HomeMy WebLinkAboutAgenda Packet 09/10/2013
NOTICE OF SPECIAL MEETING
PORT ANGELES CITY COUNCIL & UTILITY ADVISORY COMMITTEE
NOTICE IS HEREBY GIVEN
that the City Council of the City of Port Angeles will hold a special meeting
to coincide with the Utility Advisory Committee, a subcommittee of the Port Angeles City Council, on
Tuesday, September 10, 2013, at 3:00 p.m. The meeting will be held in the Jack Pittis Conference Room
in City Hall, 321 East Fifth Street. The agenda is as follows:
1. UAC AGENDA
I. Call To Order.
II. Roll Call
III. Approval Of Minutes For August 13, 2013
IV. Late Items
V. Discussion Items:
A. Industrial Transmission Electric Rate Ordinance
B. Utility Cost-of-Service Analysis Update
C. CSO Phase 1 Design/Project 06-01 (WW08-2008) – Professional Services Agreement
with Brown and Caldwell, Inc., Amendment 17
VI. Information Only Items:
VII. Next Meeting Date: October 8, 2013
VIII. Adjournment
2. Amendments to Temporary Trail Easement on the Rayonier Property
3. National Park Service Agreement
Janessa Hurd, CMC
City Clerk
Issued: September 9, 2013 at 1:30 p.m.
Distribution: City Council City Manager City Attorney
Department Heads Public Works & Utilities Peninsula Daily News
KONP Radio Front Lobby (Post) Webmaster
Utility Advisory Committee
Jack Pittis Room
Port Angeles, WA 98362
September 10, 2013 @ 3:00 PM
AGENDA
1. Call To Order
IL Roll Call
III. Approval Of Minutes For August 13, 2013
IV. Late Items
V. Discussion Items:
A. Industrial Transmission Electric Rate Ordinance
B. Utility Cost-of-Service Analysis Update
C. CSO Phase I Design/Project 06-01 (W W08-2008)— Professional
Services Agreement with Brown and Caldwell, Inc., Amendment 17
VI. Information Only Items:
VII. Next Meeting Date: October 8, 2013
VIII. Adjournment
N:AuacA final A091013
Utility Advisory Committee
Jack Pittis Conference Rooms
Port Angeles, WA 98362
August 13, 2013
SPECIAL MEETING—2:00 p.m.
REGULAR MEETING - 3:00 p.m.
1. Call To Order—Special Meeting at 2:00 p.m.
Chairman Dan DiGuilio called the special meeting to order at 2:00 p.m.
U. Roll Call
UAC Assigned
Councilmembers Present: Dan Di Guilio, Cherie Kidd, Sissi Bruch,
Other Councilmembers
Present: Patrick Downie
Staff Present: Bill Bloor, Phil Lusk
III. Conduct Utility Advisory Committee Member Interviews:
2:15 p.m. Lynn Bedford
2:35 p.m. Hershel Lester
IV. Discuss qualifications of applicants/determine recommendation to City Council for a
community representative member of the Utility Advisory Committee.
A discussion was held regarding the qualifications and the determination was to recommend the
appointment of Ms. Lynn Bedford, PhD as the Citizen-At-Large Representative, to fill the
unexpired term until February 28, 2014.
V. Adjournment: 2:45p.m.
•
Cherie Kidd, Mayor Sondya Wray, Administrative Specialist
•
Utility Advisory Committee
Jack Pittis Conference Rooms
Port Angeles, WA 98362
August 13, 2013
Regular Meeting - 3:00 p.m.
I. Call To Order—Regular Meeting
Chairman Dan DiGuilio called the meeting to order at 3:00 p.m.
H. Roll Call
UAC Assigned
Councilmembers Present: Dan Di Guilio, Cherie Kidd, Sissi Bruch,
Other Councilmembers
Present: Patrick Downie
Other Councilmembers
Absent:
Utility Advisory
Committee Members
Present: Dean Reed (4:12)
Utility Advisory
Committee Members
Absent: Paul Elliot
Staff Present: Glenn Cutler, Phil Lusk, Mike Puntenney, Kathryn Neal, Sondya
Wray, Bill Bloor, Gregg King, Theresa Agesson, Nathan West,
Jonathan Boehme
Others Present: Lee Whetham—City Council Candidate Position#2
III. Approval of Minutes
Chairman Dan Di Guilio asked if there were any corrections to the minutes of June 21, 2013 and
July 9, 2013. Sissi Bruch moved to approve the minutes. Cherie Kidd seconded the motion, which
carried unanimously.
IV. Late Items:
Recommend Appointment of a Utility Advisory Committee Citizen-At-Large Representative
2
V. Discussion Items:
A. Bonneville Power Administration Technology Innovation Demand Response
Project Operating Agreement
Phil Lusk, Deputy Director of Power & Telecommunications Systems overviewed
Bonneville Power Administration's Technology Innovation Demand Response Project Operating
Agreement. An award in an amount not to exceed $425,000 has been offered to the City, which
requires a separate Operating Agreement to the Implementation Agreement which was approved in
January 2013. There was a brief discussion.
Cherie Kidd moved to forward a favorable recommendation to City Council to approve and
authorize the City Manager to sign an Operating Agreement with the Bonneville Power
Administration for up to $425,000 for the Demand Response Demonstration Market Project,
and to make minor modifications to the agreement, if necessary. Patrick Downie seconded the
motion,which carried unanimously.
B. Peabody Culvert Analysis for CSO Phase II Design/Project WW10-2008
Professional Services Agreement with Brown & Caldwell, Inc.,Amendment 16
Kathryn Neal, Engineering Manager, discussed the Peabody Culvert Analysis for the CSO Phase II
Design Project. An investigation of the current conditions of the Peabody Creek culvert under
Lincoln Street and the nearby soils is necessary. Results will help the guide the design of the Front
Street Diversion Sewer. There was a lengthy discussion:
Patrick Downie moved to forward a favorable recommendation to City Council to approve
and authorize City Manager to sign Amendment 16 to the Agreement for Professional
Services with Brown and Caldwell in an additional amount not to exceed $115,483, which
increases the maximum compensation for CSO Phase 2 design to $2,560,093 and to make
minor modifications to the agreement, if necessary. Cherie Kidd seconded the motion, which
carried unanimously.
C. Department of Ecology Municipal Stormwater Capacity Grant Acceptance
Jonathan Boehme, Stormwater Engineer reviewed the grant acceptance from the Department of
Ecology. They have offered the City a Municipal Stormwater Capacity Grant of$50,000 to
implement the Western Washington Phase II Municipal Stormwater Permit. They have also offered
an additional $120,000 grant for preconstruction planning and design requirements for the storm
water projects that include water quality improvements. There was a brief discussion.
Sissi Bruch moved to forward a favorable recommendation to City Council to authorize the
City Manager to sign the grant acceptance intent notice and agreement with the Department
of Ecology under the Municipal Stormwater Capacity Grant Program in the amount of
$170,000. Patrick Downie seconded the motion, which carried unanimously.
D. 4 6 Street Stormwater Improvement Project/DR03-2009 Professional Services
Agreement with PACE Engineers, Inc.,Amendment No. 4
Kathryn Neal, Engineering Manager and Mike Puntenney, City Engineer, discussed the 4th Street
3
Stormwater Services Agreement. In order to complete the design and proceed to construction it is
necessary to modify parts of the design to comply. A review of six different project design feature
alternatives and each of their costs implications. There was a lengthy discussion.
A recommendation was made that staff will bring the 4`h Street Stormwater Improvement
Project/DR03-2009 Professional Services Agreement with PACE Engineers, Inc., Amendment
No. 4 to Council in consideration with additional information on the design feature specifics
and budget information.
E. Recommend Appointment of a Utility Advisory Committee Citizen-At-Large
Representative
One of the Utility Advisory Committee community representatives resigned in May 2013. The City
Manager's office sought applicants for the open position. Two applications were received. In
accordance with the City Council Rules of Procedure, the City Councilmembers assigned to the
Utility Advisory Committee reviewed applications and interviewed the candidates in open session
during a special UAC meeting on August 13, 2013.
