Oahu Storm Water Utility StudyCity and County of HonoluluStakeholder Advisory Group MeetingJune 15, 2020

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WelcomeThank you for joining and participating.

Roundtable Alohas

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We miss you!

Today’s Agenda

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Today’s Agenda

Time Topic

4:00-4:10 pm Welcome, Roundtable Alohas, and Agenda Overview

4:10-4:20 Public Comment

4:20-4:25 Binder Contents and Resources

4:25-4:40 Updates on Modified Storm Water Utility Consideration and Potential Implementation Timeline Due to COVID-19 Impacts

4:40-5:00 Community Engagement Updates

5:00-6:25 Draft Recommendations for Credits Program and Approaches for Hardship Relief

6:25-6:30 Upcoming Meeting Dates and Wrap Up

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Keep input focused and

concise

Commit to everyone participating equally

Listen for understanding –avoid quick opinions

Help identify solutions

Tips for Productive Discussions

Feedback! Give us feedback on how to improve remote meetings

After Meeting

Email additional input to Randall for distribution, will attach to summary

Easy Listening

Mute on laptop and cell phone to make listening easier

Chat and Raise Hand

Use CHAT function or RAISE HAND for questions and comments

Our Virtual Meetings

Public Comment

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Please Share Your Perspectives!The public was invited and encouraged to submit comments before this meeting and to observe the meeting. The public is also invited to submit written comments by email or US Mail, preferably by Friday, June 19, 2020. All comments from the public will be distributed to the Stakeholder Advisory Group members and project team.

Emailstormwater@honolulu.gov

Mahalo

US MailCity and County of HonoluluDepartment of Facility MaintenanceStorm Water Quality Branch1000 Uluohia Street, Suite 212Kapolei, HI 96707

Updates on Modified Storm Water Utility Consideration and Potential Implementation

Timeline Due to COVID-19 Impacts

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O‘AHU STORM WATER UTILITY STUDY

Responding to COVID-19: Key Recommendations

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DFM will NOT introduce a bill to establish a storm water utility in 2020Two City Council actions would be required in the future:

(1) Establish a special fund within the City’s budget (no fiscal impact)(2) Establish a storm water fee & associated credit/hardship program (would have a fiscal impact)

DFM will proceed with four actions in response to public & Department direction identified in this Study:

1. Create an Island-Wide Storm Water Master Plan to guide investments2. Develop a detailed credit program available to all property owners3. Develop a relief/hardship plan for kūpuna, nonprofit land-owners, & low-income families4. Develop a Neighborhood Investment Plan to re-invest storm water fees in all O‘ahu

neighborhoods

NO CHANGE SINCE LAST MEETING

Community Engagement Updates

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O‘AHU STORM WATER UTILITY STUDY 12

Star-Bulletin & Midweek

ROUND 2 OUTREACH: Community Meeting Media

Spectrum PSA

Email Announcements to Neighborhood Board Members

Newsletter

Facebook Posts

O‘AHU STORM WATER UTILITY STUDY 13

ROUND 2 OUTREACH: May Metrics77 virtual meeting attendees1,200 website visits

~ 200 from newsletter~ 500 from social media

42,000 Facebook users reached per post4 regular posts; 4 video posts~ 350 website visits directly from video posts

**Many more reached by print ads and public service announcements.

O‘AHU STORM WATER UTILITY STUDY 14

NEW Website Resources

O‘AHU STORM WATER UTILITY STUDY 15

Round 2 Community Meeting Topics / PollingTopics Frequently Raised: Credits; Storm Water Management; Fee Calculation

31%

69%

ATTENDED MEETING IN ROUND 1?

No

Yes

23%

10%

23%

21%

15%

8%

LOCATION OF RESIDENCE

East Honolulu Central O‘ahuLeeward Town/South ShoreWindward Not O‘ahu

0%

5%

10%

15%

20%

25%

30%

35%

Someone Iknow told

me about it

Email fromthe City

Newspaperad

Newspaperarticle

Studywebsite

Facebook TV newsreport

HOW I HEARD ABOUT THIS MEETING

Draft Recommendations:Credits Program &

Approaches for Hardship Relief

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O‘AHU STORM WATER UTILITY STUDY

For Your Consideration:

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• Do you support the general approach to a credit program?

