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HomeMy WebLinkAboutCity Council Committees - Public Works Committee - 08/01/2022 Public Works Committee • Monday, August 1, 2022 KEN T 4:00 PM WASHINGTON Chambers To listen to this meeting, call 1-888-475-4499 or 1-877-853-5257 and enter Meeting ID 82104180447 Chair Brenda Fincher Councilmember Satwinder Kaur Councilmember Marli Larimer ************************************************************** Item Description Action Speaker Time 1. Call to Order Chair 2. Roll Call Chair 3. Agenda Approval Chair 4. Business Chair A. Approval of Minutes Approval of July 18, 2022 YES Chair 01 MIN. Minutes B. USGS Joint Funding YES Mike Mactutis 10 MIN. Agreement for Fiscal Year 2023 - Authorize C. Info Only: King County NO Mike Mactutis 10 MIN. Solid Waste Rate Restructure D. Info Only: Grant NO David Paine 10 MIN. Opportunities 5. Adjournment Chair The public may submit written public comments that relate to a committee agenda item by emailing: cityclerk@kentwa.gov by 3:30 p.m. on the day of this committee meeting. After 3:30 p.m., written public comments may only be submitted in person by presenting them to the committee secretary at the public meeting. Written public comments that do not relate to a committee agenda item are not permitted. Written public comments are not read into the record. Public Works Committee CC PW Regular Meeting August 1, 2022 Unless otherwise noted, the Parks and Human Services Committee meets at 4 p.m. on the first and third Tuesday of each month in the Kent City Hall, Council Chambers East, 220 Fourth Avenue South, Kent, WA 98032. For additional information please contact Kim Komoto at 253-856-5728, or email Kkomoto@kentwa.gov. Any person requiring a disability accommodation should contact the City Clerk's Office at 253-856- 5725 in advance. For TDD relay service call Washington Telecommunications Relay Service at 7-1-1. Pending Approval Public Works Committee KENT CC PW Regular Meeting Wp ...... Minutes July 18, 2022 Date: July 18, 2022 Time: 4:00 p.m. Place: Chambers Members: Brenda Fincher, Committee Chair Satwinder Kaur, Councilmember Marli Larimer, Councilmember N Agenda: 1. Call to Order 4:00 p.m. o 7i 2. Roll Call 'o L Q Q Attendee Name _� Title Status Arrived a Brenda Fincher _� Committee Chair Present a Satwinder Kaur Councilmember Present o R Marli Larimer Councilmember Present I N N 3. Agenda Approval N C 4. Business A. Approval of Minutes o 1. Approval of Minutes dated June 6, 2022 w The minutes of the June 6, 2022 Public Works Committee meeting were approved without changes. MOTION: Move to approve the Minutes dated June 6, 2022 a a� RESULT: APPROVED [UNANIMOUS] MOVER: Marli Larimer, Councilmember Q SECONDER: Satwinder Kaur, Councilmember AYES: Fincher, Kaur, Larimer B. Speed Limit Changes - Adopt City Traffic Engineer, Erik Preston noted that speed limits are established in Resolution 1850 and that updating speed limits anywhere in the City requires Council approval by resolution. Preston went on to state that speed limits are proposed to be updated in several locations due to recent changes in roadway alignment and surrounding land-use. The proposal also updates speed limits due to the construction and extension of new streets, and/or renaming of streets. In order to better organize and standardize the list of speed limits, the list of streets has been reordered alphanumerically. ......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Page I of 3 Packet Pg. 3 Public Works Committee CC PW Regular Meeting July 18, 2022 Minutes Kent, Washington Preston explained the current speed limits, changes in roadway alignment and land-use context and changes involving annexation of Panther Lake. MOTION: I move to repeal Resolution No. 1850 and adopt a new Resolution updating the reasonable and safe maximum speed limits on certain designated streets, as posted by official traffic control devices, pursuant to Chapter 9.40 of the Kent City Code. RESULT: MOTION PASSES [UNANIMOUS] Next: 8/2/2022 5:00 PM MOVER: Satwinder Kaur, Councilmember r SECONDER: Marli Larimer, Councilmember AYES: Fincher, Kaur, Larimer 4- 0 C. Interlocal Agreement Amendment with the City of Covington — SE 272nd St (SR516), Jenkins Creek to 185th Place SE o a Water Systems Manager, Sean Bauer noted that an Interlocal Agreement was a executed in 2016 by the City of Kent and the City of Covington related to Covington's SE 272nd Street (SR 516) Improvements Project between Jenkins a Creek and 1851" Place SE ("Project"). The Kent Water Utility owns three � transmission mains located in SE 272nd Street within the City of Covington. N These transmission mains convey water from remote sources to customers N within Kent's service area and need to be relocated in order to reconstruct C the Jenkins Creek bridge. 