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HomeMy WebLinkAbout2022/01/31 - Belfair Sewer Packet Belfair Sewer Public Hearing Proposed Sewer Extension January 31, 2022 Agenda Welcome and Introductions Hearing goals ■ Provide an open and transparent forum ■ Acknowledge and respond to citizen questions ■ Provide facts to aid a decision whether to expand service Belfair Sewer System History ■ Purpose ■ Expansion Plans ■ Growth and financial projections ■ Community Current Situation ■ Current system capacity ■ Current financial picture Plans for the Future ■ Planned expansion and associated costs ■ Financial picture with/without proposed project Commission Discussion Belfair Sewer Extension Project t Commissioner Briefing r 1 1.2 3 • " y,���... �kl1 4 Ays J��,.+f�• 1. 'a- �� ..s_ j^ ^.FIR'tRg�'_�F �� Y I! f0{•'!,2".V -.��1. November 2021 SR 3 Freight Corridor SR 3 Belfair Bypass — Aerial Graphic(Preliminary Design) Hood Canal J� town# oJ` s , as 1 ON Ile / 5 tJnked States Navy Railroad Alta © Belfah P ass s• Neighborhood sa © 0 / ;. m Devereaux �t1q3uprlRan tgn+p'tT 6Y� rl Lake �Sr Sct�og: © \\ Bremerton Ulm • .Alta Road Interseom ._ �4�, o0i �8elwaies \ gym n LEGEND c MP:22.81 /' ansrh/sslo Recreation Wetland 4Ar *71 Land Impact i . 4tAn impact to Section • •• • ••• • d1. •• wetlands identified in the estimated four residentiala portion of a ball field at project area Would have units could be displaced. O• Case Inlet North Mason High School. permanent impacts totaling 0.81 acre. Initial Concept Interlocal Agreement between Mason County, City of Bremerton, and Port of Bremerton to explore this project and potential benefits 300 Freight Corridor Lift Station Existing Infrastructure • , . ------------ 01-© y y- Beffair Sewer Extension r Mason County Lift Station I �a01 Legend Existing Infrastructure Proposed Sewer .00 Belfair Wastewater and 140 Existing Pump Station Proposed Lift Station Water Reclamation Facility Proposed Highway !( Kennedy Jenks Project Goals i MASON Mason County Ne"&*Rd �4eRa Explore interest for stakeholders to connect to Mason County's 3 - Belfair Water Reclamation Facility (WRF). $ i Maximize use of the existing WRF's capacity. h, Belfair 300 ' KITSAP City of Bremerton i Evaluate whether project will support sustainable growth and development within the PSIC I e r Port of Bremerton r -- - - Defer expansion of their existing treatment facility Evaluate economic viability of the project with regards to existing Case , customers. t �• Future proposed alignment r VJ I Kennedy Jenks 7 7 O O ,o Benefits 8 � Y • Provides most operation flexibility xt • Construction can be phased and will serve near-term planned development z.,;:.q • Not dependent on WSDOT design — little, to no, construction activity g, LiRsa'n near terminus of highway. _ g Maximizes use of available capacity within existing sewer collection -- system. FrogM Cap" rr >V LASstow ; 4' yd SR3 Bypass .. Algnment Construction Cost: -$7.9M I► — Force Main Length: -10,710 LF BeltairWRF e° Gravity Sewer Length: -4,610 LF Lift stations: 2 ri I Kennedy Jenks pp� €' 0 021 " � Benefits 0 0 Y Fit a5� Longer gravity sections better accommodate growth (north and south) 6N LF.d Sraviy • Additional phases better accommodates future development within PSIC 200 Apr`, • Reduces size of Pump Station 4 (formerly UGA Lift Station) Wi -- _ UGA Lift Station i 250 LF,8-Force Main Maximizes use of available capacity within existing sewer collection — i system. 5.250 LF 1 Gravels �\ phase1 jt L025LF 1C GraaiCr I� J 1 I Phase 3 —i • _ 7.750 LF,8'Fora Mein Alternative 4 — Phase 1 SAgn*OSS nt Total Phase 1 Construction Cost: —$4.7M — $5.7M Anticipate Bid Cost: —$3.7M — $4.5M Legend Em9#VPumpSIW Force Main Length. ^'860 LF ;e.fairWRF ° Propoe St—tuStation Eu�tng StrucWres Gravity Sewer Length: —4,150LF (7,890 LF total) - ProposeA Sewer Forte IAam —•PSICB.aGmwySewer Lift stations. 