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05/06/2008 Strategic Planning Meeting CITY OF MONROE CITY COUNCIL STRATEGIC PLANNING MEETING 300 W. CROWELL STREET, MONROE, NC 28112 MAY 6, 2008 - 4:00 P.M. AGENDA www.monroenc.org 1. National Water Week 2. Recommendations from Stormwater Management Advisory Committee and Staff 3. Yadkin-Pee Dee Water Supply Presentation by Union County Public Works Director Christie Putnam <` City Council Strategic Planning Meeting May 6, 2008 Page 1 CITY OF MONROE CITY COUNCIL STRATEGIC PLANNING MEETING May 6, 2008 - 4:00 P.M. MINUTES The City Council of the City of Monroe, North Carolina, met in a Strategic Planning Meeting in the City Hall Council Chambers, 300 W. Crowell Street, Monroe, North Carolina, at 4:00 p.m. on May 6, 2008 with Mayor Bobby G. Kilgore presiding. Present: Mayor Bobby G. Kilgore, Mayor Pro Tem P.E. Bazemore, Council Members John Ashcraft, Billy Jordan, Dottie Nash, Robert J. Smith, City Manager F. Craig Meadows, City Attorney Terry Sholar, and City Clerk Bridgette H. Robinson. Absent: Council Member Lynn Keziah. Visito;i s: Bruce Bounds, Russ Colbath, Mark Donham, Amy Helms. Wayne Herron, Jim Loyd, David Mason, Jeff Payne, Chris Plate, Christie Putman, Lisa Stiwinter, and others. Mayor Kilgore called the Strategic Planning Meeting of May 6, 2008 to order at 4:00 p.m. A Item No. 2. Recommendations from Stormwater Management Advisory Committee and Staff. Engineering Director Jim Loyd advised by memorandum that the City had retained Camp Dresser & McKee (CDM) to assist in determining the feasibility of implementing a stormwater utility:l~ The project was divided into two phases: (1) feasibility study and (2) implementation phase. The first phase was further divided mto two steps smcc available funding in Fiscal Ycar 2006-07 was limited to $50,000. The first step was centered upon the City's current level of service for Stormwater. Mr. Loyd stated that various departments were interviewed along with the Finance Department to document Monroe's current Stormwater Management Program and expenditures to identify any primary challenges to a stormwater utility implementation. He advised that sufficient work was completed to approximate the monthly utility fee based on varioul~ options, and to determine if there are any concerns with the current utility billing system supporting a Stormwater utility. Mr. Loyd stated that on September 18, 2007 staff and the consultant, CDM, were authorized to move ahead with the second step of Phase I. Funding in the amount of $90,800 was included in the Fiscal Year 2007-08 budget to complete Phase I. quorum was present. Item No. 1. National Water Week. Water Resources Director Russ Colbath reported that this was "National Water Week." He advised that in recognition of the week, the City will have an information table in City Hall, and will be giving out memorabilia to commemorate National Water' Week. City Council Strategic Planning Meeting May 6, 2008 Page 2 Mr. Loyd advised that the second step included establishing a Stormwater Management Advisory Committee to determine the desired level of service for Monroe's Stormwater Management Program and to provide recommendations regarding funding as well as possibly developing a stormwater enterprise utility. The Stormwater Management Advisory Committee met a total of eight times between November 2007 and March 2008. Mr. Loyd highlighted some of the goals including establishing direction for the City's Storm) ater Program (public right-of--way, private property) and establishing a designated funding source for NPDES permit response (General Fund and Enterprise Fee) which the City received about three years ago. Stakeholders recommended the City improve the current level of service to a Level of Service B over the next 5 to 10 years. Mr. L'~oyd noted our current level of service costs are $520,000 annually for the Stormwater Respoinse. Program management includes BMP inspections, Stormwater drainage complaints, illicit discharge response and coordination with City crews. Mr. Loyd noted that an increase to Level ~~"B" would require an additional $773,000 annually, which would provide funding for adding a four man crew for stormwater maintenance, vacuum catch basins, and flush and CCTV pipes. The program management would perform basin planning of the entire system, inspect all "grandfathered" BMPs annually, and add one staff technician and one civil engineer. Mr. Loyd noted different options of funding the increase to Level of Service B included using General Fund only for the full amount, user fee only and establishing a Stormwater utility, or use a combination of both and continue funding the program with the General Fund and use the User Fees t,o fund the increased program involvement. Mr. Loyd reviewed some of the proposed budget recommendations for FY 2008-09 during the first six months including adding a four person stormwater crew and one