Comox Valley Sewerage Service Cost Apportionment

Transcription

1 Comox Valley Sewerage Service Cost Apportionment

2 Background Prior to 2003 apportionment of sewerage service costs was based on number of connections per participant In 2003 apportionment changed to measured flow as a portion of the combined flow From bylaw 2541: The costs of the Service shall be apportioned between the Participating Areas on the basis of the metered volume of sewage flows from each municipality relative to the total volume of combined sewage flows at the Comox Valley Water Pollution Control Centre during the previous calendar year

3 Background 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% Courtenay Comox

4 Courtenay River Siphon Courtenay P.S. KFN P.S. Knight Rd. CFB Comox Parshall Flume Kye Bay P.S. Simon Crescent/ Connemara Rd. CFB Comox P.S. Jane Place P.S. Colby Rd. P.S. HCS QUADRA Sewer Flow Schematic CVWPCC 200 PVC Outfall LEGEND agmeter Parshall Flume Water eter* Forcemain Gravity Sewer *used as a proxy for sewer flow

5 Parshall Flume Flow eters The service utilizes a combination of flow information to determine the flow from each participant The majority of the flow is determined using Parshall Flume and magnetic flow meters A Parshall Flume is a calibrated structure inserted into a channel accurate to +/- 5%

6 Annual Calibration Each year the CVRD inspects and calibrates its flow meters located at four sites throughout the Town of Comox and City of Courtenay Courtenay Pump Station Jane Place pump station Treatment Plant Knight Road The CVRD had been using the same vendor for this work for many years but in arch 2015 began using a new vendor The new vendor identified that the ultrasonic sensor was installed 27cm too close to the flume throat On ay 11, 2015 the sensor was moved to the standard position

7 Annual Calibration The repositioned and calibrated meter was validated: ay 11 repositioning and calibration by SFE Peer review by Associated Engineering Three point verification by SFE Dye testing by SFE The meter, in its current location and calibration, meets the standards for Parshall Flume flow meters

8 Impact of changes in Apportionment A 1% change in apportionment between participants equates to approximately $50,000 in municipal requisition

9 Apportionment Calculations Each year the CVRD identifies the total municipal tax requisition required to support the operating, maintenance and capital needs of the sewerage service This total is apportioned to Courtenay and Comox based on each municipalities share of the metered volume of sewage Based on 2015 metered flow reads this is (table 1): Courtenay 67.44% Comox 32.56%

10 Apportionment Calculations Comox staff requested that an adjustment be made to the beginning of 2015 to account for the repositioned Courtenay flow meter Using the historical five year average apportionment and comparing it to the repositioned flow meter an adjustment amount of 4.41% has been calculated (table 2) Applying the adjustment amount from Jan to ay 11, 2015 adjusts the annual apportionment as follows (table 3): Courtenay 68.82% Comox 31.18% The staff report recommends that this adjusted 2015 apportionment be used in the 2016 financial plan to apportion the municipal requisition

11 Budget Implications The proposed Financial Plan includes increases in %, % and % (table 4) The change in apportionment due to meter repositioning has an impact of (table 5): Comox ($248,015) Courtenay $248,015 This represents an unanticipated additional increase to the City of Courtenay and credit to the Town of Comox

12 Budget Implications - options The staff report provides two options that recognize an adjusted metered flow for 2015 to implement the change Option 1 (table 7) Utilize approximately $1.35 million in 2015 surplus over the next 4 years to hold Courtenay s increases to previously planned levels Comox s requisition would be well below their planned increases The $1.35 million would not be available for reserve contributions Additional future debt may be required Future required tax requisition may be higher than previously planned Option 2 (table 8) Reduce the previously planned tax increases of 10%, 9%, 8% over three years to 6% for five years Courtenay s increase in 2016 would still be greater than previously planned Courtenay s increases in future years would be similar to those previously planned The full 2015 surplus is still contributed to reserves Future tax requisition projected higher

13 Budget Implications Understanding the long term impact of the above options requires detailed long term financial analysis The current long term financial plan was developed as part of the Sewer aster Plan and 10 year prioritized capital plan developed in 2011 A sewerage system capacity study has recently been awarded and will inform long term spending needs and timing A report will be brought back in fall 2016 highlighting any long term municipal requisition implications Adjustments to the requisition can be made at that time if required

14 Budget Recommendation ove to a 6% per year municipal tax requisition increase for the next five years Place the 2015 carry forward surplus (approx. $1.35 million) into reserves

15 Questions