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HomeMy WebLinkAbout032309PORT TOWNSEND CITY COUNCIL JEFFERSON COUNTY PUD AGENDA CITY COUNCIL CHAMBERS Joint Workshop Meeting 6:30 p.m. March 23, 2009 I. Call to Order and Pledge of Allegiance II. Presentation by PUD (water issues) (20 minutes) III. Presentation by City (water issues) (20 minutes) IV. Discussion of water issues V. Informal discussion of electric utility (if time allows) VI. Adjourn (no later than 8:30) Americans with Disabilities Act In compliance with the Americans with Disabilities Act those requiring accommodation for this meeting should notify the City Clerk's Office at least 24 hours prior to the meeting at (360) 379-5045. City of Port Townsend Office of the City Manager 250 Madison Street, Suite 2, Port Townsend, WA 98368 (360) 379-5047 FAX (360) 385-4290 dtimmonslawitPofpt. us MEMORANDUM TO: City Council Jefferson County PUD 91 FROM: David Timmons DATE: March 17, 2009 SUBJ: City of Port Townsend Water System Policy To help facilitate the discussion at the March 23 joint workshop meeting, attached is the current Water System Policy and map of our entire system. Please take a look at Policy 3.7 and be prepared to discuss the matter. City of Port Townsend Water System Policy Policy Name Policy Statement ExplanatioNRationale 1.0 Water Service - The following policies address broad system issues related to providing water to the City's separate service areas and contract users. 1.1 City Service Area: 1.1.1 Water Availability Water shall be available to all residents within the The water utility's primary role is W provide water City's incorpontcd boundaries, subject to service to current and future residents of the City. geographical, financial, and infrastructure limitations. The City is a designated Urban Growth Area (UGA). County -wide planning policy(CWPP) No. 2.1 states that "the full range of governmental when services... will be planned for and provided within UGAs ... including community water..." A municipal water supplier, as defined in RCW 90.03.015, has a dory to provide retail water service within its retail service area if. (1) Its service can be available in a timely and reasonable manner, (2) the municipal water supplier has sufficient water rights to provide the service; (3) the municipal water supplier has sufficient capacity to serve the water in a safe and reliable manner as determined by the department of health; and (4) it is consistent with the requirements of any comprehensive plans or development regulations adopted under chapter 36.70A RCW or any other applicable comprehensive plan, land use plan, or development regulation adopted by a city, town, or county for the smite area and, for water service by the water utility of a city or town, with the utility service extension ordinances of the city or town - 112 Service Extensions Service extensions shall be allowed within the Property owners are responsible for extending water City service area as long as the proposal meets smite to their property and for system City Engineering Design Standards, developer enhancements needed to ensure that service to new, extension requirements and State Department of customers will not increase the cost nor degrade Health (DOH) regulations and requirements, the smite to existing customers. costs of the extensions are paid for by the new customers, and off-site impacts art mitigated. Service extensions shall be consistent with the City's comprehensive land use and water system plane. 1.1.3 Tiered Service Infrastructure improvements and service extensions will be tied to the City lard Use Plan, which may be tiered. 1.2- Outside City Service Area: 1.2.1 Service Area Boundaries Service area boundaries for the Outside City The City has historically provided water to Service area shall be established based on the customers in the Outside of City service area when need to balance curtest smite obligations with capacity was available. However, it is recognized the ]mown limitations in the carrying capacity for that the water supply to this area is limited by The water resources available o the City. The contract and by supply availability. boundaries shall be developed or adjusted in a manner consistent with the Coordinated Water RCW 36.70A.030 states: "Rural governmental System Plan (CW SP) process, except that smites" or "nand services" include those public boundary changes may be made on an interim services and public facilities historically and basis if City Council determines that an typically delivered at an intensity usually found in emergency exists. rural areas, and may inchde domestic water systems and other public utilities associated with rural development and normally not associated with urban areas. With domestic water systems per of the definition for both "urban governmental smite' and ".1 governmental service," water utilities are rot prohibited by the GMA from providing domestic water services in rural areas. Water service most be designed at the level of service designated appropriate b the local land use authority for that Page 2 of 9 Page 3 of 9 area. Water service most also be provided in accordance with the Department offimith's minimum design criteria for public water systems, (WAC 246-2W222,230 and; 1.2.2 Water Availability The City shall maintain its commitments to The City has an obligation to provide reliable provide water to existing real customers. Water service to its existing customers and property within provided w eommctual customers shall be subject its existing municipal corporate boundaries. The to the term of the contract. Water service to msv City may provide water outside is municipal customers shall be provided only to the eater corporate boundaries to the extent it has additional time, is available capacity. capacity. The City recognizes it has limited resources for serving areas outside the City's municipal boundaries. 1.2.3 Service Extensions Service extension may be allowed in the Outside Property owners are responsible for axtamlingwater of City service area provided they are consistent service to their property and for system - -.