HomeMy WebLinkAboutAgenda Packet 01/07/2002 3:DD
ABENDA
Ii. ~lL P-AL1
UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
December 10, 2001
I. Call to Order: ,~1~'~
Chairman Reed called the meeting to order at 3:00 p.m.
IL Roll Call:
Members Present: Chairman Reed, Mayor Doyle, Councilman Campbell, Allen Bentley,
Councilman Williams
Members Absent: None
Staff Present: Craig Knutson, Glenn Cutler, Yvonne Ziomkowski, Gary Kenworthy, Tom
McCabe, Steve Sperr, Karen Asquith, Cate Rinehart
Others Present: None
IIL Approval of Minutes:
Chairman Reed asked if there were any changes or additions to the agenda. An amendment to the
landfill contract for the City of Sequim was added as a Late Item. Chairman Reed asked if there were
any additions or corrections to the meeting minutes of November 13, 2001. None were given. Mayor
Doyle moved to approve the minutes. Allen Bentley seconded the motion, which carried unanimously.
IV. Discussion Items:
A. Adjustment to Daishowa's Monthly Basic Charges
Chairman Reed requested Vice Chairman Williams lead this item due to a possible conflict of interest
indicating that he would be part of the discussion representing Daishowa's interest. Yvonne Ziomkowski,
Finance Director, pointed out that the Utility Advisory Committee addressed the issue of a partial rebate of
electric utility taxes to Daishowa America at the June 11, 2001 meeting. To facilitate the rebate staff had
concluded the simplest method would be to reduce the monthly basic charge. A short discussion followed.
Allen Bently moved to recommend City Council eliminate the Monthly Basic Charge to Daishowa
America for one year beginning October 1, 2001, for a total amount of $70,440. Councilman
Campbell seconded the motion, which carried unanimously.
B. Water System Plan
Steve Sperr, Utility Engineer, reviewed the ten parts of the plan indicating the Department of Health required
an update every six years (the last one was in 1995). Improvements will be needed in the distribution system
Utility Advisory Committee
December 10, 2001
fire flow and other, pumping, storage, telemetry, planning, and treatment. A discussion followed with some
questions regarding financing the improvements. Mr. Sperr indicated the Water System Plan would be
brought back to the committee when it is finalized.
No action taken. Information only.
C. Minimum Fee at the Port Angeles Landfill
Tom McCabe, Solid Waste Superintendent, explained that volume of self-haul had increased on Saturday
and Monday to the point that the City would either need to hire more help or raise fees to discourage small
haulers. A discussion followed with concerns raised concerning an increase in illegal dumping. Mr. McCabe
was requested to discuss this with the County solid waste committee and to return to the UAC with further
data.
No action taken. Tabled for future review.
V. Late Items: Amendment to the Landfill Contract for the City of Sequim
Tom McCabe, Solid Waste Superintendent, emphasized thc Sequim contract for municipal solid waste
tipping fees is reviewed and renewed annually. Thc only change in the amendment is that if thc contract is
assigned to a private collection company the company will still get the same rates. A short discussion
followed.
Councilman Campbell moved to recommend City Council authorize the City Manager to sign the
contract amendment with the City of Sequim. Allen Bentley seconded the motion, which pass
unanimously.
VII. Next Meeting:
The next meeting will be held January 7, 2002 at 3:00 p.m.
VIIL .4djournment:
The meeting adjourned at 4:05 p.m.
Dean Reed, Cchairman Cate Rinehart, Administrative Assistant
12/11/01
N:XPWKS~LIGHTxCONS\CATEXdec 10meet.wpd
Adopted by Utility Advisory Committee
March 10, 1997
BY-LAWS
UTHATY ADVISORY COMMITTEE
I P~SE AND DUTIES.
The propose and duties of thc Utility Advisory Commit[cc of the City of Port Angeles shall bc as set forth in
Chapter 2.68 of the Pc~t Angclas Municipal Code, a copy of which is attached to these By-Laws and incoq~orated
herein by this ~ferenea.
II MEMBERSHIP AND ORGANIZATION.