4- Covington has executed a consultant contract with WSP USA, Inc. to manage construction of the project. The proposed amendment would authorize 3 reimbursement to Covington for construction management costs associated with the relocation of the Kent-owned water transmission main. These costs were anticipated and can be updated now that Covington has executed the contract with its consultant. a a� The amendment also extends the timeline of the agreement due to delays in a the Project and updates designated representatives to reflect staffing changes within the City of Kent. MOTION: I move to authorize the Mayor to sign a Third Amendment to the Interlocal Agreement between the Cities of Covington and Kent for Joint Public Works Operations for CIP 1127 SE 272nd St (SR516) Improvements between Jenkins Creek and 1851" Place SE, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Page 2 of 3 Packet Pg. 4 Public Works Committee CC PW Regular Meeting July 18, 2022 Minutes Kent, Washington RESULT: MOTION PASSES [UNANIMOUS] Next: 8/2/2022 5:00 PM MOVER: Marli Larimer, Councilmember SECONDER: Satwinder Kaur, Councilmember AYES: Fincher, Kaur, Larimer S. Adjournment 4:11 p.m. The meeting was adjourned at 4: 11 PM. N The public may submit written public comments that relate to a committee agenda item b emailin P Y P 9 Y 9� � cityclerk@kentwa.gov by 3:30 p.m. on the day of this committee meeting. After 3:30 p.m., written public comments may only be submitted in person by presenting them to the committee secretary at the public meeting. Written public comments that do not relate to a committee agenda item are not o permitted. Written public comments are not read into the record. 0 Unless otherwise noted, the Parks and Human Services Committee meets at 4 p.m. on the first and a third Tuesday of each month in the Kent City Hall, Council Chambers East, 220 Fourth Avenue South, Q Kent, WA 98032. a For additional information please contact Kim Komoto at 253-856-5728, or email c Kkomoto@kentwa.gov. N Any person requiring a disability accommodation should contact the City Clerk's Office at 253-856- c 5725 in advance. For TDD relay service call Washington Telecommunications Relay Service at 7-1-1. 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Page 3 of 3 Packet Pg. 5 4.B PUBLIC WORKS COMMITTEE Chad Bieren, P.E. 220 Fourth Avenue South KENT Kent, WA 98032 W A S H i N G T O N 253-856-5500 DATE: August 1, 2022 TO: Public Works Committee SUBJECT: USGS Joint Funding Agreement for Fiscal Year 2023 - Authorize MOTION: I move to authorize the Mayor to sign the Joint Funding Agreement for Water Resource Investigations between the City of Kent and the U.S. Geological Survey, in the amount of $121,078 subject to final terms and conditions acceptable to the Public Works Director and City Attorney. SUMMARY: This is an on-going partnership between the City of Kent and the U.S. Geological Survey (USGS) for stream data collection. For federal fiscal year 2023, The City of Kent will contribute $121,078 to the total annual program costs of $156,660 with the USGS and the City of Tukwila providing the remainder. These gages provide valuable information on stream and weather conditions, including water surface elevations, flow levels and amounts of precipitation. This information is used to calibrate stream flow models and increase the accuracy of City design of stormwater flood projection models. The internet link allows staff and the public to monitor stream flow levels from remote locations in real-time. The stream flow measured at the gage at Rock Creek and Kent-Kangley Road is included in the Clark Springs Habitat Conservation Plan as a criterium to determine the City's augmentation of flows in Rock Creek from October through December. This agreement will provide for operation, maintenance and data collection at seven gages. Two are located on Mill Creek, one on Springbrook Creek, one on Rock Creek, and three on the Green River. The gage information is available to the public real-time at <http://waterdata.usgs.gov/wa/nwis/current?type=flow> BUDGET IMPACT: Costs for this contract will be charged partially to the Water Utility (Rock Creek gage) and partially to the Stormwater Utility (Green River, Mill Creek and Springbrook gages). SUPPORTS STRATEGIC PLAN GOAL: Packet Pg. 6 4.B Evolving Infrastructure - Connecting people and places through strategic investments in physical and technological infrastructure. Thriving City - Creating safe neighborhoods, healthy people, vibrant commercial districts, and inviting parks and recreation. Sustainable Services - Providing quality services through responsible financial management, economic growth, and partnerships. Inclusive Community - Embracing our diversity and advancing equity through genuine community engagement. ATTACHMENTS: 1. USGS Agreement (PDF) Packet Pg. 7 4.B.a Form 9-1366 U.S. Department of the Interior Customer#:6000000723 (May 2018) U.S. Geological Survey Agreement#:23YGJFA09800 