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HomeMy WebLinkAboutUAC Packet 06/13/2023June 13, 2023 Port Angeles UAC Meeting Page 1 JUNE 13, 2023 City of Port Angeles UTILITY ADVISORY COMMITTEE Agenda This meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City staff have the option to attend the meeting in person, in Council chambers at City Hall located at 321 East 5th Street, Port Angles, or remotely via telephone or video link. The Chair may determine the order of business for a particular UAC meeting. The agenda should be arranged to best serve the needs and/or convenience of the UAC and the public. The Chair will determine time of break. Hearing devices are available for those needing assistance. The items of business for regular UAC meetings may include the following: A. Call to Order – Regular Meeting at 3:00 p.m. B. Public Comment The Utility Advisory Committee (UAC) desires to allow the opportunity for Public Comment. However, the business of the City must proceed in an orderly and timely manner. Visit https://www.cityofpa.us/Live-Virtual-Meetings to learn how to participate during public comment and or watch the meeting live. Written public comments can be submitted to: gking@cityofpa.us, comments will not be read aloud but will be made part of the record. Comments should be received by 10:00 a.m. Tuesday, June 13, 2023. For audio only please call: 1-844-992-4726 Use access code: 2557 257 1266 Once connected, press *3 to raise your virtual hand if you wish to make a comment or public testimony. You will be notified when it is your turn to speak. This access code is good for the June 13, 2023 meeting only. If you are joining in through the Webex link: https://cityofpa.webex.com/cityofpa/j.php?MTID=me844eb81a5d32f61c0d0385297548914 and wish to make a comment or public testimony, please use the “raise your hand” feature in Webex. You will be notified when it is your turn to speak. Members of the public may address the UAC at the beginning of any Regular Meeting under "Public Comment." The UAC desires to allow the opportunity for Public Comment. However, the business of the City must proceed in an orderly, timely manner. At any time, the presiding officer, in the presiding officer's sole discretion, may set such reasonable limits as are necessary to prevent disruption of other necessary business. At its most restrictive, Public Comment shall be limited to a total of 15 minutes for the Public Comment period. Individuals may speak for three (3) minutes or less, depending on the number of people wishing to speak. If more than 20 people are signed up to speak each speaker may be allocated two (2) minutes. Individuals who are residents of the City or own businesses within the City will be called to speak first, with preference given to those who wish to speak to an item on the meeting’s agenda. If time remains, the presiding officer will call other individuals wishing to speak, generally in the order in which they have signed in. If time is available, the presiding officer may call for additional unsigned speakers. Persons speaking shall state their name, whether they reside within the City limits, whether they have any other pertinent connection to the City, and whether they are appearing as the representative of an organization. Excerpts: Council Rules of Procedure Section 12 June 13, 2023 Port Angeles UAC Meeting Page 2 C. Late Items To be placed on this or future agendas, including any executive session needed during or at the end of the meeting. D. Minutes May 9, 2023 | Approve E. Capital Facilities Plan Presentation by Finance Director Carrizosa F. Next Meeting July 11, 2023 Adjournment