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HomeMy WebLinkAbout07-10-2023 City Council Study SessionCity Council Study Session Finance, Technology and Economic Dev elopment Special Focus Area J uly 10, 2023 - 5:30 P M City Hall Council Chambers A GE NDA Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C A L L TO O R D E R I I .P UB L I C PA RT I C I PAT I O N A .P ublic P articipation The A uburn City Council Study Session Meeting scheduled for Monday, J uly 10, 2023 at 5:30 p.m. will be held in person and virtually. Virtual Participation L ink: To view the meeting virtually please click the below link, or call into the meeting at the phone number listed below. The link to the Virtual Meeting is: https://www.youtube.com/user/watchauburn/live/?nomobile=1 To listen to the meeting by phone or Zoom, please call the below number or click the link: Telephone: 253 205 0468 Toll F ree: 888 475 4499 Zoom: https://us06web.zoom.us/j/85712628802 B .Roll Call I I I .A G E ND A MO D I F I C AT I O NS I V.A NNO UNC E ME NT S , R E P O RT S , A ND P R E S E NTAT I O NS V.A G E ND A I T E MS F O R C O UNC I L D I S C US S I O N A .Ordinance No. 6911 (Thomas) (20 Minutes) A n Ordinance amending Ordinance No. 6879, the 2023-2024 B iennial Operating B udget Ordinance, and Ordinance No. 6888, the 2023-2024 Biennial Capital Budget, authorizing amendment to the City of Auburn 2023-2024 B udget as set forth in schedule “A” and schedule “B ” B .2023 National Night Out Presentation (Tate) (15 Minutes) A n update on Auburn’s 2023 National Night Out event Page 1 of 156 C.Water S ystem Comprehensive P lan Update - Policy Review (Gaub) (30 Minutes) D.I nclusive Auburn Coalition P resentation (Goodson-Moore) (20 Minutes) V I .F I NA NC E, T E C HNO L O G Y A ND E C O NO MI C D E V E L O P ME NT D I S C US S I O N I T E MS A .Ordinance No. 6912 (T homas) (10 Minutes) A n Ordinance amending S ection 13.06.360 of the A uburn City Code (A C C), relating to City Utility Rates B .E conomic Development Update – 2nd Quarter 2023 (Tate) (15 Minutes) A n update on E conomic Development Division activity V I I .A D J O UR NME NT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. Page 2 of 156 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6911 (Thomas) (20 Minutes) Date: June 5, 2023 Department: Finance Attachments: Ordinance No. 6911 BA #2 Interoffice Memo Ordinance No. 6911 2023-2024 Budget Amendment No. 2 BA #2 Schedule A BA #2 Schedule B BA #2 Pres entation Budget Impact: Current Budget: $481,653,642.00 Proposed Revision: $12,359,913.00 Revised Budget: $494,013,555.00 Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: Ordinance No. 6911 (Budget Amendment #2) represents the second budget amendment for the 2023-2024 biennium. The second budget amendment of the biennium consists of adjustments to budgeted beginning fund balances, new expenditures offset by new revenues, and limited requests for new budget authority. For details, see that attached transmittal memorandum and supporting materials. Rev iewed by Council Committees: Councilmember:Baldwin Staff:Thomas Meeting Date:July 10, 2023 Item Number: Page 3 of 156 Interoffice Memorandum To: City Council From: Jamie Thomas, Finance Director CC: Nancy Backus, Mayor Date: July 3, 2023 Re: Ordinance #6911 – 2023-2024 Budget Amendment #2 Budget Amendment #2 is the second amendment of the City of Auburn’s 2023-2024 biennial budget, and the second budget amendment for calendar year 2023. For details on specific requests to amend the 2023 budget, please refer to the accompanying Schedule A, Summary of 2023 Budget Adjustments by Fund. The main purpose of the second budget amendment of the year is to adjust budgeted 2023 beginning fund balances to match 2022 ending fund balances per accounting records at year end. City-wide 2023 budgeted beginning fund balances are adjusted by a net increase of $0.9 million. Additional items included in this amendment are a conversion of one part-time FTE to full-time, closure of the BIA Fund, acceptance and expenditure of new grants, funding adjustments, limited new fund costs not anticipated in the 2023 budget, and transfer dollars among funds to enable certain amendments. Adjust Budgeted Beginning Fund Balance: This amendment adjusts 2023 budgeted beginning fund balances to be equal to 2022 ending fund balances. Total adjustments by fund type are: • General Fund (Fund 001) $ 6,294,923 • Special Revenue Funds 398,519 • Debt Service Funds -202,529 • Capital Funds -2,545,105 • Enterprise Funds -3,251,870 • Other Funds 218,961 TOTAL $ 912,899 FTE Conversion: The Administration Department requests to reclassify one Multimedia Assistant position from 0.75 FTE to 1.0 FTE. The department has agreed to permanently reduce budget in other areas in order to fund this position, creating a net-zero impact to operating expenditures. The request is presented here for transparency and approval. Page 4 of 156 BIA Fund: The Business Improvement Area Fund was originally scheduled to be spent down and closed in 2024, with its activity moving to the General Fund. This timeline has been accelerated, and the fund will now be closed in 2023. This amendment requests an additional $45,941 in budget authority in order to spend down the BIA Fund’s remaining balance. Grants: New grants and grant adjustments in this budget amendment total $4,429,360 in revenues and $4,930,516 in associated expenditures, including: • General Fund (Fund 001) $ 30,200 • Arterial Street Fund (Fund 102) 560,000 • Arterial Street Preservation Fund (Fund 105)1 1,284,356 • Municipal Park Construction Fund (Fund 321) 50,000 • Capital Improvement Projects Fund (Fund 328)2 1,104,610 • Local Revitalization Fund (Fund 330) 1,598,650 • Storm Drainage Capital Fund (Fund 462)3 302,700 TOTAL $ 4,930,516 Funding Adjustments: Funding adjustment requests included in this budget amendment revise the revenue or expenditure authority for existing programs. Total expenditure funding adjustment requests net to $1,995,945, and include: • Increase budget for M&O Facility Improvements (upgrade electrical service and add light duty maintenance bays) $ 866,000 • Increase budget for C Street SW Preservation4 838,465 • Adjust fleet budget for prior year expenses 332,980 Carry forward water rights mitigation plan 230,000 • M&O Fuel Island Replacement 175,300 • Contribution of Affordable Housing Tax revenue to SKHHP 152,900 • Flock safety cameras and software for Police Department5 150,000 • Reallocate funding from Dykstra Footbridge to Arts & Culture Center6 100,000 • Increase budget for D Street SE/23rd Street SE Storm Improvements7 0 • Reschedule R Street SE Widening Project to future years (830,000) • Net other adjustments in this category (19,700) TOTAL $ 1,995,945 1 Includes Lea Hill Roundabout Project WSDOT grant and matching funds accelerated from 2024 to 2023. 2 Includes Lea Hill Safe Routes to Schools grant and matching funds accelerated from 2024 to 2023. 3 Includes unanticipated TIB grant for cp2102 4th Street Preservation. 4 This expenditure increase is mitigated by $288,465 in expected revenue from a pavement mitigation agreement with Icon Materials, lowering the net fund balance impact to $550,000. 5 This is a reallocation of funding from the ARPA-mitigated Cameras for Qualified Census Tracts project. This increase to the IT Operations Fund budget has an accompanying reduction in expense in the IT Capital Projects Fund. 6 This is a reallocation of funding from the ARPA-mitigated Dykstra Footbridge project. This increase to the Capital Improvements Fund budget has an accompanying reduction in expense in the Municipal Park Construction Fund. 7 This increase is offset by unanticipated grant revenue received for the 4 th Street preservation project, so has a net zero impact on expenditures. The $302,700 increase is presented in the Grants section. It is included here for transparency. Page 5 of 156 New Funding Requests: Requests for new funding included in this budget amendment add spending authority for new programs and unexpected expenditures. Total new funding requests equal $903,1008, and include: • SKHHP and Habitat for Humanity affordable homeownership project $ 300,000 • Utilize insurance recovery fund Auburn Avenue Theater rebuild 228,200 • Use of drug seizure funds to improve Auburn PD range 70,000 • Utilize insurance recovery to fund replacement of public art stolen from Centennial Park 55,900 • National Opioid Settlement funding 52,000 • 2024 Comprehensive Transportation Plan update 50,000 • Police supernumerary position fully reimbursed by Criminal Justice Training Center9 0 TOTAL $ 756,100 Transfers: Transfers between funds to accomplish specific budget amendment requests total $4,859,180. The following table summarizes the current and revised budget as a result of this amendment. Table 1: 2023 Budget as Amended 2023 Amended Budget $ 481,653,642 Budget Amendment #2 (Ord #6911) 12,359,913 Budget as Amended $494,013,555 Attachments: ❖ 1. Proposed Ordinance #6911 (budget adjustment #2) ❖ 2. Summary of proposed 2023 budget adjustments by fund and department (Schedule A) ❖ 3. Summary of proposed changes to adopted 2023 budget by fund (Schedule B) 8 The SKHHP homeownership project is recognized as a $300,000 expense in both the General Fund and SKHHP agency Fund for accounting purposes, but is only presented here once. 9 Funding for one Officer to be assigned to CJTC for a 3 -year duration. The reimbursement received for the Officer’s costs will be used to fund a supernumerary position to backfill the Officer assigne d to CJTC. No additional expenditure authority is authorized by this amendment, as supernumerary positions are not budgeted. Page 6 of 156 ------------------------- Ordinance No. 6911 June 28, 2023 Page 1 of 3 ORDINANCE NO. 6911 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AMENDING ORDINANCE NO. 6879, THE 2023-2024 BIENNIAL OPERATING BUDGET ORDINANCE, AND ORDINANCE NO. 6888, THE 2023-2024 BIENNIAL CAPITAL BUDET, AUTHORIZING AMENDMENT TO THE CITY OF AUBURN 2023-2024 BUDGET AS SET FORTH IN SCHEDULE “A” AND SCHEDULE “B” WHEREAS, the Auburn City Council at its regular meeting of November 21, 2022, adopted Ordinances No. 6879 and 6888 which adopted the City of Auburn 2023-2024 Biennial budget; and WHEREAS, the Auburn City Council at its regular meeting of April 14, 2023, adopted Ordinance No. 6900 (BA#1), which amended Ordinances No. 6879 and 6888 which adopted the City of Auburn 2023-2024 biennial budget; and WHEREAS, the City of Auburn deems it necessary to appropriate additional funds to the various funds of the 2023 budget as outlined in this Ordinance (BA#2); and WHEREAS, this Ordinance has been approved by one more than the majority of all councilpersons in accordance with RCW 35A.34.200. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Amendment of the 2023-2024 Biennial Budget. The 2023- 2024 Biennial Budget of the City of Auburn is amended pursuant to Chapter 35A.34 RCW, to reflect the revenues and expenditures as shown on Schedule “A” attached hereto and incorporated herein by reference. The Mayor of the City of Auburn, Page 7 of 156 ------------------------- Ordinance No. 6911 June 28, 2023 Page 2 of 3 Washington is hereby authorized to utilize revenue and expenditure amounts shown on said Schedule “A” and Schedule “B”. A copy of said Schedule “A” and Schedule “B” is on file with the City Clerk and available for public inspection. Section 2. Implementation. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Section 3. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application of it to any person or circumstance, will not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 4. Effective date. This Ordinance will take effect and be in force five days from and after its passage, approval, and publication as provided by law. INTRODUCED: PASSED: APPROVED: ____________________________ NANCY BACKUS, MAYOR ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ Shawn Campbell, MMC, City Clerk Kendra Comeau, City Attorney Page 8 of 156 ------------------------- Ordinance No. 6911 June 28, 2023 Page 3 of 3 Published: ___________________ Page 9 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No General Fund (#001) 2023 Adopted Budget 16,428,633 91,190,426 98,143,349 9,475,710 Previous Budget Amendments 2,424,406 3,632,518 6,163,074 (106,150) 2023 Amended Budget 18,853,039 94,822,944 104,306,423 9,369,560 BA#2 (Ordinance #6911, Proposed):6,294,923 2,658,100 2,791,100 6,161,923 Administration: EMPG ARPA Funds - 15,200 15,200 - OT 001-01 Human Resources: HR Safety App/Dashboard - - 50,000 (50,000) OT 001-02 City Attorney's Office: National Opioid Settlement - 52,000 52,000 - OT 001-03 Community Development: SKHHP Habitat for Humanity Project - 300,000 300,000 - OG 001-04 SKHHP Affordable Housing Tax Revenue - - 152,900 (152,900) OG 001-05 Police Department: Move Vehicle Equipment Budget to PD - 58,000 58,000 - OT 001-06 Supernumerary position for Academy TAC Officer - 147,000 - 147,000 OG 001-12 Public Works Department: 2024 Comprehensive Transportation Plan - - 50,000 (50,000) OT 001-07 Parks Department: King County Grant - Recreation - 15,000 15,000 - OT 001-08 Public Art Replacement - 55,900 55,900 - OT 001-09 Non Departmental: Adjust Beginning Balances 6,294,923 - - 6,294,923 OT 001-10 Reclassify F106 Transfers - 2,015,000 2,015,000 - OT 001-11 Flock Safety Cameras - - - - OG 001-13 Cp1612 - Auburn Arts & Culture Ctr. Renovation - - - - OT 001-14 Equipment Rental Capital Reimbursements - - 27,100 (27,100) OT 001-15 Revised 2023 Budget - Fund 001 25,147,962 97,481,044 107,097,523 15,531,483 Page 1 of 13 7/5/2023 12:54 PMPage 10 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Arterial Street Fund (#102) 2023 Adopted Budget 965,783 9,085,192 9,360,894 690,081 Previous Budget Amendments 898,237 6,459,803 7,358,040 - 2023 Amended Budget 1,864,020 15,544,995 16,718,934 690,081 BA#2 (Ordinance #6911, Proposed):486,136 (245,100) (205,000) 446,036 Adjust Beginning Balances 486,136 - - 486,136 102-01 F St SE Non-Motorized Imp.- - 65,000 (65,000) 102-02 R St SE/29th St SE Imp. - cp2116 - (830,000) (830,000) - 102-03 2022 Arterial Ped & Bike Safety - 24,900 - 24,900 102-04 R St SE/ 21st St SE Roundabout - - - - 102-05 Lea Hill Rd/104th Ave SE Imp.- 560,000 560,000 - 102-06 Revised 2023 Budget - Fund 102 2,350,156 15,299,895 16,513,934 1,136,117 Local Street Fund (#103) 2023 Adopted Budget 1,932,689 2,598,000 2,036,300 2,494,389 Previous Budget Amendments 937,353 1,261,108 2,195,661 2,800 2023 Amended Budget 2,870,042 3,859,108 4,231,961 2,497,189 BA#2 (Ordinance #6911, Proposed):493,454 - - 493,454 Adjust Beginning Balances 493,454 - - 493,454 OT 103-01 Reclassify F106 Transfers - - - - OT 103-02 Revised 2023 Budget - Fund 103 3,363,496 3,859,108 4,231,961 2,990,643 Hotel/Motel Tax Fund (#104) 2023 Adopted Budget 480,179 143,900 177,100 446,979 Previous Budget Amendments - - 8,000 (8,000) 2023 Amended Budget 480,179 143,900 185,100 438,979 BA#2 (Ordinance #6911, Proposed):(15,880) - - (15,880) Adjust Beginning Balances (15,880) - - (15,880) OT 104-01 Revised 2023 Budget - Fund 104 464,299 143,900 185,100 423,099 Page 2 of 13 7/5/2023 12:54 PMPage 11 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Arterial Street Preservation Fund (#105) 2023 Adopted Budget 2,699,358 4,041,772 4,100,000 2,641,130 Previous Budget Amendments 1,950,254 763,876 2,714,130 - 2023 Amended Budget 4,649,612 4,805,648 6,814,130 2,641,130 BA#2 (Ordinance #6911, Proposed):(611,342) 1,038,465 2,122,821 (1,695,698) Adjust Beginning Balances (611,342) - - (611,342) OT 105-01 C Street SW Preservation - 288,465 838,465 (550,000) OT 105-02 Lake Tapps Pkwy/Sumner Hwy - 750,000 1,284,356 (534,356) OT 105-03 Revised 2023 Budget - Fund 105 4,038,270 5,844,113 8,936,951 945,432 American Rescue Plan Act Fund Fund (#106) 2023 Adopted Budget - 4,030,000 4,030,000 - Previous Budget Amendments - 3,057,286 3,057,286 - 2023 Amended Budget - 7,087,286 7,087,286 - BA#2 (Ordinance #6911, Proposed):- - - - Reclassify F106 Transfers - - - - OT 106-01 Revised 2023 Budget - Fund 106 - 7,087,286 7,087,286 - Drug Forfeiture Fund (#117) 2023 Adopted Budget 857,236 148,000 392,671 612,565 Previous Budget Amendments - - - - 2023 Amended Budget 857,236 148,000 392,671 612,565 BA#2 (Ordinance #6911, Proposed):279,779 - 70,000 209,779 Adjust Beginning Balances 279,779 - - 279,779 OT 117-01 Range Improvements - - 70,000 (70,000) OT 117-02 Revised 2023 Budget - Fund 117 1,137,015 148,000 462,671 822,344 Housing & Comm Develop Fund (#119) 2023 Adopted Budget 42,842 650,000 650,000 42,842 Previous Budget Amendments - 366,330 366,330 - 2023 Amended Budget 42,842 1,016,330 1,016,330 42,842 BA#2 (Ordinance #6911, Proposed):62 - - 62 Adjust Beginning Balances 62 - - 62 OT 119-01 Revised 2023 Budget - Fund 119 42,904 1,016,330 1,016,330 42,904 Page 3 of 13 7/5/2023 12:54 PMPage 12 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Recreation Trails Fund (#120) 2023 Adopted Budget 95,845 7,100 - 102,945 Previous Budget Amendments - - 66,210 (66,210) 2023 Amended Budget 95,845 7,100 66,210 36,735 BA#2 (Ordinance #6911, Proposed):1,324 - - 1,324 Adjust Beginning Balances 1,324 - - 1,324 OT 120-01 Revised 2023 Budget - Fund 120 97,169 7,100 66,210 38,059 BIA Fund (#121) 2023 Adopted Budget 97,502 - 90,000 7,502 Previous Budget Amendments - - - - 2023 Amended Budget 97,502 - 90,000 7,502 BA#2 (Ordinance #6911, Proposed):38,439 - 45,941 (7,502) Adjust Beginning Balances 38,439 - - 38,439 OT 121-01 BIA Fund Closeout - - 45,941 (45,941) OT 121-02 Revised 2023 Budget - Fund 121 135,941 - 135,941 0 Cumulative Reserve Fund (#122) 2023 Adopted Budget 30,713,551 80,000 1,391,450 29,402,101 Previous Budget Amendments 27,000 - 27,000 - 2023 Amended Budget 30,740,551 80,000 1,418,450 29,402,101 BA#2 (Ordinance #6911, Proposed):(148,110) - 500,000 (648,110) Adjust Beginning Balances (148,110) - - (148,110) OT 122-01 Move Vehicle Equipment Budget to PD - - - - OT 122-02 M&O Facility Improvement - - 500,000 (500,000) OT 122-03 Revised 2023 Budget - Fund 122 30,592,441 80,000 1,918,450 28,753,991 Page 4 of 13 7/5/2023 12:54 PMPage 13 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Mitigation Fees Fund (#124) 2023 Adopted Budget 10,976,167 1,601,200 7,043,982 5,533,385 Previous Budget Amendments 4,998,798 - 5,348,798 (350,000) 2023 Amended Budget 15,974,965 1,601,200 12,392,780 5,183,385 BA#2 (Ordinance #6911, Proposed):(125,343) - (931,000) 805,657 Adjust Beginning Balances (125,343) - - (125,343) OT 124-01 R St SE/29th St SE Imp. - cp2116 - - (830,000) 830,000 OT 124-02 R St SE/ 21st St SE Roundabout - - (185,000) 185,000 OT 124-03 Lea Hill Rd/104th Ave SE Imp.