SALLAL WATER ASSOCIATIONWATER SYSTEM PLAN

PRESENTATION 5/5/20

• CURRENT SYSTEM

• POPULATION PLANNING PROJECTIONS - ERU

• NORTH BEND ECONOMIC DEVELOPMENT

• NORTH BEND WASTEWATER FACILITIES PLAN

• PUGET SOUND REGIONAL COUNCIL

• WATER QUALITY

• HYDRAULICS – LIMITS – WATER RIGHTS, SYSTEM

• WATER USE EFFICIENCY

• OPERATION & MAINTENANCE

• CAPITAL IMPROVEMENT PLAN

• FINANCES

1DRAFT

SERVICE AREA TOPOGRAPHY

2

RETAIL SERVICE AREA

DRAFT

CURRENT SYSTEM• ADJACENT PURVEYORS – WILDERNESS RIM, RIVERBEND, NB.

• A FEW GRP A – NOR WEST, TRUCKTOWN, GOLF COURSE

• MANY GRP B

• TOPOGRAPHIC RELIEF IS SIGNIFICANT

• 1,664 CONNECTIONS (END OF 2018)

• 2 OF THE CONNECTIONS ARE MASTER METERS FOR WILDERNESS RIM SERVING 623

HOMES AND 3 LOW USE COMMERCIAL CONNECTIONS (PARK, FIRE & COMM CTR)

3DRAFT

CURRENT SYSTEM

SOURCES RATTLESNAKE WELLS

EDGEWICK WELL

STORAGE RATTLESNAKE & UPLANDS

EDGEWICK & MIDDLEFORK

RIVERPOINT TERRELL

BOOSTER STATIONS TANNER LOWER MT. SI RIVERPOINT

PRVS 24 STATIONS

WATER MAIN 56 MILES – ABOUT ½ IS 8-INCH

4DRAFT

MAJOR FACILITIES

5DRAFT

POLICIES

6

• WHOLESALE/WHEELING – CONSIDER ON CASE BY CASE BASIS• ANNEXATIONS – NOT BEING CONSIDERED• DESIGN STANDARDS – STANDARDS HAVE BEEN ADOPTED BY SALLAL• LATECOMER AGREEMENTS – WILL BE CONSIDERED CASE-BY-CASE BASIS• CROSS CONNECTION – ADOPTED POLICY 1998• GROWTH PAYS FOR GROWTH• TIMELY & REASONABLE

DRAFT

POLICIES

7

• TIMELY –• WRITTEN RESPONSE TO CWA APPLICATION WITHIN 14 DAYS.

• ISSUE OR DENY AN APPLICATION FOR CWA IN 120 DAYS.

• REASONABLE –

• CONSISTENT WITH ASSOCIATION RULES, AS AMENDED IN 2019.

• INFRASTRUCTURE EXTENSION (RULE 16)

• CITY/COUNTY REVIEW OF PROPOSAL FOR LAND USE COMPLIANCE (RULE 40)

• SUFFICIENT WATER AVAILABLE (RULE 40)

PLANNING DATA

• POPULATION

• CURRENT

• FUTURE

• GROWTH RATE

• WATER DEMAND

• EQUIVALENT RESIDENTIAL UNITS (ERU)

8DRAFT

HISTORICAL POPULATION

Year Sallal Service Connections

Wilderness Rim Service

Connections

Population served

Sallal Only Total

2010 1,490 625 4,165 5,688

2011 1,498 625 4,213 5,736

2012 1,519 625 4,280 5,803

2013 1,563 625 4,389 5,912

2014 1,575 625 4,571 6,094

2015 1,587 625 4,620 6,143

2016 1,601 626 4,716 6,241

2017 1,645 626 4,743 6,268

2018 1,664 626 4,830 6,356

9

Population - Data from Office of Financial Management – Small Area Estimates Program

