The URL can be used to link to this page

Home My WebLink AboutAgenda Packet 07/13/2004 UTILITY ADVISORY P-OMMITTEE PUBLIO WORKS CONFERENOE ROOM PORT ANGELES, WA 98362 · IULY I 3~ 20D4 :3:00 P.M. Ar-ENDA I. CALL To ORDER II. ROLL P-ALL III. APPROVAL Of MINUTES FOR dUNE S, 2004 IV. LATE ITEMS V. DISCUSSION ITEMS A. SOLID WASTE RATE ADJUSTMENTS B. r:-ITY/OOUNTY INTERLOOAL AGREEMENTS FOR SOLID WASTE E:. HOUSEHOLD HAZARDOUS WASTE P-OLLEOTION 'EVENT D. P-SO UPDATE E. POLLUTION PREVENTION PLAN F. RESIDENTIAL ELECTRIC: EXTENSION POLI[~Y I~., UNDEROROUND AT EDIZ HOOK H. NON-WIRES ALTERNATIVES DEMONSTRATION PROJE{3T VI. NEXT MEETING DATE - AUGUST 10~ 2004 VII. ADJOURNMENT UTILITY ADVISORY COMMITTEE GUEST SIGN UP SHEET PRINT NAME ORGANIZATION N: \ PWKS \ LIGHT\ CONS \ CATE \SIGNUP.wpd UTILITY ADVISORY COMMITTEE Port Angeles, Washington June 8, 2004 I. Call to Order: Chairman Rogers called the meeting to order at 3:00 p.m. IL Roll Call: Members Present: Chairman Rogers, Mayor Headrick, Councilmember Erickson, Dean Reed, Allen Bentley Members Absent: None Staff Present: Bill Bloor, Glenn Cutler, Ken Ridout, Scott McLain, Gary Kenworthy,, Tom McCabe, Ken Loghry, Cate Rinehart Others Present: Brian Gawley - Daily News Chuck Forman - Bonneville Power Administration III. Approval of Minutes: Chairman Rogers asked if there were any additions or corrections to the meeting minutes of May 11, 2004. Dean Reed moved to approve the minutes. Mayor Headriek seconded the motion, which carried unanimously. Chairman Rogers asked if there were any additions or corrections to the meeting minutes of May 25, 2004. Dean Reed moved to approve the minutes. Mayor Headrick seconded the motion, which carried unanimously. IV. Late Items - Investor Owned Utility Agreement Chuck Forman, Bonneville Power Administration Account Executive, announced that due to an agreement with the IOU's and a endeavor to reduce internal costs, a rate increase due this fall may be deferred. Specific information is not available at this time. Staff will give a progress report at a later date. There was a brief discussion. Information only. No action taken. UTILITY ADVISORY COMMITTEE June 8, 2004 V. Discussion Items A. Revision To Port Angeles Municipal Code, Chapter 13.44 Water Rates Ken Ridout, Deputy Director of Operations, pointed out that water rates are presently based on the size of the service line and not the size of the meter. The code revision will correct this error. There was a brief discussion. Councilmember Erickson moved to recommend City Council make an Ordinance change to reflect that services with a 5/8 inch or 3/4 inch meters be charged based on the meter size. Mayor Headrick seconded the motion, which carried unanimously. B. Benefit Dump Day Tom McCabe, Solid Waste Superintendent, deferred specifics to Ken Loghry, Operations Supervisor. Mr. Loghry reviewed the information contained in the packet, responded to questions and provided clarification. It was noted that although response was lower this year than previous years, staff felt the decrease was probably due to implementation of the higher minimum fee resulting in more material being brought to the landfill during the year. No action taken. Information only. C. Solid Waste Export And Trnsport System Update Glenn Cutler, Director of Public Works and Utilities, briefed the committee on a recent meeting with the City of Sequim noting a lack of communication within Sequim staff. Written comments from the City of Sequim will be forthcoming. Information only. No action taken. D. Update Of Combined Sewer Overflow Directed Actions By The Department Of Ecology Glenn Cutler, Director of Public Works and Utilities, reviewed the summary of actions and their status. Mr. Cutler responded to questions and provided clarification. There was a brief discussion. Information only. No action taken. FI. Executive Session The regular meeting adjourned at 3:57 p.m. for an executive session. The executive session adjourned at 4:30 p.m. VII. Next meeting date- July 13, 2004 2 UTILITY ADVISORY COMMITTEE June 8, 2004 Fill. Adjournment: The meeting was adjourned at 4:30 p.m. Chairman Rogers Cate Rinehart, Administrative Assistant 6/9/04 N 5PWKSLLIGHT~CONS\CATE\j une8meet.wpd pORTANGELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: July 13, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager Tom McCabe, Solid Waste Superintendent RE: Solid Waste Rate Study - Pre-Closure ~ummary: Economic and Engineering Services and City staffhave recently completed a 5nancial analysis of the Solid Waste utility's rates. A similar study was completed in 2002 with ~o rate adjustments recommended at that time. The financial analysis will be presented by Economic and Engineering Services at the Utility Advisory Committee meeting. Recommendation: Forward a favorable recommendation to City Council to amend Chapters 13.54.040 and 13.56.020 to increase sanitary landfill and garbage collection rates in accordance with the recommendations herein. Background/Analysis: The City contracted with Economic and Engineering Services (EES) during 2003 to assist staffwith an analysis of 1) revenue requirements for the Solid Waste utility prior to landfill closure, and 2) a cost of service analysis (COSA) after the landfill is closed. The first component of EES's scope of work (landfill pre-closure revenue requirements) was recently completed. Capital construction projects and closure and post-closure plans were updated by Parametrix and financial recommendations have been made by EES that will maintain the solvency of the fund. The analysis was based on a load forecast that staffprepared earlier this year and assumes that the City moves forward with the Request for Proposals for Solid Waste Processing Facility Development and Management Services. EES will be completing a COSA to determine rates that will need to be in effect after the landfill closes. Based on the procurement schedule (Request for Proposal for Solid Waste Processing Facility Development and Management Services), the COSA will need to be completed in the Fall of 2004. EES will present the COSA to the Joint Solid Waste Advisory Board (JSWAB) and the Utility Advisory Committee. The COSA will be used to assist the JSWAB and the City to determine rates based on differences in waste types, the type of facility receiving that waste, commercial and self-haulers, and for any other fair, reasonable and equitable reason permitted by law. Solid Waste Rate Study Page 2 July 13, 2004 The proposed adjustments to solid waste rates (Chapters 13.54.040 and 13.56.020 of the Port Angeles municipal code) are summarized below. The combination of significant reductions in anticipated closure expenses and increased revenues from proposed rate adjustments should result in full funding of the revetment project prior to 2007. Based on Parametrix's updated cost estimate, the post-closure fund should be sufficiently funded before 2007. The proposed adjustments to all landfill and collection rates are five percent (5.0%) per year in 2005 and 2006 including applicable taxes. Although the landfill minimum charge was increased from $2.00 to $7.00 in 2002, all other landfill and collection rates have not been increased since 1994. Proposed Collection Rate Adjustments Garbage Collection Rate Component Current Rate Proposed Rate Proposed Rate Chapter 13.54.040 2004 2005 2006 A. Residential collections per month (90 gallon container once per week) $19.80 $20.80 $21.80 B. Commemial collections per month 90 gallon container once per week) $19.80 $20.80 $21.80 300 gallon container once per week) $68.60 $72.00 $75.60 D. Federal agency collections per month (90 gallon container once per week) $18.90 $19.85 $20.85 (300 gallon container once per week) $65.40 $68.70 $72.10 Sections 13.54.040 C and E of the Port Angeles municipal code should be deleted. This is because of the conversion to mechanized waste and 60 gallon containers are no longer provided. Section 13.56.020 G should also be deleted because there are no exempt collectors. Proposed Landfill Rate Adjustments Sanitary Landfill Rate Component Current Rate Proposed Rate Proposed Rate Chapter 13.56.020 2004 2005 2006 A. Landfill charge per ton (selfhanl) $76.80 $80.65 $84.70 Landfill minimum charge $7.00 $7.50 $8.00 B. Uncovered loads $5.00 $5.25 $5.50 C. Special waste handling $190.00 $199.50 $209.50 D. Landfill yard waste (commercial only) $20.00 $21.00 $22.00 H. Landfill charge per ton (Federal govemment) $73.27 $76.05 $80.80 · Landfill charge per ton (commercial haulers by contract) $63.00 $66.15 $69.45 ~k In accordance with existing contracts with Waste Connections and the City of Sequim, the rate applicable to commercial haulers shall remain at the same level that is currently charged in proportion to the revised landfill charge per ton through December 31,2006. WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: JULY 12, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Michael Quinn, City ManagcrC~t/(~-~~ SUBJECT: Nippon Paper Industries - Adjustment of Basic Monthly Charge Summary: The City has an interest in promoting operational efficiencies and reducing unnecessary regulations for the benefit of public and private customers. One area that has previously been adjusted on a temporary basis was the basic monthly charge for electricity to our major industrial user. We desire to continue this procedure on a consistent basis of annual review. Recommendation: Adopt the attached Ordinance. Background/Analysis: Nippon Paper Industries (N-Po is our largest private employer and largest individual customer of electricity from the City. Previously, in response to significant increases in the wholesale power rate from the Bonneville Power Administration (BPA) in 2001, thc City temporarily eliminated thc basic monthly charge to our Industrial transmission class user - NPI. The annual savings was $70,440 plus applicable taxes based on a monthly administrative overhead charge of $5,870. This administrative charge is called the basic monthly fee and is not a consumptive charge but intended to cover salary and overhead allocations. Staff proposes to waive this fee for 2004 and annually review thc fee status per the following: 1. Compliance with Resolution 8-04 adopted 5/4/04 which reaffirmed the City's comxnitment to NPI to pursue operational efficiencies, reduce regulatory costs, and encourage private sector investment in our community. 2. Support of our largest industrial customer with a stake in thc economic vitality of the community, and a community interest in assuring their continued success. 3. Prior precedent fi'om the 10/01 - 9/02 period waiver of thc basic monthly charge in response to reducing thc impact of BPA rate increases to our customer base. 4. The current receipts for this user's power purchases are ahead of the incremental difference involved in the waiver of this fee results in no negative impact to our Budget. 5. The annual impact of the fee waiver is unchanged from prior experience at $77,395 including the monthly basic charge and applicable taxes. 6. Thc waiver will be annually reviewed for applicability and continuance based upon the current circumstances. This would allow future variation as to full or partial waiver. 7. Thc cost basis for this charge can be evaluated as part of the City's utility rate analysis. pORTANGELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: July 13, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager SUBJECT: Solid Waste Export and Transfer Station System Interlocal Agreements Summary: A Solid Waste Export and Transfer Station System Interlocal Agreement has been prepared in cooperation with the City of Sequim and Clallam County. A decision by the City of Sequim to accept the Interlocal Agreement is anticipated no later than July 15, 2004. Due to the timing of Sequim's decision and the need to move forward with the Request for Proposals as soon as possible, staff prepared two versions of the Interlocal Agreement, one including Sequim, the other without Sequim. Recommendation: Forward a favorable recommendation to City Council to approve proposed revisions to the lnterlocal Agreement with and without Sequim. Background/Analysis: The City, County and City of Sequim have continued negotiation of an Interlocal Agreement (agreement) for a solid waste export and transfer station system (SWETSS) to replace the Port Angeles Landfill function. The County and City staff concurred on the agreement which was approved by City Council on June 8, 2004. The City Council also authorized staff to proceed with the Solid Waste Processing Facility Development and Management Services Request for Proposals (RFP) on June 8, 2004. A decision by the City of Sequim to accept the agreement is anticipated no later than July 15, 2004. A decision by the County to accept the proposed revisions to the agreement is anticipated on July 20, 2004. Execution of the agreement prior to soliciting proposals under the RFP is needed to ensure favorable pricing from contractors. Advertisement of the Request for Proposals is anticipated on July 25, 2004. The agreement was revised at the request of the City of Sequim after it was approved by City Council. In addition to the revisions requested by Sequim, other revisions are recommended based on whether Sequim accepts or rejects the agreement. Attached are copies of the proposed revisions to the agreement with and without Sequim for review and consideration. Also attached is a summary of the proposed revisions to the agreement. After a presentation by staff, it is recommended that the UAC discuss the proposed revisions to the agreement and forward a recommendation to the City Council to approve the proposed revisions to the agreement. The revisions to the agreement have been reviewed by the City Attorney, the legislative bodies of the other agencies may require changes in language. Attachments: Summary of proposed revisions to the Interlocal Agreement Interlocal Agreement (with Sequim) Interlocal Agreement (without Sequim) N :\UAC~Final\interlocalagreememchanges.wpd ;/30/2004 Summary of the Proposed Changes to the Interlocal Agreement -With~'and Without~ Sequim Section Proposed Changes Justification With Without Revise "party" and "parties" to title case because they are -~ · All defined terms. Minor housekeeping item. Definition of "Cities" revised to "City" which only includes Port · 1 Angeles. Minor housekeeping item. Definition of "Plan" revised toAn amendment to the Plan is ,~ · 1 include amendments, underway. Definition of "Regional Solid Waste Export and Transfer The term "moderate risk waste" under System" revised to become State law is "moderate-risk waste". ,jr · consistent with State law and The term "drop box" under the RFP is 1 the RFP. "drop-box". Revise the definition of Plan and other Sections to only allow amendments to the Plan that Only parties to the agreement should affects Parties to the be allowed to amend elements of the ~ · 2A, 6E4, Agreement by Parties to the Plan that affect parties to the 9E Agreement. Agreement. 21, 3J, * · 4E & G Delete "Recycling:" heading. Minor housekeeping item. Costs should also be able to be ~ · 3C Revise to include "costs". reviewed by the JSWAB. If Sequim isn't a party to the Agreement this Section should be Revise "Responsibilities of therevised to apply to additional parties City of Sequim" to that become a party to the Agreement. · "Responsibilities of additionalPrior subsection 4C and 4D deleted 4 parties" since they would not apply. Revise to require designation of This would result in less risk of regional system as additional stranded costs for the regional · 4C party's solid waste system, system. Revise to require additional This would result in less risk of parties to agree to a disposal stranded costs for the regional · New 4D district, system. Removes Sequim from JSWAB. Includes 1 vote per Party. Includes JSWAB review of · amendments to the Plan and 6A the Agreement. Inserts the word "Utilities" into ¢r · 6B position title. Corrects position title. The JSWAB should review and Revise to include "disposal recommend fees and charges for -jr · 6E3 districts", disposal districts. Cost shall be fair, reasonable and .Ct · 7G Expand description of costs equitable to all Parties. Fees shall be based on the cost of service and may be set in various CC · 7H Expand description of fees. amounts... Creates a level playing field if This would create equity among the an additional party enters the current and additional parties to the -jr · 9B Agreement Agreement. Revise liability related to thePort Angeles to assume all risk for the~ · ~ 91 Port Angeles landfill Port Angeles landfill (WITHOUT SEQUIM) INTERLOCAL AGREEMENT REGARDING REGIONAL SOLID WASTE EXPORT AND TRANSFER SYSTEM COOPERATION AND IMPLEMENTATION THIS AGREEMENT is executed by and among Clallam County ("County") and the r.;~;~ City of Port Angeles ""~ c .....;~. r,:~:~ ............. t ...... (the "Citie.~Cit¥"') (the County and the ....... City are collectively referred to herein as "the Parties") for the purposes of providing for competitively-priced regional solid waste export and transfer system facilities and ....... -City s services; promoting the health, safety and welfare of the County's and r~:~;~, · , residents; and protecting the natural environment throughout the County. The Parties enter into this Interlocal Agreement ("Agreement") effective as of the date set forth in Section 9(A) £or the purposes and under the terms contained herein. WHEREAS, the Parties have cooperated in developing and implementing the County's Comprehensive Solid Waste Management Plan ("the Plan") pursuant to Chapters 35.21, 36.58 and 70.95 RCW on behalf of the County and the Citic:City; and WHEREAS, the Plan recommends exporting solid waste to meet future disposal needs of the residents, businesses, visitors and institutions within the Gi-ties-City and the County; and WHEREAS, the Plan recommends using interlocal agreements to create the institutional arrangements needed to implement the Plan; and WHEREAS, the Plan recommends closing the Port Angeles Sanitary Landfill, the only operating municipal solid waste landfill in Clallam County serving the area from Lake Crescent eastward, as depicted in the map and legal description attached hereto as Exhibit A, when it reaches capacity (projected by the end of 2006), and citing a transfer station at the Port Angeles Sanitary Landfill, for the purposes of exporting solid waste for final disposal after the landfill is closed; and WHEREAS, in anticipation of the closure of the Port Angeles landfill and in recognition of the absence of alternative local landfill sites, the Parties desire to cooperate to provide for a Regional Solid Waste Export and Transfer System consistent with the Plan; and WHEREAS, by entering into an interlocal agreement providing for each Party's cooperation, the Parties can more effectively and efficiently implement the Plan and procure management of the Regional Solid Waste Export and Transfer System; and 7/9/200~ ............... 