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HomeMy WebLinkAbout07092024 UAC PacketJULY 99 2024 City of Port Angeles UTILITY ADVISORY COMMITTEE Agenda This meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City staff have the option to attend the meeting in person, in Council chambers at City Hall located at 321 East 5th Street, Port Angeles, or remotely via telephone or video link. The Chair may determine the order of business for a particular UAC meeting. The agenda should be arranged to best serve the needs and/or convenience of the UAC and the public. The Chair will determine time of break. Hearing devices are available for those needing assistance. The items of business for regular UAC meetings may include thefollowing: A. Call to Order — Regular Meeting at 3:00 p.m. B. Public Comment The Utility Advisory Committee (UAC) desires to allow the opportunity for Public Comment. However, the business of the City must proceed in an orderly and timely manner. Visit https://www.citofpa.us/Live- Virtual-Meetinis to learn how to participate during public comment and or watch the meeting live. Written public comments can be submitted to: gking_ncityfpa.us, comments will not be read aloud but will be made part of the record. Comments should be received by 10:00 a.m. Tuesday, JULY 9, 2024. For audio only please call: 1-844-992-4726 Use access code: 2550 213 5015 Password: YKgiFcgw273 (95443249 when dialing from a phone or video system) Once connected, press *3 to raise your virtual hand if you wish to make a comment or public testimony. You will be notified when it is your turn to speak. This access code is good for the July 9, 2024 meeting only. If you are joining in through the WebEx link: hLtps:Hcilyofpa.webex.com/cilyofpa/j.php?MTID=m855baOeOd5cl 6361 f48430ebfdfOf bfd and wish to make a comment or public testimony, please use the "raise your hand" feature in WebEx. You will be notified when it is your turn to speak. Members of the public may address the UAC at the beginning of any Regular Meeting under "Public Comment." The UAC desires to allow the opportunity for Public Comment. However, the business of the City must proceed in an orderly, timely manner. At any time, the presiding officer, in the presiding officer's sole discretion, may set such reasonable limits as are necessary to prevent disruption of other necessary business. At its most restrictive, Public Comment shall be limited to a total of 15 minutes for the Public Comment period. Individuals may speak for three (3) minutes or less, depending on the number of people May 14, 2024 Port Angeles UAC Meeting Page 1 wishing to speak. If more than 20 people are signed up to speak each speaker may be allocated two (2) minutes. Individuals who are residents of the City or own businesses within the City will be called to speak first, with preference given to those who wish to speak to an item on the meeting's agenda. If time remains, the presiding officer will call other individuals wishing to speak, generally in the order in which they have signed in. If time is available, the presiding officer may call for additional unsigned speakers. Persons speaking shall state their name, whether they reside within the City limits, whether they have any other pertinent connection to the City, and whether they are appearing as the representative of an organization. Excerpts: Council Rules of Procedure Section 12 C. Late Items To be placed on this or future agendas, including any executive session needed during or at the end of the meeting. D. Minutes May 14, 2024 1 Approve E. A Street Basin I Information/ by Lucio Baack, Civil/Utility Engineer II F. Power Resource Plan G. UAC Topics H. Next Meeting Cancel or August 13, 2024 Adjournment May 14, 2024 Port Angeles UAC Meeting Page 2 PUR-T-ANGELES WASH I N G T O N, U.S. UTILITY ADVISORY COMMITTEE MEETING Hybrid Meeting Port Angeles, WA 98362 May 14, 2024 3:00 p.m. L A. Call to Order Mayor Kate Dexter called the meeting to order at 3:01 pm. B. Roll Call UAC Assigned Councilmembers Present: Mayor Kate Dexter, Councilmember Amy Miller, and Councilmember Lindsey Schromen-Wawrin UAC Members Present: Robert Kajfasz, Richard French, and Laura Dodd (arrived at 3:04) UAC Members Absent: Chair Mattias Jarvegren and Terry Nishimoto Staff Present: Public Works and Utilities Director Mike Healy, Finance Director Sarina Carrizosa, Capital Accountant Trina Mckee, Power Resources Manager Gregg King, Capital Project Engineer Vince McIntyre, Media Services Technician Mandy Young, City Attorney William Bloor and Public Works and Management Assistant Jessica Toth IL Public Comment The public is invited to provide written comments via e-mail prior to the meeting, call -in and via WebEx. There was no public comment. III. Late Items There were no late items. IV.. Approval of Minutes Councilmember Schromen-Wawrin moved to approve the April 9, 2024, minutes. Councilmember Miller