HomeMy WebLinkAboutKIA Examples of Costs to Connect to Sewer.2Examples of Costs to Connect to Sewer
Prepared by Katy Isaksen & Associates
DRAFT 2/25/13
When looking at the examples provided, an immediate conclusion is that all costs vary by the project. One can imagine that this relates to the type of system installed and the number
of properties sharing in the cost. In addition, whether the properties are joining into an existing system or constructing a new system, and whether the jurisdiction owns the treatment
facilities, contracts for use of existing treatment or is constructing new treatment facilities. So while it is nice to know what other projects have cost individual property owners,
they are not directly comparable to Port Hadlock.
Examples – Cost to Connect to Sewer
The following detailed table provides five examples of the cost to connect to sewer. A brief summary and a bit of context for the examples:
South Bainbridge Island LID – The City established a LID in 2006 to serve 4 neighborhoods and a school. The actual costs are shown. The LID assessments for the shared costs included
the sewer lines, local pump stations and latecomer’s fees for connecting into an existing interceptor. Property owners had the option to include the grinder pump if required, sewer
permit fee, connection fee and side sewer costs. The LID assessment method was on a per parcel basis, with the school converted to equivalent residential units for those costs that
were shared. The new system flowed into an existing interceptor with a latecomer’s agreement. The treatment was provided by Kitsap County Sewer District #7, requiring a connection
fee. The average cost without side sewer ranged from $15,000 to $24,000 per single family parcel. The side sewer costs varied by property, some very simple the property owner paid
on their own, and others more complex where the owners chose to roll the costs into their assessment. The average amount of side sewer financed ranged from $3,600 to $5,400. The
current monthly rates are $69.42 without grinder pump or $73.59 with grinder pump.
City of Edgewood LID – The City established the LID at the request of property owners to provide sewer to an area that was a mixture of residential, commercial, undeveloped and underdeveloped.
All of the sewage would be collected and conveyed with pump stations (LID costs) to existing interceptors and treatment is provided by Lakehaven Utility District. A connection fee
would be paid to Lakehaven. The on-site side sewer costs were up to the owners. The LID assessment method was by special benefit. Actual examples from initial connections are shown.
A single family cost was $19,000 plus on-site side sewer connection. The monthly rates include a base rate plus a volume rate by strength so each customer will pay a different amount
depending on water usage. There are five strength categories for commercial customers, with a higher volume rate for higher strength.
City of Langley – The City installed a treatment plant numerous years ago. The initial sewer system was installed with an LID, the plan was for new areas to be sewered and join in to
help pay for the treatment plant. This would require developer extensions or LID’s. After some time, the City was finding that developers preferred to develop just outside the requirement
for a developer extension so septic systems were being added instead of extending the sewer. Eventually the City decided to extend certain sewer lines to allow existing lots to connect
without the burden of completing a developer extension. The City would recoup its costs when connections were made. A new residential connection would pay $5,400 for general facilities,
plus $11,900 if connecting into a city extended sewer line, plus a fee-in-lieu-of-assessment of $1,930 for those that did not pay the original LID assessment. This totals $19,000 for
a new
residential connection plus the on-site side sewer costs. The current monthly rate is $56.04 per ERU.
Belfair, Mason County – Belfair is a new system that includes treatment and collection. The fundraising was done at a period when there were surpluses in both the state and federal
budgets and the County was successful in receiving significant grants that reduced the cost to property owners and allowed the utility to provide a much lower cost to connect for existing
homes and businesses in the initial area. The Capital Facilities Charge (connection charge) began at $3,000 for initial connections in late 2010/early 2011. This connection fee increases
per a schedule adopted in code. The current fee is $6,000 for connections in 2013 and increases to $16,300 by 2017. The side sewer costs are the responsibility of the property owner.
The current monthly rate is $96.00 per ERU.
City of Port Townsend – The City has a fairly simple formula for new connections to the sewer system (they also own the water system). A new connection pays a system development charge
by water meter size for their share of the common general facilities, plus they bring their sewer line or pay their share of one they are connecting into, and the property owner is
responsible for on-site side sewer costs. The current system development charge for a typical residence is $2,331. The local facilities and side sewer costs vary. The monthly rate
for residential is either $33.85 for up to 3,000 gallons or $41.85 for over 3,000 gallons. Commercial rates include a base rate by meter size plus a volume rate for water usage.
Table 1: Examples of Costs to Connect to Sewer
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Table 1: continued
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Table 1: continued
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Side Sewer/On-site Costs
The costs noted as side sewer vary significantly by project. The side sewer costs may or may not include two portions – from building to property line (on-site) and from property line
to sewer main. The on-site costs will vary with the type of installation, length to building, amount of pavement and/or landscaping that is disturbed, etc. In Bainbridge, the average
costs shown are only for the customers that chose to finance their on-site work with the LID. Many were simple and the property owner completed on their own without financing so the
numbers are a bit skewed. It is difficult to obtain good information on the actual costs of individual on-site connections.