Engineering Technician II. Staff also recommended financing the purchase of equipment (rubber tire backhoe, 2-ton flatbed, 4x4 13/4 ton tool truck, and one passenger vehicle) which would be the minimal amount of equipment that a crew would need to start-up. Mr. Loyd noted properties that generated runoff due to impervious coverage such as residences, churches, nonresidential development, schools, and government property would pay the fee. At a later date, the Stakeholder Committee would review exemptions that would include roads, railroads, and runways. Mr. Loyd advised that staff would like to proceed with implementation of a monthly Stormwater User Fee based on $4 per equivalent residential unit. Funding would be requested in the FY 2008- ~;M 9 budget, with a proposed implementation date of January 2009. Council Member Jordan asked how the City would reimburse that part of the General Fund for the advanced monies for the plan until enough monies were collected to get the program going. Mr. Loyd stated that based on the budget numbers, staff identified the need to finance some of the equipment and what could be generated within that six month period. Staff also recommends (~ a start up loan of $180,000 from one of the other City utility funds that the City would have to pay back through the Stormwater utility over the next five years. City Council Strategic Planning Meeting May 6, 2008 Page 3 Staff recommended that Council consider the recommendations of the Stormwater Management ~'1 Advisory Committee and establish a Stormwater Enterprise Utility, and authorize the City Manager to execute an agreement with CDM to proceed with the Implementation Phase with a January 2009 date of implementation of a monthly stormwater fee. Funding in the amount of $140,000 has been included in the Fiscal Year 2007-08 Budget for this phase of work by CDM. Finance Director Jim Fatland stated that the General Fund Unappropriated Fund Balance was 33% at year end and currently was around 29%; therefore, he did not see any major problem advancing the funds. Council Member Jordan stated one of the things that has not been done with the General Fund Fund Balance was the City still had not reconciled the windfall with regard to less expenditures ~r-1 and miore revenue to the cash flow segment at year end. Council Member Jordan stated he had not had the opportunity to review a cash flow statement to see exactly where the 33% comes from. Mr. Fatland advised he would provide a Fund Balance update at the next Finance Committee meeting and also provide a monthly update to Council. Council Member Jordan stated the City recently experienced reevaluation and an updated cash flow statement needs to be done so he knows where the City stood financially as it relates to the General Fund Fund Finance Director Fatland noted afive-year cash flow would be presented along with the budget. Plus, rather than going to Fund Balance to fund budget amendments, Mr. Fatland recommended to review the current expenditures in this year's budget and use current revenues to fund the budget amendment. Mr. Fatland felt this was a better practice so that everyone knew what the Fund Balance actually was, and not tapping into our reserves. Council Member Jordan stated that it was important to him to see how that windfall plays into an updated cash flow statement. He noted that Council made some very strategic and very hard decisions based on that cash flow statement that was presented over afive-year period of time that a~ldvised what the projected expenses were going to be versus revenues. Council Member Jordan stated to have the kind of windfall year that the City had, it was important for Council to know~~if they were going to be able to allow the- citizens a little bit of a break as a result of that or if they were going to be able to back off some of the policies that were in place or did the City need to look at some of the projects that were shelved as a result of the City's financial position last year or are we going to look at personnel issues that we shelved as a result of the financial position that we were in last year. A lot is riding on what that cash flow statement does for us. Mr. Fatland agreed and noted that in prior years, it was automatic procedure to use the Fund Balance for budget amendments and the projected Fund Balance went way down. At year end, when current revenues and expenses were finalized, the Fund Balance normally went back up again. He advised that it was more prudent to make amendments to the current year budget and not use the Fund Balance, and that he would keep Council apprised of the exact position. City Member Jordan made a motion to establish a Stormwater Enterprise and authorize the nager to execute an agreement with CDM to proceed with the Implementation Phase City Council Strategic Planning Meeting May 6, 2008 Page 4 with a January 2009 date of implementation of a monthly stormwater fee. Council Member Nash seconded the motion, which passed unanimously with the following votes: n AYES: Council Members Ashcraft, Jordan, Nash, Smith, Mayor Pro Tem Bazemore, and Mayor Kilgore NAYS: None Item No. 2. Yadkin-Pee Dee Water Supply Presentation by Union County Public Works Director Christie Putnam. Union County Public Works Director Christie Putnam provided an update' of the status of the Yadkin-Pee Dee Water Supply. Ms. Putnam advised that the Union County Board of Commissioners had moved forward with a project to bring in an additional three 'million gallons of water from Anson County currently under contract, design infrastructure ,.