CAPITAL COST RECOVERY CHARGE. The “Capital Cost Recovery Charge” is an annual fee charged to all Participating Cities other than the City of Seattle, for the purposes of reimbursing Seattle for a portion of the funding it provided to pay for start-up of the PORTAL AGENCY, as further described in Section 13.x.
CAPITAL COST RECOVERY CHARGE. In order to reimburse the City of Seattle for approximately one third of the costs Seattle paid to fund start-up of the Portal Agency, each Participating City other than the City of Seattle will be charged an annual Capital Cost Recovery Charge, in an amount described in Exhibit C. Such Charges shall be imposed each year from and after 2015 until such time as the total Capital Cost Recovery Charges paid reaches $1,400,000. The Capital Cost Recovery Charges will be paid by Participating Cities to the Portal Agency and the Portal Agency shall thereafter remit the total annual amount to Seattle. The Capital Cost Recovery Charge is not considered part of the Portal Agency budget for purposes of calculating Capped Costs or CPI-U limitations on the growth of such costs.
CAPITAL COST RECOVERY CHARGE. The determination of the actual rate increases is based on a Capital Cost Recovery Charge (CCRC), which spreads the cost of a MCIP out over the life expectancy of a MCIP, not to exceed 30 years. The annual cost will be billed to the ratepayer as an incremental increase to the cost per thousand gallons, which is listed as a line item on a customer’s bill. LCA will provide information on the MCIPs with the first bill of the new year. Charges for MCIPs are added to the bill after rate adjustments (CPI-U and margin) have been made to the base rate as allowed under the Lease. Per the Settlement Agreement, the roofs project was agreed to be included as a Major Capital Improvement and eligible for Capital Cost Recovery in 2021: • Roofs Project for water and wastewater For more information on all MCIPs included in the 2021 ratepayer bills consult the Compliance website xxxxx://xxx.xxxxxxxxxxx.xxx/Public-Works/Office-of-Compliance Capital projects associated with addressing the Administrative Orders (AO) are not subject to MCIP requirements. The funding for all AO projects, regardless of project costs, is paid out of the Administrative Order Fund (AO Fund) which the City must maintain. Costs for AO projects are included as a line item on customer bills. The mechanism for determining the AO projects charge is different than the CCRC; it is based primarily on the debt service associated with the AO Fund. In 2020, LCA began the constructions projects detailed in the Regional Flow Management Strategy rehabilitating sewage conveyance (more information below).
CAPITAL COST RECOVERY CHARGE. The determination of the actual rate increases is based on a Capital Cost Recovery Charge (CCRC), which spreads the cost of a MCIP out over the life expectancy of a MCIP, not to exceed 30 years. The annual cost will be billed to the ratepayer as an incremental increase to the cost per thousand gallons, which will be listed as a line item on a customer’s bill. LCA will provide information on the MCIPs with the first bill of the new year. Charges for MCIPs will be added to the bill after rate adjustments (CPI-U and margin) have been made to the base rate as allowed under the Lease. Capital projects associated with addressing the Administrative Orders (AO) may not exceed the threshold amount. However, the funding for all AO projects, regardless of project costs, is to be paid out of the Administrative Order Fund (AO Fund) which the City must maintain. Costs for AO projects will also be included as a line item on customer bills. The mechanism for determining the AO projects charge is different than the CCRC; it is based primarily on the debt service associated with the AO Fund. Currently, two MCIPs for which CCRCs were developed are included in the 2016 water and sewer bill:
