HomeMy WebLinkAboutAgenda Packet 07/08/2008
Utility Advisory Committee
Public Works Conference Room
Port Angeles, W A 98362
July 8, 2008
3:00 P.M.
I. Call To Order
II. Roll Call
III. Approval Of Minutes For June 10,2008
IV. Late Items
V. Discussion Items
A. Transfer Station Car Crushing Pilot Project
B. Billing Credit Agreement Termination
C. Consultant Agreement Amendment For Utility Cost Of Service Studies
D. Cost of Service and Rate Studies Calendar
E. Electric Utility 2008 Resource Plan
F. Energy Northwest Membership
VI. Executive Session
VII. Next Meeting Date:
August 12, 2008
VIII. Adjournment
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Utility Advisory Committee "
Public Works Conference Room
Port Angeles, W A 98362
June 10,2008
3:00 P.M.
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I. Call To Order
Chairman Reed called the meeting to order at 3 :00 p.m.
II. Roll Call
Members Present:
Chairman Reed, Betsy Wharton, Orville Campbell, Dan Di Guilio,
Karen Rogers
Members Absent:
None
Staff Present:
Mark Madsen, Bill Bloor, Glenn Cutler, Yvonne Ziomkowski,
Mike Puntenney, Steve Sperr, Larry Dunbar, Kathyrn Neal, Terry
Dahlquist, Ernie Klimek, Jeff Young, Helen Freilich (4:14), Cate
Rinehart
Others Present:
Brian Gawley
III. Approval of Minutes:
Chairman Reed asked ifthere were any corrections to the minutes May 13, 2008.
Councilmember Rogers moved to approve the minutes. Councilmember Wharton seconded the
motion, which carried unanimously.
IV.
Late Items:
None
V. Discussion Items:
A. Energy Northwest Membership Presentation
Larry Dunbar, Deputy Director of Power Systems, introduced Jack Baker and Jim Oakley of
Energy Northwest. Mr. Baker distributed a handout and gave a presentation based upon that
information. There was a brief discussion. Staff was directed to bring the subject back to the
next meeting with recommendations.
Information only. No action taken.
UTILITY ADVISORY COMMITTEE
June 10, 2008
B. Canyon edge Cable Repairs, Project CL09-2007
Terry Dahlquist, Electrical Engineering Manager, advised that the underground cable at
Canyonedge Subdivision is approximately 35 years old and has experienced a few failures. An
injection process to rejuvenate the existing cables would extend cable life an additional 20 years.
There was a brief discussion.
Councilmember Wharton moved to recommend City Council approve to award and
authorize the Mayor to sign a contract with Utilx Corporation for Project CL09-2007 in the
amount of $25,424 including tax. Orville Campbell seconded the motion, which carried
unanimously.
C. Industrial Wastewater Pretreatment Program Update
Kathryn Neal, Engineering Manager, reviewed the various tasks under the proposed agreement
emphasizing that the most important update would be revision of the industrial wastewater
pretreatment ordinance. A discussion followed.
Councilman Di GuiJio moved to recommend City Council approve and authorize the
Mayor to sign an agreement with G4 Consulting, Incorporated for technical services in an
amount not to exceed $56,000. Councilmember Wharton seconded the motion, which
carried unanimously.
D. Leak Detection Program Annual Report
Ernie Klimek, W ater/W astewater Collection Superintendent, pointed out that the City had
utilized leak detection companies for the past 18 years to detect water leaks in the distribution
system. The main areas covered this year were Cedar to Lincoln, Lincoln to Chambers, and 6th to
Lauridsen resulting in 3,600 gallons per day of loss detected and repaired. There was a brief
discussion.
Information only. No action taken.
E. Water Use Efficiency Program Annual Report
Ernie Klimek, Water/Wastewater Collection Superintendent, stated that in accordance with the
Water Use Efficiency program an annual report had been submitted to the Washington State
Department of Health and mailed to our customers. It was noted that changing out old meters
would probably be the best way to achieve the program goal for distribution system leakage
reduction. A discussion followed.
Information only. No action taken.
UTILITY ADVISORY COMMITTEE
June 10, 2008
F. Electronic Waste Disposal Discussion'
Councilmember Wharton led the group in a discussion of future disposal of items such as.old
televisions and the responsibility that manufacturers need to take. Mike Puntenney, Deputy
Director of Operations, shared information related to Washington and Oregon state requirements
and our service agreement with Waste Connections. Helen Freilich, Waste Reduction Specialist,
encouraged recycling electronics using the 2Good2Toss program. . , .
VL ,Executive Session
Bill Bloor, City Attorney, announced the need for an Executive Session under the authority of
RCW 42.30.110(1 )(i) to discuss' potential litigation. The Executive Session convened at 4:28
p.m. and returned to open session at 5:40 p.m.
VII. Next Meeting Date:
July 8, 2008
VIII. Adjournment:
The meeting was adjourned at 5:40 p.m.
Chairman Reed
Cate Rinehart, Admin Spec II
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FORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
July 8, 2008
To:
Utility Advisory Committee
From:
Glenn A. Cutler, P.E. Director of Public Works and Utilities
Subject:
Transfer Station Car Crushing Pilot Project
Summary: The City entered into an interlocal agreement with the County to dispose of derelict
vehicles within their jurisdictions at the Port Angeles Transfer Station. The program did not
achieve the desired results.
Recommendation: Discontinue the car-crushing project at the Transfer Station. The
County and City Code Enforcement officials should consider pursuing private sector
involvement in resolving the disposal of derelict vehicles within their jurisdictions.
Background/Analysis: In late 2007, the City and County entered into an interlocal
agreement regarding the processing of auto hulks at the City of Port Angeles Regional Transfer
Station. During late March 2008, the pilot operation was held with limited success. A total of 134
vehicles were processed. This was significantly lower than the anticipated 200 - 300 vehicles
expected. Seventeen (17) vehicles were from within the City limits.
The Clallam County Department of Community Development conducted the operation and
prepared an evaluation of the event. The report prepared by Rich Sill is attached for your
information. A condition of continuing the program required an evaluation by the Public Works
and Utilities Director with a report to be provided to the Utility Advisory Committee and City
Council after an initial operation period. The City has received its share of fees associated with the
processing of County vehicles collected.
Based upon the Clallam County report, and the significant effort required by City and County staff
in monitoring the activity, it is not recommended that the program continue on City property. It is
recommended that the County and City Code Enforcement officials pursue private sector
involvement in resolving the disposal of derelict vehicles.
Attachment: Clallam County Code Enforcement Report dated May 29,2008
N:\UAC\Final\Junk Vehile Pilot Project Update. doc
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CLALLAM COUNTY CODE ENFORCEMENT
Department of Community Development
County Courthouse
223 E. 4th St., Suite 5
Port Angeles, W A 98362-3015
Fax (360) 417-2443
COMMUNITY POLICING TEAM
Tony Polizzi (360) 417-2337
tpolizzi@co.clallam.wa.us
Rich Sill (360-565-2677
rsill@co.clallam.wa.us
Date:
5-29-08
To:
John Miller, Clallam County DCD Director
From:
Rich Sill
Subject:
After Action Summary and Analysis on Transfer Station Car
Crushing Pilot Project
Summary:
The first public/private partnership program initiated to address the identification,
certification, transportation, storage, crushing and removal of junk/hulk autos has been
conducted and completed in Clallam County Washington. This pilot project, designed as
a community service outreach to the citizens of the county, brought togethcr local
governmental entities as well as private business people in order to remove hulk/junk
vehicles at no cost to citizens while obtaining the resulting positive outcomes in
economic, environmental and social benefits in both the county and city areas
jurisdictions.
A total of 134 junk/hulk vehicles (117 from county and 17 from City of Port Angeles
jurisdictions) were removed from across the county, temporarily stored at the Port
Angeles Transfer Station site, crushed and removed.
The results of the pilot project provided results that the public/private process was a
success. The logistics of the process identified that such success can be magnified if the
scale of such an operation could be expanded in order to make use of the support systems
necessarily put into place for a small operation requirements. On an economy of scale,
replication and expansion of this type of operation would be more beneficial if the
operation encompassed a larger number of vehicles, a larger site and an extended time
period in which to complete the required segments of the operation. The logistics of the
pilot project could have addressed a greater number of cars if not restricted by the
parameters in place.
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Recommendations:
Continuance of this smaller scale type of operation is not recommended.
This type of operation could be replicated if conditions and site development could
accommodate the effective application to a larger operation. It does not appear that the
Transfer Station site would be able to accommodate a larger more efficient crushing
operation, nor are the partnering governmental support systems in place to complement
that process.
County Financial Contract Obligations Request:
Based upon contract obligations between Clallam County and the City of Port Angeles,
we request the authorization and payment of $1,170 (117 vehicles hauled out of the
county area to the crush operation site) to the City of Port Angeles.
After Action Analvsis
Proiect Purpose:
To examine, initiate and evaluate a public/private partnership in collection,
storage, crushing and transport of junk/hulk vehicles as a public service to the
citizens residing in Clallam County.
Goals:
1. To identify, for collection and removal, junk/hulk vehicles which
impact the economic, environmental and social conditions within
Clallam County.
2. To successfully complete a public/private community outreach
program at no cost to the citizens we serve.
Partners:
The County ofClallam and the City of Port Angeles/Solid Waste Transfer Station
joined with the private businesses of Don Baker's Towing and Recycling, RMB
Auto Wreckers and Waste Connections Inc.. Non-compensation contracts were
put into place with the private entities of the auto wrecking and towing firms
however the contract between the City of Port Angeles and Clallam County
required payment by the County to the City of Port Angeles of $1 0.00 for each
vehicle brought in from county area. Waste Connections donated their services
, (dumpster) as their contribution to the process.
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Challenges:
In working through the preparation, initiation and operational processes, we
discovered a number of issues that could be improved upon in setting up such a
program. Proactively, we were able to set up and prepare for mitigation of any
possible fluid spills (equipped spill trailer). Although we did not experience any
significant issues on that order, it became apparent that the physical asphalt grade
of the site would cause runoff (experienced as rain in this situation) and that we
had to provide a safety barricade along the west perimeter of the property because
of a lack of an asphalt curb in that area. The physical size of the storage and crush
site area proved to be limiting and a total of only 134 vehicles were processed
(limited by the storage yard area allocated). Proactive assistance through the use
of City of Port Angeles street sweepers (already at location) post operation could
have been of great assistance; however, authorization was never obtained. This
caused a delay in the clean-up process.
Opportunities:
Although the Transfer Station site, in its current configuration, is not
recommended for future operations, during this time period, we have developed
additional outside sources both in and out of county that, due to market factors
and the high price of shredded steel, will haul junk/hulks for no cost, that
previously, were too expensive for some of the county's citizens. With these
market factors changing, the need for in-county crushing operations becomes less
demanding.
Contract Completion/Timelines:
Crushing operations set-up and initiated on Friday March 21,2008 and were
complete on Wednesday March 26,2008 (Sunday March 23,08 idle). Clean-up
processes were ongoing during the crushing operation with comprehensive
application beginning on Wednesday, March 26, 2008. The site has been
thoroughly cleaned/scrubbed and all vehicle parts etc. removed. It should be noted
that this site was the first known in Washington State where the crushing
operation was conducted and completed on asphalt and not soil.
Proactive Process During Crushing Operation:
1. Continuous site monitoring during crushing operations by DCD
Special Deputy Personnel.
2. Fully equipped spill prevention trailer on site during entire operation.
3. Security on site consisting of fencing and locked gates.
4. Photo journal and log of operations process.
We are very pleased with the results of the pilot program operation and can see it
as a viable alternative for future operations, on a larger scale, depending on the
market factors surrounding junk/hulk steel prices and the availability of a site
large enough to efficiently accommodate the number of vehicles for optimum
operation (estimated to be between 500-600 vehicles for a single crushing
operations).
~ORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
July 8, 2008
To:
Utility Advisory Committee
From:
Larry Dunbar, Deputy Director of Power Systems
Subject:
Billing Credit Agreement Termination
Summary: The Bonneville Power Administration and staff are interested in terminating the
billing credit agreement and fulfilling the City's responsibilities under a legacy conservation
agreement. If the agreement remains in effect the City will continue to be required to prepare
quarterly reports, invoices and payments for at least an additional fourteen years.
Recommendation: Forward a favorable recommendation to City Council to approve and
authorize the Mayor to sign an agreement to terminate the Billing Credit Agreement.
Background/Analysis: Approaching 30 years ago the City entered into a zero interest
weatherization loan agreement with the Bonneville Power Administration (BP A). Under the
agreement BP A provided the City capital to loan to its customers, which are repaid to the City then
to the BPA upon the sale of the customer's home. Although the agreement has been terminated,
the City's financial responsibilities are continuing until approximately $298,500 in outstanding
customer loans are repaid to BP A.
Almost 20 years ago the City entered into a billing credit agreement with BP A which expires in
year 2022. Under the agreement the City made energy efficiency improvements to its electrical
distribution system in exchange for receiving billing credits from BP A. The billing credit is
calculated quarterly based on a variety of determinants and rates, which is anticipated to provide a
total of $267,000 through year 2022.
Staff in cooperation with BP A has sought termination of the billing credit agreement in
conjunction with satisfaction of the City's financial responsibilities for conservation loans. Based
on calculating the net present value of the City's expenses and revenues under both agreements,
the City would have to pay $21,200 to BP A for weatherization loan expenses that exceed billing
credit revenues. Adequate cash reserves exist within the conservation fund for that expense, which
were provided by BP A.
Staff recommends that the UAC forward a favorable recommendation to City Council to approve
and authorize the Mayor to sign an agreement to terminate the billing credit agreement with BP A
and acknowledge City satisfaction of its financial responsibilities under the weatherization loan
agreement.
N:\UAC\Final\Billing Credit Agreement Termination.doc
~ORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
July 8, 2008
To:
Utility Advisory Committee
From:
Larry Dunbar, Deputy Director of Power Systems
Subject:
Consultant Agreement Amendment for Utility Cost of Service Studies
Summary: Every three years a consultant completes a study to assess and evaluate the cost of
City utility services and rates. Studies are underway for the water, wastewater, solid waste
collection, and solid waste transfer station utilities. After further consideration, staff would like to
include an update of water and wastewater system development charges.
Recommendation: Forward a favorable recommendation to Council to approve and
authorize the Mayor to sign an amendment to the agreement with FCS Group for financial
services in an additional amount not to exceed $10,265, which adds task 4 to the scope of
work.
Background/Analysis: Every three years we have traditionally used a consultant to
independently assess and evaluate the cost of City utility services, cash reserve needs, and rate
structures. The water, wastewater, solid waste collection, and solid waste transfer station utilities
are being studied this year and the electric utility will be studied next year. The results of this
year's studies are anticipated to be available in August.
On March 18, 2008, City Council approved an agreement with FCS Group for financial services in
an amount not to exceed $71,932, which did not include optional task 4 to update water and
wastewater system development charges (SDC) of the scope of work (see Table 1 on next page).
Staff reviewed prior cost of service studies and found that the SDC has not been updated for at
least nine years. The SDC has been increased based on the Engineering News Record construction
cost index but has not been updated based on a cost of service study. A significant investment in
additional infrastructure has been made in recent years, which emphasizes the need to update the
SDC for the water and wastewater utilities.
Staff recommends that the UAC forward a favorable recommendation to City Council to approve
and authorize the Mayor to sign an amendment to the agreement with FCS Group in an amount not
to exceed $82,197, which includes tasks 1-7 of the scope of work.
