HomeMy WebLinkAboutREDmattinglyhixss3RED FILE
MEETING AGENDA
DATE )//i°IT EM #3 .council memoRanOu m
city ofsan Luis ouisp o
Carrie Mattingly, Utilities Directo r
David Hix, Wastewater Division Manager
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SUBJECT :
Red File, Study Session Item SS3 - Airport Area Wastewater Master Pla n
Council Member Carter raised questions regarding costs, financing, and timing for the propose d
infrastructure in the Airport Area Wastewater Master Plan . Following is a summary of thos e
questions and staff responses .
1.Provide status quo costs for Calle Joaquin project vs recommended change costs for Call e
Joaquin and Los Verdes projects .
Project
Calle Joaqui n
Curren t
(A)
Calle Joaqui n
Proposed
(B )
_
Los Verde s
Proposed
Differenc e
(C)
A —(B+C )
Lift Station $ 2,135,000 $1,000,000 $1,647,60 0
Replace Siphon $ 1,400,000 $0 $0
TOTAL $ 3,535,000 $ 1,000,000 $ 1,647,600
$ 887,40 0
* Los Verdes Proposed Project cost includes force main piping
$887,400 represents anticipated savings (avoided cost associated with necessary replacement o f
San Luis Obispo Creek siphon) associated with the recommended master plan update .
The removal of the siphon in San Luis Obispo Creek will eliminate the risk of spills associate d
with creek siphons . The Regional Water Quality Control Board has the authority to impose fine s
of up to $10 per gallon of wastewater spilled into the creek per day. At this time the sipho n
carries approximately 125,000 gallons per day .
2.What percent of the Buckley Road lift station cost is assumed attributable to existin g
development (Los Verdes area) and what percent is assumed attributable to future Airpor t
Area development ?
The Utilities Department is completing a study of its development impact fees associated wit h
the Airport Area. These recommendations will come before Council sometime in the spring an d
will contain the cost percentages assigned to each land use cate or . A roul- estimate is 2 5
percent is attributable to existing development .
"R E C E I V D
FEB2 .-2010
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SLO CITY CLER K
DATE :
TO :
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FROM :
February 2, 2010
±COUNCIL Er-ODD DI Rret~FIN DI Rk11°55-rcrrtryy L ET-FIRE CHIE FMayor and City Council
ATTORNEY CPW DI RCLERK/ORIG 2-POLICE CH F
Katie Lichtig, City Manager
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Red File Study Session Item SS3 — Airport Area Wastewater Master Plan Updat e
February 2, 201 0
Page 2
3.What rate increases will be required to cover the new costs for existing users ?
Multiple factors, of which this project will be a part, go into establishing sewer rates includin g
the funding option chosen for the proposed project . When we get closer to building the projec t
we will incorporate the project costs into our sewer fund analysis and have a better idea at tha t
time how the project might impact rates .
4.What are the assumptions as to how long it will be until the Airport Area develops ?
Development is not anticipated for at least five, possibly ten years . That said, development ca n
heat up with little warning . Our goal is to have the needed infrastructure in place just before ne w
development needs it . We will be partnering with other departments and working with individua l
property owners in preparation for this project including financing options and timing of th e
infrastructure improvements .
5.What is the risk of that the costs of the Buckley Road station to be borne by ne w
development will delay or prevent Airport Area development or cause developers to use septi c
systems as opposed to the City sewer ?
Current City ordinances do not allow the construction of new septic systems within City limits .
Existing systems brought in during annexation are allowed . City code requires that when th e
existing septic system fails, connection to the City's public sewer system is required . Staff i s
discussing alternatives to this code requirement in light of the remote nature of the newl y
annexed areas from existing infrastructure . One idea is to require connection to the public sewe r
system when it is within a certain distance (e .g . 200 or 300 feet) from the property line . O f
course any proposed ordinance changes would be thoroughly vetted through a public process an d
the Council .
The cost of infrastructure is a significant consideration for any development activity . The role it
plays in delaying or preventing development in the Airport Area is somewhat a function of th e
developer's return on investment . In the current economic climate, infrastructure costs appear t o
be of far greater concern to developers than in the past . City policy is clear that new developmen t
should pay its fair share of infrastructure improvements . The proposed Airport Area Wastewate r
Master Plan update identifies the most cost-effective alternative for providing services to thi s
area .