AgdaPkt 2015-10-12 Closed and Joint SA and PFA

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8.B. - Page 16 This is due to the jail's inmates placing debris into the sewer that causes disruption to the pumping facility. In 2008, the Authority sued the County to cover the cost of these extra services. Through a mediation process, in 2009, the County agreed to pay the Authority $2.3 million for past damages and ongoing costs related to the problem. The County also agreed to implement changes to its enforcement and monitoring of what the inmates put into the sewer. These changes have resulted in significantly reduced issues, but have not completely eliminated the issue. The Authority is in the early planning stages for replacement of the current pump station and is incorporating processes that will allow the pump station to remove the material introduced by the jail inmates. The new pump station will not be online until approximately the fourth quarter of 2016. It is estimated that the ongoing impact of the jail adds an additional cost of operating the existing pump station of approximately $150,000 to $200,000 per year. These costs are covered by the settlement agreement through fiscal year 2014-15. The modifications required for the new pump station are expected to add approximately $1.0 million to the cost of building the facility and will result in those costs being covered by the City as part of the cost of constructing the pump station. Sewer Facilities Fee for New Development The City levies a sewer facilities fee on applicants for new (or expanded) wastewater service as a condition of obtaining a permit to connect to the sewer system. This fee is used to help fund the cost of sewer facilities that provide benefit to the new or expanded connection. The City's sewer facilities fees are established by the city council of the City. The current sewer facilities fee for a new residential connection is $960. New non-residential connections pay a fee equal to $960 per each 2,000 square feet of building area. In addition, pursuant to the Joint Powers Agreement, the City also collects the Authority's connection fees and periodically remits payment of these fees to the Authority. Future Capital Needs The City budgets funds annually for capital improvements to its sewer collection system including repairs, replacements, upgrades, and expansions. Historically, the City budgeted approximately $1 million annually for capital improvements to its sewer system, excluding payments made to the Authority for improvements to the Authority's wastewater system. Starting in fiscal year 2008-09, the City began raising its sewer rates to provide increased funding for its sewer system capital needs. The City appropriated $7.00 million for sewer system capital funding in fiscal year 2015-16 in addition to capital improvement program designations carried over from prior years, and projects to budget between $4.0 million and $7.0 million annually through fiscal year 2019-20. The City anticipates fully funding its sewer system capital improvements on a pay-as-you-go basis. The City updated its 2008 Sanitary Sewer Master Plan in January 2013. The revision included an hydraulic analysis with updated flow monitoring information and land use data. These revisions resulted in an updated cost for the recommended capital improvement projects that were identified in the 2008 Sewer Master Plan. This new update identified approximately $45,281,000 of recommended capital improvements to the City's wastewater collection system to address existing and future growth capacities. Based on priority rankings, approximately $14,242,000 of