proposed residential credit policy. Regarding staff consultation with the owners of River Edge Golf Course, between January Stn and February 17th, while similar circumstances apply in that the property is receiving runoff from the City's ROW, staff noted some key distinctions: 1) the large size of the property, mostly made up of open space, 2) the amount of the land located in the floodplain, and 3) the implementation of large scale stormwater best management practices. After further review by Legal Services, it is recommended that a change be made to the proposed non-residential credit policy to address these circumstances. This revision has been made to Appendix B and is shown in bold lettering. The implementation of the credit policy will provide for the mechanism for properties with similar circumstances to apply for the requisite stormwater credits. PUBLIC CONSULTATION Refer to INS 12-001 ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Community Priority -Environment "Continue to show leadership in the development of an environmentally sustainable community. " The City continues to ensure effective implementation of the stormwater management facilities in a sustainable and optimized manner in order to protect the environment and source water. FINANCIAL IMPLICATIONS: Refer to INS 12-001 COMMUNITY ENGAGEMENT: Refer to INS 12-001 CONCLUSION: It is proposed that two (2) policies be created -one for non-residential and multi-residential property owners, and another for residential property owners, due to the influence that they have over stormwater runoff, each of the credit policies are tailored to address specific issues. Once the policy framework and necessary by-law amendments are in effect, staff will ensure they are implemented as soon as possible, so that customers can begin receiving stormwater credits. 3-3 ACKNOWLEDGED BY: Pauline Houston, Deputy CAO Infrastructure Services Department Appendix A -Schedule `A' Stormwater Rate Schedule Appendix B -Schedule `B' Stormwater Non-Residential and Multi-Residential Credits Appendix C -Schedule `C' Stormwater Residential Credits Appendix D -Stormwater Charge Bylaw Amendment 3-4 Stormwater Charges -Schedule `A' of City By-Law (March 1, 2012) Number of Monthly Annual Type Code Description Basis for Charge Dwelling Units Charge per Property Charge per Property 1 Residential Single Detached Small Detached homes with building footprint 1 $5.84 $70.08 size of 105 m or less 2 Residential Single Detached Medium Detached homes with bu2lding footprint 1 $9.73 $116.76 size between 106-236 m 3 Residential Single Detached Large Detached homes with building footprint size of 237 m or more 1 $12.79 $153.48 4 Residential Townhouse / per dwelling unit 1 $6.95 $83.40 Semi-Detached 5 Residential Condominium Per dwellin unit 1 $3.89 $46.68 Du lex $7.79 $93.48 6 M lti R id ti l 2 5 U it P b ildi Tri lex $11.68 $140.16 u - es en a ( - n s) er u ng Four- lex $15.57 $186.84 Five- lex $19.47 $233.64 Charge = (# Charge = (# 7 Multi-Residential (>5 Units) Per property (according to number of varies units) x units) x dwelling units) ($1.95/month) ($23.40/year) See Note 2 See Note 2 8 Non-Residential Smallest 26 -1,051 m of im ervious area $18.63 $223.56 9 Non-Residential Small 1,052 -1,640 m of im ervious area $49.78 $597.36 10 Non-Residential Medium-Low 1,641 -7.676 m of impervious area / $130.43 $1,565.16 11 Non-Residential Medium-High 7,677 -16,324 m of impervious area n a $380.72 $4.568.64 12 Non-Residential Lar e 16,325 -39,034 m of im ervious area $922.74 $11,072.88 13 Non-Residential Lar est 39,035 m or reater of im ervious area $1,980.91 $23,770.92 Notes: 1. Example: 10-unit apt. _ $19.50/mo ($234.00/yr). 2. Non-Residential tiers (Billing Codes 8-13) include both Taxable and Tax-Exempt properties. 3. Non-Residential properties with less than 26.0 sq. m. of impervious area are not charged. 3-5 Schedule `B' (to By-law 2010-113, as amended by 2011-153) stormwater Non-Residential and Multi-Residential Credits (Effective October 1, 2012) Non-residential and multi-residential (>5 dwelling units) customers (the "Applicant") may qualify for rate credits when the Applicant can demonstrate that the property owned by the Applicant (the "Property") contains impervious areas that are directed to approved, or in accordance with, stormwater quantity and/or quality best management practices ("BMP"). The BMP must provide the City with a cost savings that the City otherwise would incur as part of their efforts to manage stormwater. B.1 Restrictions a) No public or private property shall be eligible to receive credits for any condition or activity unrelated to the reduction of the City's cost of providing stormwater management services, as determined by the Director of Engineering; b) Credits will not apply to fees attributable to new development or redevelopment projects; c) Any stormwater BMP off site or within a permanent easement maintained by the City shall not be eligible for a credit; and, d) Credits shall only be given to the registered owner of the Property. B.2 Conditions and Requirements a) The Applicant shall complete a stormwater credit registration form (the "Form"). The Form may be printed or electronic, and may be submitted with supporting documentation (if required) by mail, fax or over the Internet. b) A signed Form shall constitute authority for the City to perform limited announced inspections of the Property to determine the eligibility of the on-site stormwater BMPs, and the accuracy of the credit calculation. The inspection shall be limited to stormwater BMPs and other elements described in the registration. The City shall schedule the inspections at a date and time that is mutually acceptable to both parties. The