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Home My WebLink About; Master Plan of Sewerage - Capacity Fee Update; Master Plan of Sewerage - Capacity Fee Update; 1990-06-01CITY OF CARLSBAD CAPACITY FEE UPDATE TO THE DECEMBER 1987, MASTER PLAN OF SEWERAGE June 1990 Wilson Engineering Consulting Engineers TABLE OF CONTENTS PAGE NO. LIST OF TABLES ii CHAPTER 1. INTRODUCTION 1 Recommendations 1 Revisions from the December 1987, Master Plan of Sewerage 2 CHAPTER 2. CAPITAL COSTS 3 Encina Water Pollution Control Facility Costs 3 Phase IV Project 3 Phase V 4 Solids Management . 4 Ocean Outfall 6 Vista/Carlsbad Interceptor 6 Other City of Carlsbad Capital Projects 6 CHAPTER 3. CITY WIDE CAPACITY FEE 9 Units .9 Bond Payments 9 Inflation and Interest 10 Sewer Construction Fund Obligations 10 Estimated Fees 10 EXHIBIT A Pocket LIST OF TABLES «M •*" to PAGE NO. i» to P. Table 2-1 Improvements to the Encina Water Pollution Control L Facility (All Figures in Thousands of Dollars) .............. 5 f* ^ Table 2-2 Improvements to the Vista/Carlsbad Interceptor Sewage Drainage Basin 7 Table 2-3 Other City of Carlsbad Capital Projects (All Costs in Thousands of Dollars) 8 Table 3-1 Sum of Expenses (All Costs in Thousands of Dollars) 11 Table 3-2 Sewer Capital Fund Cash Flow Projection 12 ii CHAPTER 1 INTRODUCTION In 1989, the City of Carlsbad elected to bond finance their portion of the Phase IV construction at the Encina Water Pollution Control Facility. These bonds obligate the City of Carlsbad to pay back principle and interest in future years. The purpose of this report is to analyze the impact of these future bond payments and other cost increases and adjustments on the sewer connection fees. The assumptions used for determining future flows are derived from the December 1987, Master Plan of Sewerage. Sizing the facility and cost data are obtained from the December 1987, Master Plan of Sewerage and the 1989-90 Encina Budget. All cost data has been revised to an ENR-CCI-LA of 5,800. RECOMMENDATIONS 1. The City wide capacity fee should be changed to $1,610. 2. The City wide capacity fee should only cover costs for the Encina Water Pollution Control Facility, the Vista/Carlsbad Interceptor, and the Home Plant Pump Station. 3. A number of smaller sewer area fees should be established to fund collection system improvements to bring a sewer line to each zone subbasin as defined in the December, 1987, Master Plan of Sewerage and the Benefit Area Fee for Conveyance System Improvements dated March 1990. f REVISIONS FROM THE DECEMBER 1987, MASTER PLAN OF SEWERAGE 1. Bond payments have been included as an expense. 2. All conveyance system improvements other than the Vista/Carlsbad Interceptor and Home Plant Pump Station and Force Main have been removed from the City wide capacity fee. 3. The Calavera Hills Water Reclamation Plant credit amount has been added as an expense to the sewer construction fund and improvement costs for the Calavera Hills Water Reclamation Plant have been removed. CHAPTER 2 CAPITAL COSTS All capital costs are based on information presented in the December 1987, Master Plan of Sewerage and the Encina Water Pollution Control Facility 1989-90 Budget. All costs have been increased to reflect an ENR-CCI-LA of 5,800. ENCINA WATER POLLUTION CONTROL FACILITY COSTS Table 2-1 presents a summary of the City of Carlsbad share of improvements to the Encina Water Pollution Control Facility over the next 30 years. The total costs of these improvements is estimated to be $43,573,000. Phase IV Project Construction is currently underway on the Phase IV project. During the Phase IV project, the