AGENDA Westtown Township Board of Supervisors Workshop

Transcription

1 W E S T T O W N T O W N S H I P 1039 Wilmington Pike Post Office Box 79 West Chester, PA Westtown, PA FAX AGENDA Westtown Township Board of Supervisors Workshop Westtown Township Municipal Building 1039 Wilmington Pike, Westtown Monday, August 27, :00 pm 1. Non-standard Sewer Rates 2. Comprehensive Plan Update

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3 How did we get here? In 1997, the Department of Environmental Protection (DEP) mandated the Township to acquire the Chester Creek Wastewater Plant (WCC) and its collection system and other assets. The total Sheriff sale price was $2MM. It was estimated that an additional $4MM would be required to upgrade the plant to function in accordance with DEP regulations at its rated capacity of 290,000 gallons per day. The Board agreed to consolidate prior sewer related Notes that were drawn for individual neighborhood sewer projects and issued the Sewer Revenue Bond of 1997 in the amount of $9.7MM. The Sewer Revenue Bond of 1997 was refinanced to consolidate debt and take advantage of interest savings in 2005 and again in The outstanding Principal amount remaining is $3,085,000 (expires 2027). In 2006, in anticipation of undertaking the sewering of various sections of the Township pursuant to the approved Act 537 Plan, advance funding for engineering,design, and preliminary construction was sought in the initial amount of $5MM. Additionally, the refinancing included the outstanding balance $4,604,000 of a Note (series of 2000), a portion of which was for the construction of capital improvements to the Township sewage collection & treatment facilities necessitated by the DEP requirement of plant capacity increases from 290,000 to 495,000 gallons per day. The 2012 GO Bond also included $2.8MM of the original $4MM borrowed for collection and capacity at the West Goshen Wastewater Plant (WG-WTP). The outstanding Principal amount remaining is $6,905,000 (expires 2029). Total sewer debt as of 1/1/2018 is $9, The Township confirmed to pledge all monies paid by users of the sewer system, including connection fees and penalties, and all revenues and receipts the Township derived from the sewer system for the operation and maintenance of WCC and the WG-WTP. The Township confirmed the covenant to impose sewer rates sufficient for payment of operating and maintenance expenses of these sewer systems. Residential sewer districts were created as individual neighborhoods connected to the sewer collection system. In most cases, the original user rates were determined by the cost of the project, and therefore the districts had various rates. As the cost of operation and maintenance increased, rates were all increased proportionately without regard to future infrastructure improvements. In 2010, a Sewer Capital Reserve was initiated to accommodate future infrastructure needs as well as future funding for unpredictable and unavoidable equipment failures that occur despite preventative maintenance efforts. Additionally, it was recognized that unfunded regulatory mandates for TMDL phosphorus reduction would place a considerable strain on the sewer fund in the future. In 2014, this funding was memorialized in the Fund Balance Policy adopted by the Board, which stipulates the Reserve shall be funded by an annual appropriation from the Sewer Fund of no less than 12% of budgeted revenue for that budget year. Current Capital Reserve is $2.4MM. If all budgeted 2018 Capital Projects are completed this year, the Reserve will be reduced to $1,667,800. 2

4 Existing Service Areas and Billing Structures Residential Service Areas..private dwellings - 1 EDU per dwelling (5 districts with 4 different rates) Commercial (Non-Standard) Accounts billed on metered water usage Commercial (Non-Standard) Accounts...billed per EDUs Multi-Occupancy Buildings.billed per living unit Multi-Occupancy Buildings billed based on metered water usage Schools (Students/Faculty/Maintenance Personnel)..billed based on occupancy Churches.billed per connection Institutions (patients only)..billed based on occupancy Institutions...billed based on metered water usage Note: Current flat rates are $185, $195, and $205 per quarter depending on the sewer sub-district. Current metered rates (block structure) for the quantity of water used are: $6.40 per 1,000 gallons for the first 200,000 gallons per quarter $5.00 per 1,000 gallons for the next 400,000 gallons per quarter $3.90 per 1,000 gallons for all over 600,000 gallons per quarter 3

5 Residential Service Areas West Goshen Wastewater Treatment Plant (WG-WTP) Western & central portions of the Township & limited number of users in the eastern portion of the Township are served by the Westtown Township owned collection and conveyance system with treatment & disposal at the West Goshen Wastewater Treatment Plant hereinafter referred to as the WG area. (Total of 1,083 Residences) Subdistrict 1 Wedgewood /Westtown Park and associated areas (205 Residences) Subdistrict 2 Coventry Village, High Point, Cobblefield, Westmount Woods, Pleasant Grove, Jefferson at Westtown, Enclave at Pleasant Wood, Westtown Reserve Condos, and associated areas. (804 Residences) Subdistrict 3 Westwood Road, Kerwood Road, and East Pleasant Grove Road (40 Residences) Subdistrict 4 Area west of Wilmington Pike, north of Pleasant Grove Road, south of Cheyney Drive, and Arborview development (34 Residences) Westtown-Chester Creek Wastewater Treatment Plant (WCC) Eastern portions of the Township are served by the Township-owned Westtown-Chester Creek WWTP, hereinafter referred to as the WCC area. (Total of 746 Residences) Subdistrict 10 All properties east of the West Goshen area. 4

