HomeMy WebLinkAboutItem 11 Regional Wastewater System Development Charge (SDC) Fee Modifications Effective March 1, 2017 AGENDA ITEM SUMMARY Meeting Date: 2/6/2017
Meeting Type: Regular Meeting
Staff Contact/Dept.: Matt Stouder/K. Bishop Staff Phone No: 541-726-3674 Estimated Time: 10 Minutes
S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and
Innovative Government
Services
ITEM TITLE: REGIONAL WASTEWATER SYSTEM DEVELOPMENT CHARGE (SDC) FEE
MODIFICATIONS EFFECTIVE MARCH 1, 2017
ACTION REQUESTED:
By motion, authorize the City Manager to implement the 2017 Regional
Wastewater SDC Fee Schedule effective March 1, 2017.
ISSUE STATEMENT: In 2016, the Metropolitan Wastewater Management Commission (MWMC)
restructured its debt obligations, resulting in a significant cost savings. Subsequently, the MWMC modified the Regional Wastewater SDC Project List to
reflect the most current capital project and financing costs, resulting in SDC fee
modifications as outlined in the attached 2017 Regional SDC Fee Schedule. The MWMC adopted the new SDC fees on January 13, 2017 and requests that
Springfield implement the new fees.
ATTACHMENT: 1. MWMC Resolution No. 17-01with fee schedule
In 2016, the MWMC restructured its debt obligations by paying off revenue bonds
issued in 2006, plus an advance refunding of the revenue bonds issued in 2008.
This resulted in a lower debt obligation and significant interest cost savings.
To ensure equity and fairness of the Regional Wastewater SDC fee amounts, a
review of MWMC’s SDCs by establishment type (residential, commercial, industrial), including the strength of the wastewater discharge, was completed. The
SDC data was applied using the existing 2009 MWMC SDC methodology. With
assistance from Galardi Consulting, the analysis included refreshing the SDC capital project list (2017 thru 2027) and associated financing costs to reflect current
data. The resulting 2017 Regional Wastewater SDC Fee Schedule is included with Attachment 1.
The MWMC held a public hearing to discuss the proposed changes on January 13, 2017. In
summary, the fee outcomes on a percentage
change are outlined in the table at right. Low strength includes residential (single family,
multi-family, etc.) and some low strength
commercial development. The low strength SDC fee increased by 2.384%, which
corresponds to a per dwelling unit increase of
less than $40. The medium to super high strength discharge for commercial and industrial SDC fees result in decreases ranging from -0.758% to -4.614%.
Normally an inflationary adjustment is applied to the MWMC SDC fees based on the Engineering News Records (ENR) Construction Cost Index (CCI) each July
1.This year’s adjustment would be 3.0% for all development types. Given that the 2017 MWMC SDC fee schedule will be implemented on March 1, 2017, the MWMC has determined that an inflationary adjustment will not occur on July 1.
Regional SDC
Fee Change
Low 2.384%
Medium -0.758%
High -2.798%
Very High -3.912%
Super High -4.614%
Wastewater
Discharge Strength
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Metropolitan Wastewater Management CommissionRegional Wastewater SDC Analysis12/9/20162017 Project List (adopted via MWMC Resolution 17-01) Present ValuePercent AllocatedProjectTotal Bond Funded Interest 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Total Growth to GrowthCollection System/Influent PumpingGlenwood Pump Station Upgrade$926,000926,000926,000 38.2% 354,059 River Avenue Improvements$649,827$455,923 $192,876649,827 0.0%- Subtotal$1,575,827 $455,923 $192,87600 926,0000000 000 01,575,827 $354,059Liquids TreatmentInfluent PS/Wilakenzie PS/Headworks$37,707,518$22,960,320 $9,713,23637,707,518 38.2% 14,417,580Primary clarifier enhancements$3,176,879$2,054,467 $869,1313,176,879 64.7% 2,055,627 Primary sludge thickening outside of primary clarifiers$6,623,134$5,125,715 $1,497,4196,623,134 64.7% 4,285,557 Additional odorous