HomeMy WebLinkAboutAgenda Packet 10/08/2002 PORT ANGELES, WA
E} =TE]BER B,
1:00 P.M.
Ar~ENDA
Ii. RGL1 P-ALL
III. APPROVAL Df MINUTES FOR SEPTEMBER
IV. LAte ITEMB
a. DIL HANDLING BUILDING DESIGN AGREEMENT - HARPER
B. PUD WHOLESALE WATER [~GNTRA{~T - M(~LAIN
D. I-NET DARK FIBER PGLiCy - DUNBAR
E. WATER/~VASTEWATER RATE STUDY- MI:LAIN
F. STATUS RePORTB
RAYONIER LEACHATE (I~}UARTERLY)
METRGPOLITAN COMMUNICATIONS CONSULTANTB
I-NET FAST TRACK
vi. NEXT MEETING NOVEMBER 1 2~, 2002 - CDUNGIL r-HAMBERS
VII. ADUOURNMENT
UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
September 10, 2002
I. Call to Order:
Chairman Bentley called the meeting to order at 3:05 p.m. ,a.~'~
II. Roll Call:
Members Present: Chairman Bentley, Councilman Campbell, Councilmember Erickson,
Councilmember Rogers, Dean Reed
Members Absent: None
Staff Present: Glenn Cutler (3:20), Scott McLain, Larry Dunbar, Linda Gunderson, Cate
Rinehart
Others Present: Brian Gawley (3:55 - Daily News)
III. Approval of Minutes:
Chairman Bentley asked if there were any additions or corrections to the meeting minutes of
August 13, 2002. Dean Reed moved to approve the minutes. Councilmember Erickson seconded
the motion, which carried unanimously.
IV. Discussion Items:
,4. 1-Net Fast-Track Report
Larry Dunbar, Power Resources Manager, gave a general report stating that all agreements had been
executed and that the PUD had signed an interlocal agreement. A letter from the Clallam County Board
of Commissioners to the City was introduced with requests for consideration on reserving a fiber pair.
This item will be addresses at a future UAC meeting. There was a brief discussion.
No action taken. Information only.
B. Metropolitan Communications Consultants Status Report
An informal report was presented on activities during the month of August 2002.
No action taken. Information only.
C. Preliminary 1Kater/gFastewater Rate Study
Scott McLain, Deputy Director of Power Systems, indicated information on this subject would be
delayed since the draft report contained too many items which needed updating.
1
UTILITY ADVISORY COMMITTEE
September 10, 2002
No action taken. Tabled for future reference.
D. Transmission Losses For LG&E (Avista) Power Purchase
Scott McLain, Deputy Director of Power Systems, noted the City must purchase power to replace
transmission losses on its market power purchase from LG&E. The Bonneville Power Administration
has offered an indexed price for losses at the Mid-C heavy load spot market price plus 15%. No other
quotes were available. A brief discussion followed during which significant savings of $1,500,000 were
disclosed resulting from the original contract with LG&E.
Councilman Campbell moved to recommend to City Council to authorize the Director of Public
Works and Utilities to sign a confirmation agreement with the Bonneville Power Administration to
provide transmission losses for the City's LG&E (Avista) power supply for a one year period
starting October 1, 2002. Councilmember Erickson seconded the motion, which carried
unanimously. ,
E. BPA Wholesale Rate Status
Scott McLain, Deputy Director of Power Systems, pointed out that although comments are still being
taken it appears the new wholesale rate will be 43.12% over base rates which is somewhat less than rates
were in October 2001. A breakdown of the load base CRAC, financial base CRAC, and safety net
CRAC was explained in detail. A discussion followed.
No action taken. Information only.
Late Items: Stormwater
Councilmember Rogers reported meeting with state officials and briefing them regarding the pro-active
stance the citizens of Port Angeles had taken in facing this challenge. A discussion followed with some
references made to manual interpretations and definitions.
VI. Next Meeting:
The next regular meeting will be October 8th. The meeting time has been changed from 3 p.m. to 1 p.m.
due to scheduling conflicts. Councilmember Erickson will be absent.
VI. Adjournment:
The meeting adjourned at 4:20 p.m.
2
UTILITY ADVISORY COMMITTEE
September 10, 2002
Allen Bentley, Chairman Cate Rinehart, Administrative
Assistant
9/13/02 ,
N:\PWKS\LIGHTXCONS\CATEXsept 10meel,wpd
pORTANGELES
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: October 8, 2002
To: UTIL1TY ADVISORY COMMITTEE
FROM: James L. Harper, Electrical Engineering Manager
RE: Agreement for Design Services, Oil Handling and Warehouse Building
Summary: One firm, Parametrix, Inc., responded to our request for proposals to design a
building to handle PCB contaminated oils and provide additional warehouse space. I
Recommendation: Forward a favorable recommendation to City Council to authorize the
Mayor to sign an agreement with Parametrix, Inc. to provide engineering/architectural
design services for an Oil Handling and Warehouse Building at a cost not to exceed
$30,500.
Background/Analysis: EPA Regulation 40 CFR Part 761.65 requires any leaking or weeping
transformers or drums of liquid be stored under cover and out o£th¢ weather. The City does not
have sufficient indoor storage to comply with this order. Noncompliance places the City at risk
of fines and citations for violation of federal and state regulations due to improper storage and
disposal of hazardous materials. Large oil filled units can be retrofilled and reclassified as non
PCB contaminated. The addition of an oil handling/warehouse building will allow the City to
capitalize on this option and reduce, if not eliminate, the potential of fines and citations.
The 2002 budget includes $60,000 for construction of this project. Requirements for this type of
building are more stringent than first anticipated, therefore, the expected cost has increased to
approximately $170,000. The 2002 CFP, as proposed, shows this anticipated cost increase, and
construction is scheduled for 2003.
