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HomeMy WebLinkAboutWTR2700489(3) W-489 WEST HILL RESERVOIR WTR-'l 1 Engineering RepLrt on Joint Water System Faci-Jties �Lq S`FaQaGe BEGINNING OF FILE FILE TITLE W- y 4w9 Ij leS`r U kleseP% 0,11 � oN J o i tV�' Wai'eksy/S'�/� �aci � i +ieS City of Renton King County Water Districts No. 14 and 63 Engineering Report on WEST HILL JOINT WATER SYSTEM FACILITIES (Amendment to Comprehensive Water System Plan, October 1976) RH2 ENGINEERING, P.S. March, 1981 TABLE OF CONTENTS SecLon I - Introduction . . . . . . . . . . . . . . 1 Purpose and Scope . . . . . . . . . . . . . . . 1 Summary and Conclusions . . . . . . . . . . . . . . . . 2 Section 11 - Service Area Water Demands . . . . . . . . . . . . . . 3 Population . . . . . . . . . . . . . . . . . . . . . . . . 4 1980 Demands . . . . . . . 4 Future Demands . . . . . . . . . . . . . . . . . . . . . 7 Section III - Water Supply, Storage and Transmission Plans . . . . 10 Joint Facilities - Renton Water Supply . . . . . . . . . . . . . . 10 Joint Facilities - Seattle Water Supply . . . . . . . . . . . . . 12 Joint Facilities - Recommended Plan . . . 12 Future Service - Adjacent Purveyors . . . . . . . . . . . . . 16 Alternate Renton West Hill System Improvements . . 17 Section IV - Financing and Implementation . . . . . . . . . . . . . . 17 Financing Plan . . . . . . . . . . . . . . . . . . . . . 20 Joint Service Contract . . . . . . . . . . . . . . . . . . . . . 21 Water Use Charge . . . . . . . . . . . . . . . . . . . . . . 23 Project Implementation . . . . . . . . . . . 31 I tST OF TABLES Table 1: 1980 Water Supply from City of Seattle . . . . . . . . . . . 5 " 2: 1980 Peak Day Water Demands . . . . . . . . . . . . . . 6 " 3: Projected Water Demand for Year 2000 8 " 4: West Hill Joint Facilities - Proposed Design Criteria 9 " 5: Joint Facilities - Estimated Project Capital Cost . . . . . . . 13 " 6: It , Facilities - Estimated Annual Operating Costs . . . . 14 " 7: City of Renton Service Area - Independent Facilities Estimated Fro;ect Capital Cost . . . . . . . . . . . . . . . 18 " 8: City of Renton Service Area - Independent Facilities Estimated Annual Operating Costs . . . . . . . . . . . . 19 9: Joint Facilities - Proposed Financing Plan. . . . . . . . . . 22 10: City of Renton - Current Cost of Water Supply and Transmission . . . . 24 11: city of Renton - Water Supply and Transmission Cost including Joint Facilities . . . . . . 26 " 12: Proposed Basis for J^int Facilities - Capital Cost User Charge . . . . . . . . . . . . . . . . . 28 " 13: Comparison of City of Renton Annual Costs Joint Facilities Versus Independent Facilities . . . . . . . 30 r LIST OF FIGURES Figure 1: Study Area Boundary . Follows Page3 " 2: 1980 Peak Day Demands . . . . . . _ . . . . . 6 " 3: 2000 Protected Peak Day Demands . . . . . . . . . . . . . . 6 " 4: Regional Water Facilities - Renton Water Supply 10 " 5: Regional Water Facilities - Seattle Water Supply . . . . . . . . 12 6: Renton Service Area Water Facilities - Renton Water Supply . . . 17 SECTION I INTRODUCTION This report presents the results of a Joint Use Facilities Study for King County Water District 014 and 63 and the city of Renton West Pill service areas. RN2 Engineering was authorized to pruc..d with the study by the city of Renton Council on October 24, 1980, acting on behalf of the city and King County Water Districts 14 and 63. This report is prepared as an addend" to the "Comprehensive Water System Plan" prepared by Narstad Associates, Inc. in October 1976 on behalf of King County Water Districts No. 14, 63, 69, 77, 86 and the city of Renton. PURPOSE AND SCOPE The primary objectives of the study were to recommend improvements for: (1) A joint use storage facility so that each system can minimize costs and avoid duplication of storage facilities, and (2) supply to each system from the city of Renton wells in order that representatives of each system can evaluate the desirability of such a supply scheme. The scope of the study has included the following elements: 1. Review of existing distribution system improvements as they relate to joint use facilities requirements. 2. Determination of 1980 water system demands. 3. Review of projected growth and determination of future water system demands. 4. Identification and evaluation of water transmission and storage facilities based on alternate city of Renton water supply locations. -1- S. Identification and evaluation of water transmission and storage facilities based on alternate city of Seattle water supply locations. 6. Recommendation of a joint use facility plan based on alternative evaluations. 7. Preparation of a proposed financing and implementation plan. The study results and recommendations are summarized below. SUMMARY AND CONCLUSIONS The study recommends implementation of a plan of improvements provid- ing for the supply of city water ti the participants study area. A 1?00 gpm booster station, 1.0 million gallon reservoir and system of 12' transmission mains will meet projected peak water demands and provide up to 2500 gpm for fire flow. The recommended plan is less costly than alternate plan using Seattle water and has other significant advantages. The improvements should be owned and operated by the city of Renton. Financing can be accomplished by revenue bonds and a state Referendum 27 Grant. Implementation will require agreement to a contract between the city of Renton and Water Districts 14 and 63. The contract should include the following elements: 1. Initial term equal to financing term and renewal options. 