-. with OwCity's excess capacity, Cry Engineering enhamemenb needed to- an= that service tonew Design Standards, developer extension customers will not increase the cost err degrade requirements and State Department of Health service to existing customers. (DOH) regulations and requirements, the runts of the extensions are paid for by the developer Contract obligations take precedence aver service customers, off-site impacts are mitigated, the area or UGA boundaries. applicant has obtained all necessary permits and right -of --way issues are resolved and the: extensions are consistent with the CWSP. The City shag be provided with notifications from the County to the developer that all permits have been obtained. The City shall be mile aware of my conditions upon Cityservicea 1.3 Areas Outside of Service Arm Boundaries: 1.3.1 Service Extensiotr Service extensima are rat allowed outside the The City bas a limited capacity to supply water service arm boundaries except for system looping, outside of the City's incorporated boundaries. fire now requiremeuts, or other specific system Deeds that provide enhanced service within the service area, or to reset prior contract obligations, or that may be needed to mitigate a threat to public health or welfare, ora protect an area of environmental sensitivity. In addition, the requmemems for service extension listed in the preceding Policy Statement must be met. 1.4 Ownership A0 water tam extensions shall become the The City uses meters to Maitm and charge for Property of the City following installation; water consumption. The City most maintain approval, and acceptance by the City and shall ownership ofinetera to assure accuracy and to then be operated and maintained by City. The City enforce paymcm- The imter is wmally locatedm -shall own and Mimi. the service Imre to the the property lire and provides a logical separation muter, including the meter and the meter box. The point between City and private ownership and property owner shag own and maintain the service responsibility. has, and other facilities such as pressure reducing valves, pumps, or cross correction devices Them are isolated existingntsaea where beyond the metro- ownership of the line to the rumor is private, wrier separate arrangement. However, the City does rat - support or emoumge than type of agreement in the Future. 1.5 Timed Service Infrastructure impmveawnts and service from a Tiering a a concept that maker scree from a utility may be tiered. planning perspective. The City needs to consider all of the ramifications of tiering. 1.6 Carriers with large Water . Water to commct customers and purveyors should While the City§ primary role is service to customers Use Customers - Fort Warden be provided only up to the conmactual amounts, within the city limits, the City has the responsibility and Jefferson PUD When current contracts expire the City shall and obligation to meet the terms of its long-term reevshate the terms and conditions of these contras. The City also supports responsible uses of contacts. In renegotiating the contracts the City the water for economic development and shall consider cannot State and Federal commercial needs. requirements, water supply avelabifity, capacity requhenents of in -City customers, water system The City does rat assume respormb0ity for the policies and financial conditions. The City my quality, uses, or distribution of water within the provide water to contract users outside its contract users system municipal corponde boundaries W the extort it has additional opacity. The City shell not guarantees pressure, storage, or other system requirement to contract customers on]= so stated in the contract. The City is responsible to meet Federal and gyre Page 3 of 9 Page 4 of 9 water quality requirements at the City's point of delivery to the contract customer, unless otherwise stated in the contract. The City shall not be - responsible fm maintenance of water quality within the contract users system. Extension ofother purveyors' lines through the City's service area should remain the property of the purveyors - The City should work to coordinate its service with the service of adjacent purveyors. 1.7 Part Toammend Paper Water should continue to be provided to the Mill The City has a long established and atonally Corporation (PTPC) on a contractual basis to meet their needs subject beneficial contract relationship with the Mill for to the City/Mill learn and the water resource water supply and pipeline maintenance. water availability. When the City renegotiates anew remains a primary resource for the Mill, essential to coramet or least with PTPC, consideration shall eeommically producing their pulp and paper be given to City water utility needs, historical products. The City derives benefits not only for the partnership arrangements with PTPC, water supply system upkeep but also Por the support conservation requirements and opportunities, ofthe local economy in general. maintenance ofthe water system and instresm flow needs, as well as other related issuat. 1.8 Other Lenge water Users The City should work toward entering into Contracts with large water users define the (Schools, fairgrounds, ferry, contracts with all large water users. obligations and responsibilities ofeacb party and golfcourae, Coast Guard) can establish water use limits and conservation requirements. 1.9. State Department of Health The City shall always attempt no negotiate The City recognizes DOH's role as the regulatory arrangements with the State DOH that art body governing water service provider and DOH's beneficial to the City's water consonant and which relationship in terms of primacy with the U.S. still meet DOH rules and reguletions. Environmental Protection Agency. 2.0 Coordinated Planning - Theintention ofthe following policies is to promote the integration ofwater system planning with other related planning efforts. 