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HomeMy WebLinkAboutAgenda Packet 08/09/2011CityCouncilSpecialMeeting/UtilityAdvisoryCommittee JackPittisConferenceRoom PortAngeles, WA98362 July12, 2011 3:00p.m. I. CallToOrder ChairmanDanDiGuihocalledthemeetingtoorderat3:00p.m. II. RollCall UACAssigned Councilmembers Present: DanDiGuilio, CherieKidd, BrookeNelson OtherCouncilmembers Present: MaxMania OtherCouncilmembers Absent: DonPerry, BradCollins, PatrickDownie UtilityAdvisory CommitteeMembers Present: UtilityAdvisory CommitteeMembers Absent: StaffPresent: IV. LateItems: DeanReed, PaulElliott (3:05) None KentMyers (3:15), GlennCutler, BillBloor, LarryDunbar, Mike Puntenney, PhilLusk, EricWheatley, ErnieKlimek, Dennis McBride, SondyaWray, NathanWest, RickHostetler, Kathryn Neal, HelenFreilich, YvonneZiomkowski, andNathanWest 3:23). OthersPresent: TamiRamsey, andPeterLyon III. ApprovalOfMinutes ChairmanDanDiGuilioaskediftherewereanycorrectionstotheminutesofJune14, 2011 CommitteeMemberDeanReedmovedtoapprovetheminutes. CherieKiddsecondedthe motion, whichcarriedunanimously. Removefrommeeting: InformationOnlyItem: A. NipponUtilityPoleTransfer. Additionstomeeting: J. DoorHangersandUtilityLateFee's K. CommercialandIndustrialDemandResponsePilotProject 1 V. DiscussionItems: A. EquipmentPurchase: Hydro- Excavating Vacuum Truck Glenn Cutler, P.E., DirectorofPublicWorks Utilities, explainedtheeffectivenessandthe necessity ofpurchasingahydro- excavating vacuumtruckforwatermainmaintenance and repairs. The2011budgetamountisnotsufficient topayfortheconfigured truck. Alengthy discussion followed. DeanReed movedtorecommendCityCouncil to: 1) Amend the2011budget toprocure a hydro- excavating vacuumtruckbyadding $70,000fromtheequipment reservefund; and, 2) authorizetheCityManagertopurchaseaHEVtruck utilizingtheWashington State Contract fromOwenEquipment, Inc, foranamountnottoexceed $370,000, including applicabletaxesandlicensing. BrookeNelsonsecondedthemotion, whichcarried unanimously. B. Moderate -RiskWaste FacilityFunding Update HelenFreilich, WasteReduction Specialist, introducedTamiRamsey, WashingtonState Department ofEcologyRegional CPGGrantsManager, andPeterLyon, W2RProgram, RegionalManager. TheDOERepresentatives explainedtheModerate -RiskWaste Facility funding updateandansweredquestions onthegrant. Forinformationonly, noactionrequested. C. LandfillBluffStabilizing Evaluation KathrynNeal, P.E., CivilEngineeringManager, reviewed arecentvisittothemarinebluffseast ofthelandfillrevetment wall. APowerPoint slidewaspresentedtoshowproblematic erosion andcurrent/futureissues. Adiscussionfollowed. Forinformationonly, noaction requested. D. CombinedSewerOverflowProfessional ServicesAgreement Amendment No. 11 KathrynNeal, P.E., CivilEngineeringManager, explained anadditional permitthatisrequiredto befulfilledpriortotheCitysoliciting forbidsonthecombinedseweroverflow project. She reviewedtheproposedamendment. Therewasabriefdiscussion. PaulElliotmovedtorecommend CityCounciltoapproveandauthorizeCityManager to signAmendment No. 11totheConsultant Agreement withBrownandCaldwell, inan amountnottoexceed $224,500, whichincreasesthemaximumcompensation under the agreementfrom $3,968,915to $4,193,415, andtomakeminormodificationstothe agreement, ifnecessary. DeanReedsecondedthemotion, whichcarried unanimously. 2 E. DryCreekSpecialServices AgreementNo. 2 GlennCutler, P.E., DirectorofPublicWorks Utilities, explained detailsonthespecialservice agreement #2between theCityofPortAngelesandDryCreekAssociation. Alengthydiscussion followed. Brooke Nelsonmoved torecommend CityCouncil toapproveandauthorizeCityManager tosignSpecialService AgreementNo. 2withtheDryCreekWater Associationandmake minor modifications totheagreement, ifnecessary. CherieKiddwithdrew fromthe meetingduringthediscussion andvoteonthismatter. PaulElliotsecondedthemotion, whichcarriedunanimously. F. BonnevillePower AdministrationResidentialExchange ProgramLitigation LarryDunbar, DeputyDirectorofPowerSystemswentovertheconsiderationsofdefendingthe Western PublicAgencies Groupclaimsrelated totheBonneville PowerAdministration Residential Exchange Program. Therewasanextensive discussion. DeanReedmovedtorecommend CityCouncil toproceed withdefendingitspending claimsrelatedtotheBonneville PowerAdministration Residential Exchange Program throughitsmembership withtheWestern PublicAgenciesGroup. BrookeNelsonseconded themotion, whichcarried unanimously. G. DeficitCommissionProposal toRaiseRatesonElectricity LarryDunbar, Deputy DirectorofPowerSystemsaskedforguidanceonwhethertheCityofPort Angelesshould joinanefforttoinfluence congress nottosupporttheDeficitCommission proposaltoraiseratesonelectricity. Adiscussionfollowed. TheUACprovidedguidance tostafftoproceedtoCityCouncil. H. ElectricUtilityTier2PowerSupplyStrategy andKeyPerformance