HomeMy WebLinkAboutAgenda Packet 11/13/2000 UTILITY ADVISORY COMMITTEE - SPECIAL HEETING
PUBLIC WORKS CONFERENCE ROOM
PORT ANGELES, WA 98362
NoveMBER ~ 3, 2000
3:00 P.M.
AGENDA
I. CALL TO ORDER
II. ROll CALL
III. APPROVAL OF MINUTES OF OCTOBER g, 2000, REGULAR mEETING.
APPROVAL OF MINUTES OF OCTOBER J 7, 2000, SPECIAL MeetiNg.
IV. DISCUSSION Items
A. RAYONIER LEACHATE REPORT (GLENN/UEFf)
b. "J" STREET SUBSTA~ON POWER TRANSFORMER (JIM H)
C. ElECTRiC oVeRHEAD RebUilD PrOUECTS (UIM H)
D. PUD WATER SAleS CONTRACt (GlENN/GaRY)
E. STORM WatER UtiliTY (GaRY/STEVE/dIM M - veRBAL)
F. MORSE Creek AGREEMENT (SCOTT)
G. PUD ELECTRIC FRANCHISE (Scour/LARRY)
h. POle RENTAl aGREeMENT TERMINATION NOTiCe (LARRY)
I. FIBER OPTIC CABLE SEALED BID/PURChaSE (SCO~T/LARRY)
V. LATE ITEMS
YARD WASTE DISPOSAL/BURN BAN (INFORMATION ONLY- TOM MC CABE)
VI. NEXT MEETING - DECEMBER i J, 2GOO
VII. ADdOURNHENT
UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
October 9, 2000
Call to Order:
Vice Chairman Williams called the meeting to order at 3:00 p.m.
II. Roll Call:
Members Present: Vice Chairman Larry Williams, Allen Bentley, Mayor Larry Doyle
Members Absent: Chairman Orville Campbell, Dean Reed
Staff Present: Craig Knutson, Brad Collins, Sue Roberds, Ken Ridout, Scott McLain, Gary
Kenworthy, Jim Harper, JeffYoung, Tom McCabe, Larry Dunbar, Cate
Rinehart
Others Present: None
IIL Approval of Minutes:
Vice Chairman Williams asked if there were any changes or additions to the agenda. None were
given. Vice Chairman Williams then asked if there were any additions or corrections to the meeting
minutes of September I I or September 29, 2000. Mayor Doyle moved to approve the minutes. Allen
Bentley seconded the motion, which carried unanimously.
IV. Discussion Items:
A. Bid Award Overhead Electric Rebuild Projects No. 20-07, 20-08 and 20-09
Jim Harper, Electrical Engineering Manager, stated there were two bidders for thxee projects (10th Street
from N Street To O Street, O Street from l0th Street to 18th Street and Laurel Street from Park Avenue to
Ahlvers Road). Both bids were significantly higher than the engineers estimate due to an engineering error
in figuring footage for the Laurel Street project. A brief discussion followed concluding with the options
of amending the budget and proceeding with the project, splitting the project doing two now and one later,
or rebidding/he entire plan.
Mayor Doyle moved to forward the options to the City Council for their review and consideration.
Allen Bently seconded the motion, which carried unanimously.
B. Backup Generator for the Wastewater Treatment Plant (WWTP)
Ken Ridout, Deputy Director of Operations, corrected an error in the memo which was the source of
electrical power (two sources from Washington substation not one from Valley and one from Washington
UTILITY ADVISORY COMMITTEE
October 9, 2000
substations). Jeff Young, Treatment Plant Superintendent, explained that the City was required to have
redundant power in the case of a power outage. Two quotes were received which included separate decibel
levels for staff to evaluate. A brief discussion followed with clarification of the bid process versus quotes.
Allen Bently moved to recommend the City Council authorize the Director of Public Works and
Utilities purchase and install the 500 KW generator from DMT Electric Company of Port Orchard,
Washington in the amount of $99,200. Mayor Doyle seconded the motion, which carried unanimously.
C. Landfill Consulting Services Contract
Gary Kenworthy, Deputy Director of Engineering Services, stated requests for proposals had been received
by two firms. Interviews had taken place and references are being reviewed. The chosen firm will be
announced in the future.
No action taken. Information only.
D. Brown and Caldwell Contract
Gary Kenworthy, Deputy Director of Engineering Services, explained that while in the middle of
negotiations the company's computer contracted a virus which destroyed the server. Figures would be
available in a few days. Committee members decided that due to a number of subjects needing immediate
attention a special UAC meeting would be called for October 17~h at 5pm prior to City Council.
No action taken. Information only.
E. Approval and Implementation of Community Telecommunications Action Plan
Larry Dunbar, Power Resources Manager, reviewed the Action Plan as previously presented in depth at the
September 29, 2000 meeting. Brad Collins, Planning Director, indicated his staff would be able to compose
a wireless communications facility ordinance as part of the process with a possible savings of $2,000. A
general discussion ensued with concerns expressed over the backbone staff is proposing.
