HomeMy WebLinkAboutR-1997-083 1997 Wastewater Connection ChargeRESOLUTION NO. R-97- 83
A RESOLUTION Adopting the 1997 Wastewater Connection Charge
Study for the City of Yakima, Washington.
WHEREAS, a financing plan is one element necessary under RCW
36.70A.070(3) to provide for the wastewater needs of the area for the health,
safety and well being of the people, as well as complying with State and
Federal environmental laws and regulations; and
WHEREAS, the City of Yakima is required to identify the financial plan
necessary to implement the projected growth capital needs of its wastewater
service area and this is accomplished in the attached document titled "1997
Wastewater Connection Charge Program", hereafter known as the "Study";
and
WHEREAS, the City of Yakima is authorized to require, operate,
manage and fix the price for service from a system of sewerage under RCW
35.67.020, RCW 35.92.020 and Article IX of the Charter of the City of Yakima;
and
WHEREAS, the City Council, through deliberation, has made changes
in and additions to such Study, all of which are incorporated into such Study
and Appendices as are adopted by this Resolution; and
WHEREAS, the City Council finds and determines that adoption of the
Study will promote the goals of the Growth Management Act, RCW Chapter
36.70A, that the conclusions of the Study are fair, just and reasonable, and that
adoption of the Study will serve the public interest; now therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The document entitled "1997 Wastewater Connection Charge Study",
dated May 20, 1997 a true copy of which Study and Appendices are on file in
the City Clerk's Office and are incorporated by reference herein, is hereby
adopted by the City of Yakima.
ADOPTED BY THE CITY COUNCIL this 3 day of J (bn , 1997.
ATTEST:
CITY CLERK
Lynn Buchannan
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ITEM TITLE:
SUBMI'i-i'ED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
(914
Item No.
For Meeting O/
Consideration of Resolution Adopting 1997 Wastewater Connection
Charge Study and Approving Ordinance Establishing Wastewater
Connection Rates and Charges
Glenn Rice, ACM
Chris Waarvick, Wastewater Superintendent
Doug Mayo, Project Engineer
Fred French, City Engineer
John Hanson, Finance Director
CONTACT PERSON/TELEPHONE: Chris Waarvick /575-6078
SUMMARY EXPLANATION:
Staff respectfully requests City Council adopt, by attached resolution, the 1997 Wastewater
Connection Charge Study and approve the attached ordinance establishing wastewater
connection rates and charges.
The adopted 1994 Cost of Service and Rate Study proposed and, subsequent to Council
approval in December of 1994, implemented a rate setting philosophy which reduced
existing City Retail customer subsidies of other user classes. This study continues that
philosophy by assigning, where appropriate, the capital costs of necessary system growth to
new customers.
(...continued...)
Resolution X Ordinance X Contract _Other (Specify) 1997 Wastewater Connection
Charge Study, Previous Study Transmittals, and Statewide Charge Comparisons
Funding Source Revenues from this program would be allocated to Wastewater
Division capital reserve funds
APPROVED FOR S Aj
City Manager
STAFF RECOMMENDATION:
Staff respectfully requests City Council adopt, by attached resolution, the 1997 Wastewater
Connection Charge Study and approve the attached ordinance establishing wastewater
connection rates and charges.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION:
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May 8, 1997 cw
This proposal consolidates the existing Capital Cost Recovery Charge and Sewer
Connection Charge systems, presently codified in the Yakima Municipal Code, into a
single charge based on 1) the volume of wastewater estimated to be generated by a new
connection, and 2) the area of the lot connecting the wastewater system. Rates have beer
established for each of three geographical zones.
The intent of this proposal is to ensure that new customers shoulder a more equitable
share of the cost of the system and reduce City retail customer's current and future subsidy
burden. Those revenues not sufficiently recovered from a connection charge program will
ultimately come from another source -- monthly City user rates. City Retail rate payers
have borne the historic burden of the financial under -performance of the existing CCRC
and Connection Charge systems.
