HomeMy WebLinkAboutAgenda Packet 01/08/2008
Utility Advisory Committee
Public Works Conference Room
Port Angeles, W A 98362
January 8,2008
3:00 P.M.
AGENDA
I. Call To Order
II. Roll Call
III. Approval Of Minutes For December 12, 2008.
IV. Late Items
V. Discussion Items
A. Medic I Utility Rate Adjustment
B. CFL Markdown Promotion Agreement Amendment
C. Energy Champion Agreement
VI. Executive Session
VII. Next Meeting Date: February 12,2008
VIII. Adjournment
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UTILITY ADVISORY COMMITTEE
GUEST SIGN UP SHEET
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Utility Advisory Committee
Public Works Conference Room
Port Angeles, W A 98362
December 11, 2007
3:00 P.M.
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L Call To Order
Chairman Reed called the meeting to order at 3:00 p.m.
IL Roll Call
Members Present:
Chairman Reed, Mayor Rogers, Grant Munro, Betsy Wharton,
Orville Campbell,
Members Absent:
None
Staff Present:
Mark Madsen, Bill Bloor, Glenn Cutler, Scott McLain, Larry
Dunbar, Mike Puntenney, Steve Sperr, Ernie Klimek, Bob
Kajfasz, Kathryn Neal, Cate Rinehart
Others Present:
Paul Lamoureux - Citizen
Shirley Nixon - Center For Environmental Law And Policy
III. Approval of Minutes:
Chairman Reed asked ifthere were any corrections to the minutes of November 13,2007. Mayor
Rogers moved to approve the minutes with corrections as noted. Councilmember Wharton
seconded the motion, which carried unanimously.
IV.
Late Items:
Completion Of Office
Updates
V. Discussion Items:
A. Water Use Efficiency (WUE) Program Goals
Ernie Klimek, Water/Wastewater Collection Superintendent, distributed a handout and gave a
presentation identifying the importance of the stewardship of our current and future water
resources, the history of the WUE, and a summary of the WUE requirements, deadlines, and
reporting standards. The public meeting held November 29,2007 was discussed including
comments from the public. There was a brief discussion.
Mayor Rogers moved to recommend City Council approve a resolution establishing goals
for the 2008-2013 water use efficiency program. Orville Campbell seconded the motion,
UTILITY ADVISORY COMMITTEE
December 11, 2007
which carried unanimously.
B. Amendment No.1 To The Consultant Agreement With CH2M Hill,
Project 07-08
Steve Sperr, City Engineer, gave extensive background information regarding the City's water
system emphasizing the importance of updating the Comprehensive Water System Plan. CH2M
Hill has provided this service in the past with excellent results. There was a brief discussion.
Councilmember Wharton moved to recommend City Council authorize the Mayor to sign
Amendment No.1 to Agreement 07-08 with CH2M Hill, for completion of an update to the
Comprehensive Water System Plan, increasing the Agreement by $235,000.00, for a total
Agreement amount not to exceed $348,000.00. Orville Campbell seconded the motion,
which carried unanimously.
C. UAC Term Limit Discussion
Glenn Cutler, Public Works and Utilities Director, noted that the citizen members of the
committee representing the industrial customers are chosen both by recommendation of the
industrial customer group and City Council's Rules of Procedure. With only one industrial
electrical customer it is recommended the ordinance be amended. A discussion followed.
Councilman Munro moved to recommend City Council amend the ordinance to no longer
limit the citizen member of the UAC representing the industrial customers to two
consecutive terms. Orville Campbell seconded the motion, which carried unanimously with' ;
Dean Reed abstaining.
VI. Late Item: Completion Of Office
Chairman Reed announced that this would be Councilman MUlio's last meeting and thanked
him for his years of dedicated service to the Committee. Glenn Cutler, Public Works and
Utilities Director, also thanked Councilman MUlio on behalf of himself and staff for the
contributions he had made, noting he was one of those individuals who could grasp new concepts
quickly, improvise to find equitable solutions to complex problems, and be accountable for
decisions he made.
Updates
Glenn Cutler, Public Works and Utilities Director, noted two items of interest. He advised that a
consultant had been selected in reference to the EUGA reservoir and that a mutual aid agreement
was being developed throughout the State of Washington regarding the exchange of linemen
during problem weather.
