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HomeMy WebLinkAboutMinutes 06/11/2001 UTILITY ADVISORY COMMITTEE/PORT ANGELES WORKS! COMBINED MEETING Port Angeles, Washington June 11, 2001 L Call to Order: Chairman Reed called the meeting to order at 3:00 p.m. It was noted that the agenda was amended to remove the works "Special Meeting". IL Roll Call: Members Present: Chairman Reed, Larry Williams, Mayor Doyle, Orville Campbell, Allen Bentley Members Absent: None StaffPrcscnt: Michael Quinn, Craig Knutson, Tim Smith, Tanya O'Ncill, Yvonnc Ziomkowski, Brad Collins, Gary Kcnworthy, Ken Ridout, Scott McLain, Larry Dunbar, Doyle McGinlcy, Jeff Young, Tom McCabe, Steve Spcrr, Cate Rinehart Others Present: Richard Li - Metropolitan Communications Consultants Dr. Paul Carlson - Metropolitan Communications Consultants Bob Jcnsen- Capacity Provisioning Bill Roberds - Capacity Provisioning Leonard Beil - PA Works Mac Ruddell - PA Works Randy Johnson - PA Works Jim Hulett - PA Works Dennis Bragg - Den-Ree Productions III. Approval of Minutes: Chairman Reed recognized the need to alter the order of the agenda to accommodate certain individuals in attendance. Chairman Reed asked if there were any further changes or additions to the agenda. None were given. Chairman Reed then asked if there were any additions or corrections to the meeting minutes of April 30, 2001. Mayor Doyle moved to approve the minutes. Councilman Williams seconded the motion, which carried unanimously. Chairman Reed asked if there were any additions or corrections to the meeting minutes of May 7, 2001. Councilman Campbell moved to approve the minutes. Mayor Doyle seconded the motion, which carried unanimously. IV. Discussion Items: A. Fiber Optic Backbone Business Plan Revised Scope of Work UTILITY ADVISORY COMMITTEE June 11,2001 Larry Dunbar, Power Resources Manager, introduced Richard Li and Dr. Paul Carlson of Metropolitan Communications Consultants. Mr. Dunbar indicated additional services for consortium building and network implementation would be required depending upon solicitation response. It was explained that the venture was attractive to outsiders and fostered an environment for the local businesses. A short discussion followed. PA Works! moved to recommend City Council approval as presented. Mayor Doyle moved to recommend City Council approval of the revised scope of work to proceed with implementation of the City/Telephone partnership and City/Cable/Telephone consortium and amend the consulting services agreement scope of work and compensation with Metropolitan Communication consultants. Councilman Williams seconded the motion, which carried unanimously. B. Fiber Optic Pilot Project Consultants Richard Li and Dr. Paul Carlson reviewed the project goals which included a test design, demonstration objective, cost validation, technology and acceptance. The pilot project planning aarea and survey respondents were displayed with results indicating readiness and demand. After a brief discussion it was pointed out that the pilot project will include two nodes and that services will be available at the same rate as Seattle. No action taken. Information only. C. MagnaDrive Proposal Jeff Young, Waste Water Treatment Plant Superintendent, reviewed the potential benefits derived through conversion of power couplings. Concern was expressed over a study which indicated lower horse power conversion was not cost effective. It was suggested that this may be a different application than the study mentioned. Abriefdiscussion followed. Mayor Doyle moved to recommend to City Council approve the MagnaDrive retrofit amending staff recommendation to retrofit one blower instead of two. Councilman Williams seconded the motion. A vote was taken on the motion which carried four to one with Chairman Reed in opposition. D. tVater QualiO~ Report (Calendar Year 2000) Doyle McGinley, Water/Wastewater Collection Superintendent, gave abriefoverview of the report that will be distributed to the public noting various areas of mandatory language. Some minor changes were made with the suggestion of placing it as information under the City Manager's Report. Councilman Campbell moved to approve the Water Quality Report for presentation to the City Council and distribution to water customers of the City. Mayor Doyle seconded the motion, which carried unanimously. UTiLITY ADVISORY COMMITTEE June 11, 2001 E. Codification of the Water Shortage Response Plan Ken Ridout, Deputy Director o fUtility Operations, clarified penalties changing restriction to 10 gallons per minute and prior notice before shutoff with an opportunity for the customer to comment. Mr. Ridout further stated the $100 charge was considered turn on fee. A discussion followed with concerns regarding the penalties. Craig Knutson, City Attorney, explained the difference between having an ordinance or not during a time of crisis. Mayor Doyle moved to direct staff to develop an ordinance for UAC review prior to recommending to the City Council adopting the Water Shortage Response Plan. Councilman Williams seconded the motion. A vote was taken on the motion which carried four to one with Allen Bentley in opposition. F. Assumption of Solid Waste Services In Upper Golf Course Road Annexation Area Chairman Reed stepped down for the appearness of fairness due to his home location. Vice Chair Williams continued the meeting on this topic only. Tom McCabe, Solid Waste Superintendent, identified 31 homes which the City could provide refuse and recycling services. Mr. McCabe reviewed the history stating the City did not meet certain conditions at the time of annexation therefore an amendment was required to the contract with Waste Connections. Following the discussion staff was directed to notify homeowners of possible changes in services. Mayor Doyle moved to table this item and return it to the UAC at a future date. Councilman Campbell seconded the motion, which carried unanimously. G. Utility Tax on Electric Sales Yvonne Ziomkowski, Finance Director, raised the issue of increased electric rates this fall explaining a rebate of the increased utility taxes could assist retail rate increases. Mrs. Ziomkowski further indicated that due to the unknown factors a general figure of five percent is being currently used for inflation. Scott McLain, Deputy Director of Power Systems, pointed out that figures would probably change but that the UAC needed to be aware of some of the things staff was looking into. A brief discussion followed. Chairman Reed moved to table this item and return it to the