Mayor Doyle moved to recommend the City Council approve the Community Telecommunications
Action Plan and a professional services agreement in the amount not to exceed $92,500 with MCC for
completion of: a comprehensive telecommunications ordinance; a telecommunications future needs
and interests assessment; a business plan for the fiber-optic backbone; and to authorize Staff to
prepare a request for qualifications for engineering services to design the fiber-optic backbone and
to proceed with the purchase offiber-optic cabling. Allen Bentley seconded the motion, which carried
unanimously.
F. BPA Power Sales Agreement
Scott McLain, Deputy Director of Power Systems, summarized the agreement explaining that this will
replace power purchased under all other expiring contracts and assure the City of a low cost power supply.
2
UTILITY ADVISORY COMMITTEE
October 9, 2000
A short discussion followed.
Mayor Doyle moved to recommend that thc Council authorize the Mayor to sign the attached
agreement with the Bonneville Power Administration to provide the City's power supply for the ten
year period from October 2001 to September, 2011. Allen Bentley seconded the motion, which carried
unanimously.
G. Retail Power Sales Agreement with Daishowa America
Scott McLain, Deputy Director of Power Systems, clarified the need to protect the City from any financial
consequences that could occur should Daishowa decide to pursue a market resource. Mr. McLain answered
questions from members concerning types of resources available and added that negotiations have not been
finalized.
Allen Bentley moved to recommend that the Council authorize the Mayor to sign an agreement with
Daishowa America Ltd. that protects the City from any adverse financial impacts should Daishowa
receive electrical power service from a provider other than the City. Mayor Doyle seconded the
motion, which carried unanimously.
VI, Late Items: None
VII. Next Meeting:
As set forth above, the Committee requested a special meeting for October 17, 2000 at 5pm to discuss the
Landfill Consulting Services Contract, Brown and Caldwell Wastewater Consultation Services, and the
Downtown Watermain and Sidewalk Repair Phase II update.
VIII. Adjournment:
Vice Chalm~an Williams adjourned the meeting at 4:45 p.m.
Larry Williams, Vice Chairman Cate Rinehart, Administrative Assistant
A:\oct9.wpd
3
UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
October 17, 2000
I. Call to Order:
Chairman Campbell called the meeting to order at 5:05 p.m.
IL Roll Call:
Members Present: Chairman Orville Campbell, Allen Bentley, Mayor Larry Doyle, Dean Reed
Members Absent: Councilman Larry Williams
StaffPresent: Michael Quinn, Craig Knutson, Glenn Cutler, Scott McLain, Gary
Kenworthy, Cate Rinehart
Others Present: None
III. Approval of Minutes:
Chairman Campbell stated that the minutes of the October 9, 2000 regular meeting will be presented
for approval at the November 13t~ meeting.
Discussion Items:
A. Engineering Agreement with Parametrix for Landfill Consulting Services
Gary Kenworthy, Deputy Director of Engineering Services, stated requests for proposals had been received
by two finns. Interviews had taken place and Parametrix had been chosen to continue with their engineering
services. Mr. Kenworthy indicated that one of the objectives was to obtain the county permit through the
landfill closure. Glenn Cutler, Director of Public Works and Utilities, added that the long range goal was
the development of land use, indicating various directions the City could choose. A brief discussion
followed.
Mayor Doyle moved to recommend the City Council approve the agreement with Parametrix, Inc. to
provide landfill/solid waste related engineering support services in the amount not to exceed $295,284.
Dean Reed seconded the motion, which carried unanimously.
B. Engineering Agreement with Brown and Caldweil for Wastewater/Stormwater Consulting
Services
Gary Kenworthy, Deputy Director of Engineering Services, gave a briefbackgronnd citing the accumulated
knowledge that Brown and Caldwell has of existing City programs and projects. Glenn Cutler, Director of
Public Works and Utilities explained the septage receiving station design appeared to be too costly at this
time but would be considered in the future. A brief discussion followed.
Dean Reed moved to recommend the City Council approve the agreement with Brown and Caldwell
to provide wastewater/stormwater related engineering support services in the amount not to exceed
$368,658. Mayor Doyle seconded the motion, which carried unanimously.
C. Change Order, Downtown Watermain/Sidewalk Phase II, Project 99-11
Gary Kenworthy, Deputy Director of Engineering Services, summarized the work that had been completed
by Primo Construction adding that there is $330,000 available to do additional upgrading on the east side
of Laurel street. A discussion followed concerning the negotiation process.
Mayor Doyle moved to recommend should a favorable cost be negotiated the City Council approve
a construction change order to the Downtown Watermain and Sidewalk Replacement, Phase II,
Project 99-11. Allen Bentley seconded the motion, which carried unanimously.
VL Late Items: None
VII. Next Meeting:
The next meeting will be held November 13, 2000, at 3:00 p.m. in the Public Works Conference Room.
VIII. ~4djournment:
Chairman Campbell adjourned the meeting at 5:45 p.m.
Orville Campbell, Chairman Cate Rinehart, Administrative Assistant
A:\oct 17.wpd
pORTANGELES
W A $ H I N (~ T O N, O. $. A.
UTH. ITY ADVISORY GO ITTE£
DATE: November 13, 2000
To: UTILITY ADVISORY COMMITTEE
FROM: Glenn A. Cutler, Director of Public Works and Utilities
SUBJECT: Rayonier Leachate
Rayonier brought the first load of leachate to the City's Wastewater Treatment Plant on
April 3, 2000. The attached chart shows the amount of leachate (in gallons) and the
revenue received from this activity through October.
