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HomeMy WebLinkAbout5/13/2021 - City Council - City Council Meeting Agenda Packet - Jerrilea Crawford, MayorIn compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (509) 886-6103 (TTY 711). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1.) Page 1 of 1 City Council Workshop East Wenatchee City Hall 271 9th St. NE East Wenatchee, WA 98802 AGENDA Thursday, May 13, 2021, 5:30 PM The meeting will be in person or via Zoom: https://us02web.zoom.us/j/86225704554 The dial-in number is 253 215 8782 and the meeting ID is 862 2570 4554. ____________________________________________________________ 1.Douglas County PUD Presentation by Gary Ivory, General Manager 2.Overview of the Stormwater Utility Program by Garren Melton, Natural Resource Specialist. 3.Shoreline Masterplan Update by Lori Barnett, Community Development Director. Review proposed amendments to the Shoreline Master Program (SMP) initiated as part of the state required SMP Periodic Update & Review process. Amendments are proposed to address updates to the Shoreline Management Act since 2009; minor consistency issues identified by City staff; amendments to be consistent with the Douglas County SMP; and other limited amendments. The amendments are intended to improve the efficiency of SMP enforcement and implementation while maintaining shoreline functions and values. 4.Local Homeless Housing and Assistance program Update by Lori Barnett, Community Development Director. HB 1406 funding, and HB 1590 sales & use tax funding – coordination with the City of Wenatchee. 5.I-pad hand out to Councilmembers by Ike Lasswell, Information Systems Director. 6.Misc. Councilmembers. 7.Adjournment. CITY OF EAST WENATCHEE 271 9TH STREET NE • EAST WENATCHEE, WA 98802 PHONE (509) 884-9515 • FAX (509) 884-6233 05/13/2021 City Council Workshop Agenda Packet Page 1 of 8 Pg. 4 Pg. 2 During the 1960’s Wells Dam was constructed on bedrock in the middle of the Columbia River. Large rocks and other materials were strategically placed into the river to create earthen embankments on the East and West sides of the dam. Since the dam was built, the East Embankment on the Douglas County side of the river has required extra attention. In 1990 a concrete diaphragm wall was installed to help prevent movement and erosion. The District is concerned that a seismic event (earthquake) could further weaken the East Embankment, so we are closely monitoring it for any signs of weakness. The District has engaged engineering firms and a special Board of Consultants to help evaluate embankment failure and to help with preventative activities. Keeping people safe is our main priority. We regularly practice and update our Emergency Action Plan, which would detail a multi-agency response to problems at the dam. Please be aware of your surroundings while recreating on the Wells Reservoir and directly downstream of the Dam. Follow all warning signs and recreate responsibly. Wells Dam East Embankment Wells Dam River channel being filled in to form East Embankment This graph shows Douglas PUD’s average residential cost per kilowatt hour from 1990 to 2020. When adjusted for the consumer price index (inflation), today’s rates are basically the same as they were thirty years ago! 1990 Power Rates? Yes Please! 05/13/2021 City Council Workshop Agenda Packet Page 2 of 8 Schedule 3, Street Lighting And Area Lighting Service Non-Metered District Maintained Street Light Monthly Rate: Lamp Rating 200 watt or less $10.23 400 watt or more $17.79 LED $5.55 Non-Metered Customer Owned and Maintained Street Light Monthly Rate: Lamp Rating 200 watt or less $2.42 400 watt or more $3.84 LED $1.71 Customer Choice Options: Schedule 4, Power Delivery Service (This schedule is for larger customers that will be using District power lines for delivery of purchased power.) Delivery Variable Charge: $0.006 per kWh Delivery Fixed Charge: $7.11 per kW of demand Integration Charge: $8.50 per kW x 3% avg. load $8.50 per kW x difference between avg. load and peak load Schedule 5, Alternate Renewable Resource Service (To encourage new renewable resources, available to general service customers) Charge: $7.50 per 100 kWh increment Schedule 6, Wholesale Communication Service Please see our website for more details: www.douglaspud.org, Services, Customer Service Policies Schedule 1, General ServiceA) Residential and Commercial Services:Basic charge: $13.39 per month Energy charge: $0.0233 - first 25,000 KWH $0.0247 -25,001 to 49,999 KWH $0.0251 -50,000 KWH and over Demand charge: $2.06 per kilowatt of demand in excess of 50 kilowatts. B) Wind Machine Services: Between the months of April and July the following rates will apply.Basic charge: $13.39 per month Energy charge: $0.0233 per KWH Demand charge: $3.91 per kilowatt of demand in excess of 30 kilowatts. C) Domestic Pump Services: Between the months of May