Loading...
HomeMy WebLinkAboutMinutes 11/15/1993UTILITY ADVISORY COMMITTEE Port Angeles, Washington November 15, 1993 Call to Order: Mayor Hallett called the meeting to order at 4:30 p.m. II. Roll Call: Members Present: Members Absent: Jim Hallett, Gary Braun, Joe Michalczik, and Richard Wight. Thomas Hunt. Staff Present: J. Pomeranz, C. Knutson, C. Hagar, J. Pittis, B. Titus, K. Godbey, S. Hursh, S. Kenyon, K. Ridout, and B. Jones. III. Approval of Minutes: Councilman Braun moved to approve the minutes of the October 18, 1993, meeting as written. The motion was seconded by Joe Michalczik and passed unanimously. IV. Discussion Items: A. Request for Change in Solid Waste Rates by Lake Beaver Mayor Hallett reviewed the information provided by the Public Works Department. Mr. Beavers was invited to attend this meeting to express his concerns and opinions on people having to pay for garbage pick up when no garbage is generated. Mr. Beavers lives in an area that was annexed to the City of Port Angeles five years ago. Because of the five year delay in receiving City services after annexation occured, Mr. Beavers has only recently discovered that he will be charged a monthly fee for this service whether he uses it or not. Mayor Hallett inquired if the City had the legal ability to exempt people from this charge. Attorney Knutson replied that the State statute allows the City to have mandatory garbage service, but he is not aware of anything that requires it. The City would have to establish a reasonable basis for any exemption, however. -1- Utility Advisory Committee November 15, 1993 Councilman Wight informed the Committee that the City of Seattle has a Zero Generator Rate which was established some years back. However, they also have "refuse cops" to administer it. He didn't think that Seattle exempted non-users from the fee entirely, but rather gave them a very reduced rate and these people were able to use the recycling services. Mr. Beavers felt that it should be a very reduced rate if someone has no garbage to be picked up. That is the point he is trying to make. He felt that making someone pay for garbage pick up, whether they had any or not, was discriminatory. Mr. Beavers goes to the landfill only once or twice a year. It only costs him $10.50 to go to the landfill as opposed to over $190 per year for pick up, when he has nothing to pick up. He does not have the money to pay this fee as he is on disability with a Iow income. Mr. Beavers wants to be exempted from solid waste rates as he generates no solid waste. Mayor Hallett requested Public Works look at the rate components to see if zero refuse generators like Mr. Beavers can receive a financial break. Director Pittis explained that the main concern with this is how to administer it. Superintendent Jones informed the Committee that Mr. Beavers is not the only one to express concern over this matter. People who go to warmer climates for the winter or are on extended vacations are still paying a monthly solid waste charge even though they are not generating any refuse. Manager Pomeranz reminded the Committee that whatever is done is going to impact the rest of the rate payers. If 500 customers are no longer paying their rates, everyone else's rate is going to have to go up in order for the City to make its bond payments and meet its obligations. Councilman Braun agreed. There is a cost to the City whether anyone generates refuse or not. Mr. Beavers felt that most other people create a lot of garbage. He doesn't; therefore, he should not have to pay for what other people do. Mr. Beaver felt that there would be fewer people working and less equipment needed for pick up and everyone could be charged a lower rate if the City offered a break to zero garbage generators. Councilman Wight felt that this was a very difficult problem to solve. The cost goes on even if the landfill is no longer needed. He compared this charge to the Medic I fee where everyone is charged even though most of them have never used this service. He went on to state that if you have 20,000 people using the system generating anywhere from 80 gallons a week down to 2 gallons a week, the City has no way to give a variable rate because there is no way to police each trash container. Joe Michalczik reminded the Committee and Mr. Beavers that not very many years ago, residents could take things to the landfill free of charge. However, to meet State and Federal regulations, the City was forced to spend a large amount of money at the landfill, not for the current refuse, but due to the garbage that came in over the past ten years, regardless of who put it there. This became a problem for all the residents of the City -2- Utility Advisory Committee November 15, 1993 and the County. This has become a large part of the current rate. The City is also required to build a reserve fund for the future. Labor for current trash pick up is a very small portion of the current solid waste rates. Anyone who has used the landfill over the past ten years has a debt to pay. Mr. Beavers claims he cannot afford to pay for this service, does not want this service, and does not need this service. He informed the Committee that he will not pay for it as he does not know where he would find the money to pay for it. He reiterated that he will not pay this rate as he does not have garbage. Director Pittis informed the Committee that he and his staff will look into this to see what kind of relief might be offered for this problem. Mr. Beavers will be kept informed of the progress being made on this problem. If this results in a change, it will be retro- active to the time when the City started collecting trash in Mr. Beavers' area. Councilman Wight informed Mr. Beavers that the UAC does not have the authority to waive rates, they can only advise Council on these matters. B. Solid Waste Rates Mayor Hallett reviewed the information provided by the Finance Director. Finance Director Godbey reminded the Committee that, as Mr. Michalczik stated earlier, the City does have fixed costs. Regardless of how much refuse is generated, the fixed costs still remain. Last year bonds were sold to construct the landfill cell. Coincidentally, the City got a letter from FAA saying that