2.1 Growth Management Act GMA planning and water system planning shall The City has limited water supply resources be coordinated. In preparing GMA planning available. document; the City shall mite into consideration the City's water policies and limited water supply CWPP No. 1.7 states, "Before adopting boundaries capacity. The goals, policies, level of service of UGA3, interim kvel of service standards for standards and capital facilities plans of the GMA public services end facilities located inside and outside of UGAs will be adopted by the County and Comprehensive Plan and the Comprehensive its UGAs. New urban public facilities will only be Water System Plan shall be consistent. provided within and not be extended beyond UGAs, unless deemed as an essential public service to In planning to provide water for County growth, mitigate a threat to the public health, safety, or the City assumes that the County will designate general welfare." UGAs pursuant to the requirements ofGMA, consistent with the CWPPs, and pursuant to any In 1997, the legislature gave further direction on this Hearings Board and judicial interpretation; and issue by providing a definition ofa neral applications of the GMA. governmental service that included domestic water systems (RC W 36-70A.030), which stated: "Rual The City also asums that the County Will not governmental services" m "marl services" include allow real densities within any UGAs designated those public services and public facilities as the City's service area. historically and typically delivered at an intensity usually found in rural meas, and may include domestic water systems and otber public utilities associated with rural development and normally not associated with urban areas. With domestic water systems part ofthe definition for both "urban govemmenut service" and "nasal govecumental service," water utilities are not prohibited by the GMA from providing domestic water services in rural areas. Water service must be designed at the level ofservice designated appropriate by the local land use authority for that area. Water service must also be provided in accordance with the Department ofHealth's minimum design criteria for public water systems, (WAC 246-290,222,230 and 235). 22 County -wide Planning Policy The City water system policies and CW PP No. 10.1 states, "The County -wide Planning comprehensive water plan shall be consistent with Policies will be utilized as a framework for the the CWPPs. development and adoption ofcomprehensive plans..." 2.3 Dungeness - Quikene Water The City should be an active participant and take a The City has the Principe water right on the Big Resources Pilot Planning leadership role in the implementation of the and Little Quilcem rivers and is committed to Page 4 of 9 Page 5 of 9 Project(D-Q Project) recommendatio>b$om the Duegeaess-Qm'kene helping iopkmem Plans for duoptima! Water Resources Pilot Project Plan, msonms, that management of the water resource. CWPP No. 2.7 the long-term water needs of the City am met and states that any agreements arising from the Chelan to protect and enhance the overall wow resources (D-Q Project) discussions "will be incorporated into of the Quikene River systems and groundwater local plats and policies." aquifers. 2.4 Coordinated Water System The City should be an active participant in the Since the City is the largest water purveyor in the Plan (CWSP) development ofthe CWSP as a member ofthe comity and serves ams outside the city limits, itis WUCC said the WUCC Steering Committee and important to play an active role in countywide water Should coordinate their water system planning system plannm with theCWSP process. The City should help assure that appropriate envirommemal reviews, public involvement, and other p]O conses and procedures am foRowed In preparing the CWSP. IS WaterSystem Master Plan Tbc Comprehensive Water System Plan "I be The Comprehensive Warr System Plan includes the guidance document fm the developmem and demand projections, conservation plans, improvement of the City water system. infrastructure evaluation and a capital facilities plan. The Stale requiros the plan to be updated every 6 Years. 2.6 Point Service The City shall work in eoopvationwith the Forest Coordinated planning and implementationof Service using the Mememndom of1halmstanding watershed initiatives a impen6ve for the City to and the Watershed Control Plan M guidelines m continue m remain an unfiltered surface "a ensure protection and enhancement ofthe water supply. Watershed protection is also important to quality ofthe Big and latdc Quilcene Riven. maintain high water quality, most health standards and assure the burg-term availability ofthe surface water supply. 2.7 Population and Water Demand Projections offuem< water dermads should be CWPP No. 1.1 slaw that the City and county will Projections developed wing the joint county/City population jointly prepare a regional population Precast and forecast agreed in through GMA. this Sorrier will be used in the preparation of Demand projections shall consider 6-yearand 20. Comprehensive plans. year service am build our projections, as well as bong lead times for water supply planning, water reduction ofdemmnds through water conservation rights and large capital projects require long program planning horizons. 2.8 Water Resource Inventory The City should be an active participant and take a The City has the principal water right on the Big Am-17 (WRIA-17) leadership ink in the implonnowation ofthe- and Little Quileene rivers and is committed to recommendations from the WRIA-17 planning helping implement Plans for management ofthe process, to assure that the long-tem water needs waterresources of the City an met and to protect and enhance the overeR water momeea oPeaskm Jedemon County. 3.0 Water Supply - The policies below address issues misted to developing and protecting the quantity ofwater needed to woo the louse needs ofthe utility consumers. 3.1 City Service Am The City should reserve and/or develop the supply The City is obligated to develop supplies to serve system capacity required to meet the commit and the customers within the published City Service forum water demands within the City incorporated Area. The City's supply system was constructed for limits and the City VGA boundaries. Water and Rmded by City residents and the MRL The capacity not so required my be sold to non-City City's water supply capacity is cmremiy Ihmmed by customerm contract with the Milk. 3.2 Out of City Service Am The City shall approve new, water connections in The quantity ofwater available to the Out ofCky the Out ofCity service sur only to the extent service area is limited by infrastrucnue constraints then is sufficient water supply capacity available. and by Cermet with the Mill The City my provide The City's Compreherurve WatarPkn or other waver outside its municipal boundaries to the went special studies sball document the amount of it has additional capacity. • available watercapacity. 