The membership and organization of the Utility Advisory Committee of the City of Port Angeles shall be as set
forth in Chapter 2.68 of the Port Angeles Municipal Code.
NOMINATION AND ELECTION OF OFFICERS.
Nomination ofeleetivc officers shall be made from the floor at the annual cleetion meeting, which shall be held at
~ first regular meeting of each year. Thc elec~tJon ~ follow immediately thcreal~er. Officers shall be nominated
and elected fr~n thc rn~nbers ofth~ Committee only. A nomJnes receiving a majority vote of those present at the
election meeting shall bc declared elected. Vacancies in elective offices shall be filled immediately by regular
election procedure for thc remainder of the year.
IV UTIE$ O CER$.
A. ~ The ChaLrman shah preside at all meetings of the Utility Advisory Committee and shall call
special meetings when neeessary or required to do so. The Chairman shall have the privileg~ of
discussing all matters before the Utility Advisory Committee and voting thc~on. Thc Chairman shah
have all thc dutic~ nommlly confcned by parli~mcntzry usage on such officer and shall per~orm such other
dufias ~s may be ordered by the Utility Advisory Committec, except as otherv(~so provided in these By-
Laws or City Ordinances.
13. V~cc-Cha/rman. The Vicc--~ shall ass~w,c the duties and powers of the Chairman in his absence.
If the Chairman and Vice-Chairman are both absent, the Utility Advisory Committee members present
may elect a temporary Cha'uman by a majority vote of thoso in attendance.
-1-
v
A. Regular Meetings. The regular money meeting for the Utility Advisory Committee shall bc held on the
Monday after the fwst Tuesday of each month a! 3:00 P.M. in the Por~ Angeles City Hall, except as
otherwise designated by the Utility Advisory Committee.
B. Ordc-r of Business.
(1) Call to order by Chairman.
(2) Roll call.
(3) Approval of minutes of preceding meeting.
(4) Regular busines~
(5) Late items.
A. Parliamemm'v Procedure. Procedures in Utility Advisory Commitlee meetings shall be governed by
Robe,s Rules of Order, Revised (1979 edition), unless otherwise provided by these By-Laws.
B. Votin£. Decisinns of the Utility Advisory Comn'~ittee shall bc by a majority vom of those present. Ifa
m~mber is pi~sont but does not vote, such member shall be detoxnined to have voted '~e.s~ at the time
the vot~ is takon.
These By-Laws may be amended at any rel~uler meeting by the affn'mative vote of three members of the Utifity
Advisery C~mmittee, provided thal the proposed amendment has been submitted in writing at a p~vious mee6nlg.
AT.,~2
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CHAPTER 2.68
UTILITY ADVISORY COMMITTEE
Sections:
2.68.010 Purpose.
2.66.020 Committee Created.
2.68.0:30 Membership.
2.68.040 Organization.
2.68.050 Duties.
2.68.010 Purpose. The declared purpose of this Chapter is to provide a mechanism for the City
Council of Port Angeles to obtain the benefits of
recommendations, advice, and opinions on those matters altec[inA City utility policy and operations from
a committee which may devote the necessary study to careful consideration or. such. ma, tie. rs and which
will increase citizen participation and input to local government. (Ord. 2489 §1, 5/27/88)
2.68.020 Committee Created. Thgre is hereby created a Utility Advisory Committee which shall
consist o[ five members. (Ord. 2489 ¢1, 5/27/88~
2.68.030 Membership.
A. Procedures.
1. Three Council members of the Utility Advisory Committee shall be appointed by
the Mayor from the seven members of the City Council.
2. Two citizen members of the Committee shall be setected and appointed in
accordance with the City Council's Rules of Procedure. One of these two members shall represent [he
industrial customers of the City's utilities and the second member shall represent all other customers
of the City's utilities.
3. Citizen members may be removed [rom office for reasons deemed appropriate by
authority, including, not limited to, malfeasance in office or neglect of duties.
the appointing but
· Criteria.
