Title
Utilities Chapter of the City of Olympia Comprehensive Plan Update
Recommended Action
Discuss and develop draft Utilities Chapter goals and policies for further review and recommendation by the full Utility Advisory Committee (UAC).
Report
Issue:
Whether to accept or revise staff’s recommended changes to the Utilities Chapter Wastewater Utility goals and policies and general financial goals and policies for further review and recommendation by the full UAC.
Staff Contact:
Susan Clark, Engineering and Planning Supervisor, Public Works Water Resources and Drinking Water Utility, 360.753.8321
Ron Jones, Senior Planner, Public Works Waste Resources, 360.753.8509
Presenters:
Susan Clark, Engineering and Planning Supervisor
David Dunn, Wastewater Engineer
Ron Jones, Senior Planner
Gary Franks, Waste ReSources Director
Jesse Barham, Water Resources Director
Mike Vessey, Drinking Water Director
Lindsay Walker, Public Works Administrative Specialist
Background and Analysis:
Comprehensive Plan Periodic Update - General
Under the Washington State Growth Management Act, Olympia is required to update its Comprehensive Plan every 10 years. Olympia’s will look out to year 2045 to show, among other things, how the City will accommodate new population and employment growth. It is also an opportunity to make sure the Comprehensive Plan and the City’s Development Regulations meet current state requirements that may have changed since the last major update of the Plan. This update process has been named “Olympia 2045”.
Based on population projections developed by the Washington State Department of Commerce and allocated to Olympia through a regional process overseen by the Thurston Regional Planning Council (TRPC), Olympia and its urban growth area (UGA) is expected to grow by almost 21,000 new residents by 2045. To accommodate this growth,13,500 new housing units are expected. As service providers, all four city-owned utilities must be prepared to serve this expected growth.
The Comprehensive Plan contains the following chapters, in addition to the Utilities Chapter:
• Community Values & Vision
• Public Participation & Partners
• Natural Environment
• Land Use & Urban Design
• Housing
• Transportation
• Parks, Arts and Recreation
• Economy
• Public Safety
• Capital Facilities
• Climate Change & Resiliency Sub-element - New 2023 Requirement
Utilities Chapter- General Background
The Utilities Chapter of the City’s Comprehensive Plan covers both city-owned and privately run utilities. The UAC’s involvement is proposed to focus on city-owned utilities.
City-owned and operated utilities provide the community with essential services and can help shape Olympia’s future in meaningful ways. We take a coordinated, cost-effective approach to managing our utilities and fully consider the economic, social and environmental implications of all our actions. City-owned utilities include Drinking Water, Wastewater, Storm and Surface Water, and Waste ReSources (garbage and recycling).
Each City-owned utility has developed, and periodically updates, a utility focused management plan. Each plan provides specific strategic direction necessary to implement the growth directives contained in the Comprehensive Plan. Because the utility plans are updated more frequently, they are more relevant to current trends, and will, therefore, form the basis for the update of the Utilities Chapter’s goals and policies.
The Washington State Growth Management Act (RWC 36.70A) requires the following information to be included in utilities chapters of comprehensive plans:
• The general location, proposed location and capacity of all existing and proposed utilities.
• Utilities include, but are not limited to: sanitary sewer systems, water lines, fire suppression, electrical lines, telecommunication lines, and natural gas lines.
Utilities Chapter General Goals and Policies Applicable to the Wastewater Utility
The Utilities Chapter has four general goals, and associated policies, which establish the general strategic direction appropriate for all four City-owned utilities. The general goals and policies as they currently exist cover subjects relevant to the Wastewater Utility including:
• Coordinating utility plans and land use plans both internally and across jurisdictions.
• Providing reliable service at the lowest reasonable cost.
• Managing the utility efficiently and effectively.
Additionally, for the August 3, 2023 Comprehensive Plan Update meeting, Public Works staff recommended revisions to the Utilities Chapter general goals and policies to address the following subjects, including those relevant to the Wastewater Utility:
• Ensuring master plans consider up-to-date growth and development projections during the update process, including those that may include projections of growth due to climate migration, and ensuring master plans consider environmental constraints, including risks from climate change, during update cycles.
• Acknowledging the utilities’ new Helping Neighbor’s Charitable Fund Program and suggesting it should be considered for expansion to help meet the City’s social equity goals. Note: At its August 3, 2023 meeting, the UAC requested a revision to staff’s recommended revised policy PU2.3. This revision is included in the November 2, 2023, general financial goals and policies staff proposal attached to this staff report.
• Ensuring master plans and utility rates consider the City’s climate and social equity goals.
• Pursuing grant fund opportunities to enhance utility services.
• Clarifying that a portion of utility revenue each year should be provided for outreach and engagement programs that are inclusive, accessible and representative of the entire community.
