HomeMy WebLinkAboutUtilities 2014-11-17 Item 2B - Discussion - King County Regional Sewer Treatment Agreement NegotiationsTO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Utilities Committee
FROM: Bob Giberson, Public Works Director
BY: Pat Brodin, Operations Manager
DATE: November 14, 2014
SUBJECT: King County Regional Sewer Treatment Agreement Negotiations
ISSUE
Update Committee on negotiations for a new sewage disposal contract between King
County and member agencies.
BACKGROUND
In early 2014, as part of MWPAAC (Metropolitan Water Pollution Abatement Advisory
Committee), a working sub-group of key staff from King County and member agencies
met on the first and third Fridays of each month to discuss regional issues for the next
sewer treatment contract update. The selected team began early this year by
establishing a framework for good development processes. Along with the Guiding
Principles (see attached) to start the process, the negotiating team has been working on
several issues that include:
• Governance
• Our Waters (formerly Culver Funds)
• Reclaimed Water
• Innovation
• Rate Setting
• Capital Planning & Projects (define large/small, regional/local)
The purpose of the negotiating team is to develop a new, long-term regional sewer
wastewater treatment agreement for use by all of the MWPAAC member agencies in
establishing agency-specific contracts with King County. The goal of the working team
is to work in partnership developing a framework that is viewed as fair by all of the
regional partners.
RECOMMENDATION
Information only.
Attachments: Letter dated May 23, 2014 from Bob Burns of King County
Draft Guiding Principles
Draft Issue Discussion Status Report
W:\Shared Copy Only\ PabInfo Memo Regional Sewage Contract Issues 11-14-14 - sb.docx
19
King County
Department of
Natural Resources and Parks
Director's Office
King Street Center
201 S Jackson St, Suite 700
Seattle, WA 98104 -3855
May 23, 2014
MWPAAC Agency Liaison or Agency Director
Address
RE: Regional Wastewater Treatment Agreement Negotiations
Dear » » » »:
We are writing to formally inform you of an effort that has recently been initiated to address the
need for a new regional wastewater treatment agreement. A new negotiating team was recently
formed to develop this agreement; this committee is comprised of 11 members from King County
and MWPAAC member agencies. We are two members of this team, which will be
working to represent the interests of King County, cities and districts, both large and small, as we
negotiate the draft terms of the agreement. Our team has started meeting to establish its purpose,
goals, guiding principles, and the framework for a good development process. We would like to
communicate this information to you and reach out to you to establish a conduit for information
flow between your agency and the negotiating team.
The original sewage disposal agreements, signed in the early 1960's, have served this region well
for the last half century. They helped achieve one of the region's primary goals at the time -
cleaning up Lake Washington. However, much has changed in our region in the 50 years since
those original agreements were reached. The regional wastewater system has grown substantially
and now serves 1.5 million people. Continued population growth in the region, expectations from
our customers for cost effective wastewater collection and treatment, and continuing changes in
environmental regulations to address issues such as fish consumption and enhanced treatment
requirements are challenges that we will need to address through collaborative partnerships in
order to be truly successful.
The purpose of the negotiating team is to develop a new, long -term regional wastewater treatment
agreement for use by all of the MWPAAC member agencies in establishing agency- specific
contracts with King County. Our goal, as a working team, is to work in partnership to develop an
agreement that takes into account, as much as possible, the needs of all the MWPAAC agencies.
To this end, we have worked over the last few months to develop a set of guiding principles that
will serve to help us develop a framework agreement that is viewed as fair by all the regional
partners. We have attached these guiding principles and the list of negotiating team members for
your information. Our plan is to meet regularly over the course of the year, with a goal of reaching
conceptual agreement on provisions of this contract for each agency to consider.
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MWPAAC Agency Liaison or Agency Director
Date
Page 2
Our negotiating team also has a strong goal of providing avenues for MWPAAC agencies to give
input and to receive ongoing information on the status and progress of our work. We intend to give
periodic reports through the MWPAAC Sewage Disposal Agreements Subcommittee and you can
always provide input directly to either one of us, or to any of the other members of our negotiating
team. If an in- person meeting would be helpful to answer questions about this effort and to provide
us with details on the issues that are important to your agency, please contact one of us at your
earliest convenience.
We look forward to working with you and /or others in your agency on this effort.
Sincerely,
Bob Burns, Deputy Director
King County Department of Natural
Resources and Parks
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DRAFT GUIDING PRINCIPLES
Regional Wastewater Treatment Agreement Negotiations
April 18, 2014
PURPOSE: The purpose of these Guiding Principles is to lay a foundation
for a new, long -term regional wastewater treatment agreement and to
develop strong, highly constructive and long- lasting working partnerships
between King County and wastewater contract agencies. These Guiding
Principles work in concert and context together. They are not meant to
stand alone, nor does one principle take priority over another. We, the
regional partners will:
1. Develop contract language that is clear so that both the intent and
meaning are understood by all parties.
2. Develop a contract that supports a stronger, more transparent
partnership that fosters openness, timely review and participation in
decision making, and clarity of roles and processes.
3. Recognize that we strive to be good environmental stewards and
protect environmental quality and public health.