DRAFT

PRODUCTIONANNUAL WATER RIGHT LIMIT 696 AC-FT/YR

YearTotal Production

(gal)Average Daily

Production (gal)AC-FT/YR MG/YR

2010 164,823,438 451,571 505.9 164.8

2011 143,179,266 392,272 439.4 143.2

2012 156,065,689 426,409 479.0 156.1

2013 166,326,611 455,689 510.5 166.3

2014 158,981,685 435,566 487.9 159.0

2015 172,445,648 472,454 529.3 172.5

2016 160,957,595 439,775 494.0 161.0

2017 173,300,800 474,797 531.9 173.3

2018 179,691,400 492,305 551.5 179.7

10DRAFT

DISTRIBUTION SYSTEM LEAKAGE

YEARDSL

(GAL)PERCENT

UNMETERED3-YEAR ROLLING

AVERAGE

2012 3,317,963 2.13% 6.35%

2013 8,733,581 5.25% 5.43%

2014 7,102,006 4.47% 3.95%

2015 4,719,730 2.74% 4.15%

2016 11,748,507 7.30% 4.83%

2017 14,674,862 8.47% 6.17%

2018 15,808,003 8.80% 8.19%

11DRAFT

Wilderness Rim is excluded from the values above. The amount sold to WR is subtracted from both the amount produced and the amount sold/authorized, then DSL is calculated.

MAX DAY PEAKING FACTORDate

MDD (MGD)

MDD (GPM)

ADD (MGD)

Peak Factor

8/3/2009 1.36 946 0.50 2.727/23/2010 1.01 698 0.45 2.238/19/2011 0.99 685 0.39 2.538/16/2012 0.93 644 0.43 2.177/6/2013 1.36 945 0.46 2.987/4/2014 1.24 861 0.44 2.848/4/2015 1.45 1,006 0.47 3.078/15/2016 1.09 757 0.44 2.478/2/2017 1.05 729 0.46 2.267/29/2018 1.08 749 0.43 2.49

Average 2.58Median 2.51

3rd Quartile 2.81Ave & Std Dev 2.89

12DRAFT

EQUIVALENT RESIDENTIAL UNITS

YearSallal Residential

Consumption (gal)

Residential Connections

Sallal Consumption/

ERU

WR Consumption

All Res ERU Average

2010 98,878,771 1,441 188 40,759,492

2011 84,736,626 1,448 160 34,842,139

2012 102,932,347 1,468 192 38,106,636 184

2013 104,800,373 1,510 190 41,059,066 187

2014 106,893,583 1,522 192 36,603,530 183

2015 119,223,742 1,534 213 36,439,964 197

2016 106,682,311 1,547 188 32,604,333 175

2017 118,230,900 1,591 204 27,030,745 179

2018 117,984,710 1,608 201 29,145,506 180

AVERAGE (2012-2018) 198 184

13DRAFT

TOTAL NUMBER OF ERU

14

RESIDENTIAL WILDERNESS RIM

COMMERCIAL IRRIGATION OTHER 1 DSL TOTAL

2010 1,441 625 107 68 193 2,433

2011 1,448 625 121 64 218 2,476

2012 1,468 625 105 62 47 2,307

2013 1,510 625 107 62 126 2,430

2014 1,522 625 97 22 101 2,367

2015 1,534 625 91 64 61 2,375

2016 1,547 626 111 33 171 2,487

2017 1,591 626 94 53 33 198 2,594

2018 1,608 626 81 73 75 216 2,678

DRAFT

1 – Other – predominately flushing it was included in DSL prior to 2017

ERUS AND PRODUCTION

15

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

2,800

140

150

160

170

180

190

200

210

220

2012 2013 2014 2015 2016 2017 2018

TOTA

L ER

U

Prod

uctio

n (M

G/Y

R)