004 Page I WHEREAS, the Plan anticipates that the Regional Solid Waste Export and Transfer System facilities will be located at the current site of the Port Angeles Sanitary Landfill, will be operated by the City of Port Angeles or a private company under contract with the City of Port Angeles, and will be utilized by the Citiv. sCitv, County and by the private solid waste collection companies that serve the ~Citv and unincorporated area of the County from Lake Crescent eastward; and WHEREAS, the Pa~ies to t!~iz !nter!oca! Agreement l~aYeCit¥ of Pon Angeles has been responsible for accumulating closure and post-closure funds as required by law for the Port Angeles LandfillrLand whereas the Parties intend for the Regional Solid Waste Transfer and Export System funding arrangement to provide for any additional funds related to unmet or unanticipated Port Angeles Landfill requirements provided, however, that this shall not make Clallam County separately or individuallv obligated for liabilities arisin~ fi'om Port Angeles' landfill site; and WHEREAS, the Parties intend that a portion of the tipping fees for the Blue Mountain Transfer Station be collected to continue to pay for the lease fee and upkeep costs for this site presently being covered by the Blue Mountain Drop Box fees collected by the County; and WHEREAS, the Parties are authorized and empowered to enter into this Agreement pursuant to Chapters 39.34 and 70.95 RCW. THEREFORE, in consideration of mutual promises and covenants herein, and in order to implement the terms of the County's Comprehensive Solid Waste Management Plan, the Parties agree: Section 1. Definitions: Except for the terms defined in this section, and unless the context indicates otherwise, for the purposes of this Agreement and any related agreements, the Parties shall use the definitions found in RCW 70.95.030 and WAC 173-350, as they maybe amended. "Agreement" means this interlocal agreement. "C444esCitv" means hat~ ~f the Cities City of Port Angeles--amt--Seqafim, Washington (ce!!ectivc!y, t!:e "Cities"). "County" means Clallam County, Washington. "Ecology" means the Washington State Department of Ecology or its successor agency. "Plan" means the Clallam County Comprehensive Solid Waste Management Plan as amended in accordance with this Agreement. 7/9/20047/9!2004~/30/2004 Page 2 "Solid Waste Advisory Committee" is an advisory committee whose members are appointed by the County Commissioners to advise them on solid waste matters. "Regional Solid Waste Export and Transfer System" means the facilities owned by and/or contracted by, the City of Port Angeles, where deposit, processing, recycling, composting, m~dc:'atc moderate-risk waste handling, and transfer of solid waste for disposal through a long-haul contract occurs. This will include the Blue Mountain d:',zp ~box site, facilities, and operations, unless the Board of Clallam County Commissioners determines in its sole discretion at any time during the term of this agreement that the Blue Mountain dre, p ,4rop-box facilities should no longer be operated. "Vendor" means either the City of Port Angeles or any company or person with whom the City of Port Angeles contracts for any or all of the design, construction, ownership, or operation of the Regional Solid Waste Export and Transfer System. Section 2. Responsibilities of the County. The County shall: A. Process amendments to the Plan that are submitted by the Joint Solid Waste AdvisoB, Board to the Solid Waste Advisory Conmfittee to provide for disposal of all non-recyclable solid waste generated in the unincorporated areas of the County from Lake Crescent eastward at the Regional Solid Waste Export and Transfer System site(s) to the extent permitted by law. The Regional Solid Waste Export and Transfer System will be the only designated Export and Transfer System in the County East of Lake Crescent for the term of this Agreement. B. Process amendments to the County's zoning code, solid waste facility permitting process ordinance, and other applicable ordinances to prohibit solid waste transfer and export facilities that are not consistent with the Plan and to designate the Regional Solid Waste Export and Transfer System as the County's solid waste system consistent with the Plan and RCW 36.58.040, to the extent permitted by law. C. Make a good faith effort to negotiate and execute with Jefferson County an interlocal agreement requiring each county to amend its comprehensive solid waste management plan and other related ordinances and agreements, to the extent permitted by law, to prohibit accepting waste generated outside its boundaries at disposal sites within said county; unless approved as an emergency. D. Consider forming a solid waste disposal district in the eastern part of the County, to the extent it may become necessary to provide a dedicated source of funds to help finance the capital and operations and maintenance costs associated with the Solid Waste Export and Transfer System. 7/9/20047/9/2004 {3/g012004 Page 3 E. Shall not construct or have constructed any municipal solid waste export and transfer system in the eastern part of Clallam County without the approval of the Joint Solid Waste Advisory Board. F. Participate in developing the request for qualifications/proposals and selecting the contractor(s), for designing, building and if appropriate operating the Solid Waste Export and Transfer System facilities, disposal services, and long haul services. G. Appoint representatives to the Joint Solid Waste Advisory Board. H. Negotiate and administer the land lease between the County and the Washington Department of Natural Resources enabling the continuation of drop box services at Blue Mountain. R~ r ..... ,,,- Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and land clearing waste) programs to minimize the amounts of material for waste export. Section 3. Responsibilities of the City of Port Angeles. The City of Port Angeles shall: A. Conduct a procurement process for selecting one or more Vendors to provide solid waste export and transfer system facilities, disposal services, and long-haul services consistent with the Plan; County .....sl~ B. In consultation and cooperation with the ~'~ ........ ~ .... , ..... , either provide itself, or enter into and administer a contract with one or more Vendors for, solid waste export and transfer system, and disposal services for the Parties consistent with the Plan; and C. In consultation and cooperation with the County and '~-~ ~,~ ~,~ r,;~,, ~c o~ ^ ..... ~ establish a Joint Solid Waste Advisory Board that will review policies, procedures, costs, rates and will operate as an advisory group to the City of Port Angeles. D. Provide administrative service related to the operation of the Regional Solid Waste Export and Transfer System site(s) and long-haul service including but not limited to: 1. Act as custodian of the Regional Solid Waste Export and Transfer System/landfill enterprise fund created under this Agreement. 7/9/20047/9/299%/~9:209~. Page 4 2. Incorporate in its annual budget the budget for Regional Solid Waste Export and Transfer System services under this Agreement including, but not limited to revenues, administrative costs of the paniesParties, direct costs, indirect costs according to approved cost allocation plans, personnel services, insurance and land leases. 3. For facilities that are operated by the City of Port Angeles as part of the solid waste export and transfer system, provide for administrative service including, but not limited to personnel services and insurance. E. Provide a site at the existing site of the Port Angeles Sanitary Landfill for the regional Solid Waste Export System facilities at no cost to the panic,Parties. F. The Blue Mountain operations and facilities will be included in the enterprise fund of the Regional Solid Waste Export and Transfer System with consideration of increased service, if approved by the Joint Solid Waste Advisory Committee. G. Direct solid waste collected within the City of Port Angeles (whether collected directly by the City of Port Angeles or by a solid waste collection company) to the Vendor selected through the procurement process; take reasonable action to enforce such direction, including but not limited to entering into a long term contract that requires disposal of solid waste generated in the City of Port Angeles at the Regional Solid Waste Export and Transfer System facilities; and if the City of Port Angeles ceases to operate its own solid waste collection system, then the City shall require that any contract with solid waste haulers provides that solid waste hauled is disposed of at the Regional Solid Waste Export and Transfer System facilities consistent with the Plan. H. Process consideration of an ordinance designating the Regional Solid Waste Export and Transfer System as the City's solid waste system consistent with the Plan and RCW 35.21.120, and amendments to the City's zoning code and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan. I. Cooperate with the County in the formation of a disposal district to the extent the district includes incorporated areas of the City of Port Angeles. J. Rec';c!ing: Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and land clearing waste) programs to minimize the amounts of material for waste export. 7/9/20047/9/20046~30;200~. Page 5 Section 4. Responsibilities of thc r'; .... c c ...... ;~., · · , .... ~ .....~ ...... addmonal parties,,,,~ ._,,.~ .., 8eqmmAdditional parties to this Agreement shall: A. Direct solid waste (except yad debris ~d composting operations mate~als) collected within the ~: .... c c ..... ;_.. . · - ~,.j .... ~ ..... innsdmtmnal area of the additional pa~v (whether collected directly by the ~:~,,~ ..... ~,c ~additioual party or by a solid waste collection company) to the Vendor selected t~ough the procurement process; take reasonable action to enforce such direction, including but not limited to entering into a long te~ contract with the City of Poa ~geles for disposal of solid waste generated in the ~a,~.,~ ~,"c c,,..,.~,.~-~,~ ..... luns&ctKnal"' "'~ ' area of the additional party I at the Regional Solid Waste Expo~ and Tr~sfer System hcilities; and if the City. ..... u ..... ad&tlonal pat2y ceases to operate its own solid waste collection system, then the City additional party shall require that any contract with solid waste haulers provides that solid waste hauled is disposed of at the Regional Solid Waste Expoa and Transfer System facilities consistent with the Plan; ~d B. Cooperate in implementing Plan elements. f ~: ..... ;~'Ad pt I ti by tbe additional pa~y's governing body approving the designation of the Regional Solid Waste Expo~ ~d Transfer System as the ~ ..~ ~ additional paay's solid waste system consistent with the Plan and RCW 35.21.120, ~d amendments to the ~a.~,~..j ~ additional party's zoning code ~d other applicable ordin~ces to prohibit solid waste facilities that ~e not consistent with the PI~. Tbe resolution and amendments lo zoning code and other applicable ordinances shall be made concurrent with or prior to the additional pa~y accepting an amendment to this Agreement to include the additional pa~y. Cooperate with the County in the fo~ation of a disposal district including adoption of a resolution by the additional pmly's governing body approving the district to the extent the district includes inco~orated ~eas of the ~:*-' c ~, .... ~ ef ,~%uimadditional party, The resolution shall be made concurrent with or prior to ll~e additiona pa~y accepting an mnendment to this Agreement to include the additional pl~y. 7 9/2004 ................... Page 6 GE._ '---J~'",~.r' ....... ~: ..... Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and land clearing waste) programs to minimize the amounts of material for waste export. Section 5. Duration of A,m-eement: This Agreement shall be in full force and effect from and after its effective date, as set forth in Section 9(A), and shall remain in force for 20 years from the date the Regional Solid Waste Export and Transfer System first commences r-ei~lav-commercial operations. Any changes to this Agreement must be agreed upon by all ...... ;~r, - ' ~ ........ mtms. This Agreement shall automatically be extended for a period of five (5) years unless notice is given by any },,,,,.~Palt~, to the other parities within eighteen (18) months prior to the expiration of the original twenty (20) year term, and in writing, that they do not desire to extend the agreement. Section 6. Governance and Rates. A. Joint Solid Waste Advisory Board: A Joint Solid Waste Advisory Board (JSWAB) shall be established. The Board will be composed of staff from Parties to this Aareement. The Board will act as an advisory committee to the Port Angeles City Council, the Clallam County Solid Waste Advisory Committee and others as necessary. Althotmh Clallmn Connty and the City of Port Angeles ma,/each be represented by multiple members on the JSWAB in accordance with 6(B), each Party shall only be entitled to a single vote on recommendations to the Port Angeles City Council, the Clallam County Solid Waste Advisory Conm~ittee and others as necessary. B. Membership Body: The JSWAB shall consist of the following members: (1) Director of Public Works Clallam County, (2) Director of Public Works and Utilities City of Port Angeles, (3) Direct',~r ef Public Wer!:s ,.,; ...... ~ ...... , ~ ,2 Sohd Waste Supenntendent City of Port Angeles, (54) Utilities Division Manager or designee from Clallam County. The Board shall draw upon other staff members from the agencies as necessary and appropriate to assist is carrying out its duties. C. Officers and Procedures: The JSWAB shall select a chair and such other officers as deemed necessary to conduct business. The Board shall adopt rules and procedures it deems necessary for the proper and efficient conduct of its business. D. Meetings: The JSWAB shall be responsible to fix a time and place for its meetings. E. Powers and Duties: The JSWAB shall have the following powers and duties: 7/9/20047/9/299~.6/~9/200~, Page 7 1. Make recommendations for the management and operation of the Regional Solid Waste Export and Transfer System operated under this Agreement. 2. Submit budget recommendations to the participating jurisdictions for action. 3. Review and recommend fees and charges and for services related to disposal, operation of facilities~_ 'and transfer an~d disposal of solid waste associated with the Regional Solid Waste Export and Transfer System, and for disposal districts. 4. Review and recommend amendments to the Plan to thc Sol d ¥¥ ast¢ Advisory Committee. Review and recoinme:nd amendments to this At~reement to the Parties of this Agreement. F. Enterprise Fund: There shall be maintained an enterprise fund separate from all other funds within the City of Port Angeles into which revenues received from the ~Parties to this Agreement, fees, charges, and any other revenues associated with the operation and management of the Regional Solid Waste Export and Transfer System shall be deposited. This fund shall be part of the City of Port Angeles annual budget and administered in accordance with the City budget regulation and guidelines. Expenditures from the fund shall be made only for the Solid Waste Export and Transfer System and landfill projects and closure and post closure costs not captured during the operation of the landfill activities, including actual administrative costs of the pmaqesParties pursuant to their obligations under this agreement, the comprehensive solid waste plan, state and federal laws. G. Costs: The costs of solid waste disposal and management of all pamesparties to this Agreement not otherwise reimbursed shall be included in the operation of the enterprise fund. These costs shall include, but not be limited to, operation of transfer sites, long haul, recycling operations, composting, capitalization of facilities and equipment, administrative costs, planning, and other costs directly related to regional Solid Waste Export and Transfer System/Landfill operations. The JSWAB shall determine inclusive costs which shall be fair, reasonable and equitable to all Parties of this Agreement when making budget recommendations to the City of Port Angeles City Council. H. Fees and Charges: Fees for disposal shall be fair, reasonable and equitable and shall be applied equally throughout the jurisdiction of all participating ~a~'~aa~ t;~m'*a Page 8 7/9/20047 ................. ,04 ?articsParfies at the Port Angeles regional site. Fees shall be determined based on the cost of service and may be set in '~arious amounts based on differences in waste t,/pes, the type of fac lt¥ receiving that waste, commercial and setf-hanlers, and for any other fair. reasonable and equitable reason pern~dtted by law. A separate fee structure may be developed for the Blue Mountain site, which shall be sufficient to cover all costs associated with operation of the Blue Mountain site. A surcharge or higher rate may be charged for solid waste collected within jurisdictions that are not signatories to this Agreement. Section 7. Access to Records: Duly authorized representative of the ~ ......... arl~es to this Agreement shall have the right to inspect the records of the JSWAB and the accounts and records of the City of Port Angeles relating to solid waste disposal and transfer operations at any reasonable time. Section 8. Assets and Liabilities: On termination of this Agreement, any assets owned separately by a Party shall remain the property of that Party. In entering into this Agreement, no Party assumes liability for the actions or activities of the other, except as provided by law or as may be agreed by the Parties. Section 9. Miscellaneous Provisions A. Effective Date: This Agreement shall take effect the first date on which all Parties have taken all necessary action to authorize and execute this Agreement. B. Amendment. This Agreement may be amended only in writing and only by agreement of all Parties except as set forth in this section. The Parties hereby agree that this Agreement may be amended to allow any other governmental entity within Clallam County, including the City of Seqnim, tribes and the Town of Forks, to join as an additional party. Additional parties joining shall not be members of the 3SWAB ................ ~ ,.~ .... .... ~ .... ~ ............ ~ ~o~ ^c ~ ........ ~ '~ ..... :~ +~'~ County Additional parties shall be bound by all provisions of this Agreement. C. Withdrawal: A pa.~:,'Part¥ may withdraw from this Agreement only upon unanimous agreement of all ptmiesParties, which agreement shall provide the means by which a penalty may be charged for withdrawal from the agreement by the particaParties. D. Non-Waiver: No waiver by any partvParty of any term or condition of this Agreement shall be deemed or construed to constitute a waiver of any other term or condition or of any subsequent breach whether of the same or of a different provision of this Agreement. 