Joint Funding Agreement Project#:YGOOHIU 001 FOR TIN#:91-6001254 Water Resource Investigations Fixed Cost Agreement YES[X] NO[ ] THIS AGREEMENT is entered into as of the October 1,2022, by the U.S. GEOLOGICAL SURVEY,Washington Water Science Center, UNITED STATES DEPARTMENT OF THE INTERIOR, party of the first part, and the City of Kent party of the second part. 1.The parties hereto agree that subject to the availability of appropriations and in accordance with their respective authorities there shall be maintained in cooperation Water Resource Investigations(per attachment), herein called the program.The USGS legal authority is 43 USC 36C;43 USC 50, and 43 USC 50b. 2. The following amounts shall be contributed to cover all of the cost of the necessary field and analytical work directly related to this program. 2(b)include In-Kind-Services in the amount of$0.00 +, c (a) $31,552 by the party of the first part during the period E October 1,2022 to September 30, 2023 m L (b) $121,078 by the party of the second part during the period Q October 1,2022 to September 30, 2023 c =a (c) Contributions are provided by the party of the first part through other USGS regional or national programs, in the amount of: $0 Li r c Description of the USGS regional/national program: o U) 0 (d) Additional or reduced amounts by each party during the above period or succeeding periods as may be determined by mutual agreement and set forth in an exchange of letters between the parties. ti N (e) The performance period may be changed by mutual agreement and set forth in an exchange of letters M between the parties. r c 3.The costs of this program may be paid by either party in conformity with the laws and regulations respectively governing each party. a� L 4.The field and analytical work pertaining to this program shall be under the direction of or subject to periodic review Q by an authorized representative of the party of the first part. U) 0 5.The areas to be included in the program shall be determined by mutual agreement between the parties hereto or their authorized representatives.The methods employed in the field and office shall be those adopted by the party of the first part to insure the required standards of accuracy subject to modification by mutual agreement. a� E 6. During the course of this program, all field and analytical work of either party pertaining to this program shall be U open to the inspection of the other party, and if the work is not being carried on in a mutually satisfactory manner, r either party may terminate this agreement upon 60 days written notice to the other party. Q 7.The original records resulting from this program will be deposited in the office of origin of those records. Upon request, copies of the original records will be provided to the office of the other party. 8.The maps, records or reports resulting from this program shall be made available to the public as promptly as possible. The maps, records or reports normally will be published by the party of the first part. However, the party of the second part reserves the right to publish the results of this program, and if already published by the party of the first part shall, upon request, be furnished by the party of the first part, at cost, impressions suitable for purposes of reproduction similar to that for which the original copy was prepared.The maps, records or reports published by either party shall contain a statement of the cooperative relations between the parties. The Parties acknowledge that scientific information and data developed as a result of the Scope of Work(SOW)are subject to applicable USGS review, approval, and release requirements,which are available on the USGS Fundamental Science Practices website(https://www.usgs.gov/about/organization/science-support/science-quality-and-integrity/fundamental-science- practices). Packet Pg. 8 4.B.a Form 9-1366 U.S. Department of the Interior Customer#:6000000723 (May 2018) U.S. Geological Survey Agreement#:23YGJFA09800 Joint Funding Agreement Project#:YG00HIU 001 FOR TIN#:91-6001254 Water Resource Investigations 9. Billing for this agreement will be rendered quarterly. Invoices not paid within 60 days from the billing date will bear Interest, Penalties, and Administrative cost at the annual rate pursuant the Debt Collection Act of 1982, (codified at 31 U.S.C. § 3717)established by the U.S. Treasury. USGS Technical Point of Contact Customer Technical Point of Contact Name: Christopher Laveau Name: Mike Mactutis Supervisory Hydrologist Manager Environmental Engineering Address: 934 Broadway Suite 300 Address: 220 4th Ave S Tacoma,WA 98402 Kent,WA 98032 Telephone: (701)213-8694 Telephone: (253)856-5520 d Fax: Fax: E Email: cdlaveau@usgs.gov Email: mmactutis@kentwa.gov m Im Q Im c USGS Billing Point of Contact Customer Billing Point of Contact Name: Sharbra Gordon-scott Name: Mike Mactutis r