• Should all properties be eligible on “day one,” versus phasing in?

• How much should the Ordinance dictate, versus DFM’s credit manual?

• Do you agree with the 60% maximum for all credits?

• Do you agree with allowing NPDES & non-structural credits to be part of the 60% (or other) maximum?

• Should treating runoff from other sites, be allowed over and above the 60% (or other) maximum?

• Should activity-based payments be allowed over and above the 60% (or other) maximum?

• Are you comfortable with the proposed credit renewal requirements (1 yr for non-single family/3 years for single family)?

• Do you support establishing a grant/rebate program?

• Should policies for grants/rebates be set in the Ordinance, or by DFM (potentially with an advisory board)?

Oahu Storm Water Utility Study

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Financial Accommodations in Storm Water Utilities1. CREDIT: An ongoing reduction in a periodic utility fee reflecting the value to

the utility of storm water management actions implemented on a parcel/property

2. OTHER INCENTIVES: Do not affect ongoing fee• REBATE: A one-time reimbursement all or part of the cost of a storm water

improvement implemented on a parcel/property, or a specific action that benefits the storm water system

• GRANT: A payment or payments through an agreement supporting the implementation of storm water improvements on a parcel/property, or other actions that benefit the storm water system

3. ASSISTANCE PROGRAM: A financial accommodation intended to promote affordability of a utility service and the associated fee.

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Oahu Storm Water Utility Study

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Financial Accommodations in Storm Water Utilities:What is typically set by Ordinance (Council) versus Administrative Rule (adopted by DFM)

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ORDINANCE (Language set by City Council & adopted through legislative process; force of law)

RULE (Administrative procedure or manual adopted by DFM pursuant to the Ordinance)

CREDITS • Maximum % reduction on a SWU account holder’s annual bill

• Allowing additional credit for treating runoff from off-site property

• Grant DFM authority to adopt & administer Credit Manual

• Duration of credit & requirement to reapply

• Amount of credit granted for various BMPs and actions

• Calculation methods• Application procedures• Specific application or review requirements

for credits & renewals• Appeals process

HARDSHIP • Establish a hardship allowance within the SWU• Types of hardship allowance (i.e. household

income, non-profits’ finances, extraordinary circumstances)

• Grant DFM authority to administer

• Application & review procedures• Appeals process• Administrative coordination with LIHEAP,

other service providers

GRANTS/ INCENTIVES

• Enabling authority generally is not needed once a fee is established

• Establish program guidelines & annual budget allocations

• Could be role for citizen advisory board

REBATEA one-time payment for replacing a paved driveway

with permeable paver blocks*could become an ongoing credit upon application

CREDITAn ongoing

reduction in the monthly bill for a biofilter treating

parking lot runoff

A one-time payment for hosting a storm

water utility meeting

ASSISTANCEAn ongoing or temporary bill

reduction, approved annually, based on

the bill payer’s total annual revenue

Example: A Non-Residential 501(c)(3) Organization could be eligible for…

GRANTS

Payment(s) for managing a neighborhood tree planting program

Oahu Storm Water Utility Study

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Credit Program: Key Policy Recommendations• Eligibility: All properties are eligible for credits for installation and proper

maintenance of approved storm water management system(s):• Design based adopted storm water manual or DFM credit manual • Everyone must apply for credits

• Maximum: Up to 60% of the total fee for each property/SWU account, with the maximum granted only if applicants manage runoff from all impervious area on the property to the applicable standard (Water Quality Volume – next slide)

• Renewal: Credits require application and periodic renewal, and are valid for up to 3 years for residential and 1 year for non-residential (or with applicable cycle of required maintenance reports)

• Additional Credit: Consider additional credit above 60% maximum for properties treating runoff from impervious area outside parcel boundaries

Oahu Storm Water Utility Study

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What is the Water Quality Volume (WQV)?Why is it used to determine storm water fee credits?