Objectives LarryDunbar, Deputy Director ofPowerSystems remindedCityCouncil andUtility Advisory Committeemembers thatattendedtheNorthwestPublicPowerAssociationTier2PowerSupply WorkshopthatstaffwantstoconfirmthattheTier2powersupply strategy andkeyperformance objectivesareconsistentwiththedirection providedduringtheworkshop. TheUACconcurredthatthedocuments wereconsistentwithpriordirection. I. OverheadandUnderground UtilityPoliciesandGuidelines LarryDunbar, Deputy DirectorofPowerSystemssharedinformation onCityCounciladopted policiesonnewoverheadandundergroundutilityfacilities. Alongdiscussion followed. TheUACsupportedstaff'sinterpretations oftheComprehensivePlanand Telecommunications Ordinance concerningguidelines foroverhead andunderground construction fornewtelecommunications facilities. 3 J. DoorHangers andUtilityLateFee's YvonneZiomkowski, Finance Director, andRickHostetler, Customer ServicesManager, reviewed theprocessneededtobeabletomakechanges tothe $25.00utility latefeefordoor hangers. Thisprocess isforcustomersthataredelinquent withtheirutilitybills. Thedoor hangers arethelaststepbeforeshuttingofwaterandpower services. Abriefdiscussion followed. TheUtilityAdvisory Committeeprovidedguidance tostafftocontinuewithdoorhanger services andreview theneedforcontinuation ofdoorhangers aftertheAdvanced Metering Infrastructure projectiscompleted. K. Commercial andIndustrialDemandResponse PilotProject PhilLusk, Power Resources Manager, discussedthesponsorshipbetweentheBonneville Power Administration's, andGlobalEnergyPartnerswiththeCommercial andIndustrialDemand ResponsePilotProject. TheyhaveofferedtheCityParticipation Agreementstoincludespecific demand response equipmentatCityHallandtheWaterTreatment Plant. BrookeNelsonmoved torecommend CityCouncilauthorizetheCityManager tosignthe Participation Agreement withGlobalEnergyPartners fortheWaterTreatmentPlantand CityHallprojectsinanamount nottoexceed $30,000, andtomakeminor modificationsto theAgreements, ifnecessary. PaulElliotsecondedthemotion, whichcarried unanimously. Information OnlyItems: A. NipponUtilityPoleTransfer (Verbalreportonly) Removed fromAgenda. B. Industrial Transmission Electric RateOrdinance (Verbal reportonly) Informationonly. Noaction taken. C. Advance MeteringInfrastructure SystemUpdate (Verbalreportonly) Informationonly. Noactiontaken. D. PugetSound Clean CitiesCoalitionElectricVehicleInfrastructure Grant Update (Verbal reportonly) Informationonly. Noactiontaken. E. DemandResponse Presentation (Verbalreportonly) Removed fromagenda, willdiscusssubjectonalaterdate. VIII. Executive Session 4 PotentialLitigation: RCW42.30.110(1)(i) StartTime: 5:00 EndTime: 5:30 IX. NextMeetingDates: August09, 2011 August30, 2011 X. Adjournment: 5:30p.m. DanDiGuilio, Mayor JanessaHurd, CityClerk DanDiGuilio, ChairUtilityAdvisory SondyaWray, Administrative Specialist Committee 5 P WASHINGTON U.S.A. UtilityAdvisory Committee Memo Date: August9, 2011 To: UtilityAdvisory Committee From: LarryDunbar, DeputyDirectorofPowerSystems Subject: Bonneville PowerAdministration NoticeforTier2PowerSupply Summary: TheCityisrequired tomakeitssecond commitment totheBonnevillePower Administration foritsTier2powersupplybySeptember30, 2011. Theattached Tier2Power Supply StrategyincludestheTier2Short-TermRatefortheperiodofOctober 2014through September 2019for100% oftheCity'saboveHighWaterMarkloadsgreater than1average megawatt. Recommendation: Forwardafavorable recommendation toCityCounciltoauthorizethe DirectorofPublic WorksandUtilitiestonotifytheBonneville PowerAdministration in accordance withSection2.4.1.1ofExhibitCofthePowerSalesAgreementthattheCity selectstheTier2Short -TermRateAlternative fortheperiodofOctober 2014through September2019for100% ofitsaboveHighWaterMarkloadgreaterthan1average megawatt. Background /Analysis: OnJune7 -8, 2011, theNorthwest PublicPowerAssociationTier2 PowerSupplyPlanning WorkshopwasheldforCityCouncil andUtilityAdvisoryCommittee members. Aspartoftheworkshop, aTier2powersupply strategywaspresented andconsidered. OnJune14, 2011, theUtilityAdvisory CommitteereceivedanupdatedTier2powersupply strategybased onsuggestions thatwerereceived attheworkshop. OnJuly12, 2011, theUtility Advisory Committee confirmed thattheTier2powersupplystrategywasconsistentwiththe directionprovided attheworkshop. Staffrecommends thattheUtilityAdvisory Committee forward afavorablerecommendation to CityCounciltoauthorize theDirector ofPublicWorksandUtilities tonotifytheBonneville Power Administration inaccordance withSection 2.4.1.1ofExhibitCofthePowerSalesAgreement that theCityselects theTier2Short-Termratealternative fortheperiodofOctober2014through September 2019for100% ofitsabove HighWaterMarkloadgreaterthan1average megawatt. Atachment: Tier2Power SupplyStrategy N. \UAC\Frnal\BPATier2PowerSupply.doc ElectricUtilityTier2PowerSupplyStrategy PolicymakerConsensus June8, 2011 1. ContinuerelianceonBPApowersupply forfuture Tier2needs (notlandfill gas, cogeneration, marketpurchases, etc.). 