3.3 Water Shortage Response In the event ofa water supply shortage, the City Bask public Imhh reeds of ell cusmmers will be shall take actions needed an cause that the the priority in the case ofa severe water shortage. essential needs of its customers are mat and the avaibbk water is equitably dishfivied. The actions and hmpkmenration procedures should be in secondaries with the adopted Emergency Response plan. 3.4 Surface Wafer The City should take appropriate actions The City recognizes the competing multiple uses of necessary toprotect its surface water rigbtL The the water resource and supports the concept of city shouts also work in cooperation with the I "shred sacrifice' and related conclusions of the D - Page 5 of 9 Page 6 of 9 Mill, Tribes and others to develop an in-stream Q Project, while at the same time the City most flow program for the Big and Little Quilcene honor its own commitments to provide water to rivers. current and future customers. 3.5 Groundwater The City should take appropriate actions that are Additional information and studies are deeded to necessary to protect groundwater rights. 71e City better define bog-term supply availability and to should participate in studies and in the protect the water resource and City water rights. development ofdate and models that are The Cityk actions and studies mad to be directed necessary to determine the long-tern yield and toward preventing withdrawals that would exceed capacity ofany future groundwater supply. the recharge rate ofthe aquifer, and balancing groundwater use with other resource concerns including hydraulic continuity. 3.6 Storage The City should explore additional water supply Multiple we and enhanced mstmam flow supports storage options that optimize the use ofthe water the goals oftbe D-Q project right and provide multiple benefits, including enhancement ofinstream flow. 3.7 Water Reallocation In the event additional surface water becomes Ifadditional water supply capacity becomes available to the City from contract user or other available there will be many competing demands for sources, the City shall allocate the tae ofthat this resource. The City's priorities are to enhance water in the following order ofpriorities: stream flow for live fish needs and to reserve sufficient water for future needs ofthe City 1. A percentage m in-stream flow through the residents and their economic base. trust water rights or other program 2. -Reserve supply for ultimate buildout ofthe City UGA 3. A reserved amount for industrial/ commercial was and economic development _ 4. Wholesale and Tri-Ares needs Prior m allocation of any water the City shall conduct such studies as may be necessary to determine the specific water supply needs ofeach ofthe above categories ofum. Any allocation to a ran-revenue use will be justified by financial and capacity analysis to ensure that such allocation does not negatively affect the long-tum economic viability ofthe City's water utility, including ability ofthe City to deliver an adequate supply ofreasonably-priced water to its long-term customers 4.0 Conservation - Conservation policies set the framework for developing and implementing the CityS water conservation programs. 4.1 Conservation Planning Conservation ofwater shall be an integral The State requires and the City desires that an component ofthe City's water supply planning effective conservation program be in place before program any additional water supply source be developed. 42 Conservation Implementation The City should promwte voluntary conservation Other public agencies am participating in the and prudent use ofwater to all of its customers, promotion ofwater conservation and combining including the Mill, through its own program and efforts with them encourages the sharing of limited through programa developed in cooperation with resources. other agencies. Ifcomervation incentives are determined to be a cost<ffeative meas of Since conservation promotes the efficient use of the increasing the quantity ofwater available for water resource, it is appropriate to distribute the coat municipal uses, the City should participate in ofsuch a program to all system user. Benefits these incentives, with such costs shared by all fast conservation go beyond rhe ability to supply system user. The rate structure shall encourage additional customers and include in-stream flow and conservation. other environmental improvements for the region, 5.0 Water Quafity - The following policies focus on protecting and enhancing the quality of the surface and groundwater water supply sources. 5.1 Surface Water Supply The City should continue to work with the DOH The City has a surface water supply source with and implement the measures necessary to remain excellent water quality and an effective watershed - an unfiltered surface water supply system,while managementprogram Installation ofafrtmatron at the same time planning for the potential future system would be a large financial burden to the requirement for filtration. citizens. 5.2 Retail Customer The City shall endeavor to provide water that As a water purveyor, the City is required to meet all meets all State and Federal water quality standards water quality regulations for service provided to its for source water and domestic supply to City retail mail customers. The DOH may establish customers. compliame schedules for meeting the regulations. Page 6 of 9 5.3 Wholesale Customers Water to wboksak customer should meet Stam The City is obligated to provide water meeting and Federal standards at the point of delivery Federal and Sate requirements to its contact users unless otherwise stated in the contract Water unless the contract so sales otherwise. However, quality provided to contract and wholesale units the City cannot be responsible for degradation of shall be delenstined at the point ofdetivety to &a quality within the comrad%ets drameauou _ contracting party(mmer meter) and shall be systema based on the tents of existing agreements. 