Moving the Needle on Land for Jobs
A 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?”)
2
Quick District Context
Service Area Overview
Financial 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
4
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
5
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
7
How Big is the Pile of Rocks?
Wastewater Infrastructure
● Local Collection Systems
▪ District
▪ Ridgefield
● Regional Transmission
System
● Treatment Facilities
Historical
Investment
Future Investment
New Service to
Build Out
Commercial /
Service Area Industrial Zones
(“Land for Jobs”)
$120M
$15M
$110M
$40M
$25M
$15M
$0
$40M
$30M
$125M
$80M
$15M
TOTAL
$260M
$270M
$85M
CURRENT DEBT
($40M)
8
How Big is the Pile of Rocks?
• Near-Term Priority Investments:
– 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
9
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
• Public Works Trust Fund (PWTF) –
low-interest state loan program
• Sewer Revenue Bonds – municipal
bond market
11
What Tools Do We Have to Move Rocks?
• PWTF / Revenue Bond Comparison
PWTF - Why it Matters
Funding source
Interest Rate
Debt Service Reserve
PWTF
Revenue Bonds
Additional Bond
Cost for Life of
Typical $10M Loan
0.5 - 2%
4 - 5% currently
$5M
Not required
Coverage Ratio
1.00
Issuance Costs
Zero
TOTAL
1 year debt service
reserve
1.25 (25% additional
revenue required)
1 - 2% of principle
$0.8M
$4M
$0.2M
$10M
12
What Tools Do We Have to Move Rocks?
The Bottom Line…
• At current rates/charges, it will take another
30-40 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
13
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?
15
Which Rocks Do We Move First?
Become More Coordinated – better alignment
We can’t do it alone; need coordination/partnership/leadership
Community vision
+ planning / land use zoning
+ transportation investment
+ utility investments
+ development investment
= Jobs
16
Which Rocks Do We Move First?
• Regional sewer program examples:
– Discovery Clean Water Alliance
(discoverycwa.org)
– Discovery Corridor Wastewater
Transmission System
(crwwd.com/projects/dcwts)
– Ridgefield Collection System Transfer
(crwwd.com/ridgefield)
17
Which Rocks Do We Move First?
Become More Strategic – better prioritization:
• 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
18
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
19
John M. Peterson, P.E.
General Manager
Clark Regional Wastewater District
www.crwwd.com
360-993-8819
20