Laserfiche WebLink
<br /> <br />, <br /> <br />MEMORANDUM <br /> <br />TO: Lori Johnson, City Administrator <br />FROM: Terry Maurer, City Engineer ~ <br /> <br />DATE: October 19, 2006 <br /> <br />SUBJECT: 2007 SAC Rates <br /> <br />In the 2005 Wastewater Treatment Master Plan, there was an analysis of the future Sewer <br />Availability Charges (SAC) needed to fund the long-term improvements at the Wastewater <br />Treatment Plant. As you are aware, in 2005, the SAC rate was raised to $2,750 per unit, and <br />in 2006, it was raised to $3,500 per unit. The WWI'P Master Plan made some long-term <br />assumptions relative to the collection of SAC units on an annual basis and the capital that <br />will be needed for major improvements at the Treatment Plant. A historical review of 2005 <br />and 2006 finds that the assumed number of SAC units were met or exceeded. The Master <br />Plan recommended a $100 increase in the SAC rate for 2007 making the rate $3,600 per unit. <br />However, the one item that was not anticipated in the SAC analysis was the rapid increase in <br />the Construction Cost Index in 2006 caused by energy prices spiking and shortage of <br />supplies due to natural disasters. I have reviewed the Engineering News Record (ENR) <br />Construction Cost Index, and based on that, I would recommend that a slightly larger <br />increase be put into effect in 2007 by raising the SAC rate to $3,700. <br /> <br />I will continue to monitor the number of SAC units on an annual basis versus the estimated <br />cost of future major improvements at the Wastewater Treatment Plant, in order to <br />recommend annual increases in the SAC rate. <br /> <br />If you have any questions regarding this recommendation or need additional information, <br />please contact me. <br /> <br />S: \Engineer\2006 Memos \2007 SAC rate.doc <br />