UTILITY ADVISORY COMMITTEE
December 11, 2007
VII.
Next Regular Meeting Date:
January 8, 2008
VIII.
A djornment:
The meeting was adjourned at 4:00 p.m.
Chairman Reed
Cate Rinehart, Admin Spec II
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DATE:
To:
FROM:
SUBJECT:
FORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee MEMO
January 8, 2008
UTILITY ADVISORY COMMITTEE
Dan McKeen, Fire Chief
Proposed Medic I Utility Rate Adjustments
Summary: Staff recently completed a comprehensive Cost of Service Study for the City's
ambulance (Medic I) utility. Based upon the results of the study, staff is proposing a $0.36
monthly residential rate adjustment and a $0.29 monthly commerciallbusiness rate adjustment.
Recommendation: Forward a favorable recommendation to City Council to proceed with
a public hearing and the proposed Medic I monthly rate adjustments.
Backg;roundlAnalvsis: The City of Port Angeles' Medic I program is structured as a utility,
supported through an Enterprise Fund using transport charges, a monthly utility charge, and a
General Fund contribution. The Enterprise Fund is based upon a cost of service approach, with
the first cost of service study completed in 2005. Since that time, the City's ambulance utility
rate that partially supports the Enterprise Fund has had no increases.
The Fire Department, along with the Finance Department, recently completed a comprehensive
Medic I Cost of Service Study for 2008. Based on this study, a $0.36 monthly residential rate
adjustment and a $0.29 monthly commerciallbusiness rate adjustment is recommended for
200812009.
Staff will provide a summary of the cost of service study along with the proposed rate
adjustments during the January 8,2008, Utility Advisory Committee meeting. At this time, staff
will also present the proposed rates for high demand user facilities such as nursing homes and
assisted living facilities.
Staff recommends the Utility Advisory Committee forward a favorable recommendation to the
City Council to proceed with the public hearing and the proposed Medic I monthly rate
adjustments.
Utility Advisory Committee
January 8, 2008
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Port Angeles Medic 1 Utility
2008 Cost of Service Study
Presented by:
Dan McKeen, Fire Chief
Background
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~ v' In 1984, Port Angeles started a
~ paramedic (Medic 1) program as a
~ utility, partially funded through a
~ "flat" monthly fee
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~ v' In 2004, the State Supreme Court
o invalidated the use of a flat
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~ monthly fee
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o .,/ It was a flat charge regardless of the
~ frequency of use
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Utility Advisory Committee
January 8, 2008
Background
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0 ./ In 2005, new legislation was
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0 signed into law which:
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0 ,/ Provides statutory guidance in
0 setting rates - requiring a cost of
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0 service study
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0 ./ In 2005, the City's Medic 1
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0 program was restructured to
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0 meet the new statutory
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0 requirements
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0 ,/ Completed its first cost of service
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0 study
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Setting Utility Rates
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o ./ A cost of service study is a three-
o
step process:
,/ First, determine the total cost
necessary to regulate, operate and
maintain an ambulance utility
,/ Second, allocate costs to
./ the basic infrastructure (availability), and
./ utilization (demand)
,/ Finally, the rates can be set
./ User classifications based on utilization
patterns
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Utility Advisory Committee
January 8, 2008
Total Cost - 2008 Budget
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0 Description Amount
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0 Salaries & Benefits $998,858
0
0 Dispatching Services $48,286
0
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0 Equipment Services $54,355
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0 Supplies, Training & Contract Services $69,485
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0 Internal Charges $139,280
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0 Bad Debt $21,457
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0 Total Cost $1,331,721
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Cost Allocation - Availability
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~ ./ Availability - those costs attributable
~ to the basic infrastructure needed to
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o respond to a single call within the
o
o utility's response criteria.
o
~ ./ Represents 41.9% of the total cost of
o providing services
o
o ./ A single layer requires 4 paramedics, two
o
o ambulances and a percentage of dispatch,
o facilities, and administration
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Utility Advisory Committee
January 8, 2008
Cost Allocation - Demand
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o ./ Demand - those costs attributable
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~ to the burden placed on the utility
~ by individual calls for service.