June 13, 2023 Port Angeles UAC Meeting Page 3 I. A. Call to Order Chair Mattias Järvegren called the meeting to order at 3:03 pm. B. Roll Call UAC Assigned Councilmembers Present: Mayor Kate Dexter, Councilmember Amy Miller and Councilmember Lindsey Schromen-Wawrin UAC Members Present: Chair Mattias Järvegren, Robert Kajfasz, Richard French, and Terry Nishimoto UAC Members Absent: Laura Dodd. Staff Present: Public Works Director Mike Healy, City Engineer Jonathan Boehme, Lucio Baack, Finance Director Sarina Carrizosa, Daniel Harris, Gregg King, Attorney Chris Cowgill, and City Attorney William Bloor. II. Approval of Minutes Member Schromen-Wawrin moved to approve the March 14, 2023, minutes. Mayor Kate Dexter seconded the motion. Chair Mattias Järvegren asked if there was unanimous consent, hearing no opposition, the motion carried 7-0 III. Public Comment: The public is invited to provide written comments via e-mail prior to the meeting, call- in and via WebEx. There was no public comment. IV. Projects: Wastewater Capacity Improvements update Lucio Baack, Engineer II, provided an update on the Wastewater Capacity Improvement project. The project sewer line capacity and resiliency in the City. Proposals have been received and are being evaluated. Construction is projected to be completed in 2024. UTILITY ADVISORY COMMITTEE MEETING Virtual Meeting Port Angeles, WA 98362 May 09, 2023 3:03 p.m. June 13, 2023 Port Angeles UAC Meeting Page 4 V. Contracts: BPA Provider of Choice contract update Ryan Neil, legal counsel for the Western Public Agencies group of which the City of Port Angeles is a member, gave a presentation on the next Bonneville Power Administration (BPA) wholesale power purchase and transmission contracts. The current contract which began in 2008 ends on 9/30/2028. BPA has presented a few draft concepts and has held many meetings with affected groups. A draft proposal will be issued in July 2023 and more meetings and listening sessions will continue. BPA would like to have contracts signed with all parties by 2025. Key takeaways of the current BPA proposal: • BPA uses a tiered rate methodology similar to the current contract. • BPA would continue a take-or-pay power contract. • BPA would reallocate the federal system among public utilities which would result in Port Angeles loosing valuable Tier I headroom and potentially requiring some more expensive Tier II power purchases. • There are a few proposals in play which would give a little headroom back to the City. UAC members requested additional updates events develop. VI. Budgeting and Financial: Capital Financial Plan (CFP) presentation Finance Director Sarina Carrizosa noted the late time and deferred to the UAC if she should present or if the UAC wished to wait. Discussion ensured as to what date to hold a follow up meeting. Councilmember Lindsey Schromen-Wawrin made a motion to table the Capital Facilities Plan presentation until a June UAC meeting and return to a monthly UAC meeting schedule. Richard French seconded. Further discussion ensured on the advantages and disadvantages of moving to a monthly schedule. Chair Mattias Järvegren asked if there was unanimous consent, hearing no opposition, the motion carried 7-0 VII. Calendar of Actions & Meetings: The Capital Financial Plan (CFP) presentation will be held at the June 13, 2023 UAC meeting. VIII. Next Meeting Date: June 13, 2023 IX. Adjournment: 4:44 p.m. ___________________________ __________________________________ Chair Mattias Järvegren Gregg King Power Resource Manager June 13, 2023 Port Angeles UAC Meeting Page 5 Calendar of Actions and Meetings • Capital Facilities Plan • 2024 Budget • Cost of Service Studies – Electric, Storm Water, and Solid Waste • Utility Rates – as needed June 13, 2023 Port Angeles UAC Meeting Page 6 Next UAC Meeting July 11, 2023 3:00 – 5:00 PM This meeting will be conducted as a hybrid meeting. 