Definition of Equivalent Residential Unit (ERU)
Another area that varies by jurisdiction is the definition of an ERU. An ERU is generally defined as the average water usage or sewage contribution from a typical single family household.
While residential units are generally considered to be 1 ERU per dwelling, the commercial properties are often converted to ERU’s for determining each customer’s fair connection charges
and monthly rates. The lower the usage within an ERU, the higher the number of ERU’s per commercial customer.
The City of Edgewood contracts with Lakehaven Utility District for treatment services and to operate and maintain the system. 1 ERU = 220 gallons per day x 30 days = 6,600 gallons per
month based on Lakehaven’s definition. This is a larger, well-established system in the Federal Way area.
Belfair (Mason County) defines the standard water consumption for a residence to be 155 gallons per day, equivalent to 7,564 cubic feet per year. 155 gpd x 30 days = 4,650 gallons per
month.
These compare to Port Hadlock, where the design parameters are 60 gallons per day x 2.2 persons = 132 gallons per day x 30 days = 4,000 gallons per month.
Table 2: Sample Equivalent Residential Unit (ERU) Definitions
Jurisdiction
Gallons per Day
Gallons per Month
Gallons per Cubic Foot
Cubic Feet per Month
City of Edgewood, Lakehaven Utility District
220 gal per day
6,691 gal per mo
7.48
882 cf per mo
Belfair
155 gal per day
4,715 gal per mo
7.48
622 cf per mo
Port Hadlock
132 gal per day
4,015 gal per mo
7.48
535 cf per mo
Monthly Rate Structure
In setting a rate structure, it is important to balance the impact on customers with the impact on the utility. In general, the simpler the structure, the least costly it is to administer
and easier for customers to understand.
The most common sewer rate structure for residential customers is a flat rate per dwelling unit, particularly in smaller systems. This method often follows the design parameters of
the system and provides the most predictable revenue stream in order to meet the utility’s obligations. It also avoids the need to obtain water usage data for residential customers
from the water provider.
There are a number of ways to make adjustments that might better reflect the needs of a particular utility. For example, Port Townsend has a 2-tier rate to promote conservation where
water usage data is reviewed once per year. Others provide a certain volume within the base and only those customers that use more pay additional. The definition of multifamily is
another method of adjustment for some jurisdictions.
The type of rate structure for a sewer system will also depend on a variety of information that may be available. It is important that the rate structure can easily work with the billing
system that will be used to prepare bills. For example, Edgewood contracts with Lakehaven for operations, maintenance and billing. For Edgewood’s new sewer system, the Lakehaven rate
structure was used and modified as necessary to fit Edgewood.
In setting rates for commercial customers, it is common to have a base rate plus a volume rate on water usage to reflect the usage of the sewer system. Some commercial customers are
small with low water usage (bank, office) and others are larger with higher use (laundry, deli). Some utilities also vary the commercial rates by strength of waste. For example, Belfair
has two levels of strength and a simple table defining the business types for each level.
Low-Income Senior Citizens and Low-Income Disabled Citizens
Many utilities provide a discount for low-income seniors and low-income disabled citizens. Each utility uses its own definition for qualification and provides a different discount.
Typically these discounts are for a specific percentage of the base or fixed portion of the rate. The sewer utility could provide some consistency to qualified residents by using
the same definitions as the PUD uses for water rates.
Residential Monthly Sewer Rate Comparison
Katy Isaksen & Associates annually surveys and compares residential monthly rates. A single family residential customer is typically compared using 1,000 cubic feet of water per month
(7,480 gallons). However, the following comparison has been tailored to Port Hadlock’s ERU definition of 4,000 gallons (535 cubic feet) per month. The range in residential rates is
from $25.00 to $99.00 per month.
While it is nice to know what other jurisdictions charge, it is important to set rates for each utility for a sustainable self-funding utility. There are a variety of reasons why one
rate may be higher than others: the type and number of customers sharing in the cost, the amount of debt, how new a system is (newer ones typically jump to the top of the list and others
catch up over time).
Chart 1: Monthly Residential Sewer Rate Comparison
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Residential Sewer Facilities Charges Comparison
New connections to a system typically must pay a facilities charge or connection fee for the privilege of connecting to an existing system. Each utility will define the charge and other
fees to meet their needs.
Chart 2 compares the residential sewer facilities charge for the same communities as Chart 1. The range for the utilities shown is from $1,600 to $15,000.
Chart 2: Residential Sewer Facilities Charges Comparison
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