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SOUTHWEST SUBURBAN SEWER
DISTRICT (SWSSD)
VAL VUE SEWER DISTRICT (VVSD)
Facts on Annexation
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Rate Impact
SWSSD
SWSSD has approximately 4,000 connections representing a population of at least 10,000
residents inside the possible North Highline Annexation area. Single family Residential
customers currently pay a flat rate of $21.50 / month regardless of water consumption.
Based on an average consumption rate of 750 cubic feet of water usage per month this is
equivalent to a rate of $3.00 / CCF (CCF = 100 Cubic feet of consumption.)
The City of Seattle would charge these same residential customers $58.12 / month or $7.75/CCF
based on the average consumption of 750 cubic feet. This is an increase of $36.62 / month
over current SWSSD sewer rates.
Seattle has stated that their average consumption for residential customers is 520 cubic
feet / month which would be billed at $40.30 / month, an increase of $18.80 / month over
current SWSSD rates.
Based on current rates, North Highline residents would have to use less than 260 cubic
feet per month to benefit from the city of Seattle’s consumption based rate schedule.
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Monthly Rates
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Rate at
750 cubic feet |
Rated at
520 cubic feet |
Rate/CCF |
| SWSSD |
$21.50 |
$21.50 |
$ 3.00 |
| Seattle |
$58.12 |
$40.30 |
$ 7.75 |
| Difference |
$36.62 |
$18.80 |
$ 4.75 |
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Metro rates are projected to increase by nearly $12.00/month by 2010. In that same time
period SWSSD projects treatment rate increases of $5.00/month. This will further escalate
the negative impact on SWSSD customers who would be required to pay Metro rates under a
Seattle annexation scenario.
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Projected 2010 Monthly Rates
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| |
Rate at
750 cubic feet |
Rate at
520 cubic feet |
Rate/CCF |
| SWSSD |
$22.50 |
$22.50 |
$ 3.00 |
| Seattle |
$61.09 |
$45.94 |
$ 8.14 |
| Difference |
$38.59 |
$23.44 |
$ 5.14 |
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Conclusion: A City of Seattle annexation of North Highline area would result in a
significant rate increase for most residential customers and a small rate decrease for a
very small group of customers. This would become even more of a negative impact as future
proposed rate increases are imposed.
VVSD
VVSD has approximately 2500 connections representing a population of at least 8,000
residents inside the possible North Highline Annexation Area. These are current
connections, future sewer extensions will add 200 to 300 connections as unsewered areas
acquire public sewers. VVSD does not own its own treatment plant and buys sewage treatment
for the majority of these customers from King County Metro (Metro), the balance from SWSSD.
Single Family Residential customers currently pay a flat rate of $21.20 / month for
service into the SWSSD system, and $34.95 / month for service into the Metro system,
regardless of water consumption.
If these customers become City of Seattle customers, there would no longer be a rate
differential between customers based on cost of treatment. All single family residential
customers would pay the higher Metro Rate regardless of actual sewage treatment costs.
Using the same calculation described for SWSSD rates, the following rate differentials
would result:
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Monthly Rates SWSSD Service
Area
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Rate at 750 cubic feet |
Rate at 520 cubic feet |
Rate/CCF |
| VVSD |
$21.20 |
$21.20 |
$ 2.83 |
| Seattle |
$58.12 |
$40.30 |
$ 7.75 |
| Difference |
$36.92 |
$19.10 |
$ 4.92 |
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Monthly Rates Metro Service Area
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Rate at
750 cubic feet |
Rate at
520 cubic feet |
Rate/CCF |
| VVSD |
$34.95 |
$34.95 |
$ 4.70 |
| Seattle |
$58.12 |
$40.30 |
$ 7.75 |
| Difference |
$23.17 |
$ 5.35 |
$ 3.05 |
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Conclusion: A City of Seattle annexation of the North Highline area would result in a
significant rate increase for most customers who now pay SWSSD treatment rates. It would
result in a significant, but smaller increase for most customers who now pay Metro
treatment rates.
Service Levels
Local vs. Downtown Seattle – Currently, for both SWSSD and VVSD customers, a trip
to the office for billing questions, certificates of sewer availability, side sewer permit
information, or just general inquiries, is a local trip. In the event of a Seattle
annexation that same trip by car would become a trip to downtown Seattle with the
consequent traffic and parking problems associated with traveling to downtown Seattle.
SWSSD and VVSD staffs are more knowledgeable about their smaller service area and can
provide over the counter help more quickly and more accurately than is possible in the
City of Seattle with its hundreds of thousands of sewer connections.
Emergency Response - Currently both SWSSD and VVSD are set up to provide emergency
response within ˝ hour or less, 24 hours a day. It is unlikely that the City of Seattle
response time would be as good as SWSSD or VVSD.
Damage Claims- SWSSD and VVSD insure for liability through WGEP (Washington
Governmental Entity Pool). Damage claims are resolved quickly.
Seattle is self-insured. It has been our experience that claims that would have settled in
SWSSD or VVSD, are delayed, or denied, under Seattle’s claims process.
Conclusion: For most customers, face to face contact with the sewer utility would be
more difficult under a City of Seattle annexation, and would take more time to
satisfactorily conclude. Emergency response may not be as timely under the City of
Seattle. Damage claims would not be settled as quickly, or in favor of customers as often.
Liability for Stubs
Both SWSSD and VVSD own the sewer stubs constructed in the right of way, which connect
each property to a sewer main. These districts are responsible for maintenance and repair
of these stubs. There are approximately 6,500 sewer stubs between SWSSD and VVSD in the
North Highline Annexation area.
City of Seattle, as most cities, has a policy that the sewer stubs are the responsibility
of the property owners, not the sewer utility.
It costs approximately $8,000 for replacement of a typical sewer stub. At about 6500
stubs, this translates into a liability transfer of $52,000,000 from the sewer utility to
private property owners in the event that SPU takes over responsibility for the public
sewers in the North Highline area.
Conclusion: An annexation by Seattle will result in a huge hidden transfer of liability
from the city of Seattle to former SWSSD and VVSD customers.
Impacts on Customers Outside the North Highline Area
Both SWSSD and VVSD have customers outside the North Highline Annexation area that will be
impacted if the City of Seattle annexes the area. It is unlikely that either District will
be able to significantly reduce costs in spite of losing a significant percentage of
customers and the related income.
Both Districts operate very efficiently with minimal staffing level and will be required
to continue to provide the same level of services and provide on going maintenance and
operation of District facilities.
Conclusion: We have not yet calculated the dollar amount of the impact, however, with a
25% reduction for SWSSD and a 30% reduction for VVSD, the impacts could be significant
Issued 9/15/2005
Updated 9/15/2008 |
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