NOTICE OF REGULAR MEETING

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1 NOTICE OF REGULAR MEETING PLEASE TAKE NOTICE that there will be a regular meeting of the Commission of the Madison Metropolitan Sewerage District at 8:00 a.m., on Thursday February 9, 2017 at the Maintenance Facility Training Room at 1610 Moorland Road, Madison, Wisconsin The Commission will consider, and may take action, on the matters set forth on the attached Agenda. If any matter on the Agenda is to be considered in closed session of the Commission, please be advised that following the closed session the Commission will reconvene into open session for purposes of taking any action based on the closed session and concluding its agenda. Date: February 7, 2017 D. Michael Mucha, P.E. Chief Engineer and Director Any person who has a qualifying disability as defined by the Americans with Disabilities Act that requires the meeting or materials at the meeting to be in an accessible location or format must contact the Chief Engineer Director at , 1610 Moorland Road, Madison, Wisconsin, at least twenty-four hours prior to the commencement of the meeting so that any necessary arrangements can be made to accommodate each request. 1. Opening A. Call to Order B. Welcome Guests C. Announcements 2. Appearances by the Public 3. Consent Calendar A. Approval of Commission Meeting Minutes from B. Approval of Cash Statement-Operating Fund C. Approval of Cash Statement-Capital Projects Fund D. Review and Approval of Sewer Extension Plans-Sauser Commission Agenda Report Attachment 1: Sewer Extension Vicinity Attachment 2: Sewer Extension Financial Summary New Construction Projects o Yahara River Learning Center, Village of Windsor Attachment 3: Yahara River Learning Center Map & Resolution( R1) o Lacy Road Reconstruction, City of Fitchburg Attachment 4: Lacy Road Reconstruction Map & Resolution ( R2) 1

2 o 2017 Fitchrona Road Utility Construction, City of Fitchburg Attachment 5: Fitchrona Road Utility Construction Map & Resolution ( R3) Reconstruction Projects o 2017 Verona Road Let 2 Utility Construction, City of Verona Attachment 6: Verona Road Let 2 Utility Construction Map & Resolution ( R4) 4. Review of Bids and Award of Contract: 2017 West Interceptor Rehabilitation A-Klawes Commission Agenda Report Attachment 1: Bid Tabulation Attachment 2: Map of Project Attachment 3: Resolution ( R5) 5. Connection Charge: Background Information and Study Conclusions-Brochtrup/Borelli Commission Agenda Report Attachment 1: January 12th Commission Agenda Report Connection Charge Approval Process Attachment 2: October 2015 Commission Resolution Attachment 3: MMSD Connection Charge Technical Subcommittee Summary 6. Chief Engineer and Director s Report A. Updates-Mucha Whats Our Policy? Guidance for Distinguishing Among Ordinances, Regulations, and SOPs B. Operations Report-Nehm January 2017 Plant Performance Data Report January 2017 Plant Flow Data Report C. Regulatory Review and Report-Kent Regulatory Review Summary Report D. Review Commission Calendar Future Meeting Schedule as of Future Agenda Topics 8. Other Business by Law 9. Adjournment 2

3 Meeting of the Commissioners of the Madison Metropolitan Sewerage District Thursday, January 26, :30 a.m. MMSD Maintenance Facility Training Room, 1610 Moorland Road, Madison, WI Present: Commissioner Tom Hovel Commissioner Angela James Commissioner Ken Clark Commissioner Sara Eskrich (excused absence) Commissioner James Martin Commissioner Ezra Meyer Commissioner Brad Murphy Commissioner Brian Potts Commissioner Tom Wilson Commission Meeting 1. Opening A. Commissioner Hovel called the meeting to order at 7:33 a.m. B. Welcome guests: Mike Dailey, City of Madison; and A.B. Orlik, Warm at Twenty Below. C. Announcements: None. 2. Appearances by the Public None. 3. Consent Calendar A. Approval of Commission Meeting Minutes from B. Review and Approval of Sewer Extension Plans ( R1 through R3). C. Continuation of Implementation Services for Asset Management D. Approval of Agreement between Capital Area Regional Planning Commission and MMSD for 2017 Collection System Evaluation E. Increase Liquid Processing Facility Plan Professional Services Agreement Amount Discussion: The minutes; Review and Approval of Sewer Extension Plans; Continuation of Implementation Services for Asset Management; Approval of Agreement between Capital Area Regional Planning Commission and MMSD for 2017 Collection System Evaluation; and the request to Increase Liquid Processing Facility Plan Professional Services Agreement Amount were reviewed and placed on file. Action: After discussion, Commissioner Meyer moved, seconded by Commissioner James to approve items A-E of the Consent Calendar.

4 Motion carried Policy Governance Study Session Presenter: Michael Mucha, Chief Engineer and Director Description: Policy Governance Study Session Discussion: The Commission continued discussions related to the development of a new policy book to support the effectiveness of a larger, more diverse Commission. Action: No action at this time. 5. Future Agenda Topics Action: No other business was discussed, no action necessary. 6. Other Business Allowed by Law Action: No other business was discussed, no action necessary. 7. Adjournment Action: Commissioner Wilson moved, seconded by Commissioner Martin that the meeting be adjourned. Motion carried 7-0. (Commissioner Potts absent from vote). Regular Meeting of the Commissioners January 26, 2017 Angela James, Secretary Future Meetings: Thursday, February 9, :00 a.m. Regular Commission Meeting Thursday, February 23, :00 a.m. Regular Commission Meeting/Policy Governance Thursday, March 16, :00 a.m. Regular Commission Meeting

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6 detail the construction as built and shall furnish the MMSD with as-built plans in the case of any significant deviations from the original design. 4. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the MMSD and with the applicable State of Wisconsin plumbing and sewerage codes. 5. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four-year approval period, the unbuilt portion must be submitted for re-approval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on January 26, ;/ul.2011 Date I /,lt /,;zo1 c I Date