2. Maintain selection ofBPAshort-termratealternativeandnotifyBPAbySeptember30, 2011 (forOctober2014- September 2019deliveries). 3. Consideradoptionofanordinanceforincremental loadsin2011 (useanameotherthan newlargesingleloads" toavoidconfusion withBPAterminology). 4. Annually reviewenergysalesgrowthcompared toBPAandCityfundedconservation program activities, performance targets, andfundingsources toensure avoidance ofTier2 powersupplyneeds. CompleteBPArequired ConservationPlanin2012. 5. Complete demand responseinstallations in2011, evaluate thecostandbenefitsofdemand responsein2012, andifappropriate considerexpandingdemand responseeffortsin2013. 6. Revisit ElectricUtilitystrategic planninginJuneof2014andtheCity'sTier2powersupplyin Juneof2016 (forOctober2019September 2024Power Supply) P WASHINGTON U.S.A. UtilityAdvisoryCommitteeMemo Date: August9, 2011 To: UtilityAdvisoryCommittee From: PhilLusk, PowerResourcesManager Subject: BonnevillePowerAdministration WholesalePowerRateAdjustments Summary: TheBonnevillePowerAdministration releaseditsfinalrecordofdecisionon wholesalepowerratesunderthenewTieredRateMethodology. Staffisworkingonanestimateof theretailrateimpacts, whichwewillstrivetocompleteandhaveavailableattoday'smeeting. Recommendation: Forinformationonly, noactionrequested. Background /Analysis: OnJuly26, 2011, theBonneville PowerAdministration (BPA) releasedits finalrecordofdecisiononwholesalepowerratesunderthenewTieredRateMethodology (TRM). TheTRMestablishedanew "takeordon'ttakebutpay" monthlyfixedcharge, newloadshaping chargesandcredits, andanewapproachtochargesforpeaksystemdemand. Atthetimeof preparingthememostaffwasworkingonanestimateoftheretailrateimpacts, whichwewill strivetocompleteandhaveavailableattoday'smeeting. TheBPAwillimplementitsnewTRMonOctober1, 2011, whichwillremainineffectthrough September 2013. BPAhasalsosharedthattherewillnotbeanyCostRecoveryAdjustment Clause (CRAC) infiscalyear2012, andatthistimethereisalowprobabilityofaCRACin2013 thatcouldfurtheradjustwholesalerates. TheBPAwholesalecostincreasemainlycovers improvementstothefederalbasedsystem, operationofhydroelectricgenerationfacilitiesin accordancewithnewenvironmentalrequirements, andincreasedfuelcostsattheColumbia GeneratingStation. StaffwillbeprovidingapresentationattheAugust30, 2011CityCouncilmeetingtoreceive directiononhowincreasedcostsshouldbeappliedtomonthlyretailbasechargesand/orenergy rates. StaffwillalsoreturntotheUtilityAdvisoryCommittee atitsSeptember13, 2011meeting topresenttheElectricUtilityratestudy, whichwillincludetheimpactofthenewTRMaswellas anyadditionalretailrateimpactsduetoothercostincreases. N• \UAC \Final\BPAWholesalePowerRateAdjustmentdoc August 9, 2011 UtilityAdvisory Committee Bonneville PowerAdministration Final Wholesale Power Rates PhilLusk, PowerResources Manager DR GranA9Regrtunity BPAOverview (Shannon Greene) Whatisdemand? Howaredemandchargeschanging? Howareenergycharges changing? How doBPA'sinitial /finalratescompare? HowwillthataffecttheElectric Utility? 2 8/9/2011 1 BPAOverview WhymovetoTieredRates? Marginalcostsincreasingforloadgrowth Maincostdrivers Improvementstofederal -basedsystem Fishrulings ColumbiaGeneratingStationfuelsupply Alignpricesignalstomanageenergyand demand Conservation anddemandresponse PortAngelesFtBPApilotprograms http: /www.voutube.com /watch ?v= vevIMOF2w4 Whatisdemand? Demand (measuredinkW) isthehighestrateofenergy consumptionwithinatimeinterval (City15minutes, BPA60 minutes) duringpeakhourswithinamonthlymeterreading period Peakhoursarefrom6:00:00am- 9:59:59pm, Mondaythrough Saturday, excludingNERCHolidays CurrentBPAwholesaledemandratesarefrom $1.32/kWto 2.30 /kW, dependingonmonth CurrentCityretaildemandratesarefrom $3.35/kWto 4.15/kW, dependingonrateclass Demandchargesinplacetorecoverfixedcosts (e.g., transformers, conductors, substations, etc.) 4 8/9/2011 2 CurrentBPAPeakHours, Off -PeakHours, and Demand24 -HourTimeclock LowestCdst OH -PeakHours OnlyEnergylMetered HighestCost PeakHours Energy °emendMetered LowestCost OH•PeakH0ur0 OnlyEnergyMetered 500 450 400 350 E 300 CC6 250 0. 200 150 100 050 000 SundaysNERCHolidays WhatisDemand? MondayThroughSaturday Cr) MODgoil 1=5;: 11,J0l"1III= I`•rC ['i'lIlo 1 2 3 4 5 67 8 9101112131415161718192021222324 TimeofDay 8/9/2011 3 How DilaliiiihtdQ a Xging? CurrentlytheCity'sdemandcoincidentwithBPA's systempeakdemandduringpeakhoursisusedto chargetheCity CurrentlyeachkWofdemandissubjecttocharge UndertheTRMdemandwillbetheCity'speak demandduringpeakhours, andtheCitywillbe providedamonthlyquantityofdemandatnocharge NewTier1wholesaledemandrateaverages 9.62 /kW, butvaryfromalowof $8.50 (May) toas muchas $10.75 (August) HowwillthataffecttheElectricUtility? BPAinitialrateproposal (December14. 