Staffrecommends we proceed with the design in 2002 with construction to take place in 2003,
and that the Mayor be authorized to sign an agreement for the design with Parametrix, Inc. of
Sumner, WA in an amount not to exceed $30,500.
N:\UAC~FinaI~U ACWARHS. ~pd
pORTANGE S
W A S H I N G; T O N, U.S.A.
LITILITY ADVISORY GOMMITTEE MEMO
DATE: October 8, 2002
TO: UTILITY ADVISORY COMMITTEE
FROM: Scott McLain, Deputy Director for Power Systems
RE: PUD Wholesale Water Contract
Summary: The wholesale water contract with Clallam PUD expires at the end of this year. A
new contract is being prepared to provide City water to the PUD starting January 1, 2003. Many
changes have occurred since the original agreement in 1994. Input and direction is requested
from the UAC on new terms and conditions to be included in a new contract offering.
Recommendation: Utility Advisory Committee direction and input on the terms and
conditions to be included in a new wholesale water contract to be offered to Clallam PUD
for service after January 1, 2003.
Background/Analysis: The City and Clallam PUD executed a three year contract for the
period from August 1994 to August 1997 for wholesale water delivery from the City's water
system. Annual amendments to that contract have been executed since that time and the latest
amendment will expire at the end of this year.
A number of conditions have changed over the years and it is prudent at this time to readdress
issues and offer the PUD a new contract.
City staffhave reviewed the old contract and have identified the following issues that should be
addressed in a new contract.
Overall withdrawal and rate of withdrawal need to be reviewed.
Require PUD to provide daily flow data to the City on a regular basis.
· Allow City to install and maintain SCADA equipment at both interties.
We expect to put together a three year, wholesale water supply contract including rates consistent
for other utilities outside the City at 150% of rates inside the City limits. We are asking for the
Utility Advisory Committee's concurrence on the above approach along with any additional
issues members of the committee would like to see included in the contract.
N:~WKS~LIG HT~POWM~vl EMOS\UAC pud water contract, wpd
· ~£C 2 ~ 19§4
WHOLESALE WATER CONTRACT 'I~3U
~S CO--CT, ~de ~d enter~ ~to by ~d be~n ~e Ci~ OF PORT
a m~cip~ co~oration, hcrcin~cr c~ed the "Ci~", ~d the ~LIC ~Y DIS~CT
1 OF CL~L~ CO~, a mu~cip~ co~oratio~ herein~er c~led the "Distfi~";
"WITNESSETH" .
Con~ ~d ~e p~ her~o d~e to ~n~ue ~d ~n~a~ relafionsMp ~d to e~end the s~e
of Water by the Ci~ to the Distfi~ ~ set fo~h h~reM; ~d
~, ~e Ci~ ~d ~e Di~ r~ ce~ mumm benefits ~om cooperative effo~s
in the operation ~d m~ten~ce of the~ resp~five water ~ste~ ~d d~ to cooperate in
pl~g for the ~ture supply of their customer; ~d
~, ~ Ci~s po~ is ~ ~e Ci~s p~ objection is to supply wat~ to ~em
~d ~e Ci~ r~dents ~d busMesses ~d t~t ~e Di~fict's purc~e ofCi~ wat~ is subse~ent
thereto;
NOW, ~FO~, the CiW a~ees to 'deBver ~d seB to the Dis~ ~d the Di~fi~
a~ees to buy ~0m the CiW, wholes~e water under the follo~ng pro~siom:
1. ~tes and Water Usg Li~ts
A. The District shMI pay fo~ cents ($0.40) per 100 cubic feet p~ montk
berg ~th ~eb~g cycle st~ing Au~st 24, 1994 ~d ending Au~st 23, 1995. ~e DisM~
shall strive to mMntMn ~ average ~thdrawM rate tess th~ four hundred g~ons per ~nute (400
~m). ~e days when p~ ~thdraw~ may ex~ four hundred g~lons per ~ute (400 gpm) sh~l
be ~t~ to sk (6) da~ p~ y~ ~d at no time sh~ the Distfi~ u~ water at a rate ~eater t~ six
hundred gallons per minute (600 gpm).
B. The City shall have the option to annually adjust the rate for the future billing
cycles of August 24, 1995 to August 23, 1996 and August 24, 1996 to August 23, 1997 consistent
with its cost of service studies. [The current projections for these two bi/ling cycles are for a
and 15% increase over the previous years rate.]
C. The District agrees to inform the, City, within twenty-four (24) hours,
whenever its withdrawal rate exceeds four hundred gallons per minute (400 gpm).
2. Other Conditions.
A. The District agrees to manage its water system to stabilize demand on the
City's system. In the event of water supply or capacity problems, the District agrees to develop, in
cooperation with the City, and deliver a targeted conservation message to:the affected District
customers.
B. The District agrees to continue to investigate and develop other feasible
sources to supply water to the area serviced by this contract, in accordance with the joint plan for the
urban growth a~ea~ This joint plan shall provide for the.District and the City to jointly participate in
City water system capital improvement projects of mutual benefit.
C. In case of emergency, water shortage, or whenever the public health, safety,
or the distribution of water so demands, the City may reduce or limit the time for, or temporarily
discontinue, delivery of water to the District. Water delivery may also be temPorarily interrupted for
the purposes of making repairs, ex'tension, or doing other necessary work. Before altering the
delivery of water to the District, the City will attempt to notify the District, in advance, of any
changing, reducing, limiting, or interruption of service. The City, however, shall not be responsible
for any damage resulting from interruption, change, or failure of the water supply system.