City of Carlsbad's ownership in the plant will change. Because the City of Carlsbad's ownership in the plant is changing, its share of project costs will not be established until construction is completed. We are estimating that the City of Carlsbad's share in the Phase IV plant and outfall projects will be 23.5 percent. The Phase IV operations building improvements have not been designed or constructed. The City of Carlsbad's share in the operations building improvements project will be based on their post-Phase IV ownership of 25.68 percent. The Phase IV operations building construction is scheduled to begin near the end of the Phase IV plant and outfall projects. Phase V The Phase V project will not occur until after the year 2000. For the purpose of establishing capacity fees we are estimating it will occur in approximately the year 2005. The City of Carlsbad's share in this project will be based on their needed capacity. Our cost estimate is based on the City of Carlsbad obtaining an additional treatment capacity of 5.09 million gallons per day during the Phase V project. Solids Management The solids management project will be done in two stages. The City of Carlsbad's share of the solids management project will be 24.19 percent. We have estimated the cost of land acquisition for this project at $5,000,000. Table 2-1 Improvements to the Encirta Water Pollution Control Facility (AH Figures in Thousands of Dollars) Project Phase IV Plant1 (Unit I) Phase IV Outfall1 (Unit J) Phase IV Operations Building2 (Unit J) Phase V3 (Unit I) Solids Management4 Stage 1 Solids Management4 Stage 2 Ocean Outfall4 Rebalast (Unit J) Ocean Outfall4 Parallel (Unit J) TOTAL Year 1990 4,132 604 13 224 4,973 1991 4,710 704 13 1,840 7,267 1992 1,462 195 167 1,320 15 3,159 1993 353 1,320 314 1,987 1994 353 353 2005 16,342 1,035 8,457 25,834 Total 10,304 1,503 899 16,342 4,704 1,035 329 8,457 43,573 m m " Ocean Outfali The City of Carlsbad's share of future ocean outfall costs will be 24.19 percent. For the purposes of estimating capacity fees, a reballasting project is scheduled for the year 1993. A parallel ocean outfall will have to be built in conjunction with the Phase V expansion project and it is also scheduled for the year 2005. VISTA/CARLSBAD INTERCEPTOR Table 2-2 provides a list of improvements needed to the Vista/Carlsbad Interceptor. The total estimated cost for these improvements is $6,863,000. Exhibit A from the December 1987, Master Plan of Sewerage shows the location of the reaches called out in Table 2-2. This exhibit is found in the pocket in the back of this report. OTHER CITY OF CARLSBAD CAPITAL PROJECTS Table 2-3 lists the other City of Carlsbad capital projects included in the City wide capacity fee. The projects total $1,137,000 and include the Home Plant Lift Station and Force Main improvements. In addition to these specific City of Carlsbad improvements, we have included a category for miscellaneous City of Carlsbad capital improvement projects, which is factored into the City wide capacity fee. The projected estimate of costs for the miscellaneous projects is $70,000 for each year through the year 2020. Table 2-2 Improvements to Vista/Carlsbad Interceptor Sewage Drainage Basin IMPROVEMENTS TO EXISTING INTERCEPTORS Reach VC3 VC5 VC6 VC7 VC8 VC9 VC10 VC10A VC11 VC13 VC14 VC15 Location Highway 78 East to Buena Vista Lagoon Jefferson Street Jefferson Street, Arbuckle to Grand Grand Avenue Grand Avenue Washington Street, Grand to Oak Washington Street, Oak to Olive Chestnut Lateral AT & SF R.R. Olive to Agua Hedionda Lagoon AT & SF R.R. Agua Hedionda Lagoon to Cannon AT & SF R.R. Cannon to