PPW091019PARKS & PUBLIC WORKS COMMITTEE MEETING
September 10, 2019
Elected Officials Present Staff Present
Councilmember Kristiana Johnson (Chair) Phil Williams, Public Works Director
Councilmember Dave Teitzel Rob English, City Engineer
Mayor Dave Earling Mike DeLilla, Senior Utilities Engineer
Jeannie Dines, Recorder
The meeting was called to order at 7:02 p.m. in Council Chambers.
1. Award of Construction Contract -Elevator Modernization for City Hall
Mr. Williams explained this project includes engineering, materials, labor, tools, equipment,
transportation, supervision, testing and inspection to modernize the City Hall elevator. Only two bids
were submitted that ranged from $347,000 to $373,000 with all the alternatives and $80,0004110,000
for the center hydraulic jack rehab which is now not needed. Staff recommends awarding the project to
the second low bidder; the low bidder was disqualified. He reviewed:
Proposed Project budget
Contract Award
$298,860
Management Reserve
$45,000
Total
$343,860
• Funding
City Hall Elevator Mod. Project C501.fm
$ 190,000
Cancelled project C534.fm
$ 100,000
Unanticipated Maint. C535.fm
$ 53,860
Total
$ 343,860
Discussion followed regarding funds from a cancelled project (replacement of a fire station bay ceiling),
the engineer's estimate, the reason the hydraulic jack does not need to be replaced, expected service
life of the elevator, how to provide service to people who need ADA access during the 45 days the
elevator will not be operational, concern there was only one responsive bid, and amount of the rejected
bid.
Action: Schedule for full Council for action
2. Presentation of a Supplemental Agreement with BergerABAM to assign the Fishing Pier
Rehabilitation Protect to WSP USA
Mr. English explained this is an administrative supplemental agreement to acknowledge BergerABAM
has reorganized under WSP USA and is taking on the responsibilities of the original agreement and the
supplementals related to the fishing pier project. Discussion followed regarding what remains to be done
on the project.
Action: Schedule on Consent Agenda
3. Accept a Public Pedestrian and Utility easement on 215th PI W
Mr. English explained this is a proposed 10-lot plat on 215th Place West; 6 lots will access from the cul-
de-sac at the end of 215th Place W and 4 lots will access from 98th Ave W. The sidewalk and utility
services will be located within the 8-foot pedestrian and utility easement that will be created adjacent to
the cul-de-sac. Planning will approve the plat in 1-2 weeks and the easement will be part of the plat
when it is presented to Council for final approval.
09/10/19 PPW Committee Minutes, Page 2
Questions and discussed followed regarding the status of the plat, a Transportation Plan policy to avoid
cul-de-sacs, and whether the street could have extended and still achieved 10 lots. Mr. English will
email committee members about the policy and whether the applicant considered extending street.
Action: Easement will be part of final plat approval which will be scheduled for action for full Council
4. Presentation of a Supplemental Agreement with Tetra Tech for the 84th Ave Overlay
Project
Mr. English explained the Council awarded this project last month and the contractor began mobilizing
yesterday. The approximately $11,000 supplemental agreement is for the original designer to provide
construction support during the construction phase.
Questions and discussion followed regarding the scope of work, an email from a citizen about the bike
lanes eliminating parking on 84', bike sharrows in areas where there is not enough pavement, limited
demand for on -street parking in the area, and other issues raised in the citizen's email.
Action: Schedule on the Consent Agenda
5. Utility Rate Analysis and Future Adoption of a Utility Rate Ordinance
Mr. Williams introduced Senior Utilities Engineer Mike DeLilla and Chris Gonzalez, Senior Project
Manager, FCS Group. Mr. Williams reviewed:
• Key assumptions
o Annual Cost inflation
■ General (CPI): 2.5%
■ Benefits:10.0%
■ Water Purchase Costs:
- 19.8% in 2020;9% in 2021; 5%+/-per year thereafter
■ Construction Costs: 4.0%
o Operating Forecast
■ Generally based on 2019 -2020 Budget
- Adjusted for inflation in future years
- Taxes computed on projected revenues
o Annual Growth
■ Water/Sewer: = 85 equivalent residential unit (ERU) per year
■ Stormwater: = 55 ESUs per year
• Utility Policies (Goals)
o Rate analysis policy on a 3-year cycle to:
■ Improve ability to weather financial cycles, risks and disruptions
■ Stabilize rates over time
■ Account for changes that are outside our control (Alderwood Rates)
■ Account for large future projects
o Capital Fund Policy
■ Meet all utility financial obligations
■ `Pay as you go' Rate funding for replacement/maintenance give significant savings to
the program.
- Repayment of Interest on a $10M bond at 4.5% over lifetime is approx. $5.2M*
■ Avoid deferral of fiscal maintenance responsibilities
■ Keep intergenerational equity
■ Target includes reserves for R&R, cost overruns, and emergencies
■ Accounts for seasonal fluctuations in spending
*Approx. $4.3M in 2019 $ using 2.5%CPI (43% total project cost savings)
• Comparison of 2019 sewer rates 10ccf Usage)
Seattle 1 $144.80
09/10/19 PPW Committee Minutes, Page 3
Kirkland
$107.33
Alderwood W&W
$76.06
Woodinville WD
$72.48
City of Arlington
$70.15
Mukilteo W&SDW
$65.21
City of LFP
$63.27
Shoreline
$59.50
Redmond
$59.48
Everett
$49.44
Lynnwood
$48.93
Edmonds $48.02
Mountlake Terrace $48.00
OVWSD $39.10
• Sewer Financial Plan Scenarios
o Annual Sewer Rate Increase Options
1. Status Quo: Full Cash Funding for CIP
2. $10M WWTP Bond
3. $10M WWTP Bond (3% increases 2020-22)
4. $10M WWTP Bond (no increases 2020-22
5. Debt for Large Projects (3% increases 2020-22
6. Debt for Large Projects (no increases 2020-22)
o Effect of options on Monthly Single -Family Bill
• Long Term Sewer Rate Forecast
• Graph of Long-term Forecast: Monthly Single -Family Rate
• Graph of Long-term Forecast: Outstanding Debt Principle
• Graph of Long-term Forecast: Cumulative Debt Service Interest Paid
• Recommendation
o Issue debt to yield $10M for support of the WWTP pyrolysis/incinerator replacement project
now
o Raise sewer rates 3.5% in 2020, 2021, 2022
o Consider additional revenue bond issuances in approx. 2024 and 2030 for the Ballinger
sewer and PS1 respectively
o Water rates as presented at 5% in 2020, 2021, 2022 due to Alderwood 21.8% and 9%
increases over the next two years
o Storm rates as presented (9.5% for next 3 years)
• Graph of long term forecast: Annual capital investment
• Graph of long term forecast: Ending cash and investment balances
Questions and discussion followed regarding annual cost inflation of 10%/year for benefits, concern
with 21.8% increase from Alderwood Water District, establishing different policies for 1 % replacement
and capital projects, developing variable sewer rates, future capital projects, storm rate increase,
inefficiencies of a break/fix model, committee members' preference to bond for large capital projects
and a 3% increase in subsequent years, intergenerational equity, and timing of the presentation to
Council. Committee member suggestions included:
• In presentation to Council, provide comparison of Edmonds' historical rates as well as
comparison of other cities' rates
• Remind users of the availability of senior/low income rate discount
Action: Schedule for full Council
The meeting was adjourned at 8:26 p.m.