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AGENDA
Utilities Committee Regular Meeting
3:30 PM - Monday, May 18, 2020
Videoconference
1. Emerging Issues in Utilities
- Utility Rates
- Pipeline
a) Utility Rates Presentation
Utility Rates Briefing
Presentation to Utilities Committee
May 18, 2020
AGENDA ITEM #1. a)
Presentation Summary
•Rate Study Update
Purpose
Data Analysis
Schedule
Financial Policies
Factors Driving Rates
•King County’s Wastewater Treatment Charge (Proposed Sewer Rate Increases)
•King County’s Local Hazardous Waste Management Program (Approved Solid Waste Rate Increases)
•King County’s Disposal Fees Increases Options (Under Development)AGENDA ITEM #1. a)
Rate Study Update
Purpose
Update the rate model to determine annual rate revenue needs
to fund capital programs, operating and maintenance costs,
fiscal policy achievement, and other financial obligations of
each utility.
Data Analysis
•Capital funding strategies
•Operating forecasts for revenues and expenditures
•System development charges
Schedule
•Piped Utilities rates requires a 30-day public notice
•Solid Waste rates requires a 45-day public notice AGENDA ITEM #1. a)
Rate Study Update
Financial Policies
In 2010 Council adopted financial criteria to stabilize the utility funds.
The financial criteria include:
•Debt Coverage: 1.25 debt service coverage
•Operating Reserves: 12% of operating budget or
minimum of 30 days of operation
•Rate Stabilization: Required by bond covenants
•Fund Balance: Target of $400,000 Solid Waste,
$380,000 KC Wastewater Treatment
•Annual System Reinvestment Goals:
Water Utility -$4 million
Wastewater Utility -$3 million
Surface Water Utility -$3 million AGENDA ITEM #1. a)
Rate Study Update
Factors Driving Rates
•Capital Improvement Program
Revitalization Projects
New Infrastructure
System Reinvestment
•King County Wastewater Treatment Rate increase
•Local Hazardous Waste Management Program Fee
Increase
•King County Disposal Fee Increase
•Solid Waste Contractor CPI Increase (contractual
obligation)
•Inflation, taxes and internal service costs AGENDA ITEM #1. a)
King County Wastewater Treatment
Charge
Proposed rate increases submitted to
Metropolitan King County Council for approval:
•2021 -$2.04 (4.5%) to $47.37
•2022 -0% (To be revisited in 2021 for a
potential 2022 rate increase.)
Forecasted rate increases:
•2023-2024 -$4.86 (10.25%) to $52.23
•2025-2026 -$5.35 (10.25%) to $57.58
•2027-2028 -$8.06 (14%) to $65.64 AGENDA ITEM #1. a)
Solid Waste Utility Fee Increases
Local Hazardous Waste Management Program Fee Increase
•This fee is not a per ton fee, but a monthly fee applied to
specific customer categories as shown below:
•The overall rate increase is 5.4% in 2021 and 5.4% in 2022
Customer Sector 2020 2021 2022
Single-Family Residential (per month)$0.93 $0.98 $1.04
Commercial Cart (per month)$1.62 $1.71 $1.80
Commercial Front Load (1 –10 cu yard,
per month)$13.34 $14.06 $14.82
Commercial Roll Off (>10 cu yard, per
month)$51.27 $54.04 $56.96 AGENDA ITEM #1. a)
Solid Waste Utility Fee Increases
(continued)
King County’s 2021-2022 Disposal Fees Options
•Current Fee -$140.82/ton
King County’s Solid Waste Division presented the following options to the
Metropolitan Solid Waste Advisory Committee for discussion:
•Option A
2021 -$140.82/ton tipping fee, $0 curbside increase (0% increase)
2022 -$180/ton tipping fee, $2.12 curbside increase (28% increase)
•Option B
2021 -$140.82/ton tipping fee, $0 curbside increase (0% increase)
2022 -$174/ton tipping fee, $1.79 curbside increase (24% increase)
•Option C
2021 -$153/ton tipping fee, $0.64 curbside increase (8% increase)
2022 -$164/ton tipping fee, $0.62 curbside increase (8% increase)AGENDA ITEM #1. a)
Pipeline Briefing
Presentation to Utilities Committee
May 18, 2020
AGENDA ITEM #1. a)
Seattle Public Utilities Cedar River
Pipeline
Seattle Public Utilities (SPU) Cedar River Pipeline
•Three SPU Cedar River Pipelines runs through downtown
Renton.
•Per our agreement with Seattle Public Utilities, the City
does not receive financial compensation for the use of
city right-of-ways for the pipelines.
•In exchange, SPU grants Renton the right to use the right-
of-ways for public vehicle parking and for the Downtown
Park Plaza.AGENDA ITEM #1. a)
Seattle Public Utilities Cedar River
Pipeline (continued)AGENDA ITEM #1. a)