HomeMy WebLinkAboutCouncil Resolution 704RESOLUTION N0. 7°y
A RESOLUTION ESTABLISHING A WATER RESERVOIR
SYSTEM DEVELOPMENT CHARGE, INCLUDING REIMBURSEMENT FEE
AND METHODOLOGY THEREFOR
Recitals
1. Oregon Revised Statutes Chapter 223 and Central Point
Municipal Code Chapter 11.12 authorize. enactment of systems
development charges. The City is in the process of constructing
a two-million gallon water reservoir, which. will increase the
City's total reservoir capacity to three million gallons.
2. The engineering firm CH2MHi11 has analyzed the reservoir
system and has concluded, in its report of June 2, 1994, that the
reservoir system will serve a total population of 11,491. Since
the City's population is currently about 8,520, the reservoir
system presently has excess capacity.
3. New development in the City will benefit from
previously-constructed water reservoir system improvements and
should therefore pay a proportionate share of the cost of those
improvements, such share to be determined through the methodology
set forth herein.
4. Under the terms of its Reservoir Construction Loan
Agreement with the Oregon Economic Development Department, the
City is required to have in place a program which will assure the
replacement of the reservoir.
Now, therefore;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CENTRAL
POINT, OREGON, AS FOLLOWS:
Section 1. Imarovement Plan. The City hereby authorizes as
its improvement plan the expenditure. of reservoir system
development charges on (1) a sinking fund for the future
construction of water reservoirs; and (2) retirement of the debt
on the two-million gallon reservoir currently under construction.
The City determines that those expenditures are associated with
the reservoir system for which the reimbursement fees will be
assessed and determines further that such improvements are
eligible for expenditure of reimbursement fees.
Section 2. Methodology• The methodology for the fees
described herein is set forth below. This methodology considers
the cost of existing facilities, prior contributions by existing
users, the value of unused capacity, rate-making principles
employed to finance publicly-owned capital improvements,
1 - RESOLUTION N0. 70y (072994)
including the time value of money, and other relevant factors
identified by the City Council. The methodology promotes the
objectives that future system users shall. contribute no more than
an equitable share of the cost of existing facilities.
Methodoloav
General Information
1. The construction of a two-million gallon water reservoir will
provide the City with a total of three-million gallons of water
storage. The total cost of the reservoir system, including land,
administration, engineering and construction., is estimated to be
$2,058,815.
2. The current population estimate far the City of Central
Point, which. also equals the water service population, is 8,520.
3. The U.S. Department of Commerce 1990 Census of Population and
Housing Report indicates that the City of Central Point has 2.71
people per housing unit.
4. An average household has a 3/4 inch meter which equals one
(1) Equivalent Meter Unit (EMU).
5. The November 1990 CH2MHi11 Study on Water Supply and Storage
for the City of Central Point determined that:
a. The capacity requirement on the reservoir is based upon
the average daily demand (ADD) of 165 gallons per capita per day
used in Central Point, which equals 1,405,800 gallons.
b. The reserve storage requirement of the reservoir is one-
half of the average daily demand, which equals 702,900 gallons
per day;
c. Maximum daily demand is 2.5 times average daily demand,
which equals. 3,514,500 gallons per day;
d. The equalization storage requirement of the reservoir is
0.3 maximum day demand, which equals 1,054,350 gallons;
e. The fire storage requirement is 630,000 gallons.
Canacit~Remainina in the Reservoir
6. The current (May 1994) capacity demand on the reservoir is
the population of 8,520 in 2 above times average daily demand of
165 gallons per capita per day in 5a above times 1.25 (0.5 from
5b + 0.3*2.5 from Sc and 5d) plus 630,000 from Se, which equals
2,387,250 gallons (8,520*(165*(0.5+0.3*2.5)))+630,000).
2 - RESOLUTION N0. ~_ (072994)
7. Total reservoir capacity of three million gallons from 1
above minus May 1994 capacity demand on the reservoir of
2,387,250 gallons from 6 above leaves 612,750 gallons of
remaining capacity in the reservoir for future users.
8. The. current capacity demand. per capita on the reservoir
equals 2,387,250 gallons from 6 above divided by the May 18, 1994
population of 8,520 in 2 above resulting in a capacity demand per
capita of 280 gallons.
9. The current capacity demand per capita of 280 gallons from 8
above times 2.71 people per household in 3 above equals a
capacity demand per household of 759 gallons.
10. One household equals 1 EMU from 4 above and the May 18, 1994
capacity demand per household is 759 gallons from 9 above;
therefore, the May 18, 1994 capacity demand per EMU is 759
gallons.
11. The 612,750 gallons of
divided by the May 18, 1994
gallons from 10 above equals
of about 807 EMUS.
remaining capacity from 7 above
capacity demand per EMU of 759
a demand capacity for future users
Cost of Benefitted EMUS
12. Construction is currently adding two million gallons of
water to system storage. Of that, 612,750 gallons is for future
users from 7 above resulting in 31% of the added capacity
benefitting future users.
13. Total construction cost is $2,058,815 from 1 above, and 310
of the construction benefits future users from 12 above;
therefore, $630,769 ($2,058,815*.31) of the construction. is
benefitting future users.
14. The benefit to future users of $630,769 divided by the
capacity demand for future users of about 807 EMUS in 11 above
results in a cost per total benefitted EMU of $781, rounded down
to the nearest dollar.
Determination of the SDC Reimbursement Fee
15. Section 3 sets forth an Equivalent Meter Unit (EMU) for each
size meter. After determining the EMU per meter size, the SDC
reimbursement fee is calculated by multiplying the EMU per meter
size by the $781 per benefitted EMU in 14 above.
3 - RESOLUTION NO. ~Oy (072994)
Summarv of Methodolo
1. Capacity Available for Future Users 612,750 gallons
2. Capacity Demand per Capita 280 gallons. per
person
3. Number of Persons per Household 2.71
4. Capacity Demand per Equivalent Meter
Unit (EMU) 759 gallons
5. Capacity Demand Available for Future
Users 807 EMU
6. Cost of Existing Reservoir System $2,058,815
7. Percentage of Costs Attributable to
Future Users 310
8. Costs Attributable to Future Users $630,769
9. Cost of Unused Capacity for Future Users $781 per EMU
Section 3. Reimbursement .Fee and Collection. Effective
August 5, 1994, a water reservoir system development charge
reimbursement fee for any development subject to CPMC Chapter
11.12 in the amount of $781 per Equivalent Meter Unit (EMU) shall
he collected by the Public Works Director upon connection to the
City's water system or upon issuance of a permit to expand
Equivalent Meter Units in cases where connection has already been
made. The Public Works Director shall not issue the applicable
permit until such charges have been paid in full.
The following conversions between meter size and Equivalent
Meter Units shall be applicable:
Size of Connection
Equivalent Meter Units.
3/4 inch meter 1.00 EMU
1 inch meter 1.67 EMU
1-1/2 inch meter 3.33 EMU
2 inch compound meter 5.33 EMU
3 inch compound meter 10.67 EMU
4 inch compound meter 16.67 EMU
6 inch compound meter 33.33 EMU
8 inch compound meter 53.33 EMU
10 inch compound meter 76.67 EMU
12 inch compound meter 104.75 EMU
Passsd by the Council and
its passage this. ~_ day of
by me in authentication of
~~, 1994.
4 - RESOLUTION NO. ~~ (072994)
ATTEST:
~D.N,~ ~P
City Re ese tative
Approved by me this _~ day of ~i ~ .pf 1994.
5 - RESOLUTION N0. rf0~ ( 0'72994 )