BOARD of COMMISSIONERS MEETING November 18, 2020 - 5:30 P.M

Due to COVID-19 meetings are held virtually via Zoom until further notice, please visit our website for information.

Mukilteo Water and Wastewater District 7824 Mukilteo Speedway Mukilteo, WA 98275 425-355-3355 ▪ www.mukilteowwd.org

BOARD OF COMMISSIONERS MEETING November 18, 2020 - 5:30 p.m. AGENDA 1. CALL TO ORDER

2. ROLL CALL

3. ADDITIONS OR DELETIONS FROM THE AGENDA

4. PUBLIC COMMENT

5. CONSENT AGENDA The following items have either been previously discussed or are routine in nature. Any item may be removed at the request of a Commissioner for further discussion. The Board may approve all these items with a single motion. 5.1 Approve Regular Meeting Minutes of November 4, 2020 5.2 Approve November 18, 2020 vouchers in the amount of $

6. BUSINESS ITEMS 6.1 Approve Wastewater Treatment Facility Supervisor Position 6.2 Proposed 2021 Capital & Operating Budget (Distribute Only)

7. OTHER BUSINESS

8. GENERAL MANAGER’S REPORT

9. ADDITIONAL REPORTS 9.1 Discharge Monitoring Report

10. VERBAL REPORTS: • Department Heads • Legal • Engineering • Commissioners

11. CONCLUDE

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MUKILTEO WATER AND WASTEWATER DISTRICT BOARD OF COMMISSIONERS REGULAR MEETING

Minutes of November 4, 2020

Commissioner McGrath called the Regular Meeting of the Board of Commissioners of November 4, 2020 to order virtually, using Zoom at 5:30 p.m.

ROLL CALL

Commissioners: Tom McGrath, Mike Johnson, Jeff Clarke

Engineering Eric Delfel, Gray & Osborne

Legal Bill Linton, InsleeBest

Staff: Jim Voetberg, General Manager; Rick Matthews, Operations/Engineering Manager; Kendra Chapman, Executive Assistant/HR; J.R. Erickson, Finance Manager;

ADDITIONS OR DELETIONS FROM THE AGENDA

None.

VISITORS AND COMMENTS FROM THE AUDIENCE

None.

CONSENT AGENDA

Motion by Commissioner Clarke, second by Commissioner Johnson, to approve the Consent Agenda as presented. The motion passed unanimously.

Minutes

Approved Regular Meeting Minutes of October 21, 2020

Vouchers Date Voucher No.’s Total Amount 11/4/2020 10293-10336 $582,829.94

Payroll Approved October payroll in the amount of $214,070.91

Board of Commissioners Meeting Minutes of November 4, 2020 Page 1 of 4

Developer Extensions

Approve Developer Extension 550 Mukilteo 1st, LLC. - 1807 Mukilteo Speedway

BUSINESS ITEMS

Update Job Descriptions Resolution No. 535-20

General Manager Voetberg presented the item giving a brief overview of his intentions to change the current position of Wastewater Treatment Facility (WWTF) Manager to WWTF Supervisor. The new position would report to the Operations/Engineering Manager. Voetberg noted he would bring the new job description to the following Board meeting for consideration.

Voetberg gave an overview of the Executive Assistant/HR position and how the position’s duties and responsibilities have increased, creating the need to update the job description and reclassify the position.

General discussion occurred about language used in the job description.

Motion by Commissioner Johnson, second by Commissioner Clarke to approve Resolution No. 535-20, reclassifying the position of Executive Assistant/Human Resources Administrator. The motion passed unanimously.

Nutrient Removal

General Manager Voetberg presented the item giving a brief overview of Department of Ecology’s intent to regulate nutrient discharge. Voetberg reported the Nutrient Advisory Committee concluded its six-month process of meeting with Ecology to provide recommendations to the permit writer on the drafting of a Nutrient General Permit. Voetberg noted Ecology’s process had challenges and concluded without a consensus but that comments, particularly by the environmental representative, has put the District in a favorable position due to the size of the plant and nutrient discharge concentration level. Voetberg added the larger treatment facilities such as Tacoma and King County, which will have a substantially larger impact from nutrient regulations, have begun to discuss additional actions to address Ecology’s Nutrient General Permit and are asking those wastewater facilities involved to sign a common interest agreement. Voetberg said he asked Attorney Bill Linton to review the common interest agreement and provide his thoughts.

Attorney Linton said he reviewed the common interest agreement and has some concerns relating to the sharing of information and public records requests. Linton noted the District’s likelihood of lower regulations due its plant size and nutrient concentration levels may outweigh the risk of having to defend the release of public records from a public records request. Linton also cautioned on participating in a group and making representations on the Board’s behalf without prior Board approval.

The Board thanked Commissioner Clarke for his time spent on the Nutrient Advisory Committee and for getting the Committee to recognize smaller wastewater plants that are doing a good job removing nutrients should be regulated differently.

Board of Commissioners Meeting Minutes of November 4, 2020 Page 2 of 4

Commissioner Clarke confirmed Ecology’s Advisory Committee process was flawed and did not come to a consensus on recommendations to Ecology’s permit writer who will be drafting a Nutrient General Permit. Clarke added one of the next steps will be to review and comment on the draft General Permit once it is completed.

Commissioner Johnson suggested the Board wait to see what happens in early 2021 when the draft permit is issued and to continue the discussion then.

General discussion occurred. General Manager Voetberg stated he will continue to stay involved with the various utilities discussing nutrient regulations but based on the attorney and Board’s discussion, he would not sign the common interest agreement. No action was taken.

2021 Board of Commissioner Conferences and Meetings

General Manager Voetberg presented the item noting that for budgeting purposes staff is asking for board assistance in estimating the number of meetings, workshops, conferences, etc. that board members plan to attend in 2021.

Commissioner McGrath stated he would be attending six WASWD Retrospective Committee meetings.

Commissioner Clarke stated he was unsure about nutrient related meetings; however, 20 meetings should be sufficient. Commissioner Clarke also noted he has been asked to submit his name for Chair of the WASWD Government Relations Committee.

General Manager Voetberg informed the Board he will prepare an agenda item in January for board approval for commissioner meetings, conferences, workshops, etc.

No action was taken.

OTHER BUSINESS

None.

GENERAL MANAGER’S REPORT

General Manager Voetberg reported on the following: • Water Sewer Risk Management Pool has increased rates 10% for the 2021 • The City of Everett Utility 2019 financials were included in Board agenda packet. • October WASWD Updates included in the Board agenda packet

ADDITIONAL REPORTS

Board of Commissioners Meeting Minutes of November 4, 2020 Page 3 of 4

Capital Project Status Report

The Board reviewed the report, there were no comments.

VERBAL REPORTS

Operations/Engineering Manager Matthews reported that the WWTF Admin-Lab Building is on schedule to finish February of 2021 which includes a sixty-day extension due to the Coronavirus Pandemic which halted work on the project in the spring. Matthews also reported that the Lift Station 9 project is moving along with construction above ground currently taking place.

Finance Manger Erickson reported he would be sending out the draft 2021 Capital and Operating Budget on Friday, November 13th for Commissioners to begin reviewing and sending questions/comments prior to the November 18th meeting. Erickson noted that staff would be seeking approval at the December 2, 2020 board meeting.

Executive Assistant/HR Chapman reported that the district partnered with City of Mukilteo to put together a virtual wellness and benefits fair which was well received by vendors and employees.

Legal

No report.

Engineering

Engineer Delfel reported the Lift Station 5 Force Main project will go to ad for bids in the coming weeks. Delfel also reported that the Lift Station 5 Upgrade and 2021 Water and Sewer Improvement projects are in the City of Mukilteo permit review process.

Commissioners

Commissioner McGrath reported that he attended the entrance conference with the State of Washington Auditor’s Office for the district’s bi-annual audit.

CONCLUDE

There being no further business, the President of the Board concluded the meeting at 6:38 p.m.

Commissioner McGrath Commissioner Johnson

Commissioner Clarke

Board of Commissioners Meeting Minutes of November 4, 2020 Page 4 of 4

BUSINESS OF THE MUKILTEO WATER AND WASTEWATER DISTRICT BOARD OF COMMISSIONERS

SUBJECT: Proposed 2021 Operating and Capital Budget

MEETING DATE: November 18, 2020 FROM: Jim Voetberg, General Manager r-V

CURRENT YEAR t MULTI-YR. PROJ. Amount Amount Budgeted Expenditure Committed Amount Available I Spent to Date Requested N/A N/A N/A N/A I N/A

EXHIBITS ATTACHED: • 2021 Proposed Operating and Capital Budget

SUMMARY STATEMENT/ISSUES:

A copy of the proposed 2021 Operating and Capital Budget is included in your packet. Please email any questions regarding the Budget to J.R. Erickson and they will be answered during the Budget discussion at the next Board meeting.

Discussion and possible adoption of the Budget is scheduled for the meeting on December 2, 2020, and/or if necessary, for the meeting of December 16, 2020.

RECOMMENDATION/SUGGESTED MOTION: No Action / Information Only

PROPOSED 2021 BUDGET MUKILTEO WATER AND WASTEWATER DISTRICT

OPERATION AND MAINTENANCE BUDGET CAPITAL BUDGET Presented November 18, 2020

Draft Board of Commissioners: Thomas McGrath, President Mike Johnson, Vice-President Jeff Clarke, Secretary

Presented by: Jim Voetberg, General Manager J.R. Erickson, Finance Manager Bev Templin, Financial Accounting Supervisor Rick Matthews, Operations/Engineering Manager

Contents Executive Summary ...... 3 District Map ...... 8 Introduction ...... 9 Organizational Chart ...... 10 The Budget Process...... 11 Rates ...... 12 Water Rates ...... 12 Wastewater Rates ...... 12 Revenue...... 13 Water Revenue ...... 13 Wastewater Revenue ...... 14 Expenses ...... 15 Water/Wastewater Breakdown ...... 17 Capital Budget ...... 18 Water Capital Projects ...... 18 Wastewater Capital Projects ...... 19 Projects Shared with Both Utilities ...... 21 Outstanding Debt ...... Draft...... 26 Budget Detail ...... 27

Mukilteo Water & Wastewater District 7824 Mukilteo Speedway Mukilteo, WA 98275-2608 Ph. 425-355-3355  Fx. 425-348-0645

November 18, 2020

Executive Summary

Board of Commissioners Mukilteo Water and Wastewater District

Re: Proposed 2021 Operating and Capital Budget

Dear Board of Commissioners:

Attached for review and consideration is the proposed 2021 operating, maintenance and capital budget. Similar to previous years, the 2021 Budget focuses on providing quality and reliable water and wastewater service in a cost-effective manner.

A Brief Look Back at 2020:

The year of COVID-19. The impact of COVID-19 made 2020 an unprecedented year. Wearing of masks, observing safe distancing, shifting of work schedules, limiting employee interactions, changing how we work with the public, office closed to the public, no shut-offs, no collecting late fees, challenges with the supply chain, virtual meetings, continuity of capital projects; it seems not one single aspect of the District’s day-to-day operations was not impacted. Yet through all these challenges, our DistrictDraft has continued to operate and provide safe and reliable water and wastewater services. Our success is attributed to our dedicated employees who adjusted their lives and stepped up when needed to make sure Mukilteo Water and Wastewater District remains a leader in our industry and sets an example of how we can succeed under trying circumstances.

In addition to standard day-to day operations and maintenance that due to COVID-19 was anything but standard, a few notable achievements and projects completed, or to be completed, in 2020 include:

Water Distribution: • Completed the 2020 Water Improvement project: Possession View Lane.

3 • Designed the 2021 Water Improvement Project: 8th, 9th and 10th Streets. • Exceeded Developer Extension budgeted revenue (Budgeted $173,900; Year to Date $426,100).

Wastewater Collection: • 80% complete with the L.S. No. 9 Upgrade Project (which is significant, due to impacts of COVID-19). • Designed the L.S. No. 5 and L.S. No. 5 Force Main project. • Completed design of the regional CIPP project, which will be managed by Alderwood Water & Wastewater District (AWWD) (construction scheduled for 2021). • Exceeded Developer Extension budgeted revenue (Budgeted $553,500; Year to Date $794,533).

Wastewater Treatment Facility: • 90% complete with the new Administrative/Lab building (which is significant; due to impacts of COVID-19). • Completed the UV light disinfection system Phase I refurbishment project, which included a PLC by-pass switch and new PLC.

Administration: • Successfully managed changes in revenue pattern due to the COVID-19 prohibition on shut-offs and late fees. • Hired new Finance Manager. • Hired two Operations personnel. • Commissioner Clarke and Staff participated in and helped steer Ecology’s Nutrient General Permit discussion to the District’s benefit. • Seamlessly established a virtual meeting format for Commissioner, staff and other meetings.

2021 Proposed Budget

Following are highlights of the 2021 Budget. As with previous budgets, staff takes a slightly conservative approach to both revenuesDraft and expenses. Revenues are estimated on the lower side and expenses are estimated on the higher side. This conservative approach allows a cushion for addressing unanticipated financial issues, should they occur, to better ensure the District’s long-term financial sustainability.

Revenues:

Projected revenues in the 2021 Budget are based on rate increases and billing methodologies recommended in the 2016 water rate study and the 2018 wastewater rate study. Overall, water rates will increase approximately 2.5% and wastewater rates will increase approximately 3%. After 4 years of blending the rates, 2021 will be the first year that Eastside and Westside

4 wastewater rates are equal. Budgeted 2021 operating revenue is 1.1% higher than 2020 budgeted operating revenue.