Annual Production MG Total ERU

Water Right = 696 ac-ft/yr =226.8 MG/YR

PROJECTED NUMBER OF ERU

Year Sallal ERU 1 WR ERU DSL ERU 2 Total ERU

2018 1,836 626 215 2,678

2019 1,947 626 195 2,767

2020 2,032 626 203 2,861

2021 2,093 626 188 2,908

2022 2,133 626 171 2,929

2023 2,168 626 173 2,967

2024 2,203 626 176 3,005

2028 2,341 626 187 3,154

2033 2,508 626 201 3,335

2038 2,665 626 213 3,504

2040 2,727 626 218 3,572

16

Assumptions:Growth in County & UGA 0.3%/yr PSRC, (not incl WR)Growth in City: Economic Profile Report 2018 – 2021

(Wastewater Facility Plan 2022 – 2038)

City Growth Rate

Sallal Combined Growth Rate

(Consump ERU)

2018 12 % 2.73%

2019 15 % 4.48%

2020 10 % 3.32%

2021 5 % 2.30%

2022 3.24 % 1.45%

2025 2.95 % 1.23%

2028 2.66 % 1.17 %

2030 2.47 % 1.12 %

2038-40 1.94 % 0.96 %

DRAFT

1 – ERU from 2018 data projected at growth rate2 – DSL observed in 2018, increasing to 12% in 2019 then decreasing until 2022 to 8%. 8% thereafter assumed3 – red text: B y itself Sallal has insufficient water rights to serve these additional ERU

PROJECTED WATER PRODUCTIONYear

Number of ERUs 1

Annual Production

(MG/YR)

Maximum Day Production

(gpm)

2016 * 2,520 161.0 881

2017 * 2,590 173.3 914

2018 * 2,678 179.7 881

2019 2,767 186.3 913

2020 2,861 193.1 946

2021 2,908 196.5 963

2022 2,929 198.0 971

2023 2,967 200.7 984

2024 3,005 203.5 997

2028 3,154 214.3 1,050

2033 3,335 227.0 1,114

2038 3,504 239.5 1,174

42040 3,572 244.4 1,198

17

Water Right LimitAnnual = 226.8 MG/YRInstantaneous = 1,691 gpm

* Actual

DRAFT

1 – INCLUDES WILDERNESS RIM, DSL AND OTHER

WATER QUALITY

WATER QUALITY – TOOK A HIT RECENTLY

• MEETING ALL WATER QUALITY REGULATIONS (EXCEPT FOR RECENT COLIFORM)

• BACTERIOLOGICAL POSITIVE TESTS SEPTEMBER 2019

• WATER IS NOW DISINFECTED WITH CHLORINE – IF SALLAL REMAINS A CHLORINATED SYSTEM WILL DEPEND UPON SEVERAL FACTORS.

• FUTURE WATER QUALITY

• BEST MANAGEMENT PRACTICES

• DESIRE OF SALLAL MEMBERS & BOARD

• INORGANIC CONSTITUENTS ARE LOW

• LEAD & COPPER MEET ALL REGULATIONS

• NON-DETECT FOR PFAS – WELL 3

18DRAFT

RECOMMENDED/REQUIRED SYSTEM MINIMUM

Required Recommended Meets standards

Source

Meet MDD with all sources and storage

Meet max day with 18 hours of pumping.

Yes – with Well 4

Meet Ave Day Demand with largest source out of service

Yes – with Well 4

Pump Stations Redundant Power Yes

Storage

Provide operational equalizing, standby and fire suppression storage

Same Yes – with new Reservoir2nd new reservoir needed in a few years, size depends upon NB contract, if/when/what

Distribution

30 psi min Peak Hour Same Yes

20 psi fire flow @ 1,000 gpm (or more for specific locations)

Same Some water mains needed to get to 20 psi at 1,000 gpm

19DRAFT

BOOSTER STATIONS

• MUST MEET MAXIMUM DAY CAPACITY IF THEY PUMP TO A RESERVOIR.

• MUST MEET FIRE FLOW OR PEAK HOUR DEMAND (WHICHEVER IS GREATER) IF THEY PUMP TO A “CLOSED” ZONE.

