HomeMy WebLinkAboutCouncil Resolution 810RESOLUTION N0.41O
A RESOLUTION MODIFYING THE CITY'S WATER TREATMENT AND
TRANSMISSION FACILITIES SYSTEMS DEVELOPMENT CHARGE
Recitals
1. Oregon Revised Statutes Chapter 223 and Central Point Municipal Code Chapter 11.12
authorize enactment of systems development chazges (SDCs).
2. By Resolution No. 685, dated September 1, 1994,. Central Point established the SDC for
the collection of an SDC for the Medford Water Commission's (MWC's) water treatment and
transmission facilities, in the amount of $456.08 per equivalent residential unit (ERU).
3. The City received a report from the MWC entitled "System Development Chazge Study",
dated May 1997, (hereinafter referred to as the "May 1997 SDC Report") which revised the
original SDC report dated February 1994 (revised) to more accurately reflect the cost of existing
improvements and forecasted improvements to the treatment and transmission facilities.
Now,. therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CENTRAL POINT,
OREGON, AS FOLLOWS:
Section 1: The City's Water Treatment and Transmission SDC established by
Resolution No. 685 is hereby modified and the SDC shall be increased to $54891 per ERU,
effective as of 7anuary 1, 1998.. Details of the methodology used in the determination of the
SDC aze provided in the MWC's May 1997 SDC report, which is by reference incorporated into
this resolution.
Section 2: Svstem Development Charge Methodology; compliance costs are no
longer chazged in the calculation of the SDC.
Section 3: System Development Chazge Calculations: The chazges used in the SDC
calculations consist of an SDC for water treatment expansion and an SDC for water transmission
facilities (including pumping stations). The SDC Chazge for water treatment expansion is hereby
increased to $268.09,. and the SDC charge for transmission facilities is hereby increased
to $280.82. Of the total SDC of $548.91, $395.35 is for the reimbursement fee and the
remaining $155.56 is the improvement fee.
Section 4: The schedule applying $548.91 per ERU SDC for the different water
meter sizes up to and including 3-inch-diameter,. is provided in Exhibit A. Applicable chazges
for 4-inch diameter and larger meters will be determined by the maximum month day demands
1 -RESOLUTION NO. g\~ (120497)
of the new customer which will be converted to ERUs as detailed in Exhibit A. The determined
ERU will then be multiplied by $54&.91 per ERU. SDCs for enlarging services shall be the
difference between the new meter and the existing meter.
Passed by the Council and signed by me in authentication of its passage this _ f ~hday of
~ eCe~cv.~!3r.~' , 1997.
Mayor Rusty McGrath
ATTEST:
City Representative
Approved by me this ~ day of ~~~~~~ , 1997.
Mayor Rusty McGrath
1 -RESOLUTION NO. ~!y, (120497)
EXHIBIT "A"
III. COMPLIANCE COSTS
The cost to the Commission for compliance with the Oregon Law in determination of
SDCs include the cost of engineering, legal, administrative and the cost of establishing
and. conducting review and accounting for revenues and expenditures. Compliance
costs were collected during the original 1994 SDC, but wilt not be collected any longer.
IV. CREDITS OR OFFSETS
In reviewing the financial practices of the commission, no credits are applicable in the
SDC calculations because it is intended that the SDCs would substitute in full for the use
of bonds to fund increased capacity in the system. Capital projects to increase the level
of service through higher standards of water treatment would be paid for through water
rates and through SDCs. It is not anticipated that any of the ident~ed capital projects to
be funded with SDCs are the type of project that a developer would find feasible to build
as a part of a new development.
V. SUMMARY OF SYSTEM DEVELOPMENT CHARGE CALCULATIONS
Based on the previous calculations, the SDC for the water treatment plant and
transmission facilities will be $548.91. This amount recognizes new development's
share as a portion of the capital cost of the system. It also recognizes the time value of
money for facilities invested while counted on funds collected to be earned on new
facilities. The intention of the SDC would. be to fully fund the needed additions to system
capacity. Outlined below are the SDC for meter 5/8"x 3/4" to 3" and a outline of the
calculations for 4" and larger meters.
SYSTEM DEVELOPMENT CHARGES
58"/3/4" thro 3"
Meter
Site Maximum
Capacity Weighting
Factor
SDC
5/8" x 3/4" 15 1 $ 548.91
1 ~~ 35 2.33 $ 1,278.96
1-1/2" 100 6.67 $ 3,661.23
2" 160 10.7 $ 5,873.34
3" 320 21.3 $ 11,691.78
May 1997 -Revised Page - 17
EXHIBIT "A" (con't)
Medford Water Commission System Development Charge Study
4" and Laroer Meter Calculations
` Maximum Month Day (MMD)
Maximum Day per ERU 1200 gal/day
Number of ERUs =
MMD/1200 gal =
SDC per ERU $ 548.91
System Development Charge
_ $548.91 x Number of ERUs =
Maximum Month Day -The total water utilized during the
maximum month (July or August) divided by the number of
days (normally 31). The MMD will be supplied by the
owner. The utility may require verification of the
estimated MMD.
Meters larger than 4"which are used for combined fire and consumption demands will
utilize the same formula as outlined above. The actual MMD of each large account will
be verified at 1, 3 and 5 year intervals. Refund and/or additional SDC will be collected if
the amount of the actual MMD is 10% greater or less than the estimate provided by the
owner.
VI. NEXT STEPS
Upon review of this report by the SDC member organizations,. there are several steps to
be completed before SDC fees would be collected. These would include modification of
ordinance and resolution language, cooperative agreements with other city and district
customers. Each year after the establishment of SDCs there would be a review of the
SDCs to confirm the correct amount is be charged. Adjustments may be necessary as
new information becomes available about costs, system needs, or other changes.
May 1997 - Rewsed Page - 18