Historic and projected water and sewer revenue is as follows:

2017 2018 2019 2020 2021 Budget Budget Budget Budget Proposed Water $ 3,952,900 $ 4,069,200 $ 4,257,300 $ 4,325,600 $ 4,416,200 Wastewater $ 7,498,400 $ 7,769,500 $ 8,071,200 $ 8,271,400 $ 8,503,700 Misc. $ 511,000 $ 585,100 $ 686,000 $ 671,500 $ 493,700 Total $11,962,300 $12,423,800 $13,014,500 $13,268,500 $13,413,600

Expenses:

Budgeted 2021 operating, maintenance, and administrative expenses are 3.4% higher than 2020 budgeted expenses. ProposedDraft and historic operating, maintenance, and administrative costs for the Utilities are as follows:

2017 2018 2019 2020 2021 Budget Budget Budget Budget Proposed Water $ 3,761,100 $ 3,962,300 $ 4,138,500 $ 4,275,000 $ 4,303,600 Wastewater $ 6,388,300 $ 6,665,800 $ 6,801,600 $ 6,856,800 $ 7,216,500 Total $10,149,400 $10,628,100 $10,940,100 $11,131,800 $11,520,100

The five highest budget expenses, representing approximately 89% of the overall 2021 Budget, historically and continue to be:

1. Depreciation

2. Personnel (Labor & Benefits)

3. Purchased Water

4. Supplies, Services, Repairs & Maintenance

5. Purchased Sewer Treatment Draft

Personnel (Labor & Benefits): Personnel costs including direct labor, taxes, and benefits represent approximately 29% of the District’s overall operating and maintenance costs. Total labor and benefit costs in the 2021 budget is $3,385,200.

• Direct Labor Costs: The proposed Salary Wage Matrix includes a 2.1% COLA increase for 2021.

• Benefit Costs: Benefit costs include FICA/Medicare, PERS Employer Contributions, Worker’s Comp, Employment Security, Health Care, Clothing Allowance, a 2% deferred compensation match program, and Training/Education. Overall, benefit costs are budgeted to increase by 4.8%.

• Health Care costs are anticipated to be $531,400 in 2021, which is a 5.4% increase from 2020. Budgeted health care benefits are based on paying the average premium for a family plan ($2,495 per month). If the actual premium (medical, dental, orthodontia and vision) is less due to employee’s status (single, single plus spouse, single plus 1 child, single plus 2 children… etc.) the employee will receive 50% of the difference between $2,495 and the actual monthly premium cost in a health savings account.

Purchased Water: The 2021 budget includes $1,512,000 for the purchase of water, representing 35% of the Water Utility budget or 13% of the overall operating budget. The 2021 budget is up 1.3% from the 2020 Budget. Volume of purchased water is estimated by looking at the average of the last five years and also taking into account lower Commercial consumption due to COVID-19. The District also assumes the allocation of water between AWWD (78%) and the City of Everett (22%) remains consistent with previous years. Cost from Everett is budgeted at $3.61 per Kgal, up 3.2% from 2020. Cost from AWWD is estimated to be $2.04 per Kgal, up 6.0% from 2020. Sewage Disposal: Wastewater fromDraft customers east of Paine Field (former Eastside Service Area) flows to Everett’s wastewater treatment facility. The 2021 budget includes $879,900 for this sewage disposal, representing 12.2% of the Wastewater Utility budget or 7.6% of the overall operating budget. Everett’s sewage disposal cost is based on Equivalent Residential Units (ERU). A combination of higher than estimated rates from Everett in both the Mukilteo and AWWD basins with lower than expected wheeling consumption due to lower commercial consumption resulted in 2020 estimates being 10% over budget. Applying these same factors to the 2021 budget result in expenses being approximately 12% above 2020 estimates.

Capital and Debt:

Capital expenditures in the 2021 Budget are as follows:

Water $ 1,739,000 Wastewater $ 5,734,500 Total $ 7,473,500

Funds to pay for capital projects come from service revenues and General Facility Charges (GFCs). GFC revenue in 2021 is expected to be lower than 2020, as both the Ferry Terminal project and Courtyard Townhomes are expected to be paid in 2020 and no large projects are expected in 2021. Service rates are sufficient to provide 100% of full depreciation of $809,400 for water and $2,543,200 for wastewater to fund capital projects.

The 2021 Capital Budget lists the projects recommended for construction. The Capital Budget also includes a multi-year capital funding plan which outlines anticipated capital projects over the next several years. These projects have primarily been planned without the need to borrow funds to pay for the improvements. The exception is the replacement of Lift Station No. 5 and the Lift Station No. 5 Force Main. Both projects have been accelerated by two to three years due to the award of a Public Works Trust Fund Loan. Even with the additional Public Works Trust Fund loan, the trend of the District’s outstanding debt continues to be reduced, illustrated in the below chart.

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Conclusion:

The District continues to be in a strong financial position. Service rates are stable with future rate increases projected to mirror anticipated CPI increases. Our infrastructure and facilities are well maintained with capital projects and expenditures strategically planned out into the future. Reserves are strong in the event an unanticipated failure occurs which requires immediate attention. Similar to previous years, the 2021 Budget being proposed balances revenues with operational and capital costs for the long-term benefit of our customers.

I wish to acknowledge all staff for their professionalism and dedicated commitment to our customers and their assistance in putting this budget together.

Sincerely,

Jim Voetberg General Manager

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District Map

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MUKILTEO WATER AND WASTEWATER DISTRICT MISSION STATEMENT

The District is dedicated to providing fiscally responsible water and wastewater services to our ratepayers by ensuring our services meet or exceed regulatory standards, our infrastructure is continually maintained for the long-term, and our actions are conducted in an environmentally responsive manner.

Introduction Service Area

Mukilteo Water and Wastewater District is a municipal corporation organized under the laws of the State of Washington, and was created for the purpose of constructing, maintaining and operating a water and wastewater system within its boundaries. The District’s infrastructure includes approximately 95 miles of water distribution mains, four reservoirs, three booster stations, 83 miles of sewer collection mains, 8.4 miles of sewer force mains, 12 lift stations, and a wastewater treatment facility.

The District’s water system began operating in 1920 and is the oldest active water district in the State of Washington. The current District is a merger of the Mukilteo Water District and Olympus Terrace Sewer District, providing service to the greater Mukilteo area, a portion of Snohomish County including Paine Field, and a portion of South Everett. The District currently budgets for two separate utilities: the water utility, and the wastewater utility.

Financial Policies The District has adopted Financial Management Policies to promote the financial integrity and stability of our water and wastewater systems and to provide guidance and consistency in decision making for the District’s management. These policies cover the following:

• Bank Accounts/Funds • Revenue Sufficiency • Sustainability of Infrastructure • Debt Management Draft • Reserves • Fraud • Accounting – Other

The following Financial Policies outline a general framework of budgetary goals concerning reporting policies, the operating budget, capital budget, reserves and debt management.

Reporting Policies 1. The accounting and reporting policies of the District are maintained in accordance with methods prescribed by the State Auditor under the authority of RCW Chapter 43.09. The District uses the Uniform System of Accounts for Class A-Water and Wastewater Utilities.

2. Financial reporting will present fairly and with full disclosure the financial operations of the District in conformity with Generally Accepted Accounting Principles (GAAP).

3. The Washington State Auditor’s Office (SAO) is required to examine the affairs of the District on an annual basis. However, due to the District’s excellent audit history, the SAO has determined bi- annual audits are sufficient. The examination must include, among other things, the financial condition and resources of the District, whether the laws and constitution of the State are being complied with, and the methods and accuracy of the accounts and reports of the District. The most recent completed audit of the District covers the period of January 1, 2016 through December 31, 2017. No significant discrepancies or irregularities were found.

Organizational Chart

MUKILTEO WATER & WASTEWATER DISTRICT STAFF ORGANIZATIONAL CHART

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No. of employees managed (as budgeted): General Manager – 3 Operations/Engineering Manager – 4 Treatment Facility Supervisor – 4 Operations Field Supervisor – 6 Finance Manager – 4

The Budget Process

Budget Policies

Overall, the budget should be a reflection of the District’s mission statement. The budget, as an operating plan, should be balanced so that revenues are sufficient to meet expenditures and debt service requirements. Expenses should be identified appropriately in order to provide the functions of each department. Critical issues will be addressed in a prompt manner. Keeping up with technology continues to be an important tool for increasing productivity, thereby decreasing the need for additional staff.

Budget Preparation

Budget preparation begins with a series of meetings between the General Manager and department managers. Goals and objectives are identified, and the General Manager provides guidance to staff. Staff then starts developing the budget for the upcoming year. Department managers present their budget to the General Manager. Those budgets are reviewed and decisions made to recommend to the Board for consideration.

Budget Review

Budget review is provided first by the General Manager. Upon approval by the General Manager, the budget is presented to the Board of Commissioners at a regularly scheduled board meeting, usually in late November or early December. The Board reviews the proposed budget and makes appropriate changes. The public may provide input regarding the proposed budget.

Budget Approval

The Board of Commissioners will adopt the budget at one of the two regularly scheduled board meetings in December.

Draft Budget Amendment

Once approved, the Operation and Maintenance budget is not amended. Staff is required to remain within budget as a whole. Upon demonstration of need, additional expenditures may be approved by the Board without formally amending the budget.

The Capital budget may be increased to include new capital purchases or projects, or increases in existing budget items as needed.

Budget Overview

Rates

The proposed 2021 budget fits within the existing rates adopted by Resolution No. 467-18, listed below. On average, overall water rates are increasing by 2.5% and wastewater rates by 3.0%. 2021 also marks the first year that westside and eastside wastewater rates will be the same after a 5-year phased in blending of the rates.

Water Rates Bi-Monthly Base Rate Meter Size Commercial & Single-Family Multi-Family Irrigation 5/8 x 3/4 $ 31.04 $ 38.28 $ 37.74 1" $ 77.78 $ 95.90 $ 94.56 1 1/2' $ 150.92 $ 186.08 $ 183.46 2" $ 236.82 $ 292.04 $ 287.92 3" $ 587.42 $ 579.14 4" $ 902.64 $ 889.92

Volume Charge (per 1,000 gallons) $ 3.57 $ 3.22 $ 4.19 Wastewater Rates

Bi-Monthly Base Rates

Meter Size Single-Family Multi-Family Commercial Per Unit 5/8 x 3/4"$ Draft 126.00 $ 100.90 $ 82.84 1" $ 207.08 1 1/2" $ 414.18 2" $ 662.64 3" $ 1,325.76 4" $ 2,070.78

Volume Charge (per 1,000 gallons)

Single-Family Multi-Family Commercial Class I N/A N/A $ 8.90 Class II N/A N/A $ 13.31 12

Revenue

Water Revenue

2018 2019 2020 2020 2021 % Budget Budget Budget Projected Proposed Single-Family 1,934,000 2,000,300 2,055,300 2,054,638 2,112,400 2.8% Multi-Family 862,000 901,500 913,200 917,339 941,600 3.1% Commercial 1,273,200 1,355,500 1,357,100 1,153,040 1,362,200 0.4% Misc. 278,500 330,400 324,200 263,387 309,100 (4.7%) Total 4,347,700 4,587,700 4,649,800 4,388,404 4,725,300 1.6%

Significant variances or notable changes

Commercial:

2020 saw a significant decrease in DraftCommercial water consumption due to COVID-19. Consumption is starting to increase closer to normal levels but the District assumes this reduction will carryover through the first half of 2021.

Misc.:

Miscellaneous revenue is budgeted to be lower in 2021 due to a combination of reduced interest income and service charge income, and re-allocating rental income to water. Interest rates have declined significantly during the pandemic. Service charge income is expected to be lower due to the continued moratorium on late fees and shut-off fees.

Wastewater Revenue

2018 2019 2020 2020 2021 % Budget Budget Budget Projected Proposed Single-Family 4,247,800 4,256,600 4,255,400 4,322,372 4,300,700 1.1% Multi-Family 2,031,100 2,154,600 2,252,200 2,246,939 2,359,000 4.7% Commercial 1,490,600 1,660,000 1,763,800 1,560,393 1,844,000 4.5% Misc. 306,600 355,600 347,300 310,402 184,600 (46.8%) Total 8,076,100 8,426,800 8,618,700 8,440,105 8,688,300 0.8%

Significant variances or notable changes

Single-Family:

2021 is the first year that westside and eastside rates are to be equal. As part of this 5-year process, westside rates are going downDraft by 1.7% and eastside rates are going up 3.3%.

Misc.:

Similar to water, Miscellaneous wastewater revenue is expected to be lower in 2021 due to reduced interest rates, reduced late fee and shut-off fees, and rental income being allocated to water instead of being shared by both utilities.

Expenses

The 2021 operating expenses for water are budgeted at $4,303,600 and $7,216,500 for wastewater. Overall, this is a 3.4% increase from 2020.

2017 2018 2019 2020 2021 % BudgetBudgetBudgetBudgetProjectedBudget Labor & Benefits $ 2,756,000 $ 2,911,700 3,164,900$ 3,296,200$ 2,658,719$ 3,385,200$ 2.7% Purchased Water $ 1,307,600 $ 1,350,800 1,460,100$ 1,493,200$ 1,268,008$ 1,512,000$ 1.3% Purchased Sewer Treatment753,400$ $ 806,100 687,000$ 697,400$ 786,135$ 879,900$ 26.2% Supplies & Services $ 877,300 $ 878,400 908,100$ 1,012,200$ 977,211$ 1,083,600$ 7.1% Repairs & Maintenance $ 254,600 $ 271,600 290,400$ 251,300$ 195,855$ 305,600$ 21.6% Utilities $ 300,300 $ 307,800 311,600$ 308,700$ 294,283$ 314,200$ 1.8% Taxes $ 407,600 $ 408,900 414,500$ 419,600$ 395,712$ 424,800$ 1.2% Debt Service $ 338,300 $ 315,000 323,400$ 305,700$ 305,179$ 261,800$ -14.4% Depreciation $ 3,154,300 $ 3,377,800 3,388,100$ 3,355,500$ 3,355,500$ 3,353,000$ -0.1% Total $ 10,149,400 $ 10,628,100 10,948,100$ 11,139,800$ 10,236,602$ 11,520,100$ 3.4%

Significant variances or notable changes

Labor and Benefits • Overall increase of 2.7%. This includes a 2.1% COLA based on the October 2019 – October 2020 Consumer Price Index for the Seattle, Tacoma, Bellevue area. • Medical costs are expected to increase by 5.4%. This budget also includes a correction in the allocation of medical expenses between water and wastewater based on individual employees’ costs.

Purchased Sewer Treatment • The 2021 budget is $879,900 which is 26% higher than the 2020 budget. The 2020 budget included estimates for the City of Everett Sewer Treatment costs which ended up being lower than actuals. Also, the numberDraft of ERU’s in the wheeling calculation has been lower than expected due to commercial account’s consumption being significantly reduced during the pandemic. The 2021 budget takes into account the higher 2020 rate (which goes through March 2021), assumes a 9% rate increase beginning in April 2021, and that the commercial consumption will slowly increase during the first half of 2021.