7/9/2004 .................. Page 9 E. No Third-Party Beneficiary: This Agreement is entered into to protect the public health, safety and welfare of the residents of the Gi44es-City_and County and to promote the effective and efficient disposal or other handling of solid waste in the ~Cit¥ and the County. This Agreement is not entered into no__r may any amendment to the Plan be made with the intent that it shall benefit any party not signing this Agreement, and no other person or entity shall be entitled to be treated as a third-party beneficiary of this Agreement. F. Assignment: Upon the creation of a solid waste disposal district pursuant to Ch. 36.58 RCW, the County and any City opting into such a disposal district may assign its rights and obligations under this Agreement to the solid waste disposal district. No other assignment of this Agreement is permitted without the prior written consent of all Parties. G. Severabilit¥: If any provision of this Agreement is determined to be invalid, the remaining provisions shall continue in full force and effect. H. Counterparts: This Agreement may be executed in two or more counterparts, and each such counterpart shall be deemed to be an original instrument. All such counterparts together will constitute one and the same Agreement. I. Risk Allocation - Liability: As among the Parties, the City of Port Angeles shall assume the risk for all activities and liabilities arising from the ownership and operation of the Regional Solid Waste Export and Transfer System and the Port Angeles landfill and shall hold harmless from the defense costs and liability Clallam County~m4~ 8equim, except that Clallam County shall assume the risk from all activities and liabilities arising from the ownership and operation of the Blue Mountain facility. It is agreed among the Parties that the cost of liability insurance for such risk shall be considered an operation cost of the Regional Solid Waste Export and Transfer System and that any uninsured risk which results in a cost to the City and or County may be recovered by an appropriate increase in rates to cover any uninsured loss. 1N WITNESS HEREOF, this Agreement is executed by Clallam County and by the C~4/es-City of Port Angeles~, Washington. Dated this __ day of ,2004. Dated this __ day of ,2004. CITY OF PORT ANGELES CLALLAM COUNTY BOARD OF COMMISSIONERS Richard Headrick, Mayor Steve Tharinger, Chair 7/"/ .... ~/"~"r~a~ '" ..... Page 10 Attest: Attest: Becky Upton, City Clerk Tr/sh Perrott, Clerk of Board Approved As To Form: Approved As To Form: William E. Bloor, City Attorney Chris Melly, County Attorney 7/9/20047 ......... ......... Page (WITH SEQUIM) INTERLOCAL AGREEMENT REGARDING REGIONAL SOLID WASTE EXPORT AND TRANSFER SYSTEM COOPERATION AND IMPLEMENTATION THIS AGREEMENT is executed by and among Clallam County ("County") and the Cities of Port Angeles and Sequim (the "Cities") (the County and the Cities are collectively referred to herein as "the Parties") for the purposes of providing for competitively-priced regional solid waste export and transfer system facilities and services; promoting the health, safety and welfare of the County's and Cities' residents; and protecting the natural environment throughout the County. The Parties enter into this lnterlocal Agreement ("Agreement") effective as of the date set forth in Section 9(A) for the purposes and under the terms contained herein. WHEREAS, the Parties have cooperated in developing and implementing the County's Comprehensive Solid Waste Management Plan ("the Plan") pursuant to Chapters 35.21, 36.58 and 70.95 RCW on behalf of the County and the Cities; and WHEREAS, the Plan recommends exporting solid waste to meet future disposal needs of the residents, businesses, visitors and institutions within the Cities and the County; and WHEREAS, the Plan recommends using interlocal agreements to create the institutional arrangements needed to implement the Plan; and WHEREAS, the Plan recommends closing the Port Angeles Sanitary Landfill, the only operating municipal solid waste landfill in Clallam County serving the area fi.om Lake Crescent eastward, as depicted in the map and legal description attached hereto as Exhibit A, when it reaches capacity (projected by the end of 2006), and citing a transfer station at the Port Angeles Sanitary Landfill, for the purposes of exporting solid waste for final disposal after the landfill is closed; and WHEREAS, in anticipation of the closure of the Port Angeles landfill and in recognition of the absence of alternative local landfill sites, the Parties desire to cooperate to provide for a Regional Solid Waste Export and Transfer System consistent with the Plan; and WHEREAS, by entering into an inteflocal agreement providing for each Party's cooperation, the Parties can more effectively and efficiently implement the Plan and procure management of the Regional Solid Waste Export and Transfer System; and 7/9/20047/9/20046/20/2~34 Page WHEREAS, the Plan anticipates that the Regional Solid Waste Export and Transfer System facilities will be located at the current site of the Port Angeles Sanitary Landfill, will be operated by the City of Port Angeles or a private company under contract with the City of Port Angeles, and will be utilized by the Cities, County and by the private solid waste collection companies that serve the Cities and unincorporated area of the County from Lake Crescent eastward; and WHEREAS, the Pa~ies t,~ t!:i~ !nter!~eal Agreement !:aYeC_.it¥ of Port Angeles has been responsible for accumulating closure and post-closure funds as required by law for the Port Angeles LandfillrLand whereas the Parties intend for the Regional Solid Waste Transfer and Export System funding arrangement to provide for any additional funds related to unmet or unanticipated Port Angeles Landfill requirements provided, however, that this shall not make Clallam County or the Cil¥ of Sequhn separately or individually obligmed tbr liabilities arising t¥om Port Angeles' landfill site_; and WHEREAS, the Parties intend that a portion of the tipping fees for the Blue Mountain Transfer Station be collected to continue to pay for the lease fee and upkeep costs for this site presently being covered by the Blue Mountain Drop Box fees collected by the County; and WHEREAS, the Parties are authorized and empowered to enter into this Agreement pursuant to Chapters 39.34 and 70.95 RCW. THEREFORE, in consideration of mutual promises and covenants herein, and in order to implement the terms of the County's Comprehensive Solid Waste Management Plan, the Parties agree: Section 1. Definitions: Except for the terms defined in this section, and unless the context indicates otherwise, for the purposes of this Agreement and any related agreements, the Parties shall use the definitions found in RCW 70.95.030 and WAC 173-350, as they may be amended. "Agreement" means this inteflocal agreement. "Cities" means both of the Cities of Port Angeles and Sequim, Washington (collectively, the "Cities"). "County" means Clallam County, Washington. "Ecology" means the Washington State Department of Ecology or its successor agency. "Plan" means the Clallam County Comprehensive Solid Waste Management Plan as mnended in accordance with this A~eement. 7/9/20047/9/2004~/30"2~,X)4 Page 2 "Solid Waste Advisory Committee" is an advisory committee whose members are appointed by the County Commissioners to advise them on solid waste matters. "Regional Solid Waste Export and Transfer System" means the facilities owned by and/or contracted by, the City of Port Angeles, where deposit, processing, recycling, composting, ~moderate-risk waste handling, and transfer of solid waste for disposal through a long-haul contract occurs. This will include the Blue Mountain &,97 ~box site, facilities, and operations, unless the Board of Clallam County Commissioners determines in its sole discretion at any time during the term of this agreement that the Blue Mountain ~]r,9? drop-box facilities should no longer be operated. "Vendor" means either the City of Port Angeles or any company or person with whom the City of Port Angeles contracts for any or all of the design, construction, ownership, or operation of the Regional Solid Waste Export and Transfer System. Section2. Responsibilities of the County. The County shall: A. Process amendments to the Plan that are submitted by the Joint Solid Waste Advisory Board to the Solid Waste Advisory Committee to provide for disposal of all non-recyclable solid waste generated in the unincorporated areas of the County from Lake Crescent eastward at the Regional Solid Waste Export and Transfer System site(s) to the extent permitted by law. The Regional Solid Waste Export and Transfer System will be the only designated Export and Transfer System in the County East of Lake Crescent for the term of this Agreement. B. Process amendments to the County's zoning code, solid waste facility permitting process ordinance, and other applicable ordinances to prohibit solid waste transfer and export thcilities that are not consistent with the Plan and to designate the Regional Solid Waste Export and Transfer System as the County's solid waste system consistent with the Plan and RCW 36.58.040, to the extent permitted by law. C. Make a good faith effort to negotiate and execute with Jefferson County an interlocal agreement requiring each county to amend its comprehensive solid waste management plan and other related ordinances and agreements, to the extent permitted by law, to prohibit accepting waste generated outside its boundaries at disposal sites within said county; unless approved as an emergency. D. Consider forming a solid waste disposal district in the eastern part of the County, to the extent it may become necessary to provide a dedicated 7/9/20047/9/200a, 6/29/2004 Page 3 source of funds to help finance the capital and operations and maintenance costs associated with the Solid Waste Export and Transfer System. E. Shall not construct or have constructed any municipal solid waste export and transfer system in the eastem part of Clallam County without the approval of the Joint Solid Waste Advisory Board. F. Participate in developing the request for qualifications/proposals and selecting the contractor(s), for designing, building and if appropriate operating the Solid Waste Export and Transfer System facilities, disposal services, and long haul services. G. Appoint representatives to the Joint Solid Waste Advisory Board. H. Negotiate and administer the land lease between the County and the Washington Department of Natural Resoumes enabling the continuation of drop box services at Blue Mountain. I. Recyc!ing: Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and land clearing waste) programs to minimize the mounts of material for waste export. Section 3. Responsibilities of the City of Port Angeles. The City of Port Angeles shall: A. Conduct a procurement process for selecting one or more Vendors to provide solid waste export and transfer system facilities, disposal services, and long-haul services consistent with the Plan; B. In consultation and cooperation with the County and the City of Sequim, either provide itself, or enter into and administer a contract with one or more Vendors for, solid waste export and transfer system, and disposal services for the Parties consistent with the Plan; and C. In consultation and cooperation with the County and the City of Sequim and the City of Port Angeles establish a Joint Solid Waste Advisory Board that will review policies, procedures, costs, rates and will operate as an advisory group to the City of Port Angeles. D. Provide administrative service related to the operation of the Regional Solid Waste Export and Transfer System site(s) and long-haul service including but not limited to: 1. Act as custodian of the Regional Solid Waste Export and Transfer System/landfill enterprise fund created under this 71912004719!20945./?0/20'.~4 Page 4 Agreement. 2. Incorporate in its annual budget the budget for Regional Solid Waste Export and Transfer System services under this Agreement including, but not limited to revenues, administrative costs of the pa~desParties, direct costs, indirect costs according to approved cost allocation plans, personnel services, insurance and land leases. 3. For facilities that are operated by the City of Port Angeles as part of the solid waste export and transfer system, provide for administrative service including, but not limited to personnel services and insurance. E. Provide a site at the existing site of the Port Angeles Sanitary Landfill for the regional Solid Waste Export System facilities at no cost to the partiesParties. F. The Blue Mountain operations and facilities will be included in the enterprise fund of the Regional Solid Waste Export and Transfer System with consideration of increased service, if approved by the Joint Solid Waste Advisory Committee. G. Direct solid waste collected within the City of Port Angeles (whether collected directly by the City of Port Angeles or by a solid waste collection company) to the Vendor selected through the procurement process; take reasonable action to enforce such direction, including but not limited to entering into a long term contract that requires disposal of solid waste generated in the City of Port Angeles at the Regional Solid Waste Export and Transfer System facilities; and if the City of Port Angeles ceases to operate its own solid waste collection system, then the City shall require that any contract with solid waste haulers provides that solid waste hauled is disposed of at the Regional Solid Waste Export and Transfer System facilities consistent with the Plan. H. Process consideration of an ordinance designating the Regional Solid Waste Export and Transfer System as the City's solid waste system consistent with the Plan and RCW 35.21.120, and amendments to the City's zoning code and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan. I. Cooperate with the County in the formation of a disposal district to the extent the district includes incorporated areas of the City of Port Angeles. J. ~Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and 7/9/20047/9/2~9~,~ 79/2£~(?, Page 5 land cleating waste) programs to minimize the amounts of material for waste export. Section 4. Responsibilities of the City of Sequim. The City of Sequim shall: A. Direct solid waste (except yard debris and composting operations and materials) collected within the City of Sequim (whether collected directly by the City of Sequim or by a solid waste collection company) to the Vendor selected through the procurement process; take reasonable action to enforce such direction, including but not limited to entering into a long term contract with the City of Port Angeles for disposal of solid waste generated in the City of Sequim at the Regional Solid Waste Export and Transfer System facilities; and if the City of Sequim ceases to operate its own solid waste collection system, then the City shall require that any contract with solid waste haulers provides that solid waste hauled is disposed of at the Regional Solid Waste Export and Transfer System facilities consistent with the Plan; and B. Cooperate in implementing Plan elements. C. Participate in developing the request for qualifications/proposals and selecting the contractor(s), for designing, building and if appropriate operating the solid waste facilities. D. Appoint a representative to the Joint Solid Waste Advisory Board. E. Process consideration of an ordinance designating the Regional Solid Waste Export and Transfer System as the City's solid waste system consistent with the Plan and RCW 35.21.120, and amendments to the City's zoning code and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan. F. Cooperate with the County in the formation of a disposal district to the extent the district includes incorporated areas of the City of Sequim. G. Recyc!:~ng: Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and land cleating waste) programs to minimize the amounts of material for waste export. Section 5. Duration of Agreement: This Agreement shall be in full force and effect from and after its effective date, as set forth in Section 9(A), and shall remain in force for 20 years from the date the Regional Solid Waste Export and Transfer System first commences reg~:!ar commercial operations. Any changes to this Agreement must be agreed upon by all tmmesparties. This Agreement shall automatically be extended for a period of five (5) years unless notice is given by 7/9/200~.7/9/299~,5, ~9!299a. Page 6 any party to the other parities within eighteen (18) months prior to the expiration of the original twenty (20) year term, and in writing, that they do not desire to extend the agreement. Section 6. Governance and Rates. A. Joint Solid Waste Advisory Board: A Joint Solid Waste Advisory Board (JSWAB) shall be established. The Board will be composed of staff from CI ............... :, · Parties to this Agreement. The Board will act as an advisory committee to the Port Angeles City Council, the Clallam County Solid Waste Advisory Committee and others as necessary. Although C a a n Cou ~tv. the City of Sequirn, and the City of Port Angeles may each be represented by multiple members on the JSWAB in accordance with 6(B), each Party shall only be entitled to a single vote on recommendations to the Port Angeles C tx,, Ad tsorx, Committee and others Council, the Clallam Countx,, Solid Waste v' ' B. Membership Body: The JSWAB shall consist of the following members: (1) Director of Public Works Clallam County, (2) Director of Public Works m~d Utilities City of Port Angeles, (3) Director of Public Works City of Sequim, (4) Solid Waste Superintendent City of Port Angeles, (5) Utilities Division Manager or designee from Clallam County. The Board shall draw upon other staff members from the agencies as necessary and appropriate to assist is carrying out its duties. C. Officers and Procedures: The JSWAB shall select a chair and such other officers as deemed necessary to conduct business. The Board shall adopt rules and procedures it deems necessary for the proper and efficient conduct of its business. D. Meetings: The JSWAB shall be responsible to fix a time and place for its meetings. E. Powers and Duties: The JSWAB shall have the following powers and duties: 1. Make recommendations for the management and operation of the Regional Solid Waste Export and Transfer System operated under this Agreement. 2. Submit budget recommendations to the participating jurisdictions for action. 3. Review and recommend fees and charges and for services related to disposal, operation of facilities,_ and transfer and 7 9/20047 Page 7 disposal of solid waste associated with the Regional Solid Waste Export and Transfer System. and for disposal districts. 