HomeMy WebLinkAboutR-1998-144 Wastewater Connection Charge Study UpdateRESOLUTION NO. R-98- 14 4
A RESOLUTION Adopting the Revised Wastewater Connection Charge Study Update, dated
October 1998, 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 "Revised Wastewater Connection Charge Study
Update", 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 "Revised Wastewater Connection Charge Study Update", dated
October 1998, 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 • h d4t-of-OetebeG, 1998
ATTEST:
City Clerk
Mayor John Puccinelli
REVISED
WASTEWATER CONNECTION CHARGE STUDY UPDATE
OCTOBER 1998
Includes Revisions due to new NPDES Permit,
recently adopted GMA Comprehensive Plan,
and updated data.
Also addresses County Concerns.
jntroduction:
The Wastewater Treatment Facility currently has capacity committed
to serve four areas: City of Yakima, Yakima Urban Area, Terrace
Heights Sewer District, and the City of Union Gap.
Under City policy, prior to June 1997, new connections to the
wastewater system, within Yakima's service area, were faced with a
Sewer Connection Charge (SCC) which was applied toward the cost of
the collection system (<12" Dia.) and a Capital Cost Recovery Charge
(CCRC) which was applied toward a limited portion of the historic
construction cost of the Treatment Facility and the Trunks/
Interceptors. These charges varied from area to area within the City
and surrounding unincorporated area.
On July 3, 1997, a revised Wastewater Connection Fee program was
instituted by Ordinance # 97-38. Circumstances since that time have
brought the City to closely review the new program charges. That
review has brought into the charge analysis consideration of:
updated data (previous data was through 1995), impacts of the City's
new NPDES permit (October 1997), and consideration of the adopted
GMA Comprehensive Plan (1997).
The City has also met several times with County representatives to
discuss their concerns which have been given due consideration.
The following report incorporates the results of this review into the
previously adopted study and rate schedule by making modifications
deemed appropriate by staff in consultation with expert technical
and legal counsel.
Current State statutes authorize the City to impose two types of
charges upon new connectors to the wastewater system.
Revised Connection Charge Update
Page 1
September 16, 1998
1) An "equitable share" of the cost of the existing system.
RCW 35.92.025 authorizes a charge designed to make connecting
property owners:
bear their equitable share of the cost of [the sewerage] system.
The equitable share may include interest charges from the date
of construction of the ... system until the connection, or for a
period not to exceed ten years, at a rate commensurate with
the rate of interest applicable to the city .
2) The "actual cost" of connecting the new customers.
Under RCW 35.6 7.020, 35.5 7.190, and 35.92.020, a city has full
_L although
�L be jurisdiction to fix sewer rates and charges, aluwugh ratesmust be
uniform for each class of service; in classifying, the city may
consider, among other factors, differences in capital contributions
made to the system and location (within or outside the City limits).
All actual costs, including the cost of adding treatment and
transmission capacity to serve growth, may be included in this
charge.
Staff proposed, in the June 1997 Study, that the previous system of
calculating and applying the CCRC and SCC charges be updated to
more precisely match what is allowed by the above mentioned
statutes. The proposal to revise the system for determining utility
connection charges expanded the concept implemented in the
previous C.C.R.C. to include cost recovery for expansions to the
wastewater system from all new connectors. The amended charge
schedule (1997) updated, consolidated and provided uniformity,
within Zones, to a Wastewater Connection Charge.
The 1997 report recommended that, for the purpose of calculating
and charging a Wastewater Connection Charge, the Yakima Sewer
Service Area be divided into three investment zones. The remainder
of the report utilized this recommendation. The first zone (Zone 1) is
the area within the Yakima City Limits. This boundary would change
with any annexations. The second zone (Zone 2) is the area between
the City limits and the present Urban Area (U.A.) boundary. The
third zone (Zone 3) is the area between the present U.A. boundary
and the Interim Urban Area (I.U.A.) boundary.
Staff researched the historic cost of the Wastewater system's existing
facilities (treatment, trunkage, and collection) allocated to serve each
of these three Zones. Staff also projected the level of capital
Revised Connection Charge Update
Page 2
September 16, 1998
investment necessary, during the next twenty years, to adequately
service increased population and related industry, within each Zone,
and maintain an adequate level of reserve treatment capacity. The
proposal relies on a comprehensive system analysis for each
investment area (Zone) and develops charges based on the existing
and future costs to provide service.
Under the method of computation utilized prior to July 1997, a
Capital Cost Recovery Charge was calculated on the square feet of the
parcel being developed.
In lieu of parcel size. staff recommends that the portion of the
Connection Charge derived from historic and future treatment facility
expansion expenses should be determined on the quantity of flow
generated by the new connection. This would be more equitable, as
flow generated, not parcel size, is more directly related to the impact
on the treatment facility. Average flows for a Single Dwelling Unit
(SDU) and each size water meter were generated from billing records.
For the 1997 report, the trunkage and collection portion of the
Connection Charge remained a function of the entire size of the parcel
connecting to the system. This proposal recommends that a
maximum of 20,000 sf be used when calculating charges for single
dwelling units (SDUs).
Existing and Projected Connections:
City staff have projected the residential growth anticipated, within
all three Zones, during the next twenty years (1996-2016). These
projections are in accordance with the adopted GMA Comprehensive
Plan. Staff have further projected the increase in connections to the
wastewater system from the new single dwelling units (SDUs) and
from existing dwelling units which may connect, within that time
period.
TABLE 1 displays the projected increase in dwelling units and
population, within each of 14 areas, within the Interim Urban
Boundary, during the planning period (20 years). TABLE 1 also
shows that, within Yakima's service area, there are 26,424* existing
connected dwelling units. Within the next twenty years, staff
projects an additional 2,212 connections from existing dwellings and
6,614 new connections from new dwellings, within Yakima's service
area; a total of 8,826 new SDU connections. ( * This number exceeds
Revised Connection Charge Update
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September 16, 1998
the actual number of residential accounts because several accounts
service more than one dwelling unit.) These numbers do not include
the Terrace Heights or Union Gap service areas.
Projections on TABLE 1 anticipate, at the end of the planning period,
that 64.91% of all dwelling connections will be in Zone 1 11.29% in
Zone 2, and 6.12% within Zone 3; with the remaining (17.68%) in
either the Terrace Heights or Union Gap service areas.
Note: Terrace Heights and Union Gap combined presently are
allocated (and are paying for) 12.1% of the capacity of the Treatment
Facility. They currently are utilizing less than 50% of their dedicated
capacity Therefore, it is quite possible that by maintaining their
existing percentage allocation (12.1%) as the Facility expands, they
will be able to accommodate their growth, over the next 20 years,
without purchasing a higher allocation percentage. This report
assumes that their percentage allocation remains at the current
12.1% level.
1) Equitable Share of Existing Facilities
Historic Treatment Facility CQsts:
On TABLE 2, the historic construction costs of the treatment facility is
shown in column "A". This cost is then allocated to the customers
within the 1977 service area (City, Urban Area, Terrace Heights, and
Union Gap) in column "B" and the area outside the 1977 service area
(Interim Urban Area) in column "C" based upon the percentage of
connections each is projected to contain at the end of the planning
period; Column "B" at 93.88% and Column "C" at 6.12%.
All applications and support documents utilized to secure Federal
and State Wastewater grants, since the mid -1970's, have shown the
1977 Urban Area Boundary as the limit of the facility's service area
(Zone 1, Zone 2, Terrace Heights, and Union Gap). The Grant
eligibility of past construction has been based upon existing and
projected flows generated from within this area.
Federal
> and [+� /'�_..... L,:,.L. assisted F' the historic
Ali Federal State Grants which financing historic
construction were then deducted from column "B" to establish the
"local cash" contributed by the City to finance the portion of the
facility allocated to customers within the 1977 service area. This
cost is shown in column "E".
Revised Connection Charge Update
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September 16, 1998
None of the grants were credited toward the "local cash" contributed
by the City to finance the portion of the facility allocated to
customers outside the 1977 service area (Zone 3). The "local cash"
paid by City retail customers on behalf of future customers in Zone 3
is shown in column "F".
Each "local cash" historic cost was adjusted at an appropriate interest
rate from the date of construction to year-end 1997. The interest
rate used was the average of the revenue bonds issued by the
Wastewater Division during the designated time periods. By statute,
an upper limit of ten years and a maximum factor of 2.0 was used
for this adjustment. Several projects have been completed since the
1995 report was prepared. Costs of these projects are included on
this Table.
Each capital project was reviewed as to what percentage was for
facility expansion as opposed to rehabilitation or implementing new
mandates. The expansion percentage is shown in column "J".
Finally, TABLE 2 shows the expansion allocation of the adjusted
historic "local cash" cost for the customers within the 1977 service
area (column "K") and for the customers outside that service area
(column "L").
The total existing capacity of the Treatment Facility is rated by the
new NPDES Permit at 22.3 million gallons of domestic strength
wastewater per day. The limiting treatment process is ammonia
removal and the limiting treatment components are the secondary
clarifiers and the aeration basins. Some of the facility's other
treatment components already have the additional capacity required
for the flow increases projected in this report.
For Zone 1 and Zone 2: The adjusted value of the "Local Cash"
investment for expansion of the facility is shown, in column "K", to be
$13.35 million. The capacity of the existing treatment facility
allocated to these customers is 20.9 million gallons (93.88% of 22.3
million gallons). The bottom of column "K" on TABLE 2 shows the
existing Treatment Facility adjusted value for 1.0 gallon per day
of treatment capacity. For Zone 1 and Zone 2, this value is $13.35
million/20.9 million gallons per day capacity = $0.638 per gallon
per day capacity.
Revised Connection Charge Update
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September 16, 1998
For Zone 3: The adjusted value of the "Local Cash" investment for
expansion of the facility is shown in column "L" to be $3.88 million.
The capacity of the existing treatment facility allocated to this
customer class is 1.36 million gallons (6.12% of 22.3 million gallons).
This yields a unit cost of = $2.845 per gallon per day capacity.
Staff reviewed past billing records for residential accounts both
within Zone 1 (CITY) and Zone 2 (Urban Area). The results of this
review, as displayed on TABLE 3, show that, at the present time, the
average Zone 2 residential account discharges approximately the
same quantity of wastewater as the average Zone 1 residential
account.
A factor of 1.0 is then applied toward the existing and projected
Zone 2 and Zone 3 Single Dwelling Unit connections to calculate the
equivalent City Single Dwelling Unit (CSDU) connections. This factor
(1.0) is also utilized when calculating charges of Flow Based elements
of the Connection Charge.
The relationship between the flows from these two user classes will
be monitored and this factor may be adjusted if conditions warrant.
For TABLE 4, staff reviewed past plant flow and billing records.
Records show that approximately 62.4% of the billed flow, within the
Yakima service area, is from residential accounts as opposed to
industrial or commercial accounts. By using the flow billed by
residential accounts plus a pro -rata share of the Infiltration/Inflow
flow, staff determined the total loading on the facility from
residential accounts. This quantity, divided by the total equivalent
connected City Single Dwelling Units (CSDU), determined that the
average flow per existing equivalent CSDU, within the Yakima service
area, was 384 gallons per day. (321 million gallons per
month/26,910 CSDU). The flow for Zone 2 and Zone 3 SDU's were the
same.