- - 84,000 (84,000) OT 124-04 Revised 2023 Budget - Fund 124 15,849,622 1,601,200 11,461,780 5,989,042 2020 LTGO A&B Refunding Bonds Fund (#232) 2023 Adopted Budget 662,707 1,507,600 1,507,600 662,707 Previous Budget Amendments - - - - 2023 Amended Budget 662,707 1,507,600 1,507,600 662,707 BA#2 (Ordinance #6911, Proposed):(202,544) - - (202,544) Adjust Beginning Balances (202,544) - - (202,544) OT 232-01 Revised 2023 Budget - Fund 232 460,163 1,507,600 1,507,600 460,163 LID Guarantee Fund (#249) 2023 Adopted Budget 1,687 10 - 1,697 Previous Budget Amendments - - - - 2023 Amended Budget 1,687 10 - 1,697 BA#2 (Ordinance #6911, Proposed):15 - - 15 Adjust Beginning Balances 15 - - 15 OT 249-01 Revised 2023 Budget - Fund 249 1,702 10 - 1,712 Page 5 of 13 7/5/2023 12:54 PMPage 14 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Parks Construction Fund (#321) 2023 Adopted Budget 816,504 1,545,100 1,347,800 1,013,804 Previous Budget Amendments 542,340 1,070,503 1,746,333 (133,490) 2023 Amended Budget 1,358,844 2,615,603 3,094,133 880,314 BA#2 (Ordinance #6911, Proposed):2,616 (50,000) (12,400) (34,984) Adjust Beginning Balances 2,616 - - 2,616 OT 321-01 Reclassify F106 Transfers - - - - OT 321-02 Fulmer Park Playground Replacement - - 37,600 (37,600) OT 321-03 Grant for Auburndale Park - 50,000 50,000 - OT 321-04 Cp1612 - Auburn Arts & Culture Ctr. Renovation - (100,000) (100,000) - OT 321-05 Revised 2023 Budget - Fund 321 1,361,460 2,565,603 3,081,733 845,330 Capital Improvements Fund (#328) 2023 Adopted Budget 13,078,556 6,833,300 6,320,700 13,591,156 Previous Budget Amendments 5,608,124 4,459,499 10,127,623 (60,000) 2023 Amended Budget 18,686,680 11,292,799 16,448,323 13,531,156 BA#2 (Ordinance #6911, Proposed):(2,552,310) 1,045,810 1,204,610 (2,711,110) Adjust Beginning Balances (2,552,310) - - (2,552,310) OT 328-01 Reclassify F106 Transfers - - - - OT 328-02 Lea Hill SRTS project - (22,250) 136,550 (158,800) OT 328-03 WA St Heritage Grant -cp1612 - 968,060 968,060 - OT 328-04 Cp1612 - Auburn Arts & Culture Ctr. Renovation - 100,000 100,000 - OT 328-05 Revised 2023 Budget - Fund 328 16,134,370 12,338,609 17,652,933 10,820,046 Local Revitalization Fund (#330) 2023 Adopted Budget 245,831 256,200 500,000 2,031 Previous Budget Amendments 22,399 376,400 398,799 - 2023 Amended Budget 268,230 632,600 898,799 2,031 BA#2 (Ordinance #6911, Proposed):4,589 1,826,850 1,826,850 4,589 Adjust Beginning Balances 4,589 - - 4,589 OT 330-01 Reclassify F106 Transfers - - - - OT 330-02 CIP Auburn Avenue Theater – Insurance Recovery - 228,200 228,200 - OT 330-03 WA St Dir. Appropriation-cp2321 - 1,498,650 1,498,650 - OT 330-04 Auburn Ave Theater -KC Grant - 100,000 100,000 - OT 330-05 Revised 2023 Budget - Fund 330 272,819 2,459,450 2,725,649 6,620 Page 6 of 13 7/5/2023 12:54 PMPage 15 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Water Fund (#430) 2023 Adopted Budget 10,210,632 20,513,410 24,485,990 6,238,052 Previous Budget Amendments 1,616,718 700,000 2,316,718 - 2023 Amended Budget 11,827,350 21,213,410 26,802,708 6,238,052 BA#2 (Ordinance #6911, Proposed):161,751 - 2,430,000 (2,268,249) Adjust Beginning Balances 161,751 - - 161,751 OT 430-01 Transfer from Water Fund to Water Capital Fund - - 2,200,000 (2,200,000) OT 430-02 Water Rights Mitigation Plan - - 230,000 (230,000) OT 430-03 Revised 2023 Budget - Fund 430 11,989,101 21,213,410 29,232,708 3,969,803 Sewer Fund (#431) 2023 Adopted Budget 9,299,995 9,573,200 10,346,701 8,526,494 Previous Budget Amendments 565,640 - 565,640 - 2023 Amended Budget 9,865,635 9,573,200 10,912,341 8,526,494 BA#2 (Ordinance #6911, Proposed):2,373,387 - - 2,373,387 Adjust Beginning Balances 2,373,387 - - 2,373,387 OT 431-01 Revised 2023 Budget - Fund 431 12,239,022 9,573,200 10,912,341 10,899,881 Storm Drainage Fund (#432) 2023 Adopted Budget 12,957,725 11,087,600 10,729,632 13,315,693 Previous Budget Amendments 586,240 - 586,240 - 2023 Amended Budget 13,543,965 11,087,600 11,315,872 13,315,693 BA#2 (Ordinance #6911, Proposed):589,087 - - 589,087 Adjust Beginning Balances 589,087 - - 589,087 OT 432-01 Revised 2023 Budget - Fund 432 14,133,052 11,087,600 11,315,872 13,904,780 Sewer Metro Sub Fund Fund (#433) 2023 Adopted Budget 3,328,134 20,613,900 20,586,400 3,355,634 Previous Budget Amendments - - - - 2023 Amended Budget 3,328,134 20,613,900 20,586,400 3,355,634 BA#2 (Ordinance #6911, Proposed):909,796 - - 909,796 Adjust Beginning Balances 909,796 - - 909,796 OT 433-01 Revised 2023 Budget - Fund 433 4,237,930 20,613,900 20,586,400 4,265,430 Page 7 of 13 7/5/2023 12:54 PMPage 16 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Solid Waste Fund (#434) 2023 Adopted Budget 2,135,607 26,646,830 26,533,984 2,248,453 Previous Budget Amendments - - - - 2023 Amended Budget 2,135,607 26,646,830 26,533,984 2,248,453 BA#2 (Ordinance #6911, Proposed):566,164 - - 566,164 Adjust Beginning Balances 566,164 - - 566,164 OT 434-01 Revised 2023 Budget - Fund 434 2,701,771 26,646,830 26,533,984 2,814,617 Airport Fund (#435) 2023 Adopted Budget 601,969 1,653,800 1,988,188 267,581 Previous Budget Amendments 968,496 - 968,496 - 2023 Amended Budget 1,570,465 1,653,800 2,956,684 267,581 BA#2 (Ordinance #6911, Proposed):218,329 - 173,080 45,249 Adjust Beginning Balances 218,329 - - 218,329 OT 435-01 Fund Balance Transfer from Operating to Capital - - 173,080 (173,080) OT 435-02 Revised 2023 Budget - Fund 435 1,788,794 1,653,800 3,129,764 312,830 Cemetery Fund (#436) 2023 Adopted Budget 1,812,215 1,432,300 2,308,402 936,113 Previous Budget Amendments - - - - 2023 Amended Budget 1,812,215 1,432,300 2,308,402 936,113 BA#2 (Ordinance #6911, Proposed):(160,795) - - (160,795) Adjust Beginning Balances (160,795) - - (160,795) OT 436-01 Revised 2023 Budget - Fund 436 1,651,420 1,432,300 2,308,402 775,318 Water Capital Fund (#460) 2023 Adopted Budget 3,321,676 10,752,092 13,041,560 1,032,208 Previous Budget Amendments 4,991,035 2,002,363 6,993,398 - 2023 Amended Budget 8,312,711 12,754,455 20,034,958 1,032,208 BA#2 (Ordinance #6911, Proposed):(2,207,912) 2,200,000 - (7,912) Adjust Beginning Balances (2,207,912) - - (2,207,912) OT 460-01 Transfer from Water Fund to Water Capital Fund - 2,200,000 - 2,200,000 OT 460-02 Well Insp. & Redevelopment-wabd11 - - - - OT 460-03 Revised 2023 Budget - Fund 460 6,104,799 14,954,455 20,034,958 1,024,296 Page 8 of 13 7/5/2023 12:54 PMPage 17 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Sewer Capital Fund (#461) 2023 Adopted Budget 8,687,557 377,200 5,992,500 3,072,257 Previous Budget Amendments 3,122,956 - 3,122,956 - 2023 Amended Budget 11,810,513 377,200 9,115,456 3,072,257 BA#2 (Ordinance #6911, Proposed):(1,189,867) - - (1,189,867) Adjust Beginning Balances (1,189,867) - - (1,189,867) OT 461-01 Revised 2023 Budget - Fund 461 10,620,646 377,200 9,115,456 1,882,390 Storm Drainage Capital Fund (#462) 2023 Adopted Budget 7,744,442 536,200 6,713,394 1,567,248 Previous Budget Amendments 2,892,429 10,000 2,902,429 - 2023 Amended Budget 10,636,871 546,200 9,615,823 1,567,248 BA#2 (Ordinance #6911, Proposed):(1,411,054) 302,700 452,700 (1,561,054) Adjust Beginning Balances (1,411,054) - - (1,411,054) OT 462-01 CP2102 – 4th St Preservation - 302,700 - 302,700 OT 462-02 D St SE /23rd St SE Storm Imp - - 302,700 (302,700) OT 462-03 Equipment Rental Capital Reimbursements - - 150,000 (150,000) OT 462-04 Revised 2023 Budget - Fund 462 9,225,817 848,900 10,068,523 6,194 Airport Capital Fund (#465) 2023 Adopted Budget 311,215 4,000,755 4,238,390 73,580 Previous Budget Amendments 100,000 2,226,283 2,326,283 - 2023 Amended Budget 411,215 6,227,038 6,564,673 73,580 BA#2 (Ordinance #6911, Proposed):(173,080) 173,080 - - Adjust Beginning Balances (173,080) - - (173,080) OT 465-01 Fund Balance Transfer from Operating to Capital - 173,080 - 173,080 OT 465-02 Revised 2023 Budget - Fund 465 238,135 6,400,118 6,564,673 73,580 Page 9 of 13 7/5/2023 12:54 PMPage 18 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Cemetery Capital Fund (#466) 2023 Adopted Budget 7,184 355,100 355,050 7,234 Previous Budget Amendments - - - - 2023 Amended Budget 7,184 355,100 355,050 7,234 BA#2 (Ordinance #6911, Proposed):5,106 - - 5,106 Adjust Beginning Balances 5,106 - - 5,106 OT 466-01 Revised 2023 Budget - Fund 466 12,290 355,100 355,050 12,340 Insurance Fund (#501) 2023 Adopted Budget 1,710,775 12,000 182,500 1,540,275 Previous Budget Amendments - - - - 2023 Amended Budget 1,710,775 12,000 182,500 1,540,275 BA#2 (Ordinance #6911, Proposed):(221,809) - - (221,809) Adjust Beginning Balances (221,809) - - (221,809) OT 501-01 Revised 2023 Budget - Fund 501 1,488,966 12,000 182,500 1,318,466 Workers' Comp Fund (#503) 2023 Adopted Budget 3,102,720 1,144,900 750,700 3,496,920 Previous Budget Amendments - - - - 2023 Amended Budget 3,102,720 1,144,900 750,700 3,496,920 BA#2 (Ordinance #6911, Proposed):(189,205) - - (189,205) Adjust Beginning Balances (189,205) - - (189,205) OT 503-01 Revised 2023 Budget - Fund 503 2,913,515 1,144,900 750,700 3,307,715 Facilities Fund (#505) 2023 Adopted Budget 415,868 4,683,900 4,731,374 368,394 Previous Budget Amendments 96,225 141,000 237,225 - 2023 Amended Budget 512,093 4,824,900 4,968,599 368,394 BA#2 (Ordinance #6911, Proposed):(188,926) - - (188,926) Adjust Beginning Balances (188,926) - - (188,926) OT 505-01 Revised 2023 Budget - Fund 505 323,167 4,824,900 4,968,599 179,468 Page 10 of 13 7/5/2023 12:54 PMPage 19 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Innovation & Technology Fund (#518) 2023 Adopted Budget 3,155,085 9,046,000 9,173,835 3,027,250 Previous Budget Amendments 280,000 - 280,000 - 2023 Amended Budget 3,435,085 9,046,000 9,453,835 3,027,250 BA#2 (Ordinance #6911, Proposed):(368,389) 150,000 650,000 (868,389) Adjust Beginning Balances (368,389) - - (368,389) OT 518-01 Flock Safety Cameras - 150,000 150,000 - OG 518-02 Transfer from IT operations to capital - - 500,000 (500,000) OT 518-03 Multimedia Assistant Reclass - - - - OG 518-04 Revised 2023 Budget - Fund 518 3,066,696 9,196,000 10,103,835 2,158,861 Equipment Rental Fund (#550) 2023 Adopted Budget 1,769,286 3,527,200 3,564,826 1,731,660 Previous Budget Amendments - - - - 2023 Amended Budget 1,769,286 3,527,200 3,564,826 1,731,660 BA#2 (Ordinance #6911, Proposed):229,180 - - 229,180 Adjust Beginning Balances 229,180 - - 229,180 OT 550-01 M&O Facility Improvement - - - - OT 550-02 Revised 2023 Budget - Fund 550 1,998,466 3,527,200 3,564,826 1,960,840 Equipment Rental Capital Fund (#560) 2023 Adopted Budget 4,508,173 3,470,540 3,096,120 4,882,593 Previous Budget Amendments 2,636,560 2,014,945 4,651,505 - 2023 Amended Budget 7,144,733 5,485,485 7,747,625 4,882,593 BA#2 (Ordinance #6911, Proposed):(1,604,514) 985,100 1,316,280 (1,935,694) Adjust Beginning Balances (1,604,514) - - (1,604,514) OT 560-01 Move Vehicle Equipment Budget to PD - (58,000) (58,000) - OT 560-02 Equipment Rental Capital Reimbursements - 177,100 332,980 (155,880) OT 560-03 M&O Fuel Island Replacement - - 175,300 (175,300) OT 560-04 M&O Facility Improvement - 866,000 866,000 - OT 560-05 Revised 2023 Budget - Fund 560 5,540,219 6,470,585 9,063,905 2,946,899 Page 11 of 13 7/5/2023 12:54 PMPage 20 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No IT Capital Fund (#568) 2023 Adopted Budget 237,354 674,700 585,300 326,754 Previous Budget Amendments 464,000 264,000 715,500 12,500 2023 Amended Budget 701,354 938,700 1,300,800 339,254 BA#2 (Ordinance #6911, Proposed):(589,119) 350,000 (150,000) (89,119) Adjust Beginning Balances (589,119) - - (589,119) OT 568-01 Flock Safety Cameras - (150,000) (150,000) - OG 568-02 Transfer from IT operations to capital - 500,000 - 500,000 OT 568-03 Revised 2023 Budget - Fund 568 112,235 1,288,700 1,150,800 250,135 Fire Pension Fund (#611) 2023 Adopted Budget 1,790,627 103,600 196,256 1,697,971 Previous Budget Amendments - - - - 2023 Amended Budget 1,790,627 103,600 196,256 1,697,971 BA#2 (Ordinance #6911, Proposed):99,905 - - 99,905 Adjust Beginning Balances 99,905 - - 99,905 OT 611-01 Revised 2023 Budget - Fund 611 1,890,532 103,600 196,256 1,797,876 SKHHP Fund (#654) 2023 Adopted Budget 1,668,893 297,400 366,475 1,599,818 Previous Budget Amendments - 66,612 54,828 11,784 2023 Amended Budget 1,668,893 364,012 421,303 1,611,602 BA#2 (Ordinance #6911, Proposed):76,098 1,012,009 300,000 788,107 Adjust Beginning Balances 76,098 - - 76,098 OT 654-01 SKHHP Habitat for Humanity Project - - 300,000 (300,000) OG 654-02 SKHHP Housing Capital Fund Revenue - 1,012,009 - 1,012,009 OT 654-03 Revised 2023 Budget - Fund 654 1,744,991 1,376,021 721,303 2,399,709 Cemetery Endowment Fund (#701) 2023 Adopted Budget 2,158,347 64,130 - 2,222,477 Previous Budget Amendments - - - - 2023 Amended Budget 2,158,347 64,130 - 2,222,477 BA#2 (Ordinance #6911, Proposed):42,958 - - 42,958 Adjust Beginning Balances 42,958 - - 42,958 OT 701-01 Revised 2023 Budget - Fund 701 2,201,305 64,130 - 2,265,435 Page 12 of 13 7/5/2023 12:54 PMPage 21 of 156 Schedule A Summary of 2023 Budget Adjustments by Fund Budget Amendment #2 (Ordinance #6911) AE AF AG AH Beg. Fund Balance Revenues Expenditures Ending Fund Balance OT/OG Req No Grand Total - All Funds 2023 Adopted Budget 161,030,549 256,021,357 288,796,223 128,255,683 Previous Budget Amendments 35,729,210 28,872,526 65,298,502 (696,766) 2023 Amended Budget 196,759,759 284,893,883 354,094,725 127,558,917 TOTAL BA#2 (Ordinance #6911, Proposed):912,899 11,447,014 12,584,982 (225,069) Revised 2023 Budget 197,672,658 296,340,897 366,679,707 127,333,848 494,013,555 494,013,555 Page 13 of 13 7/5/2023 12:54 PMPage 22 of 156 Schedule B 2023 Ending Fund Balance/Working Capital by Fund Fund 2023 Amended Beginning Balance 2023 Amended Ending Balance BA#2 (ORD #6911) Revenues BA#2 (ORD #6911) Expenditures BA#2 (ORD #6911) Net Change in Fund Balance Revised Ending Balance General Fund (#001)18,853,039 9,369,560 8,953,023 (2,791,100) 6,161,923 15,531,483 Arterial Street Fund (#102)1,864,020 690,081 241,036 205,000 446,036 1,136,117 Local Street Fund (#103)2,870,042 2,497,189 493,454 - 493,454 2,990,643 Hotel/Motel Tax Fund (#104)480,179 438,979 (15,880) - (15,880) 423,099 Arterial Street Preservation Fund (#105)4,649,612 2,641,130 427,123 (2,122,821) (1,695,698) 945,432 American Rescue Plan Act Fund (#106)- - - - - - Drug Forfeiture Fund (#117)857,236 612,565 279,779 (70,000) 209,779 822,344 Housing & Comm Develop Fund (#119)42,842 42,842 62 - 62 42,904 Recreation Trails Fund (#120)95,845 36,735 1,324 - 1,324 38,059 BIA Fund (#121)97,502 7,502 38,439 (45,941) (7,502) 0 Cumulative Reserve Fund (#122)30,740,551 29,402,101 (148,110) (500,000) (648,110) 28,753,991 Mitigation Fees Fund (#124)15,974,965 5,183,385 (125,343) 931,000 805,657 5,989,042 2020 LTGO A&B Refunding Bonds Fund (#232)662,707 662,707 (202,544) - (202,544) 460,163 SCORE Debt Service Fund (#238)- - - - - - LID Guarantee Fund (#249)1,687 1,697 15 - 15 1,712 Parks Construction Fund (#321)1,358,844 880,314 (47,384) 12,400 (34,984) 845,330 Capital Improvements Fund (#328)18,686,680 13,531,156 (1,506,500) (1,204,610) (2,711,110) 10,820,046 Local Revitalization Fund (#330)268,230 2,031 1,831,439 (1,826,850) 4,589 6,620 Water Fund (#430)11,827,350 6,238,052 161,751 (2,430,000) (2,268,249) 3,969,803 Sewer Fund (#431)9,865,635 8,526,494 2,373,387 - 2,373,387 10,899,881 Storm Drainage Fund (#432)13,543,965 13,315,693 589,087 - 589,087 13,904,780 Sewer Metro Sub Fund (#433)3,328,134 3,355,634 909,796 - 909,796 4,265,430 Solid Waste Fund (#434)2,135,607 2,248,453 566,164 - 566,164 2,814,617 Airport Fund (#435)1,570,465 267,581 218,329 (173,080) 45,249 312,830 Cemetery Fund (#436)1,812,215 936,113 (160,795) - (160,795) 775,318 Water Capital Fund (#460)8,312,711 1,032,208 (7,912) - (7,912) 1,024,296 Sewer Capital Fund (#461)11,810,513 3,072,257 (1,189,867) - (1,189,867) 1,882,390 Storm Drainage Capital Fund (#462)10,636,871 1,567,248 (1,108,354) (452,700) (1,561,054) 6,194 Airport Capital Fund (#465)411,215 73,580 - - - 73,580 Cemetery Capital Fund (#466)7,184 7,234 5,106 - 5,106 12,340 Insurance Fund (#501)1,710,775 1,540,275 (221,809) - (221,809) 1,318,466 Workers' Comp Fund (#503)3,102,720 3,496,920 (189,205) - (189,205) 3,307,715 Facilities Fund (#505)512,093 368,394 (188,926) - (188,926) 179,468 Innovation & Technology Fund (#518)3,435,085 3,027,250 (218,389) (650,000) (868,389) 2,158,861 Equipment Rental Fund (#550)1,769,286 1,731,660 229,180 - 229,180 1,960,840 Equipment Rental Capital Fund (#560)7,144,733 4,882,593 (619,414) (1,316,280) (1,935,694) 2,946,899 IT Capital Fund (#568)701,354 339,254 (239,119) 150,000 (89,119) 250,135 Fire Pension Fund (#611)1,790,627 1,697,971 99,905 - 99,905 1,797,876 SKHHP Fund (#654)1,668,893 1,611,602 1,088,107 (300,000) 788,107 2,399,709 Cemetery Endowment Fund (#701)2,158,347 2,222,477 42,958 - 42,958 2,265,435 Total 196,759,759 127,558,917 12,359,913 (12,584,982) (225,069) 127,333,848 Page 23 of 156 2023 Budget Amendment #2 CITY COUNCIL STUDY SESSION JULY 10, 2023 Page 24 of 156 Budget Adjustment #2 Types of Adjustments in BA#2 1.Adjust Beginning Fund Balance in each fund 2.New requests 3.Add grant funded programs 4.Adjust capital projects Page 25 of 156 General Fund – Summary of Changes 1.$6,294,923 net adjustment to Beginning Fund Balance 2.$133,000 in new requests (9 items) o Includes reinstating authority for a supernumerary in PD 3.$15,200 in new Grant funded programs (1 grant) Page 26 of 156 General Fund Adjustments – New Request Details and Fund Balance Impact NEW REQUEST DETAILS GENERAL FUND BALANCE IMPACT Description Revenue Expenditure Net Impact HR Safety App -$ 50,000$ (50,000)$ * 2024 Transportation Comp Plan - 50,000 (50,000) * Golf Course Equipment - 27,100 (27,100) * National Opiod Settlement 52,000 52,000 - SKHHP Capital Project 300,000 300,000 - SHB 1406 Tax to SKHHP - 152,900 (152,900) Training Officer at WSCJTC 147,000 - 147,000 Reallocate Vehicle Budget 58,000 58,000 - Replace Stolen Art 55,900 55,900 - Total 612,900$ 745,900$ (133,000)$ *2022 Carryforward items missed in BA#1 Budgeted Ending Fund Balance 9,369,560$ Add: 1/1/2023 Adjustment 6,294,923 Less: New Requests (133,000) Amended Ending Fund Balance 15,531,483$ Page 27 of 156 AllOther Funds - Summary of Changes 1.$(5,382,024) Net Fund Balance Adjustments to all funds other than the General Fund 2.$626,921 in new requests (6 items) 3.$1,092,156 in grant funded projects (8 items) 4.