4. Review and recmmnend mnendments to the Plan to the Solid Waste Advisotw Comnfittee. Review and recommend amendments to this Agreement to the Parties of this A~reement. Enterprise Fund: There shall be maintained an enterprise fund separate from all other funds within the City of Port Angeles into which revenues received from the partics-Parties to this Agreement, fees, charges, and any other revenues associated with the operation and management of the Regional Solid Waste Export and Transfer System shall be deposited. This fund shall be part of the City of Port Angeles aunual budget and administered in accordance with the City budget regulation and guidelines. Expenditures from the fund shall be made only for the Solid Waste Export and Transfer System and landfill projects and closure and post closure costs not captured during the operation of the landfill activities, including actual administrative costs of the ~Parties pursuant to their obligations under this agreement, the comprehensive solid waste plan, state and federal laws. G:.G. Costs: The costs of solid waste disposal and management of all pm4es Parties to this Agreement not otherwise reimbursed shall be included in the operation of the enterprise fund. These costs shall include, but not be limited to, operation of transfer sites, long haul, recycling operations, composting, capitalization of facilities and equipment, administrative costs, planning, and other costs directly related to regional Solid Waste Export and Transfer System/Landfill operations. The JSWAB shall determine inclusive costs which shall be fair, reasonable m~d equitable to all Parties of this A~eement when making budget recommendations to the City of Port Angeles City Council. I4:.H. Fees and Charges: Fees for disposal shall be fair. reasonable and equitable and shall be applied equally throughout the jurisdiction of all participating pa,cries-Parties at the Port Angeles regional site. Fees shall be determined based on the cost of sen, ice and may be set in various amounts based oil differences in waste lvpes, the type of facility receiving that waste, commercial and sell-haulers, and tbr any other fair, reasonable and equitable reason permitted by law. A separate fee structure may be developed for the Blue Mountain site, which shall be sufficient to cover all costs associated with operation of the Blue Mountain site. A surcharge or higher rate may be charged for solid waste collected within jurisdictions 7/9/20047/9/2994(;/':02~,~4 Page 8 that are not signatories to this Agreement. Section 7. Access to Records: Duly authorized representative of the pa."t, ic: Parties to this Agreement sham have the right to inspect the records of the JSWAB and the accounts and records of the City of Port Angeles relating to solid waste disposal and transfer operations at any reasonable time. Section 8. Assets and Liabilities: On termination of this Agreement, any assets owned separately by a Party sham remain the property of that Party. In entering into this Agreement, no Party assumes liability for the actions or activities of the other, except as provided by law or as may be agreed by the Parties. Section 9. Miscellaneous Provisions A. Effective Date: This Agreement shall take effect the first date on which all Parties have taken all necessary action to authorize and execute this Agreement. B. Amendment. This Agreement may be amended only in writing and only by agreement of all Parties except as set forth in this section. The Parties hereby agree that this Agreement may be amended to allow any other governmental entity within Clallam County, including tribes and the Town of Forks, to join as a party. Additional parties joining shall not be members of the JSWAB-:,'ithout .... : .... :"~"- ...~j ...... ol 8% of '~ .......... ~ ..... ;" "'~ '-' ..... +" Additional parties shall be bound by all provisions of this Agreement. C. Withdrawal: A party Party may withdraw from this Agreement only upon unanimous agreement of all _,...;~op,~,.t;,~~.... _~o ,..~o, which agreement shall provide the means by which a penalty may be charged for withdrawal from the agreement by the pa~iesParties. D. Non-Waiver: No waiver by any party Patty of any term or condition of this Agreement shall be deemed or construed to constitute a waiver of any other term or condition or of any subsequent breach whether of the same or of a different provision of this Agreement. E. No Third-Party Beneficiary: This Agreement is entered into to protect the public health, safety and welfare of the residents of the Cities and County and to promote the effective and efficient disposal or other handling of solid waste in the Cities and the County. This Agreement is not entered into nor may any amendment to the Plan be made with the intent that it shall benefit any party not signing this Agreement, and no other person or entity shall be entitled to be treated as a third-party beneficiary of this Agreement, 7/9/20047/9/2004(;'20/200'1 Page 9 F. Assignment: Upon the creation of a solid waste disposal district pursuant to Ch. 36.58 RCW, the County and any City opting into such a disposal district may assign its rights and obligations under this Agreement to the solid waste disposal district. No other assignment of this Agreement is permitted without the prior written consent of all Parties. G. Severability: If any provision of this Agreement is determined to be invalid, the remaining provisions shall continue in full rome and effect. H. Counterparts: This Agreement may be executed in two or more counterparts, and each such counterpart shall be deemed to be an original instrument. All such counterparts together will constitute one and the same Agreement. I. Risk Allocation - Liability: As among the Parties, the City of Port Angeles shall assume the risk for all activities and liabilities arising from the ownership and operation of the Regional Solid Waste Export and Transfer System and the Port Angeles landfill and shall hold harmless I from the defense costs and liability Clallam County and the City of Sequim, except that Clallam County shall assume the risk from all activities and liabilities arising from the ownership and operation of the Blue Mountain facility. It is agreed among the Parties that the cost of liability insurance for such risk shall be considered an operation cost of the Regional Solid Waste Export and Transfer System and that any uninsured risk which results in a cost to the City and or County may be recovered by an appropriate increase in rates to cover any uninsured loss. IN WITNESS HEREOF, this Agreement is executed by Clallam County and by the Cities of Port Angeles and Sequim, Washington. Dated this __ day of ,2004. Dated this day of ., 2004. CITY OF PORT ANGELES CLALLAM COUNTY BOARD OF COMMISSIONERS Richard Headrick, Mayor Steve Tharinger, Chair Attest: Attest: Becky Upton, City Clerk Trish Perrott, Clerk of Board Approved As To Form: Approved As To Form: 7/9/20047/9/20045/g 0'2004 J Page 10 William E. Bloor, City Attorney Chris Melly, County Attorney CITY OF SEQUIM Walter E. Schubert, Mayor Attest: Karen Kuznek, City Clerk Approved As To Form: Craig Ritchie, City Attorney 7/9/20047/9/299~',:~ 20/299 Page '113/2004 Summary of the Proposed Changes to the Interlocal Agreement - With'Ct'and Without~ Sequim Revise "party" and "parties' to title All case because they are defined terms. Minor housekeeping item. * · Definition of "Cities" revised to "City' · i which only includes Port Angeles. Minor housekeeping item. Definition of "Plan' revised to include An amendment to the Plan is amendments, underway:, ,, * · Definition of "Regional Solid Waste The term moderate risk waste under Export and Transfer System" revised State law !s "moder.ate-risk waste". to become consistent with State law The term 'drop box under the RFP is * · and the RFP. "drop-box". 2A, 6E4 Revise the definition of Plan and other Sections to only allow amendments to Only parties to the agreement should the Plan that affects Parties to the be allowed to amend elements of the . · Agreement by Parties to the Plan that affect parties to the Agreement. Agreement. 21, 3J, 4E & G Delete "Recycling:" heading. Minor housekeeping item. * · 3A Insert "services to operate facilities" Minor housekeeping item. * · Costs should also be able to be Revise to include "costs". reviewed by the JSWAB. * · If Sequim isn't a party to the Agreement this Section should be revised to apply to additional parties that become a party to the · Revise "Responsibilities of the City of Agreement. Prior subsection 4C and Sequim" to "Responsibilities of 4D deleted since they would not additional parties" apply. Revise to require designation of This would result in less risk of regional system as additional party's stranded costs for the regional · 4C solid waste system, system. This Would result in less risk of Revise to require additional parties to stranded costs for the regional · ew 4D !~N,, . ¢~;~i~ agree t~ a di?osal district, system. Removes Sequim from JSWAB. Includes 1 vote per Party. Includes · JSWAB review of amendments to the 6A Plan and the Agreement. Inserts the word "Utilities" into position 6B title. Corrects position title. * · The JSWAB should review and recommend fees and charges for · · 6E3 Revise to include "disposal districts", disposal districts. Cost shall be fair, reasonable and 7G Expand description of costs equitable to all Parties. * · Fees shall be based on the cost of service and may be set in various . · 7H Expand description of fees. amounts... This would create equity among the Creates a level playing field if an current and additional parties to the . · 9B additional party enters the Agreement Agreement. Revise liability related to the Port Port Angeles to assume all risk for the 91 An~leles landfill Port Angeles landfill * · (WITH SEQIJIM) INTERLOCAL AGREEMENT REGARDING REGIONAL SOLID WASTE EXPORT AND TRANSFER SYSTEM COOPERATION AND IMPLEMENTATION THIS AGREEMENT is executed by and among Clallam County ("County") and the Cities of Port Angeles and Sequim (the "Cities") (the County and the Cities are collectively referred to herein as "the Parties") for the purposes of providing for competitively-priced regional solid waste export and transfer system facilities and services; promoting the health, safety and welfare of the County's and Cities' residents; and protecting the natural environment throughout the County. The Parties enter into this Interlocal Agreement ("Agreement") effective as of the date set forth in Section 9(A) for the purposes and under the terms contained herein. WHEREAS, the Parties have cooperated in developing and implementing the County's Comprehensive Solid Waste Management Plan ("the Plan") pursuant to Chapters 35.21, 36.58 and 70.95 RCW on behalf of the County and the Cities; and WHEREAS, the Plan recommends exporting solid waste to meet future disposal needs of the residents, businesses, visitors and institutions within the Cities and the County; and WHEREAS, the Plan recommends using interlocal agreements to create the institutional arrangements needed to implement the Plan; and WHEREAS, the Plan recommends closing the Port Angeles Sanitary Landfill, the only operating municipal solid waste landfill in Clallam County serving the area from Lake Crescent eastward, as depicted in the map and legal description attached hereto as Exhibit A, when it reaches capacity (projected by the end of 2006), and citing a transfer station at the Port Angeles Sanitary Landfill, for the purposes of exporting solid waste for final disposal after the landfill is closed; and WHEREAS, in anticipation of the closure of the Port Angeles landfill and in recognition of the absence of alternative local landfill sites, the Parties desire to cooperate to provide for a Regional Solid Waste Export and Transfer System consistent with the Plan; and WHEREAS, by entering into an interlocal agreement providing for each Party's cooperation, the Parties can more effectively and efficiently implement the Plan and procure management of the Regional Solid Waste Export and Transfer System; and 7/13/2004~2004 Page WHEREAS, the Plan anticipates that the Regional Solid Waste Export and Transfer System facilities will be located at the current site of the Port Angeles Sanitary Landfill, will be operated by the City of Port Angeles or a private company under contract with the City of Port Angeles, and will be utilized by the Cities, County and by the private solid waste collection companies that serve the Cities and unincorporated area of the County from Lake Crescent eastward; and D.**,;~o *.x *N~o l,~4..~l~nl . '~v ................ Clty of Port Angeles has WHEREAS, the .......................... ^ .........' ~ ..... ' ' been responsible for accumulating closure and post-closure funds as required by law for the Port Angeles Landfill,i_and whereas the Parties intend for the Regional Solid Waste Transfer and Export System funding arrangement to provide for any additional funds related to unmet or unanticipated Port Angeles Landfill requirements provided, however. that this shall not make Clallam Count, or the Clt} of Seqmm separately or individually obligated for liabilities m'ising from Port Angeles' landfill site; and WHEREAS, the Parties intend that a portion of the tipping fees for the Blue Mountain Transfer Station be collected to continue to pay for the lease fee and upkeep costs for this site presently being covered by the Blue Mountain Drop Box fees collected by the County; and WHEREAS, the Parties are authorized and empowered to enter into this Agreement pursuant to Chapters 39.34 and 70.95 RCW. THEREFORE, in consideration of mutual promises and covenants herein, and in order to implement the terms of the County's Comprehensive Solid Waste Management Plan, the Parties agree: Section 1. Definitions: Except for the terms defined in this section, and unless the context indicates otherwise, for the purposes of this Agreement and any related agreements, the Parties shall use the definitions found in RCW 70.95.030 and WAC 173-350, as they may be amended. "Agreement" means this interlocal agreement. "Cities" means both of the Cities of Port Angeles and Seqnim, Washington (collectively, the "Cities"). "County" means Clallam County, Washington. "Ecology" means the Washington State Department of Ecology or its successor agency. "Plan" means the Clallam County Comprehensive Solid Waste Management Plan as alnended in accordance with this A~'cement. Page 2 I "Solid Waste Advisory Committee" is an advisory committee whose members are appointed by the County Commissioners to advise them on solid waste matters. "Regional Solid Waste Export and Transfer System" means the facilities owned by and/or contracted by, the City of Port Angeles, where deposit, processing, recycling, composting, n:zderate moderate-risk waste handling, and transfer of solid waste for disposal through a long-haul contract occurs. This will include the Blue Mountain drz? drop-box site, facilities, and operations, unless the Board of Clallam County Commissioners determines in its sole discretion at any time during the term of this agreement that the Blue Mountain drcp drop-box facilities should no longer be operated. "Vendor" means either the City of Port Angeles or any company or person with whom the City of Port Angeles contracts for any or all of the design, construction, ownership, or operation of the Regional Solid Waste Export and Transfer System. Section 2. Responsibilities of the County. The County shall: A. erocess(~consideration of~m~endments to the Plan that are submitted by the Joint Soli~waste~AUV~sorv~'~ Board to the Solid Waste Advisory Committee to provide for disposal of all non-recyclable solid waste generated in the unincorporated areas of the County from Lake Crescent eastward at the Regional Solid Waste Export and Transfer System site(s) to the extent permitted by law. The Regional Solid Waste Export and Transfer System will be the only designated Export and Transfer System in the County East of Lake Crescent for the term of this Agreement. B. Process~~amendments to the County's zoning code, solid waste fai'~li~fi~m~ing process ordinance, and other applicable ordinances to prohibit solid waste transfer and export facilities that are not consistent with the Plan and to designate the Regional Solid Waste Export and Transfer System as the County's solid waste system consistent with the Plan and RCW 36.58.040, to the extent permitted by law. C. Make a good faith effort to negotiate and execute with Jefferson County an interlocal agreement requiring each county to amend its comprehensive solid waste management plan and other related ordinances and agreements, to the extent permitted by law, to prohibit accepting waste generated outside its boundaries at disposal sites within said county; unless approved as an emergency. D. Consider forming a solid waste disposal district in the eastern part of the County, to the extent it may become necessary to provide a dedicated 7/13/2004 ,x4:'4&~2a004 Page 3 source of funds to help finance the capital and operations and maintenance costs associated with the Solid Waste Export and Transfer System. E. Shall not construct or have constructed any municipal solid waste export and transfer system in the eastern part of Clallam County without the approval of the Joint Solid Waste Advisory Board. F. Participate in developing the request for qualifications/proposals and selecting the contractor(s), for designing, building and if appropriate operating the Solid Waste Export and Transfer System facilities, disposal services, and long haul services. G. Appoint representatives to the Joint Solid Waste Advisory Board. H. Negotiate and administer the land lease between the County and the Washington Department of Natural Resources enabling the continuation of drop box services at Blue Mountain. I. ~Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and land clearing waste) programs to minimize the amounts of material for waste export. Section 3. Responsibilities of the City of Port Angeles. The City of Port Angeles shall: A. Conduct a procurement process for selecting one or more Vendors to provide solid waste export and transfer system facilities, services to operate the facilities if appropriate, disposal services, and long-haul services consistent with the Plan; B. In consultation and cooperation with the County and the City of Sequim, either provide itself, or enter into and administer a contract with one or more Vendors for, solid waste export and transfer system, and disposal services for the Parties consistent with the Plan; and C. In consultation and cooperation with the County and the City of Sequim and the City of Port Angeles establish a Joint Solid Waste Advisory Board that will review policies, procedures, costs, rates and will operate as an advisory group to the City of Port Angeles. D. Provide administrative service related to the operation of the Regional Solid Waste Export and Transfer System site(s) and long-haul service including but not limited to: -~ -, ~ ~ ,"mn,~ Page 4 ,~1 ~2004~ 1 1. Act as custodian of the Regional Solid Waste Export and Transfer System/landfill enterprise fund created under this Agreement. 2. Incorporate in its annual budget the budget for Regional Solid Waste Export and Transfer System services under this Agreement including, but not limited to revenues, administrative costs of the pa~qesParties, direct costs, indirect costs according to approved cost allocation plans, personnel services, insurance and land leases. 