Minutes - 2022 - City Council - 11/17/2022 - Special EAGLE CITY COUNCIL
SPECIAL MEETING MINUTES
November 17,2022
1. CALL TO ORDER: Mayor Pierce calls the meeting to order at 3:00 p.m.
2. ROLL CALL: Present: GINDLESPERGER, PIKE, BAUN, RUSSELL. All present. A
quorum is present.
3. PLEDGE OF ALLEGIANCE:
4. WORK SESSION:
A. Water Standards and Fees Modification : Discussion regarding draft Water Standards
and changing the STL Fees to a CAP Fee. (MD&KA)
Mayor Pierce introduces the item.
City Engineer,Mike Davis with HECO Engineering provides a history of STL fees,the CAP fees
and the analysis conducted to update the same
General discussion.
5. ADJOURNMENT:
Gindlesperger moves to adjourn. Seconded by Russell. ALL AYE...MOTION CARRIES
Hearing no further business,the Council meeting was adjourned.
Respectfully submitted:
,�P• PEE ••••O'et St
TRACY E. OS ,CMC • Q' : Ca
CITY CLERK = : o
APPROVED:
N
JA.ON FIERCE
MA
AN AUDIO RECORDING OF THIS MEETING IS AVAILABLE FOR DOWNLOAD AT
W W W.C ITYOFEAGLE.ORG.
Page 1
K:\COUNCIL\MINUTES\Temporary Minutes Work Area\CC-11-17-22spmin.docx
•
' ram, c..
CC:
. '2411'':• �..!':uLbott Fes` ,Ao
City of Eagle = � .
Water Capitalization Fee
ii
Overview
•,.1a 3164
-. ,,:a
City Council Work Session n
November 17,2022 ' s ...le'
L-1-. 1,..,40.,
le HECO
E• NGINEERS '` \c," i
—.--
•'• Goals
• Review of the City's current fees
o STL—Storage & Trunk Line Fee
o Hookup
o WCE —Water Construction Equivalency
• Incorporate existing fees into a new Capitalization Fee using mandated
approach
• Review implementation, credits, and other considerations
HECO it-to
ENGINEERS 2
❖ Existing Fees
• STL—Storage &Trunk Line Fee
o Implemented by Resolution 05-13
o Amended by Resolution 08-09
• Hookup Fee
o Meter installation and account setup for new development
• WCE Fee
o Established in 1992; Title 6-5-24 in City Code
o Fee based on proportional share of existing system
HECO ';
ENGINEERS n' 3
••• Capitalization Fee
• System equity buy-in imposed on new development
• Methodology based on Idaho Supreme Court ruling in North Idaho Building
Contractors Association (NIBCA) v. City of Hayden
• Limits the cost basis for the Cap Fee to the cost to replace existing
infrastructure
• Excludes any future project costs in the fee
paHECO �
ENGINEERS 4
J-❖ Methodology
• Determine the net system replacement value
• Determine the capacity of the system
Replacement Value —Unfunded Depreciation
Cap Fee =
Existing System Capacity
Net Replacement Value=Replacement Value—Unfunded Depreciation
4111,rti
HECO v,.
ENGINEERS S
❖ Net Replacement Value
Replacement Value of Current replacement costs of system components
Existing System
Unfunded Depreciation Accounts for decline in the value of the system due to age
Current Indebtedness Amount owed on the system;deducted from replacement value
since repayment funded through rates
• Steps
✓ Inventory Existing System
✓ Determine Age of System
✓ Determine Current Replacement Costs
V Determine Value of Aged System
✓ Determine Net Replacement Value
HECO ..t.
ENGINEERS 6
•• Existing System
• Groundwater wells —Total of 5
• 1 MG Concrete Reservoir
• Approximately 50 miles of water distribution pipe
• 431 Fire Hydrants
• Pressure Reducing Valve Stations — 2
• Water Rights— 3.25 cfs licensed in Eastern System; 5.37 cfs permitted in
Western System
-- _
ir . ,.
