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Oak Harbor Facilities PlanCity Council Workshop

March 6, 2013

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Tonight’s Agenda

• Facilities Plan Status Update

• Rate Analysis Update

• Schedule and Next Steps

– Technical Aspects

– Public Interface

– Milestone Council Decisions

• How to Stay Involved

• Questions?

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Facilities Plan Status

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Proposed SiteWindjammer Vicinity

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Windjammer Charrette Concept for MBRConceptual Plan View

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Total Project Cost SummaryYear 2030

$83.0

$7.6

$2.9

$50

$55

$60

$65

$70

$75

$80

$85

$90

$95

$100

All Facilities Through Year 2030

Proj

ect C

ost,

Mill

ions

Treatment Facility Wastewater Conveyance Effluent Discharge

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Phasing Scenarios Depend on City Growth

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2000 2005 2010 2015 2020 2025 2030 2035

Max

imum

Mon

th F

low

, mgd

Measured Data

Scenario 1, No Growth

Scenario 2, Intermediate Growth

Scenario 3, Comprehensive Plan

1

23

Notes:1: Current measured capacity is 3.0 mgd.2: Capacity required at projected year of startup (2017) ranges from 3.0 to 3.2 mgd.3: Assuming 3.4 mgd of capacity is constructed in Phase 1, years of service

(prior to Phase 2) range from 4 to 13 years.

1

2

3

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Phasing Also Depends on Navy Participation

• Navy currently contributes about 20% of flow to City facilities

• Scenario 1: Navy continues as a customer

– WWTP sized for City and Navy flows/loads

• Scenario 2: Navy does not continue as a customer

– WWTP sized for City only flows/loads

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$83.0

$72.1

$7.6

$7.6

$2.9

$2.9

$50

$55

$60

$65

$70

$75

$80

$85

$90

$95

$100

All Facilities Through Year 2030 Scenario 1: City + Navy

Proj

ect C

ost,

Mill

ions

Treatment Facility Wastewater Conveyance Effluent Discharge

The City's cost sharefor this scenario is

$60.0 M

Total Project Cost SummaryPhase 1, Scenario 1

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$83.0

$72.1

$64.8

$7.6

$7.6

$2.9

$2.9

$2.9

$50

$55

$60

$65

$70

$75

$80

$85

$90

$95

$100

All Facilities Through Year 2030 Scenario 1: City + Navy Scenario 2: City Only

Proj

ect C

ost,

Mill

ions

Treatment Facility Wastewater Conveyance Effluent Discharge

The City's cost sharefor this scenario is

$60.0 M

The City's cost sharefor this scenario is

$67.7 M

Total Project Cost SummaryPhase 1, Scenarios 1 and 2

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Phase 1 Scenario Summary

Scenario 1City + Navy

Scenario 2City Only

Phase 1 Project Cost $82.6 M $67.7 M

Navy Share (%) 27% n/a

Navy Share of Cost $22.6 M n/a

City Share of Cost $60.0 M $67.7

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Milestone Dates for Plan Approval

Date Action

March 6, 2013 Present Draft Plan to Public

March 19, 2013 Seek Council Approval to Submit Draft Plan

Summer 2013 Ecology Conditional Approval (pending environmental)

Q4 2013 - Q1 2014 Final Environmental Approvals

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Rate Analysis Update

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Two Scenarios for Navy Participation

• Scenario 1: City + Navy

– City provides service to Navy at startup of Phase 1 and through Year 2030

– All project/O&M costs are shared

• Scenario 2: City Only

– City, Navy operate independent facilities through Year 2030 (Navy no longer a customer)

– All project/O&M costs are born by City

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Navy Cost-Sharing Assumptions

• WWTP Project Costs– Navy share based on percentage of

maximum month flow (ranges from 21% to 18%)

• WWTP O&M Costs– Navy share based on percentage of average

annual flow (ranges from 17% to 14%)• Collection System Project Costs– Navy provides 100% of costs associated with

conveying Navy flow to Windjammer Vicinity• Outfall Project Costs– Navy share based on percentage of peak

flow (approximately 19% at 2030)

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WWTP Funding Assumption Review

• 2010 rate study included assumptions for the WWTP funding

• Assumptions were conservative given the project was 5 plus years in the future

• Revised assumptions are conservative yet still reflect current conditions

• Question: How do the assumptions impact the adopted rate transition plan?

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Estimated Rate Impact, August 14, 2012“Base Case” Assumed $70 million Project

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9Base Case $40.00 $42.00 $47.00 $52.00 $57.50 $64.75 $72.85 $81.95 $92.20

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00

Mon

thly

Sew

er B

ill

Summary of Required Single Family Monthly Sewer Bill

“Base Case”Monthly Rate:

$92.20

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Variables include:1. Borrowing term2. Interest rate3. Navy participation

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9Base Case $40.00 $42.00 $47.00 $52.00 $57.50 $64.75 $72.85 $81.95 $92.20 Option 1 $40.00 $42.00 $47.00 $52.88 $59.48 $68.41 $80.38 $96.45 $115.74 Option 2A $40.00 $42.00 $47.00 $52.00 $57.50 $66.13 $76.04 $89.35 $104.99 Option 2B $40.00 $42.00 $47.00 $52.00 $57.50 $64.69 $74.39 $85.55 $98.38 Option 3 $40.00 $42.00 $47.00 $52.00 $57.50 $63.54 $70.21 $77.58 $85.73

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

Mon

thly

Sew

er B

ill

Summary of Required Single Family Monthly Sewer Bill

Estimated Rate Impact, August 14, 2012Rate Scenarios for $93.5 million Project

Monthly Rates range from $85 to

> $115(Depending on

variable assumptions)

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Updated WWTP Funding Assumptions

