HomeMy WebLinkAboutUAC Special Meeting Minutes 09102024�--
PaR-1ANGELES
WASH I N G T O N U.S
UTILITY ADVISORY COMMITTEE SPECIAL MEETING
Hybrid Meeting
Port Angeles, WA 98362
September 10, 2024
1:30 p.m.
A. Call to Order
Mayor Kate Dexter called the meeting to order at 1:30 pm.
B. Roll Call
UAC Assigned
Councilmembers Present: Mayor Kate Dexter, Councilmember Amy Miller, and Councilmember Lindsey
Schromen-Wawrin (Arrived at 3:01)
UAC Members Present: Robert Kajfasz and Richard French
UAC Members Absent: Chair Mattias Jarvegren, Laura Dodd and Terry Nishimoto
Staff Present: Public Works and Utilities Director Mike Healy, Deputy Director of Light Operation
Ken Haman, Power Resources Manager Gregg King, City Engineer Jonathan
Boehme, Finance Director Sarina Carrizosa, Cost and Capital Accountant
MarySue French, Cost Accountant/Treasurer Jason Jones, Media Services
Technician Mandy Young, Public Works and Management Assistant Jessica
Toth, and Assistant City Attorney Christopher Cowgill
IL Late Items
There were no late items.
111. 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.
IV. Approval of Minutes
Councilmember Miller moved to approve the July 9, 2024, minutes. Member French seconded the
motion.
Mayor Dexter asked if there was unanimous consent, hearing no opposition, the motion
carried 5-0.
V. Cost of Service Study Water and Wastewater
Finance Director Sarina Carrizosa presented the cost -of -service studies for the water and wastewater
utilities. The current rates for these utilities expire on December 31, 2024. In 2019, the Utility
Advisory Committee, Council and Staff reviewed, and the 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
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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.
Rising costs caused by inflation and personnel bargaining agreements as well as increased capacity
needs have caused the rates in these utilities to increase. Proposed rates in the Water and
Wastewater utilities are for two years, ending December 31, 2026. Rates have been averaged over
their prospective two-year cycle for ease of administration and predictability to City customers. Base
rates collected are based on pipe size.
Director Carrizosa presented the Water COSA first.
Discussion followed
Member French asked for clarification on how the rate changes would affect non-taxable entities and
what category they were taxed under. Director Carrizosa clarified there is a municipal rate category
for non-taxable entities and if they are taxable, they are categorized under the commercial rates.
Councilmember Schromen-Wawrin asked for clarification as to why we have different rates for
different user groups, such as between commercial, residential and industrial. Director Carrizosa
clarified that residential rates are on the same pipe size, whereas commercial has different pipe sizes
and commercial usually has heavier demand, so the rates do differ.
Councilmember Schromen-Wawrin commented that rates weren't increased during the pandemic so
as to not burden the customers but that decision should be on a policy level, not dictated by the
COSA. Mayor Dexter confirmed that it was a City Council action not to change the rates during the
pandemic as a policy and not through the COSA. Councilmember Schromen-Wawrin commented
that as a policy we should be consistent with rate increases instead of spiking the rates, then bringing
them down due to customer protest. Director Carrizosa did confirm that staff do try to keep the rate
increases consistent at a rate of 2-3%.
Councilmember Miller asked for clarification on irrigation rate increases as they seem to have the
highest increase and if that is normal or due to no increases during the pandemic as well. Director
Carrizosa stated that the rates for irrigation are customer based and drive the cost increases.
Mayor Dexter asked if the City falls into municipal and irrigation or does the City only fall into
municipal. Director Carrizosa confirmed that the City falls into both municipal and irrigation, but is still
not required to pay certain taxes for irrigation.
Councilmember Schromen-Wawrin suggested we determine the base rate on lot size, not pipe size
and maybe the methodology needs to be reexamined outside of this meeting. Mayor Dexter
confirmed that the methodology discussion should be at a later date.
The Presentation continued with the Wastewater COSA
Member French asked why there is a significant difference for personnel costs between water and
wastewater when staff in both divisions are in the same union. Director Carrizosa explained that staff
are in the same union but the positions are different and as part of the bargaining there were changes
in classifications that occurred that resulted in higher increases for the wastewater personnel.
Member Kajfasz asked for clarification on the increased capacity and how it was addressed in each
the water and wastewater sides. Director Carrizosa explained that the proposed 2025 budget
includes a new position that will be shared between water and wastewater, primarily in water, and it is
built into the rate since it is proposed in the 2025 budget.
Councilmember Miller made comment that the City does have masterful employees and we need to
make sure we're taking care of our people for retention. She asked for clarification for the wastewater
rates between residential and commercial as residential is higher than commercial. Director
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Carrizosa confirmed that the rate changes are due to pipe size and the rate groups aren't compared
to each other, they're compared against the cost of those services for each group.
Mayor Dexter asked if any member would like to make a motion or if further discussion is needed.
Member French moved to forward a favorable recommendation to the City Council for approval of the
2025-2026 rate adjustments in the Water and Wastewater utilities.
Councilmember Miller seconded the motion.
Mayor Dexter asked if there was unanimous consent, hearing no opposition, the motion
carried 5-0.
Vl. Pilot Program — End of distribution line voltage meters
Director Healy and Deputy Director of Light Operations Haman discussed how the City currently
monitors the voltage output at seven (7) substations that supply electricity to all customers serviced
by the City electric utility. Sending voltage to the end of the distribution line, with the current system,
is a guess as to how much voltage to send.
Staff is evaluating how to determine the voltage drop that occurs as you travel away from each
substation. The pilot program will add meters at key areas to enable staff to supply quality voltage at
the end of the 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.
Discussion followed
Councilmember Miller asked if these types of metering will help staff have a quicker response to
outages at peoples' homes? Also, with the outdated metering we currently have will the repair and
maintenance for the new meters be a cost savings?
Director Healy stated that currently the traditional meters have no data collection. Staff can't detect
an outage without going to the property. Through a 100% AMI outfitted system staff will be able to
see exactly what meters are on and which are off. Through computer programs, staff would be able
to generate an outage map which in turn reduces dramatically the calls from customers.
Councilmember Miller asked if this pilot program will move us closer to a 100% AMI system?
Director Healy stated that it doesn't at this point, but it does offer immediate savings. The most
beneficial aspect is that the data will available to the customer to evaluate individual household
usage.
Member Kajfasz asked if these meters are feeding back to just the substations or to the billing
department? Director Healy said these meters will help staff build a mesh network with data
collectors in the field for both electric and water that will provide information through our SCANDA
system, operations center and our billing department.
Councilmember Schromen-Wawrin asked for clarification where the cost savings will come from.
Director Healy confirmed that savings will come from not pushing out more voltage as needed and
from the Bonneville Power Association (BPA).
Mayor Dexter asked if the timing of this pilot project will coincide with ERP. Director Healy said the
benefit of doing this pilot project now is cost savings and becoming more efficient. An entire 100%
AMI system will probably not be plausible until after ERP implentation.
Mayor Dexter asked if any member would like to make a motion or if further discussion is needed.
Member French moved to forward a favorable recommendation to the 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 and save money.
Councilmember Miller seconded the motion.
Mayor Dexter asked if there was unanimous consent, hearing no opposition, the motion
carried 5-0.
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Vll. Next Meeting Date: Joint Meeting with the Planning Commission September 10, 2024 @ 3:00
pm.
Vlll. Adjournment: 2:26 pm.
Mayor Kate Dexter
ll
ica Toth,.ic Works Management Assistant
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