HomeMy WebLinkAboutRevenue Bond Isuue Engineering Report
Augusta Richmond GA
DOCUMENT NAME: ~tve(1ue,&(lcf ISSue Ll'7g;'rJe-en/1'j
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DOCUMENT TYPE: ~c2poy}
YEAR: ;q q 0
BOX NUMBER:
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AUGUSTA - RICHMOND
UTILITIES DEPARTMENT
WATER AND SEWER CAPITAL
IMPROVEMENTS
1996 REVENUE BOND ISSUE
ENGINEERING REPORT
October 18, 1996
Project 9614
PREPARED BY
EEL
435 TELFAIR ST.
AUGUSTA, GEORGIA
ENGINEERS
PHONE (706)724-5627
ZIMMERMAN, EVANS AND LEO~OLD, INC.
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
TABLE OF CONTENTS
1. INTRODUCTION ................., .........,."""" .....' ........'.. ....., ....,. .-"." ........................ .............. 1
2. AUGUSTA-RICHMOND COUNTY WATER SYSTEM ................................................... 2
3. AUGUSTA-RICHMOND COUNTY SEWER SySTEM.................................................... 6
4. MANAGEMENT OF THE UTILITIES DEPARTMENT................................................... 10
5 . WATER AND SEWER CUSTOMERS...... ............................................................... ......... 11
6. WATER AND SEWAGE VOLUMES .............. .................................................................. 12
7 . WATER AND SEWER RATES............................................................................. ............ 14
8. REVENUE.............. ........... ........ ..... .........,.......... ................... ... ............... ....... ......... .......... 17
9. MISCELLANEOUS REVENUE ............................ ........................................ ....... ............. 18
10. OPERATION AND MAINTENANCE COSTS................................................................ 18
11. PROJECTS IN PROGRESS BY OTHER FUNDING....................................................... 19
12. DEBT SERVICE...... ......................... .................................................. ............. ................ 20
13 . CAPITAL IMPROVEMENTS PROGRAM ................................................... ~................. 21
14. RENEWAL AND EX1'ENSION ...................................................................................... 24
15. FORECAST REVENUE AND EXPENSES ..................................................................... 25
16. CONSTRUCTION PROGRAM ...................... .............. ............... ............................... ..... 29
17. ENGINEER QUALIFICATIONS.............................. ................................................. ...... 30
18. ENGINEER'S OPINION................................. ......... ....................................... ................. 30
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
TABLES
Table 1 - Combined Water System Statistics and History .............................................................6
Table 2 - James B. Messerly WWP NPDES Permit Discharge Limitations ..........................,........9
Table 3 - 1996 Water and Sewer Account Profile ............................................ ......................... ..12
Table 4 - Combined System Water and Sewer Account History ..................................................12
Table 5 - Water and Sewer Volumes - 1994 ......... ........................................................... .......... .13
Table 6 - Water and Sewer Accounts and Volumes - 1996 Predictions........................................ 13
Table 7 - Combined System ResidentiaVCommercial Use...........................................................13
Table 8 - Largest Water and Sewer Customers by Volume (1995) ..............................................14
Table 9 - Residential Rate Structure ....................................................................................,......15
Table 10 - Commercial (Non-Residence) Rate Structure.... .................... ...... ............................. ..15
Table 11 - Comparison of Selected Total Water and Sewer Monthly Bills ...................................17
Table.12 - 1996 Miscellaneous Revenue Estimate .................. ............. ................. ..:................. ..18
Table 13 - Summary of O&M Costs ........................................................................................ ..19
Table 14 - Phase I Combined Sewer Overflow Projects............................................................. ..19
Table 15 - Phase n Combined Sewer Overflow Projects .............................................................20
Table 16 - 1996 Debt Service Summary....... ..................................... ................ ............. ............20
Table 17 - Bonded Indebtedness as of January 1, 1997 .. ............ ....................... ................ ......... .21
Table 18 - 1996 Bond Issue Utilities Department Capital Improvement Projects..........................22
Table 19 - Description of Capital Improvement Projects ...... ........................ ......... ...... ........ ........23
Table 20 - Useful Life of Water and SeWer System Components.................................................24
Table 21 - Forecast Revenue and ExpenSes using Current Market Debt Amortization .................27
Table 22 - Forecast Revenue and Expenses Using Set Size and Rate Debt Amortization..............28
Table 23 - Estimated Construction Schedule for Bond Issue Projects ................:.........................29
GRAPHS
Graph 1 - Residential Water and Sewer Bill Comparison ............................................................16
Graph 2 - Commercial 1-112" Meter Water and Sewer Bill Comparlson......................................16
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
,October 1996
APPENDICES
Appendix A Water and Sewer System History
Appendix B Revenue Calculation
Appendix C Utilities Department Capital Improvements Program
Appendix D Renewal and Extension Requirements
Appendix E Existing Debt Service
Appendix F Revenue and Expense History
Appendix G Water and Sewer System Rate History
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
1. INTRODUCTION
Consolidation of the City of Augusta and Richmond County, Georgia governments has brougt.t
about the opportunity for the newly created Augusta-Richmond Utilities Department to improve
water and sewer services for their sixty thousand water and forty-six thousand sewer customers.
For this purpose, the Department proposes a Revenue Bond Issue to (1) implement a five year
Capital Improvement Program and (2) refinance and consolidate the existing debt of the former
City and County systems. This engineering report describes the water and sewer system, projects
revenues and expenditures, estimates the effect of implementing the improvement program, and
gives an engineering opinion regarding the health of the system.
The five year Capital Improvement Program (CIP) selected for funding consists primarily of
projects remaining from the CIP's of the former City and County systems. Additional projects
were added to extend service to priority areas and connect the two water systems. Water system
projects consist of (WI) Modification to the clearwells at the surface water treatment plant (at
Highland Avenue) to improve disinfection and ensure compliance with new Clean Water Act
requirements, (W2) Modifications and line additions to merge the two systems,' (W3) construction
of a new 10 million gallon per day (Mgd) well field and treatment plant, (W4) construction of a
new 60 Mgd raw water line to deliver water from the Augusta Canal (or the 5avannah River) to
the Highland Avenue plant, (W5) construction of a 1 Million gallon elevated storage tank, and
(W6) extension of service to priority areas. 5ewer system projects consist of (51) land purchase
for Phase m of the constructed wetlands project, (52, 53, and 55) rehabilitation and replacement
of the Rae's Creek, 5pirit Creek, Rocky Creek and Butler Creek Trunk sewers, (54, 56, 59, and
510) extension of sewer service to developing industrial areas, (57) Rehabilitation of the main lift
station at the J .B. Messerly Wastewater Plant, (58) Construction of a lift station and force main to
augment the mid-city interceptor, (511) Odor control at the lB. MesserlyWWP, and (512)
extension of service to priority areas. The list of projects selected for funding can be foUnd in'
Table 18 on page 22 and a description of each project can be found in Table 19.
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
Because of consolidation of the Augusta and Richmond County governments, administrative
unification of the City and County water and sewer systems was initiated in January, 1996.
Because of the nature of the water systems, physical connection of the two systems will be made.
The sewer systems are not likely to see significant operational changes since all City sewer lines
and the majority of the County sewer lines already discharge to the J.B. Messerly WWP.
Unification of water and sewer rates, begun in 1996, were designed to eliminate billing disparities
and to produce the forecast revenue requirements of the combined systems.
2. AUGUSTA-RICHMOND COUNTY WATER SYSTEM
The Augusta-Richmond County water system serves most of Richmond County. In 1995 the
Augusta system served 32,443 water accounts (see Appendix A) with approximately half inside the
City and half outside. The City system reached south to the Gordon Highway, northwest to the
Columbia County line, and northeast to the Savannah River.. The fonner Richmond County
system served the area south of the Gordon Highway and generally extended through the Spirit
Creek basin on the south. Richmond County served 28,218 water accounts in 1995. Primary
water lines of the two systems extend into 210 square miles (65%) of the total county area of 325
square miles. A connection to the Columbia County system currently provides a wholesale supply
of approximately 3 Mgd from Augusta-Richmond in the spring and summer months.
Augusta-Richmond County is located on the Savannah River at the fall line between the Piedmont
Plateau and the Coastal Plain 220 miles upstream from the Atlantic Ocean and is in the recharge
area for the Tuscaloosa Aquifer in the Tuscaloosa Geologic Formation. This aquifer provides the
fonner Richmond County water system with raw water from well fields (23 Mgd, see Appendix A)
which extract water from the TuscalooSa Formation. Water plant number 1 is located ori Peach
Orchard Road at Lumpkin Road while plaiJ.t number 2 is located on the Highway 56 loop at 4H
Club Road. Raw water is aerated, treated with fluoride and chlorine, and adj~for pH before'
delivery: A corrosion control chemical is also'aclded to the finished water. Three wells having a
capacity of approximately 2 Mgd serve the Pine Hill area and receive only disinfectiOn treatment.
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
Water is delivered to the ground water distribution system through high service pumps at nine
locations which serve three interconnected water subsystems. The subsystems are defined by their
operating elevations of 457,521, and 598 ft. above mean sea level (msl) and are served by
approximately 3.2 million gallons (MG) of elevated storage tanks. Ground storage tanks (12.1
MG) provide water at elevations 417 and 437 ft. msl.
The former City of Augusta system draws raw water from the Augusta Canal, which parallels the
river. The canal was constructed in 1840 as a means of transportation for cotton barges and to
provide water power for textile mills and other industries in the City. In 1860, the beginning of the
present water supply system was established when river water, taken from the first level of the
canal, was diverted into the City's bored log distribution system. The present site for raw water
pumping originally included steam pumps in 1909, which later were replaced with electric motor
driven centrifugal pumps. In 1939, water power was utilized to drive a pair oftw~ge
centrifugal pumps, each having a capacity of 9.0 Mgd. which are still in service, but are rarely
used. New water powered turbines were installed in 1952 (20 Mgd) and 1975 (30 Mgd) to deliver
raw water from the Canal to the water treatment plant on Highland Avenue. A standby diesel
driven pump (20 Mgd) also was installed in 1975 with the capability to deliver water from the
canal or directly from the river. Today, canal water power provides a substantial economic benefit
for the water system by reducing electrical costs.
The Augusta Canal is a power and water supply canal operated under the regulation of the Federal
Energy Regulatory Commission (FERC). A City of Augusta permit to apply for relicensing of the
canal was dismissed in January 1994 for failure to complete an Instream Flow Incremental
Methodology (IFIM) study to assess the effect of the canal diversion on the Augusta Rapids as a
fishery. A new application by Augusta-Richmond County for permit to license was filed June 12,
1996 in competition with an application by Fall Line Hydro Company, Inc. FERC has exercised
municipal preference and accepted Augusta-Richmond County's Application for Preliminary
Permit. A contract has been signed with EDA W, Inc. Environmental Consuhants to perform the
IFIM Fish Study in the affected reach of the Savannah River as initiation of further efforts by
Augusta-Richmond County to license the canal. In a letter dated August 19, 1996, the Department
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
of Interior expressed opposition to any "additional water withdrawals into the Augusta Canal for
new generation caoacity.[emphasis added]" Because the raw water pumping station now uses 540
Mgd for power to pump 29 Mgd for water supply use, no restrictions on drinking water supply are
anticipated but increases in withdrawal of canal water for power is not assured.
The Highland Avenue water plant, remodeled in 1987, is designed to treat 60 Mgd using its 10
fihers. The plant is currently rated by the Georgia Environmental Protection Division (EPD) at 45
Mgd because of the water needs at the time the permit was granted. The Highland Avenue plant
has an on-site potable water ground storage capacity of 15 MG at an elevation of 433 ft. msl which
is sufficiently elevated to serve the center and lower City areas as well as portions of South
Richmond County without additional pumping. A high service pump station at the Highland
Avenue location serves remote elevated tanks in the western parts of the service area. Subsystems
served from the high service pumps operate at elevations 564, 500, and 630 ft. IDSl. CUJ1'e:'lt
production at the Highland Avenue Plant averages 22.6 Mgd of potable water of which 20 Mgd is
metered and billed. The current maximum production rate in summer is approximately 39 Mgd.
