PUD Sewer Developments

Jefferson County PUD Commissioners discussed changes to rates for current sewer and community septic customers and approved a Memorandum of Understanding (MOU) with Jefferson County. On June 22, 2021, County staff presented to the PUD’s Board of Commissioners the background and status of the Port Hadlock sewer project. During the presentation, the County asked the Commissioners if the PUD would provide operations and maintenance (O&M) service for the Port Hadlock sewer. PUD and County staff then worked up the the outline of the content of the MOU is as follows:

  • Brief history and status of the Port Hadlock sewer project
  • Funding history and current status
  • Timeline for the completion of Phase I
  • The need for the operations and maintenance (O&M) of the sewer system once completed the tools the PUD has to provide O&M services
  • The rules of engagement for investigating and providing a mutual agreement for how the O&M services will be provided
  • How the PUD will continue to be a part of the design phase of the Port Hadlock sewer project

According to Engineering Director Sam Harper, the next step will be working with County staff to investigate and start outlining the operation and maintenance services (including but not limited to billing, scope of services, payments, etc.). The PUD BOC approved a motion to authorize GM Kevin Streett to sign the MOU.

Sewer Rates

Throughout the past year, staff has been working with FCS Group to complete a wastewater rate study. Elements of this rate study included review of the current wastewater rates, a minimal capital improvement plan, the cost to maintain and run the wastewater utility, and begin to bring the wastewater rate up to a sustainable manner. At the July 20, 2021, Board of Commission meeting, the PUD and FCS staff reviewed the wastewater services provided to PUD customers and the proposed rates. Through the cost-of-service study and direction form the Board of Commission, the rates were divided into three groups: Standard rate, Beckett Point rate and Kala Point rate. Also requested was an analysis of the 3, 5, 7 and 10- year phase in of the three wastewater rates provided. Analysis/Findings: It was determined through the cost-of service analysis (COSA) that the PUD would need to increase wastewater rates, starting in 2021 to produce the revenue needed to meet the overall financial requirements, goals, and objectives of the utility. FCS has provided the analysis for the four requested phase-in scenarios for each of the three wastewater rate categories. Staff is recommending the 3-year phase-in option. During the meeting some members of the board preferred a five year phase in. Staff will bring an updated proposal to the next meeting.

Wasterwater Rates 210817 v2

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