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HomeMy WebLinkAboutMinutes 07/10/1995UTILITY ADVISORY COMMITTEE Port Angeles, Washington July 10, 1995 L Call to Order: Chairman Myers called the meeting to order at 4:35 p.m. Roll Call: Members Present: Members Absent: Staff Present: Larry Doyle, Cathleen McKeown, Joe Michalczik, Bill Myers and Larry Schueler. Gary Braun. J. Pomeranz, C. Knutson, C. Hagar, K. Godbey, J. Pittis, B. Titus, G. Leaf, S. McLain, D. Sawyer, M. Robertson, K. Ridout, and G. Kenworthy. III. Approval of Minutes: Councilmember McKeown moved to approve the minutes of the June 5, 1995, meeting. Joe Michalczik seconded the motion, which carried unanimously. IV. Discussion Items: A. Storm Drain Utility Presentation Public Works Director Pittis introduced Dick Warren of Kato and Warren, Joe Simmler of Economic and Engineering Services, and David Sawyer, Senior Planner. Director Pittis explained that this has been a joint project for the Planning and Public Works Departments, and Mr. Warren and Mr. Simmler have been working with staff to develop a stormwater utility David Sawyer advised the Committee that this project grew out of the overall stormwater management plan program. There is a tie between the City and the County as far as efforts to develop a stormwater plan due to the Watershed Plan. In the future, it is possible that there will be a district or county-wide utility concept. Joe Simmler explained that he and Mr. Warren would review a concept paper they had put together which was both an analysis of the program, as well a review of what it would take to put a stormwater utility in place. -1- Utility Advisory Committee July 10, 1995 Mr. Warren then gave a history and background of why stormwater and wastewater were considered as one, and why they are now considered separate entities. He then proceeded to explain why a stormwater program is needed, what the proposed stormwater program would consist of, and the options the City has available to respond to its stormwater needs. Mr. Warren further reviewed what level of fees or service charges would be necessary to fund the proposed stormwater program, how billing would be done, and what Council actions would be necessitated in establishing a stormwater utility. Discussion ensued, and the Committee expressed concern that another utility fund would overburden the ratepayers. Councilman Schueler was also disturbed over the fact that establishing another utility fund would mean hiring additional help, which would add greatly to the burden. Joe Michalczik suggested the stormwater fund be made part of the wastewater account center, utilize the wastewater staff, and raise wastewater rates to fund stormwater management. Light Director Titus explained that this was not feasible, as wastewater has no room for additional capital, therefore, wastewater would not be able to issue bonds without reducing the bond rating. After much discussion and many questions, it was the general consensus of the committee that more information, and a refinement of the issue were needed before a decision could be made on this matter. This matter will be returned at the next UAC meeting. B. Changes to City Light Policy and Procedure Light Director Titus reviewed the Utility Advisory Committee's direction of the last meeting regarding this issue. He stated that the amendment in the packet was his interpretation of the UAC's desire in this matter. At Councilman Doyle's request, Director Titus gave a history of this amendment. Joe Michalczik moved to recommend adoption of the amendments to the Department Policy & Procedure Policy No. S-03B. Councilmember McKeown seconded the motion, which carried unanimously. C. Discussion of City Light Rate Increase and Cost of Service Study Light Director Titus disclosed that the BPA announced a rate decrease of 8%, however, it was not disclosed that the decrease will not go into effect until October of 1996. Bonneville will initiate a 4% increase as of October 1995. Director Titus reminded the Committee that a year ago, Bonneville was predicting a 12% - 14% increase for 1995, so the decrease for next year is not a certainty. Director Titus informed the Committee that staff has been meeting with industrial customers -2- Utility Advisory Committee July 10, 1995 to discuss the rate increase. Staffand industry agreed to a 4% increase, which will lead to a $250,000 loss. This will reduce the City's reserves to a level lower than that advised by the Consultants. If the BPA rates do go down next year, the loss can be recouped at that time. Staffrecommends a 4% across the board increase. Councilman Doyle inquired if the City is investigating other options for power purchase. Director Titus explained that the City has an agreement with the BPA and could not look elsewhere until 1996. However, the City is in receipt of bids from other entities, and Bonneville rates are comparable. At Councilman Schueler's request, Director Titus explained why industry has a lesser obligation to pay into the reserve account than residential customers. After further discussion, Councilman Schueler moved to recommend a 4% across the board rate increase for the electric utility. Councilman Doyle seconded the motion, which carried unanimously. V. Late Items: None. VI. Next Meeting: The next meeting of the Utility Advisory Committee will be held on Monday, August 7, 1995, at 4:30 p.m VII. Adjournment: The meeting adjourned at 6:25 p.m. Chairman -3-