2010) 16.8% effectiverateimpactonCityelectricutility powersupplycosts (estimated) 2.883millionwholesalepowercostincrease estimate 8 7 8/9/2011 4 HowwillthataffecttheElectricUtility? BPAfinalrateproposal (July26. 2011) 14.0% effectiverateimpactonCityelectricutility powersupplycosts (estimated) 2.620millionwholesalepowercostincrease estimate What'sNext? 9 August30th GuidancerequestedfromCityCouncilonallocation ofincreasedratestobaseorconsumption charges September13th StaffpresentsratestudytoUAC 8/9/2011 5 0) OkanoganCountyPUD41 VigilanteElecCoop MissionValley TannerElecCoop NorthernWascoCountyMD LostRiverEtonCoop HoodRiverElecCoop RaftRiverElecCoop BonnetsFerry. Cityof ClarkCountyPUD41 KlttitasCountyPUD41 LaneCountyElecCoop TacomaPublicUtilities FranklinCountyKID41 CentralElectricCoop CowlitzCountyPUD41 ClatskaniePUD ElmhurstMutualPL LakeviewLP (WA) SalemElecCoop ChewelahCityof MiltonFreesvater, Cityof SpringfieldUtilityBoard Canby, Cityof SodaSprings, Cityof Rupert, Cityof WestOregonElecCoop MlnidokaCityof ClallamCountyPUDd1 Cheney, Cityof AshlandCityof U5NavalSubmarineBaseBangor LincolnElecCoop (M1) FerryCountyPUD41 GrantCountyPUD42 CascadeLocks, Cityof OregonTrailCoop Monmouth, Cityof RavaliiCountyElerCoop ConsumersPower OhopMutualLightCompany ColumbiaBashiElecCoop Eatonville, Cityof USDOEAlbanyResearchCenter TillamookPUD41 Albion, Cityof IdahoCountyLP RiversideElecCoop DouglasElectricCooperative EnergyNorthwest Drain, Cityof PortAngelesCityof U5AirforceBase, Fairchild PortofSeattle- SETACinNAirport MissoulaElecCoop CouleeDam, Cityof BlacklyLaneVetCoop YakamaPower UmpquaIndianUtilityCooperative HarneyElecCoop MasonCountyPUD91 LowerValleyEnergy Plummer, Cityof WascoElecCoop Burley. Cityof AsotinCountyKID41 WASHINGTON U.S.A. UtilityAdvisoryCommitteeMemo Date: August9, 2011 To: UtilityAdvisoryCommittee From: LarryDunbar, DeputyDirectorofPowerSystems Subject: IndustrialTransmissionElectricRateOrdinanceAmendments Summary: TheBonnevillePowerAdministrationTieredRateMethodologygoesintoeffect October1, 2011. Staffeffortstonegotiateapowersalesagreement withtheCity'sIndustrial Transmission customerwerenotsuccessfulandamendmentstotheIndustrialTransmissionrate ordinancewillbepresentedattoday'smeeting. Recommendation: ForwardafavorablerecommendationtoCityCounciltoproceedwitha publichearingontheproposedIndustrialTransmissionelectricrateordinanceamendments Background /Analysis: OnJuly12, 2011, staffinformedtheUtilityAdvisoryCommittee thateffortstonegotiateapowersalesagreement withtheCity'sIndustrialTransmission customer werenotsuccessful, andthatamendments totheIndustrialTransmissionrateordinancewouldbe proposedattoday'smeeting. Following apresentation, staffwillseektherecommendation oftheUtilityAdvisoryCommittee to CityCounciltoproceedwithapublichearingontheproposedordinanceamendments. Atthetime ofpreparingthememoseveralquantitieswerenotavailableandleftblankintheproposed ordinanceamendments. Staffwilldetermineallofthemissingquantitiesandenterthemintothe proposedordinancepriortotheCityCouncilpublichearing. TheproposedCityCouncilpublichearingisSeptember6, 2011forapresentationoftherate ordinanceamendmentsandtoallowpublicinputtotheprocessafterthepresentation. Thepublic hearingwouldbecontinuedtoSeptember20, 2011atwhichtimethepublichearingwillbeclosed. TheproposedordinanceamendmentsneedtobeadoptedbyCityCouncilpriortoOctober1, 2011 whentheBonnevillePowerAdministration'snewTieredRateMethodology goesintoeffect. StaffwillreturntotheUtilityAdvisoryCommitteeonSeptember13, 2011requestinga recommendation toCityCounciltoadopttheproposedordinanceamendments. Theproposedrate ordinanceamendmentswouldbeeffectiveonOctober1, 2011. Atachment: DraftIndustrialTransmissionElectricRateOrdinanceAmendments N: \UAC\Final\ITElectricRateOrdinanceAmendment.doc LegallDept.Draft 0804_11 ANORDINANCEoftheCityofPortAngeles, Washington, revising Chapter13.12ofthePortAngelesMunicipalCoderelating toScheduleIT-11 Industrialtransmission THECITYCOUNCIL OFTHECITYOFPORTANGELES DOHEREBY ORDAINASFOLLOWS: Section1. Section 13.12.071 ofthe PortAngeles Municipal Code, establishingtherateforIndustrialTransmission customers, andOrdinance2173, as amended, areherebyamendedtoreadasfollows: 13.12.071 Schedule-IT03 Industrial-Tans zion. A.Abblicability. This-schedule-applies-to-allaccounts-where-power--is 111•1 e ge B. Character-of-Services. Servicetobcfurnished-under-thisGGhed-ule-is e-phase-sixty-cyo!c, alternatrng-cur-rent-at-trans-rnission voltage, 69KVnominal, C. Point-of-Delivery. Sarvice-under-this-scheduleshall-be-providedand measured-where-thecustomer'sfacilities-interconnect-wrth-thiefacilitiesof theCityandthe-Bonneville-P-ower-Administration, C. Service—Policy. Sorviceunderthisscheduleissubject—to—the CustomerServicePoliciesoftheCity. E. Rate:,-The-rate-shall-be-thetotal-ofthe-following: 1. MonthlyBasic-Charge, TheBose-Chargosshallbeestablished annually-as-part-of-the City'sannualbudget-process GenerationCharges: The-monthly-wholesale-generation-cost to-theCity-baseci-on-the-meterecl-eriergy-and-deFfl-a-F4- TransmissionCharges: Themonthly-wholesale-transmission costto-the-Citasedonthe-metered-energyanddemand: h. Other-Chargesand-Cred-itc: Any-other-wholesale-generation-or transmission chargesorcreditsto-the-City-shallbebasedenthe-metered-energy and-demand-oEpropoFtional-sharcseniing--the-industrialcustomer, 5. Taxes: An amountoalcula c actualtax obligation-ofthe-Electric-Ind-City-for-StatePublicUtilitiestaxand-City-Public ORDINANCENO. 