10/20/2020 - PacketUtilities Committee Meeting Agenda
October 20, 2020, 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 ability for persons attending the meeting
(not in person) to hear each other at the same time. Therefore;
Remote access only
Link:
hqps://us02web.zoom.us/j/87058341538
Zoom Meeting ID: 870 5834 1538
• Water System Plan 2020/2030 — Update
o Anticipated Water Rate & CFC Adjustments
• Stormwater Program Status Report
• Next Meeting: November 17, 2020
Future Agenda Items:
• Utility Department Work Plan - Update:
• 580 Zone Water Campus - Update:
• McCormick Sewer Pump Station #1 Repairs - Update
• Cross Connection Control & FOG Programs - Discussion
• Stormwater Comprehensive Plan (2021) - Update
• 580 Transmission Main
• Marina Sewer Pump Station 80% Design
• Stormwater Program Status - Presentation
• Option to Levy Excise Taxes on W/S - Discussion
• SKWRF Nutrient Cap - Update
• McCormick Communities - Global Agreement
• 2019-2024 NPDES Permit Draft Comments - Update
• Bay Street - Street Lighting & Marquee - Update
• Touch -Read Water Meters - Update
• Water System Fluoridation - Update
• Fire Hydrant Operation and Maintenance Program - Update
• Valve Operation and Maintenance Program - Update
0 Sanitary Side Sewer Policy - Discussion
City of Port Orchard
2020 Water System Plan
Chapter 1 Financial Program
1.1 Introduction
This chapter summarizes the City of Port Orchard's water utility financial history, identifies
funding sources and a plan for funding the recommended capital improvements and provides a
ten-year financial plan, with the impact on rates. This chapter was prepared by Katy Isaksen &
Associates.
1.2 Financial History
The City owns and operates a water system along with sewer and stormwater systems. The
self-supporting water utility is accounted for separately in water fund 411 that includes water
operating expenses and transfers to the water capital reserve 413 to carry out the capital
improvement projects, and rate stabilization and debt funds. The ending fund balance remains
to provide for future use of the water utility. Table 9-1 provides a three-year financial history of
the water fund based on the City's financial reports.
Table 9-1 Three Year Financial History
WATER OPERATING FUND 411
2017
2018
2019
Budget 2020
Operating Revenue
Water Sales - Residential
1,801,146
2,043,348
2,238,125
2,383,300
Water Sales - Commercial
552,629
607,541
703,009
740,700
Water Sales - Irrigation
99,862
117,441
133,239
132,800
Construction Water Sales
4,533
12,975
18,075
8,800
Other Fees - Connects
21,450
33,196
22,649
12,900
Water Inspection Fees
6,556
4,749
5,040
61700
Plan Review Fees
1,574
22,882
202
11700
Other Planning & Development Service
1,050
2,250
1,800
1,200
Penalties
17,001
20,297
39,088
-
Investment Interest
12,351
32,793
23,256
8,600
Rents & Leases
31,464
36,983
74,371
56,500
Miscellaneous
242,063
25,372
8,473
-
Intergovernmental Loan Proceeds
-
14,342
Transfers In for CIP
-
719,705
Subtotal W Revenue
2,791,679
3,693,874
3,267,327
1 3,353,200
Table 9-1 Three Year Financial History (cont.)
August 14, 2020 1-1 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
WATER OPERATING FUNS 411
2017
2018
2019
Budget 2020
Expenses
Salaries -Water Admin
516,244
558,587
598,675
630,900
Benefits -Water Admin
217,246
273,056
274,805
331,900
Supplies - Administration
14,813
35,192
12,763
5,200
Services -Administration
222,888
367,509
639,185
293,045
Intergovernmental Services & P
242,627
291,739
290,765
282,800
Supplies - Distribution
98,247
139,638
68,086
57,050
Services - Distribution
219,511
191,182
20,116
30,950
Supplies - Source
496,589
515,293
347,465
441,500
Services - Source
7,167
11,148
113,625
116,000
Supplies - Storage
3,353
4,378
1,651
300
Services - Storage
10,495
11,113
11
6,000
Refundable Deposit
-
-
9,600
-
Debt Payments LT, notes
16,615
94,202
Salaries/Benefits - Capital Outlay
-
9,583
Other Improvements
1,711,511
Machinery & Equipment
-
4,786
Operating Transfers - Out (412 W Stab)
100,000
290,000
Operating Transfers - Out (413 W Capital)
100,000
237,500
Operating Transfers - Out(414 W Debt))
30,128
-
Transfer - 500 ER&R 0&M
24,256
35,300
Transfer - 500 ER&R Replacement
142,430
27,193
Subtotal W Expenses
2,065,796
4,218,918
2,773,561
2,785,638
Annual Increase/(Use) of Reserves
725,884
(525,043)
493,767
567,562
At the bottom of Table 9-1, the Annual Increase/ (Use) of Reserves line provides a quick view of
whether the water revenue was sufficient to meet the expenditures in each year. If revenue is
greater than expenses, the reserve levels are increased. If revenues are less than
expenditures, the reserves are used to balance the budget for the year. This may work for a
couple of years as long as capital improvement funding is higher than typical but is not
sustainable in the long run. The water utility has been setting aside funds for capital
improvements that are underway and under design per the 2014 gap analysis rate study and
six -year financial plan. A multi -year rate schedule was adopted by the City Council for 2016-
2020.
Prior to 2019 the City had a combined water/sewer operating fund. In 2019, the City split the
combined utility fund into separate water and sewer funds. The water utility now includes 4
funds: operating 411, rate stabilization 412, capital reserve 413, and debt 414.
Monthly water service charges are the primary source of ongoing revenue for the water utility,
including sales to residential, commercial, irrigation and construction. Other revenue includes
connection and inspection fees, plan review and other development services, investment
interest and rents/leases. Miscellaneous includes sale of surplus, miscellaneous, refunds and
insurance recoveries. The capital facilities charges collected from new or upsized water
connections are deposited directly into capital fund 413.
August 14, 2020
1-2 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
1.2.1 Water Utility Funds
The water operating fund balance at the beginning of 2020 was $2,207,000 as shown in Table
9-2. One time transfers out during 2020 include $1.2 million to capital reserve 413 for CIP and
upsizing contributions, and $319,000 to debt 414 to set up the required debt reserve on the
existing DWSRF loan. The model shows $561,000 will be available from rates after meeting
operating expenses and debt payments. After subtracting a three month cash flow reserve of
$525,000, the remaining $724,000 is available for future system investment or water fund use.