Budget Analyst Manager Environmental Engineering Address: 934 Broadway Suite 300 Address: 220 4th Ave S Tacoma, WA 98402 Kent,WA 98032 to Telephone: (253)552-1698 Telephone: (253)856-5520 0 Fax: (253)552-1581 Fax: Email: sgordon-scott@usgs.gov Email: mmactutis@kentwa.gov N N M a+ U.S. Geological Survey United States City of Kent E Department of Interior L Q Signature Signatures Digitally signed by t� CYNTHIA CYNTHIABARTON BARTON 141 25-07'0.11 By ,a,7zs-oToo' Date: 07/11/2022 gy Date: � a� Name: Cynthia Barton, Ph.D, LHG, LG Name: E Title: Center Director Title: U r Q By Date: Name: Title: By Date: Name: Title: Packet Pg. 9 City of Kent Attachment for 23YGJFA09800 10/1/2022 to 9/30/2023 SURFACE WATER FUNDS SITE NUMBER&DESCRIPTION USGS COOP TOTAL 12113150 GREEN RIVER ABOVE S 277TH ST AT KENT,WA Full Range Streamflow Station $22,380 $22,380 12113310 GREEN RIVER BELOW MEEKER ST AT KENT,WA Full Range Streamflow Station $22,380 $22,380 12113344 GREEN RIVER AT 200TH STREET AT KENT,WA Full Range Streamflow Station $11,190 $11,190 12113346 SPRINGBROOK CREEK AT ORILLIA,WA Full Range Streamflow Station $7,888 $14,492 $22,380 12113347 MILL CREEK AT EARTHWORKS PARK AT KENT,WA Full Range Streamflow Station $7,888 $14,492 $22,380 12113349 MILL CREEK NEAR MOUTH AT ORILLIA,WA Full Range Streamflow Station $7,888 $14,492 $22,380 12118400 ROCK CREEK AT HIGHWAY 516 NEAR RAVENSDALE,WA Full Range Streamflow Station $7,888 $14,492 $22,380 Total:$31,552$1135918$145,470 CLIMATE FUNDS SITE NUMBER&DESCRIPTION USGS COOP TOTAL 12113346 SPRINGBROOK CREEK AT ORILLIA,WA Climate,Continuous $2,830 $2,830 12118400 ROCK CREEK AT HIGHWAY 516 NEAR RAVENSDALE,WA Precipitation,Continuous $4,330 $4,330 Total: $7,160 $7,160 GRAND TOTAL:$31,552$121,078$152,630 Packet Pg. 10 4.0 PUBLIC WORKS COMMITTEE Chad Bieren, P.E. 220 Fourth Avenue South KENT Kent, WA 98032 WASHINGTON 253-856-5500 DATE: August 1, 2022 TO: Public Works Committee SUBJECT: Info Only: King County Solid Waste Rate Restructure SUMMARY: The King County Solid Waste Division is changing its rate structure for the disposal of municipal solid waste, effective January 1, 2023. This affects the 37 cities in King County that utilize the Solid Waste Division for garbage disposal. Currently, most of the Solid Waste Division's revenue is derived from per-ton tipping fees for waste disposal at county facilities. As the county implements its aggressive waste reduction programs, per-ton revenues will be reduced significantly. As a result, the county has restructured its rate to include a Fixed Annual Charge and a reduced per-ton tipping fee. This restructure is intended to collect the same revenue as the status quo, but in a more stable way, and without shifting costs between cities. This requires cities and waste haulers to amend existing contracts to reflect the flat rate portion of the disposal fee that will be charged starting in January. King County provided $25,000 grants to three cities, including Kent, to have a consultant evaluate current and proposed rate structures. Each city holds a contract with one of the three major waste haulers in the region, Republic Services, Waste Management or Recology. The consultant, Epicenter, was selected based on their extensive experience with solid waste contracts. The consultant has been working with the City and Republic Services to develop and update the applicable calculations and contract language that define how the disposal component of customer bills will be adjusted. Negotiations for the contract amendment are currently underway and the amendment will be presented to the City Council later this summer. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services - Providing quality services through responsible financial management, economic growth, and partnerships. ATTACHMENTS: 1. Draft King County Solid Waste Rate Restructure Overview (PDF) Packet Pg. 11 4.C.a KingCountySolid Waste L Rate Restructure Impacts on N City Collection Contracts DRAFT CO O Y O $4MRG - O 00 N N G9 3 O s� - •�; O Cn C 7 O U Im c Prepared • Y M Epicentera May 2022 E t v Q Packet Pg. 12 4.C.a OVERVIEW In March 2022, King County Council approved a 2023 rate restructure for the disposal of municipal 3 r solid waste which affects the 37 cities in King County that utilize this system. King County Solid Waste L Division (KCSWD or "County") is changing from a single per-ton tipping fee to cover the disposal of garbage to rate structure that includes both a fixed annual charge for each city and a reduced per-ton as fee. As a result, cities must update their collection contracts with haulers to reflect the new approach for disposal funding and the process for annual adjustments. The County is providing grants to three King County cities, one city for each regional hauler, which can be used to hire a consultant to analyze data, negotiate with haulers, and produce contract amendment or memorandum of understanding documents for implementing the disposal change. The body of work for each city will be made o available as a template to other cities with the same hauler to expedite their discussion with their r hauler. 