Sissi Bruch moved the recommendation that the City Council appoint Ms. Lynn Bedford, PhD
as Citizen-At-Large Representative, to fill the unexpired term until February 28, 2014. Cherie
Kidd seconded the motion, which carried unanimously.
VI. Information Only Items:
VII. Next Meeting Date: September 10, 2013
VIII. Adjournment: 4:35 p.m.
Cherie Kidd, Mayor Sondya Wray, Administrative Specialist
4
CITY OF PORTANGELES
`- W A S H I N G T O N, U. S. A.
L1
Utility Advisory Committee Memo
Date: September 10, 2013
To: Utility Advisory Committee
From: Phil Lusk, Deputy Director of Power and Telecommunications Systems
Subject: Industrial Transmission Electric Rate Ordinance Amendments
Summary: The Bonneville Power Administration Tiered Rate Methodology went into effect on
October I, 2011. Changes have been made to some of the City's allocations for the upcoming
FY2014-FY2015 rate period, and proposed amendments to the Industrial Transmission rate
ordinance will be presented at today's meeting.
Recommendation: Forward a favorable recommendation to City Council to adopt the
proposed Industrial Transmission electric rate ordinance amendments, to proceed with the
public hearings on the ordinance amendments, and to also make minor modifications to the
amendments if necessary.
Background/Analysis: The Bonneville Power Administration Tiered Rate Methodology
went into effect on October 1, 2011. Changes have been made to the City's allocations for the
upcoming FY2014-FY2015 rate period, and amendments to the Industrial Transmission rate
ordinance will be presented at today's meeting.
Following a presentation, staff will request that the Utility Advisory Committee forward a
favorable recommendation to City Council to adopt the proposed Industrial Transmission electric
rate ordinance amendments, to proceed with the public hearings on the ordinance amendments, and
to also make minor modifications to the amendments if necessary.
The first City Council public hearing would be on September 17, 2013, with a presentation of the
proposed rate ordinance amendments and to allow public input to the process after the
presentation. The public hearing would be continued to October 1, 2013, at which time the public
hearing would be closed. The proposed ordinance amendments need to be adopted by City
Council in October, when the Bonneville Power Administration's FY2014-FY2015 rate period
revisions to the Tiered Rate Methodology go into effect.
The proposed rate ordinance amendments would be considered effective on October 1, 2013.
Attachment: Draft Industrial Transmission Electric Rate Ordinance Amendments
N:\UAC\MEETINGS\UAC20 I3\UAC091013\IT Electric Rate Ordinance Amendment.doex
ORDINANCE NO.
AN ORDINANCE of the City of Port Angeles, Washington making
changes to Chapter 13.12.071 of the Port Angeles Municipal Code
relating to Industrial Transmission.
THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY
ORDAIN AS FOLLOWS:
Section 1. Ordinance 2173 as amended and Chapter 13 of the Port Angeles Municipal
Code relating to Industrial Transmissions are hereby amended by amending Section 13.12.071
to read as follows:
13.12.071 Schedule IT-11—Industrial transmission.
A. Applicability. This schedule applies to all accounts where power is taken at transmission
voltage.
B. Character of service. Service to be furnished under this schedule is unregulated three
phase sixty cycle, alternating current at transmission voltage, 69 KV nominal.
C. Point of delivery. Service under this schedule shall be provided and measured where the
customer's facilities interconnect with the facilities of the City and the Bonneville Power
Administration.
D. Service policy. Service under this schedule is subject to the customer service policies of
the City.
E. Rate and charges: The rates and charges for service hereunder is the sum of the amounts
determined in accordance with sections 2 through 11 for each month.
1. Definitions: Initially capitalized words used herein have the meaning set forth in
the BPA agreement, the Tiered Rate Methodology, or as defined below.
"BPA" means the Bonneville Power Administration.
"BPA Agreement" means the agreement between the City and BPA, dated December 1, 2008,
Contract No. 09PB-13093, as amended from time to time.
"CHWM" means the City's Contract High Water Mark.
"Customer" means the person or entity that purchases power from the City, using the service
governed by this section. "Customer" may hereafter be abbreviated as "Cu."
"Customer facility" means facilities or premises owned by the customer and served by power
purchased pursuant to this section.
"Demand" means the amount of energy delivered to the customer at the point of delivery (as
measured in whole kilowatts) integrated over the 60-minute period during the City's CSP. For
1
purposes of such calculation, the 60-minute periods shall begin at the beginning of each whole
hour and run for 60 consecutive minutes until the end of such whole hour.
"Network agreement" means the agreement between the City and the BPA, dated September 20,
2006, Contract No. OTX-124433, as amended from time to time.
"RHWM" means the City's Rate Period High Water Mark.
"Tiered Rate Methodology" means EPA's policy for calculating wholesale power rates, adopted
in the Administrator's Final Record of Decision issued in September, 2009, and as amended from
time to time.
2. Elements for calculating rates and charges.
A. Cu CHWM.
Customer will have a CHWM amount("Cu CHWM") of 53.351 aMW. From October 1, 2013
through September 30, 2015 the customer will have a Rate Period High Water Mark (RHWM) of
52.786 52.774 aMW.
B. Cu CDQ.
Customer will have the following monthly CDQs ("Cu CDQ"): as follows:
January 14,760 kW July 14,238 kW
February 11,974 kW August 15,1 13 kW
March 14,913 kW September 13,541 kW
April 14,913 kW October 19,262 kW
May 22,190 kW November 14,423 kW
June 13,546 kW December 7,366 kW
3. Customer charge.
The customer charge (Cu CC) is the portion of the City's customer charges for a month to be
paid by customer.
The Cu CC each month shall be calculated by the following formula:
Cu CC = [CuCHWM -CHWM] x CMCC
Where:
Cu CHWM is the amount set out in section 2.(A) above.
CHWM is 86.775 755 aMW.
CMCC is the City's customer charge for the month.
No credit on the Cu CC will be given or paid for using electricity in amounts less than the Cu
CHWM.
4. Demand charges for service.
2
•
The customer demand charge (Cu DC) is the demand charges for a month to be paid by
customer.
The Cu DC each month shall be calculated by the following formula:
Cu DC = [(Cu CSP — Cu AHLH) — Cu CDQ] x DR
Where:
Cu CSP is the demand of the customer facility (in kilowatts) during the City's CSP in each
month.
Cu CDQ is the amount set out in section 2. above.
Cu AI-ILI-I is the average of the customer facility's actual hourly Tier 1 loads during the HLH in
each month in kilowatts.
DR is the demand rate charged to the City.
No credit will be given or paid for using demand in amounts less than the Cu CDQ.
5. Load shaping charges and credits.
The customer load shaping charge (Cu LSC) is the load shaping charges for a month to be paid
by customer.
The Cu LSC each month shall be calculated by the following formula:
Cu LSC = (Cu AL— Cu SSL) x LSR
Where:
Cu LSC is the net of the load shaping charges and credits for a month apportioned to customer,
with customer paying net load shaping charges to the City, and the City paying net load shaping
credits to customer, less an amount calculated by the City using the load shaping adjustment
true-up rate.
Cu AL is customer's monthly HLH and LLI-I loads.
Cu SSL is customer's shaped system toad as set out below:
LSR is the load shaping rate applicable to HLH and LLH periods.
