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Home My WebLink AboutMINUTES Water Committee 1978-03-07GO •_ RECORD OF PROCEEDINGS MAR 11 gp Water Committee i , March 7,1978 Committee:Chairman Sutter,Trustees Dannels and Houston Attending:Chairman Sutter,Trustees Dannels and Houston Also Attending:Mayor Tregent,Town Administrator Hill,Water Superin tendent McCracken,Finance Officer Duncan,Accountant Daniels,Consulting Engineer Kemp Absent:None WATER RATE STUDY: Bob Kemp of DMJM-Phullips.Reister,Inc.presented the water rate study in which the proposed rate structure is intended to provide sufficient income to maintain the present level of service.The study proposes an equitable rate structure which applies to all customers regardless of waterline size.Also recommended is a rural water rate multiplier of 1.62 and an increase in the plant development fee and water rights fee.The Committee recommends the study be adopted and that the pro posed plant development and water rights fees be put into effect immedi ately and that the proposed water rates become effective onJune 1,1978. POST OFFICE WATER METER SIZE REQUEST: The Committee reviewed a letter dated February 27,1978 from the Postmaster requesting the Post Office be billed the rate for a 5/8” service line rather than the existing 1”service line.The Post Office had planned to change to a 5/8”waterline but the amount of work in volved has made it economically unfeasible.The Committee directed the staff to inform the Postmaster that if the new water rates as pro posed by the water study are adopted,then the amount billed will be based entirely on the amount of water used. RURAL WATER APPLICATION -FENTON -EAGLE CLIFF: MARY ESTHER FENTON -requested service for a future residence to be located on Eagle Cliff Road.The Committee recommends approval. KOA CAMPGROUND SERVICE REQUEST: A request was received to serve the main building only of the KOA Campground which includes a store,laundry facility,and living quarters for the manager.The rest of the campground complex would be served from the existing well.According to Section 13.24.060 of the Municipal Code,all improvements on the property must be served if service is provided.The Committee directed the staff to inform Rex Walker,owner,of this requirement and of the procedure for applying for full service. 1978 CAPITAL IMPROVEMENTS: The proposed 1978 capital improvements were submitted to the Committee and are attached to these minutes.All improvements would be performed “in—house”except the Moraine Avenue and Beaver Point Extension pro jects.The Committee recommends the proposed 1978 capital improvements be accepted with the addition of replacing and enlarging the East Riverside bridge crossing at an approximate cost of $5,000. REPORTS: FEBRUARY 1978 WATER USE decreased 4%from January and 31%from February 1977. A.W.W.A.CONFERENCE will be held in Atlantic City during June 25 —30,1978. There being no further business,the meeting adjourned. ______________ Tr .r C 0 1978 CAPITAL IMPROVEMENTS Q 0 Virginia Drive: Pipe —(6”)$4.14/ft.x 800’$3,312.00 Excavation —$10.00/ft.x 800’8,000.00 Oil Replacement 1,000.00 TOTAL $12,312.08 James Street: Pipe —(6”)$4.14/ft.x 750’$3,105.00 Excavation —$10.00/ft.x 750’7,500.00 Tap 500.00 Oil Replacement 150.00 TOTAL $11,255.00 Moraine Avenue:(Item