Utility Rate Study Project

Project Summary

The City of Ferndale, Washington desires to solicit interest from firms with experience in performing utility rate studies to complete a comprehensive rate study of the City's water, sanitary sewer, and stormwater rate structure.

The City of Ferndale has experienced substantial growth in recent years; this growth coupled with ageing infrastructure necessitates expansion and upgrades to the City's water and sanitary sewer systems including a $26 million expansion of the wastewater treatment plant and $4 million expansion of the City's water treatment plant and well system.

This rate study is intended to analyze the existing rate structure and provide rate recommendations designed to fully fund utility expenditures as well as evaluate rate equity within the system. Proposed rate structures shall also provide for the long-term viability and financial strength of the utility.

Ferndale Systems Overview

The City of Ferndale provides water, sewer, and stormwater utility services to a population of approximately 14,000 both in and outside the City's municipal bounds.

Sewer

The City operates a wastewater treatment plant which was originally constructed in 1975 and benefited from major additions and modifications in 1997 and 2000. The plant has currently reached its design capacity and requires further upgrades and modifications. The City, working with our consulting engineers have completed design for the plant modifications anticipating a construction start in late 2019 or early 2020. Current cost projections indicate a construction cost of approximately $26,000,000 of which the City has secured approximately $15,000,000 in low interest loans through the State of Washington.

Water

The City's water system currently relies on two production wells and one treatment plant to meet the City's needs. The treatment plant was originally constructed in 1973 and originally treated surface water sourced from Whatcom County PUD #1, in late 2011 the City transitioned to groundwater utilizing the City's existing water rights portfolio. Current treatment plant operations utilize reverse osmosis and green sand filtration as well as chlorination to provide treated water to the distribution system.

In 2018 the City drilled a new production well into a previously undiscovered deep aquifer. Bringing this new resource online will require construction of a well house and modifications to the treatment plant. Current cost projections indicate that construction will be approximately $4,000,000.

Stormwater

The City of Ferndale operates a stormwater utility which serves an area of approximately 3,700 acres and is responsible for maintenance and repair of stormwater facilities and conveyance systems, managing the City's Western Washington Phase II Municipal Stormwater Permit, investigation and resolution of citizen complaints and requests, and flood management.

Upcoming stormwater projects include Comprehensive Stormwater Plan update including requirements for watershed planning and development of a Stormwater Monitoring Action Plan. Additionally, the City will need to fund replacement and upgrading of several large culvert crossings to provide additional capacity and remove fish passage barriers.

QUESTIONS: For more information, please contact Public Works Director, Kevin Renz at (360) 384-4006 or by email.

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