HomeMy Public PortalAboutPKT-CC-2017-04-04City of Moab
217 East Center Street
Moab, Utah 84532-2534
Main Number (435) 259-5121
Fax Number (435) 259-4135
Memorandum
To: Councilmembers and Media
From: Mayor David L. Sakrison
Date: 3/29/2017
Re: Special City Council Workshop
Mayor:
Council:
David L. Sakrison
Kyle Bailey
Rani Derasary
Heila Ershadi
Kalen Jones
Tawny Knuteson-Boyd
The City of Moab will hold a Special Moab City Council Meeting on Tuesday, April 4, 2017 at 5:30
PM. The purpose of this meeting will be:
1-1 Approval of Proposed Resolution #24-2017 —A Resolution Adopting changes in the City
of Moab Sewer Rate Schedule
1-2 Budget Workshop for Proposed Fiscal Year 2017-2018 Annual Budget
The meeting will begin in the Council Chambers at t
ity Center 217 ast Ce er Str et, Moab, Utah.
Mayor Da • L. Sakrison
In compliance with the Americans with Disabilities Act, individuals needing special accommodations during this meeting should
notify the Recorder's Office at 217 East Center Street, Moab, Utah 84532; or phone (435) 259-5121 at least three (3) working
days prior to the meeting.
First EPA Green Power Community in the Nation
AGENDA SUMMARY
MOAB CITY COUNCIL MEETING
April 4, 2017
Agenda Item
#: 1-1
Title: Approval of Proposed Resolution #24-2017 — A Resolution Adopting
changes in the City of Moab Sewer Rate Schedule
Fiscal Impact: 20% increase in sewer rates FY 2017-2018
Staff Presenter(s): Rachel Stenta, Assistant City Manager
David Everitt, City Manager
Department: Engineering/Sewer
Applicant: N/A
Background/Summary: As you may recall, two years ago the City identified a
need to schedule annual increases to our sewer rates to meet the rate required
to retire the debt on the new Water Reclamation Facility. We have anticipated in
each year's budget increasing the sewer rates incrementally until we reach that
goal. As part of that process, we commissioned a Sewer Rate Study with Bowen
Collins and Associates to assess the bonding revenue requirements of our
Sewer Rates.
The WRF loan is scheduled to close on April 11, 2017. We learned quite recently
that — prior to closing — the City must demonstrate to the funding agency that we
will meet the required rate to retire the debt by the time our first payment is due in
2020. The City needs to adopt an anticipated five-year rate schedule along with
the Sewer Rate Study upon which the schedule is based.
This rate study includes a 10-year budget plan (p. 1-6) that outlines strategies for
future rate increases, capital improvement prioritization and maintaining
acceptable savings balances. You may note, however, that this approach is not a
more nuanced strategy with regard to assessing commercial users, i.e. hotels.
Bowen -Collins is currently finishing up an additional rate study that directly
addresses this issue with commercial properties, but it will not be done in time to
adopt prior to the loan closing. Once that study is complete, we will bring it to you
for consideration. This may result in the sewer rates changing again.
Options: Approve, Deny or Postpone
Staff Recommendation: Approval of the Resolution adopting the five-year rate
schedule and accepting the Sewer Rate Study
Recommended Motion: I move to approve (insert agenda title)
Attachment(s): Proposed Resolution #24-2017
Sewer Rate Study — February 2017
RESOLUTION # 24-2017
A RESOLUTION ADOPTING CHANGES IN THE CITY OF MOAB SEWER RATE
STRUCTURE
WHEREAS, the City of Moab is planning for an upgrade and expansion to the City's Wastewater
Treatment Plant; and
WHEREAS, the current sewer rate will not provide sufficient revenues to pay debt service on
loans obtained from the State of Utah that will be needed to pay for the upgrade and expansion;
and
WHEREAS, in order to receive low interest loans or grants from the State of Utah, the City must
show that sewer system users pay a reasonable monthly charge for sewer services, in an
amount to cover system costs, but not to exceed 1.4% of Median Adjusted Gross Household
Income (MAGI); and
WHEREAS, the City of Moab's MAGI is $32,965, based on the 2010 census; and
WHEREAS, the City's current average residential sewer rate is $21.88, or 0.66% of MAGI, which
is considered too low by the state for the City to qualify to receive grants or the lowest interest
loans; and
WHEREAS, the sewer rate should be raised progressively over the next several years to bring
the rates closer to 1.4% of MAGI; and
WHEREAS, the proposed rate structure would raise the average residential sewer rate to $26.26,
which is an approximate 20% increase over the current average residential sewer rate.
NOW, THEREFORE BE IT RESOLVED, that the following five year sewer rates structure shall
be adopted by the City of Moab:
A. Standard Rates
Monthly Base Rate
Existing
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Residential
$14.40
$17.28
$20.74
$23.22
$24.27
$24.27
Commercial
$19.10
$22.92
$27.50
$30.80
$32.19
$32.19
Volume Rate
Existing
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Residential
$1.70
$2.04
$2.45
$2.74
$2.87
$2.87
Commercial
$1.85
$2.22
$2.66
$2.98
$3.12
$3.12
Average Monthly Residential Bill
$21.88
$26.26
$31.51
$35.29
$36.88
$36.88
1. Single Family Dwellings Not Connected to the City Water System $24.35
2. Multiple Unit Residential Complexes Not Connected to the City Water System $24.35 per unit
3. Commercial Establishments Not Connected to the City Water System $92.15
4. Governmental Entities and Institutions Not Connected to the City Water System $72.00
5. Spanish Valley Water and Sewer District
Sewer Hook-up/Connection Type Monthly Rate
Residential (per connection) $11.10 Small Commercial (per
connection) $12.70 Large Commercial (per connection)
$22.20
Trailer Spaces (per space) $6.00
Motels (per room) $2.40
B. Septage Rates
Item
FYE
2017
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Recommended Septage
Rate ($/gal)
$0.090
$0.180
$0.180
$0.190
$0.190
$0.190
B. Individual Rate Calculation
In cases in which the City Manager determines that the standard rate or formula as defined in this
chapter produces an inaccurate or inappropriate charge, the City Manager may calculate an
individual sewer rate based on other available information, providing that the rates calculated
must be equitable with respect to other users in the system.
PASSED AND ADOPTED in open Council by a majority vote of the Governing Body of the City
of Moab this 4t" day of April, A.D., 2017. This ordinance shall take effect on July 1, 2017. Rates for
Spanish Valley Water and Sewer District will take effect July 1, 2017.
David L. Sakrison
Mayor
ATTEST:
Rachel E. Stenta
City Recorder
Prepared by:
Bowen Collins
& Associates, Inc.
CONSULTING ENGINEERS
Prepared for:
SEWER RATE STUDY
February 2017
Prepared for: prepared by:
CITY OF
M046,4p,
Bowen Collins
'L& Associates, Inc.
. CONSULTING ENGINEERS
SEWER RATE STUDY
TABLE OF CONTENTS
Page No.
EXECUTIVE SUMMARY ES-1
Introduction ES-1
Sewer Rate Analysis ES-1
Required Rates to Meet Revenue Needs ES-2
Impact on Moab City Customers ES-2
SEWER RATE ANALYSIS 1-1
Introduction 1-1
Background and Cost Divisions with Other Entities 1-1
Moab Charges to SVW&SID 1-1
Moab Charges for Septage Service 1-3
Projected Revenue Needs 1-4
10-Year Budget Plan 1-6
Rate Calculation 1-8
Rate Comparison 1-10
Recommendations 1-10
LIST OF APPENDICES
APPENDIX A — TECH MEMO #2: COST SHARE OF SYSTEM COSTS
APPENDIX B — PROJECTED NON -RATE REVENUE AND REVENUE
REQUIREMENTS
BOWEN, COLLINS & ASSOCIATES I MOAB CITY
SEWER RATE STUDY
TABLE OF CONTENTS
(continued)
LIST OF TABLES
No. Title Page No.
ES-1 Required Rates to Meet Projected Revenue Needs ES-2
1 Projected Charges from Moab to SVW&SID for Operation and Maintenance Costs 1-2
2 Projected Septage Costs 1-3
3 Recommended Septage Rates 1-3
4 Recommended Annual Revenue Increases for the 10-Year Budget Plan 1-7
5 Required Rates to Meet Projected Revenue Needs 1-8
BOWEN, COLLINS & ASSOCIATES II MOAB CITY
SEWER RATE STUDY
TABLE OF CONTENTS
(continued)
LIST OF FIGURES
No. Title Page No.
ES-1 Comparison of Monthly Sewer Rates, Average Residential Customer ES-3
1 10-Year Revenue and Expenditures — Moab City Sewer 1-5
2 10-Year Reserve Fund Balance — Moab City Sewer 1-9
3 Comparison of Monthly Sewer Rates, Average Residential Customer 1-11
BOWEN, COLLINS & ASSOCIATES III MOAB CITY
SEWER RATE STUDY
EXECUTIVE SUMMARY
INTRODUCTION
Moab City is in the process of designing a complete replacement of its existing wastewater
treatment facility. As a result of this project and general system growth, the City faces potential
capital improvement costs, loan service costs, as well as maintenance and operation costs which
will likely increase in the years to come. The purpose of this study is to update the City's sewer
service charges as necessary to meet those cost needs. Implementing the recommendations
contained in this report will assist Moab City in adequately funding potential infrastructure
improvements and staying on track with projected operation budgets.
This report was originally completed in October of 2016, but was updated in February of 2017 to
reflect higher than expected construction costs associated with the City's new wastewater
treatment plant.
SEWER RATE ANALYSIS
The primary objective of this sewer rate analysis is to establish rates that will be sufficient to
meet revenue requirements for the City. To accomplish this goal, this analysis focused on six
major tasks:
1. Projecting Growth: The Moab City sewer system is currently composed of
approximately 2,481 individual accounts compromising 5,528 residential equivalent
residential units (ERUs). Based on Moab City water reclamation facility planning
information, the estimated total population growth rate for the next six years was
estimated to be approximately 1.1 % for all customers.
2. Calculating Revenue Requirements: Total revenue requirements for the City were
projected for the next several years. Those requirements included operations and
maintenance costs, capital improvement costs, facilities rehabilitation/replacement costs,
and debt service. Revenue generated outside of sewer rates (impact fees, sewer sales to
SVW&SID, septage sales, finance charges, etc.) was deducted from the total to give the
net revenue requirement to be recovered from service charges.
3. Comparing Revenue to Required Revenue: Once revenue requirements are projected,
it is possible to compare required revenue to revenue projections. The City has
historically been able to fund most projects without bonding and consequently has been
able to minimize interest charges that might otherwise be required for capital projects.
Unfortunately, projected future capital improvement needs, as well as increases in
operation and maintenance costs, show Moab City revenues falling below projected
revenue requirements in future years.
4. Developing a Funding Plan to Meet Projected Needs: In order for the City to meet
projected expenditures and maintain its reserve fund to acceptable levels, it is important
that revenue be sufficient to accommodate future projects. This study develops a plan to
maintain the City's savings fund and maintain funding levels appropriate to provide the
desired level of service in the wastewater system.
BOWEN, COLLINS & ASSOCIATES
ES-1 MOAB CITY
SEWER RATE STUDY
5. Calculating Final Sewer Rates: Using the City's existing rate structure, sewer rates
were calculated to recover needed revenue based on operation and maintenance costs,
debt service, and capital improvement costs.
Because of the need to have a viable rate plan in place before construction of the treatment plant
begins, this rate study has been limited to a revenue needs analysis. It does not include a full
cost -of -service analysis or look at the individual components of the City's existing rate structure
in any way. It is expected that the City will revisit its rate structure based on cost -of -service
principles in the near future and update its rate structure as necessary.
REQUIRED RATES TO MEET REVENUE NEEDS
The sewer rates shown in Table ES-1 reflect a multiple year rate schedule needed to meet the
projected costs of capital improvements and system renewal. After an initial three years of
increases to bring rates up to the recommended sustainable long-term level of funding, further
annual increases can likely be delayed until after the study period.
Table ES-1
Required Rates to Meet Projected Revenue Needs
Monthly Base Rate
Existing
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Residential
$14.40
$17.28
$20.74
$23.22
$24.27
$24.27
Commercial
$19.10
$22.92
$27.50
$30.80
$32.19
$32.19
Volume Rate
ExistingFYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Residential
$1.70
$2.04
$2.45
$2.74
$2.87
$2.87
Commercial
$1.85
$2.22
$2.66
$2.98
$3.12
$3.12
Average Monthly Residential Bill
$21.88
$26.26
$31.51
$35.29
$36.88
$36.88
IMPACT ON MOAB CITY CUSTOMERS
As shown in Figure ES-1 (next page), the City's existing rates are a little lower than the average
of service entities surveyed as part of this study. With the rate increases shown in Table ES-1,
the monthly rates in Moab City will be toward the upper end of the entities compared, but not the
highest surveyed. Considering that the proposed plan accomplishes the complete replacement of
the treatment facility, the proposed rates increases appear to be reasonable and not out of line
with what would be expected in this situation.