2. Water use charge for operation and maintenance costs with provisions for annual adjustments. 3. Water use charge for capital costs of a fixed rate terminating when bonds are repaid. -2- An initial user charge of $0.19 per 100 cubic feet for operation and maintenance costs and $0.167 pe 00 cubic feet for capital costs will provide an equi.able distribution of the project casts. The annual cost to the city of Renton Will be approximately $25,000 to $32,000 less than the annual coat of independent improvements. The city of Renton could sell water to other adjacent water purveyors and increase this savings. SECTION 11 SERVICE AREA WATER DEMANDS The service area boundary considered in this study for the planniog of joint water supply, storage, and transmission facilities is presented in Figure 1. The area includes the current and anticipated service areas of the three study participants. The service area boundaries of the three participants as well as the adjacent water purveyors, King County Water Districts No. 69, 77, and 88 are also shown in Figure 1. The city of Renton service area included within the study area boundary differs from the area identified in the 1976 Comprehensive Water Svstem Plan. The portion of the Renton West Hill service area located south of Sunset Boulevard has been excluded from the study area boundary. A major multi- family development (Earlington Woods) is currently underway in this area and service will be provided from the city's wells and the pressure zone servicing the central business, the 196 pressure zone. No water demands will be placed on the West Hill Joint Use Facilities to service this development. -3- � r o� REN70N Water Purveyor Ey 8$ Service Area boundary mi 14 Water District No. r r, d • Study Area Boundary �rr• . r� 77` n- r, Figure t j Study Area Boundary x� POPULATION Land use and zoning within the study area has been reviewed and re- vised estimates of current and future population have been prepared. These populations have assumed a 90% saturation development at proposed land use densities occurring in the year 2000. The resultitg population estimates are presented below: Service Area 1980 200C City of Renton 2,700 .1,400 King County Water District 14 1,200 1,300 King County Water District 63 2,500 2,6•"0 Total Study Area 6,400 7,300 1900 DEMANDS Records of consumption and peak summer demands for each participant's supply meter were obtained from the city of Seattle. 'fable 1 presents tabulation of the monthly supply during 1980 to each of the participants' service area. The daily per capita demands ranged from 73 to 85 gallons with an average of 78 gallons. Total annual average demand was 345 gallons per minute. Table 2 presents a summary of the 1980 peak day demands based on consumption period of 12 midnight to midnight the following night. The peak day was determined to be August 10, 1990. The tabulation presents the peak day demand, the peak hour demand, and the ratio of these peak day demands to the average annual demand for each participant and the accumulated total of the three paiticipants. Figure 2 presents graphically the daily variations in rate of water demand on August 10, 1980. -4- TABLE 1: 1990 WATER SUPPLY FROM CITY OF SEATTLE (in hundreds of cubic feet) Service Area Month Renton KCWD 14 KCWD 63 Total January 6,997 3,206 6,795 16,998 February 7,049 6,565 7,675 21.289 March 6,949 3,002 6,937 16,888 April 7,432 3,015 A,625 17,072 May 6,920 4,048 7,991 18,959 June 7,559 4,326 8,252 20,137 July 8,449 4,495 10,030 22,980 August 10,547 7,471 16,517 34,535 September 9,268 3,007 5,029 17,304 October 7,177 3,667 6,821 17,665 November 9,194 3,493 6,795 18,482 December 8,982 3,736 7,683 20,401 TOTAL 95,523 50,031 97,156 242,710 1980 Population 2,700 1,200 2,500 6,400 Average Water Demand 73 85 $0 78 (gallons per capita per day) Average Water Demand 136 71 138 345 (gallons per minute) TABLE 2: 1980 PEAK DAY WATER ➢EMAN➢S FROM CITY OF SEATTLE RECORDS (August 10, 1980) Renton KCWD 14 KCWD 63 _ Total Total Water Demand 408,170 171,250 439,093 1,018,513 (24 bra. beginning at midnight) Average Peak Day Demand 283 119 305 707 (gallons per minute) Ratio to Average Annual 2.1 1.7 2.2 2.0 Demand Peak Hour Demaro 552 262 714 1,482 (gallons per minute) Ration to Average 4.1 3.7 5.2 4.3 Annual Demand -6- 200o 2000 7Total -- ri 1500 f ap" O a 1500 z 0 Total— z ,OODZ I C "p — — —— LL 1000 Boson A8 5O0 „�/\ ': / f / Soo �.;........ .r: Renton 1 : W-D.63 j D BaM W.D. 4 . M N o `--- - _.W.D.14 BPM p M __—_--_.____ HOUR OF DAY 6AM N 6PM M HOUR OF DAY I Figure 2 Figure 3 1980 - Peak 2000 - Projected i Day Demands Peak Day Demands F1'Tl1RE DEMANDS Each participant's projected demands for the year 2000 are presented in Table 3. The projections have assumed that the average annual demand per capita will increase to 100 gallons by the year 2000, and peak day characteristics for each of the participants will be similar to 1980. 