Attach: Chart
N:~PWKS\WWATER\U ACLEACH.WPD
SUOlleE)
pORT-.A,?¢ELES
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: November 13, 2000
TO: UTILITY ADVISORY COMMITTEE
FROM: James L. Harper
SUBJECT: Bid Award 12/16/20 MVA Power Transformer for "I" Street Substation
Summary_: 'T' Street Substation must be rebuilt in 2001 to maintain an acceptable level of service
on the west side of the City. The power transformer must be ordered now in order to construct the
project next summer. Six bids were received and evaluated by staff and our consultant. All bids
were deemed acceptable and responsive. The lowest evaluated cost bid was submitted by Virginia
Transformer Corporation.
Recom mend i~ati_~i.' UAC recommend the City Council accept the $344,054.26 bid of Virginia
Transformer and authorize the Mayor to sign the contract for the purchase of the power
transformer.
Background / Analysis: Much of our load growth over the last several years has been in the
western and eastern areas of the city. On the west side of the city there have been a large number
of new subdivisions with new housing as well as new large commercial/industrial load additions at
the Port's industrial park. This load growth has used almost all of our reserve capacity and requires
the upgrading of 'T' Street Substation on the west side of town in order to allow for additional
growth.
If this project is not completed we will be operating under a level of service lower than that which
our customers have grown accustomed. The reliability on the west side of the city has already been
compromised to the point that if the transformer at "F" Street Substation fails during the winter peak
load, we have insufficient reserves to cover all the load for 6-10 hours while temporary measures are
taken. The most economical way to correct the deficiency and keep from reducing reliability and
level of service even further is to complete this project.
This project is in the approved CFP for 2001 construction. Transformer purchase is required at this
time due to the 36 - 48 week lead time required for delivery. No payment will be required until
delivery on or about July 1, 2001.
Six sealed bids were received October 24, 2000 in response to the RFP for supplying the 12/16/20
MVA power transformer. The bids have been reviewed by staff and by TriAxis Engineering, the
City's design consultant on this project. All bids were judged as acceptable and responsive. The bid
prices ranged from $488,351.08 to $344,054.26. The Engineering estimate for the transformer was
approximately $350,000. The transformer bids were also evaluated for the life cycle costs associated
with losses of the transformer. The comparison of the evaluated prices and bid prices are summarized
in the bid summary shown below. The bidder with the lowest evaluated cost and also the lowest
purchase price was Virginia Transformer Corporation.
This matter is being referred to the UAC for consideration of the bids and a recommendation to the
City Council that the Mayor be authorized to sign the purchase contract in the amount of
$344,054.26 with Virginia Transformer Corporation, the evaluated lowest cost bidder.
BIDDER Western States Electric D'Ewart United Sa]es Western State,, Wesco Utility
Representativesl. Electric Distribution
BRAND General Electric Sun Belt Delta Star Inc. Virginia Pauwels ABB Power T&D
Inc. Transformer TrarlSfo~ec Transformers Company Inc.
Co. ~nc.
Transformer Cost $434,096.0(2 $363,428.0(2 $390,208.0( $2~ ~ $301,184.00 $342,543.0(
JVitness Testin~l $1,500.0(2 $2,500.0(} $450.0( $~,~a~ ~ $2,000.00 $2,717.00
Vleasurement $5,000.0(: $3,000.0(} $5,000.0( $~;~ ~; $6,400.00 $2,717.00
~arification
Transforme $12,000.0~: $6,500.00 $6,250.0(: $14,500.00 $13,043.00
3ressout
n s t a I I a t i o n incl $4,000.0(} inc $7!0b~ O0 $11,000.00 $8,543.00
~,ssistance
5-}'r Warranty incl $12,000.0(] inc $9i000 00 $6,545.00 $16,304.00
SUBTOTAL $452,596.0¢ $391,428.00 $401,908.0( $3~ B!SgAi00 $341,629.00 $385,867.00
rAX $35,755.08 $30,922.81 $31,750.7~ $25;]90126 $26,988.69 $30,483.49
~OST $488,35t.08 $422,350.81 $433,658.7.~ $3~i0$~26 $368,6t7.69 $416,350.49
~1o Load losses 10.0C 9.50 8.7(: :980 13.00 10.40
No Load losses $ $50,000.0(} $47,500.0(} $43,500.0( $A9 000100 $65,000.00 $52,000.00
12 MVA Load 40.0C 48.7(} 46.6C 47~00 39.50 46.70
losses kw
12 MVA Load $108,000.0(2 $131,490.012 $125,820.00 $~26i900~0 $106,650.00 $126,090.00
losses $
TOTAL LOSES $ $158,000.0£ $178,990.0(} $169,320.00 $~ ~ ~ $171,650.00 $178,090.00
EVALUATED 12 $646,351.08 $601,340.81 $602,978.73 $519i9~ 26 $540,267.69 $594,440.49
mva COST
MEET DATE YE,~ YES YES YES YES YE,~
-_-XCEPTIONS TO ~one Page 28 2.14 D Page 28 2.14 D Page282i~D 3one Page222.3Cd2
SPECIFICATIONS use oven dry, asa oven dry, hot ~se oven d~ nltap chngr 6-7 ft
hot oil fill process 3il fill process hot oii fill (rom base not 2.
instead of"Vapor instead of"Vapor ~Obe~sinstead Page 28 2.14 b
Phase" process. Phase" process, of~vapbCPIia~e~! square coil not
Acceptable Acceptable ~roce~ circular.