$2,100 in capital projects (5 items) Page 28 of 156 All Other Funds – Detailed Requests Type of Request Description Fund Revenue Expenditure Net Impact 1x New Requests Range Improvements Drug Forfeiture -$ 70,000$ (70,000)$ 1x New Requests BIA Fund Closure BIA Fund - 45,941 (45,941) 1x New Requests Equipment for Storm and Golf Course Equipment Replacement 27,100 332,980 (305,880) 1x New Requests Reimbursed Costs from Lumen Arterial Street 24,900 - 24,900 1x New Requests Water Rights Mitigation Water Fund - 230,000 (230,000) Ongoing Convert .75 FTE to 1.0 FTE Mutimedia Asst. Mulitmedia - - - Grant Funded Lea Hill Rd/104th Ave SE Arterial Street 476,000 560,000 (84,000) Grant Funded Lake Tapps Pkwy Arterial Street Preservation 750,000 1,284,356 (534,356) Grant Funded M&O Facility Improvements Equipment Replacement 141,000 641,000 (500,000) Grant Funded R St SE/21st St SE Roundabout Mitigation Fees 185,000 - 185,000 Grant Funded Auburndale Park Parks Construction 50,000 50,000 - Grant Funded LeaHill Safe Routes to School Capital Improvement (22,250) 136,550 (158,800) Grant Funded Arts and Culture Center Capital Improvement 968,060 968,060 - Grant Funded Auburn Ave. Theater Local Revitalization 1,826,850 1,826,850 - Capital Projects R St SE/29th St SE Arterial Street - (830,000) 830,000 Capital Projects F Street Non-Motorized Imp. Arterial Street - 65,000 (65,000) Capital Projects C Street SW Preservation Arterial Street Preservation 288,465 838,465 (550,000) Capital Projects Fulmer Park Parks Construction - 37,600 (37,600) Capital Projects M&O Fuel Island Equipment Replacement - 175,300 (175,300) Total 4,715,125$ 6,432,102$ (1,716,977)$ Page 29 of 156 Next Steps: July 17, 2023 ◦Adopt BA#2 Page 30 of 156 AGENDA BILL APPROVAL FORM Agenda Subject: 2023 National Night Out Presentation (Tate) (15 Minutes) Date: July 3, 2023 Department: Community Development Attachments: Powerpoint Presentation Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background for Motion: Background Summary: Neighborhood Programs staff will present an update on this year’s 2023 National Night Out event. Rev iewed by Council Committees: Councilmember:Trout-Manuel Staff:Tate Meeting Date:July 10, 2023 Item Number: Page 31 of 156 AUBURN VALUES S E R V I C E ENVIRONMENT E C O N O M Y C H A R A C T E R SUSTAINABILITY W E L L N E S S C E L E B R AT I O N COMMUNITY SERVICES DIVISION 2023 NATIONAL NIGHT OUT PRESENTATION JULY 10, 2023 Department of Community Development Planning ⚫Building ⚫Development Engineering ⚫Permit Center Economic Development ⚫Community Services ●Code EnforcementPage 32 of 156 Community Services DivisionHuman Services Housing Repair Neighborhood Programs COMMUNITY SERVICES DIVISION Page 33 of 156 •Vision: Auburn is a healthy, inclusive and engaged community where all residents have a love of place, a sense of belonging, and an ability to influence the future of the community. •Mission: NP will build community by providing investments and programming that promote inclusive engagement, increase accessibility of local gov’t, and enhance community wellness. •3 -pronged approach focused on connecting: •Community <-> Community (NNO) •Community <-> City (Civics Academy) •City <-> Community (Matching Grant, Community Fund) WHAT DOES NEIGHBORHOOD PROGRAMS (NP) DO? Page 34 of 156 NEIGHBORHOOD PROGRAMS •National Night Out •Civics Academy •Community Matching Grant •Community Fund Page 35 of 156 TUESDAY, AUG 2 ND 2022 RECAP 40 Events in 2022 with 71 Auburn staff and elected officials present Reported Attendees: ~2700 Events by area of Auburn ▪7 in Lakeland Hills ▪11 in Lea Hill ▪8 in North Auburn ▪12 in South Auburn ▪1 in West Hill ▪1 Downtown event ▪Apartment Complexes, Condos, Mobile Home Parks, Single -Family Homes, Retirement Homes, GRC, and 2 Churches auburnwa.gov/nno Page 36 of 156 Tuesday Aug. 1 Registration opened on June 5 and closes July 14 Reviewing registrations during the week of July 17 –24 During the week of July 27, will send out visitation info Emphasis on community gathering spaces and apartment complexes ▪Places of worship ▪Nonprofits ▪Businesses 2023 PLANS FOR NNO auburnwa.gov/nno Page 37 of 156 Page 38 of 156 Agency Visitors from previous years ▪Valley Regional Fire Authority ▪Puget Sound Energy ▪King County Metro ▪Sound Transit ▪Waste Management 2023 PLANS FOR NNO (CONT’D) auburnwa.gov/nno Page 39 of 156 Event coordinators will receive: ▪Clorox wipes ▪Hand sanitizer ▪Event T -Shirt ▪Name tags ▪Paper Towels ▪Reusable Bags ▪Sharpies ▪Water ▪Other items… 2023 PLANS FOR NNO (CONT’D) auburnwa.gov/nno Page 40 of 156 How can I be involved? ▪Invite your neighbors to host an event ▪Advertise through your personal networks 2023 PLANS FOR NNO (CONT’D) auburnwa.gov/nno Page 41 of 156 THANK YOU & QUESTIONS Chris Lovings Neighborhood Programs Coordinator auburnwa.gov/neighborhoods clovings@auburnwa.gov 253-876 -1988 Page 42 of 156 AGENDA BILL APPROVAL FORM Agenda Subject: Water System Comprehensive Plan Update - Policy Review (Gaub) (30 Minutes) Date: July 3, 2023 Department: Public Works Attachments: Presentation Draft 2024 Water Sys tem Policies & Criteria Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: The City is updating the Water System Comprehensive Plan (Plan) in coordination with the update of the City’s overall Comprehensive Plan. The purpose of the Plan is to guide the City with respect to future activities and improvements for the Storm Drainage Utility. The purpose of this discussion is to provide Council with the staff recommended policies to be incorporated into the Plan. The policies are the foundation of the Plan and outline how the water system should be operated and maintained and are grouped within goal statements that are headlined under the following categories: Business Practices Service Area Operations and Maintenance Financial Planning Environmental Stewardship Design and Construction Staff will review the recommended policies as provided in the attachment with specific focus on the additions, changes and removals from the previous Plan. Rev iewed by Council Committees: Councilmember:Brown Staff:Gaub Meeting Date:July 10, 2023 Item Number: Page 43 of 156 Page 44 of 156 A U B U R N V A L U E S S E R V I C E E N V I R O N M E N T E C O N O M Y C H A R A C T E R S U S T A I N A B I L I T Y W E L L N E S S C E L E B R A T I O N ENGINEERING SERVICES WATER COMPREHENSIVE PLAN POLICY REVIEW RYAN VONDRAK, UTILITIES ENGINEERING MANAGER SENAIT GEBREEYESUS, WATER UTILITY ENGINEER CITY COUNCIL STUDY SESSION JULY 10, 2023 Public Works Department Engineering Services Airport Services Maintenance & Operations Services Page 45 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION COUNCIL SCHEDULE OVERVIEW SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION April 10, 2023 •City Comprehensive Plan Overview July 10, 2023 •General Water Policies Review & Discussion 2023 Date TBD •Draft Plan Discussion 2024 Date TBD •Final Draft Review & Discussion •Resolution for Adoption Page 46 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION GOALS – POLICIES ·Broad statements indicating a general aim or purpose to be achieved.Goals ·Topic-specific statement providing guidelines for current and future decision-making. ·Indicates a clear commitment of the local legislative body. Policies Page 47 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policies Format Goal Statements Policies Reflecting Goal Statements GOALS – POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION 1. BUSINESS PRACTICES Goal 1.1:To employ recognized best business practices resulting in creating a sustainable, efficient, and cost-effective operation of the water utility. Policy 1.1.1 Elementof City ComprehensivePlan Incorporate the Water Comprehensive Plan as an Element of the City’s Comprehensive Plan. Policy 1.1.2 WaterServiceBy Others Water Service supplied by outside purveyors within Auburn City limits are required to obtain a franchise with the City and are required to conform to all federal, state, and local laws and regulations. [ACC 20.02.040 and 20.04] Page 48 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION 4 Water Service Areas Academy, Lakeland Hills, Lea Hill & Valley Sources of Water: 7 active Wells, 2 Springs & 2 Interties ≈ 302 miles Water Main 15,047 Service Connections 10 Pump Stations 2 Treatment Facilities 8 Reservoirs INTRODUCTION SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Academy Pump Station Page 49 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION 1.Business Practices 2.Service Area 3.Operations and Maintenance 4.Financial 5.Planning 6.Environmental Stewardship 7.Design and Construction WATER POLICY CATEGORIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 50 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Types of Updates (from Previously Adopted Plan) 1.Removed Policies 2.Simplified Policy Language 3.Modified Policies 4.New Policies WATER POLICY UPDATE SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 51 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy Update Criteria Compliance with other Regulations Increase Efficiency Enhance Sustainability Avoid Redundancy Remove Action Plan Minimize Circular References WATER POLICY UPDATE 14 3 25 31 26 Water System Plan - Policy Update Removed New Simplified Modified No Change Page 52 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Goal 1: To employ recognized best business practice s resulting in creating a sustainable, efficient, and cost-effective operatio n of the water utility. BUSINESS PRACTICES - GOAL SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION 1 8 7 1 Business Practices - Policy Updates Removed New Simplified Modified No Change Page 53 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 1.2 Water Service By Others Water Service supplied by outside purveyors within Auburn City limits are required to obtain a franchise with the City and are required to conform to all federal, state, and local laws and regulations. [ACC 20.02.040 and 20.04] Policy 1.3: Asset Improvements The City will develop and implement system improvem ents, infrastructure renewal (repair, rehabilitation, or replacement), and operations and maintenance programs for the water system according to asset management principles tha t address levels of service, address the triple bottom line (economic, social, and environme ntal benefits and costs), minimize asset life cycle costs, and incorporate risk management into d ecision-making. Policy 1.6: Condition Assessments of Assets The City will perform condition assessments of asse ts through development and implementation of an inspection schedule for all as sets. BUSINESS PRACTICES – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 54 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 1.7: Design Life of Assets The City will assign industry standard design life for all assets. The actual physical assessment will be compared to the theoretical design life to determine the optimal economic life. The City will attempt to repair or replace system assets bef ore they exceed their economic life. Policy 1.9: Addressing Water Quality Complaints The City will monitor the frequency, location, and details of all water quality complaints. At a minimum, the City will respond, research the cause of, and propose control methods once an issue is verified and documented. BUSINESS PRACTICES – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 55 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 1.11: Public Health Protection The City will conduct regular inspections of its wa ter system and any non-public water supply systems connected to it, in collaboration with the Washington State Department of Health. To protect the municipally owned water supply from contamination, the City will establish and publish rules and regulations as needed. The City w ill take all necessary measures to enforce the regulations to prevent any risks to public heal th associated with water supply contamination. [ACC 13.12.080] Policy 1.15: Fire Hydrant Use Fire hydrant use is a permitted activity unless tha t use is conducted by authorized City or Fire Authority employees. [ACC 13.06.415 & 13.12.035] BUSINESS PRACTICES – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 56 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 1.1: Element of City Comprehensive Plan Incorporate the Water Comprehensive Plan as an Elem ent of the City’s Comprehensive Plan. BUSINESS PRACTICES – NEW POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 57 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Goal 2: Ensure sustainable provision of retail wate r services through the development and implementation of policies that define the duty to serve and conditions of service, while adhering to best management practice s to meet the needs of the community. SERVICE AREA - GOAL SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION 1 2 5 2 Service Area - Policy Updates Removed New Simplified Modified No Change Page 58 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 3.3.7: Agency Coordination The City should coordinate closely with adjacent ju risdictions to determine applicable regulatory requirements, growth projections, and op portunities for joint projects. Agreements should be prepared between the pertinent parties on all joint projects. The City shall protect the municipal water supply f rom adverse impacts resulting from the activities of adjacent purveyors. SERVICE AREA – REMOVED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 59 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 2.4: Conditions of Service For areas within the Retail Water Service Area, the City will provide water service to new customers, conditioned on the agreement that any in frastructure improvements provided by the developer/development is in compliance with City wat er system standards. In addition, the City requires that residents withi n the City’s Potential Annexation Areas will receiv e water services from the City, to the extent practic al. The City will work with existing water purveyors within the City limits and within the Cit y’s Potential Annexation Areas in order to provide fair and equitable water service. New customers wit hin the City’s Potential Annexation Areas are to sign an Annexation Agreement before a Water Availab ility Certificate is issued. SERVICE AREA – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 60 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 2.5: Satellite Systems Assistance The City recognizes there may be instances where sa tellite system water providers require assistance with providing water service. In these c ases, the City may consider providing assistance on a case-by-case basis. The assistance could take a variety of forms, such as offering technical support and/or access to City infrastructure to hel p with the provision of water service. Ultimately, the decision to provide assistance will be based on the specific needs and circumstances of the water provider and will be made on a case-by-case b asis after careful consideration. Policy 2.6: Satellite System Connecting to City Ser vice The City will not assume ownership of any satellite water system, unless it meets all current City standards. The responsibility and all costs to brin g a satellite system up to City standards and any infrastructure necessary to connect the satellite s ystem to the City’s water system network, shall be the system owner(s). [ACC 13.06.150] SERVICE AREA – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 61 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 2.8: Concurrency of Improvements for Service Provision of water service, including supply, in th e City’s Retail Water Service Area is conditioned on concurrency with development and the necessary water facilities, including water right permit(s) and certificate(s), are avail able and adequate to serve the development at the time it is ready for occupancy and use, as r equired by the Water Comprehensive Plan. Water service may not always be immediately availab le for a new development. The property developer must provide the required water system fa cilities before the City can provide water service, if the facilities do not already exist, or are not under construction or under a binding development agreement. SERVICE AREA – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 62 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Goal 3: Employ operations and maintenance best mana gement practices, which includes a commitment to training and certification opportunities for its employees. OPERATIONS AND MAINTENANCE - GOAL SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION 1 5 1 1 Operations & Maintenance - Policy Updates Removed New Simplified Modified No Change Page 63 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 3.5: Pressure Reducing Valve Program To maximize system operational efficiency, conserve resources and provide consistent water service to customers of the water system, the City will adjust all water pressure reducing valves to the proper setting based on the frequency outlined in the operation and maintenance chapter of the Comprehensive Water Plan. OPERATIONS AND MAINTENANCE – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 64 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 3.7: ADU Metering Property owners with accessory dwelling units (ADUs ) on a single-family property may choose to supply the ADU from a master meter serving both units or separate meter installed to serve the ADU at owner’s expense. Water usage of each ADU will be billed to the property owner based on readings from the master meter or individu al meter serving the ADU, whichever is applicable. OPERATIONS AND MAINTENANCE – NEW POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 65 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Goal 4: Manage the water utility in a professional manner in compliance with applicable laws, regulations, and City financial po licies, which requires ongoing monitoring of revenues and expenses in order to mak e prudent business decisions and report to City officials, as needed, regarding the status of utility operations. FINANCIAL - GOAL SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION 4 1 53 6 Financial - Policy Updates Removed New Simplified Modified No Change Page 66 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 3.5.2: Water Use from Fire Hydrants All hydrant water sales shall be metered and requir e a hydrant meter use permit that authorizes the use of hydrants. Policy 3.5.7: Capital Facilities Plan (summary) Fund utilities through user fees and grants. Explore joint ventures for facility construction an d coordination. Provide assistance and funding for beneficial develo per-initiated improvements. Prioritize financial feasibility before constructin g facilities. FINANCIAL – REMOVED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 67 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 3.5.8: Capital Project Enterprise fund working capital in excess of that n eeded for operations may be used for capital needs in order to conserve the debt capacity of tho se funds for major facility expansions to meet future needs. [BBP Policies – 6, (Page 41)] Policy 3.5.14: Water Rate Uniformity Water rates should be uniform for all water utility customers of the same class throughout the City. FINANCIAL – REMOVED POLICIES Page 68 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 4.7: Development Charge Cost Recovery The City shall continue to recognize the overall sy stem impacts of new development upon the City water system through the collection and approp riate use of system development charges or similar fees. [ACC 13.41.020] Policy 4.9: Water Rate Levels Water rates will be set at a level sufficient to co ver the on-going expenses of the water utility, including operations, maintenance, repair, replacem ent, and capital improvements, as well as the general business expenses. Additionally, rates shall account for the depreciation of assets to ensure that the utility has adequate funds to ma intain its infrastructure and facilities. Furthermore, the rates shall enable the water utili ty to maintain sufficient reserves. FINANCIAL – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 69 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 4.11: Water Rate Equity The water-rate structure will allocate costs betwee n the different customer classes. Rates will be established on a “Cost of Service” basis so that each customer class pays its prorated share of the total costs needed to operate and maintain t he water utility. All projected future costs will be allocated to each customer class by using e stablished criteria that reflect the benefit that each customer class receives from the service. A Cost of Service and Rate Study will be performed periodically to ensure ongoing equity bet ween customer classes. FINANCIAL – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 70 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 4.3: Rates and Charges The City Council establishes rates and charges to b e paid by a customer receiving water service from the City. As a condition of supplying a customer water service, the City reserves the right to temporarily discontinue service at any time without notice to the customer and the City will not be liable for damages for service int erruptions or failure. [ACC 13.06.065] FINANCIAL – NEW POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 71 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Goal 5: Employ best management practices related to water supply planning and capital facility planning activities, which include s conditions for service extensions, fire system responsibility, oversizing, and service pressures and flow. PLANNING - GOAL SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION 2 2 2 8 Planning - Policy Updates Removed New Simplified Modified No Change Page 72 