1. What will funds from the recent (27%) sewer rate increase be used for?

27% will generate about $189,000 in additional revenue. This combined with other fund revenues is estimated to provide the estimated $250,000 of legal expenses (attorney's fees and settlement or court costs) from the sludge over-spray incident and the Oregon Shores lawsuit concerning treatment plant overloads. Any remaining funds will start to establish a reserve for debt service of the new plant.

The current project is Phase 1. It mainly serves the expected 20 year growth within the current service area. Phase 2 refers to a future expansion to serve the expected growth within the entire UGB (urban growth boundary) over 20 years. Phase 2 could consist of a second plant north of town, using wetland and/or other natural treatment technologies if suitable land is found. If not, Phase 2 would consist of an expansion to the plant in the current location.

NEW SEWAGE TREATMENT PLANT (not the collection system)

3. Will the City consider building in a different location since the updated Tsunami inundation map shows that the new treatment plant would probably be destroyed in a Tsunami or earthquake at the present location? (See Tsunami Map)

No. The formerly defined tsunami inundation zone also included the treatment plant site; the revised map does not represent a change in that respect. However, the revised map does indicate a much higher flood level. If a tsunami of this level were experienced, extensive damage would occur to much of the city in addition to the treatment plant.

A. Equipment
Equipment is normally given a 20-year life, although this can vary significantly from item to item.
B. Buildings
Buildings are typically given a 50-year life, but in practice, normally last much longer. Piping should last more than 50 years as well.

Approximately 12, 300.

About 6,700.

Capital cost is estimated at $13.3 million. This includes 10% contingency and 20% for engineering and administrative costs.

Building and equipment maintenance
No response from City.
Vehicle (not sludge truck) maintenance
No response from City.
Personnel Costs: Salaries, Payroll Expenses (calculated on employee, spouse and two children)
Labor $374,000
Other operation and maintenance expenses
Power $74,000
Chemicals $23,000

The existing sewer treatment plant is shown on attached map. (contact City Hall for copy of map). The total value estimated for the land and plant is $10.3 million. (Brown & Caldwell, Sewer Rate and Fee Workshop, May 19, 1998).

A. How much more land will be required during the 20 year period, and what cost?
No additional land will be required for plant expansion, current site is adequate for future development.

 
B. How much has already been purchased, and at what cost?
(Note: Total $ 125,000)
Refer to map related to cost:(Contact City Hall for copy of map)
Weil Property (10-25-91) East 77.5, lots 13-18, Blk 76, Lots 19-20, Blk 76, Millers $28,000.
Port of Siuslaw Property (4/8/92) Lots 1-7, Blk 81, lots 11, 12, Blk 76, Millers $34,000.
Chapman (12/92) Lots 6019, Blk 75, Millers - Right of Way trade.
Port of Siuslaw (12/17/93) Lots 15-20, Blk 81; Lot 1, Blk 82; Millers $31,500.
Port of Siuslaw (2/19/93) Lots 8-14, Blk 81, Millers $31,500.
Riviera (Lane County) (5/31/96) Lots 1-5, Blk 75, Millers $-0-

A. Source of initial funding, and interest rate. Can interest rate change in future?
Initial funding is from the State Revolving Fund Loan (SRF). We have already received $100,000 for reimbursement to the Sewer Fund current year operating cash (mostly from fees charged to users). There is currently a request for reimbursement in the amount of $190,000. In fiscal year 97, sewer system development funds in the amount of $108,335.21, representing the portion of engineering relating to expansion. No SDC (Systems Development Charges) were transferred in FY98. The SRF loan is available for design and construction and the payments do not start until the project is completed. The interest rate and fees are $150,000 flat one-time set up fee and interest at 3.43% plus a .5% annual charge. Therefore, the total annual interest is scheduled to be 3.93%.