D. The water purchased by the District shall be for the customers of the areas
served by said District easterly of the City of Pon Angeles. The District agrees to obtain the prior
approval of the City when any one or combination of new customers of the District are projected to
increase the District's monthly water usage, which is served by this contract, by two (2) percent over
the monthly usage measured as 2.387 million cubic feet; provided that the District's water use shall
continue to be governed by the limits set forth in paragraph I above. The City agrees.to inform the
District of any significant new customers that request service inside the City withill the area that is
serviced by this contract. The City's policy shall be that all new and existing customers inside the City
have priority over the District for use of City water and that the City may, at its sole discretion,
reduce the delivery of water to the District in order to better supply City customers or may terminate
this Contract upon 60 days written notice as set forth in paragraph 4 below. The City reserves the
fight to install flow resfficfion devices on the PUD service line to restrict the flow available to a range
of 400 gpm to 600 gpm, if the City determines that flow restriction is neceSsary to preserve reliable
service for city customers.
E. All water supplied under this contract, after it passes the point of delivery at
the present service connection at the Gales Addition reservoir, shall be the property of the District.
The District shall be responsible for all monitoring and reporting requirements to comply with the
Safe Drinking Water Act.
F. The City shall not be liable for any loss or damage to any person or property,
whatsoever, resulting directly or indirectly from the use by the District or its customers of the water
supplied under this con~,ct, and the City shall further not be liable for any interrupt.ions in supply of
water to the District or its customers. The District agrees to indemnify the City for, and save it
harmless fi.om, all losses or damages which the City may suffer or in~ur by reason of the assertion of
any such claim against the City, including ail fees, costs, expenses, and attorney fees incurred in
defending against such claims.
G. The District agrees to ailow the City to use access roads and the District's
bridge across Morse Creek for access to City fa~-ilities. However, the bridge across Morse Creek may
be removed ifstructuraliy unsound. The District will maintain three-phase electric lines for potentiai
service to the City's Elwha River pump station.
H. The District and the City agree to jointly participate in the development ora
cooperative water supply plan for the area within the Urban Service Area between the east City
Limits and Morse Creek. Each party shall use its best efforts to ensure that such plan shall be
completed by August 1, 1995 .....
I. ~The City and the District agree to investigate an additional point of delivery
of water to the PUD flora the City water syster~ fi.this additional point of delivery is found through
engineering study to be of mutual benefit to both agencies, then the such point of delivery shall be
acceptable under this contra~t. The City and the Distri~ shall confa~n th~ engineering nmtual benefits
3. Payment.
Billings for services rendered shall be paid by the District monthly, and in the event
the District fails to receive a monthly billing, such failure shall not release the District from liability
for payment. The billing, payment, and collection of this contract shall be as spe¢i~ed in the City's
Utility Accounts Ordinance, Chapter 13.16 of the Port Angeles Municipai Code. The District shall
provide the monthly meter readings to the City for billing purposes.
-4-
4. T~rmination.
This contract shal] terminate three (3) years after signature by the City below or upon
60 days written notice by either party, whichever is earlier.
DATED this ~-~ day of '~. ,:,.r'~,.t ,> ,,t ,.. , 199~_.
CITY OF PORT ANGELES PUBLIC UTILITY DISTRICT NO. 1 OF CLAI.! .AM
COUNTY
J~. Sargent, Mayor (J President
ATTEST: ATTEST:
/
B~cky Upt6de C~"t~, clerk/ -- S~re~
APPROVED AS TO FORM:
Craig D. Kllutsor~, City Attorney
PI. JDRAT'~94 fm~l.asm
AMENDMENT TO
WHOLESALE WATER CONTP~ACT
This amendment to the Wholesale Water Contract dated January 9,
1995 is made and entered into by and between the City of Port
Angeles, a municipal corporation, hereinafter called the '~City", and
the Public Utility District No. 1 of Clallam County, a municipal
corporation, hereinafter called the "District."
Whereas, the City and the District are parties to a wholesale
water contract, which is in effect until January 9, 1998; and
Whereas, the City and the District have entered into a separate
intergovernmental memorandum of understanding, in which they have
agreed to investigate opportunities for cooperative and coordinated
local area utility planning and operation; and
Whereas, the City and the District have agreed to extend the
wholesale water contract for eight months through August, 1998;
Now, Therefore, the City and the District hereby agree that the
Wholesale Water Contract dated January 9, 1995 shall be amended as
follows:
1. Paragraph 1. Rates and Water Use Limits is hereby amended to
read as follows:
A. The District shall pay fort} ......~ ,~.~,'~ ~' sixty-seven_ cents
(S0.67) per 100 cubic feet per month, beginning with the billing
cycle starting August 24, 199%7 and ending August 23, 199~8 at the
Gales Addition Reservoir. The District shall pay sixty-four cents
($0.64) per 100 cubic feet. beginning with the billing cycle star~in~
Au_crust 24. 1997 and ending August 23. 1998 for lower zone purchases
at DelGuzzi Drive. The District shall strive to maintain an average
withdrawal rate less than four hundred gallons per minute (400 gpm).
The days when peak withdrawal may exceed four hundred gallons per
minute (400 gpm) shall be limited to six (6) days per year and at no
time shall the District use water at a rate greater than six hundred
gallons per minute (600 gpm).
B. The City shall have the option to annually adjust the rate
for the future billing cycles of August 24, 1995 to August 23, 1996
and August 24, 1996 to August 23, 1997 consistent with its cost of
service studies. [The current projects for these two billing cycles
are for a 20% and 15% increase over the previous year's rate.]
C. The District agrees to inform the City, within twenty-four
(24) hours, whenever its withdrawal rate exceeds four hundred gallons
per minute (400 gpm).