The river/canal water treated at the Highland Avenue plant customarily has a low turbidity (-4.5
NTU) which is attributed largely to the controlled flow released from Thurmond Lake and Steven's
Creek Dam. Some increase in turbidity after a storm results from water carried to the river from
Steven's Creek but only major storms generate significant turbidity. The quality of finished water
from the Highland Avenue Water Plant customarily is well within all contaminant limits and has
low turbidity (-0.2 NTU). Under typical conditions of high influent turbidity (-18 NTU) the
finished water turbidity still is low (-0.3 NTU).
The current operating permit of the Highland Avenue Plant was obtained in 1988 and will require
renewal in February 1998. The current withdrawal permit also was obtained in 1988 and will
require renewal in October 2010, Copies of the withdrawal permits are on file at the offices of the
Augusta-Richmond Utilities Department.
An aborted plan to add surface water treatment ~othe County system resuhed in a 1991 permit to
withdraw 30 Mgd of surface water from the Savannah River at a point in Columbia County above
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
the Augusta Canal. Personnel of the Environmental Protection Division of Georgia DNR have
stated that they would look favorably on combining the two withdrawals at the canal pumping
station site. The total of the two permits is 75 Mgd average daily withdrawal and 87 Mgd peak
water supply withdrawal.
Reliability of the combined water system will be improved by projects funded in this bond issue
which interconnect the system supplied by wells in South Richmond County to the surface water
supply available at the Highland Avenue Surface Water Treatment Plant. Connection of the
ground and surface water systems will allow the 18.4 Mgd of permitted well water withdrawal
available at the two existing groundwater treatment plants to be used more effectively. Planning is
in progress to increase the use of surface water to lessen reliance on the well fields during nonnal
use periods. This strategy will not only provide economic benefits due to the lower marginal cost
of the surface water, but will allow greater withdrawal from the well fields during peak use periods
without violating withdrawal limits. Construction of a third well field and ground water plant will
provide a needed supplement for South Richmond County. Increased reliance on the surface water
supply will help to relieve the demand on the Tuscaloosa Aquifer (lessening the drawdown of the
aquifer is a stated goal of the Georgia EPD). Lowering withdrawal from the aquifer also will
provide for a supply to the surface water system if an emergency were to limit water supply from
the Highland Avenue Plant. Utilizing the well fields increasingly for peak supply periods also will
extend the available supply beyond a 30 year growth forecast.
Statistical summaries of the water systems are presented in the following table.
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
Table 1 - Combined Water System Statistics and History
Water Treatment History 1991 1992 1993
Daily Maximum (Mgd) 49,9 52,0 55,0
Daily Average (Mgd) 35,3 34,1 35,8
Daily Minimum (Mgd) 16,7 23,8 23.3
Total Annual Volume (MG) 12,885 12,445 13,052
Number of Water Meters 58,071 58,718 59,206
1994
53,0
34.6
23.2
12,630
59,832
1995
52.4
34.9
25.6
12,737
60,661
Raw Water Capacities
Surface Water Primary Pumping
Surface Water Backup Pumping
Raw Surface Water Supply Mains (30", 36", and 42" mains)
Raw Surface Water Storage Reservoirs
Well Pumping
Well Water Supply Mains
Treated Water Capacities
Permitted Treatment Capacity
Clearwell Storage
Ground and Elevated Tank Storage
High Service Pumps
BaCkup High Service Pumps
Booster Pumps
Backup Booster Pumps
Primary Water Distribution Mains (6" and larger)
50 Mgd
29 Mgd
60 Mgd
124 MG
23,1 Mgd
30 Mgd
68.1 Mgd
17MG
18.25 MG
57.9 Mgd
25.5 Mgd
20.0 Mgd
9.5 Mgd
1,010 Miles
3. AUGUSTA-RICHMOND COUNTY SEWER SYSTEM
The present sewer system of Augusta-Richmond County serves all drainage basins from Spirit
Creek North. These basins contain 135 square miles (42%) of the 325 square miles of the County.
The Spirit Creek Basin is far from fully served but the primary trunk sewer for the basin is in
place. Virtually all sewer customers also have water service while approximately 14,750 water
customers are currently without sewer service.
Two wastewater treatment plants serve Augusta-Richmond County. The principal plant, the
James B. Messerly Wastewater Plant, serves the area formerly within the City limits and the
portion of Richmond County north of the Spirit Creek Basin. After treatment at secondary levels,
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
effluent is discharged through Phinizy Ditch to Butler Creek less than three miles from its "
confluence with the Savannah River. The J .B. Messerly WWP has a current rated capacity of 46.1
Mgd. Primary treatment at the plant is accomplished by settling while secondary treatment is
accomplished through aeration by fine air diffusion, secondary clarification, and chlorination of the
effluent. Sludge is digested anaerobically followed by land application on farm land. The plant
provides additional biological treatment and containment of overflows through aerated equalization
tanks with a capacity of 15 MG. A constructed wetlands facility is currently Wlder construction to
provide tertiary level or advanced treatment. This facility will provide biological treatment in a
system of flooded cells filled with wetland flora to provide final polishing of effluent. The first
phase of the wetland system is expected to be fully functional by 1998.
In addition to the Messerly plant, the Spirit Creek Wastewater Treatment Plant has a capacity of 3
Mgd with a peak flow of 5 Mgd. The Spirit Creek Plant is a biological treatment plant consisting
of aerated lagoons, chlorination, and baffled shallow ponds for polishing of the final effluent.
The J.B. Messerly WWP construction history began in 1952 with the publication of the Master
Plan for Sewage Collection and Treatment which called for construction of a separate collection
system (previous collection was a combination of stormwater and domestic sewage) and
construction ofprimarytreatmeni facilities to serve all of Richmond County. Construction of
collector trunk ~ewe!S and main transmission ,interceptors proceeded through the 1950's and early
1960's. In 1966, the construction ofa 23 Mgd primary treatment plant began with the financial
-assistance (30% gram) of the Federal Water Pollution Control Board (FWPCB). The design was
keyed to IQW capital costs and ease of expansion in size and level of treatment. The treatment
consisted of primary settling, anaerobic sludge digestion, and chlorine disinfection of the effluent.
By its completion in early 1968, plans were prepared to add secondary biological treatment to the
plant to include mechanical aeration, secondary settling, and aerobic digestion. This second phase
of construction was also partly financed by 33% grant from the FWPCB under Public Law 84-
660. The remainder was funded locally by the City of Augusta through revenue bonds. The
facilities were completed in 1975.
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
The Messerly treatment facility is located in Southeast Richmond County adjacent to lands ,
historically used for agricultural purposes, The plant's effluent is presently discharged to the
Phinizy Canal and then into Butler Creek. Treatment plant expansion and enhancement has been
identified by the Augusta 201 Facilities Plan to be necessary to meet the increasing needs of the
area. A flow rate of 11.6 million gallons per day for the treatment of infihration and equalized
inflow was added into the flow design parameters for the plant expansion. In the 1980's,
expansion of the treatment process provided a hydraulic capacity of 46 Mgd (average) and 60.5
Mgd (peak) and included additional new primary facilities, additional anaerobic digesters and
rehabilitation/conversion of the existing secondary facilities to fine air diffusion type of aeration.
Land application of digested sludge also was initiated. Also included was the renoVation of the
main lift. station equipment. The design capacities buih into the treatment works included a reserve
to be made available to future industries in the amount of 11 Mgd, 10,000 pounds of biochemical
oxygen demand (BOD) and 10,000 pounds of suspended solids. This capacity is in addition to the
capacities included for the forecast growth of the system through the year 2005.
While the Messerly plant was being expanded., new plant maintenance facilities, new laboratory
facilities and expanded administration facilities were constructed. Equalization facilities were
added in 1995, which will moderate the 11.6 million gallons of inflow and infiltration. Three
circular, prestressed concrete, open-top tanks currently provide a total of 15 million gallons of
aerated equalization storage.
The J .B. Messerly WWP currently opef31es under NPDES Permit No. GAOQ20087 which is
reissued at five year intervals. When the pennit was issued on July 22, 1988, the EPD indicated
that a survey of the plant's receiving stream, Butler Creek, would be performed to determine if
additional treatment or discharge relocation to the Savannah River would be required. This survey,
completed on January 5, 1993, included a new Wasteload Allocation for the Messerly Plant which
required that the facility meet advanced wastewater treatment limitations in order to continue ,
discharging at the present location. EPD subsequently was requested to determine the effluent
limitations based on a discharge to the Savannah River which would allow the discharge relocation
option to be weighed against providing advanced treatment at the plant.
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
EPD reissued the NPDES permit on June 23, 1993. The new permit contains effluent limitations
below the plant's current discharge levels. Because the facility is nOt: currently capable of meeting
these limits, EPD issued an Administrative Order containing a thr~ year compliance schedule.
During the interim, the effiuent limits specified under the old permit are maintained.
Upon completion of the constructed wetlands project, the Plant will be capable of meeting the
NPDES limits as summarized in Table 2,
Table 2 - James B. Messerly WWP NPDES Permit Discharge Limitations
Adm inistratlve Butler Creek Savannah
Parameter Order NPDES River Unit
6/23/93 - Permit Preliminary
6/23/96 6/23/96 - Waste
6/23/98 Load
Allocation
Flow 46.1 46.1 46.1 Mgd
Biochemical Oxygen Demand (80DS) 30 10 30 mg/L
Chlorine - Total Residual ,011 mg/L
Total Suspended Solids (TSS) 30 20 30 mg/L
Ammonia as Nitrogen (NH3) 17.4 1,S 17.4 mglL
Dissolved Oxygen (DO) minimum 2 mg/L
The City of Augusta owns approximately 640 acres of agricultural fields between the J.B.
Messerly WWP and the Savannah River. The fields are bordered by forests and the lower reaches
of the Phinizy Swamp. This area was selected for Advanced Wastewater Treatment Facilities
designed to meet the more stringent effluent c:qscharge limitations without a costly extension of an
outfall line and penetration of the levee, for discharge into the Savannah River. The first phase of
a constructed wetlands facility is under construction and funded by a SRF Loan. The project is the
economical tertiary treatment process for Augusta and is eCologically friendly. The system makes
use of wetland plants growing in flooded treatment cells to provide the final biological polishing of
eftluent from the secondary treatment process. The second and final phase of the project is
currently scheduled for Completion in December 1999 and will bring the facility to its design
capacity of 46 Mgd..
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
The wastewater collection system for the Messerly Plant is primarily a gravity system serving the
general area north of Tobacco Road except for the Fort Gordon Military Reservation which has its
own wastewater facilities. The primary trunk serving the wastewater plant is a 72" line which
intercepts the principal basins along its path and receives all flow from the 48" diameter mid-city
interceptor sewer, The current separation of the many combined sewers (CSO projects) connected
to this system is also expected to moderate peak discharges. By ordinance, buildings must be
connected to the sewer line if proximate to the property.
The collection system for the Spirit Creek Basin includes 5 miles of 36" sewer and 5 miles of 30"
sewer as the primary trunks. Peak discharges are significantly influenced by inflow and infihration:
but do not exceed the recently expanded Spirit Creek plant capacity (5.0 Mgd peak flow).
4. MANAGEMENT OF THE UTILITIES DEPARTMENT
The Augusta-:Richmond Utilities Department includes the Water Division, Wastewater Division,
Sales/Collections/and Customer Service Division, and the Construction and Maintenance Division.