Table 9-2 Water Fund Balance - 411
Water Operating Fund 411
2020
Comments
Beginning Fund Balance
$2,206,979
2019 actual year end
Transfer to Capital Reserve 413 for CIP
(1,200,000)
one time
Transfer to Debt 414 for Debt Reserve
(319,000)
set up reserve for DWSRF
Annual Increase /(Use) of Reserves
523,138
Estimated Ending Fund Balance
$1,211,117
Target Minimum Balance
Cash Flow Reserve
525,000
90 days operating expense
Available Balance
$686,117
for future investment
The water capital reserve began 2020 with a balance of $2,365,000 as shown in Table 9-3.
Anticipated 2020 income includes the $1.2 million transfer from water operating 411, capital
facilities charges of $297,000, $854,000 in loan proceeds from the existing DWSRF loan, and
an operating transfer from rates for capital improvements of $401,000. The 2020 planned
capital expenditures are $1,654,000. After subtracting $500,000 for an emergency reserve, the
remaining $2,963,000 is available for water system improvements.
Table 9-3 Water Capital Fund Balance - 413
Water Capital Fund 415
2020
Comments
Beginning Fund Balance
$2,364,572
2019 actual year end
Transfer from Water 411 for CIP
1,200,000
one time
Capital Facilities Charges
297,500
Existing DWSRF Loan Proceeds
853,698
Transfer from 411 - CIP Funded by Rates
400,924
CIP Program Expense
(1,653,698)
Estimated Ending Fund Balance
$3,462,746
Target Minimum Balance
Emergency Reserve
500,000
maintain for emergencies
Available Balance
$2,962,746
for capital improvements
In addition to the water operating and capital reserve funds, the utility also has a water
stabilization fund 412 established in 2019. The 2020 beginning balance is $101,000, with
planned contributions from rates of $290,000 per year over 2020-22. The water utility also has
a debt fund 414 used to make necessary debt payments.
August 14, 2020
1-3 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
1.3 Outstanding Debt
The water utility has two outstanding debt issues in the form of a note to McCormick Woods
Water Company and a Drinking Water State Revolving Fund (DWSRF) low -interest loan to
Washington State Department of Health.
The McCormick Woods note payment is $50,000 per year, paid from capital facilities charges
collected.
The DWSRF loan was approved for a principal amount of $6,060,000 at 1.5% interest to be
repaid over 20 years. This loan is being used for the Well 13 improvements that are underway
and expected to be complete in 2021. Repayment begins the October after project completion
and will be based on the actual amount borrowed. Interest is accruing on the draws taken and
the first payment of interest only is anticipated to be due in 2021 at $320,000. Beginning 2022,
the principal and interest payments will be made each year. It is anticipated that payments will
be $319,000 principal + 1.5% interest on the outstanding balance ($410,000 in 2022), due each
October through 2040.
The State of Washington designed the DWSRF program to be junior in lien to outstanding parity
debt, typically revenue bonds. The City does not currently have any revenue bonds outstanding
that pledge the revenue of the combined waterworks utility.
The City issued general obligation bonds in 2013 for the City Hall upgrades. The water utility
was contributing its share each year and the bonds were paid off in 2019.
1.4 Current Rates and Charges
The City Council has authority to set rates and charges for the water utility to ensure it remains
self-sufficient and meets all covenants on outstanding debt. The rates are reviewed annually
during the budget process. Current water rates and fees are included in the COPO Municipal
Code, Chapter 13.04.
1.4.1 Monthly Water Rates
The City reads meters and bills customers every 2 months (bimonthly) for water service. All
customers pay a base fee per water meter or unit plus a volume charge based on metered
water use. There are 2 levels of base fee for a 3/4" single family water meter, either 0-3,000
gallons or 3,001-5,000 gallons. Water usage is charged per 1,000 gallons for all usage above
5,000 gallons in 5 additional tiers to promote conservation: 5,001-10,000 gallons, 10,001-20,000
gallons, 20,001-30,000 gallons, 30,001-50,000 gallons, and 50,001+ gallons per two -month
billing period. Larger meters pay a larger base fee with up to 5,000 gallons included, and
multiple connections, where multiple units are served through one meter are on a per unit basis
with meter size differential. Outside city customers pay a 50% surcharge.
The current residential base rate is $81.50 for 2 months and includes 5,000 gallons. A reduced
base rate of $57.50 is offered for usage up to 3,000 gallons. The typical single family residence
currently pays $88.80 for 7,000 gallons per 2-month bill or $44.40 per month for 3,500 gallons of
water. Current water rates are in Table 9-4.
Table 9-4 Current Water Rates
Water Rates - Bimonthly
Base + Water
2020
3/4" Meter, 0-3,000 gal
Base
$53.50
3/4" Meter, 3,001-5,000 gal
Base
$81.50
August 14, 2020 1-4 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
Water Usage in excess of base allowance
5,001-10,000 gal
per1000g
$3.65
10,001-20,000 gal
per1000g
$3.85
20,001-30,000 gal
per1000g
$4.05
30,001-50,000 gal
per1000g
$4.30
50,001+ gal
per1000q
$4.60
1.4.2 Water Capital Facilities Charges
Water capital facilities charges (also referred to as system development fees, general facilities
charges, connection charges or participation fees) are collected from each new or upgraded
connection to the water system. These charges are for the right to connect into and make use
of the system. All connections must obtain a water permit, pay water meter and service
installation fees and inspection fees as appropriate and described in COPO Municipal Code,
Chapter 13.04. The 2020 Water Capital Facilities Charge for a new single family residence
inside the city limits is $5,945 and has been in effect since 2017. Table 9-5 summarizes the
current water capital facilities charge.
Table 9-5 Current Water Capital Facilities Charge
Water Capital Facilities Charge
Current
Residential
Per ERU
$5,945
Nonresidential — Based on Meter Size
3/4"
$5,945
1"
$9,928
1-1/2"
$19,797
2"
$31,687
3"
$59,450
4"
$99,103
Irrigation
No CFC
1.5 Capital Improvement Funding
1.5.1 Capital Funding Sources
The City has preferred to avoid taking on new utility debt when possible and has relied on low
interest loan programs from Washington State when necessary, including Public Works Trust
Fund (PWTF) and Drinking Water State Revolving Fund (DWSRF). The City has also worked
with developers and the City of Bremerton to secure water supply and facilities when in the best
interest of the City's ratepayers. In addition, local sources of capital funding include connection
fees, developer extensions with latecomer agreements, monthly rates, and capital reserves.
These are the primary sources of capital funding available for water. The following discussion
outlines the City's major water funding source opportunities.
The Washington State Department of Health (DOH) typically has four DWSRF funding
opportunities each year: grants for preconstruction or consolidation in April and May; loans for
preconstruction are open year-round; construction loans in October and November; and
emergency loans open year-round. The opportunities require funding from the State capital
August 14, 2020 1-5 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
budget and federal capital budget. Specific information is available on the DOH website
(www.doh.wa.gov, DWSRF page). A 1-percent loan fee is included in a successful construction
application and the standard interest rate is currently 1.75 percent for a 20-year loan term.
