Council adopts stormwater master plan, directs rate increases and seeks grant for Mill Lake pump project

The City of Orange City council on June 24 adopted a 10-year stormwater master plan, approved a consultant's stormwater rate study and authorized staff to apply for hazard-mitigation grant funding to help pay the city's share of the Mill Lake/Industrial Drive repump project.

The master plan, prepared by Pegasus Engineering, lays out a ten-year capital project list and staffing needs that staff said will form the basis of a stormwater rate study and rate increase process. Bilal Iftikhar, public services director, told the council the plan is "the basis of our rate study, and that will be the part of the rate study moving forward."

John Peters, engineering services director, told the council staff ranked the Mill Lake/Industrial Drive infrastructure project first in Volusia County's prioritization after earlier federal funding estimates were cut. Peters described the proposed work as a large repump system to move water away from the industrial corridor: "By comparison, right now, we have a 10-inch pump at Mill Lake and a 10-inch force main. During Milton, it took 21 days to get the water down. By comparison, the 36-inch system will take 21 hours," Peters said. He asked the council to authorize filing an application to the state Hazard Mitigation Grant Program so the city can pursue an expected $1,200,000 cost-share award toward the larger project.

The council also adopted a rate study prepared for the city. Staff summarized the schedule in the study and the proposed increases: the current monthly stormwater rate is $17.06; the proposal would raise it to $23.00 next year (an increase of $5.94), then by about $4.00 the following year and smaller increases thereafter. Staff noted the study also includes an automatic escalation (CPI plus 1%) if the city does not return to council for new adjustments after the study period.

Councilmembers and staff flagged a minor correction in the study materials: one table in the packet labeled residential billing on 5 EBUs should read 4 EBUs. Staff said that was a scrivener's error in the packet and confirmed the study is based on 4 EBUs.

Council voted to adopt the stormwater master plan, adopt the rate study and authorize the city manager to seek the Hazard Mitigation Grant application. Passing the resolutions allows staff to start the formal rate increase process and to submit the grant paperwork needed to secure the federal/state disaster funding.

The actions will now move to implementation steps: staff said the adopted capital list will be used in the rate study process and applications for grant funding will be completed with engineering consultant support. The Mill Lake pumping concept remains subject to final grant awards and design work.