0 U c Y BACKGROUND 0 0 4- Currently, most of the KCSWD's revenue is derived from the per-ton fee for waste disposed of at County facilities. This current rate structure is variable, based on the number of tons, but funds both 00 N CN fixed and variable costs. Public utilities generally rely on both fixed and variable rate structures to fund services. The purpose of this rate structure ewe change is to provide stable funding for fixed costs regardless of total tonnage entering the system. The new rate structure aligns variable revenue with variable costs and still provides a pricing signal to customers for efficient use of utility services. as L As the County implements its aggressive waste reduction and diversion programs, disposal revenues ' will be reduced significantly. As a result, the County explored different ways to improve revenue r stability, establish a funding source for current and future waste reduction programs, and, to the extent possible, mitigate potential impacts to customers. The County selected a rate restructure option r which includes a fixed annual charge for each city and a reduced basic per-ton fee for waste delivered to the transfer stations by commercial contracted haulers. The rate structure for self-haulers, waste y delivered directly to the landfill, special wastes, yard waste, and appliances are not impacted. This rate restructure is intended to be revenue neutral for the County, and to collect the same total �0 revenues as the status quo. The County plans to set the fixed annual charge for each city so that the total of this fixed annual charge and reduced tipping fee are equivalent to the previous tipping fees for o each city's total annual tonnage. The County will adjust the fixed annual charge for each city based U a� upon their total tonnage contribution to the overall system for the prior year. Y Currently, in most King County cities, the contracted hauler charges customers based upon the o container size for carts, dumpsters, and temporary containers which is comprised of a service component and a disposal component established in the contract with the city. The service component adjusts by an inflation index. The disposal component increases proportionally each time the County ca King a County • • Waste Rate Restructure Page 1 Packet Pg. 13 4.C.a increases its per-ton tipping fee. In the current system, the hauler directly pays the County for the total actual tonnage of garbage disposed of from each city, regardless of specific service levels. a� L The diagrams below show the factors that affect the current annual rate adjustment and the factors that affect the new rate adjustment with the fixed annual fee. These factors will be discussed in additional detail in the next section. a� Current Rate Adjustment Factors. m r Disposal Component 0 Ton FeeN r Customer _ 0 U Service �, . - in • C Component Y >, c O 0 4- c New Rate Adjustment Factors with the Fixed Annual Fee. co N N M Ton Fee County- Disposal L . • '• '• Component 0 Annual � L � Changein L 3 Customer ' True-up ofFixed L Annual Fee fromN O Previous Service < % Change in /' r Component d N fC O N PROJECT PLAN 0 U The County has acknowledged that the rate restructure will require administrative work from each city to update the disposal component language and calculations in their hauler contract. KCSWD has Y provided funding to three cities in order to retain Epicenter Services to work through the details of implementing this fee restructure, in coordination with the three regional haulers. r c a� This work includes analyzing rate and tonnage data, negotiations with haulers, and writing contract E amendment/ memorandum of understanding (MOU) templates to implement the rate restructure, CU with minimum impacts to ratepayers or billing systems. a CountyKing • • Waste Rate Restructure A Packet Pg. 14 4.C.a The project plan will have multiple elements: data review, fixed annual fee distribution across the customer base, drop-box disposal mark-ups, city administrative fees, annual disposal adjustments and L reconciling over/under charges, reconciling funds at end of the contract, and contract language and example calculations. The consultant will work with city staff and the hauler during the process to ensure everyone is in agreement. The consultant will also assist city staff in preparing documents for the presentation to Council. as Data Review. �a Tonnage data for each city is currently provided to both the cities and the County sorted according 0 to#fie-solid waste haulers. The County has identified several anomalies in the tonnage data - particularly for smaller jurisdictions. The consultant will review