The principal administrative personnel of the Department are as follows:
Max Hicks,P.E. is the Director of the Utilities Department. He began his employment
with the City on November 4, 1991 as the Assistant General Superintendent and became
General Sup~rintendent in August 1992. From July 1, 1989 until November 1, 1991. Mr.
Hicks was Public Works Director for the City ofToccoa, Georgia. Prior to that he was a
partner, director, and vice president of the consulting engineering firm of Z~erman,
EVans, and Leopold, Inc. of Augusta, Georgia. Professional registrations include licensed
professional engineer in Georgia and South Carolina. Mr. Hicks studied Engineering and
English at Charlotte College (now University of North Carolina at Charlotte) at Charlotte,
North Carolina, as well as Economics and Accounting at the University of South Carolina
at Aiken, S. C.
, Alma Stephenson is the Superintendent of Sales, Collections, and Customer Service, Ms.
Stephenson has been employed by the City for 27 years and was appointed
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Revenue Bond Issue Engineering Report
October 1996
OirectorlManager in June 1995, after serving for 8 years as the assistant manager ()fthe
waterworks office and sales.
Thomas D. Wiedmeier, P.E. is Assistant Director of the Utilities Department and the
Superintendent of Water Pollution Control. Mr. Wiedmeier was employed by the City of
Augusta in the Engineering Department in August 1988. He was appointed as supervisor
of Water Pollution Control for Augusta in February 1995 after serving as assistant City
engineer. Mr. Wiedmeier graduated from the Georgia Institute of Technology in 1984
with a Bachelor of Civil Engineering degree.
The Department has 210 employees, none of whom are represented by independent collective
bargaining agents. Neither Augusta nor Richmond County has experienced work stoppages during
its history.
All City employees hired after March 1987 are covered by the Joint Municipal Employees Benefit
Systems (JMEBS), an agent multiple-employer public employee retirement system which acts as a
common investment and administrative agent for municipalities. Full-time employees are eligible
to participate in this defined beDefit retirement plan after completing one year of service. Benefits
vest after ten years of service. Employees are required to contribute three and one-half percent of
gross earnings to the pension plan. Augusta-Richmond County makes annual contributions equal
to the amount required by JMEBS, Most of the employees hired before March 1987 are covered ,
by the 1949 General Retirement Fund., a single-employer public employees retirement system.
Employees contribute either five or eight percent of gross earnings depending on their date ofhire
and Augusta';Richmond County contributes the remaining amount sufficient to provide for future
penSIons.
5. WATER AND SEWER CUSTOMERS,
The customer totals for Augusta-Richmond County in 1996 are classified as residential or
commercial accounts. Table 3 shows the 1996 distribution between the two aCcount types while
, Table 4 lists the combined account history of the City, of Augusta and Richmond County water and
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Augusta-Richmond Utilities Department
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October 1996
sewer systems for the previous five years, Appendix A contains additional customer history
including active accounts data.
Table 3 -1996 Water and Sewer Account Profile
Residential
Commercial
TOTAL*
*Includes up to 9% inactive accounts,
Water
54,707
6,272
60,979
Sewer
41,562
4,396
45,958
Table 4 - Combined System Water and Sewer Account History
Water Accounts
Sewer Accounts
1991
57,307
44,076
1992
57,857
44,416
1993
58,367
44,596
1994
58,973
45,222
1995
60,257
45,587
6. WATER AND SEWAGE VOLUMES
Essentially all billings are based on metered water volume. Exceptions to this role include a small
number of sewer-only customers and industrial customers who have metered sewer service because
of a substantial difference between their use of water and dischaIge of wastewater, Billed water
and sewer volumes are shown in the following tables. Billed volumes are lower than actual water
production or wastewater treatment records (the disparity between fihered water delivered to the
system and the metered volume is approximately 12%), While a small part of this volume may
result from minor system leaks, the majority is supply to unmetered or unbilled customers.
Operations such as Municipal Buildings, Police and Fire Departments, the Municipal Golf Course,
Cemeteries, Parks, and Parkways are unbilled users. The following tables show billed water and
sewer volumes for 1994 and predicted 1996 values. Volume estimates for 1996 ar~ further divided
in Table 7 by residential and commercial account type.
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October 1996
Table 5 - Water and Sewer Volumes - 1994
5/8 & 3/4 1" & Larger
City
Billed Water (kgal)
Billed Sewer (kgal)
County ,
Billed Water (kgal)
Billed Sewer (kgal)
Combined City & County
Water Vol.
Sewer Vol
2,228,010
1,878,882
5,046,440
4,851,906
3,070,008
1,385,033
1,311,380
1,092,099
5,298,018
3,263,915
6,357,820
5,944,005
Table 6 - Water and Sewer Accounts and Volumes -1996 Predictions
City County Total
Total Mgd Total Mgd Total Mgd
Water Accounts 32,348 28,631 60,979
Billed Water (kgal) 7,347,376 20.10 4,489,500 12.30 11,826,000 32.40
Sewer Accounts 26,971 18,987 45,958
Billed Sewer (Kgal) 6,796,300 18.62 2,540,400 6.96 9,340,350 25.59
Total Ave. Mgd
7,274,450 19,93
6,730,788 18.44
4,381,388 12.00
2,477,132 6.79
11,655,838 31,93
9,207,928 25.23
Table 7 - Combined System Residential/Commercial Use
Mgd (Avg)
Water
Residential
Commercial
Total
Residential
Commercial
Total
Customers
54,707
6,272
60,979
41,562
4,396
45,958
Sewer
kgal/yr
5,245,000
6,581,000
11,826,000
3,314,000
6,022,500
9,336,500
32.40
25,59
Commercial, industrial, and institutional customers are all classified as commercial for billing
purposes, Industries with high eoncentnitiOllS of Biochemical Oxygen Denuind (BOD)) and
Suspended Solids (SS ) are monitored to establish the strength of their wastewater and are billed an
industrial surcharge proportional to the excess amount. Billed water and sewer quantities for the
fifteen largest Augusta-Richmond customers are listed in the following table along with their
percentage of use,
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, October 1996
Table 8 - Largest Water and Sewer Customers by Volume (1995)
Water Sewer
(Mg/Mo,) % of Total (Mg/Mo, ) % of Total
Nutrasweet 38,50 4,0% 38,50 5,0%
MCG Complex 36,89 3.8% 23.01 3.0%
Proctor & Gamble 6.08 0,6% 13.69 1.8%
Graniteville (Sibley Mill) 13.57 1,4% 13.57 1.8%
Kendall 12.39 1.3% 12.39 1.6%
King Mill 9,86 1,0% 9,86 1.3%
Searle 8.97 0,9% 8.97 1.2%
Ponderosa, Georgia 8,48 0.9% 5.18 0,7%
University Hospital 8.43 0.9% 6.34 0.8%
VA Lenwood Hospital 7.88 0.8% 7.88 1.0%
Castleberry's 7,45 0,8% 7.45 1.0%
Huron Tech, 6.98 0,7% 0.98 0.1%
Sweetheart Cup 6.06 0.6% 6.06 0.8%
E.Z. Go Textron 5.98 0.6% 0.45 0.1%
Merry Brothers 5.63 0.6% 0.0%
Total 183, 15 18.9% 154.33 20.2%
Total Billed Volumes 967,55 100.0% 762.85 100.0%
7. WATER AND SEWER RATES
In 1995 the annual costs of the water and wastewater systems were evaluated to determine the
, ,
appropriate charges' for the various classes of customers in the system and to equalize rates
, throughout the Augusta-Richmond service areas. Water and sewer rates were calculated to
distribute the pro rata share of system costs to the customers. Rate history is shown in Appendix
G. Current rates approximate the rate structure recommended in the 1995 study and include
allowance for the costs of operation and maintenance as well as replacement, renewal, and
extension.
Effective September 3, 1996, the following-rates for Water and sewer were established for the
Augusta-Richmond County Utilities Department:
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October 1996
Table 9 - Residential Rate Structure
Meter Size
< 3 kgal
>3 kgal
ALL METERS
Water
$8,00
Sewer
$ 6,70
5,53+$O,76/kgal
$ 9,40+$0, 87/kgal
Table 10 - Commercial (Non-Residence) Rate Structure
Meter Size
5/8" - %"
1"
Water
$6.00+$O.97/kga1
$8,&>+$O,97Jkgal
$14,10+$O.97/kga1
$2O.25+$O.971kga1
$33.60+$O.97/kga1
$49,10+$O,97/kga1
$82.BO+$O.97/kga1
$120,10+$O,97/kga1
$1 &>.40+$O.97/kga1
$2t8.15+$O.971kga1
$ 8.&>+$O.97/kga1
Sewer
$ 9.60+$1.10Jkga1
$ 14,15+$1.101/kga1
$ 23.65+$1,101'k9a'
$ 34. 15+$1.10Jkga1
$ 57.&>+$1.10Jkga1
$ 83.3:>+$1,101kgal
$1C>.BO+$1.10Jkga1
$ 204.40+$1.10JkgaJ
$ 273,25+$1.10Jkga1 '
$ 346.C5+$1.10Jkga1
$ 14.15+$1.10Jkga1
1-114" & 1-112"
Z'
'$'
4"
er
e"
10"
12"
00
1. Levelized monthly bills for residential sewer service is based on each account's winter
consumption, defined as the average of the previous December, January, and February
consumption,
2. The industrial waste surcharge in addition to any sewer service charges defrays the cost of
treating above "norma'" strength waste and is levied at the rate of $0.14 per pound each of
BOD & SS.
The following graphs show the average monthly combined water and sewer bill for residential and
commercial 1-1/2 inch meter customers. Note that Augusta-Richmond, Columbia County, and
North Augusta use levelized billing for residential sewer charges and the bills have been adjusted
accordingly. Also, the commercial water and sewer bills do not include an industrial surcharge.
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Graph 1 - Residential Water and Sewer Bill Comparison
$140
$40
-Columbia County'
- - - North Augusta (Inside)'
W North Augusta (outsidet
- Aiken (inside)
.. Aiken (outside)
$120
$100
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! $80
c
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III
..
GI
>
or(
"
$20
$0
o
5
10 15 20
Average Water Use (thousands of gallons)
25
3J
:1
* Bills adjusted for levelized sewer billing
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,Graph 2 - Commercial 1-1/2" Meter Water and Sewer Bill Comparison
$16,CXD
$4,CXD
- -Columbia County
- - - North Augusta (inside)
- - - North Augusta (outside)
- . - . Aiken (inside)
- - Aiken (outside)
$14,CXD
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iii
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C
~ $8,CXD
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>
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$2,CXD
$0
o
500
1,CXD 1.500 2,CXD 2,500 3,CXD 3.500 4.CXD 4,500 5,CXD
Average Water Use (thousands of gallons)
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
Selected comparative bills for residential and 1-1/2" commercial customers from the above, graphs
as well as for commercial 6" customers has been summarized in the following table. Comparisons
for commercial customers with water meters larger than 6" cannot be made since the rate
structures for the surrounding systems do not support the larger customers.