BOWEN, COLLINS & ASSOCIATES
ES-2 MOAB CITY
SEWER RATE STUDY
$50.00
$45.00
$40.00
$35.00
s $30.00
$25.00
a�
c S20.00
L
S 15.00
$10.00
$5.00
$0.00
Figure ES-1
Comparison of Monthly Sewer Rates, Average Residential Customer
��
4
z;Se 6.$1 4Z§t`
4
'FYE 2022 ratesfor other entities based on annual increasesto account for inflation only (396)
'Average bill based on an assumed 4,400galimonth use per residential customer
'Entities may charge taxesthat are not reflected in monthly bills
BOWEN, COLLINS & ASSOCIATES
ES-3
Otis �a�-" a1q �O' Gti6
�� �� ,o °,
C. ativ
4.%
MOAB CITY
SEWER RATE STUDY
SEWER RATE ANALYSIS
INTRODUCTION
Moab City is in the process of designing a complete replacement of its existing wastewater
treatment facility. As a result of this project and general system growth, the City faces potential
capital improvement costs, loan service costs, as well as maintenance and operation costs which
will likely increase in the years to come. The purpose of this rate study is to update Moab City's
(City) sewer rates based on system revenue requirements that have occurred since the City last
established rates. The rate study will calculate detailed rates for the next six years and present a
longer term finance plan to achieve the City's primary objectives of:
• Maintain high quality and reliable sewer service at affordable prices for customers;
• Sustain stable revenue generation adequate to fund system needs; and
• Minimize the City's long-term costs by avoiding further debt where possible.
Implementing the recommendations contained in this report will help Moab City keep its sewer
system adequately funded to maintain its current infrastructure and continue to provide
dependable service to its customers.
This report was originally completed in October of 2016, but was updated in February of 2017 to
reflect higher than expected construction costs associated with the City's new wastewater
treatment plant.
BACKGROUND AND COST DIVISIONS WITH OTHER ENTITIES
Moab City presently provides sanitary sewer collection and treatment services to all customers
within the City's boundaries. In addition, it accepts wastewater collected from Spanish Valley
Water & Sewer Improvement District (SVW&SID) for treatment at the City's existing
wastewater treatment plant (WWTP). Moab City separately charges SVW&SID for that service.
Moab City also charges fees to private septage haulers in order to accept and treat septage from
nearby campgrounds and other similar establishments.
As part of this sewer rate study, Technical Memorandum #2: Cost Share of Future Sanitary
Sewer System Costs was updated to reflect the modified cash contributions from Moab City and
Spanish Valley Water & Sewer Improvement District (SVW&SID) for the new wastewater
treatment plant and the finalized impact fees developed by Bowen, Collins & Associates, Inc.
The updated document is included in Appendix A. This document provides all the information
necessary for establishing Moab City charges for sewer service outside its retail service area.
Moab Charges to SVW&SID
Based on the results summarized in Technical Memorandum #2, recommended rates charged by
Moab to SVW&SID are as summarized in Table 1.
BOWEN, COLLINS & ASSOCIATES 1-1
MOAB CITY
SEWER RATE STUDY
Table 1
Projected Charges from Moab to SVW&SID for Operation and Maintenance Costs'
Item
FYE
2017
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Flow ERUs
2,707
2,761
2,884
3,273
3,404
3,536
Treatment ERUs
2,944
3,003
3,148
3,583
3,736
3,891
Flow Costs/Month
$10,958
$11,388
$12,046
$13,535
$14,262
$15,014
Treatment Costs/Month
$13,722
$16,996
$18,112
$20,692
$21,948
$23,254
Total Costs/Month
$24,680
$28,384
$30,158
$34,226
$36,209
$38,268
Monthly Flow O&M Cost/ERU
$4.05
$4.12
$4.18
$4.14
$4.19
$4.25
Monthly Treatment O&M
Cost/ERU
$4.66
$5.66
$5.75
$5.78
$5.87
$5.98
Total Monthly O&M Cost/ERU
$8.71
$9.78
$9.93
$9.91
$10.06
$10.22
Total O&M Costs
$296,157
$340,614
$361,900
$410,718
$434,513
$459,215
Annual Loan Payment
$0
$102,207
$102,207
$102,207
$102,207
$102,207
Impact Fee Credit Offset/New
ERU/Year
$362.38
$331.24
$302.39
$277.78
$254.87
$233.51
Estimated Total Credit Offset
$20,919
$19,503
$43,859
$120,743
$39,163
$36,204
Total Costs/Year
$317,076
$462,324
$507,966
$633,668
$575,883
$597,626
'Includes projected future San Juan connection costs and USU extension costs
2The large increase in 2020 assumes connections from San Juan occur in this year
As shown in the table, it is recommended that the monthly bill to SVW&SID be generated based
on four items:
• The number of flow ERUs multiplied by the rate per flow ERU
• The number of treatment ERUs multiplied by the rate per treatment ERU
• A fixed amount for loan costs through the life of the loan (independent of ERUs)
• Impact fee credit offset multiplied by the number of new treatment ERUs (will vary
based on actual number of new connections)1
It should be emphasized that Table 1 represents charges from Moab to SVW&SID only and is
not intended to be a full rate study for SVW&SID customers. It is recommended that
SVW&SID evaluate its existing rates to ensure sufficient funding to cover the amounts shown.
' For a more detailed description of this credit, see the 2016 Moab Sewer Impact Fee Analysis and the Technical User Fee Credit Memorandum
dated May 25, 2016.
BOWEN, COLLINS & ASSOCIATES 1-2 MOAB CITY
SEWER RATE STUDY
Moab Charges for Septage Service
Also based on the results of Technical Memorandum #2, projected septage revenue requirements
are shown in Table 2. Based on those projections, Table 2 lists the calculated and recommended
septage sales rates to meet the revenue projections.
Table 2
Projected Septage Costs
Item
FYE
2017
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Treatment Costs
$76,755
$97,478
$103,438
$108,193
$114,478
$120,972
Debt Service Costs
-
$143,864
$143,864
$143,864
$143,864
$143,864
Additional Treatment Costs
-
-
$36,257
$36,257
$36,257
$36,257
Total Costs
$76,755
$241,341
$283,559
$288,314
$294,599
$301,093
Cumulative Costs
$76,755
$318,096
$601,655
$889,969
$1,184,568
$1,485,661
Projected Septage
Treatment ERUs
1,372
1,435
1,498
1,561
1,624
1,687
Projected Septage Flows
(MGD)
0.0055
0.0057
0.0060
0.0063
0.0065
0.0068
Calculated Septage Rate
($/gal) to Meet Total Costs
$0.060
$0.180
$0.202
$0.197
$0.194
$0.191
From the table, it can be seen that the calculated septage rate jumps up over the first two years
and then begins to decline after FYE 2019 because the number of septage ERUs continues to
increase while the debt service costs associated with the WWTP construction remain fixed. To
avoid raising and then lowering of rates during the study period, BC&A would recommend
modifying the rates slightly as shown in Table 3 to gradually increase from the current 9 cents
per gallon to 19 cents per gallon in FYE 2020 before leveling off. If the total revenue generated
by these rates is compared against actual costs as summarized in Table 2, it can be seen that the
recommended rates generate a little more revenue than needed to meet costs up front, but then
draw on these reserves in a few of the first years after the plant is constructed. By the end of the
planning period, cumulative costs and cumulative revenues are nearly identical.
Table 3
Recommended Septage Rates
Item
FYE
2017
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Recommended Septage
Rate ($/gal)
$0.090
$0.180
$0.180
$0.190
$0.190
$0.190
Recommended Septage
$115,551
$241,700
$252,299
$277,503
$288,690
$299,878
Rate Revenue
Cumulative Revenue from
Recommended Rates
$115,551
$357,251
$609,550
$887,053
$1,175,743
$1,475,621
BOWEN, COLLINS & ASSOCIATES
1-3
MOAB CITY
SEWER RATE STUDY
PROJECTED REVENUE NEEDS
With rates established for SVW&SID and septage users, Moab can begin to look at its own
customers in greater detail and the overall plan for meeting the future revenue needs of the City.
The first step in this process is to project future expenditures. Historic and projected
expenditures for the City from FYE 2014 to FYE 2026 are shown in Figure 1. Future
expenditures can be grouped into three categories:
• Operation and Maintenance Expenditures — These are the annual costs of running the
system. They include items such as salaries and benefits for Moab City staff, equipment
and supplies, power costs, system repairs, and all other costs associated with doing
business throughout the year. The projected operation and maintenance costs for Moab
City were based on the City's budgeted amount for FYE 2017. Beyond FYE 2017, it has
been assumed that all of the O&M cost categories will annually increase at an assumed
inflation rate of 3.0 percent added to half the connected growth rate.
The one exception to this is treatment costs. Construction of the City's new treatment
plant is tentatively scheduled to be completed in FYE 2018. Following the upgrade, it is
anticipated that annual wastewater treatment O&M costs will increase by approximately
$115,000. It is typically recommended that rates be re-evaluated every 3 to 5 years.
Depending on the actual timing of the new WWTP construction and the magnitude of the
subsequent potential treatment O&M cost increase, it is recommended that the City be
prepared to update rates to maintain recommended funding levels.
• Debt Service — These are the costs paid toward the loan planned to be taken out by the
City in the near future. These costs are easily predictable because they are tied to set loan
repayment schedules. Currently, the City does not have any sewer related debt. It is
anticipated that the new WWTP will require a loan of approximately $14,200,000.
Another loan of approximately $1,400,000 is expected in FYE 2019 in association with
the construction of the South Trunk Line project. The projected debt service costs for the
City have been taken from the City's proposed loan payment schedule.
• Capital Improvement Expenditures from Reserves and Loan Proceeds — These are
costs for constructing new facilities within Moab City. This can include completely new
facilities or replacement of existing facilities. Capital improvement expenditures are
usually the most volatile of expenditure categories. Because O&M and debt service costs
are basically fixed, budgets are usually balanced by increasing or decreasing capital
improvement expenditures as necessary.
For this study, only three major new City capital improvement projects are projected to
occur during the evaluated time period. The first is the new WWTP. As part of this
project, Moab City and SVW&SID will each contribute an agreed upon amount from
cash reserves to partially fund the project, $1,320,595 and $800,000 respectively. Moab
City will take out a loan for the remaining balance. The second major project is the
South Trunk Line. Costs associated with this project are $2,100,000 and have been
spread over two years in the rate model. To maintain cash reserves at an acceptable level,
it is expected that the City will need a loan for $1,400,000 in FYE 2019 in association
BOWEN, COLLINS & ASSOCIATES 1-4 MOAB CITY
SEWER RATE STUDY
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
FYE
FYE
Figure 1
10-Year Revenue and Expenditures - Moab City Sewer
FYE
FYE
FYE
FYE
FYE
FYE
Capital Expenditures from Loan Proceeds
Debt Service
Cash Contribution from GWSSA for WWTP
Capital Expenditures from Reserves
0&M
— — Projected Income - Recommended Rates
Projected Income - Existing Rates
FYE
FYE
FYE
FYE
FYE
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
BOWEN, COLLINS & ASSOCIATES
1-5
MOAB CITY
SEWER RATE STUDY
with this project. The final project is the 400 East trunk pipeline which is expected to be
replaced in FYE 2021.
The remaining expenditures of this category primarily account for rehabilitation and
replacement of existing infrastructure and other minor improvements. As with most
things, each component of a sewer system has a finite service life. As such, it is
necessary to continually budget money for the rehabilitation or replacement of these
system components. If adequate funds are not set aside for regular investment into the
system, the system will fall into disrepair and be incapable of providing the level of
service customers in the City expect. To maintain the sewer system in good operating
condition, it is recommended that the City's annual investment into the system be
approximately equal to the replacement value of the system divided by its estimated
service life. The City's sewer infrastructure (not including the WWTP) is expected to
have a remaining service life of approximately 90 years with a combined replacement
and rehabilitation cost of approximately $45,000,000. Therefore, the annual investment
into the system should be approximately $500,000 in FYE 2017. This number can be
refined in the future if the City develops a more detailed asset management plan, but has
been used in this study as the basis for future system investment.
A detailed table of projected system expenditures is contained in Appendix B of this report.
10-YEAR BUDGET PLAN
With the expected expenditures outlined above, it is possible to prepare a future budget plan. A
budget plan has been developed and is shown with projected expenditures in Figure 1. The
process of creating this budget plan was as follows:
1. Identify projected revenue based on existing sewer rates — Using Moab City's existing
sewer rates, Bowen, Collins & Associates (BC&A) calculated the revenue the City could
expect to receive over the next 10 years. These projections include consideration of
future system growth.
2. Compare projected revenue to required revenue — Once revenue projections have
been developed, it is possible to compare revenue projections to required revenue. As
can be seen in Figure 1, projected revenue based on existing rates will begin to fall short
of expenditures in FYE 2017. In FYE 2017 and moving forward, the situation is
expected to get consistently worse. To satisfy the City's anticipated loan repayment
schedule and to fund projected capital improvement projects in the future, a rate increase
will definitely be needed.
3. Create a plan to transition from existing revenue to revenue adequate to support
long-term system needs — To close the gap between projected revenue from existing
rates and recommended rate revenue for long-term system needs, it is recommended that
existing rates be increased over the next three years. To meet projected rate revenue
needs (including minimum bond coverage requirements) a large initial increase will be
required. To generate the revenue shown in the budget plan in Figure 1, approximate
annual overall rate revenue increases will need to be as shown in Table 4.
