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HomeMy WebLinkAboutMinutes 10/09/1995UTILITY ADVISORY COMMITTEE Port Angeles, Washington October 9, 1995 Call to Order: Chairman Myers called the meeting to order at 4:33 p.m. Roi1 Call: Members Present: Members Absent: StaffPresent: Gary Braun, Cathleen McKeown, Joe Michalczik, Bill Myers and Larry Schueler. None. J. Pittis, B. Titus, C. Hagar, B. Jones, K. Maike, and S. Kenyon. 11I. Approval of Minutes: Councilmember McKeown moved to approve the minutes of the September 11, 1995, meeting. Councilman Braun seconded the motion, which carried unanimously. III Discussion Items: A. Future Direction of Conservation Light Director Titus informed the Committee, that under the current Flex contract with the Bonneville Power Administration, the City has until October, 1997, to implement conservation projects and until October, 1999, to complete them in order to qualify for the last of the BPA conservation funds. Now, we must decide what to do when the Flex contract is finished. Director Titus pointed out that more than $1 million worth of work has been generated annually for local contractors due to the conservation program Staffis asking for direction for future conservation programs. Rate payers have paid $150,000 per year toward conservation programs, and the BPA has contributed approximately $1 million. The BPA will no longer contribute funding, which is one reason why they have proposed a substantial rate decrease next year. Ken Maike, Conservation Manager, explained the current program budget and funding. He stated the largest future potential for conservation measures is with commercial customers. Discussion followed regarding who the commercial customers are, and what help the City could offer them. He also informed the Committee that approximately $500,000 per year would need to be spent to maintain the current level of programs. This could be in the form -1- Utility Advisory Committee October 9, 1995 of loans or rebates with staff'preferring loans. With current loan programs, the life of the loan is five to ten years, and the minimum payment is $50.00 per month. Generally, customers prefer to get a loan from the City rather than go to a bank, even though the interest rate is the same. Councilman Schueler expressed concern over the amount of money the rate payers will be asked to pay in order to continue the conservation program. He suggested a survey be done to obtain input from the citizens. Director Titus stated that industry has indicated it does not wish to pay for conservation as it has its own source of funding for conservation measures. Councilmember McKeown noted that the memo states limited activities would require a budget of $125,000, and she inquired how many employees that would involve. Mr. Maike stated this would be 2.5 employees, or a 50% staff cut. Councilmember McKeown asked if other cities had conservation staff, and Director Titus replied affirmatively, as they had been mandated by Bonneville. He then went on to explain the mandate, what it covered, how it saved money through decreased power usage, and when it may possibly end. Joe Michalczik expressed concern over the City being in the banking business by giving loans, and people losing jobs through downsizing. He felt the City had a commitment to provide service to the customer, but also had a commitment to find transitional employment for displaced conservation staff Councilman Schueler agreed with Mr. Michalczik and reiterated that the question should be put to the people. Councilmember McKeown stated that most people did not respond to a survey, and therefore, it would not be a helpful tool in the decision-making process. Mr. Michalczik agreed, and stated most people only responded to surveys when they felt positive; therefore, responses leaned heavily in that direction. Further discussion followed regarding effective wording of survey questions. At Councilman Schueler's request, Director Titus explained that, at the present time, staff is only asking the Committee what information it felt it needed in order to make a decision regarding the conservation program by April, 1996. Councilmember McKeown stated she would like to see the City get out of the loan business, justify 2.5 conservation employees, and not have a survey. She felt the citizens would not have all the facts necessary to answer the survey questions. She felt the Council was a representative form of government, and it was the Council's job to make this decision. Discussion followed regarding the success and/or failure of conservation measures taken through this program in the past, and whether or not a survey would be an effective tool in making the decision of continuing the conservation program. Councilman Braun noted that he has been a participant in this program, and it was convenient to go to one place to get conservation advice and complete the loan process. Councilman Schueler again stated he felt a survey should be sent out, as the people have the -2- Utility Advisory Committee October 9, 1995 right to respond. Chairman Myers concurred, and stated it could be inexpensive as it could go out with the utility bills. Councilman Braun also felt a survey would be appropriate providing some background information went out with it. Further discussion ensued regarding who would draft the questions, and how the survey would be delivered to the residents. Joe Michalczik stated he did not support a survey, as he felt the UAC and