Staff then researched billing records to find the average billed flow
for each size water meter. This flow plus a pro -rata share of the
system's Infiltration and Inflow (I/I) is shown near the bottom of
TABLE 4. Note: the designation 3/4" meter is used for small business
with that sized meter. Small businesses typically discharge less
Revised Connection Charge Update
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September 16, 1998
water that a SDU because of the nature of their water use (no dishes
or clothes to wash).
The City's current equity position in the Treatment and Trunkage
elements of the System was then reviewed. The results are shown
on TABLE 7. New customers are required to pay their share of the
historic system costs to the City's equity position. The remaining
capital debt is included in monthly service rates.
Staff then combine the flow information on TABLE 4, the Historic Cost
information from TABLE 2, and the Equity position from TABLE 7.
The results, as shown at the bottom of TABLE 4, are the equitable
share of the adjusted historic cost of the existing Treatment Facilities
for Single Dwelling Units (SDU) and each water meter size within
each Zone.
Historic Trunks/Interceptors Cost:
Unlike the treatment facility, the Trunks/Interceptors serve specific
service areas within the Zones. On TABLE 5, staff determined the
Historic Cost, as adjusted by interest, of the existing system
Trunks/Interceptors and allocated each to the Zones they serve. The
trunk line adjusted Cost for Zone 1 (City) is $3.7 million, for Zone 2
(UA) $3.0 million, and for Zone 3 (IUA) $1.0 million.
On the bottom of TABLE 5, these costs are spread across the total
square footage of parcels projected to be connected by the end of the
planning period (20 years). A separate unit cost per square foot was
established for each Zone.
Historic Collection System Cost:
The collection system consists of the 6", 8", and 10" pipes. On TABLE
6, staff determined the Historic Cost, as adjusted by interest, of the
existing collection system and allocated each to the Zones they serve.
Staff determined the collection system adjusted Cost for Zone 1 (City)
is $13.1 million, and for Zone 2 (UA), $9.3 million. There is no
allocated capacity in any existing collection lines to serve Zone 3
(IUA).
On the bottom of TABLE 6, these costs are spread across the total
square footage of parcels projected to be connected by the end of the
planning period (20 years). This includes existing and future
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September 16, 1998
connected area. A separate unit cost per square foot was established
for each Zone.
City's Equity Position:
TABLE 7 looks at the historical cost of the treatment and trunkage
elements of the Wastewater system and the outstanding debt
principal allocated to each. This information is used to establish the
current equity position that the City has in the Treatment and
Trunkage elements of the System. This information is utilized on
TABLES 4 and 5 of this report to determine the share of Historic
Costs to be allocated to new customers so that they will have paid an
equivalent amount toward past debt as existing customers.
2) Future Facility Requirements:
Future Treatment Facility:
In TABLE 8, staff projects the total increase in the average -day
maximum -month treatment facility flow from the projected
increased connections. Records show that approximately 62.4% of
the presently billed flow, within the Yakima service area, is from
residential accounts as opposed to industrial or commercial accounts.
Projected flows shown are based upon the assumption that this ratio
will be maintained over the next twenty years. The flows projected
from Union Gap and Terrace Heights are also increased based upon a
projected increase in residential customers within their respective
service areas.
This analysis determines that, to adequately accommodate the 20
year projected growth within the expanded service area, the
treatment facility capacity must be increased to 3337 million
gallons. This requires a capacity expansion of 11.47 million
gallons per day of which 9.63 mgd would be allocated to
customers within Yakima's service area.
TABLE 9 identifies the estimated cost of Treatment Facility
construction currently believed necessary to accommodate projected
increase in flow, meet new mandated regulatory permit (NPDES)
requirements, and maintain/rehabilitate the existing facility.
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September 16, 1998
The projected cost of expansion, to serve Yakima's service area, is
shown at $10.4 million. Using the required increase in facility
capacity from TABLE 8 of 9.63 mgd, staff developed the unit cost of
future expansion per 1.0 gallon of allocated treatment
capacity of $1.079.
The cost of capital projects required by new mandates and
rehabilitation to the existing facility will continue to be included in
monthly service rates charged to existing customers.
TABLE 10 combines the flow, per day, per dwelling unit, and for
different water meter sizes as established on TABLE 4, with the unit
costs established on TABLE 9. This yields the share of the cost of
future treatment facility construction to accommodate projected
growth for SDU's and each meter size for each Zone.
Future Trunks and Interceptors:
The wastewater division, in conjunction with City engineering and
outside consultants, is currently proceeding with a Department of
Ecology mandated update to their Comprehensive Sewer Plan. One
element of this plan is to identify additional Trunks and any
rehabilitation/upsizing to existing Trunks required to adequately
serve the service area.
Staff has concluded that, to complete service to the expanded service
area, new Trunks will be required to serve the following areas:
1) Suntides/Gleed
2) Cowiche Canyon
3) Summitview Extension
4) Washington/Coolidge
5) Ahtanum
6) Wiley City
7) South Airport Area
Staff has further determined that rehabilitation, including upsizing of
existing lines and possible cross ties, will be required on the
following existing Trunks:
1) West Valley Interceptor
2) Race Street Connection
Revised Connection Charge Update
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September 16, 1998
TABLE 11 lists costs to construct trunk lines adequately sized to
handle total build out of each subbasin listed above. TABLE 11 then
separates the cost of each trunk which would be required to handle
the development anticipated during the planning period (20 years)
and allocates only that cost to the Zone which will utilize the
increased capacity to accommodate future (20 year) development.
TABLE 11 further distributes the cost for each Zone across the area of
the new parcels projected to be connected within each Zone. This
results in a unit price per square foot to be assessed against new
connectors for future Trunk construction.
Future Collection Systems:
As previously mentioned, the City does not typically install or fund
the design and installation of collection pipes (6", 8", 10"). The most
common methods of funding the installation of collection pipes are: a)
in conjunction with a new subdivision or other new development
extension; b) by private funding, due to the need for sewer service
for an existing building or other development; or c) by Local
Improvement District (L.I.D.). Through the use of any of these
methods, the new connector pays directly for its collection system.
Recent records indicate that collection system construction is costing
approximately $78.00 per lineal foot. A typical development
contains about 210 lineal feet of collection pipe per acre. Therefore,
current costs of collection systems are $78 X 210 if = $16,380 per
acre or $0.376 per square feet of parcel size.
This is the single most expensive element of the entire wastewater
system. However, as stated before, the City does not typically
participate in this expense.
TABLE 12 uses the Existing and Future Connected Acreage from
TABLE 5 and the Unit Cost, per square foot, of parcel size from TABLE
6 to develop a "Composite" cost of the total collection piping
anticipated to exist at the end of the planning period for each Zone.
The result is a unit price per square foot to be assessed againstgtnew
l.uliiicl.tOrS that connect to existing collection pipes. The "Collection"
element of the charge would not be assessed if: 1) the parcel is
within a "developer" built collection system area, 2) the parcel owner
extends a collection pipe (of the size required by Wastewater
Revised Connection Charge Update
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September 16, 1998
Planning) from the existing system through or along the entire length
of the parcel, or 3) the parcel is within a new LID.
ZONE ONE (within Yakima City Limits)
1) Equitable Share of Existing Facilities:
A) Existing Treatment Facility:
TABLE 4 shows that, for 1997, the share of the historic cost of the
existing facility, as adjusted for interest and equity, is $176.73 per
single dwelling unit.
Charges for City connections based upon water meter size for other
than single family dwellings are displayed at the bottom of TABLE 4.
B) Existing Trunk/Interceptor Facilities:
The total area of Zone 1 is 11,406 acres, with 9,399 acres of parcel
area. Of the parcel acreage, 5,884 acres are currently connected to
sewer. At the bottom of TABLE 5, staff calculated the current
density of 4.08 Single Dwelling Units per connected acre. Staff
reviewed data prepared for the GMA Comprehensive Plan. This
review results in the total acres believed likely to be connected at
the end of the 20 year planning period to be 6,523 acres, an increase
of 639 acres over this period. This includes currently connected plus
future connected parcels.
TABLE 5 shows that the adjusted historic cost, less Federal and State
Grants, of the existing Trunks which serve Zone 1 (City) is $3.7
million. With a total of 6,523 acres to be connected in the future, the
cost per acre is $564.40; this figure is then adjusted for the City's
equity position from TABLE 7. The resultant investment required of
new customers is $416.02 per acre or $0.010 psf.
C) Existing Collection System:
TABLE 6 shows that the adjusted historic cost, less Federal and State
Grants, of the existing Collection System which serve Zone 1
(City) is $13.1 million. With a total of 6,523 acres to be connected in
the future, the historic cost per acre is $2,010.66 or $0.046 psf for
new connectors. There is no outstanding debt for any collection
projects. Therefore, the City's equity position for collection piping is
100%.
Revised Connection Charge Update
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September 16, 1998
A new customer would be subject to this element of the Connection
Charge if its parcel were not within an L.I.D. or private development
which constructed its own collection system. Customers would
remain subject to this element of the Connection Charge regardless of
the classification of the sewer pipe to which they actually connect
(see section 2, page 4).
2) Actual Connection Costs Including Share of Future
Required Facilities:
A) Future Treatment Expansion:
TABLE 10 uses the unit cost determined on TABLE 9 and flow
records to calculate the Share of Future Expansion to allocate to new
connectors. The charge for a new City Single Dwelling Unit (SDU) is
$414.58. Charges for new Zone 1 connections based on water meter
size for other than Single Dwelling Units are also shown.
B) Future Trunkage/Interceptor Expansion:
TABLE 11 displays the anticipated cost of those future trunks
identified as required to serve future development in each Zone. The
cost assigned to each Zone, for the next 20 years development, is
divided by the new acreage projected to connect. For Zone 1, the
projected expense of $722,586 is divided by the projected additional
acreage of 639. This results in a cost of $1,130.81 per acre or
$0.026 per square foot.
C) Future Collection System:
TABLE 12 demonstrates that, for 1997, this cost would be $0.032
per square foot. A new customer would be subject to this element
of the Connection Charge if its parcel were not within an L.I.D. or
private development which constructed its own collection system.
Customers would remain subject to this element of the Connection
Charge regardless of the classification of the sewer pipe to which
they actually connect (see section 2, page 4).
D) City Services Charges are set each year during the budget process.
They currently are at 6% of the division's revenue.
E) Engineering Charges are set at $25.00 per parcel. This reimburses
the City for the Engineering Department's time spent administrating
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September 16, 1998
the Wastewater System Connection Charge program. Any required
inspection, permit, or plan review fees are in addition to this amount.
F) Utility Tax is set by Section 7.64.010-C. 1. of the City Municipal
Code. The tax rate is presently set at 14% of the gross revenue.