Table 11 - Comparison of.Selected Total Water and Sewer Monthly Bills
gallons Augusta- Columbia North North Aiken Aiken
per Richmond County Augusta Augusta (Inside) (outside)
month (inside) (outside)
Residential
1,000 $14,70 $15,40* $17,19 $28,54 $13.25 $26.49
4,000 $21,45* $22,60* $23,79 $38.08 $21.24 $42.47
10,000 $28,22* $32.85* $34,94 $57.28 $38.95 $n.90
30,000 $50.78* $76.60* $71.26 $119.60 $120,89 $241,78
Commercial 1-1/2 Inch meter
10,000 $58,45 $76.00 $43.85 $70;88 ' $64,12" , $128.25
30,000 $99.85 $124.00 $101.70 $162.18 $122.41 $244.83
50,000 $141.25 $172.00 $158.90 $252,18 '$180.70 $361.40
100,000 $244,75 $292.00 $299,90 $473.18 $323,73 $647.46
Commercial 6 Inch meter
500,000 $1,258,60 $2,032.00 $1,448.95 $2,283,28 $1,767.23 $3,534,46
1,000,000 $2,293.60 $3,232.00 $2,808.95 $4,393.28 $3,213.86 $6,427. 72
5,000,000 $10,573,60 $12,832.00 $12,278.95 $18,003.28 $13,802.09 $27,604.19
* Adjusted for levelized billing
8. REVENUE
1996 revenue from the water and sewer sales and other miscellaneous revenue (described in the
following section) is forecast at $32,755,537. These calculations are summarized in Appendix B
for water and sewer sales and other miscellaneous revenue. With the exception of Capital Projects
funded by Bonds or Loans, Canal Revenue, Sinking Fund Interest Revenue, and other Special
Revenues, these funds constitute the reyenue available annually for operating the Water and
Wastewater Systems. Appendix F shows revenue and expense history since 1991.
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October 1996
9. MISCELLANEOUS REVENUE
Separate charges are made for water and sewer taps, laboratory serviCes provided for others, and
septic tank sludge deliveries to the Wastewater Treatment Plant (Appendix B).
Table 12 -1996 Miscellaneous Revenue Estimate
Taps, Lab, Septic, Etc,
Industrial Surcharges
Interest Income
Big Meter Income
Total Misc. Revenue
Total
$ 728,551
$ 1,652.296
$ 800,000
$1,079,188
$ 4,260,035
10. OPERATION AND MAINTENANCE COSTS
The Operation and Maintenance Costs for both the Water System and the Sewer System have been
determined by using data developed in the 1995 Water and Sewer Rate Study.
Operations and maintenance costs are forecast using unit costs applied to the forecast number of
water and sewer customers. Because the additional customers added each year represent largely
marginal costs, the unit costs 'are increased by a factor of 2% per year in which the marginal costs
moderate the inflation rate. In the engineer's Opinion, this factor agrees more closely with the
actual O&M cost growth realized by municipal water and sewer systems than would an adjustmelrt
for the full rate of inflation. The 1996 forecasts used in determining rates are shown in the
following table.
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October 1996
Table 13 - Summary of O&M Costs
City 1994-
Actual
County
1995
Budget
Total
Combined 1996
Predicted
% Total
%
% Total
Water O&M Expense 38% $ 3,243,438 53% $ 3,657,901 45% $ 7,085,726
Total Sewer O&M Expense 62% $ 5,210,728 47% $ 3,269,230 55% $ 8,705,576
Total O&M Expense 100% $ 15,791,302
· Because of financial constraints on the City in 1995, the expenses of 1994 are considered to be
more representative of O&M costs.
11. PROJECTS IN PROGRESS BY OTHER FUNDING
The following list of projects are completed or are nearing completion:
Table 14 - Phase I Combined Sewer Overflow Projects
Inner City East Basin
Inner City West Basin, Phase I-A
Glass Factory Avenue Basin, Phase II
Metcalf Street Basin, Phase IV
Chaffee Avenue Basin, Phase II
Fifth Street Basin, Phase I
Fifth Street Basin, Phase II
Total
1,030,986.20
1,129,837,94
2,229,723.49
1,725,313.02
2,993,564.23
2,514,674.14
1,234,203.43
$ 12,858,302.45
For these projects, $12,000,000 is being financed by GEFA (4 % interest) loan. The additional
program costs ($858,302) for this portion of the CSOs, will be financed from the system capital
reserves of Augusta-Richmond Utility Department. In addition, costs are listed below for the
remaining projects designed to eliminate the remaining combined sewer overflows by separation.
These projects also are being funded from SPLOST funds with short term financing by SRF loan,
if needed.
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October 1996
Table 15 - Phase" Combined Sewer Overflow Projects
Division Street Basin
Inner City, Phase I-B
Turknett Springs Basin, Phase I
Turknett Springs Basin, Phase II
Turknett Springs Basin, Phase III
Glass Factory Avenue Basin, Phase III
Metcalf Street Basin, Phase V
Total
1,539,870,39
2,000,000
849,001,30
1,008,862.62
1,258,429,65
2,492,625,85
2,691,284.88
$11,840.074.69
12. DEBT SERVICE
The Water and Sewer Systems at the present time have two City Bond Issues and three County
Bond Issues requiring annual amortization payments. Previously refunded bonds are not included
in the System's outstanding long-term debt since the System legally satisfied its obligation with
respect to the refunded bonds through the refunding transactions. The debt service requirements
for the five Bond Issues are listed in Appendix E for the City and the County and a summary is
shown in the following table.
Table 16 -1996 Debt Service Summary
City Bonds and GEFA Loans
County Bonds
Total Debt Expense (Annual)
$ 2,096,481
$ 2,284,000
$ 4,380,481
In calculating system expenses, this report assumes that the existing bonds will be refunded in full.
The debt service shown in the Forecast Revenues and Expenses table (see Table 21) includes the
debt service required to refund these bonds as furnished in preliminary form by the Bond
Underwriter. The remaining principal on the five outstanding bonds is shown in the following
table.
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. October 1996
Table 17 - Bonded Indebtedness as of January 1, 1997
Richmond County Bond Series 1986
Richmond County Bond Series 1987
Richmond County Bond Series 1991
City of Augusta Bond Series 1972
City of Augusta Bond Series 1991
Total Debt
$ 6,220,000
$ 2,924.592
$ 7,655.224
$1,125,000
$ 8,420,000
$ 26.344.816
13. CAPITAL IMPROVEMENTS PROGRAM
The Capital Improvements Program was prepared to provide a perspective of the renewal and
extension projects currently anticipated for the Augusta-Richmond water and sewer systems.
Except for the combined sewer overflow projects and the constructed wetlands projects, ~e exhibit
, is a comprehensive list of currently forecast capital replacements and extensions.
Appendix C lists the known capital improvement projects for the City and County, respectively.
These are revised lists largely identical to the Capital Improvement Plans (CIPs) that existed for
the two systems. A new long-term comprehensive CIP for the water system is now in preparation
as a part of the hydraulic network analysis of the combined water system. This analysis will
further refine the cOmbined capital needs for the merged systems but is unlikely to depa~ from the
needs of the current program. Beca1.isethe sewer system already was operated as a combined
system, significant Changes in the planned program are not anticipated.
From Appendix C, Table C-9, the five,Year Capital Improvements Program for the City and the
County systems is $61,935,OOO.To allow the needed work of the City and County systems to
proceed at once, however, the folloWing list has been selected for inclusion as the Capital
Improvement Program for this bond issue.
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Table 18 -1996 Bond Issue Utilities Department Capital Improvement Projects
Water Supply and Treatment Cost
W1, Baffling and Repiping of Clearwells $ 1,100,000
W2, Distribution Improvements to Connect Urban and Suburban Systems $ 2,500,000
W3. Kimberly-Clark Wellfield and 10 Mgd Treatment Plant $ 4,200,000
W4. New 60. Raw Water Line - $ 9,400,000
W5. 1 MG Elevated Storage Tank $ 1,000,000
W6. Extensions to unserved areas $1,000,000
Subtotal Water Projects $ 19,200,000
Wastewater Collection and Treatment Cost
S1, Site Purchase, Wetland Treatment Phase III $650,000
S2. Rae's Creek Sewer Replacement Phase I, II, III, and IV $ 5,600,000
S3, Spirit Creek Trunk Rehabilitation $ 2,000,000
54. Kimberly-Clark Trunk Sewer $ 700,000
S5. Sewer Rehabilitation: Rocky Creek, Butler Creek $ 2,000,000
S6, Upgrade Industrial Trunk, Goshen Industrial to WWTP $ 1,400,000
S7, Main Lift Station Rehabilitation $ 2,000,000
sa, Mid-City Supplemental Line $ 3,000,000
S9, RCCI Trunk Sewer Extension $ 400,000
S10. Lift Station Force Main, Bennock Mill to Intemational Drive $ 1,000,000
S11, Odor Control J.B, Messerly WWTP $ 2,750,000
S12. Extensions to Unserved Areas $ 2,000,000
Subtotal Wastewater Projects $23,500,000
TOTAL $ 42,700,000
The total of the programs of the City and County systems selected for funding in this bond issue is
$42,700,000. Descriptions of the water supply and wastewater projects selected for funding in this
bond issue follow:
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Table 19 - Description of Capital Improvement Projects
I
W1, A clearwell valving and baffling project for the Water System will increase the disinfection
parameters of the water plant to meet mandated standards,
W2, Distribution system improvements to connect the urban and suburban systems will provide the
interconnections for transfer of water between the systems; this will add redundancy of storage
and of supply source, By increased reliance on the existing surface water facilities, it also will
permit the protection of the aquifer supplying the wells from long term drawdown, In addition, a
project is included to reduce total trihalomethane (TTHM) residuals to bring system finished water
tests within appropriate limits by construction of the Flagler Road-Powell Road looped line,
W3. To strengthen the water supply in South Richmond County a 10 Mgd Well Field and Treatment
Plant is planned for water drawn from the Tuscaloosa formation in a site owned by the
Development Authority of Richmond County and known as the Kimberly Clark Site, The property
is located near the intersection of Horseshoe Road and Highway 56. The plant will aerate to
reduce iron and dissolved gases, will disinfect, adjust the acidity, and add corrosion control.
W4. To replace a troubled 42" prestressed concrete cylinder pipe raw water line, a new 60" raw water
pipeline is planned along an alternate route. The new line will increase capacity to the existing
water plant and will provide for redundancy,of raw water supply,
W5. A one million gallon elevated sto~ge tank is proposed for the Steven's Creek area near the
Richmond County Line
W6. Extension of water lines to unserved areas where primary service lines are in place.
S1.ln anticipation of expanding the Wetlands Treatment system, the purchase will be made of the
site adjoining the current phase I and phase II constructed wetlands project.
S2, Because of a major population increase in the Rae's Creek Basin, the existing 18" diameter sewer
line installed in the late 1950's is seriously overloaded and the concrete pipe is in very poor
condition. This project will proceed with replacement with a 48" gravity sewer for the most
deficient reaches of this line,
S3, Rehabilitation is planned for the existing 36" and 30" diameter Spirit Creek trunk sewer line, This
is a reinforced concrete pipe sewer line which is structurally sound but has serious leakage of the
joints, Rehabilitation of this line will relieve the Spirit Creek Sewage Treatment Plant from the
substantial inflow and infiltration now reaching the plant.
54, This project extends new sewerage into developing areas and an area planned for further
industrial development.
85. Reduce infiltration, replace bad sections of pipe, and augment flow in the trunk sewers of Rocky
Creek and Butler Creek to improve the integrity of the existing sewer and to upgrade where there
is excess flow.
56. This sewer line in the Goshen Area requires rehabilitation to reduce infiltration and upgrade of the
industrial waste pipeline to the J.B, Messerly Wastewater Plant.
S7, Serious chemical penetrations into the concrete walls of the lift station wet well require prompt
attention in order to maintain the integrity of the concrete structure of the lift station constructed in
1967,
S8, This project will add a lift station and force main to transfer the increased flow from the Rae's
Creek Basin by bypassing the 48" mid-city portion of the main trunk line to deliver the flow to the
72" trunk sewer to the Messerly WWTP.
S9. A sewer line extension is needed to serve the new Richmond County Correctional Institution.