Disadvantaged systems and consolidation projects qualify for 1.25 percent interest rate, up to
50 percent principal forgiveness (subsidy), and up to 30-year loan term. This is partially a
federally funded program under the U.S. Environmental Protection Agency (EPA) (partially State
funded) and there are a number of federal requirements that must be met. EPA has a new focus
on asset management. Bonus points are available for attending asset management training and
for submitting a completed asset inventory. The DWSRF program scores all project
applications based on the health risk being addressed. The goal is to provide loans for capital
improvements that increase public health protection and compliance with drinking water
regulations and protect the health of people throughout the State by ensuring safe and reliable
drinking water.
The Public Works Board, operating with the Washington State Department of Commerce, offers
the PWTF program. The program is focused on completing necessary infrastructure projects to
recirculate the funds to the next round of projects. This requires that projects be ready to
proceed and thus the loans must be drawn within 36 months of approval. The program has
been on hold or had very limited funds for several years with the State education budget crisis.
The program relies on the State capital budget appropriation. The program will accept
applications when funds are available. The legislative session in 2021 will be the next
opportunity for funding into the Public Works Assistance Account. If successful, the first round
submittal deadline may be in July 2021 for construction or preconstruction loans, with interest
rates potentially around 1.5% for standard 6-20 year loans. Emergency loans are offered year-
round as long as funds are available. More detailed information is available on the Public Works
Board website (www.pwb.wa.gov).
Other funding sources include the Washington State Department of Commerce energy
efficiency grants and the Community Economic Revitalization Board (CERB) program geared to
infrastructure improvements for job creation.
On the federal assistance side, there is the US Department of Agriculture -Rural Development
Program (USDA-RD) that provides low -interest loans with potential grant subsidy for water
systems in communities up to 25,000. There is also a federal Economic Development
Administration (USEDA) with a Public Works grant and loan program available.
To keep current with infrastructure funding programs, a database is provided by the
Infrastructure Assistance Coordinating Council (IACC). The City can use this database to
monitor available funding and contact information. The database can be accessed on the web
directly on the IACC website (www.infrafunding.wa.gov).
1.5.2 Local Funding Sources
Monthly water rates can provide an on -going level of funds for planned capital repairs, system
replacement, and improvements. These funds are appropriate for repair and replacement of the
water system to serve existing customers. Capital facilities charges from new connections are
also available to fund improvements to the water system. The water utility is able to borrow from
the above -mentioned financial assistance programs and any loans will need to be repaid by
monthly rates and connection charges. The water utility is able to sell revenue bonds and/or
general obligation bonds to fund planned system improvements. Revenue bonds will be repaid
by water rates and connection fees. General obligation bonds can be repaid by water rates and
charges or general City tax revenue.
August 14, 2020 1-6 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
Some of the projects will be the responsibility of developers to connect their property to the
system. When developers complete projects that are approved by the City, the infrastructure is
deeded over to the City. The developer can negotiate a latecomer or recovery agreement with
the City to be reimbursed by new development making use of the facilities constructed by the
developer for a specified period of time allowed by state law. In certain instances, on a case by
case basis, such as when additional capacity is provided by a developer -funded project, the City
may opt to participate in a cost sharing mechanism.
The City has the option to complete area -specific projects and be reimbursed as new
development occurs through a special connection charge. The City also has the option to
establish a utility local improvement district (ULID), where the properties specially benefiting
from an infrastructure investment would pay their share through an assessment.
1.5.3 Affordability
The EPA requires DOH to award subsidy, or principal forgiveness, of at least 20 percent of the
EPA capitalization grant award. In order to determine how best to award the subsidy,
communities are evaluated on affordability of water compared to the median household income
(MHI). EPA defines affordable water rates as 2 percent of MHI for a community. This also
reflects the test applied by DOH to determine the level of hardship in a community when
applying for grants (subsidy) and loans for water improvement projects. The level of hardship
can influence the financial assistance offer. If the cost of water service is higher, the community
will be considered in hardship and could be eligible for some financial assistance in the offer,
resulting in a grant (subsidy), a lower interest rate loan, or a combination of the two.
Ecology publishes a convenient MHI table each year in their funding guidelines. For the City, the
current MHI is $70,598 based on the early 2020 American Community Survey (Ecology Funding
Guidelines, August 2020, Appendix). The threshold for hardship at 2.0 percent of MHI would be
residential water rates of $117.66 per month. A lower threshold of 1.5 percent of MHI, with
residential rates of $88.25 per month could result in a 0.5% reduction in the interest rate. A
typical residence in Port Orchard currently pays $44.40 per month for water service. This level is
considered affordable and would not be eligible for subsidy.
Another measure of affordability is what residents in local jurisdictions are paying. Table 9-6
compares 2020 water rates for a typical single-family residence, %-inch meter using 3,500
gallons of water per month (468 cubic feet). Using this measure, Port Orchard is clearly higher
than local communities. The average cost of water in the communities listed is $30.00 per
month, or $59.00 per 2-month bill which are less than current City rates. The comparison will
vary depending on the amount of water used in a home, the rate structure (base fee and usage
tiers), and timing of the next rate adjustment.
Table 9-6 Residential Water Rate Comparison 2020
Residential Water Service
2-Month Bill @
7,000 gallons
Per Month @
3,500 gallons
Port Orchard
$88.80
$44.40
Gig Harbor
$65.20
$32.60
Kitsa PUD
$64.29
$32.14
West Sound UD
$56.32
1 $28.16
Bremerton
$53.29
1 $26.64
August 14, 2020 1-7 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
Poulsbo $52.76 $26.38
Bainbridge Island $35.48 $17.74
7, 000 gallons converts to 936 cubic feet of water, or 468 cf per month.
1.6 Water Capital Improvements
Chapter 8 of this WSP identifies in excess of $52 million in recommended capital improvements
for the water system during the 20-year planning horizon, $48.8 million are recommended for
the first 10 years (2020-2029) and $3.8 million for the second 10 years (2030-2039). These
cost estimates are in 2020 dollars.
It is reasonable to assume that the costs will be higher in the future when projects are
scheduled for completion. The estimated costs will be escalated to make sure the funding is
appropriate to match the anticipated cost escalation. The financial projections include
construction cost escalation of 4.0 percent per year.
1.6.1 Ten -Year Capital Improvement Funding
The 10-year projects are displayed by year over the planning period as shown in Table 9-7.
