HomeMy WebLinkAboutUAC Special Meeting Agenda 09102024
SEPTEMBER 10, 2024
City of Port Angeles UTILITY ADVISORY COMMITTEE SPECIAL Agenda
AMENDED
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
th
located at 321 East 5 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 the following:
A. Call to Order – Special Meeting from 1:30 p.m. to 3:00 p.m.
The agenda of the special meeting has been amended to include includes the following:
Minutes July 09, 2024 | Approve
Cost of Service Study Water and Wastewater | Presentation by Sarina Carrizosa, Finance
Director. Action may follow.
End of Distribution Line Voltage Meters | Committee and staff siscussion with Ken Haman,
Deputy Director of Light Operations and Mike Healy, Director of Public Works and Utilities
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.cityofpa.us/Live-
Virtual-Meetings to learn how to participate during public comment and or watch the meeting live. Written
public comments can be submitted to: gking@cityofpa.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, SEPTEMBER 10, 2024.
For audio only please call: 1-844-992-4726
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You will be notified when it is your turn to speak. This access code is good for the SEPTEMBER 10, 2024
meeting only.
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September 10, 2024 Port Angeles UAC Meeting Page 1
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
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 July 09, 2024 | Approve
E. Cost of Service Study Water and Wastewater |Presentation bySarina Carrizosa, Finance Director
F. End of DistributionLine Voltage Meters | Discussion by Ken Haman, Deputy Director of Light
Operations and Mike Healy, Director of Public Works and Utilities
G. Calendar of Action and Meeting Topics
Adjournment
September 10, 2024 Port Angeles UAC Meeting Page 2
UTILITY ADVISORY COMMITTEEMEETING
Hybrid Meeting
Port Angeles, WA 98362
July9, 2024
3:00 p.m.
I.A. Call to Order
Chair Mattias Järvegren called the meeting to order at 3:10 pm.
B.Roll Call
UAC Assigned
Councilmembers Present:Mayor Kate Dexter, Councilmember Amy Miller, and Councilmember Lindsey
Schromen-Wawrin
UAC Members Present:Richard French, Chair Mattias Järvegren, and Laura Dodd
UAC Members Absent: Terry Nishimoto and Robert Kajfasz
Staff Present: Public Works and Utilities Director Mike Healy, Finance Director Sarina
Carrizosa, City Engineer Jonathan Boehme, Power Resources Manager Gregg
King, City Attorney William Bloor and Utility Engineer Lucio Baack.
II.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
A discussion on a joint UAC/Planning Commission meeting was added.
IV.Approval of Minutes
Member Richard French moved to approve the May 14, 2024, minutes. Mayor Dexter seconded the
motion.
Chair Järvegren asked if there was unanimous consent, hearing no opposition, the motion
carried 6-0.
V.A Street Basin Wastewater Capacity Improvements
Lucio Baack, Utility Engineer III, presented plans for improving the A Street Basin area which includes
the Western Urban Growth Area (WUGA) and other City areas in the western part of the City. The
purpose of the project is to expand capacity for future growth improve resiliency in an area that
contains 25% of the City’s customers. The project is anticipated to last two years and is seeking
further funding for grant construction. Discussion followed.
September 10,2024Port Angeles UAC MeetingPage 3
VI. Electric Utility 2024 Power Resource Plan
Gregg King, Power Resource Manager, went over the 2024 Resource Plan. The plan is required
every other year and is required by the state to ensure future resources are available to meet
projected loads. The current plan assumes the City will remain a load following Bonneville Power
Administration (BPA) customer for wholesale power purchases and that loads remain relatively flat
with a small amount of increase in residential loads. As a BPA load following customer, any future
loads that exceed the City’s Tier 1 amounts are projected to be served by BPA as a Tier 2 load.
Richard French moved the UAC to provide a favorable recommendation to the City Council to provide
the necessary public hearing to approve the proposed Electric Utility 2024 Power Resource Plan.
Amy Miller and Mayor Dextor made simultaneous seconds.
Chair Järvegren asked if there was unanimous consent, hearing no opposition, the motion
carried 6-0.
VII. Late Item: Joint UAC/Planning Committee Meeting
Mike Healy, Director of Public Works and Utilities, discussed the request from the Planning
Committee to hold a joint meeting. A proposal to hold the meeting in September was proposed. The
UAC asked for an agenda from the PC and possible dates.
VIII. Future UAC Topics
Reviewed possible future UAC topics. Electric storage and community storage were noted.