3
HLH SSL
January, 2013 21,181,398 kWh July, 2013 28,625,696 kWh
October 22.006 244 April, 2014 15.644,999
February, 2013 19,921,279 kWh August, 2013 23,719,583 kWh
November 26 085 809 May, 2014 30 485 718
+ , 2013 20,616,937 kWh September, 2013 22,227,152 kWh
December 26 054 771 June 2014 26.272.811
April, 2013 15,932,498 kWh October, 2013 21,159,116 kWh
January. 2014 26,782,185_ July, 2014 28 197 7
May, 2013 29,521,358 kWh November, 2013 25,029,169 kWh
February, 2014 21,432,222 August. 2014 24 137 560
June, 2013 25,661,183 kWh December, 2013 21,878,177 kWh
March, 2014 21.726,703 September, 2014 21.011.040
LLH SSL
January, 2013 16,158,536 kWh July, 2013 13,9961,663 kWh
October 12 198.727 April 2014 10 244 103
February, 2013 42,66547900 kWh August, 201 12,130,619 kWh
November 15,809,971 May 2014 18.949.901
March, 2013 13,113,137 kWh September, 13,038,958 kWh
December 16.217,369 June 2014 14.440,851
April, 2013 10,697,083 kWh October, 2013 11,991,086 kWh
January. 2014 15.250.281 . July.2014 14.274.740
May, 2013 17,838,809 kWh November, 2013 15,562,101 kWh
February, 2014 12.604.609 August,. 2014 13.125,062
June, 2013 11,262,662 kWh December-7-2044 15,596,139 kWh
March 2014 13.669.544 September, 2014 12 413,194
6. Additional charges: In addition to the charges calculated above, customer shall
pay to the City each month all costs, charges, surcharges, adjustment charges and penalties, and
conditions incurred by the City and attributable to customer, including but not limited to those
applicable under the BPA agreement, the TRM, BPA rate schedules and general rate schedule
provisions, network agreement, tariffs, and general rate schedule provisions.
7. Basic charge: Customer will pay to the City a basic charge of$3,333.33 per
month.
8. Transmission charges: The monthly wholesale transmission cost to the City based
on the metered energy and demand associated with providing service hereunder.
4
•
9. Taxes: An amount calculated to recover the actual tax obligation of the electric
utility and City for State Public Utilities tax and City Public Utility tax and any other applicable
taxes. In addition, Customer shall pay each month any and all federal, state, local and City taxes
as may be levied, imposed or due which arise from or in connection with the provision of electric
service to Customer pursuant to this Ordinance.
F. Calculation of utility faxes. The Customer shall pay to the City each month the amount
necessary to fully satisfy the City's obligation for state and local utility taxes. For utility tax
purposes, the Gross Income from the customer shall be the sum of items 3 through 9 above, plus
the amount necessary to satisfy the City's obligation for state and local utility taxes.
G. Rates and charges for service: The City has no obligation to provide service to the
customer facility in excess of Cu CHWM and its Cu CDQ. If the customer facility takes service
in excess of its Cu CHWM and/or its Cu CDQ, customer will pay the City all costs, charges,
surcharges, and penalties attributable to such service.
H. If the City pays or receives a load shaping charge true-up adjustment charge or credit in
any fiscal year, then a pro-rata portion of such charge or credit will be apportioned to customer
as determined by the City, plus an amount calculated by the City using the load shaping
adjustment true-up rate.
I. Within one-hundred and fifteen (115) days of the first production of energy by any onsite
electrical generation (including without limitation any cogeneration facility), Customer shall
designate in writing to the City whether the output of any such onsite electrical generation will or
will net serve Customer's onsite load. If Customer desi.Hates some or all of such output will not
serve onsite load, then Customer shall designate to the Cit 'n writing that such output is
schedules and (1) sold to another utility in the Region to serve its Total Retail Load, (2)
surchased by Port Angeles to serve its Total Retail Load,(3) marketed as an export, or (4) ay
combination of(I), (2), and (3) above.
J. If Customer has desi!nated that some or all of the outs t of onsite electrical eneration
will not be ervin_ Cu tomer's onsite load then not later than t in 30 calendar da s .rior to
the commencement of commercial operations of an onsite electrical generation (including
Without limitation an co=eneration facilit the Customer shall notif the Cit in writins of i
the name of the entity that will be the transmission provider for such onsite electrical •eneration
and ii 'a description of the scheduling process to be employed for the output of such onsite
electrical generation. Customer shall notify the City in writing of an changes in such
chedulin,.rovider or schedulin_ arran_ements within ten 10 business da s of an such
change.
Section 2 -Corrections. The City Clerk and the codifiers of this ordinance are
authorized to make necessary corrections to this ordinance including, but not limited to, the
5
correction of the scrivener's/clerical errors, references, ordinance numbering, section/subsection
numbers and any references thereto.
Section 3 -Severability. If any provisions of this Ordinance, or its application to any
person or circumstances, are held invalid, the remainder of the Ordinance, or application of the
provisions of the Ordinance to other persons or circumstances, is not affected.
Section 4 -Effective Date. This Ordinance, being an exercise of a power specifically
delegated to the City legislative body, is not subject to referendum. This ordinance shall take
effect five (5) days after passage and publication of an approved summary thereof
consisting of the title.
PASSED by the City Council of the City of Port Angeles at a regular.meeting of said
Council held on the day of 2013.
CI-IERIE KIDD, Mayor
APPROVED AS TO FORM:
William E. Bloor, City Attorney
ATTEST:
Janessa Hurd, City Clerk
PUBLISI-IED: , 2013
By Summary
H:\a ORDINANCES&RESOLUTIONS\ORDINANCES.2013\I I -Industrial Transmision 13.12.071.docx
6
CITY OF PORTANGELES
1`- W A S H I N G T O N, U. S. A.
r-r- W7
Utility Advisory Committee Memo
Date: September 10, 2013
To: Utility Advisory Committee
From: Phil Lusk, Deputy Director of Power and Telecommunications Systems
Subject: Utility Cost of Service Studies
Summary: FCS Group is in the process of completing comprehensive rate and cost-of-service
studies for all of the City's utilities, excluding stormwater. The preliminary study results will be
presented to the Utility Advisory Committee, including the likely range of retail rate adjustments
that will be recommended. It is necessary to adjust retail rates to maintain the City's utility funds
in a Financially prudent position.
Recommendation: Forward a favorable recommendation to City Council to set the public
hearings on the utility rate ordinance amendments.
Background/Analysis: Earlier this year, the City contracted with FCS Group to complete
comprehensive rate studies for the Electric, Water, Wastewater, Solid Waste Collections, and Solid
Waste Transfer Station utilities. The studies are in the process of being completed, the preliminary
results of these studies will be presented to the Utility Advisory Committee.
Following a presentation by FCS Group, staff will seek the recommendation of the Utility
Advisory Committee to City Council to set the public hearings for the rate ordinance amendments
for the Electric, Water, Wastewater, Solid Waste Collections, and Solid Waste Transfer Station
utilities.
The first proposed City Council public hearing would be on October I, 2013, with a presentation
of the comprehensive rate studies and to allow public input to the process after the presentation.
The public hearing would be continued to October 15, 2013, at which time the public hearing will
be closed. Staff will return to the Utility Advisory Committee on October 8, 2013 requesting a
recommendation to City Council to adopt proposed rate ordinance amendments. The proposed rate
adjustments would be effective January 1, 2014.
N:\UAC\MEETINGS\UAC20 13\UA CO91013\Cost Of Service Studies.docx
CITY OF PORTANGELES
_-r
W A S H I N G T O N, U. S. A.
ry
CITY COUNCIL MEMO
DATE: September 10, 2013 •
To: Utility Advisory Committee
FROM: Michael Puntenney, P.E., City Engineer
SUBJECT: CSO Phase 1 Design/Project 06-01 (WW08-2008)—Professional Services Agreement with
Brown and Caldwell, Inc.,Amendment 17
Summary: The construction of the Combined Sewer Overflow(CSO) Phase I project is approximately 75%
completed on an earn value basis. Over the duration of the project, several unanticipated elements of work
critical to the construction and completion have been performed resulting in an increase to Brown and
Caldwell's level of effort for construction engineering services.
Recommendation: Approve and authorize the City Manager to sign Amendment 17 to the Professional
Services Agreement with Brown and Caldwell in an additional amount not to exceed $26,211,which
increases the maximum compensation for the CSO Phase 1 design to$4,765,802 and to make minor
modifications to the agreement, if necessary.