Supplies and Services

• The budget for Supplies and Services in 2021 is $1,083,600, which is $71,400 (7.1%) higher than 2020. Supplies and Services include the District’s liability insurance, credit card fees, computer

software and hardware, IT services, legal services, tools, etc. The increase in budget is made up of: o Banking and credit card fees: in 2019 the District decided to change its online payment module and no longer charge customers to process credit card payments. The number of customers paying online through the new website has increased (especially during the pandemic) which has increased credit card fees approximately $50,000. o 2021 is also an election year for one of the Board positions which includes election fees from Snohomish County of approximately $20,000.

Repairs and Maintenance

• The Repairs & Maintenance budget is $54,300 higher than 2020. This is made up of: o Telemetry- money that was previously budgeted in the Capital Budget (approximately $23,000) for telemetry related costs has been moved to the maintenance budget as the work/projects are generally smaller and under the $10,000 capitalization threshold. o Repairs & Maintenance Mains- the District has budgeted $24,500 for raising iron based on projects the City of Mukilteo has planned. The District has also budgeted $25,000 for manhole rehabilitation. o Repair & Maintenance Lift Stations- the District has budgeted $18,500 to replace an impeller pump and flush value pump at 112th St Lift Station and a spare volute/suction cover/wear ring at Lift Station 10.

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Water/Wastewater Breakdown

2021 Proposed Budget - Expenses

2018 2019 2020 2021 Increase / Water Budget Budget Budget Projected Budget Decrease Labor & Benefits 1,097,000$ 1,194,400$ 1,249,600$ 1,195,245$ 1,231,600$ -1.4% Purchased Water 1,350,800$ 1,460,100$ 1,493,200$ 1,268,008$ 1,512,000$ 1.3% Supplies & Services 320,900$ 308,500$ 353,400$ 342,093$ 374,600$ 6.0% Repairs & Maintenance 89,300$ 96,700$ 82,000$ 60,127$ 87,400$ 6.6% Utilities 43,500$ 46,200$ 45,600$ 46,586$ 51,000$ 11.8% Taxes 225,100$ 226,900$ 234,100$ 209,196$ 235,200$ 0.5% Debt Service 3,900$ 3,000$ 3,100$ 2,459$ 2,000$ -35.5% Depreciation 831,800$ 802,700$ 814,000$ 814,000$ 809,800$ -0.5% Total 3,962,300$ 4,138,500$ 4,275,000$ 3,937,714$ 4,303,600$ 0.7%

2018 2019 2020 2021 Increase / Sewer Collection Budget Budget Budget Projected Budget Decrease Labor & Benefits 1,333,600$ 1,452,000$ 1,512,900$ 1,463,474$ 1,611,600$ 6.5% Purchased Sewer Treatment 806,100$ 687,000$ 697,400$ 786,135$ 879,900$ 26.2% Supplies & Services 359,100$ 345,800$ 399,400$ 389,696$ 435,600$ 9.1% Repairs & Maintenance 90,800$ 109,700$ 89,200$ 66,109$ 130,700$ 46.5% Utilities 97,400$ 100,400$ 89,900$ 93,239$ 98,100$ 9.1% Taxes 183,800$ 187,600$ 185,500$ 186,516$ 189,600$ 2.2% Debt Service 311,100$ 320,400$ 302,600$ 302,720$ 259,800$ -14.1% Depreciation 2,546,000$ 2,585,400$ 2,541,500$ 2,541,500$ 2,543,200$ 0.1% Total 5,727,900$ 5,788,300$ 5,818,400$ 5,829,389$ 6,148,500$ 5.7%

2018 2019 2020 2021 Increase / Treatment Plant BudgetDraft Budget Budget Projected Budget Decrease Labor 481,100$ 518,500$ 533,700$ 531,736$ 542,000$ 1.6% Supplies & Services 198,400$ 253,800$ 259,400$ 245,422$ 273,400$ 5.4% Repairs & Maintenance 91,500$ 84,000$ 80,100$ 69,618$ 87,500$ 9.2% Utilities 166,900$ 165,000$ 173,200$ 154,459$ 165,100$ -4.7% Total 937,900$ 1,021,300$ 1,046,400$ 1,001,235$ 1,068,000$ 2.1%

Sewer Total 6,665,800$ 6,809,600$ 6,864,800$ 6,830,624$ 7,216,500$ 5.1%

Overall 10,628,100$ $ 10,948,100 11,139,800$ 10,768,337$ 11,520,100$ 3.4%

2021 Mukilteo Water and Wastewater District

Capital Budget

Introduction:

The Mukilteo Water and Wastewater District management staff recommends the following Projects, Equipment, and Studies as priorities for the District’s 2021 Capital Budget. Projects recommended in this budget were identified in the District’s 2016 Comprehensive Water System Plan, 2018 Wastewater Comprehensive Plan Amendment, the District’s contractual agreement for wastewater treatment improvements with the City of Everett and Staff recommendations. All proposed projects will be funded through existing reserves, with the exception of the Lift Station 5 upgrade and Force Main project which has a Public Works Trust Fund Loan.

A multi-year capital project funding schedule showing how projects identified in the various plans and studies can be funded over the mid to long term is included. The 2021 budget includes funds for an update to the Capital Improvement Plan, which means capital projects listed after 2021 may change and additional projects may be added.

Following are the 2021 recommended Capital Projects:

Water Capital Projects

Waterline Project Replacement Design/Construction (46-20): This is a placeholder for waterlines identified as needing repair which have not been previously identified in various plans and studies.

Total Estimated Project Cost: $281,400

8th/9th/10th St Water Main – Construction & CM (47-20): This proposed project replaces approximately 2,200 lineal feet of 4-inch cast iron water main with restraint joint 8-inch ductile iron water main. The project is located between Park St and Campbell Ave on 10th St, between Park St and Loveland Ave on 9th St and the 4-inch portion on 8th StDraft to Campbell Ave. The project will replace aging and undersized water main that has experienced a recent high rate of failure, increase fire flow, and upgrade the system to current District standards.

Total Estimated Project Cost – Construction & CM: $1,265,000

Old Town SR525 Crossing – Design: The District plans to replace approximately 2,000 lineal feet of 6-inch cast iron water main with 12-inch and 8-inch restraint joint ductile iron water main. The project starts at 3rd St. and Lincoln Ave, crosses west (in a jack and bore) under SR 525 on 3rd Ave. to Washington Ave., south on Washington Ave to 4th St., west on 4th St. to Church Ave., and south on Church Ave. to SR 525.

Total Estimated Project Cost - Design: $80,000

Reservoir No. 5 Exterior Recoating – Design: The District plans to repaint the exterior of Reservoir No. 5. The Reservoir’s current coating is reaching the end of its useful life and needs recoating.

Total Estimated Project Cost - Design: $20,000

Wastewater Capital Projects

City of Everett WPCF Projects (22-83): Based on the District’s Sewer Agreement with the City of Everett, the District is obligated by contract to pay four percent (4%) of capital improvement costs at the Everett Water Pollution Control Facility (WPCF). Everett anticipates the District’s 4% cost for 2021 to be $40,000.

Total Estimated Project Cost: $40,000

Sewer Line Replacement - Design/Construction (48-20): This project will be a combination of several repair types (cure in place, slip lining, spot repair, grouting, etc.) to repair I & I and/or deficiencies.

Total Estimated Project Construction and CM Cost: $310,000

Lift Station No. 9 Replacement – Construction & CM (31-19): Lift Station No. 9 was constructed by the City of Mukilteo in the 1980s and is nearing the end of its useful life. The project consists of accessibility, reliability, redundancy and capacity improvements. Design and permitting was completed in 2019. Construction started in 2020 and will be completed in 2021.

Total Estimated Project Construction & CM Cost (carryover from 2020): $580,000

Lift Station No. 5 Force Main – Construction & CM (49-20): The Lift Station No. 5 Force Main was constructed in the late 1960s and is nearing the end of its useful life. It is exposed in places and has been the subject of recent failures. It is located in a seismically sensitive area that has experienced recent slide activity. The project will Draftconsist of reliability, redundancy and capacity improvements. Design and permitting was completed in 2020 and construction is scheduled for 2021.

Total Estimated Project Cost: $800,000

Lift Station No. 5 Upgrade – Construction & CM (50-20): Lift Station No. 5 was constructed in the late 1960s and is nearing the end of its useful life. Previous projects improved access to the site and equipment within the site itself. This project will consist of accessibility, reliability, redundancy and capacity improvements. Design and permitting is in progress in 2020 with construction scheduled for 2021.

Total Estimated Project Cost – Construction & CM: $1,900,000

WWTF Lab/Admin Building Replacement – Construction and CM (17-18): The current WWTF lab/administration building is not large enough to properly house WWTF staff, is outdated, and is located such that it lacks a sufficient turning radius for vehicles accessing the solids handling building. A new building of sufficient size and located away from the solids building is required. Permitting and design for a new building were completed in 2019. Construction was started in 2020 and is scheduled to be completed in 2021. This project also includes the demolition of the previous building.

Total Estimated Project Construction & CM Cost (Carryover from 2020): $500,000

WWTF Security/Process Cameras (51-20): The WWTF currently has 14 cameras for security/process monitoring purposes. This project adds additional cameras for better process monitoring and security purposes.

Total Estimated Project Cost: $30,000

WWTF Dewatering Improvements; Phase I - Technical Evaluation & Equipment Purchase (52-20): The existing sludge belt press is limited in its dewatering efficiency and is nearing the end of its useful life. Dewatering Improvements - Phase I Technical Review will evaluate technology options for sludge dewatering to determine which technology will provide the best life cycle cost. Once the technology review is completed and approved by the District, an Engineering Report will be prepared and submitted to the Department of Ecology for their review and approval. The 2021 budget includes design costs and purchase of the equipment, with construction scheduled in 2022.

Total Estimated Project Cost: $720,000

WWTF Upper Road Improvements (53-20): The upper 200 feet of the access road to the Wastewater Treatment Facility is beginning to fail. This project will remove approximately 200 feet of roadway, repair the road base and repave the road.

Total Estimated Project Cost: $40,000

Lift Station No. 8 Force Main and GravityDraft Improvements - Design: This project includes design in 2021 and construction in 2022 of upgrades to the Lift Station No. 8 force main and gravity piping.

Total Estimated Project Cost - Design: $60,000

Cast-in-Place Pipe (CIPP) ILA project with Alderwood Water & Wastewater District (AWWD): The District has identified several areas within the collection system that are in need of repair due to structural or inflow and infiltration (I&I) issues. The District has entered into an ILA with AWWD and several other agencies on this CIPP project. The District has identified approximately 1,575 lineal feet of 8-inch CIPP and 875 lineal feet of 6-inch CIPP.

Total Estimated Project Cost: $300,000

WWTF UV System Refurbishment – Phase II (56-20): Phase I of the UV System refurbishment installed a PLC by-pass switch to allow the UV system to operate in the event the PLC fails, and replaced the Process Logic Controller (PLC) which was no longer supported. Phase II of the UV System includes replacing switches and electronic components of the system’s electronic cabinet controlling one of the two UV channels.

Total Estimated Project Cost (Phase II): $50,000

City of Mukilteo Culvert Participation Agreement: This agreement will replace a section of concrete sewer main with restraint joint ductile iron sewer main as part of the City of Mukilteo’s culvert project.

Total Estimated Project Cost - $15,000

Lateral Launcher Sewer Camera System: The Lateral Launcher System allows the inspection of both main and lateral sewer lines. This will allow the District to identify any inflow and infiltration (I&I), defects in the lateral line, and be able to locate the lateral line with the included sonde. The District will also be able to inspect the lateral without entering customer’s property and identify if any issues are on the customer side or District’s side.

Total Estimated Equipment Cost - $90,000

Miscellaneous Treatment Plant Projects: These projects include Scum No. 2 Pump replacement ($15,000), A/B Ditch NH3/NO3 Probe replacement ($10,000), Scada for the dewatering facility ($20,000), SCADA upgrade that was started in 2020 ($75,000), Solids/RAS Pump replacement ($60,000), and two Wash-Water Pump replacement ($15,000)

Total Estimated Project Costs - $195,000

Projects Shared with Both Utilities Draft

Risk and Resilience Assessment and Emergency Response Plan: The Environmental Protection Agency requires all drinking water systems to develop both a Risk and Resilience Assessment (due June 30, 2021) and an Emergency Response Plan (due December 31, 2021). The District will hire a consultant to work with staff to complete the assessment and create an Emergency Response Plan.

Cost split: Water $47,000 Wastewater 53,000 Total Estimated Project Cost $100,000

Vehicle Replacement (58-20): Staff plans to replace a 2010 Chevrolet 1500 Service Vehicle (Unit #24) with a 2021 Chevrolet 1500 Service Vehicle. This vehicle was chosen for replacement based on several factors including service history, mileage and wear.

Cost split: Water $22,100 Wastewater 25,000 Total Estimated Equipment Cost: $47,100

Capital Improvement Plan (CIP) Update: The District plans to hire a consultant to work with staff to update both the Water and Wastewater CIP’s. The District will be doing a rate study in 2022 and the updated CIP is the first step in calculating future rates.