The colors are intended to indicate funding sources, although projects may have multiple
sources. The estimated costs in this table have been escalated from 2020 dollars to the
scheduled year at 4% per year. The total estimated planning level cost for the ten years is $51.6
million after construction cost escalation. The average annual cost is $5.16 million.
The 10-year CIP projects have been reviewed for potential funding sources, such as developer
funding, grants, capital facilities charges, borrowing, capital reserves and rates. The City plans
to schedule the projects as necessary to balance the engineering need, system capacity for
growth and ability to fund the CIP. Grants will always be reviewed and pursued when
appropriate.
Table 9-8 summarizes the funding sources to support the planned CIP projects. Developer -
funded improvements total $14.2 million. The existing DWSRF loan proceeds total $3.6 million,
with new borrowing of $21.8 million. Capital reserves of $0.7 million will be used, and rates will
contribute $8.4 million over the ten years. With the conservative growth scenario of 50 new ERU
per year, capital facilities charges are projected to bring in $2.9 million.
When the new 580 zone reservoir project is finalized and capacity is confirmed, the City will
know whether further transactions with McCormick Woods are necessary, and in which
direction. These are not included in this scenario.
Table 9-9 estimates the annual debt payments for the "Borrow for CIP" funding source. The
model assumed standard DWRF loans with a 1.0% loan origination fee, 20-year repayment
term and interest as shown, 2.0% for the 2022 loan and 2.5% for later loans.
August 14, 2020 1-8 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
Colors attempt to indicate funding sources
Table 9-7 Water 10-Year Capital Improvement Program (CIP), 2020-2029
2020 Cost Estimates have been Escalated to year Shown at 4% per year
CIP No.
Project
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
1
580 Zone Storage
2,184,000
2
CIP No. 2 Combined
853,698
2,978,277
2A
Well 13 Development & Treatment
2B
Maple Ave Improvements & W Main Replacement
2C
390 to 260 Rezone PRVs (4 each)
3
Well 11 Development, Treatment, and BoostE
300,000
700,000
7,250,000
4
580 Zone Transmission & Distribution Main
1,284,000
5
390 Zone Storage
3,796,000
6
Telemetry Upgrades
137,000
7
390 to 580 Zone Booster Station (Old Clifton)
591,000
8
580 to 390 Zone Transmission Main (580/390 PRV to Old CliftonTank)
1,55Q000
9
Well 12 Development, Treatment, and Booster Pump Station
8,18 0
10
IMelcher Pump Station Upgrade
541,000
11
PRV Improvements per Hydraulic Model
394,000
12*
390 to 580 Zone Booster Station (Glenwood)
546,000
13*
390 to 580 Zone Transmission Main (to Glenwood PS)
1,430,000
1,916,000
14
580 to 660 Zone Booster Station
658,000
15
660 Zone Storage
2,895,000
16
Well 7 Treatment/Pump Station Upgrades
2,0 )0
17
1 Main Replacements per Hydraulic Model
1
541,000
562,000
585,000
08,000
18*
Feasibility Study for Consolidation and Fluoridation
30,000
19
Risk and Resiliency Study for AWIA 1
52,000
20
Annual Main Replacement Program (Upsize 1"4" main to
250,000
260,000
270,000
281,000
292,000
304,000
316,000
329,000
342,000
21
Annual Valve Replacement Program
75,000
78,000
81,000
84,000
88,000
91,000
95,000
99,000
103,000
22
Annual Hydrant Replacement Program
50,000
52,000
54,000
56,000
58,000
61,000
63,000
66,000
68,000
23
Foster Pilot Mitigation Projects
500,000
540,000
24*
1390 Zone Low Pressure Booster Pumps for Existing Water Services
730,000
25
Well 10 Rehab, Activation, and Water Main
I
1
4,400,880
Total Ten -Year Water Improvementsi
$1,653,6981
$10,119,2771
$8,72 0
$1,952,000
$10,745,000
$4,r.04,0001
$4,252,000
$4,027,000
$631,000
$4,913,880
*Project Funding notes: 110111.
Project#3 cost adjusted per previously unknown well rehab -$300k for 30%design, $700k to get design, not enoug djust constr. cost at this time.
Project #12 is developer funded, model est. $546k
Project#13 is split between 2021&2025; for 2021 amount, approx.$200k to be ra ributi psizing fromreveloper requirement)to 12" (city request).
Project #18, feasibility study has $30k grant
Project #24 is developer funded, model est. $600k, possible that an earlier project will solve this issue
Table 9-8 Water 10-Year CIP Funding Sources, 2020-2029 IF
CIP Funding Sources
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
New ERU's
50
50
50
50
50
50
50
50
50
50
Capital Facilities Charges
297,250
297,250
297,250
297,250
297,250
297,250
297,250
297,250
297,250
297,250
Grants
30,000
Developer Fund
0
5,244,000
8,189,000
730,000
Existing DWSRF Loa
853,698
2,752,602
Borrow for CIP
7,250,000
1,550,000
1,916,000
3,796,000
2,895,000
4,400,880
Reserves
64,326
625,675
483,500
-297,250
360,750
-263,000
-297,250
CIP Funded by Rates
438,424
1,169,750
1,174,750
1,171,2501
708,750
1,660,750
456,000
474,000
596,750
513,000
Total 10-Year CIP Fundin s
$1,653,698
$10,119,277
$8,722,000
$3 ar7 nnnl
030,745,000
$4,604,000
$4,252,000
$4,027,000
$631,000
$4,913,880
Colors attempt to indicate funding sources
Table 9-9 Estimated New Debt Annual Payments for CIP
New Debt for ClP
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
DWSRF 2022 (20 yr, 2.0%)
448,000
448,000
448,000
448,000
448,000
448,000
448,000
448,000
DWSRF 2024 (20 yr, 2.5%)
100,000
100,000
100,000
100,000
100,000
100,000
DWSRF 2025 (20 yr, 2.5%)
124,000
124,000
124,000
124,000
124,000
DWSRF 2026 (20 yr, 2.5%)
246,000
246,000
246,000
246,000
DWSRF 2027 (20 yr, 2.5%)
1 188,000
188,000
188,000
DWSRF 2029 (20 yr, 2.5%)
begin 2030
285,000
Total New Debt for CIP
i $0
$0
$448,000
$448,0001
$548,000
$672,000
$918,0001
$1,106,000
$1,106,000
$1,391,000
Estimated new debt payments -begin year after borrowing, DWSRF includes 1% loan fee
August 14, 2020
1-9 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
1.7 Ten Year Financial Plan
The 10-year financial plan was developed and discussed with Public Works, Finance and
Planning to support the recommend capital improvements. The base year is the adopted 2020
budget.