seconded the motion. Mayor Dexter asked if there was unanimous consent, hearing no opposition, the motion carried 6-0. Y. Capital Facilities Plan 2025-2030/1'resentation and Recommendation Request Finance Director Sarina Carrizosa presented an overview of the Capital Facilities Plan process, reviewed the 2023 completed utility projects, funding sources and expenses, cash flows by fund, new project listings, and next steps for the Capital Facilities Plan for utilities. The utilities discussed included electric, water, wastewater, stormwater, solid waste and medic 1. May 14, 2024 Port Angeles UAC Meeting Page 3 Y. Capital Facilities Plan 2025-2030/Presentation and Recommendation Request - continue Capital Facilities Planning ensures that the City provides adequate public facilities to serve existing and new development, reduces the cost of servicing new development with public facilities, ensures that these facilities will be in place when development occurs, and helps the City maximize our limited resources efficiently by planning for needs, prioritizing and coordinating projects and identifying funding options. City Council Directives, approved during the 2018-2023 Capital Facilities Plan process include little to no rate impact, cash will be set aside equal to the prior years' depreciation, leverage of projects, no new debt, focus on preventable maintenance to increase asset life and the Complete Streets Initiative adopted in December of 2018 under Ordinance #3615. Councilmember Schromen-Wawrin asked how staff is balancing the conflicts between preventative maintenance and maintaining little to no rate impact without shifting the burden to future generations of rate payers? Is staff focused on preventative maintenance in planning or is the focus on zero rate impact? Director of Public Works and Utilities Healy commented that we are doing preventative maintenance to avoid dwindling an asset down to nothing when the cost to replace is six to eight times as much as the preventative maintenance. Director of Finance Carrizosa commented that often there is a balance between completing projects and the funding, but there's also a balance between the capacity to complete the projects that have been funded. The challenge in moving a project to completion can often be due to current staffing levels instead of the funding sources themselves. Mayor Dexter commented that this conversation might be better at the City Council level as a good opportunity to dig into the tensions and challenges to further discuss whether the directives need to be adjusted. Member French stated that preventative maintenance delays or eliminates large capital expenditures in the future, therefore reduces the rate impact in the future. Presentation continued. Member French inquired why bonds are not being utilized for construction of an asset that will be in existence for a substantial number of years instead of burdening the present ratepayers. Mayor Dexter commented that one of the City Council initiatives is not to incur new debt. Councilmember Schromen-Wawrin stated that the council policy of no new debt is because the City reached its maximum debt ceiling. It was easy for council to place the policy in place because the City had no ability to get new debt unless the voters approve it. Councilmember Schromen-Wawrin is in favor of rethinking this policy, but that conversation won't be considered until financial conditions for bonds and loans improve. Presentation continued. May 14, 2024 Port Angeles UAC Meeting Page 4 waste and medic 1. Capital Facilities Planning ensures that the City provides adequate Finance Director Carrizosa asked that the Utility Advisory Committee provide a favorable recommendation to City Council for the approval of the utility portion of the 2025-2030 Capital Facilities Plan. If a recommendation requires further discussion, the option to extend the CFP recommendation was suggested for the next UAC meeting on June 11, 2024. Councilmember Schromen-Wawrin asked how we are paying for the $35.1 million dollar increase within the plan if there are not significantly increasing rates over the next five years? Is staff pursuing grant funding or are we pushing the funding beyond five years? Finance Director Carrizosa responded that yes, staff is actively looking for grant funding which has increased since the last CFP. The increase in project cost also includes unfunded projects. Staff did utilize rate stabilization funding for the larger projects and gradual rate increases over the next five years in certain utilities instead of one large rate increase. Discussion followed. Councilmember Miller asked if we're being aggressive enough with our planning with the Wastewater maintenance. Director of Public Works and Utilities Healy stated that the Wastewater Capacity Study has shown that we need to seriously look at stepping up our dedicated fund towards the wastewater