City will offer the Applicant at least one (1) opportunity to reschedule to a mutually agreeable date and time. c) Credits will only be applied if requirements in this schedule are met, including but not limited to: completion of ongoing maintenance, guaranteed right-of-entry for inspections and submission of self certification reports, on an annual basis, as at the discretion of the Director of Engineering; d) Unless otherwise obligated by law, the City shall limit the use of the Form or other registration documents to activities required to administer stormwater credits; e) Credits will be defined as percent (%) reductions to the City's stormwater portion of the utility bill; f) One credit for each credit category described in Section B.3 can be applicable to a Property pursuant to the schedule, up to a maximum of 45% of the assessed stormwater rate; 3-6 g) Notwithstanding (f) above, a credit of 85% is applicable where the Property has the following attributes: i. is larger than 30 hectares in size, ii. more than 50% of the property lies in the floodplain; and, iii. has functional stormwater BMP in place as per (h) and (i) below. h) Any BMP must comply with all applicable municipal, provincial and federal standards and guidelines; i) As long as the BMP is functioning as approved and as demonstrated by self- certification reports and City inspections, the credit will be applied to the stormwater portion of the utility bill. If the approved BMP is not functioning as approved or is terminated for any reason whatsoever, the reduction will be cancelled and the rate will be returned to the baseline calculation. In the circumstance that a BMP is no longer functioning as approved, the Applicant shall reimburse the City the entire amount of the credit received in respect of the Property since the last inspection by the City. Once the credit reduction has been cancelled, a customer may not reapply for a credit for a period of 12 months and only upon the deficiency being rectified as determined by the City inspection; j) Credits will be applied retroactively to January 1, 2011 if the Form has been received prior to March 1, 2013, if such Form is approved. The retroactive credit is processed as a one time adjustment to an active customer utility account. If the Applicant took ownership of the Property and established a utility account after January 1, 2011 the credit will only be retroactive to the effective date of the utility account. Previous account holders are not eligible for the credit after moving out. Any Forms received after March 1, 2013, that are approved, will have the credits applied to a future billing cycle after receipt of the Form; k) Only stormwater management facilities that serve the Property described on the Form shall be credited toward that Property's bill. The Applicant cannot transfer credit eligibility from the Property to another property owned by the Applicant. Similarly, the credit eligibility of a Property does not transfer from the Applicant to anew owner of the Property, without a separate Form completed on behalf of the new owner of the Property; and I) All stormwater control BMPs must be an accepted practice referred to in the applicable City of Kitchener Development Manual at the time of registration, as certified by qualified person. The City may waive this requirement for a stormwater BMP that was installed prior to January 1, 2011, if such facilities are operating effectively and do not threaten or harm the Property, neighbouring property, City facilities or the environment, as determined by City inspections. B.3 stormwater Credits B.3.1 Option 1. Quantity Control Credit The percentage allocated for this credit is based on the percentage of impervious area that is directed to an approved quantity control BMP. The maximum credit for this category is 25%. B.3.2 Option 2. Quality Control Credit 3-7 The percentage allocated for this credit is based on the percentage of impervious area that is directed to an approved quality control BMP as well as the degree of treatment the BMP provides based on criteria established by the Ministry of Environment. B.3.2.1 Enhanced Quality Control Enhanced quality corresponds to the long term average removal of 80% of total suspended solids. The percentage allocated for this credit is based on the percentage of impervious area directed towards enhanced quality controls. The maximum credit for this category is 15%. B.3.2.2 Normal Quality Control Normal quality corresponds to the long term average removal of 70% of total suspended solids. The percentage allocated for this credit is based on the percentage of impervious area directed towards normal quality controls. The maximum credit for this category is 10%. B.3.2.3 Basic Quality Control Basic quality corresponds to the long term average removal of 60% of total suspended solids. The percentage allocated for this credit is based on the percentage of impervious area directed towards basic quality controls. In addition to the total suspended solids removal criteria, the Applicant may also eligible for the basic pollution reduction credit if they have implemented a paved area sweeping program, a salt management plan, or both. Paved Area Sweeping Program: the following minimum criteria must be satisfied: a) Submit a detailed paved area sweeping plan to include definition of areas to be swept, frequency of sweeping (minimum twice per month), debris disposal method, and type of sweeper used. b) Provide documentation of plan implementation, such as copies of paid invoices or employee timesheets, or a certification of work accomplished, prepared and signed by an officer of the sweeping company. Salt Management Plan -the following criteria must be satisfied: a) The Property or facility must be accredited through the "Smart About Salt" certification program or have an approved salt management plan that is administered by a contractor with "Smart About Salt" certification. The maximum credit for this category is 5%. B.3.3 Option 3. Education Credit Non-residential customers are eligible to receive the stormwater education credit for educating employees in the areas of flood prevention and pollution reduction if the following criteria are satisfied: 3-8 a) Devote fifteen minutes per quarter (or an hour annually) to educating employees about flood prevention and pollution reduction. Additionally, provide basic stormwater management information to new employees. Organizations will be required to submit programs or agendas to the City for environmental education sessions that will include information concerning number of attendees, time(s), place(s), and topic(s) covered during each session along with confirmation that a 50% employee participation goal was met. Pre and post session surveys are recommended. Topics must rotate on at least an annual basis; b) Post stormwater and water quality specific educational information obtained from the City, provincial/federal environmental agencies, or from any other reputable educational resource center in employee frequented areas. Information posted must be clearly visible. Information topics must rotate on at least an annual basis. Copies of posted materials must be provided to the City; c) Distribute stormwater and water quality specific literature obtained from the City, provincial/federal environmental agencies, or from any other reputable educational resource center to all employees on a quarterly basis and provide copies to the City with the annual self certification report. Literature topics must rotate on at least an annual basis; and d) All materials to be used in presentations must be reviewed and approved by the City before use in this program. Non-residential customers are eligible to receive the stormwater education credit for educating the City stormwater customer base in the areas of flood prevention and pollution reduction if the following criteria are satisfied: a) Disseminate stormwater and water quality specific literature obtained from the City, provincial/federal environmental agencies, or from any other reputable educational resource center to customers on a quarterly basis using high traffic area kiosks, advertised special events, customer mailings, product label advertisements, public service announcements, advertisements, educational curricula, or other mass distribution techniques. Information topics must rotate on at least an annual basis. Copies of disseminated materials must be provided to the City along with estimates of the number of customers reached in each annual self certification report; and b) All materials to be used in presentations must be reviewed and approved by the City before use in this program. Schools, public or private, are eligible to receive the stormwater education credit for educating students and employees in the areas of flood prevention and pollution reduction if the following criteria are satisfied: a) Devote two hours per half (four hours annually) to educating one grade level of students (or split between two grade levels) about water quality awareness and protection. Educational institutions will be required to submit programs or agendas to the City for environmental education sessions that will include information concerning number of attendees, time(s), place(s), and topic(s) covered during each session. The City will assist with providing materials for the education program. Pre and post session surveys are recommended. Topics 3-9 must rotate on at least an annual basis, or become part of the curriculum for the same grade level each year; b) Devote fifteen minutes per quarter (or an hour annually) to educating employees about water quality awareness and protection. Additionally, provide basic stormwater management information to new employees. Topics must rotate on at least an annual basis; c) Post stormwater and water quality specific educational information obtained from the City, provincial/federal environmental agencies, or from any other reputable educational resource center to student and employees frequented areas. Information posted must be clearly visible. Topics must rotate on at least an annual basis. Provide copies of posted materials to the City; d) Distribute stormwater and water quality specific literature obtained from the City, provincial/federal environmental agencies, or from any other reputable educational resource center to target students and all employees on an annual basis and provide copies to the City with annual self certification report. Topics must rotate on at least an annual basis. The maximum credit for this category is 5%. 3- 10 Schedule "C" (to By-law 2010-113, as amended by 2011-153) stormwater Residential Credits (Effective October 1, 2012) Residential (<5 dwelling units) customers may qualify for rate credits when the Applicant can demonstrate that the property owned by the Applicant (the "Property") contains impervious areas that are directed to approved, or in accordance with, stormwater quantity and/or quality best management practices ("BMP"). The BMP must provide the City with a cost savings that the City otherwise would incur as part of their efforts to manage stormwater. B.1 Restrictions a) No public or private property shall be eligible to receive credits for any condition or activity unrelated to the reduction of the City's cost of providing stormwater management services, as determined by the Director of Engineering; b) Credits will not apply to fees attributable to new