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• About 85% of all rain storms on Oahu are less than 1 inch in 24 hours.• 1-inch of runoff from all impervious area is called the water quality

volume (WQV).• Equivalent WQVs:

• 1,000 square feet of impervious area = 623 gallons • Median home on Oahu = 3,830 SF impervious area = 2,390

gallons. • Capturing and treating the WQV is required for all new development.

Encouraging property owners to capture and treat the WQV is the goal of the credit program!

How does the “Water Quality Volume” (WQV) work?

• About 85% of all rain storms on Oahu are less than 1 inch in 24 hours.• 1-inch of runoff from all impervious area is called the water quality volume

(WQV).• Equivalent WQVs:

• 1,000 square feet of impervious area = 623 gallons • Median home on Oahu = 3,830 SF impervious area = 2,390 gallons.

WQV = Water Quality Volume= Required Volume for your site to receive maximum credit

Oahu Storm Water Utility Study

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Rain Gardens Porous Pavement

Rain Barrels

Tree Box Filters

Green Roofs

Credit-eligible storm water practices, including green infrastructure, are based on DFM’s Storm Water Manual

Credits are aligned to Storm Water BMP Guide For New And Redevelopment (DPP, 2017), or for single-family residential properties, to Green Infrastructure for Homeowners guide (DFM, 2012)

CREDITS: Reduce your storm water fee by helping reduce pollution and flooding – or by encouraging rechargeStep 1For each property calculate the WQV required for the site(the volume of runoff from 1 inch of rainfall).

Step 2Determine TV (treatment volume), the total volume that is captured by stormwater devices on the site.

WQV = Water Quality Volume = Required Volume for your site

to receive maximum credit

Step 3Determine credit for your site, as a ratio of total treatment volume provided to water quality volume required (TV/WQV) times the maximum credit allowed (60%).

TV = Treatment Volume= total volume treated by various

stormwater devices on your site

Green Roofs

Downspout disconnector Pier & PostRain Garden

Tree Box Filters Infiltration Trenches

Filtration PlantersRain Barrels Porous Pavement

Bioretention

Eligibility for Grants & Rebates

Policy Questions

• Which types of properties are eligible for grants/rebates for installing storm water management practices?

• Which types of storm water management practices are eligible for rebates?

Common Program Approaches• Rebates/grants for permeable driveways, rainwater harvesting,

tree planting, downspout disconnection, removing impervious surface, rain gardens, dry wells

• Some limit to residential, others allow for any account• **Some practices like trees, downspouts, or single rain barrels are NOT

converted to credits because of ongoing verification challenges!• More advanced programs: grants/cost share for non-residential

properties installing specific green infrastructure• Milwaukee Green Infrastructure Partnership Program• Detroit non-residential property assistance program

• Less common: rebates/grants for installing treatment & control associated with development (i.e. underground infiltration, manufactured treatment) – sometimes done for flood control in specific cases

• Challenges: administrative burden; initial & ongoing verification; appropriate design standards

D R A F TRecommended Credits for BMPs

*Any and allproperties are eligible for credits for implementing any of these practices

Design & classification based on City & County Manual

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D R A F T

Additional Credits and “activity based payments” for accounts other than single family or duplex

Policy question: Allow activity based payments over and above 60% credit max?

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D R A F T

Some but not all practices are eligible for both a rebate/grant AND an ongoing credit

Policy decision on where to put investment & verification efforts

Green RoofsTree Box Filters

Rain Barrels

Porous Pavement

CREDITS: Reduce your storm water fee by helping reduce pollution and flooding – or by encouraging recharge

Step 1For each property calculate the WQV required for the site (the volume of runoff from 1 inch of rainfall).

Step 2Determine TV (treatment volume), the total volume that is captured by stormwater devices on the site.

Step 3Determine credit for your site, as a ratio of total treatment volume provided to water quality volume required (TV/WQV) times the maximum credit allowed (60%).

Step 4For non-residential and multifamily residential, add non-structural credits for approved practices, up to the maximum credit allowed (60%).

TV = Treatment Volume= total volume treated by various

stormwater devices on your siteWQV = Water Quality Volume

= Required Volume for your siteto receive maximum credit

Downspout disconnector Pier & Post

Rain Garden

InfiltrationTrenches

Filtration Planters

Bioretention

O‘AHU STORM WATER UTILITY STUDY

For Your Consideration:

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• Do you support the general approach to a credit program?