1, lure 3 presents graphically the anticipated variations in demands dur- ing the peak day in the year 2000. Table 4 presents proposed design cri- teria for the West Hill Joint Facilities based on these projected demands. The criteria established a proposed supply and storage capacity needed to meet the projected demands. Minimum water surface elevations are estab- lished for the increments of storage in orde• 'o provide adequate pressure at the highest elevations within each of the participants' service area. Future demands of the adjacent water purveyors included within the 1976 Comprehensive Water System Plan are of interest in exau.ining the feasibiiity of providing future service to these purveyors from the pro- posed joint facilities. A detail.d analysis has not been made of the land use or current populations of these three purveyors. However, based on population data presented in the 1976 report and the assumption that peak water demands are simil,, to the combined existing demanns of the three participants, the following year 2000 water demands were determined. Population . . . . . . . . . . . . . . . . . . . . . 4,100 Average Annual Demand - gallons/capita/day 100 Average Annual Demand - gallops pei minute . . . . 285 Maximum Day Demend - gallons per micute . . 583 Peak Hour Demand - gallons per minute . . . . . . . 1,224 The joint use facility modifications required to meet these additional water demands will also be discussed in this report. -7- TABLE 3: PROJECTED WATER DEMANDS FOR YEAR 2000 (90% of Saturation Development) Renton RCWD 14 _ RCWD 63_ Total Fcpulalion 3400 1300 2600 7300 Average Annual Demand 100 100 100 100 (gallons/capita/day) Average Annual Demand 236 90 181 507 (gallons per minute) Peak Day Demand 491 151 400 1042 (gallons per minute) Peak Hour Demand 956 307 92. 2165 (gallons per minute) _g_ TABLE 4: WEST HILL JOINT FACILITIES Proposed Design Criteria Design Population 7,300 Average Annual Water Demand Gallons per Capita 100 Gallons per Minute 50; Peak Day Demand Gallons per Minute 1,042 Peak Hour Demand Gallons per Minute 2,165 Fire Flow Gallons per Minute 2,500 Proposed Water Supply Capacity Gallons per Minute 1,200 Proposed Storage Capacity Equalizing in Gallons 245,000 Fire Reserve in Gallons 300,000 Total 545,000 Minimum Storage Water Elevation Domestic Demands 47,9.5 Domestic 1 Fire Demandr 460.5 Storage Overflow Elevation 495.0 _q_ SECTION III WATER SUPPLY, STORAGE AND TRANSMISSION PLANS This section presents alternative plans for the construction of water supply, storage and transmission facilities required to wet the projected demands of the three participants. While the principal objective of this report is the investigation of joint use facilities using the city of Renton supply, we have also examined an alternative based on supply from the city of Seattle. These alternatives are presented below with our recommendations. Additional requirements for service to adjacent purveyors ate also dicussed. The last alternative presented is extension of the city of Renton water system to supply its West Hill service area independent of other purveyors. JOINT FACILITIES - RENTON WATER SUPPLY This plan proposes the supply of Renton water from its 196 service zone. The proposed plan of improvements is presented in Figure 4. The improvements include a booster station to pump from Renton'c 196 service zone to the proposed 495 zone established by the overflow elevation of the proposed joint storage facility. Several locations were examined for the booster station and connecting transmission main to the city's trans- mission pipeline on Rainier Avenue. The location shown in Figure 4 was determined to be the most economical and practical. Acquisition of pro- perty for the booster station will be required. Two sites were investigated for the location of a joint storage fa- cility. The first site, owned by the City of Renton, -a located at 84th Avenue South at the approximate intersection of South 128th Street. This site has an approximate ground elevation of 387. In order to provide -10- Trans eh' aFn m ']Ili•. '` / s f 7F } f S ► ar ' y M,*n CohneCtl Nancy. LEGEND ,' •{ ',� ! +. r ' j' • — - EXISTING WATERRlAIN _ / 4/rj NEW WATERMAIN 6 SIZE •N 1 _ A BOOSTER STAT-ON to rd ' _ /C 1; f • METERED CONNECTION .• UNMETERED CONNECTIO i f� _ • r '' ,t 1 \. � t N • .� � S10RAGE RESERVOIR _ a ♦ - - Figure 4 Regional Water Facilities � ' ,�. :,y � � �:� / i. : •./ . '; .``�` Renton Water SuPPIY adequate storage -t a proper elevation at this site, a 1.7 mg reservoir (standpipe) with a 108-foot water depth is required. An elevated tank at this site is substantially higher in cost than a standpipe. The recommended storage site is located on property owned by the Renton School District at the intersection of 80th Avenue South and South 1:4th ltreet. The ground elevation a, this site is approximately 430. Storage required would be a,,_ imately 1,000,000 gallons with a water depth of 65 feet. The reduced volume and height of the reservoir signifi- cantly decreases its cost relative to the alternative site. The reservoir in this location will assure a more stable service pressure for normal domestic and irrigation use of the adjacent Thompson School and Dimmit Junior High School. The reservoir and large transmission main serving the reservoir will assure proper fire flow is available to both schools. Transmission mains have been sized using reasonable velocities during conditions of expected demands and to assure adequate pressure at the con- nections to each participants' system. Metered connections have been pro- vided to Water Districts 14 and 63, anc unmetered connection to the city's West Hill distribution