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9 RESOLUTION R3 WHEREAS, plans for sanitary sewer extensions were submitted to the Madison Metropolitan Sewerage District (MMSD) for East and West Main Street, South Carroll Street and South Pinckney Street Assessment District 2017, City of Madison, on January 12, 2017, by Mark Moder, City Engineering Division, and WHEREAS, the project proposes replacing existing 6 inch and 8 inch sanitary sewer with approximately 936 feet of 8 inch sewer on South Carroll Street, East and West Main Street, West Washington St and Martin Luther King Jr. Boulevard. The sanitary sewer is being replaced as part of a street resurfacing project, and WHEREAS, the proposed sanitary sewer extension will connect to the City of Madison s sewerage facilities and MMSD s West Interceptor, and WHEREAS, a variance is being requested from DNR Chapter NR (2) by the City of Madison for some of the proposed sewers which will have less than the minimum 8 feet of horizontal separation from existing water main. The project proposes to install AWWA C900 DR18 sanitary sewer main where the required minimum horizontal separation from existing water main is not attained, and WHEREAS, connection charges for the areas being served have been paid, and WHEREAS, the MMSD has received a sewer extension review letter # from the Capital Area Regional Planning Commission (CARPC) dated January 20, 2017, stating the CARPC staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the Dane County Water Quality Plan and Land Use and Transportation Plan, and WHEREAS, the Chief Engineer and Director of MMSD has recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for East and West Main Street, South Carroll Street and South Pinckney Street Assessment District 2017, City of Madison, submitted on January 12, 2017, by Mark Moder, City Engineering Division, be approved subject to the following conditions: 1. That the City of Madison shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the MMSD with as built plans in the case of any significant deviations from the original design. 2. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the MMSD and with the applicable State of Wisconsin plumbing and sewerage codes.

10 3. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four-year approval period, the unbuilt portion must be submitted for reapproval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on January 26, ;/ul.2011 Date I /,lt /,;zo1 c I Date

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19 WELLS FARGO CREDIT CARD BILLING DATE 1/03/2017 VENDOR Description Total Amt Aerovironment Inc Charging Station Nissan Leaf $ Amazon.com Supplies $ Amazon.com Supplies $1, Amazon.com IT Supplies $2, Amazon.com Supplies $ Amazon.com Supplies $ American Airlines NACWA Winter Meeting $ AtBatteries.com Batteries $6.00 Budget Bicycle Center Supplies $ Durafit Seat Covers Parts $ Electric South Supplies $90.00 Gateway Food Products Supplies $ Graber Mfg. Bike Repair Stand - Ops Bldg. $ Hilton Garden Inn Training Travel Espense $ Milwaukee Indeed HR Recruitment $ Intrinsic Minds LLC Parts $ Labconco Co Dishwasher repair $ Linked In.com Decenber business subscription for $24.95 recruiting Miscellaneous Transportation $23.60 Office of Water Collection System Training $ Programs Materials Oracle Conference Registration $ Pro Telecom Supplies Electrical supplies $4, Ride-4-Fun Batteries $ Robert Bosch Tool Corp. Material $ Sage support renewal Maintenance Agreement $1, Sears Tools $99.99 Society of Lan Surveyors Registration Fee $ Inst. Wal-Mart Supplies $ Annual membership fee $17,

20 Return to Agenda COMMISSION AGENDA REPORT Meeting of February 09, 2017 Review and Approval of Sanitary Sewer Extensions Lead Staff: Jim Post, GIS/CAD Specialist Requested Action: Adopt resolutions approving sanitary sewer extension plans. Attachments: Attachment 1: Attachment 2: Attachment 3: Attachment 4: Attachment 5: Attachment 6: Sewer Extension Vicinity Map Sewer Extension Financial Summary Yahara River Learning Center Resolution & Map Lacy Road Reconstruction Resolution & Map 2017 Fitchrona Road Utility Construction Resolution & Map 2017 Verona Road Let 2 Utility Construction Resolution & Map Financial Impact: A plan review fee of $1, will be due for the New Construction projects which propose to install new publicly owned sewers. Interceptor and Treatment Plant Connection Charges will also be due for the lands which can be served from the sewers being installed, as identified above. Background: MMSD is directed under Section 66.24(3) of the Wisconsin Statutes and NR108.04(4) of the Wisconsin Administrative Code to review and approve any proposed sanitary sewerage system construction or installation projects within the Madison Metropolitan area for which Wisconsin Department of Natural Resources approval is required. Request adoption of resolutions for sanitary sewer extension plans that were reviewed by staff and placed on file with the District. New Construction Projects: Yahara River Learning Center, Village of Windsor o The new construction will install approximately 261 LF of 8-inch sanitary sewer to serve four commercial lots on Timothy Court. 20

21 Lacy Road Reconstruction, City of Fitchburg o This project will install 1,451 LF of 8 sanitary sewer during street reconstruction to serve existing un-sewered properties along Lacy Road Fitchrona Road Utility Construction, City of Fitchburg o This project will install 2,900 LF of 8-inch sanitary sewer to provide future service to lands around the new Fitchrona Road corridor, in conjunction with a WisDOT project. Reconstruction Projects: 2017 Verona Road Let 2 Utility Construction, City of Fitchburg o This City will be relocating 2,269 LF of 8-inch, 10-inch and 15-inch sanitary sewer in conjunction with WisDOT Verona Road Reconstruction project. Analysis and Options: Recommendation: Adopt resolutions approving the sewer extension plans. Key Considerations: Plans have been reviewed by the Engineering Department and are acceptable. Option 1: Approve sewer extensions, with modifications determined by the Commission. Key Considerations: The Commission may choose to place conditions on the approval, as necessary. Option 2: Other options brought forward by the Commission. Next Steps: Upon Commission approval, plans will be forwarded to the Wisconsin DNR for final approval, prior to construction. 21

22 Return to Agenda Yahara River Learning Center Village of Windsor Verona Road Let 2 City of Fitchburg Fitchrona Road Utility City of Fitchburg Lacy Road Recon City of Fitchburg Vicinity Map Sewer Extensions 22 Prepared by: JP Date: 2/09/2017

23 Meeting Apvl Date Sewer Extension - Resolution Approvals - Year 2017 Sewer Plan Agenda Item Sewer Extension Community Proposed Use 2/9/2017 a. Yahara River Learning Center TPCC (Treatment Plant Length and Size Plan Review Fee ICC (Interceptor Charges) Charges) Sewer Plan Total Village of Windsor 4 Commercial Lots 261' - 8" 1, , /9/2017 b. Lacy Road Reconstruction City of Fitchburg Street Reconstruction, new residential areas being served 1,449' - 8" 1, , , , /9/2017 c Verona Road Let 2 Utility Construction City of Fitchburg Street Reconstruction 1,438' - 8" 465' - 10" 366'- -15" /9/2017 d Fitchrona Road Utility Construction City of Fitchburg Street/Utility Construction ONLY, no service 2,900' - 8" 1, , Charges Approved: Current Meeting $4, $14, $9, $27, Previous Total Approved (by Resolution) $4, $186, $27, $218, Current Total Approved (by Resolution) $8, $200, $37, $246, Actual vs. Budget comparison Plan Review 2017 Income: Actual Collected $8, Income: Budgeted $61, Percent of Budget 13.28% ICCAS_apvls.xlsx Day of the year 37 % Yr passed by 10% Interceptor & Treatment Plant $371, $1,800, % 23