_ „_ . _
,�
...... .
, ,
r " 1,-„ ,,, �
' p
9 - ' '\ h I
F TNt•
�3,
HEC S ENGINEERS Vet
t� 1C14�
a
-- ••• Inventory/Age
• Piping and Hydrants Tracking —City compiled data & updates annually
Final Plat
Phase Signed 4" 6" 8" 10" 12" 16" 20" Hydrants Other
Approeimete feet of line
1 ct�n ii e•.�k 1 1992 800 365 1875 3
Lc-rin>!c,n!!II!• I 1992 3287 1173 1210 215 8
1912 0 40e7 1533 3041 719 0 0 11
Fx M1u G�ek 2 1993 110a 795 725
1993 1965 1683 1650 5
I..x:nft�+n H�Rc 1 1993 508 ]
L�.fn7?ro Nlll. 4 1993 886 291 268 1
1903 0 4439 2747 lean 0 0 0 10
Final Plat
Phase Signed 4" 6" 8" 10" 12" 16" 20" Hydrants Other
14newnntl / 2021 66 2261 1944 U lSample 9ec.en
f4n 0/000 1 2021 43 2401 6
givenf400464 2021 6 188 257 1
5no0,+almle 5lver 4 2021 175 3154 7 154m0le 5bYl0n
0r701027 4 2021 47 1615 4
8210 Cagle 0elnt 1.2 2021 97 2306 2490 10
1Nalnage 0i.t.2<ms1102 lArv7r61,e91) 2021 259
2021 0 434 11999 0 4909 0 0 14
44119fr 6,
HECO
`„„, ENGINEERS 8
❖ Net Replacement Value
Replacement Value
• Replacement costs determined using RSMeans for piping & hydrants
• Original Costs adjusted to current cost using RSMeans Construction Cost
Index (CCI)
• If Original Costs unknown - used original costs of similar project and adjusted
to project construction year using RSMeans CCI
• Water rights value determined using the rental price of storage from the
Boise River Rental Pool - Water District #63
Depreciation
• Accounts for age and life expectancy
Pipe(PVC) 70
of each component using straight Hydrant 40
line depreciation method Well 50
• Asset Life Expectancy based on Well House SO
typical industry values and AWWA & Pressure Reducing Valve 50
Station
EPA Reservoir 60
HECO
ENGINEERS , r,`,, 9
.......•.-
••• Net Replacement Value
• Determined using the following equation:
Net Replacement Value = Existing Replacement Cost x Remaining Useful Life
Life Expectancy
Replacement Value
$175.43 $186.74 $204.31 $216.70 $248.98 $359.57 $518.31 Expected Life= 70
Year forValue= 2022
Year 4" 6" 8" 10" 12" 16" 20" Total Value Remaining Ufe Depreciated Value
1992 $0.00 $763,215.84 $314,232.62 $668,516.93 $178,023.27 $0.00 $0.00 $1,923,988.66 40 $1,099,422.09
1993 $0.00 $832,683.98 $565,332.67 $572,735.90 $0.00 $0.00 $0.00 $1,970,752.56 41 $1,154,297.93
1994 $0.00 $530,721.66 $808,055.92 $1,104,298.96 $0.00 $0.00 $0.00 $2,443,076.54 42 $1,465,845.92
1995 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 43 50.00
1996 $0.00 $70,962.08 $0.00 $0.00 $0.00 $0.00 $0.00 $70,962.08 44 $44,604.74
1997 $0.00 $244,632.43 $326,899.99 $344,551.68 $0.00 $0.00 $0.00 $916,084.10 45 $588,911.21
HECOI•
ENGINEERS „•,l 1\,s 10
�� ❖ Net Replacement Value
■ Determined using the following equation:
Remaining Useful Life
Net Replacement Value = Existing Replacement Cost x
Life Expectancy
Replacement Value
$175.43 $186.74 $204.31 $216.70 $248.98 $359.57 $518.31 Expected Life= CO)
YearforValue= 2022
Year 4" 6" 8" 10" 12" 16" 20" Total Value Remaining Life Depreciated Value
`
1992 $0.00 _ $763,215.84 $314,232.62 $668,516.93 $178,023.27 $0.00 $0.00 $1,923,988.66 40 $1,099,422.09
1993 $0.00 $832,683.98 $565,332.67 $572,735.90 $0.00 $0.00 $0.00 $1,970,752.56_ 41 $1,154,297.93
` 1994 $0.00 $530,721.66 $808,055.92 $1,104,298.96 $0.00 $0.00 $0.00 $2,443,076.54 42 $1,465,845.92 '
1995 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 43 $0.00
1996 $0.00 $70,962.08 $0.00 $0.00 $0.00 _ $0.00 $0 $70,962.08 44 $44,604.74
1997 $0.00 $244,632.43 $326,899.99 $344,551.68 $0.00 $0.00 .00 $916,084.10 45 $588,911.21
• Example:
Net Replacement Value = $2,443,076.54 x 40 = $1,465,845.92
,,,.