3. For facilities that are operated by the City of Port Angeles as part of the solid waste export and transfer system, provide for administrative service including, but not limited to personnel services and insurance. E. Provide a site at the existing site of the Port Angeles Sanitary Landfill for the regional Solid Waste Export System facilities at no cost to the panic,Parties. F. The Blue Mountain operations and facilities will be included in the enterprise fund of the Regional Solid Waste Export and Transfer System with consideration of increased service, if approved by the Joint Solid Waste Advisory Committee. G. Direct solid waste collected within the City of Port Angeles (whether collected directly by the City of Port Angeles or by a solid waste collection company) to the Vendor selected through the procurement process; take reasonable action to enforce such direction, including but not limited to entering into a long term contract that requires disposal of solid waste generated in the City of Port Angeles at the Regional Solid Waste Export and Transfer System facilities; and if the City of Port Angeles ceases to operate its own solid waste collection system, then the City shall require that any contract with solid waste haulers provides that solid waste hauled is disposed of at the Regional Solid Waste Export and Transfer System facilities consistent with the Plan. H. Process consideration of an ordinance designating the Regional Solid Waste Export and Transfer System as the City's solid waste system consistent with the Plan and RCW 35.21.120, and amendments to the City's zoning code and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan. I. Cooperate with the County in the formation of a disposal district to the extent the district includes incorporated areas of the City of Port Angeles. 'L/ 3~2004~/2004 Page 5 I J. Recycling: Encourage recycling efforts to the maximum extent possible I for yard debris, special wastes, and CDL (construction, demolition, and land clearing waste) programs to minimize the amounts of material for waste export. Section 4. Responsibilities of the City of Sequim. The City of Sequim shall: A. Direct solid waste (except yard debris and composting operations and materials) collected within the City of Sequim (whether collected directly by the City of Sequim or by a solid waste collection company) to the Vendor selected through the procurement process; take reasonable action to enforce such direction, including but not limited to entering into a long term contract with the City of Port Angeles for disposal of solid waste generated in the City of Sequim at the Regional Solid Waste Export and Transfer System facilities; and if the City of Sequim ceases to operate its own solid waste collection system, then the City shall require that any contract with solid waste haulers provides that solid waste hauled is disposed of at the Regional Solid Waste Export and Transfer System facilities consistent with the Plan; and B. Cooperate in implementing Plan elements. C. Participate in developing the request for qualifications/proposals and selecting the contractor(s), for designing, building and if appropriate operating the solid waste facilities. D. Appoint a representative to the Joint Solid Waste Advisory Board. E. Process consideration of an ordinance designating the Regional Solid Waste Export and Transfer System as the City's solid waste system consistent with the Plan and RCW 35.21.120, and amendments to the City's zoning code and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan. F. Cooperate with the County in the formation of a disposal district to the extent the district includes incorporated areas of the City of Sequim. G. Recycling: Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and land cleating waste) programs to minimize the amounts of material for waste export. Section 5. Responsibilities of additional parties. Additional parties to this Agreement shall: 7/13/20042,q2/2004 Page 6 I A. Direct solid waste (except yard debris and composting operations and materials) collected within the jurisdictional area of the additional party Iwhether collected directly by the additional pt~'ty or by a solid waste collection company) to the Vendor selected through the procuremenl process: take reasonable action to enforce such direction, including but not limited to entering into a long term contract with the City of Port Angeles tbr disposal of solid waste generated in the iurisdictional area of the additional party at the Re~oional Solid Waste Export and Transfer System facilities: and if the additional party ceases to operate its own solid waste collection system, then the additional party shall require that any contract with solid waste haulers provides that solid waste hauled is disposed of at the Regional Solid Waste Export and Transfer System facilities consistent with the Plan; and B. Cooperate in implementing Plan elements. C. Adopt a resolution by the additional party's governing body approving the designation of the Re~onal Solid Waste Export and Transfer System as rite additional part~,'s solid waste system consislent with the Plan and RCW 35.21.120, and mnendments to the additional party's zoning code and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan. The resolution and amendments to zoning code and other applicable ordinances shall be made concun'ent with or prior to the additional party accepting an amenchuent to this A~eement to include the additional party. D. Cooperate with the Coantv in the formation of a disposal district including adoption of a resolution by the additional pm'ty's governing body approving the district to the extent the district includes incorporated areas of the additional party. The resolution shall be made concurrent with or prior to the additional party accepting an mnendment to this Agreement to include the additional party. E. Encore'age recycling eftbrts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and land clearing waste) programs to minimize the amotmts of material for waste export. Section 56. Duration of Agreement: This Agreement shall be in full force and effect from and after its effective date, as set forth in Section 9(A), and shall remain in force for 20 years from the date the Regional Solid Waste Export and Transfer System first commences regular ,ommercial operations. Any changes to this Agreement must be agreed upon by all particaParties. This Agreement shall automatically be extended for a period of five (5) years unless notice is given by any party to the other parities within eighteen (18) months prior to the expiration 7/13/20047/12.'g004 Page 7 of the original twenty (20) year term, and in writing, that they do not. desire to extend the agreement. Section 67. Governance and Rates. A. Joint Solid Waste Advisory Board: A Joint Solid Waste Advisory Board (JSWAB) shall be established. The Board will be composed of staff from Parties to this Af~reement. The Board wJl] act as an advisory committee to the Port Angeles City Council, the Clallam County Solid Waste Advisory Committee and others as necessary. Although Clal mn Coanty, the City of Sequim, and the City of Port Angeles may each be represented by multiple members on the JSWAB in accordance with 6(B). each Party shall only be entitled to a single vote on recommendations to the Port Angeles Cotmcil. the Clallam County Solid Waste Advisory Committee and others as necessary. B. Membership Body: The JSWAB shall consist of the following members: (1) Director of Public Works Clallam County, (2) Director of Public Works mad Utilities City of Port Angeles, (3) Director of Public Works City of Sequim, (4) Solid Waste Superintendent City of Port Angeles, (5) Utilities Division Manager or designee from Clallam County. The Board shall draw upon other staff members from the agencies as necessary and appropriate to assist is carrying out its duties. C. Officers and Procedures: The JSWAB shall select a chair and such other officers as deemed necessary to conduct business. The Board shall adopt rules and procedures it deems necessary for the proper and efficient conduct of its business. D. Meetings: The JSWAB shall be responsible to fix a time and place for its meetings. E. Powers and Duties: The JSWAB shall have the following powers and duties: 1. Make recommendations for the management and operation of the Regional Solid Waste Export and Transfer System operated under this Agreement. 2. Submit budget recommendations to the participating jurisdictions for action. 3. Review and recommend fees and charges and for services related to disposal, operation of facilities._ and transfer and disposal of solid waste associated with the Regional Solid ,, I.~, 2004 ......... Page Waste Export and Transfer System. and for disposal districts. 4. Review and recommend amendments to the Plan to the Solid Waste Advisory Committee. Review and recommend amendments to this Agreement to the Parties of this Agreement. BF. Enterprise Fund: There shall be maintained an enterprise fund separate from all other funds within the City of Port Angeles into which revenues received from the pa,~ies Pm~ties to this Agreement, fees, charges, and any other revenues associated with the operation and management of the Regional Solid Waste Export and Transfer System shall be deposited. This fund shall be part of the City of Port Angeles annual budget and administered in accordance with the City budget regulation and guidelines. Expenditures from the fund shall be made only for the Solid Waste Export and Transfer System and landfill projects and closure and post closure costs not captured during the operation of the landfill activities, including actual administrative costs of the -~*;~ Parties .pursuant to their obligations under this agreement, the comprehensive solid waste plan, state and federal laws. G:.G. Costs: The costs of solid waste disposal and management of all Parties to this Agreement not otherwise reimbursed shall be included in the operation of the enterprise fund. These costs shall include, but not be limited to, operation of transfer sites, long haul, recycling operations, composting, capitalization of facilities and equipment, administrative costs, planning, and other costs directly related to regional Solid Waste Export and Transfer System/Landfill operations. The JSWAB shall determine inclusive costs which shall be fair~ reasonable and equitable to all Parties oftbis AgTeement when making budget recommendations to the City of Port Angeles City Council. ~.H. Fees and Charges: Fees for disposal shall be fair, reasonable and equitable and shall be applied equally throughout the jurisdiction of all participating pa.~cg parties at the Port Angeles regional site. Fees shall be determined based on the cost of service and may be set in various mnounts based on differences in waste types, the type of facility receiving that wasle. commercial and self-haulers, and for any otber fair. reasonable and equitable reason pem~itted by law. A separate fee structure may be developed for the Blue Mountain site, which shall be sufficient to cover all costs associated with operation of the Blue Mountain site. A surcharge or higher rate may be charged for solid waste collected within jurisdictions 7/13/2004:~¢42:'2004 Page 9 that are not signatories to this Agreement. Section :78. Access to Records: Duly authorized representative of the .... :~- Parties to this Agreement shall have the right to inspect the records of the JSWAB and the accounts and records of the City of Port Angeles relating to solid waste disposal and transfer operations at any reasonable time. Section 89. Assets and Liabilities: On termination of this Agreement, any assets owned separately by a Party shall remain the property of that Party. In entering into this Agreement, no Party assumes liability for the actions or activities of the other, except as provided by law or as may be agreed by the Parties. Section 910. Miscellaneous Provisions A. Effective Date: This Agreement shall take effect the first date on which all Parties have taken ail necessary action to authorize and execute this Agreement. B. Amendment. This Agreement may be amended only in writing and only by agreement of all Parties except as set forth in this section. The Parties hereby agree that this Agreement may be amended to allow any other governmental entity within Clallam County, including tribes and the Town of Forks, to join as a party. Additional parties joining shall not be members of the JSWAE .......... -.,-~: .... ~.~'-+ ..... ' .... ~- ........... , oo/_ - he ..... ~ of ..... :" ~'~ c .... *'~ Additional parties shall be bound by ail provisions of this Aereement. C. Withdrawal: A ,, .... Part3 may withdraw from this Agreement only upon unanimous agreement of all ?~,~:~csPm'ties, which agreement shall provide the means by which a penalty may be charged for withdrawal from the agreement by the pa:x,~c:Pm'ties. D. Non-Waiver: No waiver by any pa:fy Party of any term or condition of this Agreement shall be deemed or construed to constitute a waiver of any other term or condition or of any subsequent breach whether of the same or of a different provision of this Agreement. E. No Third-Party Beneficiary: This Agreement is entered into to protect the public health, safety and welfare of the residents of the Cities and County and to promote the effective and efficient disposal or other handling of solid waste in the Cities and the County. This Agreement is not entered into with the intent that it shall benefit any party not signing this Agreement, and no other person or entity shall be entitled to be treated as a third-party beneficiary of this Agreement. 7/13/20047/12/290.! Page 10 F. Assignment: Upon the creation of a solid waste disposal district pursuant to Ch. 36.58 RCW, the County and any City opting into such a disposal district may assign its rights and obligations under this Agreement to the solid waste disposal district. No other assignment of this Agreement is permitted without the prior written consent of all Parties. G. Severability: If any provision of this Agreement 'is determined to be invalid, the remaining provisions shall continue in full force and effect. H. Counterparts: This Agreement may be executed in two or more counterparts, and each such counterpart shall be deemed to be an original instrument. All such counterparts together will constitute one and the same Agreement. I. Risk Allocation - Liability: As among the Parties, the City of Port Angeles shall assume the risk for all activities and liabilities arising from the ownership and operation of the Regional Solid Waste Export and Transfer System m~d the Port Angeles landfill and shall hold harmless from the defense costs and liability Clallam County and the City of Sequim, except that Clallam County shall assume the risk from all activities and liabilities arising from the ownership and operation of the Blue Mountain facility. It is agreed among the Parties that the cost of liability insurance for such risk shall be considered an operation cost of the Regional Solid Waste Export and Transfer System and that any uninsured risk which results in a cost to the City and or County may be recovered by an appropriate increase in rates to cover any uninsured loss. IN WITNESS HEREOF, this Agreement is executed by Clallam County and by the Cities of Port Angeles and Sequim, Washington. Dated this __ day of ,2004. Dated this day of ., 2004. CITY OF PORT ANGELES CLALLAM COUNTY BOARD OF COMMISSIONERS Richard Headrick, Mayor Steve Tharinger, Chair Attest: Attest: Becky Upton, City Clerk Trish Perrott, Clerk of Board Approved As To Form: Approved As To Form: 7/13/2004g~2/2004 Page 11 I William E. Bloor, City Attorney Chris Melly, County Attorney CITY OF SEQUIM Walter E. Schubert, Mayor Attest: Karen Kuznek, City Clerk Approved As To Form: Craig Ritchie, City Attorney 7/13~,2)04¢q_Z_c24(k4 Page 12 I (WITHOUT SEQUIM) INTERLOCAL AGREEMENT REGARDING REGIONAL SOLID WASTE EXPORT AND TRANSFER SYSTEM COOPERATION AND IMPLEMENTATION THIS AGREEMENT is executed by and among Clallam County ("County") and the C4,qes-CiW of Port Angeles a~(the "G4t-iesCity") (the County and the Ckicg City are collectively referred to herein as "the Parties") for the purposes of providing for competitively-priced regional solid waste export and transfer system facilities and services; promoting the health, safety and welfare of the County's and Gides~City's residents; and protecting the natural environment throughout the County. The Parties enter into this Interlocal Agreement ("Agreement") effective as of the date set forth in Section 9(A) for the purposes and under the terms contained herein. WHEREAS, the Parties have cooperated in developing and implementing the County's Comprehensive Solid Waste Management Plan ("the Plan") pursuant to Chapters 35.21, 36.58 and 70.95 RCW on behalf of the County and the Ckic3Citv; and WHEREAS, the Plan recommends exporting solid waste to meet future disposal needs of the residents, businesses, visitors and institutions within the Ck;~e: City and the County; and WHEREAS, the Plan recommends using interlocal agreements to create the institutional arrangements needed to implement the Plan; and WHEREAS, the Plan recommends closing the Port Angeles Sanitary Landfill, the only operating municipal solid waste landfill in Clallam County serving the area from Lake Crescent eastward, as depicted in the map and legal description attached hereto as Exhibit A, when it reaches capacity (.projected by the end of 2006), and citing a transfer station at the Port Angeles Sanitary Landfill, for the purposes of exporting solid waste for final disposal after the landfill is closed; and WHEREAS, in anticipation of the closure of the Port Angeles landfill and in recognition of the absence of alternative local landfill sites, the Parties desire to cooperate to provide for a Regional Solid Waste Export and Transfer System consistent with the Plan; and WHEREAS, by entering into an inteflocal agreement providing for each Party's cooperation, the Parties can more effectively and efficiently implement the Plan and procure management of the Regional Solid Waste Export and Transfer System; and 7/13/20047/12/2~a0'! Page 1 WHEREAS, the Plan anticipates that the Regional Solid Waste Export and Transfer System facilities will be located at the current site of the Port Angeles Sanitary Landfill, will be operated by the City of Port Angeles or a private company under contract with the City of Port Angeles, and will be utilized by the C?3cgCit3_,, County and by the private solid waste collection companies that serve the Citic: City and unincorporated area of the County from Lake Crescent eastward; and WHEREAS, the ~'~'; ..... ~:~ ~'~ ^ .......... ' l:avcCit¥ of Port Angeles has been responsible for accumulating closure and post-closure funds as required by law for the Port Angeles Landfillr;_and whereas the Parties intend for the Regional Solid Waste Transfer and Export System funding arrangement to provide for any additional funds related to unmet or unanticipated Port Angeles Landfill requirements provided, however, that this shall not make Clallmn Cotmty separately or individually obligated for liabilities arising from Port Angeles' landfill site; and WHEREAS, the Part/es intend that a portion of the tipping fees for the Blue Mountain Transfer Station be collected to continue to pay for the lease fee and upkeep costs for this site presently being covered by the Blue Mountain Drop Box fees collected by the County; and WHEREAS, the Parties are authorized and empowered to enter into this Agreement pursuant to Chapters 39.34 and 70.95 RCW. THEREFORE, in consideration of mutual promises and covenants herein, and in order to implement the terms of the County's Comprehensive Solid Waste Management Plan, the Parties agree: Section 1. Definitions: Except for the terms defined in this section, and unless the context indicates otherwise, for the purposes of this Agreement and any related agreements, the Parties shall use the definitions found in RCW 70.95.030 and WAC 173-350, as they may be amended. "Agreement" means this interlocal agreement. C.,,,sC~t~ means ..... the City of Port Angeles and e .... ;~ Washington ~^'~*:-'~"' *~'~" ':*:~" "County" means Clallam County, Washington. "Ecology" means the Washington State Department of Ecology or its successor agency. "Plan" means the Clallam County Comprehensive Solid Waste Management Plan as amended in accordance with this Agreement. 