1- LegallDept.Draft 08.04.11 Utility- taxand- any-other- apftlicable cc. 13.12.071ScheduleIT -11 IndustrialTransmission RateandCharaes: Theratesandcharaesforservicehereunderisthesumof theamountsdeterminedinaccordancewithsections2 -10foreachmonth. 1. Definitions: Initiallycapitalizedwordsusedhereinhavethemeaningset forthintheBPAAgreement. theTieredRateMethodology. orasdefinedbelow. BPA" meanstheBonnevillePowerAdministration. BPAAgreement" meanstheaareement betweentheCityandBPA_ dated December1. 2008. ContractNo. 09PB- 13093. asamendedfromtimetotime. CRHWM" meanstheCity'sRatePeriodHighWaterMark. Customer" meansthepersonorentitythatpurchasespowerfromtheCity. usinatheserviceaovernedbythisSection. "Customer" mayhereafterbe abbreviatedas "Cu." CustomerFacility" meansfacilitiesorpremisesownedbytheCustomerand servedbypowerpurchasedpursuanttothisSection. Demand" meanstheamountofeneravdeliveredtotheCustomeratthe PointofDelivery (asmeasuredinwholekilowatts) integratedoverthe60- minute periodduringtheCity'sCSP. Forpurposesofsuchcalculation. the60- minute periodsshallbeginatthebeginningofeachwholehourandrunfor60consecutive minutesuntiltheendofsuchwholehour. NetworkAa_ reement" meanstheaareementbetweentheCityandtheBPA. datedSeptember20. 2006. ContractNo. OTX- 124433. asamendedfromtimeto time. TieredRateMethodoloav "meansBPA'smethodofcalculating electricrates ascurrentlyestablishedinBPAdocumentTRM- 12S -A -03. September. 2009. andas amendedfromtimetotime. aMW. 2. ElementsForCalculatina RatesandCharges. CuCDO" asfollows: A. CuRHWM CustomerwillhaveaRHWMamount "CuRHWM of B. CuCDC) Customer will have the following monthly CDQs January kW July kW February kW Auaust kW March kW September kW April kW October kW May kW November kW 2- LegallDept.Draft 08.04.11 HLHSSL June kW December kW 3. CustomerCharaesForServiceAtorBelowCuRHWM. N% CuRHWM CRHWM Where: N% isthenercentaaeoftheCustomerCharaesforamonthtobepaid byCustomer. CuRHWMistheamountsetoutinsection2(A) above. CRHWMis aMW. NocreditwillbeaivenorpaidforusingTessthantheCuRHWM. 4. DemandCharaesForServiceAtorBelowCuRHWM. DC CuCSP CuAHLH) CuCDQ1XDR Where: DCistheDemandCharaesforamonthapportionedtoCustomerfor payment. CuCSPistheDemandoftheCustomerFacility (inkilowatts) duringthe City'sCSPineachmonth. CuCDQistheamountsetoutinsection2above. CuAHLHistheaveraaeoftheCustomerFacilitiv'sactualhourlyTier1 loadsdurinatheHLHineachmonthinkilowatts_ DRistheDemandRatechargedtotheCity. NocreditwillheaivenorpaidforDemand. 5. LoadShapingCharaesandCreditsForServiceAtorBelowCuRHWM. CuLSC (CuAL_— CuSSL) XLSR Where: CuLSCisthenetoftheLoadShapinachargesandcreditsforamonth apportionedtoCustomer. withCustomerpavingnetLoadShapina charaestotheCity. andtheCitypavingnetLoadShapinacreditsto Customer. CuALisCustomer'smonthlyHLHandLLHToads. LSRistheLoadShapinaRateapplicabletoHLHandLLHperiods. CuSSLisCustomer'sShanedSystemLoadasfollows: January kWh July kWh February kWh August kWh March kWh September kWh April kWh October kWh May kWh November kWh June kWh December kWh 3- LegallDept.Draft 08.04,1'1 LLHSSL January kWh July JsWfl February JWh Auaust __kWh March kWh September kWh April kWh October _kWh MaY kWh November kWh June kWh December kWh IftheCity_paysorreceiv_es_aLoadShapingCharge_True-UpAdiustmentchargeor credit. thenapro-rataportionofsuchcreditorchargewillapportionedtoCustomer asdeterminedbytheCity, 6. RatesandhargesForServiceAboveCuRHWM: The .Cityhasno obligationtg_proyideservice_tothe _customerFacilityinexcessofCuRHWMandits CuCDQ. iftheCustomerFacilitvtakesserviceinexcessofitsCuRHWMand/orits CuCDQ,_ Customerwillpay_theCity_theallcosts. charges, surcharaes. andpenalties attributabletosuchservice. AdditionalCharaes: Inadditiontothechargescalculatedabove, Customer shallpaytotheCityeachmonthallcosts, charges, surcharges. adjustmentchargesandpenalties. andconditionsincurredbytheCityand attributabletoCustomer. includingbutnotlimitedtothoseapplicableundertheBPA Agreement. theTRM. BPArateschedulesandgeneralrateschedule_provisions NetworkAareement. tariffs. and _generalratescheduleprovisions._ 8.