Large Customer Workshop: Understanding the Drainage Charge - - PowerPoint PPT Presentation

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Large Customer Workshop: Understanding the Drainage Charge - - PowerPoint PPT Presentation

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Large Customer Workshop: Understanding the Drainage Charge September 2016 For Discussion Purposes Only For Discussion Purposes Only 1 Agenda 1:30pm 3:00pm Welcome/Introduc6ons Drainage Charge Program Update Why am I Paying?

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Large Customer Workshop: Understanding the Drainage Charge

September 2016

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For Discussion Purposes Only

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Agenda

1:30pm – 3:00pm

  • Welcome/Introduc6ons
  • Drainage Charge Program Update

– Why am I Paying?

  • Understanding Drainage Rates

– How Much Will I Pay?

  • Dealing With the Basics of Your Property
  • Drainage Charge Credits

– How Do I Reduce My Bill?

  • Q&A

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MeeDng ObjecDves

  • Explain Drainage Charge Program

– How and when does it impact you – What you can do to reduce the impact

  • Help Customers Manage Their Bills
  • Promote Green Infrastructure
  • Answer Your Ques6ons and Hear Your Feedback

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Video

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hRps://youtu.be/qw-z_O6Z6fc

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DRAINAGE CHARGE PROGRAM UPDATE

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The New DWSD

Drainage Charge

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Since 1975, DWSD has charged customers for drainage. DWSD incurs more than $125 million each year to store, transport and treat billions

  • f gallons of storm water runoff and ice

melt that flow into the city’s combined sewer system. DWSD invested $1 billion in Combined Sewer Overflow facili6es (CSOs). May be required to invest in addi6onal facili6es, cos6ng everyone more.

“Fair Share” Drainage Charge

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Working with City Assessor data and flyover views, DWSD iden6fied 22,000 parcels (surface parking lots) that contribute to the city’s drainage flows are not being billed for drainage. LeRers sent in August no6fying property owners these parcels will be charged $750 per impervious acre per month star6ng October 2016. No back- billing.

“Fair Share” Drainage Charge

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O ra n g e a n d g reen parcels are not charged for drainage.

Including these parcels in the billing system could provide up to $10 million revenue and offset costs on paying DWSD customers.

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Uniform Rate and Impervious- Based Billing

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Over 3 years, all property owners will be transi6oned to a uniform rate based on impervious acreage. DWSD is establishing credits to soien the impact and promote storm water management and green infrastructure. Impervious cover is hard surfaces such as rooiops, driveways, parking lots that prevent or limit the amount of infiltra6on. Less impervious cover results in a lower charge. Use Parcel Viewer Tool to view parcel(s): hRp://arcg.is/29KWCpY

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UNDERSTANDING DRAINAGE RATES

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FY 2017 Drainage Charges

Class* DescripDon Billable Unit (% of Base Rate) Rate Per Unit (Meter Size or Impervious Acre) Fixed Fee Low Meter Size – 5/8” to 1” $20.36 Fixed Fee High Meter Size > 1” $190.56 Class 1 10-24% Impervious Area 17% $149.97 Class 2 25-49% Impervious Area 37% $326.41 Class 3 50-74% Impervious Area 62% $546.95 Class 4 Standard 72% $635.19 Class 5 75 – 100% Impervious Area 87.5% $771.91 Base Rate $882.19 Rate for converted proper6es $750.00 * Wayne County and the Michigan Department of Transporta6on are charged drainage charges under seRlement agreements.

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Non-ResidenDal Customer A Non-ResidenDal Customer B

Paying $9,500 a month in Drainage Billed per Impervious Acre x Class 5 Rate Billed per 3”plus Meter Size

Billing Inconsistency

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Paying $330 a month in Drainage

Non-ResidenDal Customer C Non-ResidenDal Customer D

Billed per 3”plus Meter Size Billed per 1”plus Meter Size Paying $185 a month in Drainage Paying $20 a month in Drainage

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Impervious Rate Could Decrease by 32% in 3 Years

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$852.02 $750.00 $618.97 $579.36 $594.37 $617.10 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 FY2016 2017 2018 2019 2020 2021 ESTIMATED IMPERVIOUS PER ACRE CHARGE FY ‘16 – FY ‘21

(22)%

RATE PER IMPERVIOUS ACRE

(1) (1) Before applica/on of credits

Incremental Acreage 1,937 4,701

  • Transition Costs

$6.5 $2.0 $0.0 $0.0 $0.0 Incremental Bad Debt $6.5 $4.6 $4.1 $3.2 $3.4

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Impervious Based Billing Phasing Plan

