HomeMy WebLinkAboutCouncil Resolution 928RESOLUTION NO. qa~
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 charges (SDCs).
2. By Resolution No. 685, dated September 1, 1994, the City of Central Point established a
Water Treatment and Transmission Facilities systems development charge in the amount of
$456.08 per equivalent residential unit (ERU).
3. By Resolution No. 810, dated December 10, 1997, the City of Central Point modified its
Water Treatment and Transmission Facilities systetns development charge and increased said
charge to $548.91 per equivalent residential unit (ERU).
4. The City received a report from the Medford Water Commission (MWC) entitled "Systems
Development Charge Study" dated July 2001 which revised the previous SDC report dated
May 1997 to more accurately reflect the cost of existing improvements and forecasted
improvements to its water 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 Facilities SDC established by
Resolution No.685 and modified by Resolution No. 810 shall be increased to $782.69 per ERU,
effective as of January 1, 2002. Details of the methodology used in the determination of the SDC
are provided in the MWC July 2001 SDC Study, which is by reference incorporated into this
resolution as Exhibit A.
Section 2. The charges used in the SDC calculation consist of an SDC for water treatment plant
expansion and an SDC for water transmission facilities improvement. The SDC for water treatment
plan expansion is hereby increased to $435.80 per ERU, and the SDC for water treatment facilities
improvement is hereby increased to $346.80 per ERU. 100% of the total SDC of $782.69 per ERU
is an improvement fee.
Section 3. The schedule establishing the SDC for each water meter size is set forth in Exhibit
A. The SDC for 4" and larger water meters will be calculated by establishing the maximwn month
day (MMD) demands for a new customer which will be converted to ERUs. The resulting ERUs
will then be multiplied by $782.69 per ERU to determine the SDC. When an existing water meter
is replaced with a larger water meter, the SDC will be the difference between the SDC for the
existing water meter size and the SDC for the new water meter size.
Passed by the Council and signed by me in authentication of its passage this ~~~day of
~s~ ~ p~r~; -2001.
~ Vic,<.~ ~~,~<=~;~~ \
j Mayor Bill Walton
ATTEST: i1
City Representative
Approved by me this 3 D~~day of `(~py e.~v.~p~5~~ , 2001.
_~,
Mayor Bill Walton
Medford Water Conuniss+o+t System Development Charge Study
EXECUTIVE SUMMARY
INTRODUCTION
The Medford Water Commission (MWC) and the communities we serve have used
System Development Charges (SDCs) since 1994 to fund the expansion of the Duff Water
Treatment Plant and transmission facilities. This report is an update of the 1997 SDC
Study. MWC has historically made little use of SDCs, but has relied on debt financing
(revenue or Bancroft bonds] and water rates to fund plant expansion. Since 1983, file
Commission has made a consensus decision not to utilize any additional debt financing,
and has relied solely on water rates for plant expansion.
Reserves that could once be used for capacity-increasing projects are now required to
comply with higher state and federal standards. This will mean significant increases in
revenues to meet the overall capital needs of the system. SDCs provide an alternative
funding source for costs due to growth which can help limit water rate increases.
SUMMARY OF WATER SYSTEM
The Big Butte Springs are the primary water source for the system. During normal years,
the springs produce and supply 26.4 MGD of water daily to the system. During the winter
months demands are normally around 15 MGD. When summer demands for water
exceed the Spring supply, normally May through September, additional water is produced
at the Duff Water Treatment Plant on the Rogue River.
As of 2001 there is approximately 20.0 MGD of excess treatment and transmission
capacity in the system. Ali of the treatment, transmission, and storage facilities with
excess capacity can be a basis for system development charges as well as future
additions to capacity. MWC has a Water System Plan to the year 2030 and aTen-'rear
Capital Improvement program to help in providing excess capacity in advance of new
development.
WATER SYSTEM GROWTH
SDCs require new residences and businesses to "buy-in" to the water system. Customer
growth has been steadily increasing over the past 15 years and is expected to continue.
As our population increases so does the demand for water. The total maximum day
demand is the critical design criteria utilized in the design of plant and transmission
facilities. By the year 2014, the estimated total maximum day demand will be 70 MGD.
The current maximum day capacity of the Commission's plant and transmission facility is
71.4 MGD, so expansion of these facilities will be needed by the year 2014.
Revised -July 2001 page - ii
Medford Water Contrnissiort
System Development Charge Study
The three major components of the water system which need to expanded in order to
increase the maximum day capacity of the system are the treatment plant, transmission
mains and transmission pumping facilities. All three components must be built in order to
increase the effective capacity of the system.