___BasicCharge: Customerwillpaytothe_ City,aBasicChargeof per_montn 9. TransmissionCharaes. Themonthly_wholesaletransmissioncosttothe Cityb_asedonthemetered _eneravanddemandassociatedwithprovidingservice hereunder. 10. Taxes Anamountcalculatedtorecovertheactualtaxobligation ofthe ElectricUtilityandCityforStatePublicUtilitiestaxandCity ,PublicUtilitytaxandany other_applicabletaxes. Section2. Section13.12.080C. ofthePortAngelesMunicipalCode, establishingcontractsalesandpurchases, andOrdinance2431, asamended, are herebyamendedtoreadasfollows: LegallDept.Draft 0804.11 1312.080C C. TheDirectororDeputyDirectorforPowerSystemsofthePublic WorksandUtilitiesDepartmentshallhavetheauthoritytoenterintocontractsforthe saleandpurchase ofr+onfir -rteenergyanddemand, providedthattheCityManager, MayorandCouncilmembersoftheUtilityAdvisoryCommitteearenotified, and providedthatsuchcontractshaveatermofnomorethanoneyearandtheenergy purchaseddoesnotexceed40,000megawatthours. Section3 Corrections.TheCityClerkandthecodifiersofthisordinance areauthorizedtomakenecessarycorrectionstothisordinanceincluding, butnot limitedto, thecorrectionofthescrivener's /clericalerrors, references, ordinance numbering, section /subsectionnumbersandanyreferences thereto. Section4 Severability IfanyprovisionsofthisOrdinance, orits applicationtoanypersonorcircumstances, areheldinvalid, theremainderofthe Ordinance, orapplicationoftheprovisionsoftheOrdinancetootherpersonsor circumstances, isnotaffected. Section5 EffectiveDate. ThisOrdinance, beinganexerciseofa powerspecificallydelegatedtotheCitylegislative body, isnotsubjectto referendum. Thisordinanceshalltakeeffect12:01A.M., October1, 2011. PASSEDbytheCityCounciloftheCityofPortAngelesataregularmeeting ofsaidCouncilheldonthe dayofSeptember, 2011. MAYORDANDIGUILIO ATTEST: APPROVEDASTOFORM: JanessaHurd, CityClerk WilliamE. Bloor, CityAttorney PUBLISHED. 2011 BySummary G \LEGAL'., 8/4/2011 ORDINANCES &RESOLUTIONSIORDINANCES.2011i20CHARTER1312 080411DOCX 5- RateOrdinanceIntent Updatetherateordinancetobeconsistent withthe newBPATRM ChargetheIndustrialTransmission (IT) customer(s) forit'sshareofBPAwholesale powerand transmissioncostsasifitwereadirectcustomerof BPA ChargetheITcustomer(s) forothercoststoprovide electricservice ChargetheITcustomer(s) forStateandCitytaxes 2 RateOrdinanceAcronyms TRM TieredRateMethodology CRHWM Cityrateperiodhighwatermark CuRHWM Customerrateperiodhighwatermark CuCDQ Customercontractdemandquantity CuCSP Customersystempeak CuAHLH Customeraverageheavyloadhour SSL Systemshapedload 3 8/9/2011 1 August13, 2011 UtilityAdvisoryCommittee IndustrialTransmission Rate Ordinance Amendments PORT q FF Agenda RateOrdinanceIntent TieredRateMethodology Acronyms CustomerCharges Demand Charges LoadShapingCharges BasicCharges OtherCharges SaleEtpurchaseopportunities 1 TerryMundorf, WesternPublicAgenciesGroup. LarryDunbar, DeputyDirectorofPowerSystems 8/9/2011 1 ContractDemandQuantity (SystemkW) 40000 30000 u000 20,000 15,000 10000 5,030 0 1.1 tnrtraCUo.raldQuantlt A fJ DemandCharges SCADAScreenPrint eartr. oaB€ Seaifit- f-ie,oetaCALI% 69K System SystemKW 29.266F sw I, SR7I7 L. LAI A LIL775 8/9/2011 4 CustomermonthlyHLHEtLLHloads LessCuSSL ConsumptionQuantity ConsumptionQuantityismultiplied byloadshapingcharge LoadShapingCharges (SystemMWh) 50000 40000 30000 20000 L0000 0 h 0 LoadShapingCharges F N A M 1, IAA 8 A 8/9/2011 5 BasicCharge Notyetavailable Directcosts Indirectcosts Othercosts OtherCharges 10 Tier2 (ifapplicable) Othercharges, surcharges, etc. Transmission charges StateEtCitytaxes 11 8/9/2011 6 Sale PurchaseOpportunities Applytoquantitiesnotused, suchas CDQandSSL ForCitysale (revenueenhancement) ForCitypurchase (costsavings) Citysale /purchaseofavailableCDQ Citysale /purchaseofavailableSSL Availability anddurationuncertain Recommendations 12 Forwardafavorable recommendation toCityCouncil to setpublichearing September6, 2011publichearing September13, 2011UtilityAdvisory Committeerecommendation September20, 2011publichearing October1, 2011effectivedate 13 8/9/2011 7 ORTANGELES WASHINGTON U.S.A. UtilityAdvisoryCommitteeMemo Date: August9, 2011 To: UtilityAdvisoryCommittee From: TerriPartch, P.E., StormwaterProgramManager Subject: StormwaterNationalPollutantDischargeEliminationSystem (NPDES) andCapital NeedsAssessmentStudyProfessionalServicesAgreement Summary: HerreraEnvironmental Consultants hasbeenselectedtoprovideprofessionalservices relatedtotheStormwaterNPDESandCapitalNeedsAssessmentstudy. Thestudywillassessthe City'scurrentStormwater UtilityandwillidentifyresourcesneededtoensurethattheCity remainsincompliancewiththeNPDESPhaseIIMunicipalStormwaterPermit, includingthenew permitrequirementsthatwillbepublishedin2012andenforcedin2013. Recommendation: Forwardafavorablerecommendation toCityCounciltoapproveand authorizetheCityManagertosignaProfessionalServicesAgreement withHerrera Environmental