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 3.6.1: Connections for Existing Wells (summa ry) Landowners must extend the municipal water system a t their own cost when applying for water service. Owners near a water line must connect to t he municipal system for new nonresidential construction. Private well owners must seek authorization to tran sfer water rights and decommission wells before connecting to the municipal system. Auburn water sy stem applicants must agree not to install irrigation wells. Policy 3.6.6: Fire System Responsibility The City should provide and maintain water-system i nfrastructure to deliver adequate water for fire protection to retail customers served by the multi-source municipal water system. The multi-source water system, including water mains, storage facili ties, hydrants, booster-pump stations, and related facilities, shall be designed to meet all a pplicable codes at the time of construction. The City should maintain, repair, or replace mains, lin es, hydrants, and valves as necessary to keep the facilities in good working order. PLANNING – REMOVED POLICIES Page 73 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 5.1: Service Extension (summary) Water system extensions must meet City codes and st andards. Upgrades are required for systems not meeting City standards. Water mains mus t be extended across the full width of the property for future extensions. Water system extensions for new developments should be built before or alongside development. Financing options like System Developm ent Charges credits, Local Improvements Districts, and payback agreements may be utilized. Policy 5.5: Capital Facilities Plan The City is required by the Washington State Growth Management Act to adopt a Capital Facilities Plan. The plan will include capital proj ects and capital project programs for the water utility for a six-year period. Identified projects and programs will be financially constrained and broken-down into capacity and non-capacity projects and programs. The City will match revenue sources to capital projects based on sound fiscal policies. PLANNING – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 74 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Goal 6: Employ best management practices related to water environmental stewardship and the Water utility’s dedication to develop and implement facilities and programs that will protect the environment, inc luding water conservation, demand management and water shortage response. ENVIRONMENTAL STEWARDSHIP - GOAL SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION 2 1 5 6 Environmental Stewardship - Policy Updates Removed New Simplified Modified No Change Page 75 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 3.7.3: Natural Resources Promote conservation of energy, water, and other na tural resources in the location and design of public facilities. [CFP Policy 3.1, (Page 13)] Policy 3.7.9: Mining Impacts The City shall consider impacts of mining on ground water and surface water quality as well as possible changes in hydrology as a result of the mi ning during the environmental review process and require appropriate mitigating measures to prevent water quality degradation. [EN-50, (Page 9-11)] ENVIRONMENTAL STEWARDSHIP – REMOVED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 76 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 6.2: Water Shortage or Emergency Response In the event of a current or threatened water-suppl y shortage, the Mayor may declare a water shortage or emergency and issue water use restricti ons or conservation measures as necessary and consistent with the Water Shortage Re sponse plan. The Public Works Department is responsible for implementing these me asures and making reasonable attempts to notify affected customers. [ACC 13.14] Policy 6.3: Water Quality Responsibility The City shall provide water to all water-system cu stomers that meet all state and federal water quality standards. The City shall take the ac tions necessary to ensure that all water quality standards are met to the point of delivery (meter). The customer is responsible for maintaining water quality from the meter to the act ual point of use. ENVIRONMENTAL STEWARDSHIP – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 77 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 6.4: Water Resource Protection The City shall maintain a Water Resource Protection Program that incorporates best management practices and adaptive management concep ts, to protect the City’s groundwater supplies from degradation. The Comprehensive Water Plan shall provide for the evaluation of existing and potential future groundwater sources with regard to threats to the qu antity and quality of such sources. The Plan shall ensure that strategies are established f or the protection of groundwater sources that are used or likely to be used for public water supplies. Policy 6.6: Springs Protection Protection of the City’s Coal Creek Springs and Wes t Hill Spring watersheds, wells, and other sources shall be a high priority in the designation of appropriate land uses in the vicinity of these areas and facilities. ENVIRONMENTAL STEWARDSHIP – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 78 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 6.8: Water Use Efficiency Goals The City will continue implementation of its existi ng Water Use Efficiency Program. The City will target a 1 percent reduction in equivalent res idential unit value for each year until reaching a planning Equivalent Residential Unit (ER U) value of 172 gpd/ERU. A goal of the City is to reduce peaking factors that occur during the high usage periods to maximize existing water supply sources. City’s goal shall be in compl iance and consistent with all applicable local, state, and federal laws and regulations with in the Retail Water Service Area. ENVIRONMENTAL STEWARDSHIP – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 79 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Goal 7: Employ best management practices related to the design and construction of water facilities. DESIGN AND CONSTRUCTION - GOAL SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION 5 28 2 Design & Construction - Policy Updates Removed New Simplified Modified No Change Page 80 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 3.8.6: Fire Protection Services Services for fire protection are required to be ins talled with the proper backflow assemblies. It shall be mandatory for the installation to be made with an approved water flow alarm, as approved by the City and the chief of the Fire Auth ority, or their delegate, on each such service installation. [ACC 13.06.270] Policy 3.8.10: Fire Flow Duration The time or duration, for which a fire flow is to b e provided, is based on the quantity of fire flow required: Required Fire Flow; Duration 2,000 gpm or less: 2 hours 2,001 to 3,000 gpm: 3 hours 3,001 to 4,000 gpm: 4 hours 4,001 to 5,000 gpm: 5 hours 5,001 to 6,000 gpm: 6 hours 6,001 to 7,000 gpm: 7 hours 7,001 to 8,000 gpm: 8 hours DESIGN AND CONSTRUCTION – REMOVED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 81 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 3.8.13: Construction Standards (summary) Projects must comply with standard plans and specif ications from the Washington State Department of Transportation and County road standa rds. City will maintain services during construction and reconnect owner-maintained service pipes upon completion. Policy 3.8.14: Hydrants (summary) Dead-end mains supplying hydrants over 50 feet must be at least 8 inches in size. New hydrants in commercial, industrial, and multifa mily residential areas must be supplied by at least 8-inch mains. Hydrants must meet specific standards for valve ope ning, hose nozzles, steamer port, and connections. Maximum distances between fire hydrants vary based on zone type. Hydrant spacing requires approval from the Fire Aut hority, typically at street intersections. Hydrant leads should be at least 6 inches in diamet er, with leads over 50 feet being at least 8 inches in diameter. DESIGN AND CONSTRUCTION – REMOVED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 82 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 3.8.15: Dead-End Mains Provisions shall be made wherever appropriate in an y project for looping all dead-end or temporarily dead-end mains. Construction plans must be approved by the appropriate water authority prior to the commencement of construction . Where it is not feasible at the time of approval and installation to loop a water system, t he loop requirement may be relaxed if the intent of the code is met and a stub is provided on the main for future expansion. (Ordinance 3064 § 1, 1976) [ACC 13.16.090] DESIGN AND CONSTRUCTION – REMOVED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 83 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 7.1: Service Ownership / Responsibility The City shall own and maintain the service line be tween the main and the meter, the meter and setter, the meter box, and tail piece. The prop erty owner shall own and maintain the service line from the tail piece to the point of se rvice including pressure-reducing valves, pumps, or cross-connection assemblies beyond the me ter. [ACC 13.06.027] For unmetered connections (fire sprinklers), City o wnership ceases at the fitting on the water line. Where on-site fire hydrants are required, the City shall own the mains and hydrants located within established easements, unless the on -site mains and hydrants are located behind a master meter and designated as private. Policy 7.2: Source of Supply The City shall have sufficient system-wide supply f acilities (including both permanent and emergency interties) to meet the Maximum Day Demand with the largest active water supply source out of service. Since power continuity is a concern, auxiliary power, such as an installed or portable generator of sufficient capac ity to power the well or spring pumps should be provided. DESIGN AND CONSTRUCTION – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 84 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 7.3: Pump Stations A minimum of two pumps or a complete spare pump wil l be provided for each distribution system pump station to provide flexibility and syst em redundancy. Where multiple pumps are provided, the pumps will be sized so that the stati on can meet Maximum Day Demand flow conditions with the largest pump out-of-service. If the area is not served by gravity by a reservoir, booster pumps (along with any supply ava ilable) will be sized to provide peak hour demand and fire demand for the service area should the largest pump be out-of- service. Since power continuity is a concern, auxiliary power, suc h as an installed or portable generator of sufficient capacity to power the station with any s ingle pump out of service should be provided. Policy 7.4: Storage Reservoirs Reservoir redundancy is not a requirement for servi ce areas where the Maximum Day Demand and fire demand can be met by supply or pumping. DESIGN AND CONSTRUCTION – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 85 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 7.8: Fire-Flow Quantity The quantity of water available for firefighting es tablishes an important level of service for a water system. The fire flow requirements shall be based on the minimum City fire flow requirements specified in the current City of Aubur n Engineering Design Standards. Additional fire flow may be required per the International Fir e Code. Where the City determines higher fire flows are req uired than the minimums, the higher flow will be the criterion used to determine the require d system improvements. Fire flows are to be provided during Maximum Day Demand at the pressure requirements discussed in the paragraphs on Distribution System. DESIGN AND CONSTRUCTION – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 86 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 7.9: Reservoir Sizing The City reservoir storage components shall be size d to meet WAC 246-290-235 and Department of Health recommendations and requiremen ts. Policy 7.11: System Pressure The City of Auburn has established a criterion for minimum pressure within the water distribution system of 30 psi for all new facilitie s during Peak Hour Demand. The distribution system shall be capable of providi ng required fire flow under Maximum Day Demand conditions. During these conditions, a minim um pressure of 20 psi is allowed at any point within the distribution system when firefight ing storage and equalizing storage are depleted (WAC 246-290-230 Distribution Systems). Th e maximum target pressure within the water distribution system is 80 psi. DESIGN AND CONSTRUCTION – MODIFIED POLICIES Page 87 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Policy 7.12: Elements of Required Storage The City storage reservoir volume requirements are comprised of three separate categories: Equalizing Storage (when necessary ), Fire Fighting Storage, and Emergency Storage. In addition, reservoirs may include a "dead storage" v olume that is not useful because of the water system configuration. Auburn will provide sufficient storage volume so th at each storage component is provided separately, recognizing that a fire could occur dur ing an emergency (supply or pump station out-of-service). As a result, nesting of storage (u sing the same storage for both emergency and firefighting) is not acceptable and the City requir es these volumes to be stacked. Evaluation of the required reservoir volume must be done by analy zing each reservoir independently to ensure that adequate storage is provided to meet th e needs of customers within the reservoir service area. Storage within a zone of higher eleva tion can be used to meet the storage requirements of lower zones served by the reservoir. DESIGN AND CONSTRUCTION – MODIFIED POLICIES SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Page 88 of 156 SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION Any Questions? WATER POLICY REVIEW Page 89 of 156 City of Auburn 2024 Water System Policies & Criteria POLICIES AND CRITERIA INTRODUCTION The City of Auburn (City) manages the water utility in accordance with established water- system policies that govern various facets of utility operations. City policies are established by the City in order to provide a vision or mission of the water utility and to provide a framework for the design, operation, and ongoing wellbeing of the City’s water utility. The policies included in this Water Comprehensive Plan are developed specifically for the City’s multi-source municipal water system and seek to provide consistent treatment to all utility customers and to provide documentation to current water-system customers as well as those considering service from the City. It should be noted that what is included in these policies is limited to those things related to the water system and its design, maintenance, and operation. There are other policies and criteria that pertain to the water utility the City has in place regarding land use, development and financial components, which are not directly addressed in this plan, that could still have an impact on the needs of the water system. These policies and criteria may include factors such as zoning regulations, building codes, infrastructure requirements, and financing options. These additional factors will be considered when planning for the water system and to meet the needs of the community in a sustainable and effective matter. The City’s Water Comprehensive Plan is based upon the following mission statement for the water utility: “The City will provide for the efficient, environmentally sound and safe management of the existing and future water system within Auburn’s service area.” The City’s Water utility policies are grouped within goal statements that are headlined under the following categories: · Business Practices · Service Area · Operations and Maintenance · Financial · Planning · Environmental Stewardship · Design and Construction 1.0 BUSINESS PRACTICES Goal 1: To employ recognized best business practices resulting in creating a sustainable, efficient, and cost-effective operation of the water utility. Page 90 of 156 Policy 1.1 Element of City Comprehensive Plan Incorporate the Water Comprehensive Plan as an Element of the City’s Comprehensive Plan. Policy 1.2 Water Service By Others Water Service supplied by outside purveyors within Auburn City limits are required to obtain a franchise with the City and are required to conform to all federal, state, and local laws and regulations. [ACC 20.02.040 and 20.04] Policy 1.3 Asset Improvements The City will develop and implement system improvements, infrastructure renewal (repair, rehabilitation, or replacement), and operations and maintenance programs for the water system according to asset management principles that address levels of service, address the triple bottom line (economic, social, and environmental benefits and costs), minimize asset life cycle costs, and incorporate risk management into decision-making. Policy 1.4 Connections to Water System Any connection to the public water system requires obtaining an approved utility permit for service and said connection shall be made in accordance with City of Auburn Engineering Design and Construction Standards. [ACC 13.06.050, 13.06.090 and 13.06.100] Policy 1.5 Asset Database The City will maintain an asset database to be used in prioritizing asset maintenance and repair and replacement activities. The database includes asset age and material information, and will be validated and updated through inspections, records review and other available information. Policy 1.6 Condition Assessments of Assets The City will perform condition assessments of assets through development and implementation of an inspection schedule for all assets. Policy 1.7 Design Life of Assets The City will assign industry standard design life for all assets. The actual physical assessment will be compared to the theoretical design life to determine the optimal economic life. The City will attempt to repair or replace system assets before they exceed their economic life. Policy 1.8 Maintenance Activities for Asset Management The City will conduct maintenance activities at a level that is consistent with optimizing system reliability, asset economic life, and system performance. The City will develop schedules for maintenance of all water system assets. Policy 1.9 Addressing Water Quality Complaints The City will monitor the frequency, location, and details of all water quality complaints. At a minimum, the City will respond, research the cause of, and propose control methods once an issue is verified and documented. Page 91 of 156 Policy 1.10 Security of Assets Adequate measures will be taken to ensure system security. At a minimum, the City will maintain security at water facilities using the Supervisory Control and Data Acquisition system for intrusion alerts. Policy 1.11 Public Health Protection The City will conduct regular inspections of its water system and any non-public water supply systems connected to it, in collaboration with the Washington State Department of Health. To protect the municipally owned water supply from contamination, the City will establish and publish rules and regulations as needed. The City will take all necessary measures to enforce the regulations to prevent any risks to public health associated with water supply contamination. [ACC 13.12.080] Policy 1.12 Cross-Connection Prohibited Installing or maintaining a cross connection which will endanger the water quality of the municipal water system is strictly prohibited and shall be abated immediately or water service may be discontinued. [ACC 13.12.040] Policy 1.13 Cross-Connection Control To obtain water service to a property, the City may require any customer to install a pressure reducing valve, backflow prevention assembly, or pressure relief valve or similar devices at any location where the City determines there is a need to protect the municipal water system. [ACC 13.12.070] Policy 1.14 All Meters All water meters owned by the City, shall not be removed except by the City. Lost, broken, or damaged water meters shall be replaced or repaired by or under the direction of the City. [ACC 13.06.330] Policy 1.15 Fire Hydrant Use Fire hydrant use is a permitted activity unless that use is conducted by authorized City or Fire Authority employees. [ACC 13.06.415 & 13.12.035] Policy 1.16 Delinquent Accounts The City has established procedures for disconnecting water service to delinquent accounts for non-payment. [ACC 13.06.290] Policy 1.17 Leak Adjustment The City has established procedures for property owners to request a limited leak adjustment of the water bill for water that leaked from the service line between the City water meter and the point where the line enters the building. 