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Home My WebLink AboutUAC Packet - 03/10/2020UTILITY ADVISORY COMMITTEE March 10, 2020 AGENDA Utility Advisory Committee –March 10, 2020 pg. 1 1.Call to Order and Roll Call 2.Approve Minutes 3.Public Comment 4.‘Hot’ Items 5.Contracts and Budgets 6.Legislative Issues 7.Calendar of Actions & Meetings 8.Next Meeting 9.Adjournment APPROVAL OF MINUTES Utility Advisory Committee –March 10, 2020 pg. 2 Approval of Minutes: February 11, 2020 I. Call To Order Mayor Kate Dexter called the meeting to order at 3:02 pm. II. Roll Call UAC Assigned Councilmembers Present: Mayor Kate Dexter, Councilmember Brendan Meyer, Councilmember Lindsey Schromen-Wawrin UAC Members Present: Vice Chair William Atkinson, Mattias Järvegren, Paul Collins UAC Members Absent: Laura Dodd, Raj Jethwa Staff Present: Gregg King, Thomas Hunter, Jonathan Boehme, Shailesh Shere, Marian Bodart, Diana Bagwell, Yvette Nichols, Sarina Carrizosa Others Present: 0 Citizen III. Approval of Minutes Bill Atkinson moved to approve the December 10, 2019 minutes. Lindsey Schromen-Wawrin seconded the motion. Motion carried 6-0. IV. Late Items: None V. Public Comment: None VI. Discussion Items: A. Nomination and Election of UAC Chair & Vice Chair Councilmember Lindsey Schromen-Wawrin nominated Mayor Kate Dexter for UAC Chair position. Motion carried 4-2. Vice Chair William Atkinson nominated for UAC Vice-Chair position. Motion carried 6-0. UTILITY ADVISORY COMMITTEE MEETING City Council Chambers Port Angeles, WA 98362 February 11, 2020 3:00p.m VII. Informational Only Items: None A. UAC New Format - Presentation Director of Public Works, Thomas Hunter, gave a PowerPoint presentation about the new proposed UAC structure to utilize the time and talents of the committee members to help shape the strategic direction of the City’s utilities. Councilmember Lindsey Schromen-Wawrin made a motion to approve the UAC new format as presented by Deputy Director of Public Works, Thomas Hunter, with the clarification that the committee would meet every other month. Paul Collins seconded the motion. Motion carried 6-0. B. Mattias Järvegren Question for Staff Mattias Järvegren had a question for staff regarding the Sewer Overflow Project and the event that occurred in the past week. C. New Committee Member Introduction Councilmember Brendan Meyer was introduced. VIII. Next Meeting Date: March 10, 2020 IX. Adjournment: 3:41 pm ___________________________ __________________________________ Chair Kate Dexter Diana Bagwell, Administrative Specialist II UTILITY ADVISORY COMMITTEE MEETING City Council Chambers Port Angeles, WA 98362 February 11, 2020 3:00p.m PUBLIC COMMENT Utility Advisory Committee –March 10, 2020 pg. 5 Public Comment: 3 minutes Per Person ‘HOT’ ITEMS Utility Advisory Committee –March 10, 2020 pg. 6 No Hot Items Capital Facilities Plan 2019 –2024: Utility Advisory Committee –March 10, 2020 pg. 7 CONTRACTS AND BUDGETS •Electric •Water •Wastewater •Solid Waste •Stormwater Electric Vehicle Charging Stn. Grant Capital Projects Overview 2019 –2024 Capital Facilities Plan & Improvement Plan March 10, 2020 The Purpose of Today’s Meeting •We will review the capital projects from the last Capital Facilities Plan (CFP). •Highlight upcoming changes. •Provide a funding overview. ELECTRIC UTILITY 10 PROJECT TITLE RANKTOTAL CAPITAL FACILITIES PLAN PROJECT 2019 