1.7.1 Key Assumptions
Several key assumptions were used in making the 10-year projections and are shown in Table
9-10. These include the number of new connection equivalent residential units (ERU's) per
year, cost escalation factors, the residential water capital facilities charge and the bimonthly
single family base rate.
Table 9-10 Key Financial Assum
tions
Assumptions:
Amount
New Customer ERU's per year
50
General Cost Escalation
3.0%
Construction Cost Escalation
4.0%
Water Capital Facilities Charge
$5,945
Single Family Base Rate 2-Months
$81.50
The financial outlook assumes the bimonthly water rate is held constant at $81.50 including
5,000 gallons for a single family residence to calculate the impact on existing water rates to
carry out the plan.
1.7.2 Ten -Year Outlook - Summary Growth Scenarios
The 10-year rate outlook for the water utility was developed with a conservative growth scenario
of 50 new ERU's per year. After reviewing the development activity in the planning and
permitting pipeline, several other growth scenarios were developed and discussed with Public
Works, Finance and Community Development. A second moderate growth scenario of 100 new
ERU's per year was determined achievable to provide a reasonable range for financial planning.
Of course, the actual level of growth will not be known ahead of time.
Summary 10-Year Outlook — Conservative Growth @ 50 ERU per year
For the conservative growth scenario of 50 new ERU per year, the 10-year rate outlook for
Water Fund 411 was developed. In order to fund the CIP with a combination of rates, water
capital reserves, capital facilities charges, development activity and borrowing, the current
residential bimonthly base rate of $81.50 would need to increase $29.00 in 2020 to $110.00 by
2029. This represents an increase of 35% over the planning period, or an average of 3.9% per
year. Table 9-11 shows the cumulative impact on rates needed to balance the Annual Increase/
(Use) of Reserves. The cumulative impact on rates refers to the percentage increase over the
current $81.50 base rate for 2-months needed to fund the CIP program and bring the top line to
zero. Caution, this is not the increase needed each year. The percentage rate impact is
assumed to be applied to all customer classes and water rates.
Table 9.11 Summary 10-Year Outlook - Conservative Growth @ 50 ERU per year
WATER UTILITY 10-YEAR OUTLOOK 2020 2021
2022
2023
2024
2025
2026
2027
2028
2029
Annual Increase) Use of Reserves 1 523,138
557,650
746,850
940,765
519,780
1,615,195
580,260
892,175
1,253,140
1,222,005
Percentage Impact on Rates - cumulative
17%
23%
28%
15%
48%
17%
26%
36%
35%
2-Month Base Rate - if Balanced 1 $81.50
$95.35
$99.91
$104.52
$94.13
$120.47
$95.40
$102.72
$111.10
$110.17
This conservative growth scenario with 50 new ERU per year requires a rate adjustment of 35% over the 10-year period, an average of 3.9% per year.
August 14, 2020 1-10 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
Summary 10-Year Outlook — Moderate Growth @ 100 ERU per year
For the moderate growth scenario of 100 new ERU per year, the 10-year rate outlook for Water
Fund 411 is summarized in Table 9-12. In order to fund the 10-year CIP with a combination of
rates, water capital reserves, capital facilities charges, development activity and borrowing, the
current residential bimonthly base rate of $81.50 would need to increase $22.00 in 2020 to
$105.00 by 2029. This represents an increase of 27% over the planning period, or an average
of 3.0% per year.
Table 9.12 Summary 10-Year Outlook -Moderate Growth @ 100 ERU peryear
WATER UTILITY 10-YEAR OUTLOOK 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Annual Increasel(Use) of Reserves 1 523,138
(236,400)
(400,600)
(569,515)
(123,530)
(1,193,945)
(431,260)
(718,175)
(1,054,140)
(998,005)
Percentage Impact on Rates - cumulative
7%
12%
17%
4%
34%
12%
20%
29%
27%
2-Month Base Rate - if Balanced 1 $81.50
$87.33
$91.23
$95.14
$84.42
$109.29
$91.40
$97.76
$105.04
$103.49
This moderate growth scenario with 100 new ERU per year requires a rate adjustment of 27% over the 10-year period, an average of 3.0% per year.
A reminder that annual averages are helpful for comparing scenarios, but the model indicates
that a larger increase is necessary in 2021 as debt payments on the DWSRF loan for Well 13
begin.
The City will manage the budget and improvements to fit as necessary and will consider rate
increases as needed to complete the recommended improvements to provide safe, reliable
water service to ratepayers for many years to come. The City plans to review rates following
submittal of this plan and may consider another multi -year rate schedule to provide consistency
to ratepayers as the current multi -year ordinance schedule runs out in 2020.
1.7.3 Water Fund 411 Revenue
The water revenue is based on the 2020 budget, including a conservative estimate for water
sales and growth. The current water rates are held constant to allow the model to calculate the
impact on existing rates in order to have a balanced program (yellow line equals zero). It is
assumed that 50 new residential customers using 7,000 gallons per bimonthly period are added
each year to the 2020 budgeted rate revenue. Other revenue is held flat throughout the 10-year
outlook. Additional new customers will positively impact the water bottom line and be available
to fund additional projects, or to borrow less.
1.7.4 Water Fund 411 Expenses
The operating expenses reflect 2020 budget and are generally projected to increase by cost
escalation as shown in Table 9-10. With the completion of the 580-Zone storage reservoir
project, the City will no longer need to purchase water from Bremerton. This shows up as a
reduction in the 2020 budget amount for Supplies — Source. In addition to operations, the
expenditures include estimated new loan payments for the existing DWSRF loan beginning
2021 and 3 annual contributions to the water rates stabilization fund 412.
After deducting the estimated water expense before CIP from the water revenue, the net income
available for capital is shown. The rate portion of the CIP and estimated new CIP debt are
included as expenses in 411.
The bottom yellow line shows the Annual (Use) of Water Reserves in every year between 2020
and 2029. For one year, this can be addressed by applying reserves. However, with multiple
on -going years, the model estimates the impact on rates to bring the yellow line (Increase/ (Use)
of Reserves) to zero. The City has the choice to address annual deficits by reducing expenses,
increasing rates and fees, and/or new customer growth exceeding expectations.
August 14, 2020 1-11 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
1.7.5 Detailed 10-Year Outlook
Table 9-13 provides the detailed 10-year outlook for the conservative growth scenario of 50 new
ERU's per year. Additional connections would provide additional funding for capital
improvements, and additional ratepayers to share in the operating costs and debt payments.