Criteria used in selecting citizen members shall include, but not be limited to, the
following:
1. Members shall be residents of the City.
2. Members shall have displayed an interest in the work of the Committee.
3. Members shall be selected in accordance with the Equal Opportunity guidelines.
4. Members shall be appointed without regard to political afl,ha[ion.
5. Members shall not be City employees.
8/21)t)1 2 - 48
Terms.
Terms for citizen members shall be as follows:
I A full term of office shall be four years.
2. As of December 31, 1997, the term of office of the member representing industrial
customers shall be extended to December 31, 1999, and the term of office of the member representing
other customers of the Citylls utilities shall be extended to December 31, 2001, after which the two
members shall be considered to have served two full terms.
3. The term of office shall start on i~arch is{ of the year in which the appointment
is made, provided that appointments to an unexpired term shall start as designated in the appointment.
4. Members of the Committee may be appointed to succeed themselves; provided that
no person shall be allowed to serve more than two eonsecu'tive four (4) year terms,
5. Appointments to fill an unexpired term shall be only for the remainder of that
term, after which a reappointment may be made.
6. Members shall serve without pay. (Ord. 3051 93, 5/26/2000; Ord. 2975, 11/28/97;
Ord. 2489 §1,
2.68.040 Organization.
A. The Committee shall elect/ts own chairman and vice-chairman from among its members
and create and fill such other offices as it deems necessary for efficient operation. It sh~l adopt rules
for the transaction of business and keep written record of its meetings, resolutions, transactions, tindings
and determinations, which record shal[be a public record.
B. The Committee shall hold meetings as deemed necessary by the City Council to carry out
its duties. There shall be a fixed time and place of meetings which shall be made known to the public,
and all regular sessions of the Committee shall I~e open to Ce pgbli9. ?hree members shall constitute
a quorum for the conduct of official business. (Ord. 2489 §1, 5/27/88.)
2.68.050 Duties. The Committee shall be responsible to the City Council for its duties and
actions. The duties of the Committee shall include, but not be limited to, the following:
A. To give advisory recommendations to the City Council on matters relating to City utility
policy and operation and all other matters as the City Council may deem appropriate.
B. To adopt bylaws, rules and regulations consistent with the laws of [he State ol Washington
for conducting the meetings of the Utility Advisory Committee.
C. To maintain and preserve the co.n, fidentiality of information discussed in executive session
pursuant to Ch. 42.30 RCW and [he City Council s Rules of Procedure. (Ord. 2489 §1, 5/27/88.)
2 - 49 8/2001
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: January 7, 2002
TO: UTILITY ADVISORY COMMITTEE
FROM: Larry Dunbar, Power Resources Manager
SUBJECT: Cable Television Franchise Formal Renewal Proposal Denial
Summary: The next step of the cable television franchise formal renewal process is to either
accept or render a preliminary decision to deny the Cable Operator's formal renewal proposal.
This step is required unless an informal proposal is negotiated by the first week of February
2002. An informal negotiation is being held concurrent with the formal renewal process.
Recommendation: That City Council renders a preliminary decision to deny the Cable
Operator's formal renewal proposal and authorize informal negotiation to continue
through May of 2002.
Background/Analysis: On December 15, 1987, City Council approved a fifteen-year non-
exclusive cable television franchise that will expire on September 30, 2003. On October 3, 2000,
Northland Cable Television, Inc. (Cable Operator) requested its franchise be renewed in
accordance with the formal procedures of the Cable Communications Policy Act (Act). On
October 17, 2000, the City Council approved a professional services agreement with
Metropolitan Communications Consultants (MCC) that included a cable television and
telecommunications public proceeding and development of a draft cable television franchise for
renewal negotiations.
On May 22, 2001, the City Council approved professional services agreements with MCC and
the law firm of Winstead, Sechrest & Minick (WSM), for technical and legal services during the
cable television franchise renewal negotiations. On August 31, 2001, MCC completed the Cable
Television and Telecommunications Needs and Interests Report that was provided to the Cable
Operator. On September 18, 2001, Council accepted the Cable Television and
Telecommunications Needs and Interests Report and authorized staff to request a formal
proposal from the Cable Operator to reasonably meet future cable-related needs and interests as
identified in thc report. On October 19, 2001, the Cable Operator delivered its formal renewal
proposal to the City. The City provided public notice that it received the Cable Operator's
formal renewal proposal on November 11, 2001.