7~ I~ 20047 ....... Page 2 "Solid Waste Advisory Committee" is an advisory committee whose members are appointed by the County Commissioners to advise them on solid waste matters. "Regional Solid Waste Export and Transfer System" means the facilities owned by and/or contracted by, the City of Port Angeles, where deposit, processing, recycling, composting, mederate-moderate-fisk waste handling, and transfer of solid waste for disposal through a long-hanl contract occurs. This will include the Blue Mountain drc;~ ~box site, facilities, and operations, unless the Board of Clallam County Commissioners determines in its sole discretion at any time during the term of this agreement that the Blue Mountain &rap drop-box facilities should no longer be Operated. "Vendor" means either the City of Port Angeles or any company or person with whom the City of Port Angeles contracts for any or all of the design, construction, ownership, or operation of the Regional Solid Waste Export and Transfer System. Section 2. Responsibilities of the County. The County shall: A. Process o(ns.~ideration~o amendments to the Plan that are submitted by the Joint Solid 'gZ/~[~'A-3V~sory Board to the Solid Waste Advisory. Committee to provide for disposal of all non-recyclable solid waste generated in the unincorporated areas of the County from Lake Crescent eastward at the Regional Solid Waste Export and Transfer System site(s) to the extent permitted by law. The Regional Solid Waste Export and Transfer System will be the only designated Export and Transfer System in the County East of Lake Crescent for the term of this Agreement. B. Process co~"~-nsideration of~tmendments to the County's zoning code, solid waste fac~-'ilR2I~ryelS~tting process ordinance, and other applicable ordinances to prohibit solid waste transfer and export facilities that are not consistent with the Plan and to designate the Regional Solid Waste Export and Transfer System as the County's solid waste system consistent with the Plan and RCW 36.58.040, to the extent permitted by law. C. Make a good faith effort to negotiate and execute with Jefferson County an interlocal agreement requiring each county to amend its comprehensive solid waste management plan and other related ordinances and agreements, to the extent permitted by law, to prohibit accepting waste generated outside its boundaries at disposal sites within said county; unless approved as an emergency. D. Consider forming a solid waste disposal district in the eastern part of the County, to the extent it may become necessary to provide a dedicated source of funds to help finance the capital and operations and maintenance costs associated with the Solid Waste Export and Transfer System. 7/13/20047/12/200.! Page 3 E. Shall not construct or have constructed any municipal solid waste export and transfer system in the eastem part of Clallam County without the approval of the Joint Solid Waste Advisory Board. F. Participate in developing the request for qualifications/proposals and selecting the contractor(s), for designing, building and if appropriate operating the Solid Waste Export and Transfer System facilities, disposal services, and long haul services. G. Appoint representatives to the Joint Solid Waste Advisory Board. H. Negotiate and administer the land lease between the County and the Washington Department of Natural Resources enabling the continuation of drop box services at Blue Mountain. I..,~>.~ ...... ~ ~·~;.~,.. Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and land clearing waste) programs to minimize the amounts of material for waste export. Section 3. Responsibilities of the City of Port Angeles. The City of Port Angeles shall: A. Conduct a procurement process for selecting one or more Vendors to provide solid waste export and transfer system facilities, services to operate the facilities if appropriate, disposal services, and long-haul services consistent with the Plan; B. In consultation and cooperation with the County an~ *~'~ r,;*., cf e .... :~ either provide itself, or enter into and administer a contract with one or more Vendors for, solid waste export and transfer system, and disposal services for the Parties consistent with the Plan; and C. In consultation and cooperation with the County and the C~ty cf $cqu:.m an'3 ,~.,.,,~ ,-:,..,_ .............. ~.rD~., ^-....~ .... estabhsh' a Jmnt' Solid Waste Advisory Board that will review policies, procedures, costs, rates and will operate as an advisory group to the City of Port Angeles. D. Provide administrative service related to the operation of the Regional Solid Waste Export and Transfer System site(s) and long-haul service including but not limited to: 1. Act as custodian of the Regional Solid Waste Export and Transfer System/landfill enterprise fund created under this 7/13/20047/12/299,! Page 4 [ Agreement. 2. Incorporate in its annual budget the budget for Regional Solid Waste Export and Transfer System services under this Agreement including, but not limited to revenues, administrative costs of the pa,~iesParties, direct costs, indirect costs according to approved cost allocation plans, personnel services, insurance and land leases. 3. For facilities that are operated by the City of Port Angeles as part of the solid waste export and transfer system, provide for administrative service including, but not limited to personnel services and insurance. E. Provide a site at the existing site of the Port Angeles Sanitary Landfill for the regional Solid Waste Export System facilities at no cost to the ~Parties. F. The Blue Mountain operations and facilities will be included in the enterprise fund of the Regional Solid Waste Export and Transfer System with consideration of increased service, if approved by the Joint Solid Waste Advisory Committee. G. Direct solid waste collected within the City of Port Angeles (whether collected directly by the City of Port Angeles or by a solid waste collection company) to the Vendor selected through the procurement process; take reasonable action to enforce such direction, including but not limited to entering into a long term contract that requires disposal of solid waste generated in the City of Port Angeles at the Regional Solid Waste Export and Transfer System facilities; and if the City of Port Angeles ceases to operate its own solid waste collection system, then the City shall require that any contract with solid waste haulers provides that solid waste hauled is disposed of at the Regional Solid Waste Export and Transfer System facilities consistent with the Plan. H. Process consideration of an ordinance designating the Regional Solid Waste Export and Transfer System as the City's solid waste system consistent with the Plan and RCW 35.21.120, and amendments to the City's zoning code and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan. I. Cooperate with the County in the formation of a disposal district to the extent the district includes incorporated areas of the City of Port Angeles. J. Rec¥clin;~: Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and 7/I 3/20047/22/2904 Page 5 land clearing waste) programs to minimize the amounts of material for waste export. Section 4. Responsibilities of ........ ~ ...... ~ ..... addluonal parties. Thc r,: ScquimAdditional parties to this Agreement shall: A. Direct solid waste (except yard debris and composting operations and materials) collected within the ~iurisdictional area of the additional party (whether collected directly by the...,,~r': .... .,~ $cquimadditional party or by a solid waste collection company) to the Vendor selected through the procurement process; take reasonable action to enforce such direction, including but not limited to entering into a long term contract with the City of Port Angeles for disposal of solid waste generated in the ~ urisdictional area of the additional party at the Regional Solid Waste Export and Transfer System facilities; and if the r~:~.,..,.j w o..~ ..... addmonal party ceases to operate its own solid waste collection system, then the..,,~'~:~" additional party shall require that any contract with solid waste haulers provides that solid waste hauled is disposed of at the Regional Solid Waste Export and Transfer System facilities consistent with the Plan; and B. Cooperate in implementing Plan elements. C Part. ..... * .... .~.,~1 ...... +,. ..........+ c ...... l:,e:,~.:~/ ........ 1. ~A ' cf ' '~: .... *:"'~Ad pt sol ti bi the additional pam,'s governing body approving the desim~ation of the the ~,.: ~ additional Regional Solid Waste Export and Transfer System as t-:, .... party's solid waste system consistent with the Plan and RCW 35.21.120, and amendments to the r,:~ ..... additional party's zoning code and other applicable ordinances to prohibit solid waste facilities that are not consistent with the Plan. The resolution and mnendments to zoning code and other applicable ordinances shall be made concnrrent with or prior to the additional party accepling m~ amenchnent to this A~'eement to include the additional partx,, $I_), Cooperate with the County in the formation of a disposal district includimz adoption of a resolutk)n by the additional party's governing body approving the district to the extent the district includes incorporated areas of the reit:,' ,cf ,.cqu:madd]t]onal pm-ty. The resolution shall be made concurrent with or prior to the additional party accepting em amendment to this Agreement to include the additional pm'ty. GE. D ...... ~:-"' Encourage recycling efforts to the maximum extent possible for yard debris, special wastes, and CDL (construction, demolition, and land clearing waste) programs to minimize the amounts of material for waste export. .Section 5. Duration of Agreement: This Agreement shall be in full force and effect from and after its effective date, as set forth in Section 9(A), and shall remain in force for 20 years from the date the Regional Solid Waste Export and Transfer System first commences ~gutav-commercial operations. Any changes to v ...... Part~ s. This Agreement shall this Agreement must be agreed upon by all -~'~:~ 'e automatically be extended for a period of five (5) years unless notice is given by v,,,~j~ arty to the other parities within eighteen (18) months prior to the expiration of the original twenty (20) year term, and in writing, that they do not desire to extend the agreement. Section 6. Governance and Rates. A. Joint Solid Waste Advisory Board: A Joint Solid Waste Advisory Board (JSWAB) shall be established. The Board will be composed of staff from Parties to this A~reement. The Board will act as an advisory committee to the Port Angeles City Council, the Clallam County Solid Waste Advisory Cormnittee and others as necessary. Although Clallam County m~d the City of Port Angeles may each be represented by multiple members on the JSWAB in accordance with 6(B). each Party shall only be entitled to a single vote on recommendations to the Port Angeles City Council. the Clallam County Solid Waste Advisory Committee and others as necessary. B. Membership Body: The JSWAB shall consist of the following members: (1) Director of Public Works Clallam County, (2) Director of Public Works and Utilities City of Port Angeles, (3) Director cf P'a~!ic Wor!:~ r~:~,, ,,c c .... :~ ,a x Solid Waste Superintendent City of Port Angeles, (-5,~_) Utilities Division Manager or designee from Clallam County. The Board shall draw upon other staff members from the agencies as necessary and appropriate to assist is carrying out its duties. C. Officers and Procedures: The JSWAB shall select a chair and such other officers as deemed necessary to conduct business. The Board shall adopt rules and procedures it deems necessary for the proper and efficient conduct of its business. D. Meetings: The JSWAB shall be responsible to fix a time and place for its meetings. ., 1.~ 20047 ........ Page 7 E. Powers and Duties: The JSWAB shall have the following powers and duties: 1. Make recommendations for the management and operation of the Regional Solid Waste Export and Transfer System operated under this Agreement. 2. Submit budget recommendations to the participating jurisdictions for action. 3. Review and recommend fees and charges and for services related to disposal, operation of facilities._ m:d transfer and disposal of solid waste associated with the Regional Solid Waste Export and Transfer System, and for disposal districts. 4. Review and recommend amendments to the Plan to the Solid Waste Advisory Committee. Review and recommend amendments to this Agreement to the Parties of this Agreement. F. Enterprise Fund: There shall be maintained an enterprise fund separate from all other funds within the City of Port Angeles into which revenues received from the pa~iegParties to this Agreement, fees, charges, and any other revenues associated with the operation and management of the Regional Solid Waste Export and Transfer System shall be deposited. This fund shall be part of the City of Port Angeles annual budget and administered in accordance with the City budget regulation and guidelines. Expenditures from the fund shall be made only for the Solid Waste Export and Transfer System and landfill projects and closure and post closure costs not captured during the operation of the landfill activities, including actual administrative costs of the partiesParties pursuant to their obligations under this agreement, the comprehensive solid waste plan, state and federal laws. G. Costs: The costs of solid waste disposal and management of all ;3a~ic:l?arties to this Agreement not otherwise reimbursed shall be included in the operation of the enterprise fund. These costs shall include, but not be limited to, operation of transfer sites, long haul, recycling operations, composting, capitalization of facilities and equipment, administrative costs, planning, and other costs directly related to regional Solid Waste Export and Transfer System/Landfill operations. The JSWAB shall determine inclusive costs which shall be fair. reasonable and equitable to all Pm'ties of this .Agreement when making budget reconunendations to the City of Port Angeles City Council. 7/13/20047:12/2994 Page 8 H. Fees and Charges: Fees for disposal shall be fair, reasonable and equitable and shall be applied equally throughout the jurisdiction of all participating p:'~tiezParties at the Port Angeles regional site. Fees shall be determined based on the cost of selwice and may be set in various amounts based on differences in waste types, the type of facilit3, receivin~ that waste, commercial and self-haulers~ and for any other t:air, reasonable and equitable reason permitted by law. A separate fee structure may be developed for the Blue Mountain site, which shall be sufficient to cover all costs associated with operation of the Blue Mountain site. A surcharge or higher rate may be charged for solid waste collected within jurisdictions that are not signatories to this Agreement. Section 7. Access to Records: Duly authorized representative of the ~. ..... oJ artles to this Agreement shall have the right to inspect the records of the JSWAB and the accounts and records of the City of Port Angeles relating to solid waste disposal and transfer operations at any reasonable time. Section 8. Assets and Liabilities: On termination of this Agreement, any assets owned separately by a Party shall remain the property of that Party. In entering into this Agreement, no Party assumes liability for the actions or activities of the other, except as provided by law or as may be agreed by the Parties. Section 9. Miscellaneous Provisions A. Effective Date: This Agreement shall take effect the first date on which all Parties have taken all necessary action to authorize and execute this Agreement. B. Amendment. This Agreement may be amended only in writing and only by agreement of all Parties except as set forth in this section. The Parties hereby agree that this Agreement may be amended to allow any other governmental entity within Clallam County, including the City of Sequim, tribes and the Town of Forks, to join as an additional party. Additional parties joining shall not be members of the JSWAE ,,~ ..... ~. ........... ~ ~0/_ cf '~ ............ ~ .... ;~ ,~.