Table 9-13 Water 10-Year Financial Outlook -Conservative Growth@ 50 ERU per year
WATER UTILITY 10-YEAR OUTLOOK Bud et 2020 2021 2022 2023 2024 2025 2026 2027 2028 Comments
Operating Revenue
WaterSales- Residential
2,383,300
2,408,000
2,432,000
2,456,000
2,480,000
2,504,000
2,528,000
2,552,000
2,576,000
2,600,000
add new cust
Water Sales - Commercial
740,700
741,000
741,000
741,000
741,000
741,000
741,000
741,000
741,000
741,000
flat
WaterSales - Irrigation
132,800
133,000
133,000
133,000
133,000
133,000
133,000
133,000
133,000
133,000
flat
Construction Water Sales
8,800
8,800
8,800
8,800
8,800
8,800
8,800
8,800
8,800
8,800
flat
Other Fees - Connects
12,900
12,900
12,900
12,900
12,900
12,900
12,900
12,900
12,900
12,900
flat
Water Inspection Fees
6,700
6,700
6,700
6,700
6,700
6,700
6,700
6,700
6,700
6,700
flat
Plan Review Fees
1,700
1,700
1,700
1,700
1,700
1,700
1,7
1,700
1,700
1,700
flat
Other Planning & Development Svcs
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
flat
Interest
8,600
8,600
8,600
8,600
8,600
8,600
8,600
8,600
8,600
8,600
flat
Rents & Leases
56,500
56,500
56,500
56,500
56,500
56,500
56,500
56,500
56,500
56,500
flat
Misc sur lus,misc,refund,ins recov
-
-
-
-
-
-
-
flat
Subtotal W Revenue
3,353,200
3,378,400
3,402,400
3,426,400
3,450,400
3,474,400
3,498,400
3,522,400
3,546,400
3,570,400
Expenses
Salaries & Benefits -Water Admin
962,800
991,700
1,021,500
1,052,100
1,083,700
' 1,116,200
1,149,700
1,184,200
1,219,700
1,256,300
b en'I escal.
Supplies - Administration
5,200
5,400
5,600
5,800
6,000
6,200
6,400
6,600
6,800
7,000
by gen'l escal.
SeMces- Administration
293,045
301,800
310,900
320,200
329,800
339,700
349,900
360,40
71,200
382,300
by gen'lescal.
Intergovernmental Services & P
282,800
291,300
300,000
309,000
N18,300
327,800
337,600
347,700
0
368,800
bv Qen'l escal.
Supplies - Distribution
57,050
58,800
60,600
62,400
64,300
66,200
OW,200
70,200
74,500
by gen'l escal.
Services- Distribution
30,950
31,900
32,900
33,900
34,900
35,900
37,000
38,100
39,200
40,400
b en'I escal.
Supplies - Source reduce Brem W urc
285,000
285,000
347,000
357,400
368,100
379,100
390,500
402,200
114,300
426,700
by gen'l escal.
Services - Source
116,000
119,500
123,100
126,800
130,600
134,500
138,500
142,700
147,000
151,400
by gen'lescal.
Supplies - Storage
300
300
300
300
300
300
300
300
300
b en'I escal.
Services - Storage
6,000
6,200
6,400
6,600
6,800
7,00
7,200
7,400
7,600
7,800
by gen'l escal.
Transfer -500ER&RO&WRe lacement
62,493
64,400
66,300
68,300
70,300
72,400
74,600
76,800
79,100
81,500
b en'lescal.
Subtotal Operations
2,101,638
2,156,300
2,274,600
2,342,800
2,413,100
2,485,300
2,559,900
2,636,600
2,715,600
2,797,000
E)dsting DWSRF Loan- Well 13
320,000
409,900
405,115
400,330
395,545
390,760
385,975
381,190
376,405
estimate, int. on 2021
Transfer to Water Stabilization 412
290,000
290,000
290,000
20-22 per reserve poli
Subtotal W Expense Before CIP
2,391,638
2,766,300
2,974,500
2,747,915
2,813,430
2,880,845
2,950,660
3, ,575
3,096,790
3,173,405
Net Income Available For Capital
961,562
6IZ100
427,900
678,485
636,970
593,555
547,740
499,825
449,610
396,995
Water CIP Funded by Rates
438,424
1,169,750
1,174,750
1,171,250
708,750
1,660,750
456,000
474,000
596,750
513,000
see CIP20
New Debt for CIP
-
-
-
448,000
448,000
548,000
672,000
918,000
1,106,000
1,106,000
see CIP20
Subtotal CIP Programl
438,424
1,169,750
1,174,750
1,619,250
1,156,750
2,208,750
1,128,000
1,392,000
1,702,750
1,619,000
AnnuallncreaselUse of Reserves
1 523,138
557,650
746,850
9401765
519,780
1,615,195
580,260
892,175
1,253,140
1,222,005
Percentage Impact on W Rates - cumulative
17%
23%
28%
15%
48%
17%
26%
36%
35%
over existing rates
2-Month Single Family Base Rate - if B $81.50
$95.35
$99.91
$104.52
$94.13
$120.47
$95.40
$102.72
$111.
$110.17
Avers e Residence 7,000 gallons -if B $88.80
$103.89
$108.86
$113.89
$102.56
$131.26
$103.95
$111.92
$121.05
$1210
0.04
1.7.6 Water Fund 411 Balance and Cash Flow Reserve
The 2020 beginning balance is based on the utility's actual year end 2019 balance. The model
transfers $1 million for CIP funding to water capital reserve 413, along with $200,000 that has
been collected from rates for upsizing contributions. A second transfer is assumed to fund the
required debt reserve for the DWSRF loan of $410,000 for one year's principal and interest
payment. After the ending balance is estimated, a target minimum balance is tested. The target
minimum cash flow reserve of 90 days of operating expense is set aside within the fund
balance. The remainder of the funds are available to water.
Table 9.14 Water Fund 411 Balance and Cash Flow Reserve
WATER OPERATING FUND 411 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Comments
Beginning Fund Balance
2,206,979
1,120,217 11,120,217 11,120,217 11,120,217 1,120,217
1,120,217
1,120,217
1 1,120,217
1,120,217
12019actual year end
Transfer to Capital Reserve 413 for CIP
1,200,000
includes $200k collected from rates for u sizin contributions
Transfer to Debt 414 for Debt Reserve
409,900
Annual Incrl(Use) of Reserves
523,138
If rates are adjusted to balance the yellow line, then the reserves should remain.