Therefore, as shown on TABLE 13, for 1997, the Consolidated
Wastewater Connection Charges for a Single Dwelling Unit
within Zone 1 of a typically sized parcel of 12,000 square feet with
developer installed collection system would be:
Historic Treatment Facility Cost = $176.73
Actual/Future Treatment Facility Cost = $414.58
Historic Trunk/Interceptor = 12,000sf X $0.010/sf = $120.00
Actual/Future Trunk/Inter. = 12,sf X $0.026/sf = $312.00
Historic Collection System = 12.000sf X $0.000/sf = $ 0.00
Subtotal (wastewater cost) $1,023.31
City Services @ 6% $ 61.40
Engineering $ 25.00
Utility Tax Cad 14%(of wastewater cost only) $ 143.26
TOTAL $1,252.97
Wastewater Connection Charges for other new Zone 1 (City)
customers would be a function of their water meter size, the total
size of their parcel, and the financing mechanisms used for their
collection system.
ZONE TWO (Urban Area)
In Section 2 of the 1994 Cost of Service and Rate Study, it was
explained that sewer rates for non -owner (Urban Area) retail
customers are calculated on a Utility Rate Basis. Under this method
of accounting, the customer's monthly sewer service charge pays for
Operations and Maintenance, Depreciation, and Return on the Owner's
Investment.
1) Equitable Share of Existing Facilities:
A) Existing Treatment Facility:
TABLE 4 shows that, for 1997, the share of the historic cost of the
existing facility, as adjusted for interest and equity, is $176.73 per
single dwelling unit.
Revised Connection Charge Update
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September 16, 1998
Charges for Urban Area connections, based upon water meter size,
for other than single family dwellings are displayed at the bottom of
TABLE 4.
B) Existing Trunk/Interceptor Facilities:
The total area of Zone 2 is 7,468 acres, with 5,523 acres of parcel
area. Of the parcel acreage, 568 acres are currently connected to
sewer. At the bottom of TABLE 5, staff calculated the current
density of 4.27 Dwelling Units per connected acre. Currently within
Zone 2, most of the connected parcels are within relatively high
density housing developments. Staff reviewed data prepared for the
GMA Comprehensive Plan. This review results in the total acres
believed likely to be connected at the end of the 20 year planning
period to be 1,260 acres, an increase of 692 acres over this period.
This includes currently connected and future connected parcels.
TABLE 5 shows that the adjusted historic cost, less Federal and State
Grants, of the existing Trunks which serve Zone 2 (Urban Area) is
$3.0 million. With a total of 1,260 acres to be connected in the
future, the cost per acre is $2,341.67; this figure is then adjusted for
the City's equity position from TABLE 7. The resultant investment
required of new customers is $1,726.05 per acre or $0.054 psf.
C) Existing Collection System:
TABLE 6 shows that the adjusted historic cost, less Federal and State
Grants, of the existing Collection System which serve Zone 2
(Urban Area) is $9.3 million. With a total of 1,260 acres to be
connected in the future, the historic cost per acre is $7,375.11 or
$0.169 psf for new connectors.
There is no outstanding debt for any collection projects. Therefore,
the City's equity position for collection piping is 100%.
A new customer would be subject to this element of the Connection
Charge if their parcel was not within an L.I.D. or private development
which constructed its collection system. Customers would remain
subject to this element of the Charge regardless of thR sewer nine to
which they actually connect.
Revised Connection Charge Update
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September 16, 1998
2) Actual Connection Costs Including Share of Future
Required Facilities:
A) Future Treatment Expansion:
TABLE 10 uses the unit cost determined on TABLE 9 and flow
records to calculate the Share of Future Expansion to allocate to new
connectors. The charge for a new Zone 2 Single Dwelling Unit (SDU)
is $414.58.
Charges for new Zone 2 (Urban Area) connections, based upon water
meter size, for other than single family dwellings are displayed at
the bottom of TABLE 10.
B) Future Trunkage/lnterceptor Expansion:
TABLE 11 displays the anticipated cost of those future trunks
identified as required to serve future development in each Zone. The
cost assigned to each Zone, for the next 20 years development, is
divided by the new acreage projected to connect. For Zone 2, the
projected expense of $4,685,117 is divided by the projected
additional acreage of 692. This calculates a cost of $6,770.40 per
acre or $0.155 per square foot.
C) Future Collection System:
TABLE 12 demonstrates that, for 1998, this cost would be $0.114
per square foot. New customers would be subject to this element
of the Connection Charge if its parcel were not within an L.I.D. or
private development which constructed its own collection system.
Customers would remain subject to this element of the Connection
Charge regardless of the classification of the sewer pipe to which
they actually connect (see section 2 page 4).
D) City Services Charges are set each year during the budget process.
They currently are at 6% of the division's revenue.
E) Engineering Charges are set at $25.00 per parcel. This reimburses
the City for the Engineering Department's time spent administrating
the Wastewater System Connection Charge program. Any required
inspection, permit, or plan review fees are in addition to this amount,
F) Utility Tax is set by Section 7.64.010-C. 1. of the City Municipal
Code. The tax rate is presently set at 14% of the gross revenue.
Revised Connection Charge Update
Page 15
September 16, 1998
Therefore, as shown on TABLE 13, for 1998, the Consolidated
Wastewater Connection Charges for a Single Dwelling Unit
within Zone 2 of a typically sized parcel of 12,000 square feet with
developer installed collection system would b..e_:
Historic Treatment Facility Cost = $ 176.73
Actual/Future Treatment Facility Cost = $ 414.58
Historic Trunk/Interceptor = 12,000sf X $0.040/sf = $ 480.00
Actual/Future Trunk/Inter. = 12,000sf X $0.155/sf = $1,860.00
Historic Collection System = 12,000sf X $0.000/sf = $ 0.00
Subtotal (wastewater cost) $2,931.31
City Services @ 6% $ 175.88
Engineering $ 25.00
Utility Tax 0 14%(of wastewater cost only) $ 410.38
TOTAL $3,542.57
Wastewater Connection Charges for other new Zone 2 (Urban Area)
customers would be a function of their water meter size, the total
size of their parcel, and the financing mechanisms used for their
collection system.
ZONE THREE (Interim Urban Area)
The 1976 "Four Party" Agreement includes a map of the service area
covered by that agreement. That service area, so designated, was
included in all documents and applications for State and Federal
Grants received. Zone 3 is outside of that service area. Therefore,
credit for those Grants is not extended to this Zone.
Wastewater service to Zone 3, by the City of Yakima, is not precluded
by the 1976 Agreement.
In Section 2 of the 1994 Cost of Service and Rate Study. it was
explained that sewer rates for non -owner (Urban Area) retail
customers are calculated on a Utility Rate Basis. This report assumes
the same would hold for customers within the Interim Urban Area.
Under this method of accounting, the customer's monthly sewer
service charge pays for Operations and Maintenance, Depreciation,
and Return on Investment.
Revised Connection Charge Update
Page 16
September 16, 1998
1) Equitable Share of Existing Facilities:
A) Existing Treatment Facility:
The existing capacity of the Treatment Facility available for use by
customers from Zone 3 was financed entirely by City cash. The
applicable unit costs are shown at the bottom of column "L", TABLE 2
as $2.845 per gallon of treatment capacity.
TABLE 4 shows that, for 1997, the share of the historic cost of the
existing facility, as adjusted for interest and equity, is $788.09 per
single dwelling unit.
Charges for other Zone 3 (Interim Urban Area) connections, based
upon water meter size, are displayed at the bottom of TABLE 4.
B1 Existing Trunk/Interceptor Facilities:
The total area of Zone 3 is 5,954 acres, with 5,525 acres of parcel
area. Of the parcel acreage, 1.6 acres (1 account) are currently
connected to sewer. Staff reviewed data prepared for the GMA
Comprehensive Plan. This review results in the total acres believed
likely to be connected at the end of the 20 year planning period to be
863 acres, an increase of 861 acres over this period. This includes
currently connected and future connected parcels.
As indicated on TABLE 5, there is limited capacity allocated in any
existing trunks for customers in Zone 3. Therefore, the adjusted
historic cost, of the existing Trunks which serve Zone 3 (Interim
Urban Area) is $1.0 million. With a total of 863 acres to be
connected in the future, the cost per acre is $1,114.90; this figure is
then adjusted for the City's equity position from TABLE 7. The
resultant contribution required of new customers is $821.79 per acre
or $0.019 psf for new connectors.
C) Existing Collection System:
There is only one collection line in Zone 3, a private side sewer to
West Valley High School.
Revised Connection Charge Update
Page 17
September 16, 1998
2) Actual Connection Costs Including Share of Future
Required Facilities:
A) Future Treatment Expansion:
TABLE 10 uses the unit cost determined on TABLE 9 and flow
records to calculate the Share of Future Expansion to allocate to new
connectors. The charge for a new Single Dwelling Unit (SDU) is
$414.58
Charges for other Zone 3 (Interim Urban Area) connections, based
upon water meter size, are displayed at the bottom of TABLE 10.
B) Future Trunkage/Interceptor Expansion:
TABLE 11 displays the anticipated cost of those future trunks
identified as required to serve future development in each Zone. The
cost assigned to each Zone, for the next 20 years development, is
L_ projected connect. For Zone 3, the
divided by t11G clew aLlGage to For
projected expense of $9,122,056 is divided by the projected acreage
of 861. This calculates a cost of $10,582.43 per acre or $0.243 per
square foot.
C) Future Collection System:
TABLE 12 demonstrates that, for 1998, this cost would be $0.376
per square foot. A new customer would be subject to this element
of the Connection Charge if their parcel was not within an L.I.D. or
private development which constructed its own collection system.
Customers would remain subject to this element of the Connection
Charge regardless of the classification of the sewer pipe to which
they actually connect (see section 2 page 4).
D) City Services Charges are set each year during the budget process.
They currently are at 6% of the division's revenue.
E) EngineeringCharges are set at $25.00 per parcel. This reimburses
�.,, �,, g
the City Engineering Department for the time spent administrating
the Wastewater System Connection Charge program. Any required
inspection, permit, or plan review fees are in addition to this amount.
F.) Utility Tax 7 6.n n1 n C 1. the Municipal
r) Utility is set by Section i.v�r.vav-�.. of City ..a.....a..al.,a
Code. The tax rate is presently set at 14% on the gross revenue.
Revised Connection Charge Update
Page 18
September 16, 1998
Therefore, as shown on TABLE 13, for 1998, the Consolidated
Wastewater Connection Charges for a Single Dwelling Unit
within Zone 3 of a typically sized parcel of 12,000 square feet with
developer installed collection system would be:
Historic Treatment Facility Cost = $ 788.09
Actual/Future Treatment Facility Cost = $ 4145.58
Historic Trunk/Interceptor= 12,000sf X $0.026/sf = $ 228.00
Actual/Future Trunk/Inter. = 12,000sf X $0.243/sf = $2,916.00
Historic Collection System = 12,000sf X $0.000/sf = $ 0.00
Subtotal (wastewater cost) $4,346.67
City Services @ 6% $ 260.80
Engineering $ 25.00
Utility Tax Cad 14%(of wastewater cost only) $ 608.53
TOTAL $5,241.00
Wastewater Connection Charges for other new Zone 3 (Interim Urban
Area) customers would be a function of their water meter size, the
total size of their parcel, and the financing mechanisms used for their
collection system.