system based on the assumption that the city will own and operate the ioint facilities. :he plan further proposes to main- twin an existing metered connection to the city of Seattle water supply at 84th Aveoue South using the Water District 14, 8" main to convey water from the city of Seattle on an emergency basis to the joint facilities. Estimated project capital costs and ope-ation and maintenance costs are presenLed under the discussion of the recommended plan. -]1- JOINT FACILITIES - SEATTLE WATER SUPPLY A plan for joint facilities supplied by the city of Seattle is pre- sorted in Figure S. The plan indicates a new, metered connection to the city of Seattle Cedar River Pipeline at 84th Avenue South. A booster sta- tion is proposed at this location incorporating facilities for controlling the rate of supply. The booster station is necessary to meet the hydraulic requirements of service area during all pressure conditions on the Cedar River Pipeline at the point of connection. Flow control will be itilitzed to maintain peak supply rates below 130% of the average supply during the peak days to avoid demand charges. The storage facilities for this alternative are identical to those proposed under the Renton supply alternative. Transmission mains have been sized using the same criteria as in the Renton supply alternative. Metered connections are proposed to each of the distribution systems. Estimated capital, operation and maintenance costs are presented for each alternative. JOINT FACILITIES-RECOKKENDED PLAN The estimated project cost of each of the alternative joint facility plans is presented in Table 5. These estima es are based on current costs for similar work and are subject to revision based on the completion of a preliminary design. The estimated costs of the joint facilities with Renton supply are slightly less than those with Seattle supply. Table 6 presents an estimate of the joint facilities operation and maintenance costs in the year 1981 and 2000. These estimates are based on current (1981) costs _or labor, materials, and services. No attempt has been made t evaluate increases in cost due to inflation. The 1981 -12- 2U� ( pi. New Itttetered Connection to Seattle Supply Main Seattle Cedar^ P s� y s� `t2� R ~ .�ivar- . t�PIY Main KD l4 Meter " 19 Uf • 1 j 130d er,Stt�tiot .- with " Coon 01 -Cprtnrre�Can � �; Rated (.Ap9eity !° LEGEND r �.,, '�' ✓Y r' LS iNEW WATERNAIN&SITE •+ �/' ;> ' { '•' �' rvdir. " BOOSTER STATION • � � •u :• y w METERED CONNECTION F Jon ectibn •- h�F� ♦ � �� _ • STORAGE RESERVOIR A. t 1 . '•, .j s_ �'' . ♦ fi'4 . Figure 5 Regional Water Facilities ' ' ` : Seattle Water Supply M7 TABLE 5: JOINT FACILITIES ESTIMATED PROJECT CAPITAL COST Renton Water Supply Seattle Water Supply Unit Price 2uaratity Amount (QuanLLU Amount A. Transmission Mains 1. 12" D.I. Main in place $ 25/LF 8700 LF $ 217.500 9900 LF $ 247,500 2. 12" Gate Valves in place 1,600/EA 9 EA 14,400 10 EA 16,000 3. Surface Restoration 3/FT 1700 LF 26,100 9900 LF 29,700 4. Metering & Connections 10,000/EA 3 EA 30,000 6 EA 60,000 5. Connections Only 1,500/EA 2 EA 3,000 -0- -0- 6. Renton Ave. St. Crossing -0- -0- 1 EA 5,000 Subtotal $ 291,000 $ 358,200 B. Booster Station 1. Site Work and Piping L.S $ 10,000 L.S. $ 10,000 2. Structure L.S. 49,000 L.S. 36,000 3. Pumps and Mitors in Place Renton 3 @ 600 Rpm, 60 HP L.S. 55,000 -0- -0- Seattle 2 @ 1200 gpm, 25 HP -0- -0- L.S. 25,000 4. Mechanical L.S. 15,000 L.S. 20,000 5. Electrical L.S. 25,000 L.S. 15,000 6. Telemetry and Control System L.S. 17,000 L.S. 22,000 Subtotal $ 170,000 $ 128,000 C. StorsAe reservoir 1.0 MG, 52'/, 65' Height 1. Foundation, Sitevork and Piping L.S. $ 70,000 L.S. $ 70,000 2. Steel Reservoir in Place L.S. 235,000 L.S. 235,030 3, Painting L.S. 45,000 L.S. 4S,000 Subtotal $ 350,000 $ 350,000 Subtotal Construction Cost $ 811,000 $ 836,200 Sales Tax and Contingencies 15Y- 121,650 125,450 1ota1 Construction Cost $ 932,650 $ 961,650 D. Indirect Coat Allowance 20X+ 187,350 $ 192.350 E. Total Project Cost $1,120,000 $1,154,000 1981 Present Worth) -13- TABLE 6: JOINT FACILITIES Estimated Annual Operating Costs Renton taster Seattle Water Supply Supply 1981 2000 1981 2000 1. Purchase of Seattle Water -0- -0- $ 51,500 $75,500 ($0.212 per 100 CF) 2. Cost to Supply Renton Water $41,300 $60,600 -0- -0- to the Joint Facilities ($0.17 •)er 100 C0 3. Labor 7,800 7,800 9,500 9,500 4. Power 8,800 12,900 1,200 1,800 5. Repairs and Replacements 7,300 7,300 6,400 6,400 6. Other 1,200 1,200 1.200 1,200 Total S 66,400 $89.800 $ 69,800 $94.400 Present Worth 1981 (8%) $700,200 $136,000 -14- present worth of the operation and maintenance costs based on 8% interest rate, is $700,200 for the Renton water supply alternative and $736,000 for the Seattle water supply alternative. Economic comparison of the two alternative joint facility plans results in a 1981 present worth of the Renton supply alternative of $1,920,200 and the Seattle water supply alternative of $1,890,o00. There are several advantages that are associated with the Renton Supply alternative. These are enumerated below. 1. The city of Renton's desire to provide supply to all city residents from the city's sources. 2. The city of Renton's supply maintains high quality during all periods of the year, and adequate quantity is available in the Cedar River aquifer to meet the foreseeable needs of the city including Water District's 16 and 63. 