2.0 SERVICE AREA Goal 2: Ensure sustainable provision of retail water services through the development and Page 92 of 156 implementation of policies that define the duty to serve and conditions of service, while adhering to best management practices to meet the needs of the community. Policy 2.1 Wholesale Water The City will plan to provide water service to wholesale customers with firm contracts. As supply permits, the City may provide water to wholesale customers without firm contracts unilaterally or as part of a capital improvement partnership agreement. Policy 2.2 Government Consistency The City’s Water Comprehensive Plan will be consistent with local, county, and state land use authorities. Policy 2.3 Duty to Serve The City will plan to provide water service to all customers within the City’s Retail Water Service Area (RWSA) in accordance with WAC 246-290-106. Revisions to the City’s RWSA shall be made only by written agreement and in accordance with local, county and state regulations. Policy 2.4 Conditions of Service For areas within the Retail Water Service Area, the City will provide water service to new customers, conditioned on the agreement that any infrastructure improvements provided by the developer/development is in compliance with City water system standards. In addition, the City requires that residents within the City’s Potential Annexation Areas will receive water services from the City, to the extent practical. The City will work with existing water purveyors within the City limits and within the City’s Potential Annexation Areas in order to provide fair and equitable water service. New customers within the City’s Potential Annexation Areas are to sign an Annexation Agreement before a Water Availability Certificate is issued. Policy 2.5 Satellite Systems Assistance The City recognizes there may be instances where satellite system water providers require assistance with providing water service. In these cases, the City may consider providing assistance on a case-by-case basis. The assistance could take a variety of forms, such as offering technical support and/or access to City infrastructure to help with the provision of water service. Ultimately, the decision to provide assistance will be based on the specific needs and circumstances of the water provider and will be made on a case-by-case basis after careful consideration. Policy 2.6 Satellite System Connecting to City Service The City will not assume ownership of any satellite water system, unless it meets all current City standards. The responsibility and all costs to bring a satellite system up to City standards and any infrastructure necessary to connect the satellite system to the City’s water system network, shall be the system owner(s). [ACC 13.06.150] Policy 2.7 Water Supply Management and Planning The City will promote effective water supply management and planning consistent with the “South King County Coordinated Water System Plan,” as well as regional water supply and conservation Page 93 of 156 goals. Policy 2.8 Concurrency of Improvements for Service Provision of water service, including supply, in the City’s Retail Water Service Area is conditioned on concurrency with development and the necessary water facilities, including water right permit(s) and certificate(s), are available and adequate to serve the development at the time it is ready for occupancy and use, as required by the Water Comprehensive Plan. Water service may not always be immediately available for a new development. The property developer must provide the required water system facilities before the City can provide water service, if the facilities do not already exist, or are not under construction or under a binding development agreement. 3.0 OPERATIONS AND MAINTENANCE Goal 3: Employ operations and maintenance best management practices, which includes a commitment to training and certification opportunities for its employees. Policy 3.1 System Monitoring and Operation The City will monitor the water system through use of computerized control system and adjust operations as necessary for efficient water system operation. Policy 3.2 Regular Inspection of Facilities The City will conduct routine inspections and maintenance on its water facilities including wells, springs and booster pump stations, in accordance with the frequency outlined in the operation and maintenance section of the Water Comprehensive Plan. Policy 3.3 Meter Reading Water service meters shall be read regularly to document customers water usage for billing purposes. Policy 3.4 Customer Service The City is committed to resolving customer complaints. All complaints are documented and reviewed and tended to by the appropriate staff member for investigation and resolution. Policy 3.5 Pressure Reducing Valve Program To maximize system operational efficiency, conserve resources and provide consistent water service to customers of the water system, the City will adjust all water pressure reducing valves to the proper setting based on the frequency outlined in the operation and maintenance chapter of the Comprehensive Water Plan. Policy 3.6 Employee Certification The City will pay for annual certification, provide time and tuition for certification training courses, and time for certification exams. In addition, the City will provide its staff opportunities for obtaining the continuing education required to maintain certification. Page 94 of 156 Policy 3.7 ADU Metering Property owners with accessory dwelling units (ADUs) on a single-family property may choose to supply the ADU from a master meter serving both units or separate meter installed to serve the ADU at owner’s expense. Water usage of each ADU will be billed to the property owner based on readings from the master meter or individual meter serving the ADU, whichever is applicable. 4.0 FINANCIAL Goal 4: Manage the water utility in a professional manner in compliance with applicable laws, regulations, and City financial policies, which requires ongoing monitoring of revenues and expenses in order to make prudent business decisions and report to City officials, as needed, regarding the status of utility operations. Policy 4.1 Source Meters All sources will be metered to measure the amount of water produced and calibrated annually to ensure an accurate accounting of water produced. Policy 4.2 Fiscal Stewardship All moneys due to the City for water service of any kind or for penalties relating to the municipally owned water system of the City shall be paid to the water fund. The water fund will not be commingled with any other fund or funds of the City. [ACC 13.06.030] Policy 4.3 Rates and Charges The City Council establishes rates and charges to be paid by a customer receiving water service from the City. As a condition of supplying a customer water service, the City reserves the right to temporarily discontinue service at any time without notice to the customer and the City will not be liable for damages for service interruptions or failure. [ACC 13.06.065] Policy 4.4 Self-Sufficient Funding The City maintains the water utility fund as a self-supporting enterprise fund. Water utility revenues come primarily from customer charges and are dependent upon established rates. The Revised Code of Washington requires that utility funds be used only for stated utility purposes. Although General Fund revenues can be used to fund water utility programs, the City has a general policy of not doing so. The City budgeting process should include a balanced and controlled annual water utility budget. This requires careful preparation of expense and revenue projections that may be reviewed by City management, the general public, and the City Council before approval of any rate increases. Policy 4.5 Capital Improvement Program Level Funding for the Capital Improvement Program (CIP) identified in the budget will be maintained at a level sufficient to assure system integrity. To the extent that the annual level of the CIP investment can be managed by scheduling and scoping of projects, the funding will be provided at a uniform level to avoid significant fluctuations and to reduce impacts on the operating budget and related rate increases. The City will maintain reasonable level of reserves in the CIP fund in order to manage cash flow variation caused by the nature of the cost and timing of projects. Utility sold Page 95 of 156 revenue bonds, Utility Local Improvement Districts, State Public Works Trust Fund loans, any available grants, system development charges and developer contributions will be considered for funding the future CIP projects. Policy 4.6 System Development Charges A water utility systems development charge is imposed upon all lands inside the boundary of the City and all lands outside the boundary of the City, which utilize water facilities. The utility systems development charge as set forth in the City fee schedule will be computed to consider the future and/or current value of the utility system’s fixed assets, excluding contributions by developers, and outstanding bonded indebtedness, and will also consider an appropriate service unit. [ACC 13.41.030] Policy 4.7 Development Charge Cost Recovery The City shall continue to recognize the overall system impacts of new development upon the City water system through the collection and appropriate use of system development charges or similar fees. [ACC 13.41.020] Policy 4.8 Payback Agreement Payback agreements for public street and utility system improvements may be approved by the City Council. The City engineer may execute the agreements once City Council has granted approval. [ACC 13.25.050] Policy 4.9 Water Rate Levels Water rates will be set at a level sufficient to cover the on-going expenses of the water utility, including operations, maintenance, repair, replacement, and capital improvements, as well as the general business expenses. Additionally, rates shall account for the depreciation of assets to ensure that the utility has adequate funds to maintain its infrastructure and facilities. Furthermore, the rates shall enable the water utility to maintain sufficient reserves. Policy 4.10 Water Rate Structure The water-rate structure will be set by customer class based on costs to serve each customer class. The water-rate structure shall support water conservation and wise use of water resources objectives as required by State law. Policy 4.11 Water Rate Equity The water-rate structure will allocate costs between the different customer classes. Rates will be established on a “Cost of Service” basis so that each customer class pays its prorated share of the total costs needed to operate and maintain the water utility. All projected future costs will be allocated to each customer class by using established criteria that reflect the benefit that each customer class receives from the service. A Cost of Service and Rate Study will be performed periodically to ensure ongoing equity between customer classes. Policy 4.12 Frequency of Water Rate Adjustments Water rates will be evaluated as part of the water utility budgeting process to ensure that budgeted expenses, including the impact of increasing water-supply regulations, are reflected in current Page 96 of 156 rates. Policy 4.13 Financial Reserve Levels The City shall maintain water utility cash balances to serve as a contingency reserve fund. The fund should maintain a balance of $1,000,000 to cover working capital needs and emergency contingencies and cash flow fluctuations. Policy 4.14 Charges for Services Outside the City Limits The City may include a rate adjustment for water service outside the City limits. Policy 4.15 Low-Income Assistance Program The Utility Rate Exemption Program currently provides water rate assistance for specific low- income senior customers or for specific low-income totally or permanently disabled customers. [ACC 13.24.010] 5.0 PLANNING Goal 5: Employ best management practices related to water supply planning and capital facility planning activities, which includes conditions for service extensions, fire system responsibility, oversizing, and service pressures and flow. Policy 5.1 Service Extension The City will consider extending water system services to areas within its existing RWSA, consistent with adopted annexation policies, and subject to the recovery of costs and the availability of sufficient financial and staffing resources. Property owners will be responsible for equitable share of extension costs upon connection to the system. Water system extensions must comply with current City codes and engineering design and construction standards. Connection to existing systems not meeting City water system standards must be upgraded at property owner’s expense before service is provided. To serve new developments, water system extensions must be built prior to or simultaneously with development, according to the size and configuration identified by the Comprehensive Water Plan. The City may participate in financing through System Development Charges credits, Local Improvements Districts (LID), and/or payback agreements, as allowed by law, to support such improvements. All persons or LIDs desiring to extend City water mains in the City must extend across the full width of the property being served to accommodate future extensions. [ACC 13.08.020] Policy 5.2 Facility Extension Agreement The City requires a Facility Extension Agreement to be executed for all public water system extensions constructed by development. Page 97 of 156 Policy 5.3 System-Wide Reliability The City shall invest the resources necessary to construct, maintain, and renew water-system infrastructure and equipment to ensure that customers are provided consistent, reliable service in accordance with WAC 246-290-420 Reliability and Emergency Response. Wherever possible, the City should anticipate system interruptions and design and operate the system to minimize the impact of such interruptions to customers. Policy 5.4 Emergency Preparedness The City shall update, as needed, a citywide Emergency Response Plan, complying with applicable RCW and WAC requirements, that will include the water system operations. The water system portion of the plan should ensure that adequate provisions are in place to provide for an organized response to the most likely kinds of emergencies that might endanger the health and safety of the general public or the operation of the municipal water system. Policy 5.5 Capital Facilities Plan The City is required by the Washington State Growth Management Act to adopt a Capital Facilities Plan. The plan will include capital projects and capital project programs for the water utility for a six-year period of time. Identified projects and programs will be financially constrained and broken-down into capacity and non-capacity projects and programs. The City will match revenue sources to capital projects based on sound fiscal policies. Policy 5.6 Emergency Interties The City should support emergency interties with adjacent water systems where there is a benefit to both water systems. Interties increase reliability of the City-wide water system during emergencies and other unusual operating circumstances. Policy 5.7 Water Supply Interties The City should consider water-supply interties on a case-by-case basis. Water supply interties should provide benefits to both water service providers and should not compromise the City’s ability to serve its existing customers or its future water supply needs. Policy 5.8 Water Supply Planning The City's objective is to assure a continuous, safe water supply to meet firm customer demands. Provision of water service must be consistent with the goals, objectives, and policies of the City of Auburn Comprehensive Water Plan. Effects of past water conservation will be considered when projecting future water needs. Future water demands will be estimated using existing water usage patterns and projected future populations developed by the City’s comprehensive Plan and consistent with the Puget Sound Regional Council data. Policy 5.9 Oversizing When determined to be necessary by the City to install water lines larger than are required to serve adjacent properties, the City may enter into an agreement to compensate the developer for the difference in cost of the oversizing. [ACC 13.08.040] Page 98 of 156 Policy 5.10 Service Pressure The City should provide potable water to customers in sufficient quantity to meet maximum day demands at a pressure that meets or exceeds all minimum applicable regulations, except during emergency conditions. Property owners may install private booster pumps to achieve higher pressures under supervision of the City and in accordance with WAC 246-290-230 Distribution Systems. Policy 5.11 Water for Irrigation Water used for irrigation by non-single-family residential customers, shall be provided through an irrigation meter. Deduct meters shall not be used to supply water for irrigation. [ACC 13.06.230] Policy 5.12 Water Meters Water meters shall be placed on every domestic and irrigation service line. [ACC 13.06.320] 6.0 ENVIRONMENTAL STEWARDSHIP Goal 6: Employ best management practices related to water environmental stewardship and the Water utility’s dedication to develop and implement facilities and programs that will protect the environment, including water conservation, demand management and water shortage response. Policy 6.1 Conservation Promotion The City will promote water conservation and the efficient use of water resources to help ensure a sustainable water supply. Policy 6.2 Water Shortage or Emergency Response In the event of a current or threatened water-supply shortage, the Mayor may declare a water shortage or emergency and issue water use restrictions or conservation measures as necessary and consistent with the Water Shortage Response plan. The Public Works Department is responsible for implementing these measures and making reasonable attempts to notify affected customers. [ACC 13.14] Policy 6.3 Water Quality Responsibility The City shall provide water to all water-system customers that meet all state and federal water quality standards. The City shall take the actions necessary to ensure that all water quality standards are met to the point of delivery (meter). The customer is responsible for maintaining water quality from the meter to the actual point of use. Policy 6.4 Water Resource Protection The City shall maintain a Water Resource Protection Program that incorporates best management practices and adaptive management concepts, to protect the City’s groundwater supplies from degradation. The Comprehensive Water Plan shall provide for the evaluation of existing and potential future groundwater sources with regard to threats to the quantity and quality of such sources. The Plan Page 99 of 156 shall ensure that strategies are established for the protection of groundwater sources that are used or likely to be used for public water supplies. Policy 6.5 Sustainable Development The City strives to be a sustainable community: meeting the needs of the present while preserving the ability of future generations to meet their own needs. Policy 6.6 Springs Protection Protection of the City’s Coal Creek Springs and West Hill Spring watersheds, wells, and other sources shall be a high priority in the designation of appropriate land uses in the vicinity of these areas and facilities. Policy 6.7 Aquifer Recharge Area The City shall consider the impacts of new development within aquifer recharge areas of potable water sources as part of its environmental review process and require any appropriate mitigation measures.