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HomeMy WebLinkAboutAgenda Packet 12/10/2002 UTILITY ADVISORY COMMITTEE COUNCIL CHAMBERS FORT ANmELES~ WA ~83~2 DECEI,4BER 10~ 2002 3:00 P.M. AGENDA I. CALL TO ORDER II. ROLL r-ALL III. ' APPROVAL r-IF MINUTES I='OR NOVE:MBER ] 2~ 21-102 APPROVAL OF MINUTES FOR NOVEMBER 2~--.~ 2002 IV, DISCUSSION ITEMS A. OLYMPIC MEDICAL CENTER CONSERVATION REBATE AGREE~MENT (~A4~ASZ) B. I-NET SERVICES AGREEMENT SCHEDULE AMENDMENT (DUNBAR) C. WPAG AGREEMENT ~OR ~00~ (MCLA~N) V. STATUS R~PORTS INSTITUTIONAL N~TWORK IMPLeMeNTATION CONSULTING S~RVIC~S (DUNBAR) ~RANCHIS~ T~ANS~R STATUS R~FORT (DUNBAR) VI. N~XT M[~TING DAT~ - JANUARY 14~ ~003 VI. ADJOURNMENT UTILITY ADVISORY COMMITTEE Port Angeles, Washington November 12, 2002 L Call to Order: Chairman Bentley called the meeting to order at 3:00 p.m. Members Present: Chairman Bentley, Councilman Campbell, Councilmember Rogers, Dean Reed, Councilmember Erickson Members Absent: None Staff Present:. Michael Quinn (3:42), Craig Knutson, GtennCutler;KenRidout; Seo~ McLain, Gary Kenworthy, Larry Dunbar, Doyle McGinley, Cate Rin. ehart Others Present: None III. Approval of Minutes: Chairman Bentley asked if there were any additions or corrections to the meeting minutes of October 8, 2002. Councilman Campbell moved to approve the minutes. Dean Reed seconded the motion. Councilmember Erickson abstained due to absence at the meeting. IV. Discussion Items: A. Design Services For Oil Handling And Warehouse Building Jim Harper, Electrical Engineering Manager, explained the need for a specific storage facility to hold transformers and oil filled equipment. Proposals were requested from six engineering/architectural consulting firms with a single response from Parametdx, Inc. The final scope of work was negotiated to not exceed $25,900. A brief discussion followed with questions regarding the possibility of a prefabricated structure. It was explained that due to the environmental sensitivity of the storage items specifications would not permit such a concept. Councilman Campbell moved to recommend City Council authorize the Mayor to sign an agreement with Parametrix, Inc. for engineering/architectural design services at a cost not to exceed $25,900 and authorize the City Manager to sign amendments to the agreement in an amount not to exceed 20¥0 of the original contract amount. Councilmember Erickson seconded the motion. Dean Reed and Allen Bentley opposed the motion. B. Replacement Of Emergency Generator For Wastewater Pump Stations Ken Ridout, Deputy Director of Operations, stated the emergency generator for wastewater pump stations was no longer working and needed to be repaired or replaced. A variety of options were 1 Utility Advisory Committee November 12, 2002 reviewed and it was determined that purchasing a new generator through the State Bid at $20,136.02 including tax was the best alternative. Using the existing trailer and other equipment would save approximately $6,000. There was a brief discussion Dean Reed moved to recommend City Council grant the Director of Public Works and Utilities the authority to purchase a new 60 kW generator from the State Bid. Couneilmember Eriekson seconded the motion, which carried unanimously. C. Status Reports Institutional Network Construction Institutional Network Implementation Consulting Services Noaction taken. Inforamtion only. V.. Late Items: D. Transmission Rate Case Settlement Scott McLain, Deputy Director for Power Systems, advised the Bonneville Power Administration Transmission Business Line (TBL) has proposed a settlement that would avoid a formal transmission rate case. The settlement includes an increase of about 2.5% over the next two year rate period beginning October 1, 2003. Mr. McLain reviewed the major elements of the settlement indicating that going through the formal rate case process would be much more expensive. A brief discussion followed. Staff was requested to explain this increase would be largely absorbed through the current budget and that it was a very small percentage of individual bills. Councilman Campbell moved to recommend City Council authorize the Director of Public Works and Utilities to sign the settlement agreement. Councilmember Rogers seconded the motion, which carried unanimously. E. Stormwater Glenn Cutler, Director of Public Works and Utilities, pointed out that even though City Council had not passed the funding method the City was continuing to address the problem with street sweeping, drain cleaning and other methods. It was noted that the stormwater manual continued to be a non-issue. A short discussion followed. No action taken. Information only. F. 2003 Public Works Trust Fund- Downtown Watermain Phase III Glenn Cutler, Director of Public Works and