S10. This Lift Station And force main from BennockMill Road to International Drive will provide sewer
service to a developing industrial area, '
S11, Correction and control of odor at the J.B. Messerly wastewater treatment plant has been a
recurrent problem which will be moderated by this project
S12. Extensions of sewer lines in developing basins to serve current water only customers,
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
14. RENEWAL AND EXTENSION
To provide for systems with continuing vitality, Replacement Costs (Renewal) must be covered by
Revenue. A Renewal Program is forecast in Appendix D for the City and the County Systems to
provide future funding for replacement based on depreciation in accordance with the useful life
estimates as follows:
Table 20 - Useful Life of Water and Sewer System Components
Pipelines
Pumping Facilities
Treatment Plants
Storage Tanks
50 years
30 years
40 - 60 years
60 years
The forecast net annual renewal and extension need is $2,388,000. This amount is smaller than the
, ,
actual total R&E need since the proposed bond issue funds R&E projects. After the five year
construction period for bond projects, the forecast annual R&E need is $11,600,000/year. In
addition to the bond issue construction, however, completion of the current Capital Improvement
'Plan actually will spend $3,847,000 per year ofR&E funds for, the first five years and $6,589,000
per year for the five years thereafter (see Appendix C). These amounts are the R&E expenses that
appear in the Revenue and Expenses spreadsheet (Table 21 and Table 22).
The current R&E Reserve Account balance represents a minimal R&E need. To place a system on
a' "pay-as-you-go',' plan requires a more conservative calculation of R&E needs based on
Remaining Life of system components. In periods of reasonable bond interest rates, such a plan is
not advisable since it places undue burden on current customers. It is recommended that the
system instead continue the more traditional choice of relying substantially on revenue boDds for
major replacement needs. To safeguard the system from unusual financial distress resuhing from
sudden anellor catastrophic replacement needs, it is recormnended that the reserve fund be
maintained with a goal ofa minimum of two years and a maximum offive years of Useful Life
replacement needs.
'ZEL, ENGINEERS,
10/19/96:9614 rpt Bond Issue
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
15. FORECAST REVENUE AND EXPENSES
To provide a forecast of revenue and expenses for 10 years, the tabular information separately
shown or developed in this report is combined in the following tables. Table 21 shows forecast
revenue and expenses for a ten year period using current market estimates (as provided by the bond
underwriter) to project debt service for the proposed bond issue. Table 22 shows the same
information as the previous table except that debt service is forecast using worst case rates.
Forecasts are based on the following assumptions, listed in order of their appearance in the tables:
Industrial Surcharge is forecast to grow in proportion to the number of sewer customers.
Miscellaneous Fee Revenue is forecast to grow in proportion to the number of total water
and sewer accounts,
Interest Revenue is assumed to remain at 1995 levels.
Water and Sewer Charges are forecast to grow according to the Residential/Commercial
and Water/Sewer account forecasts. Water and Sewer Charge forecasts assume that
water and sewer demands per customer remain at 1995 levels. This assumption is
supported by water and sewer production and treatment records.
Operations and Maintenance Costs are forecast to increase according to the customer
increase. In addition, the cost per customer is forecast to grow by 2% per year. The
2% increase reflects a conservative allowance for inflation moderated by the effect of
O&M marginal costs.
Debt Service for 1996 is based on the'required service under the existing bond issues. In
Table 21, debt service for 1997 and beyond uses current market rate estimates as
provided by the bond underwriter. In Table 22, debt service is forecast using worst
case rates for $79.64M.
GEFA and SRF Loans are forecast based on the existing amortization schedule.
Renewal and Extension Needs are forecast to grow at 1 % per year to accoWit for growth
of systeii1 infrastructure. Increases due to Inflation is assumed to be offset by returns
from investment of unused R&E funds.
'ZEL, ENGINEERS,
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October 1996
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Customer growth in recent years has been approximately 0,5% per year in the city system ~d
2.0% in the county system. A linear 1.5% growth per year has been used to show the increase in
customers and water use for the pwpose of forecasting revenue. Depreciation is accommodated by
funding replacement costs through Renewal and Extension.
'ZEL, ENGINEERS;
10/19/96:9614 rpt Bond Issue
Page 26
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
16. CONSTRUCTION PROGRAM
The construction schedule is predicated upon the status of readiness, the lead time, and time needed
for construction of the various projects. The current status of program projects is as follows:
WI, S2 (Sec. 1,2,3) . Design drawings complete; ready for bid
W2, W6, Sl, S2 (Sec. 4), S3, S4, S5, S9, SIO . Projects with a short lead time
W3, W4, S6, S7, S8, Sll, S12. Projects with longerleadtimes
Project costs coupled with estimates of time for construction of the projects have been evaluated to
produce the earliest completion practical in the following schedules for construction and the time
schedule for expenditures.
Table 23 - Estimated Construction Schedule for B()~d I,ssue Projects
1897 1898
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'ZEL, ENGINEERS,
10/19196:9614 rpt Bond Issue
Page 29
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Augusta-Richmond Utilities Department
Revenue Bond Issue Engineering Report
October 1996
17. ENGINEER QUALIFICATIONS
ZIMMERMAN, EVANS AND LEOPOLD, INC. (ZEL) has been the principal Consuhing
Engineer for the 9ty of Augusta Water and Sewer Departments since 1958 and since 1946
through its predecessor company. Similarly, ZEL has provided guidance in the development of the
Richmond County Water System by design of Water Plants No, 1, No.2 and their associated well
fields as well as the design of the Spirit Creek Basin Sewage Treatment Plant. The firm has
provided similar services during this period for the central and upper Savannah River area. ZEL is
led by six Professional Engineer partners, each with 20 to 40 years water and wastewater
experience supported by its staff of professional engineers, graduate engineers, draftsmen, and
other staff.
While the City and County historically have provided routine engineering services and construction
management for most of the water and sewer system needs, both ~ve made'extensive use of its
community Consulting Engineers to assist with engineering studies, engineering design and
contract management.
Through this combined effort the City and County have been provided economical, efficient, and
progressive solutions to the water and wastewater programs. Consulting engineers for the projects
included in this Bond Issue are Augusta firms as follows: ZEL Engineers, PM & A., Inc., W. R.
Toole Engineers, Brian G. Besson and Associates, James G. Swift and Associates, and CRW, Inc.
aU of which have practiced as Consulting Engineers for 20 years or more in Augusta.
18. ENGINEER'S OPINION
Because ofZEL Engineers' knowledge of the Augusta-Richmond County water and wastewater
systems which resuhed from preparing reports, design projects, inspection of the water and
wastewater facilities and interviews with the Augusta-Richmond water and wastewater staff the
following conclusions are drawn with respect to this Bond Issue.
1. Forecasts of growth of the water and sewer system and the resulting revenues from the water
and sewer services can be expected to fully fund this bond issue, as well as provide adequate
'ZEL, ENGINEERS,
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October 1996
funding for other projects of the Capital Improvements Program including the needed renewal.
The designated funds from SPLOST will refund the construction costs of the Phase II CSO
projects and the constructed wetlands projects financed in part by GEF A and SRF loans,
2. The Capital Improvements Program of Appendix C is sufficiently comprehensive and accurate
to represent the capital improvement needs of the Augusta-Richmond Utility water and sewer
systems,
3. The Water and Sewer Departments have continued to maintain the systems in satisfactory
repair and operating condition, and in the opinion of ZEL Engineers, the water and wastewater
systems have been operated and maintained in accordance with standard utility practice or
better. The Augusta-Richmond Utility Department staff is considered to have reasonable
experience and qualifications for the responsibilities of operating and maintaining the water
and sewer systems.
4. The useful life of the projects included in this bond issue will substantially exceed the 25 year
term of this bond issue. Provision also has been made in the Capital Improvements Program to
provide renewal and extensions to ensure the continued viability of the systems.
5. The combined sewer overflow (CSO) elimination projects now under construction are projects
which eliminate sewage discharges by separation of the stormwater and the sanitary sewage
collection systems. This a conservative and effective method of eliminating the discharge of
untreated wastewater, and is a conventional solution for this type of work in Georgia.
6. Completion of the CSO projects and the constructed wetlands project will provide the facilities
to bring the Augusta wastewater discharges into compliance with the NPDES Permits and
wasteload allocations of the City.
7. The budgets for the Capital Improvements of this bond issue are reasonable and it is our
opinion that the projects will be completed promptly and well within the financial capabilities
of the system.
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October 1996
Appendix A: WATER AND SEWER SYSTEM HISTORY
Table A-i. City of Augusta Water and Sewer Customer History
Water Customers* Sewer AcCounts*
Year In-C' Out Total t:. % In-Ci Out Total t:. %
1971 26,674
1979 28,575 1,901 O,9%/yr, 24,650
1988 31,230 2,655 1.0%/yr. 15,929 9,896 25,825 1,175 O,5%1yr.