City Council should be able to make this decision with information provided by staff. Sending out a survey is asking people to make a decision without knowledge of the topic. A lot of research would be necessary in order to respond knowledgeably. Mr. Michalczik stated that the Committee and the Council are best equipped to make this decision, and will be making a much more difficult decision when it comes to the power rates. Councilmember McKeown felt that if people were asked if rates should be raised 5% in order to offer conservation loans, the answer would be no. After further brief discussion, Councilmember McKeown moved that City Light not conduct a survey. Joe Michalczik seconded the motion. Discussion followed, and Councilman Braun stated that the average citizen wants a say in rate increases. Councilmember McKeown reminded him that a public hearing is conducted prior to rate increases, which would give the citizens a chance to address the issue. A vote was taken on the motion, which carried by a majority, with Councilman Schueler and Bill Myers voting in opposition. Ken Maike will bring more details regarding the various programs currently offered to the next meeting, as well as information regarding savings as a result of the programs. B. City Light Heat Pump Conservation Manager Maike reviewed the information provided in the packet. The City would offer loans to pay for heat pump installations and the monthly loan payment would be about the same as the savings realized by having a heat pump rather than an oil or electric furnace. The target audience would be those people who are in need of furnace replacement. Discussion followed regarding the benefits of heat pumps over other forms of heat. Councilman Schueler moved to recommend for Council approval that City Light work on a proposal to offer $250 rebates and City/BPA loans for the installation of heat pumps. Councilmember McKeown seconded the motion, which carried unanimously. C. Update on Regional Electric UtiBty Issues Light Director Titus distributed an issue paper to the Committee for its review. There was no discussion, nor action taken on the issue. -3- Utility Advisory Committee October 9, 1995 D. Review Commercial Wood Waste Ordinance Public Works Director Pittis clarified that the bum ban is not currently in effect, may not ever go into effect, and the purpose of this Ordinance is to take advantage of current opportunities at the landfill. Bob Jones, Solid Waste Superintendent, stated that commercial customers choose to bring compostable materials to the landfill, which boosts chipping costs. At its last meeting, the UAC directed staff to draft an ordinance to establish rates for commercial debris capable of being composted. The draft ordinance was included in the packet, and reviewed by Mr. Jones. He stated that this Ordinance will not apply to anyone doing yard work for residential customers. Discussion followed, and it was the general consensus that section I of the Ordinance, under 13.56.020D(2)a. should read "a. $20.00 per ton for loads transported to the landfill in a truck larger than 3/4 ton and/or a trailer longer than eight feet." This will be corrected prior to being taken to Council. Joe Michalczik moved to recommend the City Council adopt the Ordinance as amended. Councilman Schueler seconded the motion, which carried unanimously. Modification of Utility Deposit Policy to Allow Property Owners to Require Deposits be Collected from Tenants Scott Kenyon, Customer Services Manager, reviewed the information provided in the packet. Councilman Schueler felt the City should not be involved in credit allocation. Landlords should collect their own utility deposits and not involve the City. Chairman Myers concurred with this statement. Mr. Kenyon informed the Committee that a decision made by the 9th Circuit Court of Appeals may affect City lien rights. This will be brought up at the next meeting, after the City Attorney has obtained further information. Mr. Kenyon requested this item be tabled until the next meeting when more information will be available. The Committee agreed; the item was tabled. Credit Applications and Credit Approval as a Condition of Issuing Receivable Accounts Deputy Clerk Hagar distributed corrected copies of the Ordinance. Customer Services Manager Kenyon reviewed the information provided in the packet. Superintendent of Solid Waste, Bob Jones, noted that passage of the Ordinance would be a good approach to eliminating unpaid landfill bills. At Mr. Michalczik's request, Mr. Kenyon -4- Utility Advisory Committee October 9, 1995 explained that an individual can be set up with an account within two days, a corporation or business will take at least five days, as it takes three days to get the credit report back. After brlefdiscussion, Joe Michalczik moved to recommend passage and implementation of the revised Ordinance to the City Council. Councilmember McKeown seconded the motion, which carried unanimously. V. Other Business: Councilman Schueler asked about the makeup of the Committee, as he felt increased representation for the citizens was needed. He also requested information regarding the purpose of the Committee. Deputy Clerk Hagar offered to research this information and place it on the next agenda. VI Late Items: None. Next Meeting: The next meeting of the Utility Advisory Committee will be held on Monday, November 13, 1995, at 4:30 p.m. V/L Adjournment: The meeting adjourned at 6:31 p.m. Chairman Deputy City Clerk -5-