5.4 Cross Correction Cement The City shall develop and enforce a cross Sam and Federal regulation require connection control (CCC) program to help protect implemention ofa CCC program customers from backflow contamination. 6.0 System Perlmmesee -The following policies ate directed toward the perfarmsnce, of the overall distribution system network. They are aoppmmentedbylhe detailed Engineering Design Standards. 6.1 Pressure and Flow New service corrections should be approved only The City does not have the financial resources to ifthem is water in sufficient quantity and pressure make all improvemems tient would be needed to W meet the City's Engineering Design Standards, meet today's service level standards throughout the in effect at time ofconstruction (including fire system nor to improve or extend the system for all firm requirements) or if am necessary proposed developments. improvements are forthcoming. When development is proposed in an area where misting service levels do not met minimum requirement, and the City is not scheduled to make these system improvements, the developer my provide needed system enhancemams. 6.2 Offsite Impacts Service levels to existing customers slould.mt be New customers ]an the responsibility to mifigate reduced below fire City's Engineering Design impacts to existing customers that my occur as a Sauderds by new connections to the system result ofa proposed development. 6.3 Engineering Deme Standerds All connections and extensions to the water The utility must establish uniform construction system shag be constructed in accordance with the standards for crosismri y throughout the system and City's adopted Eagmeadmil Design Standards. to reduce future repair coats. 6.4 System Redundancy Wherever practicable, the supply and detnbutioa It is the City's goal to plan for, design, and operate system should be designed to provide redundancy the system to minimize the probability and impact and a looped system to each service oration, ofservim interruptions te customers, 6.5 Substandard W atm Maim The City should move toward replacing all The undersized mins generally do net provide for undersized ("spaghetti') lira in the distribution adequate fire flow and do not mat sans sizing system. Come thews and extensans on these Imes guidelines. should not be allowed until they am upgraded. 6.6 Distribution System As resources becomeavailable, the City should Existing properties do not have to upgrade Improvements make improvements to the existing distribution iofasuucnne to meet amen[ codes, and the City is system to enable delivery of minimum standards not obligated to upgrade older facilities to meet for pressure and foe flow fl rmrghout the current codes. However, when system distribution system improvements aro being considered, improved pressure and fire flows will be an important factor when determining the system improvement priorities. .6.7 System Maintenance The City should have anongoing program to - Water customers have made a significant maintain and replace water system components investment in the water system, and routine and equipment such as mutant, hydrants, storage maintenance is needed to keep the system in top tanks, pump stations, treatment facilities and working order, within the constrama ofavailabe water dambution mains. resources. As the system ages, programmed maintenance becomes increasingly expensive, and capital projects will be necessary to replace a rebabilitam aging facilities. 6.8 Facility Abandonments Ifthe City sbandons a facility, it shall be dare in a For manqule, AC pipe abandoned on easements or safe and environmentally sound manner emir in private property should be removed AC pipe m compliance with all applicable lows and accepted public right-uf--ways will be abandoned in place and practice. only remaved when it becomes necessary to do an. Any pipe removal will be done using appropriate hazardous waste handling procedures. Abandoned wells should be stn ded in accordance with State guidelines. 7.0 Financial- Financial policies address the financial performance goals of the water utility. Page 7 of 9 7.1 Fiscal Practices The Water Utility should operate as a self Professional management principals and the RCM supporting enterprise Wrd that maintains fiscal require ongoing knowledge of cost accounting solvency and rate stability. principles and monitoring of'revenues and expenses to keep the annual budget in balance. Revenue generated for water system operation, maintenance, and capital construction can be used only for utility purposes. The General Fund does not contribute to the utility funds. 7.2 Coate Centers The City shall establish geographic cost cement All customers should pay the true cost ofservice to for the City UGA and other areas as appropriate. their area. Gee customer group should out subsidize Separate rates and accounting should be refined the costs for the other customer group. and maintained that reflect the true cost of service for each geographic area. Shared costs should be allocated equitably to each area. 7.3 Capital Improvement Funding Replacements and improvements to the water It is important to identify and scludule im- system shall be made in accordance with the provemen[s needed to keep the system operating at Capital Improvement Program (CIP) approved by existing or improved levels of service and Council. The CIP fording should be sustained at reliability. The CIP establishes the projects the City a level sufficient to maintain system integrity, intends to fund. provide for water system improvements and enable the City in comply with State and Federal Funding my come from a combination of sources, requirements. At the same time, scheduling of such as rates, bonds, grants, commet users, system OF projects should assure that capital costs could development fees, connection fees, or local be reasonably supported within the financial improvement districts. capabilities ofthe community. The OF shall be Ply for the funding ofnew or expanded public revised annually with a minimum Project-level services and facilities will first be given to close, forecast length years, and a con<epmal-level which an responding to capacity deficiencies within ears Forecast of 20 years. UGAs or to those, which provide an inducement for development within UGAs, or to those responding to a public health threat. 