HomeMy WebLinkAboutAgenda Packet 12/08/2009N: \uac \final \120809
Utility Advisory Committee
Public Works Conference Room
Port Angeles, WA 98362
December 8, 2009
AGENDA
I. Call to Order
II. Roll Call
III. Approval Of Minutes For November 11, 2009
IV. Late Items
V. Discussion Items
A. Dry Creek Water Association Special Service Agreement
B. Public Utilities Regulatory Policy Act Mandatory Standards
Determination
C. Interagency Agreement for Performance -Based Contracting
Amendment No. 2
D. Enron Settlement Agreement
E. Clallam County Shared Resource Conservation Manager Program
VI. Information Only Items
F. Department of Health Agreed Order (verbal report)
G. Network Needs Assessment and Public Safety Considerations
Update
VII. Next Meeting Date: January 12, 2010
VIII. Adjournment
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UTILITY ADVISORY COMMITTEE
GUEST SIGN UP SHEET
Councilmembers Absent:
Staff Present:
III. Approval Of Minutes
IV. Late Items: None
V. Discussion Items:
A.
Information only. No action taken.
Utility Advisory Committee
Public Works Conference Room
Port Angeles, WA 98362
November 10, 2009
3:00 p.m.
Dan Di Guilio, Betsy Wharton
Morse Creek Waterline Customers
I. Call To Order
Chairman Reed called the meeting to order at 3:00 p.m.
II. Roll Call
Councilmembers Present: Chairman Reed, Mayor Gary Braun, Orville Campbell,
Karen Rogers joined the meeting at 3:09, Elizabeth Butler
Kent Myers, Bill Bloor, Glenn Cutler, Dan McKeen, Larry
Dunbar, Phil Lusk, Ernie Klimek, Cate Rinehart
Others Present: Paul Elliott — Nippon Paper Industries USA Co., LTD
Chairman Reed asked if there were any corrections to the minutes of October 13, 2009.
It was noted that Gary Braun, Mayor had replaced Betsy Wharton, Deputy Mayor on the
signature line. Orville Campbell moved to approve the minutes. Mayor Braun seconded
the motion, which carried unanimously.
Ernie Klimek, Water Superintendent, reported that all of the customers that were served
with backflow deficiency notices are now in compliance with our ordinance by the
installation of approved devices or air gaps. A total of four customers asked to be
removed from the waterline, three new meters were installed to account for existing
usage, and five customers were added to flat rate charges. There was a brief discussion.
Staff was commended on the amount of work done to accomplish these tasks.
B. Proposed Medic 1 Rate Adjustments
Dan McKeen, Fire Chief, gave a powerpoint presentation noting that a comprehensive
Cost of Service Study had been done resulting in a $0.08 annual residential rate
adjustment and a $1.19 annual commercial/business rate adjustment for 2010. There was
a brief discussion.
Mayor Braun moved to recommend City Council approve the proposed Medic 1
Utility rate adjustments effective January 4, 2010. Councilmember Rogers
seconded the motion, which carried unanimously.
C. Utility Advisory Committee Industrial Customer Representative
Application
Paul Elliot, Nippon Paper Industries USA CO., was introduced and gave a brief overview
of his background and experience. A discussion followed.
Councilmember Rogers moved to recommend City Council appoint Mr. Paul Elliot
as the Industrial Customer representative on the Utility Advisory Committee.
Mayor Braun seconded the motion, which carried unanimously.
D. Public Utilities Regulatory Policy Act Mandatory Standards
Consideration
Phil Lusk, Power Resources Manager, pointed out that City Council had authorized
consideration of four new Electric Utility standards as required by the Energy
Independence Security Act of 2007. There was a brief discussion
Information only. No action taken.
E. Department Of Energy Smart Grid Investment Grant Application
Phil Lusk, Power Resources Manager, shared that although the City applied for a grant of
up to 50% of the cost of qualifying technologies, the request had been denied. A
discussion followed.
Information only. No action taken
E. Dean Reed, Industrial Customer Representative Resignation
Mr. Reed was honored for his leadership, dedication, high levels of standards, and
expertise during the many years he has served on the Utility Advisory Committee. A
cake and coffee was enjoyed in appreciation for this service.
VI. Next Meeting Date: December 8, 2009
VII. Adjournment: 4:20 p.m.
Karen Rogers, Vice -Chair Cate Rinehart, Admin. Spec.
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oRTNGELES
W A S H I N G T O N , U.S.A.
Utility Advisory Committee Memo
Date: December 8, 2009
To: Utility Advisory Committee
From: Glenn A. Cutler, P.E., Director of Public Works & Utilities
Subject: Dry Creek Water Association Special Service Agreement
Summary: In May of 2005 the City entered into an Interagency Water Facilities Agreement with
the Dry Creek Watef Association. The Agreement discussed transfer of customers as service areas
change during annexations and the need for Special Service Agreements to address water service
by one agency in another agency's service area. A Special Service Agreement has been negotiated
to address water customers in a portion of the Western Urban Growth Area annexed in 2005.
Recommendation: Forward a favorable recommendation to City Council to approve and
authorize the Mayor to sign a Special Service Agreement with the Dry Creek Water
Association.
Background /Analysis: In 2005, the City annexed a portion of the Western Urban Growth
Area to support economic growth. In May of 2005 the City entered into an Interagency Water
Facilities Agreement (IWFA) with the Dry Creek Water Association (DCWA). The IWFA
addresses service area boundaries, sales of facilities, and new development. It also outlines the
terms to enter into Special Service Agreements (SSA) that address water service to existing
DCWA customers that are inside the City.
The attached SSA was negotiated over the past four years, and is now ready for consideration.
The SSA covers water service to customers in the area annexed in 2005 as follows:
1. Current DCWA water customers in the annexed area west of Eclipse Industrial
Parkway will continue to be served by DCWA facilities, but become customers of the
City. These customers (3 commercial and 5 residential) will be billed at regular City
water rates. The City will pay DCWA a wholesale water rate that is their regular water
rate plus 20 %.
2. Existing DCWA water customers that are now inside the City and located east of
Eclipse Industrial Parkway and south of highway US 101 will be disconnected from
DCWA and served through City water facilities. These customers (6 commercial and 4
residential) are in the annexed area between Gakin Road and Eclipse Industrial
Parkway. The City will purchase the service rights for these customers from DCWA.
N \UAC\Frnal\Dry Creek Water Association Special Services Agreement.doc
Dry Creek Water Association Special Service Agreement
December 8, 2009
Page 2
The cost to execute the agreement is approximately $83,250. The final cost reflects interest
payments associated with plant value and net revenue. The attached agreement reflects a cost of
approximately $5,100 more than the anticipated final cost. At the time of publishing the Utility
Advisory Committee packet this item was still under discussion.
The DCWA customers to be connected to the City water system will pay to the City their refund
for surrendering their membership in the DCWA. Residential and commercial customers should
receive a refund of $5,000 and $7,500 respectively. This will return to the City approximately
$65,000. The net cost will be approximately $18,000.
Funds are identified in the Water Utility for this agreement. After action is taken by the City
Council the DCWA will consider the agreement.
It is recommended that the Utility Advisory Committee forward a favorable recommendation to
City Council to approve and authorize the Mayor to sign a Special Service Agreement with the
Dry Creek Water Association.
Attachment: Special Service Agreement
SPECIAL SERVICE AGREEMENT #1 BETWEEN
CITY OF PORT ANGELES
AND
DRY CREEK WATER ASSOCIATION. INC.
This special service agreement is made and entered into the 1 of December 2009, by and
between Dry Creek Water Association, Inc. (hereinafter called the Association) and City of Port
Angeles (hereinafter called the City).