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25 2. That the Village of Windsor shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the MMSD with asbuilt plans in the case of any significant deviations from the original design. 3. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the MMSD and with the applicable State of Wisconsin plumbing and sewerage codes. 4. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four-year approval period, the unbuilt portion must be submitted for reapproval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on February 9, Thomas Hovel, President Date Angela James, Secretary Date 25

26 Return to Agenda Windsor Road 4 OL1 Lot 2 Lot 1 U.S.H. 51 Timothy Court Lot 3 Ped ers on Cro ssin g Blv d Lot 4 *2014 Aerial Photography Legend Previously Paid Area ScaleBar 0 Proposed Sewers Feet Existing Sewers Yahara River Learning Center Village of Windsor MMSD Plan No Prepared by: JAP Date: 2/3/2017

27 RESOLUTION WHEREAS, plans for sanitary sewer extensions were submitted to the Madison Metropolitan Sewerage District for Lacy Road Reconstruction in the City of Fitchburg, on January 23, 2017, by Cory Horton, City of Fitchburg Director of Public Works, under the professional seal of Anne Anderson of Mead & Hunt, and WHEREAS, the project consists of installing 1,449 feet of 8 inch sanitary sewer within the right of way of Lacy Road, in conjunction with the street reconstruction project, and WHEREAS, the proposed sanitary sewer will have the capability of serving several unsewered properties along Lacy Road. The City of Fitchburg has provided written documentation to MMSD regarding those properties which will be served immediately by the sewer extension and which properties will be served in the future, and WHEREAS, the lands to be immediately served are several unplatted lots on Lacy Road which have the following addresses: 5408, 5402, 5396, 5390, 5386, 5360, 5335 (0.6 acre residence), 5329 (0.75 acre residence), and 5197, and WHEREAS, the following parcels addressed to Lacy Road are not connecting to the public sewer system at this time: 5401, 5356, 5335 (less 0.6 acre residence), 5329 (less 0.75 acre residence), 5300, 5292 and 5284, and WHEREAS, the proposed sanitary sewer extension is within MMSD s Nine Springs Valley interceptor basin, and WHEREAS, plan review fees are due, and R2 WHEREAS, interceptor and treatment plant connection charges for the areas being served have not been paid, and WHEREAS, the MMSD has received a sewer extension review letter # from the Capital Area Regional Planning Commission (CARPC) dated January 19, 2017 stating the CARPC staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the Dane County Water Quality Plan and the Dane County Land Use and Transportation Plan, and the requirements of Wis. Admin. Code Section Trans 401 Construction Site Erosion Control and Storm Water Management Procedures for Department Actions, and WHEREAS, the Chief Engineer and Director of MMSD has recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for Lacy Road Reconstruction in the City of Fitchburg, submitted on January 23, 2017, by Cory Horton, City of Fitchburg Director of Public Works, under the professional seal of Anne Anderson of Mead & Hunt, be approved subject to the following conditions: 1. That the City of Fitchburg shall pay the plan review fee of $1, to the MMSD within 30 days of receiving an invoice for the fee. 27

28 2. That several unplatted parcels along Lacy Road are not connecting to the public sewer system at this time, said Lacy Road parcels having the following addresses: 5401, 5356, 5335 (less 0.6 acre residence), 5329 (less 0.75 acre residence), 5300, 5292 and It shall be the responsibility of the City of Fitchburg to notify MMSD prior to when a sewer connection occurs at any of these properties and to pay to MMSD the connection charges due at the time of connection. 3. That prior to connection of the proposed sewers serving said lands to the public sewerage system, the City of Fitchburg shall have paid to MMSD the sum of $23, for payment of $14, in Nine Springs Valley interceptor connection charges and $9, in treatment plant connection charges; said lands being unplatted parcels along Lacy Road having the following addresses: 5408, 5402, 5396, 5390, 5386, 5360, 5335 (0.6 acre residence), 5329 (0.75 acre residence), and That interceptor and treatment plant connection charges are adjusted from time to time, and said connection charges will be due based on the rate in effect at the time the payment is made. 5. That, if said interceptor and treatment plant connection charges for the lands to be served remain unpaid after connection of the said sewer extensions to sewers within MMSD s system, appropriate penalties shall be charged to the City of Fitchburg by MMSD. 6. That the City of Fitchburg shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the MMSD with as built plans in the case of any significant deviations from the original design. 7. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the MMSD and with the applicable State of Wisconsin plumbing and sewerage codes. 8. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four year approval period, the unbuilt portion must be submitted for reapproval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on February 9, Thomas Hovel, President Date Angela James, Secretary Date 28

29 Return to Agenda 5329 Jones Farm Dr Lacy Road Lot 2 CSM Fahey Glen 5401 Lacy Road Sunflower Dr Mica Rd B E Cheryl Pkwy *2014 Aerial Photography Legend Lands Served Lands Served, previously paid Future Connections Map Scale Proposed Sewers 0 Existing Sewers Feet Lacy Road Reconstruction City of Fitchburg MMSD Plan No Prepared by: CAS Date: 02/02/

30 R3 RESOLUTION WHEREAS, plans for sanitary sewer extensions were submitted to the Madison Metropolitan Sewerage District (MMSD) for 2017 Fitchrona Road Utility Construction in the City of Fitchburg, on January 26, 2017, by Cory Horton of the City of Fitchburg, under the professional seal of Joshua Straka, Strand Associates, and WHEREAS, the project proposes to install 2,900 feet of 8-inch sanitary sewer within the right-of-way of Fitchrona Road, and WHEREAS, the lands to be served in the future are currently unplatted, parcel no , which is approximately 56 acres, and currently owned by WINGRA REAL ESTATE, LLC, and WHEREAS, the Verona Road corridor reconstruction project has led the City of Fitchburg to create another corridor that connects the existing residential area to the north of County Highway PD (McKee Road) to the commercial development to the south of McKee Road. The newly created Fitchrona Road traverses land which is currently a quarry, and not developable at this time. No connections will be made to the proposed sanitary sewers until a CSM or plat is completed, and WHEREAS, the City of Fitchburg has written a letter to MMSD to clarify that no sanitary sewer connections will be made at this time. The letter further states that when the land develops, the City will notify MMSD and pay the required interceptor and treatment plant connection charges prior to connection to the public sanitary sewer system, and WHEREAS, the proposed extension will connect to the City of Fitchburg s facilities and MMSD s Nine Springs Valley Interceptor, and WHEREAS, plan review fees are due, and WHEREAS, the interceptor and treatment plant connection charges for the lands to be served have not been paid, and WHEREAS, the MMSD has received a sewer extension review letter # from Capital Area Regional Planning Commission (CARPC) dated February 3, 2017 stating the CARPC staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the Dane County Water Quality Plan and the Dane County Land Use and Transportation Plan. The letter further states that the extension is being installed as part of road construction only and shall not serve any properties at this time, and WHEREAS, the Chief Engineer and Director of the MMSD has recommended the approval of said plans, 30