BOWEN, COLLINS & ASSOCIATES 1-G MOAB CITY
SEWER RATE STUDY
Table 4
Recommended Annual Revenue Increases for the 10-Year Budget Plan
Year
Rate
Revenue
Increase
FYE 2018
20%
FYE 2019
20%
FYE 2020
12%
FYE 2021
4.5%
FYE 2022
0%*
FYE 2023
0%*
FYE 2024
0%*
FYE 2025
0%*
FYE 2026
0%*
* No significant increase expected, but small annual adjustments may be needed to account for inflation or other issues.
After the initial transition period to bring rates up to the recommended sustainable long-
term levels, no annual rate increases other than minor inflation adjustments are expected
to be required throughout the study window.
4. Modify capital improvement expenditures to fit within the identified budget — As
noted previously, there is not much change that can be made to O&M or debt service
expenditures. Therefore, any modifications required to meet the recommended budget
plan will need to come through capital improvement expenditures. The capital
expenditures shown in Figure 1 represent the level of expenditures that can be supported
by the budget plan. See Appendix B for additional details on the magnitude and timing
of capital expenditures.
5. Maintain an acceptable savings balance — Presently, the City combines the water and
sewer reserve fund. BC&A has assumed that the amount of the reserve fund which can
be expected to be available for sewer related purposes is based on the proportion of water
and sewer expenditures. Of the FYE 2016 water/sewer reserve fund balance of
$3,012,093, it has been assumed that approximately $1,722,000 is available for sewer
related expenditures. BC&A recommends that the City attempt to maintain a sewer
reserve fund balance approximately equal to 6 months of O&M expenses. A reserve fund
balance will allow the City flexibility to deal with various potential issues such as
unexpected revenue reductions, ability to avoid bonding for smaller projects, or other
emergency purposes. The proposed 10-year budget plan will include transfers into and
out of the City's reserve fund based on the timing of capital improvements and system
revenue. For example the new wastewater treatment plant construction is tentatively
scheduled to occur in FYE 2017-2018. The revenue model plans to transfer money in
FYE 2017 out of savings for part of this expense. In FYE 2018, loan proceeds will pay
for the remaining portion of the plant and the reserve fund will have unused funds
transferred back into it. In FYE 2019 when the bulk of the South Trunk line project
funding becomes due, the savings can be utilized to cover a large portion of its balance.
BOWEN, COLLINS & ASSOCIATES 1-7 MOAB CITY
SEWER RATE STUDY
Figure 2 shows the anticipated 10-year savings fund balance with expected transfers into
and out of savings based on system revenue and capital improvement projects. The
capital expenses for the yet to be determined system replacement and rehabilitation
projects are planned to generally be delayed until FYE 2020 to avoid bonding for the
other previously named projects. Then from FYE 2023 through FYE 2025 the dollar
amounts of replacement and rehabilitation projects that were deferred in FYE 2017
through FYE 2019, will be added to the replacement and rehabilitation budgets of those
later years to avoid falling behind on system upgrades. In FYE 2026 and beyond, it is
recommended that the City utilize all the full amount budgeted for system rehabilitation
and replacement on actual capital improvement projects.
RATE CALCULATION
Because of the need to have a viable rate plan in place before construction of the treatment plant
begins, this rate study has been limited to a revenue needs analysis. It does not include a full
cost -of -service analysis or look at the individual components of the City's existing rate structure
in any way. It is expected that the City will revisit its rate structure based on cost -of -service
principles in the near future and update its rate structure as necessary.
With this report limited to a revenue needs analysis, the final step in the rate calculation process
is to simply multiply the City's existing rate structure by the percent increases identified in Table
4. The resulting recommended rates are summarized in Table 5.
Table 5
Required Rates to Meet Projected Revenue Needs
Monthly Base Rate
Existing
FYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Residential
$14.40
$17.28
$20.74
$23.22
$24.27
$24.27
Commercial
$19.10
$22.92
$27.50
$30.80
$32.19
$32.19
Volume Rate
ExistingFYE
2018
FYE
2019
FYE
2020
FYE
2021
FYE
2022
Residential
$1.70
$2.04
$2.45
$2.74
$2.87
$2.87
Commercial
$1.85
$2.22
$2.66
$2.98
$3.12
$3.12
Average Monthly Residential Bill
$21.88
$26.26
$31.51
$35.29
$36.88
$36.88
BOWEN, COLLINS & ASSOCIATES 1-8
MOAB CITY
SEWER RATE STUDY
$3,000,000
$2,500, 000
$2,000, 000
$1,500,000
$1,000, 000
$500,00
$0
Figure 2
10-Year Reserve Fund Balance - Moab City Sewer
FYE
FYE
FYE
T
FYE
FYE
FYE
FYE
Sewer Master Plan
Building Project
SCADA Upgrades
Sewer Lift Station Pump
Replace 400 East Trunk Pipeline
New South Trunk Pipeline
Non -Loaned Treatment Plant Capital Costs
Collection - Rehabilitation & Replacement
Reserve Fund Balance
• • • • Target Fund Balance (6 Months of 0&M)
FYE
FYE
• • • •
FYE
FYE
• • • •
FYE
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
$3,000, 000
— $2,500,000
— $2,000,000
$1,500,000
$1,000,000
$500,000
$O
BOWEN, COLLINS & ASSOCIATES
1-9
MOAe CITY
SEWER RATE STUDY
RATE COMPARISON
Figure 3 shows a comparison of Moab City's current and proposed sewer rates for an average
residential customer with other communities in Utah. The figure displays the projected 2017
average monthly sewer rate and the estimated sewer rate in 2022 for several sewer service
entities. As shown in the figure, the City's current rates are a little lower than average compared
to other cities and service districts. With the proposed rate increases over the next several years,
Moab City's monthly sewer fee will be toward the upper end of the entities compared, but not
the highest surveyed.
RECOMMENDATIONS
Based on the analysis contained in this report, the following actions are recommended:
Adopt Recommended Rates: It is recommended that Moab City adopt the rates summarized in
Table 5. These increases are needed to meet immediate operation and maintenance needs and to
fund capital expenditures to meet the City's longer -term system investment goals.
Consider a Multiple Year Rate Schedule: If at all possible, it is recommended that the City
adopt the full multiple year rate schedule through 2022. By adopting a multiple year rate
schedule, the City can program the desired increases to the rates consistent with the results of
this report and provide longer notice to customers.
Consider Maintaining Separate Water and Sewer Reserve Fund Accounts: An objective of
the recommended rate schedule is to maintain a reserve fund balance approximately equal to six
months of O&M costs for emergencies and other purposes. The ability to continually track the
sewer reserve fund balance will assist in detecting unexpectedly drops or trends before financial
issues become too significant. As part of future rate studies, the existing revenues and reserve
fund balances should be evaluated. If water and sewer reserve funds are co -mingled, it will be
more difficult to evaluate the performance of the rates recommended as part of this study.
Prepare a Cost -of -Service Rate Analysis: Because of the need to have a viable rate plan in
place before construction of the treatment plant begins, this rate study has been limited to a
revenue needs analysis. It is recommended that the City follow this study up with a full cost -of -
service analysis to look at the individual components of the City's existing rate structure and
verify each customer is being charged fairly.
Update This Rate Study Frequently: After the implementation of any major change to the rate
structure, we would suggest that the City monitor customer responses and system revenue for a
period to two to three years. Following this initial observation period, the rates should be re-
examined to determine if there should be any subsequent rate adjustments. A comprehensive
review of this rate study should also be performed in three to five years. The projections,
assumptions, and data contained in this report may need to be revised over time. For these
reasons, it is prudent to update the rates to ensure they are sufficient to meet system
requirements, as well as maintain cost -of -service equity in charges to customers.
BOWEN, COLLINS & ASSOCIATES
1-10 MOAB CITY
SEWER RATE STUDY
$50.00
$45.00
$40.00
$35.00
s $30.00
$25.00
a�
c S20.00
L
S 15.00
$10.00
$5.00
$0.00
Figure 3
Comparison of Monthly Sever Rates, Average Residential Customer
��
4
z;Se 6.$1 4Z§t`
4
'FYE 2022 ratesfor other entities based on annual increasesto account for inflation only (396)
'Average bill based on an assumed 4,400galimonth use per residential customer
'Entities may charge taxesthat are not reflected in monthly bills
BOWEN, COLLINS & ASSOCIATES
Otis �a�1 a1q �O' Gti6
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MOAB CITY
APPENDIX A
TECH MEMO #2: COST SHARE OF SYSTEM COSTS
Bowen Collins
tie, & Associates, Inc.
CONSULTING ENGINEERS
TECHNICAL MEMORANDUM it:
February 2017 Update
TO: David Everitt
Moab City
COPIES: File
FROM: Keith Larson P.E.
Jeff Beckman P.E.
Bowen, Collins & Associates
154 East 14000 South
Draper, Utah 84020
DATE: February 27, 2017
PROJECT: Sewer Rate Study
SUBJECT: Cost Share of Future Sanitary Sewer System Costs
INTRODUCTION
Moab City (City) is in need of a new wastewater treatment plant. As part of the planning process
for the plant improvements, the City has retained Bowen Collins & Associates (BC&A) to prepare a
sewer rate study. The purpose of this study will be to help the City develop a sustainable rate plan
to finance construction of the new plant and its subsequent operation. As part of this plan, it will be
important to fairly distribute costs among the various users of the plant. The purpose of this
memorandum is to examine the different types of future users that will benefit from the plant and
calculate an appropriate cost share for each.
This memorandum, originally completed on October 28, 2015, has been updated to reflect
additional information obtained since that time. The additional information driving the update can
be grouped into four categories:
1. Moab City O&M Budget: An updated Moab City 0&M budget has been made available to
BC&A. The cost share model has updated to reflect that budget.
2. Impact Fees: In the original memorandum, impact fees were estimated based on
information available at the time. Since October 2015, a new impact fee study has been
completed and a new impact fee structure has been established. The cost share model has
been updated to reflect those proposed impact fees.
3. Wastewater Treatment Plant Costs: Since October 2015, the wastewater treatment plant
has been designed and bid. Thus, construction costs are now known and the loan interest
rate is now known. The upfront cash contribution amounts of each entity dedicated to
construction capital costs for the new wastewater treatment plant was not finalized in
October 2015. The initial investment amounts have now been tentatively agreed upon.
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
4. Updated Connection and Flow Data - The original memo was based on connection and
flow data from 2014. To best reflect actual connections at the time of the potential
treatment plant capacity agreement, all data was updated to reflect connections in August of
2016.
PROPOSED COST SHARE APPROACH
BC&A has analyzed the expected future costs associated with Moab City's wastewater system. This
includes construction and future operation of the new wastewater treatment plant as well as the
other operating and capital costs of the system. BC&A also met with and interviewed personnel
from Moab City and Spanish Valley Water & Sewer Improvement District (SVW&SID) to gain insight
into their priorities regarding how the system will be used and operated. Based on our discussions,
we have identified the following objectives for division of future costs associated with operation of
the wastewater system:
1. Moab City wants to maintain ownership of the new treatment plant.
2. The division of costs between entities should be as fair as possible based on the actual cost
of service to each entity.
3. The final cost division should be as easy as possible to implement and administer.
Based on these objectives, BC&A has assembled a proposed cost share approach for the Moab City
wastewater system. The major components of the proposed approach are summarized in Table 1.
The approach is discussed in detail in the following sections.
Capital Costs
There are two types of costs that must be divided between those who are using the system, capital
costs and operation & maintenance costs. This section discusses capital costs. Capital costs can
further be divided into treatment costs and collection system costs.
Treatment. While not the only item of importance in this discussion, construction of a new
treatment plant is the largest single issue that will affect future costs for Moab City. Construction of
the plant will include two types of capacity:
• Replacement of Existing Capacity - The existing Moab City plant currently provides
treatment for up to 1.17 million gallons per day (mgd) of wastewater during the peak
month of the year. There are also additional users that are currently constructing homes
and businesses that will add additional flow to the plant increasing the total committed
capacity to 1.19 mgd. Since the old plant will be abandoned, the new plant must have
capacity to continue to serve these existing users. It is proposed that the portion of plant
costs used to replace existing capacity be divided among existing users based on their
actual use of committed capacity at the time the plant is constructed. In dividing these
costs, several items should be considered:
o Treatment Equivalency - When it comes to treatment capacity, it is not adequate
to look at the portion of flow used by each entity only. The strength of wastewater
must also be considered. This is especially true in Moab. The Moab plant has
historically had a significant portion of its capacity used to receive septage from the
several campgrounds and recreational areas in the vicinity of the City. This is
expected to continue in the future. The strength of wastewater coming from
BOWEN COLLINS & ASSOCIATES
MOAB CITY 2
Table 1
Proposed Cost Share Matrix
Cost Category
Capital Costs
Operations and Maintenace
Cost Area
Type of Costs
Treatment
Collecti
n
Treatment
Collection
Replacement of Existing
Capacity
Replacement of Existing Capacity
System O&M
System O&M
Construction of Capacity for
ers
Construction of Capacity for
How costs will be paid for?