HECO
ENGINEERS
II
_____
__,
.....„
______ ________
❖ Net Replacement Value
• Summary
II �,tl-it w ;gy,T'
e
Pipe(PVC) $16,603,107.49 ' $31,707,385.89
Hydrants $362,152.43 $1,459,243.89
Well/Well Houses $774,580.28 $2,347,648.36
PRV $35,000.00 $46,000.00
Reservoir $1,733,526.92 N/A
Water Rights $450,000.00 $1,555,080.99
Total Net Replacement Value $19,958,367.13 $37,115,359.13
I-I,,.
th
toHECO a,
ENGINEERS;' 12
--❖ Net Replacement Value
• Additional Reductions
i Indebtedness (DEQ loan balance for construction of concrete reservoir)
Balance as of September 30, 2022 —$749,059.41
Reserve Balance
Balance as of September 30, 2022 — $997,000.00
• STL Fee Balance
Balance as of September 30, 2022 — $1,108,974.81
Net Replacement Value = $54,218,692.04
F TE,n
r
e
x
leHECO e
ENGINEERS 1 .tt 13
❖ System Capacity
• Eastern System
o Limited by the pumping availability from the wells
o DEQ required redundancy— Largest source out of service
o Source capacity shall meet maximum day demand
o Well 2 has a capacity of 650 gallons per minute (gpm)
o Water Master Plan (in progress) has an estimated maximum day demand
of 432 gallons per day (0.3 gpm) per Equivalent Dwelling Unit (EDU)
650 gpm
Eastern Capacity = = 2,167 EDUs
0.3 gpm/EDU
HECO ti
ENGINEERS 14
❖ System Capacity
• Western System
o Limited by the available water rights (5.37 cfs = 2,410 gpm)
o No storage—System must meet peak hour demand
o Water Master Plan (in progress) has an estimated peak hour demand of
648 gallons per day (0.45 gpm) per Equivalent Dwelling Unit (EDU)
Western Capacity = 2,410 gpm = 5,356 EDUs
y 0.45 gpm/EDU
Total Capacity = 2,167 + 5,356 = 7,523 EDUs
z_,
HEco
ENGINEERSs om
9 . ,
..„ „,,, 1;
___
_______ ___
_ ___
f ❖ Cap Fee Calculation
$54,218,692.04
Cap Fee = 523 EDUs $7,207.06/EDU
7,• Existing Fees
o STL—Storage &Trunk Line Fee $2,100
o Hookup Fee (includes meter) $1,050
o WCE —Water Construction Equivalency Fee $ 400
Total Fees $3,550/EDU
H Eco ��" •
�� ENGINEERS ,, a� 16
❖ Other Considerations
• Meter Fees
o Fee to account for costs associated with materials, labor and
administration costs for meter connection on the system
o Options -Additional Fee, Percentage or specific dollar amount of Cap
Fee
o Not eligible for credits
• Implementation
o When to collect—STL is at time of platting; Hookup & WCE at time of
building permit
o Review of existing plat applications
HEC . ,. .
