Loading...
HomeMy WebLinkAboutPW Hadlock Sewer $85,000 a yearPORTHADLOCKSEWER PUBLIC INFRASTRUCTURE FUND (PIF) PROPOSAL 2024 RFP This page intentionally left blank 1 Jefferson County, Washington Public Infrastructure Fund Project Application Return all Application Materials in Microsoft WORD/EXCEL to: carolyn@co.jefferson.wa.us Date: October 23, 2023 Project Title: Port Hadlock Wastewater Project Amount requested from PIF: $85,000/year Percent as Grant: 100% Percent as Loan: Applicant: Jefferson County Contact: Monte Reinders Address: 623 Sheridan Street City, State, Zip: Port Townsend, WA 98368 Phone: (360) 385-9242 Fax: N/A E-mail: mreinders@co.jefferson.wa.us Responsible Official: Monte Reinders, P.E. Public Works Director/County Engineer Signature: 1. Briefly describe your project. When did you start work on it? Who is involved? What is the scope of the project? The Port Hadlock Wastewater project will bring sanitary sewer service to the Port Hadlock Urban Growth Area (UGA), which is currently only served by aging, and in many cases failing, individual septic systems. Adequate wastewater infrastructure is identified as Goal #3 in the North Olympic Peninsula Comprehensive Economic Development Strategy (CEDS), page 35. A municipal sewer is a requirement to implement urban zoning levels in the UGA per State of Washington Growth Management Act (GMA) requirements. Without municipal sewer, Port Hadlock retains its restrictive rural zoning which limits economic development potential within the UGA and County. A map of the initial sewer service area, an area of 2 about 275 acres, is included as Exhibit A – Phase I Service Area. The full UGA encompasses 1,290 acres, and sewer is planned to expand into this area in the future. The full UGA is shown in Exhibit B – UGA Map. As an example of the “before and after sewer” zoning opportunities, the 17-acre “airstrip” property behind Chimacum Primary School can only be developed with 3 single family residences under the current rural RR 1:5 zoning (one housing unit per 5 acres), the maximum allowed under GMA. With the sewer installed, however, the zoning becomes UGA-MDR (Medium Density Residential) supporting up to 12 units per acre which is over 200 housing units on the property. A housing consortium led by Habitat for Humanity recently purchased this property and plans to develop at this density because the sewer is now under construction. This will bring much needed workforce housing for existing and planned job growth in the surrounding area. Access to workforce housing is identified as a key strategy in the North Olympic Peninsula CEDS, page 32. As another example, the QFC grocery store, the only supermarket outside of Port Townsend in Jefferson County, is currently hemmed in by its large septic system and reserve drain field and therefore cannot expand. Parking at this store is regularly filled to capacity and expansion is desperately needed. With the sewer, the zoning will become UGA-C (Commercial), which is less restrictive than the current rural zoning, and QFC will be able to expand to meet the needs of the growing community. The Port Hadlock Wastewater project has been under development for over 20 years. The Port Hadlock Sewer Facility Plan was first completed in 2008 at which time it received approval from the Department of Ecology, State Department of Health, and the WA Growth Management Board. (The Facility Plan was updated in 2021). In the intervening years, as funding could be obtained, engineering studies and designs were completed, further approvals were received from the Department of Ecology and Department of Health, and land was acquired for sewer facilities. The great recession that began in 2008 slowed progress on the project, and efforts to secure complete project funding were not successful for many years. Beginning in 2020, however, the WA Legislature funded the final design and in 2021 provided a sizable appropriation of $20 million toward facility construction. Additional grants and appropriations, as well as a loan, have since been secured to fund the construction of this project, and construction is now underway. A summary of the project budget and funding is attached as Exhibit C – Project Budget and Funding. The scope of the current project includes the following: • Wastewater Treatment Plant (WWTP) Site Earthwork and Utilities: This phase is currently under construction and includes all site earthwork for the WWTP, roadways, influent and effluent sewer main lines, site utilities (power, water, fiber), and a large infiltration or “re-use” site for the treated wastewater. Work will be completed in December 2023. • Wastewater Treatment Plant (WWTP) Construction: Bidding is currently underway for this phase. The scope includes construction of a 90,000 gallon per day membrane bioreactor (MBR) wastewater treatment facility which will produce the highest 3 quality Class A reclaimed water - near drinking water quality. The MBR equipment has already been procured by the County from Ovivo USA, LLC. Other project components include yard piping, equalization tankage, administration buildings, MBR canopy, equipment and chemical storage buildings, biosolids handling, odor control, emergency back-up power, and SCADA control systems. Treated, reclaimed water will be discharged into the recently completed infiltration facility near the floodplain of Chimacum Creek and will supplement the aquifer. Biosolids will be thickened and transported to the City of Port Townsend compost facility. The facility has capacity for significant growth in the initial service area and is designed to be easily expandable as the UGA grows. • Phase 1 Area Collection System: Bidding for this phase of work is planned for late November of this year and will include construction of HDPE low pressure sewer collection system pipes installed in, or along, county roads and state highways to serve adjacent properties. • On-site Sewer Connections: This work consists of installing grinder pumps and electrical control panels on each property with an existing septic system, connecting to existing building drains, and decommissioning septic systems. Grinder pumps will grind and then push sewage through the HDPE low pressure collection pipes to the WWTP. The grinder pumps will be owned and maintained by the County, as required by the Department of Ecology. This work will be bid in early 2024 and will be completed under multiple