data provided by each city's hauler but will ultimately use the County's tonnages for baseline calculations. v a� c The consultant will compile hauler data to develop an accurate representation of the garbage Y generated including customer counts for each service level, utilization of extra garbage services, total E tonnage and number of hauls for drop-box services, and temporary container services. o 4- c Currently there is an average weight associated with each container size. There are variations in these CO average container weights between cities, which means that total tonnages will not precisely match M the calculated tonnages from container weights and customer counts. While this was not a significant 3 factor in the past, these variations will need to be addressed in the new disposal component calculations. O m L Fixed Annual Fee Distribution. L r N The consultant will develop projections of how to allocate the fixed disposal amount across the customer base and work with each City to determine the best ways to implement the fixed annual fee ? across the customer based. Examples that will be explored include customer-based or container-based fees for different account types (carts, dumpsters, drop-boxes, etc.), volume-based fees based upon y the capacity of each container, weight-based fees for the average weight per container, and disposal component-based fees. 0 U) The customer-based or container-based fee distribution has variations upon how narrowly the account types are determined. Residential services range from a 10-gallon mini-can to multiple 96-gallon carts, v dumpsters range from 1-yrd container serviced once a week to an 8-yard container serviced five times per week, and drop-box service can vary from a loose 10-cubic yard drop-box to a 40-yard compacted Y drop-box. Flat fees per customer or container type will result in a larger rate increase on smaller containers and potentially a savings for larger containers within each line of business. o c Volume-based fees assume containers are consistently filled. While this isn't a significant issue for the E smaller container sizes, larger drop-box services could have more significant variations, particularly in those cities that have emphasized scheduled drop-box service (which implies drop-boxes are likely not a CountyKing • • Waste Rate Restructure Page 3 Packet Pg. 15 4.C.a always full when hauled) rather than the more traditional on-call service approach (where drop-boxes are nearly always at full capacity). T L Weight-based fees for carts and dumpsters are typically based on the hauler's data when the collection contract was finalized. These numbers have evolved over time and can vary between haulers and cities. It has become more common for haulers to list these container weights as directly proportionate to container volume rather than specifically for each service level. Drop-boxes contents are weighed for each haul, while carts and dumpsters are emptied into packer trucks, then the total waste from all customers combined are weighed at the transfer station. N �a Another option for distribution of the fixed annual fee across the rate base is to base it on the calculated average disposal component for each service level. Since the rate restructure is intended to (°n be revenue-neutral, the fixed fee would be set at the exact amount of the change in disposal fee due to the decrease in the per-ton tipping fee. Similar to the weight-based distribution of the annual fee, this c requires some estimates for average disposal of both compacted and uncompacted drop-box U�, containers. Y The consultant will develop models of the different allocations of the fixed service fee over the rate base to determine the financial impact of each. The consultant will work with City staff and the haulers 0 to select the best option. CO N N M Drop-box Disposal Mark-ups. 3 as As previously mentioned, drop-box containers differ from other dumpster and cart services since they are made up of a rate for hauling the container, then the actual tipping fee applies to the weight of 0 garbage dumped at the transfer station. Some city contracts allow the hauler to mark-up disposal from ;v drop-boxes which keeps the hauling rate lower and ensures the target revenue requirement by the hauler. This mark-up generally ranges from the state excise tax rate, 1.75%, to 12%, depending upon w the city. This will impact cities differently depending upon the mix of households to commercial businesses with dumpster service to commercial businesses with drop-boxes. Rate structures often factor in additional mark-up revenue to reduce other service rates, so any reduction in total mark-up revenue must be accounted for. The consultant will work with the cities and haulers to determine how y to allocate the fixed annual change to drop-box customers and account for the disposal markup. 