6 Commercial (Non-Standard) Accounts Water readings obtained from Aqua PA and billed based on a declining block rate structure of $6.40/1,000 for the first 200,000 gallons treated at the WCC, $5.00/1,000 for the next 400,000 gallons, and $3.90/1,000 for all gallons over 600,000. Westtown Professional Center Piazza JGLR Corporation (Land Rover) Rite Aid/PNC Bank/WAWA Triangle Westtown Associates Kirkwood Fitness/Hockey Club Joyce Realty (Office Block 1 & 2) S&D Real Estate LP Acquire Land (Line Systems) KinderCare/EBS Healthcare/former Malvern Bank WEGO Police Building Sunrise Senior Living TD Bank Westtown Village (Amish Market/Pizza Peddler/Galdetto s/cleaners/nail Salon/Fitness Center) Key Bank Meter Readings from two sewage pump stations at Westtown School are billed based on a declining block rate structure of $6.40/1,000 for the first 200,000 gallons treated at the WCC, $5.00 /1,000 for the next 400,000 gallons, and $3.90 /1,000 for all gallons over 600,000. 5

7 Miscellaneous Non-Standard Accounts Public and Private Schools are billed based on occupancy rates. Teachers and/or maintenance personnel are classified as pupils for billing purposes. Enrollment is calculated separately for months when school is not in session. Public Schools Bayard Rustin High School Institution billed based on Occupancy Rate Penn Wood Elementary School Gaudenzia, Inc. Starkweather Elementary School Stetson Middle School Institution billed on Water Usage (Patients Only) Private Schools Sunrise Senior Living Sts. Simon & Jude Elementary School St. Maximillian Kolbe Elementary School Commercial Establishments billed per prior agreement LAB Westtown LP (Market Place) Churches billed per EDU Multi-Occupancy Buildings billed per Living Unit per Ordinance Advent Lutheran Church (2 EDUs) Westtown Apartment Corp (Jefferson at Westtown) 252 Units Sts. Simon & Jude Catholic Church (3 EDUs) Reserve at Westtown Condos 64 Units (not all occupied) St. Simon & Jude Church Office (3 EDUs) Windsor at Windemere Units St. Maximillian Kolbe Catholic Church (3 EDUs) Westtown Business Center 63 Units Saint Maximillian Kolbe Module (1 EDU) Summit House 426 units Cider Knoll 96 Units 6

8 Miscellaneous Commercial Centers Westtown Professional Center is comprised of 20 units currently billed based on metered readings from Aqua PA CURRENT...actual metered gallons for 2017 was $6.40/1,000 gallons...$1,851/year IF...billing was based on current Ordinance of 1 EDU per Unit.....$16,400/year IF...billing was based on RECOMMENDED Fixed Rate Usage of $16.93/1,000 gallons....$4,904/year Westtown Business Center is comprised of 63 Units currently billed 1 EDU per Unit CURRENT rate of $195.00/quarter. $49,140/year Phase rate of $205.00/quarter $51,660/year Note: Estimated water usage was not available for comparison. These business centers are directly across the street from each other. The existing system of billing emphasizes the disparity between the flat rate and the metered rate. Not only is the system of billing inconsistent with other commercial establishments, but it is inconsistent with the adopted Township Ordinance authorizing sewer rates which states: Ordinance No as amended 12/17/2012: Section Rates for Classifications other than those discharging industrial waste. Customer Classification: L. Multiple Use: In the case of a combination of one or more private dwelling or living units, or with one or more commercial establishments in one building and each thereof having the use of the sewer system through one sewer connection, then each such private dwelling or living unit and each such commercial establishment shall be charged the applicable rates set forth as though each thereof were in a separate structure and as though each thereof had a direct and separate connection to the sewer system. 7

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10 Kirkwood Pump Station Reconstruction Estimated Project Cost $ 70,000 (Net of Grant) Pleasant Grove Pump Station Reconstruction Estimated Project Cost $1,500,000 Pleasant Grove PS Force Main (Oakbourne Bridge to S. Concord) Estimated Project Cost $ 210,000 Pleasant Grove PS Force Main (S. Concord Rd) Estimated Project Cost $1,000,000 Sewer System Infrastructure Repairs Estimated Project Cost $1,470,000 West Goshen Wastewater Treatment Capital Estimated Project Cost $1,336,593 (balance after 2016 payment of $86K) Total $5,586,593 Cash on Hand at 8/15/2018 $1,398,000 Investments $1,000,000 Transfers thru 12/31/2018 $ 120, Tapping Fee Revenue Transfer $ 75,000 Annual Budgeted Capital Reserve Appropriation ( ) $1,080,000 Total...$3,673,000 Deficit $1,913,593 9