1 (200 GPM) Psie sor I AN — er //L —ucn eorxr K Kennedy Jenks BEL -AIR WATER RECLAMATION FACILITY SEWER EXTENSION COVER SHEET A PORTION OF THE E 112 OF THE NN VO OF SECTION 2e.TOW JSW 23 NORTH.RANGE 01 WEST.W M MABCN COL1i WASFlgTON ' � I O 'O i s� ✓`/ '� Drth and south) v f,NAF iIIf SCALE 2.63C LF.8"Gravit°; ment within PSIC Phase 2 I '� 200 GPM • r .I tion) Station 1 250 LF,8'Form Main Tea 550LE5Forcervlain - -" ,i' • a I `\��p �Y+ I Lfer collection 5 25O Lam.1 i 1 ' !I Phase 1 2 025 LF.10"Gravity LFf 0 LF.d ^crce".Iain . ,1I /I •% ,�s"'s°.`dm, -� 4� •I _ r. 1 I -_ ISR3 Bypass I I n n I Legend - f Beftor WRF ProposM Pump Stall— M f Ezislirg Sinxlures PlOposM Sewer Force IAan �`Proposed l:rav0y Sewer I� �� _ / I PSIC Bader _ LIGA Border _ - F L/ �aeaa ins wmonm.,Ia - �l r Kennedy Jenks 4►Alq r ap it Construction Work Underway (formerly Harbor Custom Development, Inc.) x WEST CC COATING & LININI x � �" Ex erts in Waterproofing E p P g Corro,. & ` 491 -- , .+i K Kennedy Jenks Moving From HOUR Construction Phase R fS t.'a dX, 7.7 iL ; aJ ` e2.0 ® � o 24 ; , � 1 d Planning 2 DesignQ Construction - Complete Construction Timeline Substantial Completion occurs when County has beneficial use of constructed facilities (sewer and pump station) Bid Advertisement Bid Award Contractor O Substantial Completion AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB 1 1 1 !(, Kennedy Jenks rj Kennedy Jenks TotalCurrent Financial Status January Needed to Balance Needed to Balance of Belfair Sewer System 2022 . O&M Costs Either Or Or Higher Rates More ERUs Higher Rates More ERUs No.ERUs 421 421 1,544 421 630 Monthly Rate per ERU $ 96.00 $ 352.00 $ 96.00 $ 143.75 $ 96.00 Annual Revenue per ERU $ 1,152 $ 4,224 $ 1,152 $ 1,725 $ 1,152 Total Annual Revenue $ 484,992 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 O&M Costs $ 725,970 $ 725,970 $ 725,970 $ 725,970 $ 725,970 Existing Debt Service 1,052,465 1,052,465 1,052,465 Total Costs Assuming No New Capital $ 1,778,435 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 2022 Gap Before New Capital $ (1,293,443) 2022 Gap O&M Costs Only $ (240,978) If Balanced without Growth: %Rate Increase Needed 267% 50% Additional Monthly Charge/ERU $ (256.00) $ (208.25) If Balanced without Rate Increases: %Growth Needed 271% 51% No.New ERUs Needed 1,128 214 These figures are shown to convey the scale of the problem,not predict reality. They assume no new capital needs. Current Financial Status January Needed to Balance Needed to Balance of Belfair Sewer System w/644 ERU's 2022 Total Costs O&M Costs Either Or Or Higher Rates More ERUs Higher Rates More ERUs No.ERUs 649 649 1,544 649 630 Monthly Rate per ERU $ 96.00 $ 228.33 $ 96.00 $ 93.25 $ 96.00 Annual Revenue per ERU $ 1,152 $ 2,740 $ 1,152 $ 1,119 $ 1,152 Total Annual Revenue $ 747,648 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 O&M Costs $ 725,970 $ 725,970 $ 725,970 $ 725,970 $ 725,970 Existing Debt Service 1,052,465 1,052,465 1,052,465 Total Costs Assuming No New Capital $ 1,778,435 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 2022 Gap Before New Capital $ (1,030,787) 2022 Gap O&M Costs Only $ 21,678 If Balanced without Growth: %Rate Increase Needed 138% -3% Additional Monthly Charge/ERU $ 134.17 $ (135.08) If Balanced without Rate Increases: %Growth Needed 138% -3% No.New ERUs Needed 895 (19) These figures are shown to convey the scale of the problem,not predict reality. They assume no new capital needs. Current Financial Status January Needed to Balance Needed to Balance 2022 Total Costs O&M Costs Either Or Or Higher Rates More ERUs Higher Rates More ERUs No. ERUs 793 793 1,544 793 630 Monthly Rate per ERU $ 96.00 $ 186.92 $ 96.00 $ 76.25 $ 96.00 Annual Revenue per ERU $ 1,152 $ 2,243 $ 1,152 $ 915 $ 1,152 Total Annual Revenue $ 913,536 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 O&M Costs $ 725,970 $ 725,970 $ 725,970 $ 725,970 $ 725,970 Existing Debt Service 1,052,465 1,052,465 1,052,465 Total Costs Assuming No New Capital $ 1,778,435 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 2022 Gap Before New Capital $ (864,899) 2022 Gap O&M Costs Only $ 187,566 If Balanced without Growth: %Rate Increase Needed 95% -21% Additional Monthly Charge/ERU $ 92.08 $ (110.67) If Balanced without Rate Increases: %Growth Needed 51% -20% No.New ERUs Needed 756 (158) These figures are shown to convey the scale of the problem,not predict reality. They assume no new capital needs. NeededCurrent Financial Status @ Max Tol Rate January Needed to Balance to Balance Totalof Belfair Sewer System 2022 . O&M Costs Either Or Or Higher Rates More ERUs Higher Rates More ERILls No. ERUs 421 421 1,292 421 527 Monthly Rate per ERU $ 114.73 $ 352.00 $ 114.73 $ 143.75 $ 114.73 Annual Revenue per ERU $ 1,377 $ 4,224 $ 1,377 $ 1,725 $ 1,377 Total Annual Revenue $ 579,616 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 O&M Costs $ 725,970 $ 725,970 $ 725,970 $ 725,970 $ 725,970 Existing Debt Service 1,052,465 1,052,465 1,052,465 Total Costs Assuming No New Capital $ 1,778,435 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 2022 Gap Before New Capital $ (1,198,819) 2022 Gap O&M Costs Only $ (146,354) If Balanced without Growth: %Rate Increase Needed 211% 27% Additional Monthly Charge/ERU $ (241.53) $ (208.25) If Balanced without Rate Increases: %Growth Needed 207% 25% No.New ERUs Needed 871 106 These figures are shown to convey the scale of the problem,not predict reality. They assume no new capital needs. Current Financial Status @ Max Tol Rate January Needed to Balance Needed to Balance of Belfair Sewer System w/644 ERU's 2022 Total Costs O&M Costs Either Or Either • Higher Rates More ERUs Higher Rates More ERUs No. ERUs 649 649 1,292 649 527 Monthly Rate per ERU $ 114.73 $ 228.33 $ 114.73 $ 93.25 $ 114.73 Annual Revenue per ERU $ 1,377 $ 2,740 $ 1,377 $ 1,119 $ 1,377 Total Annual Revenue $ 893,517 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 O&M Costs $ 725,970 $ 725,970 $ 725,970 $ 725,970 $ 725,970 Existing Debt Service 1,052,465 1,052,465 1,052,465 Total Costs Assuming No New Capital $ 1,778,435 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 2022 Gap Before New Capital $ (884,918) 2022 Gap O&M Costs Only $ 167,547 If Balanced without Growth: %Rate Increase Needed 99% -19% Additional Monthly Charge/ERU $ 113.60 $ (21.48) If Balanced without Rate Increases: %Growth Needed 99% -19% No.New ERUs Needed 643 (122) These figures are shown to convey the scale of the problem,not predict reality. They assume no new capital needs. Current Financial Status @ Max Tol Rate January Needed to Balance Needed to Balance 2022 Total CostsO&M Costs Either Or Either • Higher Rates More ERUs Higher Rates More ERUs No. ERUs 793 793 1,292 793 527 Monthly Rate per ERU $ 114.73 $ 186.92 $ 114.73 $ 76.25 $ 114.73 Annual Revenue per ERU $ 1,377 $ 2,243 $ 1,377 $ 915 $ 1,377 Total Annual Revenue $ 1,091,771 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 O&M Costs $ 725,970 $ 725,970 $ 725,970 $ 725,970 $ 725,970 Existing Debt Service 1,052,465 1,052,465 1,052,465 Total Costs Assuming No New Capital $ 1,778,435 $ 1,778,435 $ 1,778,435 $ 725,970 $ 725,970 2022 Gap Before New Capital $ (686,664) 2022 Gap O&M Costs Only $ 365,801 If Balanced without Growth: %Rate Increase Needed 63% -34% Additional Monthly Charge/ERU $ 72.19 $ (110.67) If Balanced without Rate Increases: %Growth Needed 63% -34% No.New ERUs Needed 499 (266) These figures are shown to convey the scale of the problem,not predict reality. They assume no new capital needs. BELFAIR WATER RECLAMATION FACILITY SEWER EXTENSION i Direction of Flow ' Construction Estimate Item Description +15% Total -5% f Lift Station $ 1,500,000 $ 1,310,000 $ 1,236,000 �,• Forcemain $ 150,000 $ 130,000 $ 124,000 Gravity to Lift Station $ 834,000 $ 725,000 $ 690,000 Gravity to Collection System $ 834,000 $ 725,000 $ 690,000 I Railroad Crossing $ 1,190,000 $ 1,030,000 $ 984,000 * Total: $ 4,510,000 $ 3,920,000 $ 3.730.000 JrL 3 Not to Scale AL PROPOSED BELFAIR WATER RECLAMATION FACILITY SEWER EXTENTION s Color Key RAILROAD CROSSING a SEWER LINE DIRECTION OF SEWAGE FLOW 3. LIFT STATION AND FORCE MAIN STATE ROUTE 3 PARCEL IDENTIFICATION#(SEE TABLE BELOW) a � 3 i .; �.. I # Parcel Owner + `'. 1 12321-43-00000 SOZO CHURCH • 2 12321-43-60100 STATE OF WA,DEPT OF TRANS. 