HomeMy WebLinkAboutUAC 05142024 Minutes^htn*PORTANGELESLF!E-
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WASHINGTON, U.S
UTILITY ADVISORY COMMITTEE MEETING
Hybrid Meeting
Port Angeles, WA 98362
INIay 14,2024
3:00 p.m.
I 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
Linds ey S chromen-Wawrin
UAC Members Present:
UAC Members Absent:
StaffPresent:
Robert Kajfasz, Richard French, and Laura Dodd (arrived at 3:04)
Chair Mattias Jdrvegren and Terry Nishimoto
Public Works and Utilities Director Mike Healy, Finance Director Sarina
Carcizosa, Capital Accountant Trina Mckee, Power Resources Manager Gregg
King, Capital Project Engineer Vince Mclntyre, Media Services Technician
Mandy Young, City Attorney William Bloor and Public Works and
Management Assistant Jessica Toth
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.
ilr.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 oppositiono the motion carried 6-0.
V. Capital Facilities Plan2025-2030/Presentation and Recommendation Request
Finance Director Sarina Carrizosapresented 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.
u.
May 14,2024 Port Angeles UAC Meeting Page 3
V, Capital Facilities Plan 2025-2030/Presentation and Recommendafion 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 identifliing funding options.
City Council Directives, approved during the 2018-2023 CapitalFacilities 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 Canizosacommented 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
opporhrnity 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 lhe 2025-2030 Capital Facilities Plan. lf 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? ls 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 2O25-2030 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.
V,l. Next Meeting Date: June 1 1,2024
Vlll. Adjournment: 4:13 p.m.
Mayor Kate Dexter Toth,
blic Works ent Assistant
May 14,2024 Port Angeles UAC Meeting Page 6