Port Hadlock UGA Sewer Facility Plan
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- Isabella Bellini
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1 Jefferson County Port Hadlock UGA Sewer Facility Plan Public Meeting Preliminary Design, Cost & Finance October 25, 2006
2 Introduction Purpose & Goals Design Refinements Project Costs Finance Strategies Discussion/Questions Next Steps Agenda
3 Project Website
4 Approach to New Sewer Facilities Plan Public Involvement Stakeholder Workshop Stakeholder Workshop Stakeholder Workshops (2) Public Meeting Public Meetings (2) Technical Review Past Work Collection System Alternatives Disposal Alternatives Treatment Alternatives System Selection Facility Plan Financial Financial Analysis Rates and Implementation Plan
5 Thank You! County has received valuable input from stakeholders, community, agency staff Thank you for time, effort, and interest!
6 New Sewer System Realities & Approaches New System Costs High Systems are inherently expensive Start Up Lowest number of connected ERU s Approaches With the Facts Can Now Do the Art Current cost estimates not set in stone Approved Sewer Facility Plan means system eligible for funding Grantsmanship Congressional / legislative approach Low interest loans Low income assistance Learn From Others Experience
7 Purpose of Sewer System Responsible, proactive planning for population growth under the auspices of the Growth Management Act Environmental protection Chimacum Creek Shellfish beds Allows denser development in designated areas Development to planned densities
8 Developments/Design Refinements Treatment Plant Location Recommend Siting in the South of the Sewer Service Area Gravity Collection System Influent Pump Station near Ness Corner Road and Shotwell Road MBR Treatment Phasing Costs forecast year-by-year Costs shifted to optimize financing & development of system Hydrogeologic Work Ongoing Studying local groundwater Beneficial re-use of treatment plant effluent
9 Candidate WWTP Locations
10 Influent Pump Station
11 Phased Implementation
12 System Financing & Planning Process Sewer Facility Plan Must show defined funding mechanism for near term (6-year) strategy Must show viable financing plan for long term (20- year) strategy Plan Adoption by Department of Ecology (DOE) The Community to proceed with implementation Details of financing plan could change during implementation
13 Updated Capital Cost Estimate Cost Category Gravity Collection System On-Site Costs MBR Treatment Plant Disinfection Sludge Handing Effluent Disposal Total Core with Alcohol (in Thousands) $8,222 $2,049 $14,109 $217 $85 $2,222 $26,904 Rhody Drive (in Thousands) $3,035 $1,406 $774 $0 $1,345 $0 $6,560 Note: Table Shows Costs of Developing the Sewer System through 2018
14 Different Financing Strategies for Different Types of Sewer Costs
15 Capital Costs Types of Sewer Costs Capital funding sources Repayment of debt financing Variety of methods to distribute capital costs Operation and Maintenance (O&M) Costs Ongoing operating costs Distributed to the users through monthly rates
16 Overview of Sewer System Funding Capital Improvements One-Time Long Term Debt (associated with capital costs) On-Going Operations Maintenance Administration Grants Loans Contributions Cost Sharing Bond Proceeds Connection Charges ULID Assessments Monthly Rates
17 Capital Funding Sources Grants Department of Ecology (grant/loan) US Rural Development Administration (USRDA) (grant/loan) US Economic Development Administration Community Development & Economic/Job Development Low-Interest Loans State of WA Public Works Trust Fund (PWTF) Department of Ecology Bonds General Obligation Bonds Backed by taxes, general revenue Revenue Bonds (Future) Backed by utility revenue
18 Capital Funding Sources (Continued) Other Sources Congressional or State Line Items Jefferson County Public Infrastructure Fund Users Utility Local Improvement District (ULID) Assessments Connection charges Developer extensions Debt repayment by monthly rates
19 Funding Initial Capital Costs Thru the year 2018 Core with Alcohol Plant + Rhody Drive
20 Capital Cost by Element thru 2018 (Core, Alcohol, Rhody) COMMON/SHARED COST GENERAL LOCAL Treatment Disinfection Solids Handling Disposal Influent Pump Station Oversizing Collection Gravity Collection Lines up to 8" $21,074,114 $8,934,800 + PRIVATE/ON-SITE COST ON-SITE Connect home/building to sewer system $3,455,000
21
22 Timeline for Financing Common/Shared Costs INITIAL CAPITAL REQUIREMENTS (Does not include On-Site costs) $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Core + Alcohol Collection Core + Alcohol Collection Treatment capacity 1,000 ERU Treatment Plant w/ 1,000 ERU capacity Rhody Collection Add Membranes Rhody Collection Additional 1,000 ERU treatment capacity Additional 1,000 ERU treatment capacity LOCAL GENERAL $ Note: General/Treatment costs include Influent Pump Station, 12 Forcemain to Plant and oversizing of core collection system - 10%.