Utilities, conveyed that the City didn't receive the requested loan for the beautification project. Out of 107 submittals only 27 were accepted to receive the $64 million available in funding. Mr. Cutler added staff will reapply and attempt to get the criteria used. 2 UTILITY ADVISORY COMMITTEE October 12, 2002 No action taken. Information only. G. Landfill Replacement Bulldozer Glenn Cutler, Director of Public Works and Utilities, noted that the 1990 bulldozer is approaching 10,000 working hours and is in need of significant repair work. Staff has been researching the cost comparison between a new purchase of $370,000 versus a $270,000 lease over a four year period with options. A special meeting to discuss technical issues was set for November 26t~ at 4 p.m. No action taken. Information only. VI. Next Meeting: The next regular meeting will be December 10th in the Council Chambers. VI. Adjournment: The meeting adjourned at 4:35 p.m. Allen Bentley, Chairman Cate Rinehart, Administrative Assistant UTILITY ADVISORY COMMITTEE Special Meeting Port Angeles, Washington November 26, 2002 I. Call to Order: ~/ Chairman Bentley called thc meeting to order at 4:08 p.m. II. Roll Call: Members Present: Chairman Bentley, Councilman Campbell (4:10), Councilmcmbcr Rogers (4:10), Dean Reed, Councilmcmbcr Erickson Members Absent: None StaffPrescnt: Craig Knutson, Yvonne Ziomkowski, Ken Ridout, Gary Kenworthy; Larry Dunbar, Pctc Burrctt, Tom McCabc, Ken Loghry, Cate Rinehart Others Present: None III. Approval of Minutes: . Approval of minutes for November 12, 2002 referred to the regular December l0t" meeting. IV. Discussion Items: A. Replacement Of Caterpillar Track Type Tractor D-7 With Waste Handling Arrangement (WHA) For The Port Angeles Landfill Ken Ridout, Deputy Director of Operations, noted the D-7 Cat at the landfill was in need of major repairs and needed to be repaired or replaced. The equipment was purchased in 1990 and currently has 10,000 hours of use. Mr. Ridout indicated that N.C. Machinery Company of Port Angeles had perfo,rrned an analysis on the equipment to determine the current condition. The reported repair cost is $153,200. Factors used to determine purchase or lease included equipment weight, support services, type of track system and warranty. Yvorme Ziomkowski, Finance Director, examined the various options through cash flow analysis. A discussion followed. Councilmember Erickson moved to recommend City Council grant the Director of Public Works and Utilities the authority to lease a Caterpillar Track Type Tractor D-TR from N.C. Machinery company of Port Angeles in an amount not to exceed $5,700 per month. Dean Reed seconded the motion, which carried unanimously. B. Attorney Consultant Contract For Cable Television Franchise Transfer Larry Dunbar, Power Resources Manager, gave a general report pointing out that Clarence West, Counselor and Attorney at Law, had assisted the City in drafting the telecommunications and cable Utility Advisory Committee November 26, 2002 television franchise ordinances. This background will aid Mr. West in reviewing the transfer from' Northland Cable Television to Wave Division in assessing the financial, technical, and legal qualifications to fulfill the franchise. It was noted during the brief discussion that some additional information and clarifications may be required. No action taken. Information only. V. Next Meeting: The next regular meeting will be December 10th in the Council Chambers. VI. Adjournment: The meeting adjourned at 5:08 p.m. Allen Bentley, Chairman Cate Rinehart, Administrative Assistant 11/27/02 N :~P WKSkLIG H TxCON S\CATE~nov26meet .wpd 2 pORTANGELEs WASHINGTON, U.S.A. UTILITY ADVISORY GOMMITTI=I= MI~MO DATE: December 10, 2002 TO: UTILITY ADVISORY COMMITTEE FROM: Bob Kaj fasz, Commercial Energy Analyst RE: Olympic Medical Center Conservation Rebate Agreement Summary: Olympic Medical Center (OMC) is proposing an energy efficiency project with I several Energy Conservation Measures (ECMs) that qualify for a rebate through the City's Purchase of Conservation Agreement (Con-Aug) with Bonneville Power Administration (BPA). A potential rebate from BPA of $136,765 is available, if all ECMs are implemented and the ~rojected 759,805 kWh/year energy savings are verified. Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to execute an Energy Conservation Rebate Agreement with Olympic Medical Center. Background/Analysis: Olympic Medical Center (OMC) is the City of Port Angeles' third largest electric consumer, with an average annual energy use of 14,500,000 kWh. In October of 2001, OMC commissioned Siemens Building Technologies (SBT) to develop a plant and equipment renovation project to provide substantial energy savings for OMC's facility. OMC invited the City to assist with plan review and requested a rebate from the City for the project. SBT developed an Energy Conservation Measure (ECM) Project Proposal that qualifies for a rebate under the City's Purchase of Conservation Agreement with Bonneville Power Administration (BPA). City and BPA staff have reviewed the project proposal and have approved SBT's estimated energy savings of 759,805 kWh and a potential $136,765 rebate for the ECMs based upon verified energy savings. OMC is reviewing the SBT project proposal and is anticipated to proceed with implementation contingent on the availability ora rebate fi'om the City. After SBT's project completion report is approved by BPA the City will pay the rebate to OMC. The City rebate to OMC will be reimbursed to the City by BPA. Staff recommends the City provide OMC with an Energy Conservation Rebate Agreement in response to the ECM project proposal. Although Energy Conseawation Rebate Agreements are routine for staff, City Council permission is sought due to the size of the incentive. N:\UAO,ginahOMC.wpd pORTANGELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: December 10, 2002 TO: UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager RE: Institutional Network Services Agreement Amendments Summary: An amendment to the I-Net Services Agreement is needed to specify that the City's cost for local area network (LAN) services and base charges will include Washington State sales tax. Due to unforseen expenses to modernize the local area networks (LAN's) within municipal facilities an amendment to the 1-Net Services Agreement that allows use of available I-Net project contingency funding is also needed. Recommendation: Forward a favorable recommendation to the City Council to approve the proposed amendments to the Institutional Network Services Agreement and authorize the City Manager to use contingency funding for local area networks as necessary. Background/Analysis: On August 20, 2002, the City Council approved the Institutional Network fast track including the Fiber Optic Wide Area Network Use Agreement (WAN Use Agreement) with Northland Cable Television, Inc. (Northland) and the 1-Net Services Agreement with Capacity Provisioning, Inc. (C.P.I.). On October 15, 2002, the City Council authorized the City Manager to execute contract changes related to contingencies and associated completion schedules under the I-Net Services Agreement and WAN Use Agreement up to the contingency amounts previously approved. Northland and C.P.I. have performed in good faith, have made major progress, and construction of Northland's fiber link and nodes was complete and tested on December 4, 2002. C.P.I.'s last mile fiber optics and network equipment are anticipated to be complete, tested and services should be available to the City, businesses and institutions by January 13, 2003. C.P.I. is anticipated to complete the LAN services for the City no later than January 31, 2003. Sales Tax Amendment: CPI and the City recently discovered that the I-Net Services Agreement did not specify that Washington State sales tax was included in the City's base semite and LAN service charges. CPI has demonstrated that their charges did not include sales tax and staff recommends that the Agreement be amended to include sales tax which will increase the City's non-recurring charges by a maximum of $34,768.00. A table is presented on the following page for more information. Institutional Network Services Agreement Schedule Amendment Page 2 December 10, 2002 Contingency Amendment: The I-Net Services Agreement includes up to $60,000 for materials, hardware and installation services to integrate LAN's within City facilities to the I-Net. There was no contingency made available for LAN's under the Agreement. Although current City infi'astmcture is reasonably protected, due to homeland security concems and protection fi.om internal, external and Internet access threats, several improvements should be implemented as part of connecting the City's LAN's to the I-Net which will also be connected to other businesses and institutions. Data security consultants including Moss Bay Group and others have reviewed the City's information systems, LAN's and future I-Net infi.astructure and have provided related recommendations, some of which reduce network operation and maintenance demands, including: hardware/software upgrades, switch security software, and increased site LAN security. The City Council approved contingency budgets for the I-Net project under the Cable Television Franchise Ordinance No. 3116 (Franchise) in the amount of $40,265.00, the WAN Use Agreement in the amount of $30,000.00, and the 1-Net Services Agreement in the amount of $31,000.00 for a total project contingency in the amount of $101,265.00. Staff