~ ./ Represents 58.1 % of the total cost of
o providing services
o
o ../ Port Angeles added additional resources
~ in 1990 due to increasing simultaneous
o calls
~ ../ Additional resources include 6
o paramedics, one ambulance and a
~ percentage of dispatch, facilities and
o administration
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Revenue Required - Based
on 2008 Budget
000 0
0
0 Total Medic 1 Utility $1,331,721
0
0 Expenses for 2008
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0 General Fund ($294,353)
0 Contribution
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0 Total, less General Fund $1,037,368
0
0 Contribution
0
0 41.9% Attributable to $434,657
0 Availability
0 (Funded by Utility)
0 58.1 % Attributable to $602,711
0
0 Demand
0
0 Less $502,061 in $100,650
0 Revenue from Ambulance
0 Transports (Funded by Utility)
0
0
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Utility Advisory Committee
User Classifications
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o ./ Identified 9 user classifications
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o ./ Residential
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~ ./ Adult family homes
~ ./ Assisted living facilities
~ ./ 24-hour nursing facilities
~ ./ Group homes
~ ./ Jail facilities
~ ./ Schools
~ ./ Commercial/Business
~ ./ City public areas
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Rate Setting - Availability
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o ./ The amount identified as
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~ availability is spread equally
~ across the user classifications by
~ number of units
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January 8, 2008
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Utility Advisory Committee
January 8, 2008
Availability Costs per User
Classification
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0 Classifications # of units Revenue Required
0 by Class
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0 Residential 8,673 $368,214
0 Adult Family Home 3 $127
0
0 Assisted Living 4 $170
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0 24-Hour Nursing 2 $85
0 Group Homes 3 $127
0
0 Jail Facilities 2 $85
0 Schools 8 $340
0
0 Commercial/Business 1,522 $64,617
0
0 City Public Areas 21 $892
0 TOTAL 10,238 $434,657
0
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0
Rate Setting - Demand
000 0
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o ./ The amount identified as demand
o
is apportioned to the various user
classifications based upon
percentage of calls generated
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Utility Advisory Committee
Demand Costs per User
Classification
o 0 0 0
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0 Classifications Calls per Percent Revenue
0 Class of Calls Required
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0 Residential 1,363 51.2% $51,533
0 Adult Family Home 13 0.5% $503
0
0 Assisted Living 282 10.6% $10,669
0
0 24-Hour Nursing 191 7.2% $7,247
0
0 Group Homes 44 1.6% $1,610
0 Jail Facilities 29 1.1% $1,107
0
0 Schools 55 2.1% $2,114
0
0 Commercial/Business 302 11.3% $11,373
0 City Public Areas 382 14.4% $14,494
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0 TOTAL 2,661 100% $100,650
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Rate Exemption
000 0
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~ ./ The rate charged will reflect an
~ exemption for persons who are
~ Medicaid eligible
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o ./ Reside in a nursing facility, boarding
~ home, adult family home, or receive
o in-home services
o
o ./ Shall be a general expense of the
o
o utility
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o ./ Study identified $7,867 in exemptions
~ ./ Spread uniformly across user
o classifications (availability cost)
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January 8, 2008
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Utility Advisory Committee
January 8, 2008
Proposed Rates
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0 Classification # of Combined Annual
0 units Revenue Revenue
0 Required per unit
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0 Residential 8,673 $426,412 $49.17
0
0 Commercial 1,522 $77,159 $50.70
0
Monthly
Revenue
per unit
$4.10
$4.22
o
o The above rates are adjusted to reflect the required
o exemptions
o
o
o Individual rates for high demand facilities vary
~ based upon their percentage of use within that
o classification
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Proposed Rates
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~ ./ St. Andrews Place (Assisted Living
Facility)
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Classification Rate $10,839
--------------------------------------------
Utilization at 36% $3,902
Less Medicaid Deduction ($2,185)
of 56%
Annual Fee After Exemption
Final Fee with Availability
Adjustment
$1,717
$1,718
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Utility Advisory Committee
January 8, 2008
Current vs. Proposed Rates
000 0
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0 Classifications Current Annual Proposed Annual
0 Rates Rates
