HomeMy WebLinkAboutMinutes 10/13/2009 6527
• City Council Special Meeting/Utility Advisory Committee
Public Works ConFerence Room
Port Angeles WA 98362
October 13, 2009
3:00 p.m.
I. Ccill To Order
Chairman Reed called the meeting to order at 3:00 p.m.
II. Ro!! Call
Councilmembers Present: Deputy Mayor Betsy Wharton, Karen Rogers, Don Perry
(Alternate For Dan Di Guilio), Cherie Kidd (Observing
OnIY)
Councilmembers Absent: Dan Di Guilio
Utility Advisory Chairman Reed, Orville Campbell
Committee Members
Present:
Staff Present: Kent Myers, Bill Bloor, Yvonne Ziomkowski, Nathan West
joined the meeting at 3:54, Mike Puntenney, Larry Dunbar,
Phil Lusk, Terry Dahlquist, Cate Rinehart
Others Present: Paul Elliott — Nippon Paper Industries USA Co., LTD
Harry Bell — Citizen
Shirley Nixon — Citizen
Shannon Greene — Bonneville Power Administration
Tom Callis — Peninsula Daily News
Norma Turner — Citizen
IIl. Approva! Of Minules
Chainnan Reed asked if there were any corrections to the minutes of September 8, 2009.
Councilmember Rogers moved to approve the minutes. Councilmember Wharton
seconded the motion, wliich carried unanimously with Councilmember Perry abstaining.
IV. Late Items: None
V. Discussio►r Itenrs:
A. Bonneville PowerAdnunistration Notice For Tier 2 Power Supply
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Larry Dunbar, Deputy Director of Power Systems, introduced Shannon Greene of the •
Bonneville Power �dministration. Ms. Greene distributed a handout and together they
reviewed the information. There was a lengthy discussion.
Councilmember Rogers moved to recommend city Council authorize the Director of
Public Works and Utilities to notify the Bonneville Power Administration in
accordance with Section 2.4.1.1 of Exhibit C of the Power Sales Agreement that the
City selccts thc Tier 2 Short-Term rate Altcrnative for the period of October 2011
through Septembcr 2014 for 100% of its above High Water Mark load greater than
1 avcrage megawatt. Councilmember Wharton seconded the motion, which carried
unanimously.
B. Energy Nortliwest Interincal Agreei�ient For The Morse Creek
Hy�/roelectric Project
Terry Dahlquist, Electrical Engineering Manager, pointed out that Energy Northwest
possesses e�pertise that can be used to upgrade the Supervisory Control and Data
Acquisition (SCADA) System for the Morse Creek Hydroelectric Project. The upgrade
will fulfill FERC licensing requirements and will increase generation and reduce
operating costs. There was a brief discussion.
Councilmember Wharton moved to recommend City Council authorize the Mayor
to sign an interlocal agreement with Energy North�vest in an amount not to exceed
$45,000, and authorize the City Manager to make minor modifications to the
agreement, if necessary. Councilmember Perry seconded the motion, which carried
unanimously.
C. Western Public Agencies Group Direct Load Control Feasibility Stu�ly
Larry Dunbar, Deputy Director of Power Systems, eaplained that City received a
proposal from the Western Public Agencies Group (WPAG) for a peak demand
management study. There ���as a brief discussion.
Councilmember Rogcrs moved to recommend City Council authorize the City
Manager to sign an agrecment with EES Consulting, Inc., and Marsh Mundorf
Pratt Sullivan and McKenzie in an amount not to excced $5,000 for a Direct Load
Control Feasibility Study. Orville Campbell seconded the motion, whic6 carried
unanimously.
D. Canpact Fluorescerrt Luntp Murkdown Promotion Agreen7ent
Phil Lusk, Power Resources Manager, advised that the City had �vas offered a new
agreement for the "Change a Light, Change the World" with Portland �nergy
Conservation, Inc. and that all expenses would be eligible for reimbursement. There was
a brief discussion.
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• Councilmember Wharton moved to recommend City Council authorize the Public
Works and Utilities Director to sign the agreement and any subsequent amendments
to the CFL Markdown Promotion Agreement. Councilmembcr Perry seconded the
motion, which carried unanimously.
E. Utility Advisory Committee Industrial Customer Menaber Resignation
Larry Dunbar, Deputy Director of Power Systems, requested guidance on how to address
the upcoming Industrial Customer inember vacancy on the Utility Advisory Committee.
A number of suggestions were considered. Staff was advised to send a letter to Nippon
requesting they designate a representative that would submit an application to serve on
the committee.
Information only. No action taken.
F. Uti[ity Retuil Rate And Fee Adjustments
Larry Dunbar, Deputy Director of Power Systems, distributed information regarding the
issued and reviewed the contents. There was a lengthy discussion.
Councilmember Perry moved to recommend City Council proceed with the
proposed rate and fee adjustments for the Electric, Water, Wastewater, Solid Waste
Collection, and Transfer Station Utilities minus the Economic Development fund.
Councilmember Rogers secondcd the motion, which carried with Councilmember
Wharton abstaining.
G. Industriu! Ctistomer Power Sales Agreenzent
Larry Dunbar, Deputy Director of Power Systems, advised that a Power Sales Agreement
was being negotiated with the City's Industrial customer. A discussion followed.
Councilmember Wharton moved to recommend City Council authorize the Mayor
to sign a Power Sales Agreement �vith Nippon Paper Industries USA CO., and
authorize the City Manager to make minor modifications to the agreement, if
necessary. Councilmembcr Perry seconded thc motion, which carried with
Chairman Reed abstaining.
H. Conservation Loaii Derluction
Phil Lusk, Po�ver Resources Manager, pointed out that the City had assumed ownership
of the balance of the Bonneville Power Administration legacy conservation loan
agreements and explained why staff is interested in recovering the outstanding loan
balances. There was a brief discussion.
Orville Campbell moved to rccommend City Council authorize the Director of
Public Works and Utilities to makc a one time offer of a 40% discount on
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conservation loans that are paid off within a nine month period beginning January •
2010. Councilmember Wharton seconded the motion, which carried unanimously.
vL Inforn�rction On[y Itenzs
A. U.S. Depurtme►zt OjEnergy Advnnced Wuterpower Grunt Applicution
Information only. No discussion or action taken.
B. Nortltwest Power And conservatio�: Council's Drnft S�ttli Nortlrwest
Power Plu�z
Information only. No discussion or action taken.
C. Energy Independeirce Security Act of 2007 Mundutory Consideratioi� Of
Stundards
Information only. No discussion or action taken.
D. Network Nee�/s Assessment And Public Sufety Cai:siderutia�s Updute
Information only. No discussion or action taken.
VII. N�rt Meetii7g Dute: November ] 0, 2009
VIII. Ar/journrnent: 5:08 p.m.
.�..�- ,� � ���_
Gary Braun, ayor Ja sa Hurd, City Clerk
Dean Reed, Chair Cate Rinehart, Admin. Spec. 11
Utility Advisory Committee
N:\p�vl:s\light\cons\cate\octl 3meet •