Consultantsinanamountnottoexceed $107,143, andtomakeminor modifications totheagreement, ifnecessary. Background /Analysis: InJanuaryof2007, theCitybecameaPhaseIIMunicipalStormwater PermitteeundertheStateDepartmentofEcology. ThismunicipalstormwaterPermitallowsthe Citytodischargestormwaterintothecreeks, theharbor, andtheStraitofJuandeFuca. ThePermit comeswithalargenumberofrequirementstoremovepollutantsandimprovewaterqualitywhich rampup" overtime. Thepermitrequirements areinfivegeneralareasincluding: publiceducation; illicitdischarge detectionandelimination; construction siterunoffcontrol; municipaloperationsrunoffcontrol; andpublicparticipation. InOctober2010, theCityacceptedaWashington Stategrantinthe amountof $121, 229tosupportspecificimplementationrequirementsfortheWesternWashington PhaseIIMunicipalStormwaterPermit. N: \UAC\Final \StormwaterNPDESandCapitalNeedsAssessmentProfessionalServicesAgreement.docx StormwaterNationalPollutantDischargeEliminationSystemandCapitalNeedsAssessmentStudyProfessional ServicesAgreement August9, 2011 Page2 Amongtheauthorizedelementsforthisgrantisa "NeedsAssessment." TheNeedsAssessment willdothefollowing: AssesstheCity'scurrentStormwater ManagementPlan (SWMP), existingorganizational hierarchies, existingfacility, staffinglevelsandequipmentforoperations, engineering andplanning. ReviewtheCity'scurrentstormwaterregulationsandfundingmechanisms. Performaregulatory gapanalysis. Reviewtherequiredregulatory responsibilities and associateddeadlinesoverthenextfiveyeartermofthereissuedPhaseIIMunicipal StormwaterPermit. Determinewhatorganizationalhierarchies, facilities, levelsof staffingandequipmentforengineering, operationsandplanningwillbenecessaryto adequatelymeettheincreasingregulatoryrequirements. Evaluateexistingwaterqualitydataandrecommendcapitalwaterqualityprojects. Performafinancialanalysisandcreatefundingrecommendationsforboththeregulatory andcapitalprograms. Createaphasingandimplementationschedule. SupporttheCityinapublicprocessforreviewandapprovaloftheplan. TheCitysolicitedproposalsfromqualifiedconsultingfirms, andreceived3responsivesubmittals onJuly15, 2011. Theselectioncommitteemet, analyzedtheproposals, andinterviewed thetwo mostqualifiedfirms. HerreraEnvironmental Consultantswasselectedasthemostqualified. The tablebelowidentifiesthetasksandbudgetfortheproposedscopeofwork. TaskDescription 1Cost Task1 ProjectManagement 1 $6,536 Task2 ExistingStormwaterProgramCharacterization 1 $13,216 Task3 StormwaterProgramRegulatoryGapAnalysis $13,236 Task4 WaterQualityDataAnalysisandProjectDevelopment $25,256 Task5 FinancialAnalysisandFundingRecommendations 1 $25,568 Task6 DraftandfinalReportsandPresentationSupport /PublicEducation1 $15,331 Task7 StreamFecalColiformAnalysisandProjectDevelopment 1 $8,000 TotalCost 1 $107,143 StaffandHerreraEnvironmentalConsultantswillpresenttheresultsofthestudytotheUtility AdvisoryCommittee, CityCouncil, andthegeneralpublicforreviewandapprovalupon completion, whichisanticipatedmid -year2012. Thestudyisfundedbya $121,229Stormwater CapacitygrantfromDOEthattheCityreceivedinOctober2010. Itisrecommended thattheUtilityAdvisoryCommitteeforwardafavorablerecommendationto CityCounciltoapproveandauthorizetheCityManagertosignanagreementwithHerrera EnvironmentalConsultantsinanamountnottoexceed $107,143andtomakeminormodifications totheagreement, ifnecessary. PORT NGELES WASHINGTON U. S. A UtilityAdvisoryCommittee Memo August 9, 2011Date: To: UtilityAdvisoryCommittee From: TerryGallagher, PoliceChief Subject: Wireless MobileDataSystem (BTOP) Update Summary: TheRequest forProposalfortheprocurement ofaCity -ownedWireless MobileData System isnowavailable. Staffanticipates thatitwillseekUtilityAdvisoryCommittee considerationofthesuccessfulvendor(s) proposals atitsmeetingonJanuary10, 2012. Recommendation: Forinformation only, noactionrequested. Background /Analysis: OnApril19, 2011, CityCouncilapproved aprofessionalservices agreement withColumbia Telecommunications Corporation toprepare aRequest forProposal RFP) fortheprocurementofaCity -owned WirelessMobile DataSystem (WMDS). Aseparate RFPwasalsopreparedforOperation, Management MaintenanceServices, andRetailService Provider. FundingforthedesignandconstructionoftheWMDS isprovidedtotheCityunderthe Northwest OpenAccessNetwork subgrant. Staffispleased tosharethattheRFPwascompleted inaccordance withthescheduleandwas advertised onJuly25, 2011. TheRFPdocuments areavailable ontheCity'swebsiteandasof writingthismemoatotalof29vendors registeredwiththeCity. OnAugust5, 2011, apre proposal conference washeldandtherewere18vendors inattendance. Atotalof17vendors signedtheNonDisclosureAgreement togainaccesstoconfidential informationabouttheCity's computerandtelecommunications systems andhaveindicated theyareinterestedinpreparing a proposaltotheCity. Vendorswereinvited