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HomeMy WebLinkAboutCouncil Presentation 01/19/2021-Wheeling PolicyWheeling IGA Policy and Direction January 19, 2021 •Approved August 18 by Resolution No. 2020-087 •The Town's CAP water is wheeled through TW's potable water system to points of interconnection within the Town limits •A mechanism to allow MW to provide potable water service to properties –located within Town limits –too far away from existing MW facilities to receive cost-effective service from MW –close enough to be served by water lines owned and operated by TW but do not meet TW’s water service policy Wheeling IGA •October 13, 2020 Study Session provided initial approach to applicability of the Wheeling IGA -Can Marana Water rates absorb the costs from Tucson Water through a savings in reduced production/delivery costs to developments receiving wheeled water? -Explore options for a fee that could be applied to temporary and permanent wheeling customers so that permanent and temporary are treated equally Background •Marana Water can in fact cover the additional costs of wheeling in current rate structure –$500 to $670 per acre foot of water delivered •Pumping, maintenance, electricity, and treatment Can provide water service at no additional cost to customers Rates •Each proposed development is required to determine impacts it will have on the system and the infrastructure to offset those impacts •This is all completed during the early design stages of the project •Reviewed 10 projects that had offsite or significant onsite infrastructure required to develop –Developers paid additional 2-3 times the impact fee for that area to construct infrastructure –Developers also paid impact fees; Impact fee only used as a point of reference •For projects that require oversizing reimbursement options, details are applied and negotiated in a water service agreement Current practice •Fee for use of wheeling agreement would be difficult to justify and defend •This could be an advantage over developments that have no choice but to connect to Marana Water (those close to existing infrastructure, not near Tucson Water) •Temporary wheeling had a limited area of applicability •Additional resources required for developments not included in our DAWS –Fee for use of CAGRD water for 15 years –Approximately $3,300 per EDU Fee for Wheeling •If the project is in Marana Water’s intended service area, the project must connect to Marana Water infrastructure. All offsite infrastructure costs would be paid by the developer and all impact fees would apply. •No temporary wheeling –would apply to limited areas (service area map) •If the project is located in an area where Marana Water does not intend to extend infrastructure, the project would be a candidate for permanent wheeling. These developments shall be required to pay a fee for acquiring additional water resources as they are not currently included in our DAWS . •Applied administratively Recommendation -May temporarily limit development opportunities for those in our intended service area not located near Marana Water infrastructure +Simple, straight forward +Allows development in areas where Marana will not have infrastructure to be served through permanent wheeling + Similar to how other developments in Marana are evaluated +Will help reduce future infrastructure impact fees projects, minimizing costs for future development + Fee for future water resources in permanently wheeled areas Recommendation Questions/Discussion