[ACC 16.10.120.E] Policy 6.8 Water Use Efficiency Goals The City will continue implementation of its existing Water Use Efficiency Program. The City will target a 1 percent reduction in equivalent residential unit value for each year until reaching a planning Equivalent Residential Unit (ERU) value of 172 gpd/ERU. A goal of the City is to reduce peaking factors that occur during the high usage periods to maximize existing water supply sources. City’s goal shall be in compliance and consistent with all applicable local, state, and federal laws and regulations within the Retail Water Service Area. Policy 6.9 Non-Revenue Water The City will strive to maintain levels of water leakage for its distribution system at less than 10 percent. Policy 6.10 Leak Detection The City is committed to a tight, non-leaking water distribution system. Each year the City will check approximately one-quarter of the water distribution system for leakage. Policy 6.11 Reclaimed Water The City will explore opportunities and evaluate options for wastewater reuse and rainwater reclamation on a case by case basis. These can serve as cost-effective and environmentally beneficial sources of water thereby increasing the security and reliability of the drinking water supply. Policy 6.12 Aquifer Storage and Recovery The City shall consider the use of aquifer storage and recovery as a conservation and demand management tool to make best use of City water resources. Page 100 of 156 7.0 DESIGN AND CONSTRUCTION Goal 7: Employ best management practices related to the design and construction of water facilities. Policy 7.1 Service Ownership / Responsibility The City shall own and maintain the service line between the main and the meter, the meter and setter, the meter box, and tail piece. The property owner shall own and maintain the service line from the tail piece to the point of service including pressure-reducing valves, pumps, or cross- connection assemblies beyond the meter. [ACC 13.06.027] For unmetered connections (fire sprinklers), City ownership ceases at the fitting on the water line. Where on-site fire hydrants are required, the City shall own the mains and hydrants located within established easements, unless the on-site mains and hydrants are located behind a master meter and designated as private. Policy 7.2 Source of Supply The City shall have sufficient system-wide supply facilities (including both permanent and emergency interties) to meet the Maximum Day Demand with the largest active water supply source out of service. Since power continuity is a concern, auxiliary power, such as an installed or portable generator of sufficient capacity to power the well or spring pumps should be provided. Policy 7.3 Pump Stations A minimum of two pumps or a complete spare pump will be provided for each distribution system pump station to provide flexibility and system redundancy. Where multiple pumps are provided, the pumps will be sized so that the station can meet Maximum Day Demand flow conditions with the largest pump out-of-service. If the area is not served by gravity by a reservoir, booster pumps (along with any supply available) will be sized to provide peak hour demand and fire demand for the service area should the largest pump be out-of- service. Since power continuity is a concern, auxiliary power, such as an installed or portable generator of sufficient capacity to power the station with any single pump out of service should be provided. Policy 7.4 Storage Reservoirs Reservoir redundancy is not a requirement for service areas where the Maximum Day Demand and fire demand can be met by supply or pumping. Policy 7.5 Distribution System The City will plan for and develop a dependable distribution network with pipeline redundancy for redirecting water to affected customers during pipeline failures and establishing multiple connections between service zones at various locations. While the aim is to create a looped water distribution system for reliability and fire flow, there may be cases where looping is not feasible, necessitating off-site improvements in developing areas. Larger water mains may be required for major distribution lines or areas with higher fire flow needs. Additionally, subdividing service area zones into smaller pressure zones aligned with topographic elevations guarantees consistent pressure in each zone. Whenever a street is to be substantially reconstructed or a new street built, the City shall determine Page 101 of 156 whether water facilities in the street right a way shall be constructed or brought up to the size and configuration indicated by the Water Plan and Comprehensive Plan. Policy 7.6 Fire Flow Requirements The City has established two distinct and independent parts to the municipal water-system fire flow requirements within the City Retail Water Service Area. The first is a fire flow requirement established by the Fire Authority as a building-specific fire flow based on building use and materials of construction. The second is a multi-source municipal water system level of service criterion. The City shall require that both parts of the fire flow requirements be met as a condition of development and as a condition of any extension of the City water system. New development, redevelopment, or change in use or occupancy (as defined by Auburn City Code) shall meet the full fire flow requirements as established by this policy. Change of occupancy is not intended to include change of tenants or proprietors. The applicant shall be responsible for installing all necessary facilities needed to serve the property and for complying with the City’s development, and design and construction standards in order to meet these requirements. Fire flow requirements for existing structures and uses or occupancies are those that were required at the time of construction, as determined by the Fire Authority and the City’s water utility (since 1995). Such existing structures shall not be required to upgrade the municipal water-system infrastructure to meet current fire flow and development standards. Similarly, the City shall not be obligated to upgrade the existing water- system infrastructure to meet current fire-flow criteria and standards. The City should consider the benefit of improved fire flows when analyzing the need, design, and merits of municipal water-system improvements. Policy 7.7 Fire-Flow Improvements As resources become available, the City shall make the City’s municipal water-system improvements to meet the current fire flow criteria. Such system improvements may include replacing undersized water mains and pumping stations or correcting fire hydrant deficiencies of spacing and standardization where current standards are not met. When prioritizing and scheduling system improvements, the City capital facilities planning procedures should consider the severity of deficiencies. The City should seek opportunities to make improvements in conjunction with other City projects to achieve economic efficiency. Policy 7.8 Fire-Flow Quantity The quantity of water available for firefighting establishes an important level of service for a water system. The fire flow requirements shall be based on the minimum City fire flow requirements specified in the current City of Auburn Engineering Design Standards. Additional fire flow may be required per the International Fire Code. Where the City determines higher fire flows are required than the minimums, the higher flow will be the criterion used to determine the required system improvements. Fire flows are to be provided during Maximum Day Demand at the pressure requirements discussed in the paragraphs on Distribution System. Page 102 of 156 Policy 7.9 Reservoir Sizing The City reservoir storage components shall be sized to meet WAC 246-290-235 and Department of Health recommendations and requirements. Policy 7.10 Individual Service Area Water Supply Requirements The City will provide sufficient water supply capacity to meet Maximum Day Demand for each of the four service areas (Valley service area, Academy service area, Lea Hill service area and the Lakeland Hills service area) and any sub systems within these service areas utilizing a combination of reliable sources, reliable pump stations and reservoirs in accordance with system reliability criteria. Policy 7.11 System Pressure The City of Auburn has established a criterion for minimum pressure within the water distribution system of 30 psi for all new facilities during Peak Hour Demand. The distribution system shall be capable of providing required fire flow under Maximum Day Demand conditions. During these conditions, a minimum pressure of 20 psi is allowed at any point within the distribution system when firefighting storage and equalizing storage are depleted (WAC 246-290-230 Distribution Systems). The maximum target pressure within the water distribution system is 80 psi. Policy 7.12 Elements of Required Storage The City storage reservoir volume requirements are comprised of three separate categories: Equalizing Storage (when necessary), Fire Fighting Storage, and Emergency Storage. In addition, reservoirs may include a "dead storage" volume that is not useful because of the water system configuration. Auburn will provide sufficient storage volume so that each storage component is provided separately, recognizing that a fire could occur during an emergency (supply or pump station out- of-service). As a result, nesting of storage (using the same storage for both emergency and firefighting) is not acceptable and the City requires these volumes to be stacked. Evaluation of the required reservoir volume must be done by analyzing each reservoir independently to ensure that adequate storage is provided to meet the needs of customers within the reservoir service area. Storage within a zone of higher elevation can be used to meet the storage requirements of lower zones served by the reservoir. Page 103 of 156 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6912 (Thomas) (10 Minutes) Date: June 5, 2023 Department: Finance Attachments: Ordinance 6912 Auburn Wholes ale Rate update 2023 Exhibit A - Auburn Wholes ale Water Rates 13- 06-360 Memorandum Auburn Wholes ale Water Rate Auburn Wholes ale Water Rate Presentation Budget Impact: Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: The City of Auburn has agreements to provide wholesale water to Lake Meridian Water District and the City of Algona. In 2022, the City contracted with FCS Group to perform a utility rate study, which included wholesale water rates, to review the adequacy of existing rates and propose new rates as appropriate. Ordinance 6912 amends section 13.06.360 of the City Code with proposed updates to the existing wholesale water rates in accordance with the findings of the FCS Group rate study analysis. Rev iewed by Council Committees: Councilmember:Baldwin Staff:Thomas Meeting Date:July 10, 2023 Item Number: Page 104 of 156 -------------------------------- Ordinance No. 6912 July 5, 2023 Page 1 of 2 ORDINANCE NO. 6912 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AMENDING SECTION 13.06.360 OF THE AUBURN CITY CODE (ACC), RELATING TO CITY UTILITY RATES WHEREAS, pursuant to its powers in RCW 35.92, the City has established a water utility to serve its residents; WHEREAS, consistent with its responsibilities to operate this utility in a cost- effective manner and in a manner that reflects the City’s actual operating costs, the City periodically reviews its utility rate structure to ensure that its rates are set appropriately; WHEREAS, in 2022, the City consulted with FCS Group to study the City’s current water utility rates (including wholesale rates) against the City’s cost of service delivery and revenue requirements; WHEREAS, following the FCS Group utility rate review for wholesale customers conducted at City staff request, City staff recommends that City water utility rates should be adjusted as reflected in this Ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Amendment to City Code. Section 13.06.360 of the Auburn City Code is hereby amended to read as set forth in Exhibit A to this Ordinance. Section 2. Implementation. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Page 105 of 156 -------------------------------- Ordinance No. 6912 July 5, 2023 Page 2 of 2 Section 3. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application of it to any person or circumstance, will not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 4. Effective date. This Ordinance will take effect and be in force five days from and after its passage, approval, and publication as provided by law. INTRODUCED: _______________ PASSED: ____________________ APPROVED: _________________ ____________________________ NANCY BACKUS, MAYOR ATTEST: ____________________________ Shawn Campbell, MMC, City Clerk APPROVED AS TO FORM: ____________________________ Kendra Comeau, City Attorney Published: ____________________ Page 106 of 156 EXHIBIT A—ORD. 6912 ACC 13.06.360 Water service Rates – Generally. A. Except as provided in subsections B and C of this section, effective January 1,2023, the monthly base rate for all water user classifications except interruptible wholesale shall be as set forth in Table 13.06.360-1 below. Table 13.06.360-1. Monthly Charge Meter Size (inches) Effective January 1, 2023 Effective January 1, 2024 Effective January 1, 2025 5/8, 3/4 $ 19.61 $ 21.08 $ 22.66 1 (Single-Family Residential) $ 19.61 $ 21.08 $ 22.66 1 (All Other Classes) $ 22.01 $ 23.66 $ 25.43 1-1/2 $ 23.96 $ 25.76 $ 27.69 2 $ 27.62 $ 29.69 $ 31.92 3 $ 53.13 $ 57.11 $ 61.39 4 $ 66.66 $ 71.66 $ 77.03 6 $ 85.18 $ 91.57 $ 98.44 8 $ 110.05 $ 118.30 $ 127.17 10 $ 156.25 $ 167.97 $ 180.57 Page 107 of 156 Charge per 100 cubic feet (ccf) Customer Class Effective January 1, 2023 Effective January 1, 2024 Effective January 1, 2025 Single-Family Residential: 0 to 7 ccf $ 3.89 $ 4.18 $ 4.49 7.01 to 15 ccf $ 4.75 $ 5.11 $ 5.49 Over 15 ccf $ 5.40 $ 5.81 $ 6.25 Multifamily Residential $ 4.65 $ 5.00 $ 5.38 Commercial $ 4.90 $ 5.27 $ 5.67 Manufacturing/Industrial $ 4.79 $ 5.15 $ 5.54 Schools $ 5.22 $ 5.61 $ 6.03 Municipal/City Accounts $ 4.83 $ 5.19 $ 5.58 Irrigation $ 6.46 $ 6.94 $ 7.46 Wholesale (Algona) $ 2.39 $ 2.45 $ 2.51 Fifty percent shall be added to all rates for water service for customers outside the city limits. City of Auburn utility taxes are included in the monthly rate for all customers except wholesale accounts. Wholesale rates exclude the 50 percent out-of-city service charge and state excise taxes. B. Interruptible wholesale water supply customers shall pay monthly the sum of the following: 1. Standby Service Charge: the cost to maintain, repair, and replace the infrastructure required to provide water utility service to the interruptible wholesale water customer when the customer requests water supply from the city of Auburn. This is a fixed monthly charge and does not include the delivery of any quantity of water. 2. Usage Charge: the cost of water supply. The charge is based on actual water deliveries, if any, during the month times the usage rate. Page 108 of 156 3. Purchased Water Surcharge: In any month in which water is purchased from Tacoma Public Utilities or other external agency, the interruptible wholesale customer shall pay an additional charge of $1.82 per ccf, applied to the quantity of water purchased by the city of Auburn during the month to supply the interruptible wholesale customer. Interruptible Wholesale Rates Charge Effective January 1, 2023 Effective January 1, 2024 Effective January 1, 2025 Standby Service Charge (per month) $ 1,575.49 $ 1,583.74 $ 1,592.61 Usage Charge (per ccf) $ 2.13 $ 2.19 $ 2.24 Purchased Water Surcharge (per ccf of water purchased)* $ 1.82 $ 1.82 $ 1.82 * Subject to change if Tacoma Public Utilities updates its wholesale summer season peaking rate. C. Water customers served by the City’s Braunwood water system. City water customers served by the City’s Satellite Water System for Braunwood Estates (approved by City Resolution 2114) shall be subject to the following monthly water service rates, effective January 1, 2023: Page 109 of 156 Monthly Charge Meter Size (inches) Effective January 1, 2023 Effective January 1, 2024 Effective January 1, 2025 3/4" $ 19.61 $ 21.08 $ 22.66 1” $ 19.61 $ 21.08 $ 22.66 1-1/2” $ 23.96 $ 25.76 $ 27.69 2” $ 27.62 $ 29.69 $ 31.92 3” $ 53.13 $ 57.11 $ 61.39 4” $ 66.66 $ 71.66 $ 77.03 6” $ 85.18 $ 91.57 $ 98.44 8” $ 110.05 $ 118.30 $ 127.17 10” $ 156.25 $ 167.97 $ 180.57 Variable Charges based on ccf (100 cubic feet of water used) Description Effective January 1, 2023 Effective January 1, 2024 Effective January 1, 2025 B1 (0-7 ccf) $3.89 $4.18 $4.49 B2 (7.01-15 ccf) $4.75 $5.11 $5.49 B3 (15.01 – 25 ccf) $5.40 $5.81 $6.25 B4 (25.01-38 ccf) $6.00 $6.45 $6.93 B5 (38+ ccf) $12.00 $12.90 $13.87 Page 110 of 156 |Memorandum Firm Headquarters Locations page 1 Redmond Town Center Washington | 425.867.1802 7525 166th Ave NE, Ste D-215 Oregon | 503.841.6543 Redmond, Washington 98052 Colorado | 719.284.9168 To: Ingrid Gaub, P.E. Director of Public Works, City of Auburn Date: June 26, 2023 From: Angie Sanchez Virnoche, Principal, FCS GROUP CC: Frank Downard, Ryan Vondrak RE Wholesale Rate Update INTRODUCTION A Wholesale Water Rate Update is part of the 2022 contracted services with the City of Auburn under the Water, Sewer, and Storm Utilities Rate Study. The rate update is consistent with wholesale service agreements in effect and incorporates current condit ions. The update uses the previously established wholesale rate study methodology for assignment of eligible asset infrastructure and utility operating costs. The City currently has two wholesale water agreements in effect. One of the agreements is to provide permanent wholesale water services to the City of Algona (Algona). The other agreement is to provide interruptible wholesale service to Lake Meridian Water District (LMWD). For both types of wholesale customers (permanent and interruptible) the City of Auburn charge s wholesale rates that reflects the cost of providing the specific type of wholesale water service, with wholesale costs of service analyzed in the context of the overall City cost of water service. The cost- of-service analysis completed for this study is in accordance with the requirements of both Agreements. WHOLESALE