N:\UAC\Final\Cost of service study agreement amendment.doc
Consultant Agreement Amendment for Utility Cost of Service Studies
July 8, 2008
Page 2
Table 1 - Summary of 2008 Scope and Budget
FCS Group 2008 City
TASKS PREVIOUSLY INCLUDED Task Fee Budget
1. Solid waste collection & transfer station utility CO SA $15,664 $30,000
2. Water utility COSA 21,394 15,000
3. Wastewater utility COSA 21,034 15,000
Sub- Total $58,092 $60,000
FCS Group 2008 City
OPTIONAL TASKS PREVIOUSLY INCLUDED Task Fee Budget
5. Water & wastewater connection fee update 4,200
6. Review Title 13 - Public Utilities rate ordinance 4,820
7. State tax review (water, wastewater, solid waste) 4,820
Sub- Total $71,932 $60,000
FCS Group
OPTIONAL TASK NOW RECOMMENDED Task Fee
2008 City
Budget
4. Water & wastewater system development charge update $10,265
Total $82,197
$60,000
Staff now recommends that optional task 4 is included in the approved scope of work.
~ORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
July 8, 2008
To:
Utility Advisory Committee
From:
Larry Dunbar, Deputy Director of Power Systems
Subject:
Cost of Service and Rate Studies Calendar
Summary: The utility cost of service and rate studies are nearing completion. A schedule has
been prepared to inform the Utility Advisory Committee about upcoming dates and action items.
Recommendation: For information only, no action requested.
Background/Analysis: Cost of service studies are being completed for the water, wastewater,
solid waste collections and transfer station utilities by FCS Group. A rate study is underway by
staff for the electric utility.
The findings and recommendations will include replenishment of cash reserves, inter-class
adjustments to align with the cost of service, rate and fee adjustments, an update to connection
charges, a review of state taxes, and rate ordinance simplification opportunities. If the City
Council approves the amendment to the agreement with FCS Group, an update to system
development charges will also be completed.
The schedule including dates and action items is provided below for more information. In
accordance with various agreements and State law regarding rate adjustments, the City will inform
and involve the following as required: Clallam County PUD, Lower Elwha Klallam Tribe, solid
waste collection entities, and the Washington State Utilities and Transportation Commission. We
anticipate that the August Utility Advisory Committee may take more time than normal to review
the findings and recommendations for each utility.
DATE
August 12,2008
August 19,2008
To be determined
September 2, 2008
September 9,2008
September 16, 2008
January 1, 2009
2008 Cost of Service and Rate Study Schedule
ACTION ITEM
Presentation to the Utility Advisory Committee
City Council sets public hearing
Joint Solid Waste Advisory Board presentation
Presentation to the City Council; open pubic hearing
Utility Advisory Committee recommendation to City Council
Continue public hearing, close public hearing, adopt rates
New rates in effect
N:\UAC\Final\COSA & Rate Studies Calendar. doc
~ORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
July 8, 2008
To:
Utility Advisory Committee
From:
Phil Lusk, Power Resources Manager
Subject:
Electric Utility 2008 Resource Plan
Summary: The City's electric utility must comply with a Washington state mandate to develop a
Resource Plan. A component of the enabling legislation is that consumer participation in the
development of the Resource Plan is encouraged. Further, the governing body of a consumer-
owned utility must approve the 2008 and any future Resource Plans after it has provided public
notice and hearing.
Recommendation: Forward a favorable recommendation to City Council to proceed with a
public hearing on the Resource Plan.
Background/Analysis: As previously presented to the Utility Advisory Committee on April
9,2008, the electric utility is required by RCW 19.280.030 to develop a Resource Plan (Plan) that
must be submitted to the state Department of Community, Trade and Economic Development
(CTED) by September 1,2008. Electric utilities with more than 25,000 customers are required to
prepare an Integrated Resource Plan, which is a much more extensive effort.
The principal desired outcome of the Plan is to ensure electric utilities have adequate resources to
meet projected loads, especially as BP A moves to a tiered rate structure from its current melded
rate schedule.
While the Plan is not a legally binding document, at a minimum it must provide a description of
current power loads and resources, as well as the estimated power loads and resources for 2013
and 2018 time periods. The state-required Plan must be updated every two years and may be
available to the public from the City's website.
In its projection of the resources estimated to serve future loads, the Plan must explain why those
resources were chosen, and if those chosen resources were not conservation, efficiency or
renewable energy resources, an explanation must be provided on why such a decision was made.