3. Water from the Renton supply is less aggressive than the I city of Seattle's, resulting in less corrosion of steel materials and leaching of cement and asbestos fibers in asbestos cement water mains. 4. The city of Renton supplies are groundwater sources and therefore are less subject to future treatment requirements Than the surface water supplies of the city of Seattle. These advantages, together with a slightly lower total cost ($69,800) result in the recommendation to the participants that the joint facilities plan using the city of Renton water supply be constructed. -15- FUTURE SERVICE.=ADJACENT PURVEYORS We have examined the recommended joint facilities plan to determine the capability to meet the projected demands of King County Water Districts 69, 77, and 88. The capacity of the booster station supplying the joint facilities must bb_ increased from 1200 to 1800 gpm to provide supply to the adjacent purveyors. An additional booster station with a normal supply capacity of 600 gpm with fire pump capabilities of 2000 gpm will be re- quired at the site of the proposed storage reservoir. This booster sta- tion, in combination with the existing elevated storage of King County Water District 69 and 71, will provide adequate capacity to meet peak demands and fire flow requirements of the adjacent purvevors. Service to the adjacent districts can be accomplished without reducing the cap- ability of maeting the demands of the three participants. Additional transmission facilities will be required from the storage site to the i adjacent district's systems. An examination of the transmissi an system of the recommended plan under conditions of service to the adjacent pur- veyors indicates ro measurable adverse affect on service pressures at the point of connection to the three participants' distribution systems. In summary, the recommended joint use plan can accommodate the future water demands of King County Water Districts 69, 77, and 8E with the addition of improvements discussed. -16- ALTERNATE RENTON WEST HILL SYSTEM IMPROVEMENTS A plan of improvements to meet the city's West Hill service area demands has been developed as a basis for the city to compare its partici- pation in the joint facilities. Further, this alternative is a plan which can be implemented should the three participants fail to proceed with the recommended joint facilities. The plan of improvements is set forth in Figure 6. The improvements are similar to those of the recommended plan except that the storage reservoir is proposed to be located on the city's existing site. This site is preferred as it is located within Renton's service area and at the point of highest service elevation. The proposed storage reservoir will have a volume of approximately 870,003 gallons with an overflow elevation of 480. Water depth of the reservoir would be apporxi- mately 93 feet with an overall height of approximately 98 feet. The booster station will he at the same location as the recommended joint facilities plan. Rated capacity of the booster station will be 600 gpm. Transmission mains 12" in size are proposed. The estimated cost of improvement to the city's West Hill service area is presented in Table 7. Operation and maintenance costs for these facilities are presented in Table 8. SECTION IV FINANCING AND IMPLEMENTATION A discussion of the proposed financing plan, contractural relation- ship between the three participants, cost to be borne by each of the parti- cipants, the method of recovery of these costs and a preliminary schedule of steps necessary to the implementation of the project is presented here. These proposa,s are suggestions for a method of proceeding with this joint -17- -Connection to Existing -* •"�• "'" ' on TransmissioQ Men14 t r. Renton Distribytion - 4. System Conrw..tions ion_ LEGEND r r 4 R} yrx^'�r. -�i�`t. ,� j f ' �♦ —'q— EXISTING WATERMAir: e vyF. ..T. '•1 J �12 NEW WATERMAIN& SIZF IJ 1 r k' A BOOSTER STATION �_ •�iA } IYI �, STORAGE RESERVOIR ,r ky. ' { I TAT. +a a (:'ii UNME T FRED CONNECTION fife•-( �'f• ( .!J ! I LZ Figure 6 } " Renton Service Area �. Water Facilities �� � � Renton Water Supply TABLE 7: CITY OF RERTOR SERVICE AREA Independent Facilities Estimated Project Capital Cost A. Transmission Mains 1. 12" D.I. Main in Place 3900 LF @ $25 $ 97,500 2. 12" Gate Valves in Place 4 ea @ $1600 6,400 3. Surface Restoration 3900 LF @ $3 11.700 4. System Connections 3 ea @ $1500 4,500 Subtotal $120,100 B. Booster Station I. Sitework and Piping $ 10,000 2. Pump House 36,000 3. Pump and Motors in Place 2 ea @ 600 gpm, 60 HP 38,000 4. Mechanical 15,000 5. Electrical. 20,000 6. Telemetry and Control System (local) 17,000 Subtotal $136,000 C. Storage Reservoir 0.87 MG, 40'0, 93' height 1. Foundation, Sitework and Piping $ 72,000 2. Steel Standpipe in Place 211,000 3. Painting 45,000 Subtotal $328,000 Subtotal Construction Cost $584,100 Sales Tax and Contingencies is%. 