Wastewater Utility Goals and Policies
The Utilities Chapter currently has two Wastewater Utility specific goals and associated policies covering:
• How to extend the wastewater system.
• Prohibiting new septic and STEP systems except where allowed by the Olympia Municipal Code.
• Separating the combined wastewater and stormwater systems when feasible.
Because the Utilities Chapter’s existing general goals and policies, the recommended revisions to the general goals and policies and the existing Wastewater Utility specific goals and policies cover a far-reaching range of topics as detailed above, the recommended revisions to the Wastewater Utility goals and policies are limited to:
• Taking equity into account in the design and operation of the wastewater system.
• Adding policy language to address new Budd Inlet TMDL (Total Maximum Daily Load) requirements.
• Removing redundant language.
City of Olympia Financial Policies
During the August 3, 2023 Comprehensive Plan Update meeting, the UAC discussed the Utilities Chapter’s general goals and policies, including Goal GU2 which states: Reliable utility service is provided at the lowest reasonable cost, consistent with the City’s aims of environmental stewardship, social equity, economic development and the protection of public health.
As a component of the discussion, the UAC expressed interest in including policy language in the Utilities Chapter that addresses the UAC’s concern that an increase to the City’s utility tax impacts the affordability of rates and the utilities’ ability to raise the revenue required to accomplish utility goals.
The staff recommended revisions to the Utility Chapter’s general goals and policies to address the UAC’s August 3, 2023 discussion include:
• Adding new introductory language to explain how Olympia’s utilities fund expenses.
• A proposed rewrite of policy PU2.3 to address the August 3, 2023, UAC meeting discussion.
• A new policy PU2.12 to address the August 3, 2023, UAC meeting discussion regarding concerns with increases to the municipal utility tax impacting utilities’ goals.
• A new policy PU2.13 to address the importance of long-range financial planning to guide rate, capital projects and operational decisions.
Climate Analysis:
All four City-owned utilities currently contribute to the City’s overall climate goals through current strategies, actions and programs including, but not limited to: waste prevention messaging; supporting legislative initiatives and improving recycling capture at multi-family and mixed-use buildings; green power purchase; water conservation goals and messaging; inflow and infiltration reduction; and, property purchase and habitat preservation programs.
As we continue to develop the Utilities Chapter’s goals, policies and strategic direction, how its goals and policies can support reducing greenhouse gas emissions and preparing for the impacts of climate change will be analyzed.
Equity Analysis:
Goals, policies and the strategic direction established through the Comprehensive Plan for City-owned utilities have the potential to both benefit and burden people who live, work, visit, pay utility bills, develop property in Olympia or become utility customers/rate payers in the future. The mission of all three water-related utilities (Wastewater, Storm and Surface Water and Drinking water) includes prioritizing public and environmental health on behalf of all customers, regardless of who "pays the bill". Additionally, all three water-related utilities collect and use data on the condition of each utility's infrastructure to make maintenance, renewal and replacement decisions. Condition data helps each utility to make equitable decisions since it focuses work toward infrastructure most in need of maintenance, renewal or replacement. Further, all four City-owned utilities implement utility bill assistance programs for low-income disabled or low-income over age 62. Finally, all four City-owned utilities are in the business of providing high-quality and cost-effective service to all existing and future customers located within each utility's respective service area consistent with the growth and development objectives of the City's Comprehensive Plan. However, regardless of current practices, all four City-owned utilities would benefit from continuing to use information from the in-house Stormwater Equity Index to focus efforts and resources to ensure infrastructure and program service decisions are made which reduce service disparities and support equitable outcomes.
As we continue to develop the Utilities Chapter's goals, policies and strategic direction, all potential benefits, burdens and disparities will be further assessed. Additionally, the Comprehensive Plan update process includes a public engagement component to promote transparency and provide representation across Olympia communities throughout the process. This will be supported by the in-house tool, the Stormwater Equity Index, which provides economic, livability, educations, walkability, and environmental information to identify Olympia's overburdened and vulnerable communities.
Neighborhood/Community Interests (if known):
City-owned utilities provide essential public health services to residential and commercial customers in our service area. A Community Values and Vision survey for the Olympia 2045 project was available throughout the month of May. As the Olympia 2045 project continues, additional opportunities for community input and involvement will occur.
Options:
Accept or provide revisions to staff’s recommended changes to the Utilities Chapter’s Wastewater goals and policies and value and vision statements.
Financial Impact:
None at this time. However, utility rates impact our community by the utility rates that customers pay.
Attachments:
• Staff proposed Utilities Chapter Wastewater Utility Goals and Policies Update
• Staff proposed General Financial Goals and Policies Update
• UAC October 5, 2023, Waste Resources Goals and Policies Summary Document
• UAC October 5, 2023, Utilities Chapter Vision and Values Summary Document