• ALL BOOSTER STATIONS MEET MINIMUM CRITERIA

20DRAFT

STORAGE

ASSUMPTION - EACH OF THE RESERVOIR ZONES ARE STAND ALONE.

• 710 ZONE AND ALL ZONES SOUTH TO RATTLESNAKE ARE ON UPLANDS/RATTLESNAKE

RESERVOIRS

• 793, 883 AND 920 (ALL ZONES EAST OF TANNER) EDGEWICK/MIDDLEFORK

RESERVOIRS

• 840 ZONE RIVER POINT

• 1009 ZONE TERRELL

21DRAFT

STORAGE COMPONENTS

22DRAFT

STORAGE REQUIRED - 2040

Storage ComponentRattlesnake/

UplandsEdgewick/

Middle ForkRiver Point Terrell

Operational Storage (OS)

29,200 45,200 8,000 8,000

Equalizing Storage (ES)

14,000 52,000 16,000 16,000

Standby Storage (SB) 563,000 116,000 35,000 35,000

Fire Suppression Storage (FSS)

300,000 360,000 120,000 120,000

Total Required Live Storage

606,200 457,200 144,000 144,000

Storage Volume 591,000 850,000 158,000 157,000

Dead Storage 90,000 135,000 8,000 8,000

Total Effective Storage 500,600 715,000 150,000 149,000

Storage Surplus (105,600) 257,800 6,000 5,000

23

Current storage deficit eliminated with the new reservoir.

Timing of additional 3rd

Rattlesnake Reservoir is rate of growth dependent. Whether or not there is a contract with North Bend will impact the size of a future reservoir.

DRAFT

DISTRIBUTION SYSTEM

24

Generally water system provides fire flow at 1,000 gpm. Area south of Trucktown and by River Point provide 500 gpm at 20 psi (County Min).

DRAFT

25DRAFT

"THERE ARE TWO TYPES OF FORECASTS ... LUCKY OR WRONG!!!!”

CONTROL MAGAZINE

MAXIMUM DAY DEMAND

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2015 2020 2025 2030 2035 2040

GPM

SOURCE LIMIT

26

PHYSICAL CAPACITY (WITH WELL 4) EXCEEDS WATER RIGHTS LIMIT OF 1,600 GPM AT RATTLESNAKE WELLS.

WELL 3 WATER RIGHT = 91 GPMWELL 3 CAPACITY = 80 GPM, ASSUME WELL 3 FOR 18 HOURS –60 GPMSOURCE LIMIT = 1,660 GPM

DRAFT

ANNUAL WATER DEMAND PROJECTIONS

150

160

170

180

190

200

210

220

230

240

250

2015 2020 2025 2030 2035 2040

MG

/YR

PROJECTED DEMAND ANNUAL WATER RIGHT

27

• PROJECTED DEMAND - BASED UPON GROWTH PROJECTIONS PREVIOUSLY PRESENTED.

• NO INCREASED WATER USE EFFICIENCY/REDUCTION IN WATER USE PER ERU ASSUMED.

• DSL at 8%.

DRAFT

WATER USE EFFICIENCY

• DATA COLLECTION REQUIREMENTS – OK

• SUBMITTAL OF WUE REPORTS – OK

• METERING – OK

• DISTRIBUTION SYSTEM LEAKAGE (3 YR ROLLING

AVERAGE) – MEETS STATE STANDARDS (10%),

BUT COULD BE BETTER

• DSL GOAL – 7%

28

0%

2%

4%

6%

8%

10%

12%

2011 2013 2015 2017 2019

DSL

DRAFT

3-YR DSL ROLLING AVERAGE

SALLAL CUSTOMER DEMAND

40

50

60

70

80

90

100

160

170

180

190

200

210

220

2012 2013 2014 2015 2016 2017 2018

GP

D/P

ER

SO

N

GP

D/E

RU

GPD/ERU GPD/PERSON

Sallal population per household has increased from

2.9 to 3.0 over this period.