air treatment$10,030,479$8,596,392 $1,434,08710,030,479 26.0% 2,612,313 South aeration basin$12,129,573$8,484,951 $3,589,51112,129,573 58.7% 7,122,838 North aeration basin$16,500,000$0$0500,000 4,000,000 12,000,00016,500,000 58.7% 9,689,279 Secondary clarifier enhancements$11,436,767$7,396,084 $3,128,87211,436,767 41.6% 4,753,866 9th & 10th secondary clarifier$6,565,551$4,245,900 $1,796,2046,565,551 64.7% 4,248,298 Conversion to sodium hypochlorite disinfection$6,361,098$4,413,845 $1,867,2536,361,098 25.5% 1,621,115 Filtration$26,328,903$9,626,336 $2,470,2144,000,000 10,500,00026,328,903 41.6% 10,965,140 Peak Flow Mgmt Alternative 2 - High rate clarification $20,598,470$13,015,433 $5,506,10720,598,470 29.4% 6,058,373 New Bankside Outfall$3,784,334$2,649,782 $1,120,9763,784,334 38.2% 1,446,951 Subtotal Liquids Treatment$161,242,705 $88,569,225 $32,993,0090000004,000,00010,500,000500,0004,000,000 12,000,000161,242,705 $69,276,937Treatment -- BiosolidsWPCF Lagoon Removal/Decommissioning$4,690,000$0$0390,000 4,300,0004,690,000 0.0%- Waste Activated Sludge Thickening$0$0$0- - Digestion Expansion/Class A Capability$21,456,899$12,180,008 $5,152,6854,124,20621,456,899 54.3% 11,645,468 Digestion Mixing Improvements$3,868,106$2,521,806 $1,066,8363,868,106 65.9% 2,548,151 Biocycle Farm Phase 2$379,695$224,422 $94,940379,695 22.2% 84,202 Biocycle Farm Phase 3$438,447$308,096 $130,338438,447 22.2% 97,230 Biocyle Farm Hose Reels$451,402$166,441 $70,412451,402 22.2% 100,103 Composting facility$0$0$0- - Biosolids Mgmt Facility (BMF) - Line lagoons 1$4,592,087$3,212,326 $1,358,9574,592,087 0.0%- BMF - Line lagoons phase 2$1,743,560$1,224,960 $518,2131,743,560 0.0%- BMF - Line lagoons phase 3$1,455,777$1,017,418 $430,4131,455,777 0.0%- BMF - Line lagoons phase 4$1,943,606$1,365,705 $577,7541,943,606 0.0%- Repairs/Partial Replacement of Biosolids Forcemain$2,517,975$1,769,428 $748,5472,517,975 0.0%- Subtotal Biosolids$43,537,553 $23,990,610 $10,149,0944,514,206 4,300,00000000 000 043,537,553 $14,475,154Support Facilities Maintenance Facility Improvements$15,714,304$1,696,577 $717,72713,300,00015,714,304 20.6%3,237,880 Fiber Optic Wiring$0$0$0- - Subtotal Support$15,714,304 $1,696,577 $717,727 13,300,000000000 000 015,714,304 $3,237,880Total Treatment$220,494,563 $114,256,412 $43,859,831Effluent Reuse$32,029,793$1,581,959 $358,834244,000 472,000 6,338,000 8,296,000 6,739,000 4,000,000 2,000,000 2,000,00032,029,793 26.1% 8,347,784 Other ProjectsTemporary Construction Management Facilities$124,580$0$0124,580 20.6% 25,669 Mixing Zone Study update$206,951$145,428 $61,523206,951 14.6% 30,294 Partial facility plan update (2015)$287,563$271,053 $16,510287,563 20.6% 59,251 Comprehensive facility plan (2019)$1,693,427$167,547 $70,880713,000 742,0001,693,427 20.6% 348,925 Partial facility plan update (2023)$350,000$0$0350,000350,000 20.6% 72,116 Comprehensive facility plan $1,200,000$0$0600,000 600,0001,200,000 20.6% 247,256 Wet Weather Flow Management Plan Update$586,162$449,986 $136,176586,162 10.8% 63,483 Support development of private lateral program$374,000$0$0187,000 187,000374,000 0.0%- Total Other$4,822,683 $1,034,014 $285,089$0 $713,000 $742,000$0$0$0 $350,000$0$0 $787,000 $787,0004,822,683 $846,994Totals$258,922,865 $117,328,308 $44,696,629 $18,058,206 $5,485,000 $8,006,000 $8,296,000 $6,739,000 $4,000,000 $6,350,000 $12,500,000 $500,000 $4,787,000 $12,787,000$258,922,865 37.28% $96,538,808ATTACHMENT 1 Page 3 of 5