2020 2021 2022 ELECTRIC FUNDING SOURCES: Beg. Cash Balance 5,587,920 9,072,120 3,622,120 3,322,120 Utility Rates 800,000 1,100,000 1,100,000 1,100,000 Reserves 3,850,000 2,200,000 -- FUNDING SOURCES TOTALS 10,237,920 12,372,120 4,722,120 4,422,120 EXPENDITURES : CL0218 Leasehold Improvements A 143,396 65,800 --- CL0414 Construct New Light Ops Building A 6,400,000 400,000 6,000,000 -- CL0916 Replace Laurel Street Substation Switchgear A 500,000 500,000 --- CL0219 Underground Cable Replacement -2019 A 200,000 200,000 --- CL0716 F Street Substation Transformer and Switchgear 1 1,500,000 -1,500,000 -- CL0119 Overhead Reconductoring -2020 2 200,000 -200,000 -- CL0319 Underground Cable Replacement -2020 3 200,000 -200,000 -- CL0217 I Street Substation Switchgear 4 500,000 --500,000 - CL0919 Replace "A" Street Substation Breaker 5 500,000 --500,000 - CL0419 Underground Cable Replacement -2021 6 200,000 --200,000 - CL0519 Underground Cable Replacement -2022 7 200,000 ---200,000 CL0216 City/PUD Service Area Capital Needs 12 400,000 -200,000 200,000 - CL0202 Feeder Tie Hwy 101, Porter to Golf Course Road 13 260,000 ---260,000 CL0313 Pole Replacement Program 14 1,300,000 -650,000 -- CL1019 Underground Cable Replacement -2025 15 200,000 ---- CL0816 College Street Substation Switchgear UF 500,000 ---- EXPENDITURES TOTALS 13,203,396 1,165,800 8,750,000 1,400,000 460,000 WATER UTILITY PROJECT TITLE RANKTOTAL CAPITAL FACILITIES PLAN PROJECT 2019 2020 2021 2022 WATER FUNDING SOURCES: Beg. Cash Balance 3,406,721 3,446,771 2,566,571 2,529,571 Utility Rates 562,000 568,000 574,000 580,000 FUNDING SOURCES TOTALS 3,968,721 4,014,771 3,140,571 3,109,571 EXPENDITURES: WT0118 Ranney Well Roof A 90,333 90,000 --- WT0215 Marine Drive Channel Water Main Crossing Replacement A 83,075 27,450 --- WT0218 Reservoir Repairs A 175,000 175,000 --- WT0419 Decant Facility at Transfer Station -Water Soils Decant Bays A 150,000 25,000 125,000 -- WT0512 East 4th Street Water Main A 405,000 50,000 355,000 -- WT0518 10th Street Water Main (I to N) A 319,966 40,000 --- WT0612 3rd & Vine Street Main A 361,000 50,000 311,000 -- WT0319 Ground Water Test Wells 1 600,000 -150,000 250,000 200,000 WT0212 East 6th Street Water Main 2 368,200 -57,200 311,000 - WT0519 Water Treatment Plant Repairs 3 170,000 -170,000 -- WT0111 Liberty Street Water Main 5 455,609 5,000 --48,000 WT0619 Peabody Reservoir Inlet Pipe Replacement 9 230,000 -230,000 -- CAPWT General Water Equipment R 469,239 59,500 50,000 50,000 50,000 EXPENDITURES TOTALS 3,877,422 521,950 1,448,200 611,000 298,000 WASTEWATER UTILITY PROJECT TITLE RANKTOTAL CAPITAL FACILITIES PLAN PROJECT 2019 2020 2021 2022 WASTEWATER FUNDING SOURCES: Beg. Cash Balance 3,032,490 2,353,924 1,482,424 1,705,924 Utility Rates 783,500 803,500 823,500 843,500 FUNDING SOURCES TOTALS 3,815,990 3,157,424 2,305,924 2,549,424 EXPENDITURES: WW0205 Biosolids Dewatering and Reuse A 1,462,926 50,000 --- WW0308 Pump Station #3 Replacement A 1,042,358 810,000 200,000 -- WW0315 Marine Channel Bridge Sewer Crossing A 89,900 89,900 --- WW0618 2019 Neighborhood Sewer Rehab A 300,000 300,000 --- WW0815 Laurel Street Sewer Separation A 275,000 25,000 250,000 -- WW0715 Oak Street Sewer Separation A 275,000 25,000 250,000 -- WW1218 10th Street Sewer Main A 23,000 3,165 --- WW0519 Decant Facility at Transfer Station -Wastewater Soils Decant Bays A 150,000 25,000 125,000 -- WW0419 WWTP HVAC Replacement 1 200,000 50,000 150,000 -- WW0219 WWTP Digester Cleaning and Repair 2 100,000 -100,000 -- WW0508 Digester Mixing Improvement WWTP 3 600,000 -50,000 150,000 400,000 WW0319 Wastewater Comprehensive Plan 4 300,000 -200,000 100,000 - WW0718 2020 Neighborhood Sewer Rehabilitation 5 300,000 -300,000 -- WW0818 2021 Neighborhood Sewer Rehabilitation 6 300,000 --300,000 - WW0918 2022 Neighborhood Sewer Rehabilitation 7 300,000 ---300,000 WW0516 WWTP Boiler Replacement 8 115,000 ---45,000 CAPWW General Wastewater Equipment R 586,835 84,000 50,000 50,000 50,000 EXPENDITURES TOTALS 6,420,019 1,462,065 1,675,000 600,000 795,000 WASTEWATER UTILITY PROJECT TITLE RANKTOTAL CAPITAL FACILITIES PLAN PROJECT 2019 2020 2021 2022 CSO FUNDING SOURCES: Beg. Cash Balance 1,537,256 1,571,936 1,421,117 1,461,089 CSO Fee 2,301,900 2,301,900 2,301,900 31,919 Interest Earned 30,745 31,439 28,422 29,222 Less: Debt Service (2,297,965)(2,294,158) (2,290,351)(2,286,543) FUNDING SOURCES TOTALS 1,571,936 1,611,117 1,461,089 (764,313) EXPENDITURES: WW0316 CSO 6 and 7 Reconstruction 208,449 ---15,000 WW0117 Francis Street Pigging Bypass 190,000 -190,000 -- EXPENDITURES TOTALS 398,449 190,000 -15,000 STORMWATER UTILITY PROJECT TITLE RANKTOTAL CAPITAL FACILITIES PLAN PROJECT 2019 2020 2021 2022 STORMWATER FUNDING SOURCES: Beg. Cash Balance 1,804,776 2,117,211 2,397,211 1,852,211 Reserves 400,000 400,000 400,000 400,000 Donations/Insurance --- Grants 500,000 -- FUNDING SOURCES TOTALS 2,204,776 3,017,211 2,797,211 2,252,211 EXPENDITURES: DR0213 H Street Stormwater Outfall A 514,463 10,000 500,000 -- DR0215 Francis Street Outfall Repair A 35,000 35,000 --- DR0118 10th Street Catch Basins A 370,000 42,565 --- DR0404 Stormwater at Canyon Edge & Ahlvers 1 1,045,000 -120,000 925,000 - DR0117 Peabody Street Water Quality Project 2 620,000 --20,000 600,000 DR0115 Liberty Street Stormwater Improvement 3 1,135,000 ---135,000 EXPENDITURES TOTALS 3,719,463 87,565 620,000 945,000 735,000 SOLID WASTE PROJECT TITLE RANKTOTAL CAPITAL FACILITIES PLAN PROJECT 2019 2020 2021 2022 SOLID WASTE FUNDING SOURCES: Beg. Cash Balance 2,904,791 2,536,237 2,367,762 2,279,917 Landfill Surcharge* 1,008,800 1,008,800 1,008,800 1,008,800 Utility Rates 50,000 50,000 50,000 50,000 Grants 102,000 372,300 -- Interest Income 58,096 50,725 47,355 45,598 Less: Debt Service (1,196,450)(1,193,000)(1,194,000)(1,194,300) FUNDING SOURCES TOTALS 2,927,237 2,825,062 2,279,917 2,190,016 EXPENDITURES: SW0112 Decant Facility at Transfer Station A 637,354 155,000 457,300 -- SW0117 Landfill Operating Software A 80,000 80,000 --- SW0217 Landfill Flare Replacement A 204,789 156,000 --- EXPENDITURES TOTALS 922,143 391,000 457,300 -- 2020 Active Projects > $25,000 Construction CONTRACT NO. / CFP CONTRACT NAME Amount CON-2019-41 (WW0618)4th & 5th Sewer Rehab 300,000 WW0308 Pump Station #3 Replacement 1,010,000 CON-2019-32 (CL0916)Laurel Substation Electric Switchgear Upgrades 500,000 CL0319 Underground Cable Repalcement 200,000 CL0716 F Street Substation Transformer Switchgear 1,500,000 CL0119 Overhead Reconductoring 2020 200,000 TOTAL 3,449,205 Professional Service Agreements CONTRACT NO. / CFP CONTRACT NAME Amount PSA-2019-42 (TR0414)Peabody Creek/Lincoln Street Culvert Repair 149,942 PSA-2019-11 Water System Modeling Support 84,000 PSA-2019-21 Elwha Water Facility Support 150,000 PSA-2019-57 (SW012)Decant Facility 217,000 PSA-2017-05 PA Landfill Post-Closure Support Services 670,500 CON-2017-37 (CL0414)Light Ops Building Design & Support 419,500 TOTAL 1,690,942 Electric Vehicle Charging Stations Grant Department of Ecology –VW Settlement Grant AQVWEVWP-1921-PoAnPW-00031 March 10, 2020 Background •On Sept 19, 2019, Washington State Department of Ecology announced grant funding to State and local governments to purchase and install electric vehicle charging equipment. •The grant requires: A minimum of three, dual-plug charging stations for a total of six parking spots, including one ADA compliant space. Located at property owned by State or local government, Cover up to 60% of eligible costs (40% match). Project completed by June 30, 2022. Grant Proposal and Award •Port Angeles proposed installing three dual-headed charging stations located in the City Hall parking lot. •Estimated cost would be $48,000 with $28,800 from the grant and $19,200 from City matching funds. •Purchase of equipment, installation, and testing to be completed no later than June 2021. •The stations will be metered. •Rates will be calculated to be competitive while making power purchase, operation and maintenance costs self sustaining. •City awarded $28,800. Pros / Cons PROS: •Build out local electric vehicle(EV) infrastructure. •Support local EV adoption. •Reduce carbon from transportation. •Support EV tourism on the peninsula. •Added revenue for electric utility. •Reduce capital costs for the City. CONS: •$19,200 match needed from City. •Take up seven (7) City Hall parking spaces. •No guarantee that increased number of charging stations = increased number of electric vehicles. Next Steps •Approval from City Council to accept the grant. •Contract with Department of Ecology –bring to City Council at a later date. •Budget amendment for grant match. •Work with Parks to ready parking lot sites. •Purchase equipment. •Install equipment. •Contract for payment processing and reporting. Staff Recommendation Staff recommends the UAC foreword a favorable recommendation to the City Council to accept the Department of Ecology grant AQVWEVWP-1921-PoAnPW - 00031,and to utilize electric reserves not to exceed $19,200. 22 LEGISLATIVE ISSUES Utility Advisory Committee –March 10, 2020 pg. 23 •Clean Energy Transformation Act (CETA) •Update on current legislation (verbal) Clean Energy Transformation Act CETA Milestone Checklist March 10, 2020 What is CETA? The Clean Energy Transformation Act was passed by the Washington State Legislature and signed by Governor Inslee in July 2019. CETA requires all electric utilities to phase out greenhouse gas (GHG) emitting electric generation, both purchased and generated, used in Washington State. Electric generation accounted for approximately 17% of total GHG per the Department of Ecology, Transportation contributes the most GHG, approximately 44%. Currently in the rule-making process. 