• 2 Borrowing terms evaluated: 20 and 30 years• 2 Interest Rates evaluated: 4.5% and 6.0%• Updated City’s sewer reserves balance• Reconciled other key rate analysis

assumptions– Project cost escalated to mid-point– City portion of project cost based on Navy

participation– Cost of bonding– WWTP O&M components and costs– Project start/end dates

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Three Potential Phase 1 Funding Scenarios

• Scenario 1: City + Navy– 30 years, 4.5% interest– Results in lowest City rate

• Scenario 2A: City Only– 30 years, 4.5% interest– Rate is higher than Scenario 1; still < “Base

Case”• Scenario 2B: City Only– 20 years, 6.0% interest– Highest rate; > “Base Case”

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Comparison of Potential Monthly Sewer Bills

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9Base Case $40.00 $42.00 $47.00 $52.00 $57.50 $64.75 $72.85 $81.95 $92.20 Scenario 1: City + Navy; 30-yrs; 4.5% $40.00 $42.00 $47.00 $51.70 $56.87 $62.56 $68.81 $75.69 $83.26 Scenario 2A: City Only; 30-yrs; 4.5% $40.00 $42.00 $47.00 $52.00 $57.50 $64.40 $72.13 $80.78 $90.48 Scenario 2B: City Only; 20-yrs; 6.0% $40.00 $42.00 $47.00 $52.88 $59.48 $68.11 $77.99 $89.68 $107.62

$0

$20

$40

$60

$80

$100

$120

Mon

thly

Sew

er B

ill

Required Single Family Monthly Sewer Bill

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Summary of Rate Impacts, WWTP

• Lowest City rates result from City + Navy partnership in new facilities

• For “City Only” scenario, City rates held below “Base Case” with current, reasonable assumptions

• Opportunities to reduce City rate impact due to new WWTP continue to be explored– Grants/low-interest loan programs– Borrowing strategy– “Value Engineering”– Project Delivery Method

• Overall rate analysis for sewer utility is ongoing

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Schedule/Next Steps

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Objectives for Next Phase of ProjectThrough Year-end

• Facilities Plan approved

• Confirm planning assumptions through “Value Engineering”

• Select final location for WWTP within Windjammer Vicinity

• Complete preliminary design of WWTP

• Select most appropriate method of construction

• Complete final design of outfall to Oak Harbor

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Key Features of Approach Moving Forward

• Continue to make every effort to deliver an appropriate facility while controlling cost and impact on ratepayers

• Maintain flexibility by considering options for final WWTP site location

• Select final location considering public input, cost and City policy directives

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Step 1 – Value Engineering

• Completed on large projects to add value, control cost

• Condition of some funding sources• Facilitated by an independent 3rd party and

panel of experts• Summer 2013: Results and

recommendations offered to City Council for consideration

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Step 2 – Select Final WWTP Location Within Windjammer Vicinity

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Step 2 – Select Final WWTP Location Within Windjammer Vicinity

A. Spring/Summer 2013: Public meetings, Council deliberations establish policy, guiding principles

– Property acquisition

– Use of open space

– Additional features/benefits associatedwith facility

– Integration with othernearby land-use plans

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Step 2 – Select Final WWTP Location Within Windjammer Vicinity

B. Summer/Fall 2013: Working Group Meetings, Charrette leverage public input to develop options within Windjammer Vicinity

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Step 2 – Select Final WWTP Location Within Windjammer Vicinity

C. Fall 2013: Project team presents analysis of options to City Council for decision

– Confirm Value Engineering Recommendations

– Confirm treatment facility location

– Confirm approach to integrate facility into surroundings

• Transportation

• Parks/Open Space

• Commercial/Retail

• Government/Public Facilities

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Step 3 – WWTP Preliminary Design

A. Fall 2013: Procure key process equipment for design (membranes, UV) based on qualifications and competitive pricing

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Step 3 – WWTP Preliminary Design

B. Combine technical detail, public input to develop final “look & feel” of facility

Concept inspired by June 2012 Charrrettprocess.

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Step 3 – WWTP Preliminary Design

B. Combine technical detail, public input to develop final “look & feel” of facility

Alternate concept showing potentially different site use.

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Step 3 – WWTP Preliminary Design

B. Combine technical detail, public input to develop final “look & feel” of facility

Working Group Meetings

throughout preliminary

design.

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Step 3 – WWTP Preliminary Design

C. Develop drawings and specifications to 30 percent level detail

D. Evaluate alternatives to complete the Project– Design-Bid-Build– Design-Build– General Contractor/Construction Manager

E. Spring 2014: Select delivery option and proceed to final design in early 2014

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Step 4 – Outfall Final Design

• “Fast track” to provide necessary information for permitting

• Complete in parallel with Steps 1 – 3• Design complete in fall 2013• Construction possible in 2014, pending

results of construction delivery analysis

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Significant Council Actions & Decisions

Date Action/Decision

Mar 19, 2013

Council authorizes submission to Ecology; Approves next phase of project

Summer 2013

Council sets policy and guiding principles to select final location

Fall 2013Council selects final location of treatment facility

Spring 2014Council approves approach to complete project

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Overall Project Schedule

OAK HARBOR CLEAN WATER FACILITYPROPOSED SCHEDULE FOR PROJECT COMPLETION

2013 2014 2015 2016 2017

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

PREDESIGN PHASE

APPROVEFACILITIES PLAN

CONSTRUCTION PERIOD

START UP

Agency DraftSubmission

Submit Plans & Specs

FINAL DESIGN PHASE

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How can I stay involved?

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Send an email or give us a call if you would like to participate:

Joe Stowell, City Engineer 360-279-4520 jstowell@oakharbor.org

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Questions?