Palomar Airport Road Avenida Encinas, Palomar Airport Road to Encina Water Pollution Control Facility Entrance Size, in. 42 36 42 30 48 48 48 12 54 54 54 54 IMPROVEMENTS TO LIFT STATIONS Buena Vista Lift Station Add Fourth Pump Add Fifth Pump and Force Main Improvements Agua Hedionda Lift Station Add Third and Fourth Pump and Miscellaneous Improvements Relocate Station Subtotal by Years TOTAL — -- -- -- Length, feet 3,170 2,500 1,180 760 720 1,940 4,330 1,800 1,370 3,520 5,080 1,760 Total Cost, $ 919,000 593,000 342,000 160,000 247,000 664,000 1 ,484,000 171,000 542,000 1,392,000 2,009,000 696,000 Carlsbad Ownership, Cost, % $ 15.5 27.3 27.3 27.3 27.3 37.3 37.3 100 37.3 51.7 51.7 51.7 142,000 162,000 93,000 44,000 67,000 248,000 555,000 171,000 202,000 720,000 1,039,000 360,000 Year Needed 2010 1992 1992 1992 1992 1992 1992 1992 2010 2010 1997 2010 .. -- -- - 1,250,000 1,500,000 1,200,000 5,000,000 15.5. 15.5 40.5 40.5 194,000 233,000 608,000 2,025,000 802,000 1,340,000 1,039,000 3,682,000 6,863,000 1990 2010 1990 2010 1990 1992 1997 2010 pit ry c rL Othef City of Carlsbad Capital Projects (All Costs in Thousands of Dollars) 5SSSS55SSS Year Home Plant Lift Station Home Plant Force Mam TOTAL fH m 8 CHAPTER 3 CITY WIDE CAPACITY FEE In order to assess the impact of bond payments on the sewer construction fund, a year by year cash flow projection is needed. This year by year projection must include estimated number of units, inflation rates and interest. UNITS On December 29, 1989, the City of Carlsbad had a total of 26,995 equivalent dwelling units. The December 1987, Master Plan of Sewerage projects, at build out, that the City will have a total of 60,935 equivalent dwelling units. For the purpose of our capacity fee cash flow analysis, we have assumed that the City of Carlsbad will build out in the year 2020. We have uniformly distributed the dwelling units each year. Thus, for the years 1990 through 2019, 1,095 equivalent dwelling units per year are assumed to be connected and in the final year of the projection 1,090 units are assumed to be connected to total 60,935 equivalent dwelling units. Bond Payments Bond payments for the Phase IV bonds are approximately $850,000 for the first three years from 1990 to 1992, and $1,120,000 for the remaining 22 years of the bond issuance. This bond payment provides $11,029,000 for the construction of the Encina Phase IV projects. These same ratios were utilized for a projected bond issuance in the year 2005 to cover the year 2005 expenses. Based on a total construction cost need of $53,853,000, bond payments for the year 2005 through 2007 will be $4,150,000. For the remaining 22 years, bond payments will be $5,469,000. INFLATION AND INTEREST Construction costs were projected to increase 5 percent per year. Interest income on the sewer construction fund was estimated to be 8 percent per year. mm SEWER CONSTRUCTION FUND OBLIGATIONS Table 3-1 provides a summary of the expenses to the sewer construction fund. The expenses include construction, bond payments and the Lake Calavera Hills Water Reclamation Plant credit. The City of Carlsbad is obligated by contract to provide connection fee credits for the Lake Calavera Hills area. These credits decrease the income to the sewer construction fund and show up as an expense on this table. ESTIMATED FEES f* Table 3-2 shows a cash flow projection year by year needed to obtain a zero ** balance in the year 2029, and cover all estimated construction costs, bond payments and credits. In order for the sewer construction fund to have a zero P balance in the year 2029, the present sewer connection fees should be changed * to $1,610. 