3 • 3 12321-43-00110 HOOD CANAL HEATING&COOLING 4 12321-43-00120 CASCADE FLORAL PRODUCTS 5 12321-34-00000 CASCADE FLORAL PRODUCTS • 6 12321-41-60000 MASON TRANSIT Ln 7-11 12321-41-00000* OVERTON&ASSOCIATES NOT TO SCALE "Including 12314-40-00000,12321-43-00130,12328-00-03000,12328-21-00010 Proposed Extension Service Area I � p;; I PremvrtQn ;! Square Lake National C Coulter Creek Cot k e Par ArrFrrt Heritage Park Camp a� f1 Calviriw od State Park =�fr z uture PSIC - Basins C, D, E, and F XI Ttophy Lake GoM And Casting Club Y r Wicks tli Preserve if vi yOQ �r� x rr E Jc N od, GTE v� SW Like Helena Rd G t w � Sr,+y re C t7 ro '�r W ,r 1/24/2022, 9:55:25 AM 1:48,917 g� elf 0 0.4 0.8 1.6 mi 0 Blfair UGAZoning County Boundary e Festival Retail Imo,❑ Low Density Residential 0 0.5 1 2 km Filled ® General Commercial Sources:Esri,HERE,Garmin,Intermap,increment P Corp.,GEBCO,USGS, Business Industrial FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri General Commercial&Business Industrial Mason County WA GIS Web Map Application County of Kitsap,Bureau of Land Management,Esri Canada,Esri,HERE,Garmin,INCREMENT P,USGS,METI/NASA,NGA,EPA,USDA I BELFAIR SEWER — QUESTIONS POSED BY COMMUNITY MEMBERS Marilyn Corrigan 1. What was the problem the Sewer was to solve? Designing and constructing the Belfair sewer system addressed two issues: 1. Response to water quality concerns-shellfish closures, low dissolved oxygen in Lynch Cove and Hood Canal; and 2. Meet the objectives of Growth Management for the Belfair UGA(provide urban services to support urban growth). 2. How and why was the original sewer approved and located? (South Shore, North Shore, Old Belfair Highway considerations, etc.) The original sewer service area was determined after an extensive engineering analysis and preparation of an environmental impact statement. South Shore and North Shore were ultimately Phase 2 determined to be cost- prohibitive. Phase 3 Subsequent improvements to Q Belfair State Park and the M County's Pollution I Identification Control (PIC) zI, zw Program, along with sewering the Belfair core area led to f r� FA�Rsr1%�urrently under upgraded water quality in I construction Lynch Cove. qQY,: Sewering the area along the Old Belfair Highway was identified as the "Phase 2" service area—or area next -- Phase ' planned to be served. The county initiated design, but ultimately abandoned this "''E9QurREu plan due to resident concerns "E ALDER CREE,c�w about connection charges and rates. 1 BELFAIR SEWER — QUESTIONS POSED BY COMMUNITY MEMBERS Marilyn Corrigan - continued 3. Where is the sewer located now? The Water Reclamation Facility (sewage treatment plant) is located east of the railroad tracks on the ridge above Belfair. Major trunk lines to collect wastewater are located within SR 3, Old Belfair Highway, Clifton, SR 300 a portion of Roy Boad Road. Smaller collection lines serve Byerly, Alder, Squire, Belfair Street, Ridgepoint, Creeland and others. Belfair Existing Sewer Infrastructure ■ 3 2 Legend ■ Sewage Treatment Plant 10 Pump Station Existing Sewer Lines 0 0 075 0.15 03 0.45 06 Belfair Sewer Connection Miles BELFAIR SEWER - QUESTIONS POSED BY COMMUNITY MEMBERS Marilyn Corrigan - continued 4. What exclusions/exemptions have been granted? To whom and why? Be specific. No exclusions or exemptions have been granted. The county has not extended service to Phase 2 at this time, but rather proceeded with the design to serve a remaining portion of Phase 1 just south of the railroad tracks and a portion of Phase 3 north of the tracks. (Shown generally, as the green shaded area in map below). G? o J O w t' - w r L171 CII T \ to 3 BELFAIR SEWER - QUESTIONS POSED BY COMMUNITY MEMBERS Marilyn Corrigan -continued 5. It does not appear that the present sewer lines are located near developments where there would be significant homeowner attachments. I don't believe the extension would reach significant current development either. Is that true? The present sewer lines were located to collect the Belfair "core" which is situated mostly along