Title
Approval of a Resolution Setting a Billing Rate for Wholesale Water Provided to the Thurston Public Utility District
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a Resolution setting a billing rate for wholesale water provided to the Thurston Public Utility District.
Report
Issue:
Whether to approve a Resolution setting a billing rate for wholesale water provided to the Thurston Public Utility District.
Staff Contact:
Eric Christensen, Water Resources Director, Public Works, (360) 570-3741
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
On July 21, 2021, the Public Utility District No. 1 of Thurston County (Thurston PUD) had a pump failure in one of their water supply wells and requested emergency water supply from the City of Olympia (City). Consistent with a Mutual Aid Agreement dated August 18, 2015, the City supplied the Thurston PUD with water through August 9, 2021 when the problem was remedied.
The Mutual Aid Agreement does not identify a rate of reimbursement, but states "the Requesting Agency shall be billed for the actual cost incurred (e.g., pumping, chemical and staffing costs, etc.) to provide water based on a methodology from the Responding Agency".
With no fixed rate or procedure for establishing a rate, staff proposes basing a wholesale rate for supplying water to the Thurston PUD on a September 2008 cost of service rate study prepared by FCS Group, the Utility's financial rate consultant. The study established the allocation of costs (wholesale rate) for supplying the Thurston PUD with water at $4,734 per month and $1.08 per one hundred cubic feet of water consumed.
Staff proposes inflating those rates consistent with the Seattle Consumer Price Index (CPI). Between September 2008 and July 2021, the Seattle CPI increased 30 percent. Inflated rates for July 2021 are $6,164.69 per month (pro-rated) and $1.41 per one hundred cubic feet ...
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