Cost split: Water $23,500 Wastewater 26,500 Total Estimated Equipment Cost: $50,000

Draft

Mukilteo Water & Wastewater District Proposed 2021 Capital Budget

Project Name Water Wastewater Total Water Waterline Replacement Proj Design/Const 281,400$ 281,400$ 8th/9th & 10th St Water Main 1,265,000$ 1,265,000$ Old Town SR525 Crossing 80,000$ 80,000$ Reservoir No. 5 Exterior Recoating 20,000$ 20,000$ Wastewater City of Everett WPCF Projects 40,000$ 40,000$ Sewer Line Replacement- Design/Const 310,000$ 310,000$ Lift Station 9 Upgrade 580,000$ 580,000$ Lift Station 5 Force Main 800,000$ 800,000$ Lift Station 5 Upgrade $ 1,900,000 1,900,000$ WWTF Lab./Admin Bldg. Replacement 500,000$ 500,000$ WWTP Security/Process Cameras 30,000$ 30,000$ WWTF Solids Bldg Dewatering Improvements 720,000$ 720,000$ WWTF Upper Road Improvements 40,000$ 40,000$ Lift Station 8 Force Main/Gravity 60,000$ 60,000$ Cast-in Place Pipe (CIPP) 300,000$ 300,000$ WWTF UV System Upgrades 50,000$ 50,000$ City of Mukilteo Culvert Participation Agreement 15,000$ 15,000$ Lateral Launcher System 90,000$ 90,000$ WWTF Scum No. 2 Pump Replacement 15,000$ 15,000$ WWTF "A/B" Ditch NH3/NO3 Probe Replacement 10,000$ 10,000$ WWTF Dewatering Process Scada 20,000$ 20,000$ WWTF SCADA Upgrades 75,000$ 75,000$ WWTF Wash-Water Pump ReplacementsDraft (2) 15,000$ 15,000$ WWTF Solids/RAS Pump 60,000$ 60,000$ Shared Projects Vehicle Replacement 22,100$ 25,000$ 47,100$ Resiliency Study 47,000$ 53,000$ 100,000$ CIP update 23,500$ 26,500$ 50,000$

Total 2021 Capital Budget 1,739,000$ $ 5,734,500 7,473,500$

Water Capital Projects Planning - 2021

2021 2022 2023 2024 2025 2026 2027

Capital Beg Bal $ 8,735,725 8,069,175$ 7,029,561$ 6,070,847$ 6,668,473$ 7,427,815$ 7,597,865$ GFC's $ 60,200 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ Trans from Maint- Depreciation $ 809,800 825,996$ 842,516$ 859,366$ 876,554$ 894,085$ 911,966$ Trans from Maint- Add'l Rate Funded Cap$ 202,450 206,499$ 210,629$ 214,842$ 219,138$ 223,521$ 227,992$ Total Funds Available $ 9,808,175 9,201,670$ 8,182,706$ 7,245,055$ 7,864,165$ 8,645,420$ 8,837,823$

Capital Projects Waterline Replacement Proj Design/Const$ 281,400 290,000$ 298,500$ 307,500$ 316,700$ 326,200$ 336,000$ 8th/9th & 10th St Water Main $ 1,265,000 -$ -$ -$ -$ -$ -$ Old Town SR525 Crossing $ 80,000 1,200,000$ -$ -$ -$ -$ -$ Reservoir No. 1 Interior Recoating -$ 20,000$ 500,000$ -$ -$ -$ -$ Reservoir No. 5 Exterior Recoating $ 20,000 500,000$ -$ -$ -$ -$ -$ 92nd/49th Water Main -$ 80,000$ 1,200,000$ -$ -$ -$ -$ 400/500 Relief Valve Installation -$ -$ -$ 100,000$ -$ -$ -$ 62nd Pl Water Main Replacement -$ -$ 90,000$ 150,000$ -$ -$ -$ Paine Field Transmission Main -$ -$ -$ -$ -$ 300,000$ 3,000,000$ Water System Plan -$ -$ -$ -$ 75,000$ -$ -$

Shared Capital Projects Vehicle Replacement $ 22,100 53,909$ 15,604$ 19,082$ 44,650$ 45,355$ 46,060$ Resiliency Study $ 47,000 -$ -$ -$ -$ -$ -$ CIP update $ 23,500 -$ -$ -$ -$ -$ -$ Rate/GFC Study -$ 28,200$ -$ -$ -$ -$ -$ Server Replacement -$ -$ 7,755$ -$ -$ -$ -$ VaCon Replacement -$ -$ -$ -$ -$ 376,000$ -$

Total Water Capital Projects $ 1,739,000 2,172,109$ 2,111,859$ 576,582$ 436,350$ 1,047,555$ 3,382,060$ Ending Balance $ 8,069,175Draft 7,029,561$ 6,070,847$ 6,668,473$ 7,427,815$ 7,597,865$ 5,455,763$

Wastewater Capital Projects Planning - 2021

20212022 2023 2024 2025 2026 2027 Capital Beg Bal $ 7,605,149 7,571,147$ 8,506,833$ 10,644,626$ 13,541,745$ 16,167,805$ 17,905,138$ GFC's $ 111,000 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ PWTF Loan $ 2,037,658 -$ -$ -$ -$ -$ -$ Trans from Maintenance- Depreciation $ 2,543,200 2,594,064$ 2,645,945$ 2,698,864$ 2,752,841$ 2,807,898$ 2,864,056$ Trans from Maintenance- Add'l Rate Funded Cap$ 508,640 518,813$ 529,189$ 539,773$ 550,568$ 561,580$ 572,811$ Sale of LS 10 Property $ 500,000 Total Funds Available $ 13,305,647 10,784,024$ 11,781,967$ 13,983,263$ 16,945,155$ 19,637,283$ 21,442,005$

Capital Projects City of Mukilteo Culvert Participation Agreement$ 15,000 -$ -$ -$ -$ -$ -$ Sewer Line Replacement- Design/Const $ 310,000 325,000$ 340,000$ 360,000$ 375,000$ 390,000$ 410,000$ Lift Station 9 Upgrade $ 580,000 -$ -$ -$ -$ -$ -$ Lift Station 5 Upgrade $ 1,900,000 -$ -$ -$ -$ -$ -$ Lift Station 5 Force Main $ 800,000 -$ -$ -$ -$ -$ -$ Lift Station 8 Force Main/Gravity $ 60,000 300,000$ -$ -$ -$ -$ -$ WWTF Solids Bldg Dewatering Improvements720,000$ 1,000,000$ -$ -$ -$ -$ -$ Cast-in Place Pipe (CIPP) $ 300,000 350,000$ 400,000$ -$ -$ -$ -$ WWTF Dewatering Process Scada $ 20,000 -$ -$ -$ -$ -$ -$ WWTP Security/Process Cameras $ 30,000 -$ -$ -$ -$ -$ -$ WWTF Solids/RAS Pump $ 60,000 -$ -$ -$ -$ -$ -$ WWTF Scum No. 2 Pump Replacement $ 15,000 -$ -$ -$ -$ -$ -$ WWTF "A/B" Ditch NH3/NO3 Probe Replacement$ 10,000 10,000$ -$ -$ -$ -$ -$ WWTF UV System Upgrades $ 50,000 50,000$ -$ -$ -$ -$ -$ WWTF Lab./Admin Bldg. Replacement $ 500,000 -$ -$ -$ -$ -$ -$ WWTF Upper Road Improvements $ 40,000 -$ -$ -$ -$ -$ -$ Lateral Launcher System $ 90,000 -$ -$ -$ -$ -$ -$ WWTF SCADA Upgrades $ 75,000 -$ -$ -$ -$ -$ -$ WWTF Wash-Water Pump Replacements (2) $ 15,000 -$ -$ -$ -$ -$ -$ WWTF Headworks No. 1 Screen Rebuild -$ 28,600$ -$ -$ -$ -$ -$ WWTF Headworks No. 2 Screen Rebuild -$ -$ 48,000$ -$ -$ -$ -$ WWTF Filtrate No. 1 Pump Replacement -$ -$ 17,000$ -$ -$ -$ -$ WWTF Aeration Control Improvements -$ -$ 65,000$ -$ -$ -$ -$ WWTF AHT Blower VFD Replacements -$ -$ -$ 16,000$ -$ -$ -$ WWTF Clarifier #1 Mechansim Replacement -$ -$ -$ -$ 40,000$ 400,000$ -$ WWTF Clarifier #3 Mechanism Replacement -$ 35,000$ 150,000$ -$ -$ -$ -$ WWTF Digester Replacement -$ 30,000$ -$ -$ -$ -$ -$ WWTF Eff. Filter Feed Pump & VFD 1 Replace -$ -$ 28,000$ -$ -$ -$ -$ WWTF Eff. Filter Feed Pump & VFD 2 Replace -$ -$ -$ 28,000$ -$ -$ -$ WWTF Grit Pump Replacement -$ -$ 18,000$ -$ -$ -$ -$ WWTF "A" Ditch Mixer Replacement -$ -$ -$ -$ -$ 35,000$ -$ WWTF "B" Ditch Mixer Replacement -$ -$ -$ -$ -$ -$ 35,000$ WWTF Effluent Flw Meter Replacement -$ -$ -$ -$ 70,000$ -$ -$ Wastewater Comp Plan -$ -$ -$ -$ 80,000$ -$ -$ City of Everett WPCF Projects $ Draft 40,000 56,000$ 45,000$ 16,000$ 162,000$ 432,000$ 352,000$ Shared Projects Vehicle Replacement $ 25,000 60,791$ 17,596$ 21,518$ 50,350$ 51,145$ 51,940$ Resiliency Study $ 53,000 -$ -$ -$ -$ -$ -$ CIP update $ 26,500 -$ -$ -$ -$ -$ -$ Rate/GFC Study -$ 31,800$ -$ -$ -$ -$ -$ Server Replacement -$ -$ 8,745$ -$ -$ -$ -$ VaCon Replacement -$ -$ -$ -$ -$ 424,000$ -$

Total Capital Projects $ 5,734,500 2,277,191$ 1,137,341$ 441,518$ 777,350$ 1,732,145$ 848,940$

Ending Balance $ 7,571,147 8,506,833$ 10,644,626$ 13,541,745$ 16,167,805$ 17,905,138$ 20,593,065$

Outstanding Debt

Mukilteo Water & Wastewater District

2021 Debt Service and Outstanding Debt

2021 Total 2021 Maturity Interest Original Outstanding Principal Interest Payments Description Date Rate Issue 12/31/2020 Payments Payments Due Bonds: 2008 Improvements & Refunding Bonds (issued for 2023 3.75-4.30 1,720,000 75,000 25,000 3,188 28,188 Big Gulch and ULID 11 refunding) 2012 Water & Wastewater Revenue Bonds (issued 2031 .400-4.00 3,420,000 2,075,000 160,000 71,450 231,450 for Headworks, LS 10, Outfall, and SCADA) 2015 Refunding Bonds 2028 2.00-4.00 4,885,000 3,975,000 435,000 154,650 589,650

SRF Loans: Big Gulch (L0600016) 2028 1.5 1,145,247 477,505 60,609 6,958 67,566

PWTF Loans: Res. No. 4 Seismic Upgrade (PW-03-65103-33) 2024 1.5 622,968 131,151 32,788 1,967 34,755 Big Gulch (PW-07-962-PRE-116) 2027 0.5 1,000,000 373,538 53,363 1,868 55,230 Big Gulch (PW-07-962-PRE-121) 2027 0.5 1,000,000 373,538 53,363 1,868 55,230 Big Gulch (PW-06-962-033) 2026 0.5 7,000,000 2,231,250 371,875 11,156 383,031 Big Gulch (PC08-951-032) 2028 0.5 6,739,575 2,817,589 352,199 14,088 366,287 Outfall (PC13-961-019) 2032 0.5 691,061 454,121 37,843 1,135 38,979 Everett WPCF (PC13-961-004)* Draft2032 0.5 1,332,337 1,043,730 86,977 5,215 92,192 Lift Station 5 & Force Main Improvements (PR20- 2024 0.79 407,531 407,531 100,683 3,219 103,903 96103-017)*

Total 29,963,718 14,434,953 1,769,699 276,762 2,046,461

Budget Detail 2021 Proposed 2020 vs. % Increase/ Water Wastewater Total Budget 2020 Decrease Notes Operating Revenue: Service Revenue $ 4,416,200 $ 8,503,700 $ 12,919,900 $ 12,597,000 $ 322,900 2.6% Other Revenue $ 290,000 $ 163,000 $ 453,000 $ 660,200 $ (207,200) -31.4% This is a result of reduced late fees, shut-off fees, and lower interest rates. Total Operating Revenue $ 4,706,200 $ 8,666,700 $ 13,372,900 $ 13,257,200 $ 115,700 0.9%

Expenses: Operations Supplies & Services $ 34,700 $ 28,700 $ 63,400 $ 63,600 $ (200) 0% Includes $23,500 in telemetry costs previously budgeted in capital; $18,500 in pump Repairs & Maintenance $ 60,300 $ 95,300 $ 155,600 $ 106,600 $ 49,000 46% replacements at 112th Lift Station; and spare parts for Lift Station 10. Includes LS 9 being operational. 2020 reduced expenses assuming downtime during Utilities $ 18,800 $ 58,500 $ 77,300 $ 73,100 $ 4,200 6% construction. Total $ 113,800 $ 182,500 $ 296,300 $ 243,300 $ 53,000 22%

Treatment Includes biosolids disposal rate increase and additional biosolids for the A ditch diffuser Supplies & Services $ - $ 273,400 $ 273,400 $ 259,400 $ 14,000 5% change out. Utilities $ - $ 165,100 $ 165,100 $ 173,200 $ (8,100) -4.7% Lowered power costs based on previous usage. Includes replacement parts for the WAS Pump and Solids Pump as well as a cleaning service Repairs & Maintenance $ - $ 87,500 $ 87,500 $ 80,100 $ 7,400 9% for the new Admin building. Total $ - $ 526,000 $ 526,000 $ 512,700 $ 13,300 2.6%

Administration Labor & Benefits $ 1,231,600 $ 2,153,600 $ 3,385,200 $ 3,296,200 $ 89,000 2.7% Purchased Water $ 1,512,000 $ - $ 1,512,000 $ 1,493,200 $ 18,800 1.3% The 2020 Everett sewer rate was higher than expected, and lower commercial consumption in Purchased Sewer Treat $ - $ 879,900 $ 879,900 $ 697,400 $ 182,500 26.2% the Everett wheeling area reduces the wheeling offset. Both of these items carryover to 2021 and assumes a 9% rate increase in 2021. Increase in Bank fees due to the new customer payment portal and the District no longer Supplies & Services $ 339,900 $ 406,900 $ 746,800 $ 689,200 $ 57,600 8.4% charging the credit card fee. Repairs & Maintenance $ 27,100 $ 35,400 $ 62,500 $ 64,600 $ (2,100) -3.3% Includes monthly cost of new phone system, SCADA, and cell phones. 2020 was under Utilities $ 32,200 $ 39,600 $ 71,800 $ 62,400 $ 9,400 15.1% budgeted by approximately $6,000. Taxes $ 235,200 189,600$ $ 424,800 $ 419,600 5,200$ 1.2% Debt Service $ 2,000 259,800$ $ 261,800 $ 273,500Draft$ (11,700) -4.3% Depreciation $ 809,800 2,543,200$ $ 3,353,000 $ 3,355,500 $ (2,500) -0.1% Total $ 4,189,800 6,508,000$ $ 10,697,800 $ 10,351,600 346,200$ 3.3%

Total Expenses $ 4,303,600 7,216,500$ $ 11,520,100 $ 11,107,600 412,500$ 3.7%

Add'l Rate Funded Capital$ 202,450 508,640$ $ 711,090 $ 671,100

Net Income $ 200,150 941,560$ $ 1,141,710 $ 1,478,500 27

Mukilteo Water and Wastewater District 7824 Mukilteo Speedway Mukilteo, WA 98275 Phone 425 355-3355 Fax 425-348-0645

MEMORANDUM

To: Board of Commissioners From: Jim Voetberg, General Manager q / Date: November 10, 2020

Subject: Manager's report for the meeting of November 18, 2020

Upcoming meetings in December: As an FYI, the Board will need to hold both regularly scheduled meetings in December. Tentatively, on December 2nd the 2021 Operation and Capital Budget, Senior Low Income Discount Program and award of the Risk and Resiliency Assessment - Emergency Response Plan will be presented forconsideration. On December 16th, 2021 adjustment to miscellaneous fees, the District's salary matrix, GFC's, and the 2021 board meeting schedule will be presented forconsideration.