WHEREAS, on May 3, 2005, the Association and City signed an Interagency Water Facilities
Agreement, which may hereafter be called the IWFA; and
WHEREAS, the Association and City desire to enter into this Agreement to address provision of
potable water to current customers of the Association located within the City limits; and
WHEREAS, the Association and City desire to enter into this Agreement to address the sale to
the City of certain Association facilities located within the City limits; and,
NOW, THEREFORE IT IS AGREED between the parties hereto as follows:
1. Incorporation:
The IWFA is incorporated herein by this reference.
2. Special Service To Be Provided By The Association:
a. Pursuant to the IWFA, the City requested a special service agreement with the
Association for properties inside the city limits, south of Hwy 101, and west of
Eclipse Industrial Parkway, which may hereafter be referred to as "the special
service area."
b. This special service agreement specifies the conditions and charges for service
pursuant to Exhibit "C" of the IWFA.
c. The parties agree that the special service area qualifies for a special service
agreement under the conditions stated in the IWFA.
d. The water customers within the special service area shown in Exhibit "D -2" of the
IWFA are and shall be customers of the City's water utility. The Association
agrees to provide and be responsible for potable water service to and as required by
the City's water customers within the special service area shown in Exhibit "A" of
the IWFA. As consideration for the special service to be provided by the
Association pursuant to this Agreement, the City shall pay the Association
compensation as provided in Section 6 below.
3. Sale of Facilities:
a. The City, as part of this agreement, is purchasing a portion of the Association's
water system (excluding the distribution main lines) currently serving properties
within the City limits located south of Hwy 101 and east of the special service area
depicted in Exhibit "D -2" of the IWFA. The facilities to be transferred, the
purchase price for the facilities, and the customers served by the facilities all are set
forth in Exhibit "B ", which is attached hereto and made a part of this agreement.
b. For purchase of the facilities, the City agrees to pay to the Association the sum of
$82,360.15, as detailed in Exhibit `B "- Calculation of Purchase Terms, plus interest
from and after December 1, 2005, at 7.45% per annum to the date it shall become
due in accordance with paragraph 3.c. below. The parties agree to pursue in good
faith closing of the transaction on or before December 31, 2009.
c. Payment shall become due on the date, the Association provides to the City and the
City accepts a bill of sale and other documents as appropriate to convey to the City
all right, title and ownership in and to the said water system.
d. The water customers identified in Exhibit B are and shall be customers of the City's
water utility. The City agrees to provide and be responsible for potable water
service to and as required by the City's water customers identified in Exhibit B.
e. The City and the Association acknowledge that water service to the customers
identified in Exhibit B must be disconnected from the Association's supply lines
and then reconnected to the City's supply lines. The parties agree that they shall
coordinate the work of disconnection and reconnection so that the customers
experience the shortest possible loss of water service.
4. Term:
This agreement shall become effective on this 1 day of December 2009. It shall
remain in effect until terminated as provided below.
5. Duration and Termination of Agreement:
This Agreement shall continue in force and effect until terminated in accordance with
the following procedures:
The Association may terminate this Agreement at any time upon receiving the
consent of the City;
After December 1, 2014, City may terminate this Agreement at any time by giving
the Association at least sixty (60) days notice prior to termination;
Additionally, after December 1, 2014, the Association may terminate this Agreement
upon one hundred eighty (180) days notice to City when, in the reasonable opinion of
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the Association, the pre- conditions set forth in Section 11 of the Interagency
Agreement are no longer applicable to this Agreement. In such event, at the
expiration of the notice period, the City shall proceed to implement service in the
manner and subject to the time frame set forth in Section 6 of the Interagency
Agreement.
6. Payment for Water to Special Service Area:
From and after the effective date of this agreement, the City shall pay to the
Association, a monthly amount to be calculated in accordance with the Exhibit "C ",
which is attached hereto and incorporated herein by reference The parties agree that
the Association is entitled to payment from the City of the 20% surcharge set forth in
Exhibit C for the period included in billings beginning with May 2005 through
November 2009, together with interest on the surcharges due at the rate of 7.45% per
annum from the date of each original billing to the date paid. The Association shall
recalculate past -due 20% surcharges, plus applicable interest thereon, and submit an
invoice to the City therefor within ten (10) days of the effective date of this
Agreement. The balance due shall be paid on or before December 31, 2009.
7. Changes to Agreement:
Changes in the terms and conditions of this special service agreement may be made at
any time upon the mutual consent of both parties. Either party desiring a change shall
given the other party written notice. The notice shall contain the desired changes and
with a full explanation of the reasons for the changes. If, the parties hereto cannot
mutually agree to the proposed changes, the agreement shall remain unchanged.
8. Hold Harmless:
The City agrees, upon completion of the transfer of the water facilities, to indemnify,
defend, and hold harmless the Association and its officials, employees, and agents,
from and against any and all claims for damages or any other relief due to property
damage, personal injury, or any other form of loss arising from acts or failures to act
occurring after the date of the transfer and from the ownership or operation of the
transferred facilities. The City agrees to accept facilities as is with no warranty as to
condition or suitability for use by the City except as otherwise provided in the IWFA.
The Association agrees, upon completion of the transfer of the water facilities, to
indemnify, defend and hold harmless the City and its officials, employees, and agents,
from and against any and all claims for damages or any other relief due to property
damage, personal injury, or any other form of loss arising from acts or failures to act
occurring prior to the date of the transfer and from the ownership or operation of the
transferred facilities.
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9. Arbitration:
The parties agree that any dispute with regard to the interpretation or enforcement of
this special service agreement shall be resolved by binding arbitration conducted
pursuant to the arbitration statutes of the State of Washington in effect at the time of
the dispute.
10. Authority:
Each party warrants that the undersigned representative has full and complete legal
authority to sign for it and to commit it to the performance of the agreement set forth
herein.
11. Priority.
This Agreement is intended to implement provisions of the IWFA, and the parties
have not intended to create any conflict between the terms of this Agreement and the
IWFA. However, in the event of any conflict between the terms of the agreements,
the IWFA shall control.
IN WITNESS WHEREOF, the parties hereto have caused the SPECIAL SERVICE
AGREEMENT to be duly signed and executed in two counterparts as of the day and year first
above written.
ATTEST: ATTEST:
James Critchfield, President of the Board Gary Braun, Mayor
Dry Creek Water Association, Inc. City of Port Angeles
William E. Bloor, Attorney
City of Port Angeles
G 1Legal_Backap \AGREEMENTS &CONTRACTS12009 Agrmts &Conlracts\DCWA Special Services Agrmt.12.02.09 Final doc
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ATTEST:
Janessa Hurd, City Clerk
City of Port Angeles
APPROVED AS TO FORM:
Richard Owen
Richard Owen
Lynda Erdmann Eshom
Mrs. Charles Nyhus
Kurt Bruch
B &D Inc.
William Smith
Donna Jacobsen
EXHIBIT "A"
PROPERTY OWNERS
1930 West Hwy 101
1938 West Hwy 101
2010 West Hwy l01
2156 West Hwy 101
2346 West Hwy 101
2358 West Hwy 101
2414 West Hwy 101
51 Cameron Road
Residential Service (3/4 ")
Residential Service (3/4 ")
Commercial Service (3/4 ")
Residential Service (3/4 ")
Commercial Service (3/4 ")
Commercial Service (3/4 ")
Residential Service (3/4 ")
Residential Service (3/4 ")
A. PLANT VALUE:
Detail Service Expenditures
EXHIIBIT "B"
CALCULATION OF PURCHASE TERMS
Purchase Price for Transfer of Facilities:
The purchase price shall be compensation based on five (5) years of net revenue plus
plant value plus severance costs.
Any sums paid to Dry Creek Water Association by the City of Port Angeles pursuant to
Section 9 of the IWFA will not be included in acquisition costs.
Current replacement costs for all system facilities multiplied by the depreciation factor of
2% per year through year 45 and 90% per year thereafter. Trenching and labor costs for
underground services are not included. 4.45% annual yield rate plus 3% charge are
included.
DOT Road Permit $27.00
3/ water line ($00.37 per lineal foot -LF)
2" steel casing under Hwy ($03.51 per lineal foot -LF)
4" service saddle $30.84
Customer shut off valve $ 7.45
Corporation stop • $27.32
-3/4"PRV Unit $58.83
Meter setter $54.05
3/4" service meter $38.95
Meter boxes $41.16
Customer #1 — (Patsy Triggs —1248 West Hwy 101) - $1003.28 x 60% (1988) = $601.97
x 7.45% ($44.85) = $646.82 (121 LF plus detail service expenditures)
Customer #2 — (Ronald Richmond Estate - 1246 West Hwy 101) - $303.37 x 38% (1977)
= $115.28 x 7.45% ($8.59).= $123.87 (121 LF plus detail service expenditures minus
permit & casing)
Customer #3 — (Kenneth Spencer --1330 West Hwy 101) - $1003.28 x 12% (1964) =
$120.39 x 7.45% ($8.97) = $129.36 (121 LF plus detail service expenditures)
Customer #4 — (Kenneth Patterson — 31 Benson Road) - $1003.28 x 12% (1964) =
$120.39 x 7.45% ($8.97) = $129.36 (121 LF plus detail service expenditures)
Customer #5 — (Bruch & Bruch —1706 West Hwy 101) - $855.64 x 30% (1973) _
$256.69 x 7.45% ($19.12) _ $275.81 (83 LF plus detail service expenditures)
Customer #6 — (Jeffrey Young —1708 West Hwy 101) - $289.31 x 68% (1992) _ $196.73
x 7.45% ($14.66) = $211.39 (83 LF phis detail service expenditures minus permit &
casing)
Customer #7 — (Richard Kott —1734 West Hwy 101) - $855.64 x 78% (1997) = $667.40
x 7.45% ($49.72) = $717.12 (83 LF plus detail service expenditures)
Customer #8 — (Lakeside Industries -- Lot #2 — Eclipse Parkway) - $855.64 x 78% (1997)
= $667.40 x 7.45% ($49.72) = $717.12 (83 LF plus detail service expenditures)
Customer #9 — (NC Machinery — 73 Eclipse Parkway) - $289.31 x 78% (1997) = $225.66
x 7.45% ($16.81) = $242.47 (83 LF plus detail service expenditures minus permit &
casing)
Customer #10 — (Richard Kott, -1734 West Hwy 101) - $855.64 x 50% (1983) = $427.82
x 7.45% ($31.87) = $459.69) ($3 LF plus detail service expenditures)
One time $2,000.00 capital costs for fees agreed upon by Dry Creek Water Association
and the City of Port Angeles.
Subtotal. Part A= $5.653.01
B. SEVERANCE COSTS:
A11 costs mutually agreed upon by Dry Creek Water Association and the City of Port
Angeles associated with the transfer of customers including but not limited to removing
interconnecting pipes, facilities, and meters and administration costs.
Detailed Severance Expenditures
Operator, Equipment, Laborer (2 hrs /open -close work main)
Maintenance Worker (2 hrs /open -close work main)
Administration (1 hr administration work)
Totals
Membership Reimbursement (Residential (primary) $5.000.00
Commercial (Secondary) $7.500.00
4.45% annual yield rate plus 3% charge are included.
$258.00
$ 48.00
$ 31.00
$337.00
Customer #1 — (Patsy Triggs —1248 West Hwy 101)
Residential Membership = $5,337.00 x 7.45% ($397.61) = $5,734.61
Customer #2 — (Ronald Richmond Estate — 1246 West Hwy 101)
Commercial Membership = $7,837.00 x 7.45% ($583.86) _ $8,420.86
Customer #3 — (Kenneth Spencer —1330 West Hwy 101)
Residential Membership = $5,337.00 x 7.45% ($397.61) = $5,734.61
Customer #4 — (Kenneth Patterson — 31 Benson Road)
Residential Membership = $5,337.00 x 7.45% ($397.61) = $5,734.61
Customer #5 — (Bruch & Bruch —1706 West Hwy 101)
Commercial Membership = $7,837.00 x 7.45% ($583.86) = $8,420.86
Customer #6 — (Jeffrey Young —1708 West Hwy 101)
Residential Membership = $5,337.00 x 7.45% ($397.61) - $5,734.61
Customer #7 — (Richard Kott —1734 West Hwy 101)
Commercial Membership = $7,837.00 x 7.45% ($583.86) = $8,420.86
Customer #8 — (Lakeside Industries — Lot #2 -- Eclipse Parkway)
Commercial Membership = $7,837.00 x 7.45% ($583.86) _ $8,420.86
Customer #9 — (NC Machinery ,- 73 Eclipse Parkway)
Commercial Membership = $7,837.00 x 7A5% ($583.86) _ $8,420.86
Customer #10 — (Richard Kott —1734 West Hwy 101)
Commercial Membership = $7,837.00 x 7.45% ($583.86) _ $8,420.86
Subtotal , Part B = $73.463.60
C. NET REVENUE:
Five years worth of net revenue from transferred customers as determined by the
following formula:
Customer Monthly Billing Amount (W) x Annual Net Revenue Factor
(W) = Five years the sum of the most recent 12 customer monthly billing
amount for each transferring customer.
C = Annual operating revenue from the most recent annual financial
statement minus annual operating expenses for the same financial
statement with the remainder divided by operating revenues. The annual
financial statement is included as Attachment "1" to Exhibit `B ".
Operating Revenue minus Operating Expenses $404,666. minus $239,093.
®_ _ =.59
Operating Revenue $404,666
Customer #1 - (Patsy Triggs -1248 West Hwy 101)
(W) = 2008 billings (12 months) = $314.74 x 5 years = $1,573.70 x .59 = $645.22 x
7.45% ($48.07) = $693.29
Customer #2 - (Ronald Richmond Estate- 1246 West Hwy 101)
(W) = 2008 billings (12 months) _ $321.44 x 5 years = $1,607.20 x .59 = $658.95 x
7.45% ($49.09) = $708.04
Customer #3 - (Kenneth Spencer - 133 0 West Hwy 101)
(W) = 2008 billings (12 months) _ $375.06 x 5 years = $1,875.30 x .59 = $768.87 x
7.45% ($57.28) = $826.15
Customer #4 - (Kenneth Patterson - 31 Benson Road)
(W) = 2008 billings (12 months) _ $384.81 x 5 years = $1,924.05 x .59 = $788.86 x
7.45% ($58.77) = $847.63
Customer #5 - (Bruch & Bruch -1706 West Hwy 101)
(W) = 2008 billings (12 months) = $339.87 x 5 years = $1,699.35 x .59 = $696.73 x
7.45% ($51.91) _ $748.64
Customer #6 - (Jeffrey Young -1708 West Hwy 101)
(W) = 200$ billings (12 months) = $370.29 x 5 years = $1,851.45 x .59 = $759.09 x
7.45% ($56.55) = $815.64
Customer #7 - (Richard Kott -1734 West Hwy 101)
(W) • 2008 billings (12 months) = $1,065.53 x 5 years = $5,327.65 x .59 = $2,184.34 x
7.45% ($162.73) = $2,347.07
Customer #8 - (Lakeside Industries - Lot #2 - Eclipse Parkway)
(W) = 2008 billings (12 months) = $445.21 x 5 years = $2,226.05 x .59 = $912.68 x
7.45% ($67.99) = $980.58
Customer #9 -- (NC Machinery - 73 Eclipse Parkway)
(W) = 2008 billings (12 months) _ $295.12 x 5 years = $1,475.60 x .59 = $605.00 x
7.45% ($45.07) = $650.07
Customer #10 — (Richard Kott —1734 West Hwy 101)
(W) = 2008 billings (12 months) = $278.38 x 5 years = $1,391.90 x .59 = $570.68 x
7.45% ($42.52) = $613.20
Subtotal. Part C = $9.230.31
Total Due for Purchase of Facilities under Exhibit B = $88,346.92
DRY CREEK WATER ASSOCIATION, INC.
STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN ASSOCIATION'S EQUITY
FOR THE YEARS ENDED JUNE 30, 2008 AND 2007
2008
REVENUES
Water Assessments $ 261,886.87
Interest Income 47,887.29
Elwha Project 93,317.20
Other Income 1,574.52
Total Revenues 0 0 . 404,665.88
EXPENSES
Accounting Fees 1,409.68
Bank Charges 968.27
Dues and Subscriptions 775.50
Depreciation 34,868.00
Insurance 5,608.97
Leases 1,500.00
Meals and Entertainment 651.64
Office Supplies 2,795 35
Other Expenses 5,568.34
Salaries and Wages 91,398.00
Taxes - Payroll 6,754.67
Taxes - Other 13,572.28
Telephone 3,090.37
Travel and Lodging 2,741 43
Training and Seminars 50.00
Utilities 14, 593.73
Line Extension Fees
Elwha Mitigation Expenses 2,772.20
Water System Expenses 49,976.59
Total Expenses Ale 239,093.02
Excess (Deficit) Revenue Over Expenses 165,572.86
Membership Fees 45,695 00
Association's Equity - Beginning of the Year 1,153,481.20
Association's Equity - End of the Year $ 1,364.749 06
ATTACHMENT 1
Customers served under this special service agreement are the customers of the City of Port
Angeles, receiving water service by agreement from Dry Creek Water Association.
1. Definitions:
"Special service water rate ". Dry Creek Water Association will charge the established
Association customer rate (residential or commercial, as the case may be) plus twenty
percent (20 %).
2. Facility Costs Associated with Special Service Agreements:
All costs of new or improved facilities in order to provide water pursuant to this special
service agreement shall be borne by the City. These costs shall include but not be limited
to the cost of providing meters and disconnect between the facilities of the two parties
when applicable. Payment of costs by the City shall be made within forty -five (45) days
of invoice by the Association upon completion of the project.
The Association as owner of the existing facilities shall be responsible for maintenance of
the existing facilities.
3. Special Service Charges:
EXHIBIT "C"
SPECIAL SERVICE TERMS
The Association shall provide monthly statements to the City of the total metered
consumption of all customers included in this special service agreement. Special service
conditions and charges for this service will be as follows:
3 /4 Residential Service: $25.00 Monthly Base Rate
0 -499 cubic feet = $.005 per cubic feet
500 -999 cubic feet = $.010 per cubic feet
1000 -1499 cubic feet = $.015 per cubic feet
1500 -1999 cubic feet = $.020 per cubic feet
2000+ cubic feet = $.025 per cubic feet
Plus 20% = Total Billing
9 Commercial Service: $28.50 Monthly Base Rate up to 1,000 cubic feet
0 -499 cubic feet = $.005 per cubic feet
500 -999 cubic feet = $.010 per cubic feet
$38.00 Monthly Base Rate from 1001 to 1999 cubic feet
1000 -1499 cubic feet = $.015 per cubic feet
1500 -1999 cubic feet = $.020 per cubic feet
$48.00 Monthly Base Rate from 2000 cubic feet and over
2000 -over cubic feet = $.025 per cubic feet
Plus 20% = Total Billing
If a rate change happens by the membership of the Association before the termination of
this agreement, Dry Creek Water Association will submit a change agreement request to
this special service agreement.
Payment for Water to Special Service Area:
EXHIBIT "C -1"
SPECIAL SERVICE TERMS
From and after the effective date of this agreement, the City shall pay to the Association, a
monthly amount to be calculated in accordance with Exhibit "C ", which is attached hereto and
incorporated herein by reference. The calculations below include monthly billings from May
2005 through October 2009.
Customer #1 — (Patsy Triggs —1248 West Hwy 101)
2005 -2009 billings = $1,422.98 x 20% surcharge = $284.60
Customer #2 — (Ronald Richmond Estate— 1246 West Hwy 101)
2005- 2009biIlings = $1,313.67 x 20% surcharge = $262.73
Customer #3 — (Kenneth Spencer -1330 West Hwy 101)
2005 -2009 billings = $1,800.95 x 20% surcharge = $360.19
Customer #4 — (Kenneth Patterson — 31 Benson Road)
2005 -2009 billings = $1,433.44 x 20% surcharge = $286.69
Customer #5 — (Bruch & Bruch —1706 West Hwy 101)
2005 -2009 billings = $2,899.07 x 20% surcharge = $579.81
Customer #6 — (Jeffrey Young —1708 West Hwy 101)
2005 -2009 billings = $3,000.46 x 20% surcharge = $600.09
Customer #7 — (Richard Kott --1734 West Hwy 101)
2005 -2009 billings = $3,817.67 x 20% surcharge = $763.53
Customer #8 — (Lakeside Industries — Lot #2 — Eclipse Parkway)
2005 -2009 billings = $1,568.86 x 20% surcharge = $313.77
Customer #9 — (NC Machinery — 73 Eclipse Parkway)
2005 -2009 billings = $1,349.32 x 20% surcharge = $269.86
Customer #10 — (Richard Kott —1734 West Hwy 101)
2005 -2009 billings = $1,255.42 x 20% surcharge = $251.08
Customer #11— (Richard Owen -1930 West Hwy 101)
2005 -2009 billings = $1,337.93 x 20% surcharge = $267.59
Customer #12 — (Richard Owen -1938 West Hwy 101)
2005 -2009 billings = $1,295.30 x 20% surcharge = $259.06
Customer #13 — ( Lynda Erdmann Eshom -2010 West Hwy 101)
2005 -2009 billings = $2,117,65 x 20% surcharge = $423.53
Customer #14 — (Mrs. Charles Nyhus -2156 West Hwy 101)
2005 -2009 billings = $2,084.22 x 20% surcharge = $416.84
Customer #15 — (Kurt Bruch -2346 West Hwy 101)
2005 -2009 billings = $1,460.75 x 20% surcharge = $292.15
Customer #16 — (B &D Inc -2258 West Hwy 101)
2005 -2009 billings = $1,708.29 x 20% surcharge = $341.66
Customer #17 — (William Smith -2414 West Hwy 101)
2005 -2009 billings = $1,604.81 x 20% surcharge = $320.96
Customer #18 — (Donna Jacobsen -51 Cameron Road)
2005 -2009 billings = $1,954.14 x 20% surcharge = $390.83
Total Due: $6,684.97
Grand Total Due: $95.03 1. 89
N \UAC \Flnal\PURPA Determination doc
pORTNGELES
W A S H I N G T O N , U.S.A.
Utility Advisory Committee Memo
Date: December 8, 2009
To: Utility Advisory Committee
From: Phil Lusk, Power Resources Manager
Subject: Public Utilities Regulatory Policy Act Mandatory Standards Determination
Summary: The City is required by the Energy Independence Security Act of 2007 to consider
four new Electric Utility standards embodied in the Public Utilities Regulatory Policy Act.
Recommendation: Forward a favorable recommendation to City Council to pass a
resolution regarding the Public Utilities Regulatory Policy Act standards.
Background /Analysis: In accordance with the Public Utilities Regulatory Policies Act
(PURPA) as amended by Section 1307 of the Energy Independence Security Act of 2007 (EISA),
all electric utilities in the United States of America must consider four new standards. The new
standards that must be considered include: 1) an investment in a qualified "Smart Grid" system, 2)
providing Smart Grid information to electric customers, 3) should the City conduct integrated
resource planning, and 4) rate design modifications that promote energy efficiency. Although
PURPA mandates the City must consider the standards, it allows the City Council to make a
determination if it is appropriate to implement or decline each standard.
The City commenced its consideration of the four standards upon the approval of City Council on
November 18, 2008. As part of this commencement, a public notice was published in the
Peninsula Daily News and the notice was posted on the City's website. Following a presentation
by staff, City Council opened a public hearing to receive written comments and testimony from the
public at its November 17, 2009 meeting. To -date, no comments have been received. At its
December 15, 2009 meeting, City Council will be asked to continue the public hearing and to
consider any final testimony presented by staff and the public. Council will then close the public
hearings and make a determination on whether or not each standard is appropriate for adoption by
the Electric Utility on behalf of its customers.
Staff requests that the Utility Advisory Committee to forward a favorable recommendation to City
Council to pass a resolution regarding the Public Utilities Regulatory Policy Act standards.
Attachment: Proposed resolution regarding the Public Utilities Regulatory Policy Act standards.
RESOLUTION NO.
A RESOLUTION of the City Council of the City of Port Angeles,
Washington, adopting Findings and Conclusions relating to the
Public Utility Regulatory Policies Act (PURPA).
WHEREAS, the Energy Independence and Security Act of 2007 amended the Public
Utility Regulatory Policies Act (PURPA), requiring certain public utilities consider four new
standards, including Integrated Resource Planning, Rate Design Modifications to Promote
Energy Efficiency Investments, Consideration of "Smart Gnd" Investments, and Smart Grid
Information; and
WHEREAS, the key goals of PURPA are to encourage:
1) Conservation of energy supplied by electric utilities;
2) Optimization of the efficiency ofuse of facilities and resources by electric
utilities;
3) Equitable rates to electric consumers; and
WHEREAS, the City is subject to the requirements of PURPA; and
WHEREAS, the City Council of the City of Port Angeles, Washington, being the
governing body of the City's electric utility did, after public notice, hold public hearings on the
17t of November 2009 and the 15` of December 2009 to consider and discuss the adoption of
Findings and Conclusions relating to the Public Utility Regulatory Policies Act (PURPA).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Angeles as follows:
Section 1. The City Council hereby approves and adopts the Findings and
Conclusions attached as Exhibit A.
declares:
2.1 Integrated Resource Planning.
The City of Port Angeles should not adopt the Integrated Resource Planning
standard because the increased cost and complexity of compliance with such a standard would
exceed any benefits that would be derived from its use.
2.2 Rate Design Modifications to Promote Energy Efficiency Investments:
The City of Port Angeles should not adopt additional Rate Design Modifications
to Promote Energy Efficiency Investments standard at this time, but should reconsider the
standard in 2010.
2.3 Consideration of "Smart Grid" Investments:
The City of Port Angeles should not adopt the Consideration of "Smart Grid"
Investments standard at this time, but should reconsider the standard after the Bonneville Power
Administration provides wholesale Smart Grid services to the City.
2.4 Smart Grid Information:
The City of Port Angeles should not adopt the Smart Grid Information standard
at this time, but should reconsider the standard after the proposed Advanced Metering
Infrastructure project is completed.
Council held on the day of December, 2009.
ATTEST:
Section 2. Based on the Findings and Conclusions, the City Council decides and
PASSED by the City Council of the City of Port Angeles at a regular meeting of said
Janessa Hurd, City Clerk
G \Legal_ Backup \ORDINANCES &RESOLUTIONS \RESOLUTIONS 2009 \31 PURPA 110209 wpd, December 3, 2009
-2-
MAYOR
APPROVED AS TO FORM:
William E. Bloor, City Attorney
EXHIBIT "A"
Based on the evidence presented at the public hearing conducted on November 17 2009,
the City Council makes the following FINDINGS OF FACT:
The Energy Independence and Security Act of 2007 amended the Public Utility Regulatory
Policies Act (PURPA), requiring public utilities with annual sales greater than 500 Million
kWh to consider four new standards, including Integrated Resource Planning, Rate Design
Modifications to Promote Energy Efficiency Investments, Consideration of "Smart Grid"
Investments and Smart Grid Information; and
1) With regard to the Integrated Resource Planning standard;
a) Port Angeles currently integrates energy efficiency resources into its plans, and has
adopted policies establishing cost - effective energy efficiency as a priority resource.
Energy efficiency resources are currently obtained by providing incentives to retail
consumers for the installation of energy efficient equipment.
b) Port Angeles must update its Resource Plan on a regular basis at minimum intervals
of every two years as required by RCW 19.280.030.
c) Port Angeles must submit an Electric Utility Resource Plan to the Washington
Department of Community, Trade and Economic Development by September 1, 2010
as required by RCW 19.280.030, which will incorporate cost - effective energy
efficiency measures as a priority resource.
d) Port Angeles would not benefit from the increased complexity and cost of conducting
an integrated resource planning based on the City's historically low growth rates.
2) With regard to the Rate Design Modifications to Promote Energy Efficiency Investments;
a) Port Angeles currently provides utility incentives for the delivery of cost - effective
energy efficiency, and promotes energy efficiency investments to its customers.
b) Port Angeles currently operates an energy conservation program in cooperation with
the Bonneville Power Administration, which in turn develops it energy conservation
program with the input from the Power Plans that are developed by the Northwest
Power and Conservation Council.
c) Port Angeles is proposing to double its energy conservation program during the 2010-
2014 time period.
1
d) Port Angeles will be conducting a study in 2010 for electric utility retail rate design
alternatives, and may consider modifications to further promote energy efficiency in
the future.
e) Port Angeles offers time -of -use rates to all of its retail electric customers.
f) Port Angeles is committed to cost -based rates and intends to keep the retail cost of
electric power as close to the wholesale cost of power as possible.
3) With regard to the Consideration of "Smart Grid" Investments;
a) Port Angeles has evaluated both Advanced Meter Reading (AMR) and Advanced
Metering Infrastructure (AMI) technologies since 2006.
i) This evaluation has been based on a number of factors, including: 1)Total costs,
2) Cost - effectiveness, 3) Improved reliability, 4) Security, 5) System
performance, and 6) Societal benefit.
b) Port Angeles included an AMI project in its current Capital Facilities Plan for the
City's electric, water and wastewater utilities commencing in 2010.
i) This project will replace the majority of all existing non- advanced revenue meters
now being used by the City's distribution system customers.
c) Port Angeles does not currently receive any Smart Grid services or incentives to
reduce its power costs under it present wholesale power sales or wholesale
transmission agreements with the Bonneville Power Administration (BPA).
d) Port Angeles cannot evaluate the costs and benefits of this proposed standard until
such time that Smart Grid services are available on its wholesale power and
transmission purchases from the BPA.