0 U) Invoice Itemization. Another element to discuss for the disposal component change is where the fixed annual fee appears v on invoices and its visibility to customers. With the exception of drop-box service, customer invoices c list the total service level rate which is inclusive of the disposal component, service Y #component, and city administrative fee. All other city, county, and state taxes and fees a appear itemized on customer invoices and apply to the gross receipts. There are financial implications, including the effect on the city utility tax and city administrative fee if this fee was listed out with the other taxes and fees "below the line" rather than as part of the rate. Extensive customer education E from both city staff and hauler would need to be considered if the fixed annual fee appeared "above a the line," but itemized on customer invoices. a CountyKing • • Waste Rate Restructure Page 4 Packet Pg. 16 4.C.a County Annual Disposal Adjustments. i r As part of the rate restructure, the County will adjust the fixed annual fee annually and basic per-ton L fee. The County will calculate and notify each city of their fixed annual fee in late summer each year. This fee, along with any adjustments to the basic per-ton fee, will be used to adjust the disposal as component on the customer rates. Most cities have their annual CPI-related adjustment on the service component s effective January 1, while other cities adjust rates later in the year—this may require a; multiple rate increases each year. 0 City Annual Disposal Adjustments. r c The amount of the fixed annual fee for each service level is established annually based upon the v current customer count at each service level. As the customer base changes during the year, the hauler may collect more or less funding toward the fixed annual fee. At the end of the year, this variance must Y be addressed. One option is for the city to collect reserve funds to cover any shortfalls or overpayments, similar to an escrow account. Another option would be to have the hauler roll any o overages or shortfalls into the upcoming fixed annual fee and apply to rates for the following year. c 00 N N Contract Expiration Reconciliation. 3 Another issue to address is the fixed annual fee at the end of the contract between the city and hauler. The fixed annual fee is assessed on an annual basis and adjusted annually, effective January 1. Most > city contracts do not end on December 31, but instead end on a variety of dates throughout the year L (in part to avoid transitions between contractors during winter weather). A simple proration of the r fixed annual fee may not adequately account for the annual true-up process. Another issue that will be r addressed via the MOU/amendment is how financial obligations survive the contract termination until the billings are complete. r a� Hauler Approval. The consultant will work with the hauler and their attorneys to ensure fixed annual fee allocations, o new contract language, and calculations are all acceptable. These approved documents will be used a U) templates available to other King County cities that the hauler services. There are many variables for 3 both the city and the hauler to consider, so this review and negotiation period may require v considerable time. Y c� L Contract Language & Example Calculations. c Once the above issues are resolved, the consultant will develop contract amendment or memorandum E of understanding (MOU) language for the solid waste collection contract and provide example calculations for future adjustments. This language will be written with clarity so there are no future a CountyKing • • Waste Rate Restructure Page 5 Packet Pg. 17 4.C.a misunderstandings between the city and the hauler for calculations. The example calculations will address changes due to the fixed annual fee, basic per-ton fee, CPI-related service-component, as well as any city administrative fee adjustment. L r U L TIMELINE May 2022 City Council approval of receiving King County grant Purchasing Contract agreement between city and Epicenter Services June 2022 Data review and fixed annual fee distribution modeling c Address drop box markups, city administrative fee, annual reconciliation, etc. r c July 2022 Hauler negotiation c Prepare contract language and example calculations U�, c August 2022 Review and approval by City Council and hauler Y All work shall be completely by August 31, 2022 O 4- c DELIVERABLES CN N N M The consultant will provide rate analysis and recommendations of allocation of the fixed annual fee 3 over the customer base for city approval. The consultant will research issues mentioned in the project plan and provide options and recommendations to city staff for approval. The consultant will provide 0 as support to the three cities negotiating fixed annual fee allocations, new contract language, and r calculations with the