O
,/ ENGINEERS -4,
17
❖ Other Considerations
• Credits
o Credits for oversizing beyond development needs or minimum City
requirements
o Resolution 08-09 includes allowances for credits to the STL and WCE fees
o City tracking of credits for different developments if Cap Fee not
collected at time of platting
■ City Code Revisions
o Modify Title 6-5-24 to remove language related to WCE fees
`_
00HECO . ,:
ENGINEERS 18
0{�7 e
,A , 4 r
t $ =_:
i v,Y�.nE a- #w R .
y n�
, ...t• iitiir.-,i,„....i* ,..tx.::, .:.r. ,
City of Eagle ...„. .-,... ...„ -,..
7-- .--- - , , _,-----,..z.,...„ „
‘. , ,- - ....----
Water Standards Update S
:City Council Work Session �r ;r r `�1 p a •, l
November 17,2022
F77n
Eir,
HECO
ENGINEERS ``
1
+ Purpose
• Update existing standards
• Include new standards for large water infrastructure
o Wells
o Storage Tanks
o Booster Stations
• Prepare for development/growth in areas requiring large water infrastructure
improvements
o Foothills - areas of high elevation variability
o Spring Valley/Avimor
HECO
ENGINEERSI �t�
2
❖ Existing Standards
• Update material designations
o Pipe
o Fittings
• Add equivalent items to ones specified
o Large valves (16" and larger)
o Meter lids
• Revisions
o Meter box height— eliminate field notching
o Tracer wire installation at hydrants
o Mechanical restraints at hydrants
o Air release valve type
o Project closeout documents— information for Megan to help mapping,
removed requirement for hard copies of photos
o Updated standard drawings to reflect above revisions
teHECO , -4:
ENGINEERS 3
••• New Standards
• Water Storage Tanks
o Type of tank
o Site Improvements
o Access Roads
• Well House and Well Lots
o Type of structure
o Required equipment inside well house
o Well site improvements/setbacks
• Booster Stations
o Type of structure
o Required equipment inside booster station
o Site improvements
HECO
ENGINEERS 4
• Water Storage Tanks
• Type of tank— underground concrete
• Alternative tank type may be considered by City Council
o Fusion bonded epoxy-coated
o Provide means and assurances to offset costs associated with alternative
tank type (warranty; recoating, etc.)
o Additional requirements associated with a ground level tank
• Required infrastructure in tank
• Provide replacement area
• Site improvements
o Area requirements
o Turnaround area
o Fencing/gate—20' cantilevered
• Access Road
o Paved; 20' wide
HECO •
ENGINEERS • 5
❖ Well Houses and Well Lots
• Type of structure —concrete masonry
• Minimum clearances within building
• Required equipment within building
o Chlorine treatment
o Eye wash/shower
o Generator with ATS (may be exterior if screened)
o Roof access
o Roof pitch of 4:12 minimum
• Well site requirements
o Property lines outside well protection zone (50'R)
o Paved driveway (20' wide) and turnaround within site
o Fencing/gate — 20' cantilevered
o Gate setback a minimum of 25' from the sidewalk
00 HECO "
ENGINEERS 6
❖ Booster Stations
• Type of structure—concrete or concrete masonry
• Minimum clearances within building
• Required equipment within building
o Generator with ATS (may be exterior if screened)
o Roof access
o Roof pitch of 4:12 minimum
■ Booster site requirements
o Fence located on property lines with a minimum 7.5' from the structure
edge—This needs to be updated on hard copy provided for meeting
o Paved driveway (20' wide) and turnaround within site
o Fencing/gate — 20' cantilevered
o Gate setback a minimum of 25' from the sidewalk
4111,
lieHECO `
ENGINEERS 7