4) With regard to the Smart Grid Information;
a) Port Angeles now provides consumer information through reasonable means other
than a smart grid infrastructure, such as by e -mail, the City's web site, information
printed on the bill, and bill inserts. Port Angeles is interested in exploring the
technological capabilities of a smart grid system and will carefully manage the cost of
such a system should it ever become a practical method of delivering information
concerning time -based wholesale electricity prices along with available retail rates
data to its customers.
b) Port Angeles now provides its customers with access to the data concerning the
sources of power provided by the electric utility, including greenhouse gas emissions
associated with each type of generation. This information is provided by means such
as by e -mail, the City's web site, information printed on the bill, and bill inserts.
2
c) Port Angeles cannot provide retail Smart Grid information to its electricity customers
until after it completes the proposed AMI project in 2010.
d) Port Angeles cannot provide wholesale Smart Grid information to its customers until
such a time as those services are provided to the City by the BPA.
e) Port Angeles has already deployed a fiber optic network that links all of its electric
utility substations, enabling future Smart Grid services to its customers when they
become available.
Based on the foregoing Findings, the City Council of the City of Port Angeles makes the
following Conclusions:
1. The City of Port Angeles should not adopt the Integrated Resource Planning standard
because the increased cost and complexity of compliance with such a standard would
exceed any benefits that would be derived from its use.
2. The City of Port Angeles should not adopt additional Rate Design Modifications to
Promote Energy Efficiency Investments standard at this time, but should reconsider
the standard in 2010.
3. The City of Port Angeles should not adopt the Consideration of "Smart Grid"
Investments standard at this time, but should reconsider the standard after the
Bonneville Power Administration provides wholesale Smart Grid services to the City.
4. The City of Port Angeles should not adopt the Smart Grid Information standard at this
time, but should reconsider the standard after the proposed Advanced Metering
Infrastructure project is completed.
DATED this day of December, 2009.
Gary Braun, Mayor
City of Port Angeles
G•1Legal_ Backup\ ORDINANCES &RESOLUTIONSIRESOLUTIONS 2009131 PURPA Exhibit A 110409 doc (12/2/2009)
3
PORT ANGELES
W A S H I N G T O N , U.S.A.
Utility Advisory Committee Memo
Date: December 8, 2009
To: Utility Advisory Committee
From: Phil Lusk, Power Resources Manager
Subject: Interagency Agreement for Performance -Based Contracting Amendment No. 2
Summary: The City is a participant in a State - sponsored performance -based contracting program
to reduce utility costs at the City Hall Annex. A proposal has been received and an amendment
(including a funding commitment) to the Interagency Agreement is needed to authorize the capital
improvements phase of the project to proceed. Also, a grant award notice was received from the
Washington State Department of Commerce, which, in combination with the Conservation Fund,
will fund the project.
Recommendation: Forward a favorable recommendation to City Council to: 1) Authorize
the Mayor to accept the Washington State Department of Commerce grant award in the
amount of $135,000 for the City Hall Annex Energy Conservation Improvements project,
and 2) Authorize the Public Works and Utilities Director to sign Amendment No. 2
(including a funding commitment) to the existing Interagency Agreement with the State of
Washington to proceed with the City Hall Annex Energy Conservation Improvements
project in an amount not to exceed $435,000.
Background /Analysis: Following City Council's approval on February 17, 2009, the City
has participated in a State - sponsored performance -based contracting program to reduce utility
costs. Performance -based contracts are allowed by RCW 39.35A for improvements to City
facilities.
As part of the performance -based approach, an Energy Service Company (ESCO) conducted an
"investment- grade" energy audit on the City Hall Annex. This energy audit guarantees both the
maximum project cost and the minimum utility cost savings. Among other items, the energy audit
revealed that the City Hall Annex energy costs are about 50% higher than similar facilities of this
type and construction in the Pacific Northwest.
The ESCO submitted a proposal for capital improvements for the City Hall Annex Energy
Conservation Improvements project which was included in the 2009 -2015 Capital Facilities Plan.
Therefore, a necessary second amendment (including a funding commitment) to the Interagency
Agreement with the State is being sought to authorize the project to proceed.
N \UAC \Final \Interagency Agreement for Performance -Based Contracting Amendment No 2 doc
Interagency Agreement For Performance -Based Contracting Amendment No. 2
December 8, 2009
Page 2
The proposed scope of work includes installing the following measures: 1) cooling/economizer
repairs for the City Hall main floor offices; 2) heating, ventilation and air - conditioning (HVAC)
improvements for the 2 Floor Legal Department area, and; 3) installing a Direct Digital Controls
system that will be used for enhanced time -of -day scheduling and optimizing the use of outside air
for natural cooling.
In addition to energy and operational savings that are estimated to total approximately $20,000 per
year, other benefits include ensuring that adequate ventilation is provided pursuant to the
requirements of the State Building Code and enhanced workplace comfort. Furthermore, the
current equipment that is being proposed for replacement is at or past its service life and will be
replaced with new higher- efficiency equipment.
On July 21, 2009, City Council authorized the Public Works and Utilities Director to submit grant
applications for funds made available by the American Recovery and Reinvestment Act (ARRA)
of 2009, Public Law 111 -5. An application was submitted on September 1, 2009 for funding under
the Energy Efficiency and Conservation Block Grant (EECBG) Program. The Washington State
Department of Commerce (formerly the Department of Community, Trade and Economic
Development) recently sent an award notice that it intends to provide the City a $135,000 grant for
the proposed City Hall Annex Energy Conservation Improvements project.
While the ESCO's audit identified a number of energy efficiency improvements that should be
considered for the City Hall Annex, staff is recommending that only three improvements be
implemented at this time as they represent the key measures within the available budget. City staff
will continue to work independently on the audit's "no- cost" to "low- cost" recommendations, such
as lighting and lighting controls. Several of these have already been implemented, including the
lighting improvements made earlier this year in the Vern Burton Gymnasium.
Conservation Fund
State EECBG Grant
TOTAL PROJECT COST
Sources of Funds Statement
City Hall Annex Energy Conservation Improvements Project
$ 300,000
$ 135,000
$ 435,000
Staff requests that the Utility Advisory Committee forwards a favorable recommendation to City
Council to: 1) Authorize the Mayor to accept the Washington State Department of Commerce
grant award in the amount of $135,000 for the City Hall Annex Energy Conservation
Improvements project, and 2) Authorize the Public Works and Utilities Director to sign
Amendment No. 2 (including a funding commitment) to the existing Interagency Agreement with
the State of Washington to proceed with the City Hall Annex Energy Conservation Improvements
project in an amount not to exceed $435,000.
PORTNGaES
W A S H I N G T O N , U.S.A.
Utility Advisory Committee Memo
Date: December 8, 2009
To: Utility Advisory Committee
From: Philip Lusk, Power Resources Manager
Subject: Enron Settlement Agreement
Summary: The City has been offered the opportunity to participate in the Attorney General's
Enron energy restitution program. The Attorney General has requested that the City sign an
Agreement with the State to use the City's allocation of settlement funds for low- income energy
assistance or weatherization programs.
Recommendation: Forward a favorable recommendation to City Council to authorize the
City Manager to sign the Enron Settlement Agreement with the State of Washington.
Background /Analysis: Washington State has concluded the Enron bankruptcy proceedings,
and is arranging to distribute the funds recovered from the Enron bankruptcy related to the 2000-
2001 West Coast energy crisis.
The Attorney General of Washington State is offering the City the opportunity to participate in the
distribution, and could provide the City with $19,505.36 to be used for low- income energy
assistance or weatherization programs.
Staff recommends that the funds be used for providing low - income energy assistance to the City's
residential customers, which includes a records - keeping requirement in accordance with the
Agreement., The money provided under this distribution must be spent by December 31, 2010.