IX. Next Meeting Date: August 13, 2024
X. Adjournment: 4:23 p.m.
______________________________________ ________________________________________
Chair Mattias Järvegren Jessica Toth,
Public Works Management Assistant
September 10, 2024 Port Angeles UAC Meeting Page 4
E. Cost of Service Studies
Presentation by Sarina Carrizosa, Finance Director
September 10, 2024 Port Angeles UAC Meeting Page 5
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Date: September 10, 2024
To: Utility Advisory Committee
From: Sarina Carrizosa, Finance Director
Subject: Proposed Adjustments to the 2025 Utility Rates
Summary: In 2019, the Utility Advisory Committee, Council and Staff reviewed and City Council
ultimately approved Cost of Service Methodologies for each utility with the intent that these
methodologies would be used for setting future utility rates. Presented in this memo are the proposed
2025-26 rates for theWater and Wastewaterutilitiesfor theUtility Advisory Committee’s(UAC)
consideration. These rates were calculated using the approved Cost of Service (COSA) methodologies.
Funding: The approval of the proposal presented will not increase expenditures, rather rate changes will
generate the required revenue to meet budgeted expenditures and fund debt requirements. Rate changes
differ by utility and are explained further in this memo and the corresponding attachments.
Recommendation: Staff recommends the Utility Advisory Committee forward a favorable
recommendation to the City Council for the approval of the 2025-2026 rate adjustments in the Water and
Wastewater utilities.
Background / Analysis:
The Water and Wastewater utility rates will expire December 31, 2024. In 2019, the Utility Advisory
Committee (UAC), Council and Staff reviewed, and City Council ultimately approved the Cost of Service
(COSA) methodologies for each utility with the intent that these methodologies would be used for setting
future utility rates. Principles used when creating the COSA methodologies include the following: rates
must be cost based, meet revenue requirements of the utility, be easy to administer, be just, reasonable,
fair and equitable and be affordable. The rates that are being presented utilize the principles and
methodologies to determine true and fair costs associated with each utility and the associated customer
classes.
Rising costs caused by inflation and personnel bargaining agreements as well as increased capacity needs
have caused the rates in these utilities to increase.Staffremainscommitted to keeping rates as low as
possible and has heavily scrutinized the budget to ensure only essential funds to continue safe and
efficient practices are included in the COSA. The attachments to this memo detail the proposed changes
for each customer class and include an example of customer usage ranges and the effect these proposed
utility rate changes would have on each.
Proposed rates in the Water and Wastewater utilities are for two years, ending December 31, 2026. Rates
have been averaged over theirrespective two-year cycle for ease of administration and predictability to
City customers.
Funding Overview:
The approval of the proposal presented will not increase expenditures, rather rate changes will generate
the required revenue to meet budgeted expenditures and fund debt requirements. Rate changes differ by
utility and are explained further in this memo and the corresponding attachments.
Attachments:
2025-2026 Recommended Utility Rates for Water and Wastewater.
Examples of rate changes by customer class.
Water Rates – 2025 Budget
WATER UTILITY
One Residential Rate-w disc
2025/26 vs 2023/24
Residential2020 Rate2023/24 Avg2025/26 AvgDifferencePercent
Billing VolumesBase
5/8" 7,306 38.50 40.86 46.88 6.02 14.7%
25% Discount7228.88 30.64 35.16 4.52 14.8%
35% Discount13225.03 26.56 30.47 3.91 14.7%
Usage
Block 1 (0-1,000 cf) 36,680,121 0.01976 0.02521 0.02590 0.000692.7%
Block 2 (1,001-1,500 cf) 5,798,844 0.02498 0.03186 0.03273 0.000872.7%