State Route 3. There are 421 Equivalent Residential Units (ERUs) presently connected. It is true the proposed extension under and north of the tracks would not provide many immediate connections. The extension would provide a point of connection for an additional 821 ERUs within the Belfair UGA. There is strong interest in developing the proposed service area, as evidenced with pre-application submittals and site selection inquiries. New development south of the tracks used the sewer extension design to build a new trunk line connecting to the existing trunk line. This line will serve 229 new multi-family ERUs and 144 single-family residences, and is sized to accommodate flows north of the railroad tracks. This sewer extension was paid for by the developer. The proposed extension would serve the properties in the map below and is sized for future extensions/connections in the Phase 3 area and a portion of PSIC. Color Key RAILROAD CROSSING SEWER LINE DIRECTION OF SEWAGE FLOW a, VA LIFT STATION AND FORCE MAIN 1� STATE ROUTE 3 �... ' PARCEL IDENTIFICATION f(SEE TABLE BE, # Parcel Owner 1 12321434M SOZOCHURCH 2 123214MI00 STATE OF WA DEPT OF TRANS. 3 123214WI10 NOW CANAL HEATNIG f:COOUIG 4 12321434012D CASCADE FLORAL PRODUCTS S 12321440M CASCADE FLORAL PRODUCTS ' 0 1232W40000 MASON TRANSIT 7-11 1232u140000• OVERTON d ASSOCIATES 10 ••oay wis+•aoma�w+sam¢wxw•onm.waamon 4 BELFAIR SEWER - QUESTIONS POSED BY COMMUNITY MEMBERS Marilyn Corrigan -continued 6. Has the present sewer system helped improve water quality in Hood Canal? Yes, along with upgrades to the Belfair State Park onsite system and the County's PIC program. 7. Who pays for what usually? Can you compare funding for the Mason County Belfair System to those in other Counties? Currently, who pays for what in Mason County? O&M costs, debt re-payment, new capital expenditures are typically paid with utility rates. Utilities seek grants/loans for capital improvements. This is particularly important for utilities with a small customer base. Each utility has its own financial reality, which in turn shapes the utility rate. 8. Who pays for what for the proposed extension, and subsequent feeder lines? The proposed extension is a "trunk line" which is often constructed by local government or a sewer utility, but could be constructed by developers. If the county constructs the extension, capital facilities charges or CFCs, are collected as new customers connect. The CFC is calculated to cover the cost of existing infrastructure plus the new extension. If a developer constructs the extension, they can request a "Latecomer Agreement"to re-capture the cost of any upsizing costs they incurred. Once the trunk line is installed new development is responsible for designing and constructing the collection system that "feeds" to the trunk line. In a subdivision, a homebuilder is responsible for installing the service lateral that connects to the collection system. 9. What is the estimated tax that the proposed extension will add to Mason County tax payers? The proposed extension will not result in an increased tax to Mason County tax payers. The proposed extension will generate connection fee revenue as new customers connect (CFCs) which could be used to reduce reliance on REET2 and .09 funds. 10. Do Belfair and Shelton sewer customers pay the same rate? City of Shelton sewer customers pay$133.64 per month per ERU. Belfair customers pay $96. The county also owns and operates Rustlewood and North Bay sewer systems. Rates for these customers are $112.52 and $118.91 per month per ERU, respectively. 5 BELFAIR SEWER - QUESTIONS POSED BY COMMUNITY MEMBERS Marilyn Corrigan -continued 11. How many properties will touch the proposed extension? The extension north of the railroad tracks will go through eight parcels. See map on Page 4. 12. How many property owners are there holding these parcels? Be specific with names and numbers. See Map on Page 4. 13. What costs will these property owners incur for this infrastructure? The cost to connect, (CFC charge)and the monthly sewer charge. 