Background/Analysis: •
On February 21, 2012 City Council approved an amendment for construction engineering services to the CSO
Professional Services Agreement with Brown and Caldwell in an amount not to exceed $485,980. Over the
course of the CSO Phase I project, several unanticipated elements of work critical to the construction and
completion of the CSO Phase I project have been performed resulting in an increase to Brown and Caldwell's
level of effort for construction engineering services. These unanticipated elements of work include design for
the Pipeline Inspection Gauge (PIG) Launching Station at CSO outfall number 10, design upgrades to the CSO
tank flush column to prevent over-pressurization, design modifications to the CSO tank vortex drop box, and
addressing additional requirements identified by Ecology to reconcile tribal issues concerning the Industrial
Outfall rehabilitation.
These unanticipated elements of work were necessary components for completing the construction of the CSO
Phase I project. Staff originally believed that these additional requirements would be able to be covered by
savings elsewhere within the existing construction engineering services budget. After review and
consideration, it has been determined that these unanticipated elements of work have increased the level of
effort and that all of the original construction engineering services budget will be required for the original
engineering services requirements. In order to compensate Brown and Caldwell for the additional construction
engineering services, additional funds are necessary. Funds are available from CSO reserves accumulated
through rates and the Washington State Public Works Trust Fund loans and State Revolving Fund loans.
It is requested that the UAC forward a favorable recommendation to City Council to approve and authorize the
City Manager to sign Amendment 17 to the Professional Services Agreement with Brown and Caldwell in an
additional amount not to exceed $26,211, which increases the maximum compensation for CSO Phase I design
to$4,765,802 and to make minor modifications to the agreement, if necessary.
N:\UAC\MEETINGS\UAC20 I3\UAC09I 013\Amendment No. 17 to Brown&Caldwell Agreement-CSO Phase I.doc
ORDINANCENO.__________
ANORDINANCEoftheCityofPortAngeles,Washingtonmaking
changestoChapter13.12.071ofthePortAngelesMunicipalCode
relatingtoIndustrialTransmission.
THECITYCOUNCILOFTHECITYOFPORTANGELESDOHEREBY
ORDAINASFOLLOWS:
Section1
.Ordinance2173asamendedandChapter13ofthePortAngelesMunicipal
CoderelatingtoIndustrialTransmissionsareherebyamendedbyamendingSection13.12.071
toreadasfollows:
13.12.071ScheduleIT-11—Industrialtransmission
.
A.Applicability.Thisscheduleappliestoallaccountswherepoweristakenattransmission
voltage.
B.Characterofservice.Servicetobefurnishedunderthisscheduleisunregulatedthree
phasesixtycycle,alternatingcurrentattransmissionvoltage,69KVnominal.
C.Pointofdelivery.Serviceunderthisscheduleshallbeprovidedandmeasuredwherethe
customer'sfacilitiesinterconnectwiththefacilitiesoftheCityandtheBonnevillePower
Administration.
D.Servicepolicy.Serviceunderthisscheduleissubjecttothecustomerservicepoliciesof
theCity.
E.Rateandcharges:Theratesandchargesforservicehereunderisthesumoftheamounts
determinedinaccordancewithsections2through11foreachmonth.
1.Definitions:Initiallycapitalizedwordsusedhereinhavethemeaningsetforthin
theBPAagreement,theTieredRateMethodology,orasdefinedbelow.
"BPA"meanstheBonnevillePowerAdministration.
"BPAAgreement"meanstheagreementbetweentheCityandBPA,datedDecember1,2008,
ContractNo.09PB-13093,asamendedfromtimetotime.
"CHWM"meanstheCity'sContractHighWaterMark.
"Customer"meansthepersonorentitythatpurchasespowerfromtheCity,usingtheservice
governedbythissection."Customer"mayhereafterbeabbreviatedas"Cu."
1
"Customerfacility"meansfacilitiesorpremisesownedbythecustomerandservedbypower
purchasedpursuanttothissection.
"Demand"meanstheamountofenergydeliveredtothecustomeratthepointofdelivery(as
measuredinwholekilowatts)integratedoverthe60-minuteperiodduringtheCity'sCSP.For
purposesofsuchcalculation,the60-minuteperiodsshallbeginatthebeginningofeachwhole
hourandrunfor60consecutiveminutesuntiltheendofsuchwholehour.
"Networkagreement"meanstheagreementbetweentheCityandtheBPA,datedSeptember20,
2006,ContractNo.0TX-124433,asamendedfromtimetotime.
“RHWM”meanstheCity’sRatePeriodHighWaterMark.
"TieredRateMethodology"meansBPA'spolicyforcalculatingwholesalepowerrates,adopted
intheAdministrator'sFinalRecordofDecisionissuedinSeptember,2009,andasamendedfrom
timetotime.
2.Elementsforcalculatingratesandcharges.
A.CuCHWM.
CustomerwillhaveaCHWMamount("CuCHWM")of53.351aMW.FromOctober1,2013
throughSeptember30,2015thecustomerwillhaveaRatePeriodHighWaterMark(RHWM)of
52.78652.774aMW.
B.CuCDQ.
CustomerwillhavethefollowingmonthlyCDQs("CuCDQ"):asfollows:
January14,760kWJuly14,238kW
February11,974kWAugust15,113kW
March14,913kWSeptember13,541kW
April14,913kWOctober19,262kW
May22,190kWNovember14,423kW
June13,546kWDecember7,366kW
3.Customercharge.
Thecustomercharge(CuCC)istheportionoftheCity'scustomerchargesforamonthtobe
paidbycustomer.
TheCuCCeachmonthshallbecalculatedbythefollowingformula:
2
CuCC=\[CuCHWM÷CHWM\]×CMCC
Where:
CuCHWMistheamountsetoutinsection2.(A)above.
CHWMis86.775755aMW.
CMCCistheCity'scustomerchargeforthemonth.
NocreditontheCuCCwillbegivenorpaidforusingelectricityinamountslessthantheCu
CHWM.
4.Demandchargesforservice.
Thecustomerdemandcharge(CuDC)isthedemandchargesforamonthtobepaidby
customer.
TheCuDCeachmonthshallbecalculatedbythefollowingformula:
Where:
CuCSPisthedemandofthecustomerfacility(inkilowatts)duringtheCity'sCSPineach
month.
CuCDQistheamountsetoutinsection2.above.
CuAHLHistheaverageofthecustomerfacility'sactualhourlyTier1loadsduringtheHLHin
eachmonthinkilowatts.
DRisthedemandratechargedtotheCity.
NocreditwillbegivenorpaidforusingdemandinamountslessthantheCuCDQ.
5.Loadshapingchargesandcredits.
Thecustomerloadshapingcharge(CuLSC)istheloadshapingchargesforamonthtobepaid
bycustomer.
TheCuLSCeachmonthshallbecalculatedbythefollowingformula:
Where:
CuLSCisthenetoftheloadshapingchargesandcreditsforamonthapportionedtocustomer,
withcustomerpayingnetloadshapingchargestotheCity,andtheCitypayingnetloadshaping
3
creditstocustomer,lessanamountcalculatedbytheCityusingtheloadshapingadjustment
true-uprate.
CuALiscustomer'smonthlyHLHandLLHloads.
CuSSLiscustomer'sshapedsystemloadassetoutbelow:
LSRistheloadshapingrateapplicabletoHLHandLLHperiods.
HLHSSL
January,201324,481,398kWhJuly,201328,625,696kWh
October22,006,244April,201415,644,999
February,201319,924,279kWhAugust,201323,719,583kWh
November26,085,809May,201430,485,718
March,201320,646,937kWhSeptember,201322,227,452kWh
December26,054,771June,201426,272,811
April,201315,932,498kWhOctober,201321,159,146kWh
January,201426,782,785July,201428,197,957
May,201329,524,358kWhNovember,201325,029,169kWh
February,201421,432,922August,201424,137,560
June,201325,664,183kWhDecember,201324,878,477kWh
March,201421,726,703September,201421,011,040
LLHSSL
January,201316,158,536kWhJuly,201313,961,663kWh
October12,198,727October10,244,103
February,201312,654,900kWhAugust,201312,430,649kWh
November15,809,971November18,949,901
March,201313,413,137kWhSeptember,201313,038,958kWh
December16,217,369December14,440,851
April,201310,697,083kWhOctober,201311,994,086kWh
January,201415,250,281January,201414,274,740
May,201317,838,809kWhNovember,201315,562,104kWh
February,201412,604,609February,201413,125,062
June,201314,262,662kWhDecember,201315,596,439kWh
March,201413,669,544March,201412,413,194
4
6.Additionalcharges:Inadditiontothechargescalculatedabove,customershall
paytotheCityeachmonthallcosts,charges,surcharges,adjustmentchargesandpenalties,and
conditionsincurredbytheCityandattributabletocustomer,includingbutnotlimitedtothose
applicableundertheBPAagreement,theTRM,BPArateschedulesandgeneralrateschedule
provisions,networkagreement,tariffs,andgeneralratescheduleprovisions.