B) Pipe —(8”)$5.67/ft.x 1,000’$5,670.00 Excavation —$15.00/ft.x 1,000’15,000.00 River Crossing 3,000.00 Fire Plugs —3 3,000.00 Oil Replacement 5,000.00 Connect Services 7,000.00 TOTAL $38,670.00 Elm Street: Pipe —(4”)$3.15/ft.x 150’$4,732.00 Excavation —$10.00/ft.x 150’1,500.00 Oil Replacement 150.00 TOTAL $6,382.00 Stanley Circle: Pipe —(6”)$4.14/ft..x 1,000’$4,140.00 Excavation —$10.00/ft.x 1,000’10,000.00 Tap 500.00 Fire Plugs —1 1,000.00 Oil Replacement 500.00 TOTAL $16,140.00 TOWN OVERSIZE PROJECTS: Fish Creek -Vogel: Pipe —$3.00/ft.x 3,500’$10,500.00 Beaver Point —Webermeier: Pipe —1,450’$22,500.00 Beaver Point Extension across U.S.#36: Contract —$21.00/ft.x 500 $11,650.00 Oil Replacement &Tap 3,000.00 TOTAL $14,650.00 GRAND TOTAL:$132,409.00 TOTAL BUDGETED FOR DISTRIBUTION:$159,000.00 rley 0.PhIllips ce President Floyd M.Relster Vice President DalLJIVIPhiIIipsReister March 7,1978 Town of Estes Park P.0.Box 1200 Estes Park,Colorado 80517 Attention:Mr.Dale G.Hill Town Administrator Subject:1978 Water Rate Study Genti emen: The underlying goal of this rate study has been to design a rate structure that is fair and equitable,simple to adminster,and at the same time will provide sufficient income to allow the Water Department to maintain the level of service the public needs and wants. The steps involved in this study were: 1)Determination of the annual revenue needed to provide for operation and maintenance plus water rights development. 2)Distribution of the annual revenue requirements or costs of service to several basic cost functions,namely,customer cost,commodity cost and demand cost.Customer costs are those associated with serving the customer,irrespective of the amount of water used: Commodity costs are those which vary directly with the quantity of water produced.Demand costs are associated with facilities required to meet the peak demands of the customers. 3)Distribution of these costs to classes of customers in accordance with the requirements for service. 4)Design water rates that would recover from each class of customer the respective cost of providing service. Enclosed are copies of the budget for 1978 and anticipated budgets for 1979-80 &81.The costs of operating the Water Department have been spread into the categories of demand,commodity and customer costs.The costs of operating the Water Department have then been totalled and from this total has been subtracted the other income estimated from miscellaneous sources, leaving the total income required from water sales as the remainder.The figures of total income required from water sales have been used in develop ing the rates necessary to achieve that total each year.At the bottom of Denver Division Suite 700 Planning Daniel,Mann,Johnson,&Mendenhall 910 Fifteenth Street Architecture Denver,Colorado 80202 Engineering Telephone:303/892-1300 Systems Cable:DIUJIM Denver Economics Town of Estes Park March 7,1978 Attn:Mr.Dale G.Hill,Town Administrator Page 2 Subj:1978 Water Rate Study the column of each year’s figures are the estimated number of gallons sold during that year and the estimated average number of accounts in effect during that year. We have studied the aspects of the cost to the Water Department to provide fire protection and we have concluded that the cost attributable to fire protection