recommends that the combined contingencies are available for necessary expenses during the remainder of the I- Net project. As of this report date, only $34,741.13 of the total contingency has been expended/encumbered which should provide adequate .funds for the heightened LAN security and remaining work to be performed to construct the I-Net without increasing the budget. Below are tables that summarize the proposed sales tax and contingency amendments. Current Project Budget Summary I-Net Agreements Budget Contingency Total Budget Cable Television Franchise $364,735.00 $70,265.00 $435,000.00 & WAN Use Agreement I-Net Services Agreement $393,000.00 $31,000.00 $424,000.00 Totals $757,735.00 $101,265.00 $859,000.00 Proposed Sales Tax and Contingency Amendment I-Net Agreements Budget Contingency Total Budget Cable Television Franchise $364,735.00 $31,265.00 $435,000.00 & WAN Use Agreement I-Net Services Agreement $427,768.00 $70,000.00 $424,000.00 Totals $792,503.00 $101,265.00 $893,768.00 Increase $34,768.00 $0.00 $34,768.00 pORTANGELES VV A $ H ] N 13 T O N, U. $. A. UTILITY ADVISORY COMMITTEE MEMO DATE: December 10, 2002 TO: UTILITY ADVISORY COMMITTEE F~OM: Scott McLain, Deputy Director of Power Systems SUBJECT: Western Public Agencies Group (WPAG) agreements for 2003 Summary: The City has been a member of the Western Public Agencies Group for several years. It is comprised of 21 Washington public utilities with similar interests. Each year thc group contracts with two consultants and develops a scope of work for issues expected during the year. This year's total contract amount is estimated to bc $220,000, of which thc City's share will be less than $13,000. Recommendation: Recommend Council authorize the Director of Public Works and Utilities to sign agreements with Marsh Mnndorf Pratt and Sullivan, and EES Consulting for WPAG services during the year 2003 for an amount not to exceed $13,000. Background / Analysis: The City of Port Angeles, along with 20 other public utilities in Washington, are members of the Western Public Agencies Group. This group was formed in 1980 to share costs in contracting with experts in the regional power field. The law firm of Marsh Mundorf Pratt and Sullivan, and EES Consulting are the two primary consultants to WPAG. Each year, the members of WPAG es[ablish a budget based on expected regional issues for the ~ year. Allocations of the total budget are divided among the participating utilities based on number of customers, kWh sales, and utility investment. The City's share of a total WPAG budget of $220,000 is $12,019 or 5.5%. This expense was included in the City's 2002 budget in the amount of $13,000. The budget in the prior year was about $220,000 with the City's share about $12,000. The City's share has changed somewhat fi.om 2002 because of changes to various utilities customer counts and kWh sales. As this budget is an estimated amount, and not all utilities participate in the entire scope of work, it is requested that the City enter into the agreements with a cap of $13,000. Attached is the scope of work for the 2003 calendar year with Marsh MundorfPratt and Sullivan, and EES Consulting. The agreements are being reviewed by the City Attorney. Attachments: WPAG scope of services and budget N:\UACWinal\wpag2003.wpd EXHIBIT A Western Public Agencies Group 2003 Scope of Services and Budget The Western Public Agencies Group (WPAG) comprises 21 publicly owned utilities in the state of Washington: Benton REA, Clallam County P.U.D. No. l, Clark Public Utilities, the City of Cheney, the City of Ellensburg, Kittitas County P.U.D. No. 1, Lewis County P.U.D. No. 1, Mason County P.U.D. No. l, Mason County P.U.D. No. 3, Pacific County P.U.D. No. 2, Peninsula Light Company, the City of Port Angeles, Snohomish County P.U.D. No. 1, and members of the Pierce County Cooperative Power Association, which includes Alder Mutual Light Company, the Town of Eatonville, Elmhurst Mutual Power and Light Company, Lakeview Light and Power Company, the City of Milton, Ohop Mutual Light Company, Parkland Light and Water Company, and the Town of Steilacoom. ' Together the WPAG member utilities serve more than one million customers and purchase more than 12 billion kilowatt-hours from the Bonneville Power Administration ("Bonneville") each year. WPAG member utilities also own or receive output from mere than 500 megawatts of non- Bonneville generation and purchase more than 400 megawatts of power from sources other than Bouneville. WPAG members are winter-peaking utilities with lower annual load factors. WPAG members~ similar characteristics have caused them to join together to represent their interests before Bonneville, and in other forums in the Pacific Northwest and the United States since 1980. WPAG