utility to meet the need to not only maintain the system the way it should run, but also minimizing any health risks associated with that particular utility. Finance Director Carrizosa added that it's important to note that the projects outlined within the wastewater comprehensive plan are funded within the CFP at the rates recommended by our consultant. Discussion followed. Councilmember Schromen-Wawrin stated that the industrial waterline that runs from the gravity feed out to the McKinley papermill runs along the beach; it's not the right location for the City to run an industrial waterline. He'd love to see planning to move that waterline off the beach. Member French stated he would support an analysis of the waterline and future options. Mayor Dexter asked if anyone would like to make a motion regarding the staff recommendation or if this discussion should continue to the next UAC meeting on June 11, 2024. Member Kajfasz made the motion for the Utility Advisory Committee provide a favorable recommendation to City Council for approval and adoption of the preliminary 2025-2030 Capital Facilities Plan. Councilmember Schromen-Wawrin seconded the motion and proposed an amendment to include a project to analyze options for industrial waterline sighting. Member French seconded the amendment. Mayor Dexter asked if there was any committee discussion on the proposed amendment? Mayor Dexter asked if there was unanimous consent, hearing no opposition, the amendment to the motion carried 6-0. Mayor Dexter spoke to the amended motion for the Utility Advisory Committee to provide a favorable recommendation to City Council for approval and adoption of the preliminary 2025-2030 Capital Facilities Plan and to include a project for analysis of the industrial waterline placement. Mayor Dexter asked if there was unanimous consent, hearing no opposition, the motion carried 6-0. May 14, 2024 Port Angeles UAC Meeting Page 5 Vl. Future UAC Topics Councilmember Schromen-Wawrin asked that future meeting topics include a discussion on the recent direction from the Federal Government on the greenhouse gas reduction fund and if there are any opportunities that staff have seen to utilize that fund, discussion on looking at community solar projects, and discussion on looking at how we're utilizing direct pay and those new mechanisms for funding infrastructure projects. VII. Next Meeting Date: June 11, 2024 Vlll. Adjournment: 4:13 p.m. Mayor Kate Dexter Jessica Toth, Public Works Management Assistant May 14, 2024 Port Angeles UAC Meeting Page 6 PMR-T-ANGELES CITY COUNCIL WASH I N G T O N, U.S. MEMO Date: July 9, 2024 To: Utility Advisory Committee From: Mike Healy, Director Public Works & Utilities Subject: A Street Basin Project Summary: Port Angeles staff will provide a briefing on the capital project WW0222 — A Street Basin. . Funding: 2025 - $120,000 and 2030 - $2,085,000 Recommendation: Information Only Background / Analysis: Port Angeles engineering staff will provide a briefing on the A Street basin project. This project was approved by the UAC and the City Council om the 2025-2030 Capital Improvement Plan earlier this year. This project includes capacity improvements to the collections main along A Street from 17th/18th Street to 8th Street. Highlighted as a capacity limitation in the 2020 Wastewater Comprehensive Plan. First phase of the project funded for 2030, second phase in 2031. The Briefing is informational only. Funding Overview: 2025 - $120,000 2030 - $2,085,000 "A" Street Basin Wastewater Capacity Improvements Pre -Design Planning b - _ � - �, _ � / �"7Vs'� Imo•. July 9, 2024 - Utility Adv_isd* - rmmittee Update 71 Lucio Baack Civil Engineer III Original Western Urban Growth Area Study(2005) • Basin 1: Primarily Industrial Zoning South of 101(already annexed) • Currently serviced by Pump Station 11 on Eclipse Industrial Pkwy • Inflow into the A Street Basin Basin 2: Currently zoned as a mix of Low Density, Very Low Density, with some smaller areas of Industrial Zoning • No City sewer facilities • Two potential future inflow points • Basin 3: Currently zoned as Low Density, with a small area of Urban Neighborhood Commercial • No City sewer facilities • Inflow into the A Street Basin Jill PS01 ( PS17 PS14 ° PS04 . u PS08 y A%4 PS02 y PSOS } CdurNay Rd -des � n Wo`.n., �. . J � ' �. q • h� ,•Y � 1 � Psi Mwy �U` La • �^'a—_ _ MSS �4 \ � �--�� �, . oa „wY,o, " us Hwy }O1 + lUl".� .an -• o' C 'jam fF �'� us,+wylet AURY eRd + �awln an-vlrrri 'w� 04V � PS09 Melron Ito v,i.aan�e LP , 1 . i - �WA- Ad 1�S NMcn.