2021 –January 1Initial Rules Due •Streamline implementation between CETA and Energy Independence Act (19.285 rcw) 2020 –July 31 -and BienniallyEnergy Assistance Reporting Electric utilities must provide to Department of Commerce: •Amount & type of energy assistance •Number & type of households •Amount of money passed through to third parties that administer energy assistance programs 2020 –December 31Integrated Resource Plan (IRP) In addition to the current IRP report: •Explain why resources were chosen and if not renewable, why not •Social cost of greenhouse gas emissions •Utility plans over 10 years to meet GHG neutral by 1/1/2030 and non- emitting / renewable by 1/1/2045 2021 –July 31and Report Biennially Electric utilities must make programs and funding available for energy assistance for low income households: •Amount & type of energy assistance •Number & type of households •Amount of money passed through to third parties that administer energy assistance programs •Assessment of effectiveness of programs & mechanisms to reduce energy burden in the short & long term outreach strategies •Cumulative assessment of energy assistance funding level estimate •A) –60% of current need –or – increasing assistance by 15% by 2030 •B) –90% of current energy assistance need by 2050 2022 –January 1and Every 4 Years Thereafter Clean Energy Implementation Plan: •Proposed interim targets between 2022 and 2030 and between 2030 and 2045 •Specific targets for: •Energy efficiency •Demand response •Renewable energy •Identify specific actions over next 4 years consistent with long-range resource plan and resource adequacy requirements to demonstrate progress •Council must hold public meeting •Adopt the plan •Submit the plan to commerce dept. •Make the plan available to the public 2025 –December 31Eliminate Coal-Fired Resources •Utilities that fail to comply must pay the administrative penalty up to $150 / megawatt- hour 2030 –January 1Greenhouse Gas Neutral (GHG) 4-year Compliance Periods thru 2044 •Non-emitting electric generation •Renewable resources •Up to 20% compliance may use alternative compliance options Electric Utility Must Pursue All: •Cost-effective •Reliable •Feasible conservation •Efficiency resources Failure to Comply •Administrative penalty detailed in Section 9 2045 –January 1100% Non-Emitting Generation / Renewable Resources Demonstrate Compliance Annually •Non-emitting electric generation •Renewable resources Electric Utility must pursue all: •Cost-effective •Reliable •Feasible conservation •Efficiency resources •Demand response Failure to Comply •Administrative penalty detailed in Section 9 What Does this Mean? •The next 1.5 years will be filled with rule-making to determine what CETA requires of electric utilities. •As a full requirement customer of the Bonneville Power Administration (BPA) the City already purchases power that is 97% carbon free. •The Pacific Northwest is on track to loose 4,800 MW (3.8 million homes) of base load by 2028 with the closing of coal generation plants. •CETA requirements will, at a very rough estimate, cause rates to increase approximately 2% a year in addition to any other cost increase. CALENDAR OF ACTIONS & MEETINGS Utility Advisory Committee –March 10, 2020 pg. 35 5/12/20 –Capital Facilities Plan (CFP) 2020-2025 5/12/20 –Future contracts over $25,000 5/12/20 –Electric Ops Building 7/14/20 –Water & Wastewater COSA 7/14/20 -Salish Sea Model 9/08/20 -Per -and Polyfluoroalkyl Substances (PFAS) 9/08/20 –Future Industrial Water/Jacobs Contract 9/08/20 -Public Works Facilities –Corp Yard 11/10/20 -King County Franchise Case –Precedent 11/10/20 –Pavement Index NEXT UAC MEETING Utility Advisory Committee –March 10, 2020 pg. 36 Next UAC Meeting: May 12, 2020 3:00-5:00 PM City Council Chambers, City Hall UTILITY ADVISORY COMMITTEE ADJOURNMENT March 10, 2020 pg. 37