2. Paragraph 2. r ' ' is hereby amended by adding the
following conditions:
J. The City shall provide an interconnection north of Highway
101 opposite DelGuzzi Drive,
K. The District shall provide, subject to successful pressure
testing, a meter installation along Baker Street north of Highway
4. Paragraph 4. ~ is hereby amended to read as follows:
This shall inate
contract terra
~; ~c~ on August 23. 1998 or upon 60 days written notice by
either party, whichever is earlier.
DATED this /~-~ day of August, 1997.
PUBLIC UTILITY DISTRICT NO:. 1
~/~Y Q~ P~GELES OF CLALLAM COIINTY
~spe~ Ostroski, Mayor President
ATTEST: ATTEST:~
APPROVED AS TO FORM:
Craig D~Knutson, City Attorney
AMENDMENT TO t~! ~,~..
WHOLESALE WATER CONTRACT
This amendment to the Wholesale Water Contract dated January 9, 1995, is made and entered
into by and between the City of Port Angeles, a municipal corporation, hereinafter called the "City",
and the Public Utility District No. I of Clallam County, a municipal corporation, hereinafter called the
"District."
Whereas, the City and the District are parties to a wholesale water contract, which was
originally in effect until January 9, 1998; and
Whereas, the City and the District have entered into a separate intergovernmental memorandum
of understanding, in which they have agreed to investigate opportunities for cooperative and
coordinated local area utility planning and operation; and
Whereas, the City and the District have agreed to extend the wholesale water contract through
August, 1999;
Now, Therefore, the City and the District hereby agree that the Wholesale Water Contract dated
January 9, 1995, shall be amended as follows:
1. Paragraph 1. Rates and Water Use Limil,~ is hereby amended to read as follows:
A. The District shall pay seventy-one cents ($0.71) per 100 cubic feet per month, beginning
with the billing cycle starting August 24, 1998, and ending August 23, 1999, at the Gales Addition
Reservoir. The District shall strive to maintain an average withdrawal rate less than four hundred
gallons per minute (400 gpm). The days when peak withdrawal may exceed four hundred gallons per
minute (400 gpm) shall be limited to six (6) days per year and at no time shall the District use water
at a rate greater than six hundred gallons per minute (600 gpm).
B. The District shall pay sixty-eight cents ($0.68) per 100 cubic feet, beginning with the
billing cycle starting August 24, 1998 and ending August 23, 1999 for lower zone purchases at Baker
Street.
C. The District agrees to inform the City, within twenty-four (24) hours, whenever its
withdrawal rate at Gales Addition exceeds four hundred gallons per minute (400 gpm).
D. The City shall have the option to annually adjust the rate for the future billing cycles
consistent with its cost of service studies.
2. Paragraph 2. Other Conditions, paragraphs J and K are hereby amended to read as follows:
J. The City has provided an interconnection north of Highway 101 opposite DelGuzzi Drive.
K. The District has provided a meter installation along Baker Street north of Highway 101.
3. Paragraph 4. Termination is hereby amended to read as follows:
This contract shall terminate on August 23, 1999, or upon 60 days written notice by either party,
whichever is earlier.
DATED this e4~g,- day of August, 1998.
PUBLIC UTILITY DISTPdCT NO. 1
CITY OF PORT ANGELES OF CLALLAM COUNTY
Garyc~raun, l~la~or- ) Pi-esident
B~ky 0p~on(~Cit~Cle~k- l- -- -- Secret
APPROVED AS TO FORM:
Craig D. Kdutson, City Attorney
2
AMENDMENT TO
WHOLESALE WATER CONTRACT
This amendment to the Wholesale Water Contract dated January 9, 1995, is made and entered
into by and between the City of Port Angeles, a municipal corporation, hereinafter called the "City",
and the Public Utility District No. I of Clallam County, a municipal corporation, hereinafter called the
"District."
Whereas, the City and the District are parties to a wholesale water contraot, which was
originally in effect until January 9, 1998, and was subsequently extended by a contract amendment to
August 23, 1999; and
Whereas, the City and the District have agreed to extend the wholesale water contract through
December 31, 1999;
Now, Therefore, the City and the District hereby agree that the Wholesale Water Contract dated
January 9, 1995, shall be amended as follows:
1. Paragraph 4. Termination is hereby amended to read as follows:
This contract shall terminate on December 31, 1999, or upon 60 days written notice by either
party, whichever is earlier.
DATED this 10:{J~ day of April, 1999.
PUBLIC UTILITY DISTRICT NO. 1
CITY OF PORT ANGELES OF CLALLAM COUNTY
Gary l~raun, ~yo~ Presiden~
ATTEST: ATTEST:
B~ky Upt0t~ Cit~ Clerk 1- -- Secretary
APPR~}SZED AS TO FORM:
Craig D. Kq~son, City Attorney
AMENDMENT TO
WHOLESALE WATER CONTRACT
This amendment to the Wholesale Water Contract dated January 9, 1995, is made and entered
into by and between the City of Port Angeles, a municipal corporation, hereinafter called the "City", and
the Public Utility District No. I of Clallam County, a municipal corporation, hereinafter called the
Whereas, the City and the District are parties to a wholesale water contract, which as last
amended was in effect until December 31, 1999; and
Whereas, the City and the District have entered into a separate intergovernmental memorandum
of understanding, in which they have agreed to investigate opportunities for cooperative and coordinated
local area utility planning and operation; and
Whereas, the City and the District have agreed to extend the wholesale water contract through
December 31, 2000;
Now, Therefore, the City and the District hereby agree that the Wholesale Water Contract dated
January 9, 1995, shall be amended as follows:
1. Paragraph 1. Rates and Water Use Limits is hereby amended to read as follows:
A. The District shall pay seventy-seven cents ($0.77) per :100 cubic feet, beginning with the
billing cycle starting Dece.m. ber 24, 1999, and ending December 23,1 2000, at:the Gales Addition
Reservoir~ The City has set the withdrawal rate at 500 gpm (+ 10 gpm) through the me~r at the
Reservoir. No adjustmeiats or changes to the existing configuration can be made without amendment
to this eontra~ except that if the meter requires servicing and is taken off-line by the City for a period
not to exceed 30 days, the billing shall be pro-rated.