and October the following rates will apply.Basic charge: $13.39 per month Energy charge: $0.0233 per KWH Schedule 1 D&E effective date July 1, 2021 D) Blockchain & Low Tier Data Services:Basic charge: $17.30 per month Energy charge: $0.0310 - first 25,000 KWH $0.0319 -25,001 to 49,999 KWH $0.0325 -50,000 KWH and over Demand charge: $2.66 per kilowatt of demand in excess of 50 kilowatts. E) Data Center Services:Basic charge: $15.05 per month Energy charge: $0.0270 - first 25,000 KWH $0.0278 -25,001 to 49,999 KWH $0.0282 -50,000 KWH and over Demand charge: $2.32 per kilowatt of demand in excess of 50 kilowatts. Schedule 2, Irrigation ServiceA) Seasonal Rate: Between the months of March and October the following rates will apply.Basic charge: $8.24 per month Energy charge: $0.0129 per KW Demand charge $22.15 per kW per season Let’s talk Power Rates Douglas PUD Watt’s News - May 2021 Public Power benefits the communities they serve. Not only do we provide utility service on a not-for-profit basis, customers elect local commissioners who set rates and hire a manager to direct the operations of the utility. This provides local control over the utility and responsiveness to community needs. Collecting fair and reasonable rates allows the District to reinvest in a reliable and safe power system. For decades, PUD customers have invested in the power lines, switchyards and substations that serve our local residents and small businesses. That’s right! The rates you pay build and maintain the infrastructure necessary to make the whole system work. Thank you for partnering with us to help our communities grow and prosper. 05/13/2021 City Council Workshop Agenda Packet Page 3 of 8 CITY OF EAST WENATCHEE PUBLIC WORKS DEPARTMENT 271 9th Street NE * East Wenatchee, WA 98802 Phone 509.884.1824 * Fax 509.884.6233 gmelton@eastwenatcheewa.gov MEMORANDUM To: Mayor Crawford and City Council From: Garren Melton, Natural Resource Specialist Date: May 13, 2021 Subject: Overview of the Stormwater Utility Program Introduction In 1998 the City of East Wenatchee (City) and Douglas County (County) entered into an interlocal agreement to operate a joint stormwater utility (utility). The purpose of the utility was to provide flow control to alleviate flooding within the utility’s boundaries. The initial rate was set at $35 per 2,750 square feet of impervious area, or approximately one residential parcel. Following the introduction of the Municipal Stormwater Permit (permit) in 2007, the rate was increased to $40 per unit in 2010, and then to $45 in 2011. This increase was to mitigate the additional requirements imposed by the permit. Since this increase, the permit has undergone four update cycles, with increased requirements each cycle, while the fee has remained at $45. The current revenue of the utility is around $520,000. At its inception the utility’s purpose was to complete small works and capital projects to provide flood mitigation for its service area. With the introduction of the permit, the revenues have shifted from funding projects, to meeting permit requirements. In addition, the SWU fund has, and is, being utilized for matching funds for transportations grants. Program Elements Permit Requirements: The City has several expenditures that it is obligated to make to meet permit requirements, totaling around $397,000 annually. This total is about $140,000 higher than previous years because of the City’s newly established ER&R Fund, potentially needing to utilize the City of Wenatchee’s decant facility, and B&O taxes. The following chart shows the breakdown of these expenditures: 05/13/2021 City Council Workshop Agenda Packet Page 4 of 8 Page | 2 Figure 1: Total Permit related expenditures for the Utility. Capital and Small Improvement Projects Capital Improvement Projects (CIPs) are large projects that typically need to be engineered and provide a regional benefit. The last stormwater specific CIP was the Canyon A Channelization, which fit a 54” concrete pipe through the Central Business District around 2010. This project is still being paid for via the $76,000 debt service payments. Historically this fund has also been the funding source for large equipment purchases. More recently, stormwater funding has been used to fund a portion of the City’s match on large grants, such as on the 2017 N Baker Ave Reconstruction, the City’s current project on 10th St NE, and the Safe Routes to School projects on 5th St NE. Small Improvement Projects are best characterized as the answer to “What is my $45 paying for?” These are typically small to medium sized projects ($5,000-$50,000) that are designed to fix localized flooding issues. These projects are usually performed by City maintenance staff and provide low-cost options to help provide relief to taxpayer’s properties that experience flooding. Examples from the past year includes installing R-Tanks along S