WASWD Information: Attached for Board review is WASWD's November 9th update, results of a Department of Health 2020 Water Customer Assistance Program Survey, and WASWD's lobbyist report on the elections. Washington Association of Sewer & Water Districts WASWD UPDATES EDUCATE • ADVOCATE • COLLABORATE November 9, 2020

COVID-19 Election Results Upcoming Trainings, Conferences & Events *NEW* Associate Member Spotlight

j COVID-19 OPMA Governor's Declaration The Governor's Emergency Proclamation modifying the Open Public Meetings Act and Public Records Act expires Monday, November 9 at 11 :59 p.m. While there has been no action by the legislature yet, we expect the proclamation will be extended to some unknown date or a new proclamation will replace it. The forthcoming proclamation will likely extend current modifications and possibly allow for additional in-person meeting options. The extension of the emergency proclamation must be approved by state legislative leadership. Until the extended or new proclamation is issued, you should continue to follow guidelines in the current emergency proclamation 20-28.11. We will notify members as soon as we get word from the Governor's office.

DOH Vaccine Survey The Washington State Department of Health (DOH) is creating a plan for how to prioritize the COVID-19 vaccine and wants feedback from the water/wastewater sector so that the needs of essential workers are considered in planning COVID-19 vaccination administration. DOH vaccination planning staff are on a tight timeline to develop a COVID-19 vaccine prioritization strategy and are looking to get initial feedback from key partners and communities by 11:59 pm, Friday November 13, 2020. You can take the survey here.

Customer Assistance Program In response to the Governor's proclamation requiring water systems to develop a Customer Assistance Program (CAP) for customers who have been impacted by COVID-19, the Department of Health (DOH) conducted a survey to help utilities establish or improve their CAPs. Of the 70 entities that responded, about half had an established CAP pre-COVID. About half of those who didn't, have created one since the proclamation was issued. The survey found that from June 2019 to June 2020 accounts in arrears increased 430% and CAP enrollment increased nearly 20%. The most common type of CAP was payment plans. Currently, more than 20,000 accounts are in arrears and not currently enrolled in a CAP (3.4% of the sample). This translates to an estimated annual residential rate revenue loss from COVID-19 between $50 and $70 million. The attached document from DOH summarizes results from the survey.

I Election Results

State Legislators On Election day, Democrats retained control of all major statewide offices, and almost a supermajority advantage in the House and Senate. Notably, however, Senator Dean Takko 12720 Gateway Drive, Ste 204, Tukwila, WA 98168 • 206.246.1299 • 800.244.0124 • FAX:206.246.1323 • [email protected] • www.waswd.org Page 11 Washington Association WASWD UPDATES of Sewer & Water Districts November 9, 2020 EDUCATE • ADVOCATE • COLLABORATE

who has held elective office in the Longview district for decades lost his race. He received 45% of the vote to 55% for his challenger Republican, Jeff Wilson. This is a great loss to the districts as he championed many issues for WASWD, receiving outstanding legislator award in several of the past years. Attached is a report from WASWD lobbyist, Scott Hazlegrove.

Utility Tax Rejected Voters in the City of Newcastle rejected a referendum which would impose a 3% utility tax on the Coal Creek Utility District, among other utilities. The vote was 59%-41 %. The referendum was brought by a group of citizens objecting to the Newcastle City Council's approval of the tax on telephone, cell phone, gas, light and power, cable TV, sewer, solid waste, and water in the City to fund public safety services (police, fire).

I UPCOMING TRAININGS, CONFERENCES AND EVENTS

WASWD LEGISLATIVE WORKSHOP. FREE Presented by WASWD. Meeting Link.

... Thursday, November 12, 2020, 10:00-11:30 a.m. Our success in the unusual 2021 legislative session will depend more than ever on the strong participation of WASWD members as partners in advocating for our priorities. Join WASWD lobbyists Scott Hazelgrove and Joren Clowers to review WASWD legislative priorities and prepare to be a strong partner to increase our chances of success by:

1. Reviewing key messages for top priority issues 2. Receiving tools for engaging with your legislator in a digital world 3. Creating a model for success

KING COUNTY WINTER WEATHER SEMINAR. FREE Presented by King County Office of Emergency Management.

.... Recording available online. Live event past. Recording link. Hear presentations on preparing for the upcoming winter storm season.

WATER WELL & PUMP TECHNOLOGY WEBINAR. $100 registration fee Presented by American Ground Water Trust. Registration Link.

.... Tuesday, November 10, 2020, 9:00 a.m.- 4:00 p.m.

This webinar provides a great opportunity to learn about the latest practical, cost-effective solutions to achieve maximum water yield from wells. You will learn how to maximize the economic return on pumped groundwater by correct pump selection, well operation and use of real-time data to effectively match well pumping to aquifer conditions and water demands.

12720 Gateway Drive, Ste 204, Tukwila, WA 98168 • 206.246.1299 • 800.244.0124 • FAX: 206.246.1323 • [email protected] • www.waswd.org Page 12 WashingtonAssociation WASWD UPDATES of Sewer & Water Districts November 9, 2020 EDUCATE • ADVOCATE • COllABORATE

OPTIMIZATION & ACCESSING FUNDING TO IMPROVE SMALL SYSTEMS Presented by AWWA. Registration Link.

� Monday, November 30 and Tuesday, December 1, 2020; 1-3 p.m.

This workshop is intended for small water utility systems located within the state of Washington, made possible through a Small Systems collaboration of the American Water Works Association (AWWA), the US Department of Agriculture (USDA), and the Partnership for Safe Water. ELEMENTS OF UNIT PRICE CONTRACTING WEBINAR. $35 Presented by MRSC. Registration Link.

� Wednesday, December 2, 2020, 10:00-11:30 a.m. Unit price contracting has been granted through statutes for several public agency types starting in 2018. This webinar will provide an overview of the requirements for unit price contracting. It will include statutory references of those agencies currently authorized to use unit price contracting and offer practical tips to developing a solicitation. Panelists from the Department of Labor & Industries will offer firsthand advice on conditions and situations that impact prevailing wages and contractor law. 1.5 hours credit APWA-CAEC Certification.

CREATING THE WATER WORKFORCE OF THE FUTURE Presented by EPA OWM. Registration Link. Wednesday, December 9, 2020, 8:00-9:30 a.m. � Join EPA and speakers from two leading organizations as they discuss the motivations, challenges, and benefits they are experiencing as they work with their own employees and others to ensure their people get the best support possible to meet the technology and water quality challenges of the 21 st century.

I Associate Member Spotlight CDM Smith

COM Smith has been providing services to clients in Washington for over 40 years. We have an enthusiastic staffof over 70 engineers, scientists, planners, and support personnel ready to support district clients on a variety of water and wastewater projects. A partnership with COM Smith is a powerful alliance to help you get the most value from your infrastructure investments. Our work in Washington ranges from design of treatment plant and pipeline upgrades, to hydrogeological monitoring services for well systems. For information about how COM Smith can help your district, contact Stephen Nuss, PE at [email protected] or at 425-519-8307.

12720 Gateway Drive, Ste 204, Tukwila, WA 98168 • 206.246.1299 • 800.244.0124 • FAX: 206.246.1323 • [email protected] • www.waswd.org Page 13 2020 Water Customer Assistance Program Survey October 15, 2020 On July 31, 2020, the Governor's proclamation 20.23.7 required water systems to develop a Customer Assistance Program {CAP) to assist customers who have been impacted by the COVID-19 epidemic. In response, the Department of Health surveyed 2,016 drinking water systems represented by 1,770 individual entities. The insights from this survey will be used to provide technical assistance and support to water systems as they establish or improve their customer assistance programs.

Table 1: Survey Responses by Entity City/Town, or Special Purpose HOA/ Other Entities County District Cooperative Entity (Connections) (18) {26) (18) (8) 0-1000 {35) 5 8 17 5 1,001-15,000 (21) 7 10 1 3 Over 15,000 (14) 6 8 0 0

General Findings • The survey contains responses from 70 entities, which represent over 600,000 residential accounts. • Of the 70 responses, 34 had an established Customer Assistance Program (CAP) prior to COVID-19. • Of the 36 without an established CAP, 18 have developed one after the Governor's proclamation. • COVID-19 has decreased the ability to pay water bills for many residential water service accounts. • Payment plans are the most common type of CAP deployed. • Accounts in the arrears {eligible for shutoff) increased 430% from June 2019 to June 2020. These accounts would have been shut off without the proclamation prohibiting it. • CAP enrollment increased nearly 20% from June 2019 to June 2020. Approximately 5,000 more accounts utilized a CAP with the largest increase primarily associated with Seattle Public Utilities. • Most utilities do not know the percentage of CAP eligible customers that are not enrolled.

Revenue Impacts • Since COVID-19, uncollected water service revenue ranges from less than 1% to 20% of utility revenues. • More than 20,000 accounts are in arrears and not currently enrolled in a CAP {3.4% of the sample). This translates to between $1 million and $1.5 million in uncollected revenue monthly.A • The states' 2,016 drinking water system serve approximately 2.4 million residential connections. If all utilities are experiencing a similar level of delinquent accounts, this translates to between $4 and $6 million each month in uncollected revenues. These figures neither include lost revenue from late fees, nor lost or delayed revenues from commercial accounts. • Annualized, estimated residential rate revenue loss from COVID-19 is between $50 and $70 million. Table 2: Impacts on Residential Drinking Water Accounts Before and After COVID-19 Accounts Accounts Accounts over 30 Accounts Accounts Residential shut off eligible for shut days past-due in CAP in CAP Accounts (2019) off (2020) (Not enrolled in CAP) (2019) (2020} >1000 28 100 199 42 71 1000-15,000 393 2,579 4,617 1,688* 1,206 < 15,000 2,347 11,965 15,674 25,713 31,637 TOTAL 2,768 14,644 20,490 27,443 32,914 *The decline in enrollment in this group of utilities is interesting and may benefit from additional evaluation. 1 2020 Water Customer Assistance Program Survey October 15, 2020 Available Programs and Types • Approximately 50% of systems under 1,000 connections do not currently have a CAP. • Of the 70 responses, 49 identified a primary plan and 34 identified other plans for ratepayer assistance. • The majority of programs are funded by rate revenues, and few by available CARES resources.

Table 3: How Utilities Provide, Administer, and Fund CAPs Category n (%) Key Findings (responses) 32(65%) Payment plans Primary Plan 6 (12%} Bill discount (49) 4(8%) Crisis funding 7(14%) other 16 (47%) Payment plans Other plans 7 (21%) Bill discount (34) 6 (18%) Crisis funding Fixed charge, Lifeline, % of income, arrears forgiveness, 20(59%) budget plan, or other 37 (84%) Self Program 4(9%) Third party Administration(44) 3 (7%) other 19(54%) Rates Program funding 10 (29%) Volunteer donations (35) 3 {9%) CARES Act 3(9%) other

Systems without CAPs • Prior to the Governor's proclamation, 36 systems did not have a CAP. • Afterthe proclamation, 18 systems still do not have a CAP.

Table 4: Thoughts from Utilities That Do Not Have a CAP Category (responses) n (%) Key Findings 13 (43%} Not an issue What factors prevented your 11 {37%) No formal program- will work with customers system from creating a CAP? 1 (3%) Don't have financial resources (30) 5(17%) Other 16 (47%) Yes Would customers benefit from a 7(21%) No CAP? (34) 6 (18%) I need more information Would availability of state or 10 (32%} Yes federal funding encourage you 13 (42%} No to develop a CAP?(31) 8 (26%) Only if I don't have to administer it

A Based on the average monthly bill reported by each utility and multiplied by the reported number of accounts more than 30 days past due, this equates to $1.44million in uncollected revenue monthly. Based on the median of the average monthly bill (approximately $50) multiplied by the total number of accounts more than 30 days past due, this equates to $1 million in uncollected revenue monthly.

2 Jim Voetberg

From: Scott Hazlegrove Sent: Tuesday, November 3, 2020 9:23 PM To: Scott Hazlegrove Subject: WA: election night results

Follow Up Flag: Follow up Flag Status: Flagged

WA: ELECTION NIGHT SUMMARY

Party control was never in doubt in WA elections. The Democrats retained control of all major statewide offices, including Governor and Attorney General. Democrats also maintained almost a supermajority advantage in the House and Senate.

Perhaps the more interesting story in a state that has adopted the advancement of the top two vote getting candidates (regardless of party) to the General Election is the frequency and ferocity of some of these races pitting Democrat against fellow Democrat. The two highest profile competitive races in the state, for Lt. Governor and for the 1 Qth Congressional District, pitted two seasoned Democratic politicians against each other. This was also the dynamic in the most expensive State Senate race and a number of House races.

The media, and some political consultants and their candidates, have tried to wedge all of these races into a narrative of a "moderate" vs. a "progressive" Democrat. While this is certainly a factor in some of the races, there has also been a coordinated effort by some Democratic groups to recruit candidates of color and to recruit younger candidates. However, the general perception of the younger person of color being the "progressive" candidate does not always play out. Instead, there appears to be a growing trend among Democratic candidates of alignment into sub-caucuses. This dynamic may make the strong Democratic majorities difficult to manage internally as each of these sub-caucuses vie for very different caucus priorities.