B. Total cost of project when completely paid off: Principal, Interest

The principal is about $13.3 million. Based on SRF loan interest rate of 3.93% and a 10% reserve, interest is about $7.3 million. Total capital cost on new construction, including debt service, is about $20.6 million.

C. How long will it take to completely pay this debt off?
20 years.

A. What population growth rate percentage is being used? With this growth rate, what will Florence’s population be in 20 years?
For design of facilities, the Facilities Plan used a growth rate of 3.5% which projects, for the year 2020, a City population of 14,617, and a UGB (Urban Growth Boundary) population of 17,937, and the anticipatoin that the UGB would be sewered, making the latter number (17,927) the design figure. The current strategy of development is to serve only the anticipated buildout growth of the existing City limits, estimated in the Predesign Report at 12,317. A reason for using a high or "conservative" growth rate for facilities development is that it is better to have some excess capacity than to run out of capacity early.
B. How many residences are there within Florence city limits?
Billing records indicate that currently there are 2,256 single family residences in the City. With projected occupancy of 2.2 to 2.4 per residence this would account for approximately 5,200 of the City's estimated 6,700 population. The remainder would occupy multi-family housing.
What percentage are “part-time” or “summer” homes?
The City doesn't track this information. But best estimate from the billing office is in the neighborhood of 4 to 5 percent. Recent discussion with Greentrees indicated that in their experience their winter and summer population are nearly identical (based on billing for garbage collection).

A. SDC increases B. Sewer Rate increases
C. Sewer Hook-up Charge increases (hook-up, etc.)
D. Property Tax increases
E. Other methods (please describe)

Uses of Funds: Operating and Maintenance Debt Service $13.9 Million at 4%, 20 years Total Annual Sewer Plant Cost	$   785,000   1,000,000 $ 1,785,000
Sources of Funds: User Fees Proposed Prepared Food Tax* System Development Charges Total Sources	$  1,100,000 400,000 390,000 $  1,890,000

*If this option is not approved, it is anticipated that User Fees would increase to $1.5 million.
F. Total (100%)

Note: Currently a reimbursement request to SRF in the amount of $190,000 is in process. Sewer User Rates: See rate schedule attached. System Development Charges: see rate schedule attached.

15. What is the expected life of the upgrade to the collection system? Equipment (pump stations, etc.), Pipes.
Overall equipment life should be 20 years, although pumps will require some rebuilding (for example, impeller replacement) in 10 years. Piping life should be over 50 years.

A. Total cost of construction, engineering, consulting, etc., from stage one consulting/engineering (already begun) to final sign-off on construction contracts.
About $400,000, including contingency, engineering, and contract administration. This cost also includes $180,000 budgeted for a sewer cleaning truck.
B. Total cost of project when completely paid off Principal, Interest
C. How long will it take to completely pay this debt off?
This is paid from existing funds; there is no debt service.

Note: City did not fully respond.

The upgrade will enable the lower portion of the collection system to handle flows projected to enter the existing portion of the collection system through buildout. However, when growth occurs north of the city limits, additional collection system expansoins will be necessary to handle those new areas. A separate new interceptor will be required (Phase 2) to convey that flow to the treatment plant. If a second plant is constructed to the north, the interceptor would convey the wastewater to the new plant. If no new plant is built, the interceptor would need to carry flow to the existing plant site. The cost of such an interceptor was estimated at about $1.5 million in the facilities plan.

A. SDC increases     100% from SDCs
B. Sewer Rate increases
C. Sewer Hook-up Charge increases (hook-up, etc.)
D. Property Tax increases
E. Other methods (please describe)
F. Total (100%)

Approximately $18,000 in engineering costs have accrued toward a total estimated $28,272 in engineering costs for the upgrade to Ivy Street pump station and replacement of the force main to the treatment plant. The source of funding for this capacity increasing project is SDC's.