construction contracts, starting with the larger water users and required connections, then working through the remaining Phase I connections as funding allows. This project will be one of a very few new sewer systems built in Washington state in the last two decades. While sewer expansions, modernizations, and replacements are common, it is very unusual to build a new sewer system in an established community such as Port Hadlock where no sewer has existed previously. The high cost for this kind of infrastructure is difficult to finance with a start-up user group, which does not have the ability to cover capital costs and debt. Without the significant infusion of federal and state grant funds, this project would not have been possible because sewer rates would not have been affordable. With the current financing in hand though, the County is constructing this project without saddling the sewer users with high debt. This allows sewer rates to be set at affordable and regionally appropriate levels to fund operations and maintenance of the system. An equivalent residential unit or ERU will pay $80 per month for sewer service. The County anticipates that it will still need to subsidize operations and maintenance in the early years of the sewer while the user base expands. Our 2024 Public Infrastructure Fund (PIF) proposal is for $85,000 per year for the next 20 years which will cover payments associated with a $1.67 million Department of Ecology loan that was recently awarded. The County’s successful application for these Ecology funds was ranked as the #2 project in the State out of 150 applications submitted. As shown on Exhibit C – Project Budget and Funding, the estimated project cost is $33 million. Full project funding has been obtained, all of which is from grants and appropriations except for this $1.67 million Ecology loan at 0.4% interest for 20 years. The County is required to take on this loan in order to receive $5 million in grant funding from Ecology. The terms are exceptionally favorable; however, as 4 has already been stated, debt service cannot be covered by the sewer users if sewer rates are to be kept affordable. (Note that Ecology offered these favorable terms because Port Hadlock is considered “distressed” by nationally recognized metrics including median household income). This proposal will cover these loan payments and is considered critical to the success of the project. This PIF investment will leverage $5 million in Ecology grant funds (leverage ratio of 3:1) and a $33 million infrastructure project (leverage ratio of 19:1). This proposal represents an excellent investment for the PIF program. Jefferson County started working more than five years ago with our State representatives to extend the 0.09 legislation (the basis for PIF) so that there would be a source to cover future borrowing for infrastructure projects. Thanks to the efforts of many in this region and other rural counties who followed Jefferson County’s lead, the 0.09 program was recently extended by the Legislature from its previous expiration date of 2032 to a new expiration date of 2054 (RCW 82.14.370). This means that the PIF program will be able to make this modest investment of $85,000 per year (from 2024 through 2044) into the County’s top infrastructure project valued at $33 million. By the mid- point of this loan repayment (around the year 2034), this investment will account for less than 10% of the annual PIF revenues. This amount of leveraging makes our proposal a very attractive investment for the Jefferson County PIF program when considering its high economic benefits and the fact that the project is already under construction. Per this proposal, PIF would account for approximately 5% of the total sewer construction cost, which is far below the 80% allowed in the PIF application instructions. To visualize how this proposal fits with the overall PIF revenue stream, please refer to Exhibit D – PIF Projections. By way of explanation, in 2004, the Board of County Commissioners dedicated 50% of the PIF revenues to the Port Hadlock Sewer for an indefinite time period (Ordinance 19-1220-04). (Clallam County also did something similar for their Carlsborg sewer). This funding was used to develop the required Sewer Facility Plan, fund many required engineering studies, match federal grants for design, and purchase large amounts of property needed for the sewer facilities. Bonds and low interest loans were used for this work which are being serviced by this PIF commitment. Without this PIF investment, the Port Hadlock Sewer would not have been in a position to acquire $33 million in outside funding and begin construction. In other words, the PIF program did exactly what it was designed to do. In 2021, the County decided that it would be more equitable to others in the region to reduce the amount going to the Port Hadlock sewer down to a flat $240,000 per year, an amount just adequate to cover existing sewer debt, and to establish a sunset date in for this transfer in 2032 rather than running indefinitely (Ordinance 01-0726-21). This action immediately lowered the PIF amount going into the Hadlock sewer project from 50% to 33% of annual PIF revenues, which freed up over $100,000 in each of the last two years for other regional applicants. Considering the steady increase in PIF revenues, this will free up an estimated $1.9 million for other projects through the year 2032. The current proposal is for $85,000 per year (2024 to 2044) to service the new $1.67 million Department of Ecology loan (a prerequisite for receiving an additional $5 million in grants). Even with this addition, there would still be nearly $1.2 million more available for other PIF applicants in the years 2024-2032 than would have been available under the old 2004 ordinance 5 where 50% went to the sewer. After the $240,000 transfer sunsets in 2032, the sewer would only be receiving $85,000 per year, which will be less than 10% of the available PIF revenue each year. The $85,000 transfer will sunset in 2044. Overall, from the years 2022 until PIF sunsets in 2054 the sewer will receive a combined total of less than 12% of the available PIF revenue. The County is of the opinion that this is an equitable share to invest in the County’s largest and most important infrastructure project over this multi-decade time span. 2. How does the project satisfy, in whole or in part, the jurisdiction’s economic