--~ and work on the permitting. Ms. Putnam noted this would require additional infrastructure on • ~ Anson County's side as well to maintain the reliability. Ms. Putnam noted that Union County was i~orking on their build-out projections and has been in contact with Mr. Colbath to make sure they understand_the City's needs. Ms. Putnam indicated Union County wanted to make sure that they do not double count for some of the same geographical areas as the City. Ms. Putnam advised that addressing the current contract and maximizing the four million gallons was the first phase. The second phase was aten-year time window because in about ten years,• Union~~ County could have additional water from the Yadkin-Pee Dee River. She advised her staff as analyzing Union County's ten-year demand needs. Ms. Putnam noted her staff was reviewing the opportunity to bring raw water from the Yadkin- Pee D;ee and treat it m Umon County, western Anson County or m southern Stanly County versus; treating the water at the Yadkin-Pee Dee River itself. Ms. Putnam advised that two weeks ago she met with the City of Monroe, Union County, Anson County, Stanly County, Cabarrus County, Charlotte Mecklenburg Utilities, and Lancaster County to discuss their needs from the Yadkin-Pee Dee River. The purpose of the meeting was to see dhow they could reduce their interbasin transfer issues. Ms. P'lutnam advised there was a power line easement across Anson County and it has been reviewed to determine if it could be used for a pipeline to deliver raw or finished water. She wanted to define preliminary alignments so once the demand analysis was complete and they know how much water would be coming in, they could determine pipe size and cost. Ms. Putnam advised that within then years there would probably be an additional agreement between Union County and Anson County to bring additional water in. Then the City and Union County could expand upon their current contract so there would be two separate contracts. Ms. Putnam stated that long-term, water requirements in 20 years may be totally different and that is why staff was starting now because with so many players involved, it will take a long time with permitting. She noted that the State has always been appreciative of all regional efforts and having these discussions with the neighboring counties would be very beneficial in the ten-year time frame. This will also require the construction of an intake which will require FERC permitting. Ms. Putnam stated that they did not want to alienate neighbors. She stated that City Council Strategic Planning Meeting May 6, 2008 Page 5 County could use additional water supply, but this would require preliminary engineering, scoping, and interlocal agreements with Anson County. Ms. Putnam noted Progress Energy would have to be involved and Anson County has a working relationship with them. Anson County is a Tier One status county and has funds available to them in grants and loan opportunities that are not available to Union County. Ms. Putnam stated that any water withdrawn from the Pee Dee River that is not directly discharged and goes back to that same point, is referred to as an "interbasin transfer" by the State. For all consumptive uses, anything that is septic use will require an "interbasin transfer" certificate. Ms. Putnam noted that they will be going through that process and there is not a definitive schedule for this project. Ms. Putnam stated the construction permitting estimated completion date was ten years. ~,oun woul~ day will b" of flex"i There adj our Attest Minutes it Member Jordan asked Mr. Colbath how much water the City needed for the build out be available. Mr. Colbath replied that by April 2014 there would be 6 million gallons per tgd), of additional supply and currently there was 11 mgd. Since reclaimed water is not ~, it has to be marketed as reclaimed; however, that would carry the City past 2018. There e two major water supply projects online by 2014, and that will provide the City with a lot ity. Being no further business, the City Council Strategic Planning Meeting of May 6, 2008 red at 5:00 p.m. Bo y G. Kilg e, ayor L cll. id to H. Robinson, itv Clerk by: Sherry K. Hicks ~~ •~~ .~ 8 I'' ~ + ~~/ City Council Strategic Planning Meeting May 6, 2008 Page 6