1994 16,602 15,082 31,684 454 0.2%/yr, 15,969 10,868 26,837 1,012 0.6%/yr,
1995 32,227 297 1.7%/ r. 26,943 0,2%/ r,
Table A - 2. Richmond County Water and Sewer Customer History
Water Accounts* Sewer Accounts*
J,B, Messerly Spirit Creek Sewer
Year Total Change Total Change Total Change Total
1979 14,189 12,242 12,242
1988 24,413 10,224 6,2%/Yr, 16,815 4,573 3.6%/yr, 16,815
1992 26,653 2,240 2.2%/yr, 17,144 329 0.5%/Yr. 787 17,931
1993 27,101 448 1,7%/yr, 17,310 166 1,0% /yr. 798 11 1.4% /yr. 18,108
1994 27,289 188 O,7%/yr, 17,544 234 1.4%/yr. 841 52 6.5% /yr. 18,385
1995 28,030 741 2,7%/yr. 17,788 216 1.2% /yr, 856 14 1.7% /yr, 18,615
Table A - 3. Augusta-Richmond Customer History
1995 City of Augusta System
1995 Richmond County System
Water Accounts
32,227
28,030
TOTALS
1996 Residential
1996 Commercial
TOTAL
60,257
54,707
,6,272
60,979
Sewer Accounts
JBM 26,943
JBM 17,788
Spirit Creek 856
45,587
41,562
4,396
45,958
*includes up to 9% inactive accounts, Active acCounts used in determining revenue
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Revenue Bond Issue Engineering Report
October 1996
Table A - 4. Forecast of Active Water and Sewer Accounts
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
W~ter Residential 49,537 49,785 50,033 50,284 50,535 50,788 51,042 51,297 51,553 51,811
Commercial 6,270 6,395 6,523 6,654 6,787 6,923 7,061 7,202 7,346 7,493
Total 55,807 56,180 56,557 56,937 57,322 57,710 58,103 58,499 58,900 59,304
Sewer Residential 38,625 38,818 39,012 39,207 39,403 39,600 39,798 39,997 40,197 40,398
Commercial 4,394 4,482 4,572 4,663 4,756 4,852 4,949 5,048 5,148 5,251
Total 43,019 43,300 43,584 43,870 44,160 44,452 44,747 45,045 45,346 45,650
Table A - 6. Surface Water (Former City) Water System Statistical History
Water Treatment History,
Daily Maximum (Mgd)
Daily Average (Mgd)
Daily Minimum (Mgd)
Total Annual Volume (MG)
Number of Water Meters
Raw Water Capacities
Primary Pumping
Backup Pumping
Raw Water Supply Mains (30",36", and 42" mains)
Raw Water Storage Reservoirs
Treated Water Capacities
Permitted Treatment Capacity
Clearwell Storage
Elevated Tank Storage
High Service Pumps
Backup High Service Pumps
Primary Water Distribution Mains (6" arid larger)
1991
34.0
24.3
10.0
8,858
32,025
1992
35.0
22.6
16,0
8,249
32,065
1993
38,0
23.6
15.5
8,614
32,105
1994
35,7
22.6
16.0
8,249
32,146
1995
34.2
22,7
16.0
8,283
32,443
50 Mgd
30 Mgd
60 Mgd
124 MG
45 Mgd
'15MG
2,75 MG
34,5 Mgd
19.6 Mgd
460 Miles
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Revenue Bond Issue Engineering Report
October 1996
Table A - 6. Ground Water (Former County) Water System Statistical History
1991
15,9
11,0
6,7
4,027
26,046
Water Treatment History
Daily Maximum (Mgd)
Daily Average (Mgd)
Daily Minimum (Mgd)
Total Annual Volume (MG)
Number of Water Meters
Raw Water Capacities
Well Pumping
Well Water Supply Mains
Treated Water Capacities
Permitted Treatment Capacity
Clearwell Storage
Ground and Elevated Storage Tanks
, High Service Pumps
Backup High Service Pumps
Booster Pumps
Backup Booster Pumps
Primary Water Distribution Mains (6" and larger)
1992
17,0
11,5
7,8
4,196
26,653
1993
17,0
12.2
7.8
4,438
27,101
1994
17,3
12.0
7.2
4,381
27,686
1995
18,2
12.2
9.6
4,454
28,218
23.1 Mgd
30 Mgd
18.4 Mgd
2MG
15,5 MG
23,4 Mgd
5.9 Mgd
20.0 Mgd
9.5 Mgd
550 Miles
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Revenue Bond Issue Engineering Report
October 1996
Appendix 8 - Revenue Calculation
Table B-1. 1996 Estimated Revenue
Rates
Residential
Base , Unit
,per acct. per kgals
Water $ 5,53 $ 0,76
Sewer $ 9.40 $ 0.87
Water $ 6.00 $ 0.97
Sewer $ 9.90 $ 1.10
Commercial
Predicted Revenue
Consumption Annual Revenue
Accts. MGD ' kgalslyear Base Charge Unit Charge Total
Res. Water 49,537 14.4 ' 5,245,050 $ 3,287,268 $ 3,986,238 $ 7,273,506
Comm. Water 6,270 18.0 6,580,950 $ 451,436 $ 6,383,522 $ 6,834,957
Big Meters $ 455,774
Total Water 55,807 32.4 11,826,000 $ 3,738,704'. $ 10,369,760 $ 14,564,237
Res. Sewer 38,625 9.1 3,314,200 $ 4,356,910 $ 2,883,354 $ 7,240,264
Comm. Sewer 4,394 16.5 6,022,500 $ 522,026 $ 6,624,750 $ 7,146,776
Big Meters $ 623,414
Total Sewer 43,019 '25.6 9,336,700 $ 4,878,936 $ 9,508,104 $ 15,010,453
Total Water and Sewer Sales $ 29,574,691
Tap fees; lab fees, septic tank fees, etc. , $ 728,551
Industrial Surcharge $ 1 ,652,296
Interest Income $ 800,000
Total Water and Sewer Income $ 32,755,537
Table B-2. 1996 Miscellaneous Revenue Estimate
, Source
Wastewater Lab
Taps and Cut-On Fees
Septic Tank Sludge
Sewer Extension Fees
Total Miscellaneous Revenue
Revenue
$ 54,480
572,617
70,221
31,233
$ 728,551
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Revenue Bond Issue Engineering Report
October 1996
Appendix C: Utilities Department Capital Improvements Program
Table C - 1. Former City Water System Improvement Projects
Funding
Source 1995 - 2000 2000 - 2005
Raw Water
. Remodel Repair Turbine's, Drives, & Pumps #1 & tf2. R&E 415,000
. Refurbish Turbine Pump #3 R&E 590,000
. Realign & Refurbish Diesel & Pump #4 R&E 300,000
. Refurbish Turbine Pump #5 R&E 420,000
. Supplement Pumping (To 60MGD) R&E 5,800,000
. Replace 42" Raw Water Line R&E 5,220,000
. Add 60. Raw Water Line Bond (W4) 9,400,000
. Canal License R&E 300,000
. Facilities for Emergency bypass of Wastewater Spills R&E 1,800,000
Flowing Into the Canal
Water Treatment
. Replace Mise, Valves & Equipment R&E 890,000
. Supplemental Construction to Reduce Short Circuiting R&E 100,000
. Additional High Service Pumps (System Stations) R&E 250,000 200,000
. Replacement Contingency R&E 200,000 200,000
Ground Storage
. Construct Additional Storage (Remote) R&E 1,000,000
. Baffling and repiping Clearwells Bond (W1) 1,100,000
. Verify Integrity of Existing Tanks & Repair as Needed R&E 100,000
Elevated Storage
. Construct 1 MG Additional In High Systems Storage Bond (W5) 1,000,000
. Paint & Repair Existing Elevated Tanks R&E 200,000 200,000
Water Distribution
. Lines to connect Surface, Ground Water Systems Bond (W2) 2,500,000 ,
. All projects, except elevated tank, from 9/89 R&E 2,450,000 1,700,000
Distribution System Master Plan
. TTHM Reduction R&E 400,000
Support Facilities
. Office Facilities R&E 530,000
. Remodel Shop Facilities R&E 300,000
. Area Water Laboratory R&E 550,000
. Turknett Retention Basin Reconstruction R&E 250,000
Total $ 24,060,000 $ 14,305,000
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October 1996
Table C - 2. Fonner County Water System Improvement F!rojects
Funding
Source 1995 - 2000 2000 - 2005
Water Production
. 10 Mgd Well Field and Water Plant Bond (W3) $ 4,200,000
Water Distribution
. Priority I Lines Bond (W6) 1,000,000
. System Reinforcement and Extension to Unserved R&E 130,000 2,000,000
Areas
Elevated Storage
. Two Elevated 0.5 MG Elevated Tanks (Willis Foreman R&E 800,000
Rd., Wilson Rd.)
. Renovate 3 Exist Elevated Tanks (Pine Hill, R&E 400,000
Georgetown, Tobacco Rd,) ,
. Booster Station at Brown Rd, Tank R&E 50,000
Total $ 6,580,000 $ 2,000,000
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0 Table C - 3. Fonner City Wastewater System Improvement Projects
Funding
I Source 1995 - 2000 2000 - 2005
Collection System
. Mid-City Supplemental Line Bond (S8) 3,000,000
I . Repair &lor Replace Leaking Lines R&E 4,750,000
. Extend Sewerage to Water Only Custom'ers R&E 2,500,000 2,500,000
. Rae's Creek Sewer, Replacement./Additions Bond (S2), 5,600,000 4,000,000
I R&E
. Gordon Hwy, Sewer" R&E 320,000
. Molly Pond Sewer R&E 50,000
I . Martha Lane Sewer R&E 45,000
. Misc. Projects R&E 170,000
I '. Mis~. Replacements & Contingency R&E 500,000
. Combined Sewer Separations SPLOST '
Lift Stations
I . Repair Main Lift Station Bond (S7) 2,000,000
. Repair & Replacement R&E 40,000 40,000
. Valley Park Lift Station R&E 50,000
I . Second Street Lift Station R&E 1,500,000
, Wastewater Treatment
I . Belt Thickener R&E ,1,200,000
. ' Odor Control: J.B. Messerly WWTP Bond (S11) 2,750,000
Effluent Facilities
I . Site Purchase, Constructed Wetlands Bond (S1) 650,000
. Advanced Wastewater Treatment to eliminate SPLOST
Savannah River outfall requirement
I ' Land Application ..
. Equipment Replacement R&E 250,000 250,000
.' Land Lease/Or Purchase R&E 100,000
I
Total S 20,125,000 S 12,140,000
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October 1996
Table C - 4. Former County Wastewater System Improvement Projects
Funding
Source 1995 - 2000 2000 - 2005
. Spirit Creek Trunk Rehabilitation Bond (S3) $ 2,000,000
. RepairlReplace Butler Creek Trunk Sewer Bond (S5) 1,000,000
. Repair/Replace Rocky Creek Trunk SeWer Bond (S5) 1,000,000
. Extend Sewer lines to Water Only Customers Bond (S12) 2,000,000
. Kimberly Clark Trunk Sewer Bond (54) 700,000
. RepairlExtend Other Priority lines R&E 1,670,000 4,500,000
. Upgrade Industrial Trunk Bond (S6) 1,400,000
. RCCI Trunk Sewer Extension Bond (S9) 400,000
. Lift Station and Force Main: Bennock Mill to IntI. Blvd, Bond (S10) 1,000,000
Total $11,170,000 $ 4,500,000
Notes:
1. The combined sewer overflow projects (CSO's) no longer appear in th~ list of Capital Improvements ,
because construction is almost complete: Phase I: $ 12,858,302 and Phase II: $11,840,075.
2. Other unlisted projects between 1995 and 2000 included in the funding by the Special Purpose Local
Option Sales Tax (SPLOST) are the advanced wastewater facilities (Phase I $6,000,000 and Phase II
$4,000,000),
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October 1996
Table C - 5. Combined Water System Five Year Capital Improvement Plan
Funding
Water System Capital Improvement Projects Source 1995 - 2000
. Raw Water Pump Station - Refurbish Turbine Pump #3 R&E $ 590,000
. Replace 42" Raw Water Line R&E 5,220,000
. Add 60" Raw Water Line Bond (W4) 9,400,000
. Canal License R&E 300,000
. 10 Mgd Well Field and Water Plant Bond (W3) 4,200,000
. Highland Ave, WTP - Construction to Reduce Short Circuiting R&E 100,000
. Highland Ave, WTP - Additional High Service Pumps R&E 250,000
. Highland Ave. WTP - Replacement Contingency R&E 200,000
. Baffling and repiping Highland Ave. Clearwells Bond (W1) 1,100,000
. Verify Integrity of Existing Surface Water Tanks & Repair as Needed R&E 100,000
. Elevated Tanks (0.5 MG at Willis Foreman Rd., and Wilson Rd.) R&E 800,000
. Renovate Elevated Tanks (Pine Hill, Georgetown, Tobacco Rd.) R&E 400,000
. Booster station at Brown Rd. Tank R&E 50,000
" ,
. Construct 1 MG Elevated Tank - Surface Water System Bond (W5) 1,000,000
. Paint & Repair Existing Elevated Tanks - Surface Water System R&E 200,000
. Ground Water System Priority I Lines Bond (W6) 1,000,000
. Ground Water System Reinforcement and Extension to Unserved R&E 130,000
Areas
. Lines to connect Surface, Ground Water Systems Bond (W2) 2,500,000
. All projects, except elevated tank, from 9/89 former City Distribution R&E 2,450,000
System Master Plan
. TTHM Reduction - Highland Ave. WTP R&E 400,000
. Turknett Retention Basin Reconstruction R&E 250,000
Subtotal Bond $19,200,000
Subtotal R&E $11,440,000
Total Water System Capital Improvement Projects $30,640,000
Table C - 6. Combined Water System Five Year CIP Expense Summary
1996 1997 1998 1999 2000 Total
Bond $8,256,410 $6,605,128 $4,338,461 $19,200,000
R&E $457,600 $2,745,600 $2,745,600 $2,745,600 $2,745,600 $11,440,000
Total $457,600 $11,004,007 $9,352,726 $7,086,060 $2,745,600 $30,640,000
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Revenue Bond Issue Engineering Report
October 1996
Table C -7. Combined Sewer System Five Year Capital Improvement Plan
Sewer System Capital Improvement Projects
. Spirit Creek Trunk Rehabilitation
· Repair/Replace Butler Creek Trunk Sewer
· Repair/Replace Rocky Creek Trunk Sewer
. Former County - Extend Sewer Lines to Water Only Customers
. Kimberly Clark Trunk Sewer
· Former County - Repair/Extend Other Priority Lines
. Upgrade Industrial Trunk
. RCCI Trunk Sewer Extension
. Lift Station and Force Main: Bennock Mill to IntI. Blvd,
. Mid-City Supplemental Line
. Former City - Extend Sewerage to Water Only Customers
. Rae's Creek Sewer, Replacement./Additions
. Gordon Highway Sewer
. Molly Pond Sewer
. Martha Lane Sewer
. Former City Misc. Projects
. Former City Combined Sewer Separations
. J.B. Messerly - Repair Main Lift Station
. Former City - Repair & Replacement
. Valley Park Lift Station
. Second Street Lift Station
. J.B, Messerly - Belt Thickener
. J,B. Messerly - Odor Control
. Site Purchase, Constructed Wetlands
. Advanced Wastewater Treatment to eliminate Savannah River outfall
requirement
. J,B, Messerly land application - Equipment Replacement
Subtotal
Subtotal
Total Sewer System Capital Improvement Projects
Funding
Source
Bond (S3)
Bond (S5)
Bond (S5)
Bond (S12)
Bond (S4)
R&E
Bond (S6)
Bond (S9)
Bond (S10)
Bond (S8)
R&E
Bond (S2)
R&E
R&E
R&E
R&E
SPLOST
Bond (S7)
R&E
R&E
R&E
R&E
Bond (S11)
Bond (S1)
SPLOST
R&E
Bond
R&E
1995 - 2000
$ 2,000,000
1,000,000
1,000,000
2,000,000
700,000
1,670,000
1,400,000
400,000
1,000,000
3,000,000
2,500,000
5,600,000
320,000
50,000
45,000
170,000
2,000,000
40,000
50,000
1,500,000
1,200,000
2,750,000
650,000
250,000
$23,500,000
$7,795,000
$31,295,000
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Revenue Bond Issue Engineering Report
'October 1996
Table C - 8. Combined Sewer System Five Year CIP Expens~ Summary
1996 1997 1998 1999 2000 Total
Bond $9,007,742 $12,540,242 $1,952,016 $23,500,000
R&E $311,800 $1,870,800 $1,870,800 $1,870,800 $1,870,800 $7,795,000
Total $311,800 $10,880,539 $14,413,040 $3,824,815 $1,870,800 $31,295,000
Table C - 9. Combined Water and Sewer System Five Year CIP Expense S~mmary
1996 1997 1998 1999 2000 Total
Water $457,600 $11,004,007 $9,352,726 $7,086,060 $2,745,600 $30,640,000
Sewer $311,800 $10,880,539 $14,413,040 $3,824,815 $1,870,800 $31,295,000
Total $771,396 $21,886,543 $23,767,764 $10,912,874 $4,618,400 $61,935,000
Table C -10. Expense Summary for CIP Projects Not From Bond Proceeds
1995 - 2000
$11,440,000
$7,795,000
$19,235,000
$3,647,000
Combine Water System
Combined Sewer System
Total Water and Sewer
Average Per Year '
2000 - 2005
$ 16,305,000
$16,640,000
$32,945,000
$6,589,000
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Augusta-Richmond Utilities Department
Revenue Bond issue Engineering Report
October 1996
Appendix 0: Renewal and Extension Requirements
Table 0 - 1. Former City System Renewal (additional R & E req'd above current program)
Item Criteria Replacement Years of Annual Avg.