2024 –2029 UTILITIES CAPITAL FACILITIES PLAN JUNE 13, 2023 UTILITY ADVISORY COMMITTEE CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 2 Overview of Capital Facilities Planning and Process 2022 Completed Projects Utility Funding Sources and Expenses Combined Cash Flows by Fund Citywide Utility New Project Listing Next Steps Questions & Discussion AGENDA CFP/TIP PROCESS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 3CAPITAL FACILITIES PLANNING Provides adequate public facilities to serve existing and new development. Reduces the cost of serving new development with public facilities. Ensures that these facilities will be in place when development occurs. Helps the City maximize our limited resources efficiently by planning for our needs, prioritizing and coordinating projects and identifying funding options.CFP/TIP PROCESS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 4 JAN. -MARCHDepartmental development and review MARCH -APRILDirector Prioritization and City Manager review APRILFinance Department prepares cash analysis, funding options and CFP/TIP Document MAYCFP/TIP Reviewed by City Council, Utility Advisory Committee (UAC) and Port Angeles Citizens. Input is provided by these groups.JUNECouncil conducts the 1st and 2nd Public Hearing and reading of the CFP/TIP resolution for consideration of adoption TIP is filed with the State THE CFP/TIP PROCESS CFP/TIP PROCESS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 5THE CFP PROCESS This stage of the CFP process is the Utility Advisory Committee’s opportunity to: Learn about capital projects, funding sources and costs. Discuss the CFP Review and revise priorities if needed.CFP/TIP PROCESS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 6 Little to no rate impact. Set aside cash that is equal to the prior years’ depreciation. Leverage projects. No new debt. Focus on preventable maintenance to increase asset life. Complete streets initiative.* As approved during the 2018 –2023 CFP process. * This was approved with the adoption of Ordinance #3615 on December 9, 2018 CITY COUNCIL DIRECTIVES CFP/TIP PROCESS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 7INFLATION IMPACTING PROJECTS Rising cost of inflation is causing project expenses to push the boundaries of affordability. Evident in every area of the CFP. Total funded project cost increase in the utility funds combined of $11.4 million since the 2023-2028 CFP. Balancing low impacts to utility rates with critical and costly capital needs. Impacts to the City’s ability to deliver essential services to the community. Changes to project scope to maintain affordability.CFP/TIP PROCESS PRESENTATION TITLECAPITAL FACILITIES PLAN -UAC WORKSESSION –JUNE 13, 2023 8CAPACITY The Strategic Plan approved by City Council in March of 2021includes an Issue of Critical Importance regarding Capacity, with a goal to: “Build capacity of the City to better meet the community’s needs, invest in improvements, focus on improving economic outcomes and maintain what we have.” A key focus area in this category is to reduce the CFP backlog. Capacity was also a primary focus area in the City’s workplan. Additional resources are in the 2023 Budget as recommended by the UAC and approved by City Council to allow completion of projects in the Water and Wastewater funds.CFP/TIP PROCESS PRESENTATION TITLECAPITAL FACILITIES PLAN -UAC WORKSESSION –JUNE 13, 2023 