Marine Stormwater Utility
Rates for 2018
Commission Review
November 14, 2017

1

Overview
Goals: Assess and rehabilitate Stormwater
Infrastructure to protect Puget Sound
Current rates and revenue
Budget, forecast and rates
2018 Proposed Rate structure
Introduction and agenda
2

Highlights
Marine Stormwater Utility formed in 2014 to protect water quality of
the Puget Sound
Won AAPA Comprehensive Environmental Management Award
Tenant fees about 15% lower compared to City's Utility fees 
Will meet 2017 goal on system assessment to obtain baseline
conditions
A dozen urgent repairs completed preventing safety & operational hazard
Investments in the stormwater system
Green Stormwater Infrastructure such as oyster shell barrels & rain garden
Installation of tide gates
Tenants expressed positive feedback on our efforts
Highlights of work accomplished
3

Utility Goals


Century Agenda Goals for Maritime Stormwater
4

Assessment Process

78 total miles of stormwater
pipes to be assessed
Utility crew (MM staff) cleans
and videos pipes using Utility
assets
Assessment data available via
GIS maps
Equipment and labor to obtain data
5

Assessment Goals & Progress
100%
80%
60%
Goal
40%                                  Progress
20%
0%
2017         2018         2019
Progress ahead of schedule
6

Rehabilitation Goals & Progress
35%
30%
25%
20%
Goal
15%
Progress
10%
5%
0%
2017    2018    2019    2020    2021
Century Agenda goal of 75% rehabilitation by 2035
7

Current Rates
City Rates                Port Rates
Stormwater Rate Category                    2016       2017        2016       2017 
Undeveloped (0 - 15% Impervious)
Regular Impact                          $31.24       $34.76      $29.17       $30.34
Low Impact                           $18.57      $20.67      $17.08      $17.76
Light (16 - 35% Impervious)
Regular Impact                          $48.52       $53.54      $45.11       $46.91
Low Impact                           $38.31      $42.26      $35.48      $36.90
Medium (36  65% Impervious)
Regular Impact                          $70.67       $77.60      $65.52       $68.14
Low Impact                           $57.21      $62.86      $52.71      $54.81
Heavy (66  85% Impervious)                   $93.56      $102.48      $87.91       $91.42
Very Heavy (86  100% Impervious)               $112.38      $122.94      $103.98      $108.14
2015-2017 rates approved by Commission in 2014.
8

Revenue Summary
Revenue 
$1,036,858 
Port
$2,391,117                                  Port Tenants
$499,108          Alliance
Alliance Tenants
$1,035,212 
Total revenue breakdown for all facilities
9

Revenue Example  T106 
Revenue 
$13,220 
Port

$48,723                  Port
tenants
$70,341 
Alliance
tenants
Alliance  0 sq ft.      Alliance tenants  
450,557 sq ft.
Port  122,088 sq                            T106 total area of 1,223,264 sq ft.
ft.                    Port tenants  
T106 total fee of $132,284
650,619 sq ft.
Revenue breakdown for a facility
10

Capital Budget Summary
$'s in 000's                                  2018    2019    2020    2021    2022   2018-2022
Commission Authorized/Underway           -     -     -     -      -      - 
Pending 2016/2017 Authorization            1,550   1,500   1,942    500     500    5,992
T18 Stormwater outfalls renew/replace            1,050    1,000    1,442     -        -      3,492
Portwide Stormwater Sys Renewal              500    500    500    500     500    2,500
-
Pending Future Authorization               -      -     500   1,500    1,500   3,500
SWU Contingency                      -      -     500    1,500    1,500    3,500
-
Small Capital Projects                    150    150    150    150     150     750
1,700   1,650   2,592   2,150    2,150   10,242

System Improvements start in 2018
11

Maintenance Budget Summary
2017 Assessments of    2018 Assessments of
30% - $1.8 million      45% - $2.7 million
Terminal 18            Terminal 30
Terminal 46
Terminal 5
Terminal 25
Fishermen's Terminal 
Terminal 5 (completion)
Terminal 30, 46 and 91
Terminal 115
for specific needs
Terminal 104
50% more assessment in 2018 than 2017
12

10-year Forecast


Proposed rate structure for 10-year cost recovery
13

10-year Forecast Key Points
Recommend 7.75% rate increase in 2018
Placeholder of 7% annually between 2019 to 2027 for positive
cash balance
Different alternatives considered various capital spending levels
while holding expenses steady
High short-term investments on maintenance and capital may
lead to significant annual deficit and negative cash balance by
2020 without 7.75%
Recover costs to prevent negative funds
Build a financially prudent model for long-term operations
Cost recovery based on 10-year forecast - no profit generated
14

2018 Proposed Rates
Stormwater Rate Category                 City 2018           Port 2018
Undeveloped (0 - 15% Impervious)
Regular Impact                        $37.60             $32.69
Low Impact                         $22.37            $19.14
Light (16 - 35% Impervious)
Regular Impact                        $57.44             $50.55
Low Impact                         $45.33            $39.76
Medium (36  65% Impervious)
Regular Impact                        $82.86             $73.42
Low Impact                         $67.18            $59.06
Heavy (66  85% Impervious)                 $109.16             $98.51
Very Heavy (86  100% Impervious)             $130.77            $116.52
Rate proposal based on Steering Committee recommendation
15

Rate Trends
$140.00
"Very Heavy" Rate per   $130.00
$120.00
ft. 1000 sq
$110.00                                      City
Port
$100.00
$90.00
$80.00
2014    2015    2016    2017    2018
Rate comparison between City and Port
16

Tenant Communication


Bill insert to be sent out with December bills
17