SYSTEM DEVELOPMENT CHARGE CALCULATIONS
SDCs can either be reimbursement fees or improvement fees or both. In the case of the
Medford Water Commission it is straightforward to use existing records and plans and
calculate both reimbursement fees and improvement fees for treatment and transmission
projects over the period from 1980 to 2011. The existing records of project costs will be
used for the SDCs from 1980 to the present. The MWC Ten-Year Capital Improvement
Program based on the Water System Plan will be used for the improvement fees for
projects from 2001 to 2011.
In reviewing the capital program from 1980 to 2011, thirty-seven capital improvements
were identified which effectively raise the capacity of treatment plant and transmission
facilities. These projects are listed by their installation date or anticipated construction
date, original or estimated cost and the cost in 2001 dollars per equivalent residential unit
(ERU). Costs for source of supply were not included nor were costs for additional storage
although storage will need to be added to the system after 2011.
Based on the above calculations the SDC for the water treatment plant and transmission
facilities will be $782.69 per equivalent residential unit (ERU). 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 funds collected would be earning
interest until expended on new facilities. The intention of the SDC would be to fully fund
the needed additions to system capacity.
The SDC for sizes 5/8 x 3/4 to 3" shall be based on the maximum meter capacity utilizing
weighting factors as shown in the table. For sizes 4" and larger, SDCs shall be based
upon tt;e estimated PAaximum Month /Day demands divided by 1200 yai(ons / ERU, times
the unit ERU charge of $782.69. The SDC charges presented in this section are based on
the design criteria as developed by existing demands, the actual cost of existing facilities
and generally accepted rate making principles.
Revised -July 2001 page -iii
Medford Water Commission
System Development Charge Study
SYSTEM DEVELOPMENT CHARGES
58"/3/4" thru 3"
Meter
Size Maximum
Capacity Weighting
Factor
SDC
5/8" x 3/4" 15 1 $ 782.69
1 " 35 2.33 $ 1,823.67
1-1/2" 100 6.67 $ 5,220.54
2" 160 10.7 $ 8,374.78
3" 320 21.3 $ 16,671.30
4" and Larger Meter Calculations
`Maximum Month Day (MMD)
Maximum Day per ERU
1200 gal/day
Number of ERUs =
MMD/1200 gal =
SDC per ERU
$ 782.69
System Development Charge
_ $782.69 x Number of ERUs =
Maximum Month Day -The total water utilized during
the maximum month (normally 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.
Revised -July 200] page - iv
~~
QO
L
U
N
Q
O
w
/'~
V
v
O
U
t
b
`~
w O ~ T a ~ ~ ( ^O n 0 V c M0 r ~ 0 ~ ~ r O r N
O
~ t 0
N (
O N
M N
M m
N t
p
W
O
W
N t
D
O
N
r
~
O
ry
N
rn N M
h O
N ~ M
O O M w rn
~ _
~ M ~ V ~ N c 0 f V O i C1
~-- h ] ~
__ V i f A ~ A V
_. i V
_._ i
. M V
_ ) 4
.. _ i »
_ h f
_ A U i i A f 7 » M I A ~ 4 3 ~ i Vi N ( n t o N N fA
_ _ _ _
_
_
- M 1! ~ ( n I n H f N
a'.
p
N O !
M ~ rn
W M
O ~ r
M O
N
O W r
~ N
~ r
y M M
N (
N p ~
N D
~ N
M W
~
{ . j } M t p ~ f rn .M _. ~ _ _ _.
. _ _
} O _
O _.
m W ( V I ~ N c N 1 ~ m N ( O O < M 0 0
N ~ N n rn rn a M W N O M
J
a w N ' - W N
N
~ V
<
V (
M V t D
cD N i(i O l p
N Q
° v ~( n v ~ v i v 3 r a v a v i v i ti ~ » M w (n N . n . ' - O
~
o _._
0
0
0 _
0 _
0
0
0 _ _
0 0 _
0 _
0
0 _
0
0
0 _
o _ n
_ Vi 4 3 V i N N M to N M N H
~
w ~ ~
Y-
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 r
~n
tD 0 0
0 0 0
0 0
0 0
0 0
0 0
0
0
0
0
0
0
0 ~-
& ~ ~ ~ ~ h N~ N N ~ N ~( ) N w N ~ N N h h h N N h O O O O
$ N N N N N N N N N N N N N N N N N n n
M r r n n r W N N
M M M M M M N N N
@ •
5 ..
V rn
° M
N N
~ rn
r W
O N
W V O
N
~_ -
-
__
_
~
_
t
O '
N M M ~
,~
O O O ~ q n
W .
- ~( M t
() N
~ ~ M (V
N
M 69 fA fA W y~ 6I3 Vi f9
`o
n
rn
rn
N
rn
rn ~
. ~ W N W O M 0 0 0 0 0 0 0 0 O
~ V
W
N
~
W
~
'
M
rn
O)
W
M
0
O
0
O
0
O
0
O
O
h
O
~
O
0
O
O
~ A
W
O
~
O
p t~ O N
G
~
~
~
~
°
^
N 0 O M f
0 W N 1~ O O p~ p ~
~ N M < N h ~ O ~ .