~age 3~ 2il6 ~ Page 29 2.15 B 3
N~e e~ro~t~t!~ Liquid level gage
:)aint not tilted.
~¢cepta~le Acceptable
N:\PWKSXLIGHT~ENGR\PROJECTS~ISTREET~UACXFMR3.WPD
WAShiNGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: November 13, 2000
TO: UTILITY ADVISORY COMMITTEE
FROM: James L. Harper
SUBJECT: Bid Rejection Overhead Electric Rebuild Projects No. 20-07, 20-08 & 20-09
Summary: The construction of these three rebuild projects: along 10t~ Street from N Street to O
Street, along O Street from 10t~ Street to 18~ Street and along Laurel Street from Park Avenue to
Ahlvers Road are required to provide an acceptable level of service. These projects were advertised
under a single contract on September 17 & 18 and the sealed bids were opened on October 6, 2000.
The lower of the two bids received was approximately 144% of the Engineering estimate and will
result in a cost of 132% of the amount budgeted for the projects. An additional overhead rebuild
project from the 7/8 Alley at 'T' Street to the 6/7 Alley at "M" Street is being proposed for the 2001
CFP.
Recommendation: UAC recommend the City Council: 1) Reject all bids,
2) Rebudget the projects for 2001 to be rebid in Jan-Feb 2001,
3) Authorize the City Manager to sign the contract change order with TriAxis
Engineering to design "I" Street to "M" Street overhead rebuild, proposed 2001
CFP item CL 01- 00. Project to be bid in package with Project No. 20-07, 20-08 and
20-09 in Jan-Feb 2001.
Background / Analysis: Project 20-07 will replace the existing 3-phase #6 cu conductors with 3-
phase 336 al conductors along 10th Street between"N" Street and"O" Street (not open). This project
in conj unction with Project 20-08 is required to maintain an acceptable level of service and reliability
for customers on the west side. This project is currently budgeted for construction during 2000.
Project 20-08 will construct new 3-phase overhead 336 al line along "O" Street (not open) from 10t~
Street to 14th Street and reconstruct 3-phase #2 cu with 3-phase 336 al from 14t~ Street to 18th Street.
This project in conjunction with Project 20-07 is required to maintain an acceptable level of service
and reliability for customers on the west side. This project is currently budgeted for construction
during 2000.
Project 20-09 will rebuild 1-phase #6 cu to 3-phase 336 al along Laurel Street from Park Ave to
Ahlvers Rd. Approximately 4 MVA of load south of Park Avenue is without feeder tie capability.
This project will provide an alternative feed in case of loss of the line on Peabody, and will allow
a balancing of the load between Laurel Feeder 1202 and Feeder 1203. This project is currently
with losses of the transformer. The comparison of the evaluated prices and bid prices are summarized
in the bid summary shown below. The bidder with the lowest evaluated cost and also the lowest
purchase price was Virginia Transformer Corporation.
This matter is being referred to the UAC for consideration of the bids and a recommendation to the
City Council that the Mayor be authorized to sign the purchase contract in the mount of
$344,054.26 with Virginia Transformer Corporation, the evaluated lowest cost bidder.
BIDDER Western States Electric D'Ewart UnitedS~!es Western States Wesco Utility
Representatives[. Electric Distribution
I
BRAND I General Electric Sun Belt Delta Star Inc. Virgi~!~ Pauwels ABB Power T&D
Inc. Transformer Tran~¢me~ Transformers Company Inc.
Co. nc.
rransformerCost $434,096.0C $383,428.0¢ $39o,208.00':$2~66400 $301,184.00 $342,543.00
/vitness Testing $1,500.0¢ $2,500.0C $450.00 $2,000.00 $2,717.00
~leasurement $5,000.0¢ $3,000.0C $5,000.00:$2 0~0~ $6,400.00 $2,717.00
~ar~ca[ioR I
r r a n s f o r m e $12,000.0C $6,500.0~ $6,250.001 : ~ ~B~ ~ $14,500.00 $13,043.00
Dfesso~t :
I n s t a I I a t i o ninc~ $4,000.0C inc ~7 ~B 00 $11,000.00 $8,54300
qas~stance
5-~r Warran~ incl $12,000.0~ inc :$9¢000.~0 $6,545.00 $16,304.00
SUBTOTAL $452,596.0C $391,428.0~ $401,908.0f $3~8 8~00 $341,629.00 $385,867.00
r~ $35,755.08 $30,922.81 $31,750.7~ : $~;~9026 $26,988.69 $30,483.49
;OST $488,351.08 $422,350.81 $433,658.7~ $3~0~ 26 $368,617.69 $4~ 6,350.49
No Load losses 10.0C 9.50 8.7( 980 13.00 10.40
<w
No Load losses $ $50,000.0C $47,500.00 $43,500.0( $~;~00.9~ $65,000.00 $52,000.00
12 MVA Load 40.0~ 48.7( 46.6, 39.50 46.70
,osse~ ~
12 MVA Load $108,000.0~ $131,490.00 $125,820.0( $~26,900.00 $106,650.00 $126,090.00
~osses $ : :
'OTAL LOSES $ $158,000.0C $178,990.00 $169,320.0( ;$175,90000 $171,650.00 $178,090.00
EVALUATED ~ 2 $646,351.08 $601,340.81 $602,978.7~ $~9 984~6 $540,267.69 $594,~0.49
~va COST
~EET DATE YES YES YES[ YES YES YES
[XCEPTIONS TO none =age 28 2.14 D ~age 28 2.14 D P~ge 28 ~,IA D none ~age 22 2.3 C d 2
;PECIFICATIONS Jse oven d~, Jse oven d~, hot us~ o~ d~ 31tap chngr 6-7 fl
lot oil fill pro.ss )il fill pro.ss ~b[ 0ii:~ii ;rom base not 2.
