HomeMy WebLinkAboutCouncil Resolution 709RESOLUTION N0. ']D 9
A RESOLUTION ESTABLISHING A WATER SUPPLY
SYSTEM DEVELOPMENT CHARGE, INCLUDING IMPROVEMENT FEE,
IMPROVEMENT PLAN, AND METHODOLOGY THEREFOR
Recitals
1. Oregon Revised Statutes Chapter 223 and Central. Point
Municipal Code Chapter 11.12 authorize enactment of systems
development charges.
2. The City purchases its municipal water supply from the
City of Medford, by written agreement with the Medford Water
Commission. The present agreement is currently being
renegotiated. One of the City of Medford's policies, set forth
in Medford Water Commission Resolution No. 784, is that all
future water supply agreements between Medford and other cities
shall contain provisions requiring the other cities to plan for
the long-term acquisition of additional water supplies to meet
future demands.
3. One of the City's options in procuring additional water
supplies is to purchase water storage capacity behind Lost Creek
Dam from the U.S. Army Corps of Engineers.
4. The engineering firm CH2MHill has prepared a methodology
calculating a system development charge, based upon the City's
per capita water demand, the number of people per household, and
the cost of purchasing water storage from Lost Creek Lake. The
CH2MHi11 methodology concludes that the water supply system
development charge should be set at $337 per equivalent meter
unit, as set forth herein.
Now, therefore;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CENTRAL
POINT, OREGON, AS FOLLOWS:
Section 1. Improvement Plan. The following capacity-
increasing capital improvements shall be eligible for expenditure
of improvement fees collected for the water supply system
development charge: A sinking fund to purchase water storage
behind Lost Creek Dam.
Additional capacity-increasing capital improvements relating
to the acquisition of a municipal water supply may be added to
the improvement list from time to time by resolution of the City
Council.
1 - RESOLUTION NO. 7 D q (100494)
Section 2. Methodoloov. The methodology for the
improvement fee. described herein is set forth in Exhibit "A", the
September 29, 1994 letter from CH2MHi11, David Hasson, Ph.D.,
Senior Economist, addressed to Larry R. Blanchard, Public Works
Director for the City of Central Point. Such letter is attached
hereto and by reference incorporated herein.
Section 3. Improvement Fee and Collection. Effective
November 4, 1994, a water supply system development charge
improvement fee for any development subject to CPMC Chapter 11.12
in the amount of $337 per equivalent meter unit (EMU) shall be
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" Meter 1.00 EMU
1" Meter 1.67 EMU
1-1/2" Meter 3.33 EMU
2" Compound Meter 5.33 EMU
3" Compound Meter 10.67 EMU
4" Compound Meter 16.67 EMU
6" Compound Meter 33.33 EMU
B" Compound Meter 53.33 EMU
10" Compound Meter 76.67 EMU
12" Class 1 Turbine 104.75 EMU
Section 4. For purposes of ORS 310.145, the City hereby
classifies this SDC fee as an "other fee".
Passed by the Council and signed by me in authentication of
its passage this ~ day of ~r4//~u.~ , 1994.
~~-'~~ Leon Ellson, Council
ATTEpST: President
C~ Re senta
Approved by me this _~ day of ~ / , 1994.
1
Mayor Roger Westensee
2 - RESOLUTION NO. '7.~ 9 (100494)
EXHIBIT ~[~,
Engineers
Planners
~ Economists
Scientists
Portland Office
September 29, 1994
OPW39511.A0
Larry R. Blanchard
Public Works Director
155 S. Second St.
Central Point, Oregon 97502
Dear Larry:
Subject: Lost Creek Lake Water Storage SDC
We have examined the information provided by the City of Central Point and the pro-
posed contract between the City and the U.S. Army Corps of Engineers (COE) to provide
water rights to the City from the Lost Creek Lake Reservoir on a per acre-foot per year
basis. A system development charge (SDC) is calculated herein to provide the City a
basis for obtaining reimbursement from new customers.
According to City records, annual water use per household is 0.50 acre-feet. This is
based on per capita water use estimated from the 1991 Water Supply and Storage Study,
and is calculated as follows: annual household water use (0.50 acre-feet) =per capita
water demand (165 gpcd) * number of people per household (2.71 people/household)
365 days * conversion factor (1 acre-food325,851 gallons per acre-foot). According to
the contract between the City and COE, the cost of the rights to one acre-foot of water
per year is $674.13. According to Article 9 of the contract, once the $674.13 per acre-
foot is paid in full "the City shall have a permanent right" to the acre-foot of water. This
is similar to the purpose of an SDC, which is to make a one time payment for the right to
use the water system.
To calculate the SDC, the annual water use per household is multiplied by the cost of
providing the water. In this case the calculation is:
0.50 * $674.13 = $337.07
SeMng Oregon and Southwest Washington from iwo locations:
Portland OKae 825 N.E. Multnomah, Suife 1300, Podland, OR 97232-2146 503.235.5000 503.235.2445 FAX
Corvallis Office 23~ NW Walnut Blvd., Corvallis, OR 97330-3538 503.752.4271 503.752.0276 FAX
Thus, the recommended one time SDC is $337 per household. Note that in the contract
between the City and COE, there are provisions for operations. and maintenance costs and
major replacement costs. By Oregon law, these costs cannot be included in the calcula-
fion of an SDC.
Please feel free to contact me if you have any questions concerning this matter.
Sincerely,
2M HILL
David Hasson, Ph.D.
Senior Economist
T.L./
c: Paul Berg/CH2M HILL/CVO
Doug Engle