1. © Amec Foster Wheeler 2016. Business Analysis for Canal Management Principles, Experience and Key Decision Points

2. Stormwater Fee for Service Allocation of Cost based on Burden Stormwater Utility (user fees) have been used for many years in Florida and across the US and Canada. The concept is to allocate the cost of service: to address the need for infrastructure management created by the ‘burden’ on drainage and open water systems because of urbanization. Commonly Used Rate Structure: One billing unit per single family detached residential home with all other property charged on the basis of impervious area Implemented in Monroe County by: Marathon: $120 annually per billing unit. “In the 30 year capital expenditure plan there is no plan for further increases of this fee.” Key West: Rate is $7.35/month per billing unit 2© Amec Foster Wheeler 2016.

3. Any Single Family Detached House One Billing Unit Properties Other Than SFD Lots Based on Impervious Area in a Billing Unit 1 Billing Unit 2 Billing Unit 3 Billing Unit Billing model – one approach: Fixed rate for all single family residential detached.

4. Funding for Canal Management - Florida Level of funding is consistent with additional support from grants or bonds for major rehabilitation. Funding sources are primarily fees for service, charged across the jurisdiction for the basic level of service with additional support in partnerships, state grants, loans, and general fund. 4© Amec Foster Wheeler 2016.

5. Examples around the State Ft. LauderdaleCocoa BeachCape Coral Miles of Canals Maintained 65 miles of canals Serves 12,500 properties 17 miles of channels 9 miles of residential canals 222 miles of saltwater canals, 156 miles of freshwater canals, and 31 miles of shoreline Public Access to Canals YES Revenue- Users Fees YES Revenue – General Fund YES $2M from Brevard Grants for new program NO Services – Dredging YES Services – Routine Maintenance YESPrimarily dredgingYES TMDL NO © Amec Foster Wheeler 2016.5

6. Principles Used by Other FL Communities Managing Residential Canals  Canals are Public Waters:  Canals are managed as public waters (i.e., waters of the county or the city), with open access  Protect Water Quality:  Dumping of debris and other potential pollutants into the canals is prohibited.  Tree trimming when excessive overhang occurs.  Vegetation control and removal to reduce stagnation.  Maintain Infrastructure Integrity by:  Dredging to maintain open, flowing channels.  Debris removal using skimmers, for example, to remove trash.  Investigation of complaints and enforcement.  Bridge repair.  Engage the Public:  Public education and outreach is consistent and on-going.  Coordination of volunteers for cleaning/debris removal is key to local canal protection. 6© Amec Foster Wheeler 2016.

7.  Engage the affected public.  Build a compelling case.  Determine the customer being served.  Clarify all the roles and responsibilities  Define the funding methodology © Amec Foster Wheeler 2016.7 Achieve Long Term Funding Stability Define and Establish Level and Extent of Service Who?What?When?How?

8. Integrated Approach to Funding Strategy  Private/Public Partnership  Homeowner funding participation - voluntary or required?  What % do the residents pay? Matching funds moves the canal up in prioritization for selection for restoration.  Operation and maintenance after 2 years  MOU needed with partners?  County oversight of canal conditions?  Long term Strategy  Build a solid baseline of cash flow – minimum annual investment  Supplement with grants and loans  Set level and extent of service