Moving the Needle on Land for JobsA Sewer Perspective by Clark Regional Wastewater District

Questions to be Answered

1. What sewer investment is needed for Land for Jobs? (or…“How big is the pile of rocks we need to move?”)

2. How do we provide that investment? (or…“What tools do we have to move rocks?”)

3. What decisions do we need to make as a community? (or…“Which rocks do we move first?”)

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Quick District Context

Service Area OverviewFinancial Framework

Quick District Context• Established in 1958• Current service area

– 37 square miles– 26,000 customer accounts– 82,000 people– Adding Ridgefield in 2014

• 5 square miles• 1,900 customer accounts• 5,300 people

• Largely developed in south and west, growth areas in north and east

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Quick District Context

• $20M annual budget– $13M Operations– $7M Capital

• $3.5M Cash Funded• $3.5M Debt Service

• Current connection charges– $1,720 – Vancouver Treatment Plant– $4,708 – Salmon Creek Treatment Plant– $7,550 – Ridgefield service area (2014)

• Sewer is a capital intensive enterprise

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Question 1

How Big is the Pile of Rocks?

How Big is the Pile of Rocks?

• Basic Framework:– Current Urban Growth Boundaries – Current Planning Documents– Backbone Infrastructure– Current Dollars– Includes Developer Contribution– Includes Ridgefield– Land for Jobs = Commercial / Industrial

Zoning

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How Big is the Pile of Rocks?

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Wastewater Infrastructure Historical Investment

Future Investment

Build OutService Area

New Service to Commercial /

Industrial Zones(“Land for Jobs”)

● Local Collection Systems      ▪ District $120M $110M $25M▪ Ridgefield $15M $40M $15M

● Regional Transmission System $0 $40M $30M

● Treatment Facilities $125M $80M $15MTOTAL $260M $270M $85M

CURRENT DEBT ($40M)

How Big is the Pile of Rocks?• Near-Term Priority Investments:

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– Discovery Corridor Wastewater Transmission System • $25M initial investment in I-5 corridor• Connects Pioneer Canyon PS to Legacy PS

(map available)• Funding secured (PWTF and capital

reserves)• Design / Permitting / ROW in progress• 2014 - 2016 construction period

– Ridgefield Junction Area Projects• South Junction - $1M• North Junction - $4M

Question 2

What Tools Do We Have to Move Rocks?

What Tools Do We Have to Move Rocks?• Sewer System Funding – Current

Framework:– Local Contributions (rates, charges, development)– No Tax Revenue/No Standing State or Federal

Grants• Capital Financing Options

– Cash Funded – typically smaller projects– Debt Service – typically larger projects

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• Public Works Trust Fund (PWTF) – low-interest state loan program

• Sewer Revenue Bonds – municipal bond market

What Tools Do We Have to Move Rocks?

• PWTF / Revenue Bond Comparison

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PWTF - Why it Matters

Funding source PWTF Revenue BondsAdditional Bond Cost for Life of

Typical $10M LoanInterest Rate 0.5 - 2% 4 - 5% currently $5M

Debt Service Reserve Not required 1 year debt service reserve $0.8M

Coverage Ratio 1.00 1.25 (25% additional revenue required) $4M

Issuance Costs Zero 1 - 2% of principle $0.2M

TOTAL $10M

What Tools Do We Have to Move Rocks?

The Bottom Line…

• At current rates/charges, it will take another30-40 years to build out our system

• If all resources are devoted to “Land for Jobs,” it will take 10-15 years to provide service to all commercial/industrial zoning

• Further defining “Land for Jobs” target areas would reduce this timeframe

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Question 3

Which Rocks Do We Move First?

Which Rocks Do We Move First?

Recognize Cost and Timing Issue:• Cost – infrastructure demand outstrips supply

of near-term revenue at current rates / charges

• Timing – time to deliver major municipal infrastructure (2-8+ years) does not align with business siting framework (6-18 months)

• How can we move forward?

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Which Rocks Do We Move First?

Community vision+ planning / land use

zoning + transportation investment

+ utility investments+ development investment

= Jobs

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Become More Coordinated – better alignment We can’t do it alone; need coordination/partnership/leadership

– Discovery Clean Water Alliance (discoverycwa.org)

– Discovery Corridor Wastewater Transmission System (crwwd.com/projects/dcwts)

– Ridgefield Collection System Transfer (crwwd.com/ridgefield)

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Which Rocks Do We Move First?

• Regional sewer program examples:

Which Rocks Do We Move First?Become More Strategic – better prioritization:

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• Can we identify target areas that matter most?

• Ready to prioritize Land for Jobs investment?

• What measure of commitment should be used to trigger public investment (no stranded capital)?

• Use a “Just-In-Time” delivery model?– Better align public and private timeframes– Perform lower cost, long lead time work in advance– Commit construction dollars when development is

ready– Ridgefield junction example

Summary – Answers to 3 Questions• Significant sewer investments have already

been made…but more is needed– Have a well structured plan to support additional

investment and leverage existing investments• Sewer systems are built by local community

– Current programs support diligent, consistent and incremental investment

• Progress being made on Land for Jobs– Can become more coordinated and more strategic as

a community– Well orchestrated plan with targeted investment can

move needle faster

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John M. Peterson, P.E.General ManagerClark Regional Wastewater Districtwww.crwwd.com360-993-8819

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Let’s Move the Right Rocks Together!