has intervened as a group in every major Bonneville rote proceeding since enactment of the Pacific Northwest Electric Power Planning and Conservation Act of 1980. WPAG's interests have also been represented in Congress, before the Northwest Power Planning Council, and in other regional forums. The scope of services presented here includes areas that various other organizations, of which WPAG members might also be members, cannot advocate for WPAG members due to conflicts of interest within those organizations. WPAG thus fills a need that is unmet by membership in the Public Power Council, the Northwest Public Power Association, the Pacific Northwest Utilities Conference Committee and other similar groups. A-1 EXIHBIT, A Scope of Services The 2003 scope of' services for WPAG is proposed as follows: · General WPAG Activities and Meetings During 2002, EES Consulting and MMPS&M will monitor and comment on regional and federal activities of general interest to include BPA-ralated legislation, RTO/SMD progress, and any other new topic of mutual interest and relevance. Monthly meetings'will be held to brief WPAG members on these activities. · BPA Power Business Line Rates BPA continues to have periodic CRAC adjustments which will be followed closely. Of particular note is the upcoming SN CRAC proceeding. If BPA goes forward with proposing an SN.CRAC, it is expected to be vigorously opposed given actions taken bY BPA in 2002. Given the potential implications for the remainder of the current BPA wholesale power rate period, we will actively participate in these rate proceedings on behalf of WPAG. · BPA will be facing continuing challenges regarding their financial condition and need to raise rates. There will be a continuing need to pressure BPA in all arenas to cut costs as an alternative to raising rates. · BPA Transmission Business Line Rates If a settlement is not reached in 2002 on the extension of BPA's current transmission rates, continued involvement on the part of WPAG will be necessary. This involvement could take the form of continued settlement discussions or a full transmission rate hearing. · RTO West With recent approvals from FERC, the RTO West proposal continues on. A significant aspect of the activities taking place in 2003 will be the cataloguing of transmission contract rights and the inclusion of transmission facilities in the RTO West system. Both of these issues could have significant implications for members of WPAG. We will actively participate in these efforts on behalf of WPAG. · Standard Market Design Although having almost no support in the Northwest, FERC appears intent on providing new regulations that will change market design in the region and across the nation. These new regulations could have significant implications on the region, BPA and the future of power supply to WPAG utilities. EES Consulting and MMPS&M will monitor these activities, and intervene where appropriate, on behalf of WPAG's specific interests. A-2 EXHIBIT A · Regional Benefits/BPA Future Role Settlement discussions regarding the allocation of BPA's resources are shffiing fi'om bilateral to a multi lateral BPA public process that will likely culminate this year, and may result in new power sales contracts being negotiated in late 2003. Having principal negotiators involved in this process, continued WPAG participation will be important to ensure a successful conclusion to these efforts. · Olympia Legislative Session The 2003 legislative session is not expected to deal with WPAG-related 'activities in any major fashion such as industry restructuring or deregulation, but may touch on other utility issues such as taxation, financial/rate information sharing, telecommunication issues, etc. EES Consulting and MMPS&M will monitor these activities on behalf of WPAG's specific interests. · Litigation Depending on the outcome of the above noted Settlement, a challenge to the Subscription ROD may commence. In addition, it may be necessary to pursue litigation on the implementation of the SN CRAC. If pursued, additional funding above and beyond this proposed budget may be needed. Budget The budget for the scope of services described above is calculated at the following billing rates for EES Consulting and MM_PS&M: EE$ Consulting President .................................................................................. $130 per hour Vice President/Managing Director ............................................ 120 per hour Project Manager ........................................................................ 110 per hour Analyst or Engineer ................................................................... 100 per hour Clerical ................................................................................ 