development strategy? Outside of incorporated Port Townsend, the County’s economic commercial center is Port Hadlock/Irondale/Chimacum. This has long been recognized in the County’s Comprehensive Plan and led to the establishment of the Port Hadlock Urban Growth Area (UGA) over two decades ago. The UGA was created in response to Growth Management Act (GMA) requirements that limited the potential for growth and economic development in the County by imposing rural zoning. Per GMA, the key to unlocking the Urban Growth Area is the provision of municipal sewer service, a requirement to implement urban zoning. Adequate infrastructure has always been the key to economic vitality. This is the whole premise behind the 0.09 tax legislation from which PIF is derived. Without adequate roads, water, sewer, power, internet, etc. it is very difficult for a community to thrive economically. The 0.09 program is designed to return a portion of the state sales tax to rural counties for investment in infrastructure that can drive economic development (and in return generate more sales tax). For almost 25 years, the Port Hadlock Sewer has been the County’s #1 infrastructure priority because of the economic benefits it will provide. With the sewer in Port Hadlock, the urban zoning will open up many new possibilities for commercial growth and associated services such as employee housing. Some examples have already been cited earlier in this application such as the potential for expansion of QFC. The Northwest School of Wooden Boat Building is within the initial sewer service area and is very supportive of this project. The school employs a number of instructors and brings students to the area in need of housing. Many of these graduates go on to work in the marine trades in Jefferson County. Maritime sector development was ranked as one of the most promising opportunities in the region in a survey published in the North Olympic Peninsula Comprehensive Economic Development Strategy (CEDS). The CEDS lists “inadequate access to skilled workforce” as a regional weakness and furthermore identifies the Northwest School of Wooden Boat Building as a Key Partner (pages 22-23). Other businesses in Port Hadlock have closed due to septic issues, or are currently limited in what they can offer due to septic limitations. Others have had to make very large investments to replace septic systems, but even after these large septic investments are still constrained with restrictive rural zoning per GMA. 3. Is this project a documented county-wide priority? If so, where does it rank? The Port Hadlock Sewer is the County’s number #1 infrastructure priority, and has been for over two decades, as identified in the Comprehensive Plan, CEDs list, and other documents. The 6 County has invested significant resources to get this project off the ground and the effort is now paying off. By keeping this project at the top of the County’s priority list for 20 years, the result has been recognition at the state and federal level that this project must happen, and the funding has flowed from there. This would not have happened if the County had been unclear and inconsistent about its priorities. The County, using PIF money, made sure this project was nearly “shovel-ready” when pandemic relief funding and recovery (infrastructure) money started flowing in 2021. 4. Summarize efforts taken to date regarding the project in terms of specific steps/studies and dates of action, where appropriate. a. Is the project part of a plan (capital facilities, growth management, business development, etc.)? For over two decades, the Port Hadlock Wastewater project has been identified as the top infrastructure priority in every County plan. The project is a focus of the County’s Comprehensive Plan. b. What engineering reports and feasibility studies have been prepared, and when? • Port Hadlock Sewer Facility Plan, Tetra Tech, 2008 (updated 2021) • Significant public outreach, Triangle Assoc. and staff, 2005 – 2023 and ongoing • Financial models and plans, Katy Isaksen and staff, 2005 -2023 and ongoing • 30% Design, Tetra Tech, 2010 • Geotechnical Study/Report, HWA, 2012 • Groundwater Modeling/Study/Report, HWA, 2012 • Value Engineering Study, RSRI, 2012 • Preliminary Design, Tetra Tech, 2014 • Cultural Resource Survey/Study, ESA, 2011, 2021, and ongoing • Property appraisals/purchase, 2012 • Permitting, SEPA, etc. ESA, 2011, 2021, NEPA ongoing • Value Engineering Feasibility Study, Tetra Tech, 2019 • Final Design, Tetra Tech 2021-2023 c. Summarize efforts you’ve taken to date regarding the project in terms of: 1. Securing funding for this project from local, state or federal programs or foundations. Please refer to Exhibit C – Project Budget and Funding which details the project funding that has been secured and which totals over $33 million. The project is substantially funded and is under construction. 2. Specify sources, including local match and dollar amounts. If there are conditions attached to any of these secured funding sources, please specify. 7 Please refer to Exhibit C – Project Budget and Funding which details the project funding that has been secured and totals over $33 million. The project is substantially funded and is under construction. The County has applied for waivers from the local match required on the federal appropriations from Murray/Kilmer EPA. It appears the project qualifies for these waivers based on community economic hardship, and the County is awaiting a determination from the EPA. The $1.67 million loan from Ecology is a requirement to receive the $5 million grant from Ecology. d. Are there other efforts you have made that are unique to this project? • As was previously mentioned, this project is unique. New sewers are very rarely built in established communities like Port Hadlock because of the difficulty in making the financing work. We are aware of perhaps 2 similar projects in the State of Washington over the last two decades. Twenty years of perseverance, steady progress, Covid recovery funding, and shovel-ready positioning made this possible. The PIF program was instrumental in providing seed money for this project to develop the Sewer Facility Plan and as a source for land acquisition and engineering studies. This is exactly what the PIF program was designed to do – spur infrastructure projects in underserved rural communities to allow economic development. • The County engaged a lobbying firm to work in both Olympia and Washington D.C. to help direct funding to the project. This arrangement paid dividends in the long run. This firm was also helpful in the County’s efforts to get the 0.09 legislation extended through the year 2054. • The County borrowed money to purchase property for this project. Property was acquired from several owners on a willing seller basis which has made this project possible. If not for the cooperation of these land owners, the project would not be possible. • Literally hundreds of meetings, phone calls, and interactions with individual property owners have occurred. This type of project cannot succeed with just a few large public meetings. Each property owner must be treated like an individual project – they are! This has required significant effort from a very dedicated Public Works staff. 