UAC at a future date. Councilman Williams seconded the motion, which carried unanimously. H. CPA 01-01 Utility Extension Policy Change Brad Collins, Community Development Director, pointed out the Comprehensive Plan policy prohibiting the extension of City services outside the City limits without annexation was not working. Mr. Collins noted the extension of facilities would be in the UGA only and would be cost effective. There was a short discussion with some concern expressed over the meaning of"no protest agreement". Councilman Williams moved to forward a recommendation of approval to change Utilities and Public Services Element Policy D.3 in the City's Comprehensive Plan to allow for the extension of urban services by the City, at its sole discretion, to the urban growth area without prior annexation. Allen UTILITY ADVISORY COMMITTEE June 11, 2001 Bently seconded the motion, which carried unanimously. L Marketing Services Professional Services Agreement Larry Dunbar, Power Resources Manager, introduced Dennis Bragg of Den-Ree Productions. Mr. Dunbar reviewed the need to inform customers concerning the reasons for rate increases and educating them on how to reduce consumption and cost. It was explained that placing the same information in print, radio and television advertisements would give positive results and the most effective way to implement it would be to use a service agreement. A short discussion followed. Councilman Campbell moved to recommend the Mayor be authorized to enter into the Marketing Services Professional Services Agreement with Den-Ree ProducOons. Councilman Williams seconded the motion, which carried unanimously. J. Right-of-Way Permit for City Drain Line through National Park Service Property Stephen Sperr, Utility Engineer, reported that the existing line ends approximately 500 feet from Peabody Creek and is causing erosion problems in the area within Olympic National Park. Obtaining a permit will allow the City to construct a replacement drainline and use the facilities for the next ten years. A brief discussion followed. Allen Bentley moved to recommend the City Council authorize the City Manager to sign the Right-of- Way permit on behalf of the City. Mayor Doyle seconded the motion, which carried unanimously. K. Completion of lndustrial Water Line Repairs, Project 20-27 Stephen Sperr, Utility Engineer, announced the repairs had been completed during a scheduled mill shutdown by Daishowa the week of May 14 quickly and safely. An estimate o f $70,000 to $100,000 will be reimbursed to the City. There was a brief discussion. No action taken. Information only. L. Conservation Program Summary of Offerings Larry Dunbar, Power Resources Manager, reviewed the various conservation programs which included customer coupons for compact fluorescent lamps, energy rebates, appliance rebates, and free energy and water saving devices. A display for the lobby was shown along with the various pamphlets available to customers. Scott McLain, DeputyDireetor of Power Systems, indicated a Vending Miserprogram was also being added which would power down a vending machine when the surrounding area was unoccupied. There was a short discussion. No action taken. Information only. M. Commercial Lighting Conservation Program 4 UTILITY ADVISORY COMMITTEE June 11, 2001 Larry Dunbar, Power Resources Manager, pointed out that energy efficient lighting was a cost-effective activity with high customer acceptance. Approval of an agreement could provide up to $200,000 for lighting projects to local businesses. A discussion followed with the additional comment that this is an extension of an existing program. Councilman Campbell moved to recommend to the City Council that the Mayor be authorized to enter into the Purchase of Conservation Agreement with the Bonneville Power Administration. Mayor Doyle seconded the motion, which carried unanimously. N. BPA Rate Mitigation Agreement Scott McLain, Deputy Director of Power Systems, explained that all utilities in the Northwest are being asked to reduce their load on BPA by 10% starting this fall to reduce market purchases and lower the rate increase. Mr. McLain indicated it can be done through a combination of conservation program offerings, residential and commercial consumer electricity reduction and an agreement with Dishowa to reduce pulp refining load. A brief discussion followed. Mayor Doyle moved to recommend the City Council authorize the City Manager to sign the Rate Mitigation Agreement with the Bonneville Power Administration along with an agreement with Daishowa America to commit to reduce their load requirements on the City. Councilman Campbell seconded the motion, which carried unanimously. O. Consumer Electricity Reduction Agreement Scott McLain, Deputy Director o fPower Systems, advised that customers who reduce their load by more than 10% can receive an incentive at a rate o f $.046 per kWh for all savings above 10%. To qualify the residential customer must have lived at the same address and commercial customers must have had the same place of business for the past twelve months. During the discussion that followed Mr. McLain pointed out the individual is required to sign a commitment. Councilman Campbell moved to recommend City Council authorize the City Manager to enter into the Consumer Electricity Reduction Agreement with the Bonneville Power Administration. Councilman Williams seconded the motion, which carried unanimously. P. Contribution to Washington PUD Association for DSI effort Scott McLain, Deputy Director of Power Systems, reported the Direct Service Industries are pushing for wholesale rates from BPA based on a tiered rate structure. An increase up to 250% could be realized as a result. The was some concem during the discussion that followed regarding the amount of money the City was being asked to contribute towards a consultant to divert this problem. Mr. McLain noted cost was based on number of customers and retail revenue. Mayor Doyle moved to recommend City Council authorize the City Manager to contribute to the effort against "tiered rates" by BPA in the amount of $4,000. Allen Bently seconded the motion, which carried unanimously. UTILITY ADVISORY COMMITTEE June 11, 2001 1/. Late Items: None VII. Next Meeting: The next meeting will be held July 9, 2001 at 3:00 p.m. in the Public Works Conference Room. VIII. Adjournment: The meeting adjourned at 7:15 p.m. Dean Reed, Chairman Cate Rinehart, Administrative Assistant L/artyV~'illia(n's, Vice Chairmman / 15/01 N 5PWKS~LIGHTxCONS\CATE\j un¢ 1 lmeet.wpd 6