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Metropolitan Wastewater Management CommissionRegional Wastewater SDC Analysis12/9/20162017 Project List (adopted via MWMC Resolution 17-01) Present ValuePercent AllocatedProjectTotal Bond Funded Interest 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Total Growth to GrowthCollection System/Influent PumpingGlenwood Pump Station Upgrade$926,000926,000926,000 38.2% 354,059 River Avenue Improvements$649,827$455,923 $192,876649,827 0.0%- Subtotal$1,575,827 $455,923 $192,87600 926,0000000 000 01,575,827 $354,059Liquids TreatmentInfluent PS/Wilakenzie PS/Headworks$37,707,518$22,960,320 $9,713,23637,707,518 38.2% 14,417,580Primary clarifier enhancements$3,176,879$2,054,467 $869,1313,176,879 64.7% 2,055,627 Primary sludge thickening outside of primary clarifiers$6,623,134$5,125,715 $1,497,4196,623,134 64.7% 4,285,557 Additional odorous air treatment$10,030,479$8,596,392 $1,434,08710,030,479 26.0% 2,612,313 South aeration basin$12,129,573$8,484,951 $3,589,51112,129,573 58.7% 7,122,838 North aeration basin$16,500,000$0$0500,000 4,000,000 12,000,00016,500,000 58.7% 9,689,279 Secondary clarifier enhancements$11,436,767$7,396,084 $3,128,87211,436,767 41.6% 4,753,866 9th & 10th secondary clarifier$6,565,551$4,245,900 $1,796,2046,565,551 64.7% 4,248,298 Conversion to sodium hypochlorite disinfection$6,361,098$4,413,845 $1,867,2536,361,098 25.5% 1,621,115 Filtration$26,328,903$9,626,336 $2,470,2144,000,000 10,500,00026,328,903 41.6% 10,965,140 Peak Flow Mgmt Alternative 2 - High rate clarification $20,598,470$13,015,433 $5,506,10720,598,470 29.4% 6,058,373 New Bankside Outfall$3,784,334$2,649,782 $1,120,9763,784,334 38.2% 1,446,951 Subtotal Liquids Treatment$161,242,705 $88,569,225 $32,993,0090000004,000,00010,500,000500,0004,000,000 12,000,000161,242,705 $69,276,937Treatment -- BiosolidsWPCF Lagoon Removal/Decommissioning$4,690,000$0$0390,000 4,300,0004,690,000 0.0%- Waste Activated Sludge Thickening$0$0$0- - Digestion Expansion/Class A Capability$21,456,899$12,180,008 $5,152,6854,124,20621,456,899 54.3% 11,645,468 Digestion Mixing Improvements$3,868,106$2,521,806 $1,066,8363,868,106 65.9% 2,548,151 Biocycle Farm Phase 2$379,695$224,422 $94,940379,695 22.2% 84,202 Biocycle Farm Phase 3$438,447$308,096 $130,338438,447 22.2% 97,230 Biocyle Farm Hose Reels$451,402$166,441 $70,412451,402 22.2% 100,103 Composting facility$0$0$0- - Biosolids Mgmt Facility (BMF) - Line lagoons 1$4,592,087$3,212,326 $1,358,9574,592,087 0.0%- BMF - Line lagoons phase 2$1,743,560$1,224,960 $518,2131,743,560 0.0%- BMF - Line lagoons phase 3$1,455,777$1,017,418 $430,4131,455,777 0.0%- BMF - Line lagoons phase 4$1,943,606$1,365,705 $577,7541,943,606 0.0%- Repairs/Partial Replacement of Biosolids Forcemain$2,517,975$1,769,428 $748,5472,517,975 0.0%- Subtotal Biosolids$43,537,553 $23,990,610 $10,149,0944,514,206 4,300,00000000 000 043,537,553 $14,475,154Support Facilities Maintenance Facility Improvements$15,714,304$1,696,577 $717,72713,300,00015,714,304 20.6%3,237,880 Fiber Optic Wiring$0$0$0- - Subtotal Support$15,714,304 $1,696,577 $717,727 13,300,000000000 000 015,714,304 $3,237,880Total Treatment$220,494,563 $114,256,412 $43,859,831Effluent Reuse$32,029,793$1,581,959 $358,834244,000 472,000 6,338,000 8,296,000 6,739,000 4,000,000 2,000,000 2,000,00032,029,793 26.1% 8,347,784 Other ProjectsTemporary Construction Management Facilities$124,580$0$0124,580 20.6% 25,669 Mixing Zone Study update$206,951$145,428 $61,523206,951 14.6% 30,294 Partial facility plan update (2015)$287,563$271,053 $16,510287,563 20.6% 59,251 Comprehensive facility plan (2019)$1,693,427$167,547 $70,880713,000 742,0001,693,427 20.6% 348,925 Partial facility plan update (2023)$350,000$0$0350,000350,000 20.6% 72,116 Comprehensive facility plan $1,200,000$0$0600,000 600,0001,200,000 20.6% 247,256 Wet Weather Flow Management Plan Update$586,162$449,986 $136,176586,162 10.8% 63,483 Support development of private lateral program$374,000$0$0187,000 187,000374,000 0.0%- Total Other$4,822,683 $1,034,014 $285,089$0 $713,000 $742,000$0$0$0 $350,000$0$0 $787,000 $787,0004,822,683 $846,994Totals$258,922,865 $117,328,308 $44,696,629 $18,058,206 $5,485,000 $8,006,000 $8,296,000 $6,739,000 $4,000,000 $6,350,000 $12,500,000 $500,000 $4,787,000 $12,787,000$258,922,865 37.28% $96,538,808ATTACHMENT 1 Page 3 of 5
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