31 THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for 2017 Fitchrona Road Utility Construction in the City of Fitchburg, submitted on January 26, 2017 by Cory Horton of the City of Fitchburg, under the professional seal of Joshua Straka, Strand Associates, be approved subject to the following conditions: 1. That the City of Fitchburg shall pay the plan review fee of $1, to MMSD within 30 days of receiving an invoice for the fee. 2. That no lands are to be served by the proposed sanitary sewer extension at this time. The City of Fitchburg is responsible for notifying MMSD of future development and connections related to this project. The City of Fitchburg is also responsible for payment of all MMSD interceptor and treatment plant connection charges prior to connection to the public sewerage system. 3. That the City of Fitchburg shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the MMSD with as-built plans in the case of any significant deviations from the original design. 4. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the MMSD and with the applicable State of Wisconsin plumbing and sewerage codes. 5. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four-year approval period, the unbuilt portion must be submitted for re-approval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on February 9, Thomas Hovel, President Date Angela James, Secretary Date 31

32 Sewers are being installed for Construction Only No Sewer Service shall be provided at this time ton An Rd Veron a USH 18 Ne sb i /151 CTH PD Fitchrona Rd Legend es Way Kapec Rd McKee Rd *2014 Aerial Photography King Jam ter ches Dr Fitchrona Rd tt Rd Future Service Area City of Madison Proposed Sewers Existing Sewers Hardrock Rd Dor s Che Danville Dr Dr ake e p a Fitchrona Rd Wa y City of Madison City of Fitchburg Return to Agenda Map Scale 0 Fitchrona Road Utility Construction City of Fitchburg MMSD Plan No Feet Prepared by: CAS Date: 01/31/

33 R4 RESOLUTION WHEREAS, plans for sanitary sewer extensions were submitted to the Madison Metropolitan Sewerage District (MMSD) for Verona Road Let 2 Utility Construction in the City of Fitchburg, on January 26, 2017, by Cory Horton of the City of Fitchburg, under the professional seal of Joshua Straka, Strand Associates, and WHEREAS, the project proposes to install 1,438 feet of 8-inch, 465 feet of 10-inch and 366 feet of 15-inch sanitary sewer within the right-of-way of USH18/151 (Verona Road), and WHEREAS, the construction project is being completed as part of the Wisconsin Department of Transportation Verona Road Stage 2 Let 2 project (State Project Number ), and WHEREAS, some of the proposed sewers were previously approved by the MMSD Commission on July 28, 2017 as sewer extension no , and were not installed as planned due to unforeseen site conditions. The sewers proposed near the intersection of Verona Road and McKee Road have been resubmitted for approval with the current plans, and WHEREAS, the plans show that no new lands will be served, and WHEREAS, the proposed extension will connect to the City of Fitchburg s facilities and MMSD s Nine Springs Valley Interceptor, and WHEREAS, plan review fees are not due, and WHEREAS, the interceptor and treatment plant connection charges for the lands to be served have been paid, and WHEREAS, the MMSD has received a sewer extension review letter # from Capital Area Regional Planning Commission (CARPC) dated February 3, 2017 stating the CARPC staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the Dane County Water Quality Plan and the Dane County Land Use and Transportation Plan, and WHEREAS, the Chief Engineer and Director of the MMSD has recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for Verona Road Let 2 Utility Construction in the City of Fitchburg, submitted on January 26, 2017 by Cory Horton of the City of Fitchburg, under the professional seal of Joshua Straka, Strand Associates, be approved subject to the following conditions: 33

34 1. That prior approval for the proposed sewers near the intersection of Verona Road and McKee Road, as set forth in sewer extension no , shall be superseded by this approval. 2. That the City of Fitchburg shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the MMSD with as-built plans in the case of any significant deviations from the original design. 3. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the MMSD and with the applicable State of Wisconsin plumbing and sewerage codes. 4. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four-year approval period, the unbuilt portion must be submitted for re-approval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on February 9, Thomas Hovel, President Date Angela James, Secretary Date 34

35 Rd Return to Agenda g Ki n Sewer Installed/ Phase Romay Shafer Dr es Jam Sewer Approved with Phase 1 but not installed, Reapprove and will be installed with current "Let 2" Ct Sewer Installed/ Phase McKee Rd CTH PD Harley Dr Tawhee Dr Thorn Ln na ro e V Westchester Rd Wa y Veron a Denton Pl Ch ale t a Ct Celi Legend Sewer Installed/ Phase Proposed Sewers Existing Sewers City of Madison US H1 MMSD Gravity Interceptor MMSD Force Main Ga rd Toppers Ln *2014 Aerial Photography MMSD Effluent Return Force Main Ca nn on ba ll P ath USH MMSD Interceptor To Be Abandoned MMSD PS12 Force Main (Under Construction) Verona Road Let 2 Utility Construction City of Fitchburg MMSD Plan No Prepared by: CAS Date: 02/02/2017 Rd en sr d

