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Home My WebLink AboutCOM 0212.002 2000-2002 ~r~~ i . County of Hawaii County Council Finance Committee May 15, 2000 Vllastewater Capacity assessment and ' s Connection Fee Study Richard Cuthbert Senior Director, R. W. Beck, Inc. Art Griffith Senior Utility Analyst, R. W. Beck, Inc. 1 Sc® a ®f Services Determine capacity assessment fees forthe WastewaterDivision Determine connection fees k <; Provide draft ordinance language ~ Attend one council/public meeting 2 No. ~ l File No. ors ~.Y 15 200 Prescntati~n ~®als Present proposed was tewater fees ~ Capacity assessment fee Connection fee n < Present proposed building sewer loan - program Obtain any policy direction or input from Committee Ans wer any questions 3 ackgr~un~ sstew~tcr ~ivisi®n Five s eparate was tewater collection systems, which convey wastewater from customers to was tewater treatment plants _ Five was tewatertreatment plants ~-Iilo ~ Kealakehe Kulaimano ~ Papaikou Kapehu a ackgr®und wastew~t~r ~Divisi~n cent. Approximately 6,000 residential customers (about 20 percent of the island) ~~::::.::..::~v:~~>~~~~'~:: Approximately 600 non-residential customers Residential monthly us er charge: $26.00 No capacity assessment fees No connection charges s v~rvi~w ~f }t . C~p~~i~y ~~es~m~nt . i 6 What is ~ opacity assesarr~c~t fac? A one-time up-front charge paid by new customers connecting to f: the was tewater s ys tem Typically paid prior to receipt of building permit ~'he amount of the capacity assessment fee is based on the capital cost necessary to provide was tewater system capacity Why ad®pt a capacity ass~s~rr~e~t ~~c ncw~ A way to assign the c o s t o f wastedvatersystem capacity to those who require was tewater x ..<>:v: ~ s y s to m s s rvic e required for the County to obtain future low-inte re s t s tats loans S how is a ~apaoity ~ss~ssmerlt t~~ ~~Iculatod? ~o approaches are used: Equity appro ac h ~~r Incremental cost approach v<{:.: Both approaches are industry standards l0~ethodology described in a joint publication of the American Public Wo rl~s Association, American Society of Civil Engineers, and the Water Pollution Control Federation 9 uit ~ roach Based on the historical cost to construct sewer system capacity, less historical grant funding and outstanding delat principal ~ Equity approach capacity assessment fees for the . Wastewater Division: Type of Connection Capacity AssessYnent Fee Single-family residence $621 per residence Multi-unit residential $435 per unit development Other development $1.94 per gallon/day wastewater flow io Incremental Cost A roach Based on today's estimated cost to construct sewer system capacity; assumes no future grant funding Incremental cost approach capacity assessment ~<.4;,s.;#<~:" fees for the Wastewater Division: Type of Connection Capacity Assessment Fee Single-family residence $4,346 per residence Multi-unit residential $3,042 per unit development Other development $1358 per gallon/day wastewater flow u Im lementation considerations from a purely economic standpoint, the incremental cost approach is preferred 1Vdore closely estimates cost to provide wastewatersystem capacity fornew customers Affordability concerns, particularly for existing structures required to connect to sewersystem, support equity approach Both equity and incremental cost approaches are acceptable and justifiable 12 Prep®sed capacity sssessrYlerlt ~et~ irYl I~merltati~r~ ~ Proposed capacity assessment fee goal: reduce financial impact on existing residents ~ Single-family res idential cus tourers Y ~ Existing: equity approach ~ ff zoned residential and currently subdivided: equity approach used forfirst dwelling unit; incremental for s econd dwelling unit New subdivisions: incremental approach 13 Pr+ap®sed capacity assassmcrlt 1111 lerrt~ntati®r1 ~C~ritlt1ll~d lvgulti-unit residential Customers: ~ Existing: equity approach If zoned