HomeMy WebLinkAboutMinutes 01/13/1992UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
January 13, 1992
Call to Order:
Mayor Hallett called the meeting to order at 3:35 p.m.
II.
Roll Call:
Members Present: Jim Hallett, Richard Wight, Gary Braun, Jeff Rosbach and Thomas
Hunt.
Members Absent: None
Guests: Tom Gould, Economic and Engineering Services, Inc.
Staff Present: B. Titus, C. Knutson, J. Pittis, B. Upton, K. Godbey, K. Ridout, R.
Ellsworth, S. Kenyon and G. Leaf.
III.
Aot~roval of Minutes:
~ Rosbach moved to approve the minutes of the December 9, 1991,
meeting as written. The motion was seconded by Cc,~r~c'2mar. Hunt and carried
unanimously.
IV. Discussion Items:
A. Election of Officers
The By-Laws of the Utility Advisory Committee stipulate that nomination of elective
officers shall be made from the floor at the annual election meeting, which shall be held
at the first regular meeting of each year. Accordingly, Councilman Wight moved to
nominate Mayor Haliett as Chairman of the Utility Advisory Committee. The
motion was seconded by Councilman Braun. There being no further nominations,
a vote was taken on the motion, which carried unanimously.
Councilman Wight moved to nominate Thomas Hunt as Vice Chairman of the Utility
Advisory Committee. The motion was seconded by Councilman Braun. There being
no further nominations, a vote was taken on the motion, which carried unanimously.
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Utility Advisory Committee
January 13, 1992
B. Recommendations on Water Rates
Based on input received at the last meeting of the UAC, water rates were designed for
further review. Tom Gould, Economic and Engineering Services, Inc., was present to
explain the proposed rate structure, which incorporated rates which are designed to collect
target revenue levels by the class of service. Mr. Gould discussed the 50% surcharge for
outside City customers, which is comprised mainly of P.U.D. The Utility Advisory
Committee reviewed the rates which follow cost of service, with the exception of
commercial customers. It was agreed that a rate decrease would not be instituted for this
particular rate class in accordance with the cost of service study, as the decrease was
considered nominal.
Lengthy discussion was held concerning the proposed revision in meter charges which has
been designed to better reflect potential capacity requirements or meter equivalents. Mr.
Gould reminded the members of the UAC that meter charges were implemented in 1984,
at which time the implementation was accomplished at a lower equivalent meter value
than the correct calculated value. It is intended to adjust equivalent meter value and,
therefore, the meter charges over time in order to ultimately reach the actual correct
value.
Director Pittis reviewed the 50% sumharge for outside City customers and noted the
method of charging the P.U.D. is via a contractual agreement which must be renegotiated
if the rates are approved. In responding to an inquiry from Councilman Wight, Mr.
Gould indicated the 50% designation has been a historical precedent by most cities and
utilities in the State. He indicated this figure should represent the difference in cost of
service for City customers versus non-City customers. It was pointed out that the P.U.D.
is presently looking for other sources of water. Additionally, the P.U.D. is currently
averaging a draw which exceeds the limits set by contract.
Members of the Utility Advisory Committee were asked as to feelings generated by the
proposed discontinuation of the summer water rates. Jeff Rosbach indicated that,
particularly in view of the discussion of Elwha dam removal, the City should be
responsible by being sensitive to water utilization and conservation. Other members of
the committee expressed the opinion that the summer program has never resulted in the
desired results.
Lengthy discussion followed, and Jeff Rosbach moved to recommend to the City
Council that water rates be modified as presented, to be effective with the bills issued
as of April 1, 1992. The motion was seconded by Councilman Wight and carried
unanimously.
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Utility Advisory Committee
January 13, 1992
Discussion on Establishment of an Apprenticeship Lineman Program at City
Light
City Light Director Titus reviewed the attributes of a Lineman Apprenticeship Program,
which would provide a means for local youth to have the opportunity to qualify for a high
paying job. Director Titus discussed the importance of the program, particularly in light
of some upcoming retirements in the Light Department. He noted the City previously
had a similar program which, for some unknown reason, was decertified. Councilman
Braun spoke of his personal experience with the previous program and expressed his
support of reinstituting the apprenticeship program.
Discussion ensued concerning the methods to be incorporated in recruiting. It was noted
the bargaining unit may have input to the process; however, it would be intended to use
the normal City guidelines in hiring practices. Further, it was suggested that school
vocational offices may be of assistance in this regard.