36 Return to Agenda COMMISSION AGENDA REPORT Meeting of February 9, 2017 Review of Bids and Award of Contract: 2017 West Interceptor Rehabilitation A Lead Staff: Jeff Klawes, Project Engineer II Requested Action: Review bids and approve the attached resolution, which awards the contract for the 2017 West Interceptor Rehabilitation A project to the low bidder, Michels Pipe Services, at their low bid price of $1,219, Attachments: Attachment 1: Bid Tabulation Attachment 2: Map of Project Attachment 3: Resolution Financial Impact: Budgeted and current (which reflect the actual low bid amount) cost estimates for the 2017 West Interceptor Rehabilitation project are listed in the table below. Note that the current estimate is subject to change based upon final project costs. Planning and Design Professional Services MMSD Staff Time Planning and Design Subtotal Budget Estimate $30,000 $50,000 $80,000 Current Estimate $31,000 $47,000 $78,000 Construction Construction Cost Change Order & General Contingency Professional Services (ESTIMATED) MMSD Staff Time (ESTIMATED) Construction Subtotal Budget Estimate $1,300,000 $130,000 $20,000 $80,000 $1,530,000 Current Estimate $1,220,000 $122,000 $11,000 $85,000 $1,438,000 Total Project Estimate $1,610,000 $1,516,000 The total project cost included in the Capital Budget is $1,610,000, which included an estimate of $1,300,000 for construction. The low bid received for construction of the 2017 West Interceptor Rehabilitation project is $1,219,783 which is approximately 6.5% 36

37 lower than the budgeted construction estimate of $1,300,000. The low bid amount results in a reduced current total estimated project cost of $1,516,000 which is approximately $94,000 lower than the total budgeted project cost. Background: The project is located in N Randall Ave. from W Dayton Street (MH02-114A) to Regent, in Regent Street from N Randall to East Campus Mall, and in a sanitary sewer easement from Regent to a point 700 ft. south of Regent Street (MH02-003) (see Attachment #2 for project location). This section of the West Interceptor consists of 4,425 lineal feet of 24 cast-iron pipe installed in The interceptor was televised in 2011 to assess its condition. The primary defect observed was tuberculation, or the buildup of deposits on the inside walls of the pipe due to chemical reactions between the wastewater and the cast iron pipe. The deposits generally decrease the capacity of the sewer by reducing the effective diameter of the pipe and increasing the surface roughness. They may also compromise the structural integrity of the pipe. Because of the age, unknown structural condition, and the tuberculation, the project was added to District s Capital Improvements Plan. Anticipated improvements included removal of all tuberculation (and associated excavation at manholes for access), temporary traffic control, bypass pumping, and rehabilitation of the sewer with a curedin-place-pipe. The project was originally bid as part of a joint project with the City of Madison in early 2016, but the project did not proceed due to bid problems. The City of Madison work has since been separated from MMSD s work, and the project is now being bid with only MMSD-related work. The project was advertised in early January, Approximately 20 companies obtained plans and specifications for the project. Six companies were pre-qualified to bid as a prime contractor. On Tuesday, January 31, 2017, the District opened bids for the project. The District received bids from three prime contractors (see Attachment 1: Bid Tabulation), with the apparent low bidder being Michels Pipe Services, at a low bid price of $1,219, Analysis and Options: Recommendation: Approve the attached resolution which awards the Contract for the 2017 West Interceptor Rehabilitation A to the low bidder, Michels Pipe Services, of Brownsville, WI, at their low bid price of $1,219, Key Considerations: Michels Pipe Services was the low bidder in the competitive bidding process. The bids received were responsive, responsible, and competitive. They met the requirements of the District. The low bid is within the overall project budget. 37

38 Michels is qualified to perform the work, are using qualified subcontractors, are financially stable, and included the necessary documentation with their bid (bid bond, addenda acknowledgement, DBE requirements). Option 1: Delay the project and do not award the Contract. Key Considerations: Would save approximately $85,000 in annual debt service payments. Will defer necessary maintenance to later years. Will result in duplicative administrative, engineering, and re-bidding costs of approximately $10,000. Will result in the project being delayed until the summer of 2019, as City of Madison and University of Wisconsin projects in this area will prevent construction until this time. Next Steps: Staff recommends awarding the contract to the low bidder, Michels Pipe Services. Following completion of bonding and insurance requirements, the contract will be finalized by the District and the Contractor. Construction is scheduled to begin in April and be complete by the end of June. 38

39 Attachment 1 Bid Tabulation 2017 West Interceptor Rehabilitation A Bid Opening: Tuesday, January 31, 2017 Bidder Total Amount Michels Pipe Services $ 1,219, Terra Engineering & Construction $ 1,258, Lanzo Trenchless Technologies-North $ 1,479,

40 Return to Agenda ATTACHMENT 2 Map of Project 40

41 Attachment 3 MADISON METROPOLITAN SEWERAGE DISTRICT COMMISSION RESOLUTION R5 Award of 2017 West Interceptor Rehabilitation A Project WHEREAS, Madison Metropolitan Sewerage District (the District ) has determined that the West Interceptor between manholes and A, a location sometimes generally referred to as the West Interceptor from Randall Avenue to Near PS 2, is in poor condition and in need of repair; and, WHEREAS, while this portion of the West Interceptor is in need of repair, District staff projects that the existing interceptor has sufficient capacity for the foreseeable future; and, WHEREAS, repair of this portion of the West Interceptor (the Project ) was included in the District s Capital Improvements Plan and budget; and, WHEREAS, District staff prepared plans and specifications for the Project; and, WHEREAS, District staff advertised the Project as required by Wisconsin Statutes and the District s procurement policies; and, WHEREAS, District staff reviewed bidders proof of responsibility, including but not limited to standard information regarding financial ability, equipment, experience in the work prescribed in the public contract, and other matters that the District requires for the protection and welfare of the public in the performance of the Project, all as permitted by Wis. Stats. s (2) and District policy, and thereby pre-qualified the bidders; and, WHEREAS, the District received several competitive bids from pre-qualified bidders, and noted no bid abnormalities among the bids received; and, WHEREAS, the lowest responsible bid on the Project falls within the budgetary limits set in the Capital Improvements Plan; and, WHEREAS, the lowest responsible bid contains all documentation required by law and District policy, including, but not limited to, efforts to utilize Disadvantaged Business Enterprises (DBE) and bid security; and, WHEREAS, the contract documents for the Project contain Davis-Bacon prevailing wage rates to meet Wisconsin Clean Water Fund requirements; and, 41

42 WHEREAS, the Project will be financed in part by a loan from the Wisconsin Clean Water Fund, and therefore any award by the District shall be contingent upon the District receiving the Clean Water Fund Loan and complying with Clean Water Fund program requirements. NOW, THEREFORE, BE IT RESOLVED by the Madison Metropolitan Sewerage District Commission, and following consideration of the above recitals which are incorporated by reference, as follows: 1. The Commission awards the contract for the 2017 West Interceptor Rehabilitation A Project to Michels Pipe Services, at its low bid price of $1,219, Following completion of all required conditions, including those required by the Clean Water Fund Program, the Commission authorizes the Chief Engineer and Director to execute the contract on behalf of the District. The above and foregoing Resolution R5 was duly adopted at a meeting of the Madison Metropolitan Sewerage District Commission on February 9, MADISON METROPOLITAN SEWERAGE DISTRICT COMMISSION Thomas D. Hovel, President Incorporated by Reference: Contract for Project Attested by: D. Michael Mucha, Chief Engineer & Director 42