B. The District shall pay seventy-three cents ($0.73) per 100 cubic feet, be~nning with the
bitling cycle starting December 24, 1999 and ending December 23, 2000 for lower zone purchases at
Baker Street.
C. The City shall have the option to annually adjust the rate for the future billing cycles
consistent with its cost of service studies.
2. Paragraph 2. Other Conditions, paragraphs J and K are hereby amended to read as follows:
J. The City has provided an interconnection north of Highway 101 opposite DelGuzzi Drive.
K. The District has provided a meter installation along Baker Street north of Highway 101.
3. Paragraph 4. Terminatiorl is hereby amended to read as follows:
This contract shall terminate on December 31, 2000, or upon 60 days written notice by either
party, whichever is earlien
CI~ OF PORT ~GELES OF CL~L~ CO~TY NO. 1
AT'ST:
AT.T:
Bec~ Upt~ Ci~ler~ ~ .... ~ecre~
~D,AS TO FO~:
C ~g D. ~u~so~ City AHorn~
2
FIFTH AMENDMENT TO
WHOLESALE WATER CONTRACT
This amendment to the Wholesale Water Contract dated January 9, 1995, is made and entered into by
and between the City of Port Angeles, a municipal corporation, hereinafter called the "City", and the Public
Utility District No. 1 of Clallam County, a municipal corporation, hereinafter called the "District."
Whereas, the City and the District are parties to a wholesale water contract, which as last amended is
in effect until December 3 l, 2000; and
Whereas, the City and the District have agreed to increase the wholesale water rates and to extend the
wholesale water contract through December 31, 2001;
Now, Therefore, the City and the District hereby agree that the Wholesale Water Contract dated
January 9, 1995, shall be amended as follows:
1. Paragraph 1. Rates and Water Use Limits is hereby amended to read aa follows:
A. The District shall pay eighty-three cents ($0.83) per 100 cubic feet, beginning with the billing
cycle starting December 24, 2000, and ending December 23, 2001, at the Gales Addition Reservoir. Th~ City
has set the maximum withdrawal rate at 500 gpm ~ 10 gpm) through thc meter at the Reservoir. No
adjustments or changes to the existing withdrawal rate can be made without approval of the City's Public
Works Director. If the meter requires servicing and is taken off-line by the City the billing shall be pro-rated
or computed
B. The District shall pay seventy-nine cents ($0.79) per 100 cubic feet, beginning with the billing cycle
starting December 24, 2000 and ending December 23, 2001 for lower zone purchases at Baker Street.
: C. The City shall have the option to annually adjust thc rate for the future billing cyclcs consistent with
its cost of service studies.
2. Paragraph 4. T~rmination is hereby amended to read as follows:
This contract shall terminate on December 31, 2001, or upon 60 days written notice by either party,
whichever is earlier.
DATED this a~ }~d- day of ~~.,~, c~.De~y~
PUBLIC UTILITY DISTRICT NO. 1
~.~YA.~GE~E'S'~ OF CLALLAM COUNTY
ATTEST: ATTEST:
Beck~ ]. Ul~n{'.~ity dert~ - -- ~ S~cretary
APPRC~D AS TO FORM: y
~' ~ ~ ' F:~AGP, EEMENTS&CONTRACTS~PUD-WATER.CON.wpd
Craig D. Kn~on, ~'l~ty Attorney November 16, 2000 ($:47ara)
SIXTH AMENDMENT TO
WHOLESALE WATER CONTRACT
This amendment to the Wholesale Water Contract dated January 9, 1995, is made and entered into by
and between the City of Port Angeles, a municipal corporation, hereinafter called the "City", and the Public
Utility District No. 1 of Clallam County, a municipal corporation, hereinafter called the "District."
Whereas, the City and the District are parties to a wholesale water contract, which as last amended is
in effect until December 31, 2001; and
Whereas, the City and the District have agreed to increase the wholesale water rates and to extend the
wholesale water contract through December 31, 2002;
Now, Therefore, the City and the District hereby agree that the Wholesale Water Contract dated
January 9, 1995, shall be amended as follows:
1. Paragraph 1. Rates and Water Use Limits is hereby amended to read as follows:
A. The District shall pay eighty-nine cents ($0.89) per 100 cubic feet, beginning with the billing cycle
starting December 27, 2001, and ending December 26, 2002, at the Gales Addition Reservoir. The City has
set the maximum withdrawal rate at 500 gpm ~ 10 gpm) through the meter at the Reservoir. No adjustments
or changes to the existing withdrawal rate can be made without approval of the City's Director of Public Works
and Utilities. If the meter requires servicing and is taken off-line by the City the billing shall be pro-rated or
computed.
B. The District shall pay eighty-five cents ($0.85) per 100 cubic feet, beginning with the billing cycle
starting December 27, 2001 and ending December 26, 2002 for lower zone purchases at Baker Street.
C. The City shall have the option to annually adjust the rate for the future billing cycles consistent with
its cost of service studies.
2. Paragraph 4. Termination is hereby amended to read as folloWS:
This contract shall terminate on December 31, 2002, or upon 60 days written notice by either party,
whichever is earlier. .
DATED this ~,_~ day of~, _~.