In a previous transmittal memorandum, dated June 1, 1995, staff estimated, for
comparison purposes only, that City Retail rates would need to be increased 15 percent (or
$1,045,000) to recover the same annual revenue which this program has identified it
would generate given connection trends at that time. We believe a rate increase of this
size for new growth would not be acceptable to our existing customers. The conclusion,
therefore, is that without this revised program to recover the cost of new growth, we will
not have sufficient resources to build the pipe and treatment facilities brought about by
growth.
Current City policy directs that there be minimal subsidy of future growth by the citizens of
Yakima. While we pursue funding for capital needs, these sources are very limited and
uses restricted. Accordingly, growth must find a way to pay for itself.
Since this program was last transmitted to you in June of 1995, the following adjustment
have been incorporated.
1) Rates have been adjusted from 1995 to 1997 based upon the January Seattle
Construction Cost Index (CCI). See attached "Proposed Connection Charge" table.
2) A program has been proposed which allows the City to purchase the Reimbursable
Agreement rights from a developer who installs pipe which ultimately serves more than
their immediate development (discussed in Chapter 3).
Previous Wastewater Connection Charge proposal transmittals to City Council and the
City Mangers Office have included estimated connection charges for discussion purposes.
This following provides the latest estimates of average connection charges for the three
zones when the developer constructs the collection system.
ESTIMATED AVERAGE
ZONE LOT SIZE 1997 CHARGE
One (City Limits) 10,000 sq. feet $1,350
Two (Current Urban Area) 14,000 sq. feet $4,700
Three (Urban Reserve) 18,000 sq. feet $7,500
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The dollar amounts shown above will change over time with construction cost indices
(CCI), actual costs of facilities projects, and any new capital costs imposed by federal and
state mandates. Copies of previous transmittal memorandums are included in the back of
this report.
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May 8, 1997 cw
PROPOSED
Wastewater Connection Charge
Treatment Faci
ity Charge
(per water meter size)
1997
Zone 1
Zone 2
Zone 3
Meter Size
SFD (3/4")
$771.31
$1,459.81
$2,780.23
Duplex (3/4")
$1,156.97
$2,189.72
$4,170.35
Triplex (3/4")
$1,542.62
$2,919.62
$5,560.46
(non -res) 3/4"
$491.91
$567.68
$1,081.16
1"
$1,770.86
$2,043.66
$3,892.18
1.5"
$5,312.59
$6,130.98
$11,676.55
2'
$8,264.04
$9,537.09
$18,163.52
3"
$10,330.04
$11,921.36
$22,704.40
4'
$13,281.49
$15,327.46
$29,191.38
6*
$17,708.65
$20,436.61
$38,921.84
1998
3.00%
increase
Meter Size
SFD (3/4')
$794.45
$1,503.60
$2,863.64
Duplex (3/4')
$1,191.67
$2,255.41
$4,295.46
Triplex (3/4')
$1,588.90
$3,007.21
$5,727.27
(non -res) 3/4'
$506.66
$584.71
$1,113.60
1'
$1,823.99
$2,104.97
$4,008.95
1.5'
$5,471.97
$6,314.91
$12,026.85
2"
$8,511.96
$9,823.20
$18,708.43
3"
$10,639.95
$12,279.00
$23,385.54
4'
$13,679.93
$15,787.28
$30,067.12
6'
$18,239.91
$21,049.71
$40,089.49
1999
3.00%
increase
Meter Size
SFD (3/4")
$818.28
$1,548.71
$2,949.55
Duplex (3/4")
$1,227.42
$2,323.07
$4,424.32
Triplex (3/4")
$1,636.57
$3,097.42
$5,899.09
(non -res) 3/4"
$521.86
$602.26
$1,147.00
1'
$1,878.71
$2,168.12
$4,129.22
1.5"
$5,636.13
$6,504.36
$12,387.65
2'
$8,767.32
$10,117.89
$19,269.68
3"
$10,959.14
$12,647.37
$24,087.10
4'
$14,090.33
$16,260.90
$30,969.13
6"
$18,787.10
$21,681.20
$41,292.18
Base Trunk/Interceptor Lines Charge
(per sf)
Zone 1
Zone 2
Zone 3
1997
$0.032
$0.171
$0.188
1998
$0.033
$0.176
$0.194
1999
$0.034
$0.181
$0.200
Base Collection Pipe Charge
(per sf)
Zone 1
Zone 2
Zone 3
1997
$0.088
$0.280
$0.375
1998
$0.091
$0.288
$0.386
1999
$0.094
$0.297
$0.398
4/3/97
MEMORANDUM
May 16, 1997
TO: Honorable Mayor, Members of City Council and City
Manager
FROM: Chris Waarvick, Wastewater Manager
REGARDING: Wastewater Connection Charge Study -- Supplemental
Appendix
The Wastewater Connection Charge Study ("Study") has been
prepared and coupled with appropriate legislation for City Council
consideration to adopt the Study and enact the fees and charges.