toaskquestionsandmayvisitCitysitesoverthenextfewweeks. Vendor proposalsareduenolaterthanSeptember 30, 2011. FromJuly25, 2011untilthecompletionof theprocurementprocessvendorshavebeeninstructedtoonlycontactLarryDunbar toensurethat theprocess isfairlyconducted. Anyunauthorized contactofaCityrepresentativecoulddisqualify avendorfromsubmittingaproposal. Staffanticipates thatitwillseekUtilityAdvisoryCommittee consideration ofthesuccessful vendor(s) proposals atitsmeetingonJanuary10, 2012. N \UAC \Final \WMDS (BTOP) Updatedocx UtilityAdvisoryCommittee JackPittisConferenceRoom PortAngeles, WA98362• August9, 2011 3:00PM AGENDA I. CallToOrder II. RollCall III. ApprovalOfMinutesForJuly12, 2011 IV. LateItems V. DiscussionItems: A. BonnevillePowerAdministrationNoticeForTier2PowerSupply B. BonnevillePowerAdministrationWholesalePowerRateAdjustments C. IndustrialTransmissionElectricRateOrdinanceAmendments D. StormwaterSystemModelingPresentation (verbalreportonly) E. StormwaterNationalPollutionDischargeEliminationSystemandCapital NeedsAssessmentStudyProfessionalServicesAgreement VI. InformationOnlyItems: A. AdvancedMeteringInfrastructureSystemUpdate (verbalreportonly) B. WirelessMobileDataSystem (BTOP) Update C. DryCreekWaterAssociationEasements (verbalreportonly) VII. ExecutiveSession: PotentialLitigationRCW42.30.110(1)(i) VIII. NextMeetingDates: August30, 2011, September13, 2011 IX. Adjournment N: \uac \final \080911 Date: Expectedlengthofsession: Isactionexpectedfollowingthesession: Onlyannouncedtopicsmaybediscussed NofinalactioncanbetakeninExecutiveSession Discussionsareconfidential ReasonforExecutiveSession: EXECUTIVESESSION Toconsidermattersaffectingnationalsecurity. Toconsidertheselectionofasiteortheacquisitionofrealestatebyleaseorpurchasewhen publicknowledgeregardingsuchconsiderationwouldcausealikelihoodofincreased price. Toconsidertheminimumpriceatwhichrealestatewillbeofferedforsaleorleasewhen publicknowledgeregardingsuchconsideration wouldcausealikelihoodofdecreased price. However, finalactionsellingorleasingpublicpropertyshallbetakeninameetingopentothepublic. Toreviewnegotiationsontheperformance ofpublicbidcontractswhenpublicknowledge regardingsuchconsiderationwouldcausealikelihoodofincreasedcosts. Toconsider, inthecaseofanexporttradingcompany, financialandcommercial information suppliedbyprivatepersonstotheexporttradingcompany. Toreceiveandevaluatecomplaintsorchargesbroughtagainstapublicofficeroremployee. However, upontherequestofsuchofficeroremployee, apublichearingorameetingopentothe publicshallbeconducteduponsuchcomplaintorcharge. Toevaluatethequalificationsofanapplicantforpublicemploymentortoreviewthe performanceofapublicemployee. However, subjecttoRCW42.30.140(4), discussionbya governingbodyofsalaries, wages, andotherconditionsofemployment tobegenerallyappliedwithin theagencyshalloccurinameetingopentothepublic, andwhenagoverningbodyelectstotakefinal actionhiring, settingthesalaryofanindividualemployeeorclassofemployees, ordischargingor disciplininganemployee, thatactionshallbetakeninameetingopentothepublic. Toevaluatethequalificationsofacandidateforappointmenttoelectiveoffice. However, any interviewofsuchcandidateandfinalactionappointingacandidatetoelectiveofficeshallbeina meetingopentothepublic. Todiscusswithlegalcounselrepresentingtheagencymattersrelatingtoagencyenforcement ctions, ortodiscusswithlegalcounselrepresentingtheagencylitigationorpotentiallitigationto whichtheagency, thegoverningbody, oramemberactinginanofficialcapacityis, orislikelyto become, aparty, whenpublicknowledgeregardingthediscussionislikelytoresultinanadverselegal orfinancialconsequence totheagency. ClosedsessionunderRCW42.30.140: Todiscussproceedingsconcernedwiththeformalissuanceofanordergranting, suspending, revoking, ordenyinganylicense, permit, orcertificatetoengageinanybusiness, occupation, or profession, ortoreceivealicenseforasportsactivityortooperateanymechanicaldeviceormotor vehiclewherealicenseorregistration isnecessary; or Meetingofaquasijudicialbodyrelatingtoaquasijudicialmatterbetweennamedparties asdistinguishedfromamatterhavinggeneraleffectonthepublicoronaclassorgroup. Collectivebargainingsessionwithemployeeorganization, includingcontractnegotiations, grievancemeetings, anddiscussionsrelatingtotheinterpretationorapplicationofalaboragreement oraportionofameetingwhichthegoverningbodyisplanningoradoptingthestrategyorposition tobetakenbythegoverningbodyduringthecourseofanycollectivebargaining, professional negotiations, orgrievanceormediationproceeding, orreviewingtheproposalsmadeinthe negotiations orproceedingswhileinprogress. Timesessionbegan: Wassessionextended byannouncement: Ifso, when: Mattersgovernedbychapter34.05RCW, theAdministrative ProcedureAct. Timesessionended: S 7 Mayor G \LEGAL \Forms \EXECUTIVESESSION061509wpd Inattendance: Dare4Pot brookNe4eir,rc o/„, )5, g CityClerk