HomeMy WebLinkAboutAgenda Packet 09/11/2012I. Call To Order
II. Roll Call
III. Approval Of Minutes For August 14, 2012
IV. Late Items
V. Discussion Items:
A. Industrial Transmission Electric Rate Letter Agreement
B. Utility Rate Studies Presentation
VI. Information Only Items:
A. Bonneville Power Administration Technology Innovation Grant Award
(verbal report only)
B. Advanced Metering Infrastructure System Update (verbal report only)
C. Wireless Mobile Data System Update (verbal report only)
VII. Next Meeting Date: October 9, 2012
VIII. Adjournment
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Utility Advisory Committee
Council Chambers
Port Angeles, WA 98362
September 11, 2012 3:00 PM
AGENDA
Utility Advisory
Committee Members
Present:
Utility Advisory
Committee Members
Absent:
Staff Present:
Others Present:
IV. Late Items:
Utility Advisory Committee /Special City Council Meeting
Council Chambers
Port Angeles, WA 98362
August 14, 2012
3:00 p.m.
I. Call To Order
Chairman Dan DiGuilio called the meeting to order at 3:00 p.m.
II. Roll Call
UAC Assigned
Councilmembers Present:
Cherie Kidd, Dan Di Guilio, Sissi Bruch, PhD.
Other Councilmembers
Present: Murven Sears II, Patrick Downie (3:05)
Other Councilmembers
Absent: Brad Collins, Max Mania, Brooke Nelson
Dean Reed
Paul Elliott
Dan McKeen, Glenn Cutler, Bill Bloor, Larry Dunbar, Sondya Wray,
Tracey Grooms, Byron Olson, Mike Puntenney, Kathryn Neal,
Jonathan Boehme, Sue Roberds (3:10), Phil Lusk (3:50).
Rebecca Dugopolski Herrera
Art Griffith SAIC
Justin Wilson, P.E. NTI
Darlene Schanfald Olympic Environmental Council
III. Approval Of Minutes
Chairman Dan Di Guilio asked if there were any corrections to the minutes of June 12, 2012 and
July 10, 2012. Committee Member Sissi Bruch moved to approve the minutes. Cherie Kidd
seconded the motion, which carried unanimously.
Cherie Kidd: Requested that two options are prepared by staff for solid waste collection rate
adjustments including an across the board rate adjustment, and separation of curbside recycling
from the garbage collection rate (similar to yard waste).
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Larry Dunbar: Provided a brief summary of a recent Bonneville Power Administration grant award
notice as an information only item. After the terms and conditions of the grant award have been
negotiated, staff will return to the Utility Advisory Committee for consideration.
V. Discussion Items:
A. Stormwater Utility Presentations
Low Impact Development (verbal report only)
Mike Puntenney, P.E., City Engineer, gave a PowerPoint presentation on stormwater projects.
For information only, no action required.
Department ofEcologv FY2012 Stormwater and Low Impact Development Grant
Mike Puntenney, P.E., City Engineer, gave a PowerPoint presentation on the Stormwater Grant
Program.
Sissi Bruch moved to recommend City Council to authorize the City Manager to sign the
grant agreement with the Department of Ecology under the FY2012 Stormwater Grant
Program in the amount of up to $1,000,000, and to make minor modifications to the grant
agreement, if necessary. Murven Sears III seconded the motion, which carried unanimously.
Stormwater NPDES and Capital Needs Assessment (information only)
Mike Puntenney, P.E., City Engineer, introduced Rebecca Dugopolski from Herrera and Art
Griffith from SAIC and they provided a PowerPoint presentation on the Stormwater NPDES and
Capital Needs Assessment.
For information only, no action required.
Western Washington Phase II Municipal Stormwater Permit Renewal Considerations (verbal report
only)
Mike Puntenney, P.E., City Engineer, gave a PowerPoint presentation on the Western Washington
Phase II Municipal Stormwater Permit Renewal.
For information only, no action required.
A. Electric Utility Resource Plan
Glenn Cutler, P.E., Director of Public Works and Utilities, discussed the development of a Resource
Plan which is needed for the City's Electric Utility. The Resource Plan is required to comply with a
Washington State unfunded mandate. There was a brief discussion.
Dean Reed moved to recommend City Council to pass a resolution to approve the Electric
Utility 2012 Resource Plan. Sissi Bruch seconded the motion, which carried unanimously.
B. Morse Creek Hydroelectric Project Status
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Larry Dunbar, Deputy Director of Power and Telecommunications Systems, reviewed options to
continue operations or retire the Morse Creek Hydroelectric facility. A decision to retire the facility
should be based on an economic analysis.
Guidance was provided to staff to prepare an economic analysis of the Morse Creek
Hydroelectric facility and return to the Utility Advisory Committee for further consideration.
VI. Information Only Items:
A. Bonneville Power Administration Cooperative Agreement 48475 Modification
#3 (verbal report only)
Information only. No action taken.
B. Advance Metering Infrastructure System Update (verbal report only)
Agenda item not discussed due to time constraints.
C. Wireless Mobile Data System Update (verbal report only)
Agenda item not discussed due to time constraints.
VII.
VIII.
Next Meeting Date: September 11, 2012
Adjournment: 5:20 p.m.
Cherie Kidd, Mayor Sondya Wray, Administrative Specialist
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W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: September 11, 2012
To: Utility Advisory Committee
From: Larry Dunbar, Deputy Director of Power and Telecommunications Systems
Subject: Industrial Transmission Electric Rate Letter Agreement
Summary: The Bonneville Power Administration Tiered Rate Methodology went into effect
October 1, 2011. On September 20, 2011, City Council adopted the Industrial Transmission
electric rate ordinance and authorized the City Manager to accept a letter agreement that expired
on April 30, 2012. On April 17, 2012, City Council authorized the City Manager to accept a letter
agreement that will expire on September 30, 2012.