NOTE: Costs due to future expansion of the Terrace Heights and Union
Gap service areas are not included within the above discussion.
TABLE 14 consolidates and summarizes the Existing and Future
charges of each element (Treatment, Trunkage, and Collection) of the
proposed connection charge for all meter sizes within each Zone.
Revised Connection Charge Update
Page 19
September 16, 1998
TABLE 1
Existing plus Projected New Wastewater Accounts
Page 1 of 2
Neighborhood
1990 Census
1990 Census
1997
%
Existing
Population
Served
Projected
New
Population '
(1997-2016)
49
Projected
New SDU's •
20
Projected %
New DU
Connected
100%
New Dwellings
New Accounts
20
New
Population
Served
49
Population
Housing Units
# Dwelling
Units
Existing DU
Connected
1,151
Connected
CBD C
2,430
Northeast C
4,217
1,722
316
127
95%
1121
300
North Central C
12,444
5,525
1,246
724
498
289
95%
95%
473
275
1,184
688
Southeast C
8,032
2.972
Southcentral C
14,386
6,274
312
125
98%
123
306
Summitview C
10,606
4,518
153
61
100%
61
153
Scenic
6,354
2,553
3 767
1,507
City 60%
3,812
2,542
1,532
1,021
2,260
1,507
904
603
95%
85%
859
512
2,147
1,281
UA 40%
Wide Hollow
7,935
3,029
4,949
1,980
City 40%
3,174
1,212
1,980
792
1,188
95%
85%
752
1,010
1,881
2,524
UA60%
4,761
1,817
2,969
South Nob Hill
5,874
2,283
1,931
773
City 50%
2,937
1,142
966
387
95%
367
917
UA 50%
2,937
1,142
966
387
85%
329
821
Suntides IUA
1,441
544
634
254
50%
127
317
West Valley IUA
1.864
655
3,224
1,290
50%
645
1,612
Ahtanum IUA
2,844
1,067
4,702
1,881
50%
941
2,351
Terrace Heights
6,581
2,572
1,550
60.3%
3,966
11,064
4,426
80%
90%
3,541
694
8,851
1,733
Union Gap
5.226
2,192
1,203
54.9%
2,868
1,926
771
' Based upon a
capacity analysis
which concerned
existing vacant
land and assumed
land uses.
EXISTING CONDmONS
TOTAL
90,234
37,057
29,177
78.7%
70,234
City
62,038
26,047
23,998
92.1%
57,154
UA
10,240
3,980
2,427
81.0%
6,244
IUA
6,149
2,286
1
0.0%
3
TFVUG
11,807
4,764
2,753
57.8%
6,834
Projected
NEW
Projected
Total
Projected
Population
Served
%
Total
Connections
PROJECTED CONDITIONS
Connections
Connections
Additional Accounts from Exis
rg SOU's at Projected
31,971
percen
86%
age
77,341
34,997
Additional
14,002
accounts from
77%
new SDU's
10,848
27,115
13,642
_
42,819 104,455
TOTAL
90,234
37,057
City
62,038
26,047
24,745
95%
58,936
8,005
3,203
95%
3,050
7,624
3,799
27,795 66,561
64.91%
UA
10,240
3,980
2,266
2,985
908
75%
40%
7,680
2,460
5,442
8,560
2,177
3,425
85%
50%
1,851
1,713
4,625
4,280
2,409
2,818
4,836 12,305
2,619 6,740
11.29%
6.12%
IUA
6,149
THIUG
11,807
4,764
3,335
70%
8,265
12,990
5,197
81%
4,235
10,585
4,817
7,570 18,850
17.68%
The Following data
does NOT Include
Terrace Heights
and Union
Connections
2.212
Gap service
areas.
Population
5.678
Terrace Heights
and Union Gad
service areas
Connections
582
4,235
4,817
Pseulstton
1,4311
10,585
12,015
Additional from Existing SDU's
Additional from
Additional from
Existing SDU's
New SDU's
NEW
Additional from New SDU's
8 614
16,530
_
TOTAL from NEW
8,828
22,205
TOTAL from
Existing from ExlstiSDU's
26 424
63,400
Existing from Ex-�istl_ng SDU's
TOTAL 1
2,753
7,570
6,834
18,850
TOTAL
r
35,250
85,606
9/16/98
TABLE 1 Page 2 of 2
Existing plus Projected New Wastewater Accounts
Neighborhood
14,000
new SDU
Build out
Build out
Vacant Acres
22,109
total build out
SOU
Po.ulation
less R/W
0.6332
CBD C
31
200
78
499
3.59
24.83
98.44
71 60
8.64
8.05
7.99
6 38
___
--�
-_
---
Northeast C
North Central C
787
1,967
Southeast C
457
1,143
Southcentral C
197
493
38.53
21 70
575.95
5.11
4 47
4.13
Summitview C
97
242
Scenic
2,380
5,949
Cit 60%
0 60
UA 40%
0 40
Wide Hollow
3,127
7,816
675.25
4.63
Cit 40%
0 40
UA 60%
0.60
South Nob Hill
1,220
3,049
269 76
4 52
City 50%
0.50
UA 50%
0.50
1,002
100.20
509.18
4 00
4.00
--_
__
Suntkies IUA
401
West Valley IUA
2,970
7,426
Ahtanum IU
2,970
7,426
73713
4.03
Terrace Heights
6,989
17,473
1,554 10
4.50
Union Gap
1,217
3,042
292.00
4.17
Existin.
Total
20 ear
Connected
Future
Future
SDU/Acre
Acres
Acres
Acres
City
5,058
12,642
1,009
5.01
5,884
6.893
6,523
UA
3,438
8,594
770
4.46
772
1,542
1,260
IUA
5,408
13,520
1,347
4.02
10
1,357
863
new
3,126
8,826
%new
3,799
43.0%
3,126.16
2,409
27.3%
2,618
29.7%
9/16/98
TABLE 2
EXISTING TREATMENT FACILITY
HISTORIC COSTS adjusted for interest
9/18/96
A
B
C
0
E
F
Ci
H
1
.1
IR
L
Year
Historical
Zone 1 2
Zone 3
Less Grants
Local Cash
Local Cash
Interest
to
1997
max 10 yrs
Adjusted Value
Local Cash
Z I, Z2, TH1UG
(. E'GI
Adjusted Value
Local Cash
Zone 3
(. F'G)
Expansion
%
Expansion 5
Zone 1,, Zona 2
TH IL UG
(_H•J)
Expansion 5
Zone 3
(= PJ)
Description
Cost Existing
TH 8 UG
Share of (HC) @
Share of (HC) @
Zone 1, 2
11-18 UG
Zone 1, 2
TH 8 UG
Zone 3
Plant
(HC)
93 8891.
6.12%
(- B -D)
(- C
Sanitary Sewer Treatment Facility
3.40%
Structure & Improve (1945-1975/ 50yr)
1959
321,147
519,853
51,294
SO
519,853
51 294
1.40
527794
St 812
80.00%
322 235
$1`449
517,153
579,723
5179
Structure & Improve (1945-1975/ 50y0
1967
1967
1970
5250 248
51,163,089
52,617
5234,933
51,091,908
52,457
515,315
571,181
5160
51)
5584,160
51)
5234 933
5507,748
52 457
515,315
571,181
5160
1.40
1.40
1.40
5328,906
5710,847
53 440
521,441
599,653
5224
80.00%
80.00%
80.00%
5263325
5568„678
52,752
Structure & Improve (1945-1975/ 25yr)
Structure 8 Improve (1945-1975/ 50yr)
subtotal pre -1976
51,437,101
51,349,150
587,951
5584,161)
5764,990
587,951
31,070,987
5123,131
80.00%
5856,709
598,505
7.60%
Structure & Improve (Mullen -1982)
1981
516,180,105
515,189,883
5990,222
514,526,425
5663,458
5990,222
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
1.93
1.80
51,326 915
$1,805935
546,712
516,098
514,343
523822
3154_674
$12 255
535,614
553,366
5864,195
51,980445
51,342,963
53,045
51,049
5935
51,553
SII 022
5799
52,322
53,479
556,337
90.00%
90.00%
5000%
50.00%
50.00%
5000%
50.00%
50.00%
50.00%
50.00%
0 00%
51,194,224
51,325 341
$23,356
58 049
S7 171
511 911
57,837
56,127
'11 7807
526,683
SO
51.782,400
S1,208,567
51`23
5525
5467
5776
5511
5399
51 161
51 739
SO
Structure 8 Improve (Kiewh-1985)
1985
510,971,921
510,300,439
5671,482
59,3974772
5902,967
$671 482
Tools Shop& GarageEqupment
1985
$24,879
523,356
51,523
SO
523 356
51 523
Laboratory Equipment
1985
1985
1985
1987
1987
1987
1988
1989
58,574
$7,639
$12,687
58,348
56,527
518,968
529,402
5512,319
58,049
57,171
511,911
57,837
56,127
517,807
527,603
5480 965
5525
5467
5776
5511
5399
51,161
51 799
531,354
SO
50
SO
SAO
SO
SO
30
30
58 049
$7 171
511,911
57,837
56,127
517 807
527 603
5480 965
5525
5467
$776
5511
5399
31 161
31 799
531 354
Power Operated Egolpmont
Miscellaneous Eqr m.nt
Electrician's Office
Equipment
Office Equpment
Communications Equipment
L�o0n Cleanout
Structure 8 Improve (Pease -1989)
1989
52,553 282
52,397,021
5156,261
SO
52 397 021
5156 261
1.80
1.80
54,306,951
S8 330
5280,768
5543
35 00%
50.00%
51,507,433
34,165
598269
5272
Office Equipment
1989
54,938
54,636
5302
SO
54,636
$302
subtotal 1977-1989
530,339 588
528,482,805
51,856,783
523,923,897
54,558,908
31,856 783
58,530,209
53,675,260
61.75%
54,440,105
53,096 710
6.14%
Tools, Shop 8 Garage Equipment
1990
53,353
53,148
5205
S0
53 148
5205
1.52
54 778
5311
35 00%
31,672
5109
5635
3227
53,010
5371 233
547 590
50
S2 146
512,956
59 342
5111 300
531,504
57y289
51851 020
5687,361
Laboratory Equipment
1990
1991
1991
1993
519,542
37,410
598,274
513,655,606
518,346
56,956
592,259
512,819,883
5763,145
51,016,749
591,773
5166,214
51,196
5453
36 014
5835,723
549,749
566281
$5,983
510,835
SO
50
50
35,615,077
50
50
SO
50
518 346
$6 956
592 259
57,204,806
5763 145
51,016,749
591 773
3166,214
51 196
5453
56 014
5835,723
349 749
566,281
55 983