43 Return to Agenda COMMISSION AGENDA REPORT Meeting of February 9, 2017 Connection Charges-Background Information and Study Conclusions Lead Staff: Bruce Borelli, Director of Engineering Jeff Brochtrup, Assistant CE and Director of Administration Requested Action: Receive preliminary feedback and guidance on modifications to the District s connection charge policies and the recommendations of the technical subcommittee. Attachments: Attachment 1: January 12th Commission Agenda Report Connection Charge Approval Process Attachment 2: October 2015 Commission Resolution Attachment 3: MMSD Connection Charge Technical Subcommittee Summary Financial Impact: There are no direct financial impacts associated with this informational session. However, connection charges and future decisions regarding this topic will have impacts on the overall MMSD budget for 2017 and beyond. Per Commission direction during development of the 2017 budget, the District budgeted for increased revenues from connection charges (increased from $1.2M to $1.8M, which assumed that new higher connection charge rates would go into effect on July 1, 2017). Additional revenues received will result in a corresponding decrease in future borrowing and will reduce future required service charge revenues. As a rule of thumb, every $1 million in reduced borrowing results in a decrease of $60,000 - $70,000 in annual debt service. Background: The District seeks to revise connection charge policies for two purposes: first, to recover a greater portion of system capital costs from new users (paid via connection charges), with a correspondingly smaller proportion recovered from current users (paid via service charges); second to improve overall administration of connection charges. The purpose of this study session is for staff to present the recommendations that emerged from a three year process. The approval process was shared with the Commission on January 12th. The background is included in Attachment 1. 43

44 Currently, the District levies two charges when new or redeveloped lands connect to the District s wastewater system. These are called Interceptor Connection Charges (ICC) and Treatment Plant Connection Charges (TPCC). These are one-time charges intended to recover the capital costs associated with providing conveyance and treatment capacity for new users. These charges are different than service charges, which are collected annually to operate and maintain the collection system and treatment plant. Connection charges (both ICC and TPCC) are collected by customer communities at the time the new connection is made. Payment is then forwarded to the District. Because MMSD facilities serve large areas and are installed far in advance of development, connection charges are generally recovered over a long time span (typically decades). Both ICC and TPCC are based on the square footage of the area to be served, not flows generated from the area, and are explained further as follows: Interceptor Connection Charges (ICC) In general, ICC rates are calculated as the total cost (construction, engineering, etc.) to provide District sewer service to an area divided by the net area to be served. The net area is the gross area minus an estimate of the area that will be unchargeable under state law and District policy. Unchargeable area includes public right of way and permanent open space. Currently, the District estimates unchargeable area to be 30% of gross area on average (this was reevaluated as part of the study and is discussed later). The result is a rate in dollars per 1,000 sq. ft. Areas further from the treatment plant have higher rates because more collection system infrastructure is needed to serve these areas. ICC rates are escalated annually based on the Engineering News Record-Construction Cost Index (ENR-CCI). The District currently has rates for thirty interceptor service basins. Treatment Plant Connection Charges (TPCC) The current TPCC rate is based on treatment plant debt service costs paid for capacity for future users. Unlike the ICC rates, there is only one rate for treatment plant charges, as all areas pay the same rate. The annual increment to the TPCC rate is determined by dividing the current year s excess capacity debt service costs by the number of actual District customers. The rate is converted to an area basis by using a customer lot size of 20,000 square ft. This increment is added to the previous year s rate multiplied by an interest rate factor of As discussed below, the Commission s October 2015 resolution directed staff to develop a new method based on the value of the treatment plant facilities. Analysis and Options: As noted, this is an informational study session. No Commission decisions are to be made yet on the substantive issues involved in connection charges. Staff will ask the Commission if they need additional details or if staff can proceed with ordinance and regulation changes for review and consideration at the next scheduled meeting as originally planned. 44

45 In considering this question, staff suggest Commissioners focus on the following Key Considerations relating to connection charges. Recommendations are from the study, the October 2015 Commission resolution, technical subcommittee, and staff. Option 1: How open spaces such as public parks, environmental corridors, golf courses, Ag protection areas will be charged. Background/Why?: As areas exempt from connection charges increase, revenues decrease. Exempt areas include environmental corridors, open spaces, parklands, and storm water management. To provide for more accurate cost recovery moving forward, changes in land use must be accounted for in connection charge rates. Recommendation: That these exempt areas will not be charged, but connection charge rates will be adjusted accordingly to reflect this. If the areas have facilities that are receiving sewer service, an area surrounding the facility, including access and parking for the facility, will be charged. CARPC completed an analysis of the entire MMSD sewer service area to determine the impact of these changes and to determine the overall net chargeable area percentage. The result of the analysis was that the net chargeable area for the District as a whole is best estimated as 57% of the gross area. Previous rates assumed 70% net chargeable area. Implications: Using the updated net chargeable area of 57% versus the previous 70% results in all ICC rates increasing by 22.8%. For an average lot size of 11,500 square feet, this corresponds to an ICC increase from $920 to $1,130 and ICC average annual revenues increasing from $924,000 to $1,135,000. Option 2: Determining the value of the treatment plant and associated factors to arrive at a new TPCC rate. Background/Why?: Per the Commission resolution on 10/7/2015, treatment plant connection charges are to be based on the actual cost of the treatment plant (minus any grants received) and the total capacity of the plant. This is intended to provide for fuller cost recovery and an easier method to understand. Recommendation: Use current value for the treatment plant (approximately $340 million) which is based on all previous major capital improvements to the plant inflated to the current year using the ENR-CCI Index. To determine a rate, use an average lot size of 11,500 square feet 45