~ r. .... ~.. Additional parties shall be bound bv all provisions of th s Aereement. C. Withdrawal: A ?artyPany may withdraw from this Agreement only upon unanimous agreement of all ~. ...... artles, which agreement shall provide the means by which a penalty may be charged for withdrawal from the agreement by the ....;~x)' ' · F ...... ames. D. Non-Waiver: No waiver by any p=~ypart¥ of any term or condition of this Agreement shall be deemed or construed to constitute a waiver of any 7/13/20047¢42/200'I Page 9 other term or condition or of any subsequent breach whether of the same or of a different provision of this Agreement. E. No Third-Party Beneficiary: This Agreement is entered into to protect the public health, safety and welfare of the residents of the C:,t~cz City and County and to promote the effective and efficient disposal or other handling of solid waste in the ~City and the County. This Agreement is not entered into with the intent that it shall benefit any party not signing this Agreement, and no other person or entity shall be entitled to be treated as a third-party beneficiary of this Agreement. F. Assignment: Upon the creation of a solid waste disposal district pursuant to Ch. 36.58 RCW, the County and any City opting into such a disposal district may assign its rights and obligations under this Agreement to the solid waste disposal district. No other assignment of this Agreement is permitted without the prior written consent of all Parties. G. Severability: If any provision of this Agreement is determined to be invalid, the remaining provisions shall continue in full force and effect. H. Counterparts: This Agreement may be executed in two or more counterparts, and each such counterpart shall be deemed to be an original instnunent. All such counterparts together will constitute one and the same Agreement. I. Risk Allocation - Liability: As among the Parties, the City of Port Angeles shall assume the risk for all activities and liabilities arising from the ownership and operation of the Regional Solid Waste Export and Transfer System and the Port Angeles landfill and shall hold harmless from the defense costs and liability Clallam County and ,~,~,,,,~ c,,,.,~.._,:-- except that Clallam County shall assume the risk from all activities and liabilities arising from the ownership and operation of the Blue Mountain facility. It is agreed among the Parties that the cost of liability insurance for such risk shall be considered an operation cost of the Regional Solid Waste Export and Transfer System and that any uninsured risk which results in a cost to the City and or County may be recovered by an appropriate increase in rates to cover any uninsured loss. IN WITNESS HEREOF, this Agreement is executed by Clallam County and by the Git4es-Citv of Port Angeles ...... ,~ ...... , Washington. Dated this ~_ day of ,2004. Dated this day of ., 2004. CITY OF PORT ANGELES CLALLAM COUNTY BOARD OF COMMISSIONERS Page 10 I Richard Headrick, Mayor Steve Tharinger, Chair Attest: Attest: Becky Upton, City Clerk Trish Perrott, Clerk of Board Approved As To Form: Approved As To Form: William E. Bloor, City Attorney Chris Melly, County Attorney 7/13/200,~ 7/12/2004 Page WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: July 13, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager RE: Washington Consumer Energy Fund Summary: A grant opportunity is available to the City under the Washington Consumer Energy Fund. A total of $201,014 is available under WCEF for Clallam County which would be shared between the Olympic Community Action Programs, Clallam County Public Utility District No. 1, and the City. Recommendation: Concur with Staff in providing a letter of endorsement for a collaborative project proposal under the Washington Consumer Energ~ Fund. Background/Analysis: The Washington Consumer Energy Fund (WCEF) was established in December of 2003. The fund was created from the proceeds of settlements negotiated by the Washington Attorney General with Williams Energy Company and the E1 Paso Corporation. The Seattle Foundation is managing the distribution of grants to non-profit organizations and governmental entities in Washington State for projects that benefit residential electric customers. The City, Olympic Community Action Programs (OlyCAP), and the Clallam County Public Utility District No. 1 (PUD) have been recruited by the Seattle Foundation to submit a collaborative project under the WCEF for a total of $201,014. OlyCAP will be the lead agency submitting a grant application. OlyCAP is anticipated to propose use of 1/3 of the available funds for energy assistance. The remaining 2/3 of the available funds will be divided between the City and the PUD based on residential customer count (8,500 City customers, 24,900 PUD customers). It does not appear that the City will be required to enter into an agreement to participate in the WCEF. N: IUAC\Ofi g~nal\washin gl on consumerenergyfand I wpd pORTANGELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: July 13, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Tom McCabe, Solid Waste Superintendent SUBJECT: Household Hazardous Waste Collection Event ;ummar¥: The City is being requested to participate in the annual Household Hazardous Waste Collection Event that is sponsored by Clallam County Environmental Health and the Department >f Ecology (DOE). DOE pays 75% of the costs and Clallam County bills the balance of the cost according to participation percentages. The Solid Waste Division budget includes funds to cover Ihe anticipated City share. Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor to sign the 2004 agreement with Clallam County to provide a maximum of $6,000 toward the cost of the Household Hazardous Waste Collection Event. Background: Clallam County sponsors the above referenced collection days with supplemental funding from DOE. The event is scheduled for September 24 and 25, Friday and Saturday, at the Wal-Mart parking lot. Grant funding from DOE pays 75% of the total costs of the event, which costs approximately $59,000. The City share of the balance historically has been approximately 33% of the households bringing hazardous waste to the event. Clallam County Environmental Health and Human Services has requested our participation in this event in an amount not to exceed $6,000 for in-kind services and/or cash. In 2003 the City received credit for $1,282, of in-kind services and paid $2,818, in cash for a total cost of $4,100. The Solid Waste Division budget includes funds for this annual event. Attachment: Memo from Clallam County Department of Health and Services Household Hazardous Waste Collection Agreement N :\UAC~FinaI\H H WEvent2004.wpd Clallam County Department of . Health and Human Services -?~.,S,~_~,~ '~ Telephone: 360-417-2258 * FAX: 360-4'i7-2313 ~,' ~UM/x~~ June 9, 2004 Tom McCabe, Solid Waste Superintendent City of Port Angeles PO Box 1150 Port Angeles, WA 98362 RE: 2004 Household Hazardous Waste Collection Event Dear Mr. McCabe: Thank you for your continued support of the Clallam County Household Hazardous Waste Event. Clallam County Department of Health and Human Services is once again soliciting your interest in sponsoring the annual Household Hazardous Waste collection event. The event date is scheduled for Friday, September 24th and Saturday, September 25th, 2004, at the Port Angeles Wal'l' Mart parking lot and on Sunday, September 26th, 2004, at the City of Sequim. As you know, the annual HHW collection event is identified as a task in the County's Moderate Risk Waste Plan. The events are costly but the Department of Ecology provides grant funding for the program. Through grant funding, the Department of Ecology will reimburse 75% of the cost, with the participating jurisdictions contributing a 25% cash match. Though we have not determined exact cost figures, I anticipate a cost of approximately $59,000 for the entire event. The County's cash match would then be $14,750; we are asking the City of Port Angeles contribute up to $6,000. We base funding contributions from the City of Port Angeles on historical participation rates of approximately 35%. The total cost for the 2003 event was $58,574, and the City of Port Angeles's participation rate was 28%. Last year's cost for the City of Port Angeles for the HHW Event was $4,100. I have enclosed two copies of the Memorandum of Agreement between Clallam County and the City of Port Angeles for signature. Please have both copies signed and return them to me as soon as possible for signature by the Commissioners. We will return one signed original to you for your records. Please contact me at your earliest convenience at (360) 417-2347 if you have any questions. Sincerely, c: Andy Brastad, Director of Environmental Health DeeDee Oman, Accountant, Health and Human Services project file correspondence file HOUSEHOLD HAZARDOUS WASTE COLLECTION AGREEMENT THIS AGREEMENT is entered into :his day o?, ,2004, bar,,,,een CLALLAM COdNTY, a political subdivision c,t tho State of Washinc4~on, and 3'6 CITY OF PORT ANGELES, ~ municipal corporation. RECITALS WHEREAS, Ihe Country and lhe Oil,' el Peri Angeles desto to jointly epensor a household hazardous waste ca edt on event, which tent,.tire y s scheduled for So.ember 24 and 20 , 2004 in Port Angeles, and September 26'", 2004 i~ Sequin: and WHEREAS, the parde~ desire le Oh'(er into an agrearrlent setting forth their respeclive NOW, THE,~FORE, ~r'~ '~d:L:al Curl~:idera:i0rt of the 3r~r-lises canlair:ed he,cie, Ihe parties agree as follows: Ceiam Oour~y shal~ be oesF, onsib e for I~e organization, prcmot on, educalion, collection ar~d disposal of tee hazardous waste coileclion evenl and the waste collected, 2. Ti~e Oily of Pa'l Angeles agrees t~ contribute, L~O to s × d~usand (S6,COP,} i'~ costs associated wit,q event stallinG, pu~iici:y a,3d waste management a~c disposal of waste collected; ~'ovided further, tqat the County shail provide cocumom~.tio~ of the costs associated with the evont including, but not lim~ed to, c~anizallon, prcmot on, education, collection and disposal and shall provide the City cf Port Angeles with such documentatior~, whereupon the City shell Fay its linanoiel cc~ntdbution hereunder to the Clallarn County Deparlment of Heakh and Human Services within ~hirty {30) days of receipt of the documentation. 3. Clallam Cobnty agrees :e defend; i2demnify and hoJc the Oily of Port Angele.~, Ee elected and appo:nted officers and employees harmless from and against any cia{m, demand, judgment, cost cr expense, including roasonaole a~ornoy foes, because of personal or bodily injur;,, including de~h ~t any dme resulting therefrom, st.;stained by any person(s), or properly damage arising from Clallam Coum'y's ne~!~gance in the pedormance of fr.,~ dc.rice hereunden C~TY OF PORT ANGELES BOARD OF COUNTY COMMI$SiONER~ Name Stephen P. Tharinger (Chair) Title Cate ATTEST: Trish Perrett, Clerk of ~he Board APPROVED AS TO FORM: CHR'ISTOPH~R MELLY C~$f Deputy Prcseculing Attorney 'or C;allem County pORTANGELES WASHINGTON, U.S.A. UTILITY ADVISORY GOMMITTI=E MEMO DATE: July 13, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Jeff Young, Supt. WWTP SUBJECT: Combined Sewer Overflow Pollution Prevention Plan Summary: The Pollution Prevention Plan required by Department of Ecology (DOE) has been reviewed by our consultant, Brown & Caldwell, and City Staff. The Pollution Prevention Plan (PPP) will be submitted to DOE by July 22, 2004. Upon DOE approval, City staffwill implement the PPP. The PPP will require additional staff hours for compliance activities. IRecommendation: For information only. Background/Analysis: The City of Port Angeles was issued a National Pollutant Discharge Elimination System (NPDES) Waste Discharge Permit on May 31, 2002. This permit, which went into effect on July 1, 2002, requires the City to comply with the EPA's nine minimum controls for combined sewer overflows (CSOs). In a previous correspondence to DOE dated August 9, 2002, the City outlined our approach and level of effort that would be required to comply with these requirements. Before the City could fully implement the nine minimum controls, EPA inspected our facility and the combined sewer system on October 27th, 2003 and noted that we were only partially in compliance. City staffnext met with DOE to discuss how to address the noted deficiencies related to CSOs. One of these is the requirement to implement a CSO Pollution Prevention Plan addressing the nine minimum controls. City Staff, in consultation with Brown & Caldwell, have drafted a PPP for DOE review and approval. The work load required to implement the PPP is estimated to be approximately 1.5 FTE's. A Powerpoint presentation outlining the details of the PPP will be presented by staff. D:\wwtp~vl EMOS\uac\uacppp71304.wpd City of Port Angeles Combined Sewer Overflow Pollution Prevention Plan Presented by: Jeff Young City of Port Angeles Wastewater Treatment Plant July 13, 2004 Why a Pollution Prevention Plan · NPDES - Requirement · EPA Combined Sewer Overflow Control Policy (40CFR122) Nine minimum controls Nine Minimum Controls · Operation and Maintenance Programs · Maximum Use of the Sewer System · Review and Modify Pretreatment Systems · WWTP Maximum Flow Operation · Prohibition of CSOs During Dry Weather · Solids and Floatable Controls · Pollution Prevention Program · Public Notification · Monitoring and Sampling Plan Operation and Maintenance (Collection System) · Outfalls and Regulator Structures · Manholes and Catch Basins · Sanitary and Storm Sewers Added Emphasis & Improved Documentation Maximum Use of Sewer System · System Limitations · Small sewer trunk lines · Limited Pump Station Storage · Leachate Lagoons at Landfill · No storage available in Critical Areas · Downtown or Francis Street area where needed Pretreatment Program (Minor Industrial Dischargers) · Monitor and Inspect Spill Control Plans · Perform Pretreatment Surveys WWTP Maximum Flow Operation (System Limitations) · Emergency Bypass Capability will remain · Plant Rerating (2004), Suspended Solids reached 85% limit during wet weather flows Prohibition of CSOs During Dry Weather · Replacing Check Valves w/Tideflex · Inspect CSO Site (when notified) · Improved Inspection Procedures & Documentation · Pump stations : ~ - . · Catch Basins Solids and Floatable Controls · Interim Baffles Installed · Implement Fats, Oil & Grease (FOG) BMP Plan · Install Permanent Baffles ~ Pollution Prevention Program (on going) · Sewer Cleaning ~ · Catch Basin Cleaning · Street Sweeping · Storm Drain Labeling · Household Hazardous Waste Collection · Public Education · Litter Control Public Notification · CSO event notification · Signage · Web Site Monitoring and Sampling Plan · Sampling Program · Locations · Frequency · I~rotocols · QA/QC · Data Management · Implementation · Personnel Scheduling Implementation Timetable · O&M Programs - 3,~/4~ Qtr 2005 · Maximum Use of the Sewer System - Current · Review and Modify Pretreatment Systems - 2005 · WWTP Maximum Flow Operation - 3~d/4th Qtr 2004 · Prohibition of CSOs During Dry Weather -ongoing · Plan to be presented to UAC 8/17/04 · Solids and Floatable Controls - Ongoing · FOG Program June 2005 · Pollution Prevention Program - ~,v2.~ Qtr 2005 · Public Notification - Ongoing · Monitoring and Sampling Plan - Summer 2004 Questions pORTANGELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: JULY 13, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Glenn A. Cutler, Director of Public Works and Utilities SUBJECT: Update of Combined Sewer Overflow Directed Actions by Department of Ecology ;ummary: Per the May 11, 2004 UAC meeting, attached is a summary of actions and their ;tatus required to meet the Department of Ecology's CSO requirements. lecommendation: No action required. Provided for information. Background/Analysis: City Staff and our consultant, Brown and Caldwetl, have been aggressively pursuing accomplishing the DOE required actions within the required time lines. A table of the required items, actions, and completion dates is attached. The information is provided for information. Attach: DOE Actions & Schedule Table N:\UAC~FinaI\CSO-UAC update 2.wpd pORTANGELES WAS H ~ N G T O N, UTILITY ADVISORY COMMITTEE MEMO DATE: July 13, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: JAMES L. HARPER RE: RESIDENTIAL ELECTRIC EXTENSION POLICY Summary: The City currently requires any developer or individual customer to pay for all electrical improvements necessary to serve their proposed development prior to starting the installation. The establishment of a connection fee to cover costs associated with the connection of the customer and collecting these fees directly from the customer rather than the developer will not appreciably change the ultimate cost of service to the customer. It will result in the City >articipating in a portion of the cost until the lots are developed. Recommendation: UAC forward a positive recommendation to Council to approve electrical connection fees of $410.00 for overhead service and $713.00 for underground service and direct the Electrical Extension Policy be revised accordingly. Background/Analysis: The City currently requires any developer or individual customer to pay for all electrical improvements necessary to serve a proposed development prior to starting the installation. Between 1990 and 1996 the City had a Service Credit for new electrical customers. This Service Credit was $917 for any new service until 1993 when it was increased to $1013 and restricted to underground service only until being discontinued in 1996. The Service Credit was a credit applied to the cost of extending service. It reduced the payment required from a customer transferring that burden to the City to be recovered in rates. We have reviewed the current policy at the request of the City Manager. The current City policy was reviewed and compared to those of Clallam County PUD, Douglas County PUD, Grays Harbor PUD and Puget Sound Energy whose policies could be obtained in a timely manner. All of these utilities charge developers or new customers less than the total cost of providing service. Most of the discounts are directly tied to not charging for transformers, transformer capacity or meters. A brief comparison is attached as Exhibit A. We are proposing the establishment of a fixed connection fee to be paid by each customer to cover the cost deemed applicable by the City Council for the transformer, meter and connection labor. This will recover these costs directly from the customer and not collect them in advance from the developer who ultimately passes them on to the customer. The developer will only be required to pay the cost of extending primary power to each lot and the connection fee, paid by the customer, will cover charges for transforming and connecting power to each residence. Individual customers requiting extension of the primary for service would pay the estimated cost . · of the primary extension in addition to the service connection fee. The potential connection fee has been calculated for two options. Option 1: Continue the current policy, where the developer pays all costs, no connection fee. Option 2: The developer pays all costs except for transformer, meter and service. The customer pays an overhead connection fee of $410.00 or an underground connection lee of$713.00 for costs including a portion of the transformer, the meter and service connection labor. ' The staff recommends Option 2, which will result in minimal increased cost to the City and no increased cost to the customer. The projected financial impact to the City Electric Fund based on enclosed typical residential development is approximately $350 per lot of which the principle amount is recoverable thru the connection fees as the lots are built out or recovery and reuse of the transformers if the lots do not build out. The City Electric Fund will experience only the expense of the interest during the build out of the lots. The Community and Economic Development Committee has reviewed the proposal and recommended that the connection fees be established and the extension policy be revised to so reflect. Staff recommends the UAC discuss the issue and forward a positive recommendation to Council to approve electrical connection fees of $410.00 for overhead service and $713.00 for underground service and direct the Electrical Extension