Reference was made to the minimum qualifications, wherein it is noted the applicants for
apprenticeship shall be between the ages of eighteen (18) and thirty (30). Concern was
expressed about possible age discrimination; however, Attorney Knutson noted such
exceptions may be permissible only by bona fide occupation qualifications.
Director Titus continued to explain the details of the program and expressed the hope the
program could be tied in with established State programs for retraining unemployed
timber workers. He indicated it would be desirous to have one apprentice and, perhaps,
another financed by the State under the auspices of retraining. A second apprentice
would, however, have no guarantee for employment.
The question was raised as to the level of commitment required of the apprentice in terms
of employment with the City. Director Titus responded no commitment can be gained
by the City, in spite of the requirement that the City commits to the apprentice for a
period of three (3) years. Thomas Hunt moved to recommend that the City Council
authorize City Light to proceed with the Lineman Apprenticeship Program. The
motion was seconded by Councilraan Braun.
Discussion ensued concerning the issue of commitment, and Attorney Knutson expressed
the opinion that, if the City commits to the apprentice for a given period of time, the City
should have the prerogative of requiring the apprentice to commit to employment with
the City for a specified time. After further discussion, it was agreed that Director Titus
will follow-up on the issue pertinent to the age limitations, as well as that of seeking an
employment commitment for a specified period from the apprentice. A vote was then
taken on the motion, which carried unanimously.
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Utility Advisory Committee
January 13, 1992
D. Discussion on Proposed New City Light Funded Conservation Programs
Ken Maike, City Light Conservation Manager, explained the proposed conservation
programs which would be funded by City Light and would serve to contribute
significantly to the City's conservation efforts. The Light Department budgeted $24,700
in rebates and $144,500 in loans for the programs in 1992. Mr. Maike reviewed the
various programs, intended to provide incentives to use electricity more efficiently in
homes, business, and industries. The programs are more retail based and involve a
rebate, hopefully available only through local retailers.
When asked as to the potential savings through conservation, Mr. Malke indicated it is
extremely difficult to project the savings in view of the fact the savings are totally
dependent on the level and ongoing commitment of those participating.
Attorney Knutson inquired as to whether similar programs have been instituted by other
utilities, and Director Titus indicated such programs have been introduced by Puget
Power and the City of Seattle. Attorney Knutson asked to have the opportunity to review
the constitutional provisions pertinent to conservation programs of this nature. He was
aware of provisions allowing weatherization loans, but was not certain as to any
provisions addressing the rebate issue.
After further discussion, Councilman Braun moved to recommend the adoption of the
City Light Funded Conservation Program by the City Council, subject to the
approval of the City Attorney on rebates. The motion was seconded by Councilman
Wight and carried un~nlmously.
E. Discussion on Alternative l~nancing Methods for BPA
City Light Director Titus reviewed for the Utility Advisory Committee the facts
pertaining to the Federal Government's attempts to reduce the Federal deficit by making
changes in how BPA repays it's debt and how it accesses new sources of funds. Regional
electric utilities have been meeting to consider alternative financing methods and, thus far,
the group has been unable to reach a consensus as to how to proceed. At this time,
Director Titus asked the UAC members to consider various options available and provide
him with a sense of direction as to the City's position in this regard.
Discussion followed concerning the options to be considered, and Jeff Rosbach noted
refinancing may not be a preferred option in view of BPA's debt to equity ratio which
is not good. In addition, Councilman Wight spoke of the advantages of BPA financing
acquisitions through private financing as opposed to that of the Federal Government.
Discussion also involved the presentation of information to the City Council, and the
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Utility Advisory Committee
January 13, 1992
members of the Utility Advisory Committee agreed the Council should be given the same
format of information on this matter. Jeff Rosbach added that it would be helpful to be
given a review of projected rate impacts based on the different options. Councilman
Braun moved to support Options 1 and 4 as presented. The motion was seconded
by Councilman Wight and carried unanimously. Director Titus was asked to keep the
group apprised of ongoing discussions on this matter.
F. Update on Electric Rate Impacts from Endangered Species Listings
This item was deferred to the next regular meeting of the Utility Advisory Committee.
G. 1992 Homeshow
For informational purposes only, plans concerning the 1992 Homeshow had been
distributed to the members of the Utility Advisory Commitme.
Next Meetimr:
The next meeting of the Utility Advisory Committee will be held on Monday, February
10, 1992, 4:30 p.m.
VI. Adiournrnent:
The meeting was adjourned at 5:55 p.m.
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