60 - 80 per hour MMPS&M Principal .................................................................................. $135 per hour Associate ................................................................................... 110 per hour These billing rates will remain in effect through December 31, 2003. A-3 EXHIBIT A On the basis of the above billing rates, the 2003 labor budgets of EES Consulting and MMPS&M combined are estimated to be $200,000. This labor budget will be split equally between'EES Consulting and MMPS&M. In addition to labor costs, out-of-pocket expenses will be billed to WPAG members at their cost to EES Consulting and MMPS&M. It is estimated that $20,000 in total out-of-pocket expenses will be incurred for all work elements in total. Out-of-pocket costs will be billed by whichever organization actually incurs the expense. The total estimated WPAG budget for 2003 is estimated at $220,000. As always, the allocation of the budget among WPAG members is open to negotiation by the participants. We have attached an inter-utility allocation predicated on the most recent available utility data, assuming a 15 percent maximum allocation to any one utility. After a final count of WPAG participants, a final budget by utility will be prepared. An example of the budget's allocation is attached at the end of this narrative. prOject Staffing The staffing for this project will be similar to that for past WPAG activities. Gary Saleba and Ten'y Mundo~ will be the principal representatives for EES Consulting and M~,~S&M, respective!y. Additional MJv~$&M and EES Consulting stM't'will assist as needed. A-4 WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: December 10, 2002 TO: UT1LITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager " RE: Institutional Network Implementation Consulting Services - Monthly Status Report Summary: This is an informational repOrt on Metropolitan Communications Consultants activities during the month of November 2002. The advisory services include support with the I- Net fast-track and during construction of the I-Net backbone. Recommendation: Information only, no action required. I-Net Fast-TraCk Advisor ~ Services ($20,000 authorized time & materials budget) Task August Activity Prior Current Total Final site plan, customer Project Management premise equipment & edge Support gear review $8,037.50 $8,037.50 Agreement Development $5,000.00 $5,000.00 Service Agreement Negotiation $5,000.00 $5,000.00 Expenses $83.58 $83.58 I-Net Backbone Construction Advisory Services ($25,000 authorized lump sum bud ;et) Task August Activity Prior Current Total Project Management Support and representation Support on technical matters $5,950.00 $2,550.00 $8,500.00 Plans & Specifications Fiber material substitution Review $2,000.00 $2,000.00 Construction Phase Contract changes (AKA Engineering change orders) $1,000.00 $500.00 $1,500.00 Final Inspection & Testing observation Acceptance $ 1,000 $1,000 Total Budget $45,000.00 Totals $22,361.08 $4,050.00 $31,121.08 pORTANGELES WASHINGTON U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: December 10, 2002 TO: UTILITY ADVISORY COMMITTEE FROM: Ken Ridout, Deputy Director of Operations SUBJECT: D-7R Equipment Lease from N.C. Machinery Company Summary: The City Council approved the lease in an amount not to exceed $5,700 per month. The Public Works and Utilities Department inadvertently failed to include tax on the lease amount and the price has increased by $460 per month. However, if the payment is made annually, in advance, the cost will be $5748.63 per month or $68,983.54 annually. Recommendation: City Council grant the additional funds necessary to pay the annual lease amount of the Caterpillar Track Type Tractor D-7R from N.C. Machinery Company of Port kngeles. The total lease cost not to exceed $6,000 per month. Background / Analysis: On November 26, 2002 the Public Works and Utilities Department made a presentation to the UAC on the replacement of Caterpillar Track Type Tractor D-7 with Waste Handling Arrangement (WHA) for the Port Angeles Landfill. The UAC recommended that the lease be approved by the City Council at their meeting of December 2, 2002. The City Council approved the lease in an amount not to exceed $5,700 per month. Our memo included the statement that "All Prices Included Tax". Upon further review and discussions with N.C. Machinery Co. we find that tax was not included and the addition of tax would exceed the amount approved. The Public Works and Utilities Department made a minor adjustment to the Waste Handling Arrangement and reduced the cost slightly, however we are still over the approved amount and would request that the UAC recommend the City Council approve the increase to include tax. N:\U AC~DepDir~D7LANDFILLUAC 121002.wpd