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Home My WebLink About11/19/2013 Council Presentation-SB AcquisitionBenefitsof Providin S�ewer g S�e rv i� � t c� �� u a ro Blo o m _� - '/� n�,�r�Ar�,� ��` ■ Providesa larger rate ba9e to support the wastewaterutility . . . Obtain additional water re5ources Relieves Rillito Vista satellite facility Will p rovid e 9ewer s�ervice to und eveloped a reas (accelerate g rowth) Risk o f Pro v id i n S�e w e r S�e rv ic e g tc� Sa u a rc� Blc� � m � - '/� n�,�r�Ar�,� ��` ■ If development s�ows, repayment of fundsto c o n st ru c t t h e s�e w e rs t o 9e rv e Sa g u a ro Bloom willbe delayed. Inthislow-growth s�cena rio, the Town will a 190 have to ma ke the d ebt 9ervice payments req uired for the acquisitionofthe system from Pima County. Fna nc ia l Im lic a tio ns of S�e rvin p g S� . u a ro �IQ c� m � - '/� n�,�r�Ar�,� ��` C ost: Th e c o st o f se rv i n g Sa g u a ro Blo o m is estimated at a p p roximately $10 million overa 10-year period. All of these fundswill be recovered by wastewater connection fees or development agreements. Utilit Po lic Im lic a tio n s v y p . . Gladden Farmsexample Traditional approach to municipal infrastructure construction - '/� IM1/"��AI �� ` ■ Need �d riven infrastructure p la nning Utilit Im act Fees Y p - '/� IM1/"��AI �� ` ■ l�hree utility impact feeswill be developed to m eet fina nc ia l o b lig a tio ns ove r the 10- year plan horizon. l�he three preliminary fees a re : — Wastewater connection fee - $4,300 to $5,000 — Wa te r c o n n e c tio n fe e-$2,000 to $2,800 — Wa te r re 5o u rc e fe e-$1,600 -$2,300 WaterConnection Fee . - '/� IM1/"��AI �� ` Thewaterconnectionfeewillbe charged by ind ivid ua I service a rea . l�he estimated capital cost forthe9e facilitiesis approximately $9 million overthe next 10 ye a rs. ■ PropoSed infrastructure: — We I I s — Re 5e rv o i rs — Bo o st e r st a t io n — Tra n sm issio n m a i n s C o sts to Pro v id e S�e w e r S�e rv ic e tc� Sa u a rc� Blc� � m � Conveva nce 9ystem ■ Staff estimatesthe conveyance system - '/� n�,�r�Ar�,� ��` required to convey Saguaro Bloom flowswill cost approximately $7.4 million. Ap p roxim a te ly $2 m illio n of the $7.4 m illio n is attributed to Saguaro Bloom. C o sts to Pro v id e S�e w e r S�e rv ic e tc� Sa u a rc� Blc� � m � WRF Im p ro ve m e n ts - '/� n�,�r�Ar�,� ��` ■ The WRF improvements required to provide 9ervice to Sag ua ro Bloom a re estimated to be an add itional $3 million over a 10-year p e riod , fo r a tota I of $12 m illio n in WRF im p rove m e nts in the p la n n ing w ind ow . S�a u a ro BI o o m St a f f Pro o sa I g p - '/� I�1'l/"��AI �� ` ■ Staff recommendsthat the estimated $5.4 m illion cost for constructing the g ravity conveyance system be shared with adjacent developersvia development agreements. Staff propo9eshalf of the funds ($2.7 million) due priorto breaking ground and the remaining $2.7 million payable b a c k to the Tow n ove r 5-10 yea rs. Wastewater utility revenue bonds No Insufficient system revenues Water Infrastructure Fnancing Authority loans No Insufficient system revenues Excise tax revenue bonds Agreementswith developers Reserve fund contribution orloan Ye s Countsagainst overall pledged revenue coverage requirements. Must remain within legal/financial capacity. May limit other projects. Requiresagreement. Yes Possible timing difference between improvement construction and funding. Must not violate minimum Yes reserve requirement. May limit other projects. - '/� � IM1/"��AI �� Ove rv�ew of Bo nd ed De bt � ��` : - n e �. y c�-�onded Debt by Issua nce Type Re payme nt Source Giadden Tangerine Fa rms ID, 19,926,000 , 19°fo General Fund, 24,�93,566 , 2�% TransporCion Fund, 24,821,354 , 23% Reve n ue � Ac�o�unt ��,��o,o�� - $4,� $3,500,000 $3,000,000 $2,500,000 $2,00O,OOQ Debt and New Pr��ection _J I � I � - '/� n�,�r�Ar�,� ��` 900 800 700 600 500 400 300 200 100 2017 2018 2019 2020 2021 2022 ct Fee Revenu� DAnnual Debt Service New accounts 2023 Recommended Fnancin g ■ Blended approach of: — Developer contributions by ag reement — Excise tax revenue bonds - '/� IM1/"��AI �� ` — Re se rve c o ntrib utio n S�a u a ro BI o o m St a f f g Re�omm�n��tic�n - '/� n�,�r�Ar�,� ��` 1. Move forward with the impact fee and rate studiesassuming that the Town will provide s�e rv ic e t o Sa g u a ro Blo o m. 2. Begin design on the Saguaro Bloom force main, 9ome of which isalready complete. Have the development community pay forthe req uired g ravity sewer d esig n as pa rt of their c o ntrib utio n. 3. Monitorthe growth of Saguaro Bloom. If it goes as expected , move forwa rd with construction of the c o nveya nc e s�ste m in a p p roxim a te ly 1 ye a r. S�a u a ro Blo o m A c u isit io n g a - '/� IM1/"��AI �� ` ■ Saguaro Bloom isexpected to grow to a p p roxim a te ly 1,500 u n its in the next 10 yea rs. Thes�e connections may d oub le the p ote ntia l new g rowth in the M a ra na WRF, a Ilow ing the Tow n to p a y d ow n the acquisition debt as9ociated with the system 5ooner. S�a u a ro Blo o m A c u isit io n g a - '/� IM1/"��AI �� ` ■ l�he optimum utilities9ervice s�cenario isto be the water and wastewater s�ervice provider. Provid ing these 9ervicesto Sag ua ro Bloom positionsthe Town to maximize the renewable re5ource portfolio and to provide both s�ervicesto adjacent development 5o uth of the Sa nta C ruz Rive r. Q uestio ns? � � i - '/� IM1/"��AI �� `