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0 Residential $44.85 $49.17
0 Adult Family Homes $406 per class $351 per class
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0 Assisted Living $6,634 per class $6,784 per class
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0 24-Hour Nursing $3,272 per class $4,768 per class
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0 Group Homes $482 per class $779 per class
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0 Jail Facilities $1,454 per class $1,194 per class
0 Schools $1,333 per class $2,486 per class
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0 Commercial $47.20 $50.70
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0 City Public Areas $15,042 per class $15,402 per class
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0 Residential Increase - $0.36 per month
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0 Commercial Increase - $0.29 per month
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Future Challenges
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./ Future changes in Medicare fee
schedule can affect revenue
v' Majority of our billable transports
./ Increases in calls for service are
stretching our resources
v' 2007 experienced a 12% increase in
medical aid calls over 2006
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Utility Advisory Committee
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January 8, 2008
Future Challenges
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Contact Information:
Dan McKeen, Fire Chief
dmckeen@citvofpa.us
360-417-4651
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WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
January 8, 2008
To:
Utility Advisory Committee
From:
Larry Dunbar, Power Resources Manager
Subject:
CFL Markdown Promotion Agreement Amendment
Summary: The City was offered an amendment to the Change-A-Light Compact Fluorescent
Lamp Promotion Agreement by Fluid Market Strategies, Inc. All City expenses under the
agreement are eligible for reimbursement under the Bonneville Power Administration's
Conservation Rate Credit program.
Recommendation: Forward a favorable recommendation to City Council to authorize the
Public Works and Utilities Director to sign the amendment to the Change-A-Light CFL
Promotion Agreement.
Background/Analysis: The City participated in the 2007 Change-A-Light compact fluorescent
lamp (CFL) price markdown promotion. City utility customers purchased an estimated 2,400
CFLs during the promotion, which was scheduled to end December 15,2007. Fluid Market
Strategies, Inc. recently offered the City an amendment to the agreement to extend its term through
February 28,2008.
The extended term is anticipated to result in additional City payment of up to $3,000 to Fluid
Market Strategies, Inc. City payments to Fluid Market Strategies, Inc. will be used to markdown
prices for specific CFLs at local retailers, which will ultimately reduce the cost of CFLs purchased
by Port Angeles electric utility customers. All City expenses under the proposed amendment are
eligible for reimbursement under the Bonneville Power Administration's Conservation Rate Credit
program.
Staff requests that the Utility Advisory Committee forward a favorable recommendation to City
Council to authorize the Public Works and Utilities Director to sign the amendment to the Change-
A-Light CFL Promotion Agreement.
The City Attorney reviewed the proposed amendment.
Attachment: Amendment to Attachment A
N:\UAC\Final\CFL Markdown Promotion. doc
Amendment to Attachment A
This amendment to Attachment A of the City of Port Angeles Agreement with Fluid
Market Strategies, Inc., is to extend the compact fluorescent twist (CFL) buy down
promotion in connection with Bonneville Power Administration. This region-wide
Change-A-Light promotion will continue for the time period of December 15th 2007 -
February 28th 2008. All final documentation and invoices from Fluid Market Strategies,
Inc. will be distributed by March 20, 2008. I
Task 1: Setup
. Marketing materials will be sent directly to the retailer. Communication with
corporate buyers on point of purchase placement will be provided. Store level
support will be coordinated with the retailer in the City of Port Angeles territory
providing on-site merchandising and sales associate training.
Task 2: Sales Data Tracking
. Program staff will receive retail sales reports from the retailer.
. Program staff will enter sales reports into the tracking database.
. See attached store listing for retail locations in your service area.
Task 3: Summary Report and Invoicing
. City of Port Angeles will receive detailed electronic reports of sales once a month
if requested. Sales will be broken out by store location and by individual product.
This data will also be provided in a hard copy along with the monthly invoice.
· Invoices for CFL sales and administrative costs per unit sold within the prior
month will be sent to City of Port Angeles monthly. Invoicing is dependent upon
Fluid Market Strategies, Inc. receiving sales data reports from
manufacturer/retailer partners in a timely manner, due on the 15th of each month.
However, City of Port Angeles will be invoiced by Fluid Market Strategies, Inc.
within 10 working days of receipt of sales data.