they were going to shut the landfill down in five years. The City could not issue the bonds for more than a five year period. Basically, this has doubled the debt service. Director Godbey went on to explain how the rate increases were developed and why. The City is reserving about $400,000 per year in order to have $2 million in reserves by the end of 1998 for closure of the current landfill, as required by State law. Director Pittis explained that it will cost about $200,000 a year for the next 30 years, by statute, to monitor all the gas, leachate, etc. around the landfill. Even if the City vacated the area and did not operate it as anything, it will cost approximately $200,000 per year to monitor the environmental aspects. In the past the solid waste rates were meeting the tonnage costs, but there was no sinldng fund for the closure expenses. If a solid waste disposal or collection district was established by the County, those rates could possibly be leveled out because everyone would be mandated to participate in the disposal district. Director Pittis distributed a memo answering questions which had been posed by Mr. Michalczik regarding longhauling fees. Superintendent Jones explained that the cost for the County to longhaul trash would be -3- Utility Advisory Committee November 15, 1993 whatever it cost them to get it into the trailers, which they must do now to get it to the City's landfill, plus about $50 - $60 per ton. Councilman Braun inquired if the City had received any more information on burning and generating electricity. Superintendent Jones replied that this is probably the most expensive alternative because of the hardware involved to perform this operation. Director Godbey inquired as to whether or not the City had a flow control ordinance. Superintendent Jones replied in the negative. The contract that the County has with Olympic Disposal, who runs the transfer station for the County, states that all the garbage from the Lake Creek, Blue Mountain and Clallam Bay transfer stations will come to the City of Port Angeles landfill. The contractor can request that that material go elsewhere, but they must get County approval to do that. Director Pittis pointed out that there are some current appeals and court cases having to do with flow control ordinances and whether they are constitutional. Joe Michalczik asked for the pros and cons of having a solid waste district formed. Superintendent Jones replied that it would give an avenue to accumulate money from County residents to help pay for the landfill closure and post-closure operations. If the City has a transfer station at the landfill which performs the same function as the landfill performed and the County continues to bring their refuse to that transfer station, then things will remain the same. The City will continue to accumulate funds from everybody in the County. There are no federal funds available at this time to help Port Angeles pay for the landfill closure. Mr. Michalczik then asked if the County had any legal requirement to form a solid waste district. Manager Pomeranz said that the County has no mandatory requirement to form this district. Manager Pomeranz went on to advise the committee that the County informed him that they have garbage to dispose of and the City provides a service. Councilman Wight reminded everyone that four or five years ago there was a series of meetings on forming a solid waste district. Councilman Braun asked if thought had been given to a multicounty district such as Clallam, Jefferson, and Grays Harbor. Superintendent Jones replied that those counties plus several others are already tied into long term contracts to longhaul their refuse. Further discussion followed on longhauling and the current rates for same. Mr. Michalczik asked how long cell/?2 has been in operation, and how long it should last. Superintendent Jones responded that it has been in use almost one year, and will definitely last the five years planned for. Mr. Michalczik inquired whether this cell could last beyond the five years. Superintendent Jones replied that it could last seven years easily; however, it would need the plastic liner extended. A diagram of the landfill cells was drawn to explain the extension. Due to compaction, them will be little if any settling of the landfill cell. -4- Utility Advisory Committee November 15, 1993 Councilman Wight asked if the increase could be ratcheted, rather than all at once. Superintendent Jones answered that the increase had been spread over two years instead of all at once. Director Godbey advised the Committee that the City does not have the flexibility to raise the rates only 12% this year and 12% next year. Director Pittis advised the Committee that the FAA will be discussed when the report from Parametrix is brought back to the UAC. Manager Pomeranz assured the Committee that the City has not forgotten about the FAA. For the past six months the Solid Waste Advisory Committee, which is comprised of City as well as County people, has reviewed all the options for the future of the City's waste disposal. The report is forthcoming and will be something for the new Council to deal with. Mr. Michalczik inquired if the City collected utility tax on the tipping fee. Manager Pomeranz responded that yes, it was 7% which is included in the figures presented tonight. Mayor Hallett felt that the focus should be on the fact that the monthly increase is only about $3.70 for a City resident, which sounds better than 23%. He also stated that the focus should also be on a year from now, when increases will be a modest 2% to 4%. Councilman Wight felt there were things that needed to be done, even if they are only symbolic. He suggested laws regulating what could and could not be placed in dumpsters and fewer garbage pick ups per month. He wants all avenues explored to find ways to make pick up and tippage as lean as possible. Director Pittis agreed. He stated that once the future of the landfill is decided, the City can get into those other areas of discussion. However, these decisions must be made on a step-by-step basis. Councilman Wight felt that if the landfill can be stretched to eight years, and if the longhauling costs go up at a reasonable inflation