510 835
1.52
1.43
1.43
1.27
1.20
1.20
1.20
1.20
1.20
1.13
1.06
1.00
1.00
527841
59,946
5131 912
59,144 051
5915!.,524
51,215768
51097 37
5198,748
5179,141
5350,900
5536,961
3186 352
57,018.750
520027409
51,815
5648
58,599
31 060_666
559,487
579,255
37,154
312 956
511,678
322,875
535,004
512 148
5457 550
51,770,148
35 00%
35.00%
35.00%
35.00%
80.00%
000%
30.00%
100.00%
80.00%
80.00%
90.00%
60.00%
40.00%
40.08%
59,744
53,481
546 169
53 200,418
5730 019
50
532,921
3198,748
3143,313
3280,720
5483,265
3111,811
52,807.500
58,849,782
Storage Building
Industrial Coating/Secondary Digester
Structure 8 improve (Humphrey -1993)
Olosolids Storage Area
1994
1994
1994
1994
5812 894
51,083,030
597 756
;177,049
BlosolldsLagoon Cleanout and Hauling
Landscaping
Comprehensive Plan Update
Facility Plan Update
1994
1995
1996
1997
1997
5159,582
5331,781
3538,878
5198,500
57,476,300
5149,816
3311,476
3505,899
3186,352
37,018,750
59,766
320,305
332,979
512,148
3457,550
, SO
SO
50
SO
SO
5149,816
5311 476
5505 899
5186,352
57,018,750
59,766
520 305
532 979
312 148
5457 550
SCADAUpgrade
Mechanical Improvements
Equipment Prepurchase
Headworks/Dgester Improvements
subtotal 1991-97
524,659,955
523,150,765
51,509,189
55 615 077
517.535.688
51509189
Total Existing Treatment Facility
$56,436,644
552,962,721
$3,453,923
$330123,134
522,659,567
53,453,923
529 6211,606
55,568,539
48,95%
513,346,675
$ 682 575
Aduafod Historic Cost of Faell sr 10 ,lion
er d
Expansion Portion
Adjusted Historic
per 1.0 • alion •
Cost
or da
% AllocationAllocated
Capacity,
Existing Facility
requiroment based
u. on projected accounts
from TABLE 1
11=
(sire Table 3)
20,935,240
gallons per da
II
50.630
ZONE 1, ZONE 2, TH, 00
93.88%
III
82.645
ZONE 3 HUM
8.12%
1,384,760
galions_par dot
•
II
22.300,000
11
EnIdng eapadty of Wilily Nations), ammo maximum month
9/18/96
TABLE 3
Equivalent Number
City Single Dwelling Units (CSDU)
8/27/98
Equivalent City Single Dwell
ng Units (CSDU)
Existing
EXISTING
Connections
factor
Equivalent
(1997)
Connections
Zone 1 (City)
23,996
1
23,996
Zone 2 (Urban Area)
2,427
1.00
2,427
Zone 3 (Interim Urban Area)
1
1.00
1
TOTAL
26,424
26,424
Projected
Equivalent
Equivalent
Equivalent
PROJECTED NEW
New
factor
New
TOTAL
% AlI
Connections
Connections
Connections
Connections
TABLE 1
Yak Sery Area
inc. TH/UG
Zone 1 (City)
3,798
1
3,798
27,794
64.91%
Zone 2 (Urban Area)
2,409
1.00
2,409
4,836
11.29%
Zone 3 (Interim Urban Area)
2,618
1.00
2,618
2,619
6.12%
TOTAL
8,825
8,825
, 35,249
82.32%
8/27/98
TABLE 4
Equitable Share of
EXISTING TREATMENT FACiLITV
per New Single Dwelling Unit (SDU) and by Meter Size
1996 August (Max.Month) Flow
1
62.4%
225.77
mgm
Billed Rowrsesideniiai
Customers
��,V_k (Yakima sQnlico area only)
37.6%37.6%
136.28
mgm
Billed Flow Commercial/Industrial
(Yakima service area only)
151.96
mgm
I/1
(Yakima
service area only)
49.69
mgm
TH&UG
( Their
I/1 is included in their me ered flow)
563.70
Total
Facility Flow million
gallons per month (mgm)
I
Calculate
daily flow
per existing
City SDU
= billed
flow + pro
rata share
of I/1
(see Table 3)
=
225.77
+
.624 X 152
=
321
/26,910 CSDU =
384
gallons per day per City SDU
1
1
I
PER
SINGLE
DWELLING
UNIT
(SDU)
Zone 1
Zone 2
Zone 3
See unit costs
on
TABLE 2
Adjusted
Adjusted
Adjusted
See factors
on TABLE
3
Historic Cost
Historic Cost
Historic Cost
Capital Cost per new
Dwelling
Unit for
Existing
FacilitX
21
384
X
1.00
X
$0.638 =
$245.19
-InZ2
384
X
1.00
X
$0.638 =
$245.19
Z3
384 X
1.00 I X
$2.845 =
$1,093.35
_
Equitable Share Treatment
Facility
$245.19
$245.19
$1,093.35
PER 1.0 GALLON PER DAY
Zone 1
Zone 2
Zone 3
Adjusted
Adjusted
Adjusted
See unit costs on TART E 2
Historic Cost
Historic Cost
Historic Cost
Capital Cost per 1.0 gallon per day for Existing Facilit'
21 $0.638
=
$0.638
Z2 Y
$0.638
=
$0.638
-�
23
$2.845
=
$2.845
E• i .'• - - re: It - i t - Tt -
$0.638
$0.638
$2.845
Zone 1
Zone 2
Zone 3
-_-
E•uitable
E•uitable
E•uitable
--_
Avera • e
11111111111111.111111WIMMIlli•
.
=
Share of
Water
- Gallons
Position
Ad'usted
Ad'usted
Ad'usted
Meter
•er Da.
72.08%
Historic Cost
Historic Cost
Historic Cost
Size
(from bills
CITY
UA
SDU
see above
$176.73
$176.73
$788.09
* 3/4"
250
$114.97
$114.97
$512.67
1"
900
$413.88
$413.88
$1,845.61
1.5"
2,700
$1,241.65
$1,241.65
$5 536.83
2 "
4,200
$1,931.46
$1,931.46
38,612.84
3"
5,250
$2,414.32
$2,414.32
$10,766.05
4"
6,750
$3,104.13
$3,104.13
$13,842.06
6"
9,000
$4,138.83
$4,138.83
$18,456.08
*
Represents connection other than SDU utilizing 3/4" meter; ie small business.
9/16/98
TABLE 5
EXISTING TRUNKS INTERCEPTORS
HISTORIC COST adjusted for Interest
8127/98
Historical
Less
Local
Interest
Adjusted
%
Zone 1
%
Zone 2
%
Zone 3
Description
Year
Cost Existing
Pipe
(HC)
Federal/State
Grants
(Gr)
Cash
(LC)
LC. HC -Gr -1..
to
1997
max 10 yrs
Value
Local Cash
LC9nt
City
City
UA
Urban Area
ILIA
interim
Urban Area
Sanitary Sower Trunks/Interceptors
1958
1960
548,014
526,131
548014
526,131
3.40%
1.40
1.40
567,219
536,584
100%
100%
567,219
536,584
0%
0%
SO
50
0%
0%
SO
50
Tnrnks (1957.1959)
Trunks (1960)
Trunks (1957.1984)
1980
5665,840
5665,840
1.40
5932,176
9916
5922,854
1%
59,322
0%
50
Land and Land_gI hts
7.60%
W.V. Intercepter (2)
1985
1985
581,426
510,026
581,426
510,026
2.00
2.00
5162,852
520,052
15%
70%
524,428
514,036
70%
25%
5113,996
55,013
15%
5%
524,428
51,003
S. Frultvale Interceptor (3)
River Road Interceptor
1985
1985
1985
56,110
57,891
53,661,042
53,239,992
56,110
57,891
1421,050
2.00
2.00
2.00
112,220
515,782
5842 099
100%
8%
15%
512,220
51,263
5126,315
5143,639
5113,309
0%
10%
70%
25%
0%
50
51,578
5589,469
551,300
50
0%
0%
15%
5%
0%
SO
50
5126 315
510,260
50
S. Bradwaj ter (1811.) (4)
Trunks (1985 W.V. Interceptor) (2)
Trunks (1985 S. Fruitvale Inter) (3)
1985
1985
5714,500
5435,528
5611,900
5378,874
5102,600
556,654
2.00
2.00
5205,199
5113,309
70%
100%
Trunks (1985 River Rd. Inter)
Trunks (1985 Fairview -Sumac) (5)
1985
5342,418
5264,188
178,230
2.00
5156,460
95%
5148,637
5%
57,823
0%
SO
Trunks (1985 83rd. Ave)
1985
536,159
536,159
2.00
572,318
0%
50
100%_
10011.
572,318
5157,844
0%
0%
50
SO
Trunks (1985 72nd. Ave)
1985
578,922
578,922
2.00
5157,844
011.
SO
Trunks (1985 S. Broadway Inter) (4)
1985
5211,620
533,356
5178,264
2.00
5356,528
8%
528,522
10%
535,653
0%
50
6.14%
Land and LandRfghts (Don YoungProperty'1992
5350,162
5350,162
1.35
5471,698
65%
5306,604
11%
553,302
6%
528,774
Structure (Don Young Property) 1993
1993
1995
5900,000
51,805,500
5900,000
51,805,500
1.27
1.13
51,142,244
52,034,022
65%
25%
5742,459
5508,506
11%
70%
5129,074
51,423,815
6%
5%
569,677
1101,701
SO
Trunk 7th. Ave Interceptor 1995
Pierce Ave
1997
5185,000
5185,000
1.00
5185,000
100%
5185,000
0%
SO
0%
N. 1st Str! 6th Avo.lntercept
1997
51,200,000
51,200,000
1.00
51,200,000
25%
5300,000
25%
5300,000
50%
5600,000
Total Trunks/Interceptors
510,766,288
54,528,310
56_237,978
58,183,606
53,681,594
52,950,507
5962,157
Zone 1 (City)
53,681,594
(2) W.V. Interceptor allocated per 1978 West
Valle
City and
Sewer Comprehensive Plan
75% Urban Area
Zonis 2 (Urban
Ana)
52,950,507
(3) S. Fruitvato Interceptor Is allocated 25%
(4) S. Broadway was allocated 82% Union Gap, 8%City
and 10% Urban Area
Zone 3
Interim Urban Area)
5962,157
(5) Fairview Sumac was allocated 95.0% to City, 5%
to Urban Area and 0% to Union Gap.
Total parcel acres
9,399
5,523
5,525
Future connected parcel acres
69%
6,523
23%
1,260
16%
863
5 per acre glowered
5564.40
52,341.67
51,114.90
Equity Position
73.71%
5416.02
51,726.05
5821.79 i
5
Cost per
per square loot
12,000s1 parcel
$0.010
5120.00
50.040
5480.00
50.019
5228.00 j
Zone 1 Existing
23,996
SDU connected.