Budget:
The amendment to the 2007 Fall Change-A-Light (CAL) promotion is necessary in order
to achieve the original promotional unit movement goal that was delayed due to
shipment delays and product availability issues. The promotion will fund in total 2.6
million ENERGY STAR CFLs. This will be accomplished maintaining the previous
communicated standard rebate fee averaged ($1.65) and an administrative fee of $0.35
for all CFLs.
City of Port Angeles commits to fund (check one and fill in the blank) the following,
based upon proof of sales by store at participating retailers in the attached store list:
. A maximum of
promotional CFLs sold.
. Up to $ in markdown funds for promotional CFLs sold.
. All promotional CFLs sold for the duration of the promotion.
Effective Date and Term
This Agreement shall be effective immediately upon execution by both parties.
City of Port Angeles Fluid Market Strategies
Signature
Signature
Name
Name
Date
Date
Participating Retailers
Change-A-Light 12/15/07 through 2/28/08
Store Name: Wal-Mart Wal-Mart
Address: 1284 WEST WASHINGTON STREET 3500 HWY 101
City: SEQUIM PORT ANGELES
State: WA WA
Zip: 98382 98362
% CFL Sales Allocated to
City of Port Angeles: 30% 50%
~OR" 'T"~' N'~G"" 'E' 't' E:';S
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WAS H I N G TON, U. s. A.
Utility Advisory Committee Memo
Date:
January 8, 2008
To:
Utility Advisory Committee
From:
Larry Dunbar, Power Resources Manager
Subject:
Energy Champion Agreement
Summary: The Bonneville Power Administration is interested in equally sharing the cost of an
energy champion with Nippon Paper Industries USA.
Recommendation: For information only, no action requested.
Background/Analysis: This year the Bonneville Power Administration (BPA), Industrial
Efficiency Alliance (IEA) and City staff met with Nippon Paper Industries USA (Nippon) to
discuss strategic energy management opportunities. As a result of that discussion one of the main
suggestions was to consider an "energy champion". The energy champion would promote
continuous energy improvements, supervise an energy management program, and identify and
prioritize energy conservation projects. The energy champion would be an experienced engineer
and be selected by Nippon with the assistance of the IEA.
BP A is being responsive to Nippon's needs and has expressed willingness to equally share the first
year's cost of an energy champion. A similar arrangement was made on behalf of the Grays
Harbor County Public Utility District and Grays Harbor Paper L.P. (see attached article from the
Daily World). In addition to funding an energy champion, additional BP A funding is available
through September 30,2009 for up to 70% of the cost of electrical energy conservation projects.
BPA is developing an energy champion grant agreement for the City's consideration, which should
be offered in the near future. A separate agreement between the City and Nippon is also
anticipated and will need to be developed. Due to the long lead-time needed to develop and
implement industrial energy conservation projects and the conclusion ofBPA's current programs
in 2009, the agreements will probably need to be offered and accepted before March 31,2008.
Attachment: Daily W orId article
N:\UAC\Final\Energy Champion. doc
:1181:1'0 }fear No. 83
Friday, October 20, 2006
50 Cents
Energy efficiency the goal of new partnership
BY STEVEN FRIEDERICH
DAILY WORLD WRITER
DAILY WORLD I KEVIN HONG
the Industrial Efficiency Alliance, talks about the
project Thursday at tI1e mill offices. Others Ilsten-
ing are, from left, John Pyrch of the Bonneville
Power Administration, Rick Lovely of the Grays
Harbor PUD and Patrick Quigg of Grays Harbor
Paper,
Grays Harbor Paper LP is
getting an energy efficiency
expert to help the company
lower its energy costs and fig-
ure out better ways to conserve
power.
Grants from the Bonneville
Power Administration and the
Industrial Efficiency Alliance,
an energy conservation orga-
nization based in Portland,
will pay for the consultant,
who will stay on at the
Hoquiam-based paper compa-
ny for about a year, said Mike
Roberts, pulp and paper direc-
tor for the alliance.
The alliance is a non-profit
corporation supported by elec-
tric utilities, state govern-
lnents, public interest groups
and energy efficiency industry
representatives, according to
its Web site.