Cash on Hand
and/or
Use Charges**
Impact Fees
Use Charges
Impact Fees
Use Charges
Use Charges
What is the basis of total
costs?
Portion of new treatment plant
costs required to serve existing
users
Portion of new treatment plant
costs available to serve future
users
Annual collection system rehabilitation
and replacement budget (1% system
replacement)
Projected costs of construction
Annual treatment O&M per
Moab budget
Annual collection O&M per
Moab budget
How are costs divided?
Proportional use of plant
capacity based on treatment
ERUs. The number of
treatment ERUs are calculated
based on the fomula established
for each type of user in the ERU
study (to be based on peak
month flow and strength).
Not divided between entities.
Capacity is distributed based on
a "first come, first serve" basis.
As a result, the owner of the
facility (Moab City) would carry
all initial costs of this capacity,
but would also receive all
future revenue from related
impact fees.
Proportional use of Moab collection
facilities based on flow ERUs. This will
be calculated in two steps:
1. Use of each pipe calculated based on
proportional flow ERUs conveyed in the
pipe.
2. Contribution of each pipe to the
overall system weighted by length times
flow capacity of pipeline assuming State
minimum slope (estimate of required
O&M effort).
Same as treatment capital costs for
future capacity.
Proportional use of plant
capacity based on treatment
ERUs
Same as collection capital
costs for existing capacity.
When are costs divided?
Calculated only once based on
existing use of capacity.
N/A
Recalculated with each rate study
(approximately once every 3 to 5 years).
N/A
Recalculated annually.
Same as collection capital
costs for existing capacity.
Notes
1. Applies to initial 20-year
period to pay for the new plant
only. After the plant has been
paid for, a treatment rehab and
replacement budget will need to
be established and costs split
similar to treatment O&M.
None.
1. The number of flow ERUs are
calculated based on the fomula
established for each type of user in the
ERU study (to be based on peak month
flow only).
2. ERU study to be updated periodically.
1. Collection impact fees will need
to be calculated for at least two
service areas. One for Moab only
facilities and one for joint facilities.
Only the joint facility fee will apply
to users outside the City and be
remitted to Moab.
1. ERU study to be updated
periodically.
Same as collection capital
costs for existing capacity.
** Each entity will be asked to contribute cash on hand for some minimum percentage of their share of existing treatment costs (i.e. all entities contribute at least xx% of their portion of costs). This money can come from impact fees (pending results of
legal review) or other reserves. The purpose of this contribution will be to minimize the amount of borrowing required by Moab City to construct the plant. If desired, each entity will also be allowed to contribute additional cash on hand to reduce their
total liability for this cost category. If additional cash on hand is contributed, the entity's portion of the remaining bond costs will be reduced correspondingly
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
septage is 40 to 50 times greater than that of typical domestic wastewater and has a
significant impact on the treatment process. To account for the full range of issues
affecting treatment costs, BC&A would propose defining treatment demand for each
entity (including septage) in terms of a treatment based equivalent resident unit
(treatment ERU). This process is discussed in detail in a memorandum that has
been included in the appendix of this report. Once the number of treatment ERUs
has been defined for each entity, this can be used to calculate the proportionate use
of existing capacity to be replaced.
o Cash vs. Bonding - This cost category represents a large one-time expenditure for
each entity. As a result, each entity will have some decisions to make regarding
how to pay for their portion. To minimize the amount of bonding the City has to
incur, each entity is planning to contribute cash on hand for a portion of their share
of existing treatment costs. Moab City and SVW&SID have tentatively agreed to
make upfront contributions in the amounts of $1,320,595 and $800,000,
respectively. This money could come from impact fee balances (pending results of
legal review) or other reserves. The remaining portion of each entity's cost liability
will be put into a bond and paid for over time through annual user charges. If
desired, each entity could be allowed to contribute additional cash on hand to
reduce their total liability for this cost category. If additional cash on hand is
contributed, the entity's portion of the remaining bond costs would be reduced
correspondingly.
o Rehabilitation and Replacement - It should be noted that this proposed cost share
is for the initial construction costs of the treatment plant only. Since the plant will
be brand new, this should represent the only required capital costs at the plant for
the next several years. As the plant ages, however, a treatment plant rehabilitation
and replacement budget will eventually need to be established. When this occurs,
costs can be divided as discussed for treatment 0&M (to be discussed later).
• Construction of Capacity for Future Users - The new treatment plant is expected to have
a peak month, average day capacity of 1.75 mgd. This means that when the plant is
completed, it is expected that there will be approximately 0.56 mgd of capacity available for
future users. It is not anticipated that any entities will be reserving this future capacity in
the treatment plant. Instead, future capacity will be distributed on a "first come, first
serve" basis to be paid for through impact fees. Since Moab City will maintain ownership of
the plant, it is expected that Moab City will be responsible to carry all debt associated with
future capacity. However, this also means that Moab City will receive all future impact fees
associated with treatment, regardless of where the fess are collected.
It should be noted that this concept applies to both individual lot owners as well as other
entities. For example, there are a large group of potential customers in San Juan County
that currently have sewer service through septic systems. There has been some discussion
of this group bringing their wastewater to Moab City. If this were to occur, Moab would
require an agreement with San Juan County that would include the payment of impact fees
sufficient to secure the capacity in the plant required to serve the new users.
Collection. As with treatment, collection system capital costs will also include two types of
capacity:
BOWEN COLLINS &ASSOCIATES
MOAB CITY 3
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
• Replacement of Existing Capacity - Sewer system collection pipelines have a finite
lifespan and eventually need to be replaced. Paying for these costs becomes the
responsibility of all who use capacity in the pipelines. It is proposed that these costs be
divided using the following principles:
o Flow Equivalency - BC&A would propose defining flow demand for each entity in
terms of a flow based equivalent resident unit (flow ERU). This process is
discussed in detail in a memorandum that has been included in the appendix of this
report. In short, the flow ERU would be based on peak month projected flow for
various types of users. This is in contrast to the alternative approach of defining
flow based on average annual volume. Peak month flow is deemed a fairer basis of
cost sharing than annual volume because the collection system must be sized based
on peak flows.
o Use of Facilities - While Moab customers generally benefit from the entire
collection system, the same is not true for other entities. SVW&SID only uses
capacity in a relatively small number of Moab's trunk lines to convey its wastewater
to the plant. To account for this difference in the use of Moab collection facilities, it
is proposed that the portion of use be calculated in two steps:
1. The percent usage of each pipe can be calculated based on proportional
flow ERUs conveyed in the pipe (e.g. if SVW&SID has 400 ERUs in a pipe
that is conveying 1,000 total ERUs, it would be assigned 40% of that pipe's
capacity).
2. Once the capacity used in each pipeline is calculated, the second step is to
calculate the contribution of each pipe to the overall system. This can be
done by looking at a weighted use of capacity for all pipes in the system. It
is proposed that the pipelines contribution to the system be weighted by
the length of each pipe times its flow capacity assuming State minimum
slope. Flow capacity is considered representative of the overall required
maintenance effort associated with each pipe. Using the State minimum
slope allows the system to be analyzed given limitations relative to actual
pipe slope data.
o Annual Costs - There are two possible approaches for determining collection
system replacement costs. One approach would be to look at each replacement
project individually and then determine the exact cost to each entity depending on
which pipelines are being replaced. In addition to being extremely complicated,
this approach has the added disadvantage of resulting in uneven costs for entities
outside of Moab City. In some years, these entities may have no costs as the City
focuses its efforts on replacement of pipelines serving only Moab City customers. In
other years costs, the outside entities could be hit with extremely high costs when a
major trunk line needed to be replaced. This creates problems for outside entities
on two fronts. First, it makes it very difficult to set consistent sewer rates. Second,
if the entity does not have enough money to fund a large project, it will be difficult
to bond for the project since it is owned and will be constructed by Moab City.
What appears to be a better approach is to charge a fixed amount to each outside
entity based on their expected average annual portion of collection system
replacement costs. In this case, Moab would collect the amount for each entity on a
consistent basis and then spend the money as needed. If bonding was required for
BOWEN COLLINS & ASSOCIATES
MOAB CITY 4
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
particularly large projects, it could all be handled by Moab internally. The proposed
budget amount would be initially set at 1% of the Moab system replacement value.
Each entity would pay a portion of this based on its percent use of the overall
system as discussed previously. The proposed budget equates to an average life
span of 100 year for sewer system collection components. This is likely longer than
can realistically be expected, but is a good rule of thumb for system renewal when
asset management data is limited.
o Periodic Recalculation - It is expected that the system value and each entity's use
of the system will slowly change over time. As a result, it will be important to
periodically re-examine each of these elements. It is proposed that these items be
recalculated with each rate study (assumed to be once every 3 to 5 years)
• Construction of Capacity for Future Users - Although not specifically identified at this
time, it is expected that some additional pipeline projects will need to be constructed for
the purpose of accommodating flow from future users. Similar to the treatment plant, it is
not anticipated that any entities will be reserving future capacity in these pipelines.
Instead, future capacity will be distributed on a "first come, first serve" basis to be paid for
through impact fees. Since Moab City will maintain ownership of the pipeline, it is expected
that Moab City will be responsible to carry all costs associated with future pipeline
capacity. However, this also means that Moab City will receive all future impact fees
associated with collection capacity inside the Moab City system, regardless of where the
impact fees are collected.
This does not mean that other entities cannot have their own collection impact fee.
However, their fee will need to be separate from that collected for capacity inside the Moab
collection system.
Operation and Maintenance Costs
The second major category of costs in the Moab City wastewater system is operation and
maintenance (0&M) costs. As with capital costs, operation and maintenance costs can be divided
into treatment costs and collection system costs.
Treatment. It is proposed that operation and maintenance costs at the treatment plant be divided
based on treatment equivalency as defined previously in the section regarding treatment capital
costs. The only difference between capital costs and 0&M costs is that 0&M costs will be
reexamined on an annual basis. Each year the total 0&M budget will be updated to reflect actual
costs and the cost share will be updated to reflect the growth for each entity during the previous
year.
It should be emphasized that, under this approach, all entities would be charged a fixed amount
each month based on the number and type of customers connected to the system. This is in
contrast to a variable approach in which the amount charged each month is based on metered flow
and strength. BC&A carefully considered both of these approaches. Ultimately charging a fixed
amount each month was selected for the recommended approach because of several advantages:
• Equitable Distribution of Costs - The basis of the fixed charge will be the treatment ERUs
per entity as discussed above. These ERUs represent the expected demand of customers
during peak demand periods. The great majority of sewer system costs are most closely
tied to peak capacities. Peak demands determine the sizing of all capital equipment which,
in turn, determines most maintenance costs. Peak demands also establish staffing costs, the
BOWEN COLLINS & ASSOCIATES
MOAB CITY 5
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
largest single expenditure associated with 0&M. In contrast, 0&M costs associated with the
volume of wastewater produced are comparatively small (power consumption and some
chemical costs). Given the two alternatives, charging based on peak demand is much more
reflective of the true cost of service for each entity.
• Revenue Stability - Fixed charges mean that revenue from outside entities will be
consistent from month to month. This will help Moab City to plan and manage its annual
budget. It also simplifies budgeting for outside entities since they can plan on a consistent
expense for treatment from month to month.
• Simplicity - Fixed charges are extremely easy to calculate and administer. All that is
necessary is to keep track of the number and type of new connections each year so that ERU
values for each entity can be updated annually. In contrast, charging variable rates requires
accurate flow metering that all parties agree on. Depending on how the rates are
structured, it may also require frequent sampling of wastewater from each entity to assign
strength values. These additional complications can add significantly to the bottom line
cost of operating the system.
Collection. It is proposed that operation and maintenance costs for the collection system be
divided in the same manner as defined previously in the section regarding collection replacement
capital costs for existing capacity.
CALCULATED COST SHARE BASED ON PROPOSED APPROACH
Based on the approach described above, BC&A has assembled a cost share model for the Moab City
wastewater system. The full, detailed model is contained in the appendix of this report. The
following sections highlight the major results of the model. It should be noted that the model
includes a year by year projection of shared system costs. This is a projection based on the best
available information regarding development patterns. The actual cost share between entities will
depend on actual system growth and may vary slightly from the results shown here.
Equivalent Residential Units
There are currently three types of users of the Moab City system:
• Moab City customers
• Customers from Spanish Valley Water & Sewer Improvement District (SVW&SID)
• Septage Haulers
Based on historic water use records, existing ERUs connected to the Moab sewer system (or ERUs
for which capacity has been committed, i.e. projects that have already paid an impact fee but are not
yet connected) are as summarized in Table 2.
BOWEN COLLINS & ASSOCIATES
MOAB CITY 6
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
Table 2
Existing ERUs
Flow
Treatment
Customer Category
Moab
SVW&SID
Septage
Moab
SVW&SID
Septage
Residential - Single Family
1,768
1,963
1,768
1,963
Residential - Multifamily
230
75
230
75
Overnight Accommodations
1,980
113
1,980
113
Commercial/Retail
603
94
603
94
Office
113
39
113
39
Restaurant
396
19
893
43
Schools
29
22
29
22
Gas Station/Convenience Store
88
93
88
93
RV/Campground
142
213
285
426
Other
118
76
38
118
76
1,372
Total
5,467
2,707
38
6,107
2,944
1,372
Percent of Total
66.6%
33.0%
0.5%
58.6%
28.2%
13.2%
As can be seen in the table, Moab is responsible for approximately 2/3ras of the flow to the
treatment with the other 1/3rd coming from SVW&SID. Septage is an insignificant contributor to
overall flow. However, when strength is considered, septage is using 13.2 percent of the total
treatment capacity.