4.08
SDUs/acro
5,884
connected acres
Future,
27,794
SDU connected .
4.26
SOUs/acro
projected density
6,523
connected acres
Zone 2 Existing
2.427
SDU connected .
4.27
SOIJs/acre
568
connected acres
Futon @
projected density
4,835
1,260
SDU connected .
connected acres
3.84
SDUWacre
Z3 Future.
prolected density
2.618
863
SDU connected .
connected acres
3.03
SOUs/acre
8127/98
TABLE 6
EXIST(NGi COLLECTION SYSTEM
HISTORIC COST adjusted for Interest
8/27/98
Historical
Less
Local
Interest
Ad usted
%
Zone 1
%
Zone 2
%
Zone 3
Description
Year
Cost ExistIn.
Cash
to
Value
City
City
UA
Urban Area
IUA
Interim
Urban Area
Pi.:Grants
LC
1997
Local Cash
HC
LC=HC Gr
max 10 rs
LC'Int
1970,116
Sanitary Sewer Collection System.
3.40%
Laterals (1969-1971)
$14,1161.40
100%
$19,762
0%
$0
0%
$0
Laterals (1961-1975)
1975$444
719
•
1.40
$622,607
95%
$591,1176
5%
$31,130
0%
$0
Laterals (1962-1985)
1985
$4,495,797
$0
2.00
$8,991,594
86%
$7,732,771
14%
$1,258,823
0%
$0
Laterals 1965-1990
1988
$4 410 420
$0
$4 410,4201.93$8
526,885
$4 247 311
45%
22%
$3,837,098
$934,108
55%
78%
$4,689,787
$3,312,902
0%
0%
$0
$0
Laterals (1987-1990)
1989
$2 363 828
•
$11,728,880
1.80
Total Collection system
$11,728,880
$22,408,159
$13,115,516
$9,292,643
$0
Zone 1 Cit)
$13,115,516
Zone 2 (Urban Area)
$9,292,643
Zona 3 (Interim
Urban Ana)
$ 0
See Table 5
Future connected parcel acres
$ :er acre sewered
6,523
$2,010.66
$0.048
1,260
$7,375.11
$0.189
863
$0.00
$0.000
$ per s. oars
toot
Cast .sr 12,000x1 parcel
$552.00
$2,028.00
$0.00
8/27/98
TABLE 7
City EQUITY In WASTEWATER SYSTEM
Historical
Historical
Description
Cost Existing
Plant
Cost Existing
Trunks/Interceptors
as of December 1997
Sanitary Sewer Treatment Facility
see table 2
$56,436,644
Sanitary Sewer Trunks/Interceptors
see table 5
$10,768,288
TOTAL System
$56,436,644
$10,768,288
Outstanding Debt Principal
$ 0
1956 Revenue Bond
1964 Revenue Bond
$ 0
1978/96 Revenue Bond
211, 215, 232
$2,332,470
$552,196
1983 Revenue Bond
$0
1991 Revenue Bond
SU232
$5,459,125
1991 SRF Loan
SU232
$1,717,389
1988 PWTF (1300)
SU232
$613,349
1992 PWTF (1497)
SU 211
$925,965
1993 PWTF (1566)
SU232
$2,728,096
1994 PWTF (1616)
SU 211
$1,352,482
1995 PWTF (1638)
SU232
$2,903,962
Outstanding Principal
$15,754,391
$2,830,643
Equity of Historic Cost
72.08%
73.71 %
-T ®m8 r €i
Required Additional Treatment Facility Capacity
1996 Maximum Monthly Flow
362.05
mgm
Yakima Service Area Total Billed Fiow
151.96
mgm
1/1 (Yakima service area only)
49.69
mgm
Terrace Heights & Union Gap (Includes their 1/1)
TOTAL
563.70
Total
Facility Flow
million
gallons
per month (mgm)
Calculate total daily facility flow per existing City Single Dwelling Unit (CSDU
within the Yakima service areas.
I(
362,05
151.96
(existing CSDUs connected)
514.01
/
26,424
=
638
gals per day per DU
(see TABLE 3)
Calculate projected additional total new flow.
(new CSDUs connected)
638
X
8,825
=
172
million gallons per month
(see TABLE 3)
Projected Total Flow
(Maximum month)
Existing Base Flow
514
mgm
New Accounts
1 72
mgm
TH&UG (Existing+New)
1 38
mgm
TOTAL
824
=
27.01
million gallons per day (mgd)
I
Maintain Adequate Reserve (25%)
+
6.75
mgd
for TOTAL Service Area (incl TH&UG)
Future Required Capacity
=
33.77
mgd
for TOTAL Service Area
Existing Capacity
-
(22.30)
mgd
for TOTAL Service Area
Required Expansion
=
11.47
mgd
for TOTAL Service Area
-
(1.83)
lessTH&UG
Required Expansion
=
9.63
mgd
for Yakima Service Area
8/27/98
TABLE 9
Estimated Wastewater Capital Improvement Projects
Allocation of Future Costs
8/27/98
1997 Estimated
%
Expansion
%
NEW Mandates
%
Rehabilitation
Other
ELEMENT
Cost
Expansion
Cost
NEW Mandates
Cost
Rehabilitation
Cost
NEW Mandates
Industrial Coating
$390,000
0%
$0
0%
$0
100%
$390,000
Aeration Basin Repair
$175,000
0%
$0
0%
$0
100%
$175,000
Additional Final Clarifiers
$5,000,000
50%
$2,500,000
50%
$2,500,000
0%
$0
Aeration Basin & Blower capacity
$3,500,000
43%
$1 ,500,000
57%
$2,000,000
0%
$0
RAS Piping and Pump
$1,000,000
$2,000,000
100%
100%
$1,000,000
$2,000,000
0%
0%
$0
$0
0%
0%
$0
$0
New Primary Digester
Site Work
$1,500,000
60%
$900,000
40%
$600,000
0%
$0
Contingency
$2,600,000
62%
$1,600,000
38%
$1,000,000
0%
$0
Engineering, Admin, Legal
$2,600,000
62%
$1,600,000
38%
$1,000,000
0%
$0
Administration Building Expansion
$350,000
$2,050,000
50%
0%
$175,000
$0
50%
100%
$175,000
$2,050,000
0%
0%
$0
$0
Alternative Disinfection (UV light)
Clean Air Mandates (VOC control)
$2,050,000
0%
$0
100%
$2,050,000
0%
$0
Composting Facility
$2,500,000
20%
$500,000
80%
$2,000,000
0%
$0
Activated Sludge Lab
$100,000
50%
$50,000
30%
$30,000
20%
$20,000
Cogeneration "
$1,460,000
$1,460,000
industrial Waste Program "
$1,030,000
$1,030,000
Subtotal
$28,305,000
$11,825,000
$13,405,000
$585,000
$2,490,000
less TH&UG @ 12.1%
$3,123,615
$1,430,825
$1,622,005
$70,785
$0
TOTAL Yakima Service Area
$25,181,385
$10,394,175
$11,782,995
$514,215
$2,490,000
" Th & UG were not assigned a share of the ex•ense of these protects.
Capital Cost per 1.0 gallon per day of Required Facility ExpansionCapital
Cost per 10
gallon per day
of Required Facil
ty Expansion
(see TABLE 7)
Share of Expansion Costs
$10,394,175
9.63
$1.079
Share of New Mandates
Included In Monthly Rates
n/a
Share Rehabilitation
Included In Monthly Rates
n/a
TOTAL
$1.079
per gallon per day treatment capacity
1
8/27/98
TABLE 10
Actual Cost
FUTURE TREATMENT FACILITY
per New Single Dwelling Unit (SDU) and by Meter Size
1996 August (Max.Month), Flow
I
62.4%
225.77
mgm
Billed Flow Residential Customers
(Yakima service area only)
37.6%
136.28
mgm
Billed Flow Commercial/Industrial
JYakima service area only)
151.96
mgm
I/I (Yakima service area only)
49.69
mgm
TH&UG I( Their I/1 is included in their metered flow)
563.70
Total
Facility Flow million gallons per month (mgm)
Calculate daily flow per
existing
City SDU
= billed flow + pro rata
share
of I/1
(see Table 3)
=
225.77 1
+
1.62 X 152
=
321
/26910 CSDU =
384
gallons per day per City SDU
PERI SINGLE
DWELLING
UNIT
(SDU)
Zone 1
Zone 2
Zone 3
See unit costs on
TABLE 2
Adjusted
Adjusted
Adjusted
See factors on TABLE
3
Historic Cost
Historic Cost
Historic Cost
Capital Cost per new Dwelling
Unit for
Existing
Facilit
Z1 384 , X
1.00
X
$1.079
=
$414.58
Z2 [ 384 1 X I 1.00
X
$1.079
=
$414.58
Z3 1 384 1 X ! 1.00
X I
$1.079
=
$414.58
i
Equitable Share Treatment
Facility
$414.58
$414.58
$414.58
1 1 1
PER 1.0 GALLON PER DAY
Zone 1
Zone 2
Zone 3
fSee unit costs on TABLE 8
Future
Future
Future
I
Expansion
Expansion
Expansion
Capital Cost per 1.0 gallon per day for Necessary
Expansion
to Facility
Z1
$1.079
=
$1.079
Z2
$1.079
=
$1.079
Z3 !
1 I
$1.079
=
$1.079
Total Treatment Facility
Fee
$1.079
$1.079
$1.079
'
i
I
—I
Zone 1
Zone 2
Zone 3
Water
Average
Future
Future
Future
Meter
Gallons
Expansion
Expansion
Expansion
Size
per Day
(City)
(UA)
(IUA)
SDU
see above
$414.58
$414.58
$414.58
'
3/4"
250
$269.75
$269.75
$269.75
1"
900
$971.10
$971.10
$971.10
1.5"
2,700
$2,913.30
$2,913.30
$2,913.30
2"
4,200
$4,531.80
$4,531.80
$4,531.80
3"
5,250
$5,664.75
$5,664.75
$5,664.75
+ 4"
6,750
$7,283.25
$7,283.25
$7,283.25
6"
9,000
$9,711.00
$9,711.00
$9,711.00
' Represents connection other than SDU utilizing 3/4" meter; ie small business.