CITY OF PORT ANGELES ~ PUBLIC UTILITY DISTRI~ZT NO. 1
Doy ayo v Pres,
ATTEST: A~~
APPRI~/ED AS TO FORM: ,
~raig D. Kn"~tson~ City Aitor~y - November 15, 2001 (2:14pm)
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: October 8, 2002
TO: UTILITY ADVISORY COMMITTEE
FROM: Larry Dunbar, Power Resources Manager
RE: Telecommunications Grant Program Applications
Summary: Telecommunications grant opportunities provide an opportunity to aid, develop and
enhance telecommunications resources within the community in cooperation with public and
private partners. Due to the competitive nature of the programs, the City may need to apply
several times before it succeeds at obtaining funding.
Recommendation: Recommend to City Council that staff prepare and submit grant
applications under the Community-Oriented Connectivity Broadband Pilot Program,
Public Telecommunications Facilities Program and Technology Opportunity Program.
Background/Analysis: The Farm Security and Rural Investment Act of 2002, signed by
President Bush on May 13, 2002, includes funding for rural broadband deployment. The United
States Department of Agriculture's Rural Utilities Service recently developed a grant pilot
program including the application guide and necessary forms. The pilot is called the
Community-Oriented Connectivity Broadband Program. Local government applicants will be
competing nationally for funding for broadband transmission services on a "community-oriented
connectivity" basis. The one year pilot program offers a means for the deployment of broadband
transmission services to rural schools, libraries, education centers, health care providers, law
enforcement agencies, public safety organizations as well as residents and businesses.
The pilot program is designed to provide financial assistance to furnish broadband services that
do not currently exist. Grant funds may be utilized to deploy broadband transmission services
(downstream and upstream rates equivalent to at least 200 kilobits per second) to rural residents,
rural businesses and to equip and operate a facility that provides free access to broadband Intemet
access services to community residents for at least two years. Grants are available to
communities of up to 20,000 citizens to ensure rural consumers enjoy the same quality and range
of telecommunications services as are available in urban and suburban communities. Although
the City meets the program eligibility criteria, the program targets very small and
economically-devastated communities. Applications for grants under this program will be
accepted through November 5, 2002.
N:\UAC~FinaBmsgrantapplication.wpd
Community-Oriented Connectivity Broadband Grant Program Application
Page 2
October 10, 2002
There are three official scoring categories that will be used under the Community-Oriented
Connectivity Broadband Pilot Program. The official scoring categories include: the rurality of
the community served by the project (City receives five out of 40 points); the economic need of
the project's service area as determined by per capita income by County (City receives zero out
of 30 points); and the benefits derived from the proposed service area (up to 30 points available).
The first two categories are objective criteria and the City's score is known. The third category is
scored subjectively based on the City's application demonstrating the need for services, benefits
derived from the services proposed, and local community involvement in planning and
implementation of the project. Based on the program scoring roles the City's application would
receive a maximum of 35 out of 100. Staff discussed the maximum score the City's application
would receive with the pilot program manager and was neither encouraged or discouraged from
submitting an application.
There are two other upcoming grant application opportunities through the United States
Department of Commerce National Telecommunications and Information Administration. A
grant application under the Public Telecommunications Facilities Program is anticipated to be
due in February 0£2003. A grant application under the Technology Opportunity Program is
anticipated to be due in March of 2003. Staff is not aware of any other telecommunications grant
opportunities directly applicable to local governments.
Staff is requesting guidance on the following potential grant project proposal ideas including (not
in order of priority):
1. Expansions of the Northland Cable Television, Inc. cable modem system by installation
of necessary equipment to allow two-way broadband Intemet access (downstream and
upstream rates equivalent to at least 200 kilobits per second) including all expenses
incurred in providing the service throughout the City for two years.
2. Purchase and installation of mobile data terminals in vehicles and wireless
communications services for the City's police and fire department including all expenses
incurred in providing the service for two years.
3. Expansion of the Capacity Provisioning, Inc. institutional network distribution fiber optic
cabling (from Northland's backbone nodes to businesses and public institutions) and
broadband Internet access (downstream and upstream rates equivalent to at least 1
megabit per second) including all expenses incurred in providing the service for two
years.
4. Acquisition of computers and broadband Intemet access (downstream and upstream rates
equivalent to at least 1 megabit per second) for a technology center accessible to area
residents and businesses at the Senior Center, North Olympic Regional Library, Port
Angeles High School, and Business Incubator including all expenses incurred in
providing the service for two years.
5. Equipping the Council Chambers with a video teleconferencing and cable television
cablecasting system including all expenses incurred in providing the services for two
years.
pO TANCELES
WASHINGTON, U.S.A.
UTILITY aDVISORY COMMITTEE MEMO
DATE: October 8, 2002
TO: UTILITY ADVISORY COMMITTEE
FROM: Larry Dunbar, Power Resources Manager
RE: Proposed Institutional Network Dark Fiber Use Policy
Summary: The City will have exclusive rights under the Cable Television Franchise Ordinance
No. 3116 (Franchise) with Northland Cable Television, Inc. (Northland) to use 24 dark fibers ~
within the Institutional Network (I-Net) backbone for non-commercial purposes no later than
April 27, 2004. The City needs to establish a policy for use of I-Net backbone dark fibers.
Recommendation: Forward a recommendation to City Council to establish policy for use of
I-Net backbone dark fibers including:
1. Backbone dark fibers under the City's exclusive rights should only be available on a
wholesale basis to Capacity Provisioning, Inc. or Northland but not to end users in
accordance with the Franchise. Staff will return to the UAC on or before December
31, 2003 for guidance in reference to wholesale availability of unassigned City dark
fibers to a future commercial service provider.