Block 3 (1,501+) 4,165,452 0.03012 0.03841 0.03946 0.001052.7%
25% Discount 340,091 0.01522 0.01941 0.02162 0.0022111.4%
35% Discount 540,367 0.01319 0.01682 0.01874 0.0019211.4%
Commercial2020 Rate2023/24 Avg2025/26 AvgDifferencePercent
Base
5/8"55941.91 45.46 51.60 6.14 13.5%
3/4"11741.91 45.46 51.60 6.14 13.5%
1"19372.84 77.99 89.35 11.3614.6%
1.5"103124.40 132.21 152.26 20.0615.2%
2"108186.27 197.27 227.75 30.4915.5%
3"24351.26 370.76 429.07 58.3115.7%
4"9 536.88 565.94 655.55 89.6115.8%
6"4 1,052.47 1,108.09 1,284.66 176.56 15.9%
8"2 1,671.18 1,758.68 2,039.58 280.91 16.0%
Usage
All 27,388,524 0.020350 0.025960 0.028000 0.002047.9%
Municipal2020 Rate2023/24 Avg2025/26 AvgDifferencePercent
Base
5/8"2840.01 43.41 49.26 5.85 13.5%
3/4"6 40.01 43.41 49.26 5.85 13.5%
1"1269.53 74.48 85.29 10.8114.5%
1.5"2 118.76 126.25 145.34 19.0915.1%
2"17177.82 188.38 217.40 29.0215.4%
3"2 335.33 354.05 409.56 55.5115.7%
625.74 85.3115.8%
4"2 512.53 540.43
Usage
All 1,134,156 0.019423 0.024785 0.026720 0.001947.8%
Federal Non Taxable2020 Rate2023/24 Avg2025/26 AvgDifferencePercent
Base
5/8"1 38.95 42.19 48.11 5.92 14.0%
3/4"3 38.95 42.19 48.11 5.92 14.0%
1"3 67.70 72.37 83.30 10.9315.1%
1.5"6 115.62 122.68 141.95 19.2715.7%
2"11173.12 183.05 212.34 29.2816.0%
3"0 326.46 344.04 400.02 55.9816.3%
4"0 498.97 525.15 611.17 86.0216.4%
6"2 978.16 1,028.24 1,197.69 169.45 16.5%
8"0 1,553.19 1,631.94 1,901.51 269.56 16.5%
Usage
All 1,507,668 0.018910 0.024090 0.026100 0.002018.3%
Irrigation2020 Rate2023/24 Avg2025/26 AvgDifferencePercent
Base
5/8" 45 35.26 37.08 42.73 5.64 15.2%
3/4" 11 35.26 37.08 42.73 5.64 15.2%
1" 23 64.80 68.15 78.76 10.6115.6%
1.5" 10 114.02 119.92 138.81 18.8915.8%
2" 23 173.09 182.05 210.87 28.8215.8%
3" 1 330.59 347.72 403.03 55.3115.9%
4" 2 507.78 534.10 619.21 85.1115.9%
Usage
All 5,150,585 0.019423 0.024785 0.026720 0.001947.8%
*2021/2022 averages were never adopted. 2020 rates were in place for 3 years.
Water Utility Rates Comparison - Residential
2023-20242025/2026 AveragedComparison
% 2025/26
Total Total 2025/2026
CustomersBase/TieredUsageBase/TieredUsageAVG chg
Residential - 5/8 lineUsageMonthlyMonthlyAvg vs
per RateChargesRateChargesfrom
ChargesCharges2023/24
Category2023/24
Low Usage 25025.4%$40.866.30 $47.16$46.886.47 53.35 6.1913.1%
50038.5%$40.8612.60 $53.46$46.8812.95 59.83 6.3711.9%
75022.2%$40.8618.90 $59.76$46.8819.42 66.30 6.5410.9%
Medium Usage 1,1508.3%$40.8629.98 $70.84$46.8830.80 77.68 6.849.7%
High Usage 7,5000.01%$40.861,246.42 $1,287.27$46.881,253.15 1,300.03 12.761.0%
Average Cost Increase of highest usage categories (weighted) - 86% of Customers$ 6.36
Wastewater – 2025 Budget
WASTEWATER UTILITY
By Pipe Size Rate w Discounts
2025/26 vs 2023/24
Residential2020 Rate2023/24 Avg2025/26 AvgDifferencePercent
Billing VolumesBase
Regular (avg) 7,306 33.90 35.76 36.60 0.84 2.4%
5/8" 6,770 33.34 34.96 35.80 0.84 2.4%
3/4"49041.76 43.98 44.84 0.86 2.0%
1"4258.60 62.02 62.91 0.89 1.4%
1.5"4 100.71 107.12 108.10 0.98 0.9%
CSO All pipe sizes 13.92 13.92 13.92 -0.0%
25% Discount7225.00 26.22 26.85 0.63 2.4%
CSO 10.26 10.26 10.26 -0.0%
35% Discount13221.67 22.72 23.27 0.55 2.4%
CSO 8.89 8.89 8.89 -0.0%
Usage
Regular 43,594,548 0.04243 0.04910 0.05180 0.002705.5%
CSO 0.01543 0.01540 0.01540 -0.0%
25% Discount 472,791 0.03183 0.03685 0.03880 0.001955.3%
CSO 0.01137 0.01140 0.01140 -0.0%
35% Discount 1,743,717 0.02759 0.03195 0.03365 0.001705.3%
CSO 0.00985 0.00990 0.00990 -0.0%
Commercial2020 Rate2023/24 Avg2025/26 AvgDifferencePercent
Base
Avg111973.72 74.40 75.31 0.91 1.2%
5/8"55933.34 34.96 35.80 0.84 2.4%
3/4"11741.76 43.98 44.84 0.86 2.0%
1"19358.61 62.02 62.91 0.89 1.4%
1.5"103100.72 107.13 108.10 0.97 0.9%
2"108151.25 161.25 162.32 1.07 0.7%
3"24286.01 305.59 306.92 1.33 0.4%
4"9 437.61 467.96 469.59 1.63 0.3%
6"4 858.72 919.00 921.45 2.45 0.3%
1,463.68 3.43 0.2%
8"2 1,364.06 1,460.25
-
CSO 13.68 13.68 13.68 -0.0%
Usage
All 0.04243 0.04910 0.05180 0.002705.5%
CSO 0.01520 0.01520 0.01520 -0.0%