46 (which is based on an analysis of recent lot sizes observed), a treatment plant capacity of 57 MGD, and a typical usage of 200 gallons per connection per day. Implications: Using the values above results in a TPCC rate of approximately $104/1000 sq. ft. vs. the existing rate of $21.37/1000 sq. ft. For an average lot size of 11,500 square feet, this corresponds to a TPCC increase from $246 to $1,196 and TPCC average annual revenues increasing from $276,000 to $1,340,000. Option 3: Revenue Impacts Background/Why?: Increasing revenues from connection charges will shift costs from current users to new users and reduce future borrowing, which decreases service charges paid by current users. Recommendation: This approach, with all else equal, will increase the amount a new user pays for connection charges (both ICC and TPCC) from $1,166 to $2,326. It will increase the average annual total connection charge revenue collected by the District from $1.20M to $2.48M. The resulting increase will reduce borrowing, which decreases annual service charges paid by current users by $80,000-$90,000 per year. It is important to note that connection charge revenues vary significantly from year to year, depending on the housing market and development patterns. Implications: Developers and new users will be impacted by the rate increases. Costs for typical developments will increase and the price of an average lot will also likely increase. Option 4: When Connection Charge Payments are Due. Background/Why?: Currently, connection charges are due when connection is made to the public sewer system. This can be difficult to track and may never occur at all (e.g., if development never occurs). This results in additional bookkeeping and actual connection charges received being different than what were assessed/invoiced. This can lead to accounting concerns. 46

47 Recommendation: Connection charges will be due 180 days from Commission sewer extension or Staff approval. If not paid in 180 days, the approval is null and void and reapplication will be required. If paid within 180 days, the sewer extension approval is valid for four years (same as current). Implications: This may result in smaller sewer extensions and more sewer extensions in general. This may increase administrative costs, as it may require more staff to process. This may also cause developers to be more sure about service to new areas, as payment will be due within 180 days or they will need to re-apply. Option 5: Phased Developments or Bypassed Areas. Background/Why?: Many times areas are bypassed as sewers are installed. These include future phases of a development or when phases of a development are approved in one sewer extension but are built for several years. This leads to areas that are missed or are delinquent. Recommendation: Bypassed areas can be deferred, but only with a deed restriction that is recorded against the land. Only platted (and not unplatted) areas should be deed restricted, with the deed restrictions issued by the municipality and released only with the consent of MMSD. Due to administrative workload concerns, deed restrictions will only be released on a phase-by-phase basis, and not by individual properties. Implications: The format of the deed restriction will need to be finalized and tracking/releasing deed restrictions will increase administrative costs (for both MMSD and municipal customers). This may increase the administrative fee MMSD charges for processing sewer extensions. Option6: Penalties for Missed Areas Background/Why?: Current penalties (1% per month) can be excessive and are seldom enforced. A reasonable penalty is needed that is fair to all, is not arbitrary, ensures the District is paid the fees that are due, and limits missed areas. 47

48 Recommendations: Penalties for missed areas would be charged simple interest of 0.5% per month, or 6% per year, with a maximum not exceeding double the amount when using the current year connection rate. A $500 administrative fee would also be assessed. These penalties would only apply to missed areas moving forward, and not areas missed in the past. Implications: Some constituents may object to application of penalties as a change from current practice. Reviewing aerial photos to ensure missed areas are not excessive and assessing/collecting penalties will increase staff administrative time. However, levying penalties will hopefully ensure all customers are tracking sewer connections closely and will hopefully ensure all customers are treated equally and pay a fair share of costs. Next Steps: If the Commission is comfortable with the information presented and wishes to proceed, the schedule previously outlined will remain the same and legal Counsel will prepare new Sewer Use Ordinance language, Regulations/Policies, and sewer rates for review at the March 16 th meeting. If the Commission is not comfortable with the information, would like further discussion, or has significant questions, the Commission can decide to slow the implementation process. However, any delays may decrease revenues received in

49 Return to Agenda Attachment 1 COMMISSION AGENDA REPORT Meeting of January 12, 2017 Connection Charge Approval Process Lead Staff: D. Michael Mucha, Chief Engineer and Director Requested Action: Confirm schedule and process for Commission review and approval of connection charge rates and methodologies to be effective July 1, Attachments: Attachment 1: October 2015 Commission Resolution on Connection Charges Attachment 2: Excerpt from Commission budget approval Attachment 3: Proposed Commission Meeting Review and Approval Schedule Financial Impact: Approving new connections charge midway through 2017 will yield a projected $600,000 increase in connection charge revenues in In anticipation of this, the District lowered 2017 service charges by 0.6%. A further increase in connection charge revenues is anticipated for 2018, reflecting a full year s application of the new rates. Background: This agenda item is to receive Commission feedback on the proposed process for adopting new connection policies and rates. The Commission anticipated included increased revenues from connection charges in the 2017 budget with new rates effective July The proposed process will allow the District to implement new connection rates by July 1st. Below is a summary of the history of this project and progress made to date. In the spring of 2014, the District decided to investigate how interceptor connection charges (ICC) and treatment plant connection charges (TPCC) were determined and applied. It had been decades since the District performed a comprehensive review of its methodologies. It was thought that the District was not recovering enough of the costs of system expansion through connection charges, leaving those costs to be recovered from service charges. In addition, staff desired to clarify, and improve the administration of the ICC and TPCC policies. It was thought that current broadly worded policies led to difficult, and sometimes conflicting applications particularly with respect to park and recreation areas. 49

50 The District retained Gilardi/Rothstein, a national expert (authority) on water utility rate-making to study methods being used around the country, evaluate District needs, and develop a proposal. The goal was to improve the current system where needed, while recovering costs in a manner that is fair, equitable and understandable. The District engaged its customer communities in two workshops to discuss the pro s and con s of the current system, and give feedback on options for improving the connection charge system. After reviewing customer communities comments and recommendations, the consultant and Commission concluded that the District s current methodologies were sound and defensible, but that adjustments could be made to increase cost recovery through connection charges. They also concluded that the District could benefit from clearer regulations to guide staff and customer communities in calculating and administering the connection charges. With options identified, the District retained Baker Tilly, a local rate consultant that had expertise with Wisconsin rate setting policies, and could dedicate the time necessary to analyze the options in greater depth. Following Baker Tilly s presentation in 2015, the Commission adopted a Resolution (Attachment 1) establishing District policy for connection charges and directing staff to implement revised connection charge fees. Since then, District staff has worked with legal counsel, a technical subcommittee representing customer communities, Baker Tilly, and the Capital Area Regional Planning Commission to implement the Commission resolution. The work included re-estimating chargeable area proportion, revising connection charge formulas, and revising administrative guidelines. Work on revising the District Sewer Use Ordinance and regulations are underway. The Commission adopted the 2017 Operating Budget and Capital Improvements Plan on November 10, This budget includes increased revenues from service charges (Attachment 2). Analysis and Options: Staff will present the proposed process (Attachment 3) and will receive Commission input. The proposed process will review the staff implementation work and present the revised ordinance, regulations, and rates for approval with an effective date of July 1, Next Steps: Implement the process as established. 50

