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HomeMy WebLinkAboutMinutes 01/07/1991UTILITY ADVISORY COMMITTEE Port Angeles, Washington January 7, 1991 Call to Order: Chairman Hallett called the meeting to order at 4:40 p.m. II. Roll Call: Members Present: Thomas Hunt. Jim Hallett, Mike Lemon, Jeff Rosbach and Members Absent: Richard Wight Staff Present: B. Titus, C. Knutson, B. Upton and G. Leaf. III. Approval of Minutes of November 29, 1990 Meeting: The minutes of November 29, 1990 were approved as written. IV. Discussion Items: Consideration of Adjustment to Electrical Rate Schedule - Time of Day Meters: City Light Director Titus reviewed circumstances of the recent decision to split up the General Service rate into two separate classes and begin charging for all kilowatts (kW) of demand. The result was a unified concern expressed by area Churches due to rate increases passed on by virtue of having demands at the highest levels on Sundays. Director Titus subsequently proposed that the City offer time- of-use demand meters to all General Service Demand customers and eliminate demand charges during Sundays and 10:00 p.m. to 7:00 a.m. on the remaining days. This timeframe would match that used by the Bonneville Power Administration which does not charge for demand during these hours. Director Titus noted this change would reduce current charges by more than 50% for a net decrease of 10-15%. Most of the Churches contacted have reacted positively to this proposal. In addition, Director Titus indicated there are approximately five high school accounts and possibly the Juvenile Center account wishing to use the time-of-use demand meters. Director Titus explained the willingness of the customers to pay for the meters. Further, because of the recent increase passed on to these customers, the city would be willing to assess 50% of the meter demand rate until the time the actual demand has been determined. Adjustments will be made at that time. Councilman Lemon moved to recommend to City Council the adoption of Ordinance revisions as outlined above concerning the time-of-use demand meters. The motion was seconded by Councilman Hallett and carried unanimously. Consideration of Exemption of Electrical Facilities from Bid Limits: City Light Director Titus reviewed State law which currently limits municipal employees from participating in any projects where the total cost of labor, equipment and materials exceeds the amount of $30,000. Because of such a restriction, city Light is unable to work on projects of any magnitude other than maintenance. This problem came to light during discussions with the School District concerning the tennis courts as a joint City/School District effort. Director Titus further explained that first class cities with populations in excess of 20,000 have no such limits on projects associated with electrical distribution and generating systems. The City Light Department would like to be exempted from the $30,000 restriction and, as such, it is recommended that consideration be given for City Light to contact the other municipalities (15) in this situation to obtain support in seeking such an exemption. It should be noted that of the 15 other municipalities, Port Angeles is the largest city with a population of less than 20,000. The Association of Washington cities might also be helpful in this effort. Lengthy discussion followed about such a change allowing the City Light utility to do more in-house work and also reduce the cost of larger projects by virtue of doing the work in- house. Some concern was expressed about the possibility of doing work normally given to contractors and also about the possibility of adding employees for this purpose. However, Director Titus noted it is intended to fully maximize the work force and equipment presently available and to be able to participate in joint ventures such as that cited with the School District. Further lengthy discussion concerned a "fall-back" position in the event the Legislature was not supportive of this change. Current limits on PUDs involve $80,000 per total project cost plus any one item of equipment. It was suggested this be adopted for a "fall-back" position. A motion was made by Jeff Rosbach that a recommendation be made to the City Council wherein an exemption would be sought from the Legislature to the levels as outlined concerning the PUDs. The motion was seconded by Thomas Hunt. Councilman Lemon, however, expressed the opinion that it might be more advisable to go for a full exemption and failing that, use the PUD limit for a "fall- back" position. It was noted, however, that even if the full exemption is granted, the City Council would have the prerogative of establishing any procedural guidelines and/or limitations it felt appropriate concerning City Light's practices. After further discussion, Jeff Rosbach offered to amend the motion to eliminate any restrictions and seek full exemption, including Port Angeles on the list of first class cities. The amendment was acceptable to Mr. Hunt and accordingly a vote was taken on the motion which carried unanimously. C. Future Agenda Items: Director Titus distributed information pertinent to city Light vs. PUD rates, a matter for further consideration in that some current PUD customers living within the city limits are requesting service from City Light at this time. This is a matter for future discussion between the City and the PUD. Director Titus indicated it might be appropriate to discuss the low income senior discount for energy accounts. The amount of the discount has not been changed since 1984, and there may be justification to raising the discount. The determination now is made by a flat rate based on income. Director Titus indicated it may be advisable to make it a percentage discount. There is, however, no obligation to make any change at all. Attorney Knutson indicated Northland Cable has requested to meet with the Utility Advisory Committee to discuss current rate negotiations. In addition, 3H Cable Communications would be present to discuss cable television issues. In determining the next possible date for a Utility Advisory Committee meeting, Thomas Hunt indicated he will be out of town January 22 & 23. Also, Jeff Rosbach will be attending a training program at Harvard for the months of February - May. The next meeting is tentatively scheduled to be held on January 22, 1991. V. Adjournment There being no further business, the meeting was adjourned at 5:55 p.m~ ~ CiTy Cle~ <~