87,600 Total Construction Cost $671,700 D. Indirect Costs Allowance 20% $134,300 E. Total Project Cost $806,000 -18- TABLE 8: CITY OF RENTON SERVICE AREA Independent Facilities Estimated Annual Operating Costs 1981 _ 2000 1. Cost of Supply Renton Water to Vest Bill Boaster Station $ 16,200 $28,200 2. Labor 7,800 7,800 3. Power 3,500 6,100 4. Repairs and Replacements 6.500 6,500 S. Other 1,200 1,200 Total $ 35,200 $49,300 Present Worth 1981 (8%) $378,400 -19- project. Special requirements of each participant or other participant constraints my require modification of the proposal or the development of alternate "thods for the project implementation. It should be pointed out that the proposed project c 'fers a substantial improvement in water service to the study area and in particular provides significant benefits by providing adequate storage and transmission capabilities to meet fire flow demands. While the participants' motivation in participating these joint facilities may be the current demand charge by the city o: Seattle, the substantial benefits the project provides to water service in the study area should be carefully considered in the decision of participation and implementation of this project. FINANCING PLAN We propose that the joint facilities be owned and operated by the city of Renton. The city has the credit rating and the financial capa- bility to provide the most economic cost of financing. Further, the city of Renton has the trained staff, equipment and resources for opera- tior. of the facilities proposed and currently operates a number of facili- ties of identical complexity and size. Concurrent with this study, the city of Renton, on behalf of the participants, has made preliminary application to the Department of Social and Health Services for a Referendum 21 grant to fisist in the financing of the project. This preliminary application has been approved and a request to submit a final grant application has beeen received. The fin- ancing plan anticipates that the city will be successful in obtaining a state grant in the amount of 40% of the direct construction cost. The facilities proposed are of a regional character and have the capability -20- for expanded service to adjacent purveyors. These facilities generally receive a high priority rating under the Department of Social and Health Services rating system and usually are fu:ded. The balance of the project cost can be financed by revenue bonds from the city of Renton. We hsve assumed that the revenue bonds will be serial bonds issued for a period of 30 years with a coupon interest rate of _0%. We further anticipate that a financing cost of approximately 3% of the amount of the bond issue will be required. Table 9 prevents a summary of the pro- posed financing plan. The state grant is comp-',,d to be $354,000 with the balance of the project costs to be financed, of $766,000, requiring a revenue bond issue in the amount of $790,000. The average annual principal and interest repayment requirements for the revenue bonds are computed to be $87,500. JOINT SERVICE CONTRACT We propose that a relatively simple contract be entered into between the city and Water Districts No. 14 and 63. The contract would provide for service by the city of Renton to King County Water District No. 14 and 63 for an initial contract period of 30 years (life of the revenue bond issue) and with provisions for contract extensions. The contract would provide for service by the city of Renton from the joint facilities based on a service charge per hundred cubic feet of water delivered to each participant from the joint facilities. The service charge would be composed of two parts. The first part would be the charge for operation and maintenance costs of the city related to the supply of water through Renton's existing system and the joint facilities. This charge would be established initially in the contract and subject to annual revision based on a prescribed formula. -21- TABLE 9: JOINT FACILITIES Proposed Financing Plan Construction Cost $885,000 Less State Crant @ 40% Of Construction host $354,000 Local Share of Construction cost $531,OOo Washington State Sales Tax 5.4% $ 47,800 Indirect Costs $187,200 Total Local Capital Cost $766,000 Financing Cos[s $ 24,000 Amount of Revenue Bonds $790,oOO Annual Revenue Bonds Pr. ncipal & Interest M years Serial Bonds $ 87,500 at 10% Interest) -22- The second part of he charge would be a rate per one hundred cubic feet representing a partial recovery of the annual principal and interest coat of the city of Renton required to repay the bonds issued for financ- ing of the joint facilities. This charge would be fixed initially and remain constant over the life of the revenue bonds. At such time as the revenue bonds were repaid, this charge would be discontinued. A prelimi- nary determination of these two water use charges is presented below. WATER USE CN_4RCE Operation and Maintenance The charge established for recovery by the city of Renton of its operation and maintenance costs must include the city's current cost of operating and maintaining its water supply and transmission system, including current financing costs associated with these facilities, and the cost of operation and maintenance of the joint facilities. We propose that this operation and maintenance charge be established based on the total cost of the items identified relating to the total Renton water system consumption. We believe this is reasonable since the facilities will be an integral part of Renton's total water supply system. Table 10 illustrates a determination of the city's current cost of wvater supply and transmission. This tabulation is eased on information presented in the recently completed "Water and Sewer Rate Study" for the city of Renton by Peat, Marwick, Mitchell and Co. , December 1980. The tabulation is based on the 1981 estimates