23 Funding Example - Shared Capital Costs $25,000,000 EXAMPLE - MIXING FUNDING SOURCES $20,000,000 $15,000,000 $10,000,000 LOCAL GENERAL OTHER LOAN: PWTF OR DOE LOAN: USRDA Companion to grant $5,000,000 $0 SHARED COST FUNDING SOURCE GRANT: USRDA Max. 45% Residential Estimated annual debt repayment over 20 years = $1,200,000 $600,000 USRDA (4.5% interest) + $600,000 PWTF or DOE (2.5% interest)
24 Strategies for Recovering Capital Costs from Users
25 Three Strategies for Repayment Connection Charges for General and Local Pay when connect Utility Local Improvement District (ULID) for Local + Connection Charges for General ULID Assessment annually when sewer lines comes to neighborhood + Pay Conn. Chg. when connect Assessed Value (AV) for General and Local Pay annually based on value of property; undeveloped pays much less than developed
26 Connection Charge vs. ULID Connection Charge Pay only when connect to sewer Property owners must come up with funds home equity loan, second mortgage, savings, credit card Some jurisdictions may allow payment over time ULID Assessment Provides long-term financing for property owners Pay annual assessment over years ULID formed to fund sewers in specific areas Draw boundary around properties, all are in Assessment cannot exceed benefit
27 Cost Implications of Strategies CONN CHG FOR GENERAL & LOCAL Pay General & Local upon connection Without Grant With Grant* (Residential) Connection Charge per ERU $17,000 $9,350 + Average On-Site $3,500 $3,500 Est. New Connection $20,500 $12,850 CONN CHG FOR GENERAL + ULID FOR LOCAL Pay General upon connection + Pay Local thru ULID Assessment Without Grant With Grant* (Residential) Connection Charge per ERU $9,000 $4,950 + ULID Assessment per ERU $8,000 $4,400 + Average On-Site $3,500 $3,500 Est. New Connection $20,500 $12,850 * Assumes 45% Grant for Residential Capital Costs One ERU is 4,500 gallons of water per month
28 When to Pay for Sewer - Residential ESTIMATED COST FOR SINGLE FAMILY RESIDENTIAL* When To Pay For Sewer Conn. Chg. for GENERAL & LOCAL Pay GENERAL & LOCAL When Connect + On-site to connect Est. New Connection When ULID Comes to Neighborhood + Pay When Connect $9,350 $3,500 $12,850 ULID for LOCAL + Conn. Chg. for GENERAL Pay LOCAL When ULID Comes to Neighborhood + Pay GENERAL upon connection + On-site to connect Est. New Connection * Assumes 45% Grant for Residential $4,400 $4,950 $3,500 $4,400 $8,450
29 When to Pay for Sewer - Commercial ESTIMATED COST FOR COMMERCIAL When ULID Comes to Neighborhood + Pay When Connect When To Pay For Sewer Conn. Chg. for GENERAL & LOCAL Pay GENERAL & LOCAL When Connect (per ERU*) $17,000 + On-site to connect $3,500 Est. New Connection $20,500 ULID for LOCAL + Conn. Chg. for GENERAL Pay LOCAL When ULID Comes to Neighborhood (per ERU*) $8,000 + Pay GENERAL upon connection (per ERU*) $9,000 + On-site to connect $3,500 Est. New Connection $8,000 $12,500 * 4,500 gallons of monthly water usage = 1 ERU
30 Our Thoughts on These Cost Estimates Facility Plan costs based on recent bid results Current estimates are in-line with cost estimating procedures and experience Project Costs have a 30% contingency which is customary for planning level efforts Pre-Design, Design, Bidding will fine-tune costs Included 15% finance cost Need cost estimates to seek financial assistance
31 Current Sewer Expansion Examples Est. Cost to Connect to Sewer GENERAL + LOCAL GENERAL + LOCAL + ON-SITE PT. HADLOCK/IRONDALE With Grant (Residential) $9,350 $12,850 Without Grant $17,000 $20,500 Langley $15,558 Ronald WW District $33,000 Bainbridge Island $30,000
32 Operations & Maintenance Cost Estimate
33 Estimated O&M Costs per ERU Estimated Monthly Rate for O&M and Admin Costs O&M per ERU per month $50.00 Add Billing/Collection/State Tax/Admin = Est. monthly rate before replacement $10.00 $60.00* * Potential for a beginning rate, then evaluate replacement funding as more users connect.
34 What Does It Mean?
35 Est. Rolled Up Cost per ERU On-Going O&M with Administration Estimated Capital Costs $20,500 (Without Grant) $60 per ERU* per Month + $12,850 (With 45% Grant)?? (With Artful Financing) *ERU: Equivalent Residential Unit = one household or 4,500 gallons of water usage per month for Commercial users
36 How to Continue to Reduce Costs Current cost estimates not set in stone! Complete sewer facility plan to be eligible for funding assistance Seek grants County staff attend conference to meet funding program admin. Seek low-income assistance USRDA housing loans; health dept. loan program; create program with grant funding Seek congressional line-item / legislative Finalize method of distributing costs Explore opportunities for O&M savings Maximize initial participation: Community involvement
37 Next Steps Public Meetings: October 25, 2006 & February 2007 Draft Sewer Facility Plan, November 2006 Plan Approval from Ecology Anticipated in March 2007
38 Discussion & Questions
39 Jefferson County Port Hadlock UGA Sewer Facility Plan Public Workshop Preliminary Design, Cost & Finance October 10, 2006
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