5. What are the anticipated outcomes of this project in terms of the criteria identified below? Quantify information where possible. a. How will this project improve local infrastructure capacity? This project will install the first wastewater treatment plant (WWTP) in Port Hadlock, construct the sewer collection system (pipes in the street), and connect many existing businesses and multi-family properties to the new sewer. The WWTP will use state-of- the-art membrane bioreactor technology and ultraviolet light disinfection to produce the highest quality reclaimed water, as required by the Department of Ecology. The water 8 will be infiltrated into the ground at a facility just constructed in October 2023, which will supplement the aquifer under Chimacum Creek. There are approximately 100 individual septic systems in the initial sewer service area. Existing septic systems range from small, serving a single small business, to very large systems serving the QFC supermarket and laundromat. Average winter-time water flow (i.e. non-irrigation flow) in this initial service area is 45,000 gallons per day per PUD water records. In the larger UGA, there are over 1,200 septic systems. Many septic systems are 50+ years old with very limited documentation (or none!). Septic systems and required reserve drain field areas can consume a large amount of usable property as in the case of QFC and the laundromat. Septic systems do not last forever and are not maintenance free. Some businesses have been forced to invest hundreds of thousands of dollars to fix septic systems, and even after repairs are still limited with rural zoning. The Ajax Café was closed for several years due to a failed septic system. This project will not only serve to unlock the urban zoning required for economic development but will also improve water quality in a community surrounded by Port Townsend Bay and Chimacum Creek. Currently, shellfish closures occur regularly on the nearby beaches. Chimacum Creek has been listed as Impaired (Category 5) for fecal bacteria on the Clean Water Act 303d list since 1996 (listing ID 16738). Not surprisingly, the Jefferson County Department of Health is a strong supporter of this project. See Exhibit E – Sewer Water Quality Benefits. b. How many businesses do you plan on serving with this project? There are nearly 40 private business properties (some housing more than one business) that will initially be served by the sewer with the potential to serve many more. There is pent-up demand in Port Hadlock for business expansion, development, and re- development just waiting for sewer, and there is vacant land available for development as well. The WWTP and collection system has been carefully designed to accommodate growth and expansion. As per the Sewer Facility Plan, logical sewer expansion areas in the current UGA boundary include the “Rhody Drive” phase (SR-19 corridor from Irondale Road south to SR-116 Carl’s Building Supply) and the “Alcohol Plant” phase. Both of these areas are primarily commercial with the potential to accommodate many new businesses. The sewer will also connect to government facilities including Chimacum Primary School, Jefferson County Library, Sherriff’s Office, County Jail, Emergency Operation Center, Jeff Comm, and the County Roads Shop. These are important community facilities that serve businesses and residents alike throughout the County and in some cases the City of Port Townsend. Additionally, this project will also create the opportunity to develop many more units of workforce housing, which will also serve businesses in the region. The importance of affordable employee housing cannot be overstated when it comes to the viability of private and public business alike. This is a strong theme repeated throughout the North 9 Olympic Peninsula Comprehensive Economic Development Strategy (CEDS). The Habitat for Humanity project at the old airstrip property was previously discussed in this application and is a good example of this. A teacher could walk to the primary campus from here or a QFC employee could walk to their job from here. c. How many full-time, permanent jobs will this project create or retain? 1. Retain: The sewer will retain jobs that might be lost without the project. We’ve already seen businesses close for extended time periods or limit their operation and/or operating hours because of septic system problems. Furthermore, housing opportunities created by the sewer could help businesses retain employees and thus remain open and viable. Businesses have closed in this County due to difficulty finding employees, which is directly related to housing availability. 2. Create in 1-3 years: 15 Business growth will occur as a result of constructing the sewer, which will unlock urban zoning. Property and business owners have made it clear that there is pent up demand for this through many inquiries and meetings with staff, which have skyrocketed since sewer construction began. It is likely that in the first 1 to 3 years, growth will be slow to moderate as property owners formulate plans, obtain permits, and/or sell property to other developers. Construction jobs will be associated with this growth, and full-time jobs will occur as these new businesses open or existing businesses expand. There will also be 3 to 4 full or part-time jobs associated with sewer operations, maintenance, and administration. 