2001-07-19 Enviromental Management Commission Minutes

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Minutes for Thursday, July 19, 2001Page 3 of 4 Why adoption a capacity assessment fee now? It’s one way to assign the cost of capacity to those who are actually using the service. And it is a condition from the State through the revolving fund loan program that we adopt this loan program The capacity assessment fee is calculated by the equity approach and the incremental cost approach. Both are recognized to helping procedures. Methodology has been described in the American Public Works Association, American Society of Civil Engineers and the Water Pollution Control Federation. Equity Approach is based on historical cost to construct the system, minus grants and divided up. Based on this approach, for single-family residence, it comes out to $621 per residence. Incremental Cost Approach is based on estimated cost to construct. This is a much higher rate at $4,346 per residence. Purely from an economic standpoint, the incremental cost approach is preferred because it closely estimates cost to provide wastewater system capacity for new customers. Proposed capacity assessment fee implementation: reduce financial impact on existing residents. For single-family residential customers: For existing: equity approach. If zone residential and currently subdivided: equity approach used for first dwelling; incremental for second dwelling. For new subdivision: incremental approach. Proposed capacity assessment fee implementation for multi-unit residential customers: Existing: equity approach. If zone residential and currently subdivided: equity approach. New subdivisions: incremental approach. For non-residential: Existing: equity approach. Future construction: incremental approach. The non-residential wastewater flow would be estimated by guidelines and estimated flow. It’s been based on what Maui used in their capacity assessment fees similar to the City and County Design Standards. We also have a provision if a developer comes in and shows that’s not going to be the water consumption, it can be adjusted accordingly. The provision would allow the County to verify non-residential flows and collect additional capacity assessment fees if the flow exceeds the initial estimate. Connection Fees. Basically intended to recover the administration and inspection costs associated with connecting new customers. The proposed fees of $160 per connection, based on 4 inspection hours and 2 administration hours. Building Sewer Loan Program. As a condition of past federal grants, the County is required to extend the sewer connections and hook-up existing neighborhoods. Connecting an existing house requires the homeowner to pay for a "building sewer" (the sewer facilities on private property between the house and the property line). In 1992, the County Council adopted a guarantee loan program. The participation has been limited, maybe 2 inquiries and without any applications received. Based on the Proposed Building Sewer Loan Program, the County would obtain State Revolving Fund (SRF) loan and transfer loan proceeds to dedicated account in the Sewer Fund. The loan proceeds would be used to fund building sewer construction and cover County engineering and administrative costs. Loan proceeds would be paid to contractor. Homeowner would repay the County at the same terms as County is repaying the SRF, currently 3 % - 3 1/2 %. A lien is placed on the property until the loan is repaid. The building sewer loan recipient must sign a loan agreement, grant the County an easement for the alignment of the building sewer, sign a construction right-of-entry agreement and sign a waiver of liability agreement. DISCUSSION AND DECISION MAKING ON HAWAI`I COUNTY COUNCIL BILL NO. 57 REGARDING CAPACITY ASSESSMENTS Kimo motioned that we write a letter to the Council recommending adoption of Bill No. 57 and that three concerns be addressed. 1. Maximum build out. 2. Section 21.49(a)(2), that the word "served" be defined. 3. That the effective date be amended to read "after June 30, 2002." Hugh seconded. 7 ayes (Asato, Bell, Frankel, Jones, Kawamura, Ono, Smith), 1 nay (Witcher) and 1 excused absence (Martin). Motion carried. Riley suggested that we draft the recommendation letter that incorporates all of the changes, review the letter at the August 8, 2001 meeting, vote on it and then send it out to Council. DISCUSSION AND DECISION MAKING ON HAWAI`I COUNTY COUNCIL BILL NO. 58 REGARDING BUILDING SEWER CONNECTION LOAN PROGRAM Kimo motioned that Bill No. 58 be put on the agenda for the second meeting in August, Riley seconded. Motion carried unanimously. DISCUSSION AND DECISION RELATING TO PROPOSED WASTEWATER RATE INCREASE Peter passed out a Revenue Worksheet. Effective July 1, 2000, a single-family residential and multi-unit residential went up from $26 to $28. In July 2002, it went up to $30 and in July 2004 it went up to $32. This bill didn’t pass. On our last budget was assumed for upcoming budget for FY 2002-2003 that the rate goes up to $30 for residential and the non-residential is $25 per unit file://C:\Test1\minutes071901.htm6/22/2011