Recommendation: Forward a favorable recommendation to City Council to authorize the
City Manager to sign a letter agreement, and to make minor modifications to the letter
agreement, if necessary.
Background /Analysis: On October 1, 2011, the Bonneville Power Administration Tiered
Rate Methodology went into effect. On September 20, 2011, City Council adopted the Industrial
Transmission electric rate ordinance and authorized the City Manager to accept a letter agreement.
The rate ordinance and letter agreement established the methodology and rates for determining the
Industrial Transmission customer's electric bill. On April 17, 2012, City Council authorized the
City Manager to sign a new letter agreement that expires at the end of September 2012.
The intent of the letter agreement was to provide a transition during implementation of Tiered Rate
Methodology, which fundamentally changed the way the City provides services to its Industrial
Transmission customer. The most recent letter agreement established a temporary billing protocol
through September 30, 2012 such that in each month if the City's demand is less than the City's
contract demand quantity, the City will provide any available contract demand quantity to its
Industrial Transmission customer. During the first ten months of the letter agreement there has
only been 1 month when available contract demand quantity has been provided to the Industrial
Transmission customer.
The letter agreement has been satisfactory and the billing protocol should continue. A new letter
agreement is recommended for an additional year. Depending on the cost, benefit, and risks
experienced during the next year, a two -year letter agreement should be considered, which would
coincide with the next Bonneville Power Administration wholesale power rate period.
Staff recommends that the Utility Advisory Committee forwards a favorable recommendation to
authorize the City Manager to sign a letter agreement.
Attachment: Proposed Letter Agreement
N. \UAC\Final \IT Electric Rate Letter Agreement.doc
September 18, 2012
Harold Norlund, Mill Manager
Nippon Paper Industries USA Co.
1902 Marine Drive
Port Angeles, WA 98363
RE: Agreement For Power Service Billing
Dear Mr. Norlund,
As you are aware, on October 201`! ..the Bonneville Power Administration "BPA
implemented a new anduntiied rate designhand billing method forthe power sold to the City.
BPA's new rate fundamentally hangedthe wayythe City provides service to your
plant pursuant to trial TransmissionRate.
To help -avoid potential confusion or uncertainty caused by BPA's new rate structure
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on Septembers -30 2011 Nippon and the City enter into a letter agreement. The agreement
was intended to clarifvKh `w the City's and Nippon's respective Contract Demand Quantities
(CDQ) will used in calculating Nippon's electric bill. The agreement was extended and
now will expire at the end of,Se tember'- is year. We believe the letter agreement has been
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mutually beneficial and may continue to be mutually beneficial. Therefore, we would like to
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establish another temporary billing protocol for the bills rendered for service during the
period October 1, 2012 through September 30, 2013. The protocol is set out below.
Billing Protocol
In any month in which the City's Demand as determined by BPA is less than the
City's CDQ, the City will add to Nippon's CU CDQ the positive difference, if any, between
the City's CDQ and its Demand as determined by BPA for such month when calculating
Nippon's Demand Charge for such month.
It is our intention to continue to evaluate both efficacy and the need for this billing
protocol prior to its expiration date.
Page -2
September 18, 2012
The City and Nippon intend to continue to work in good faith to realize short and
longer term power purchase, demand response and wind integration opportunities, that may
be offered by BPA that have the potential to provide benefit to the City and Nippon, utilizing
Nippon's unique load characteristics and the City's status as a public, municipal utility.
In the event there is a change to the rates charged by the City for electricity supplied
to Nippon or to the calculation used to determine the monthly amount charged by the City for
electricity supplied to Nippon, either party may terminate this agreement.
If you find the foregoing acceptable, please sign one copy of this letter agreement and
return it to me.
Very truly yours,
CITY OF PORT ANGELES
By:
Dan McKeen, City Manager
By:
Harold Norlund, Mill Manager
Nippon Paper Industries RUSA Co.
PART NGELES
W A S H I N G T O N U.S.A.
Utility Advisory Committee Memo
Date: September 11, 2012
To: Utility Advisory Committee
From: Larry Dunbar, Deputy Director of Power and Telecommunications Systems
Subject: Utility Rate Studies Presentation
Summary: FCS Group completed the last comprehensive rate studies for the Electric, Water,
Wastewater, Solid Waste Collection and Transfer Station utilities. A presentation will be made at
today's meeting on the recommended retail rate and fee adjustments for 2013.
Recommendation: Forward a favorable recommendation to City Council to proceed with a
public hearing on utility rate and fee adjustments for the Electric, Telecommunications
Water, Wastewater, Solid Waste Collection, Transfer Station, and Stormwater Utilities.
Background /Analysis: FCS Group completed the last comprehensive cost of service studies
for the Electric, Water, Wastewater, Solid Waste Collections, and Solid Waste Transfer Station
utilities. Staff has updated the studies and has not used a consultant during the last four years.
Staff will present its findings and recommendations on this year's rate studies at today's meeting.
Following a presentation, staff will seek the recommendation of the Utility Advisory Committee to
City Council to proceed with a public hearing on the utility rate and fee adjustments for the
Electric, Telecommunications, Water, Wastewater, Solid Waste Collection, Transfer Station, and
Stormwater Utilities. The proposed City Council public hearing is October 2, 2012 for a
presentation of the rate studies and to allow public input to the process after the presentation. The
public hearing would be continued to October 16, 2012 at which time the public hearing will be
closed.
Staff will return to the Utility Advisory Committee on October 9, 2012 requesting a
recommendation to City Council to adopt rate and fee ordinance amendments. The proposed rate
and fee adjustments for each utility would be effective on Monday, January 7, 2013.
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