9CAPACITY The 2024-2029 CFP also took into consideration the ability of Staff to complete projects as outlined in the CFP. While funding may have been identified for projects staff continues to work on ensuring there is adequate staff to complete the critical capital needs of the City. Without these additional resources projects will move at a slower pace or be delayed in total. Balancing staffing needs with affordability to complete projects should be carefully weighed. In each section personnel cost and need has been estimated.CFP/TIP PROCESS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 10CAPACITY CFP/TIP PROCESS16,241 23,905 19,807 10,999 8,341 10,357 11,025 12,480 12,480 12,480 12,480 12,480 12,480 12,480 1.8 5.5 3.5 (0.7)(2.0)(1.0) (0.7) (4.0) (2.0) 0.0 2.0 4.0 6.0 - 5,000 10,000 15,000 20,000 25,000 30,000 2023 2024 2025 2026 2027 2028 2029 ESTIMATED CITYWIDE PERSONNEL PROJECT HOURS Estimated Personnel Hours Needed to Complete Plan Current Staffing Hours in the Budget Total Additional Staff Required to Complete Projects (Yearly) CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 11CAPACITY CFP/TIP PROCESSESTIMATED PERSONNEL COSTS FOR PROJECT COMPLETION 2023 2024 2025 2026 2027 2028 2029470,420 1,151,594 729,739 372,090 297,236 494,436 195,866 336,748 445,958 526,991 196,000 79,027 88,704 65,450 357,476 129,043 185,550 99,160 278,026 307,463 122,617 25,480 196,766 28,000 112,000 - - - 73,146 302,311 223,923 42,630 15,400 78,325 447,025 TOTAL PLANNED PERSONNEL COSTS 1,263,271 2,225,671 1,694,202 821,880 669,689 968,929 830,958 SOLID WASTE STORMWATER ELECTRIC WATER WASTEWATER One additional FTE is estimated for completion of the 2024-2029 CFP as averaged across all years. However, in years when large projects are included additional staffing will be required for completion. PRESENTATION TITLECAPITAL FACILITIES PLAN -UAC WORKSESSION –JUNE 13, 2023 12CAPACITY Though the CFP/TIP presented includes a large number of projects staff has prepared the plan to consider: Many projects listed are in a planning or due diligence phase. Several projects are multi-year in nature and will be seen in more than one year until completion. Recognizing that the projects listed are critical needs that should not be deferred. Projects listed take into consideration the possibility to seek grant funding. CFP/TIP PROCESS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 132022 COMPLETED PROJECTS COMPLETED PROJECTSPROJECTS COMPLETED IN 2022 Actual BudgetCAPM1 Medic 1 revolving 15,866 - FD0118 Defibrillators 71,451 73,000 TOTAL COMPLETED PROJECTS 87,317 73,000 PROJECTS COMPLETED IN 2022 Actual BudgetCLCAPDistribution/Overhead/Poles/Yard lighting 96,735 150,000 CL0620 Electric Vehicle Charging Station 48,140 48,000 CL0919 "A" Street Substation Switchgear Replacement 297,639 500,000 TOTAL COMPLETED PROJECTS 442,514 698,000 ELECTRIC PROJECTS MEDIC 1 PROJECTS COMPLETED IN 2022 Actual BudgetDR0119N Street Outfall Improvement 444,096 482,500 TOTAL COMPLETED PROJECTS 444,096 482,500 STORMWATER PROJECTS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 142022 COMPLETED PROJECTS COMPLETED PROJECTSPROJECTS COMPLETED IN 2022 Actual BudgetCAPWTGeneral Water Equipment 1,685 50,000 WT0521 Water Main Replacement Village/Lind 122,326 122,400 TOTAL COMPLETED PROJECTS 124,011 172,400 PROJECTS COMPLETED IN 2022 Actual BudgetCAPWWWastewater Treatment Equipment 67,600 129,900 TOTAL COMPLETED PROJECTS 67,600 129,900 WATER PROJECTS WASTEWATER PROJECTS PROJECTS COMPLETED IN 2022 Actual BudgetSW0421Transfer Station 1,665,853 1,627,800 SW0117 Landfill Scale Software 187,774 184,000 TOTAL COMPLETED PROJECTS 1,853,627 1,811,800 SOLID WASTE