08/09/2022 - PacketUtilities Committee Meeting Agenda
August 9, 2022, 5:00 p.m.
Pursuant to the Governor's "Stay Home - Stay Safe" Order, the City is prohibited from conducting
meetings unless the meeting is NOT conducted in person and instead provides options for the public to
attend through telephone access, internet or other means of remote access, and also provides the abilityfor
persons attending the meeting (not in person) to hear each other at the same time. Therefore;
Remote access only
Link:
https://us02web.zoom.us/j/89247832136
• Water Rates Discussion
• Foster Pilot Project — Update
o Water Rights Purchase Letters
o Augmentation
o Mitigation
• Splash Pad Retrofit — Update
• Stormwater and Watersheds Comprehensive Plan
Stormwater Management Action Planning Section
o Staff Presentation 8/29/22 1:00 PM
o Public Outreach 8/31 /22 1:00 PM
• Stetson Heights Development
o Water Booster Station Status
Next Meeting: TBD
Future Agenda Items:
• Well 13 and PRV's
• McCormick Sewer PS #1 Repairs
• Option to Levy Excise Taxes on W/S
• Bay Street - Street Lighting & Marquee
• Bay Street Utility Plan
• Water System Fluoridation
• Sanitary Side Sewer Policy
• Water/Sewer/Storm Code Compliance
return to agenda
ORCHARD
Utility Co itte
2023-2024 Budge
Water Utility Rates Discussio
08.09.20
Note: This is intended to illustrate the project estimates and potential fundin
Utility Rate Discussions in 2022
• May 10, 2022
• July 12,2022
July 19,2022
• July 19, 2022
August 09, 2022
• August 09, 2022
Utility Committee
Utility Committee
Finance Committee
Council Work Study
Utility Committee
Regular Council Meeting
return to agenda
Previously Discussed
July Meetings:
• Water Financial Outlook
• Water Capital Improvement Program (CIP)
• Rate Structure Adjustments for Conservation
• Rate Setting Goals
• Meet Water Obligations (Operations, Debt, Capital and Reserves)
• Fund the Water Capital Improvement Program
• Promote conservation of water
• Increase equity among customers by adjusting rate structure
• Option A:
• Rates required to meet the goals and financial outlook without structural chan
• Base charge increase of $2/month or $4/bi-month billing + Tier increases
August Meeting:
Option B: Alternative Rate Structure (strengthen conservation incentive)
• Develop and present the adjusted rate structure
• Better meets the rate setting goals
Water Rate Structures Residential 3/4 Meters
1i* *
$ 53.50
$
81.50
$
3.65
$
3.85
$
4.05
$
4.30
$
4.60
$
57.50
$ -
$
4.50
$
4.91
$
5.35
$
5.83
$
6.47
$
7.37
$
64.00
$ -
$
4.50
$
4.73
$
4.96
$
5.21
$
5.52
$
5.91
$
60.00
$ -
$
4.50
$
4.82
$
5.15
$
5.56
$
6.06
$
6.67
$
53.50
$ 3.85
$
3.85
$
4.85
$
5.24
$
5.71
$
6.28
$
6.97
Current: Base Fee ($53.50/Up to 3,000, or $81.50/Up to 5,000 of consumption ep r unit) + single
additional meter size differential + actual consumption
• Tiers are priced per 1,000 gallons
Structural Changes
• Meter Differential no longer factored into bill
• Scenario G: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
• Scenario H: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
• Scenario I: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
• Scenario J: Base Fee + actual consumption (No consumption included in base)
return to agen
Water Rate Structures Non -Residential %4 Meters
$ 81.50
$ -
$
-
$
3.65
$
3.85
$
4.05
$
4.30
$
4.60
$ 57.50
$ -
$
4.50
$
4.91
$
5.35
$
5.83
$
6.47
$
7.37
$ 64.00
$ -
$
4.50
$
4.73
$
4.96
$
5.21
$
5.52
$
5.91
$ 60.00
$ -
$
4.50
$
4.82
$
5.15
$
5.56
$
6.06
$
6.67
$ 53.50
$ 3.85
$
3.85
$
4.85
$
5.24
$
5.71
$
6.28
$
6.97
Current: Base Fee (Includes up to 5,000 gallons of consumption ep r unit) + single additional metE
differential + actual consumption
• Tiers are priced per 1,000 gallons
Structural Changes
• Units are no longer factored into bill Fit Adjust Meter Differential to Industry Standard
• Scenario G: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
• Scenario H: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
• Scenario I: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
• Scenario J: Base Fee + actual consumption (No consumption included in base)
Meter Differential Pricing
Structural Changes
• Meter Size Differential will be based on the AWWA Industry Standard Methodolo
Meter Differential
AWWA Industry Standard Methodology
3/4 $ 81.50 $ 57.50 $ 64.00 $ 60.00 $ 53.50
1
$ 87.50
$ 96.03
$ 106.88
$ 100.20
$ 89.35
1.5
$ 105.50
$ 191.48
$ 213.12
$ 199.80
$ 178.16
2
$ 123.50
$ 306.48
$ 341.12
$ 319.80
$ 285.16
3
$ 159.50
$ 575.00
$ 640.00
$ 600.00
$ 535.00
4
$ 231.50
$ 958.53
$1, 066.88
$1, 000.20
$ 891.85
6
$ 357.50
$1, 916.48
$ 2,133.12
$1, 999.80
$ 1, 783.16
Water Rate Impact Scenarios
(illustrative only)
Residential
Single Family
Multi -family
Apartment (8 Units)
Non -Residential
4 units Office Suite
12 units Office Suite
School
Restaurant
Irrigation
Other Government
Other Government -Community
Center
96-unit Large Commercial
return to ages
Residential- Illustrative Examples
Winter Ave rage
1
3/4
7,000
$
$
$
$
$
89
138
196
190
707
$
$
$
$
$
78
154
245
176
609
$
$
$
$
$
82
146
220
181
648
$
$
$
$
$
79
147
231
175
618
$
$
$
$
$
82
149
232