3. Create in 3-5 years: 30 (see discussion above) Census data and American Community Survey (ACS) data has been consulted but is of limited usefulness as it does not drill down far enough into this geographic area. For the 98339-zip code, it lists 118 private business establishments and 712 employed individuals; however, some of these workers could be employed outside of the UGA and the 98339-zip list is larger than the initial sewer service area. A reasonable estimate of employment within the initial sewer service area would be approximately 200 persons. Assuming 3% growth per year created by the sewer then would equate to 30 jobs over the next 5 years. There will be job growth in all business sectors including retail, as well as housing managers, caretakers etc. Also, as the sewer extends into new areas such as Rhody Drive, additional job opportunities will be created. See Exhibit F – Example Letters of Support. d. What is the size of the population that will benefit by these infrastructure improvements? The 2020 Census lists the population of Port Hadlock as 3,983 which is an 11.3% increase from 2010. Since the initial (Phase I) area to receive sewer service is largely commercial, the project is designed to serve a significant portion of the County’s east- side rural population, which is over 20,000. As has already been mentioned, QFC is the 10 only supermarket outside of incorporated Port Townsend and is regularly at capacity. The laundromat is the only one in the unincorporated County as is the library. Chimacum Primary School serves all of the students from a large district in the center of the county. The County jail is used to hold everyone arrested in the entire County as well as the City of Port Townsend. Henery Hardware (previously Hadlock Building Supply) serves most of the County, and some City customers, as does Olympic Rentals. Restaurants serve residents throughout the region. See Exhibit F – Letters of Support – for a sampling of property owner interest in this project. 6. How many months will the work on this project take to complete? This project is currently under construction and scheduled to be completed by the end of 2025. Additional connections for certain sewer users may extend beyond that date, depending upon funding availability. 7. Are there other factors significant to this project that we should be aware of, such as health and safety, emergency declaration, “bird in hand” efforts, volunteer efforts, etc.? The 2024 PIF proposal application instructions list eleven (11) criteria that the PIF Board will consider to evaluate projects, and this project ticks all the boxes. • Public infrastructure where none currently exists to unlock zoning and economic development • Top County priority for two decades • Massive “leveraging” of State/Federal grants using PIF funds (Exhibit C – Project Budget and Funding) • Project already under construction • Extensive public outreach. Multiple one-on-one meetings with virtually every property owner in the sewer service area • Broad public support (See Exhibit F – Example Letters of Support) • Positive environmental benefits for water quality and aquifer recharge (Exhibit E – Sewer Water Quality Benefits) Port Hadlock UGA Sewer Facility Plan Update (Draft) Executive Summary xx Figure ES-3. Sewer Phasing and Implementation Areas Esimated Construction Cost WWTP Construction 12,500,000$ WWTP, WW Reuse Facility, Main Influent Pipeline, SCADA Controls CA/CM and Startup 2,000,000$ Construction Admin/Management, WWTP Startup WWTP Subtotal:14,500,000$ Collection & Connections 17,000,000$ Collection System, Property Connections, Septic Decommissioning CA/CM & Property Owner Coord.1,600,000$ Construction Admin/Management Collection Subtotal:18,600,000$ Total Construction Cost:33,100,000$ Construction Funding Fed/State County/Local Department of Commerce (Secured)20,125,000$ County Added to Commerce Project 1,500,000$ Remaining committed ARPA 1/1/23 Patty Murray EPA (Secured)2,500,000$ Patty Murray County Match 625,000$ 20% local match* Derek Kilmer EPA (Secured)3,000,000$ Derek Kilmer County Match 750,000$ 20% local match* Ecology Water Quality Grant (Applied)5,000,000$ -$ Requires acceptance of loan portion below Ecology Water Quality Loan (Applied)1,670,000$ 20-year loan at 0.4% = $87,100/year Funding Subtotals:30,625,000$ 4,545,000$ County Total Total Revenue:35,170,000$ (Federal+State+Local) Revenue - Expense:2,070,000$ Contingency Funds 695,000$ Actual Contingency w/ Federal Match Waivers * County has applied for local match waivers due to hardship criteria. EXHIBIT C - PROJECT BUDGET AND FUNDING PIF 2004 Ord.2021 Ord.2021 vs.Total Percent (%)2021 vs. PIF Growth Rate 50% Pt. Hadlock Pt. Hadlock 2004 Ord.This Pt. Hadlock PIF 2004 Ord. Year 2.50%Sewer Sewer "Savings"Proposal Sewer for Sewer "Savings" 2022 730,000$ 365,000$ 240,000$ 125,000$ -$ 240,000$ 33%125,000$ 2023 750,000$ 375,000$ 240,000$ 135,000$ -$ 240,000$ 32%135,000$ 2024 768,750$ 384,375$ 240,000$ 144,375$ 85,000$ 325,000$ 42%59,375$ 2025 787,969$ 393,984$ 240,000$ 153,984$ 85,000$ 325,000$ 41%68,984$ 2026 807,668$ 403,834$ 240,000$ 163,834$ 85,000$ 325,000$ 40%78,834$ 2027 827,860$ 413,930$ 240,000$ 173,930$ 85,000$ 325,000$ 39%88,930$ 2028 848,556$ 424,278$ 240,000$ 184,278$ 85,000$ 325,000$ 38%99,278$ 2029 869,770$ 434,885$ 240,000$ 194,885$ 85,000$ 325,000$ 37%109,885$ 2030 891,514$ 445,757$ 240,000$ 205,757$ 85,000$ 325,000$ 36%120,757$ 2031 913,802$ 456,901$ 240,000$ 216,901$ 85,000$ 325,000$ 36%131,901$ 2032 936,647$ 468,324$ 240,000$ 228,324$ 85,000$ 325,000$ 35%143,324$ Subtotal:9,132,536$ 4,566,268$ 2,640,000$ 1,926,268$ 765,000$ 3,405,000$ 1,161,268$ 2033 960,063$ 480,032$ -$ 480,032$ 85,000$ 85,000$ 9%395,032$ 2034 984,065$ 492,032$ -$ 492,032$ 85,000$ 85,000$ 9%407,032$ 2035 1,008,667$ 504,333$ -$ 504,333$ 85,000$ 85,000$ 8%419,333$ 2036 1,033,883$ 516,942$ -$ 516,942$ 85,000$ 85,000$ 8%431,942$ 2037 1,059,730$ 529,865$ -$ 529,865$ 85,000$ 85,000$ 8%444,865$ 2038 1,086,224$ 543,112$ -$ 543,112$ 85,000$ 85,000$ 8%458,112$ 2039 1,113,379$ 556,690$ -$ 556,690$ 85,000$ 85,000$ 8%471,690$ 2040 1,141,214$ 570,607$ -$ 570,607$ 85,000$ 85,000$ 7%485,607$ 2041 1,169,744$ 584,872$ -$ 584,872$ 85,000$ 85,000$ 7%499,872$ 2042 1,198,988$ 599,494$ -$ 599,494$ 85,000$ 85,000$ 7%514,494$ 2043 1,228,962$ 614,481$ -$ 614,481$ 85,000$ 85,000$ 7%529,481$ 2044 1,259,686$ 629,843$ -$ 629,843$ -$ 0%629,843$ 2045 1,291,179$ 645,589$ -$ 645,589$ -$ 0%645,589$ 2046 1,323,458$ 661,729$ -$ 661,729$ -$ 0%661,729$ 2047 1,356,544$ 678,272$ -$ 678,272$ -$ 0%678,272$ 2048 1,390,458$ 695,229$ -$ 695,229$ -$ 0%695,229$ 2049 1,425,220$ 712,610$ -$ 712,610$ -$ 0%712,610$ 2050 1,460,850$ 730,425$ -$ 730,425$ -$ 0%730,425$ 2051 1,497,371$ 748,686$ -$ 748,686$ -$ 0%748,686$ 2052 1,534,806$ 767,403$ -$ 767,403$ -$ 0%767,403$ 2053 1,573,176$ 786,588$ -$ 786,588$ -$ 0%786,588$ 2054 1,612,505$ 806,253$ -$ 806,253$ -$ 0%806,253$ Subtotal: 27,710,172$ 13,855,086$ -$ 13,855,086$ 935,000$ 935,000$ 12,920,086$ Total: 36,842,708$ 18,421,354$ 2,640,000$ 15,781,354$ 1,700,000$ 4,340,000$ 11.8%14,081,354$ EXHIBIT D - PIF PROJECTIONS Public Infrastructure Fund (PIF) 2032 was previous sunset date for 0.09 legislation, but is now extended to 2054. Always working for a safer and healthier community 615 Sheridan Street Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org Community Health Environmental Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) (f) 360-379-4487 Kate Dean, chair Jefferson County Board of Commissioners March 7, 2019 Here is a summary of the water quality concerns in the area to be served by the Hadlock Sewer: 1. Chimacum Creek has been listed as Impaired (category 5) for fecal bacteria on the Clean Water Act 303d list since 1996 (listing ID 16738). 2. Two monitoring stations on lower Chimacum Creek have failed state water quality standards for fecal coliform every year they have been monitored. 3. Trend analysis at these stations have showed no statistically significant improving trend. 4. Microbial Source Tracking results from the EPA in 2012 showed the presence of human bacteria indicators in each of three sampling sites in the area. 5. Jefferson County’s shoreline monitoring found Irondale Creek to have the highest levels of E. coli bacteria found in the county to date, (average >15,000 units). Septic corrections in 2016 appear to have made improvements. 6. Half of the Chimacum Tidelands recreational shellfish beach has been closed by WA Fish & Wildlife due to bacterial pollution from Irondale Creek since 2013. 7. Irondale Beach County Park was posted with a Warning – Stream Polluted sign for 5 years to keep children and adults from having contact with the water. 8. Beachgoers at Irondale Beach County Park have been warned with Caution signs about the threat of bacterial pollution while swimming. 9. A commercial shellfish harvest request has been made for the waters of Hadlock Lagoon, a previously unclassified shellfish area adjacent to the sewer service area. 10. Sanitary surveys by Jefferson County Public Health over a 10 year period have found that septic systems are the primary source of non-point source pollution. 11. There are approximately 1,200 septic systems in the sewer service area. o 17% are current on their monitoring inspection. The rest have either never been inspected or are past due. o At least 35% are older than 1985 and are well beyond their design life of 30 years. 12. One of the largest septic systems in the core area serving a large grocery store is failing. Another serving one of the largest apartment buildings near the shore is in violation. 13. A large number of parcels in the area were platted in the early 1900s and are too small to meet minimum land area requirements for new permits. 850 parcels (~45%) are less than 1,250 sf in size. I hope this is helpful. Please call me if you have any questions. Michael Dawson Water Quality Manager Jefferson County Public Health 360-344-9301 EXHIBIT F EXAMPLE LETTERS OF SUPPORT Ph (360) 385-5800 310 Four Corners Road, Port Townsend, WA 98368 Public Utility District No. 1 of Jefferson County is an Equal Opportunity Provider and Employer September 15, 2022 Washington State Department of Ecology Water Quality Program State Fiscal Year (SFY) 2024 Funding Cycle Subject: PHUGA Public Sewer System Support Letter To Whom it May Concern, PUD No. 1 of Jefferson County (JPUD) would like to express our support for Jefferson County applying for Ecology’s Water Quality Program State Fiscal Year (SFY) 2024 Funding Cycle for the Port Hadlock Urban Growth Area (PHUGA) Public Sewer Project. JPUD is partnering with Jefferson County for this project, as JPUD will provide the operation and maintenance services at the completion of the project. Our staff is assisting with the review of the sewer county ordinances, plans and general questions about sewer. JPUD provides water, wastewater, electric and broadband utility services to East Jefferson County and with our early involvement the results will provide a smooth transition from design and construction to operations for our customers/residents. Providing a new public sewer to an urban growth area that has never had public sewer service is an expensive undertaking and making the project affordable to our community is an important factor. We wholeheartedly support the County’s application for funding through Ecology’s Water Quality program. Sincerely, Kevin Streett General Manager kstreett@jeffpud.org Board of Commissioners: Jeff Randall, District 1 Kenneth Collins, District 2 Dan Toepper, District 3 Kevin Streett, General Manager September 12, 2022 To whom it may concern at the Department of Ecology: The Jefferson County Library District strongly supports the Port Hadlock Urban Growth Area Public Sewer System (PHUGA). This project has been in the planning for over 15 years and is essentially shovel- ready, with all property acquired, and engineering and design work well underway and scheduled for completion this year. Jefferson County seeks to build the sewer in order to “turn on” the greater density allowed in an urban growth area, per GMA. Business and property owners, including the Jefferson County Library District, seek to expand and improve their properties without the constraints of septic systems. Until this sewer project is built, growth and development are stymied. For example: The Jefferson County Library District is served by a single main branch located in Port Hadlock. The District is dependent upon its septic system—if it fails, the library cannot open to serve the 20,000 residents of unincorporated Jefferson County. Frequent issues with septic tanks and drain fields have cost the library thousands of dollars in recent years and have unpredictable negative impacts on our budget and service to our patrons. A sewer system is a necessary step toward insuring consistent, equitable library (and basic hygiene) services for our county residents as well as ensuring that wastewater is treated to the highest standards and highly-treated effluent can be reclaimed to the local aquifer. Additionally, the