Staff is currently preparing a Plan based on typical growth rates and the City's current and
anticipated future mix of resources. The schedule for an on-time delivery of the 2008 Plan
follows.
N:\UAC\Final\2008 Resource Plan.doc
2008 Resource Plan
July 8, 2008
Page 2
DATE
July 8, 2008
July 15, 2008
August 5, 2008
August 12,2008
August 19,2008
28,2008
2008 Resource Plan Schedule
ACTION ITEM
UAC recommendation to Council to set public hearing
Council sets public hearing for August 5, 2008
Plan presented to Council; Public hearing opened
UAC update on Plan
Council continues public hearing and approves resolution
Final Plan and approved resolution submitted to CTED
~ORTANG:EL:ES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
July 8, 2008
To:
Utility Advisory Committee
From:
Larry Dunbar, Deputy Director of Power Systems
Subject:
Energy Northwest Membership
Summary: Depending on decisions the City makes as part of its next power sales contract with
the Bonneville Power Administration, Energy Northwest membership could provide the City an
alternative to the Bonneville Power Administration for tier 2 power needs.
Recommendation: Forward a favorable recommendation to City Council to approve a
resolution to become a member of Energy Northwest and authorize the City Manager to
apply for membership.
Background/Analysis: On May 13, 2008, the Utility Advisory Committee was informed
that staff was recently approached by Energy Northwest (formerly the Washington Public Power
Supply System) to determine the City's interest in becoming a member. At the request of the
Utility Advisory Committee, on June 10, 2008 Energy Northwest representatives provided a
presentation on the cost and benefits of membership. During the presentation the Utility Advisory
Committee requested a profile of current members (see attachment).
Energy Northwest has the authority to acquire, construct, operate and own plants, systems and
other facilities for the generation and/or transmission of electric energy and power. Although there
are no membership dues, membership could allow the City to selectively participate in new
generating projects and other services, which would be considered by the City on a case-by-case
basis.
The City anticipates the Bonneville Power Administration will offer the City a new power sales
contract this August and a decision will need to made this December if the City will purchase slice,
block, or load following services. In November of 2009, the City will be required to decide how it
would satisfy its tier 2 power needs. Due to the uncertainty surrounding a future contract, tier 1
allocation of the federal based system and remaining tier 2 power needs and rates, the City should
consider the possible benefits and costs of alternatives that may be available from membership
with Energy Northwest.
Staff recommends the Utility Advisory Committee forward a favorable recommendation to City
Council to approve a resolution to become a member of Energy Northwest.
Attachment: Energy Northwest membership profile
N:\UAC\Final\Energy Northwest Membership.doc
Energy Northwest Membership Profile
Year 2006 Statistics
Utility Customers MWH Sales Revenues (Thousands)
Wahkiakum County PUD 2,300 38,306 $ 2,926
Okanogan County PUD 3,208 50,898 3,684
Ferry County PUD 2,394 61,002 4,317
Kittitas County PUD 4,020 68,869 5,101
Mason County PUD, No.1 5,006 67,260 5,301
Skamania County PUD 5,691 119,881 7,921
Whatcom County PUD 96 222,255 8,336
Asotin County PUD 6,773 386,400 16,385
Pacific County PUD 16,723 281,057 18,993
Klickitat County PUD 11,398 291,564 19,068
City of Richland 22,571 782,134 40,204
Mason County PUD, No.3 31,528 645,819 40,636
Clallam County PUD 28,899 651,368 42,280
Franklin County PUD 24,663 835,781 57,484
Grays Harobor County PUD 40,108 992,830 66,119
Benton County PUD 44,628 1,555,710 101,112
Cowlitz County PUD 47,435 4,668,286 191,729
Chelan County PUD 54,727 9,932,108 221,552
Grant County PUD 41,722 3,124,884 231,889
Tacoma Power 163,000 4,736,689 263,053
Snohomish County PUD 300,653 8,897,932 574,206
Seattle City Light 376,000 9,161,466 583,114
Totals 1,233,543 47,572,499 $ 2,505,410
City of Port Angeles 10,412 698,468 $ 29,340
6/30/2008