182
647
Summer Average
1
3/4
20,000
High Consumption
1
3/4
34,000
Duplex -Summer Avg
2
3/4
17,500
Apartment
8
1
53,500
Winter Average
1
3/4
7,000
$ -
$ -
$ -
$ -
$ -
$
$
$
$
$
(11)
16
49
(15)
(99)
$
$
$
$
$
(6)
8
24
(9)
(59)
$
$
$
$
$
(10)
9
35
(16)
(89)
$
$
$
$
$
(6)
11
36
(9)
(60)
Summer Average
1
3/4
20,000
High Consumption
1
3/4
34,000
Duplex -Summer Avg
2
3/4
17,500
Apartment
8
1
53,500
return to agenda
Residential Illustrative Examples
Residential Customers:
• 15% used 0-3,000 gallons and paid $53.50 or less per bill in 2021
• 85% used 3,000+ gallons and paid above $53.50 per bill in 2021
return to agem
Non -Residential -Illustrative Examples
4-Unit Office Suite
4
3/4
7,000
$
326
$
76
$
82
$
79
$
82
12-Unit Office Suite
12
3/4
15,000
$
978
$
118
$
121
$
119
$
123
School
1
3
425,000
$
2,068
$
3,614
$
3,101
$
3,363
$
3,427
Restaurant
1
3/4
190,000
$
909
$
1,364
$
1,136
$
1,255
$
1,308
Irrigation
1
2
422,000
$
2,018
$
3,323
$
2,784
$
3,062
$
3,157
4-Unit Office Suite
4
3/4
7,000
$ -
$ -
$ -
$ -
$ -
$
$
$
$
$
(250)
(860)
1,546
455
1,305
$
$
$
$
$
(244)
(857)
1,033
227
766
$
$
$
$
$
(247)
(859)
1,295
346
1,044
$
$
$
$
$
(244)
(855)
1,360
399
1,139
12-Unit Office Suite
12
3/4
15,000
School
1
3
425,000
Restaurant
1
3/4
190,000
Irrigation
1
2
422,000
return to agenda
Non -Residential Illustrative Examples
ConsumptionBi-Monthly Bill
Example Units Meter
Other Government 1 6 1,687,000 $ 8,071 $ 14,256 $ 12,053 $ 13,180 $ 13,472
Community Center 11 3 41,000 $ 975 $ 792 $ 835 $ 807 $ 757
Commercial 96 3 60,500 $ 7,902 $ 927 $ 947 $ 931 $ 887
9
Overall Results Et Recommendation
Option A: No Structural Chance
► -- $2.00/month increase on Base Fee's
► --$4.00/bi-monthly increase on Base Fee's
No. --4% increase in Tiered consumption rates
Option B: Structural Chance to strenethen conservation incentive
Scenario G: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
Scenario H: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
Scenario I: Base Fee (Includes up to 3,000 gallons of consumption) + actual consumption
Scenario J: Base Fee + actual consumption (No consumption included in base)
return to agenda
Staff Recommendation
Option B: Structural Chance to strengthen conservation incen
Scenario J
Base Fee + actual consumption (No consumption included in base)
Achieves revenue target
Meets Department of Health anticipated conservation standards and requirements
Empowers customers to conserve water and reduce water bill
Charges for consumption while providing a stable base for the system
Modernizes billing system to be more in line with peers
uestleons £t Discussion
CITY OF PORT ORCHARD
Public Works Department
216 Prospect Street, Port Orchard, WA 98366
Voice: (36o) 876-4991 • Fax: (36o) 876-4980
DATE
Landowner
Street Address
City, State, Zip
Dear Sir/Madam,
The City of Port Orchard has undertaken an effort to identify properties that possess a water
right within the region. We are writing to you to ask for your help. Part of our consultant team,
WestWater Research, identified your property as possessing a water right that may help reduce
or eliminate the effects of future groundwater withdrawals as part of the City's plans to relocate
existing wells and water rights and acquire additional water rights from the Washington State
Department of Ecology (Ecology) for planned growth.
Increased pumping from the planned City wells may divert groundwater that is needed to
maintain flows in streams and lakes. Ecology requires the cities to address adverse effects on
surface water bodies caused by additional groundwater pumping. This is where you may be able
to help. We are contacting you to discuss the possible sale of your water right to the City. Your
water right may also provide additional benefits to the surface water and groundwater resources
in your area.
Why does the City of Port Orchard Need Water Rights?
The City of Port Orchard is working to increase flows in surface streams in an effort to offset
possible reductions in stream water levels resultant from the City's planned changes in
groundwater withdrawals in the region. The acquisition of surface and groundwater rights is one
way to mitigate these predicted impacts.
Why is the City Contacting Me?
The City is asking for your help because your property was identified as possessing a water right
that may help reduce or eliminate the effects on surface flows in streams within the region. Your
water right may also provide other benefits to the surface water and groundwater sources in your
area.
What Happens Next?
I will be contacting you next week to discuss the possible purchase of all or a portion of your
water right by the City. The City is prepared to pay fair market value for water rights that are
purchased. We want to assure you that all transactions are voluntary, and negotiations can
be kept confidential. You are under no obligation to sell your water right to the City.
Please feel free to contact me at 360-876-7048 if you have any immediate questions regarding
your water rights or the City's mitigation requirements. Thank you for your time.
Sincerely,
Jacki Brown,
Utilities Manager