Congress

All WA members of Congress running for re-election, six Democrats and three Republicans, appear to be coasting to comfortable re-election.

In the single open seat, WA-10, Democratic State Rep. Beth Doglio fell well short of former Tacoma Mayor and Chamber of Commerce Executive Marilyn Strickland, also a Democrat. Doglio, a white woman, attracted strong backing from labor and environmental groups; while Strickland, who touts her black and Korean heritage, received support from many corporate groups. Strickland will head to DC in January.

Statewide

• Governor: Jay lnslee-D, coasted to an easy re-election to a very rare third term. His opponent, the police chief of a small Eastern WA town, never attracted a broad base of support.

1 • Attorney General: Bob Ferguson-D, was also re-elected by a very comfortable margin over a first-time Republican candidate.

• Lt. Governor: State Sen. Marko Liias-D, who currently serves in Senate Leadership fell far short of his opponent, Congressman Denny Heck-D. Heck had a massive fundraising advantage and was thought to be unstoppable, until Liias edge out the Republican candidates in the Primary Election to take the second spot on the ballot and set up a showdown between the two Democrats. However, Heck finished election night with a 500,000 vote lead over Liias that sealed Heck's win. The outcome of this race may become increasingly importantif Gov. lnslee is tapped for a position in a Biden cabinet.

Senate:

Democrats appear poised to add one seat to their current majority of 28-21, but two Republicans are trailing narrowly and late ballots could easily change the outcome in these races. Some of the key races include:

• 5th District (lssaquah)-no change

Sen. Mark Mullet, a moderate Democrat, is locked in a close race with Ingrid Anderson, another Democrat strongly supportedby organized labor and environment groups. The sides have spent over $1 million each and Gov. lnslee took the rare step of endorsing a challenger to an incumbent in his party and actively campaigning on her behalf. The race is too close to call.

• 1 oth District (Whidbey lsland)-D gain

Republican appointee Ron Muzzall is fighting to hold his seat against a challenge from veteran Democratic County Councilmember Helen Price Johnson. Early returns show him in the trailing by 300 votes.

• 15th District (Walla Walla)-no change

Former Republican County Commissioner Perry Dozier easily held offa late well-funded challenge by Democrat Danielle Garbe Reser who outraised Dozier almost 3: 1 in this traditionally Republican district.

• 17th District (Vancouver suburbs)-no change

Republican Lynda Wilson held on against her Democratic opponent, first-time candidate Daniel Smith, who was highly promoted by the party.

• 19th District (Longview)-R gain (CHAIRMAN LOSES)

Democratic Sen. Dean Takko, who has held elective office in the district for decades, appears to be at the end of his public career with a loss to Republican Port Commissioner JeffWilson in a district that is bucking the state and national trends and shifting to Republicans.

• 25th District (Puyallup)-no change

2 Republican State Rep. Chris Gildon looks to be in a position to advance to the Senate by holding this seat for the Rs against a challenge by Puyallup Mayor Julie Door.

• 28th District (University Place)-0 gain

Incumbent Republican Steve O'Ban was always going to face a tough path to re-election in a district that has steadily been electing Democrats to the House. However, his challenger, School Board Member T'wina Nobles captured the attention of many Democrats and ran a well-funded campaign that appears to have captured this seat for the Democrats.

House:

Democrats are likely to enter the 2021 session with a 57-41 advantage by gaining two seats. A larger number of open seats made the outcome harder to predict and divided resources among more races for both caucuses. Notable races include:

• 1 oth District (Whidbey lsland)-0 gain

The first seat became open with the retirement of a long-time Republican legislator. The Democrat preferred by the party did not make it through the primary after voters chose the more liberal former county commissioner, Angie Homola. However, Homola appears to have carried voter support and maintains a narrow lead over Republican Greg Gilday in this swing district. In the second seat, first-term Representative Dave Paul-D is holding offhis challenger Bill Bruch-R.

• 11th District (Renton)-no change (CHAIRMAN LOSES)

In one of the most liberal districts in the state, long-time Democrat Representative Zack Hudgins, who is white, has trailed Democratic attorney David Hackney, who is black, since the primary. The race has been especially bitter and involved discussions of race and representation in a district with a significant minority population. Hackney is comfortably repeating his primary win and will oust the chair of the House Technology Committee.

• 17th District (suburban Vancouver)-D gain

Incumbent Republican Vicki Krafttrails Democrat Tanisha Harris this time in a rematch of a 2018. Later ballots have historically threatened to reverse election night outcomes and the race is not a secure pick up for the Democrats.

• 19th District (Longview)-R gain (CHAIRMAN LOSES)

Jim Walsh-R, who was one of the first Republicans elected to the Legislature from this district in decades when he won four years ago, appears to have easily secured re-election. However, long-time Democratic House member Brian Blake, who chairs the House Natural Resources Committee, appears to be losing his bid for re-election against first time Republican candidate, Joel McIntire.

• 25th District (Puyallup)-no change

Republicans appear to have held both seats. Representative Kelli Chambers is again beating her Democratic challenger Jamie Smith in a rematch from 2018. City Council Member Cyndy Jacobsen is also leading her Democratic opponent, Brian Duthie. 3 • 261h District (Gig Harbor)-no change

Each of the Republican incumbents in this district, who refuse to work with each other, again appear to be securing re-election. Both of the incumbents have been consistently targeted by Democrats in a swing district that sent a Democrat to the Senate. Rep. Jesse Young and Rep. Michelle Caldier will be returning to the Capitol.

• 281h District (University Place)-no change

Firefighter Daniel Bronoske is holding the seat for Democrats against small business owner Chris Nye. Rep. Mari Leavitt-D is also coasting to a comfortable re-election.

• 361h District (Seattle)-no change

Two Democratic women with, self-admittedly, almost identical policy views still battled fiercely to capture this open seat in a heavily Democratic district. Liz Berry, Executive Director of the trial lawyers' association, maintained her primary advantage over Sarah Reyneveld, an attorney who ran with the support of her boss, AG Bob Ferguson.

• 42nd District (Bellingham)-0 gain

The two incumbents represented the farther right and farther left of the political spectrum in this swing district. In the end, Democratic Rep. Sharon Shewmake appears to have beat her Republican challenger Jennifer Sefzik, while Republican Rep. Luanne Van Werven is trailing her Democratic challenger, Alicia Rule.

• 43rd District (Seattle)-no change

Former Democratic House Speaker Frank Chopp was long considered among the most powerful politicians in the state until he stepped down from leadership a year ago. He fought offsurprisingly tough challenges, first from a Democrat and then a Socialist, to win re-election in a district that includes neighborhoods home to some of the most violent clashes during the Black Lives Matter protests earlier this year.

• 44th District (Mill Creek)-no change

Republicans made a strong run to recapture a seat in this district North of Seattle. However, Democrat April Berg, whose back was broken in a car accident on the night of the primary election, first defeated a fellow Democratic challenger in that election and now appears to have won the general election over Republican City Council Member Mark James.

Scott Hazlegrove I CIVIC Group 1206.300.1232

4 Washington Department of Ecology Electronic Submission Cover Letter

WQWebDMR - Permit# WA0023396 - DMR Submission Id: 1747155 - 11/5/2020 1:51:21 PM

Company Name Signer Name System Name Mukilteo Water and Wastewater District Mark Buntich WQWebPortal

Attachments: Document Name Or Description Document Name Submitted Copy of Record for Mukilteo Water and Wastewater Copy of Record MukilteoWaterandWastewaterDistrict Thursday November 5 2020 District

Attestation Agreed to at Signing:

I certify I personally signed and submitted to the Department of Ecology an Electronic Signature Agreement. I understand that use of my electronic signature account/password to submit this information is equal to my written signature. I have read and followed all the rules of use in my Electronic Signature Agreement. I believe no one but me has had access to my password and other account information.

I further certify: I had the opportunity to review the content or meaning of the submittal before signing it; and to the best of my knowledge and belief, the information submitted is true, accurate, and complete. I intend to submit this information as part of the implementation, oversight, and enforcement of a federal environmental program. I am aware there are significant penalties for submitting false information, including possible fines and imprisonment.

For Ecology Use Only

CYPc/SXrQumQ9Q4Ab0xSR7xrfuf +gl//cwAWT5uIbTzthXwFnsm3XQnB8ZTXoZUU/HOfWBphSCp/KnU0/fkA0FxyozImjxTvAyIVZNjXnbw=

Report Received: 2020-11-05 13:51 Page 1 of 1 Pages Washington State Department of Ecology Discharge Monitoring Report (DMR) Page: 1 of 3 Permit Number: WA0023396 Permittee: MUKILTEO WATER AND WASTEWATER DISTRICT WWTP Facility County: Snohomish Receiving Waterbody: Monitoring Period:10/01/2020 - 10/31/2020 Outfall: 001 - PUGET SOUND (CENTRAL) Version: 1

Monitoring Week Point IN1 IN1 IN1 IN1 IN1 001 001 001 001 001 001 1-Th 10/1/20 0.75 238 1489 3.0 19 98.7 1-F 10/2/20 0.70 306 1786 2.8 16 99.1 1-Sa 10/3/20 0.70 281 1640 2.8 16 99.0 2-Su 10/4/20 0.77 197 1265 3.0 19 98.5 2-M 10/5/20 0.76 264 1673 4.0 25 98.5 2-T 10/6/20 0.74 245 1512 244 1506 2.7 17 98.9 4.0 25 98.4 2-W 10/7/20 0.73 249 1516 240 1461 2.1 13 99.2 3.5 21 98.5 2-Th 10/8/20 0.70 269 1570 316 1845 3.3 19 98.8 3.0 18 99.1 2-F 10/9/20 0.79 393 2589 4.5 30 98.9 2-Sa 10/10/20 0.96 403 3227 4.0 32 99.0 3-Su 10/11/20 0.94 236 1850 5.0 39 97.9 3-M 10/12/20 0.90 218 1636 4.3 32 98.1 3-T 10/13/20 0.90 233 1749 276 2072 2.2 17 99.0 3.0 23 98.9 3-W 10/14/20 0.92 206 1581 206 1581 2.3 18 98.9 3.5 27 98.3 3-Th 10/15/20 0.79 238 1568 223 1469 2.0 13 99.1 2.5 16 98.9 3-F 10/16/20 0.78 283 1841 2.0 13 99.3 3-Sa 10/17/20 0.79 312 2056 2.0 13 99.4 4-Su 10/18/20 0.97 262 2120 3.5 28 98.7 4-M 10/19/20 0.86 252 1807 3.0 22 98.8 4-T 10/20/20 0.83 237 1641 225 1557 4.5 31 98.1 8.3 57 96.3 4-W 10/21/20 0.83 259 1793 254 1758 2.8 20 98.9 4.0 28 98.4 4-Th 10/22/20 0.77 285 1830 213 1368 2.0 13 99.3 5.0 32 97.7 4-F 10/23/20 0.78 241 1568 3.3 21 98.7 4-Sa 10/24/20 0.75 328 2052 3.3 20 99.0 5-Su 10/25/20 0.83 239 1654 3.5 24 98.5 5-M 10/26/20 0.79 350 2306 2.0 13 99.4 5-T 10/27/20 0.76 270 1711 278 1762 2.0 12 99.3 1.5 10 99.5 5-W 10/28/20 0.75 307 1920 268 1676 2.0 12 99.4 2.0 13 99.3 5-Th 10/29/20 0.71 278 1646 266 1575 2.4 14 99.2 3.5 21 98.7 5-F 10/30/20 0.68 297 1684 10.0 57 96.6 5-Sa 10/31/20 0.72 234 1405 4.8 29 98.0

Daily Minimum

0.80 256 1670 269 1783 2.5 17 3.7 24 98.6 Average DL: 2.61 Report Only DL: 5210 Report Only DL: 6489 <= 30 <= 653 <= 30 <= 653 >= 85 3.1 21 4.3 30 Weekly Average <= 45 <= 980 <= 45 <= 980 0.97 307 1920 403 3227 Maximum Report Only Report Only Report Only Report Only Report Only

Daily Maximum

Monthly geometric mean

Weekly Geometric Mean Washington State Department of Ecology Discharge Monitoring Report (DMR) Page: 2 of 3

Monitoring Week Point 001 001 001 1-Th 10/1/20 6.60 19.7 1-F 10/2/20 6.84 19.9 1-Sa 10/3/20 7.03 19.6 2-Su 10/4/20 7.03 19.6 2-M 10/5/20 6.62 19.9 2-T 10/6/20 9 6.74 19.7 2-W 10/7/20 13 6.69 19.7 2-Th 10/8/20 6 6.72 19.7 2-F 10/9/20 6.84 19.6 2-Sa 10/10/20 6.93 19.6 3-Su 10/11/20 6.93 19.0 3-M 10/12/20 11 6.63 19.1 3-T 10/13/20 4 6.78 18.9 3-W 10/14/20 4 6.77 18.8 3-Th 10/15/20 6.68 18.7 3-F 10/16/20 6.67 18.7 3-Sa 10/17/20 7.03 18.8 4-Su 10/18/20 7.10 18.7 4-M 10/19/20 6.72 19.0 4-T 10/20/20 6 6.64 18.5 4-W 10/21/20 9 6.63 18.5 4-Th 10/22/20 2 6.68 18.2 4-F 10/23/20 6.53 17.4 4-Sa 10/24/20 6.80 17.0 5-Su 10/25/20 6.92 16.5 5-M 10/26/20 3 6.51 16.6 5-T 10/27/20 4 6.64 16.8 5-W 10/28/20 5 6.68 17.1 5-Th 10/29/20 6.40 17.5 5-F 10/30/20 6.76 17.7 5-Sa 10/31/20 6.89 17.2 6.4 Daily Minimum >= 6.0 (RO) 18.6 Average Report Only

Weekly Average

Maximum

7.1 Daily Maximum <= 9.0 (RO)

Monthly geometric 6 mean <= 200

Weekly Geometric 9 Mean <= 400 Washington State Department of Ecology Discharge Monitoring Report (DMR) Page: 3 of 3 I certify under penalty of law, that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system or those persons directly responsible for gathering information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations.

mark buntich 11/5/2020 1:51:24 PM Signature Date

PROPOSED 2021 BUDGET MUKILTEO WATER AND WASTEWATER DISTRICT

OPERATION AND MAINTENANCE BUDGET CAPITAL BUDGET Presented November 18, 2020

Board of Commissioners: Thomas McGrath, President Mike Johnson, Vice-President Jeff Clarke, Secretary

Presented by: Jim Voetberg, General Manager J.R. Erickson, Finance Manager Bev Templin, Financial Accounting Supervisor Rick Matthews, Operations/Engineering Manager

Mukilteo Water & Wastewater District 7824 Mukilteo Speedway Mukilteo, WA 98275-2608 Ph. 425-355-3355  Fx. 425-348-0645

November 18, 2020

Executive Summary

Board of Commissioners Mukilteo Water and Wastewater District

Re: Proposed 2021 Operating and Capital Budget

Dear Board of Commissioners:

A Brief Look Back at 2020:

The year of COVID-19. The impact of COVID-19 made 2020 an unprecedented year. Wearing of masks, observing safe distancing, shifting of work schedules, limiting employee interactions, changing how we work with the public, office closed to the public, no shut-offs, no collecting late fees, challenges with the supply chain, virtual meetings, continuity of capital projects; it seems not one single aspect of the District’s day-to-day operations was not impacted. Yet through all these challenges, our District has continued to operate and provide safe and reliable water and wastewater services. Our success is attributed to our dedicated employees who adjusted their lives and stepped up when needed to make sure Mukilteo Water and Wastewater District remains a leader in our industry and sets an example of how we can succeed under trying circumstances.

