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Home My WebLink AboutCOM 0212.000 2000-2002 JNZV oc Mq~ 4~~~• _ 9, ~,dd y, ` Harry Kim Dennis K. W. Lee f Yom' Director Mayor :.'o.';_;:s,>i.~ . df.;~~'w~_NeF.'~ 7rE OF•p,,,~N Jiro A. Sumada Deputy Director DEPARTMENT OF PUBLIC WORKS 2S Aupuni Street, Room 202 • Hilo, Hawaii 96720-4252 (808) 96t-8321 • Fax (808) 961-8630 April 25, 2001 HONORABLE CHAIRMAN AND MEMBERS HAWAII COUNTY COUNCIL , , 25 AUPUNI STREET HILO HI 96720 SUBJECT: ORDINANCE AMENDING CHAPTER 21 OF THE HAWAII COUNTY CODE, 1983, AS AMENDED, RELATING TO SEWERS Attached is a proposed amendment to Chapter 21, Hawaii County Code to establish sewer capacity assessments and connection fees. As a precondition of receiving future State funding for sewer system improvements, the County must adopt a capacity assessment for new development seeking to connect to the County's sewerage systems. The Council also finds that it is appropriate and beneficial that it recover certain costs incurred by the County associated with the installation of new sewer connections from new customers connecting to the County's sewerage system. Please forward a copy of this proposed resolution to the appropriate committee Chair. Your favorable consideration of this request would be greatly appreciated. Should you have any concerns, please contact us. ~~DENNIS K. W. LEE APPROVED: Director of Public Works ARRY KIM MAYOR cc: WWD (iA13YiY1. No. ale No. Ref, fio•.~ ~ C_ '~~Y 3 200 COUNTY O~ HAWAII WAST~WAT~R ®IVISION WAST~WAT~R CAPACITY ASSESSMENT AN® CONNECTION ~E~ EXECUTIVE SUMMARY INTI2®®UG?ION The County of Hawaii Wastewater Division (Division) provides wastewater services to approximately 6,000 residential and 600 commercial customers on the island of Hawaii. The Division owns and operates five separate wastewater systems. Each wastewater system contains a wastewater treatment plant and a collection system (which conveys wastewater from customers to the treatment plant). The Division proposes to adopt new fees charged to customers who connect to the wastewater systems. The proposed fees are: 1. A capacity assessment fee, which is a one-time up-front payment by new customers. The amount of the capacity assessment fee is based on the estimated capital costs necessary to provide wastewater system capacity. Establishment of capacity assessment fees is a Department of Health condition of receiving future low-interest state loans for wastewater facilities. 2. A connection fee, which is also aone-time up-front payment by new customers. The amount of the connection fee is based on the Division's estimated administrative and inspection costs associated with connecting new customers. CAPACITY ASSESSMENT ~EE$ A two-tiered capacity assessment fee schedule is proposed. This fee schedule is calculated based on an accepted methodology described in a joint publication of the American Public Works Association, the American Society of Civil Engineers, and the Water Pollution Control Federation. A set of lower cost capacity assessment fees would be applied to: 1. Existing structures 2. The first dwelling unit of future development, provided that a) the future development is on property that is zoned residential, and b) the future development is currently subdivided. A set of higher capacity assessment fees would be applied to new subdivisions, new development on existing subdivided property zoned residential (other than the first dwelling unit), and new non-residential development. The proposed two-tiered fee Capacity Assessment Exec Summay Page 1 of 3 May 4, 2001 schedule is similar to that aopted by the County of Hawaii Department of Water and the wastewater fees adopted by the City and County of Honolulu. The amount of the capacity assessment fee is based on the estimated wastewater flow from the new connection. For new residential customers, the estimated wastewater flow was obtained from the City and County of Honolulu's wastewater system design standards. For new non-residential customers, the estimated wastewater flow will be determined from one of two sources: 1. Estimates of wastewater flow, for specific development types, derived from County water use records or from estimates used in Maui County for capacity assessment calculations. 2. Estimates of wastewater flow provided by the developer, often based on wastewater flow from similar developments, and approved by the Division. The lower capacity assessment fees were determined using an "equity" (also called "buy- iri') approach. This approach considers the original cost of constructing sewer system facilities, less grant funding and oustanding debt. Table ES-1 shows example capacity assessment fee calculations using the equity approach. The equity approach allows the County some flexibility to meet a proposed capacity assessment goal: reducing the financial impact of the capacity assessment to existing island residents. TABLE ES-1 EXAMPLE CAPACITY ASSESSMENT FEE CALCULATIONS: EQUITY APPROACH T e of Connection E uit A roach Ca acit Assessment Fees (1) Sin le-famil residence $621 er residence Multi-unit residential develo meat $435 er unit Hotel $291 er room 2 Other non-residential develo ment $1.94 er allon/da of avera a wastewater flow (1) Applicable to existing structures and the first dwelling unit of future development, provided that the future development is on property that is zoned residential and is currently subdivided. (2) The capacity assessment fee will be based on wastewater flow estimates provided by the developer and approved by the Division. In the absence of an estimate provided by the developer, the capacity assessment fee shall be based on a wastewater flow of 150 gallons/day/room and $1.94 per gallon/day wastewater flow. The higher capacity assessment fees were determined using an "incremental cost" approach. This approach considers the estimated cost, in today's dollars, of constructing wastewater system facilities including treatment plants and major collection system facilities. Table ES-2 shows example capacity assessment fee calculations using the incremental cost approach. Capacity Assessment Exec Summary Page 2 of 3 May 4, 2001 TABLE ES-2 EXAMPLE CAPACITY ASSESSMENT FEE CALCULATIONS: INCREMENTAL COST APPROACH Type of Connection Incremental Cost Approach Capacity Assessment Fees (1) Sin le-famil residence $4,346 er residence Multi-unit residential develo ment $3,042 er unit Hotel $2,037 er room 2 Other non-residential develo ment $13.58 er allon/da of avera a wastewater flow (1) Applicable to new subdivisions, new development on existing subdivided property zoned residential (other than the first dwelling unit), and new non-residential development. (2) The capacity assessment fee will be based on wastewater flow estimates provided by the developer and approved by the Division. In the absence of an estimate provided by the developer, the capacity assessment fee shall be based on a wastewater flow of 150 gallons/day/room and $13.58 per gallon/day wastewater flow. CONNECTION The proposed connection fee is $160 per connection to the sewer system. This fee was estimated based on the Division's administrative and inspection costs associated with connecting new customers. The Division estimates that two administrative hours and four inspection hours are required for each new connection. The connection fee is calculated using costs (including salary and benefits) of $20 per hour for administration and $30 per hour for inspection. The fee is applicable to all new customers added to the system. Capacity Assessment Exec Summary Page 3 of 3 May 4, 2001