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12 Recommendations: As part of the Capital Improvement Program (CIP), the normalization of rates among the five sewer districts was a stated goal to be phased in over a three year period resulting in the elimination of separate districts. The first year increase has been implemented. An ordinance will be prepared to implement phase two effective 1/1/2019. Eliminate the current declining block rate structure. Adjust the metered rate to be equal to the rate per 1,000 gallons for a single family dwelling. At the $205 target rate per quarter, the rate per 1,000 gallons is $ The rate increase would transition over a three year period, the same phasing as for the flat rate increase as follows: Current base rate......$6.40 per 1,000 gallons Proposed flat rate phase 1. $9.91 per 1,000 gallons Proposed flat rate phase 2..$13.41 per 1,000 gallons Proposed flat rate phase 3 $16.93 per 1,000 gallons Adjust the current minimum base rate of $ per quarter to the equivalent rate of a single family dwelling EDU ($205.00). Create two rate categories. Flat Rate Residential (single family dwellings, apartments, condominiums) Metered (all other uses). Shift schools and institutions from occupancy-based billing to metered rate. Shift non-residential flat rate customers to metered rate. 11

13 Effect on Westtown School Current usage billing based on ACTUAL sewage flows using declining block structure: Average gallons/year for the School (Main PS) (2014/2017) is 6,250,500.Average Annual Cost..$28,137 Average gallons/year for the Farm House is 492,248..Average Annual Cost $ 3,150 Total Average Annual Cost.....$31,287 Comparable billing by occupancy per current Ordinance for schools for WCC $40.00 per student/faculty per year (non-residing): 256 Students (boarding)... $20,480 (annual rate doubled for boarding students) 409 Students (not boarding).. $16, Faculty (Unknown Number Reside on Campus) $ 6,720 (assumes 50 faculty & families reside on campus) 30 Facilities Personnel (Estimated)...$ 1,200 AVERAGE ESTIMATED ANNUAL COST: $44,760 Recommended billing using single rate structure (versus declining block) where the single rate is equivalent to residential cost per gallon: Average gallons/year of 6,742,748 $16.93 per 1,000 gallons: AVERAGE ESTIMATED ANNUAL COST: $114,155 12

14 Effect on Churches Per Ordinance , each church is billed an equivalent EDU per connection. West Goshen Districts..$ per quarter Westtown Chester Creek District..$ per quarter Sts. Simon & Jude Church is billed 3 $205 each per quarter...$2,460 per year Church Office/Rectory is billed 3 $205 each per quarter.. $2,460 per year Annual... $4,920 IF.billing was based on ESTIMATED water usage of 886,600 /year at current Ordinance rates.. $5,553 per year IF.billing was based on ESTIMATED water usage of 886,600/year at recommended 2021 rate.... $15,010 per year St. Maximillian Kolbe Church is billed 3 $195 each per quarter....$2,340 per year Church Rectory is billed 1 $195 per quarter... $ 780 per year Annual..$3,120 IF.billing was based on ESTIMATED water usage of 313,400/year at current ordinance rates.. $2,006 per year IF.billing was based on ESTIMATED water usage of 313,400/year at recommended 2021 rates.. $5,306 per year Advent Lutheran Church Church is billed 2 $205 each per quarter..$1,640 per year IF.billing was based on ESTIMATED water usage of 111,000/year at current Ordinance rates $ 710 per year IF. billing was based on ESTIMATED water usage of 111,000/year at recommended 2021 rates.$1,879 per year 13

15 Effect on Institutions In all sewer districts, each hospital, convalescent home and institution is based upon the average number of patients for the quarter immediately preceding the date of each quarterly bill. Current rate per adopted Ordinance is $29.00 per quarter per patient with a minimum charge of $250 per quarter. Gaudenzia House Current billing of 106 patients......$12,296 per year IF.billing was based on ESTIMATED Water Usage of 2,237,000 per year at current Ordinance rates...$12,305 per year IF. billing was based on ESTIMATED Water Usage of 2,237,000 per year at recommended 2021 rates..$37,872 per year Sunrise of Westtown Current billing is based on meter readings provided by AQUA PA 2017 Gallons of approximately 1,023,925 per quarter $21,632 per year IF.billing was based on fixed rate usage (not declining block) at current Ordinance rates..$26,212 per year IF. billing was based on fixed rate usage at recommended 2021 rates..$69,340 per year IF.billing was based on current occupancy (155) (same method as Gaudenzia)...$17,980 per year IF.billing was based on maximum allowable occupancy (200).... $23,200 per year 14

16 Effects on Current Water Based Customers Consumption Thousand Gallons > CURRENT BILL ESTIMATED Bill at recommended 2021 Rate of $16.93/1000 gal Westtown Prof Center , Piazza JGLR Corp , Rite Aid PNC Bank Wawa 1, , , , Westtown Assoc , Quakers Ice Hockey Office Block 1-Joyce Realty Office Block 2-Joyce Realty S&D Real Estate LP Acquire Land (Line Systems) Kindercare , EBS Healthcare TYJ Assoc. (Malverne Bank) WEGO PD Sunrise Senior Living , , , , TD Bank Westtown Village , , , , Willow Financial (KEY Bank) Thornbury Commons Maintenance Fee , ,