• Should all properties be eligible on “day one,” versus phasing in?

• How much should the Ordinance dictate, versus DFM’s credit manual?

• Do you agree with the 60% maximum for all credits?

• Do you agree with allowing NPDES & non-structural credits to be part of the 60% (or other) maximum?

• Should treating runoff from other sites, be allowed over and above the 60% (or other) maximum?

• Should activity-based payments be allowed over and above the 60% (or other) maximum?

• Are you comfortable with the proposed credit renewal requirements (1 yr for non-single family/3 years for single family)?

• Do you support establishing a grant/rebate program?

• Should policies for grants/rebates be set in the Ordinance, or by DFM (potentially with an advisory board)?

Exemptions & Affordability/Hardship Considerations

O‘AHU STORM WATER UTILITY STUDY

For Your Consideration:

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• Do you support the concept of a hardship program with a fixed monthly base charge for residential accounts, based on LIHEAP/150% of poverty qualification?

• Do you support the concept of a hardship program with a graduated reduction for non-profits that are land owning/leasing & paying utilities, based on demonstrated annual revenue?

• Do you support a hardship program for extenuating and ongoing financial hardship (i.e. combined fees >4% of income)?

• Do you support the proposal to limit exemptions to properties with <300 SF impervious cover and public roads?

Oahu Storm Water Utility Study

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Exemptions vs. Hardship Accommodations

Exemptions: “Your property is contributing to the total cost of storm water program management, but you will not be required to pay your proportional share, and others’ fees will be higher to cover the portion

that you do not pay.”vs.

Hardship Accommodations: Adjusting the applicable fee to ensure affordability for the rate payer

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Understanding Affordability: Water Environment Federation Guidance

• Affordability: “The rate(s) that most utility customers can pay without unusual financial hardship or significantly downgrading their lifestyle below generally accepted minimum standards for health and welfare.”

• “Affordability” is a subjective but broadly applicable concept:• Addresses low-income households, but also can encompass disadvantaged or

financially stressed organizations and businesses• Can be based on income, but also extraordinary circumstances: Ongoing medical bills,

high property value with low cash income, temporary hardship, etc.

• Challenge for any utility: How to evaluate affordability, and how to address it

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Oahu Storm Water Utility Study

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Common Features of SWU Hardship/ Affordability• A hardship reduction is typically made available• **Most common is a reduction or fixed charge based on household

income relative to the County or area-wide median• May include accommodation for seniors• Annual income verification process is based on (or even managed by)

eligibility for other local programs (e.g. Low-Income Home Energy Assistance Program/LIHEAP, other local assistance programs)

• Some provide temporary relief for unemployment• Montgomery County, MD – includes hardship reduction for non-profits

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Oahu Storm Water Utility Study

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Types of Affordability Assistance• Fixed dollar amount or percent-of-bill discount, with or without a maximum• Discount graduated by income level• Crisis vouchers• Advance payment discounts• Bill forgiveness/write-offs• “Lifeline” or basic support option (BWS “Tier 1”)• Area-based rates• Payment plans• “Bartering” – bartered labor for ratepayers who would otherwise default

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Oahu Storm Water Utility Study

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Defining “Affordability”

• NO consistent national guidance or regulatory policy, from EPA or elsewhere

• Various EPA guidance documents: “Affordability” for potable water service could be 1.5% to 3% of median household income with a “general target” of 2.5%

• AWWA/WERF: Combined total of water/wastewater/stormwater utility bills should not exceed 4%

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Oahu’s Utility Costs & Affordability

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

Single Family Multi-Family (Per Unit)

HYPOTHETICAL Total Water Utility Charge

Base Sewer Base Water Tier 1 Basic Consumption Storm Water

Water Service = Base + Tier 1

Water Service = Base + Tier 1

Storm Water fees @ $4.75 - $4.83 per 1,000

SF Impervious Area would TYPICALLY

represent ROUGHLY 9.3% of a total Single Family Water-Sewer-Storm Water monthly

bill, and 6.6% for a total per-unit Multi-Family bill

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2019 FEDERAL POVERTY GUIDELINES