- N N ? N e
!
n
~ W N O h
_ N t p N N N N ~ ~
w N
c ,-
'-
~
Z f9 t9 W (9 iR Vi (9 19 Vi N Vi 43 69 (9 69 i9 f9 W
viw
w
u~
va
(a ~
O w vi v~ vi i
q
~ t
~ rn W r r O V U M N M M
V
V
Yi
~l1
(O
N rn M (O In M ~
Z
L C
- - -
L <
._
L ~O
m N
ro M
m M
m O
rn tp
m tD
rn !~
01 O
0 N
0 M
0 M
0 V
0 .}
0 ~
0
0
0 ~
3 i
rn
rn
m
rn
m
rn
rn
.-
0
0
0
0
0
0
0
0
0
0°
rn rn
rn
rn
m
°
°
°J
o'
°' ~
L ~ N N N N N N N N N ry ~ o
N o
N rn m rn R
-
u -
a
O
~
~
MM
~
M v
rn v
°'
~
~
o
m
"+
v
~o
o'
n
v
m
- O ~ N N M N OJ N N W OJ ~ f b ~ ~ m tb ^ N
N E
V Y ~
J V Q ~+ v
i ~ p O m o O E
~ c h ~ N j O ~ ~
'
r
c
~ ~
~ E y ~ N R
X
_ _
Z
0 C
o n ~ f ~ Y w
0 c0 Z ° ~ c ~
Z' a ~ co ~ O O ~ ~ a v
a o ~ ~ n Z ° ~ r ~ o
c n Y a c
~ E te
w y w „ ~ .
r.. ~
n N H
J c
p L 1 o
n
N N rl
N Z U
w C
~ ~p m
~ m W
~ a F
a ~ n o v o m a
i C
! .
- ~ ~ ~ ~
~ r o E m e ~ c a 0 .
y ~ o o s s '~
~ ~ E c ~ n °
' n ~ ~ d 0 ~ °- n w o .W E ~ ~ y ~ a. $
o r
w a
° m w E v a c o > > ~ w~ ~ L ~ `~ ~ ~ ~n ~e
~ yy- E c m a w o- c c m a N h a s F- f ~ ~ ~ m m r m z a ~' u
~. r J C ~ N O N ~ yy =2 N N h y ~ y O ~ d 1L
~
x W N d
y 9 0
l0 N L
_ ~ 0
' .
C O ( p ( gyp ° N
O U K
r C E
C N
m 0 N m m d ~ ~ Vay
pl
p C ~
r Q -
~
~
~ (I U N YI
K N 1 ~
~
'
3
~
'~
3
3
a
E ,.
i
Q t
w c
- v
- c
m °i
m m
c m
c ' c p? c c «
v b
v rn
a rn
o N
s ~
r 1 W- ' ~
a ~
~ x ~
~ ~ ` Pi M ' ~ `Fi m E ° . $j
'6' w
o x LL ac > ~ ~ a LL `a a` w w in vi = = <w rc°~ - = = ? > > a. m
u' ~ ~ > > > V a > > > 7 C ~ ~ ~ ~ LL c j m ~ _
~ _
~, ~ ~ ~ ~ ~ ~
v
O
0
K
O
O
O Q
Q
O
O
O ~ >
O >
>
p
>
p
O
>
O
>
O
~ O
~
(
~ @
o U
m
a a
m
a
m
n
m
L
a
m
m
L
c
~ Zi
~
K . a ~ ¢ ~
_
~ - N M Y h [ O t ~ M W r ? ^ ~ eM - r ~ ~ ~
~ ~
(V (~
1 <
h (
D
~
Z
Q
' _ I ~ N ~
3L
I( W151 10~ ~ ~ t uvr u U3{ ~IN1 1$tg J poi ~ ~
h
ti
4
0
O
'~
h
~i
Medford Water Commission
III. COMPLIANCE COSTS
System Development Charge Srudy
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 will 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 identified 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 $782.69 fora 5/8" x 3/4" metered service. 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" thru 3"
Meter
Size Maximum
Capacity Weighting
Factor
SDC
5/8" x 3/4" 15 1 $ 782.69
1" 35 2.33 $ 1,823.67
1-1/2" 100 6.67 $ 5,220.54
2" 160 10.7 $ 8,374.78
3" 320 21.3 $ 16,671.30
Revised -July 2001 Page -16
Medford Water Cornmissiort
System Development Charge Study
4" and Larger Meter Calculations
`Maximum Month Day (MMD)
Maximum Day per ERU
Number of ERUs =
MMD/1200 gal =
SDC per ERU
System Development Charge
_ $782.69 x Number of ERUs =
1200 gal/day
$ ~ 82.u9
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.
VI.
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.
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.
Revised -July 2001 page - 17