2. If Northland does not utilize its reserve dark fibers by April 27, 2006 for purposes
other than cable services, staff will return to the UAe to consider City or third
party use of I-Net backbone reserve fibers in accordance with the Franchise.
3. Initiate a mutually acceptable amendment to the I-Net Services Agreement with
C.P.I. for the UAC's and City Council's consideration by January 1, 2003 to allow '
C.P.I. to provide retail use of the City's backbone dark fibers and C.P.I. site drop
dark fibers for wide area networks for institutional users only.
4. Initiate a mutually acceptable amendment to the Franchise and/or Fiber Optic Wide
Area Network Use Agreement with Northland for the UAC's and City Council's
consideration by January 1, 2003 to allow Northland to use reserve fibers for
private wide area networks without restrictions related to bandwidth being
available by a commercial service provider that uses the reserve fibers.
Background/Analysis: The I-Net backbone dark fibers are a low cost/high value resource of
limited supply. The City, Northland and C.P.I. have negotiated agreements in good faith based
on all parties being dependent on each other and not competing against one another. If the City
were to directly provide wholesale I-Net backbone dark fibers to institutions for non-commercial
purposes, which is allowable, the City would be competing with C.P.I. and Northland for retail
services. Depending on end user redundancy needs, last mile costs, equipment costs, security
needs, and other considerations, use of dark fibers for private wide area networks could be a
desirable retail service under the I-Net Services Agreement.
N:\UAC~inalhceviseddarkffoerpolic y.w~l
Proposed Institutional Network Dark Fiber Use Policy
Page 2
October 10, 2002
An amendment to the I-Net Services Agreement with C.P.I. to allow I-Net backbone dark fibers
and last mile dark fibers on a retail basis is required. The amendment is necessary because the
Agreement does not expressly provide for retailing of dark fibers. As part of negotiation of the
amendment staffrecommends: that retail pricing is based on competitive market conditions; that
retail pricing includes City wholesale costs and a reasonable markup of wholesale costs by C.P.I;
that retail pricing include negotiation of an I-Net growth discount payable by C.P.I. to the City,
and that the allowable duration of retail backbone dark fiber use by an end user is limited to one
year, unless approved in advance by the City.
Northland agreed to invest in twelve reserve fibers under the Franchise, recognizing the potential
revenues that may be available through leasing of dark fibers to others. The Franchise allows
Northland to provide reserve dark fibers to service providers for commercial purposes or to
institutions and businesses for private wide area networks. Section 8.5.1(2) of the Franchise
authorizes Northland to use no more than eight of its 12 reserve fibers for private wide area
networks until such time as bandwidth is available from a commercial service provider using the
reserve fibers. Although it was acceptable to Northland when the Franchise was negotiated, staff
recommends that Section 8.5.1(2) of the Franchise and/or the Fiber Optic Wide Area Network
Use Agreement be amended to create a level playing field for Northland.
An illustration of the I-Net's allowed purposes and City fights and assignments is presented
below.
NORTHLAND BACKBONE DARK FIBER,~ CITY RIGHTS TO INSTITUTIONAL NE'ID~VORK BACKBONE DARK FIBERS
WAN USE FRANCHISE RESERVE CITY RIGHTS ASSIGNED I CITY RIGHTS ASSIGNED I CITY AU31ILIARy
ALLOWED PURPOSE AGREEMENT FIBERS
~ 'q ~ USE OF CITY I-NET BACKBONE DARK FIBERS FOR
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pORTANGELES
WASHINGTON, U.S.A.
UTilitY aDVISORY COMMITTEE MEMO
DATE: October 8, 2002
TO: UTILITY ADVISORY COMMITTEE
FROM: Scott McLain, Deputy Director for Power Systems
RE: Water/Wastewater Rate Study
Summary: Economic and Engineering Services (EES) and City staffhave recently completed
an analysis of the Water and Wastewater utility rates. A similar study was completed in 1999
with rate adjustments implemented during the past three years. The results of the study will be
presented at the UAC meeting along with recommended changes to the rates.
Recommendation: Forward a favorable recommendation to City Council to approve
recommended changes to water rates of 4%o in 2003, 4% in 2004, and 3% in 2005 and no
changes to the wastewater rates during the three year rate period.
Background/Analysis: The City contracted with Economic and Engineering Services during
2002 to assist staffwith an analysis of rates for both the Water and Wastewater utilities. This
analysis looks at revenue requirements and revenues over a six year period. Capital construction
projects are also reviewed and a financial recommendation is produced that will maintain the
solvency of the fund. The water and wastewater utilities currently use a combined fund. This
study analyses each utility as if it were a stand alone utility.
Three options were explored to determine the best financial package to recommend to UAC and
Council. Option one included no debt financing and no rate increases and resulted in total
depletion of reserve funds by 2005 with rather large rate increases required at that time. Option
two was a combination of no debt financing and increase rates to the level necessary to maintain
minimum reserve levels. This option resulted in rate increases in the range of 40% after reserve
levels are depleted in year one. Option three uses a combination of debt financing (bond issue),
use of reserves in the amount of $2,100,000 and small rate increases to maintain the solvency of
the fund over time and is the recommended option of staff and EES.
The bond issue would finance capital projects over the three year period for projects that will be
in service for a long time. The bond issue would cover about $2,700,000 in water projects and
$1,100,000 in wastewater projects. Rate increases under this scenario could be kept to 4% in the
first and second year and 3% in the third year for the water utility and no rate increases for the
wastewater utility during the three year period.