14. Will any of these be exempt from costs? No. Adam Bernbaum 1. How and why was the original sewer approved and located? See 2. response above. 2. Where is the sewer located now? See response 3. above. 3. What exclusions/exemptions have been granted? To whom and why? Please be as specific as possible. See response 4. above. It does not appear that the present sewer lines are located near developments where there would be significant homeowner attachments. I don't believe the extension would reach current development either. Is it true that the extension would not reach the currently developed areas? See response 5. above. 6 BELFAIR SEWER - QUESTIONS POSED BY COMMUNITY MEMBERS Adam Bernbaum—continued 4. Is it true that Old Belfair Highway would be exempt? If so, why? A portion of Old Belfair Highway is located within the Phase 2 service area and is not "exempt". Service may be extended in the future. 5. Who usually pays for sewer extensions? Please be as specific as possible for each part of the proposed sewer extension (e.g. main line, lines into new developments, lines to homes, etc.) See response 8. above. 6. Please itemize the current sources of funding for the existing sewer(.09 tax funds, hook-up fees, etc.) and the proposed sources of funding for the proposed sewer, including anything you can share about who will pay for future extensions from the main line. Current revenue sources Expenditure Type Monthly rates Operation and Maintenance (0&M) Capital Facilities Charges Infrastructure Real Estate Excise Tax(REET 2) Debt .09 Sales Tax Small Capital Improvements ARPA Capital Improvements Grants Design. Plan Updates 7. Assuming that development does not occur near the proposed extension of the sewer, how much would existing sewer customers have to pay per ERU? An annual debt payment of—$225,000 per year is assumed for the proposed sewer extension. The utility would need to grow by 15—20 ERUs per year to make that new payment through Capital Facility Charges(CFCs). Assuming there are 795 ERUs connected after the project is completed and no growth occurs at all, additional$225,000 REET 2 funds would be transferred to the utility to repay the new debt. If REET 2 were not transferred, an additional$23.58 per month would need to be collected per ERU to pay the additional debt. The rate would change from $96 to—$120 per ERU. The "maximum tolerable rate"for 2022 is calculated to be—$115 per ERU. 7 BELFAIR SEWER - QUESTIONS POSED BY COMMUNITY MEMBERS Adam Bernbaum—continued 8. Did the county ever negotiate with landowners in the proposed sewer extension area about cost-sharing for the sewer system? No. 9. What was the problem the sewer extension is intended to solve?What were the goals the county sought to accomplish by extending the sewer? The goals for the sewer extension were to improve the financial position of the utility, provide urban services to the urban growth area, improve facility operations. 10. Is the purpose of the Belfair sewer system to protect our many waterways? If not,why not Yes,one of the purposes of the Belfair sewer system was to address shellfish closures, and low dissolved oxygen in Lynch Cove and Hood Canal. 11. How many properties will touch the proposed extension? How many property owners for these parcels? Be specific with names and numbers. Will any of these be exempt from normal costs? See map on Page 4. 12. Has the county conducted an environmental impact assessment of the proposed extension of the sewer? An environmental impact statement is not required for the proposed extension. An EIS was completed for the plan to sewer the Belfair UGA and more recently an EIS was prepared for the Belfair Planned Action alternative alnalysis. Greg Sypnicki 1. Can you break out the costs of the Phase 1 in three parts? Cost of pushing under the Navy Railroad tracks, the lift/pump station, and the line itself(both gravity and forced). The proposed extension can be broken into the following components: Rail Crossing $1.19 million Gravity/Force Main from Lift Station $0.984 million Lift Station $1.5 million Gravity to Lift Station $0.84 8 BELFAIR SEWER - QUESTIONS POSED BY COMMUNITY MEMBERS Greg Sypnicki -continued 2. Can the commissioners renegotiate with the one landowner (Overton and Associates) to try to get an agreement that 0 &A will reimburse the county when they either subdivide land or sell it to a developer? 