7.4 Cost Recovery The City shall establish fes and charges to In general, all direct utility costs related to recover utibty costs related to development. The development can be recovered through fees and costs shag be allocated to reflect the tme costs to charges. Such fees and charges may include the City. connection fees, tap fees, system development charges, direct payment for facilities, or Ober mechanisms. New developremet will meet the adopted level of smice standards established within the Comprehensive Water System Plan and the CWSP as a condition ofprojecl approval. Said standards will include interim provisions for those urban facilities identified in the capital facilities plan but not yet developed New development will contribute its proportionate sham towards provision of urban facilities identified in the capital facilities plan once adopted in compliance with the Growth Management Act. 7.5 Service Extension The City may construct Service extensions receded Growing areas should pay for the cost of smice to for orderly system development with costs the new area. Existing Customers should not pay equitably shared by benefiting parties. For new higher rates to extend service to recur areas. developments where service extensions are requested before the City is scheduled to make the The City has limited capital resources and utility improvements, the developer or new customers rates are set to fund only the improvements included should pay the Poll cost oftbe extension including in the approved CIP. oversizing of lines and system looping requirements. Payment for offsite impacts may also be required. Payback (Latecomers) agreements may be allowed. 7.6 Annual Budget Budgets should be established each yew at a level Adequate trading and staff ane needed to protect the that will assure s iffcient staffand foods are capital investment and to improve the water system available to properly operate, maintain, and upgrade the system 7.7 Water Rates Rates shall be set m a level sufficient to cover Annual rate review and adjustments can help avoid expenses, fund improvements and maintain revenue shortfalls or large step rate increases. reserves consistent with these policies. Rates shall be reviewed and, if necessary, adjusted annually. Rates should be based on the approved budget and on an approved 6-year CIP, with rates (and other sources oftevem c) established to accommodate planned expenditures. Page 8 of 9 7.8 Rate Structure Equity The water rate structure should allocate costs Amuram cost accounting and alksatiao is required fainly to cusatomer classes and geographic areas to ensure equity of charges to all system customers. and should be uniform far all customers within a - class in the same geographic area. Cost -of -service principles should be wed to determine cost albicans. 79 water Conservation The water rates shoJIbe designed toenrourage Rate incentives to encourage conservation are conservation. consistent with the City's water resource policies. 7.10 Contract Customers Rates charged to conuam customers should reflect the fall cost of service to provide this supply. 7.11 Low Income SerearCkiaen, Ram assistance should be provided to low-income Clean water is a health necessity, and low/fixed- Low Income Disabled, and seaioratizems, how-moome dis ibled, and other income customers should nct be denied access to 011ier Low Income Customers low-ineoam,custonrers. City water because ofan inability to pay standard water rates. The City is committed to help those citizens with limited financial resources. 7.12 Fiiancsl Respves The City shall nL®min working capital, operating Reserve funds are needed to otfast unanticipated contingency, and reserve fiords. These reserve - revenue shortfalls o to make emergency repairs to fords should be at levels necessary to seems fiscal the system The presence ofsach fiords helps level integrity in rhe evens ofdrought m major system out rate increases caused by high single -yew fkilum an l to mmutain rate stability Finding eapemas, and can reduce the need for additional levels should be consistent with the City's credit indebtedness. rating objectives. 8.0 Customer Service - The hat group ofpoiicies da9crnbes the mblionship of the water utility with its customers and the public 8.1 Mission Statement The waterwltity shell provide a sda, reliable water supply that meets Federal and State standards ad shell provide high quality service to its cusromera. 8.2 Public process The utility should encourage public participation The City has fond through experience that and provide timely information can the water involving the public improves the docision-making system to the public. proeesa. 8.3 City Council Granted The City Council General Covemnnent Committee The City Council General Government Committee GovemmerN Commfua ..shall provide input and recomnnendaturr s to City was established as an advisory committee by City Council on marten related to the water system Council. The City Council Gecen! Government The council shall appoint the members ofthe City Comautte, is to remain marmot on water system Camcrs General Govemmem Conmmea Input issues facing the City and to review and provide should represent a balance ofmterests from feedback to City waffand council on policies, pians, throughout the water system including the PTPC, ad needed impmveaema to the water system POD, Jefferson County, Economic Development Council (EDC), Forest Service, and citizens. The Policy development accrues at the committee level City Council General Government Committee since the committee system allows for mare meetings shall be open to the public. thorough debate and analysis ofissum. 84 Education The City should organiaeand participate in water Education leads to greater citizen participation, education programs and should develop and cum exr understanding ofthe minty and its distribute materials to inform the citizens show financing, and protection ofthe water supply quality water system issues and conecrnna. Public health, sad quantity. water conservation and watershed protection should be essential elements ofibe education program. 