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January 2017 July 2016 October 2016 April 2017 June 2017 October 2017

Target Dates:

January 2018 Phase I

Billing Data Import

Phase II

New Parcels City Owned

Phase III

Industrial

Phase IV

Commercial

Phase V

Tax Exempt

Phase VI

Residen6al

Phase VII

Religious

  • Parcels will convert to acreage billing based on zoning classifica6on
  • Previously unbilled parcels charged $750/impervious acre/month (October 2016)
  • Parcels billed on acreage basis will convert to the new billing rate per schedule
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Sample Commercial MulD-Parcel Site

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New Parcel: No bill Oct 2016: IA x Rate Meter-Based Bill: $190.56

  • Apr. 2017: IA x Rate

(66% credit) New Parcel: No bill Oct 2016: IA x Rate Current Acreage- Based bill: $816.03

  • Apr. 2017: IA x Rate

A B D C

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DEALING WITH THE BASICS OF YOUR PROPERTY

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  • Mul6ple parcels
  • Mul6ple sites
  • (Poten6ally) mul6ple responsible par6es
  • Complex property data

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“Top 100” CharacterisDcs

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Step 1: Verify Ownership and Account Info

q Confirm ownership data q Confirm responsible property owner q Confirm account informa6on q Iden6fy your organiza6on point of contact

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This may involve an itera6ve process between the customer, DWSD and the Assessor’s office

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Property Data Packages

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Data packages have been prepared for most customers who RSVP’d through last week.

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Step 2: Review ExisDng Billing Method

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q Iden6fy how parcels are currently billed

– DWSD will pull records – Customer should gather bills

q Consider consolida6on q Determine transi6on impact q Schedule detailed review if necessary

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Property Billing Records

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Step 3: Determine Eligibility for Adjustments

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q Iden6fy change in impervious cover

– Modifica6ons to site – Type of cover – Impervious cover measurement

q Iden6fy direct discharge to surface waters

– Develop site map – Gather NPDES permit informa6on – Submit documents to DWSD for review and billing adjustment

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Not Impervious Cover Impervious Cover

Impervious Cover DefiniDon

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Impervious Cover Adjustment

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Step 4: Submit Forms

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q Complete necessary forms q Prepare suppor6ng documenta6on q DWSD makes necessary adjustments q Determine if site visit is necessary

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DRAINAGE CHARGE CREDITS

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What is Green Infrastructure?

Green Infrastructure refers to systems and prac/ces that use or mimic natural processes to infiltrate, return water to the atmosphere or reuse storm water or runoff on the site where it is generated.

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Drainage Charge Credits Launch October 2016

Eligible PracDces and Range of Credits:

  • Bioreten6on: 0-80%
  • Deten6on Pond: 0-40%
  • Permeable Pavement: 0-80%
  • Disconnected downspouts/disconnected imperviousness: 0-40%

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Customers can earn up to 80% bill credit. Up to 40% credit for reducing annual volume of flow, and up to 40% credit for controlling peak flow rate. Credits apply only to the managed area of a parcel.

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Implemented PracDces

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hRps://www.youtube.com/watch? v=i4E8awPJjRA&feature=youtu.be hRps://www.youtube.com/ watch?v=IbXVYG2cuHk hRp://erbff.org/annual-report/ videos/rain-gardens-to-the-rescue hRp://www.erbff.org/annual- report/videos/detroit-farm-and- garden hRp://www.erbff.org/annual-report/ videos/recovery-farms hRp://www.erbff.org/annual- report/videos/clinton-river- watershed-council hRp://www.erbff.org/annual- report/videos/northern-rain-gardens Storm water reten6on pond GM Detroit-Hamtramck Assembly Plant

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You May Already Be Eligible!

CAYMC Green Roof WCCC dry deten6on pond Disconnected Imperviousness Water Reuse

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Drainage Charge Credit Process

  • Validate Parcel and Billing data
  • ARend Green Infrastructure Workshop (star6ng October 2016)
  • Complete Applica6on for Implemented Prac6ces
  • Design and Implement New Prac6ces
  • Maintain Prac6ces

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New PracDces Process

Concept Design Construct Maintain PredeterminaDon DeterminaDon Verify Renew Credit Customer DWSD

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Evolving Green Infrastructure Credit Program

Method % COS Value Transi6on Term Rate Design

Phase I

  • Oct. – Dec. 2016

Phase II

  • Jan. – June 2017

Phase III FY 2018

  • Internal DWSD

credit admin / staff

  • Technical

assistance ins6tu6onalized

  • Maintenance

agreement

  • Off-site mi6ga6on
  • p6ons validated
  • Administra6on

ins6tu6onalized

  • Contractor training,

further implemen- ta6on assistance

  • Simple prac6ces

established

  • Drainage charge

manual online

  • Demonstra6on

projects

Key features

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Contact Us

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Website: hRp://www.detroitmi.gov/drainage Email (recommended): drainage@detroitmi.gov Phone Number: 313-267-8000, follow prompts

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Summary

  • Clarify Drainage Charge Program and Customer

Impact

  • Validate Customer Data and Billing
  • Promote Drainage Charge Credits (Reduce Your Bill)

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QUESTIONS?