Cost Life Cost
Water Lines 490 miles @ $15/L.F. $ 38,808,000 50 $ 776,160
Water Plant 45 Mgd @ $1,50/gal $ 67,500,000 60 $ 1,125,000
Raw Water Facilities 50 Mgd @ $0.30/gal $ 15,000,000 35 $ 428,571
Storage Tanks 20M gal @ $0.60/gal $ 12,000,000 60 $ 200,000
....................................................... ..............u................................................. .......................................... ..-...................... ....-......................................
Water System Total $ 103,308,000 $ 2,529,731
Sewer Lines 400 miles @ $30/L.F. $ 63,360,000 50 $ 1,267,200
Wastewater Planti 46.1 Mgd @ $1.50/gal $ 69,201,000 40 $ 1,730,025
Pumping Facilities 60 Mgd @ $0,30/gal $ 18,000,000 30 $ 600,000
...............................-.......................... ....n............................................................ .......................................... ............................. ..........................................
Sewer System Total $ 150,561,000 $ 3,597,225
Total Gross Renewal $ 253,869,000 $ 6,126,956
CSO Projects' Cost (GEFA2+SPLOST) $ (26,350,000 ) 50 $ (527,000)
Const. Wetlands2 Cost (SPLOST) $ (10,000,000) 30 $ (333,333)
Clearwell & TTHM2 Cost (SPLOST) $ (1,600,000) 35 $ (45,714)
-Total Credits' Other Fund $ (37,950,000) $ (906,047)
Total Gross Renewal $ 215,919,000 $ 5,220,909
iJ,8, Messerly WWP serves both City and County
2Projects are funded from sources other than water and sewer system revenue, The projects are deducted
from the current gross renewal requirement since they are not using water and sewer revenue.
Table D - 2. Former City System Extension
Extension costs of the systems are calculated to match the forecast system growth of 0.5% per year
based on the gross renewal requirement.
0.5% x $ 253,869,000 = $ 1,269,345.
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Table 0 - 3. Former County Sys~m,Renewal (additional R & E,req'd above current program)
Item Criteria Replacement Years of Annual Avg.
Cost Life Cost
Water Lines 650 miles @ $15/L.F, $ 51,480,000 50 $ 1,029,600
Wells 24 Mgd @ $O,09/gal $ 2,160,000 35 $ 61,700
Raw Water Lines 80,000 ft. @ $25/L.F. $ 2,000,000 50 $ 40,000
Water Plants (2) 24 Mgd @ $O,20/9al $ 4,800,000 50 $ 96,000
Storage Tanks 10,7M gal @ $O,50/gal $ 5,350,000 60 $ 89,167
Water System Total $ 65,790,000 $1,316,467
Sewer Lines 450 miles @ $30/L.F. $ 71,280,000 50 $ 1,425,600
Spirit Creek WWTP 3.0 Mgd @ $1,OO/gal $ 3,000,000 30 $ 100,000
Pumping Facilities 15 Mgd @ $O,30/gal $ 4,500,000 30 $ 150,000
Sewer System Total $ 78,780,000 $1,675,600
Total Gross Renewal $ 144,570,000 $ 2,992,067
Table 0 - 4. Former County System Extension
Extension costs of the systems are calculated to match the forecast system growth of 1 % per year
based on the gross renewal requirement.
1% x $ 144,570,000 = $ 1,445,700.
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October 1996
Table 0 - 5. Combined Current Renewal and Extension Needs
City system
Gross Renewal (annual)
Extension Requirement (annual)
Gross Renewal (annual)
Extension Requirement (annual)
$ 5,220,909
1,269,345
2,992,067
1,445,700
$ 10,928,021
($ 8,540,000)
$ 2,388,000
County system
Total Annual R&E Need
Bond Issue Credit
$ 42,700,000/5 years
Calculated Net R & E Requirement
Notes:
1, From Appendix C, the Capital Improvement Program (CIP), the actual renewal and extension expense
needed to fund the CIP shown for 1995-2000 is $3,847,000 per year in addition'to the bond '
construction projects, This amount was used in the revenue and expense spreadsheets (Table 21 and
Table 22) beginning in 1996, Annual funding for the five year CIP following the bond construction
period is estimated to be $6,589,000 per year.,
2. Long term R&E requirements must be met from the R&E Reserve Fund and/or from responsible
financing. In periods of reasonable bond rates, additional funding can be accomplished economically
through revenue bonds. This report recommends that the reserve fund be maintained with goals of at
least two years and no more than five years of Useful Life replacement needs.
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October 1996
Appendix E: Debt Service
Table E -1. Total Bonded Indebtedness as of January 1,1997
Bond
Richmond County Bond Series 1986
Richmond County Bond Series 1987
Richmond County Bond Series 1991
City of Augusta Bond Series 1972
City of Augusta Bond Series 1991
Total Debt Expense (Annual)
Table E - 2. Total Outstanding Loans as of June 30,1996
City of Augusta GEFA Loans 1 and 2
Remaining Principal
$ 16,357,772
Refunded bonds are n~ included in the System's outstanding long-term debt since the System
legally satisfied its obligation by consummation of refunding transactions.
The above bonded indebtedness will likely be refinanced as a part of the 1997 bond issue. The
existing debt and the new Capital Improvement Projects may be funded from the same, or separate,
bonds. The following amortization schedule was provided by the Managing Underwriter of the
Bond(s) and assumes two years of Capitalized Interest
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I' Table E - 3. Proposed 1996 Bond Issue Amortization Schedule- Current Market
Year Ending Principal ' Interest Accrued Capitalized Net Debt
I October 1 Interest Interest Service
1997 $980,000.00 $3,460,801.28 $231,534.46 $2,102,617.69 $2,106,649,13
1998 $1,025,000.00 $3,892,865,00 $2,548,627,50 $2,369,237.50
'I' 1999 $1,075,000.00 $3,839,615.00 $4,914,615.00
2000 $1,110,000.00 $3,781,347,50 $4,891,347,50
2001 $1,170,000.00 $3,719,787.50 $4,889,787.50
I, 2002 $1,235,000.00 $3,653,820.00 $4,888,820.00
2003 $1,305,000,00 $3,583,090,00 $4,888,090.00
'!I' 2004 $1,370,000.00 $3,520,450.00 $4,890,450,00
2005 $1,435,000.00 $3,453,320,00 $4,888,320.00
2006 $1,510,000,00 $3,381,570,00 $4,891,570.00
I 2007 $1,585,000.00 $3,304,560.00 $4,889,560.00
2008 $1,670,000.00 $3,222,140.00 $4,892,140.00
2009 $1,755,000,00 $3,135,300.00 $4,890,300.00
1\ 2010 $1,845,000.00 $3,042,285,00 $4,887,285,00
2011 $1,945,000.00 $2,942,655.00 $4,887,655.00
2012 $2,045,000.00 $2,837,625.00 $4,882,625.00
I' 2013 $2,155,000.00 $2,730,262,50 $4,885,262.50
2014 $2,265,000.00 $2;617,125.00 , $4,882,125,00
2015 $2,390,000.00 $2,498,212.50 $4,888,212.50
.~I' 2016 $2,510,000.00 $2,372,737,50 $4,882,737.50
2017 $2,650,000.00 $2,240,962.50 $4,890,962.50
2018 $2,780,000.00 $2,101,837,50 $4,881,837.50
I 2019 $2,925,000.00 $1,955,887,50 $4,880,887.50
'. 2020 $3,080,000.00 $1,802,325.00 ' $4,882,325,00
'I 2021 $3,245,000.00 $1,640,625.00 $4,885,625.00
2022 $3,415,000,00 $1,470,262.50 $4,885,262,50
" 2023 $3,590,000,00 $1,290,975.00 $4,880,975,00
,1\ 2024 $3,780,000.00 $1,102,500.00 $4,882,500.00
2025 $3,980,000.00 $904,050.00 $4,864,050.00
2026 $4,190,000,00 $695,100,00 $4,885,100.00
I' 2027 $4,410,000.00 $475,125.00 $4,885,125.00
2028 $4,640,000,00 $243,600,00 $4,883,600,00
$75,065,000.00 $80,912,818.78 $231,534.46 $4,651,245.19 $151,095,039.13
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Note: The total principal includes Capital Improvements of $42,700,000 (see Table 18), Refunded Bond
1/ Principal of $26,344,816 (see Table 17), and miscellaneous fees,
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October 1996
I Table E - 4. Proposed 1996 Bond Issue Amortization Schedule - Set Size and Rate
Year Principal Interest Accrued DSRF Capitalized Net Debt
I Ending Interest Interest Service
Oct. 1
1997 $1,000,000 $4,484,617.14 $73,969,93 $317,783,51 $2,749,349.63 $2,343,514,07
'I' 1998 $1,060,000 $5,050,057,50 $(274,679,66) $385,192.14 $3,332,545.00 $2,667,000,02
1999 $1,110,000 $4,986,087,50 $501,290,39 $385,192,14 $5,209,604.97
2000 $1,145,000 $4,916,520.00 $385,192,14 $5,676,327,86
I 2001 $1,215,000 $4,842,920,00 $385,192,14 $5,672,727,86
2002 $1,275,000 $4,763,555.00 $569,977.33 $5,468,577.67
2003 $1,190,000 $4,679,045,00 $371,266.50 $5,497,778,50
'I' 2004 $1,260,000 $4,612,405.00 $371,266.50 $5,501,138,50
2005 $1,330,000 $4,540,585.00 $371,266,50 $5,499,318.50
2006 $1,410,000 $4,463,445,00 $371,266.50 $5,502,178,50
I 2007 $1,490,000 $4,380,255,00 $371,266.50 $5,498,988,50
2008 $1,580,000 $4,290,855,00 $371,266,50 $5,499,588,50
'1' 2009 $1,675,000 $4,194,475,00 $371,266.50 $5,498,208.50
2010 $1,780,000 $4,090,625,00 $371,266.50 $5,499,358.50
2011 $1,890,000 $3,979,375,00 $371,266,50 $5,498,108,50
I' 2012 $2,010,000 $3,860,305.00 $371,266.50 $5,499,038,50
2013 $2,140,000 $3,730,660.00 $371,266,50 $5,499,393.50
>,. 2014 $2,280,000 $3,592,630.00 $371,266.50 $5,501,363.50
'I' 2015 $2,425,000 $3,445,570.00 $371,266.50 $5,499,303.50
2016 $2,580,000 $3,289,157.50 $371,266.50 $5,497,891,00
2017 $2,750,000 $3,122,747.50 $371,266,50 $5,501,481.00
I, 2018 $2,925,000 $2,943,997.50 $371,266.50 $5,497,731,00
2019 $3,120,000 $2,753,872,50' $371,266.50 $5,502,606,00
2020 $3,320,000 $2,551,072.50 $371,266.50 $5,499,806.00
,I 2021 $3,535,000 $2,335,272.50 $1,851,315,66 $4,018,956.84
2022 $3,765,000 $2,105,497,50 $274,679.66 $5,595,817.84
,1\ 2023 $4,015,000 $1,858,890,00 $274,679,66 $5,599,210.34
2024 $4,275,000 $1,595,907.50 $274,679,66 $5,596,227.84
2025 $4,555,000 $1,315,895.00 $274,679,66 $5,596,215.34
I 2026 $4,855,000 $1,017,542,50 $274,679.66 $5,597,862,84
2027 $5,170,000 $699,540,00 $274,679.66 $5,594,860,34
2028 $5,510,000 $360,905.00, $4,483,735,31 $1,387,169.69
1\ $79,640,000 $108,854,284.64 $300,580,66 $17,094,455.33 $6,081,894,63 $165,017,354.02
Note: The total principal includes Capital Improvements of $42,700,000 (see Table 18), Refunded Bond
I~ Principal of $26,344,816 (see Table 17), and miscellaneous fees.