20. Initial Costs - How much will it cost for:

General Comments regarding solids handling. The solids handling program has been revised since the predesign report was issued. Due to the difficulty in siting a sludge lagoon (FSL), the FSL has been deleted from the project. In its place sludge will be dewatered at the existing treatment plant site. Although the revised program has a greater capital cost, it offers the following advantages: No need for a special tank truck; a normal city dump truck can be used; Reduced number of hauling trips. Dewatered sludge will take up less than one fifht the volume of liquid sludge. This results in a lower annual cost as well as less traffic; Reduced risk of runoff into streams at application sites; In the event of a spill on the highway, a cleanup would be straightforward; Dewatered sludge can be used to start a composting program.

A. Remote location land acquisition for sludge application - how much will it cost for: Land - purchase Title Insurance Fees, Real Estate / Escrow / Recording Fees, Surveyor Fees Misc. expenses - aerial photographs, misc. state permits, etc.
Currently sludge is applied on private land. If this demand continues, there is no cost. If the city buys the land required for all sludge application, it is estimated at about $750,000. This could vary widely depending on locatoin, parcel size, etc.

 

Land Purchase Title Insurance Real Estate/Escrow/Recording Fees Surveyor Fees Miscellaneous

$  750,000 No response from city No response from city No response from city No response from city

B. Land required for sludge-producing treatment and storage (as opposed to other non-mechanical systems which do not produce sludge). For example, increase in land needed at the plant site due to certain requirements for sludge handling, land required for storage of sludge, land required for storage of truck and sludge application equipment, etc. Land - purchase Surveyor Fees Title Insurance Fees, Real Estate / Escrow / Recording Fees, Surveyor Fees Misc. expenses - aerial photographs, misc. state permits, etc.
No additional land purchase is required. An FSL is no longer planned; therefore the land purchase for an FSL is no longer necessary. All solids handling (except application and storage) will take place at the existing treatment plant site. The revised plan calls for dewatering the digested sludge. Dewatered sludge can be stored on the private land currently being used for application. Alternatively, dewatered sludge can be stored on existing city property such as the airport site.
C. Building and equipment for handling of sludge (processing, loading, spreading, etc.) to prepare for hauling to remote location.

Digestion Dewatering* Contingency Engineering & Administration Total

$  1,043,000 1,100,000 214,000 471,000 $  2,828,000

*estimated subsequent to predesign report.
D. Sludge hauling truck Expected life of truck Purchase price (including all accessory equipment and/or modifications). Other purchase expenses (title recording, mechanical inspection, licensing, permits, etc.)
The sludge hauling truck has been deleted from the program. Dewatered sludge will be hauled in a normal city dump truck.
NOTE: City did not respond to the cost and expected life of the "normal city dump truck" - if current truck is in need of replacement within the near future, this question still needs to be answered.
E. Engineering and consulting fees relating to sludge processing, handling and disposal.
Answered in 20-C above.

A given parcel of land can be reused each year as long as the crop is harvested, thereby removing the nitrogen that was applied to the land as a result of the sludge application. The sludge cannot be applied at a rate greater than the crop's ability to utilize the nitrogen. This rate is referred to as the agronomic rate. Currently, about 75 acres of land is required to accept the sludge applied at the agronomic rate. As Florence continues to grow, sludge production will increase proportionally, requiring more land for application. Based on the growth assumptoins in the facilities plan, about 200 acres will be required by the design year 2020. Of course, if the growth rate differs from that assumed, the land requirement will differ accordingly.

A. Where exactly will it be located?
The location of application land will be wherever the city can negotiate permits with landowners, or where the city can buy land at an acceptable price.

Class B.

