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HomeMy WebLinkAboutMinutes 01/11/1999 UTILITY ADVISORY COMMITTEE Port Angeles, Washington January 11, 1999 L Call to Order: Chairman Doyle called the meeting to order at 3:00 p.m. II. Roll Call: Members Present: Councilmen Campbell, Doyle, and Williams [left meeting at 3:35 p.m.], and Joe Michalczik. Members Absent: Bill Myers. Staff Present: C. Hagar, B. Titus, J. Pittis, G. Kenworthy, D. McGinley, R. Ellsworth, K. Ridout, C. Knutson, and D. Sawyers. Joe Michalczik reminded the Committee that he had asked Director Pittis to contact Dean Reed of Daishowa and invite them to participate in the water study. Mr. Michalczik asked Director Pittis to report on this. Director Pittis stated he sent Mr. Reed a copy of the draft report and the scope of work. After Mr. Reed has reviewed both documents, he will call Director Pittis for discussion. III. Approval of Minutes: Councilman Campbell moved to approve the minutes of the December 7, 1998, regular meeting. Deputy Director Titus pointed out an error on page three, contingency should read contingent. Councilman Doyle pointed out that he opened the meeting, not Vice Chairman Campbell. Deputy Clerk Hagar stated Kevin Curtis had sent a memo asking for a correction to page one, paragraph two, the last sentence. The words "and there has only been one complaint regarding an odor in six years." should be struck. Councilman Williams seconded the motion, which carried unanimously. IV. Discussion Items: A. Agreement with PUD for Low Zoned Customer and Facility Transfer Deputy Director Titus reviewed the information provided on this issue and provided a brief history. Mr. Titus explained that by State Law, when there is a transfer of utilities from one company to another, the existing provider of the service may continue to provide that service for seven years because of the investment in equipment and facilities which needs to be recovered. This agreement allows the City to compensate the PUD for five years (agreed to by PUD) of net revenues which would have been realized and take over provision of those services. Discussion followed and Mr. Titus and Attorney Knutson responded to questions and provided clarification regarding the purchase terms, State law requirements, and the area covered by this agreement. -1- Utility Advisory Committee January 11, 1999 Attorney Knutson noted that a portion of the area covered by this agreement lies within the City limits. If the annexation occurred more than seven years ago, the City is not liable for seven years of net revenue. Mr. Michalczik expressed concem over the City paying more than $34,000 for a facility that has a capital value of $8,000. If the City pays the PUD out over a seven year period, the actual purchase price with interest is about $42,000. The first seven years of owning this facility would be subsidized by the other rate payers and the City wouldn't realize any profits to pay operating costs and capital investments until the eighth year. Councilman Campbell agreed with Mr. Michalczik. He felt the low zone intertie issue needed to be settled and future water issues should be looked at differently. Further discussion ensued. Deputy Director Titus stated the revenue which would be received from these customers has not been computed. It is not a case of money going out and nothing coming in. Councilman Campbell felt the City could not afford this process and when the City goes forward with annexation the PUD is going to have to service the water and electric customers in that annexation area. Councilman Williams noted that an annexation petition just went to the Planning Commission for review; this sets the precedence for everything else. Director Pittis stated that when this process was started almost two years ago, it was thought that this piece was small enough to give the City a good read as to the complexities of this type of agreement for the future. Director Pittis agreed with Councilman Campbell, in the future there is no room for future agreements such as this because of the cost. Staff will have to seek a different way to make annexation look desirable. Director Pittis pointed out that in this particular instance, the waterline intertie helps to divert some of the flow from the upper system to the lower system, where it is less expensive to provide water; it lessens the burden on the upper system and relieves some of the water demands in that area. Therefore, the City has gained some operational benefits by doing this. Director Pittis suggested that staff find answers to some of the Committee's questions and bring this issue back to the next UAC meeting. Joe Michalczik thanked staff for all the work they have put into this agreement and asked them to look into trying to reduce the City's costs should this agreement be approved. Councilman Doyle asked that the wording in item three of the agreement be changed to" . . . within the City limits shown on... ' Attorney Knutson will check with Municipal Research to see if other cities have found a different way to handle this type of situation. B. Old Joe Road Water Shut Off Notice Pending Director Pittis summarized the information contained in the packet and provided a brief history of the issue. The City has received verbal recommendations from the Department of Health, but is currently waiting