2020 Hawaii LIHEAP Income Limits

Appleseed Study 2015 -Living Wage Level

Household Size 48 & DC Hawaii 125% Monthly 150% Monthly Honolulu Rural1 $12,490 $14,380 $17,975 $1,498 $21,570 $1,7982 $16,910 $19,460 $24,325 $2,027 $29,190 $2,4333 $21,330 $24,540 $30,675 $2,556 $36,810 $3,0684 $25,750 $29,620 $37,025 $3,085 $44,430 $3,703 $7,841 $6,3775 $30,170 $34,700 $43,375 $3,615 $52,050 $4,3386 $34,590 $39,780 $49,725 $4,144 $59,670 $4,9737 $39,010 $44,860 $56,075 $4,673 $67,290 $5,6088 $43,430 $49,940 $62,425 $5,202 $74,910 $6,243

Total Water Utilities as % of Monthly Income

125% of Poverty

150% of Poverty:

Sewer Water Stormwater Total Total % SW % Total % SW %1 person MF $55 $10 $5.34 $71 3.5% 0.3% 2.9% 0.2%1 person SF $78 $11 $11.88 $100 6.7% 0.8% 5.6% 0.7%2 person MF $55 $10 $5.34 $71 2.3% 0.2% 1.9% 0.1%2 person SF $78 $11 $11.88 $100 4.9% 0.6% 4.1% 0.5%4 person MF $55 $10 $5.34 $71 2.3% 0.2% 1.9% 0.1%4 person SF $78 $11 $11.88 $100 3.2% 0.4% 2.7% 0.3%*SF = 8-tier, Tier 3 charge ($11.88/month)*MF = 8-tier, Tier 5 charge/4 ($21.38/month/4 = $5.34/month)

Oahu Storm Water Utility Study

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Hardship/ Affordability: Draft Recommendations1. Base Charge of the Tier 1 cost: Households participating in LIHEAP or other

program and verified at or below 150% of US Poverty Level • Annual verification is needed; LIHEAP qualification is recommended

2. Graduated reduction in fee: • 501(c)(3) entities that are Land-Owning or leasing & responsible for utility bills • SW fee reduction up to a maximum to 0.2% of all verified annual income to the 501(c)(3)

operating on the site (n.b. SW fee would be 0.2% of income for multi-family households at 125% of poverty)

• Applies to individual parishes, not a diocese or other umbrella organization • Annual verification

3. Other hardship: • Evidence of ongoing hardship where total of water, wastewater & stormwater exceeds

3% or 4% of annual household income• Option for temporary relief through payment plans, bartering?• Discussion with ENV (runs away)

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Oahu Storm Water Utility Study

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Exemptions: Draft Policy Recommendations

Exemptions are recommended O N L Y for:• Vacant property with no measurable impervious area (IA). • Properties with impervious area less than 300 square feet (SF).• Public rights-of-way, including all public roads, Federal or State

Highways, and *local roads not part of a privately-owned parcel.

*Road classification/status issues to be discussed in July

O‘AHU STORM WATER UTILITY STUDY

For Your Consideration:

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• Do you support the concept of a hardship program with a fixed monthly base charge for residential accounts, based on LIHEAP/150% of poverty qualification?

• Do you support the concept of a hardship program with a graduated reduction for non-profits that are land owning/leasing & paying utilities, based on demonstrated annual revenue?

• Do you support a hardship program for extenuating and ongoing financial hardship (i.e. combined fees >4% of income)?

• Do you support the proposal to limit exemptions to properties with <300 SF impervious cover and public roads?

Wrap Up

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Oahu Storm Water Utility Study

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Wrap Up• Email additional input to Randall (Friday, June 19th would be

helpful)• Upcoming Stakeholder Advisory Group meetings:

- Virtual Monday, July 13, 2020, 4:00 – 6:30 pm• Continued discussion of credits, grants/rebates, and hardship• Approach for Storm Water Master Plan• Island-wide Storm Water Investments• Advisory Group Discussion of Revenue Neutrality

- Virtual? Monday, August 24, 2020, 4:00 – 6:30 pm

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Mahalo