7.Basiccharge:CustomerwillpaytotheCityabasicchargeof$3,333.33per
month.
8.Transmissioncharges:ThemonthlywholesaletransmissioncosttotheCitybased
onthemeteredenergyanddemandassociatedwithprovidingservicehereunder.
9.Taxes:Anamountcalculatedtorecovertheactualtaxobligationoftheelectric
utilityandCityforStatePublicUtilitiestaxandCityPublicUtilitytaxandanyotherapplicable
taxes.Inaddition,Customershallpayeachmonthanyandallfederal,state,localandCitytaxes
asmaybelevied,imposedorduewhicharisefromorinconnectionwiththeprovisionofelectric
servicetoCustomerpursuanttothisOrdinance.
F.Calculationofutilitytaxes.TheCustomershallpaytotheCityeachmonththeamount
necessarytofullysatisfytheCity'sobligationforstateandlocalutilitytaxes.Forutilitytax
purposes,theGrossIncomefromthecustomershallbethesumofitems3through9above,plus
theamountnecessarytosatisfytheCity'sobligationforstateandlocalutilitytaxes.
G.Ratesandchargesforservice:TheCityhasnoobligationtoprovideservicetothe
customerfacilityinexcessofCuCHWManditsCuCDQ.Ifthecustomerfacilitytakesservice
inexcessofitsCuCHWMand/oritsCuCDQ,customerwillpaytheCityallcosts,charges,
surcharges,andpenaltiesattributabletosuchservice.
H.IftheCitypaysorreceivesaloadshapingchargetrue-upadjustmentchargeorcreditin
anyfiscalyear,thenapro-rataportionofsuchchargeorcreditwillbeapportionedtocustomer
asdeterminedbytheCity,plusanamountcalculatedbytheCityusingtheloadshaping
adjustmenttrue-uprate.
I.Withinone-hundredandfifteen(115)daysofthefirstproductionofenergybyanyonsite
electricalgeneration(includingwithoutlimitationanycogenerationfacility),Customershall
designateinwritingtotheCitywhethertheoutputofanysuchonsiteelectricalgenerationwillor
willnotserveCustomer’sonsiteload.IfCustomerdesignatessomeorallofsuchoutputwillnot
serveonsiteload,thenCustomershalldesignatetotheCityinwritingthatsuchoutputis
scheduledand(1)soldtoanotherutilityintheRegiontoserveitsTotalRetailLoad,(2)
purchasedbyPortAngelestoserveitsTotalRetailLoad,(3)marketedasanexport,or(4)any
combinationof(1),(2),and(3)above.
5
J.IfCustomerhasdesignatedthatsomeoralloftheoutputofonsiteelectricalgeneration
willnotbeservingCustomer’sonsiteload,thennotlaterthanthirty(30)calendardayspriorto
thecommencementofcommercialoperationsofanyonsiteelectricalgeneration(including
withoutlimitationanycogenerationfacility),theCustomershallnotifytheCityinwritingof(i)
thenameoftheentitythatwillbethetransmissionproviderforsuchonsiteelectricalgeneration
and(ii)adescriptionoftheschedulingprocesstobeemployedfortheoutputofsuchonsite
electricalgeneration.CustomershallnotifytheCityinwritingofanychangesinsuch
schedulingproviderorschedulingarrangementswithinten(10)businessdaysofanysuch
change,andshallpromptlyprovideanyinformationreasonablyrequestedbytheCityto
administerthisordinanceincludingwithoutlimitationinformationregardinganydispositionof
onsiteelectricalgenerationoutputsoldtootherparties.
Section2-Corrections
.TheCityClerkandthecodifiersofthisordinanceare
authorizedtomakenecessarycorrectionstothisordinanceincluding,butnotlimitedto,the
correctionofthescrivener’s/clericalerrors,references,ordinancenumbering,section/subsection
numbersandanyreferencesthereto.
Section3-Severability
.IfanyprovisionsofthisOrdinance,oritsapplicationtoany
personorcircumstances,areheldinvalid,theremainderoftheOrdinance,orapplicationofthe
provisionsoftheOrdinancetootherpersonsorcircumstances,isnotaffected.
Section4-EffectiveDate
.ThisOrdinance,beinganexerciseofapowerspecifically
delegatedtotheCitylegislativebody,isnotsubjecttoreferendum.Thisordinanceshalltake
effectfive(5)daysafterpassageandpublicationofanapprovedsummarythereof
consistingofthetitle.
PASSEDbytheCityCounciloftheCityofPortAngelesataregularmeetingofsaid
Councilheldonthe_____dayof______________2013.
_______________________
CHERIEKIDD,Mayor
6
APPROVEDASTOFORM:
_____________________________
WilliamE.Bloor,CityAttorney
ATTEST:
_____________________________
JanessaHurd,CityClerk
PUBLISHED:_____________,2013
BySummary
H:\\aORDINANCES&RESOLUTIONS\\ORDINANCES.2013\\11-IndustrialTransmision13.12.071.docx
7
Discussion Outline
City of Port Angeles
Utility Advisory
Overview of rate study process
Committee Meeting
Key factors
Utility Cost of Service Studies
Summaries
Transfer Station
Collection
Water
September 10, 2013
Wastewater
Combined Sewer Overflow (CSO)
•
Electric
Questions
Variable
Page 1Page 2
Overview of the Study ProcessKey Factors
Study period 2014-2016 (carried through 2019)
Projected rate revenue based on 2012 actual data
FISCAL POLICIES
Step 1:
ECONOMIC
2013 budget used as baseline –escalation factor
ASSUMPTIONS
Revenue
Requirement
OPERATING
CAPITAL FUNDING
REVENUE REQUIREMENT
BUDGETS
applied for future years:
PLAN
CUSTOMER
STATISTICS
General: 3.0% per year
CLASSIFY COST BY FUNCTION
Labor: 2.0% per year
PERS: 9.2% per year
SEWER
TRANSFER STATIONWATER
Step 2: Cost
of Service CSO
Medical: 0.0% 2014, 5.0% per year thereafter
COLLECTIONELECTRIC
Incorporated utility specific fiscal policies
ALLOCATE COSTS TO CUSTOMER
CLASSES
Reserves
Annual system replacement funding
VARIABLE
RATE DESIGN
FIXED CHARGES
CHARGES
Step 3: Rate
Debt service coverage
Design
Variable
Page 3Page 4
TS Revenue Requirement Summary
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
TRANSFER STATION OPERATIONS
$2,000,000
$1,000,000
$0
COST OF SERVICE
2013201420152016201720182019
Cash Operating ExpensesContractual
New Debt ServiceAdditions to Meet Coverage
Post Closure Reserve TransfersTotal Existing Revenue
Reduction in tonnage is driving down revenues
New debt service for $19.3 million post closure Land Bluff Stabilization project
Growth in existing O&M and contract costs
Coverage target of 1.75 is driving increases above cash needs and causing
reserves to build
Variable
Page 5Page 6
1
TS Revenue Requirement SummaryTS Cost of Service & Proposed Rates
Rate Increases201420152016201720182019
7.75%
$10,000,000
Proposed Increases21.00%15.75%7.75%7.75%7.75%7.75%
7.75%
$9,000,000
7.75%
7.75%
$8,000,000
15.75%
2014 2015 2016
21.00%
CategoryExisting2014 COSA
$7,000,000
ProposedProposedProposed
$6,000,000
Tax Exempt Transfer Station
$5,000,000
Municipal Solid Waste$ 116.10$ 121.54$ 141.61$ 164.15$ 176.94
$4,000,000
Yard Waste 27.70 76.10 29.09 30.54 32.07
$3,000,000
Biosolids 50.85 75.40 75.40 87.40 94.21
$2,000,000
Self-Haul
$1,000,000
Municipal Solid Waste 141.95 221.62 173.14 200.70 216.33
$0
2013201420152016201720182019
Tires 141.95 312.88 173.14 200.70 216.33
Asbestos 394.40 454.36 454.36 526.68 567.70
Cash Operating ExpensesContractual
Contaminated Soils 207.30 238.71 238.71 276.71 298.26
New Debt ServiceAdditions to Meet Coverage
Yard Waste 44.95 175.90 47.20 49.56 52.04
Post Closure Reserve TransfersTotal Existing Revenue
Metals and White Goods 68.85 129.91 72.29 75.91 79.70
Total Revenue After Increase
Blue Mountain 237.40 229.38 237.40 275.19 296.62
Notes:
Minimum fee applies to Self-Haul Customers.