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Revenue Bond Issue Engineering Report '
October 1996
Appendix F: Revenue and Expense History
Figure F - 1. Five Year Revenue and Expense History
1991 1992
1994
1993
1996
Industrial City $ 949,300 $ e55,556 $ 961,759 $ 968,023 $ 974,348
Surcharge County $ 535,912 $ 539,38:2 $ 542,894 $ 546,-<<> $ 560,cm
Total $ 1 ,485,~ $ 1,494,946 $ 1,504,663 $ 1,514,453 $ 1,524,348
Taps/Lab City $ 277,666 $ 279,492 $ 281,330 $ 263,186 $ 285,061
Fees! County $ 422,154 $ 424,931 $ 427,725 $ -<<>,547 $ 433,397
Septic Total $ 009,820 $ 704,423 $ 709,CE5 $ 713,734 $ 718,458
City $ 77,775 $ 290,385 $ 161,111 $ 41,719 $ 9,711
Interest County $ 344,913 $ 463,639 $ 415,493 $ 579,E54 $ 911,023
Revenue Total $ 422,688 $ 754,024 $ 576,004 $ 621 ,373 $ 920,734
Residential Water $ 5,316,100 $ 6,150,254 $ 6,598,668 $ 6,625,413 $ 7,073,478
Commercial Water $ 5,328,009 $ 6,164,819 $ 6,614,2$ $ 6,641,103 $ 7,000,229
Water Big Meters (Water)
and Total Water $10,644,808 $12,315,072 $13,212,964 $13,266,516 $14,163,707
Sewer Residential Sewer ,$ 5,1E1,072 $ 5,878,337 $ 6,:D5,926 $ 6,332,488 $ 6,760,744
, Charges Commercial Sewer $ 5,223,484 $ 6,043,006 $ 6,483,636 $ 6,509,975 $ 6,950,233
Big Meters (Sewer)
Total Sewer $10,760,201 $12,448,571 ,,$13,356,196 $13,410,329 $14,317,246
Total W&S Sales $ 21,4(5,009 $24,763,643 $26,569,160 $ 26,676,845 $28,480,953,
Total Revenue $ 24,012,820 .'&1,111,036 $ 29,368,472 $ 29,526,404 $ 31,644,493
Water City Water $ 2,474,152 $ 2,819,878 $ 3,162,368 $ 3,310,944 $ 3,181,148
County Water $ 2,790,312 $ 3,180,216 $ 3,566,473 $ 3,734,033 $,3,587,E51
'O&M Total Water $ 5,264,464 $ 6,cm,094 $ 6,728,843 $ 7,044,977 $ 6,768,799
Cost Sewer City Sewer $ 3,974,836 $ 4,530,260 $ 5,1EO,488 $ 5,319,179 $ 5,110,656
County Sewer $ 2,493,827 $ 2,842;~ $ 3,187,517 $ 3,337,273 $ 3,206,444
Total Sewer $ 6,468,662 $ 7,372,$2 $ 8,268,005 ,$ 8,656,452 $ 8,317,100
Total O&M $11;733,126 $13,372,666 $14,996,847 $15,701,428 $16,086,899
Net Revenue , $12,279,694 $ , . , , . .v...~,81ti, $ 1ti.568,694
City Bonds $ 603,868 $ 1,466,180 $ 1,517,485 $ 1,527,436 $ 1,524,373
Debt County Bonds $ 1,215,242 $ 2,290,926 $ 2,286,6519 $ 2,288,7D4 $ 2,290,064
Service Total DebtService $ 1,819,l10 $ 3,757,106 $ 3,804,144 $ 3,616,140 $ 3,614,437
Coverage RatIo 6.8 3.8 3.8 3.6 4.3
Loans Total GEFA Loans $ , 339,103
Note:
I. Operations and Maintenance expenses include estimated overllead.
2, Totals are calculated from City of Augusta and Richrnond'County Financial Statements for the
years indicated. Sub-Totals are estimated where actual numbers were not: available.
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Revenue Bond Issue Engineering Report
October 1996
,Appendix G: Water and Sewer Rate History
Table G -1. County Water Rates October 1,1991 - March 1996
Meter
Size
5/8 "
3/4"
1"
1 112" ,
2"
3"
4"
6"
8"
10"
12"
Use
(in Gallons)
0- 3,000
0-3,000
0-3,000
0-3,000
0-3,000
0-3,000
0-3,000
0-3,000
0-3,000
0-3,000
0-3,000
Minimum
Charge
$9,30
9.30
9,90
10.30
54.00
66,00
78:00
102.00
150,00
180.00
210.00
Additional Charges
All Meter Sizes
kgal
3-9
9 -14
14 - 19
19 - 999
1 ,000 +
$ / kgal
$1,55
$1.40
$1,35
$1.25
$1.10
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Revenue Bond Issue Engineering Report
October 1996
Meter Size
Table G - 2. County Sewer Rates October 1,1991 - March 1996
5/8" - 1 112"
2"
3"
4"
6"
8"
10"
12"
All Meters
Water Use (kgal/month)
0-3
3-9
9-14
14-19
19-29 ,
29-39
39-49
49 - 59
59 - 69
69 - 79
79 - 89
89 - 99
99 - 109
109 -119
119 - 129
130 - up
130 - up
130 - up
130 - up
130 - up
130 - up
130 - up
130 - up
Above 130
Residential Rate
$5.40
11,00
12,60
13.25
16,00
19,00
23,75
26,75
27,60
32,50
33,75
34.25
41,00
42.00
43.50
69.50
150.50
162.50
175.50
200,50
210.50
240.50
270.50
above + $ 0,50 I kgal
per 1,000 gals
Table G - 3. City Residential Water Rates (Monthly)
Comm./lnduSt. Rate
$ 13.25
17.00
20,50
24.00
27,75
31.25
35:00
38.50
42,00
45,75
49.00
53.00
60.00
63,00
66,00
69,52
150.52
162,52
175,52
200.52
210,52
240.52
270.52
above + $ 0.52 I kgal
per 1,000 gals
In-City Out-of-City
Date Effective Base Costlkgal Base Costlkgal
March 1, 1992 $3.00 $.70 $5,00 $1.05
January 1, 1993 3.50 ,75 5,75 1.10
January 1, 1994 4,00 ,75 6.50 1.10
January 1, 1995 4.50 .80 7.25 1.15
June 1, 1995 4.95 .88 7,98 1.27
January 1, 1996 5,00 ,80 8,00 1,15
10/19/96:9614 rpt Bond Issue
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Revenue Bond Issue Engineering Report
October'l996
Table G - 4. City Residential Sewer Rates' (Monthly)
In-City Out~f-City
Date Effective Base CosUkgal Base CosUkgal
March 1, 1992 $4,00 $,70 $6,00 $ 1.00
January 1, 1993 4,75 .75 7,00 1,05
January 1, 1994 5,50 ,80 8.00 1,10
January 1, 1995 6.25 ,85 9,00 1,15
June 1, 1995 6,88 ,94 9,90 1,27
January 1, 1996 7.00 ,90 10.00 1.20
Table G - 5. Water and Sewer Rates April '96 through August '96
Water Sewer
< 3 kgal $8,00 $6,70
> 3 kgal $5.53 + $O,76/kgal $9,40 + $,87/kgal
Commercial 5/8 & ~ meters' $6,00 + $O,97/kgal $9.90 + $1,10/kgal
, Rate also includes graduated base rate for residential and commercial large meters,
Table G - 6. Residential Water and Sewer Rates Effective September 3,1996
Water Use Water Sewer
< 3 kgal $8.00 $6.70
> 3 kgal $5.53 + $O,76/kgal $9,40 + $.87/kgal'
, Residential sewer bill is level average of December, January, and February use,
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Table ,G -7. Commercial Water and :sewer Rates Effective Sept~mber 3,1996
Meter Size Water Sewer
5/8" - 3/4" $6,00 + $O,97/kgal $9,90 + $1 , 10/kgal
1" $8,50 + $O,97/kgal $14,15 + $1 ' 10/kgal
1-1/4" & 1-1/2" $14,10 + $O,97/kgal $23,65 + $1,10/kgal
2" $20.25 + $O,97/kgal $34.15 + $1.10/kgal
3" $33,90 + $O,97/kgal $57,50 + $1,10/kgal
4" $49,10 + $O,97/kgal $83,30 + $1,10/kgal
6" $82.80 + $O,97/kgal $140,80 + $1,10/kgal
8" $120,10 + $O,9711<gal $204,40 + $1 , 10/kgal
10" $160,40 + $O,97/kgal $273.25 + $1,10/kgal
12" $208,15 + $0.97/kgal $346,05 + $1.10/kgal
00 $8,50 + $0.97/kgal $14,15 + $1.10/kgal
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