hauler. The consultant will provide complete disposal component contract i r amendment language and calculations for each of the three cities to appFeva42pprove. Lastly, the consultant will provide assistance with developing a generic staff report for Council approval of MOU r or amendment if necessary. a� N R O U) C 7 O V C Y c� L E V King County Solid Waste Q Rate Restructure • Packet Pg. 18 4.D PUBLIC WORKS COMMITTEE Chad Bieren, P.E. 220 Fourth Avenue South KENT Kent, WA 98032 WASHINGTON 253-856-5500 DATE: August 1, 2022 TO: Public Works Committee SUBJECT: Info Only: Grant Opportunities SUMMARY: Each even-numbered year presents a busy grants application cycle for the City and greater region. Four transportation grant opportunities remain on schedule in 2022: 1) 2022 Transportation Improvement Board; 2) 2022 WSDOT Section 130 Railroad Crossing; 3) 2022 USDOT Safe Streets For All Action Plan; and 4) 2022 USDOT Reconnecting Communities Pilot Program. The Transportation Improvement Board (TIB) grants are a semi-annual program to fund street projects. Their criteria emphasis for 2022 includes a focus on non-auto project linkages, such as between schools and parks. Historically few projects over $500,000 have been funded. Based on the criteria, the design and construction of pedestrian and bicycle improvements on SE 248th St, with a Rapid Reflective Flashing Beacon (RRFB) crossing is proposed. WSDOT Section 130 grants are a semi-annual program to reduce death and serious injuries at public railroad crossings. The City is actively pursuing a Quiet Zone rail designation now, and this opportunity may provide funding for one of the requirements for safety gate treatments needed to qualify at one of the crossing locations, Willis St (SR 516) at the UP crossing. The 2021 Bipartisan Infrastructure Law or BIL, previously referred to as the Infrastructure Investment and Jobs Act, included several new performance-based funding opportunities; grant programs that an opportunity to compete for funds where certain conditions are met or to achieve a policy goal. Two new programs are available to cities including the Safe Streets For All and Reconnecting Communities Pilot programs. Safe Streets for All (SS4A) is a significant new USDOT funding program to support planning, infrastructure, and operational incentives to prevent deaths and serious injuries involving all roadway users. Similar to the annual Local Road Safety Plan (LRSP) required by WSDOT to apply for funding, an approved SS4A Action Plan is required to qualify for USDOT program funds. As noted in the Kent LRSP, most roadway deaths and serious injuries are preventable, with proven methods to identify and improve safety. The LRSP takes steps to do so but needs enhancement to qualify for the larger USDOT program focused on similar outcomes. A successful SS4A planning application this year would allow the City to grow this program to Packet Pg. 19 4.D qualify and host a larger conversation on how - through education, involvement, and crash data analysis - to affect larger trends locally. Similar to the Kent Transportation Master Plan (TMP), the effort will include an equity lens, presentation of options, and a prioritization of solutions. Preferred solutions would then, with an approved SS4A Action Plan, be eligible for SS4A-implementation funds in 2023 and thereafter. And like the LRSP and TMP, the effort would also be leveraged and strengthen the recurring grant project calls by WSDOT, PSRC, TIB, and others. Lastly, the Reconnecting Communities Pilot (RCP) program is a new USDOT grant, with a policy focus on retrofitting highways and roads to improve community connectivity. The importance and advancement of crossing locations citywide was a noted priority from Kent TMP outreach, resulting in projects then pursued via the Transportation Improvement Program, regional partnerships, and economic development. Staff has reviewed the 2022 RCP criteria and believes this would be an opportunity to advance one or more Kent TMP projects along busy thoroughfares forecast to grow, including a planning study(s) for Central Avenue, East Canyon Drive, and/or Benson Drive (104t"/108t" Avenue) improvements. Like other grant funding opportunities, advancing plan concepts through project development allows the City to be more competitive in leveraging implementation funding. SUPPORTS STRATEGIC PLAN GOAL: Evolving Infrastructure - Connecting people and places through strategic investments in physical and technological infrastructure. Thriving City - Creating safe neighborhoods, healthy people, vibrant commercial districts, and inviting parks and recreation. Sustainable Services - Providing quality services through responsible financial management, economic growth, and partnerships. Inclusive Community - Embracing our diversity and advancing equity through genuine community engagement. Packet Pg. 20