8.5 Sete and National Issues and The City shall any, informed can Sate and Federal City participation is important to ensure the costs, Organisations issues and regulatory trends. The City shall benefits, and ability ro implement mums and participate in national and regional water utility proposed laws and regulations am considered and organizations and maintain comact with and that the City point ofview is represented. provide feedback to our Sate and Federal representatives regarding the impact of laws and regulations on the City. Page 9 of 9 cCOOPERATIVE WATERSHED PROTECTION PROGRAM m CITY OF PORT TOWNSEND WATER SYSTEM PLAN 5.42 • 0 • Aquifer Storage and Recovery Feasibility Study Presenletlon to City of Port Townsend Jefferson County MW March 23, 2009 Presentation Overview •Executive Summary • What is ASR? • Project History • What the ASR Feasibility Study Is and Is Not • Conclusions (regarding study) • Water Planning Schedule Executive Summary The WRIA 17 Planning Unit through the PUD was awarded an Ecologygrant for a feasibility study to Investlgate storing winter surface water under ground. Consultant (Golder Associates) identified the Olympic Gravity Water System as the most viable source. City has stated for the record that an ASR project Is not In its interest. Ecology is not comfortable proceeding to Step 2, the drilling and testing of a well, unless a viable source can be found, considers accessing water via OGWS to be most viable. Executive Summary (cont.) • The PUD has developed a grant scope amendment to address the City's special use permit conditions. • Ecology may allow us to move beyond the source issue and onto Step 2 if the City demonstrates its willing to study the option to permit lease access to the OGWS. • Need a decision by the City in order to show due diligence on grant otherwise funding will be lost on June 30, 2009. PUD Mission • To promote the conservation of water and power resources within Jefferson County. • To provide wastewater and water services to the citizens of Jefferson County.... • To identify the water requirements and surface and groundwater resources of Jefferson County. • To protect and conserve the quality of domestic, agricultural and industrial waters in Jefferson County. Regional Planning Efforts The City, PUD and County all share a long history of water resource planning (WUCC, D -Q Plan, WRIA planning). • RCW 90.82 watershed planning in particular has been helpful in funding studies and projects based upon self - defined local needs. WRIA 17 Watershed Plan Current Watershed Plan (Adopted 2005) - "Soft" on water supply recommendations. - PUD and City plans were in flux at the time (municipal water law reform, Special Use Permit, ESA listings). - Consequently, an opportunity was missed to address some water supply issues. Instream Flow Rule (2005, 2009) Ecology administrative rule to set protective flows for streams and limits on new permit exempt wells. Vastly limits opportunities for new water rights, particularly agriculture, especially in Chlmacum Basin. Rule does allow some use of flows on Big Quilcene River and Chimacum Creek during winter months. New rights to access winter -spring flows (surface water for storage) may be possible. What is ASR? Aquifer Storage and Recovery (ASR) is a means in which to store surplus winter surface water underground for later use during periods of high demand. It can be "timed" to augment stream flows during periods of low flow. The stream benefit can be used as mitigation to obtain new water rights or as stand alone water rights. Why Consider ASR? • Generally, the only surface waters left for possible appropriation are winter flows. • State has developed rules to facilitate the development of ASR projects (in part, because they world). • Grant money has been available for ASR feasibility and infrastructure projects. • Perhaps the last remaining water source option for significant agricultural opportunities. ASR Feasibility Project History An ASR feasibility study was a watershed Fplan racanmendation as a data gap (WRIA 77, Y005). The PUD ap Iled (or and was awarded byy Eco a grant for an aquifer orage and recovery fe"nDllnry Ecol in 20 6_ after the l"[ream flaw failure fn 5). Two stag": - Step t: Source Ass"smenl anal Find Sufti SIN - Step 2: Drill Tat WWI at Proposed She Hired consult nt (Golder Associates) In 2007. Scope was tlevelopedN comukaM and the Plamdng Untys ASR FeasNlliiryry com b ttwhich Includes the City, Put], Pod Gamble S'Klal u Tribe, Ecology. Work begin in Nle 2007. Protect h" been administered by PUD, decisions have been made through the Planning Unit. K Initial Results of Step 1 of Feasibility Study Golder identified area with potentially favorable geology east of Eaglemount area they call the "Southern Upland". Source was identified as Big Quilcene River water accessed via the Olympic Gravity Water System located nearby. ASR Method Proposed Southern Upland Area may be suitable for well injected aquifer recharge and passive recovery. passive recovery: Winter water is injected at a location so it will emerge later as stream base flow at periods of high demand (summer — early fall). Artificial Recharee & Streamflow Augmentation Artificial Recharge pa"l,A Recow:ry/Streamflow Augmentation Stream Source Assessment The source identified in the study is winter [lows and spring runoff on the Sig Quilcene River proposed as available in the draft instream flow rule by Ecology as being available from November 15 to June 15. The new interruptible water right would share the point of withdrawal with the City. To the best of our knowledge no alteration of the CitJs water right would be necessary Source Assessment Initial assessment assumed water was available via the Olympic Gravity Water System (OGWS) without considering in detail: - City's special Una Permit with the USFS - City operational constraints • Turbidity • Dates the reservoirs are filled • Operational commitment to mill - Proposed Instream lbws - Maximum allowtlnn window (as proposed in early draft of Instream flow rule, has since expanded) 3 Feasibility Project has Since Stalled Step 1 report published Apn12008; PUD asked Planning Unit