rate, then the City's best bet would be to look at extending the life of the landfill as long as possible. Director Pittis pointed out that the handout he had distributed earlier showed that the County's waste, percentage wise, has gone up dramatically. Joe Michalczik inquired as to how the County is notified of the rate increases. Superintendent Jones replied that they know about it already. Last year a letter was sent to them which contained rate increases for both years. Mayor Hallett wanted a letter or memo to go out to them to remind them that the new rate increases will be going to Council at the November 16, 1993, meeting. Director Pittis retrieved a copy of the letter sent to the County last year to verify that it contained the rate increases for both years, which it did. Olympic Disposal has also received a letter advising of the rate increases. Councilman Wight moved that the Committee recommend to the City Council that the ordinance be adopted. Councilman seconded the motion, which carried unanimously. -5- Utility Advisory Committee November 15, 1993 C. Show and Tell of Water, Sewer, Storm Records Mapping This item was deferred to a future meeting due to time constraints. D. Revised Fees for Standard Residential Water Service Director Pittis reviewed the information he provided regarding this issue. In previous resolutions, the City had not defined residential versus commercial use. It simply stated that anything over one inch had to be done by an estimate. Now, the fire department has requested that a one inch line be established as being standard service. This allows the water flow necessary to operate the sprinkler system. To accomplish this, the service construction charge must be increased, as this fee is what pays for the meter and the line. Director Pittis went on to inform the Committee that there will be an addition to this resolution that would provide that if a water service connection has not been requested within 12 months of paying the water service fee(s), then any increased fee effective at the time of the installation shall be paid before the connection is made. He explained that in the past the City has gotten some requests for service that were 15 to 18 months old, when the City went to put it in, the actual cost had gone up to provide that service because the customer had waited so long. He is requesting that this language be added to the resolution. Councilman Braun moved to accept the resolution. A brief discussion followed on the different meter sizes. Joe Michalczik seconded the motion, which carried unanimously. E. Senior Citizen's Average Payment Plan Customer Service Manager Kenyon reviewed the information on the Senior/Disabled Citizens Discount Program. Councilman Wight moved to adopt the recommendation that the City discontinue the requirement that discount recipients be on an average payment plan, and forward it to Council. Joe Michalczik seconded the motion, which carried unanimously. F. Undergrounding Light Director Titus reminded the Committee that this item was discussed at UAC recently, and he was requested to return with suggested changes in the Line Extension Policy. He gave a brief explanation of the proposed changes. The Line Extension Policy -6- Utility Advisory Committee November 15, 1993 will be modified to retain the service credit for extensions going underground, but eliminated for overhead extensions. This will basically effect contractors, not private homeowners. Normally the contractors come in to the Light Department and they will be given the overhead and undergrounding costs and it is up to them to choose which route they wish to take. A brief discussion followed on the new Comprehensive Plan and how it could demand all new line extensions be underground. Councilman Wight moved to support the revised Line Extension Policy for recommendation to the City Council. Councilman Braun seconded the motion, which carried unanimously. G. Customers Service Wires and Undergrounding of Landlocked Facilities Director Titus reminded the Committee that this issue was also raised at the last UAC meeting, and the Light Department was requested to return with a policy revision that would clarify the question of costs to be incurred by existing customers in landlocked facilities. A revised Service Extensions from Landlocked Facilities Policy was reviewed. An explanation and discussion of the new policy followed, with diagrams drawn to demonstrate to the Committee how landlocked areas would be serviced with the least amount of disruption. A discussion on easements for servicing lines, and the use of conduits to protect underground cables ensued. Councilman Braun moved to support the revised Line Extension Policy for Landlocked Facilities for recommendation to the City Council. Joe Michalczik seconded the motion, and after a brief discussion a vote was taken on the motion, which carried unanimously. H. The New BPA - Informational Only Director Titus reviewed the issue paper he prepared on the New BPA to bring the UAC up to date on what affect this will have on City Light. Service unbundling is where utilities will see the most significant impacts. Being the City of Port Angeles is located at the end of the system, the status quo is the best that can be hoped for. A discussion of possible deregulation followed. Joe Michalczik informed the UAC that due to low rainfall the hydrogeneration was down and Daishowa received a power bill of over $800,000. Councilman Wight related to UAC that he went through the Satsop nuclear plant last Friday. This plant is approximately 76% complete. People are employed here just to give tours and encourage people to ask to have the plant completed and put into -7- Utility Advisory Committee November 15, 1993 operation. Steve Hursh commented that he thought it cost $10 million per year to keep this plant mothballed. Sixty people are employed for maintenance and security. We are all paying for this through our BPA rates. Further discussion followed on the money seemingly wasted by the BPA. Next Meeting: The next meeting of the Utility Advisory Committee will be held on Monday, December 13, 1993, at 4:30 p.m. VI. Adjournment: The meeting was adjourned at 6:32 p.m. Deputy City Clerk -8-