Policy be revised to so reflect. connfee EXHIBIT A EXTENSION POLICY COMPARISON UTILITY DEVELOPER CUSTOMER City Light Utility - Current Policy Total cost of any facilities required toNo Charge Development extend power to a new development is requested in advance of construction. City Light Utility - Current Policy Not Applicable Total cost of any facilities required to Single Customer extend power to a new customer is requested in advance of construction. Connection Charge for each customer CitYDevelopmentLight Utility - Proposed Policy Total cost of all facilities required to based on cost of typical transformer, extend power to a new development meter and service. excluding transformers, meters and services is requested in advance of construction. City Light Utility - Proposed Policy Not Applicable Total cost of all facilities required to Single Customer extend power excluding transformers, meters and services plus Connection Charge based on cost of typical transformer, meter and service. Clallam County PUD #1 Development Total cost of all facilities required to Connection Charge for each customer based on installation labor cost of typical extend power to a new development transformer, meter and service. excluding transformers, meters and services is requested in advance of construction. Clallam County PUD #1 Not Applicable Total cost of all facilities required to Single Customer extend power excluding transformers, meters and services plus Connection Charge based on installation labor cost of typical transformer, meter and service. Douglas County PUD No charges Development Total cost of all facilities less five (5) times the extimated annual revenue not to be less than 50% of total cost. May require secured funds for discounted amount to be refunded as customers are added. connfee Douglas County PUD Not Applicable Total cost of all facilities less five (5) Single Customer times the estimated annual revenue not to be less than 50% of total cost. Grays Harbor PUD Total cost of all facilities required toTotal cost of required facilities to extend Development extend power to each lot excluding from developer provided facilities to transformers, meters and services is customer including transformer, meter requested in advance of construction, and service less $30.00 per KVA of the estimated required transformer capacity. A revenue guarantee contract for 20% of the PUD cost per year for 8 years. Grays Harbor PUD Not Applicable Total cost of required facilities to extend Single Customer from existing facilities to customer including transformer, meter and service less $30.00 per KVA of the estimated required transformer capacity. Aisc require a connection charge plus a revenue guarantee contract for 20% of the PUD cost per year for 8 years. Puget Sound Energy Total cost of all facilities required to No charges Development extend power to each lot including transformers, meters and services less a "Margin Allowance" of $1117 per lot is requested in advance of construction. Puget Sound Energy Not Applicable Total cost of all facilities required to Single Customer extend power to the customer including transformers, meters and services less a "Margin Allowance" of $1 117 is requested in advance of construction. pORTANGELES W A S H I N G T O N, U, ,~. A, UTILITY ADVISORY COMMITTEE MEMO DATE: July 13, 2004 To: UTILITY ADVISORY COMMITTEE FROM: JAMES L. HARPER, ELECTRICAL ENGINEER SUBJECT: Electric Underground Conversion Ediz Hook Phase II, Project 00-06 Summary: The City Council, starting in 1999 and annually thereafter has approved the bud'~eting of $50,000 per year to underground the overhead electrical facilities along Ediz Hook. Phase I was completed in 2001. Prior to finalizing the 2005 budget we are requesting that the UAC review the concept of this project and affirm budgeting Phase II for 2005. Recommendation: The UAC reaffirm the concept of this project and approve including $250,000 in the 2005 budget for Electric Underground Conversion Ediz Hook Phase II, Project 00-06. Background / Analysis: Ediz Hook is one of the prime interest areas for tourists visiting the City. The overhead electric facilities along the Hook are visually obtrusive in this scenic area and interfere with some recreational uses. The City Council starting in 1999 and annually thereafter has approved the budgeting of $50,000 per year to fund the undergrounding of the overhead electrical facilities along Ediz Hook. To achieve economies of scale the project has been planned for construction in three phases. Phase I, completed in 2001 at a cost of $150,000, extended from the Coast Guard entrance to the police radio tower. Approximately 6,700 feet of overhead remains between the Police radio tower and the Nippon Paper Mill. The Phases are summarized as follows: P.ASEI LOCATION I LENGTHI COST I STATUS I Coast Guard to Radio Tower 2000 fi $150,000 Completed in 2001 II Radio Tower to Log Dump 2500 ft $250,000 Scheduled for 2005 III Log Dump To BP Fuel Tanks 4200 ft $250,000* Scheduled for 2010 Total Project 8700 ft *Waterfront Trail repaving not required for this ~hase resulted in the lower ~roject costs. The UAC is requested to reaffirm the concept of this project and support inclusion of $250,000 in the 2005 Electic Utility budget for Electric Underground Conversion Ediz Hook Phase II, Project 00-06. Project Location: I PHASE EDIZ HOOK PROJECT N:~PWKS\LIG HTXENG R\PROJ ECTS\EDIZHOOK\Phase 2\uacrev.wpd UTILITY ADVISORY COMMITTEE MEMO [ J DATE: July 13, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director for Power Systems SUBJECT: Non-Wires Alternatives Demonstration Project Summary: Alternatives to building transmission lines with more capacity are being investigated as a means to delay construction on the main transmission lines serving the North Olympic peninsula. The attached proposal identifies two of the City's generators that could become part of a larger generation aggregation project by Celerity Energy, a consulting firm under contract with the Bonneville Power Administration. Recommendation: UAC express support to continue investigating the attached proposal by Celerity Energy. Background/Analysis: The Bonneville Power Administration is investigating several alternatives that will allow a delay in rebuilding the transmission line serving the North Olympic peninsula. Delaying this project will save money for all users of the transmission system. This project is the second of three types of alternatives that are being evaluated on the peninsula. Nippon Paper Company has been participating in a load curtailment alternative and there will be one more alternative that focuses on peak conservation. The proposal for this project includes two diesel fired generators owned by the City. The first is a 900 kW generator located at the Rarmey collector, and the second is a 550 kW generator located at the wastewater treatment plant. The conceptual details are included in the proposal. This proposal does not obligate the City in any way to participate in this project. Celerity wanted to get a preliminary approval for the concept before they invest a lot of money into the detailed economic evaluation and engineering design. IfUAC approves this conceptual proposal, staff will return with a participation agreement in the future after design and analysis have been completed. City Council approval will be required for the participation agreement. N :\UAC\Final\Non-wires alternatives.doc creating powerful solulio~s together Bonneville Power Administration Upper Peninsula Demonstration Project Non-Wires Alternatives 2004 Mr. Scott McLain Deputy Director of Power Systems Public Works and Utilities Dept. City of Port Angeles 321 East Fifth Street Port Angeles, WA 98362-0217 Dear Mr. McLain; On behalf of Celerity Energy, I am pleased to provide you with the following proposal for participation in the Upper Peninsula Demonstration Project. First, we'd like to describe the purpose of the Project and its scope. Then we will describe for you how your organization can participate and the benefits that you and the Project realize. Information about the Proiect The Bonneville Power Administration (BPA) is demonstrating the benefits of dispatchable distributed generation as a means to defer the construction of transmission line upgrades and provide rate savings to the Region. BPA has identified the Upper Olympic Peninsula as a region that could benefit from the availability of dispatchable loads and resources as a means to manage super-peak winter usage in the unlikely event that transmission line delivery becomes unstable. The likelihood of events such as this occurring are small, but the value of managing certain targeted loads during these critical times could pay large dividends in increased reliability and the possible avoidance of larger outage conditions. With this Project, Celerity Energy, under contract with BPA, is aggregating up to twelve customer sites where the concept of load shedding can be put to actual application. Celerity Energy will manage all implementation aspects of the Project, including the scope of your participation. CELERITY 6 r-I 6 R G Y There are a number of facets in determining how loads, supported by existing standby generators, can be effectively deployed so as to minimize any potential negative impacts to your operations, while helping you realize economic and operational improvements. The Project is targeting end-use customers, such as City of Port Angeles, that can utilize existing standby generation to provide their resoume requirements during load shedding events. The Project will involve the installation of communications and control equipment, an evaluation of the environmental aspects of participation (i.e. emissions, noise), and possible upgrades to your electrical system to more effectively and fully deploy your resoume capability. After this evaluation and installation period, the Project will operate for up to three years by periodically exercising your generator through a coordinated process with you. The hours anticipated for operation for the Project are expected to be between 50 and 100 hours annually and will, to the extent possible, coincide with testing that you routinely conduct with your facility. Proposal for Your Participation. Celerity Energy has had the opportunity to visit with you and your facility to determine whether City of Port Angeles would be a suitable candidate for participation. We believe that an excellent opportunity exists and are prepared to offer the following: 1. Generator serving domestic water use at Elwha Ranney collector: · Communications and Control System. Install a communications gateway to provide remote dispatch capability and recording of Elwha diesel standby generator output during periods of operation (Elwha Generator). The Elwha Generator has a standby capacity of about 900 kW. Monthly reporting of actual operating hours, including monthly testing, Project operation and local outage response will be provided to City of Port Angeles through the use of this communications equipment. Enhancements, such as a local alarm can be installed (i.e. flashing light) to signal that generator operation will commence within a prescribed period of time (i.e. 2 minutes). · Upgrade the existing switchgear and intercoimection arrangement for parallel operation. The current electrical operation at the Elwha pumping station is for the existing standby generator to provide for the power needs of the pumps during local outage conditions. The Elwha Generator currently only operates in a "break before make" condition. That is, the switchgear currently installed at the station first senses a loss of power from the local grid, disconnects the station from the grid and finally starts the Elwha Generator. This current configuration is typical for standby operation. Since the load at the Elwha station is intermittent (i.e. the pumps operate to fill the reservoir, which is then drawn down for domestic water use) if operated for Project purposes, there is no assurance that the Elwha Generator would be operating to support the pumps if no pumping is occurring. Therefore, 12ELEFIITY the load reduction would be uncertain. The Project is proposing to reconfigure the switchgear arrangement from the current Automatic Transfer Switch (ATS) arrangement to one where the Elwha Generator would operate in parallel with Port Angeles' local distribution grid, thereby assuring that the Elwha Generator is contributing its capacity in all circumstances. This approach, though typical in many other regions of the US, is not as commonplace in the Pacific Northwest for smaller generator sites such as the Elwha Generator due to the lack of financial incentive that would normally support the higher electrical equipment costs. The Project provides that unique financial incentive and is prepared to explore that option with the City. Based on confirmation of costs, the Project is prepared to contribute 100% of the cost of the Elwha Generator switchgear upgrade necessary for interconnecting to the City's grid, including equipment and installation, up to $100,000. Based on the City's acceptance of this conceptual proposal, Celerity Energy is prepared to secure an electrical engineering firm to provide a cost estimate for the Elwha Generator switchgear upgrade. We are prepared to have the engineering firm meet with the City's appropriate personnel to review and discuss the necessary system protection arrangements and to provide relevant industry standards and references. Once Celerity Energy has confirmed costs for equipment and installation and has presented the engineering approach and configuration to the City, we will prepare a Participant Agreement that defines the roles and responsibilities of the parties. This would be the definitive agreement that the City and Celerity Energy would enter into. At the end of the Project operation period of three years, the equipment would remain as the property of the City. 2. Generator serving wastewater treatment plant. · Communications and Control System. Install a communications gateway to provide remote dispatch capability and recording of wastewater treatment diesel standby generator output during periods of operation (WWT Generator). The WWT Generator has a standby capacity of 550 kW. Monthly reporting of actual operating hours, including monthly testing, Project operation and local outage response will be provided to City of Port Angeles through the use of this communications equipment. Enhancements, such as a local alarm can be installed (i.e. flashing light) to signal that generator operation will commence within a prescribed period of time (i.e. 2 minutes). · Upgrade ATS for WWT Generator. a. Confirm cost estimate for change-out of existing ATS that supports the WWT Generator to provide for a closed transition. The existing unit is an ATS that operates in a break before make mode during normal outage conditions. The replacement ATS proposed by Celerity Energy will provide for a closed transition that allows for the connected loads to transition from grid power to generator power without interruption during periods of generator testing and for dispatch for the Project. During local outages, the transfer scheme will operate as it does now, 3 when it sees a loss of grid power, the standby generator operates and picks up the connected load. During local grid failures, them will continue to be a momentary loss of supply until the generator can pick up the load. The difference with the new scheme is that more loads will be connected to the generator, alleviating the need to manually shift loads onto the generator and improving its load factor during operations. Celerity Energy will investigate whether a closed transition switch is commercially available in the size range of the WWT Generator. · Based on confirmation of costs, Celerity Energy is prepared to contribute 100% of the cost of the ATS upgrade, including equipment and installation, up to ?. · Scheduled Maintenance of the Elwha Generator. a. Celerity Energy will either directly contract for the City's routine standby generator maintenance on the Elwha and WWT Generators or reimburse City for scheduled maintenance on the units. The scope of the scheduled maintenance will encompass charges associated with semi-annual and mmual scheduled maintenance work, including an annual load bank test on the WWT Generator. This equates to an annual benefit to the City of approximately $3,500 annually. This benefit is available to the City upon commencement of the generators' participation in the Project. b. Scheduled maintenance will be according to the program attached (to be provided) and will comply with all industry-recommended maintenance services. · Operation and Testing of Standby Generators. a. Celerity Energy will reimburse the City for fuel used for Project operation and testing of the participating standby generators. This reimbursement will be capped at a maximum of 12 hours annually for testing plus any additional hours of Project operation that do not coincide with routine tests. We will limit operation of the two generators for Project purposes to no more than 100 hours annually each. Celerity Energy and the City will agree on an average fuel use per hour (in gallons) for the generators based on its established output and will provide payment based on the most recent cost (S/gal) for replacement fuel incurred by the City. Celerity Energy is exploring the use of bio-diesel for use in the Project and will approach the City regarding the use of bio-diesel, or a blend, once more detailed information is collected and can be presented. Other Features. We will conduct periodic tests with you to verify generator performance and output during the Project operation period. These tests will be scheduled with your cooperation. Your facilities will not be faced with any performance related penalties or assessments. Your agreement to be available and allow for remote start/stops for Project operation is all we require. The upgrades we propose for your facility are intended to enhance your operational effectiveness both for the benefit of your constituents as well as for local reliability. 4 We'll provide you with reports regarding all operating hours as well as reports relating to the scheduled maintenance we perform on your equipment. Contact Us. We at Celerity Energy are very excited about working with you on this Project. As always, please feel free to contact us if you have any questions regarding your participation and this proposal. Call Dennis Quinn at 503-526-8686 or (m) 503-332-3212. We'll be happy to review this proposal with you and others in your organization. Sincerely, Dennis J. Quinn President Celerity Energy Partners, LLC With your acceptance of the Proposal as outlined, Celerity Energy will confirm the costs and scope and prepare a Participant Agreement. You are not committed to participate in the Project and are not obligating City for any costs until a Participant Agreement is executed between City and Celerity Energy. Accepted by: Title: Date: 5