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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-