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02/09/2021 - MinutesUtility Committee Minutes Meeting of February 9, 2021 Page 1 of 3 City of Port Orchard Utility Committee Meeting Minutes February 9, 2021 at 5:00 PM Utility Committee Members; Chair Cindy Lucarelli, Jay Rosapepe and John Clausen met on February 9, 2021 via Zoom Meeting. Also present: Public Works Director/City Engineer Mark Dorsey, Utility Manager Jacki Brown, Finance Director Noah Crocker and Mayor Rob Putaansuu. Project Funding – Updates: PWD Dorsey and UM Brown Provided Committee members with the following project funding updates; • American Water Infrastructure Act - As required by the EPA, a Risk and Resilience Assessment and Emergency Response Plan (Section 2013 of the America’s Water Infrastructure Act of 2018) must be conducted and certification of the Plan’s completion prior to the June 30, 2021 deadline. At this juncture, UM Brown is prepared to take on this activity. To be continued. • Splash Pad VE - The current Value Engineering (VE) exercise for the McCormick Village Park Splash Pad went well and it is anticipated that the current Engineer’s Estimate of $528K can be reduced to approximately $200K, without changing the operational schematics of the water treatment system. The City will advertise the current PS&E, along with Addendum No. 1, which will capture the design revisions of the VE as to not incur additional cost and further delay the Advertisement of the Project. To be continued. • Sidney Avenue Sewer & Roadway Repair - An ‘unplanned’ emergency repair to address the sinking of concrete panels within an area of Sidney Avenue is now required. This unplanned Project will require the diversion of funds from other currently funded projects (Street, Sewer and Storm), but will be designed ‘in- house’ to reduce overall Project costs. To be continued. • 2021 DWSRF Well #11 Application - The City was not successful is their $5M request for the Well #11 100% Design and Construction Project via the FY 2021 DWSRF Loan Application process. But the Application did score well enough for the State Department of Health (DOH) to offer a $500K Pre-Construction Loan, with the understanding that this award will bolster the 2022 DWSRF Loan Application for the Well #11 Construction Phase. Staff will immediately pursue securing the $500K Pre-Construction loan amount. To be continued • 2014 DWSRF Well #10/13 Project – In brief summary, the City’s $6M DWSRF- funded Well #10/#13 Project has been problematic for several reasons and has received three (3) contract extensions from the State Department of Health Utility Committee Minutes Meeting of February 9, 2021 Page 2 of 3 (DOH) since its inception in 2014, with the current Project Completion Date now being December 31, 2021. Given the latest issue, being that Well #13 cannot be put into service until the Water Rights have been secured (i.e., Foster), DOH fully understands this Catch 22 and has requested that the current Loan be closed-out immediately with a 25% Scope Reduction Amendment, which will eliminate the current final phase of Work. This will require the 10% retainage fee to be forfeited. The City will then apply for a new DWSRF Loan for both the Design and Construction of the Final Phase (pumping and treatment facilities) once the Foster ‘picture’ becomes clearer, with the understanding that this $3 to 4M request will bolster by the fact that DOH has already funded three-quarters of the Project. Staff will immediately pursue closing out the current 2014 Well #10/13 DWSRF Loan. To be continued Foster Pilot Program - Update: UM Manager Brown updated Committee members on the current status of the Foster Pilot Project – Joint Legislative Task Force (JLTF), being that very little has changed since the last update in November 2020. The only significant update is associated with the report from above, that DOH is now starting to delay and/or withhold the review and approval of Projects and/or Plans until Water Rights are first established by DOE. As this affects or Water System Plan approval, and our Well #11/Well #12/Well #13 Projects, staff is currently challenging this stance. To be continued. Water System Plan 2020/2030 - Update: PWD Dorsey and UM Brown updated Committee members as follows: • Pending WSP Update Adoption - On the current status of the now 2020/2030 (possibly 2021/2013?) Water System Plan (WSP) Update of the currently adopted 2011 WSP (originally proposed to be completed in 2017), between DOH staff being reassigned to COVID support and the Water Rights stance reported above, the current anticipated WSP approval if now Fall 2021. To be continued. • Water Rates & CFC Adjustments – Updated Sewer CFC’s were adopted by Council on September 22, 2020, with Water CFC’s scheduled for updating within Q1/2021. Water (and Sanitary Sewer) Rates are currently scheduled for discussion in Q2/2021. To be continued. • Rate Structure – As a function of the pending Water and Sanitary Sewer Rate study, current POMC Chapter 13.04 structure will also be discussed. To be Continued. • CFC Credits – Sanitary Sewer CFC Credits, having already been presented to Council, are currently scheduled for adoption on February 23, 2021. Water CFC Credits will follow the CFC Update adoption in Q1/2021. To be continued. Utility Committee Minutes Meeting of February 9, 2021 Page 3 of 3 General Sewer Plan Amendment: PWD Dorsey and UM Brown updated Committee members as follows; • Pending GSP Amendment Adoption – The 2021 General Sewer Plan (GSP) Amendment, which primarily updates the City’s Sewer Capital Improvement Project (CIP) List, has been approved by Ecology and is schedule for Council adoption on February 23, 2021. • 2022 GSP Update/Sewer Rates – As mentioned above and having already updated the Sewer CIP list within the 2021 Sewer GSP Amendment, Sewer Rates will be discussed in Q2/2021. The Sewer GSP Update is scheduled and budgeted for 2022, with incorporation by reference into the 2023 Comprehensive Plan Update. To be continued. Watershed Restoration Enhancement Committee and Brochure - Discussion: UM Brown provided Committee members with a brief summary of the current WRIA 15 Kitsap Watershed Restoration and Enhancement Committee Overview, being the Ecology-managed Streamflow Restoration Law enacted by the Legislature in 2018. Staff has been following this process, even though it is specific to ‘non-permitted’ water sources, because it will potentially have an impact on the outcome of the ‘permitted’ sources conversation (Water Rights/Foster.) To be continued. Next Meeting(s): March 9, 2021 (via Zoom) Next SAC Meeting(s): TBD 2021 Meeting adjourned at 6:01 PM Meeting successfully recorded via Zoom Cc: Council, City Attorney, Mayor and Department Heads