RATE UPDATE The wholesale rate methodology used to establish and update wholesale rates is the Utility Basis approach . This approach recovers applicable operating and maintenance costs, plus a capital cost recovery based on the original cost of capital investment committed to the wholesale customer’s service. The capital cost recovery includes two components: depreciation of fixed assets and a rate of return on the net investment or book value of those wholesale serving assets. The three key wholesale rate components are summarized below: ⚫ Operating and Maintenance Expenses (O&M) – related to ongoing maintenance and operation of eligible assets. ⚫ Annual Depreciation Expense – of eligible fixed assets related to the loss in value of facilities, not restored by current maintenance, due to wear and tear, decay, and obsolescence as useful life is consumed. ⚫ Return on Investment – applied to net system investment intended to pay the annual interest cost of debt capital and provide owner equity return for the facilities used to provide water service. WHOLESALE RATE UPDATE The purpose of a cost-of-service analysis is to provide a rational basis for distribu ting the eligible costs of utility service to each customer based on the facilities used to deliver water service and in proportion to the demands they place on the system. The following list highlights some of the key documents and assumptions used in the development of the wholesale water rate update. Page 111 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 2 ⚫ 2022 operations and maintenance (O&M) budget , projected forward for the 2023 test year ⚫ Debt service balance through 12/31/2022 (to calculate the weighted average cost of capital) ⚫ Booked fixed assets through 12/31/2021 including original cost, accumulated depreciation, and annual depreciation ⚫ Customer use and revenue for 2022 ⚫ Contract capacity demands per Agreement s Basis of Cost Allocation Cost allocation is accomplished by developing customer specific allocation factors identifying characteristics including number of accounts, contracted peak demand, actual consumption levels, and share of eligible fixed assets. Allocation factors used in the wholesale rate update are summarized in Exhibit 1. Exhibit 1: Summary of Key Allocation Factors Notes: Algona few accounts do not show up due to rounding. Allocation of Assets and Costs Relevant to Wholesale Water Customers The City’s water system asset schedule drives several calculations in the wholesale rate ca lculation, including both the allocation of capital assets (depreciation) and the allocation of asset -related operating costs to functions of service (and ultimately to wholesale customers). The 2023 rate update is based on plant -in-service for year -end 2021. A detailed asset -by-asset review was completed with the assistance of staff identifying assets by function as shown in Exhibit 2 (e.g., Supply/Treatment, Storage, Pumping, Transmission/Distribution, etc.). Exhibit 2: Total Existing System Assets Algona LMWD Retail Total Accounts 0.0%0.0%100.0%100.0% Fixed Asset Allocation 2.0%4.6%93.4%100.0% % of Usage 5.7%0.0%94.3%100.0% Conservation 2.0%0.0%98.0%100.0% Contracted Demand Capacity 5.6%12.6%81.7%100.0% Allocation Factors Functional Category Total Original Cost 1 - Supply/Treatment 46,221,039$ 2 - Pumping 9,919,079 3 - Storage 9,850,524 4 - Transmission & Distribution 100,882,465 5 - Meters & Services 7,261,201 6 - Hydrants 1,126,857 7 - General Plant 1,736,399 8 - Customer 62,150 Total Eligible Existing Assets 177,059,713$ Page 112 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 3 The total system assets of $177.1 million are adjusted for contributed assets of $43.5 million and accumulated depreciation of $56.4 million to determine the net book value of system assets. Exhibit 3 provides the functional detail of the calculated net b ook value (“rate base”) of non-donated assets. Exhibit 3: Functional Net Book Value (Rate Base) During the detailed asset -by-asset review, staff identified which individual assets are used to provide wholesale service. Assets within each functional category were al located to wholesale or City retail customers using the allocation basis shown in Exhibit 4. Exhibit 4: Fixed Asset Allocation Basis WHOLESALE RATE UPDATE : ALGONA The allocated costs in the wholesale update for Algona include consideration that permanent wholesale water service is provided . The eligible assets and applicable operating and maintenance costs that comprise the return on rate base, depreciation and O&M costs for Algona are as follows: Net Book Value (non-Donated Assets)Total 1 - Supply/Treatment 31,684,234$ 2 - Pumping 6,685,101 3 - Storage 4,631,462 4 - Transmission & Distribution 31,141,809 5 - Meters & Services 2,819,133 6 - Hydrants 23,286 7 - General Plant 179,348 8 - Customer 300 Net Book Value (Rate Base)77,164,673$ Functional Category Allocation Basis 1 - Supply/Treatment Share of system peak demand or Retail only 2 - Pumping Share of system peak demand or Retail only 3 - Storage Share of peak demand excluding Algona, contracted share of Lakeland Hills Reservoir, or Retail Only 4 - Transmission & Distribution Retail only, Algona only or share of peak demand excluding Algona 5 - Meters & Services Retail Only or Algona Only 6 – Hydrants Retail Only 7 - General Plant Retail Only or Common to All 8 – Customer Retail Only or Customer Billing System Page 113 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 4 Rate Base Exhibit 5 shows the total eligible existing system assets identified for Algona by applying the fixed asset allocation basis in Exhibit 4. Algona assets total $3.5 million – roughly 2.0% of the total system existing assets. Exhibit 5: Algona Eligible Assets Exhibit 6 calculates the net book value for Algona after making deductions for assets that were paid for directly ($906K) and for accumulated depreciation on non -donated eligible assets ($672K). Exhibit 6: Algona Net Book Value (Rate Base) Return on Investment The return on investment (rate base) component of the revenue requirement is a function of the rate base and the weighted average cost of capital (WACC), which in turn is a function of the average rate on the City’s outstanding debt and the assumed return on equity rate. The net book value is multiplied by the weighted average cost of capital to determine the return on rate base . Weighted Average Cost of Capital (WACC) The City’s outstanding debt rate is currently 4.18% – a weighted average of the current o utstanding six (6) bonds and loans. For an equity rate, this analysis assumes a rate of 4.30%, representing the average of the 25 -Bond Revenue Bond Index and 20 -Bond GO Index as of Oct 2022 (these indices are published by The Bond Buyer at the time this u pdate began). In our judgment, the average between these two indices is a rough approximation of what the City could expect to pay for a newly issued revenue bond series. Functional Category Algona Original Cost 1 - Supply/Treatment 2,492,897$ 2 - Pumping 194,752 3 - Storage 273,020 4 - Transmission & Distribution 283,427 5 - Meters & Services 240,169 6 - Hydrants - 7 - General Plant 33,237 8 - Customer 4 Total Eligible Existing Assets 3,517,506$ Net Book Value (non-Donated Assets)Algona 1 - Supply/Treatment 1,747,890$ 2 - Pumping 81,403 3 - Storage 31,712 4 - Transmission & Distribution 74,978 5 - Meters & Services - 6 - Hydrants - 7 - General Plant 3,490 8 - Customer 0 Net Book Value (Rate Base)1,939,472$ Page 114 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 5 The equity rate of return generally incorporates a risk premium to compensate City ra tepayers for the risk they are assuming as a result of the City’s decision to secure excess supply capacity beyond the needs of the retail customer base. The City chose to forego this risk premium in prior analysis. For consistency, the risk premium has not been included in this update. Exhibit 7 shows how the assumed equity rate of 4.18% is blended with the 4.30% average outstanding debt rate. Auburn’s water capital structure is currently about 32% debt, 68% equity (total outstanding debt ÷ total net book value). Applying those weights to the average debt percentage and the assumed equity percentage, the City’s weighted average cost of capital is 4.26%. Exhibit 7: Rate of Return Exhibit 8 shows the return on investment component of the revenue requiremen t for Algona. This is calculated by multiplying the $1.9 million rate base by the 4.26% weighted average cost of capital . Exhibit 8: Algona Return on Rate Base Depreciation Annual depreciation is calculated on the total assets identified in Exhibit 5 and exclude amounts contributed by others. The annual depreciation value is calculated using the straight -line method. This method takes the value of an asset and reduces it uniformly over each period until it reaches the end of its useful life. Total depreciation for Algona eligible assets is approximately $40,737. Operating & Maintenance Expenses The 2023 operating budget is grouped into the cost centers of administration, finance, and operations. A line -by-line analysis was completed of the detailed accounts allocating each cost in part or in full to either wholesale or City retail customers using total fixed asset allocation, accounts, or percentage of use. Although most costs are allocated based on the percent of eligible fixed assets, utility billing costs were based on accounts and operating supplies, chemicals, utilities, and Tacoma water purchase emergency supply were based on percent of use. The result is approximately $285,476 of O&M expenses are assigned to Algona comprising 2.2% of total water system operating and maintenance expenses. Total Algona -Cost of Service and Rate Calculation Exhibit 9 summarizes the three components of the wholesale cost of service: return on investment, depreciation, and O&M costs - as well as the resulting Algona wholesale rate per hundred cubic feet Auburn Rate of Return % of Net Weighted Book Value Rate Rate Debt 32%4.18%1.33% Equity 68%4.30%2.93% Weighted Average Cost of Capital 4.26% Algona Rate Base 1,939,472$ Weighted Average Cost of Capital (WACC)4.26% Return on Investment 82,645$ Page 115 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 6 (CCF) of water use . The calculated rate of $2.3 9/CCF is an increase of $0.06 from the current rate of $2.33/CCF. Exhibit 9: Total Algona Wholesale Cost of Service Rate Projected Algona Rate Calculation The rates in this analysis are based on the 20 23 operating budget. Algona rates are composed of both a fixed meter charge, by size of meter , and the volume rate shown in Exhibit 9. The base meter rates will be tied to the retail rate charges by meter size (3 – 8” meters and 1 – 6” meter) that were updated during the retail rate study completed in 2022. The fixed charges are inte nded to pay for the replacement of the meters over time. In between cost -of-service analysis updates, it has been City practice to adjust the rates each year based on the annual increase in the CPI -U for Seattle-Tacoma-Bellevue from October of one year to October of the next year. This is a practice that the City can continue to monitor adjusting as needed to align with underlying cost increases. Exhibit 10 shows the Algona wholesale base and volume rates for 2023 - 2025. Future volume rates per CCF are ad justed by the five -year average (2016- 2020) CPI-U for Seattle -Tacoma -Bellevue. Years 2021 and 2022 were excluded due to the higher than normal inflation rates experienced during that time. Exhibit 10: Algona Proposed 2023 - 2025 Rates Under the terms of the agreeme nt, the Algona rate change can take place whenever the cost -of- service analysis is updated. We recommend that the cost -of-service analysis be updated every 3 -5 years, so that wholesale rates do not drift too far away from their underlying cost factors. Wholesale Rate Calculation Algona Return on Rate Base 82,645$ Depreciation 40,737 O&M 285,476 Total Annual Costs 408,857$ 2022 Use in CCF 170,933 Rate per CCF 2.39$ Algona Rate Schedule Current Rate 2023 Cost of Service 2024 2025 Estimated CPI Adjustment 2.50%2.50% Wholesale Rate per CCF City of Algona $2.33 $2.39 2.45$ 2.51$ Meter Charge per Month 8" Meter 102.37$ 110.05$ 118.30$ 127.17$ 6" Meter 79.24$ 85.18$ 91.57$ 98.44$ Page 116 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 7 WHOLESALE RATE UPDATE : LAKE MERIDIAN WATER DISTRICT (LMWD) Wholesale water service to LMWD is interruptible service. LMWD has indicated that they may request water service from Auburn, if needed. If Auburn has the supply available, Auburn will provide it to LMWD (as interruptible wholesale supply). It is likely that no service may be requested or delivered in any given year, yet facilities must be available and in good repair to provide service when requested. The existing utility basis methodology still applies in determining eligible costs and assets for LMWD. When and how the costs will be recovered will depend on use. Per the Agreement with LMWD, the City will serve up to 2.5 million gallons a day if requested and available. The eligible assets an d applicable operating and maintenance costs are based on this capacity commitment. The return on rate base, depreciation, and O&M costs allocable to LMWD are as follows: Rate Base Exhibit 11 shows the total eligible existing system assets identified fo r LMWD by applying the fixed asset allocation basis in Exhibit 4. LMWD assets total $8.1 million – roughly 4.5% of the total system existing assets. Exhibit 11: LMWD Eligible Assets Notes: Transmission & Distribution includes Tacoma Pipeline 5 assets. Exhibit 12 calculates the net book value for LWMD after making deductions for assets that were paid for directly ($1.8 million) and for accumulated depreciation on non -donated eligible assets ($2.0 million). Functional Category LMWD Original Cost 1 - Supply/Treatment 5,586,174$ 2 - Pumping 435,335 3 - Storage 550,103 4 - Transmission & Distribution 1,459,069 5 - Meters & Services - 6 - Hydrants - 7 - General Plant 76,607 8 - Customer - Total Eligible Existing Assets 8,107,288$ Page 117 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 8 Exhibit 12: LMWD Net Book Value (Rate Base) Notes: Transmission & Distribution includes Tacoma Pipeline 5 assets. When water is not being delivered, the eligible assets are reduced by the $3.9 million supply/treatment net book value for a modified net book value (or rate base) of $392,518. The supply/treatment assets have been removed from allocable costs as water is not being delivered. Exhibit 13: LMWD Net Book Value – Rate Base (No Supply/Treatment) Notes: Transmission & Distribution includes Tacoma Pipeline 5 assets. Standby Charge The charges applicable to L MWD include a standby charge that is paid monthly regardless of use. When water is used, a volume charge will apply in addition to the fixed stand-by charge. The monthly standby charge is comprised of the following components: • Annual depreciation of the facilities required to deliver service. The depreciation on the remaining assets is eligible as the City must maintain the delivery assets ready f or operation. As shown in Exhibit 14, the supply/treatment assets have been eliminated from the stand -by charge as assets are not being utilized when water is not requested for delivery. The storage value is shown as zero as the eligible assets are fully depreciated or represent land which does not depreciate. The monthly depreciation amount on eligible assets totals $579.29 ($6,951 ÷ 12 months) Net Book Value (non-Donated Assets)LMWD 1 - Supply/Treatment 3,915,780$ 2 - Pumping 182,682 3 - Storage 33,529 4 - Transmission & Distribution 168,262 5 - Meters & Services - 6 - Hydrants - 7 - General Plant 8,045 8 - Customer - Net Book Value (Rate Base)4,308,298$ Net Book Value (non-Donated Assets) LMWD (< Supply/Treat) Net Book Value of Non-Donated Assets 1 - Supply/Treatment -$ 2 - Pumping 182,682 3 - Storage 33,529 4 - Transmission & Distribution 168,262 5 - Meters & Services - 6 - Hydrants - 7 - General Plant 8,045 8 - Customer - Net Book Value (Rate Base)392,518$ Page 118 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 9 Exhibit 14: Annual Depreciation Eligible Assets – No Supply/Treatment Note: Transmission & Distribution includes Tacoma Pipeline 5 assets. • Tacoma Ready to Serve charge. This fixed charge to the City is based on c ontracted peak capacity and is a new cost addition for this update. The fixed charge is paid by the City to Tacoma to have water readily available when nee ded. The City pays this fixed charge per MGD of requested contract peak capacity regardless of use . This cost is allocated to LMWD based on the allocation of peak capacity to LMWD (12.63%) and recovered 50% in the standby charge. The remaining 50% of the allocated LMWD cost will be recovered in the volume charge when water is delivered. • Meter charge equal to the retail rate by meter size intended to pay over time for the replacement of the 8” meter servicing the District. Exhibit 15 summarizes the 2023-2025 standby charge paid monthly regardless of water being delivered or not to LMWD. Exhibit 15: LMWD Monthly Standby Charge In total, the calculated charge is higher than the current rate. There is a reduction in the depreciation charge as the eligible asset value has been reduced, likely due to retirements. However, the charge is increased with the addition of the Tacoma Ready to Serve charge which is a change from the last wholesale rate update. Wholesale Rate Delivered Water When water is requested and delivered, all wholesale rate components apply - rate of return on investment, depreciation, and O&M costs on the full eligible assets (including supply/treatment) as shown in Exhibit 11 ($8.1 million). Return on Investment As noted previously, the return on investment (rate base) component of the revenue requirement is a function of the rate base and the weighted average cost of capital (WACC) – Exhibit 7 , which in turn is a function of the average rate on the City’s outstandi ng debt and the assumed return on equity Depreciation on Non-Donated Assets LMWD (< Supply/Treat) Existing System Eligible Assets 1 - Supply/Treatment -$ 2 - Pumping 499 3 - Storage - 4 - Transmission & Distribution 6,295 5 - Meters & Services - 6 - Hydrants - 7 - General Plant 158 8 - Customer - Total Existing System Assets Depreciation 6,951$ Current 2023 2024 2025 Mo. Depreciation on Eligible Assets 1,045.55$ $579.29 579.29$ 579.29$ Tacoma Contract Peak Capacity (50% of eligible cost)886.15 886.15 886.15 8" Meter Replacement (Retail Published Rate)102.37 110.05 118.30 127.17 Total LMWD Mo. Standby Charge 1,147.92$ 1,575.49$ 1,583.74$ 1,592.61$ Page 119 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 10 rate. The net book value is multiplied by the weighted average cost of capital to determine the return on rate base. Exhibit 16 summarizes the total eligible assets and return under full service delivery. Exhibit 16: L MWD Return on Rate Base The return listed in Exhibit 16, is recoverable when water is delivered. The unit cost associated with the return is $0.15/CCF. The calculation is derived by identifying the eligible assets and return on rate base of $183,585 divided by the contract demand capacity of 2.5 MGD (converted to CCF 2,500,000 MGD x 365 days ÷ 748 = 1,219,920 annual CCF). Depreciation Annual depreciation is calculated on the total net book value of eligible assets identified in Exhibit 12 ($4.3 million) and exclude amounts contributed by others as well as excludes the amount of depreciation recovered in the stand -by charge identified in Exhibit 15. The annual