HomeMy WebLinkAboutMinutes 02/12/1996UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
February 12, 1996
L
Call to Order:
Chairman Myers called the meeting to order at 1:10 p.m.
Roll Call:
Members Present:
Members Absent:
Staff Present:
Gary Braun, Orville Campbell, Larry Doyle, Joe Michalczik, and Bill
Myers.
None.
C. Knutson, B. Titus, C. Hagar, K. Godbey, and S. McLain, J. Pittis,
and G. Kenworthy.
IlL Approval of Minutes:
Councilman Braun moved to approve the minutes of the January 8, 1996, meeting.
Councilman Doyle seconded the motion, which carried by a majority, with Councilman
Campbell abstaining as he had not attended that meeting.
Chairman Myers requested Election of Officers be moved up on the agenda, as Joe Michalczik and
Councilman Braun had other commitments later this afternoon. The Committee agreed.
IV. Election of Officers
Chairman Myers opened the nominations. Councilman Braun nominated Joe Michalczik as
Chairman. Councilman Campbell seconded the motion. There being no further nominations,
a vote was taken on the motion, which carried unanimously.
Councilman Doyle nominated Councilman Braun as Vice-Chairman. Joe Michaiczik seconded
the motion. There being no further nominations, a vote was taken on the motion, which carried
unanimously.
Joe Michalczik requested Bill Myers to continue chairing the current meeting, as he had to leave at
3:00 p.m.
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Utility Advisory Committee
February 12, 1996
V. Discussion Items:
A. Update on BPA Rate Case
Light Director Titus introduced Scott McLain, Power Manager, who gave a review of the
information contained in the packet. Mr. McLain explained that currently the rate decrease
appears to be about 15%. The new rates will be effective as of October 1, 1996, and the final
proposal is scheduled to come out on May 31, 1996. Even though other costs may rise, the
citizens should receive a significant decrease is utility rates.
Director Titus explained the negotiation process and the options that will have to be
considered in the near future. Discussion followed and Director Titus and Scott McLain
responded to questions directed by the Committee. Mr. McLain stated that the contract with
Bonneville expires in the year 2001. If Bonneville does not offer competitive rates, power
can be purchased elsewhere, and Bonneville's customer base will dwindle. Further discussion
followed and Director Titus clarified issues regarding the Rate Impact Analysis contained in
the packet.
No action was taken.
B. Update on BPA Contract Negotiations
Director Titus distributed an updated version of the Joint Letter of Commitment which had
come in from the BPA since the meeting packet had been distributed to the Committee, and
a draft letter of intent submitted by the Public Power Council. Director Titus then reviewed
and clarified the information provided. Director Titus again stressed that Bonneville now
must be cost competitive as well as have contractual terms that are comparable to those found
in the private sector. At Councilman Braun's request, Director Titus explained how the BPA
would recover debt service costs if it loses its customers.
Discussion followed, and Director Titus responded to questions posed by the Committee and
clarified several issues of concern Director Titus explained that he will speak to a BPA
account executive tomorrow attemoon to discuss the most recent draft of the Joint Letter of
Commitment, and decide if this draft is more acceptable to the City. Director Titus then
reviewed the Letter of Commitment and explained its intent.
Discussion followed regarding retiring the WPPS debt, and the City's role in this issue.
Councilman Campbell felt that under any circumstances, it was the job of this Committee and
staffto do the best job possible to protect the citizens of Port Angeles from future problems
due to the BPA having to retire its debts. Director Titus explained that he will be attending
several meetings this week and next, and will have more information for the Committee at its
next meeting.
No action was taken.
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Utility Advisory Committee
February 12, 1996
C. Update on Regional Conservation Concerns
Light Director Titus distributed a copy of a letter received from Senator Slade Gorton
regarding the Northwest Power Act, as well as a draft copy of his response to that letter.
Director Titus then reviewed the information provided in the packet, and explained that a
number of utilities, including Port Angeles, complained that the survey carried out by the
Northwest Conservation Act Coalition was erroneous and performed under false pretenses.
The survey shows Port Angeles disconfmuing all conservation programs by 1998. This is not
what the surveyor was told, and does not reflect the tree picture. Staffwanted the Committee
to be aware of what was going on in the event they are contacted by members of the
Congressional delegation. Director Titus explained that part of the difficulty is that the Power
Act that is in place still has established conservation targets for Bonneville. It is unclear what
Bonneville's responsibilities will be in light of all the changes taking place. Director Titus
explained what conversation measures are currently available and what has been done in the
past.
Discussion followed; however, no action was taken.
Deputy Clerk Hagar distributed a memo from the City Clerk and Customer Service Manager
regarding discounts offered to Northland Cable Senior and Disabled Citizens. This was for
information only. There was no discussion or action taken.
D. Report on Treatment Plant Outfall Study
Public Works Director Pittis reviewed the information contained in the packet and introduced
Gary Kenworthy, City Engineer, who explained why the existing outfall pipe needs to be
replaced and where it would lie. Director Pittis informed the Committee that the existing
outfall pipe has broken diffusers; however, it still appears to be doing its job as there is no
build up of sediment. Discussion followed; no action was required.
E. One-Year Certification of Treatment Plant
Gary Kenworthy, City Engineer, reviewed the information provided in the packet. Mr.
Kenworthy explained that the Department of Ecology requires a one-year certification to
assure that everything is meeting permit requirements. The Wastewater Treatment Plant was
monitored for over a year, staffgathered data, and a report was submitted to the DOE. The
DOE approved the report and certification has been granted.
Councilman Doyle pointed out that there was a typographical error in the memo and
certification was granted in January, 1996 not 1995. Brief discussion followed, and Mr.
Kenworthy and Director Pittis responded to questions directed by the Committee. There was
no action required.
F. Discussion of City/PUD Agreement
Public Works Director Pittis summarized the agreement, pointing out changes, explaining why
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Utility Advisory Committee
February 12, 1996
the changes were made, and offering clarification on several issues.
Discussion followed, and Director Pittis responded to questions directed by the Committee
regarding the new reserqoir that will be needed and how it will be paid for. Director Pittis
explained that the new reservoir would be placed on Mt. Angeles Road. The Public Utility
District (PUD) has requested that they pay their share of the new reservoir through water
consumption rates. The City would be responsible for bonding, as it has a better bond rating;
therefore, the cost would be less.
Director Pittis completed his review of the agreement, addressed concerns expressed by the
Committee, and stated he would bring any further changes back for review prior to any action
being taken. This was an information only item, and no action was taken.
G. Discussion of Commercial Yard Debris
Public Works Director Pittis reviewed the information provided in the packet. He stated that
home builders feel that the per ton charge for commercial yard debris should not apply to
single lot land clearing. They agreed that if someone is clearing five or ten acres the per ton
charge is equitable. Mr. Pittis reviewed the three alternatives arrived at by staffand a brief
discussion followed. No action was taken.
VI Late Items:
None.
Noct Meeting:
The next meeting of the Utility Advisory Committee will be held on Monday, March 11,
1996, at 4:30 p.m.
VIII. Adjournment:
The meeting adjourned at 4:10 p.m.
( alrman
Deputy City Clerk~///
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