Water, Sewer and Stormwater General Facilities & Connection Charges
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1 City of Snoqualmie Water, Sewer and Stormwater General Facilities & Connection Charges City Council Meeting March 9, 2015 Presented by: Sergey Tarasov, Project Manager
2 Presentation Overview New customer charges Connection charges General Facilities Charges (GFCs) overview GFC Methodology GFC Calculation Survey Questions/ discussion Page 2
3 New Customer Charges Connection Charges (physical connection) existing charge The cost to connect to the municipal water supply system and/or The cost to connect to the City s sewer system No current connection charges for the storm water or irrigation utilities General Facilities Charge GFC- (buy-in fee) new charge Imposed on new development as a condition of service represents a prorated share of investment in the system infrastructure related to providing system capacity to a new customer Page 3
4 Current Connection Charges Water utility (last updated in 2002) Meter Inside City Outside City 3/4" $ 2,150 $ 2,800 1" 2,300 3, " 3,300 4,300 2" 3,700 4,800 Sewer utility (last updated in 2001) $2,500 per single residential unit Connection charges waived for the Snoqualmie Ridge Planning Area Page 4
5 Recommended Connection Charges Water utility (last updated in 2002) Meter Existing Proposed (Plus Tax) Inside City Outside City Inside City Outside City 3/4" $ 2,150 $ 2,800 $ 5,233 $ 5,883 1" 2,300 3,000 5,240 5, " 3,300 4,300 6,764 7,764 2" 3,700 4,800 6,915 8,015 Sewer utility (last updated in 2001) Actual cost to install the connection (due to depth of sewer) Stormwater utility (no current charges) < or = to 8 deep: $3,361 > 8 deep: Actual cost to install the connection Connection charges waived for the Snoqualmie Ridge Planning Area Page 5
6 GFC Overview One time charge imposed on new development or expanded connection to system as a condition of service Represents a prorated share of the cost of providing system capacity Offset growth related costs that would not be necessary in absence of customer based growth Charge calculated based on intent and structure of Revised Code of Washington (RCW ) Based on cost of system Proportionate share of capital investment Page 6
7 GFC Overview (continued) GFCs consist of two parts: Existing Cost Basis is intended to recognize the current ratepayers net investment in the original cost of the non-donated system Future Cost Basis is intended to include future facilities needed to serve growth, as well as to provide for regulatory system improvements Page 7
8 GFC Methodology Existing Cost Basis: Existing assets (original cost as of the end of 2012) Less: contributions (developer donations/ grants) (CIAC) Less: net debt principal Less: meters & services assets (water only) Plus: interest (maximum 10 years) Future Cost Basis: Future capital (today s dollars) Less: repair & replacement Page 8
9 GFC Methodology: Calculation EXISTING COST BASIS CURRENT & FUTURE CUSTOMERS FUTURE COST BASIS + = FUTURE CUSTOMERS GFC Page 9
10 GFC Calculation: Water Meter MCE Factor /4" 1.00 $ 5,269 1" , " ,563 2" ,101 3" ,689 4" ,814 6" ,629 Notes: - GFCs can be escalated annually with an accredited escalation index such as the Engineering News Record (ENR) - GFC is on a per Meter Capacity Equivalent (MCE) basis - Flow factors based on American Water Works Association (AWWA) Principles of Water Rates, Fees and Charges M1 Manual - Does not apply to Snoqualmie Ridge connections Page 10
11 GFC Calculation: Sewer SEWER GFC (PER ERU) $ 6,859 Notes: - GFCs can be escalated annually with an accredited escalation index such as the Engineering News Record (ENR) - GFC is on a per Equivalent Residential Unit (ERU) basis 138gpd - Does not apply to Snoqualmie Ridge connections Page 11
12 GFC Calculation: Stormwater STORMWATER GFC (PER ESU) $ 350 Notes: - GFCs can be escalated annually with an accredited escalation index such as the Engineering News Record (ENR) - GFC is on a per Equivalent Service Unit (ESU) basis 2,600 square feet of impervious area - Does not apply to Snoqualmie Ridge connections Page 12
13 Summary City currently does not impose a GFC for new customers connecting to the Water, Sewer and Stormwater systems GFC analysis indicates the City can charge up to: Water: $5,269 per MCE Sewer: $6,859 per ERU Stormwater: $350 per ESU Proposed GFCs are the maximum allowable charges City can choose to set the GFCs below the maximum level Share not recovered through GFCs has to be covered by rates Calculated charges are not applicable to Snoqualmie Ridge development Page 13
14 Proposed Cost of a New Connection Description Cost Water (3/4" Meter) Connection Charge (Inside City) $ 5,233 General Facilities Charge 5,269 Sewer Connection Charge own crew General Facilities Charge (per ERU) 6,859 Stormwater Connection Charge own crew General Facilities Charge (per ESU) 350 TOTAL COST $ 17,711 Page 14
15 GFC Survey Notes: -Assume ¾ meters if available -City of Redmond assumes a medium size home charge. -City of Issaquah and Redmond include a Regional Capital Facilities Charges Notes: -City of Redmond and Issaquah include a King County Treatment charge assuming a one time payment instead of the monthly installments for 15 years -Assumes ¾ meter if applicable Notes: -City of Duvall GFC is per gross acre foot assumed 6 lots per gross acre foot -City of Redmond downtown sub-basin charge is $5,435 -City of Redmond Overlake sub-basin charge is $8,539 Page 15
16 GFC Survey: Combined Water Notes:-Assume ¾ meters if available -City of Redmond assumes a medium size home charge. -City of Issaquah and Redmond include a Regional Capital Facilities Charges Storm Notes: -City of Duvall GFC is per gross acre foot assumed 6 lots per gross acre foot -City of Redmond downtown sub-basin charge is $5,435 -City of Redmond Overlake sub-basin charge is $8,539 Sewer Note: -City of Redmond and Issaquah include a King County Treatment charge assuming a one time payment instead of the monthly installments for 15 years -Assumes ¾ meter if applicable Page 16
17 Next Steps Incorporate feedback Adopt proposed GFCs for all utilities Adopt updated City connection charges Prepare a ordinance establishing the proposed GFCs and connection charges Page 17
18 QUESTIONS? Page 18
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