9/16/98
TABLE 11
FUTURE TRUNKS / INTERCEPTORS
ZONE ALLOCATION
8/27/98
Total
Less
Planning
Period
Interest
to
Adjusted
Value
%
City
Zone 1
City
%
UA
Zone 2
Urban Area
%
$JA
Zone 3
Interim
Urban Area
Description
Year
Cost
Oversize
New Plpe
beyond 20yr
Cost
1997
LoCal Cash
planning period
max 10 yrs
(LC'Int)
Uplifts Existing Trunks/interceptors
$0
*0
1.00
30
0%
*0
65%
*0
35%
SO
Fruitvale Connection (to Suntides pipe)
West Valley Interceptor
*732,881
$79,149
5653,712
1.00
3653,712
0%
*0
40%
$261,485
60%
*392,227
Race Street Connection
*2,346,000
*253,368
*2,092,632
1.00
*2,092,632
0%
*0
40%
$837,053
60%
51,255.579
Subtotal Upsize Existing
*3,078,861
*332,517
52,746,344
$2.746,344
00
$1,098,538
$1,647,806
New Trunks/Interceptors
Suntides/Gieed
*4,879,820
*1,402,872
52,329,182
$619,620
553,960
*258,781
24,260,200
$1,348,912
$2,070,401
1.00
1.00
1.00
*4,260,200
51,348.,912
*2,070,401
10%
10%
0%
5428,020
*134,891
*0
30%
70%
40%
*1,278,060
*944,238
5828,160
60%
20%
60%
$2,556,120
*269,782
31,242,241
Cowlche Canyon
Summllview Extension
Coolidge
51,285,430
561,520
*1,203,910
1.00
51.203,910
0%
SO
0%
SO
100%
$1,203,910
Ahtanum
*1,693,774
5275,302
51,418,472
1.00
*1,418,472
0%
$0
16%
$212,771
85%
51,205,701
Wiley Extension
0919,380
$725,000
584,560
078,,300
*834,820
$646,700
1.00
1.00
*834,820
*646,700
0%
25%
*0
$161,875
0%
501/4
*0
5323,350
100%
25%
5834,820
*161,675
Airport Extension
Subtotal New Trunks/Interceptors
513,215,458
31,432.043
*11,783,415
$11,783,415
87224686
53,586,580
57,474,249
% oversize $
10.8%
TOTAL New Construction
$16,294,319
*1,764,560
*14,529,759
514,529,759
$722,586
*4,685,117
*9,122,056
Zone
1 (CityL
0722,586
Note: None of these pipes will be used by TH or UG.
Zone 2 (Urban
Area)
$4,685,117
Zone 3 (Interim Urban Area)
$9,122,058
(see Table 5)
Future Total Connected Parcel Acres
6,523
5,884
1,260
568
863
2
Existing Connected Parcel Acres
New Connected Parcel Acres
639
692
861
$ per acre connected
a uare toot
$1,130.81
30.028
$6,770.40
50.155
010,594.72
50.243
`per
Cost per 12,000x1 parcel
3312.00
51,860.00
02,916.00
I
8/27/98
TABLE 12
FUTURE COLLECTION
ZONE ALLOCATION
8/27/98
Zone 1 (City)
Zone 2 (Urban Area)
Zone 3 (Interim
Urban Area)
Description
Acreage
see TABLE 5
Unit Cost
per sf
see TABLE 6
Acreage
see TABLE 5
Unit Cost
per sf
see TABLE 6
Acreage
see TABLE 5
Unit Cost
per sf
see TABLE 6
and Text
and Text
and Text
Existing Connected Parcel Acres
5,884
$0.046
568
$0.169
2
$0.000
Future Connected Parcel Acres
639
$0.376
692
$0.376
861
$0.376
6,523
Composite
$0.078
1,260
Composite
$0.283
863
Composite
$0.376
Future Total Connected Parcel Acres
less share of existing
$0.046
$0.169
$0.000
(see TABLE 6)
Share of Future Cost
$0.032
/sf
$0.114
/sf
$0.376
/sf
8/27/98
TABLE 13
TOTAL PROPOSED WASTEWATER CONNECTION CHARGE
8/27/98
FLOW BASED
PARCEL SIZED BASED
ADMINISTRATION and TAXES
A
B
C
D
E F
G
H I
J
K L
M
N
TOTAL
Meter
Existing
Treatment
Future
Treatment
Total
Treatment
Existing
Trunks
Existing
Collection
Future
Trunks
Future
Collection
City Services
@6% of
Engineering
$25.00
Utility Tax
@ 14% of
WASTEWATER
CONNECTION
Size
Table 4
Table 10
Table 5
Table 6
Table 11
Table 12
(D+F+G+I+J)
per Parcel
(D+F+G+I+,I)
CHARGE
ZONE 1 (CITY)
SOU
$176.73
$414.58
$591.31
$0.010/sf
$0 046/si
$0 026/s1
$0 032/sf
3/4"
$114.97
$269.75
$384.72
$0.010/sf
$0.0461s1
$0 026/s1
$0.032/sf
1"
$413.88
$971.10
$1,384.98
$0 010/sl
$0.046/sf
$0.026/sf
$0 032/sf
1.5"
$1,241.65
$2,913.30
$4,154.95
$0.010/s1
$0 0461st
80.026/s1
$0.032/s1
2"
$1,931.46
84,531.80
$6,463.26
$0 010/sl
$0.046/s1
$0.0261s1
$0 032/s1
3"
$2,414.32
85,664.75
$8,079.07
$0 010/sf
$0 046/sf
$0 026/s1
$0.032/s1
4'
$3,104.13
$7,283.25
$10,387.38
$0 010/st
$0.046/st
$0.0261s1
$0.032/s1
6"
$4,138 83
$9,711.00
$13,849.83
$0.010/sf
$0.046/sf
$0 026/sf
$0.0321s1
Example 1: SDU on 12,000 sf yarcel with developer installed collection system.
8176.73 $414.58 ( 8591.31
$120.00 L 80 00 $312.00
$0.00
$61.40
$25.00
$143.26
81,252.97
Example 2: SDU on 10,000 sf parcel connecting
to City installed collection s
stem or Trunk.
$176.73
$414.58
$591.31
$100 00
$460 00
$260.00
$320.00
$103.88
$25.00
$242.38
82,102.57
ZONE 2 (URBAN
AREA)
SOU
$176.73
$414.58
$591.31
$0 040/s1
$0 1691st
0.155/s1
$0.114/sf
3/4'
$114.97
$269.75
$384.72
$0.040/sf
$0 169/s1
0 155/s1
$0.114/st
1"
$413.88
$971.10
$1,384 98
$0.0401s1
$0.169/si
0 155/s1
$0.114/s1
1.5"
$1,241.65
$2,913.30
$4,154.95
$0.040/s1
$0 169/s1
0155/s1
$0.114/sf
2"
$1,931.46
$4,531.80
$6,463.26
$0 040/51
$0 1691st
0.155/s1
$0.114/s1
3'
$2,414.32
$5,664.75
$8,079.07
$0 040/01
$0 169/s1
0 155/s1
$0 114/01
4"
$3,104.13
$7,283.25
$10,387.38
$0.040/5/
$0 169/s1
0155/s1
$0114/sl
6"
$4,138.83
$9,711.00
$13,849 83
$0 040/st
$0 169/sf
0 155/s1
$0.114/s1
Example 1: SDU on 12,000 sfyarcel with developer instalted collection system.
$176.73 8414.58 1 $591.31
$480.00 $0.00
$1,860 00
80.00
$175.88
$25.00
$410.38
$3,542.57
Example 2: SDU on 10,000 sf parcel connect'n!
to City installed collection s
stem or Trunk.
$176.73
$414.58
$591.31
$400.00
$1,690 00
$1,550.00
$1,140 00
$322.28
$25.00
$751.98
$6,470.57
ZONE 3 (INTERIM URBAN AREA)
SOU
$788.09
$414.58
$1,202.67
$0 019/sf
none
$0.243/s1
$0.376/sf
3/4"
$512.67
$269.75
$782 42
$0 019/51
none
$0.243/s1
$0 376/s1
1"
$1,845.61
$971 10
$2,816.71
$0 019/sf
none
$0.243/s1
$0.376/s1
1.5'
$5,536.83
$2,913.30
$8,450.13
$0 019/sf
none
$0.243/sf
$0.376/s1
2"
$8,612.84
$4,531.80
$13,144.64
$0 019/s1
none
$0.243/st
$0.376/sl
3'
$10,766.05
$5,664.75
$16,430 80
$0 019/sf
none
$0.243/sf
$0.376/s1
4"
$13,842.06
$7,283.25
$21,125.31
$0 019/sf
none
$0.243/sf
$0.376/s1
6"
$18,456.08
$9,711.00
$28,167.08
$0 019/st
none
$0.243/s1
$0.376/sf
Example 1. SDU on 12,000 sf parcel with dever installed collection system.
$0.00
$260.80
$25.00
$608.53
$5,241.00
$788.09 $414.58 81,202.67 j8228 00 $0 00 $2,916.00
Example 2: SDU on 10,000 slyercel connecting to City installed collection system or Trunk.
$788.09 1 $414.58 1 $1,202.67 1 1 $190.00 ( $0.00 1 1 $2,430.00 $3,760.00
$454.96
$25.00
$1,061.57
$9,124.20
8/27/98
TABLE 14
SUMMARY PROPOSED WASTEWATER CONNECTION CHARGE
9/16/98
FLOW BASED
PARCEL. SIZED BASED
ADMINISTRATION and TAXES
A
B
C
D
E
F
G H
i
J
TOTAL
Meter
Total
Total
Total
City Services
Engineering
Utility Tax
WASTEWATER
Size
Treatment
Trunkage
Collection
@6% of
$25.00
@ 14% of
CONNECTION
(B+D+F)
per Parcel
(B+D+F)
CHARGE
ZONE 1 (CITY)��-
SDU
$591.31
1
$0.036/sf
$0.078/sf
• De•endant
De•endent
De•endent SUM OF
3/4"
$384.72
•
$0.036/sf
$0.078/sf
$ u••n
••
u ALL
1"
$1,384.98
$
$0.036/sf
$0.078/sf
flow based
number
sum of CHARGE
1.5"
$4,154.94
$0.036/sf
$0.078/s1
• and
of
other ELEMENTS
2"
$6,463.26
$0.036/sf
$0.078/sf
parte! size
parcels
charges
3"
$8,079.07
$0.036/sf
$0.078/sf
based
4"_+_
$10,387.38
$0.036/sf
$0.078/sf
charges
6"
$13,849.83
I
I
$0.036/sf
$0.078/sf
k
ZONE 2 (URBAN AREA)
SDU
$671.83
$0.195/sf
$0.283/sf
Dependant
Dependent
Dependent
SUM OF
3/4"
$384.72
$0.195/sf
$0.283/sf
upon
upon
upon
ALL
1"
$1,384.98
$0.195/sf
$0.283/sf
flow hacod
number
sum of
CHARGE
1.5"
$4,154.94
$0.195/sf
$0.283/s1
and
of
other
ELEMENTS
2"
$6,463.26
$0.195/sf
$0.283/sf
parcel size
parcels
charges
3"
$8,079.07
$0.195/sf
$0.283/sf
based
4" $10,387.38
$0.195/sf
$0.283/sf
charges
6" $13,849.83
$0.195/sf
$0.283/sf
ZONE 3 (INTERIM URBAN AREA)
SDU
$1,202.67
$0.262/sf
$0.376/sf
Dependant
Dependent
Dependent
SUM OF
3/4"
$782.42
$0.262/sf
$0.376/sf
upon
upon
upon
ALL
1"
$2,816.71
$0.262/sf
$0.376/sf
flow based
number
sum of
CHARGE
1.5"
$8,450.13
$0.262/sf
$0.376/sf
and
of
other
ELEMENTS
2"
$13,144.64
$0.262/sf
$0.376/sf
parcel size
parcels
charges
3"
$16,430.80
$0.262/sf
$0.376/sf
based
_
4"
$21,125.31
$0.262/sf
$0.376/sf
charges
6" $28,167.08 i
$0.262/sf
$0.376/sf
9/16/98
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. ,-`_.7 3
For Meeting Of 10/6/98
ITEM i'1"TLE: Consideration of Resolution Adopting Revised Wastewater
Connection Charge Study Update and Approving Ordinance Revising
Wastewater Connection Rates and Charges.