for permission to move to Step 2. J�Iv 2008: City of Pon Townsend stated that project was not in ds mterest due 'Of special use permit, contract with mill and a need to modify Its water rights. City and PUD looked at turbidity, reservoir timing issues and proposed instream flows for the Big Quilcene allocation wind wand found very few days in multiple years in which the Big Quilcene River could be accessed during that time. However, after learning of this limitation, Ecology greatly expanded the allocation window from December 1— Feb 28 to November 16 —June 15 (increase of almost 6 nwnths). Source Assessment Amendment Proposed September 2008, source assessment amendment was pro sed to look at alternative options other than OGWS (Peterson Lake, Chimacum Creek). The PUD and Golder however were convinced there were no other comparable sources that could justify moving forward. Ecology agreed that OGWS appeared to be the most viable source. March 2009, The PUD proposed new source assessment amendment that includes a deeper analysis of the OGWS in the context of the Special Use Permit. Other Source Considerations The conditions of the City's Special Use Permit must be met in order for a possible project to be determined feasible. Any additional environmental analysis required to assess the OGWS for ASR would be borne by the applicant, not the City. ASR would be best for Ag • New water rights from ASR would be interruptible. • ASR as mitigation for a PUD water right would be problematic. • Municipalities use ASR for backup supply. • ASR better suited for junior agricultural rights, mitigation for outdoor watering. Step 2 ASR Feasibility Study Golder recommends drilling a test well to determine depth to aquifer and aquifer properties. • Will perform pump and slug tests to determine if geology is genuinely favorable for passive aquifer recharge. Current Scope Amendment Proposal • The conditions of the Special Use Permit would be the context in which source feasibility would be determined. • Only the allocation window between November and June would be studied for project feasibility. E What the ASR Feasibility Study IS • It is a fully -funded, third party analysis of the Rotential for using surplus water during periods of lgh demand. • It is a WRIA 17 watershed plan recommendation with broad community support, including the Tribes. • It is purely a commitment to study, nothing also. • It is an opportunity for the City to look at a potential revenue opportunities. • It is last best hope for future agriculture in the Chimacum Valley and the "local food movement". What the ASR Feasibility Study IS NOT It is not a threat to the City's water rights. It is not a proposal to use any City water for anything other than (maybe) aquifer testing. It is not a threat to the City's Special Use Permit as it is nothing more than a study. What an ASR Project COULD DO • It could be a new source forwater rights and mitigation that would permit new agriculture and outdoor watering in the Chimacum Valley. It could boa new source of revenue forthe Cityof Port Townsend for lease access to the OGWS. • It would be an out of basin transfer that could directly benefit salmon restoration In the Chimacum Valley. What the ASR Project WOULD NOT DO Itwould not infringe upon the City's rights or ability to some its customers. • It would not impact summer chum habitat in the Big Ouilcene River. • It would not impact the City's Special Use Permit. • It would not burden the City without some monetary compensation for lease access and operations. Options for Next Steps OPTION 1 Aquifer Testing Only Step 2 — Aquifer testing, source assessment would be deemed complete. OPTION 2 Aquifer Testing and Source Aquifer testing and assessment Revision OPTION 3 Terminate Contract Option 1 — Aquifer Testing Only Pros Original grant objectives would be effectively be met. Grant could focus on the most important limiting factor— geology (hydrogeology). Source issue could work Itself out over time. New well could suppl useful well log and aquifer property data for USGS ground water model. Cons Source issues may remain unresolved. 5 Option 2 — Aquifer Testing and Source Assessment Revision Pros Project would answer whether or not OGWS could physically be used to access Big Quilcene River source for ASR. More complete stand alone project, better project than original. Satisfies our charge as initiating governments to investigate water supplies beyond our own service areas (agriculture). Ecology's favored option. Cons Requires significant political will from all parties. Option 3 — Terminate Contract Pros - Idea will ultimately fade away... perhaps... Cons - If feasibility study is left undone, question of ASR feasibility doesn t go away. Unforeseen political consequences. May hurt Planning Unit credibility and prospects for future grant opportunities. Prospects forwater for local agriculture diminish or vanish. ASR Conclusions • The ASR project is not about the City's water rights or the PUD's alleged desire for more City water. • It's not about the PUD's water rights or water for growth in the Tri -Area. • It 12 about following through on plan recommendations and commitments to study. • It is about a potential revenue opportunity for the city. It 3 about the future of agriculture in East Jefferson County. • It is about the credibility of the watershed planning process and our ability to remain a viable grant recipient for worthy projects. Water Planning Schedule Near Term Water Planning (next 3 months - 2 years) ASR Feasibility Determine Post RCW 90.82 WRIA Options WRIA 17 Watershed Planning Revision Drought Contingency Planning PUD water system plan revision Mid -Term Water Planning (2 - 5 years) South Hastings Loop Intertie (likely to Quimper) Desalinization (scalable pilot) Long Term Water Planning (5- 20 years) Climate change abatement Explore Source Exchange Intertie with City? Reference Documents URLs and Contact Information WRIA 17 Watershed Plan httn:l/www.ecv.wa.aov/oubs10306029 oM Ground Water Storage in the Chimacum Creek Basin- Step i - Screening for Prospective Sources and Recharge Sites M1 Contact Bill Graham Resource Manager Jefferson County PUDeI bgrahamdl'efbud om (360) 3855800 est 302 Questions? Comments? 9