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For Discussion Purposes Only

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Our Team

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DWSD ExecuDve Team Sponsors Program Management Workgroups

Off-site Storm Water Credits

(including Outreach / EducaDon)

GI Technical Assistance

Site Assessment Contractor Trg DemonstraDons

Credit AdministraDon CollecDons Enforcement Public RelaDons / Customer RelaDons Billing / Customer Service Green Infrastructure IT / DATA Legal / Financial

Public RelaDons / Customer Outreach

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Price EqualizaDon AnDcipated by 2019

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$- $100 $200 $300 $400 $500 $600 $700 $800 $900 FY2016 2017 2018 2019 ESTIMATED ANNUAL IA RATES Residential Fixed Rate Non- Residential Customers State / County

(1) (2)

Acreage Non- Residential Customers RATE PER IMPERVIOUS ACRE

(1) Residential rates exclude 25% automatic credit to reflect typical rain drainage patterns unique to residential homes which lower effective imperviousness (2) State and County rates calculated exclusive of local conveyances

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Programs for Beoer STORM WATER MANAGEMENT in DETROIT

Drainage Charge Credits

Reduced Storm Water into Detroit’s Combined Sewer System

  • LESS TREATMENT
  • CLEANER WATER
  • SHARED INVESTMENTS

DWSD Drainage Charge for Impervious Cover Detroit’s New Post- ConstrucDon Storm Water Ordinance for Development DWSD’s Green Infrastructure Program

Alternate Compliance OpDons

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Impervious Cover DefiniDon

41 Land Cover Type Impervious Pervious Storm Water PracDce* Buildings and roofs

  • Concrete (parking, driveways, sidewalks, etc.)
  • Asphalt (parking, driveways, sidewalks, etc.)
  • Brick Surface (parking, driveways, sidewalks, etc.)
  • Gravel or dirt surface used for vehicular traffic (driving or parking)
  • Uncompacted dirt/gravel (no vehicular traffic)
  • Decks, pavement below
  • Decks, vegeta6on or earth below
  • Stockpiled dirt/gravel/sand/other materials
  • Railroads with gravel ballast
  • Gravel or decora6ve stone used for landscaping (not compacted, open-graded)
  • Gravel walkway (no vehicular traffic)
  • Lawn, vegetated areas
  • Permeable pavement*
  • Ponds (natural, ornamental)
  • Buildings with green roofs*
  • Swimming pools
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How Does It Work?

Verify Parcel InformaDon Is ownership and impervious area measurement correct? Are There ExisDng Storm Water PracDces on Site? Complete Credit ApplicaDon Provide suppor6ng documenta6on and site plan with proposed prac6ces and H/ H calcula6ons

Customer IniDates Process

Customer Submits Credit ApplicaDon to DWSD Fax, email, or USPS mail DWSD Reviews and Provides Wrioen Response

NO NO YES YES

Complete DWSD Parcel Survey and Submit SupporDng DocumentaDon Customer Develops Concept for New Storm Water PracDces Submit to DWSD for Review DWSD provides pre-determina6on of drainage charge credit Have All Necessary Permits Been Obtained? Contact Permit Agencies and Obtain Required Permits

NO

Apply Credit to Account as of ConstrucDon CompleDon Date and CerDficaDon DWSD Inspects PracDce Is prac6ce constructed

  • r pre-approved?

Confirm ConstrucDon CompleDon and Submit Constructed Drawings to DWSD

YES

Review Charges with DWSD for Adjusted Credit CalculaDons Maintain PracDce at All Times Recer6fy every three years

YES NO

Add Design and Final calcula6on

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ImplementaDon Assistance

  • Site assessment and design

assistance

  • Online tools
  • Contractor training
  • Poten6al drainage credit

for outreach

  • Capital assistance
  • Maintenance agreement

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One rate system for all

ImplementaDon Assistance

Engage property

  • wners in GI

Revitalize neighborhoods Reduce costs for low-income customers Create and support local jobs Maximize environmental benefits