In addition to these existing customers, the model includes the following expected future users of
the Moab City system:
• USU - USU is currently exploring plans for further development of facilities for its Extension
in Moab. Over the planning period (next 20 years), this is expected to add an average day
flow of 144,500 gallons per day (166,175 gpd average day, peak month) to the total flow
into Moab City. It is expected that USU will be a retail customer of SVW&SID and will add to
their total flow.
• San Juan County - Development in San Juan County is all currently on septic systems. At
some point in the future, it is expected that additional capacity will be desired and that all
development (both existing and future) will be brought to Moab's system. For the purpose
of this analysis, it has been assumed that San Juan will have approximately 265 flow ERUs
connecting to the system in 2020. If San Juan connects, it is expected that the County will be
a new wholesale customer (i.e. not a retail customer of either Moab or SVW&SID).
Based on the new customers described above and projected growth rates for existing customers,
projected ERUs to be connected to the Moab sewer system are as summarized in Table 3.
BOWEN COLLINS &ASSOCIATES
MOAB CITY 7
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
Table 3
Projected ERUs - 2035
Flow
Treatment
Year
Moab
SVW&SID*
Septage
San
Juan
Moab
SVW&SID*
Septage
San
Juan
2017
5,467
2,707
38
0
6,107
2,944
1,372
0
2022
5,774
3,259
47
277
6,450
3,590
1,687
301
2027
6,099
3,907
55
308
6,813
4,354
2,002
334
2032
6,442
4,588
64
342
7,196
5,152
2,316
372
2035
6,657
5,014
69
365
7,436
5,649
2,505
397
*Includes projected flows from USU Extension.
Use of Moab Wastewater Collection System
As discussed previously, customers outside of Moab City will only use a portion of the wastewater
collection system. Following the procedure discussed above, SVW&SID's current weighted use of
the Moab Collection System is summarized in Table 4.
Table 4
SVW&SID's Current Weighted Use of Moab's Collection System
Size (in)
Total
Length
(ft)
Weighted
Capacity*
(ft-cfs)
SVW&SID
Proportional
Use of
Capacity
SVW&SID
Weighted
Capacity*
Moab
Weighted
Capacity*
6
37,658
14,981
0.0%
-
14,981
8
99,656
76,368
1.3%
1,006
75,362
9
729
695
0.0%
-
695
10
11,071
12,869
7.1%
910
11,959
12
7,857
13,165
76.6%
10,090
3,075
15
3,601
9,032
14.1%
1,277
7,756
18
10,106
36,874
22.1%
8,139
28,735
21
1,125
5,653
0.0%
-
5,653
24
745
4,782
49.3%
2,359
2,423
30
1,050
10,401
35.0%
3,636
6,765
3 (Force Main)
2,536
871
0.0%
-
871
4 (Force Main)
827
505
0.0%
-
505
Total
176,960
186,197
27,417
158,780
SVW&SID Current Use of Collection System
14.7%
SVW&SID Current Portion of Total Flow
31.4%
SVW&SID Proportional Use of Collection System Capacity
46.9%
*Weighted capacity based on total length times the capacity of each pipeline at the State minimum slope.
Capacity for force mains based on velocity of 7 ft/sec.
As is summarized in the table, SVW&SID only uses 14.7 percent of the collection system capacity,
even though it accounts for 31.4 percent of the total flow. This means that SVW&SID's use of the
collection system is only 46.9 percent of its proportional contribution of flow.
BOWEN COLLINS & ASSOCIATES
MOAB CITY 8
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
Cost Share Model Results
Results from the cost share model are summarized in Tables 5 through 7. Tables 5 and 6 provide a
summary of the percent of cost associated with each entity over time for collection and treatment
costs, respectively. Table 7 provides the projected cost share for the new treatment plant assuming
completion of the plant in 2018.
Table 5
Projected Cost Share - Collection System Costs*
Year
Moab
SVW&SID**
Septage
San Juan
2017
84.5%
15.5%
0%
0%
2022
82.3%
16.3%
0%
1.4%
2027
80.9%
17.7%
0%
1.4%
2032
79.7%
18.8%
0%
1.4%
2035
79.2%
19.4%
0%
1.4%
*Projected future costs are estimates based on current growth nroiections.
Actual cost share will be recalculated as described in this memorandum based
on actual system growth and development.
**Includes projected flows from USU Extension.
Table 6
Projected Cost Share - Treatment Costs*
Year
Moab
SVW&SID**
Septage
San Juan
2017
58.6%
28.2%
13.2%
0%
2022
53.6%
29.8%
14.0%
2.5%
2027
50.4%
32.2%
14.8%
2.5%
2032
47.9%
34.3%
15.4%
2.5%
2035
46.5%
35.3%
15.7%
2.5%
*Projected future costs are estimates based on current growth nroiections.
Actual cost share will be recalculated as described in this memorandum based
on actual system growth and development.
**Includes projected flows from USU Extension.
Table 7
Projected Cost Share - Treatment Plant Construction Costs
Entity
Total Cost
Portion of Total
Moab
$6,243,364
38.25%
SVW&SID
$3,009,737
18.44%
Septage
$2,557,307
15.69%
San Juan
$0
0%
Future Growth
$4,510,188
27.63%
Total
$16,320,595
100%
As can be seen in the tables, the current model shows costs slowly shifting away from Moab City
and onto other users. This is the result of higher projected growth rates for development outside of
the City. However, as noted above, the values contained in these tables are only projections based
on estimated of future development patterns. The actual cost share between entities in future years
will depend on actual system growth and may vary slightly from the results show here. In future
BOWEN COLLINS & ASSOCIATES
MOAB CITY 9
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
years, it is expected that the projections in the rate model will be replaced with actual values for
each entity to more accurately calculate the appropriate cost share and corresponding rates.
Approximate Wastewater Rates
The primary focus of this memorandum has been the development of cost share calculations to
divide costs between the several entities. It does include the information to perform a
comprehensive rate study and calculate detail rates for each entity. However, based on information
provided by each entity regarding historic rates and annual revenues, it is possible to estimate
approximate monthly rates for each of the entities as shown in Tables 8. The monthly rates
estimated in Table 8 take into account the initial capital investment that each entity has agreed to
pay towards construction of the wastewater treatment plant and assumes securing a loan for the
remaining capital costs.
Table 8
Approximate Residential Future Wastewater Rates - Moab Portion of Bill Only
Year
Moab
($/month)
SVW&SID
($/month)
Septage
($/gallon)
Historic
$16.90
$7.70
$0.09
2020
$35.16
$14.10
$0.20
2025
$36.81
$14.43
$0.19
2030
$39.20
$15.09
$0.18
2035
$41.99
$16.00
$0.18
It should be emphasized that these costs are for the Moab City portion of each bill only. For Moab
residents, this represents their full sewer bill. For other entities, however, there will be additional
costs for the operation and maintenance of their individual collection systems.
In both of the tables, it is noted that the amount of increase from year to year is not consistent
between entities. There are even decreases in some cases. This is a result of the differing growth
rates between entities and their ratio of treatment plant costs to other costs. For example, in the
case of septage customers, all of their costs are associated with treatment and they have a higher
than average projected growth rate. As a result, the projected growth allows the initial
construction costs of the plant to be distributed over an increasing number of users over time. This
results in a small decrease in the cost per customer over time. Conversely, treatment costs in Moab
are a much smaller portion of total costs and it has the lowest expected growth rate. This means
that inflation associated with collection system and other costs overshadows any reduction in
treatment plant payments and the overall rate increases gradually over time.
CONCLUSIONS AND RECOMMENDATIONS
This memorandum provides a proposed approach to sharing costs in the Moab wastewater system,
including construction of a new treatment plant. It is recommended that Moab City review the
proposed approach with all potential stakeholders in the treatment project to collect input and
finalize the approach. This will become the basis for a final agreement between the various entities.
Specific items that should be reviewed and agreed upon should include:
1. Moab continued ownership of treatment plant
2. First come, first serve policy for future capacity
3. ERU calculation policy - Both flow and treatment based
BOWEN COLLINS & ASSOCIATES
MOAB CITY
10
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
4. Use of fixed monthly charges to each entity based on flow and treatment ERUs instead of
variable monthly charges based on volume and strength measurements
5. Final agreement on cash contributions toward initial treatment plant construction costs to
be contributed by each entity
6. How septage will fund its required portion of treatment plant construction costs (initial
payment vs. incorporated into future rates)
Once the cost share principles discussed in this memorandum are finalized and adopted, BC&A will
be able to calculate specific rates for Moab City customers in greater detail.
BOWEN COLLINS & ASSOCIATES
MOAB CITY
11
Appendix A
ERU Calculation Memorandum
Bowen Collins
36.., & Associates, Inc.
CONSULTING ENGINEERS
TECHNICAL MEMORANDUM # 1
TO: Rebecca Davidson
Moab City
COPIES: File
FROM: Keith Larson P.E.
Jeff Beckman P.E.
Bowen, Collins & Associates
154 East 14000 South
Draper, Utah 84020
DATE: September 21, 2016
PROJECT: Sewer Rate Study
SUBJECT: Residential Equivalent Study
INTRODUCTION
Bowen Collins & Associates (BC&A) has been retained by Moab City (City) to do a study on equivalent
residential units (ERUs) for the City. An ERU is the typical water use amount for a single family
residence measured in gallons per day or gallons per month. This represents the average flow and
strength of wastewater for a residential connection to the City.
The purpose of this study is to create a basis for the City to relate flow from larger non-residential
customers to the flow of an average residential connection or ERU. By defining the flow of all the
different customer types in terms of ERUs, the City will be able equally allocate the costs of service in
the sewer system to the various system users. This memorandum examines the basis of an ERU in
the City and proposes a method of ERU calculation for different customer types.
ERU DEFINITION
The definition of an ERU should be defined based on the average characteristics of a single family
residential connection. Based on water use records for 2016, the average residential connection had
indoor water use of approximately 4,400 gallons during the peak month of the year. Historically, the
City has used an expected domestic wastewater concentration of 300 mg/L when calculating
Biological Oxygen Demand (BOD) loading and 280 mg/L when calculating Total Suspended Solids
(TSS) loading.
Based on this information, the following definitions and equations are proposed to calculate the
number of ERUs for different customer types. To accurately reflect the impact of customers on both
collection and treatment facilities, ERUs will be defined in terms of both flow and strength. Fractional
ERU values are rounded up to the next whole number.
TECHNICAL MEMORANDUM #1 : RESIDENTIAL EQUIVALENT STUDY
ERU Definition Based on Flow
(1) 1 ERUflow = 4,400 gal/month
ERU Definition Based on BOD
(2) 1 ERUBOD = 300 mg/L x (8.345 x 10-61bs L/mg gal ) x 4,400 gal/month
1 ERUBOD = 11.0 lbs/month
ERU Definition Based on TSS
(3) 1 ERUTss = 280 mg/L x (8.345 x 10-61bs L/mg gal ) x 4,400 gal/month
1 ERUTss = 10.31bs/month
Equation to Calculate ERU Value Based on Flow
(4) # of ERUflow = Customer Flow gal/month
4,400 gal/month per RE
Equation to Calculate ERU Value Based on BOD
(5) # of ERUBOD = BODcon, mg/L x (8.345 x 10-6) x Cust. Flow gal/month
11.0 lbs/month per ERU
Equation to Calculate ERU Value Based on TSS
(6) # of ERUTss = TSS., mg/L x (8.345 x 10-6) x Customer Flow gal/month
10.31bs/month per ERU
Equation to Calculate Number of Treatment ERUs Based on Cost Weighted Average of Flow, BOD, &
TSS
(7) # of Treatment ERUwtAve = (ERUflow x 33.3%) + (ERUBOD x 33.3%) + (ERUTss x 33.3%)
The cost weighted average approach described above takes the estimated percentage spent by the
City on treatment based on total flow, BOD, and TSS and calculates a weighted ERU value. For this
study, costs have been divided evenly between the three categories'.
1 To develop a more refined estimate of actual costs would require a full cost -of -service analysis of the detailed design of
the new treatment plant and its subsequent operation costs. Since this data will not be available for several years, the costs
have been approximated as shown. These are believed to be relatively accurate estimates based on costs as observed at
other established plants. A cost analysis of the Central Valley Water Reclamation Facility in Salt Lake City, Utah calculated
costs at 30% flow, 31% BOD, and 39% TSS. A similar analysis of the Timpanogos Wastewater Treatment Plant in Pleasant
Grove, Utah calculated costs at 560/0 flow, 24% BOD, and 20% TSS. While costs will vary from plant to plant depending on
the treatment process used and the quality of wastewater being received, the estimate contained here seems reasonable in
the absence of additional data.
BOWEN COLLINS & ASSOCIATES
MOAB CITY 2
TECHNICAL MEMORANDUM #1 : RESIDENTIAL EQUIVALENT STUDY
CUSTOMER ERU CATEGORIES
Based on the City's current customer billing types, BC&A would propose ten different customer
categories for defining ERUs as identified in Table 1.