SUBMIUTED BY: Dick Zais, City Manager
Glenn Rice, ACM
Doug Mayo, Utility Engineer
CONTACT PERSON/TELEPHONE: Doug Mayo/575-6077
SUMMARY EXPLANATION:
The Wastewater Connection Charge Ordinance (#97-38), approved in June of 1997,
consolidated the then existing Capital Cost Recovery Charge and Sewer Connection Charge
provisions of the Yakima Municipal Code into a single charge.
During consideration of and since adoption of that ordinance, City Council has been very
clear in its stated position that City staff should closely review its work, entertain serious
public comment and, where adjustments are merited, directed that those changes be
(...continued...)
Resolution X Ordinance Contract _Other (Specify) Revised Wastewater
Connection Charge Study Update.
Funding Source Revenues from this program would be allocated to either the
wastewater collection system project fund (476) or the wastewater facilities project fund
(478)
APPROVED FOR SUBMITTAL•
City Manager
STAFF RECOMMENDATION:
Staff respectfully requests City Council adopt, by attached resolution, the Revised
Wastewater Connection Charge Study Update and approve the attached ordinance
revising wastewater connection rates and charges.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION:
(...continued. from front page...)
brought before City Council. Wastewater staff, with valuable technical assistance by Gary
Saleba, EES Consulting, Inc., and legal review by Preston, Gates and Ellis, have, at City
Council's direction, revised the Wastewater Connection Charge Study Update and Rate
ordinance. This review and revision process was deemed appropriate because of the
following circumstances:
A) the City received its new National Pollutant Discharge Elimination System (NPDES)
wastewater discharge permit in October of 1997 -- with its attendant capital obligations
discussed previously under a separate report;
B) the City recently adopted its Comprehensive Plan required under the Growth
Management Act (GMA); and
C) two years additional data was available to supplement the data set which the original
report was based upon.
In summary, items reviewed which affected revisions in the report submitted in February
of this year and remain pertinent in the attached report and rate ordinance included:
1) revised capacity of existing treatment facility per new NPDES permit;
2) updated future "Treatment" expense due to NPDES mandates and expansion
requirements;
3) updated projection of new accounts based upon adopted City Comprehensive Plan;
4) updated projection of future connected area based upon adopted City Comprehensive
Plan;
5) re -allocation of future and existing trunks due to most recent GMA population
projections;
6) allocated portion of existing trunkage to Zone 3;
7) update of number of existing accounts per current information;
8) update t....� cost (projects
not closed
at time of original
a or�rt)
of estimated historic c1VJeU in 1995 VrigillGll report)
with actual costs;
9) transfer of some 1995 future costs to 1997 historic costs (projects completed since 1995);
and
10) inclusion of 20,000 square foot "cap" on residential lots for the purposes of calculating
the trunkage and collection elements of the charge.
At the February 3, 1998 Council Meeting, concern over the proposal was raised by Yakima
County. A l 1h.. r',. ra1..'r request, the Council delayer' action on the prnrar�cel to lower
\..V Ulll�. AL the V lAlll,' J 1CLiNGJL, the a... JL4ala_aa delayer' action Val Lala. yaVVVJLL* LV lower
charges. Over the past several months, the City has held a series of meetings with County
representatives and their consultants during which their concerns with the Study were
discussed. In response to their concerns, the following revisions were incorporated into
the attached report and rate ordinance:
11) adjustment of rates to accommodate the City's current Wastewater debt service equity
position;
12) update of average consumption of Inside and Outside retail residential customers per
current information.
In addition to the adjustment to the charges, the proposed Ordinance also address:
1) a modification to the date which cuts off Local Improvement Districts (LID's) from the
old charge system (see section 7.58.030.A.) This affects a very few potential customers
within some newly formed LID's.;
2) section 7.58.060 clarifies that only the future element of the Base Trunk Charge may be
waived;
3) section 7.58.075 limits to 20,000 square feet the parcel size to be utilized in calculating
charges for Single Dwelling Units;
4) finally, section 7.58.090. C. clarifies language.
Please note that in every case, in every Zone, for each lot size illustrated, a reduction is
proposed. The reduction ranges from 1.3% to 32.1% depending on Zone and lot size.
However, the reduction for an average sized lot is about 10% for each zone. These revised
rates represent a significant and substantial decrease while still preserving the City's
objective of requiring growth to pay its own way.
HISTORY:
The 1987 Comprehensive Plan for Sewerage System recognized the shortfall of the existing
Capital Cost Recovery Charge. That report recommended the charge be; 1) extended to "all
properties connecting to the sewer system", and 2) the rate be adjusted to accommodate
trunk sewer construction to future sub basins. Neither of these recommendations was
acted on at that time.
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 updated study continues
that philosophy by assigning, where appropriate, the capital costs of necessary system
growth to new customers.
The Wastewater Connection Charge Ordinance (#97-38), approved in June of 1997,
consolidated the existing Capital Cost Recovery Charge and Sewer Connection Charge
systems 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 were established for each of three
geographical zones.
The intent of Ordinance #97-38 was 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 had historically borne the burden of the financial under -performance of
the pct. C'C'RC' and Connection C'harve cvctemc_
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 to
recover the same annual revenue which this program identified it would generate given
connection trends at that time. We believed, and still believe, a rate increase of this size
for new growth would not be acceptable to existing customers. The conclusion, therefore,
was that without the Wastewater Connection Charge program to recover the cost of new
growth, we would not have sufficient resources to build the pipe and treatment facilities
necessitated 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.
Previous Wastewater Connection Charge proposal transmittals to City Council and the
City Mangers Office have included estimated connection charges for discussion purposes.
The following Attachment 1 provides the latest estimates of average connection charges
for the three zones when the developer constructs the collection system. The dollar
amounts shown will change over time with construction cost indices (CCI) and the actual
costs of facilities projects for growth related expansion.
The enclosed table "Attachment 1; Wastewater Connection Charge Comparison" provides
a comparison between 1997 adopted rates, the February 1998 proposed rates arrived at
through the update analysis of items 1-10 discussed above, rates which include the debt
service credit (City equity position) listed as item #11 above, and rates which include
adjustment for a usage factor of 1.0 between Inside and Outside retail residential
customers, listed as item #12 above.
Attachment 11
Wastewater Connection Charge Comparison
9/29198
I
The purpose of the Wastewater Connection Charge Rates is to ensure that new customers shoulder an equitable share of the historic cost of the system,
as well as the actual cost of the connecting:
ZONE 1
ZONE 2
ZONE 3
. .
proposed ,4ititqtrilf .•:. Usage]
Adopted
proposed teiy.pqtiiii 000
Adopted
proposed
•OliY.:tqliity: Usage
lot size
Adopted
on 2/3/98 :ii4iit:.SiirVit#:.0i00. (1...0)
Jun -97
on 2/3/98 sii.6bi tor.00:.rootot (1.,o)
Jun -97
on 2/3/98
..ki60::*i.jrilfri.:#6Cloi, .:(1.0)
(square feet)
Jun -97
.!ii.,i....
..
$1,148.24 'i.:4•1.*P24 .$.1..,66601: .
$3.419.92
$2,930 02 it......60366 :$;666:t7:
$5,163.77
$4,740.65.
:.$4•i24612ii.. l.**ii.ii -46
. ..
8,000
81,249.38
-8.1% ..161%. 4.43%,
-14.3% ..'s.*1.i4 ,,3:,24k
-8.2% .
..,
-i.1.090. ..16.24ii;.: .
% change
--40.3%: -,.s::9%.,
.. .
..;0'.4. .,1*9.,%.
10 5% .f,..ik(i%.
% change from proposed
:47i,",..4*•.'4..: .
..1:.:•:.04-. :0,6%.
.
..i.i.110)...'A. 22 9%
% change from adopted
..i.:i"
.__
.:
..,.
.. ,•
. ....:
• •
:
..i.
81,335.44 ''....:,gt*.i*:•..t.i-,..400,3it.•
$4,241.49
$3,933.22 $,624 80 *04.0:'
86,065.01
86,031 85 :.4$0.00..*1.i
$0::241.;00,
12,000
81,398.71
-4.5% ' ..40.)*:.. :4A5t«:: .
-7.3% .j.7i;004:: 4:0.04, •i
-0.5%
qiIi.4.6;6tk.. :4 ,iA-..
•
% change
10 1% ..i.0&34:. •
..4Adk.. ..4:6%:,i ::..
15*.
:::::; 4..,6* • 43 •*)t I
% change from proposed
-14 1% .1.0,4%.. '
.A4..',6•% ..,I*654....
'
...0.**: 13 6%
% change from adopted
•
ir.
:,.:i11::'..
.
..i.::. .i•
*1,709.83 :$'1':;636*i. i*.f:506.:.5.7:
85,884.63
...
85,939 62 .46;46.1...10. 1.6414-:4'.
$7,867 49
88,614.25 1
56:;.61641. *7;:758.,26
20,000
$1,697.46
0.7% 4.:.1:6'.;:t :4:;04:
0.9% -4:6% '....i.::J0*-
9.5%,.4;*
... ..7.4.0.
% change
ji:10i1i.4: ...*.$.t*
:+1:0t; 44ki.: .
.
......
:6-0,k •:.1.6.#1...
% change from proposed
.*** 4%....4i'Vk .
....0..::6* ..4440*
::t9.4k. ..4.A.*
% change from adopted
..ii,.
•:,ii, iii!ii.
81,709.83 i*t 53582 81 06:61.
$7,938.57
85,939 62 :$5--4467 26 85414 57
810,120.59
*8,614.25
4604.'0* -87:66..0
30,000 •
82,070.90
-17.4%...:41*., .44K .
-25.2% ..4" ..1*.
-14.9%
..4.-.0/4, A..*
%change
.,...,.
..1K4104, ..**.
..4 6% .4.:,0',
... ....
:G.0.4.:. 10 0%
....
% change from proposed
.j..2...,0%. ., .22 8%
,4*1%. . 31 9% .
-... •
..0,0%;.- •••434'.4.,.
% change from adopted
1
• Maximum lot size of 20,000 per SDU proposed.
As explained In the report, parcel size was the criterion used 10 distribute costs of pipes. The length (cost) of the pipes is direct related to the size of parcels served.
Adjustments tollcnvIng City/County d scusslons.
— Rates for all Zones credited for City Debt Service Equity Position.
1-
L
"' SDU usage for all Zones considered to be equal; this shall be reconsidered with each update per consumption records.
9/29198