nstead of "Vapor nstead of "Vapor ~e~ss{n~tead Page 28 2.14 b
Phase" pro.ss. 3base" pro.ss, af.va~rp~ Square coil not
Accep~ble Accep~ble P~o~S~ ;ircular.
~ga 33 2 !6 E Page 29 2,15 B 3
N~ ~iedrOSt~[~ Liquid level gage
paint: not tilted.
A~Cep~bl~ Acceptable
N:~WKS~IG~NG~kPBOJECTS~IST~E~UACXFM~.WPD
W A S H I N G T O N, U. $. A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: November 13, 2000
TO: UTILITY ADVISORY COMMITTEE
FROM: Glenn A. Cutler, Director of Public Works and Utilities
Strlm~CT: Amendment to Wholesale Water Contract with Clallam County Public Utility
District No. 1.
Summary_: The City's current Wholesale Water Contract with Clallam County Public Utility
District No. 1 expires December 31, 2000 and an amendment for 2001 is needed. The
amendment provides for an eight per cent increase in the water rates .and minor revisions to
facilitate modifications to the flow rate without amending the contract.
Recommendation: Forward to Council with a recommendation supporting approval of
Amendment No. $ to the Wholesale Water Contract with Clallam County Public Utility
District No. 1.
Background / Analysis: The City's current Wholesale Water Contract with Clallam County
Public Utility District No. 1 expires December 31, 2000 and an amendment for 2001 is needed.
The amendment provides for an eight per cent increase in the water rates. In addition, changes
were made to facilitate timely increases in the flow for emergency situations. The existing
contract required amendment to increase the flows and this has been revised to allow increases
with the Director of Public Works approval. An additional change was included to cover
estimates of charges if the meter is out of service. The new contract will terminate December 31,
2001.
N:\PWKS\W ATER\PUDRATE\UAC 00.WPD
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 31, 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 as 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. The City
has set the maximum withdrawal rate at 500 gpm (2. 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 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 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, 2001, or upon 60 days written notice by either party,
whichever is earlier.
DATED this day of .,
PUBLIC UTILITY DISTRICT NO. 1
CITY OF PORT ANGELES OF CLALLAM COUNTY
Larry Doyle, Mayor President
ATTEST: ATTEST:
Becky J. Upton, City Clerk Secretary
APPROVED AS TO FORM:
F:~AGREEMENTS &CONTRACTS~PLID-WATER.CON.wlxl
Craig D. Knulson, City Attorney November 9, 2000 (4:0 l pm)
WAShiNGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: November 13, 2000
TO: UTILITY ADVISORY COMMITTEE
FROM: Scott McLain, Deputy Director of Power Systems
SUBJECT: Morse Creek Hydroelectric Operations Agreement
Summary: Staff has been negotiating with Ebey Hill Hydroelectric for the lease of the City's
Morse Creek hydroelectric project facilities. An agreement is being drafted that will transfer all
operating costs and responsibilities to Ebey Hill and compensate the City for the leased facilities.
Recommendation: None at this time. Staffwill present the agreement at the next UAC meeting
for a recommendation to Council.
Back~,round / Analysis: The City built the Morse Creek hydro project in 1985 with the intention
of diversifying our power supply and creating an economical power supply for the City. Wholesale
power rates at the time the project was built were about 27.5 mills/KWH and were expected to
increase in the future. Wholesale power costs have actually declined during the period since 1985
and are currently in the range of 22 mills/KWH. About two years ago, the pipeline that feeds the
powerhouse developed a leak at a difficult place to fix and the City decided at that time to
discontinue operations at the project and surrender our license to FERC.
The City was in the process of surrendering the license when approached by a professional hydro
plant operator that proposed to lease the physical facilities from the City and operate the plant.
FERC has allowed the City the extra time to negotiate an agreement with this company and staffhas
been working out the details of an agreement that would allow Ebey Hill Hydroelectric to operate
the facilities. Ebey Hill would own the output of the generation an could sell that generation on the
open market.
The City is utilizing the services of Marsh, Mundorf, Pratt, and Sullivan to help draft the agreement
as they have more expertise in leasing facilities of this kind. The agreement will be complete and
will be presented to the UAC for its recommendation at the next meeting, with the expectation that
the agreement would go to Council for approval at the December 19th meeting.