The terms of the distribution is covered in the Energy Settlement Cy Pres Recipient Agreement
Between the State of Washington and City of Port Angeles. The agreement has been reviewed by
the City Attorney's Office.
Staff requests that the Utility Advisory Committee forward a favorable recommendation to City
Council to authorize the City Manager to sign the Enron Settlement Agreement with the State of
Washington.
Attachments: Kent Myers letter to Attorney General, November 23, 2009
Proposed Enron Settlement Agreement
N \UAC \Final\Enron Settlement Distnbution Agreement doe
W A S H I N G T O N , U.S.A.
City Manager's Office
November 23, 2009
Brady R. Jolmson
Senior Counsel, Antitrust Division
Office of the Attorney General of Washington
800 Fifth Avenue #2000
Seattle, WA 98104 -3188
RE: Enron Settlement Distribution Money
Dear Mr. Johnson,
Thank you for considering the City of Port Angeles (City) in the Attorney General's
Enron energy restitution program, and we are keenly interested in assisting your office in
distributing the settlement funds through either our local low - income energy assistance
program or our low - income weatherization program. However, only our City Council
can make a decision to approve an agreement and, prior to the City Council's approval,
our Utility Advisory Committee (UAC) must first review any issucs affecting the City's
utilities.
City staff will make a recommendation to the UAC to forward a favorable
recommendation to accept the Energy Settlement Agreement at its next meeting on
December 8, 2009. If the UAC concurs with staff and does forward a favorable
recommendation, City Council will consider this matter at its next meeting on December
15, 2009. If our City Council should decide to participate, we will then be able to
provide the requested signed copy of the agreement after that meeting.
In antic ipation of City Council's appi oval, I look forward to working with the Attorney
General's office to ensure restitution is provided to our low - income residential electric
utility customers.
Sincerely,
Kent ers
City anager
cc: Glenn A Cutler, P.E., Public Works and Utilities Director
Phone: 360- 417 -4500 / Fax: 360 -417 -4509
Website: www.cifyoipa.us / Email. citymanagor@atyofpa.us
321 East Fifth Street - P.O. Box 1150 / Port Angeles, WA 98362 -0217
November 17, 2009
Bob Kaj fasz
City of Port Angeles
P O Box 1150
Port Angeles, WA 98362
RE: Enron Settlement Distribution Money
Greetings:
Thank you for agreeing to participate in the Attorney General's Enron energy restitution
program. This distribution ends a long - running matter concerning the energy crisis of 2000-
2001. With the completion of the Enron bankruptcy we are finally able to distribute funds to
residential consumers.
The settlement with Enron provides that the money must be used for the benefit of Washington
energy consumers, either directly or indirectly. Due to the impracticality of providing individual
refunds, we have decided that the funds should be used to aid each utility's low - income energy
assistance program or an equivalent program in your area. You have indicated that you are
willing to oversee the proper usage of such funds. To that end, enclosed is a contract between
the Attorney General's Office and City of Port Angeles which provides for the proper usage of
the funds per our prior contacts with you. The contract also requires that you provide a written
report demonstrating that the funds were used properly. Please sign and return the contract by
November 25, so that we can proceed with the distribution. You will not receive funds until you
have returned the contract. If we do not hear back from you by November 25, we will assume
you no longer want the funds and will direct your funds to LIPIEAP, with directions to spend
your allocation of funds in your service area.
Please contact Senior Counsel Brady Johnson if you have any questions about this procedure.
Thank you again for your help with this worthwhile project.
Sincerely,
BRADY R. JOHNSON
Senior Counsel
Antitrust Division
206 -389 -2848
BRJ;dkc
Enclosure
Rob McKenna
ATTORNEY GENERAL OF WASHINGTON
800 Fifth Avenue #2000 • Seattle WA 98104 -3188
1 C CCC1WiC
City et Pmt Angles
Public 71orI and Utilities Dept
Engmeennv Seivices Division
ENERGY SETTLEMENT CY PRES RECIPIENT AGREEMENT BETWEEN THE
STATE OF WASHINGTON AND CITY OF PORT ANGELES
The State of Washington, Antitrust Division, investigated several energy companies
concerning possible illegal activity occurring during the 2000 -2001 energy crisis. In settlement
of that investigation, energy companies agreed to pay restitution to benefit consumers and
businesses in Washington for the harm allegedly caused by the companies' conduct. Due to the
amount of money received and the number of customers who were harmed, the Attorney General
has determined that residential consumers shall receive the benefit of the settlement in the form
of a cy pres distribution. The amount to be distributed for cy pres use to benefit residential
customers is approximately $6,249,540.64.
The Attorney General's Office has allocated the residential cy pres amount to utilities
throughout the state based on their residential populations served. Based on that amount, the
allocation to City of Port Angeles is $19,505.36.
City of Port Angeles has preliminarily committed to use the funds received for low
income energy assistance and/or weatherization programs.
The state of Washington and City of Port Angeles further agree that:
I. PARTIES
This Agreement is between the Office of the Washington State Attorney General and
City of Port Angeles.
3 The settlement agreements with the energy companies permit the Attorney Genetal to determine how best
to provide restitution to individual consumers and businesses. The restitution can be provided directly, or to an
indirect manner "Cy pres" refers to an indirect method of distribution used when direct restitution is impracticable.
II. REPRESENTATIONS AND CONDITIONS AGREED TO BY RECIPIENT
A. City of Port Angeles hereby agrees that all funds received will be used to benefit
its residential customers. Funds will be used to support residential low- income
energy assistance or residential weatherization programs unless prior written
approval is obtained from the Attorney General's Office.
B. City of Port Angeles will deposit the funding in an interest bearing account. Any
interest accrued thereon is subject to the same restrictions set forth herein as bind
the principal funding.
C. City of Port Anaeles will use the funding only to fund activities not funded
previously or which, but for the receipt of money from the settlement fund, would
not be fully funded. If an activity has been previously funded, City of Port
Angeles shall not use any portion of the funding to supplant existing funding and
shall only use it to fund an expansion of activities.
D. City of Port Angeles shall disburse all the money provided to it as soon as
reasonably practical, but in no event by no later than December 31, 2010, unless
the Attorney General's Office grants an extension in writing in advance.
E. City of Port Angeles has obtained all necessary approvals required to execute this
contract.
III. CERTIFICATIONS
A. City of Port Angeles certifies that it will comply with all applicable laws, rules,
and regulations of the State, which are in effect or become effective during the
term of this Agreement.
2
B. City of Port Angeles certifies that it will comply with all applicable federal, state,
and local laws relating to nondiscrimination in employment; will not discriminate
against any individual who receives or applies for services on the basis of actual
or perceived age, race, creed, religion, color, national origin, gender, disability,
marital status, sexual orientation, alienage, or citizenship; and, will forward to the
Attorney General's Office a copy of any finding by a court or administrative
agency that it has violated any federal, state, or local law relating to
nondiscrimination.
C. City of Port Angeles certifies that it will comply with all applicable federal, state,
and local labor and employment laws and regulations, including any applicable
schedules or determinations made by the State Department of Labor and
Industries and Employment Security Department and will forward to the Attorney
General's Office a copy of any finding by a court or administrative agency that it
has violated any federal, state, or local law or regulation relating to labor or
employment.
D. City of Port Angeles certifies that any services provided pursuant to this
Agreement will be secular in nature and will be performed in a manner that does
not discriminate on the basis of religious belief, or promote or discourage
adherence to religion in general or particular religious beliefs.
E. If City of Port Angeles retains any contractor, subcontractor, consultant or other
entity to provide services funded by these monies, City of Port Angeles must
ensure that such an entity completes all certifications set forth in paragraphs III.