Ending Fund Balance
1,120,217
1,120,217
1,120,217
1,120,217
1,120,217
1,120,217
1,120,217
1,120,217
1,120,217
1,120,217
Target Minimum Balance
Cash Flow Reserve - 3 months operation 1
525,000
539,000
569,000
586,000
603,000
621,000
640,000
659,000
679,000
1 699,000
90 days operating a)Pense
Available Balance
595,217
581,217
551,217
534,217
517,217
499,217
480,217
461,217
441,217
1 421,217
Ifor future investment
August 14, 2020
1-12 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
1.7.7 Water Capital Reserve 413 Outlook
The water capital reserve revenue is based on the actual 2019 ending balance. The model
assumes this fund collects revenue for future system improvements for several sources,
including the one-time transfer in from 411 described above, water capital facilities charges for
conservative growth at 50 ERU's per year, a grant for the feasibility study, developer funded
projects, existing DWSRF loan proceeds, new borrowing for CIP and an annual transfer from
Water Fund 411 for the rate -funded portion to complete the CIP. The projects funded are then
shown in the Water CIP Program line as the funds are expended. An existing note to
McCormick Woods has an annual payment of $50,000 and is transferred to the debt fund 414 to
make payment.
Table 9-15 Water Capital Reserve Fund 413 Balance and Cash Flow Reserve
WATER CAPITAL RESERVE FUND 413
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029 Comments
Resources
Beginning Fund Balance
2,364,572
3,450,246
2,774,571
2,724,571
2,191,071
2,141,071
2,091,071
2,338,321
1,927,571
2,140,571
2019 actual year end
Transfer from 411 for CIP (one time)
1,200,000
Capital Facilities Charges
297,250
297,250
297,250
297,250
297,250
297,250
297,250
297,250
297,250
297,250
Grants
0
30,000
0
0
0
0
0
0
0
0
Developer Funded
0
5,244,000
0
0
8,189,000
730,000
0
0
0
0
Epsting DWSRF Loan Proceeds
853,698
2,752,602
0
0
0
0
0
0
0
0
Borrow for CIP
0
0
7,250,000
0
1,550,000
1,916,000
3,796,000
2,895,000
0
4,400,880
Transfer In (411)- CIP Funded by Rates
438,424
1,169,750
1,174,750
1,171,250
708,750
1,660,750
456,000
474,000
596,750
513,000
Subtotal Capital Resources
5,153,944
12,943,848
11,496,571
4,193,071
12,936,071
6,745,071
6,640,321
6,004,571
2,821,571
7,351,701
Expense
W CIP Program
1,653,698
10,119,277
8,722,000
1,952,000
10,745,000
4,604,000
4,252,000
4,027,000
631,000
4,913,880
Transfer Out (414) - McCW Note
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
Subtotal Capital Expense
1,703,698
10,169,277
8,772,000
2,002,000
10,795,000
4,654,000
4,302,000
4,077,000
681,000
4,963,880
Estimated Ending Capital Balance
3,450,246
2,774,571
2,724,571
2,191,071
2,141,071
2,091,071
2,338,321
1,927,571
2,140,571
2,387,821
Target Minimum Balance
Emergency Reserve
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
Available for Future Improvements
2,950,246
2,274,571
2,224,571
1,691,071
1,641,071
1,591,071
1,838,321
1,427,571
1,640,571
1,887,821
After accounting for the revenue sources and spending on the CIP, the ending balance is
estimated. The target minimum balance includes an emergency reserve of $500,000. The
remainder is available for future improvements and system replacement.
Table 9-15 is based on the conservative growth scenario. If additional new connections are
made, the City will be in a better position to fund necessary CIP.
1.8 Financial Conclusion
There are not sufficient funds available at the existing water rates to pay for the recommended
10-year capital improvements. The CIP list has been prioritized and planned for annual
investment in system repair/replacement/improvement to continue to provide safe, reliable water
service for future generations. The goal is to do so in an affordable manner with annual
investment funded by water rates, development contributions and capital facilities charges from
new connections. Of course, the City will seek grants to assist where appropriate.
The financial model estimates the impact on residential monthly water rates to complete the 10-
year CIP. The model assumes that all water rates would be impacted on a similar percentage
basis. The impacts are summarized as follows:
• Conservative Growth Scenario @ 50 ERU per year - In order to fund the 10-year CIP
with a combination of rates, water capital reserves, capital facilities charges,
development activity and borrowing, the current residential bimonthly base rate of
$81.50 would need to increase $29.00 in 2020 to $110.00 by 2029. This represents an
increase of 35% over the planning period, or an average of 3.9% per year.
• Moderate Growth Scenario @ 100 ERU per year - In order to fund the 10-year CIP
with a combination of rates, water capital reserves, capital facilities charges,
development activity and borrowing, the current residential bimonthly base rate of
August 14, 2020 1-13 BHC Consultants, LLC
City of Port Orchard
2020 Water System Plan
$81.50 would need to increase $22.00 in 2020 to $105.00 by 2029. This represents an
increase of 27% over the planning period, or an average of 3.0% per year.
A reminder that annual averages are helpful for comparing scenarios, but the model indicates
that a larger increase is necessary in 2021 as debt payments on the DWSRF loan for Well 13
begin.
The City will manage the budget and improvements to fit as necessary and will consider rate
increases as needed to complete the recommended improvements to provide safe, reliable
water service to ratepayers for many years to come. The City plans to review rates and charges
following submittal of this draft plan to be sure they are recovering the necessary costs in a fair
and equitable manner. They may consider another multi -year rate schedule to provide
consistency to ratepayers as the current multi -year ordinance schedule runs out in 2020.
August 14, 2020 1-14 BHC Consultants, LLC
Ow. von OrcnaNwale.5nlen'Floam�ai via.
vreparea 5vx Isvksen a as —1, Used far -ft Chapter 9, 9I29I20
Tables are arranged down and b Iha right to allow Mr easy edits
Table 9d Current Wa[er Ra[ea
WaNr Rana-BlmonrM1l
Base•Warei
YO10
$53.50
3IJ' Meler, 3.00105,000 a
.1.50
s
nra100
1.1�i00006.
365
$3.65
W
OS
$4.30
r1W
60
Table 8.6 R<sld<ntlal Water R-
tom arison
2020
Resld<ntlal Wafer Service
villa
],000
gallons
Per Monlh
9.11...
Port GfeheM
Sa8..
W.
Giq H-11
W—
$3.2.60
Nitsa —
W..
32 14
West S.—UD
$56.32
$28.16
Bremerbn
$53.29
$26.64
Po0I66o
$52.]6
$26.38
Bainbritl9s Island
$35.48
$1.74
Table 9.11 Somma 10-Year Outlook -Conservative Growth SO ER er
asellUsel of Raservas 523136 1650 ]46650 940 ]65 9j. 560260 6921]s
Monty 9au Rate-i191alanutl Ne E61.50 E95'J5 E99.91 5104.3 $94.13 $120.47$95A0 $102.3 $111.101 $110.1 Sxe s�
0000000000.
��0000000000�
Table 945—Ca "" Receive Fantl 613 Balance antl Cacti Flow RA..