In addition to standard day-to day operations and maintenance that due to COVID-19 was anything but standard, a few notable achievements and projects completed, or to be completed, in 2020 include:

Water Distribution: • Completed the 2020 Water Improvement project: Possession View Lane.

• Designed the 2021 Water Improvement Project: 8th, 9th and 10th Streets. • Exceeded Developer Extension budgeted revenue (Budgeted $173,900; Year to Date $426,100).

2021 Proposed Budget

Following are highlights of the 2021 Budget. As with previous budgets, staff takes a slightly conservative approach to both revenues and expenses. Revenues are estimated on the lower side and expenses are estimated on the higher side. This conservative approach allows a cushion for addressing unanticipated financial issues, should they occur, to better ensure the District’s long-term financial sustainability.

Revenues:

4 wastewater rates are equal. Budgeted 2021 operating revenue is 1.1% higher than 2020 budgeted operating revenue.

Historic and projected water and sewer revenue is as follows:

Expenses:

Budgeted 2021 operating, maintenance, and administrative expenses are 3.4% higher than 2020 budgeted expenses. Proposed and historic operating, maintenance, and administrative costs for the Utilities are as follows:

The five highest budget expenses, representing approximately 89% of the overall 2021 Budget, historically and continue to be:

1. Depreciation

2. Personnel (Labor & Benefits)

3. Purchased Water

4. Supplies, Services, Repairs & Maintenance

5. Purchased Sewer Treatment

• Direct Labor Costs: The proposed Salary Wage Matrix includes a 2.1% COLA increase for 2021.

Sewage Disposal: Wastewater from customers east of Paine Field (former Eastside Service Area) flows to Everett’s wastewater treatment facility. The 2021 budget includes $879,900 for this sewage disposal, representing 12.2% of the Wastewater Utility budget or 7.6% of the overall operating budget. Everett’s sewage disposal cost is based on Equivalent Residential Units (ERU). A combination of higher than estimated rates from Everett in both the Mukilteo and AWWD basins with lower than expected wheeling consumption due to lower commercial consumption resulted in 2020 estimates being 10% over budget. Applying these same factors to the 2021 budget result in expenses being approximately 12% above 2020 estimates.

Capital and Debt:

Capital expenditures in the 2021 Budget are as follows:

Water $ 1,739,000 Wastewater $ 5,734,500 Total $ 7,473,500

Conclusion:

I wish to acknowledge all staff for their professionalism and dedicated commitment to our customers and their assistance in putting this budget together.

Sincerely,

Jim Voetberg General Manager

District Map

MUKILTEO WATER AND WASTEWATER DISTRICT MISSION STATEMENT

Introduction Service Area

• Bank Accounts/Funds • Revenue Sufficiency • Sustainability of Infrastructure • Debt Management • Reserves • Fraud • Accounting – Other

The following Financial Policies outline a general framework of budgetary goals concerning reporting policies, the operating budget, capital budget, reserves and debt management.

2. Financial reporting will present fairly and with full disclosure the financial operations of the District in conformity with Generally Accepted Accounting Principles (GAAP).

Organizational Chart

MUKILTEO WATER & WASTEWATER DISTRICT STAFF ORGANIZATIONAL CHART

No. of employees managed (as budgeted): General Manager – 3 Operations/Engineering Manager – 4 Treatment Facility Supervisor – 4 Operations Field Supervisor – 6 Finance Manager – 4

The Budget Process

Budget Policies

Budget Preparation

Budget Review

Budget Approval

The Board of Commissioners will adopt the budget at one of the two regularly scheduled board meetings in December.

Budget Amendment

The Capital budget may be increased to include new capital purchases or projects, or increases in existing budget items as needed.

Budget Overview

Rates

Volume Charge (per 1,000 gallons) $ 3.57 $ 3.22 $ 4.19 Wastewater Rates

Bi-Monthly Base Rates

Meter Size Single-Family Multi-Family Commercial Per Unit 5/8 x 3/4" $ 126.00 $ 100.90 $ 82.84 1" $ 207.08 1 1/2" $ 414.18 2" $ 662.64 3" $ 1,325.76 4" $ 2,070.78

Volume Charge (per 1,000 gallons)

Single-Family Multi-Family Commercial Class I N/A N/A $ 8.90 Class II N/A N/A $ 13.31 12

Revenue

Water Revenue

Significant variances or notable changes

Commercial:

2020 saw a significant decrease in Commercial water consumption due to COVID-19. Consumption is starting to increase closer to normal levels but the District assumes this reduction will carryover through the first half of 2021.

Misc.:

Wastewater Revenue

Significant variances or notable changes

Single-Family:

2021 is the first year that westside and eastside rates are to be equal. As part of this 5-year process, westside rates are going down by 1.7% and eastside rates are going up 3.3%.

Misc.:

Expenses

The 2021 operating expenses for water are budgeted at $4,303,600 and $7,216,500 for wastewater. Overall, this is a 3.4% increase from 2020.

2017 2018 2019 2020 2021 % Budget Budget Budget Budget Projected Budget Labor & Benefits $ 2,756,000 $ 2,911,700 $ 3,164,900 $ 3,296,200 $ 2,658,719 $ 3,385,200 2.7% Purchased Water $ 1,307,600 $ 1,350,800 $ 1,460,100 $ 1,493,200 $ 1,268,008 $ 1,512,000 1.3% Purchased Sewer Treatment $ 753,400 $ 806,100 $ 687,000 $ 697,400 $ 786,135 $ 879,900 26.2% Supplies & Services $ 877,300 $ 878,400 $ 908,100 $ 1,012,200 $ 977,211 $ 1,083,600 7.1% Repairs & Maintenance $ 254,600 $ 271,600 $ 290,400 $ 251,300 $ 195,855 $ 305,600 21.6% Utilities $ 300,300 $ 307,800 $ 311,600 $ 308,700 $ 294,283 $ 314,200 1.8% Taxes $ 407,600 $ 408,900 $ 414,500 $ 419,600 $ 395,712 $ 424,800 1.2% Debt Service $ 338,300 $ 315,000 $ 323,400 $ 305,700 $ 305,179 $ 261,800 -14.4% Depreciation $ 3,154,300 $ 3,377,800 $ 3,388,100 $ 3,355,500 $ 3,355,500 $ 3,353,000 -0.1% Total $ 10,149,400 $ 10,628,100 $ 10,948,100 $ 11,139,800 $ 10,236,602 $ 11,520,100 3.4%

Significant variances or notable changes

Purchased Sewer Treatment • The 2021 budget is $879,900 which is 26% higher than the 2020 budget. The 2020 budget included estimates for the City of Everett Sewer Treatment costs which ended up being lower than actuals. Also, the number of ERU’s in the wheeling calculation has been lower than expected due to commercial account’s consumption being significantly reduced during the pandemic. The 2021 budget takes into account the higher 2020 rate (which goes through March 2021), assumes a 9% rate increase beginning in April 2021, and that the commercial consumption will slowly increase during the first half of 2021.

Supplies and Services

• The budget for Supplies and Services in 2021 is $1,083,600, which is $71,400 (7.1%) higher than 2020. Supplies and Services include the District’s liability insurance, credit card fees, computer

Repairs and Maintenance

Water/Wastewater Breakdown

2021 Proposed Budget - Expenses

2018 2019 2020 2021 Increase / Water Budget Budget Budget Projected Budget Decrease Labor & Benefits $ 1,097,000 $ 1,194,400 $ 1,249,600 $ 1,195,245 $ 1,231,600 -1.4% Purchased Water $ 1,350,800 $ 1,460,100 $ 1,493,200 $ 1,268,008 $ 1,512,000 1.3% Supplies & Services $ 320,900 $ 308,500 $ 353,400 $ 342,093 $ 374,600 6.0% Repairs & Maintenance $ 89,300 $ 96,700 $ 82,000 $ 60,127 $ 87,400 6.6% Utilities $ 43,500 $ 46,200 $ 45,600 $ 46,586 $ 51,000 11.8% Taxes $ 225,100 $ 226,900 $ 234,100 $ 209,196 $ 235,200 0.5% Debt Service $ 3,900 $ 3,000 $ 3,100 $ 2,459 $ 2,000 -35.5% Depreciation $ 831,800 $ 802,700 $ 814,000 $ 814,000 $ 809,800 -0.5% Total $ 3,962,300 $ 4,138,500 $ 4,275,000 $ 3,937,714 $ 4,303,600 0.7%

2018 2019 2020 2021 Increase / Sewer Collection Budget Budget Budget Projected Budget Decrease Labor & Benefits $ 1,333,600 $ 1,452,000 $ 1,512,900 $ 1,463,474 $ 1,611,600 6.5% Purchased Sewer Treatment $ 806,100 $ 687,000 $ 697,400 $ 786,135 $ 879,900 26.2% Supplies & Services $ 359,100 $ 345,800 $ 399,400 $ 389,696 $ 435,600 9.1% Repairs & Maintenance $ 90,800 $ 109,700 $ 89,200 $ 66,109 $ 130,700 46.5% Utilities $ 97,400 $ 100,400 $ 89,900 $ 93,239 $ 98,100 9.1% Taxes $ 183,800 $ 187,600 $ 185,500 $ 186,516 $ 189,600 2.2% Debt Service $ 311,100 $ 320,400 $ 302,600 $ 302,720 $ 259,800 -14.1% Depreciation $ 2,546,000 $ 2,585,400 $ 2,541,500 $ 2,541,500 $ 2,543,200 0.1% Total $ 5,727,900 $ 5,788,300 $ 5,818,400 $ 5,829,389 $ 6,148,500 5.7%

2018 2019 2020 2021 Increase / Treatment Plant Budget Budget Budget Projected Budget Decrease Labor $ 481,100 $ 518,500 $ 533,700 $ 531,736 $ 542,000 1.6% Supplies & Services $ 198,400 $ 253,800 $ 259,400 $ 245,422 $ 273,400 5.4% Repairs & Maintenance $ 91,500 $ 84,000 $ 80,100 $ 69,618 $ 87,500 9.2% Utilities $ 166,900 $ 165,000 $ 173,200 $ 154,459 $ 165,100 -4.7% Total $ 937,900 $ 1,021,300 $ 1,046,400 $ 1,001,235 $ 1,068,000 2.1%

Sewer Total $ 6,665,800 $ 6,809,600 $ 6,864,800 $ 6,830,624 $ 7,216,500 5.1%

Overall $ 10,628,100 $ 10,948,100 $ 11,139,800 $ 10,768,337 $ 11,520,100 3.4%

2021 Mukilteo Water and Wastewater District

Capital Budget

Introduction:

Following are the 2021 recommended Capital Projects:

Water Capital Projects

Waterline Project Replacement Design/Construction (46-20): This is a placeholder for waterlines identified as needing repair which have not been previously identified in various plans and studies.

Total Estimated Project Cost: $281,400

8th/9th/10th St Water Main – Construction & CM (47-20): This proposed project replaces approximately 2,200 lineal feet of 4-inch cast iron water main with restraint joint 8-inch ductile iron water main. The project is located between Park St and Campbell Ave on 10th St, between Park St and Loveland Ave on 9th St and the 4-inch portion on 8th St to Campbell Ave. The project will replace aging and undersized water main that has experienced a recent high rate of failure, increase fire flow, and upgrade the system to current District standards.

Total Estimated Project Cost – Construction & CM: $1,265,000

Total Estimated Project Cost - Design: $80,000

Total Estimated Project Cost - Design: $20,000

Wastewater Capital Projects

Total Estimated Project Cost: $40,000

Total Estimated Project Construction and CM Cost: $310,000

Total Estimated Project Construction & CM Cost (carryover from 2020): $580,000

Lift Station No. 5 Force Main – Construction & CM (49-20): The Lift Station No. 5 Force Main was constructed in the late 1960s and is nearing the end of its useful life. It is exposed in places and has been the subject of recent failures. It is located in a seismically sensitive area that has experienced recent slide activity. The project will consist of reliability, redundancy and capacity improvements. Design and permitting was completed in 2020 and construction is scheduled for 2021.

Total Estimated Project Cost: $800,000

Total Estimated Project Cost – Construction & CM: $1,900,000

Total Estimated Project Construction & CM Cost (Carryover from 2020): $500,000

Total Estimated Project Cost: $30,000

Total Estimated Project Cost: $720,000

Total Estimated Project Cost: $40,000

Lift Station No. 8 Force Main and Gravity Improvements - Design: This project includes design in 2021 and construction in 2022 of upgrades to the Lift Station No. 8 force main and gravity piping.