January 7, 2002
Utility Advisory Committee Memo
RE: Cable Television Franchise Renewal Formal Proposal Denial
Page 2
In accordance with the Act the City must either accept or provide a preliminary decision to deny
the Cable Operator's formal renewal proposal by February 19, 2002. If the City were to render
a preliminary or formal decision to deny the formal renewal proposal, upon Cable Operator
request or City initiative, the City Council would conduct an administrative proceeding. An
administrative proceeding is an opportunity for the Cable Operator to present evidence on
whether its formal renewal proposal is reasonable to meet the future cable-related community
needs and interests. At the completion of the administrative proceeding, the City would either
grant or affirm denial of the formal renewal proposal. Any denial would be based on one or
more of the following adverse findings:
1. The Cable Operator's service quality has not been reasonable in light of community needs.
An adverse finding was made in the Cable Television and Telecommunications Needs and
Interests Report.
2. The Cable Operator has the financial, legal and technical ability to provide the services,
facilities, and equipment as set forth in the Cable Operator's proposal. This assessment has
not been made on the formal proposal.
3. The Cable Operator's formal renewal proposal does not reasonably meet the future cable-
related community needs and interests, taking into account the cost of meeting such needs
and interests. A preliminary assessment of this adverse finding is summarized in the
following paragraphs.
A preliminary assessment of the Cable Operator's formal renewal proposal includes a total of
twenty-one adverse findings. A summary of the preliminary assessment is included as
Attachment "A". MCC and WSM recommend that the City should issue a preliminary decision
to deny the Cable Operator's formal proposal. Their recommendations are included as
Attachment "B". Based on the preliminary assessment and recommendations from the City's
technical and legal consultants, Staff recommends that a preliminary decision be made to deny
the Cable Operator's formal renewal proposal. This step is required unless an informal proposal
is negotiated by the first week of February 2002. The formal renewal procedures will be
terminated after an informal proposal is negotiated and the renewal is granted. A copy of the
Cable Operator's formal renewal proposal is available upon request or from the City's website.
If a franchise is not negotiated under the informal method by the end of May 2002, Staff will
return to the UAC on June 10, 2002 asking for a recommendation to the City Council that it
"formally deny" the Cable Operator's formal renewal proposal. Extension of the informal
negotiation timeline should provide ample opportunity for both parties to refine various terms
and conditions. A summary of the formal and informal franchise renewal timelines and
milestones is included as Attachment "C".
A copy of this memorandum was provided to the Port Angeles Works! Committee and the
Govemment and Educational Access Advisory Committee
Attachment "A'
Preliminary assessment of formal renewal proposal adverse findings
Formal Preliminary assessment of formal
proposal Cable-related community needs and interests renewal proposal adverse findings
Subscriber The minimum analog channel capacity for a 1. Channel capacity of only 550
Needs and contemporary cable system including at least 70 MHz.
Interests activated channels should bc 750 MHz. The City 2, Omission of requirement for
should establish minimum system performance broad programming categories.
standards and minimum programming requirements 3. Omission of requirements for
for local, regional and national news and sports, local and educational
programming.
Franchise To ensure compliance with the terms of the franchise, 4. Omission of lesser violation
Violations short of franchise termination, liquidated damages sanctions in lieu of franchise
should be paid to the City for Franchise violations, termination.
Payment of liquidated damages should be secured by a 5. Omission of letter of credit or
letter of credit, other financial means to secure
payment of liquidated damages.
Term A basic term of four-years is recommended if there is 6. A fifteen-year basic term was
no new capital investment by the Cable Operator, proposed without a cable plant
specifically including an upgrade to 750 MHz, a upgrade.
broadband capable open access network, cable modem 7. A six-year extension was
service, and a dark fiber institutional network. A six- proposed (total term of 21 years)
year extension is recommended subject to completion for a capital upgrade within
and City acceptance of the upgrade within nine twenty-four months after the
months after the effective date of the initial four-year effective date of the renewed
term of the renewed franchise. The maximum term franchise including:
recommended is fifteen years. · Broadband capable open
access network
· Cable modem service
· Dark fiber institutional
network
· Channel capacity of only 550
MHz
8. Authorized uses of the 1-Net are
not explicit and subject to
separate agreement to be
negotiated.