CA I —RESERVE FUND 2020 2- 2022 2023 2024 2025 2026 2022 2028 2029 Commenm
WppMW NpIRYIRY% kNkckck kNkckck kNkckY% Np%p%p%p NpIRYIRY% NpIRYIRY% Np%p%p%p Np%p%ppp 2019 actual year enU
IP (one bme)
Capital Fe I ties Cbeges 297 250 297 250 297 250 29� 250 29� 250 29� 250 290,250 290,250 290,250 290,250
Footled 0 5.2M,000 0 111 035000 0 0 0 0
sen9 DW SRF Loan Proceetls 853 2 205
br CIP 890 �0 0,250,000 D 1.—,000 1,915000 3.-,.O 2.895,090 0 4.i00,880
In 16111-CIP F.— by Ra12
u EDiaIRewu l P 5,153,9 4,193.001 6,6i<S.Oi1i5o 6,660.921 6,000.501 1.821.501 7.-1 01
Expanse l
W CIF Program ,653,698 AFAFAFAk 8.022,000 1,952,000 AFAFAF!% 4,60a,000 6,252,ODD 6,020,000 631,OD0 4,913,880
Out laial-MCCW Noce
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ORCHARD
2020
STORMWATER
PROGRAM
STATUS REPORT
Zack Holt, Stormwater Program Manager
Overview
a Highlights of New Permit Requirements
* NPDES Permit Activities in 2020
• Infrastructure Status and Comprehensive Planning
• Capital Improvement Program Status
• Looking Ahead Through 2025
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2019 Permo�t H,�gh O�ghts
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Summary of Additional Requirements in 2019
Permit
• Evaluate/update construction site runoff ordinance/code — due Dec. 31, 2020
• Evaluate LID code sections to identify if there are deficiencies — due Dec. 31, 2020
• 2013-2018 permit cycle - WQ/Watershed Protection Assessment — due March 31, 2021
• Receiving water assessment — due March 31, 2022
• Receiving water prioritization — due June 30, 2022
• Implement a program to manage, inspect and enforce local business/private property
opution management — due Aug. 1 2022
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• 2019-2024 permit cycle - WQ/Watershed Protection Assessment — due January 1, 2023
• Stormwater Management Action Plan for Blackjack Creek — due March 31, 2023
• Map all private stormwater interties to City MS4 — due Aug. 1, 2023
ORCHARD
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Operations and Maintenance
• 952 catch basins inspected and
maintained
• 28 ponds and swales inspected,
16 required maintenance
• 324 feet of ditch maintained
• Over 1100 feet of pipe jetted
LORCHARD
Construction
Inspection Program
• 554 site inspections conducted as of
September 2020:
• 101 Land Disturbing Activity related
• 453 Utility/erosion related
• Drone program has significantly increased
efficiency with inspection, reporting and
enforcement
• Of 136 permitted active development projects
in 2020:
• 15 Land Disturbing Activity Permits
• 121 Building/Utility Permits
Onlv 2 have had compliance issues in 2020
LORCHARD
Illicit Connection
Investigation/IDDE/ Spil
Response Program
• Currently in compliance for 2020 with our
outfall and illicit connection screening
program requirements
• Continued staff training for Illicit
Discharge Detection and Elimination
(IDDE) program
• Quickly located and managed local and
multi -jurisdictional spill response efforts
• So far, less than 35 combined reports
have been filed in 2020
• We will be upgrading to the new IC/IDDE
Manual in 2021
LORCHARD
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Public Outreach, Education,
Stormwater Policy and
Reporting
• Continued informing the public of our
activities and operations, allowing ample
opportunity for comments and feedback
• Maintain our position with the West
Sound Stormwater Outreach Group
(WSSOG) for education and outreach
purposes
• Continue work with regional policy groups
(Stormwater Work Group, Local
Jurisdiction Caucus, WSPER, etc.) to
advocate for City benefit
• Continue refining and improving our
Stormwater Management Program to
incorporate new mandates and updates to
procedure
Public Works Department
Puget Sound Starts Here
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nfrastructure Status and
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State of the Utility —
Appurtenances and
structures
The state of our storm MS4 is... Improving.
We have clear guidelines from Ecology on what needs to be done each
year for our inspection and cleaning of catch basins, pipes and
structures. Ecology bases maintenance and repair needs on the
following criteria:
1. Fix a Catch basin that is broken or damaged within six months of
inspection
2. Fix a facility within 1 year of inspection
3. If maintenance costs exceed $25,000 for a facility or system (capital
construction), the fix must be conducted within 2 years of
inspection.
State of the Utility -
Surface Water
Management
• Maintenance activities are
often required for non-
stormwater infrastructure
related projects that affect
surface waters and
shorelines
• In 2020 the City repaired
storm related failures along:
• Bay Street pedestrian pathway
• McCormick Village Park @
Bridge
• Horstman Heights @
intersection of Henry Hanson
Rd.
Before repair...
After repair...
ORCHARD
State of the Utility —
Dam Safety Program
McCormick Ridge Dam was inherited by annexation in 2009
from Kitsap County
Bremerton has developed downstream of the dam
requiring us to revise our Emergency Action Plan and re-
evaluate the dam for resiliency
Our consultant team is nearly finished with this task. Work
will be completed by mid December 2020.
LORCHARD
Stormwater
Comprehensive
Planning
• Currently out for contract to hire
consultant team to develop Stormwater
and Watersheds Comprehensive Plan in
2021.
• Plan will be tailored to meet the
requirements of the NPDES permit and to
incorporate retrofit plans for aging
infrastructure, surface water
management, financial planning, new
development and utility/asset
management
LORCHARD
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Current Capital
Activities in 2019-2020
Biennium
0 Tremont Stormwater Improvements
Downtown Stormwater Basin Study
Annapolis Creek Culvert, 30% Design
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ORCHARD
Future Capita
Activities
• South Sidney Regional Stormwater Park (pending
grant funding for design in 2022)
• Annapolis Creek 100% Design (pending grant
funding from RCO in 2021)
• Johnson Creek Daylighting Project (in design via
WSDOT & City)
• Ruby Creek Culvert Removal at Sidney Rd.
Crossing (pending grant funding from RCO in
2021)
• Bethel corridor acquisitions (commencing in
20211 funded by Storm Capital dollars)
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LORCHARD
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Upcoming
Infrastructure Needs
• Upon assessment via Storm Comp Plan we will be prioritizing infrastructure retrofits
and water quality improvements throughout the City, informing future CIP process
Goals include integrated stormwater management systems that promote citizen
interaction with treatment/management practices (walking storm treatment parks,
informative/interactive systems, etc.) -
• Mapping and prioritizing watersheds and streams within City jurisdiction for
hi protection/enhancement
• Incorporating shoreline management practices into stormwater and watersheds
program
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Questions?