05/11/2005 - Special - Minutes
CITY OF PORT ORCHARD
City Council
CITY HALL • 216 Prospect Street, Port Orchard, WA 98366
(360) 876-4407 • FAX (360) 895-9029
SEWER RATE PROPOSAL
Public Meeting
May 11, 2005
City Council Chambers
Public Works Director Maher Abed, introduced himself and City Treasurer Kris Tompkins
and informed the audience that this public meeting was to discuss and inform the
citizens of Port Orchard about the proposed sewer rate and connection increases.
Public Works Director Abed started the meeting of the sewer rate proposal by indicating
this discussion is for residents within the City limits of Port Orchard and those residents
outside the city limits who receive service from the City. This increase does not apply to
those residents that are serviced by Karcher Creek Sewer District.
Public Works Director Abed gave a power point presentation and discussed the basis for
the monthly increase of $9.00, rate comparison with other providers and rate increases
for City customers inside the city limits versus rates outside the City. Public Works
Director Abed also discussed the proposed increase in sewer connection fees to $6,000;
the basis for the increase, comparison with other jurisdictions and how the fees will be
collected. Public Works Director Abed concluded his presentation by discussing the
implementation and timelines for the proposed rate increase. Following the
presentation, there was a question and comment period.
Ron Rider, Councilmember, asked Public Works Director Abed to clarify how the surplus
revenue will be used and justified. Public Works Director Abed advised this is not
considered a revenue surplus; these funds will be used for future replacement of sewer
lines that are old and in need of improvements. Public Works Director Abed also
commented the City is estimating that each year 100 ERU’s will be placed into service,
however this may not be the case and some years the City may experience shortfalls.
The City needs to plan for unforeseen conditions; growth may be slow some years. The
rate increase will provide reserves for the City.
May 11, 2005
Page 2 of 3
Jack Smith, member of the audience, asked if the City is considering a plan to provide a
Class A effluent process to offset future costs. Public Works Director Abed advised the
reuse of effluents is an excellent plan, however this process is still in the planning
stages, and will take time to develop. The City and Karcher Creek Sewer District are
working in that direction.
Currently the sludge solid from the Treatment Facility is a very black harmless material,
however if treated properly it can become a Class B product that can be used for
fertilizer and made available to the public.
John Clauson, Councilmember, commented that currently the Treatment Facility is
already underway with getting the effluents up to a Class A product, hopefully by the
end of June the Treatment Facility will be producing a Class A product. The cost to haul
the effluents out of Kitsap County are running approximately $60,000 per year, which
would be considerably lower if the effluents can be recycled within the community.
A member of the audience asked for clarification regarding rates for customers who live
outside the City limits, receive service from the City and pay a 50% surcharge. What
makes the cost greater?
Councilmember Clauson, advised because these services are outside the City limits, the
surcharge is due to additional personnel and utility expenses to these areas.
Councilmember Clauson also commented ULID #6 was implemented to allow for the
collection and transmission system to get the effluents to the Treatment Facility.
McCormick Woods was built with essentially each home having their own septic system,
unfortunately the community drain field failed. Due to this failure the City took on the
responsibility of this system. Part of the maintenance is to pump all the septic tanks on
a five-year rotation, which requires increased City personnel and utility service
expenses.
A member of the audience asked if the water rates would increase as well. Public
Works Director Abed advised currently the water rates would remain the same with no
increase.
A member of the audience asked for an explanation of the operating expense and all
other expenses that were referred to in the slide presentation. City Treasurer Tompkins
gave a listing of the type of expenses the system incurs.
Francis Marsh, a member of the audience questioned the $45.00 stormwater fee that is
included in her yearly tax statement. City Treasurer Tompkins advised the City does not
collect stormwater fees and does not receive any stormwater fees from Kitsap County.
A member of the audience commented that maintenance and operating expenses
should be an easy budgeted item and expressed a concern with a 30% increase to the
May 11, 2005
Page 3 of 3
sewer rates. Public Works Director Abed advised the City has loans to pay back due to
the upgrade and expansion of the sewer Treatment Facility. Public Works Director Abed
further commented the only way to cover the shortfall in the revenues is to increase the
rates $9.00 a month by July 1, 2005. Public Works Director Abed reiterated the
increase would match the same rate scale that Karcher Creek Sewer District
implemented in 2000.
Councilmember Clauson added the increase in expense and operation costs are
specifically due to the expansion and upgrade of the Treatment Facility. The current
effluents have maxed out the sewer mains, which brought about the need for a second
main in the Port Orchard Boulevard. The upgrade and expansion are for the growth of
the City and the increase will help for the future funding of this growth.
At this time, Public Works Director Abed thanked all those attending this meeting and
reminded the audience that the Council will have a Public Hearing on May 23, 2005 to
finalize and update the proposed sewer rate and connection fee increases.
Sewer Increase
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