A - supra.
3
IV. INDEMNIFICATION
If City of Port Angeles enters into subcontracts in administering the project, City of Port
Angeles shall take full responsibility for the acts and omissions of its subcontractors.
Nothing in the subcontract shall impair the rights of the State under this Agreement. No
contractual relationship shall be deemed to exist between the subcontractor and State.
V. RECORDS AND REPORTING
A. City of Port Angeles shall establish and maintain complete and accurate books,
records, documents, accounts and other evidence directly pertinent to
performance under this contract (hereinafter, collectively, "the Records "). The
Records must be kept for the balance of the calendar year in which they were
made and for tlu•ee (3) additional years thereafter. The Attorney General, his
staff, and their agents, including but not limited to any audit or accounting firm
retained for funding oversight, and any other person or entity authorized to
conduct an examination, shall have access to the Records during normal business
hours at City of Port Angeles for the term specified above for the purposes of
inspection, auditing and copying.
B. City of Port Angeles shall provide written reports to the Office of the Washington
State Attorney General or its designated agent on a semi- annual basis, beginning
six months from the date of receipt of funding. These reports shall be sent to the
Office of the Washington State Attorney General, Antitrust Division, Suite 2000,
800 Fifth Avenue, WA 98104, Attention: Dale Eastman. Each semi -annual report
shall include: (a) all expenditures using generally accepted accounting principles;
(b) the status of the project; (c) the programs provided; (d) an explanation of how
4
the programs fulfilled the purpose of the underlying Court- approved settlement,
i.e., how the programs benefited residential energy customers in Washington
state; (e) the number of persons served or benefited; and (f) any other specific
information that the Office of the Washington State Attorney General or its agents
deem reasonable in monitoring the program.
C. The Attorney General and his designated staff have discretion to request
additional reports or information at any time during the term of the award
necessary to ensure compliance with this agreement and /or the court's order.
D. After City of Port Angeles has fully used the funds, it shall provide a final report
that describes all matters covered by the semiannual report described in paragraph
B, supra. The Attorney General or his agent has discretion to promulgate
guidelines for the format and contents of the final report.
E. City of Port Angeles will fully cooperate with requests from the Washington State
Attorney General's Office and its agents including any audit or accounting firms
or other contractors retained to assist in evaluating and/or auditing City of Port
Angeles's use of the energy distribution monies.
VI. TERMINATION
A. The parties to this Agreement acknowledge the obligation of the Washington
State Attorney General to ensure that the monies are spent in a manner consistent
with the settlement agreement between the State and the energy companies. Any
failure by City of Port Angeles to provide requested access, information or
reports, or any expenditures made from the monies that do not comply with this
Agreement, or any other violation of this Agreement, may cause the Office of the
5
Washington State Attorney General to seek removal of City of Port Angeles as an
approved recipient of fiends and to demand full reimbursement to the state of
Washington.
B. If at any time the state of Washington believes City of Port Angeles to be in
noncompliance with any provisions of this Agreement, the State shall give City of
Port Angeles thirty (30) days' written notice describing the claimed
noncompliance with sufficient specificity to enable City of Port Angeles to cease
and correct the claimed noncompliance. If City of Port Angeles does cease and
correct all claimed noncompliance within a thirty (30) day period, the state of
Washington shall take no further action.
Dated this 17th day of November, 2009
AGREED:
ROB MCKENNA
ATTORNEY GENERAL OF WASHINGTON
By:
CITY OF PORT ANGELES
By:
Printed Name:
Title:
6
BRAD R. JOHNSON
Senior Counsel
Washington State Attorney General's Office
I IORT A IGELES
W A S H I N G T O N , U.S.A.
Utility Advisory Committee Memo
Date: December 8, 2009
To: Utility Advisory Committee
From: Phil Lusk, Power Resources Manager
Subject: Clallam County Shared Resource Conservation Manager Program
Summary: The Shared Resource Conservation Manager Program is a new program created by the
Washington State Department of Commerce. The Program's purpose is to assist cities and counties
in establishing and implementing long -term energy efficiency strategies.
Recommendation: Forward a favorable recommendation to City Council to support Clallam
County's initial proposal under the Shared Resource Conservation Manager Program and to
make a preliminary commitment in an amount not to exceed $25,000 from the Conservation
Fund to help support the program.
Background /Analysis: The Shared Resource Conservation Manager (RCM) Program is
offered by the Washington State Department of Commerce and is administered by the Washington
State University (WSU) Extension Energy Program. For a limited time, they are offering a grant
of $75,000 per partnership that would provide about 40% of the required funding for an initial two
year period.
A RCM is a designated individual who supports an organization's energy and resource efficiency
program. This is done through improved practices, greater attention to utility billings and the
installation and use of resource management equipment. On behalf of eligible entities located on
the Northern Olympic Peninsula, Clallam County has indicated that it plans to submit an initial
proposal for the grant funds later this month. The proposed partnership includes the City of Port
Angeles, the City of Sequim, Olympic Medical Center, Clallam Transit, and Clallam County as the
lead agency. In the event the initial proposal is accepted by WSU, Clallam County will be
submitting a full proposal in early- January. If Clallam County is offered a grant, staff will return
to the Utility Advisory Committee requesting their recommendation to City Council to approve a
$25,000 commitment from the Conservation Fund to help support the program and an interlocal
agreement to participate in the program.
Staff requests that the Utility Advisory Committee forwards a favorable recommendation to City
Council to support Clallam County's initial proposal under the Shared Resource Conservation
Manager Program and to make a preliminary commitment in an amount not to exceed $25,000
from the Conservation Fund to help support the program.
N \UAC\Final \Clallam County Shared RCM Program doc
Date:
To:
From:
Subject:
JYORTNGELES
W A S H I N G T O N , U.S.A.
Utility Advisory Committee Memo
December 8, 2009
Utility Advisory Committee
Larry Dunbar, Deputy Director of Power Systems
Network Needs Assessment and Public Safety Considerations Update
Summary: The request for proposals for Metropolitan Area Network Services was advertised on
November 23, 2009. Staff is continuing to delay notice to proceed to Columbia
Telecommunications Corporation to prepare a design, cost estimate, business plan and grant
application for a wireless mobile data system.
Recommendation: For information only, no action requested.
Background /Analysis: On July 21, 2009, City Council authorized an amendment to the
agreement with Columbia Telecommunications Corporation (CTC) for a request for proposals
(RFP) and a grant application. The RFP was advertised on November 23, 2009 for Metropolitan
Area Network Services. The RFP advertisement was placed with the Seattle Daily Journal of
Commerce and the Northwest Public Power Association, and is on the City's website. Between
the date of the pre - proposal conference and the City Council contract award date, Vendors have
been informed that they may initiate communications only with the City project manager. Any
unauthorized communications may result in the disqualification of a Vendor's Technical Proposal
and Service Charge Proposal. The RFP procurement schedule is summarized below:
Milestone
RFP advertisement
Pre - proposal conference
Proposal deadline
Utility Advisory Committee consideration
City Council contract award
Completion Date & Status
November 23, 2009 Complete
December 2, 2009 Complete
January 21, 2010
March 2, 2010
March 9, 2009
Staff is continuing to delay notice to proceed to CTC to prepare a design, cost estimate, business
plan and grant application for a wireless mobile data system under the American Recovery and
Reinvestment Act. The initial grant opportunity targeted was later found not to be a good fit for
the project and there are currently no grant opportunities to consider. The wireless grant
application scope of work will continue to be on hold until the next worthwhile opportunity
surfaces.
N \UAC \Final\Network Needs Assessment & Public Safety Considerations Update doc