3. Under what circumstances would the current Belfair Sewer ratepayers be obligated to pay an additional $87 per month per ERU on top of what they are currently paying? The executed loan agreement with Commerce is underwritten assuming a rate-based repayment, subsidized with REET. Commerce has indicated the agreement can be modified to General Obligation, eliminating the potential for a significant rate increase. Commissioners consider a "maximum tolerable rate" when setting rates, which is how the initial rate was set and remains at$96 per ERU. The current estimated maximum tolerable rate is—$115/ERU. 4. Since the one landowner(0 &A) has control over when this land will be sold or subdivided and be available for hookups, shouldn't 0 &A also assume most of the risk if things don't go as planned? 5. If 0 &A isn't willing to reimburse the county and assume some of the risk,wouldn't it be better to stop at the Navy Railroad tracks where the developer is already extending the line to at his expense? If the county decides to not proceed with the project or aspects of the project, it could be many years before the right developer comes along with the ability to do this work. Constructing the rail crossing requires a permit and specialized construction techniques that most developers and their contractors would find challenging. The same can be said for the lift station. 6. When construction of the homes/apartments are completed in this development, how many ERUs do you anticipate that will be added to the Belfair Sewer system? We anticipate adding 374 new ERUs: Olympic Ridge subdivision is approved for 145 single-family residences and the Olympic Sunset View Apartments are approved for 229 multi-family units. 9 BELFAIR SEWER - QUESTIONS POSED BY COMMUNITY MEMBERS Greg Sypnicki -continued 7. With these newly added ERUs, once they are hooked up and in service, will the Belfair Sewer break even with respect to revenue from rate payers vs operation/maintenance expenses? Yes, these additional ERUs will bring financial balance to utility Operations and Maintenance, with some additional revenue available (—$100,000 per year) to go towards debt or enhanced 0&M. The 2022 adopted 0&M budget is$708,321. The projected 2023 cost is$729,521 (assumes 3% increase). The estimated new monthly revenue from this development going towards operation and maintenance (O&M) = $29,308.80 or$351,705.60 per year(see table below for calculation). In 2021 the utility collected $477,234 in rate revenue from 421 ERUs. Total new estimated annual rate revenue (assuming no rate increase) =$828,939.60. Tamra Ingwaldson 1. With construction, will they install conduit so we only have to dig it up once and it provides the opportunity to make future construction more efficient & "turn-key" so it is more friendly for economic development. More cost effective to install it now, and recoup costs via permits later. If I understand this correctly, that is exactly the point of the sewer extension project. The extension is a "trunkline" buried deep that will allow new development to gravity flow to the manholes along it. As properties around the extension develop, collection systems constructed by developers are routed to manholes along the sewer extension. 2. Will they be implementing Low Impact Development (LID) techniques? Will they be installing a "purple pipe system" which allows for storm water to be captured separately & in times of heavy rainfall, minimizes impact on systems and prevents overflow into waterways. "Purple pipe" conveys reclaimed water. It is completely separate from pipe that conveys stormwater or sewage. A portion of the Belfair facility's reclaimed water is currently used to irrigate forestry lands. The pipe conveying reclaimed water is purple to signal that it is not to be used as drinking water. 