District is in the process of expanding its mobile services, which involves constructing a new building to house an electric delivery vehicle and expanded storage. However, we are unable to include a restroom, sink, or any water service to the building due to a prohibition on new water connections due to the size of our drain field/septic system and the lack of a sewer connection option. In the future, it will cost the District thousands of taxpayer dollars to retroactively add something as simple as a toilet and mop sink in this “new” building. These are the types of impacts to local growth and development that the Port Hadlock area deals with on a daily basis due to a lack of sewer system. Thank you for your support of rural, maritime communities like ours. Bringing new public sewer to an urban growth area that has never had public sewer service is an expensive undertaking and we need to ensure that it will be affordable for our community. The Jefferson County Library District is pleased to support the County’s application for funding through Ecology’s Water Quality program. Respectfully, Dr. Tamara R. Meredith Director, Jefferson County Library District 620 Cedar Ave. * Port Hadlock, WA * 98339 tmeredith@jclibrary.info * http://www.jclibrary.info October 4, 2022 Washington State Department of Ecology Re: funding for the Port Hadlock Urban Growth Area Public Sewer System To Whom It May Concern, The Northwest School of Wooden Boatbuilding (NWSWB) is a post-secondary trade school that teaches boatbuilding and marine systems at its 7-acre waterfront campus in Port Hadlock, Washington. Over the last four years the school has invested over $3 million in facilities and equipment and expanded its programs to serve almost double the number of students per year. Even though we have invested in new septic system capacity at NWSWB, we strongly endorse the Port Hadlock Sewer project because we know that infrastructure is critically needed for local businesses to serve our growing student population. The housing shortage has become a barrier to students wishing to attend the schools 9-month and 12-month programs. The Port Hadlock sewer as a critical element required to create more affordable housing for our students, especially for those that arrive at the school without funds for a car and need to live in near the school. NWSWB has supported planning for a Port Hadlock sewer since around or before 2010. Board members at the time attended and supported the project for several reasons, as described to me by Bill Brock, Board President at the time. He notes that in spite of the fact that the NWSWB had recently spent over $90,000 on a new septic holding tank on the waterfront, there was never any hesitancy from the Board in wanting to support the new sewer system. "We felt we were building a stronger future for the School by building a secure, more efficient, and healthier overall infrastructure.” More recently, for the last three years, the school’s Executive Director and a volunteer from the board’s real estate committee have regularly attended community outreach meetings about the sewer, met multiple times with County project team members at the school, and tracked progress in the newsletters published by the County. A sewer system would provide us with a secure and efficient method of handling future school expansion while keeping the waters at our doorstep clean and healthy. • A sewer system is the most critical need in creating more housing opportunities for our students • A sewer system would provide a smaller footprint from the current drain field. This would allow us better use of the school’s 7-acre campus. • The school staff currently services four drainfields and three separate septic systems. Tying in to the new sewer system will let the Boat School’s staff focus on the core tasks involved with providing training programs for the marine trades. • A sewer system would provide for major improvement for Port Hadlock businesses. This would help our student population for general services such as restaurants and possible housing to name a few. We believed that a more financially healthy Port Hadlock would translate into a healthier NWSWB. • The Boat School demonstrates a strong commitment to care for the natural environment. We’re currently installing solar panels on two of the school’s buildings, we’re piloting the use of goats for weed control; we’re using sustainably harvested wood in the boats that students build. Bringing the new sewer system online supports this stewardship of the natural environment. A state-of-the-art public sewer system will ensure we can continue delivering our programs also ensuring that wastewater is treated to the highest standards and highly treated effluent can be reclaimed to the local aquifer.” Today NWSWB continues to champion the project - in fact the level of urgency has grown. While the school is training an increasing number of people for jobs in the trades, we need the community infrastructure to grow in parallel. As an institution of higher education based in Jefferson County, we add our voice to those of many others in the community about the relevance and critical need for this project. We are delighted to be part of the collaborative community that is championing this new sewer system. Please don't hesitate to contact me with any questions! Sincerely, Betsy Davis Executive Director PO Box 658 Port Townsend, WA 98368 · (360) 379-2827 · www.habitatejc.org September 23, 2022 To: Washington State Department of Ecology Regarding: Funding for the Port Hadlock Urban Growth Area Public Sewer System Dear WA Department of Ecology Directors, Advisors and Staff, Your support for the Port Hadlock Urban Growth Area Public Sewer System is incredibly important for the health and well-being of our East Jefferson County community. A sewer system is one of the foundations that will enable zoning for affordable housing. In May 2022, Habitat purchased a 17-acre parcel of land in Port Hadlock with the intent to develop affordable housing on the site. Currently, that site’s zoning only allows construction of three houses. The sewer system changes the game: it will enable the county to re-zone the land and accommodate 150 or more permanently affordable homes. The implementation of the sewer system leads to economic growth for the area. It enables Habitat to collaborate with other community partners to build affordable housing that