HomeMy WebLinkAbout44 22 JEFFERSON COUNTY
STATE OF WASHINGTON
In the Matter of Authorizing )
Application to the ) RESOLUTION NO. 4 4 2 2
Department of Ecology )
Water Quality Program )
WHEREAS, the Jefferson County Comprehensive Plan calls for the construction of the Port Hadlock
Wastewater project which will replace existing on-site septic systems, many of which are beyond their
design life and some of which are failing, and will thereby help to improve water quality in surrounding
water bodies which have been listed as impaired; and
WHEREAS, construction of the Port Hadlock Wastewater project is required under the Growth
Management Act (GMA) to fully realize the benefits of zoning within the Urban Growth Area (UGA)
including the ability to expand businesses and develop multi-family housing; and
WHEREAS, significant funding already provided by the State and County have allowed the completion of
project studies, plans, approvals, permits, easements, land acquisitions, and other items that will allow
project construction to begin in 2023; and
WHEREAS, the County, through the efforts of the Commissioners, Public Works staff, and State and
Federal legislators has already received significant construction funding for the project including:
• $20 million from the State of Washington through a budget appropriation
• $2.5 million through a federal Community Projects appropriation(plus $625,000 in local match)
• $3.0 million (likely) through a second federal Community Projects appropriation (plus $750,000
local match); and
WHEREAS, construction funding already acquired will allow the County to construct the wastewater
treatment plant, reclaimed water re-use facility, and portions of the pressurized sewer collection and
conveyance system in the"Phase I"service area; and
conveyance system
WHEREAS, additional funds are needed to complete the Phase I sewer collectionand y y
and to help connect initial users to the system to generate sewer flow at startup; and
WHEREAS, the Department of Ecology has issued a call for applications to its Water Quality Combined
Funding Program(WQC) for State Fiscal Year 2024 which are due by October 12th; and
WHEREAS, for the purposes of this application Jefferson County will be considered in"elevated hardship"
status under which the County is eligible for 75% forgivable principal loan (essentially a grant) and 25%
low interest loan at 0.4%for 20 years; and
WHEREAS, Public Works staff and consultants have been preparing said application and recommend that
the County pursue $5 million(75%) in forgivable loan principal (the maximum allowed) and $1.67 million
(25%)in a low interest loan for a total of$6.67 million through the WQC program; and
WHEREAS, successful application and acceptance of this funding will require debt payments estimated at
$87,100 per year for 20 years; and
WHEREAS, customer sewer rates are intended to cover operations and maintenance, administration, and
equipment replacement. Adding debt service would escalate rates beyond that typical for sewer utilities,
and therefore Public Works recommends that the County be prepared to service the debt associated with
this loan;
NOW, THEREFORE BE IT RESOLVED, that Public Works is authorized to make application to the
Ecology Water Quality Combined Funding Program in the amount of$5 million(75%) forgivable principal
loan and $1.67 million (25%) low interest loan, and the Public Works Director is authorized to sign said
application on behalf of Jefferson County.
APPROVED AND ADOPTED this Y( day of October , 2022.
JEFFERSON COUNTY
t 7. BOARD OF COMMISSIONERS
SEAL;
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Heidi Eisenhour, Chair
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ATTEST: Kate bean, ember
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Carolyn allaway Greg Brotherton, Member
Clerk of the Board
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Department of Public Works
O Consent Agenda
Page 1 of 1
Jefferson County
Board of Commissioners
Agenda Request
To: Board of Commissioners
Mark McCauley, County Administrator
From: Monte Reinders, P.E., Public Works Director/County Engineer?. 4.-
/
Agenda Date: October 3, 2022
Subject: Authorizing Public Works to Make Application to the
Department of Ecology Water Quality Combined Funding Program
Statement of Issue: Authorization allowing Public Works to apply to the Department of
Ecology's Water Quality Combined Funding Program (WQC) to provide construction funding for
the Port Hadlock Wastewater project.
Analysis/Strategic Goals/Pro's Et Con's: Over $23 million has been secured so far for
construction of the Port Hadlock Wastewater project. Construction is planned to begin in
early 2023, and existing funds are adequate to complete the wastewater treatment plant, the
reclaimed water facility, and a portion of the sewer collection and conveyance system in the
"Phase I" area. Additional funds are being sought to complete the Phase I area collection and
conveyance system and to help connect initial users to the system to generate sewer flow at
startup. A budget summary is attached for reference. The Ecology WQC program
applications are due by October 12th. For the purposes of this application, Jefferson County
will be considered in "elevated hardship" which allows award of up to 75% in forgivable
principal loan ($5 million maximum) with the remaining 25% as a low interest loan. As such,
Public Works is preparing an application for $5 million in forgivable principal loan (essentially
a grant) and $1.67 million as a low interest loan.
Fiscal Impact/Cost Benefit Analysis: The loan terms are expected to be 20 years at 0.4%
and will require repayment at $87,100 per year. Given the need to keep sewer rates
affordable, the County will need to be prepared to service this loan debt rather than add it to
sewer customer bills.
Recommendation: Public Works recommends that the Board sign the attached Resolution
which authorizes Public Works to make application to the Ecology Water Quality Combined
Funding Program for Fiscal Year 2024 in the amounts stated herein.
Department Contact: Monte Reinders, Public Works Director x242.
Reviewed By:
,/4 , .
9/2//7-2--
Mark McCau ey County Administrator Date