Agenda - 12-13-2005-7a - Laserfiche WebLink

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3 MEMORANDUM TO: Board of Directors THROUGH: Ed Kerwin FROM: Jahn Greene DATE: November 3, 2Q05 SUBJECT: Discussion of Excess Capacity Credit Policy At the September 22, 2QQ5 Board meeting, staff presented additional information to the Board on the potential establishment of a policy to allocate the cost for the excess capacity that may be provided through the extension of oversized water and sewer mains. This information included detail on the basic components found in almost all policies where there is a cost share arrangement (credit) between the party installing the oversized main(s) and the utility. These components include the following. • a minimum or base size for water and sewer mains extensions; • a definition of benefited parties; • a specified term in which a developer is eligible for the credit; • a method far determining the amount to be credited; • a method for the collection of funds for the credits; and • a procedure for disbursement of the credits. Utilizing the above components staff presented a concept for establishment of a cost share program for the excess capacity made available by the oversized main extensions, This plan deemed any oversized water or sewer extension a benefit to the entire OWASA service area. Because of this benefit any new water or sewer connection, regardless of its location within the service area, was to be assessed a water and/or sewer availability fee surcharge. It was estimated that the proposed surcharge added tc the current availability fees would be less than 5% and the funds collected would be disbursed to the developers on an annual basis. After discussing the conceptual cost share program, the Board had several questions related to: 1) cost of service; 2) capacity related allocation of cost; and 3) benefited area determination. To address the outstanding questions an Ad Hoc Committee of the Board was