The Grays Harbor pun will Representatives from tI1ree industrial energy
also make its resources avai1~ efficiency organizations are partnering with Grays
able to help Grays Harbor Harbor Paper LP. to help the. company reduce
Paper in what everyone long-term energy costs. The project is designed
to improve performance, safety and productivity
See GH PAPER, Page A5 at the HOQuiam paper mill. Mike Roberts, left, of
THE DAILY WORLD ABERDEEN, WASH.
1I!i"'---" .
I ~!~ER
involved is calling a "pilot proj.
ect" that may be used by other
companies around the region.
"In the paper business, all it
. takes is. fiber, folks and fuel,"
said Roberts, an Aberdeen
High School graduate who once
worked at the old Rayonier
pulp mill in Hoquiam. "Grays
Harbor paper has a great safe-
ty and human resources pro-
gram. ... What we have is an
opportunity to put in place an
energy engineer trained to put
in place a comprehensive ener-
gy management program."
In all, the groups. have
pledged to provide Grays Har-
bor Paper with measurement
tools, training and on.site
resources worth an estimated
$100,000, Roberts said. Without
getting too specific, Roberts
said the BPA would pay for
about a third of the energy con-
sultant while the Industrial
Efficiency Alliance would pick
up the rest of the tab.
Agreement signed
On Thursday, all of the par-
ties involved conducted a sign-
ing ceremony.
John pyrch, Bonneville's
acting vice preSident for ener-
gy efficiency, described the
arrangement as a "test bed" or
pilot project using funds from
the BPA's energy conservation
budget.
"This is a chance to prove
(that energy conservation)
works and apply it somewhere
else," Pyrch said. "We are grate-
ful Grays Harbor Paper made
the commitment to come on
board because it's no small com.
mitment to make their staff,
their resources and, frankly,
their company available to us.
"This will help us achieve
our conservation goals for the
region."
Patrick Quigg, chief finan-
cial officer for Grays Harbor
Paper, added that it may be
hard to control the cost of raw
materials needed to produce
the paper, but "energy is one of
the most controllable cost vari-
ables in our plant today."
The grants will pay tor the
expertise of Hank Bisner, an
energy efficiency expert who
has been in the pUlp and paper
business for about 30 years. He
also has a degree in pulp &
paper science from Syracuse
University in New York.
Bisner said his first task is
researching what it will take to
reduce the amount of energy
Grays Harbor Paper uses. He'll
be working out of the Hoquiam
plant.
So how did Grays Harbor
Paper luck out in getting the
year-long use of a free energy
consultant?
"There wasn't someone lost
or someone gained," Roberts
said. "There was just the recog-
nition that Grays Harbor Paper's
goals fit our expertise ... in the
pulp and paper business."
Creating new behavior
"Traditionally, people have
seen energy efficiency asproj~
ects - from fluorescent light to
new complex equipment," Rob~
erts said. "What the industrial
efficiency alliance is doing is
changing the way people think
about energy."
For instance, whenfluo:i:"es.
cent lights first made their
debut a few years back, manu-
facturing companies offered
rebates;
"If you went to Home Depot
today you would see a whole
selection of lights and there
aren't any rebate coupons,"
Roberts said. "But now people
are stopping to think, 'Should!
do the more efficient thing and
buy the more expensive light
bulb?' Just thinking about.
energy as part of an everyday
decision is what we're. about.
And that's what we're trying to
teach companies like Grays
Harbor Paper.
"ThiJ> is an opportunity to
demonstrate the effectiveness
of behavior change," he added.
The energy expert will. also
work with the company and
Grays Harbor PUD's efforts to
install a new biomass turbine
generator.
Earlier this year, the Legisla-
ture prOVided around $7.5 mil-
lion for the new turbine which
uses wood waste to create
steam that ends up creating
electrity. POO Manager Rick
Lovely said Thursday he hopes
to start looking for contractors
for the project by the end of
October.
"One of the early tas1~:s we
will take on is making sure
they have considered the most
efficient energy design to L~sta1l
the equipment," Roberts said.
Once installed., the biomass
turbine should make the paper
company a "power island,"
meaning that it will no longer
have to purchase power from
the PUD and may even be able
to sell power back.
On the Net:
Industrial Efficiency Alliance:
www.industrialefficiencyal-
liance.org
Grays Harbor Paper: www.
ghplp.c9W
BPA: wWw.bpo_gov
Grays Harbor PUD: www.
ghpud.org ..