residential and currently subdivided: equity approach €~=.A~~.:~>~~~~ ~ ~ Nevv subdivisions• incremental approach Non-residential customers: Existing: equity approach Future construction: incremental approach la How would non-residential wastewater flow be estimated? liy developer based on data from similar type of use. Developer's estimate must be approved by Division. ,f ~ Using tabulated estimates based on wastewater design standards, County water use data, and estimates from other counties. ~ Provision in ordinance would allow County to verify non-residential flows and collect additional capacity assessment fees when flow >125 percent of original estimate. is Comparison with other Hawaii counties Single-family residences ~ fIonolulu $1,146 (effective 1992) ~ Maui $0 - $328 (effective 2000) (depends on location) Kauai $3,900 (effective 1999) ~ Proposed Hawaii County $621 / $4,346 ~ U.S. Average $1,600 (1996) 16 C~n~~Cfii~r~ C~nnecti®r~ Intended to recover the Division's administration and inspection costs associated with connecting new customers Proposed fee: $160 per connection, x< <;<~..>~ ~ based on 4 inspection hours and 2 administration hours 18 x~~ uildin Seonrer L~ar~ Pr®ram 19 u~lding Sewer Pr~ram aek round As a condition of past federal grants, the County is required to extend the sewer collection systems and hook-up existing neighborhoods - Connecting an existing house requires the 4Y~ homeowner to pay fora "building sewer" (the sewer facilities on private property between the house and the property line) Paying for a building sewer can be a financial burden for some homeowners zo wilding S~~er Lean Pr®gram a~~ r®und c®n~. In 1992, the County Council adopted a guaranteed loan program ~ If a homeowner is denied a loan for building sewer construction from a financial institution 4 ~ the County will guarantee a similar loan from an approved financial institution Participation has been limited zi Pr®p®sad wilding Sever L®an Pr® ram The County would obtain State Revolving Fund (SRF) loan and transfer loan proceeds to dedicated account in the Sewer Fund . Loan proceeds would be used to fund ~~:~~°€<.>:>::f..>~.<:Y~<^`:::.><..~: building sewer construction and cover County engineering and administrative costs Loan proceeds would be paid to contractor ~ Homeowner repays County at same terms as County repays the State Revolving Fund ~r®p~sed uildir~g Sewer L®ar~ ~r® ram cent. A, lien is placed on the property until loan is repaid Building sewer loan recipient must: .;.<..~.t ~ Sign a loan agreement r:. ~ Sign a Grant of Easement agreement Sign a construction right of entry agreement Sign a waiver of liability agreement z~ u~sti~ns end ~nsv~~r~ 1 is~us~i~on CAPACITY ASSESSIl911ENT ~LOWCHAFZfi Owner Applies or Is Directed to Connect to Sewer Subdivided at Residential Hotel Effective Date N N N Y Y Y $2,037/room Single Family N Y $4,346 $3,042/unit $13.58/gpd Residential Hotel N N Y $291 /room Single Family N $621 first unit; $435/unit $1.941gpd $4,346 addt'1 units May 15, 2001 COUNTY OF HAWAII DEPARTMENT OF PUBLIC WORKS WASTEWATER DIVISION CAPACITY ASSESSMENT: ESTIMATING PROJECT FLOW Project flow Type of Use Unit (gal/unitlday) Bar Seat 15 Church Seat 5 Day-care Center Child 10 Factory Employee 30 Golf Clubhouse Golf 25 Rounds Hote! Room 150 Hospital Bed 200 Industrial Shop Employee 25 Laundry (coin operated) Machine 300 Office Employee 20 Restaurant Seat 90 Rest Home Patient 100 Retail Store Employee 15 School, Elementary Student 15 School, High Student 25 Storage, w/Offices Employee 15 Storage, w/Offices and Employee 30 Showers Theater Seat 5 The following standards will be used as necessary to compute the number of units required to make capacity assessment calculations: office employees - 1 per 200 square feet of floor area; retail warehouse employees -1 per 350 square feet of floor area; storage/industrial employees - 1 per 500 square feet of floor area. May 15, 2001