Total Estimated Project Cost - Design: $60,000

Total Estimated Project Cost: $300,000

Total Estimated Project Cost (Phase II): $50,000

Total Estimated Project Cost - $15,000

Total Estimated Equipment Cost - $90,000

Total Estimated Project Costs - $195,000

Projects Shared with Both Utilities

Cost split: Water $47,000 Wastewater 53,000 Total Estimated Project Cost $100,000

Cost split: Water $22,100 Wastewater 25,000 Total Estimated Equipment Cost: $47,100

Cost split: Water $23,500 Wastewater 26,500 Total Estimated Equipment Cost: $50,000

Mukilteo Water & Wastewater District Proposed 2021 Capital Budget

Project Name Water Wastewater Total Water Waterline Replacement Proj Design/Const $ 281,400 $ 281,400 8th/9th & 10th St Water Main $ 1,265,000 $ 1,265,000 Old Town SR525 Crossing $ 80,000 $ 80,000 Reservoir No. 5 Exterior Recoating $ 20,000 $ 20,000 Wastewater City of Everett WPCF Projects $ 40,000 $ 40,000 Sewer Line Replacement- Design/Const $ 310,000 $ 310,000 Lift Station 9 Upgrade $ 580,000 $ 580,000 Lift Station 5 Force Main $ 800,000 $ 800,000 Lift Station 5 Upgrade $ 1,900,000 $ 1,900,000 WWTF Lab./Admin Bldg. Replacement $ 500,000 $ 500,000 WWTP Security/Process Cameras $ 30,000 $ 30,000 WWTF Solids Bldg Dewatering Improvements $ 720,000 $ 720,000 WWTF Upper Road Improvements $ 40,000 $ 40,000 Lift Station 8 Force Main/Gravity $ 60,000 $ 60,000 Cast-in Place Pipe (CIPP) $ 300,000 $ 300,000 WWTF UV System Upgrades $ 50,000 $ 50,000 City of Mukilteo Culvert Participation Agreement $ 15,000 $ 15,000 Lateral Launcher System $ 90,000 $ 90,000 WWTF Scum No. 2 Pump Replacement $ 15,000 $ 15,000 WWTF "A/B" Ditch NH3/NO3 Probe Replacement $ 10,000 $ 10,000 WWTF Dewatering Process Scada $ 20,000 $ 20,000 WWTF SCADA Upgrades $ 75,000 $ 75,000 WWTF Wash-Water Pump Replacements (2) $ 15,000 $ 15,000 WWTF Solids/RAS Pump $ 60,000 $ 60,000 Shared Projects Vehicle Replacement $ 22,100 $ 25,000 $ 47,100 Resiliency Study $ 47,000 $ 53,000 $ 100,000 CIP update $ 23,500 $ 26,500 $ 50,000

Total 2021 Capital Budget $ 1,739,000 $ 5,734,500 $ 7,473,500

Water Capital Projects Planning - 2021

2021 2022 2023 2024 2025 2026 2027

Capital Beg Bal $ 8,735,725 $ 8,069,175 $ 7,029,561 $ 6,070,847 $ 6,668,473 $ 7,427,815 $ 7,597,865 GFC's $ 60,200 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 Trans from Maint- Depreciation $ 809,800 $ 825,996 $ 842,516 $ 859,366 $ 876,554 $ 894,085 $ 911,966 Trans from Maint- Add'l Rate Funded Cap $ 202,450 $ 206,499 $ 210,629 $ 214,842 $ 219,138 $ 223,521 $ 227,992 Total Funds Available $ 9,808,175 $ 9,201,670 $ 8,182,706 $ 7,245,055 $ 7,864,165 $ 8,645,420 $ 8,837,823

Capital Projects Waterline Replacement Proj Design/Const $ 281,400 $ 290,000 $ 298,500 $ 307,500 $ 316,700 $ 326,200 $ 336,000 8th/9th & 10th St Water Main $ 1,265,000 $ - $ - $ - $ - $ - $ - Old Town SR525 Crossing $ 80,000 $ 1,200,000 $ - $ - $ - $ - $ - Reservoir No. 1 Interior Recoating $ - $ 20,000 $ 500,000 $ - $ - $ - $ - Reservoir No. 5 Exterior Recoating $ 20,000 $ 500,000 $ - $ - $ - $ - $ - 92nd/49th Water Main $ - $ 80,000 $ 1,200,000 $ - $ - $ - $ - 400/500 Relief Valve Installation $ - $ - $ - $ 100,000 $ - $ - $ - 62nd Pl Water Main Replacement $ - $ - $ 90,000 $ 150,000 $ - $ - $ - Paine Field Transmission Main $ - $ - $ - $ - $ - $ 300,000 $ 3,000,000 Water System Plan $ - $ - $ - $ - $ 75,000 $ - $ -

Shared Capital Projects Vehicle Replacement $ 22,100 $ 53,909 $ 15,604 $ 19,082 $ 44,650 $ 45,355 $ 46,060 Resiliency Study $ 47,000 $ - $ - $ - $ - $ - $ - CIP update $ 23,500 $ - $ - $ - $ - $ - $ - Rate/GFC Study $ - $ 28,200 $ - $ - $ - $ - $ - Server Replacement $ - $ - $ 7,755 $ - $ - $ - $ - VaCon Replacement $ - $ - $ - $ - $ - $ 376,000 $ -

Total Water Capital Projects $ 1,739,000 $ 2,172,109 $ 2,111,859 $ 576,582 $ 436,350 $ 1,047,555 $ 3,382,060

Ending Balance $ 8,069,175 $ 7,029,561 $ 6,070,847 $ 6,668,473 $ 7,427,815 $ 7,597,865 $ 5,455,763

Wastewater Capital Projects Planning - 2021

2021 2022 2023 2024 2025 2026 2027 Capital Beg Bal $ 7,605,149 $ 7,571,147 $ 8,506,833 $ 10,644,626 $ 13,541,745 $ 16,167,805 $ 17,905,138 GFC's $ 111,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 PWTF Loan $ 2,037,658 $ - $ - $ - $ - $ - $ - Trans from Maintenance- Depreciation $ 2,543,200 $ 2,594,064 $ 2,645,945 $ 2,698,864 $ 2,752,841 $ 2,807,898 $ 2,864,056 Trans from Maintenance- Add'l Rate Funded Cap $ 508,640 $ 518,813 $ 529,189 $ 539,773 $ 550,568 $ 561,580 $ 572,811 Sale of LS 10 Property $ 500,000 Total Funds Available $ 13,305,647 $ 10,784,024 $ 11,781,967 $ 13,983,263 $ 16,945,155 $ 19,637,283 $ 21,442,005

Capital Projects City of Mukilteo Culvert Participation Agreement $ 15,000 $ - $ - $ - $ - $ - $ - Sewer Line Replacement- Design/Const $ 310,000 $ 325,000 $ 340,000 $ 360,000 $ 375,000 $ 390,000 $ 410,000 Lift Station 9 Upgrade $ 580,000 $ - $ - $ - $ - $ - $ - Lift Station 5 Upgrade $ 1,900,000 $ - $ - $ - $ - $ - $ - Lift Station 5 Force Main $ 800,000 $ - $ - $ - $ - $ - $ - Lift Station 8 Force Main/Gravity $ 60,000 $ 300,000 $ - $ - $ - $ - $ - WWTF Solids Bldg Dewatering Improvements $ 720,000 $ 1,000,000 $ - $ - $ - $ - $ - Cast-in Place Pipe (CIPP) $ 300,000 $ 350,000 $ 400,000 $ - $ - $ - $ - WWTF Dewatering Process Scada $ 20,000 $ - $ - $ - $ - $ - $ - WWTP Security/Process Cameras $ 30,000 $ - $ - $ - $ - $ - $ - WWTF Solids/RAS Pump $ 60,000 $ - $ - $ - $ - $ - $ - WWTF Scum No. 2 Pump Replacement $ 15,000 $ - $ - $ - $ - $ - $ - WWTF "A/B" Ditch NH3/NO3 Probe Replacement $ 10,000 $ 10,000 $ - $ - $ - $ - $ - WWTF UV System Upgrades $ 50,000 $ 50,000 $ - $ - $ - $ - $ - WWTF Lab./Admin Bldg. Replacement $ 500,000 $ - $ - $ - $ - $ - $ - WWTF Upper Road Improvements $ 40,000 $ - $ - $ - $ - $ - $ - Lateral Launcher System $ 90,000 $ - $ - $ - $ - $ - $ - WWTF SCADA Upgrades $ 75,000 $ - $ - $ - $ - $ - $ - WWTF Wash-Water Pump Replacements (2) $ 15,000 $ - $ - $ - $ - $ - $ - WWTF Headworks No. 1 Screen Rebuild $ - $ 28,600 $ - $ - $ - $ - $ - WWTF Headworks No. 2 Screen Rebuild $ - $ - $ 48,000 $ - $ - $ - $ - WWTF Filtrate No. 1 Pump Replacement $ - $ - $ 17,000 $ - $ - $ - $ - WWTF Aeration Control Improvements $ - $ - $ 65,000 $ - $ - $ - $ - WWTF AHT Blower VFD Replacements $ - $ - $ - $ 16,000 $ - $ - $ - WWTF Clarifier #1 Mechansim Replacement $ - $ - $ - $ - $ 40,000 $ 400,000 $ - WWTF Clarifier #3 Mechanism Replacement $ - $ 35,000 $ 150,000 $ - $ - $ - $ - WWTF Digester Replacement $ - $ 30,000 $ - $ - $ - $ - $ - WWTF Eff. Filter Feed Pump & VFD 1 Replace $ - $ - $ 28,000 $ - $ - $ - $ - WWTF Eff. Filter Feed Pump & VFD 2 Replace $ - $ - $ - $ 28,000 $ - $ - $ - WWTF Grit Pump Replacement $ - $ - $ 18,000 $ - $ - $ - $ - WWTF "A" Ditch Mixer Replacement $ - $ - $ - $ - $ - $ 35,000 $ - WWTF "B" Ditch Mixer Replacement $ - $ - $ - $ - $ - $ - $ 35,000 WWTF Effluent Flw Meter Replacement $ - $ - $ - $ - $ 70,000 $ - $ - Wastewater Comp Plan $ - $ - $ - $ - $ 80,000 $ - $ - City of Everett WPCF Projects $ 40,000 $ 56,000 $ 45,000 $ 16,000 $ 162,000 $ 432,000 $ 352,000

Shared Projects Vehicle Replacement $ 25,000 $ 60,791 $ 17,596 $ 21,518 $ 50,350 $ 51,145 $ 51,940 Resiliency Study $ 53,000 $ - $ - $ - $ - $ - $ - CIP update $ 26,500 $ - $ - $ - $ - $ - $ - Rate/GFC Study $ - $ 31,800 $ - $ - $ - $ - $ - Server Replacement $ - $ - $ 8,745 $ - $ - $ - $ - VaCon Replacement $ - $ - $ - $ - $ - $ 424,000 $ -

Total Capital Projects $ 5,734,500 $ 2,277,191 $ 1,137,341 $ 441,518 $ 777,350 $ 1,732,145 $ 848,940

Ending Balance $ 7,571,147 $ 8,506,833 $ 10,644,626 $ 13,541,745 $ 16,167,805 $ 17,905,138 $ 20,593,065

Outstanding Debt

Mukilteo Water & Wastewater District

2021 Debt Service and Outstanding Debt

SRF Loans: Big Gulch (L0600016) 2028 1.5 1,145,247 477,505 60,609 6,958 67,566

PWTF Loans: Res. No. 4 Seismic Upgrade (PW-03-65103-33) 2024 1.5 622,968 131,151 32,788 1,967 34,755 Big Gulch (PW-07-962-PRE-116) 2027 0.5 1,000,000 373,538 53,363 1,868 55,230 Big Gulch (PW-07-962-PRE-121) 2027 0.5 1,000,000 373,538 53,363 1,868 55,230 Big Gulch (PW-06-962-033) 2026 0.5 7,000,000 2,231,250 371,875 11,156 383,031 Big Gulch (PC08-951-032) 2028 0.5 6,739,575 2,817,589 352,199 14,088 366,287 Outfall (PC13-961-019) 2032 0.5 691,061 454,121 37,843 1,135 38,979 Everett WPCF (PC13-961-004)* 2032 0.5 1,332,337 1,043,730 86,977 5,215 92,192 Lift Station 5 & Force Main Improvements (PR20- 2024 0.79 407,531 407,531 100,683 3,219 103,903 96103-017)*

Total 29,963,718 14,434,953 1,769,699 276,762 2,046,461

Administration Labor & Benefits $ 1,231,600 $ 2,153,600 $ 3,385,200 $ 3,296,200 $ 89,000 2.7% Purchased Water $ 1,512,000 $ - $ 1,512,000 $ 1,493,200 $ 18,800 1.3% The 2020 Everett sewer rate was higher than expected, and lower commercial consumption in Purchased Sewer Treat $ - $ 879,900 $ 879,900 $ 697,400 $ 182,500 26.2% the Everett wheeling area reduces the wheeling offset. Both of these items carryover to 2021 and assumes a 9% rate increase in 2021. Increase in Bank fees due to the new customer payment portal and the District no longer Supplies & Services $ 339,900 $ 406,900 $ 746,800 $ 689,200 $ 57,600 8.4% charging the credit card fee. Repairs & Maintenance $ 27,100 $ 35,400 $ 62,500 $ 64,600 $ (2,100) -3.3% Includes monthly cost of new phone system, SCADA, and cell phones. 2020 was under Utilities $ 32,200 $ 39,600 $ 71,800 $ 62,400 $ 9,400 15.1% budgeted by approximately $6,000. Taxes $ 235,200 $ 189,600 $ 424,800 $ 419,600 $ 5,200 1.2% Debt Service $ 2,000 $ 259,800 $ 261,800 $ 273,500 $ (11,700) -4.3% Depreciation $ 809,800 $ 2,543,200 $ 3,353,000 $ 3,355,500 $ (2,500) -0.1% Total $ 4,189,800 $ 6,508,000 $ 10,697,800 $ 10,351,600 $ 346,200 3.3%

Total Expenses $ 4,303,600 $ 7,216,500 $ 11,520,100 $ 11,107,600 $ 412,500 3.7%

Add'l Rate Funded Capital $ 202,450 $ 508,640 $ 711,090 $ 671,100

Net Income $ 200,150 $ 941,560 $ 1,141,710 $ 1,478,500 27