depreciation value is calculated using the straight -line method. This method takes the value of an asset and reduces it uniformly over each period until it reaches the end of its useful life. Depreciation for LMWD total eligible assets is approximately $91,222. Similar to the rate of return, the depreciation calculation is derived by taking the net amount divided by the annual contract demand in CCF resulting in $0.07/CCF. Operating & Maintenance Expenses As noted, when describing the Key Assumptions, a line -by-line analysis of the detailed 2023 budget was completed, allocating each O&M line item to either wholesale or City retail. The wholesale O&M unit costs are consistent for both wholesale customers and have been adjusted only for those O&M costs that have been identified as having a higher allocable cost resulting from the line-by-line analysis. As most costs are allocated based on the “by fixed assets” allocation factor, LMWD has a higher O&M allocation of total costs. This is due to the higher contractual amount of 2.50 MGD resulting in a higher allocation amount when water is delivered. The resulting cost differential of 1.26 is applied to the admin , finance, and operations cost centers . A factor was not applied for costs such as operating supplies, chemical analysis and the Tacoma emergency supply and standby contract peak capacity costs. Total LMWD Delivered Water Rate The delivered water rate for LMWD is shown in Exhibit 17. The rate is composed of a fixed monthly charge and a volume charge when water is delivered and available. The fixed charge is the same as the standby charge shown in Exhibit 15. The volume charge is developed to recover eligible costs when water is requested and delivered. It should be noted that the volume charge includes the remaining 50% of the allocated LMWD costs related to the Tacoma Ready to Serve charge (incurred by the City to have water readily available) and eliminates the Tacoma Emergency Supply as City water sources are assumed when water is delivered. The unit cost per CCF is $2.13. LMWD Eligible Rate Base 4,308,298$ Weighted Average Cost of Capital (WACC)4.26% Return on Investment 183,585$ Page 120 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 11 Exhibit 17: LMWD Delivered Water Rate In between cost -of-service analysis updates, it has been City practice to adjust the rates each year based on the annual increase in the CPI -U for Seattle-Tacoma-Bellevue from October of one year to October of the next year. Exhibit 18 shows the LMWD whole sale standby charge and usage charge for 2023 - 2025. Future usage charges per CCF are adjusted by the five -year average (2016-2020) CPI-U for Seattle -Tacoma-Bellevue. Years 2021 and 2022 were excluded due to the higher than normal inflation rates experie nced during that time. Exhibit 18: LWMP Proposed 2023 - 2025 Delivered Water Rates The rates in this analysis are based on the 2023 operating budget. Under the terms of the agreement, the rate change can take place whenever the cost-of-service analysis is updated. We recommend that the cost-of-service analysis be updated every 3 -5 years, so that the wholesale rates do not drift too far away from their underlying cost factors. Wholesale Purchased Water Surcharge The wholesale rate review includes updating the City’s wholesale purchased water surcharge to cover costs when the City water resources are not sufficient and Tacoma water purchases are required to meet demands. The purchased water surcharge was developed using the LMWD costs of service 2023 Rates Fixed Monthly Charge Depreciation (standby portion)$579.29 Contract Peak Capacity (50% of eligible total)886.15 8" meter (published rate)110.05 Total Fixed Monthly Charge $1,575.49 Volume Charge (water delivery) Depreciation (not recovered in standby charge)$0.07 Return $0.15 O&M Admin Cost Centers $0.55 Finance Cost Center 0.09 Operations Cost Center 0.48 Supplies 0.05 Chemical Analysis 0.02 Tacoma Emergency Supply - Tacoma Standby Contract Peak Capacity 0.03 Utilities 0.33 As all other (general)0.05 Transfer/Taxes 0.30 Subtotal O&M $1.91 Total Depreciation, Return, O&M, per CCF $2.13 Current 2023 2024 2025 Mo. Depreciation on Eligible Assets 1,045.55$ 579.29$ 579.29$ 579.29$ Tacoma Contract Peak Capacity (50% of eligible cost)886.15 886.15 886.15 8" Meter Replacement (Retail Published Rate)102.37 110.05 118.30 127.17 Total LMWD Mo. Standby Charge 1,147.92$ 1,575.49$ 1,583.74$ 1,592.61$ Estimated CPI Adjustment 2.50%2.50% Usage Charge 2.07$ $2.13 $2.19 $2.24 Page 121 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 12 rates and the 2023 Tac oma wholesale rate published in the Tacoma Municipal Code, Title 12 Utilities – 12.10.400 Rates Inside and Outside City Limits. Exhibit 19 details the calculation of the updated wholesale purchase water surcharge . Applicable costs include fixed costs that would remain regardless of the water source being used and include the administrative and finance cost centers along with transfer/taxes. The Tacoma Emergency Supply peaking rate and the Tacoma Ready to Serve char ge would replace the variable costs associated with the City’s own supply source inclusive of the operations center, supplies, chemical analysis, utilities and other. The current Tacoma published peaking rate is $2.569/CCF. In addition, as of the last update, Tacoma has imposed a fixed Ready to Serve charge . The LMWD eligible portion (based on peak capacity) of this cost is collected 50% from the standby fixed fee and 50% from the variable charge or $0.03/CCF. The total cost applicable when Tacoma water i s used totals $3.76/CCF. The difference between the total cost of $3.76 (when Tacoma water is being purchased) less the cost- of-service rate of $2.13 becomes the pre -tax purchased water surcharge of $1.63/CCF. This rate would be paid in addition to the reg ular volume charge. Additional City taxes would be assessed based on the higher costs/revenue received making the final purchased water surcharge rate, including taxes $1.82/CCF. Exhibit 19 shows the costs that comprise the purchased water surcharge. The rates shown are for 2023. The Tacoma wholesale peaking rate may change again in 2024 per the published rates. I t is recommended that the City monitor the published rate s and update the purchased water surcharge in alignment with any changes. It should be noted that the surcharge has been reduced from the current rate of $3.31/CCF. This reduction is due to the restructuring of the Tacoma Wholesale rate to reduce the peak usage charge ($3.96 to $2.57/CCF) and add a Wholesale Ready to Serve C harge ($2,741.53) assessed per million gallons a day (MGD) of contracted peak capacity . Exhibit 19: Purchased Water Surcharge Calculation 2023 Rates 2023 Applicable Unit Costs/CCF Volume Charge Depreciation (not recovered in standby charge)$0.07 $0.07 Return $0.15 $0.15 O&M Admin Cost Centers $0.55 $0.55 Finance Cost Center 0.09 0.09 Operations Cost Center 0.48 - Supplies 0.05 - Chemical Analysis 0.02 - Tacoma Emergency Supply - 2.57 Tacoma Standby Contract Peak Capacity 0.03 0.03 Utilities 0.33 - As all other (general)0.05 - Transfer/Taxes 0.30 0.30 Subtotal O&M $1.91 $3.54 Total Depreciation, Return, O&M, per CCF $2.13 $3.76 Total Recoverable Variable Costs $2.13 Calculated Total Costs w/ Tacoma Rate 3.76 Cost Difference $1.63 Plus Additional Taxes 0.19 Total Wholesale Purchased Water Surcharge /CCF $1.82 Page 122 of 156 CITY OF AUBURN June 2023 Wholesale Rate Update FCS GROUP Memorandum page 13 Summary The Wholesale rates are updated for Algona and LMWD based on the water cost of service study completed in 2022. The rate projection for Algona includes a fixed charge per meter size based on the retail published meter charge rates plus an updated volume charge of $2.3 9/CCF, an increase of $0.0 6/CCF. The rate for LMWD considers they are served as an interruptible customer. The stand-by charge has been updated for the retail published meter charge rate , depreciation on current eligible asset values and the Tacoma Ready to Serve charge . The rate is calculated at $1,575.49 per month. The volume charge has been updated to $2.13 from a current rate of $2.07 when water is requested and available based on 2023 budget operating costs . In addition, the wholesale purchased water surcharge intended to cover costs when the City is required to purchase Tacoma Water to meet demands , has been updated. The annual purchased water surcharge is calculated at $1.82 per CCF in addition to the general volume charge. The rate is down from the current surcharge of $3.31 per CCF due to the restructuring of rates by Tacoma that reduces the peak water consumption rate and adds a fixed ready to serve charge per MGD. Page 123 of 156 Slide 1FCS GROUP Angie Sanchez Virnoche, Vice President/Principal July 10, 2023 Wholesale Water Rate Update Page 124 of 156 Slide 2FCS GROUP Background ●Wholesale rate update part of greater utility rate study completed in 2022 »Last update in 2018 »Per agreements “Auburn has created a customer classification for wholesale customers, and rates for service charges for wholesale customers shall be based on a rate study for the wholesale customer classification.” “Wholesale water rates shall be based on costs of providing the service.” ●Two wholesale customers »City of Algona –continual service wholesale customer »Lake Meridian Water District (LMWD) –interruptible “ready to serve” upon request Page 125 of 156 Slide 3FCS GROUP Wholesale Rate Methodology ●Current update uses the previously established wholesale rate study methodology ●Using industry* accepted practice –“utility basis” methodology ●Methodology includes »Operating Costs –costs related to ongoing maintenance and operation of eligible assets »Annual depreciation –of the facilities required to deliver service, related to the loss in value of facilities due to wear and tear, decay, and obsolescence »Return -to provide a fair rate of return for the past investment made to finance facilities used to provide water service *American Water Works Association Principles of Water Rates, Fees and Charges, M1 Manual Page 126 of 156 Slide 4FCS GROUP Algona Wholesale Water Rates ●Charges composed of: »Fixed meter charge, by size »Usage charge per hundred cubic feet 4 Current Charges COSA 2023 Proposed 2024 Proposed 2025 Meter Charge, per month per meter 6-inch –(1) 8-inch –(3) $85.18 $110.05 $85.18 $110.05 $91.57 $118.30 $98.44 $127.17 Charge per 100 cubic feet (ccf)$2.33 $2.39 $2.45 $2.51 COSA = cost of service analysis Page 127 of 156 Slide 5FCS GROUP LMWD Standby Charge ●Charged each month ●Recovers the cost to maintain, repair, and replace delivery assets and provide the ability to serve if, and when requested (ready to serve) ●Charge Includes: »Depreciation on delivery assets »Tacoma ready to serve charge (50% fixed charge/ 50% usage charge) –City pays Tacoma “ready to serve charge” per month for each MGD of contracted peak capacity ($2,741.53/MGD) »Meter charge (equal to retail rates) 5MGD = million gallons per day Current Charges COSA 2023 Proposed 2024 Proposed 2025 Mo. Depreciation Tacoma Ready to Serve Meter Charge 8-inch –(1) Total Mo Charge $1,045.55 n/a 102.37 $1,147.92 $579.29 886.15 110.05 $1,575.49 $579.29 886.15 118.30 $1,583.74 $579.29 886.15 127.17 $1,592.61 Page 128 of 156 Slide 6FCS GROUP LMWD Delivery Charges ●Delivery charge when using City of Auburn sources ●Purchase Water Surcharge »Applied to water purchased from Tacoma for delivery to LMWD –Tacoma peaking rate $2.569/CCF –50% of ready to serve charge $0.03/CCF »Total purchased water surcharge $1.82/CCF 6 CCF = 100 cubic feet Current Charge COSA 2023 Proposed 2024 Proposed 2025 Charge per 100 cubic feet (ccf)$2.07 $2.13 $2.19 $2.24 Page 129 of 156 Slide 7FCS GROUP Summary of LMWD Rates ●Proposed charges based on interruptible/ready to serve upon request ●2023 cost of service analysis assumes no actual water deliveries 7 Current Charges COSA 2023 Proposed 2024 Proposed 2025 Standby Charge per month $1,147.92 $1,575.49 $1,583.74 $1,592.61 Usage Charge: Usage Charge -per 100 cubic feet (ccf)$2.07 $2.13 $2.19 $2.24 Purchased Water Surcharge per ccf of water purchased from Tacoma $1.82 $1.82 $1.82 $1.82 Page 130 of 156 Slide 8FCS GROUP Page 131 of 156 AGENDA BILL APPROVAL FORM Agenda Subject: Economic Development Update – 2nd Quarter 2023 (Tate) (15 Minutes) Date: July 3, 2023 Department: Community Development Attachments: Powerpoint Presentation Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background for Motion: Background Summary: Economic Development staff will present on a quarterly basis an update on items being worked on throughout the year. This presentation will focus on the second quarter of 2023. Rev iewed by Council Committees: Councilmember:Baldwin Staff:Tate Meeting Date:July 10, 2023 Item Number: Page 132 of 156 AUBURN VALUES S E R V I C E ENVIRONMENT E C O N O M Y C H A R A C T E R SUSTAINABILITY W E L L N E S S C E L E B R AT I O N CITY COUNCIL PRESENTATION ECONOMIC DEVELOPMENT QUARTER 2 UPDATE PRESENTED BY DEPARTMENT OF COMMUNITY DEVELOPMENT JENN FRANCIS ECONOMIC DEVELOPMENT MANAGER JULY 10, 2023 Department of Community Development Planning ⚫Building ⚫Development Engineering ⚫Permit Center Economic Development ⚫Community Services ⚫Code EnforcementPage 133 of 156 CITY OF AUBURN’S ECONOMIC DEVELOPMENT DIVISION Abid Rahmani Economic Development Coordinator Jenn Francis Economic Development Manager Page 134 of 156 TOPICS TO EXPLORE SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION ❑Downtown Auburn Cooperative & BIA Update ❑Downtown Engagement ❑Downtown Murals ❑Downtown Ribbon Cuttings ❑Explore Auburn Marketing Campaigns ❑Auburn Area Chamber of Commerce ❑Business Connect Events ❑Comprehensive Plan Update ❑Business Outreach Meetings ❑Tourism/Explore Auburn Update ❑Good Neighbor Agreement Meetings ❑National Night Out –Downtown ❑RFP for Web Location Intelligence Application ❑What We are Working on for 3RD Quarter Page 135 of 156 DOWNTOWN AUBURN COOPERATIVE & BIA UPDATE SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION BIA ACTIVITY DURING 2nd QUARTER: APRIL BIA MEETING WAS HELD, BUT THE MAY & JUNE MEETING WERE CANCELLED DUE TO A LACK OF QUORUM. THE BIA HAS FUNDED SEVERAL PROJECTS THAT ARE ADMINISTERED AND IMPLEMENTED BY THE DAC. THE PROJECTS THIS QUARTER INCLUDED PLANTERS & MURALS. Page 136 of 156 DAC & BIA PARTNERSHIP PROJECTS IN THE FUTURE SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION PAINTING: DOOR FRONTS OF SEVERAL BUILDINGS ON MAIN STREET LIGHTING: THE DAC IS PLANNING TO HAVE SOLAR LIGHTS INSTALLED ALONG THE FRONT OF DOWNTOWN BUSINESSES. THE DAC WILL HIRE A CONTRACTOR FOR INSTALLATION AND COMPLETE THE PROJECT IN PHASES. BIKE RACKS: DAC CONSIDERING THE PURCHASE AND INSTALLATION OF UP TO 6 ARTISTIC BIKE RACKS. Page 137 of 156 Monthly Engagement Flyer Topics: •SeeClickFix •Crime Protection Through Environmental Design •Downtown Neighborhood Watch Group •Green River College Small Business Center •Other? DOWNTOWN ENGAGEMENT Page 138 of 156 DOWNTOWN ENGAGEMENT SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION THE 2nd PHASE OF PLACING NEW DOWNTOWN PLANTERS TOOK PLACE ON JUNE 14th, 2023. THE DAC PLANTED PLANTS ON JUNE 17th. SO FAR, 24 PLANTERS HAVE BEEN PLACED IN THE DOWNTOWN AREA, MOSTLY ON THE MAIN STREET. THERE ARE 2 PLANTERS STILL AVAILABLE FOR ADOPTION. AND LOCATIONS STILL NEED TO BE APPROVED BY PUBLIC WORKS. Page 139 of 156 MURALS IN THE DOWNTOWN SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION DAC HAS DRAFTED A CONTRACT FOR BUSINESS OWNERS AND BUILDING OWNERS THAT OUTLINES EXPECTATION AND RELEASE CITY, DAC AND BIA FROM LIABILITY. MANY BUSINESSES HAVE EXPRESSED INTEREST IN HAVING MURALS AND ARE WAITING FOR BUILDING OWNER APPROVAL. EXISTING MURALS: A STREET LEGAL, AGRISHOP, DAC OFFICE AND THE BUILDING ON THE CORNER OF AUBURN WAY N & MAIN STREET. AND….. Page 140 of 156 MURALS IN THE DOWNTOWN SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION A LITTLE KNITTY Page 141 of 156 3 RIBBON CUTTING CEREMONIES HAPPENED EMERALD CITY FASHION IN APRIL ROSES MAKERS MARKET BOUTIQUE IN MAY SMOKES ON MAIN IN JUNE DOWNTOWN BUSINESSES RIBBON CUTTINGS Page 142 of 156 OUTLET COLLECTION MARKETING CAMPAIGN SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Post your Auburn, WA Picture Moment on Instagram & tag us along with the #EXPLOREAUBURN for a chance to win monthly giveaways from local Auburn businesses. Number of Pictures Posted with #EXPLOREAUBURN: 547 (Last Quarter was 342 posts) Page 143 of 156 April Winner May Winner #EXPLOREAUBURN The winning photo is chosen at random. The prize includes 4 tickets to Emerald Downs, PNW Sticker, Explore Auburn logo gear (t-shirt, key chain, post card, etc.) and gift card to Gosanko Chocolate. Page 144 of 156 PACIFIC RACEWAY MARKETING CAMPAIGN SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION NHRA RACE WEEKEND IS JULY 20TH –23RD Page 145 of 156 PACIFIC RACEWAYS FANFEST 2023 SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION NHRA FanFest 2023 will be held at Dave & Busters at The Outlet Collection on Thursday, July 20th from 5:00pm –8:00pm. The event will have food & beverages, drivers autograph signing opportunities, ticket raffles, and a chance to mingle with other NHRA fans. Page 146 of 156 BUSINESS CONNECT EVENTS SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATIONPage 147 of 156 BUSINESS CONNECT EVENTS SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION The Average Attendance: 40 January –Outlet Collection February –MakerSpace March –Joy Hour April –Junior Achievement May –White River Amphitheatre June –PNW Coffee Co. (with over 100 attendees) July –Delayed August –Alpine Ridge Insurance September –Auburn Municipal Airport October –West Valley Deli Page 148 of 156 ECONOMIC DEVELOPMENT ELEMENT -COMP PLAN SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATIONPage 149 of 156 BUSINESS OUTREACH MEETINGS SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATIONPage 150 of 156 TOURISM SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION The Auburn Area Chamber has been working with a consultant to update the Explore Auburn Website. The goal is to have it launched by July 19th prior to the NHRA weekend events. Page 151 of 156 GOOD NEIGHBOR AGREEMENT 2 ND QUARTERLY MEETING AT DON’S PLACE SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION •Meeting Held June 5th •Currently Have 13 Residences and 13 Employees •6 More Units Should Be Opening Soon On The First Floor •Compass Housing is Updating Security •HealthPoint Comes Out Once A Week Page 152 of 156 NATIONAL NIGHT OUT PLANNING TUESDAY, AUGUST 1ST , 2023 DOWNTOWN –CITY HALL PLAZA KICK OFF EVENT LOCATION •FOOD •BEER GARDEN •ROOTBEER FLOAT GARDEN •GAMES •LIVE MUSIC •LANDING SITE FOR DEBRIEF Page 153 of 156 RFP FOR WEB LOCATION INTELLIGENCE APPLICATION UPDATE ON NEXT STEP APPLICATIONS WERE DUE JULY 5TH, 2023. Page 154 of 156 UPCOMING ECONOMIC DEVELOPMENT TOPICS FOR 3 RD QUARTER SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION ❑DOWNTOWN ENGAGEMENT ❑EXPLORE AUBURN WEBSITE UPDATE ❑PACIFIC RACEWAYS UPDATE ❑BUSINESS MEETING UPDATES ❑SELECTING A VENDOR TO PROVIDE TRACKING AND METRICS OF ECONOMIC ACTIVITY ❑COMP PLAN UPDATE ❑NATIONAL NIGHT OUT UPDATE ❑CIVICS ACADEMY UPDATE ❑AND MORE…. Page 155 of 156 AUBURN VALUES S E R V I C E ENVIRONMENT E C O N O M Y C H A R A C T E R SUSTAINABILITY W E L L N E S S C E L E B R AT I O N Department of Community Development Planning ⚫Building ⚫Development Engineering ⚫Permit Center Economic Development ⚫Community Services ⚫Code Enforcement QUESTIONS? JENN FRANCIS, ECONOMIC DEVELOPMENT MANAGER JFRANCIS@AUBURNWA.GOV 253-215-8744 -OFFICE Page 156 of 156