Table 1
Proposed ERU Customer Categories
Customer Category
Notes
Residential - Single Family
Includes typical single family residential along with trailers,
town homes, duplexes, and large multifamily (see below).
Residential - Multifamily
Includes all apartments and condos up to a maximum size of
1,500 square feet per unit. All larger multifamily to be
grouped with single family residential.
Overnight Accommodations
Any overnight accommodations with sewer service including
hotels, motels, and bed & breakfasts.
Commercial/Retail
Office
Restaurant
Any business whose primary function is to prepare and serve
food (including fast food).
Schools
Gas Station/Convenience Store
RV/Campground
Other
Any development that is not adequately represented by one
of the categories above. Could include medical, churches, car
washes, laundromats, etc.
ERU CATEGORY CALCULATIONS
For the proposed customer categories listed above, BC&A has developed a recommended definition
for both Flow ERUs and Treatment ERUs as summarized in Table 2. Definitions for Flow ERUs in this
table are based on historic flow data as available from 2016 water use records for Moab City
customers. Flow equivalency has been based on estimated peak month indoor water use as
approximated from April 2016 water use.
Because water quality data is not readily available for the various Moab City customer categories,
Treatment ERUs have been based on data collected as part of a detailed water quality study
completed by BC&A for Mt. Olympus Improvement District completed in 2012. Historical data used
to assemble the results are contained in Appendix A.
BOWEN COLLINS &ASSOCIATES
MOAB CITY 3
TECHNICAL MEMORANDUM #1 : RESIDENTIAL EQUIVALENT STUDY
Table 2
Proposed ERU Definitions by Customer Category
Customer Type
Flow Only Definition
1ERU =
Treatment Definition
1ERU =
Residential - Single Family
1 residence
1 residence
Residential - Multifamily
1.8 units
1.8 units
Overnight Accommodations
1.2 units
1.2 units
Commercial/Retail
6,500 ft2
6,500 ft2
Office
4,000 ft2
4,000 ft2
Restaurant
10.6 Seats
4.7 Seats
Schools
15 Students
15 Students
Gas Station/Convenience Store
3,600 ft2
3,600 ft2
RV/Campground
By Study
By Study
Other
By Study
By Study
It is recommended that the definitions proposed in Table 2 be used to calculate the number of Flow
and Treatment ERUs in the Moab, Spanish Valley Water & Sewer Improvement District, and other
systems. This can be accomplished as outlined in Equation (8).
Equation to Calculate Number of ERUs Based on ERU Definition
(8) Number of ERUs = Customer Facility Size (ft2, # seats, etc.)
ERU Definition
BOWEN COLLINS & ASSOCIATES
MOAB CITY 4
Moab Historical Water Use by Customer Category (2016)
Residential - Single Family
1 Residential
2 Residential
Trailer Courts
Trailer Court/House
Trailer Court/2 Apts/House
County Residential
Total
Connections
1365
11
12
1
2
12
1403
Units
1368
18
349
3
22
12
1772
Quantity
(Peak Month)
- kgals
6019.2
79.2
1490.5
30.0
108.0
52.8
7779.741787
Peak Month Indoor
Water consumption
kgals
4.40
4.40
4.27
10.00
4.91
4.40
4.39
Peak Month Indoor
Water consumption
gpd
144.7
144.7
140.4
328.8
161.4
144.7
144.3
ERUs
1368.0
18.0
338.8
6.8
24.5
12.0
1768.1
Residential - Multifamily
House/Apartments
8
16
39.1
2.4
80.4
8.9
Apartments
77
398
972.9
2.4
80.4
221.1
Total
85
414
1012
2.4
80.4
230.0
Overnight Accommodations
Hotel/Motel/B&B
64
2393.1
8774.9
3.7
120.5
1994.3
Bed & Breakfast 52.94
2
2
2.0
1.0
32.9
0.5
Restaurant Correction
-5
-5
-64.9
" ^
"" '
Total
61
2390.142857
8711.957143
3.6
119.8
1980.0
Commercial/Retail
Business/House
6
11
104.0
9.5
310.8
23.6
Business
138
138
3277.2
23.7
780.8
744.8
Business - 4 month water usage
6
7
22.3
3.2
104.6
5.1
County Business
1
1
6.0
6.0
197.3
1.4
2 Commercial
1
2
2.0
1.0
32.9
0.5
Restaurant Correction
-9
-9
-132.2
-14.7
-482.9
-30.0
RV/Campground Correction
-3
-3
-626.1
-208.7
-6861.4
-142.3
Total
140
147
2653.209368
-180.0
-5918.0
603.0
Office
Office Space Rental
24
24
556.0
23.2
761.6
126.4
Restaurant Correction
-4
-4
-57.8
-
-2
-13.1
Total
20
20
498.2
24.9
819.0
113.2
Restaurant
Restaurant/Bar
23
23
1461.0
63.5
2088.4
332.0
Restaurant/Bar Billed Under Other Categories
20
20
281.3
14.1
462.4
63.9
Total
43
43
1742.3
40.5
1332.1
396.0
Schools
School
7
7
97.0
13.9
455.6
22.0
School - 4 month winter usage
6
6
31.0
5.2
169.9
7.0
Total
13
13
128
9.8
323.7
29.1
Gas Station/Convenience Store
Gas Station/Convenience Store
6
6
411.4
68.6
2254.4
93.5
Restaurant Correction
-2
-2
-26.4
-13.2
-434.0
-6.0
Total
4
4
385.0
96.3
3164.6
87.5
RV/Campground
RV/Campground Billed Other Categories
3
3
626.1
208.7
6861.4
142.3
Total
3
3
626.1
208.7
6861.4
142.3
Other
Church
1
1
1.0
1.0
32.9
0.2
Church - 4 months Winter Usage
8
8
57.0
7.1
234.2
13.0
Govt - 4 month winter usage
3
3
10.0
3.3
109.6
2.3
Medical Office
4
4
21.0
5.3
172.6
4.8
Hospital
3
3
431.0
143.7
4723.3
98.0
Total
19
19
520
27.4
899.8
118.2
Totals
Residential - Single Family
Other
Total
1403
1772
7779.741787
4.4
144.3
1768.1
388
3053.142857
16276.79508
5.3
175.3
3699.3
1791
4825.142857
24056.53687
5.0
163.9
5467.4
SVW&SID Historical Water Use by Customer Category (2016, including commited but not yet connected)
Residential - Single Family
Connections
Units
Quantity
(Peak Month)
- kgals
Peak Month Indoor
Water consumption
kgals
Peak Month Indoor
Water consumption
gpd
ERUs
Residential
1851
1851
8144.4
4.4
144.7
1851.0
Trailer Court
8
112.0
493
4.4
144.7
112.0
Total
1859
1963.0
8637.4
4.4
144.7
1963.0
Residential - Multifamily
All
16
135
330
2.4
80.4
75.0
Total
16
135
330
2.4
80.4
75.0
Overnight Accommodations
All
6
135.5
497
3.7
120.5
113.0
Total
6
135.5
497
3.7
120.5
113.0
Commercial/Retail
All
60
60
414.25
6.9
227.0
94.1
Total
60
60
414.25
6.9
227.0
94.1
Office
All
17
17
170.4
10.0
329.5
38.7
Total
17
17
170.4
10.0
329.5
38.7
Restaurant
All
3
3
83
27.7
909.6
18.9
Total
3
3
83
27.7
909.6
18.9
Schools
All
2
2
95
47.5
1561.6
21.6
Total
2
2
95
47.5
1561.6
21.6
Gas Station/Convenience Store
All
3
3
410
136.7
4493.2
93.2
Total
3
3
410
136.7
4493.2
93.2
RV/Campground
All
7
430
938
2.2
71.7
213.2
Total
7
430
938
2.2
71.7
213.2
Other
All
25
25
334.6
13.4
440.0
76.0
Total
25
25
334.6
13.4
440.0
76.0
Totals
Residential - Single Family
Other
Total Connections
1859
1963.045455
8637.4
4.4
144.7
1963.0
139
810.5454545
3272.25
4.0
132.7
743.7
1998
2773.590909
11909.65
4.3
141.2
2706.7
Appendix B
Cost Share Model
Moab City Wastewater System - Cost Share Model
Projected Year
FYE 2015
FYE
2016
FYE 2017
FYE 2018
FYE 2019
FYE 2020
FYE 2021
FYE 2022
FYE 2023
FYE 2024
FYE 2025
FYE 2026
FYE 2027
FYE 2028
FYE 2029
FYE 2030
FYE 2031
FYE 2032
FYE 2033
FYE 2034
FYE 2035
Moab Sewer Flows (MGD)
0.77
0.78
0.79
0.80
0.81
0.82
0.83
0.84
0.85
0.85
0.86
0.87
0.88
0.89
0.90
0.91
0.92
0.93
0.94
0.95
0.96
GWSSA Sewer Flows (MGD)
0.38
0.38
0.39
0.40
0.41
0.42
0.42
0.43
0.44
0.45
0.46
0.47
0.48
0.49
0.50
0.51
0.52
0.53
0.54
0.55
0.56
USU Sewer Flows (MGD)
0.00
0.00
0.00
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
0.11
0.12
0.13
0.14
0.15
0.16
0.166175
San Juan Sewer Flows (MGD)
0.00
0.00
0.00
0.00
0.00
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
Septage Sewer Flows (MGD)
0.004992
0.005244
0.005496
0.005748
0.006000
0.006252
0.006504
0.006756
0.007009
0.007261
0.007513
0.007765
0.008017
0.008269
0.008521
0.008773
0.009025
0.009277
0.009529
0.009781
0.010033
Committed Sewer Flows - Peak Month, Ave. Day ill
1.16
1.17
1.19
1.21
1.23
1.30
1.33
1.35
1.38
1.41
1.44
1.47
1.50
1.53
1.56
1.59
1.62
1.66
1.69
1.72
1.75
Moab Flow ERUs
5,349
5,408
5,467
5,527
5,588
5,649
5,712
5,774
5,838
5,902
5,967
6,033
6,099
6,166
6,234
6,303
6,372
6,442
6,513
6,584
6,657
GWSSA Flow ERUs
2,602
2,654
2,707
2,761
2,816
2,873
2,930
2,989
3,049
3,109
3,172
3,235
3,300
3,366
3,433
3,502
3,572
3,643
3,716
3,790
3,866
USU Flow ERUs
0
0
0
0
68
135
203
270
338
405
473
540
608
675
743
810
878
945
1,013
1,080
1,148
San Juan Flow ERUs
0
0
0
0
0
265
271
277
283
289
295
301
308
314
321
328
335
342
350
357
365
Septage Flow ERUs
34
36
38
40
41
43
45
47
48
50
52
54
55
57
59
61
62
64
66
68
69
Total Flow ERUs
7,985
8,098
8,212
8,328
8,513
8,966
9,160
9,357
9,555
9,756
9,958
10,163
10,370
10,579
10,790
11,003
11,219
11,437
11,657
11,880
12,105
Moab Treatment ERUs
5,975
6,041
6,107
6,174
6,242
6,311
6,380
6,450
6,521
6,593
6,666
6,739
6,813
6,888
6,964
7,040
7,118
7,196
7,275
7,355
7,436
GWSSA Treatment ERUs
2,830
2,886
2,944
3,003
3,063
3,124
3,187
3,250
3,315
3,382
3,449
3,518
3,589
3,660
3,734
3,808
3,885
3,962
4,041
4,122
4,205
USU Treatment ERUs
0
0
0
0
85
170
255
340
425
510
595
680
765
850
935
1,020
1,105
1,190
1,275
1,360
1,445
San Juan Treatment ERUs
0
0
0
0
0
288
295
301
307
314
321
328
335
342
349
357
364
372
380
388
397
Septage Treatment ERUs
1,246
1,309
1,372
1,435
1,498
1,561
1,624
1,687
1,750
1,813
1,876
1,939
2,002
2,065
2,127
2,190
2,253
2,316
2,379
2,442
2,505
Total Treatment ERUs
10,051
10,236
10,423
10,612
10,888
11,454
11,740
12,029
12,319
12,611
12,906
13,203
13,503
13,805
14,109
14,416
14,725
15,037
15,351
15,668
15,987
Moab Growth Rate
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
1.1%
GWSSA Growth Rate
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
USU Growth Rate
-
NA
NA
NA
#DIV/0!