This supplemental appendix documents changes directed by City
Council through deliberation and provides clarification of intent of
the Study where appropriate.
Initial Destination of Connection Fees into 473 Fund
When the Study was initially drafted in 1995, staff intended that
fees and charges from the Wastewater Connection Charge Program be
placed directly into the 476 (Trunkage) and 478 (Treatment Facility)
Capital Funds. Since that time, both legal and bond council have
advised that since the repayment of existing and future bonds and
loans are pledged from Fund 473, that it is to the City's advantage to
channel all revenue through the operating fund. Appropriate
transfers would then be made to the capital funds.
Application of City Utility Tax
In the Wastewater Connection Charge Study ("Study"), the City's
Utility Tax was originally charged to the following elements of the
charge: treatment, trunkage, collection, City Administration, and
engineering. It has been requested by members of City Council that
the City Utility Tax be removed from City Administration and
Engineering elements of the charge. This has been done.
Applicability of Proposed Wastewater Connection Charge
As a general rule, if a connection charge has been paid for
wastewater service, the cost obligation is satisfied. However, if the
usage changes from residential to commercial, for example, and a
larger water meter is needed, an additional charge will be assessed
reflecting the difference from what was paid to what the new meter
size would pay at the time of the change in use. Cost obligations
satisfied under the older Capital Cost Recovery Charge are complete
and no further charges will be assessed. Capital Cost Recovery
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May 16, 1997 cw
nMarge obligations which have been rol„e,
1.1%.1%el 1.11ut;u1 u nnnnnaa cy
permit is granted (actual hook-up to the sewer system) will have one
year to pay at the old rate, then if not paid, will be assessed the
proposed Wastewater Connection Charge Study rate determined at
the time of connection. Those currently within LIDs (Local
Improvement Districts) may have exceptions as discussed under
7.50.(30 of the Wastewater Connection Charge proposed ordinance_
Statewide Comparison Table
Accompanying the Wastewater Connection Charge Study is a
summary of connection charges found across the State compiled by
A ssoc;at;on Washington Cities others. Each community has
the ISJJVA�IFJS SS`J!t of Washington Cities and sew eaeeaa vv...... a.....J .....,
its own unique set of financial circumstances, goals and policies with
regards to utility services which greatly affect the connection charge.
Many, if not most, of the communities, do not allow service without
immediate annexation. Thus to read the table in proper perspective
to this annexation policy, one would ignore the Zone 2 and 3 costs for
Yakima and look only at Zone 1. Yakima allows for sewer service
outside its corporate limits with the commensurate promise of some
amenable future annexation. Some communities assess an additional
monthly capital charge in addition to or in lieu of the one time
connection charge. Many communities have connection charges for
wastewater services; which was the point of including the
information. Terrace Heights Sewer District charges $2,000 per
connection.
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May 16, 1997 cw