Title
Consideration of the Sanitary Sewer Connection Fee Recommendation
Body
Key Issues:
The Sewer Connection fee for FY25 was calculated based on a residential equivalent unit basis similar to the water tap fee. The residential equivalent unit which utilizes a 5/8" x 3/4" meter was established at $2,285. The methodology provided that:
• Fees would be proportional to the size of the water meter.
• Costs of projects with annual review to ensure the proper allocation and cost recovery necessary to serve new development.
For the 2025 update of the Sanitary Sewer Connection Fee Model, the following factors were updated.
• In FY24, there were 534 equivalent residential units consumed through the issuance of building permits. The number of remaining equivalent units was reduced from 12,820 to 12,286.
• There were no new projects identified for inclusion into the sewer connection fee model.
• Projects costs in the model were updated based on the Engineering Record Construction Cost Index which was 1.6% for this year through November.
Staff Recommendation:
Increase sewer connection fee from $2,285 to $2,398 per residential equivalent unit (5/8" x 3/4" meter) effective date of July 1, 2025.
Increase fees proportionally to the size of the water meter.
Proposed Motion:
I move to recommend to City Council approval to amend the sewer connection fee and fee schedule effective July 1, 2025.
Background:
The Water Utilities department has conducted a comprehensive Wastewater Master Plan to review the City’s wastewater infrastructure. That report indicated an interrelation between the various watersheds and the conveyance system. Wastewater is conveyed to Little Blue Valley Sewer District through the use of pumping and storage facilities located in several watersheds and to Middle Big Creek Sub-District for treatment. These facilities are designed to manage the flows of multiple watersheds and convey those flows through the infrastructure within other watersheds to address topography requirements. With a comprehensive WWMP the need to isolate these costs to the individual watersheds is unwarranted and the development of a system-wide Sewer Connection fee would be more appropriate considering the master plan. Based upon updated growth demands and planned improvements of the Middle Big Creek SubDistrict, the model was adjusted to accommodate Lee’s Summit demands and help to negate the consequences downstream which would ultimately affect the Lee's Summit sewer system.
A sewer connection fee has been developed for the create a city-wide approach to funding the sanitary sewer system. The methodology reviewed existing capacities within the system, the overall units (structures) served and the overall number of units served based on the recommended improvements both existing and future. The methodology is consistent with AWWA M1 Standards and provides a reasonable and rational approach to funding of sanitary sewer improvements.
Additionally, the Master Plan identified specific upsizing requirements for new main extensions and for existing infrastructure based on the Comprehensive Plan’s assessment. It was determined that the programing of these improvements to specific years in the connection fee model would not allow the flexibility to adjust to the development community’s schedule so an alternative basis was applied. The Upsizing improvements were distributed throughout the planning period in the connection fee model to best accommodate funding from a City-Wide perspective.
The current sanitary sewer connection fee model was implemented in July of 2022 as a city-wide approach for determining connection fees. Under the guidance of the WUAB, this model is updated annually to ensure that fees are collected to meet the development needs of the City.
The approved methodology is based on the Wastewater Master Plan which includes;
• Projects anticipated based on growth (development)
• Assumed that certain improvements would be necessary to meet demands in a variety of basins
• Assumed some coordination of improvements with Little Blue Valley Sewer District’s improvements specifically in the Big Creek watershed
• Developed to be in alignment with the City's Comprehensive Plan and anticipated coordination with Little Blue Valley Sewer District development.
Presenter
Brent Boice, Assistant Director of Business Services, Water Utilities
Recommendation
Staff recommends approval of the Sewer Con