N:\PWKS\LIGHT~OW fvfffvlEMOS \ UAC 1113.WPD
W A S H I N G T O N, U, S. A,
UTILITY ADVISORY COMMITT££ M£MO
DATE: November 13, 2000
TO: UTILITY ADVISORY COMMITTEE
FROM: Larry D. Dunbar, Power Resources Manager
SUBJECT: Electric Franchise Agreement
Summary.: The franchise agreement granting the Clallam County Public Utility District No. 1
the right to construct, maintain and operate an electric transmission system has recently expired.
Staff is drafting a new franchise agreement that will be reviewed by the Utility Advisory
Committee at a future meeting prior to consideration by the PUD.
Recommendation: This memo is intended to provide the Utility Advisory Committee
information with no action requested at this time.
Background/Analysis: On 11/24/1948, the City granted the Clallam Cotmty Public Utility
District No. 1 a fifty (50) year right to construct, maintain and operate an electric transmission
system within a specific geographical area of the City. Staff recently discovered that the
franchise term has lapsed and there now is an urgent need to renew the franchise agreement.
Years ago the PUD constructed an electric transmission system within the City so that it could
transmit power through the City to provide service within Clallam County. Now that the electric
transmission system is constructed, the new franchise agreement would grant the PUD the
continuing permission to use the City right-of-way to maintain and operate its system.
Over the years the PUD has expanded/ts electric transmission system and has installed some
distribution facilities near service area boundaries within City limits in cooperation with the City.
In addition to the old franchise agreement, the City and PUD have entered into a service area
agreement and several wheeling agreements. It is anticipated that these agreements will be kept
in place and referenced in the new franchise agreement. The service area agreement is up for
renewal on 12/30/2002 and could either be renewed for an additional five (5) year period or
terminated. Of utmost interest under the service area agreement are the annexation provisions
that affect the City's cost to purchase PUD facilities.
Staff will seek the Utility Advisory Committee's recommendation to City Council to approve a
new franchise agreement in the near future.
N 5PWKS'~LIGHTXPOWM~FRANCH2.DOC
w A S H I N G T O N, U. S, A,
UTILITY ADVISORY COMMITTEE MEMO
DATE: November 13, 2000
To: UTILITY ADVISORY COMMITTEE
FROM: Larry D. Dunbar, Power Resources Manager
SUBJECT: Pole Rental Agreement Termination
Summary.: As part of the implementation of the Community Telecommunications Action Plan,
there is a need to terminate pole rental agreements. Termination of the agreements is needed so
that the City complies with the 1996 Telecommunications Act.
Recommendation: The UAC recommends the City Council authorize the Mayor to issue
pole rental agreement termination notices.
Background/Analysis: On 9/29/2000, MCC and Staffpresented the Community
Telecommunications Action Plan ("Action Plan") to the Utility Advisory Committee (UAC).
The Action Plan identified the need to complete a telecommunications ordinance, conduct a
telecommunications needs assessment, and develop a fiber-optic backbone over the next three-
year period. On 10/9/2000, the UAC recommended City Council approval of the Action Plan.
On 10/17/2000, City Council approved thc UAC's recommendation.
Thc City recently discovered that its pole rental agreements are not consistent with some of thc
requirements of the 1996 Telecommunications Act. Thc Telecommunications Act requires the
City to manage the public right-of-way (including municipally owned utility poles) on a
competitively neutral and non-discriminatory basis while not creating any barriers to entry.
Replacing thc agreements with an ordinance will overcome non-compliance with the
Telecommunications Act.
Several parties have entered into pole rental agreements with the City including: Qwest,
Northland Cable Television, Olympic Memorial Hospital, and Virginia Mason Port Angeles
Clinic. As stipulated in each agreement, termination is allowed providing six (6) months notice
except for the Qwest agreement, which provides for a twelve (12) month notice. Due to a unique
termination provision within the Qwcst agreement, termination may only apply toward future
joint use utility poles. Upon termination of the agreements, each party would have continuing
City consent to attach to utility poles consistent with the requirements of a new pole attachment
ordinance.
All parties that have entered into a pole rental agreement with the City will be given an
opportunity to review and comment on the new pole attachment ordinance prior to consideration
by the Utility Advisory Committee and City Council.
N :~PWKS'~LIGHT~POWM~POLEAGRE.DOC
pORTANGELES
W A S H I N G T O N, U. $. a.
UTILITY ADVISORY GOMMITTEI= Mi=MO
DATE: November 13, 2000
TO: UTILITY ADVISORY COMMITTEE
FROM: Larry Dunbar, Power Resources Manager
SUBJECT: Fiber Optic Cable Purchasing Authority
Summary.: The lead-time to order and receive fiber optic cable may be a year or more due to
unique market conditions. In lieu of placing an order, Staff recommends that an attempt be made
to purchase fiber optic cable that may be available from a fluctuating and limited supply, which
would require the City to reach a purchase decision quickly. If required to obtain the Utilit
Advisory Committee's recommendation and City Council's approval as part of the purchasin
process, the likelihood of obtaining fiber optic cable quickly will be poor. If a purchase from
fluctuating and limited supply does not prove to be possible by the end of December 2000,
order should be promptly placed.