100.0%
50.0%
33.3%
25.0%
20.0%
16.7%
14.3%
12.5%
11.1%
10.0%
9.1%
8.3%
7.7%
7.1%
6.7%
6.3%
San Juan Growth Rate
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
Septage Growth Rate
5.0%
4.8%
4.6%
4.4%
4.2%
4.0%
3.9%
3.7%
3.6%
3.5%
3.4%
3.2%
3.1%
3.0%
3.0%
2.9%
2.8%
2.7%
2.6%
2.6%
Overall % Growth from Previous Year
1.41%
1.41%
1.41%
2.22%
5.31%
2.17%
2.15%
2.12%
2.10%
2.08%
2.06%
2.03%
2.02%
2.00%
1.98%
1.96%
1.94%
1.93%
1.91%
1.90%
Expenditures
O&M - Collection
$210,000
$217,781
$401,000
$415,863
$432,965
$457,454
$476,141
$495,532
$515,654
$536,534
$558,201
$580,683
$604,011
$628,217
$653,333
$679,393
$706,433
$734,489
$763,598
$793,801
$825,137
O&M - Treatment
$315,000
$327,353
$583,000
$720,775
$751,768
$793,870
$827,597
$862,581
$898,869
$936,509
$975,550
$1,016,045
$1,058,048
$1,101,615
$1,146,802
$1,193,670
$1,242,281
$1,292,699
$1,344,991
$1,399,225
$1,455,473
Capital Expenditures - Collection (R&R)
$492,325
$512,673
$450,000
$463,500
$477,405
$491,727
$506,479
$521,673
$537,324
$553,443
$570,047
$587,148
$604,762
$622,905
$641,592
$660,840
$680,665
$701,085
$722,118
$743,781
$766,095
Capital Expenditures - Collection Expansion
$0
$0
$83,891
$85,067
$122,043
$263,813
$127,503
$128,818
$130,153
$131,509
$132,886
$134,285
$135,707
$137,150
$138,617
$140,106
$141,620
$143,157
$144,719
$146,305
$147,917
Capital Expenditures - Treatment
$0
$0
$14,200,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Debt Service
$0
$0
($14,200,000)
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
$798,834
Total Expenditures
$1,017,325
$1,057,807
$1,517,891
$2,484,039
$2,583,015
$2,805,698
$2,736,554
$2,807,438
$2,880,834
$2,956,829
$3,035,518
$3,116,996
$3,201,362
$3,288,721
$3,379,178
$3,472,844
$3,569,833
$3,670,264
$3,774,260
$3,881,947
$3,993,457
Allocation of Collection Costs
Moab
84.7%
84.6%
84.5%
84.5%
84.1%
82.9%
82.6%
82.3%
82.0%
81.7%
81.5%
81.2%
80.9%
80.7%
80.5%
80.2%
80.0%
79.8%
79.6%
79.4%
79.2%
GWSSA (Including USU)
15.3%
15.4%
15.5%
15.5%
15.9%
15.7%
16.0%
16.3%
16.6%
16.9%
17.2%
17.4%
17.7%
17.9%
18.1%
18.4%
18.6%
18.8%
19.0%
19.2%
19.4%
San Juan
0.0%
0.0%
0.0%
0.0%
0.0%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
1.4%
Septage
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%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Total
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Allocation of Treatment Costs
Moab
59.4%
59.0%
58.6%
58.2%
57.3%
55.1%
54.3%
53.6%
52.9%
52.3%
51.6%
51.0%
50.5%
49.9%
49.4%
48.8%
48.3%
47.9%
47.4%
46.9%
46.5%
GWSSA (Including USU)
28.2%
28.2%
28.2%
28.3%
28.9%
28.8%
29.3%
29.8%
30.4%
30.9%
31.3%
31.8%
32.2%
32.7%
33.1%
33.5%
33.9%
34.3%
34.6%
35.0%
35.3%
San Juan
0.0%
0.0%
0.0%
0.0%
0.0%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
Septage
12.4%
12.8%
13.2%
13.5%
13.8%
13.6%
13.8%
14.0%
14.2%
14.4%
14.5%
14.7%
14.8%
15.0%
15.1%
15.2%
15.3%
15.4%
15.5%
15.6%
15.7%
Total Costs
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Page 1 of 3
Moab City Wastewater System - Cost Share Model
Projected Year
FYE 2015
FYE 2016
FYE 2017
FYE 2018
FYE 2019
FYE 2020
FYE 2021
FYE 2022
FYE 2023
FYE 2024
FYE 2025
FYE 2026
FYE 2027
FYE 2028
FYE 2029
FYE 2030
FYE 2031
FYE 2032
FYE 2033
FYE 2034
FYE 2035
Moab Expenditures
O&M - Collection
$177,926
$184,325
$339,040
$351,234
$364,216
$379,177
$393,213
$407,764
$422,849
$438,487
$454,699
$471,503
$488,924
$506,981
$525,699
$545,102
$565,213
$586,060
$607,667
$630,064
$653,278
O&M - Treatment
$187,254
$193,177
$341,580
$419,345
$430,983
$437,379
$449,746
$462,561
$475,837
$489,589
$503,831
$518,579
$533,850
$549,660
$566,027
$582,968
$600,503
$618,651
$637,433
$656,869
$676,981
Capital Expenditures - Collection (R&R)
$417,130
$433,915
$380,469
$391,468
$401,600
$407,585
$418,267
$429,275
$440,619
$452,306
$464,348
$476,753
$489,532
$502,695
$516,253
$530,216
$544,597
$559,407
$574,658
$590,362
$606,533
Capital Expenditures - Collection Expansion
$0
$0
$83,891
$85,067
$122,043
$263,813
$127,503
$128,818
$130,153
$131,509
$132,886
$134,285
$135,707
$137,150
$138,617
$140,106
$141,620
$143,157
$144,719
$146,305
$147,917
Capital Expenditures - Treatment
$0
$0
$4,922,769
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Debt Service
$0
$0
($4,922,769)
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
$299,038
Total Moab Expenditures
$782,309
$811,417
$1,144,979
$1,546,151
$1,617,881
$1,786,992
$1,687,767
$1,727,456
$1,768,496
$1,810,930
$1,854,802
$1,900,160
$1,947,051
$1,995,525
$2,045,633
$2,097,430
$2,150,971
$2,206,313
$2,263,515
$2,322,639
$2,383,748
GWSSA Expenditures
O&M - Collection
$32,074
$33,456
$61,960
$64,629
$68,748
$71,934
$76,328
$80,899
$85,655
$90,604
$95,753
$101,111
$106,686
$112,486
$118,521
$124,799
$131,332
$138,128
$145,199
$152,554
$160,207
O&M - Treatment
$88,683
$92,303
$164,665
$203,953
$217,347
$228,308
$242,605
$257,467
$272,920
$288,986
$305,693
$323,067
$341,135
$359,925
$379,468
$399,793
$420,934
$442,922
$465,792
$489,581
$514,323
Capital Expenditures - Collection (R&R)
$75,195
$78,758
$69,531
$72,032
$75,805
$77,324
$81,191
$85,166
$89,254
$93,459
$97,785
$102,237
$106,818
$111,535
$116,391
$121,391
$126,542
$131,846
$137,311
$142,942
$148,743
Capital Expenditures- Collection Expansion
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Capital Expenditures - Treatment
$0
$0
$2,209,737
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Debt Service
$0
$0
($2,209,737)
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
$102,207
Total GWSSA Expenditures
$195,953
$204,518
$296,157
$442,821
$464,107
$479,774
$502,331
$525,740
$550,036
$575,257
$601,439
$628,622
$656,846
$686,153
$716,587
$748,191
$781,014
$815,104
$850,510
$887,284
$925,480
San Juan Expenditures
O&M - Collection
$0
$0
$0
$0
$0
$6,343
$6,600
$6,869
$7,150
$7,443
$7,749
$8,068
$8,402
$8,749
$9,113
$9,492
$9,888
$10,301
$10,732
$11,182
$11,653
O&M - Treatment
$0
$0
$0
$0
$0
$19,990
$20,768
$21,581
$22,430
$23,317
$24,244
$25,212
$26,223
$27,279
$28,382
$29,534
$30,737
$31,993
$33,306
$34,676
$36,108
Capital Expenditures - Collection (R&R)
$0
$0
$0
$0
$0
$6,818
$7,021
$7,232
$7,451
$7,678
$7,913
$8,158
$8,412
$8,675
$8,949
$9,233
$9,527
$9,832
$10,149
$10,478
$10,819
Capital Expenditures- Collection Expansion
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Capital Expenditures - Treatment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Debt Service
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total San Juan Expenditures
$0
$0
$0
$0
$0
$33,151
$34,390
$35,682
$37,031
$38,438
$39,906
$41,438
$43,036
$44,704
$46,443
$48,258
$50,151
$52,126
$54,187
$56,337
$58,579
• •,157
$44 ,:
$512,925
$50,011111..1
$641,345
11670,060I
Septage Expenditures
O&M - Collection
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
O&M - Treatment
$39,063
$41,873
$76,755
$97,478
$103,438
$108,193
$114,478
$120,972
$127,682
$134,616
$141,782
$149,188
$156,841
$164,751
$172,926
$181,376
$190,108
$199,133
$208,460
$218,099
$228,061
Capital Expenditures - Collection (R&R)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Capital Expenditures- Collection Expansion
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Capital Expenditures - Treatment
$0
$0
$2,557,307
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Debt Service
$0
$0
($2,557,307)
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
$143,864
Total Septage Expenditures
$39,063
$41,873
$76,755
$241,341
$247,302
$252,057
$258,342
$264,836
$271,546
$278,480
$285,646
$293,051
$300,705
$308,615
$316,790
$325,239
$333,972
$342,996
$352,324
$361,963
$371,925
Future Growth Expenditures
O&M - Collection
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
O&M - Treatment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Capital Expenditures - Collection (R&R)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Capital Expenditures- Collection Expansion
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Capital Expenditures - Treatment
$0
$0
$4,510,188
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Debt Service
$0
$0
($4,510,188)
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
Total Future Growth Expenditures
$0
$0
$0
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
Check: Expenditures = Total?
$0
$0
$0
$0
$0
($0)
$0
$0
($0)
$0
$0
($0)
($0)
$0
$0
$0
$0
$0
$0
$0
$0
Impact Fees (Moab)
Income - Collection
$ -
$ -
$ 83,891
$ 85,067
$ 122,043
$ 263,813
$ 127,503
$ 128,818
$ 130,153
$ 131,509
$ 132,886
$ 134,285
$ 135,707
$ 137,150
$ 138,617
$ 140,106
$ 141,620
$ 143,157
$ 144,719
$ 146,305
$ 147,917
Income -Treatment
$ 37,864
$ 37,864
$ 104,678
$ 106,427
$ 205,960
$ 539,535
$ 216,737
$ 218,767
$ 220,834
$ 222,938
$ 225,081
$ 227,263
$ 229,485
$ 231,747
$ 234,050
$ 236,396
$ 238,784
$ 241,216
$ 243,693
$ 246,214
$ 248,782
Expenditures -Collection
$0
$0
$ 83,891
$ 85,067
$ 122,043
$ 263,813
$ 127,503
$ 128,818
$ 130,153
$ 131,509
$ 132,886
$ 134,285
$ 135,707
$ 137,150
$ 138,617
$ 140,106
$ 141,620
$ 143,157
$ 144,719
$ 146,305
$ 147,917
Expenditures - Treatment
$0
$0
$0
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
$253,725
Net Impact Fees
$ -
$ -
$ 104,678
$ (147,297)
$ (47,765)
$ 285,810
$ (36,988)
$ (34,958)
$ (32,891)
$ (30,786)
$ (28,644)
$ (26,462)
$ (24,240)
$ (21,978)
$ (19,674)
$ (17,329)
$ (14,941)
$ (12,509)
$ (10,032)
$ (7,510)
$ (4,942)
Page 2 of 3
Moab City Wastewater System - Cost Share Model
Projected Year
FYE 2015 FYE 2016 FYE 2017 FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FYE 2030 FYE 2031 FYE 2032 FYE 2033 FYE 2034 FYE 2035
Cost Per ERU
Moab
O&M - Collection
$33.27
$34.09
$62.02
$63.55
$65.18
$67.12
$68.85
$70.62
$72.43
$74.29
$76.20
$78.16
$80.16
$82.22
$84.33
$86.49
$88.70
$90.98
$93.30
$95.69
$98.14
O&M - Treatment
$31.34
$31.98
$55.93
$67.92
$69.04
$69.31
$70.49
$71.71
$72.97
$74.26
$75.59
$76.95
$78.36
$79.80
$81.28
$82.80
$84.37
$85.97
$87.62
$89.31
$91.04
Capital Expenditures - Collection (R&R)
$77.99
$80.24
$69.59
$70.83
$71.87
$72.15
$73.23
$74.34
$75.48
$76.63
$77.82
$79.03
$80.26
$81.53
$82.81
$84.13
$85.47
$86.84
$88.24
$89.66
$91.11
Capital Expenditures - Collection Expansion
$0.00
$0.00
$15.34
$15.39
$21.84
$46.70
$22.32
$22.31
$22.29
$22.28
$22.27
$22.26
$22.25
$22.24
$22.24
$22.23
$22.23
$22.22
$22.22
$22.22
$22.22
Capital Expenditures - Treatment
$0.00
$0.00
$806.09
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Debt Service
$0.00
$0.00
($806.09)
$48.43
$47.91
$47.39
$46.87
$46.36
$45.86
$45.36
$44.86
$44.38
$43.89
$43.41
$42.94
$42.48
$42.01
$41.56
$41.10
$40.66
$40.21
Net Impact Fees
$0.00
$0.00
($17.14)
$23.86
$7.65
($45.29)
$5.80
$5.42
$5.04
$4.67
$4.30
$3.93
$3.56
$3.19
$2.83
$2.46
$2.10
$1.74
$1.38
$1.02
$0.66
Total Moab Expenditures
$143
$146
$186
$290
$283
$257
$288
$291
$294
$297
$301
$305
$308
$312
$316
$321
$325
$329
$334
$339
$343
GWSSA
O&M - Collection
$12.33
$12.61
$22.89
$23.41
$23.84
$23.92
$24.36
$24.82
$25.30
$25.78
$26.27
$26.78
$27.30
$27.84
$28.38
$28.94
$29.52
$30.10
$30.70
$31.32
$31.95
O&M - Treatment
$31.34
$31.98
$55.93
$67.92
$69.04
$69.31
$70.49
$71.71
$72.97
$74.26
$75.59
$76.95
$78.36
$79.80
$81.28
$82.80
$84.37
$85.97
$87.62
$89.31
$91.04
Capital Expenditures - Collection (R&R)
$28.90
$29.68
$25.69
$26.09
$26.29
$25.71
$25.92
$26.13
$26.36
$26.59
$26.83
$27.08
$27.34
$27.60
$27.87
$28.15
$28.44
$28.73
$29.04
$29.35
$29.67
Capital Expenditures - Collection Expansion
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Capital Expenditures - Treatment
$0.00
$0.00
$750.59
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Debt Service
$0.00
$0.00
($750.59)
$34.04
$32.47
$31.03
$29.70
$28.47
$27.33
$26.26
$25.27
$24.35
$23.48
$22.66
$21.89
$21.17
$20.49
$19.84
$19.23
$18.64
$18.09
Total GWSSA Expenditures
$73
$74
$105
$151
$152
$150
$150
$151
$152
$153
$154
$155
$156
$158
$159
$161
$163
$165
$167
$169
$171
San Juan
O&M - Collection
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
$23.92
$24.36
$24.82
$25.30
$25.78
$26.27
$26.78
$27.30
$27.84
$28.38
$28.94
$29.52
$30.10
$30.70
$31.32
$31.95
O&M - Treatment
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
$69.31
$70.49
$71.71
$72.97
$74.26
$75.59
$76.95
$78.36
$79.80
$81.28
$82.80
$84.37
$85.97
$87.62
$89.31
$91.04
Capital Expenditures - Collection (R&R)
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/01
#DIV/0!