PROJECTS UTILITY ADVISORY COMMITTEE –JUNE 13, 2023 15 CAPITAL FACILITIES PLANUTILITY REVENUE, SPENDING & CASH FLOWS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 16FUNDING SOURCES FUNDING SOURCESRevenues 2023 2024 2025 2026 2027 2028 2029Electric850,000 4,550,000 850,000 950,000 950,000 1,050,000 1,050,000 Medic 1 50,500 50,500 50,500 50,500 50,600 50,600 50,600 Solid Waste (incl debt)162,100 737,300 391,000 392,700 393,300 390,000 396,700 Stormwater 443,000 667,000 476,000 910,000 494,000 929,000 2,727,000 Wastewater and CSO (incl debt)1,350,400 1,987,300 1,295,200 1,436,100 1,603,700 1,615,200 1,789,200 Water 1,476,000 2,775,000 3,225,000 2,100,000 1,100,000 1,200,000 1,200,000 Totals 4,332,000 10,767,100 6,287,700 5,839,300 4,591,600 5,234,800 7,213,500 Revenue by Type 2023 2024 2025 2026 2027 2028 2029Utility 3,271,000 3,677,300 3,981,400 4,307,100 4,476,000 4,714,500 4,925,900 Grant 10,000 384,800 2,200,000 425,000 - 425,000 2,015,000 General Fund - 15,000 15,000 15,000 15,000 15,000 15,000 Donations 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Interest 50,000 40,000 41,300 42,200 50,600 30,300 9,600 Electric from Reserves - 3,700,000 - - - - - Water from Reserves 651,000 1,850,000 - 1,000,000 - - - Stormwater from Reserves - 200,000 - - - - - Wastewater from Reserves 300,000 850,000 NICE Funds - - - - - - 198,000 Totals 4,332,000 10,767,100 6,287,700 5,839,300 4,591,600 5,234,800 7,213,500 CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 17REVENUES BY TYPE & YEAR FUNDING SOURCES - 2 4 6 8 10 2023 2024 2025 2026 2027 2028 2029MillionsREVENUES BY TYPE & YEAR Utility Grant Interest General Fund Donations Electric from Reserves Water from Reserves Stormwater from Reserves Wastewater from Reserves NICE Funds CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 18SPENDING PROJECT SPENDING Budget Expenditures 2023 2024 2025 2026 2027 2028 2029Electric2,940,000 5,449,900 6,200,000 3,400,000 1,150,000 1,250,000 550,000 Medic 1 - - 40,000 224,700 - - - Solid Waste (incl debt)230,000 1,741,300 200,000 400,000 400,000 - - Stormwater 480,000 2,471,300 1,606,000 547,000 110,000 800,000 3,139,000 Wastewater and CSO (incl debt)7,174,600 1,309,100 1,355,800 934,400 2,810,700 3,078,200 1,197,500 Water 3,385,600 3,612,700 5,297,600 2,050,000 614,500 683,600 517,500 Totals 14,210,200 14,584,300 14,699,400 7,556,100 5,085,200 5,811,800 5,404,000 CAPITAL FACILITIES PLAN CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 19SPENDING BY TYPE & YEAR PROJECT SPENDING - 2 4 6 8 10 12 14 2023 2024 2025 2026 2027 2028 2029MillionsSPENDING BY PROJECT TYPE AND YEAR Electric Solid Waste (incl debt)Stormwater Wastewater and CSO (incl debt)Water Medic 1 CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 20CASH BALANCES CASH BALANCES - 2 4 6 8 10 12 14 Medic 1 Electric Solid Waste Stormwater Wastewater WaterMillionsCASH BALANCES PROJECTED BY PROJECT TYPE 2023 Beginning Cash 2029 Projected Cash CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 21CASH RATIO CASH BALANCES30.0 1.2 2.3 2.3 0.3 1.1 - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Medic 1 Electric Solid Waste Stormwater Wastewater Water Cash Ratio to Depreciation CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 22CHANGES FROM THE 2023 –2028 CFP/TIP CHANGES FROM PRIOR109,441,300 (3,367,600) 4,404,000 3,120,000 10,055,000 11,400,700 4,534,500 139,587,900 NEW FUNDED NEW UNFUNDEDCOST INCREASES: FUNDED PROJECTS UNFUNDED PROJECTSPROPOSED 2024-2029 CFP COMPARISON TO THE 2023 - 2028 CFP ADOPTED 2023-2028 CFPLESS COMPLETE PROJECTS2029 ADDITIONSNEW PROJECTS: CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 23ELECTRIC CASH FLOW CASH