Recommendation: Utility Advisory Committee recommend the City Council grant the CityI
~c Works and Utilities Director the authority to enter into contracts forI
the purchase of fiber optic cable, provided that such contracts are within the establishedI
budget. Once a contract is exectured, the City Manager, Mayor and City Council will be
promptly notified.
Background/Analysis: On 10/17/2000, City Council approved the Community
Telecommunications Action Plan ("Action Plan") as recommended by the Utility Advisory
Committee (UAC) and Port Angeles Works! (PA Works!). Development ora fiber optic
backbone is a City Council economic development goal. As part of that approval, Council
authorized Staff to start the process to purchase fiber optic cable, in an amount not to exceed
$350,000, recognizing an advance purchase was necessary due to the long lead-time between
order and delivery. Staff was also directed to return to the City Council to request bid approval
to purchase the fiber optic cable. Based on these directions, Staff is preparing a sealed bid
document to purchase fiber optic cable and anticipates advertising a call for bids in the near
future.
The Action Plan identified the need to complete preliminary business planning to determine fiber
optic cable specifications, fiber count and reel lengths, prior to the advance purchase of fiber
optic cable. The City's consultant, Metropolitan Communications Consultants (MCC), is
nearing completion of preliminary business planning and is assisting Staff with the development
ora sealed bid document. Prior to requesting Council authorization to construct the fiber optic
backbone, business planning must be completed and confirm the preliminary feasibility study
prepared by Power Engineers. In the unlikely event that feasibility is not confirmed, given
current and anticipated market conditions, the resale of fiber optic cable acquired by the City is
almost certain.
The pumhase of fiber optic cable is being attempted during unique market conditions. The
timeline between order and delivery is currently from 12 to 16 months due to fixed
manufacturing capability and a worldwide shortage. The shortage is simply due to an imbalance
between supply and demand. Although major manufacturers have committed to expand their
plants, they're not currently at maximum operating capacity. A recent quote illustrates the
current demand for fiber "This year, enough fiber optical fiber will be laid worldwide to make
the round trip to the moon 117 times", 10/29/2000, Bill Scanlon, Interactive Week.
Staff has been receiving unsolicited proposals from vendors that have learned about the City's
plans to purchase fiber optic cable. A fluctuating and limited supply appears to be available,
which may meet the City's specifications and quantity needs. Within a twenty-four hour period
of receiving an unsolicited proposal, the supply was sold to another party. Obtaining City
Council bid approval will likely eliminate the possibility of purchasing fiber optic cable quickly,
which would extend the timeline to complete the fiber optic backbone.
The City Light Utility has experienced unique power sales and purchases market conditions
similar to the current market conditions to purchase fiber optic cable. In order to do business
during the unique market conditions, City Council granted the Director of the City Light
Department authority to enter into special contracts covering electric power service, purchases,
and sales, to meet specific operating conditions, and provided that the City Manager, Mayor and
Council members of the Utility Advisory Committee are notified. A similar grant of authority is
recommended to purchase fiber optic cable.
Depending on the responses received to the sealed bid, waiving some or all of the competitive
bidding requirements, if lawful, may be necessary to enable the advance purchase of fiber optic
cable. State law~ appears to allow the City to waive the competitive bidding requirements under
certain conditions such as purchases involving special facilities or market conditions. These
conditions may apply to the purchase of fiber optic cable and would need to be confirmed by the
City Attorney. Staff may seek guidance from the UAC and City Council approval in the future if
the competitive bidding requirements and unique market conditions delay the advance purchase
of fiber optic cable.
IRCW 35.23.352(9) and RCW 39.04.280(1)(b)
STORMWATER UTILITY FORMATION
Outline and schedule
1. Meet with UAC to outline steps and schedule November 13, 2000
2. Meet with Consultant, Brown & Caldwell re support needs November 15, 2000
3. Review regulatory (DOE, WDF, ESA, GASP, ...) requirements. Nov/Dec, 2000
4. Develop financial revenue, manpower, and CIP program to meet January, 2001
regulatory requirements and correct current stormwater problem areas.
5. Present Stormwater Program and Utility Formation report to UAC February, 2001
prior to meeting with users.
6. Following UAC, hold public meeting. Also meet with local developers February, 2001
builders, and consultants.
regarding formation of the Stormwater Utility.
7. Present meeting results and revised formation recomendations to UAC March, 2001
8. Hold Public Hearing on Stormwater Utility Formation March 20, 2001
9. Council meeting to form Stormwater Utility. April 3, 2001
N:\PWKS\ENGINEER\STRMCRSP\utl frm 1 .wpd
pORTANGEI ES
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: November 13, 2000
To: UTILITY ADVISORY COMMITTEE
FROM: Tom McCabe, Solid Waste Superintendent
SUBJECT: Impact o£Washington State Burn Ban on Landfill Operations
Effective January 1,2001, yard waste and debris from land clearing operations may not be burned
inside the City limits nor in the Urban Growth Areas around the City per Washington State law. A
presentation by Olympic Air Pollution Control Authority (OAPCA) staff was given at the September
19, 2000 City Council meeting. The Public Works and Utilities and Fire Department staffs have been
working with OAPCA and local contractors, businesses and citizens to develop a policy on how to
implement the burn ban, determine the potential impacts on the landfill, and get the word out.
