Transcript Document

C-15
Stormwater Utility & Response Team:
A Small Business Approach
Stormwater Utility
Demand
Rutgers University was contracted by the
Meadowlands Commission to determine the
feasibility of a Stormwater Utility. The Stormwater
Utility Feasibility Report was issued in July 2007.
They are rapidly becoming a necessity in New Jersey
for managing aging infrastructure and minimizing the
impact of vast impervious surfaces. The creation of
these utilities will result in charging fees to residents
and business owners to support better stormwater
management that will reduce flooding and improve
water quality.
Plan for Small Business
This business plan examines the opportunities of the
Stormwater Response Team to either market their services
to individual property owners or work directly for the
Stormwater Utility. The differences between these two
approaches are examined below.
Working Directly with residents and business
ownersServices: To help private owners reduce their contribution
to flooding for a reduction in their stormwater utility fee
Marketing: Strategy should focus on fee reduction and
increased business revenue and improved quality of life
Functions
Working Under the Utility
The Stormwater Utilitiy Feasibility Report describes
three levels of responsibility that can be achieved by
a utility and its expected cost based on level of
involvement.
•Scenario 1: Operation & Maintenance (O+M) only
- $1.8M
•Scenario 2: Maintenance & Critical Improvements
“Minor Copex” - $4.0M (Scenario 1 & replacement
of major water control structure per year)
•Scenario 3: Maintenance & Critical Improvements
Plus Plan “Major Copex” - $6.7M (Scenarios 1 and
2
& complete implementation of Floodplain
Management Plan over a ten-year period.
Services: To conduct audits of businesses within areas
known to be susceptible to flooding. The utility uses their
fees to pay the Response Team to examine opportunities
for installing stromwater management.
Marketing: Strategy should focus on how working with firm
can only benefit users by improving conditions of their
property and surrounding work area. Should also include
distribution of educational material to inform community of
stormater issues and proactive solutions
Cost
The user fee of the utility is based on the amount of
impervious surface owned by the user. It turns out to
be $31.06/1000ft2 per year. The Feasibility Study
states that the minimum allowable fee in order to
complete basic O+M is $8.44/1000ft2 per year.
Structural BMPs cost more than this to install and
design. Even with fee reduction, the real economic
incentive to encourage owners to be proactive is the
increase in business revenue they will receive from
reduction of flooding.
Cost for both approaches is the same and summarized in
table 1:
Staff
Quantity
Engineers
2
Secretary
1
Total Direct Costs:
Overhead (30%):
Profit (30%)
TOTAL ANNUAL BUDGET:
Salary
$60,000
$40,000
Table 1: Estimate of Operating Cost for Business
Total
$120,000
$40,000
$160,000
$48,000
$48,000
$256,000