Page 7Page 8
Collection Revenue Requirement Summary
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
COLLECTION OPERATIONS
$1,000,000
$0
COST OF SERVICE
2013201420152016201720182019
Cash Operating ExpensesAdministrative
Contractual (Yard/Recycling)Disposal
Total Existing Revenue
Revenue not sufficient to meet projected needs
Disposal cost increases from the Transfer Station utility along with general
and Contractual cost increases causing rate pressure
Fund balance allows use of $953,000 in 2014 through 2019 to phase-in
Variable
rate increases
Page 9Page 10
Collection Revenue Requirement SummaryCollection Cost of Service & Proposed Rates
$6,000,000
Rate Increases201420152016201720182019
6.20%
Proposed Increases6.20%6.20%6.20%6.20%6.20%6.20%
6.20%
$5,000,000
6.20%
6.20%
6.20%
6.20%
$4,000,000
2014 2015 2016
CategoryExisting2014 COSA
ProposedProposedProposed
$3,000,000
Residential - Weekly$ 30.65 $ 30.63 $ 32.74 $ 34.77 $ 36.90
$2,000,000
Residential - Every Other Week 19.75 22.13 20.35 21.67 23.00
Residential - Yard Waste 7.40 8.41 8.40 8.73 9.07
$1,000,000
Commercial - 90 gallon 22.60 34.05 26.89 30.08 33.65
Commercial - 300 gallon 78.15 75.22 81.51 85.91 90.55
$0
Schools Recycling 13.05 5.45 13.05 13.05 13.05
2013201420152016201720182019
Cash Operating ExpensesAdministrative
Contractual (Yard/Recycling)Disposal
Total Existing RevenueTotal Revenue After Increase
Page 11Page 12
2
Water Revenue Requirement Summary
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
WATER
$2,000,000
$1,000,000
COST OF SERVICE
$-
2013201420152016201720182019
Cash Operating ExpensesExisting Debt Service
Rate Funded System ReinvestmentTotal Existing Revenue
Revenue does not currently cover expenses
Demands are going down; expenses are increasing faster than rate revenue
Phasing in system reinvestment
Assumes that Clallam County PUD is subject to rate increases
Variable
Page 13Page 14
Water Revenue Requirement SummaryWater Cost of Service Findings
Across the Board 2014 RevenueCOSA 2014 Revenue
$8,000,000
Commercial
Irrigation Irrigation,
5.25%
5.25%
Commercial / Municipal
$0.1M
$0.3M
5.25%
$7,000,000
5.25%
/ Municipal $1.6M
3%
6%
5.25%
5.50%
$1.4M
32%
$6,000,000
29%
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
Residential
$-
Residential
$3.1M
2013201420152016201720182019
$3.4M
62%
68%
Cash Operating ExpensesExisting Debt Service
Rate Funded System ReinvestmentTotal Existing Revenue
Proposed
Existing COSA $
Total Revenue After Rate Increase
Class%
2014 2014 Difference
201420152016
Residential$ 3,208,851$ 3,078,941$ (129,911)-4.05%5.50%5.25%5.25%
Commercial / Municipal 1,372,763 1,606,501 233,73717.03%5.50%5.25%5.25%
Irrigation 139,974 295,834 155,861111.35%5.50%5.25%5.25%
Total$4,721,588 $4,981,276 $ 259,6875.50%5.50%5.25%5.25%
Page 15Page 16
Water Proposed Rates
Rate Increases201420152016
Proposed Increases5.50%5.25%5.25%
2014 2015 2016
Sample BillsExisting
ProposedProposedProposed
Residential
Fixed$ 26.75 $ 28.22 $ 29.70 $ 31.26
SEWER
Volume (450 CF) 9.36 9.87 10.39 10.94
Total$ 36.11$ 38.10$ 40.10$ 42.20
Increase$ 1.99$ 2.00$ 2.11
COST OF SERVICE
Commercial/Municipal
Fixed$ 37.90 $ 39.98 $ 42.08 $ 44.29
Volume (730 CF) 12.70 13.40 14.10 14.84
Total$ 50.60$ 53.39$ 56.19$ 59.14
Increase$ 2.78$ 2.80$ 2.95
Irrigation
Fixed$ 32.60 $ 34.39 $ 36.20 $ 38.10
Volume (3,000 CF) 55.80 58.87 61.96 65.21
Total$ 88.40$ 93.26$ 98.16$ 103.31
Increase$ 4.86$ 4.90$ 5.15
Variable
Note: Fixed rates shown are for 5/8" meter and would increase with meter size
Page 17Page 18
3
Sewer Revenue Requirement SummarySewer Revenue Requirement Summary
$9,000,000
$8,000,000
$9,000,000
8.00%
$7,000,000
9.00%
$8,000,000
9.00%
$6,000,000
9.00%
$7,000,000
11.00%
$5,000,000
11.50%
$6,000,000
$4,000,000
$5,000,000
$3,000,000
$4,000,000
$2,000,000
$3,000,000
$1,000,000
$2,000,000
$-
$1,000,000
2013201420152016201720182019
Cash Operating ExpensesNew & Existing Debt Service
$-
2013201420152016201720182019
Rate Funded System ReinvestmentTotal Existing Revenue
Cash Operating ExpensesNew & Existing Debt Service
Rate Funded System ReinvestmentTotal Existing Revenue
Total Revenue After Rate Increase
Revenue does not currently cover expenses
Demands are going down; expenses are increasing faster than rate revenue
Phasing in system reinvestment
Excludes costs associated with the Harbor Study Mandate (HSM), which are
funded by a separate surcharge (effective until July 2015)
Page 19Page 20
Sewer Cost of Service FindingsRevenue Requirement Summary -CSO
$2,500,000
Across the Board 2014 RevenueCOSA 2014 Revenue
Commercial /
Commercial
$2,000,000
Municipal
/ Municipal
$1.4M
$1.6M
29%
$1,500,000
32%
$1,000,000
$500,000
$-
2013201420152016201720182019
Residential
Residential
$3.1M
New & Existing Debt ServiceTotal Existing Revenue
$3.4M
62%
68%
Proposed
Existing COSA $ Revenue is currently adequate to cover expenses
Class%
2014 2014 Difference
201420152016
Future rate increase projected due to incremental debt service associated
Residential$ 3,280,867$ 3,234,047$ (46,819)-1.43%10.15%9.63%7.64%
with Phase II of the Combined Sewer Overflow project
Commercial/City/LEKT 1,030,411 1,573,027 542,61652.66%15.79%15.18%12.97%
Total$4,311,278 $4,807,075 $ 495,79711.50%11.50%11.00%9.00%
Page 21Page 22
Revenue Requirement Summary -CSOProposed Sewer/CSO Rates
COSA Rate Adjustments201420152016
Residential10.15%9.63%7.64%
Non-Residential15.79%15.18%12.97%
$2,500,000
0.00%0.00%
14.00%
2014 2015 2016
0.00%
0.00%0.00%
Existing
ProposedProposedProposed
$2,000,000
Residential < 430 CF
General$ 39.90 $ 43.95 $ 48.18 $ 51.86
$1,500,000
CSO 18.00 18.00 18.00 18.00
HSM 4.10 4.10 4.10 -
Total$ 62.00$ 66.05$ 70.28$ 69.86
$1,000,000
Increase$ 4.05$ 4.23$ (0.42)
Residential > 430 CF
General$ 44.30 $ 48.80 $ 53.50 $ 57.58
$500,000
CSO 18.00 18.00 18.00 18.00
HSM 4.10 4.10 4.10 -
$-Total$ 66.40$ 70.90$ 75.60$ 75.58
2013201420152016201720182019 Increase$ 4.50$ 4.70$ (0.01)
Non-Residential
Base Charge
New & Existing Debt ServiceTotal Existing RevenueTotal Revenue After Rate Increase
General$ 11.20 $ 12.97 $ 14.94 $ 16.88
CSO 4.70 4.70 4.70 4.70
HSM 1.15 1.15 1.15 -
Volume Charge (730 CF)
General 23.29 26.96 31.06 35.09
CSO 11.75 11.75 11.75 11.75
HSM 2.56 2.56 2.56 -
Total$ 54.65$ 60.09$ 66.15$ 68.42
Increase$ 5.45$ 6.06$ 2.26
Page 23Page 24
4
Revenue Requirement Summary
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
ELECTRIC
5,000,000
-
COST OF SERVICE
2013201420152016201720182019
Cash Operating ExpensesPower
Existing Debt ServiceRate Funded System Reinvestment
Reserve FundingTotal Existing Revenues
: Comparisons does not include costs or revenues associated with Industrial Transmission.