development or redevelopment projects; c) Any stormwater BMP off site or within a permanent easement maintained by the City shall not be eligible for a credit; and, d) Credits shall only be given to the registered owner of the Property. B.2 Conditions and Requirements a) The Applicant shall complete a stormwater credit registration form (the "Form"). The Form may be printed or electronic, and may be submitted with supporting documentation (if required) by mail, fax or over the Internet. b) A signed Form shall constitute authority for the City to perform limited announced inspections of the Property to determine the eligibility of the on-site stormwater BMPs, and the accuracy of the credit calculation. The inspection shall be limited to stormwater BMPs and other elements described in the registration. The City shall schedule the inspections at a date and time that is mutually acceptable to both parties. The City will offer the Applicant at least one (1) opportunity to reschedule to a mutually agreeable date and time. c) Credits will only be applied if requirements in this schedule are met, including but not limited to: completion of ongoing maintenance and guaranteed right-of-entry for inspections, on an annual basis, as at the discretion of the Director of Engineering; d) Unless otherwise obligated by law, the City shall limit the use of the Form or other registration documents to activities required to administer stormwater credits; e) Credits will be assigned as per section B.3 up to a maximum of 45% assessed stormwater rate; f) Credits will be defined as percent (%) reductions to the City's stormwater portion of the utility bill; g) Any BMP must comply with all applicable municipal, provincial and federal standards and guidelines; 3- 11 h) As long as the BMP is functioning as approved and as demonstrated by City inspections, the credit will be applied to the stormwater portion of the utility bill. If the approved BMP is not functioning as approved or is terminated for any reason whatsoever, the reduction will be cancelled and the rate will be returned to the baseline calculation. In the circumstance that a BMP is no longer functioning as approved, the Applicant shall reimburse the City the entire amount of the credit received in respect of the Property since the last inspection by the City. Once the credit reduction has been cancelled, a customer may not reapply for a credit for a period of 12 months and only upon the deficiency being rectified as determined by the City inspection; i) Credits will be applied retroactively to January 1, 2011 if the Form has been received prior to March 1, 2013, if such Form is approved. The retroactive credit is processed as a one time adjustment to an active customer utility account. If the Applicant took ownership of the Property and established a utility account after January 1, 2011 the credit will only be retroactive to the effective date of the utility account. Previous account holders are not eligible for the credit after moving out. Any Forms received after March 1, 2013, that are approved, will have the credits applied to a future billing cycle after receipt of the Form; j) Only stormwater management facilities that serve the Property described on the Form shall be credited toward that Property's bill. The Applicant cannot transfer credit eligibility from the Property to another property owned by the Applicant. Similarly, the credit eligibility of a Property does not transfer from the Applicant to anew owner of the Property, without a separate Form completed on behalf of the new owner of the Property; k) All stormwater quantity control BMPs must be a municipality accepted practice. Accepted stormwater storage practices include: 1. Infiltration galleries 2. Storage devices (e.g. cisterns, rain barrels) 3. Landscaping techniques (e.g. rain gardens, depressed areas to collect rainwater) 4. Combination of first three techniques; B.3 Residential Quantity Control Credit The percentage allocated for this credit is based on the storage volumes in Table 1. TABLE 1: Residential Quantity Control BMP Credit Values Volume Captured Examples Credit 200 - 400 L 1-2 rain barrels 9% 401 - 800 L 3-4 rain barrels 18% • small cistern 801 - 2400 L small cistern 27% • combination of small cistern and rain barrels 2401 - 3200 L large cistern 36% • combination of cistern and rain barrels 3201 L or more large cistern 45% • infiltration alter 3- 12 BY-LAW NUMBER OF THE CORPORATION OF THE CITY OF KITCHENER (Being a by-law to amend By-law Number 2010-113 of The Corporation of the City of Kitchener pertaining to Storm Water Charges. ) WHEREAS the Corporation of the City of Kitchener adopted By-law Number 2010- 113with respect to the creation of the Storm Water utility; AND WHEREAS By-law Number 2010-113 was amended by By-law Number 2011- 153 in June of 2011 to allow for the creation of the Storm Water Charge Credit Policy; AND WHEREAS the Storm Water Charge Credit Policy has now been created and the Council of the Corporation of the City of Kitchener is desirous of implementing such Storm Water Charge Credit Policy; NOW THEREFORE the Council of the Corporation of the City of Kitchener enacts as follows: 1. Schedule "A" of By-law Number 2010-113 as amended by 2011-153, is hereby deleted in its entirety and replaced with Schedule "A" attached hereto. 2. Schedule "B" of By-law Number 2010-113, as amended by 2011-153, is hereby deleted in its entirety and replaced with Schedule "B" attached hereto; and 3. Schedule "C" of By-law Number 2010-113, as amended by 2011-153 is hereby deleted in its entirety and replaced with Schedule "C" attached hereto. PASSED at the Council Chambers in the City of Kitchener this day of A. D. 2011. Mayor Clerk 3- 13