presented in this report. The items of post include operation and maintenance costs associated with production and transmission, a -23- TABLE 10: CITY OF RENTON CURRENT COST OF WATER SDPPLY AND TRANSMISSION (Based on "Water and Sever Rate Study," City of Renton. December 1980, 1981 Estimate) Water Consumption, Cubic Feet x 100 2,506,000 (From Table IV-2) Water Supply 6 Transmisssion Coats (From Table V-3) 1. Production and Transmission $285,641 2. Allocated General and Administration $ 48,044 Subtotal $333,685 3. Less 1981 Coats of Seattle Water for Renton West Rill Service ($ 30,000) Subtotal $303,685 4. Allocated Existing Debt Service without Coverage (42%) $107,048 5. Allocated State Excise Tax $ 15,338 6. Total Water Supply and Transmission Cost $426,071 7. Total Watt: Supply and Transmissior, Cost Per 100 CF $ 0.17 -24- prorated allocation of general and a4ministrative cost, an allocation of existing debt service to supply and transmission facilities and a computed amount of state excise tax related to these items. Deducted from these costs are current estimated 1981 costs of the city of Renton for purchase of water supply from the city of Seattle. These costa are based on the city of Seattle current water rates including the demand charge for the West Hill in 1981. The total 1981 estimated water supply and transmission cost is $426,071. Based on so estimated consumption for 1981 of 250,600,000 cubic feet, the total water supply and transmission cost per 100 cubic feet is $0.17. Table 11 illustrates a determination of the cost of Renton water supply and transmission including the operation of the joint facilities. This determination is based on 1981 operation estimates. The existing city-wide water supply and transmission costs are added to projected costa for supply to the joint facilities and the operation and maintenance costs fee the joint facilities, to arrive at a mew total water supply and transmission cost of $492.431. The additional consumption of Water Districts 14 and 63 raises the total 1981 consumption to 265,300,000 cubic feet. The total water supply and transmission costs per 100 cubic feet is determined to be $0.19. We propose that this rate be established as the rate to be charged for operation and maintenance to Water Districts 14 and 63 per 100 cubic feet of water obtained through the joint facilities. This rate would apply if the facilities were in operation in 1981. Adjustment to this rate would be made in the following manner -25- TABLE I1: COST OF RENTON WATER SUPPLY AND TRANSMISSION INCLUDING OPERATION OF JOIN FACILITIES (Based on 1981 Estimate) Existing Water Consumption CF x 100 2,506,000 Additional Watt; Consumtion Water Distrusts 14 and 63 CF x 100 141,000 Total Water Consumption CF x !00 2,653,000 Existing Water Supply and Transmission Cost $426,071 Addition to Existing Costs for Supply to West Rill $ 41,260 Additi- l Operation and Maintenance Costs for West Hill Facilities $ 25,100 Total Water Supply and Transmission Cost $492,431 Total Water Supply and Transmission Cost Per 100 CF $ 0.186 Use $ 0.19 -26- The operation and maintenance rate of $0.19 per 100 cubic feet would be based on the city of Renton past year (1980) water system and operation and maintenance cost (exclusive of principal and interest on debt service, depreciation and city imposed taxes) divided by the total water consumption for the same period. Prior to the 1st of March, 1982, the city of Rent.on's 1981 costs woulJ be determined .n a similar manner. The percentage increase in the cost per 100 cubic feet of water consumption would be applied to the operation and maintenance rate and the rate adjusted beginning March 1st of 1982. Annual adjustment: would occur in a similar manner during each year in which the contract is in force. Capital Recovery The basis for recovery to the city of Renton of a portion of the capital costs of the joint facilities is presented in Table 12. The proposal is based on Water Districts 14 and 63 being responsible for the incremental increase in the city of Renton's cost between Rerton's estimated cost for independent facilities to service its West Rill service area versus the cost of joint facilities. State grant funds are then applied proportionately to each entity's cost. The results of this proposal indicate an annual cost of $24,500 to be borne by Water Districts 14 and 63, which, based on 1981 antici- pated water use results in a user rate of $0.167 per 100 cubic feet. Since the city of Renton is obligated to the major share of the cost of these facilities, it is proposed that this rate remain constant through the life of the revenue bonds issued to finance -27- TABLE 12: PROPOSED BASIS FOR JOINT FACILITIES CAPITAL COST USER CHARGE Total Renton Water Districts Cost Cost 14 and 63 Cost Construction Cost $885,000 $637,300 $247,700 Less State Grant 40% of Construction Cost $354,000 $254,900 $ 99,100 Local Share of Construction Cost $.531,000 $382,400 $148,600 Washington State Sales Tax 5.4% $ 47,800 $ 34,400 $ 13,400 Total Local Share of Construction Cost $578,800 $416,800 $162,000 Indirect Cost $187,200 $134,800 $ 5_,400 Total Capital Cost $766,000 $551,600 $214,400 Financing Cost $ 24,000 $ 17,300 16,700 Total Amount of Revenue Bonds $790,000 $568,900 $221,100 Annual Bond Principal and Interest (30 Year Serial Bond at 10% Interest) $ 87,500 $ 63,000 $ 24,500 Water Districts 14 and 63 