Form revised: December 6, 2011

 

 

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

CBO Analyst/Phone:

Seattle Public Utilities

Joan Kersnar/ 4-0839

Karl Stickel/ 4-8085

 

Legislation Title: AN ORDINANCE relating to Seattle Public Utilities; adopting the 2013 Water System Plan.

 

Summary of the Legislation:

This legislation adopts the 2013 Water System Plan (WSP).   

 
 
 


Background:  

The WSP provides guidance for planning and managing the City’s drinking water system and associated capital facilities for the next 20 years, in coordination with growth management planning by the City and that of other planning agencies in the Puget Sound Basin.  The WSP was drafted to meet state requirements for water system plans and land-use planning consistency, as well as King County requirements for franchises and permits.

 

As a condition of its utility operating permit from the Washington State Department of Health (WDOH), every six years SPU is required to submit for approval a Water System Plan for planning, managing and operating the drinking water system that serves Seattle and its wholesale customers.  Additionally, King County reviews the WSP for compliance with requirements for franchises and permits and land-use consistency.  The plan was developed to address items identified in a June 2010 pre-plan scoping meeting with WDOH and King County.  Part of the process to develop the plan included retail customer input through the Water System Advisory Committee and wholesale customer input through the Seattle Water System Operating Board.  The public was also invited to comment on a draft of the plan that was released on April 2, 2012.  Changes have been made to the draft plan to address those comments received through May 31, 2012.

 

The WSP provides guidance to SPU on future direction for all elements of its water system.  The plan includes new water use efficiency goals for the regional water conservation program; a request to change SPU’s Service Area and the place of use of SPU’s water rights to include areas in south Snohomish County; a new system storage level of reliability standard; and strategies and plans for operating, maintaining, and improving the system for the next six years and beyond.  The policies of the 2007 Water System Plan are being carried forward in this WSP.  Adoption of this WSP will replace the action plans of the previous water system plan adopted by the City (Ordinance 122309).

 

The WSP contains a Capital Facilities Plan covering the period from 2013 through 2040, which includes the budget endorsed through 2017 in the 2012-2017 Adopted Capital Improvement Program (CIP).  While the WSP contains references to proposed projects and programs, it does not commit SPU to specific expenditures, as these funding levels are adopted through the regular City budget and CIP approval processes.  This includes funding commitments for the 2013-2018 Water Use Efficiency Goal contained in the 2013 WSP.

 

Please check one of the following:

 

_X_     This legislation does not have any financial implications.

 

____    This legislation has financial implications.

 

Other Implications: 

a)      Does the legislation have indirect financial implications, or long-term implications?

Yes, adoption of the 2013 WSP has indirect financial implications.  To meet the 2013-2018 Water Use Efficiency Goals of the 2013 WSP, both capital and O&M expenditures will need to be made for the regional water conservation program.  As mentioned above, however, the WSP does not commit SPU to specific expenditures, as these funding levels are adopted through the regular City budget and CIP approval processes.

 

b)     What is the financial cost of not implementing the legislation?  

A cost estimate for not implementing the legislation is difficult.  By not adopting the legislation, SPU would not be able to submit an updated plan to WDOH and King County for their approval.  Implications of not having an approved water system plan include:

·         SPU would no longer have a “green” operating permit for its water system.

·         SPU would not meet the requirements for obtaining a low-interest loan under the Drinking Water State Revolving Fund, such as that received for the Maple Leaf Reservoir Burying Program.

·         SPU would need to obtain written WDOH approval for each individual distribution project now covered by the pre-approval process.

·         SPU would not be able to get new or renewed franchises or right-of-way permits in unincorporated King County.

·         SPU and its wholesale customers would not meet State regulations requiring establishment and reporting of Water Use Efficiency Goals (WAC 246-290, Part 8).

·         SPU’s Water Fund bond ratings may be downgraded.  

 

c)      Does this legislation affect any departments besides the originating department? 

No other City departments are directly affected by this legislation.

 

d)     What are the possible alternatives to the legislation that could achieve the same or similar objectives?

No alternatives to legislation exist.

 

e)      Is a public hearing required for this legislation? 

A public meeting was held on April 17, 2012, regarding the plan.  The City’s wholesale water customers have also provided input in the development of the plan.  However, a public hearing to adopt the WSP will meet Washington State requirements for public meetings to set the 2013-2018 Water Use Efficiency Goal and new system storage level of reliability standard.

 

f)       Is publication of notice with The Daily Journal of Commerce and/or The Seattle Times required for this legislation?

Not required.

 

g)      Does this legislation affect a piece of property?

No properties are directly affected.

 

h)     Other Issues:

None.