FLOWS2023 2024 2025 2026 2027 2028 2029Beginning Cash Balance 13,022,083 10,932,083 10,032,183 4,682,183 2,232,183 2,032,183 1,832,183 Funding sources:Electric Rates Transfer 800,000 800,000 800,000 900,000 900,000 1,000,000 1,000,000 For building from Reserves - 3,700,000 - - - - - Adjustments for cash timing - - - - - - - General Fund - - - - - - - Donations/Insurance - - - - - - - Other Funds/Grants 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Spending:Project cost (2,940,000) (5,449,900) (6,200,000) (3,400,000) (1,150,000) (1,250,000) (550,000) Ending Cash Balance 10,932,083 10,032,183 4,682,183 2,232,183 2,032,183 1,832,183 2,332,183 Depreciation 1,665,564 1,858,313 1,984,710 1,985,323 1,986,409 1,950,941 1,879,158 Depreciation to Cash Ratio 6.56 5.40 2.36 1.12 1.02 0.94 1.24 CASH FLOW ANALYSIS An increase to the transfer from the Electric operating fund is planned in 2026 and in 2028. It is anticipated these increases will correspond with debt maturity to reduce, or eliminate the impact to rates. $3.7 million transfer from excess operating reserves is planned in 2024 to complete the Light Operations building. CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 24WATER CASH FLOW CASH FLOWS2023 2024 2025 2026 2027 2028 2029Beginning Cash Balance 5,346,683 3,437,083 2,599,383 526,783 576,783 1,062,283 1,578,683 Funding sources:Water Rates 825,000 925,000 1,025,000 1,100,000 1,100,000 1,200,000 1,200,000 Grants - - 2,200,000 - - - - Bonds/Interest/Other - Excess Operating Reserve 1,500,000 - 1,000,000 General FundDonationsOther Funds -NPS Reserves for Elwha Facil 651,000 350,000 Spending: j Costs (3,385,600) (3,612,700) (5,297,600) (2,050,000) (614,500) (683,600) (517,500) Ending Cash Balance 3,437,083 2,599,383 526,783 576,783 1,062,283 1,578,683 2,261,183 Depreciation 1,772,395 1,868,781 1,975,719 2,093,193 2,143,252 2,167,641 2,147,466 Depreciation to Cash Ratio 1.94 1.39 0.27 0.28 0.50 0.73 1.05 CASH FLOW ANALYSIS An increase to the water rate will be necessary to complete critical projects. This is estimated at less than 2.0% in 2025 and 2026 and less than 1.0% in 2028. A total of $2.5 million is planned to transfer from excess operating reserves to offset large planned projects and prevent the need for higher rate increases. CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 25WASTEWATER/CSO CASH FLOW CASH FLOWS2023 2024 2025 2026 2027 2028 2029Beginning Cash Balance 7,494,205 1,670,005 2,348,205 2,287,605 2,789,305 1,582,305 119,305 Funding sources:Wastewater Rates 978,500 1,007,900 1,150,000 1,150,000 1,300,000 1,300,000 1,375,000 GrantsBonds/Interest/Other 37,400 28,100 39,400 38,400 46,900 26,600 2,000 General FundDonationsTransfer from excess operating reserves 300,000 850,000 Combined Sewer Overflow Surcharge 2,349,600 2,349,600 2,349,600 2,349,600 2,349,600 2,349,600 2,349,600 Spending:Debt Payments (projected)(2,315,100) (2,248,300) (2,243,800) (2,101,900) (2,092,800) (2,061,000) (1,937,400) Project Costs (7,174,600) (1,309,100) (1,355,800) (934,400) (2,810,700) (3,078,200) (1,197,500) Ending Cash Balance 1,670,005 2,348,205 2,287,605 2,789,305 1,582,305 119,305 711,005 Depreciation 2,015,232 2,190,589 2,152,790 2,110,169 2,190,904 2,277,891 2,253,133 Depreciation to Cash Ratio 0.83 1.07 1.06 1.32 0.72 0.05 0.32 CASH FLOW ANALYSIS An increase to the transfer from the Wastewater operating fund is planned in 2025 and 2027 of 2.0% and 1.0% in 2029. $1.15 million transfer from excess operating reserves is planned in 2023 and 204 combined to complete projects without additional rate increases. Allowing cash to depreciation level to fall below the 1:1 requirement to prevent large