10 PIu w m m S Table 3-1 Sum of Expenses (All Costs in Thousands of Dollars) Yew 1990 1991 1992 1993 1994 1995 1996 1997 199S 1999 2000 2001 2002 2003 2004 2005 2008 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Sum 5,845 6,212 5,706 2,057 423 70 70 1,109 70 70 70 70 70 70 70 25,904 70 70 70 70 3,752 70 70 70 70 70 70 70 70 70 70 0 0 0 0 0 0 0 0 0 Const Cost Index 1.00 1.05 1.10 1.16 1.22 1.28 1.34 1.41 1.48 1.55 1.63 1.71 1.80 1.89 1.98 2.08 2.18 2.29 2.41 2.53 2.65 2.79 2.93 3.07 3.23 3.39 3.56 3.73 3.92 4.12 4.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Const Cost Future Cost 5,845 6,523 6,291 2,381 514 89 94 1,560 103 109 114 120 126 132 139 53,853 153 160 168 177 9,955 195 205 215 226 237 249 261 274 288 303 0 0 0 0 0 0 0 0 0 Bond Payment Phase IV 850 850 850 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 1,120 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bond Payment All 2005 Expenses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,150 4,150 4,150 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 Lake CalaveraHHte Credit 208 208 208 208 208 208 208 208 208 208 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Expenses 6,903 7,581 7.349 3,709 1,842 1,417 1,422 . 2,888 1,431 1,437 1,234 1,240 1,246 1,252 1,259 59,123 5,423 5,430 6.757 6,766 16,544 6,784 6,794 6,804 6,815 5,706 5,718 5,730 5,743 5,757 5,772 5,469 5.496 5,496 5,469 5,469 5,469 5,469 5,469 5,469 11 I • m • m « • i « i • i i i ! I i I i i i i i i • i i 1 i i i i i • Table 3-2 Sewer Capital Fund Cash Flow Projection 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total Yearly &cpenae 6,903 7,581 7,349 3,709 1,842 1,417 1,422 2,888 1,431 1,437 1,234 1,240 1,246 1,252 1,259 59,123 5,423 5,430 6,757 6,766 16,544 6,784 6,794 6,804 6,815 5,706 5,718 5,730 5.743 5,757 5,772 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 5,469 Number of Yearly Connections 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1,095 1.095 1,095 1,095 1,095 1,090 0 0 0 0 0 0 0 0 0 Connection Fee 1.61 1.69 1.77 1.86 1.96 2.05 2.16 2.26 2.38 2.50 2.62 2.75 2.89 3.03 3.19 3.34 3.51 3.69 3.87 4.07 4.27 4.48 4.71 4.94 5.19 5.45 5.72 6.01 6.31 6.62 6.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Connection Fee tncoino 1,762 1,850 1.942 2,039 2,141 2,248 2,361 2,479 2,603 2,733 2,869 3,013 3,164 3,322 3,488 3,662 3,845 4,038 4,239 4,451 4,674 4,908 5,153 5.411 5,681 5,965 6.264 6,577 6,906 7,251 7,579 0 0 0 0 0 0 0 0 0 D«uw4Dona Income 11,029 0 0 0 0 0 0 0 0 0 0 0 0 0 0 53,853 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Interest Income 593 1,112 742 369 265 310 402 509 517 652 808 1,003 1,225 1,477 1,760 2,080 2.117 2.161 2,222 2,198 2,189 1,415 1,378 1,357 1,354 1,371 1,502 1,665 1,866 2,109 2,397 2,733 2,514 2,278 2,023 1,747 1,449 1,128 780 405 Total Income 13,384 2,962 2.685 2,409 2,406 2,559 2,762 2,988 3,119 3,385 3,677 4,016 4,389 4,798 5,248 59,595 5,963 6,198 6,461 6,650 6,863 6,322 6,531 6,767 7,035 7.337 7,765 8,242 8,772 9,360 9,976 2,733 2,514 2,278 2,023 1,747 1,449 1,128 780 405 Net 6,481 (4,619) (4,664) (1,301) 564 1,141 1,341 99 1,688 1,948 2,443 2,776 3.143 3.546 3.990 472 540 768 (296) (116) (9.681) (462) (263) (37) 220 1,630 2,047 2,512 3,029 3,602 4,204 (2,736) (2,955) (3.191) (3,446) (3,772) (4,020) (4.341) (4,689) (5.064) Fund Balance 13,899 9,280 4,616 3,315 3,879 5,020 6,361 6,460 8,148 10.096 12,539 15,316 18,459 22,005 25,995 26,467 27,007 27,775 27,479 27,362 17,681 17,220 16,956 16,920 17,140 18.770 20,818 23,329 26,358 29,960 34,164 31,429 28,474 25,283 21,836 18,114 14,094 9,753 5,064 0 1M m m pi Itf Beginning Fund Balance $7,418,000 12