Water/Wastewater Rate Study
Page 2
October 8, 2002
Major changes since the last rate study include increased O&M, mainly attributable to increases
in insurance, utilities, and repair and maintenance. Many capital projects that were projected for
the last rate study have been pushed into this rate period along with a projected bond issue during
that time. This has resulted in the combined fund balance growing over the past three years but
more capital projects being pushed into this rate period. The growth of the reserve balance over
the previous rate period allows us to use $2,100,000 from reserves and still maintain an adequate
fund balance after 2005.
The changes to the rates for water are projected to change only the consumption rate, with no
change to the basic charge. Current charges for a residential customer are $13.40 basic charge
and $1.07 per hundred cubic feet (750 gallons). Typical monthly bill for 1000 cubic feet is
$24.10.
N:~WKSkLIGHTXPOWMkMEMOS\UAC water wastewater 100802.wpd
p~J~A!I~O SUOIle9
pon-ANC [ s
WASHINGTON, U.S.A.
UTILITY aDVISORY COMMITTEE MEMO
DATE: October 8, 2002
TO: UTILITY ADVISORY COMMITTEE
FROM: Larry Dunbar, Power Resources Manager
RE: Institutional Network Construction Status Report
Summary: This is an informational report on Northland Cable Television, Inc. (Northland) and
Capacity Provisioning, Inc. (C.P.I.) Institutional Network construction activities since the
September UAC meeting.
Recommendation: Information only, no action required.
Below is a summary o£Northland's activities since the last UAC meeting:
1. On 9/26/2002, Northland accepted the easement agreement for placement of node
enclosures on City property.
2. On 9/30/2002, Northland provided Change Order Request 1 for node enclosure
uninterruptible power supply and alarm systems (not accepted).
3. On 10/1/2002, Northland advised staffthat the node enclosures are backordered until
10/18/2002, that the largest fiber optic cable reel received was damaged and that an
acceptable substitute would be promptly shipped and delivered.
~r The fiber link and node construction is scheduled for completion on 10/21/2002.
Below is a summary of C.P.I.'s activities since the last UAC meeting:
1. On 9/6/2002, C.P.I. provided site plans and material specifications for staff review and
approval.
2. On 9/13/2002, staff approved most of C.P.I.'s site plans and material specifications.
3. On 9/17/2002, C.P.I. satisfied all due diligence requirements.
4. On 9/23/2002, C.P.I. provided revised plans for remaining sites for staff review and
approval.
5. On 9/25/2002, C.P.I. provided Change Order Request A to add 3 and delete 4 City site
drops for a cost decrease of $6,637.89 (under consideration).
6. On 9/27/2002, staff approved most of the remaining site plans.
7. On 10/2/2002, C.P.I. provided the few remaining revised site plans for staffreview and
approval including 3 alternate site drops. Change Order Request B was received that
included additional scope of work and charges for customer provided paths for a cost
increase of $9,813.00 (under consideration). Staff provided Change Order Request C to
C.P.I. for node enclosure uninterruptible power supply and alarm systems.
The site drops and node equipment are scheduled for completion on November 11, 2002
and November 25, 2002 respectively.
pORTANGE S
W A S H I N G; T O N, LI. $. A.
IJTILITY.a. DVI$ORY GOMMITTEE MEMO
DATE: October 8, 2002
TO: UTILITY ADVISORY COMMITTEE
FROM: Larry Dunbar, Power Resources Manager
RE: Institutional Network Implementation Consulting Services - Monthly Status Report
Summary: This is an informational report on Metropolitan Communications Consultants
activities during the month of September 2002. The advisory services include support with the I-
Net fast-track and during construction of the I-Net backbone.
Recommendation: Information only, no action required.
I-Net Fast-Track Advisor' Services ($20,000 authorized time & materials budget)
Task August Activity Prior Current Total
Project Management
Support Plans and specifications $3,022.50 $3,455.00 $6,477.50
Agreement review, termination
Development connector memo, Change $4,972.50 $27.50 $5,000.00
Orders A & B
Service Agreement
Negotiation $4,972.50 $27.50 $5,000.00
Expenses $83.58 $0.00 $83.58
I-Net Backbone Construction Advisory Services ($25,000 authorized lump sum budget)
Task August Activity Prior Current Total
Project Management Support and representation
Support on technical matters $1,700.00 $1,700.00 $3,400.00
Plans & Specifications Fiber material product
Review substitution $1,800.00 $100.00 $1,900.00
Construction Phase
Engineering $500.00 $500.00
Testing Observation
Final Inspection
Total Budget $45,000.00 Totals $17,051.08 $5,310.00 $22,361.08
Memo
To: Larry Dunbar, Power Resources Manager
From: Pete Grigorieff, Regional Manager
CC: Jack Dyste, Vice President/Technical Services
Date: 10/4/02
Re: Proposed I - Net Dark Fiber Use Policy
In regards to our meeting on Monday September 30, 2002 I would like to endorse your Proposed I-Net
dark fiber policy recommendation to the Utility Advisory Committee.
Northland will have a substantial investment in the I-Net back bone and we anticipate marketing and
leasing our reserve fibers in order to recover and realize a return on our investment.
We have negotiated our current franchise in good faith, based on the City and Northland working
together to provide an I-Net fiber infrastructure that we could mutually benefit from.
As part of your proposed policy, we may request an amendment to the current WAN agreement which
would allow Northland to provide private wide area networks after bandwidth is commercial available
using our reserve fibers. If the amendment to the agreement with Capacity Provisioning is made to
allow retail use of I-Net backbone dark fibers, then we will want an amendment to the WAN agreement
creating a level playing field for Northland.
Thank you for consideration of this matter.
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CITY FIRST RIGHT OF REFUSAL ASSIGNED TO
CAPACITY PROVISIONING
CITY RIGHTS ASSIGNED TO CAPACITY PROVISIONING
(I-NET SERVICES AGREEMENT)
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