increases to rates before debt begins to mature. CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 26SOLID WASTE CASH FLOW CASH FLOWS2023 2024 2025 2026 2027 2028 2029Beginning Cash Balance 1,262,431 1,194,531 190,531 381,531 374,231 367,531 757,531 Landfill Surcharge*1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 Funding sources:Solid Waste Rates 50,000 250,000 300,000 300,000 300,000 300,000 300,000 Grants 10,000 384,800 - - - - - Bonds (net used & paid)(1,193,900) (1,192,800) (1,194,300) (1,194,500) (1,193,800) (1,197,100.0) (1,194,300.0) General Fund - - - - - - Donations - - - - - - - Interest Income 12,600 11,900 1,900 3,800 3,700 3,700 7,600 Spending:- Project Cost (230,000) (1,741,300) (200,000) (400,000) (400,000) - - Ending Cash Balance 1,194,531 190,531 381,531 374,231 367,531 757,531 1,154,231 Depreciation 444,930 444,930 471,596 498,263 498,263 496,821 496,821 Cash/Depreciation 2.68 0.43 0.81 0.75 0.74 1.52 2.32 CASH FLOW ANALYSIS An estimated 3.0% increase is planned in 2024 to the Solid Waste rates to accommodate changes in projects and additions to assets that occurred as a result of transitioning to City operations. CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 27STORMWATER CASH FLOW CASH FLOWSBUDGET 2023 2024 2025 2026 2027 2028 2029Beginning Cash Balance 3,089,060 3,052,060 1,247,760 117,760 480,760 864,760 993,760 Funding sources:Utilities Reserves 443,000 452,000 461,000 470,000 479,000 489,000 499,000 Grants - - - 425,000 - 425,000 2,015,000 Bonds - - - - - - - General Fund - 15,000 15,000 15,000 15,000 15,000 15,000 Use of Reserves - One Time Transfer - 200,000 - - - - - Other Funds (NICE Funds)- - - - - - 198,000 Spending:Project cost (480,000) (2,471,300) (1,606,000) (547,000) (110,000) (800,000) (3,139,000) 3,052,060 1,247,760 117,760 480,760 864,760 993,760 581,760 Depreciation 168,081 176,499 236,872 236,257 241,959 243,362 252,290 Depreciation to Cash Ratio 18.16 7.07 0.50 2.03 3.57 4.08 2.31 Ending Cash Balance CASH FLOW ANALYSIS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 28MEDIC 1 CASH FLOW CASH FLOWSCASH FLOW ANALYSIS BUDGET 2023 2024 2025 2026 2027 2028 2029Beginning balance 1,313,746 1,364,246 1,414,746 1,425,246 1,251,046 1,301,646 1,352,246 Funding sources:Utilities 50,500 50,500 50,500 50,500 50,600 50,600 50,600 Spending:- - - - - - - Capital Investment - - (40,000) (224,700) - - - Ending Cash Balance 1,364,246 1,414,746 1,425,246 1,251,046 1,301,646 1,352,246 1,402,846 Projected Depreciation 51,342 40,503 45,903 35,121 46,833 46,833 46,833 Cash to depreciation ratio 26.57 34.93 31.05 35.62 27.79 28.87 29.95 UTILITY ADVISORY COMMITTEE –JUNE 13, 2023 29 CAPITAL FACILITIES PLANNEW AND UPCOMING PROJECTS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 30NEW PROJECTS NEW PROJECTSNumber Title ELECTRIC CL0123 Overhead Reconductoring - 2024 New 7 New 150,000 - - - CL0223 Overhead Reconductoring - 2025 New 9 New 250,000 - - - CL0323 Overhead Reconductoring - 2026 New 11 New 250,000 - - - CL0523 Underground Cable Replacement - 2029 New 19 New 250,000 - - - CL0423 Overhead Reconductoring - 2029 New 22 New 150,000 - - - TOTALS - 1,050,000 - - - Number Title WATERWT0123 11th Street ROW Tumwater Creek Crossing New 13 New 60,000 60,000 60,000 - WT0223 14th Street ROW Tumwater Creek Crossing New 14 New 60,000 60,000 60,000 - WT0323 Decant Facility Equipment New UF New 70,000 - - - WT0423 Advanced Metering Management New UF New 3,000,000 - - - TOTALS - 3,190,000 120,000 120,000 - 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING WATER PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING ELECTRIC PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL 22 New Projects Totaling $13.2 million 12 of which are unfunded at $10.1 million CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 31NEW PROJECTS NEW PROJECTSNumber Title WASTEWATERWW0123Front/Georgiana Capacity Improvement New UF New 3,800,000 - - - WW0223 New Sewer Washington Street (Park to 8th)New UF New 2,000,000 - - - WW0323 Decant Facility Equipment New UF New 70,000 - - - WW0423 WWTP Knife Gate Valve Installations New UF New 75,000 - - - WW0523 WWTP UST Tank Replacement New UF New 220,000 - - - COMBINED SEWER OVERFLOWWW01232029 Neighborhood Sewer Rehabilitation New 9 New 750,000 - - - TOTALS - 6,915,000 - - - Number Title SOLID WASTE SW0323 Long Haul Truck Tarping Station New 4 New 200,000 - - - SW0123 Recycle Processing Center New UF New 750,000 - - - SW0223 Landfill Cover System Repairs New UF New 150,000 - - - SW0423 MRWF Building Conversion - Office Space New UF New - - - - SW0523 Decant Facility Equipment New UF New 70,000 - - - TOTALS - 950,000 - - - Number Title STORMWATER DR0123 Land Acquisition New R New 1,000,000 - - 850,000 DR0223 Decant Facility Equipment New UF New 70,000 - - - TOTALS - 1,070,000 - - 850,000 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING STORMWATER PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING SOLID WASTE PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL 2023 PROJECT TOTAL 2023 PROPOSED BUDGET AMEND. REQUEST GRANT FUNDING WASTEWATER PROJECTS 2022 PRIORITY 2023 PRIORITY 2022 PROJECT TOTAL CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 32UNFUNDED PROJECTS Unfunded projects are included in the CFP to demonstrate the total capital need in each fund. Unfunded projects are typically large scale in nature and often quite costly. The unfunded designation does not reduce the significance or importance of these projects. Rather this indicates these projects are not an economic reality at this time without reprioritization of the projects outlined in the CFP. There are currently 52 unfunded utility projects in the 7-year plan totaling $72.0 million.UNFUNDED PROJECTS CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 33UPCOMING PROJECTS IN THE CFP 2023 -2024 PROJECTS2023 Projects Total $14.2 million 2024 Projects Total $14.6 million ACTIVE 2023 BUDGET 2 4 7 2 2 0 172024 PROPOSED 1 2 2 1 2 0 8 PRIORITIZED 2023 BUDGET 5 8 4 1 4 0 222024 PROPOSED 4 8 2 2 4 0 20 REVOLVING 2023 BUDGET 1 1 1 0 0 0 32024 PROPOSED 1 1 1 0 0 0 3 TOTAL 2023 BUDGET 8 13 12 3 6 0 42 TOTAL 2024 PROPOSED 6 11 5 3 6 0 31 GRAND TOTAL 14 24 17 6 12 0 73 MEDIC 1 GRAND TOTALUTILITY PROJECTS ELECTRIC WATER WASTE WATER/CSO SOLID WASTE STORM WATER CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 34CLOSING STATEMENT CLOSINGThe City’s capital plan is diverse, thriving and changing to meet the needs of our community. Guidance set by City Council has been utilized to not only keep the capital plan on course, but also to ensure the City is not over committing our resources. The plan as presented is sustainable, without unnecessary rate increases or strain on other City funds. Ensures City infrastructure may be enjoyed by our community for years to come. CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 35NEXT STEPS JUNE 20 CFP/TIP Public Hearing Continuation & 2nd Reading of Resolution CLOSING CAPITAL FACILITIES PLAN –UAC WORKSESSION –JUNE 13, 2023 36 Staff requests that the UAC forward a favorable recommendation to the City Council for approval of the Utilities portion of the 2024-2029 Capital Facility Plan. RECOMMENDATION TO CITY COUNCIL CLOSING PRESENTATION TITLE37 CAPITAL FACILITIES PLAN -UAC WORKSESSION –JUNE 13, 2023 QUESTIONS AND DISCUSSION