Iowa Ave, adding a catch basin on N Dolfay Ave, and adding a catch basin and conveyance line on N Fairview Ave. Unfortunately, Small Improvement Projects are also the only portion of the budget where staff can easily make cuts to stay under budget. Annual project and large equipment related expenses are broken down by year in Figure 2. ER&R Payments $57,000 Rental Equipment $25,000 Decant Facility Fees $75,000 B&O Tax $8,000 Utilities, Fees, Insurance $32,000 Small Tools & Supplies $20,000 Sweeping $50,000 Vactoring $10,000 NRS Salary+Benefits $70,000 Education & Outreach $10,000 Spill Cleanup $10,000 Misc $30,000 Breakdown of Essential Annual Expenditures (Total: $397,000) 05/13/2021 City Council Workshop Agenda Packet Page 5 of 8 Page | 3 Figure 2 Breakdown of Total Annual Expenses Due to permit requirements increasing, and the City’s success in securing large grants in the past decade, the SWU fund has been outspending its revenue on a consistent basis since 2013. The Utility is committed to $728,000 for 10th St NE, and another $342,000 for 5th St NE. In 2020 and 2021 revenue was reduced due to the City using stormwater utility dollars to pay its own utility fee. Figure 3: Annual expenditures vs Revenue. 2021 and 2022 were extrapolated based on current budget information. $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*2022* Capital and Small Improvement Project Annual Expenditures Annual Project Expenditures Average Expenditure ($410,000) $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*2022* SWU Expenditures Versus Revenue Total SWU Expenditures SWU Revenue 05/13/2021 City Council Workshop Agenda Packet Page 6 of 8 Page | 4 5 Year SWU Fund Projection The City cannot continue utilizing its SWU as it has in the past. Based on current budgeting information, the only way for the fund to stay sustainable is to completely cut both small and capital improvement projects. Even with this measure the utility will be operating at a deficit. If the City continues operating the utility based on the recommendations made in the 2015 Draft Comprehensive Plan, the utility fund will be negative by 2025. It should also be considered that the Draft Plans suggested spending on projects is significantly lower than the average amount the City has spent between 2011 and 2022 ($300,000 vs $410,000). At this time the City has RH2 Engineering under contract to update the Stormwater Comprehensive Plan to evaluate the City’s stormwater project needs, and will be conducting a financial analysis to determine a number of rate options based on what level of service the City aims to offer. Until funding is addressed services can be cut to ensure the funds sustainability but is not recommended as a long-term solution. Essential Expenditures Only 2021 2022 2023 2024 2025 Revenue $ 520,000 $ 520,000 $ 520,000 $ 520,000 $ 520,000 Essential Expenditures $ (495,000) $ (514,800) $ (535,392) $ (556,808) $ (579,080) 5th Street Match $ (342,000) 10th Street Match $ (728,000) Net $ (703,000) $ (336,800) $ (15,392) $ (36,808) $ (59,080) SWU Fund Balance $ 1,341,890 $ 1,005,090 $ 989,698 $ 952,890 $ 893,810 Essential Expenditures, Small Works and Capital Improvement Projects 2021 2022 2023 2024 2025 Revenue $ 520,000 $ 520,000 $ 520,000 $ 520,000 $ 520,000 Essential Expenditures $ (495,000) $ (514,800) $ (535,392) $ (556,808) $ (579,080) 5th Street Match $ (342,000) 10th Street Match $ (728,000) Small Works Projects $ (100,000) $ (100,000) $ (100,000) $ (100,000) $ (100,000) Capital Improvement $ (200,000) $ (200,000) $ (200,000) Net $ (803,000) $ (436,800) $ (315,392) $ (336,808) $ (359,080) SWU Fund Balance $ 1,241,890 $ 805,090 $ 489,698 $ 152,890 $ (206,190) Table 1 05/13/2021 City Council Workshop Agenda Packet Page 7 of 8 Page | 5 Potential Additional Revenue: The proposed annexation that is still under discussion between the City and Douglas County would bring in an additional $45,040.50 of Stormwater Utility Revenues. This amount will allow the City to meet permit and debt service obligations through 2024 without operating at a deficit but does not allow for any small or capital improvement projects. To continue using the Stormwater Utility Fund to meet Grant matches, relieve localized flooding for taxpayers, and construct projects off the stormwater CIP list, a rate increase will likely be needed. If the initial $35 dollar fee in 1998 had an annual inflation factor attached to it, the City’s current SWU rate would be $57 per year, or $4.75 per month, per unit. Here is how the City to compares to other municipalities regarding SWU rates by month: Figure 4 $8.02 $10.77 $0 $2 $4 $6 $8 $10 $12 $14 Yakima County East Wenatchee Douglas County Richland Colville Spokane Leavenworth Kennewick Chelan County Moses Lake Pasco City of Yakima Wenatchee (2020 Existing) Wenatchee (2021) Ellensburg Walla Walla 05/13/2021 City Council Workshop Agenda Packet Page 8 of 8