On October 24, 2000, a public forum on the outdoor burn ban was held at City Hall for contractors,
business owners and citizens. OAPCA staff, the Fire Chief and the Director, Public Works and
Utilities made presentations to the groups with a question and answer period following. The focus
was to provide information on the state law, current yard waste regulations and feedback from the
attendees on potential impacts.
The Solid Waste Staff of the Public Works and Utilities Department has been working on the issues
of removing plastics from the yard waste stream. It is necessary to remove the plastic from the yard
waste stream to use the yard waste either for our compost operations and/or for selling yard waste
as hog fuel to local plants. Selling ground up yard waste as hog fuel would reduce overall operating
costs associated with collections.
The staff has developed plans that could lead to a win - win situation for the businesses, contractors,
citizens and our yard waste program, that are cost effective for all involved.
To make the program work, it will be necessary to develop a comprehensive program that addresses
the various issues. The following is our proposal:
1 - Ban Plastics from ALL yard waste that is brought to the Port Angeles Landfill (PAL)
Yard waste brought to the PAL by commercial operators and residents shall only be natural
vegetation such as grass clippings, leaves, and branches and limbs. Untreated wood products free
of paint, metals and treatment shall only be accepted for composting and/or hog fuel. It is
recommended that plastics be banned from yard waste to be used for composting and/or hog fuel that
is brought to the landfill.
UAC
RE: Impacts of Burn Ban on PAL
Page 2
2 - Ban plastics from ALL yard waste that is collected curbside by Waste Management
Yard Waste collected curbside within the City Limits is collected by Waste Management. The cost
of the service is included in the resident's monthly fee for solid waste collection. Residents may
place their yard waste in reusable containers, plastic bags, bundled or loose. It is proposed that
plastic bags no longer be authorized as an acceptable method for curbside yard waste collection.
3 - Tree stumps shall no longer be accepted at the PAL
Yard waste must be ground by a private contractor to permit the yard waste to be utilized for
composting or hog fuel. Payment to the contractor is based upon a mobilization fee and cost per
hour for their services. It is proposed that tree stumps no longer be accepted at the PAL.
This service is available from businesses located in Clallam County. This service was discussed at
the October 24, 2000 forum as a viable alternative. It was endorsed by the North Peninsula Building
Association. Because this service is available in the community it is not necessary for the City to
offer it. Also, the time involved to grind stumps is significantly longer than yard waste.
4 - Commence eharging a fee at the PAL for eommercial yard waste
It has come to the staff's attention that commercial operators have not been charged for yard waste
disposal at the PAL. There is no clear answer on why they have not been charged. It is
recommended that fees be collected when the new policies are implemented.
If the Utility Advisory Committee supports the staff's recommendations, it will be necessary to
develop and implement an information campaign to get the word out and various ordinances will
need to be amended.
Alternatives for removal of plastics from the yard waste curbside collection waste stream
As part of our efforts to reduce plastics from the yard waste curbside collections, Waste Management
conducted a 30-day trial period at no cost. Waste Management instructed their drivers to remove
yard waste from plastic bags. The trial period permitted them to ascertain if it was cost effective and
efficient to remove the plastic bags at the curb. It was determined that a significant extra effort was
required and the added cost of the program was approximately $2,000 per month during high volume
periods.
Alternatives Proposed
1 - Direct that residents shall place yard waste only in reusable containers, cardboard boxes
(biodegradable and acceptable for composting and hog fuel), bundled or stacked in an orderly
fashion.
UAC
RE: Impacts of Bum Ban on PAL
Page 3
2 - Waste Management has proposed that residents be permitted to subscribe for $2 per month for
a 64-gallon container. Either the City or Waste Management would bill for the extra container.
3 - Waste Management has made an alternate proposal:
A. Provide a 64-gallon wheeled cart and collect co-mingled recyclables every other week
year round,
B. Collect yard waste without plastics every other week year round. Carts could be leased
from Waste Management. See alternatives 1 and 2, but at $1 per month for the yard
waste container.
C. Charge $1 per month for this added service.
D. Extend the recycling contract for a 5-year period until December 2007. (The 5 year
extension is not acceptable to staff. It is desired that the recycling contract expire at
approximately the same time transfer station operations begin.)
Staffrecommends options one and two with the City collecting the funds.
Now is the time to implement a comprehensive program in view of the pending Bum Ban and the
requirement to remove plastic from the yard waste stream. Changing habits of people is important
if we are going to have a successful and cost effective solid waste program after the PAL doses in
December 2006. The process has started with the conversion of the residential 300-gallon containers
to 90-gallon containers. Your guidance and support are requested. The staff will develop the
appropriate ordinances and publicity to implement your direction.
Proposed Recommendations
Direct staff to:
1. Revise ordinances and appropriate contracts to: A. Ban plastics from the yard waste stream
B. Ban stumps from being accepted at the PAL.
2. Collect fees from commercial business that bring yard waste to the PAL.
3. Seek input (open letter in the local newspaper and website) from City residents on their desire
to participate in a mandated co-mingled and/or subscription program for yard waste containers.
4. Return to the UAC with specific ordinances, contract language and survey results for review and
possible forwarding to the City Council for implementation.
N PWKS SWASTE UACBURN ~PD