10 BELFAIR SEWER - QUESTIONS POSED BY COMMUNITY MEMBERS Tamra Ingwaldson - continued New development manages stormwater per Mason County Code which adopts the guidance of Ecology's Stormwater Management Manual for Western Washington. The Manual states that Low Impact Development (LID)techniques are to be used "when feasible"for new development within Urban Growth Areas (UGAs). The Olympic Ridge and View projects are underlain with till soils which do not support significant infiltration, coupled with steep slopes, meaning most LID techniques are not feasible. 3. With the new development, will they be installing sidewalks, hopefully using LID/previous paving. The road network for the Olympic View and Olympic Ridge projects includes sidewalks. Pervious paving was not considered to be feasible due to poorly infiltrating soils. 4. How are they planning to mitigate the cost for residents? Have costs recovered/shared via permits? The Olympic View and Olympic Ridge developments have conditions of approval spelling out what improvements they are responsible for installing (stormwater, streets, sidewalks, landscape, sewer, water, etc.). With regard to sewer, the developer installed a portion of the trunkline sized to serve many more connections north of the railroad tracks. The developer is eligible to request "latecomers fees" which reimburse the cost of upsizing this line. 5. Are there other pending road construction projects that this extension can be attached to so that all work is concurrent vs consecutive.That was one of the big issues with road widening& sewer installation through Belfair. The design of the sewer extension was closely coordinated with private developers to avoid future utility conflicts or the need to cut new roads to install utilities. The extension aligns with roads already under construction south of the railroad tracks and planned roads north of the tracks. 6. With use of LID, have they looked at grants that may be available to assist with funding? Private development bears the cost of mitigating stormwater impacts associated with their project. Very few grants are available to the private sector. Grants are available to the county for"retrofit" projects and the county has utilized Centennial Clean Water fund monies for stormwater retrofits in Belfair. 7. Can they ensure that the costs of the sewer will not exceed the maximum tolerable rate? 11 BELFAIR SEWER - QUESTIONS POSED BY COMMUNITY MEMBERS Tamra Ingwaldson - continued The current rate is $96 per Equivalent Residential Unit (ERU). This rate has remained unchanged since 2012. The calculated 2022 maximum tolerable rate is $ 114.73. Existing debt service and O&M costs already exceed the maximum tolerable rate—if rates were set to fully recover these costs, the rate would be $334. No one is proposing such a rate. Rather, the county has secured $2 million in legislative appropriations to reduce debt, restructured debt, used REET and 0.09 funds to subsidize the Belfair sewer utility, and sought to add new customers to ensure rates do not exceed the "maximum tolerable". Mason County and Commerce are discussing a loan revision that changes the identified debt repayment from revenue debt(utility rates)to General Obligation,thereby removing the concern of raising rates beyond the maximum tolerable. 8. Has a sewer project ever not run over cost? If this sewer extension has the same percentage cost overages as the previous Belfair sewer development, how would that affect the county's finances and the rates for Belfair residents on the sewer? The engineer's estimate to construct the project includes a 15%contingency. Should bids exceed the estimate the county has the option to reject all bids. The county has/will minimize cost over-runs during construction through: ■ A thorough exploration of conditions during the design phase ■ A complete bid package without confusing or vague plans and specifications ■ Thorough inspection during construction 12