4. Be accountable to our ratepayers and be good financial stewards by
providing regional wastewater services, practices, operations,
financing, and capital investments in a cost - effective manner for
current and future ratepayers.
5. Strive to meet regulatory compliance.
6. Endeavor to meet level of service expectations of customers.
7. Recognize the constraints and obligations of one another's regulatory
framework, consent decrees, permits, and agency needs.
8. Understand that there is an interrelationship between our respective
systems and agencies and that all parties will work to optimize
operational effectiveness and investments through improved
coordination to reduce costs and better serve ratepayers.
9. Seek to understand each other's issues and work proactively and
collaboratively to maximize benefits and avoid or address adverse
impacts to the operation of our respective systems.
10.Provide for certainty and build in capacity to be flexible for future and
unforeseen needs and opportunities.
11.Develop a contract that is viewed as fair by all the regional partners.
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DRAFT — October 17, 2014
REGIONAL WASTEWATER TREATMENT NEGOTIATION TEAM
ISSUE
DISCUSSION STATUS REPORT
ssue List
Guiding Principles
Board Roles
Guiding Principles for Wastewater Negotiations
Draft Completed — See Exhibit 1
N/A
Governance
Draft Concepts In Progress — See Exhibit 2
N/A
Our Waters
Draft Completed — See Exhibit 3
In progress, see page 3
Reclaimed water
Draft Completed — See Exhibit 4
n progress
Innovation
Draft Completed — See Exhibit 5
To Do
Service expansion and contraction
Discussion in progress
To Do
What's regional /What's not
Discussion in progress
To Do
Capital projects
• Project implementation, oversight,
accountability
Discussion in progress, see. pages 4 -5
Discussion in progress
Rate setting
To do
To do
Regulatory requirements (how we comply)
To do
To do
Short - term /long -term financing
To do
To do
Legislative issues (state and federal) related to
what's best for region and for customers
To do
To do
Budget
To do
To do
Wheeling
To do
To do
Regional operational issues
To do
To do
Planning /policies
To do
To do
General contract conditions as a starting point
To do
To do
Asset management
To do
To do
I &I
To do
To do
1
DRAFT — October 17, 2014
REGIONAL WASTEWATER TREATMENT NEGOTIATION TEAM
ISSUE DISCUSSION STATUS REPORT
Draft Board Role Definitions: October 8, 2014
Determine outcome
Propose /endorse; voting
required, and
formal response
Provide guidance; no
formal response or voting
required
Provide opportunity for
feedback; feedback is
optional
Primary goal is to provide
information
2
DRAFT — October 17, 2014
REGIONAL WASTEWATER TREATMENT NEGOTIATION TEAM
ISSUE DISCUSSION STATUS REPORT
OUR WATERS
Our Waters (Culver Fund) — TITLE TBD
Interests
Decide
Recommend
Advise
Review
Inform
1.
Define purpose and initial criteria
2.
Amend criteria
3.
Develop and prioritize list of projects that meet
the criteria
4.
Decide on final projects from list provided by
Board
5.
Set up -to amount
6.
Surplus
3
DRAFT — October 17, 2014
REGIONAL WASTEWATER TREATMENT NEGOTIATION TEAM
ISSUE DISCUSSION STATUS REPORT
Capital Planning and Projects
a. Strategic Planning
Interests
Decide
Recommend
Advise
Review
Inform
1. Design and implement data collection
-
2. Analysis of data and planning assumptions
(objective, benefits, costs, timing, demand
projections, potential funding sources)
M=111111
Determine the alternatives for consideration
MIE
3. Prepare needs assessment
-
3.
Analysis of alternatives including funding, pricing
where applicable
a. For reclaimed water projects consideration of
impact on retail and wholesale water utilities,
determination of funding splits on projects, and
pricing where applicable
4. Develop plan alternatives
4.
Selection of preferred alternatives
5. Recommend preferred alternatives and prioritized
project list
EMIIMEIM
5.
6. Prepare plan report and financial plan
b. Capital projects —RWSP projects + other large, new
projects
Interests
Decide
Recommend
Advise
Review
Inform
1.
Identify what other "other large projects" go
through this level of review
2.
Determine the alternatives for consideration
3.
Analysis of alternatives including funding, pricing
where applicable
a. For reclaimed water projects consideration of
impact on retail and wholesale water utilities,
determination of funding splits on projects, and
pricing where applicable
4.
Selection of preferred alternatives
5.
Design of preferred alternative
6.
Independent value engineering...yes /no?
7.
Implementation (construction phase)
8.
Discussion and potential reconsideration based on
changes in cost and scope (change review board)
4
DRAFT — October 17, 2014
REGIONAL WASTEWATER TREATMENT NEGOTIATION TEAM
ISSUE DISCUSSION STATUS REPORT
c. Other Capital projects —+ small projects (and not
those above)
Interests
Decide
Recommend
Advise
Review
Inform
1.
Identify projects that go through subsequent steps
2.
Definition and analysis of alternatives
3.
Selection and design of preferred alternatives
4.
Independent value engineering
5.
Implementation
6.
Reconsideration based on cost overruns and change in
scope
5