�&Viiii Rd ! A;016 Rd - �+t,o 1 PS06 �b.,.e nd •• � m ama Rd 1 - — R E44l<KB i ¢y amrun avows WY 0� YI°e'q. 2 YRo' �� k J` p p T"—a Ln IMPROVEMENTS Upsize sewer line to 18' ® Upsize forcemain to 20" Remove 1/1 from park QUpslze sewer line © Remove 1/1 from manhole OUpsize sewer line QUpsize sewer line Large elevation drop, fix slope WUGA The A Street project Pop rAntwic includes the following components: L Project Service Area e � t b � i J ti •rr AW Wes MIN • Increase sanitary sewer capacity, reduce inflow and infiltration, and replace a failing 1929-1958 era infrastructure. • Gravity sewer main between 18t" and 8t" Street are undersized for future growth or currently over capacity. • Increase capacity of 4,000 LF of 8 to 12-inch clay and concrete sanitary sewer with a 16 to 20-inch PVC. • The project will replace 17 brick manhole structures originally constructed from 1929 -1958. • In addition to updating 20 curb ramps to comply with ADA requirements. Expanding Capacity for Future Growth &N "Pursuing Housing for All" Land Use Code The A Street Capacity Improvement aims to add sewer capacity and improving resiliency to an area which contains 25% of City utility customers, and the entire Western Urban Growth Area. • A street Improvements will have the potential to serve an additional 11400 residential units. • Small scale I&I projects will be utilized to free up peak flow capacity in the sanitary sewer system for infill development, until the A Street Improvements can be constructed. Anticipated Schedule Next Steps: • Wastewater/Stormwater flow metering to refine the Hydraulic Model (August —December 2024). • Professional Surveying Services Contract to kick off the design effort (January 2025). • Confirmation of growth projections with DCED /confirm assumptions for design (2025). • 60% Design funded in the 2025 CFP (January— December 2025). oo4 Pursue Grant funding construction (Ongoing) �P-Q-R-TANGELES CITY COUNCIL WASH,rQ I N G T O N, U.S. MEMO Date: July 9, 2024 To: Utility Advisory Committee From: Mike Healy, Director Public Works & Utilities Subject: Electric Utility 2024 Power Resource Plan Summary: The City's electric utility is required by statute to provide a biennial update to its Power Resource Plan. Updates to the Plan were submitted to, and approved by, Council biennially beginning in 2008. The process to update the plan requires public notice and hearing prior to approval for the 2022 Plan. . Funding: N/A Recommendation: Provide a favorable recommendation that the City Council conduct the public hearing and pass the attached resolution approving the proposed Electric Utility 2024 Power Resource Plan. Background / Analysis: The electric utility is required, by Chapter 19.280 RCW, to prepare an updated Resource Plan (Plan) and submit it to the Washington Department of Commerce by September 1, 2022. While the Plan does not need to be an elaborate document, at a minimum the Plan is required to include: • Current City electric power usage • Future City electric power usage projections for five- and ten-year usage • Plans for providing customers with power for the next ten years • Where the power is purchased or generated • Explain how the City will comply with the Clean Energy Transformation Act (CETA). This Plan must be updated every two years and has been approved by the City Council starting in 2008 and last approved in 2022. It is intended to ensure that electric utilities have arranged for adequate resources to meet the needs of their customer base. The City will amend this plan as needed when future needs change. For example, if alternative power resource opportunities are identified or if the City changes the source of power generation (provided the change is within the scope of Port Angeles' power agreement with BPA). The City is a contractually bound full -requirements customer of the Bonneville Power Administration (BPA) through 2028; the Plan was generated by BPA using typical growth rates and the City's current and anticipated future resource mix. BPA can provide all power required to the end of the current purchase power agreement in 2028. Contract discussions and calculations show that BPA can continue to provide all power required in a combination of Tier 1 and Tier 2 power in the next power purchase period. The Power Resource Plan will be made available to the public in mid -July 2024. The Plan will be reviewed at the Utility Advisory Committee July 9, 2024 meeting. Staff ask that the UAC provide a favorable recommendation that the City Council conduct the public hearing approving the proposed Electric Utility 2024 Power Resource Plan. Funding Overview: f►//_1 G. Calendar of Actions and Meetings Future Discussion Topics ■ BPA Provider of Choice Contract — updates ■ Discussion on resent direction from the Federal Government on the greenhouse gas reduction fund and if there are opportunities that staff have seen to utilize that fund ■ Discussion on community solar projects, ■ Discussion on looking at how Port Angeles is utilizing Direct Pay and those new mechanisms for funding infrastructure projects. May 14, 2024 Port Angeles UAC Meeting Page 7 H. Next UAC Meeting August 13, 2024 3:00 — 5:00 PM This meeting will be conducted as a hybrid meeting. May 14, 2024 Port Angeles UAC Meeting Page 8