A. If Class B, how much will it cost to “upgrade” the plant to Class A?
To produce Class A sludge at the plant would require a second digester to facilitate extended thermophilic digestion. This would add more than $1 million to the construciton cost. Annual cost would be increased as well. Operation would also be more complex. If a second digester is added in Phase 2, Class A sludge production could be incorporated at that time for relatively little cost. Under the currently proposed plan using sludge dewatering, a pilot composting program could be developed at another site for little cost. Composting the dewatered sludge would produce a Class A product.
What is the difference between Class A and Class B?
The only difference between Class A and Class B is the pathogen content.
Note: "pathogen" means "a specific causative agent (as a bacterium or virus) of disease". (See CFF Newsletter for more information about pathogens.)
B. Will DEQ or EPA require Class A in the future - if so, when?
It is not anticipated, but there is no guarantee.
C. How much would it cost to upgrade plant from Class B to Class A, at this stage in design?
See 22-A above.
D. What is the difference in annual operating expense for Class A as opposed to Class B sludge?
The cost would depend on the process selected. Composting is estimated to add about $50,000 per year, based on the design year sludge production. Alternatively, an extended thermophilic digestion process at the plant would add about $10,000 per year in fuel costs for sludge hearing and about $20,000 per year in labor cost. The final product would still have the wet consistency of sludge as opposed to the dry consistency of compost.

A. Remote location: Property tax on remote location Sludge truck license Special permits for hauling hazardous materials Sludge transport hazard insurance

Property tax Truck license Spercial permits Transport Insurance

No property tax on city-owned property $15 for life of vehicle None - not considered hazardous $10,000 per year for hauling liquid*

* If dewatered, probably no additional insurance other than the normal vehicle insurance.
B. Sludge hauling: Sludge transport truck insurance; Sludge truck operating maintenance (gas, tires, repairs); Payroll (for truck driver and application), including benefits such as retirement, expected overtime, etc. (calculate on married employee, two children). What is customary annual payroll increase (%)? Payroll expense (for truck driver and application), including workers compensation, health insurance, employer’s contribution to FICA, etc. (based on employee, spouse and two children).

Truck insuance Truck operating maintenance* Payroll for truck driver Customary annual increase in payroll Payroll expense for driver

No additional for dwatered sludge $   13,000 $   39,000 No response from city No response from city

*Based on 35 miles one-way to site.
C. Expense for required training (continuing education, maintaining certification, etc.) for sludge application personnel.
Budget for training for each public works employee is $500 per year, regardless of tasks performed.
D. Sludge Handling: Electricity and Chemicals , Payroll (to prepare for hauling), including workers compensation, health insurance, employer’s contribution to FICA, etc. (based on employee, spouse and two children).
Electricty and chemicals: $33,000 per year
Payroll: $43,000 per year
How will the new sewage treatment plant and collection system upgrade affect the average Florence user?
The existing rates are contained in Resolution No. 13, Series 1998, "A Resolution Relating to Sewer Rates", copy attached.
Possible new rates are the subject of the Council work session scheduled for July 27, 1998, where three approaches, with additional permutations, will be discussed. Depending upon the methodology adopted by the Council, and the possible determination by the voters of Florence on an optional source of funds. At present, the estiamte is that, depending upon the options, residential rates will fall somewhere between $20 and $27 per month.
Note: Current residential rate is $18.35 per month.
What are the current and estimated Systems Development Charges?
The current SDC's are shown on the attached sheet. The new Sewer SDC will be a part of the Council work session. Best current estimate is that the Sewer component of the SDC will increase approximately 10% to 20%. The current SDC is based on a fairly accurate estimate of future sewer expansion costs.

Systems Enlargement Fees: Single Family & Duplex Mobile Home/Mfg Home (not in park) Multi-Family Dwelling Mobile Home Mfg. Home Park Campground or RV Park	Per Dwelling  Unit/Space $  3,594.00 3,594.00 1,960.00 653.00 457.00	Plus	Per sq. ft.  of land area    $  0.078 0.078 0.078 0.078 0.078
Uses other than listed above:	2,353.00 plus  $176 per  parking space	Plus	0.078
Allocation of Revenue: Streets Sewers Water	8% 59% 33%