will serve people who are vital to the community’s ongoing well-being. Since the housing will be affordable, East Jefferson County will be able to attract and retain a strong workforce, such as teachers, firefighters, paraeducators, nurses, restaurant and other service workers, to name a few. Some will be families with children who will attend the local schools, a boon for the school system. We envision a vibrant community that will also include senior living, childcare, and green spaces. The 150 homes that the sewer makes possible will remain permanently affordable. Habitat will own the land and lease it to homeowners with the agreement that future resale prices remain affordable for the next homebuyers, enabling the community to thrive for years to come. This is not a sewer that simply channels waste water, rather it is the pipeline of this community’s future. Your support of the sewer system will build homes, communities and hope and launch new opportunities for an economically vibrant future. In partnership, Jamie Maciejewski Executive Director 1 Robert Wheeler From:Ron Reed <reedreselec@yahoo.com> Sent:Friday, September 9, 2022 5:33 PM To:Robert Wheeler Subject:Fw: PHUGA Public Sewer System ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are not expecting them. Trying again to send this Ron ----- Forwarded Message ----- From: Ron Reed <reedreselec@yahoo.com> To: Robert Wheeler <rwheeler@co.jefferson.wa.us> Sent: Monday, September 5, 2022 at 09:51:17 AM PDT Subject: PHUGA Public Sewer System Bob: I am writing in support of the PHUGA Public Sewer System. When I first attended a meeting of the stakeholders in the PHUGA, I was a little skeptical that this was really going to happen. We've been hearing about plans for a sewer system for over 20 years. From what I know about a gravity sewer system, engineering, capitol cost, ongoing maintenance, limited resources, I just didn't think that it would ever be possible. With the advancement of the biofiltration systems technology and utilizing a pressurized system with grinder pumps, this now seems possible, doable. We are in a unique area, that is close to the bay and sitting upon an aquifer that is in jeopardy of contamination from the failing onsite sewage disposal systems, septic systems. In our situation we have 15 parcels in the UGA, five septic systems two of which handle very large volumes of water, they have been in use for over 30 years and is just a matter of time before they start to have operational difficulties. Our onsite septic systems also take up a lot of land that could be put to better use. The fact that this new technology will allow the wastewater which will be treated to the highest standards and returned to the aquifer safely is a game changer. Bringing new public sewer to an urban growth area that has never had public sewer service is an expensive undertaking and we need to ensure that it will be affordable to our community. We wholeheartedly support the County’s application for funding through Ecology’s Water Quality program. Regards Ron Reed Landowner, businessperson From: Benjamin Richardson <s_ben_rb@yahoo.com> Sent: Tuesday, October 4, 2022 10:04 AM To: Robert Wheeler <RWheeler@co.jefferson.wa.us> Subject: Support letter ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are not expecting them. To whom it may concern, My name is Ben Richardson. I own 2 commercial properties on ness corner rd that will be part of the new sewer system being developed in port hadlock. I am writing this letter to express my support for this system. I currently have working septic systems on both properties however both of those systems are aging and are holding me back from using the properties to their fullest potential. My building at 831 has a 2 bedroom apartment upstairs that the county currently won’t let me use due to the size and condition of the current septic. After paying for a septic design to be done and getting a price on upgrading the system to facilitate enough drain field space to make the whole thing legal, I decided it was not worth the financial investment. It would also take away several parking spots that would be needed for additional drain field space. This apartment would be a great addition to the low income housing that we are in such desperate need of in this county. One thing I’ve been really happy with so far is how well the sewer planning team has kept the land owners informed and up to date. The communication has been stellar through email, phone calls and on-site visits to keep me informed and on track with the progress. Recently we met with an electrician, the septic company and planning department who inspected my property and layed out how the power and sewer line will be run through my property. It was great to see in person them all working together to develop a plan as well as listening to my input on what’s best for my properties needs. I felt like in a matter of minutes they had a plan of attack and were on to the next site. Initially I had some concerns with the placement of the treatment plant and how it could potentially effect the already vulnerable Chimacum creek water shed. After extensive research and questions emailed back and fourth to the planning committee, my worries were eased with a full in depth explanation of how the system is designed with water quality and safety being the number one goal. I have complete faith that this system will work in a a safe and efficient manner and closely monitored to protect our fragile and important environment. As a diligent land owner I have spent some time weighing the pros and cons of this new system and have concluded that this is much needed infrastructure for our community to continue to grow and support the commercial and residential needs of our growing urban area. I fully understand that this is a huge financial commitment And is not to be taken lightly. However I feel it will be some of the best money this county has spent in quite some time. Helping land owners pay for the initial hook up costs is key to making sure that the system is Available to anyone who owns property along its path. As a business owner I understand that there is a cost to every upgrade or improvement that may come along. This sewer system is an investment in our future and the future of our environment not to mention an investment in the value of our property. Sincerely, Ben Richardson (360)531-1063 Sent from my iPhone