$25.71
$25.92
$26.13
$26.36
$26.59
$26.83
$27.08
$27.34
$27.60
$27.87
$28.15
$28.44
$28.73
$29.04
$29.35
$29.67
Capital Expenditures - Collection Expansion
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Capital Expenditures- Treatment
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/01
#DIV/0!
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Debt Service
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total San Juan Expenditures
#13I1//01
#DI11/01
#13I1//01
#DIV/01
#13I11/01
$119
$121
$123
$125
$127
$129
$131
$133
$135
$138
$140
$142
$145
$147
$150
$153
Septage
O&M - Collection
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
O&M - Treatment
$31.34
$31.98
$55.93
$67.92
$69.04
$69.31
$70.49
$71.71
$72.97
$74.26
$75.59
$76.95
$78.36
$79.80
$81.28
$82.80
$84.37
$85.97
$87.62
$89.31
$91.04
Capital Expenditures - Collection (R&R)
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Capital Expenditures - Collection Expansion
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Capital Expenditures - Treatment
$0.00
$0.00
$1,863.56
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Debt Service
$0.00
$0.00
($1,863.56)
$100.24
$96.03
$92.16
$88.59
$85.28
$82.21
$79.36
$76.70
$74.21
$71.87
$69.68
$67.62
$65.68
$63.84
$62.11
$60.47
$58.91
$57.43
Total Septage Expenditures
$31
$32
$56
$168
$165
$161
$159
$157
$155
$154
$152
$151
$150
$149
$149
$148
$148
$148
$148
$148
$148
Cost Per ERU/month
Moab
$ 11.88
$ 12.19
$ 15.48
$ 24.16
$ 23.62
$ 21.45
$ 23.96
$ 24.23
$ 24.51
$ 24.79
$ 25.09
$ 25.39
$ 25.71
$ 26.03
$ 26.37
$ 26.72
$ 27.07
$ 27.44
$ 27.82
$ 28.21
$ 28.62
GWSSA
$ 6.05
$ 6.19
$ 8.71
$ 12.62
$ 12.64
$ 12.50
$ 12.54
$ 12.59
$ 12.66
$ 12.74
$ 12.83
$ 12.93
$ 13.04
$ 13.16
$ 13.29
$ 13.42
$ 13.57
$ 13.72
$ 13.88
$ 14.05
$ 14.23
San Juan
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
$ 9.91
$ 10.06
$ 10.22
$ 10.39
$ 10.55
$ 10.72
$ 10.90
$ 11.08
$ 11.27
$ 11.46
$ 11.66
$ 11.86
$ 12.07
$ 12.28
$ 12.50
$ 12.72
Septage Cost Per Gallon
Septage
$ 0.033
$ 0.034
$ 0.060
$ 0.180
$ 0.202
$ 0.197
$ 0.194
$ 0.191
$ 0.188
$ 0.186
$ 0.183
$ 0.182
$ 0.180
$ 0.179
$ 0.177
$ 0.176
$ 0.176
$ 0.175
$ 0.175
$ 0.174
$ 0.174
Average Cost Per Resident/Month - Note: These are approximate values only based on historic report of average residential costs. Actual rates will be calculated as part of the detailed rate study.
Moab
$17.43
$ 17.89
$ 22.71
$ 35.46
$ 34.66
$ 31.47
$ 35.16
$ 35.55
$ 35.96
$ 36.37
$ 36.81
$ 37.26
$ 37.72
$ 38.20
$ 38.69
$ 39.20
$ 39.72
$ 40.26
$ 40.82
$ 41.40
$ 41.99
GWSSA
$6.80
$ 6.96
$ 9.79
$ 14.19
$ 14.21
$ 14.05
$ 14.10
$ 14.16
$ 14.24
$ 14.33
$ 14.43
$ 14.54
$ 14.66
$ 14.80
$ 14.94
$ 15.09
$ 15.26
$ 15.43
$ 15.61
$ 15.80
$ 16.00
Page 3 of 3
APPENDIX B
PROJECTED NON -RATE REVENUE
AND REVENUE REQUIREMENTS
Table B1
Moab City - Sewer Rate Study
Non -Rate Revenue (Including Impact Fees)
Assumed Inflation Rate = 3.0%
Item
Projected
FYE 2017
Projected
FYE 2018
Projected
FYE 2019
Projected
FYE 2020
Projected
FYE 2021
Projected
FYE 2022
Operations Non -Rate Revenue
GWSSA Sewer Sales
$296,157
$442,821
$464,107
$512,925
$536,720
$561,422
Special Services
$1,500
$1,562
$1,626
$1,692
$1,762
$1,834
Septage Sales
$76,755
$241,341
$247,302
$252,057
$258,342
$264,836
Sewer Connections
$8,000
$8,328
$8,669
$9,025
$9,395
$9,780
Total Operations Non -Rate Revenue
$382,412
$694,052
$721,704
$775,699
$806,219
$837,871
Non -Operations Non -Rate Revenue
Impact Fees
$188,569
$191,494
$328,003
$402,869
$410,987
$414,332
Finance Charges & Other Income
$22,400
$23,318
$24,274
$25,270
$26,306
$27,384
Total Non -Operations Non -Rate Revenue
$210,969
$214,813
$352,278
$428,138
$437,293
$441,716
Total Non -Rate Revenue
$593,381
$908,865
$1,073,982
$1,203,837
$1,243,511
$1,279,587
Table B2
Moab City - Sewer Rate Study
Revenue Requirements
Cash Basis
Item
Projected
FYE 2017
Projected
FYE 2018
Projected
FYE 2019
Projected
FYE 2020
Projected
FYE 2021
Projected
FYE 2022
Sewer Treatment Expenses
General
$190,000
$196,745
$203,729
$210,962
$218,451
$226,206
Salaries & Wages
$138,579
$193,499
$200,368
$207,481
$214,846
$222,473
Employee Benefits
$104,702
$123,419
$127,800
$132,337
$137,035
$141,900
Overtime
$8,000
$8,284
$8,578
$8,883
$9,198
$9,524
Subscriptions & Memberships
$4,600
$4,763
$4,932
$5,107
$5,289
$5,477
Travel
$2,500
$2,589
$2,681
$2,776
$2,874
$2,976
Office Expenses & Supplies
$2,000
$2,071
$2,145
$2,221
$2,299
$2,381
Equipment Supplies & Maintenance
$50,500
$52,293
$54,149
$56,071
$58,062
$60,123
Building Supplies & Maintenance
$5,000
$5,178
$5,361
$5,552
$5,749
$5,953
Utilities & Telephone
$57,700
$109,748
$113,644
$117,679
$121,856
$126,182
Equipment & Property Rental
$2,500
$2,589
$2,681
$2,776
$2,874
$2,976
Fuel
$12,000
$12,426
$12,867
$13,324
$13,797
$14,287
Shipping/Freight
$5,000
$5,178
$5,361
$5,552
$5,749
$5,953
Sewer Collections Expenses
Capital Lease
$21,600
$22,367
$23,161
$23,983
$24,834
$25,716
Salaries & Wages
$139,798
$144,761
$149,900
$155,221
$160,732
$166,438
Employee Benefits
$95,910
$99,315
$102,840
$106,491
$110,272
$114,186
Overtime
$6,000
$6,213
$6,434
$6,662
$6,898
$7,143
Subscriptions & Memberships
$1,560
$1,615
$1,673
$1,732
$1,794
$1,857
Travel
$2,700
$2,796
$2,895
$2,998
$3,104
$3,215
Office Expenses & Supplies
$1,500
$1,553
$1,608
$1,665
$1,725
$1,786
Equipment Supplies & Maintenance
$30,000
$31,065
$32,168
$33,310
$34,492
$35,717
Building Supplies & Maintenance
$2,000
$2,071
$2,145
$2,221
$2,299
$2,381
Utilities & Telephone
$6,100
$6,317
$6,541
$6,773
$7,013
$7,262
Equipement Rental
$5,000
$5,178
$5,361
$5,552
$5,749
$5,953
Fuel
$8,000
$8,284
$8,578
$8,883
$9,198
$9,524
Professional & Technical Services
$33,500
$34,689
$35,921
$37,196
$38,516
$39,884
Education
$6,350
$6,575
$6,809
$7,051
$7,301
$7,560
Freight
$1,500
$1,553
$1,608
$1,665
$1,725
$1,786
Special Departmental Supplies
$39,500
$40,902
$42,354
$43,858
$45,415
$47,027
Total O&M
$984,099
$1,134,035
$1,174,293
$1,215,980
$1,259,147
$1,303,847
Debt Service
Potential 2017 Treatment Plant Loan
$0
$798,834
$798,834
$798,834
$798,834
$798,834
Potential 2019 South Trunk Loan
$0
$0
$0
$73,133
$73,133
$73,133
Total Debt Service
$0
$798,834
$798,834
$871,967
$871,967
$871,967
Expansion and Replacement
FYE 2017
FYE 2018
FYE 2019
N'YE 2020
N'YE 2021
FYE 2022
Collection - Rehabilitation & Replacement
$0
$0
$0
$655,227
$285,684
$695,130
Loaned Treatment Plant Capital Costs
$3,900,000
$10,300,000
$0
$0
$0
$0
Non -Loaned Treatment Plant Capital Costs
$1,320,595
$0
$0
$0
$0
$0
New South Trunk Pipeline
$0
$300,000
$1,800,000
$0
$0
$0
Replace 400 East Trunk Pipeline
$0
$0
$0
$0
$389,200
$0
Sewer Lift Station Pump
$8,000
$0
$0
$0
$0
$0
SCADA Upgrades
$40,000
$0
$0
$0
$0
$0
Building Project
$100,000
$0
$0
$0
$0
$0
Sewer Master Plan
$70,000
$0
$0
$0
$0
$0
Loan Proceeds
($3,900,000)
($10,300,000)
($1,300,000)
$0
$0
$0
Transfer to/(from) Reserve Fund
($991,082)
($138,512)
$15,310
$33,392
$83,458
$72,862
Total Capital Outlays
$547,513
$161,488
$515,310
$688,619
$758,342
$767,992
Total Revenue Requirements
$1,531,612
$2,094,357
$2,488,437
$2,776,566
$2,889,456
$2,943,806
LESS:
Operations Non -Rate Revenue
$382,412
$694,052
$721,704
$775,699
$806,219
$837,871
Non -Operations Non -Rate Revenue
$210,969
$214,813
$352,278
$428,138
$437,293
$441,716
Net Revenue Requirements
$ 938,231
$ 1,185,492
$ 1,414,456
$ 1,572,729
$ 1,645,944 I $ 1,664,219
Sewer Rate Study
Moab City
Draper, Utah Office:
154 East 14000 South
Draper, Utah 84020
Phone: (801) 495-2224
Fax: (801) 495-2225
Eagle, Idaho Office:
776 East Riverside Drive
Suite 250
Eagle, Idaho 83616
Phone: (208) 939-9561
Fax: (208) 939-9571
WWW.BOWENCOLLINS.COM
Bowen Collins
& Associates, Inc.
CONSULTING ENGINEERS
St. George, Utah Office:
20 North Main
Suite 107
St. George, Utah 84770
Phone: (435) 656-3299
Fax: (435) 656-2190