9. No I-Net warranty provided
Access The franchise should require up to three access 10. Provides a maximum of two
Channels channels, with the capability of up to five access access channels.
channels, based on needs and interests over the 11. Does not provide City capital
Government franchise term. The Cable Operator should provide funds to support an adequate
& the City capital funds and other resources for an access channel program.
Educational adequate educational and government access channel 12. Does not provide other resources
system. (staffing, equipment, technical
services) to support an adequate
access channel program.
13. Requires City to establish an
access provider at its expense.
Attachment "A" Continuation
Preliminary assessment of formal renewal proposal adverse findings
Formal Preliminary assessment of formal
proposal Cable-related community needs and interests renewal proposal adverse findings
Franchise Fee Continuation of a 5% franchise fee as permitted by 14. Revision to gross revenue
law is recommended. The franchise fee will be definition that will reduce City
allowed to be a full credit against any public utility franchise fee revenues
tax. significantly below that allowed
by law.
Utility Tax The City does not currently collect a public utility tax 15. Omission of utility taxes. Only
on cable television services. A 6.0% public utility tax the franchise fee is proposed and
(effective rate of utility tax is 1.0%) is recommended would be in lieu of other City
if there is no new capital investment in the cable plant compensation.
upgrade by the Cable Operator.
Compliance The franchise should require the Cable Operator to 16. Reduction of City police powers
with City comply with all other City ordinances, related to regulation of
Police Power construction work in the right-of-
ordinances way.
17. Reduction of City standard
insurance requirements.
Subscriber The proposed subscriber service standards are based 18. Omission of customer service
Service on Federal Communications Commission standards standards for providing written
Standards and and authority granted to the City to adopt additional information to subscribers. (City
Reporting standards. The recommended standards address has unilateral authority to adopt
Requirements installations, service interruptions and other service reasonable standards).
problems, appointments, notices and subscriber 19. Periodic surveys would be
communications, disconnection of service, completed at City expense.
deposits/refunds/credits, rates/fees/charges, and 20. Omission of public relations
privacy protections. Subscribers should be program.
periodically surveyed on programming needs and 21. Omission of requirements for
interests. The Cable Operator should establish a report contents and reporting
public relations program and increase the frequency of frequency.
City reporting.
Attachment "B"
(METROPOLITAN
COMMUNICATIONS
_ CONSULTANTS
Seattle: 6847 McKinle)~ PI. N., Seattle, Washington g8103-5710
Tel: 206.522.6778 Fax: 206.522.6777 www.mcco.com
Tacoma: P.O. Box 88907, Steilacoom, Washington 96388,0907
Tel: 263.589.1770 F~: 253.589.9264
December 20, 2001
Mr. Larry Dunbar
Power Resources Manager
The City of Port Angeles
321 East Fifth Street
Port Angeles, WA 98362-0217
Re: Northland 10/19/01 Formal Proposal - Recommendation to Deny
Dear Larry':
In response to your requesL we are submitting our recommendation regarding City action on Northland
Cable Television's formal proposal for its franchise renewal, dated October 19, 2001. The Cable Act
provides four factors for consideration by the City in connection with evaluation of an Operator's
proposal. These are listed on pages 1 and 2 of MCC's Needs and Interests Report dated August 31, 2001
excerpted below together with MCC's evaluation:
(A) The cable operator has substantially complied with the material terms of the existing frd. nchise and
with applicable law;
~avorab/ed~mttYtoo - substantlg[ comp/iance; see summamj and Ex,S/b/t 1 t)t MCC Report
(B) the quality of the operator% service, including signal quality, response to consumer complaints, and
billing practices, but without regard to the mix or quality of cable services or other services provided
over the system, has been reasonable in light of community needs;
(C) the operator has the financial, legal, and technical ability to provide the services, facilities, and
equipment as set forth in the operator's proposal; and
(Ci¢~ determinat~bn)
(D) the operator's proposal is reasonable to meet the future cable-related community needs and interests,
taking into account the cost of meeting such needs and interests.