Note
Increases in BPA wholesale power costs applying pressure on rates
Loads are flat through the forecast period, while expenses are increasing
Increases in power costs are impacting reserve requirements
Variable
Phasing-in rate funded system reinvestment
Page 25Page 26
Revenue Requirement Summary
30,000,000
4.75%
4.75%
4.75%
5.75%
25,000,000
6.50%
6.50%
0.00%
20,000,000
15,000,000
Combined Residential
10,000,000
5,000,000
-
Bill Impacts
2013201420152016201720182019
Cash Operating ExpensesPower
Existing Debt ServiceRate Funded System Reinvestment
Reserve FundingTotal Existing Revenues
Total Revenue After Increase
: Comparisons does not include costs or revenues associated with Industrial Transmission.
Note
Variable
Page 27Page 28
Average Residential Bill ImpactsNext Steps
Continue with rate hearing process
UtilityExisting201420152016
Solid Waste Collection$ 38.05$ 41.14$ 43.50$ 45.97
Optional council work session
Water 36.11 38.10 40.10 42.20
Sewer 44.30 48.80 53.50 57.58
Public hearing
Sewer - HSM 4.50 4.50 4.50 -
Sewer - CSO 20.10 20.10 20.10 20.10 Adoption
Electric 110.67 117.86 125.52 132.74
Total$ 253.73$ 270.50$ 287.22$ 298.59
Monthly Increase$ 16.77 $ 16.72 $ 11.37
Percent Increase6.61%6.18%3.96%
Notes:
Solid Waste Collection - Includes weekly pickup and yard waste
Water - Residential 5/8" meter with 450cf per month
Sewer - Residential > 430cf
Electric - Residential with 1,500 kWh per month
Page 29Page 30
5
QUESTIONS?
Variable
Page 31
6
9/11/2013
Agenda
Industrial Transmission Rate Ordinance
Amendments
Rate Ordinance Intent
Tiered Rate Methodology Acronyms
Utility Advisory Committee
Customer Charges
September 10, 2013
Demand Charges
Load Shaping Charges
Philip D. Lusk
Basic Charges
Deputy Director of Power and
Other Charges
Telecommunication Systems
Department of Public Works & Utilities
City of Port Angeles, WA
Rate Ordinance Intent Rate Ordinance Acronyms
TRM –Tiered Rate Methodology
Update the rate ordinance to be consistent with
BPA’s TRM and BP-14 Power and Transmission
TOCA –Tier One cost allocator
Rate Proceeding
CRHWM –City rate period high water mark
•Charge the Industrial Transmission (IT) customer(s) for
Cu RHWM –Customer rate period high water mark
its share of BPA wholesale power and transmission
Cu CDQ –Customer contract demand quantity
costs as if it were a direct customer of BPA
Cu CSP –Customer system peak
•Charge the IT customer(s) for other costs to provide
Cu AHLH –Customer average heavy load hour
electric service
SSL –System shaped load
•Charge the IT customer(s) for State and City taxes
Fixed Charge Impacts from TOCA Changes
BPA Basic Charges
Customer percentage of City’s monthly BPA
Composite Non-Slice Net Fixed Cost
FY12 TOCA
composite charge, less customer percentage of City’s
Charge/MonthCharge/MonthCharge/Month
BPA non-slice charge
City of Port Angeles1.15889%$2,262,349.13($450,516.16)$1,811,832.97
Distribution sub-allocation0.4463813%$871,411.78($173,529.84)$697,881.94
•
No adjustments during rate period IT sub-allocation0.7125087%$1,390,937.35($276,986.32)$1,113,951.03
Composite Non-Slice Net Fixed Cost
FY13 TOCA
Charge/MonthCharge/MonthCharge/Month
City of Port Angeles1.15889%$2,262,349.13($450,516.16)$1,811,832.97
Distribution sub-allocation0.44638%$871,411.78($173,529.84)$697,881.94
IT sub-allocation0.71251%$1,390,937.35($276,986.32)$1,113,951.03
Composite Non-Slice Net Fixed Cost
FY14 TOCA
Charge/MonthCharge/MonthCharge/Month
City of Port Angeles1.19772%$2,348,792.39($361,194.02)$1,987,598.37
Distribution sub-allocation0.46133%$904,692.58($139,122.36)$765,570.22
IT sub-allocation0.73639%$1,444,099.81($222,071.65)$1,222,028.16
1
9/11/2013
Demand Charges
Fixed Charge Impacts from TOCA Changes
Customer Peak
FY13 Increase FY14 $ Increase FY14 % Increase
Less Cu CDQ
Charge/Month
vs FY12vs FY12vs FY12
Less Cu AHLH
City of Port Angeles$5,159.29$175,765.409.7%
Distribution sub-allocation$1,987.25$67,688.289.7%
IT sub-allocation$3,172.03$108,077.139.7%
Demand Quantity
Demand Quantity is multiplied by demand charge
City/IT Letter Demand Quantity Agreement
No changes to CDQ through contract period
Contract Demand QuantityLoad-Shaping Charges
Customer monthly HLH & LLH loads
Less Cu SSL
Consumption Quantity
Consumption Quantity is multiplied by monthly
load shaping charge
IT FY14 Load-Shaping Allocation (MWh)
Industrial Transmission Basic Charge
35,000
$3,333.33 per month
•
Unchanged from 2013
30,000
•
Consists of direct staff costs and indirect costs
25,000
Percentage of membership fees in public power
groups and other items
20,000
15,000
10,000
5,000
0
Oct-2013Nov-2013Dec-2013Jan-2014Feb-2014Mar-2014Apr-2014May-2014Jun-2014Jul-2014Aug-2014Sep-2014
HLHLLH
2
9/11/2013
Recommendation
Utility Cost-of-Service Update
Forward a favorable recommendation to City Council
to set public hearing
Utility Advisory Committee
September 17, 2013 public hearing
September 10, 2013
October 1, 2013 close public hearing
October 1, 2013 effective date
Policy Should Drive Rates
Average Residential Electric Rate by Utility
Average Residential Water Rate by Utility
$/1500 kWh Excluding Taxes
$/450 CF Excluding Taxes
Port Angeles - Jan 2012$106.50
Port Angeles - Jan 2013$26.84
Port Angeles - Jan 2013
$109.32
Mason County PUD #3
$113.05
Port Angeles - Jan 2012
$26.84
Mason County PUD #1
$117.00
Arlington
$107.00
Dry Creek (fire flow not included)
$27.25
Bainbridge Island
$130.00
Clallam County PUD #1$120.31 SunLand Water District$30.00
Puget Sound Energy$151.66
Clallam County PUD (Gales Addition)
$36.01
Grays Harbor PUD$123.79
Snohomish County PUD
$123.00
Forks$31.72
Tacoma Public Utilities
$110.78
Seattle City Light
$128.11
Sequim
$25.70
WA State Average
$126.75
$0$20$40$60$80$100$120$140$160$180$0$10$20$30$40$50$60
Average Residential Wastewater Rate by Utility
$/450 CF Excluding Taxes
$61.90
Port Angeles -Jan 2012
$64.40
Port Angeles -Jan 2013
$47.15
Clallam County PUD (View Ridge)
$27.93
Forks
$51.82
Sequim
$67.88
Poulsbo
$41.85
Port Townsend
$30.00
Lynnwood
$24.33
Ocean Shores
$73.04
Oak Harbor
$98.44
Kelso
$27.72
Ellensburg
$30.16
Aberdeen
$47.30
2010 AWC Average
$0 $20 $40 $60 $80 $100 $120
3
RESOLUTION NO.