should be computed as the total of the demand costs multiplied by the ratio of fire flow demand to total (domestic plus fire) demand.For the four-year period studied,we have concluded that this would average about $80,000 each year.On an area basis we have said that approximately half of the geographic area receiving fire protection is within the Town limits and half is outside the Town,but within the area served by the water system.On this basis we have charged half of the cost of fire protection or $40,000 againstthe Town’s general fund,since fire protection is generally considered to be an item in the tax budget.The other half has been assigned to the rural users and must be recovered through the rural rate surcharge.The rural rate surcharge has been computed by assigning to the rural users: a)A return to the Town based on invested capital (as though the water system in the rural area were a private utility). b)The rural users share of water system depreciation. c)The rural users share of the fire protection payment U)The rural users share of the Town-owned facilities utilized by the Water Department. e)The rural users share of the Town’s general administrative and overhead costs related to the Water Department. The rural rate multiplier thus calculated is 1.620 times the urban rate. Enclosed is a sheet which shows the proposed rates,both urban and rural for the years 1978 thru 81.As mentioned earlier,the rates have been constructed so as to recover the costs of operating the Water Deparment as shown on the budget tabulation sheets.The computations show a slight decrease of water rates in 1981,primarily due to decreased Water Department costs caused by final payment of certain presently outstanding bond issues. It would probably be more realistic to hold the water rates at the 1980 level until 1982 or later when inflation would bring the Water Department income requirement up to the point where the rates would again have to be increased. DMJM PhiIIipsReister Town of Estes Park March 7,1978 Attn:Mr.Dale G.Hill,Town Administrator Page 3 Subj:1978 Water Rate Study We have recomputed the Plant Development Fee and Water Rights Fee for new connectors and recomend that they be raised in accordance with the enclosed table. Very truly yours, DM]M/PHILLIPS-REISTER,INC. R.K.Kemp RKK:vw Enclosures (as noted) 5001-02 DMJMPhilIipsReister Town of Estes Park 1978 Water Rate Study PROPOSED WATER RATES YEAR MINIMUM MONTHLY MONTHLY COST PER BILL -INCLUDING THOUSAND GALLONS IN FIRST 2500 GALLONS EXCESS OF FIRST 2500 URBAN RURAL URBAN RURAL ‘&.s_.I, 1978 $6.13 $9.93 $O.968 $1.569 1979 $6.33 $10.25 $1.O23 $1.657 1980 $7.22 $11.69 $1.336 $2.165 1981 $7.07 $11.45 $1.335 $2.163 Town of Estes Park 1978 Water Rate Study RECOMMENDED PLANT DEVELOPMENT FEE Plant Development Fee Tap Size Present Recommended 5/8 or 3/4 800 925 1 1,420 1,645 1¼2,220 2,570 1½3,200 3,700 2 5,690 6,580 3 12,900 14,800 4 22,750 26,310 6 51,200 59,200 RECOMMENDED WATER RIGHTS FEE Present Recommended First 40 fixture Values $400 $645 Each fixture Value over 40 $10 $16 s/g--/q78WATE24z—AT/oN]cT--/77T41-.A14”4YM4”HOJ’‘—eJ,?GKp7c7Z-4.&330t33o7’3/Soo1/7C1’7oo—-7S/k/TrW4Tz-7;;)44741/01/74ZL4e-7435)P’A./8S-.14&-tCCCC5’o,.S.C—/3o“.I.U/4CC500“COO/0‘,COcO•7537c475c7S•73/c-A./N4VtIC74hv7z4,vc-t:,41E?2f177,C0O/,CL—-____________3,35cZ.5o/1.003CCC7.5’c’—/P4000F,-.G4_,‘1--/979ZY8i.4A/D7T4LMA.