User Charge Based on 1981 Consumption at 14,700,000 Cubic Feet $0.167/100 CF _Y8_ the facilities. Increases in water use by Water Districts 14 and 63 would increase the income to the city of Renton and further defray its share of financing the improvements. Further, it is pro- posed that the city of Renton is free to negotiate contracts with adjacent districts for the use of these facilities subject to no adverse affects to service to Water Districts No. 14 and 63. Combined User Charge The initial combined user rate to King County Water Districts 14 and 63 would be $0.357 per 100 cubic feet. Based on estimated 1981 water consumption of 14,700,000 gallons from the joint use facilities, the annual cost would be $52,479. The purchase of a similar quantity of water from the city of Seattle, including the calculated 1981 demand charge for King County Water Districts 14 and 63, will amount to an annual 1981 cost of $47,486. The differ- ence in annual cost is a small amount relative to the significant additional benefits to be derived from joint improvements. Further, the proposed contract establishes a fixed manner in which the charges will be computed and assures an equitable charge to Water Districts 14 and 63 and an equitable recovery of expenses to the city of Renton. The city of Renton is bearing the major portion of the cost under the proposed contract and user charge relationship discussed above. It is appropriate to examine the city of Renton's alterna- tives as compared to participating in the joint project on the basis proposed. In Table 13 we have prepared a comparison of annual costs to the city of Renton for participation in the joint -29- TABLE 13: COMPARISON OF CITY OF RENTON ANNUAL COSTS JOINT FACILITIES VERSUS INDEPENDENT FACILITIES Indnendent Facilities Joint Facilities Year Year Year Year 1981 2000 1981 2000 A. Captial Costs _-- -" 1. Project Cost $806,000 $1,120,000 2. Less State Grant -0- $ 354,000 3. Net Project Cost $806,000 $ 766,000 4. Financing Cost $ 25,000 $ 24,000 5. Amount of Revenue Bonds $831,000 $ 790,000 6. Annual Principal & Interest (30 years, Serial, 10% interest) $ 92,000 $92,000 $ 87,50C $ 87,500 B. Operating Costs 1. Existing Water Supply & Transmission Cost $ 16,200 $ 28,200 $ 41,300 $ 60,600 2. Project Operating Cost $ 19,000 $ 21,600 $ 25,100 $ 29,200 3. Total Operating Cost $ 35,200 $ 49,800 $ 66,400 $ 89.800 C. Total Annual Cost $127,200 $141,800 S 153,9DO $177,300 D. Less Cost of Seattle Water Purchase at Current Rates (Renton Only) ($ 30,000, ($ 52,100) ($ 30,000) ($ 52,100) E. Less Sale of Water to Water Districts 14 and 63 at $0.357 per 100 cubic feet -0- -0- ($ 52,500) ($ 67,900) F. Net Annual Cost $ 97,200 S 89,700 $ 71,400 $ 57,300 -30- facilities versus the construction and operation of independent fa- cilities for its west Hill service area. The costr shown indicate net increases in annual operating costs for the years 1981 and 2000 for each of the alternatives. The deduction of the cost of the pur- chase of Seattle Water is based on the tact that the current city operating costs include this amount, and increases in this cost would occur in the year 2000, should either of the projects not be constructed. A cost comparison shows a substantial benefit to Renton's participation in the joint facilities on the basis proposed. PROJECT IMPLEKENTATIOM The initial steps in the implementation of the proposed joint facili- ties project include the development and agreement to a contract for par- ticipation betveei the city of Renton, King County Water Districts 14 and 63. Since Renton is the proposed owner and will support the major part of the financial burden, the initial agreement to proceed in accor- dance with this report must come from the city of Renton Council. Following Renton's determination to proceed in accordance with the pro- posal, acceptance to the contract terms moat be agreed to by King County Water Districts No. 14 and 63, and a contract document prepared for final signature. Concurrent with this task it is our recommendation that the city proceed with a final application for grant funds from the Department of Social and Health Services. At such time as a basis for contract has been agreed upon and the city has received indications that the grant will be favorably acted upon, engineering should be initiated to accomplish the preliminary -31- design of the project. Concurrent with the preliminary design of the project, the city should initiate acquisition of property required for the construction of the booster station and reservoir site. Accomplishment of the above should allow the city to proceod with the preparation of final construction plans and specifications. The pro- ject can then be bid within the time constraints associated with the grant offer. Construction of the project is anticipated to require approximately nine months, depending somewhat upon equipment deliveries and the schedule for the erection of a steel standpipe. The above is a brief outline of the major implementation tasks required for the project. A more detailed schedule and budget for these tacks can be prepared once the city and Water Districts 14 and 63 have reviewed this report and have concurred in principle with the implementa- tion of the project. -32- WTR'- II StoRas-e� Faue.i /i #i ENDING F FIL FILE TITLE 411 We4 Mi 11 k 5e.0 Oo io � En� i �veeei�6- �ePo� oN Ten i #0+ "R Sysfe►� Far. I- eS