A RESOLUTION of the City Council of the City of Port Angeles,
Washington,authorizing the City Manager into an agreement with the
National Park Service to protect the City's water supply.
WHEREAS,City of Port Angeles has an ongoing desire and need to protect the City's
water supply on behalf of City residents; and
WHEREAS,unanticipated events occurring during the deconstruction by the National
Park Service(NPS) of the Glines Canyon Dam have caused the City to raise concerns about the
security of the City's water supply; and
WHEREAS, NPS and the City have conferred and agreed on several measures to
enhance protection of the City's water supply; and
WHEREAS, the agreements are stated in the attached document.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Angeles as follows:
Section 1. That the City Manager is hereby authorized to execute an Agreement
with the National Park Service in substantial conformity with the agreement attached hereto as
Exhibit A and incorporated herein.
Section 2. That the City Manager is authorized to implement the Agreement.
Section 3. That this Resolution shall take effect and be in full force upon passage
and signatures hereon.
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PASSED by the City Council of the City of Port Angeles at a regular meeting of said
Council held on the day of September, 2013.
MAYOR, Cherie Kidd
ATTEST:
Janessa Hurd, City Clerk
APPROVED AS TO FORM:
William E. Bloor, City Attorney
H:\a ORDINANCES&RESOLUTIONS\RESOLUTIONS 2013107.Resolution to Enter into Agrmt.with NPS.09.04.13.wpd
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Agreement
Purpose of Agreement. The NPS mitigation and operational measures below
are in exchange for COPA's acquiescence in the planned restart of the dam
deconstruction contract including, but not limited to, notching of the Glines
Canyon Dam after the September 15, 2013 restart of the contract. One
purpose of this agreement is the City of Port Angeles (COPA) and the
National Park Service (NPS) mutually desire to protect the City's water
supply. The City intends to avoid operating its Ranney Collector, to the
extent possible, during dam removal and the sediment impact period. The
parties anticipate the initial notching of the dam will occur in October, 2013.
1. NPS will pay COPA the cost of the initial Layne Engineering contract to
evaluate the Ranney Collector, estimated at approximately $56,000. COPA
will timely provide NPS with a copy of the final results of the Layne
Engineering evaluation. COPA agrees that NPS may hold engineering
discussions with the City and its consultants, which includes Layne
Engineering, concerning the final results.
2. NPS has modified the Veolia contract to alter the south overflow channel
to include a basin to remove sediment prior to discharge to the river, and pay
for the modification and installation costs. NPS will provide COPA with the
scope of work issued in the contract modification. NPS estimates this work
will be completed or substantially completed by October 4, 2013.
3. NPS will seek permission to do work in the area of the river channel to
remove the mounded sediment at the entrance to the area of the side channel
where the Ranney Collector is located, and pay the costs for this NPS work.
NPS will provide a photographic delineation of the area in advance for the
City to review and comment.
4. If COPA identifies a problem with the Ranney Collector that may be
attributed to the impacts of dam removal, COPA will request a discussion
with NPS. If so, NPS and COPA will engage in discussions in which the
objective will be for the parties to work in good faith to resolve the problem.
5. NPS and COPA will work together in good faith to identify and evaluate,
alternatives with the objective of maintaining, or if necessary re-
establishing, surface water flows to the Ranney Collector side channel
during the dam deconstruction and sediment impact periods. If the parties
determine implementing actions are necessary, the parties agree to discuss in
good faith further next steps. NPS designates Brian Winter, or his designee,
and COPA designates Craig Fulton, or his designee, to work together in
good faith to execute this paragraph.
6. NPS will accelerate construction of the Temporary Diversion Pump
Facility (TDPF), unless NPS, acting in good faith, reasonably determines it
is not reasonable or prudent to accelerate. In the event NPS determines it is
not reasonable or prudent to accelerate the construction of the TDPF, they
will provide a written explanation to COPA of the reason(s) for the decision.
NPS' current agreement with the contractor working on the TDPF provides
that the work will be completed no later than November 18, 2013. In the
event NPS accelerates the contract, NPS will notify COPA of the earlier
completion date.
7. NPS will use reasonable efforts to accelerate the URS contract relating to
operation of the Port Angeles Water Treatment Plant (PAWTP). At the
conclusion of the URS study the parties agree to determine what, if any,
additional steps are necessary. The parties agree to work together to
complete the initial draft study called for in the URS contract no later than
October 3, 2013. If the parties determine additional steps are necessary, the
parties agree to meet in good faith to further discuss next steps.
8. NPS and COPA will resolve the radiant heater issue at PAWTP, and the
damaged well screen on the Ranney Collector pump, by an NPS payment
not-to-exceed $30,000. The parties agree this payment will constitute final
resolution between the parties on these issues.
9. NPS and COPA agree to have timely engineering discussions both during
the conceptual phase and during design regarding EWF modifications,
consistent with the MOU.
10. Nothing contained in this Agreement shall be construed as binding the
NPS to expend in any one fiscal year any sum in excess of appropriations
made by Congress for the purpose of that fiscal year, or other obligations for
the further expenditure of money in excess of such appropriations. 31 USC
§1341. Further, except as specified in Paragraphs 1, 2, 3 and 8 of this
Agreement, the parties agree that this Agreement does not commit either
party to any additional expenditure of funds.
11. NPS and COPA agree that this Agreement resulted from meetings held
August 28-30, 2013, after COPA invoked the mediation clause contained in
the 2004 Memorandum of Understanding (MOU). This Agreement
expresses the entire agreement of the parties resulting from those meetings
and there are no other oral agreements relating to the subject matter herein.
12. Except as specified in Paragraphs 1, 2, 3 and 8 above, this Agreement
does not constitute a waiver or release of any claim or claims the City may
have now or in the future for breach, default, or failure of NPS, the
Department of the Interior, or any other entity to protect the quality and
availability of Elwha River water for municipal and industrial use from
adverse impacts of dam removal. Further, this Agreement does not constitute
a waiver or release of any claims or defenses the United States may have
now or in the future.
The City of Port Angeles agrees to the terms of this Agreement as evidenced
by the authorized signature below, and as reflected in City Council
Resolution #11-13, dated September 10, 2013.
The National Park Service is authorized to sign this Agreement pursuant to
Secretarial Order No. 3212 and appropriate delegations of authority.
National Park Service
M. Sarah Creachbaum
Superintendent, Olympic National Park, NPS
concur:
Darrin Knapp
Contracting Officer, Denver Service Center, NPS
City of Port Angeles
Dan McKeen
City Manager, City of Port Angeles
attest:
Janessa Hurd, City Clerk