HomeMy WebLinkAboutMinutes 01/10/1994UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
January 10, 1994
Call to Order:
Councilman Braun called the meeting to order at 4:31 p.m.
II.
Roll Call:
Members Present: Gary Braun, Cathleen McKeown, Joe Michalczik, Bill Myers and
Larry Schueler.
Staff Present: C. Knutson, K. Godbey, B. Upton, C. Hagar, B. Titus, J. Pittis, S.
Kenyon, and G. Kenworthy.
III.
Election of Officers
Joe Michalczik moved to nominate Gary Braun as Chairman. Councilman Schueler
seconded the motion. There being no further nominations, a vote was taken the
motion, which carried unanimously.
Councilman Schueler moved to nominate Joe Michalczik as Vice Chairman. Bill
Myers seconded the motion. There being no further nominations, a vote was taken on
the motion, which carried unanimously.
IV.
Approval of Minutes:
Joe Michalczik moved to approve the minutes of the December 13, 1993, meeting as
written. The motion was seconded by Councilman Braun and carried unanimously.
Discussion Items:
City Light Director Titus requested that item G be moved to the top of the agenda, as he
has another commitment this evening.
A. UAC Level of Participation in City Light Related Issues
Director Titus explained that generally, over the next two years, there will be many
regional issues affecting electric utilities in the northwest. Most other electric utilities
have policy bodies to deliberate and act on issues affecting their utilities. Director Titus
-1-
Utility Advisory Committee
January 10, 1994
asked if any of the UAC members were interested in taking a more active role in keeping
abreast of regional events and decisions.
Joe Michalczik expressed an interest, as power has become a major cost for the mills.
He also expressed a concern over the BPA becoming a private corporation, and asked
Director Titus if he felt costs would increase, decrease or stay the same. Director Titus
felt the best that could be hoped for would be the status quo. Costs could very well go
up due to the isolation of our community.
Councilman Schueler also expressed an interest in being involved, and felt that it was in
the City's own best interest to take an active part in the decision-making process.
Councilman Braun suggested that Director Titus prepare a list of committee meetings and
subject matter so that if a member of the UAC was interested in a particular discussion
topic, they could attend. This was agreed on. Further discussion followed.
B. Solid Waste Rate Utility Tax Exclusion
Councilman Braun reviewed the information provided by the Finance Department.
Director Godbey gave the UAC a fuller explanation as to why there will be a possible
$100,000 refund in overpaid taxes. She then reviewed the exclusion of utility taxes on
utility bills, as well as an example of a new utility bill. The City can save approximately
$15,000 per year by claiming this deduction.
Public Works Director Pittis suggested that the words Sanitation Service be changed to
Solid Waste to avoid confusion with sewer service, which was agreed upon.
Joe Michalczik inquired if this deduction applies to electric bills. Director Godbey
replied that it was only for solid waste.
Councilman Schueler moved to recommend to the Council that the utility tax portion
of the solid waste rate be segregated on the utility bills so that it can be excluded
from gross income. Councilwoman McKeown seconded the motion, which carried
unanimously. Further discussion followed the vote.
C. Interest on Delinquent Accounts
Customer Service Manager Kenyon reviewed the information he had provided in the
UAC packets. He explained how this change may result in a reduction up front in
interest rates; however, it will have little impact on revenues in the long term. Billing
procedures were also explained to the Committee, and a discussion of this followed.
-2-
Utility Advisory Committee
January 10, 1994
Bill Myers moved to reconunend returning to interest at the rate of 1% per month
on the unpaid balance. Joe Michalczik seconded the motion, which carried
unanimously.
D. Increased Fees for FieM Collections
Councilman Braun reviewed the information provided by the Finance Department, and
requested Customer Service Manager Kenyon give an explanation of the terminology of
field collections. Manager Kenyon explained the terms and procedures of field collection
and went on to inform the Committee that at least 20 names appear on this list for field
collections every month. The other 180 names vary from month to month. He felt that
raising the rate from $5.00 to $22.00 will make some people think twice about waiting
to pay their bill. Further discussion followed.
Joe Michalczik felt that a flyer should be sent out informing the general public that this
fee is going to go up so that no one is surprised by it. A flier will go out with utility
bills in advance of the increase going into effect.
Joe Michalczik moved to recommend the increase of field collection fees from $5.00
to $22.00, provided a flyer is sent out in advance informing people of this change.
Councilwoman McKeown seconded the motion, which carried unanimously. Further
discussion followed the vote.
E. Cable TV consultant Contract for 1994
Attorney Knutson pointed out that paragraph I. C of the Cable Television Consultant
Services Agreement should read: "...and report any apparently excessive rates vic, large, ns
c,f C'ity ap?rc, vc.d rates to the City." He then went on to review the provided information
and gave the new members some background on this issue.
The City grants a franchise to the cable company which permits them to use the City's
rights-of-way for its wires. The cable company also pays a pole rental fee to City Light.
The franchise ordinance contains a number of provisions relating to customer service
requirements, and Attorney Knutson informed the committee that he had copies of this
ordinance available if any members wished to have one for review.
Councilman Schueler noted that the fee provision for the consultant was 5% of the
franchise fee, and inquired as to how many dollars this represents. Attorney Knutson
replied that it was projected to be $5,000.
Councilman Braun reminded the Committee that it had been decided to monitor
Northland's rates rather than regulate them, and this is what the consultant will be doing.
-3-
Utility Advisory Committee
January 10, 1994
Attorney Knutson reminded the UAC that the City has a committee, headed by the City
Manager, working on implementing the Government and Education Access Channel. He
suggested that a section be added to the Scope of Work that says the Consultant will
provide advice as requested on the Government and Education Access Channel, as this
is not currently covered in the contract. The Committee agreed.
Councilman Schueler moved to recommend that the City Council authorize the
Mayor to execute the contract with 3-H Cable Communications Consultants for 1994
consulting services, amending the wording in Section 1. C. and adding consulting for
the Government and Education Access Channel under Scope of Work. Bill Myers
seconded the motion, which carried unanimously.
F. 20" Water Main Repair
Public Works Director Pittis presented a video which demonstrated the work performed
on the 20" water main near the Peabody Heights Reservoir.
G. Peabody Creek Culvert Video
Public Works Director Pittis presented a video from 1985 which showed the condition
of the Peabody Creek culvert. He reported that a recent examination of the culvert
revealed it to be in much the same condition today as it was in 1985.
VI.
Next Meeting:
The next meeting of the Utility Advisory Committee will be held on Monday, February
7, 1994, at 4:30 p.m.
VII. Adjournment:
The meeting was adjourned at 6:30 p.m.
City Clerk
-4-