Municipal2020 Rate2023/24 Avg2025/26 AvgDifferencePercent
Base
Avg6986.85 91.03 92.07 1.04 1.1%
5/8"2832.46 33.84 34.70 0.86 2.5%
3/4"6 40.65 42.57 43.46 0.89 2.1%
1"1257.05 60.03 60.97 0.94 1.6%
1.5"2 98.05 103.69 104.77 1.08 1.0%
2"17147.24 156.07 157.32 1.25 0.8%
3"2 278.43 295.77 297.46 1.69 0.6%
4"2 426.02 452.93 455.11 2.18 0.5%
CSO 13.68 13.68 13.68 -0.0%
Usage
All 0.04131 0.04750 0.05015 0.002655.6%
CSO 0.01520 0.01520 0.01520 -0.0%
Federal Non Taxable2020 Rate2023/24 Avg2025/26 AvgDifferencePercent
Base
5/8"1 29.94 31.69 32.76 1.06 3.4%
3/4"3 37.50 39.87 41.03 1.15 2.9%
1"3 52.63 56.22 57.56 1.34 2.4%
1.5"6 90.44 97.11 98.90 1.80 1.8%
2"11135.82 146.17 148.51 2.33 1.6%
3"0 256.82 277.00 280.79 3.79 1.4%
4"0 392.96 424.19 429.61 5.42 1.3%
6"2 771.10 833.04 843.01 9.97 1.2%
8"0 1,224.87 1,323.66 1,339.08 15.421.2%
CSO 13.00 13.00 13.00 -0.0%
Usage
All 0.03810 0.04455 0.04885 0.004309.7%
CSO 0.01398 0.01420 0.01420 -0.0%
*2021/2022 averages were never adopted. 2020 rates were in place for 3 years.
Wastewater Utility Rates Comparison
2023-20242025/2026 AveragedComparison
%
Total Total 25/26
CustomersBase/TieredUsageBase/TieredUsageAVG vs
Residential - 5/8 lineUsageMonthlyMonthlyAVG vs
per RateChargesRateCharges2023/24
ChargesCharges23/24
Category
Low Usage 250 25.4%$48.8816.13 $65.00$49.7216.80 66.52 1.522.3%
500 38.5%$48.8832.25 $81.13$49.7233.60 83.32 2.192.7%
750 22.2%$48.8848.38 $97.25$49.7250.40 100.12 2.872.9%
Medium Usage 1,150 8.3%$48.8874.18 $123.05$49.7277.28 127.00 3.953.2%
High Usage 7,500 0.01%$48.88483.75 $532.63$49.72504.00 553.72 21.094.0%
Average Cost Increase of highest usage categories (weighted) - 86% of Customers$ 1.87
F. End of Distribution Line Voltage Meters Study
By Ken Haman, Deputy Director of Light Operations and
Mike Healy, Director Public Works & Utilities
September 10, 2024 Port Angeles UAC Meeting Page 7
Date: September 10, 2024
To: Utility Advisory Committee
From:Mike Healy,Director of Public Works & Utilities
Subject: Pilot Program -End of distribution line voltage meters
Summary: The purpose of this memo is to obtain a favorable recommendation from the Utility
Advisory Committee to City Council for approval of an end of distribution line voltage meter
reading pilot program. This program aims to provide an improved monitoring system to ensure
residents and customers are supplied with satisfactory safe levels of voltage from the City
electric utility.
Funding:Information Only
Recommendation: Staff requests that the Utility Advisory Committee provide a favorable
recommendation to City Council for approval of an end of distribution line voltage metering
pilot program to better serve the residents and customers of the City of Port Angeles.
Background / Analysis:
The City currently monitors the voltage output at the seven (7) substations that supply electricity to all
customers serviced by the City electric utility. Load Tap Changers (LTC) are installed at each substation to
monitor the supplied voltage provided to customers. The voltage supplied to our substations by Bonneville
Power Administration (BPA) can fluctuate and the LTCs adjust accordingly to provide continued service to
customers.
Staff is trying to evaluate and determine the voltage drop that occurs as you travel away from each
substation. At this time, the only way to determine the voltage at the end of a distribution line is to send
staff to the end of the line with a voltmeter.
This pilot program will add meters at key areas to enable staff to supply quality voltage at the end of
distribution lines and adjust voltage supply when necessary. The system will also alert staff to customer
outages and will allow for implementation of an Outage Management System in the future.
Funding Overview: Information Only
September 10,2024Port Angeles UAC MeetingPage 8
G. Calendar of Actions and Meetings
List of Proposed 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.
September 10, 2024 Port Angeles UAC Meeting Page 9