29DRAFT

OTHER PURVEYORS GPD/ERU

30

GPD/ERU GPD/Person Source Data Year

Ames Lake 148 53 2018 WSP 2012 - 2016

Bothell 180 74 2012 WSP 2009

Carnation 172 59 2010 WSP 2008

North Bend 149 63Draft WSP

2020 2014-2019

Northshore 114 72Draft WSP

2018 2011 – 2013

Sallal 198 66Draft WSP

2020 2012-2018Seattle Public

Utilities 175 Data Set 2017

Snoqualmie 197 95 2013 WSP

Samm Plateau 213 2018 WSP 2014 – 2016USGS – King

County 82 2015

DRAFT

GOAL SETTING• SINCE 2012 SALLAL CONSUMPTION PER HAS INCREASED ABOUT 1 GPD/ERU/YR

• GOAL – DECREASE CONSUMPTION BY 0.5 GPD/ERU/YEAR

• GOAL – REDUCE MAX DAY AND SUMMER DEMAND PEAK RELATIVE TO AVERAGE DAY, FROM 2.58 TO 2.50

• REDUCE FLUSHING – THIS HAS DECREASED WITH SYSTEM BECOMING CHLORINATED

• METHODS TO LOWER PRODUCTION

• EDUCATION – CONSUMPTION ERU

• GET DSL BACK TO 7%

• LEAK DETECTION

• MONTHLY REVIEW OF CONSUMPTION DATA AND PRODUCITON DATA

• WR MASTER METER CALIBRATION

• INSTALL METERS AT ALL BOOSTER STATIONS TO BETTER UNDERSTAND WATER DEMAND PER RESERVOIR ZONE

• CONNECT ALL METERS TO SCADA TO ENABLE “REAL TIME” ASSESSMENT OF WATER MOVEMENT IN SYSTEM AND IDENTIFICATION OF POTENTIAL LEAKS.

• CONSERVATION PRICING

• A POTENTIAL OPTION

31DRAFT

WATER PRODUCTION WITH AND WITHOUT WUE

150

160

170

180

190

200

210

220

230

240

250

2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038

Ann

ual p

rod

uctio

n (M

G/Y

R)

Prod w/WUE Series2 Water Right

SALLAL CONNECTED ERU2,502 2,601

WATER RIGHT226.8 MG/YR

Note:ERU VALUES DO NOT INCLUDE WILDERNESS RIM OR ERU ATTRIBUTABLE TO DSL

32DRAFT

SOURCE PROTECTION

• WELLS 1, 2 & 4 IN SPU WATERSHED – WATER COMES FROM LEAKAGE

THROUGH MASONRY DAM. CEDAR MORAINE.

• WELL 3 – SNOQUALMIE VALLEY AQUIFER. EAST OF TRUCKTOWN.

33DRAFT

O&M

• COLIFORM SAMPLING - ONCE/MONTH 7 SAMPLES

• CHLORINE RESIDUAL – DAILY

• LEAD & COPPER – 3 YR

• DISINFECTION BY PRODUCTS

• EMERGENCY RESPONSE – TERRELL AND E.COLI LESSONS LEARNED

• LEAK INSPECTION PROGRAM

• LEAK REPAIR

• CROSS CONNECTION PROGRAM – ANNUAL RENEWAL

• METER READING

• CONSTRUCTION INSPECTION

34DRAFT

CAPITAL PROJECTS DRAFT LIST

Capital Project Location Type YearW/out NB,

2018 DollarsWith NB,

2018 Dollars1 Chlorine (Disinfection) Systems Each Well Disinfection 2019 $300,000 $300,0002 Water System Plan Planning 2019 $65,000 $65,000 3 Office/Warehouse Facilities - Design Edgewick Permits 2019 $625,000 $625,000