for a written recommendation prior to discontinuing service to the Old Joe Road water line. Once that is received, the residents will receive a letter advising them of the date of discontinuance of service. Director Pittis felt the UAC should be aware of this problem. Discussion ensued and staff responded to questions and provided additional clarification. Utility Advisory Committee January 11, 1999 Concern was expressed over the City's liability in this issue should someone fall seriously ill due to tainted water. Attorney Knutson explained that the City's position is that the water line is private and, therefore, the City is not liable nor responsible for any problems with the privately owned waterline. Ralph Ellsworth, Water Superintendent, explained that the City owned water line is clean, however, the Old Joe Water line is made of galvanized pipe and, due to low water pressure and poor circulation, is a stagnant system. The City has no control over private property and cannot force the owners to improve the waterline. Attorney Knutson stated there is a provision in State law which allows a local jurisdiction to force a LID for health reasons. The State may choose to go that route rather than just cutting off the water. The County Health Department is aware of the problem, but has thus far not become involved. Further discussion ensued and Joe Michalczik was concerned with simply turning off the water to the families on this road. Director Pittis stated he will keep the Committee apprised of the situation as information is received from the State. Mr. Michaiczik asked that staff contact the County Health Department and get them involved in clearing up this situation without turning off water to these families. No action was taken. This issue will be returned to a future meeting. C. Ediz Hook Sewer Ordinance Director Pittis reviewed the information provided in the packet and explained why the final cost of the project was so much lower than the original estimate. Director Pittis and City Engineer Kenworthy provided a brief history of this issue and responded to questions and offered clarification. At the Committee's request, staff explained the sewer connection charge and how the amount was arrived at. Attorney Knutson explained that sewer costs would be factored into the leases the City is entering into with Thunderbird Boat House and Global Aqua. The Puget Sound Pilots have already agreed to pay their costs up-front rather than spreading it out over the length of the lease. Director Pittis pointed out that the Ordinance amending the amount of the Ediz Hook sewer connection charge is to reduce the fee due to actual costs and the change to the Milwaukee Drive Ordinance is to correct references to a Code section. Following further discussion and clarification, Councilman Campbell commended staff for the savings realized on such a large project and lowering the Ediz Hook sewer connection charge by more than $2,500. Joe Michalczik moved to recommend the City Council adopt an Ordinance revising the charges for connection to the Ediz Hook Sanitary Sewer and revising the Milwaukee Drive Sewer Connection Ordinance. Councilman Campbell seconded the motion, which carried unanimously. -3- Utility Advisory Committee January 11, 1999 D. Information on Public Meeting for Feasibility of Marine Bluff Study Senior Planner Sawyer reviewed the history of this issue. He stated the City has agreed to facilitate a meeting regarding a feasibility study, which will be held January 21, 1999, at 7:00 p.m. in the Community Room of the Port Angeles Library. The purpose of the meeting is to determine if there is enough interest among the property owners to pursue a bluff-wide geotechnical report. Staff will be present to provide the property owners with information regarding permitting activities along the bluff and development applications. Local engineering firms will also be invited to participate. Brief discussion followed. This is information only and no action was taken. V. Information Only Items - None. VI. Late Items Councilman Doyle noted that the minutes referenced a meeting with Senator Gorton; due to inclement weather, the meeting became a telephone conference call. As Councilman Campbell had participated in this call, Councilman Doyle asked him to give a summary of that conversation. Councilman Campbell stated Senator Gorton reiterated his optimism that there will be a resolution of the Elwha funding in the new session of Congress. However, the impeachment process may hinder the progress of his issue. Councilman Campbell said that Senator Gorton had conversations with Congressman Dicks regarding this, Congressman Dicks has a pipeline to the White House. Senator Gorton was receptive to the City's water treatment problems as they relate to the Elwha, and indicated that he would be willing to help with funding for water treatment with or without the Elwha Dam removal project. Councilman Campbell felt he was sympathetic and agreeable to helping the City. VI. Next Meeting: The next meeting will be February 8, 1999, at 3:00 p.m. Councilman Doyle noted that the March UAC meeting is scheduled for the eighth and he and Councilman Campbell will be out of town. This meeting will be rescheduled at the next meeting. VIII. Adjournment: The meeting adjourned at 4:45 p.m. (2~t r~'~' c///~ Depa ty City Clerk (~- -4-