51 Attachment 2 51

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54 Attachment 3 MMSD Connection Charge Technical Subcommittee Summary December 19, 2016 Principles decided by MMSD Commission on 10/7/2015, prior to establishment of the Technical Subcommittee: 1. ICC and TPCC shall continue to be calculated on an area basis. 2. ICC shall continue to be calculated on a basin by basin method, with areas further from the treatment plant having higher rates. 3. Costs associated with capital improvement projects that add capacity will be recovered based on the proportional capacity added, not the incremental cost to upsize the facility. 4. ICC rates shall continue to be adjusted annually based on the ENR CCI Index (NO CHANGE). 5. ICC rates shall be adjusted as necessary to reflect changes in land use, i.e., chargeable area is decreasing due to increasing designation of environmental corridor, stormwater management areas, parks/open spaces, etc. (70/30 split may be 55/45 need to verify and update periodically). 6. TPCC shall be District wide and shall not be basin by basin. 7. TPCC shall be based on actual cost of the treatment plant (minus any grants received) and the total plant capacity. 8. TPCC shall be adjusted annually by the ENR CCI Index, not an interest rate, as was done in the past. Recommendations from the Technical Subcommittee: 1. Meeting #1 January 19, 2016 a) None (background information presented) 2. Meeting #2 February 6, 2016 a) None (Subcommittee operating guidelines finalized) 3. Meeting #3 April 6, 2016 a) None (began discussion on payments) 4. Meeting #4 April 19, 2016 a) For new public sewers (i.e., sewer extensions approved by the MMSD Commission), payment is due at approval (NOTE: 60 days from approval was discussed, but never formally recommended). b) No recommendation for how long a sewer extension approval is valid (currently 4 years). c) No recommendation regarding payment for approvals where no new public sewers are being installed (i.e., where MMSD Commission approval is not required). d) Fees for bypassed areas or phases within a development can be deferred, but areas must be deed restricted until the fees are paid

55 e) Deed restrictions are to be issued by municipalities, not MMSD, and proof of recording must be submitted to MMSD. MMSD will provide a deed restriction template. f) Deed restrictions are to be released by municipalities only after approval from MMSD. g) Deed restrictions are to be released by municipalities on a phase by phase basis and not by individual properties. h) Payment of all connection fees must be processed/acknowledged by the municipalities. Direct payment to MMSD by the owner/developer is not allowed. i) Any additional MMSD administrative costs for tracking deed restrictions, etc., will be recovered via administrative fees charged by MMSD. 5. Meeting #5 May 17, 2016 a) If an area is platted and sewer service is available, connection charges are due (again..no recommendations regarding payment deadline 60 days, 90 days, etc.). b) If an area is platted and sewer service is available, connection charges can only be deferred if the area is deed restricted. c) If an area is unplatted and sewer service is available, connection charges can be deferred without a deed restriction. d) When in question, deed restrict an area. 6. Meeting #6 July 19, 2016 a) Penalties for missed areas would be charged at 0.5% per month, or 6% per year, with a maximum not exceeding double the value when using the current year rate. b) Interest would be simple, not compounded. c) A $500 administrative fee would apply. d) Penalties would apply moving forward, and not for past missed areas. e) See 7/12/2016 memorandum issued by Connie Anderson (attached). 7. Meeting #7 September 20, 2016 a) None (initial discussion on chargeable areas) 8. Meeting #8 October 18, 2016 a) Chargeable areas finalized. b) Highlights are included in a memo (attached) and are summarized as follows: i) Environmental corridors are generally NOT chargeable: (1) Must be designated as environmental corridor by CARPC (2) Must have legal description ii) Public right of way is generally NOT chargeable iii) Agricultural protection areas are generally NOT chargeable. iv) Parks are generally NOT chargeable, but: (1) Only if they are formally dedicated to the public (2) Only if they do NOT have sanitary facilities (3) Only if they have a legal description v) Parks ARE chargeable if they include sanitary facilities: (1) Charge the greater of 10,000 sq. ft. or area of structures, parking, accessways, etc. (2) Charge regardless of environmental corridor designation. vi) Cemetaries are generally NOT chargeable 54 55

56 vii) Cemetaries are chargeable if they include sanitary facilities: (1) Charge the greater of 10,000 sq. ft. or area of structures, parking, accessways, etc. viii) Farmsteads are generally not chargeable, as they serve an agricultural use. (1) If farmhouse is connected, charge the same as a typical residential lot. ix) Charges for other areas and land uses will be determined on a case by case basis by MMSD staff. 9. Meeting #9 November 15, 2016 a) Average lot size used for the TPCC calculation should be 11,500 sq. ft. b) TPCC should apply to infill/redevelopment areas c) Redeveloped areas should be verified via and annual audit where customer municipalities provide MMSD a certified list of redeveloped areas. 10. Meeting #10 December 20, 2016 a) 55 56

57 Return to Agenda ANDERSON CONSULTS, LLC Legal Counsel for Local Governments Attorney Constance L. Anderson P.O. Box 3004 Madison, WI (Direct Dial) TO: MMSD Connection Charges Technical Subcommittee FROM: Connie Anderson, MMSD Attorney DATE: July 12, 2016 RE: Proposal regarding Payment Incentives for Delinquent Connection Fees To encourage prompt disclosure of connections and timely payment of connection fees, the following language is provided for your consideration: If the Customer Community fails to timely pay the connection fee when due, then the connection fee shall be deemed delinquent. Delinquent connection fees shall be paid at the connection fee in effect at the time of payment plus late fees and administrative charges, provided that the total due shall not exceed twice the connection fee in effect at the time of payment. a. Late fees of ½% per month determined based on the current connection fee and the number of months delinquent. Interest shall be calculated as simple interest, rather than compounded. Interest shall be calculated per month or portion thereof, rather than on a per diem basis. b. An administrative charge of Five Hundred Dollars ($500.00) shall be added to all delinquent connection fees. [See attached Case Study as example of how this will be applied.] ~~~~~~~~ Policy Rationale: Timely payment and reporting is duty of Customer Community. Interest rate of 6% per year is fair and reasonable, following consideration of: o Time value of money o Rates for CWF and other construction loans, including costs of borrowing o Market rate of return on investment; opportunity cost o Interest added to judgments/court orders o Interest charged on delinquent real estate taxes Administrative costs based on MMSD staff & consultants (Finance, Administration, Engineer, Technical Support, Legal), Fly Dane, computer software & management