4 CT Water Main Well 2 Water Main 2020 $215,000 $215,000

5 North Bend Contract (Prof Serv) North Bend GFC 2020 $0 $30,000

6 436th at NB Way RAB NB Way Water Main 2019 $200,000 $200,000

7 436th at SE 136th St 436th Ave SE Water Main 2019 $206,000 $206,000

8 Well 4 Equipping (New Rattlesnake Well) Rattlesnake Well 2020 $1,034,000 $1,034,000

9 Rattlesnake Reservoir No. 2 Rattlesnake Ridge Storage 2020 $1,066,000 $1,066,000

10 Flow Meter at Tanner BPS Tanner Meter 2020 $35,000 $35,000

11 Connection between NB/SWA - design North Bend BPS & WM 2020 $0 $84,000

12 Office/Warehouse Facilities - Construction Edgewick Construction 2020 $4,115,000 $4,115,000

13 Flow Meter & SCADA at Lower Mt. Si BPS Lower Mt. Si SCADA 2021 $40,000 $40,000

14 Replace Trucks Various Vehicles 2021 $50,000 $50,000 15 Connection between NB/SWA North Bend BPS & WM 2022 $0 $758,000 16 Flow Meter & SCADA at RP BPSi River Pt SCADA 2022 $40,000 $40,000 17 VFD Well 2 Rattlesnake Well 2022 $65,000 $65,000 18 Tanner Road - 436th to Sallal Office Tanner Road Water Main 2022 $702,000 $780,00019 Small Track Hoe with Trailer Various Equipment 2023 $30,000 $30,000 20 Rattlesnake Reservoir No. 3 Rattlesnake Ridge Storage 2024 $959,000 $1,990,000 21 Sampling Stations (3) Various Distribution 3-year Budget $45,000 $45,000 22 Annual Meter Replacement Various Distribution 10-year Budget $300,000 $300,000 23 PRV Station upgrades Various Distribution 5-year Budget $125,000 $125,00024 Edgewick Road 468th Ave SE Distribution 2025 $1,395,000 $1,395,000 25 Cascade East Water Main 793 zone Distribution 2026 $257,000 $257,000 26 Terrell Water Main Mt Si Rd Distribution 2027 $572,000 $572,000 27 Watermain Replacement - Budget Various Distribution 4-year Budget $600,000 $600,000

$13,041,000 $15,022,00035DRAFT

• Sample Stations$15,000/yr – 3 years

• Meter Replacement$30,000/yr every year

• PRV Station Upgrades$25,000/yr – 5 years

• Watermain replacement$150,000/yr – 4 yrs

FINANCIAL ASSUMPTIONS End of 2018

Reserves($ Thousands)

Operations $798

Capital $885

Amortization $282

36

General Assumptions

COLA 3.0%

Interest on Balance

1.0%

Taxes 5.0%

Insurance 5.0%

Inflation 3.0%

Inf & Growth varies

Loan Rate 5.0%

Rates & Amortization

Year Percent Increase -Rates

Year Percent Increase -Amortization

20202021

8%8%

2020 mid-year2021

30%3%

2022 - 2025 5% 2022 0%

2026 - 2030 2% 2024 - 2025 4%

DRAFT

FINANCIAL ACCOUNT SUMMARY

37

OPERATIONAL (CHECKING) SUMMARY CAPITAL SUMMARY AMORTIZATION

Beginning Balance Beginning Balance Beginning Balance

Retail & Base Revenue Connection Charges & Interest Inc. Amortization Revenue

Wilderness Rim Revenue Transfer from Operations Total Debt Annual Payment

All other Revenue Total New Loan Funds End of Year Balance

Total Operating Revenues Total Capital Expenses

Water Distribution Expense Net Capital Revenue

General Administration Expense End of Year Balance (Capital)

Net Operational Revenue

End of Year Balance (Operations)

DRAFT

SALLAL ESTIMATED FINANCIAL RESERVES

38

DRAFT

39