(adverse fTmli~zg, - ba.~e'd on proposal.¢llbmitted 10/19/01. 3~t'c(/~' deta//s art, sumt~mrl~ed bi ?roject
Based on an adverse finding in Factors B and D of the four factors prescribed by the Cable Act, we
recommend a preliminary decision to deny the proposal as submitted.
Very truly yours,
METROPOLITAN COMMUNICATIONS CONSULTANTS, tLC
Richard C. T. Li, P.E.
Attachment "B"
NSTEAD
December 26, 2001
direct dial: 512.370.2698
cwest~winstead.eom
City of Port Angeles
Attn.: Mr. Larry Dunbar
321 Eat 5th Avenue
P. O. Box 1150
Port Angeles, WA 98362-0217
Re: Preliminary Assessment of the Franchise of Northland Cable Television, Inc.
("Northland") with the City of Port Angeles Should Not be Renewed
Dear Larry:
I forward you this letter per your request. In accordance with 47 U.S.C. § 546(d) "Basis
for Denial", the City may "issue a preliminary assessment that the [Northland] franchise should
not be renewed". The "formal proposal" was submitted by Northland on October 19, 2001 in
response to the formal request of the City. There is sufficient information to support an adverse
finding of one or more of the factors outlined in Subsection (d) 47 USC § 546 to provide ample
grounds for denial of the renewal. Among them, but not limited to, 'that the cable operators'
proposal of October 19, 2001 did not reasonably meet the future cable-related community needs
and interests, as determined by the City, taking into account the costs of any such needs and
interest. This is consistent with case law on this particular issue in the leading case of Union
CATV, Inc. v. City of Sturgess, Kentucky, 107 F.3~, 434 (Court of Appeals 6th Circuit, 1997).
It should be noted that this is just a "preliminary assessment" of a denial. It does not
conclude the renewal process nor does it preclude continued "informal" negotiations on a new
franchise. The City may initiate or the cable operator may request an administrative hearing on
the preliminary assessment to deny the renewal. That hearing must be concluded before the City
can issue a final written decision denying the cable operator's proposal for a renewal, based upon
the record of the administrative hearing, and with the reasons for that denial stated in that written
decision. There is no specific statutory time frame under federal law for either the administrative
hearing or the formal denial, other than it should be acted upon prior to when the current
franchise expires, and in all instances the City should carefully provide the cable operator
adequate notice, and an opportunity to be heard on the issues.
Sincerely,
CAW:cm
12/28/2001 - 37064-1
Sap-03 Franchise Expires 9/30/2003 Franchise Expires 9/3012003
Aug-03
Jul-03
Jun-03
May-03 o~
O
Apr-03 '~
Mar-03 ~ ~o
Feb-03 ~
~ Jan-03
o Dec-02
~ Nov-02 '--
· '~ Oct-02 <~
~ Sep-02
~ Aug-02
· .~, Jul-02
~.~ ~: Jun-02 ~ City formal decision to deny formal proposal 6/18/02
I.IJ
~ ~ May-02 Z;~ LU2: Informal negotiation conclusion desired by 5/31/02
~ Apr-02 ~
~ o Mar-02 ~
~ d= Feb-02 ~ City preliminary decision to deny formal proposal 2/19/02
Jan-02 0
Dec-01
m:~ Nov-01 Public notice of formal proposal provided 11/11/01 informal negotiation session 11/15/01
~ Oct-01 Formal proposal received 10/19/01
~ Sep-01 City requests formal proposal 9/21/01
~,~ Aug-01 Future cable-related community needs and interests 8/31/01 City delivers informal proposal to Cable Operator 8/21/(
o
~ Jul-01
~ Jun-01
= May-01
Apr-01
Mar-01
Feb-01 City commenced public proceeding 2/24/01
Jan-01
Dec-00
Nov-00
Oct-00 Cable Operator formal renewal request 10/3/00