•CAYM.+c/b..#‘,‘I?1CS)PTYCAn,F1’r—I48co°h7QOZ3.7O—17,300——17,3Q0—3&QO...7CC,%-______________?44L’—-/57-I4b’2.‘4’,SCCS0oCoo7500/3SooIS.7CCtQI300750—I—II4,3oc31,900‘COIq3oc————8000—.—75;c)a.cz—•1.I.41,1-zz/7Z//308o03o80/7CC3350”100o78wcs.A,’,o47i/.______8.coo=—Ooc,4’’,—7’’C‘.4L.4.e//.t7Ffi24—.——C77/C’,c,r4LAz/86I00——.—7.400_.72..-77--7’3/7C.“I8o74IIao53/n.—8’/42o:a5%—d50SqOC3477/CC——.700-7bo--71&-—.-79/,-IoseXSSDD-.——4/oo6:,P1s7/.///a43OJ3&iCZ3/0‘&,i.——.———%‘aL47d112.7dfl14—I—..——.qz0o——,-J-u41:7,——I-——6o8F/0od-—I—-——703—--—I—-._----—‘7348c1443CVO/00/5,3e1/OioI4S6,o3o7rA4...cfAThV-Q’a595D3755353.3czIao,oq4849,.,.3o”floo4i,33J8.’°-I4l65.--c?077ci.-.455’C40Zdoo3CC0O40.IIeoC£3,8 Vs,(‘It-3o-.3J’‘..tO43oNN4I—l4343NO-.‘It..’T&INI)10C.)—VUVpt7VA43,(‘3N?Vr’ri-4tY.)IhtN1’43N43N,,.NOtj.j-NO“N0.1LS.’43’-tp.cVVNj§1VV;;.-,,NU’NCm43437a\43’Y0.04300.0.‘‘43.0—•C,,43—4,,-43II--VI43tt.I-JIJl-IF,C)0j__O__V•Cu’•.‘5,I$‘•.43Ni’NNZ.“a.‘,U)•.-.1N71II‘I’0VN3-ç‘4•N!•-.,NC%(17HVI)—13;U00V0O._.‘a.75.4300•043N.0N-343N-3_V.‘34s’.cii4(A’430..—-3N.•‘A.”.‘430C’43,•-1-J-JN?5.p4%IN‘-.V_V0VV0tS1J’-3U3!’JVN(‘3VV_•V0o,VIt3434VU’tN“30•—cAl•43-S.—43-.04U1V(A,Ut4300i0U‘12?.__V:(3’—‘S.43‘1-3-HH:l.,VfI_l•1VVIi_tIV Ess/--,q78k7cA2rE5’7V.OV--.4.i.cA7/Q’/7’jf’)p,vsH.S--—-/98/......--._____________________Ef4AIO774L,V44DAYb1%$7Y.h’W74.M4cDAY,y74(At’-eCwMoplTrJ$7tA-7OZFN-Le’e.3W0---.1.I4o——I7j5FFi-I5—150—I•.7]A7El(Pw.H4JF12,Vs.Sooq—..5000———-_701‘•r’“A7Ee—-Zioc,cx3_____-j,sooo——j-o——5Z—ISO,38o—3’70ooIo.74Z..LA2’——38’28,4o—7iQI735_r/8)00——/./‘—.‘.a)—.:--7dj/A1T/4-.’C...3ec—-3a’c,l&?..—-z.,3400—341—-—I.———I...58.2C31,70w——JT4/tTio,/..-.-.753‘47/V0.IZ2t’c—I7oa——1.1qoo——I7PEA7/cPA:A/E7.’i2Ji7—f—7..———....[.....Z.•5DO._7,4,vA’ipA4A’f.Q.—Z).2c.I—1/—.....1-77,4lA1A’YtLA%r—-—3za———7/_•.735—I—75Q75—I——-.•-.5,Z00=‘°•5cr.,—I.--72.B,L’6-4Y.OAA’T,rv._____.............._____-.•...-..-.•.±——ôio•‘—.-T/”E.4YOLNe74L..79QSAcAe,&76F/——.—I.?/..4LA/Z/58,0c=——.——...--.4/a.—i;a....4ZoQ$40,Z1....-L-79Jpp,j’1Eppyj-j/109.I—,‘y00.,.t”.—=—Id—Ii./’—..-79544.2uV—.•LE44..——‘.2I10—...Iz.0_/2Poiii;(3,5o—.._i35’—_.t-—.--.-__.ossc47oo——47i/i£4——..__7dI4qo0jd7c)d/7Ø5S”73’/./‘‘/C.3oo45.Z8.Z77c’1’&,///,5CE4L?fZdJ/O0—/ØQ/0Db.=IO0---I—U.———V.-—_EZDo.--.—..-.—•.__.oD----—.----j.--.——-——.t--4z5NCWCt.)AMN’.AJ—.-V.———.P0I00)PA/.1A.!-————:——..Iq.,3w.poi2-rA7Iorv_____.—————____—V..jol,’looI!./odilci/,74o7487o)),oo/Z9os6o,o....-d6/-.d2,57..-.-,t3o7O--fp3?3—- -,410--t’’i8cr‘/.539--...7AL--LO74.Zai--I&ctt%eBb’25PEE1235/‘AfT/J7J.ESM/‘7‘i47’LEssZrL-sLESY.-273,çAP’i2y7tJf‘/D7r4t_c2721jc’-’‘ec-’it¼7F25E71,47-07TAL.ALL.rIsE57?14A-7Z,t4.WA’N7S3/.ta,q,’4t,—-—----.-‘5c’c-/f,4701’.3Ct8/2,O3-/87l3,-3z3.,8q../38MS..-—37,70—4423a5/3—J55..7q.54?./5Q’•—50Q—/384q——L‘7,74,37,5’22.11/9.259!Z,/3c.1/5,4374I,43(4IZtig7,)t387.2.*.....‘331.513“i’,37,7G.33-‘I,,--i4’,zZ•tzJz.348./7’myI3c—7’ms-&47t&cfiiCA’,r4IAfl,’I7--c.M4r..3’Zmip3Z32/.43.2?‘74%/.c,Et1sr3z4/‘r7J-..33.4f3:’1vp73..U3L%s-$356o’_4•E544..Z4.cF4Ljz,A•7/,co/,cQ•I6,7co,WAAVAV/-Z4//165J10.Z,67c7—I5.70,4”•/0’4.Tho49d8oZ3—t—)40001L001,000,q•0007Ac.fr24XQ4-m4?/.tJiirr44cJ-1,000-——I42,x’4oo23Ooovi5IC.”7D1/33.,4/d---7.5•5cooo-.2.5•qj7IlOo7o4Z2/.,74i,io.“12/,5fd8,&745z,48o•J6,4’5/700:‘£51.•2/28Icq343,oo/52,224—•14C44/0,b;3“H253,2t(..5,5c101,830B,5/3’,3/sS.1)3,1.30tt2Z)II458t,7,)