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HomeMy WebLinkAboutMinutes 02/08/1999 UTILITY ADVISORY COMMITTEE Port Angeles, Washington February 8, 1999 L Call to Order: Chairman Doyle called the meeting to order at 3:00 p.m. Members Present: Councilmen Campbell, Doyle, Williams [3:07], Bill Myers and Joe Michalczik. Members Absent: None. StaffPresent: J. Pittis, B. Titus, C. Hagar, D. McGinley, K. Ridout, and G. Kenworthy. IlL Approval of Minutes: Joe Michalczik moved to approve the minutes of the January 11, 1999, meeting. Councilman Campbell seconded the motion, which carried unanimously. IV. Election of New Chair and Vice Chair Joe Michalczik moved to nominate Councilman Campbell as Chairman. Bill Myers seconded the motion. There being no further nominations, a vote was taken on the motion, which carried unanimously. Councilman Campbell moved to nominate Joe Michalczik as Vice Chair. Bill Myers seconded the motion. There being no further nominations, a vote was taken on the motion, which carried unanimously. Deputy Clerk Hagar suggested the date for the next meeting be set before discussion began and the Committee agreed. The March meeting will be held on Tuesday, March 15, 1999, at 2:00 p.m. in the Public Works Conference Room. V. Discussion Items: A. Golf Course LID Public Works Director Pittis provided a brief history of the issue and summarized the information contained in the packet. Director Pittis and Gary Kenworthy, City Engineer, responded to questions and provided additional clarification regarding the LID. Councilman Doyle asked if the total cost of the LID would be realized from the Developer Reimbursement Agreement (DRA). Mr. Kenworthy felt this was of low probability and that it could take years to complete the development of this area and attract new home builders. Director Pittis felt the City would be fortunate to get half of the money back and the cost would come out of the City's wastewater reserves. Joe Michalczik expressed concern over the amount of the proposed assessment ($6,765.58), compared to the estimated assessment ($4,765.58) and asked if the residents had legal recourse against the City because of it. Director Pittis explained that if a resident can prove there is no benefit to their property in the amount of the assessment there is legal recourse. However, the amount of Utility Advisory Committee February 8, 1999 the proposed assessment is less than or equal to the amount it would cost to have a septic system installed. Further discussion ensued. Bill Myers asked if the estimated 61 future connections under the DRA was a realistic number. Director Pittis felt this was open to discussion. Mr. Myers felt it might be more reasonable to estimate 45 future connections and increase the LID assessment to approximately $7,200, therefore allowing a greater opportunity for the City to recoup more if its costs. Mr. Michalczik was concerned that future lot purchasers are being penalized for the demands of the present home owners. He felt more of the burden should be carded by the original 75 home owners benefiting from the sewer installation. Councilman Doyle agreed with Mr. Myers and felt reducing the 61 lots to 45 and charging approximately $7,200 would be a fairer division of the cost. Following further discussion, Councilman Doyle moved to recommend the City Council to use a figure of 75°/b of the 61 additional lots for the DRA and divide the total cost by 120 instead of 136 and use that figure for the development of the final assessment roll. Bill Myers seconded the motion, which carried unanimously. B. Agreement with PUD for Low Zone Customer and Facility Transfer Deputy Director Titus distributed an updated copy of the draft Intergovernmental Water Facilities Agreement between the City and the PUD. He reminded the Committee that they had asked for some changes to be made to the Agreement at its last meeting. Mr. Titus summarized and explained the changes to the Agreement and the attached Exhibit "B". Mr. Titus pointed out that there is an almost 43% difference in water rates between the PUD and City. This is a strong motivator for these City residents to want the City to provide water service or for rate parity from the PUD. Mr. Titus noted that water and electricity are sensitive to rate changes and it can be expected that there will be an increase in water usage due to the rate difference. Director Pittis pointed out that Section 5 of the agreement states no precedence is being set. Discussion followed, and staff responded to questions posed by the Committee. Mr. Michalczik expressed dissatisfaction at having to pay more than $31,000 for facilities that are already 35 years old. Councilman Campbell reminded him that this is mandated by State law, as the PUD must be compensated for lost revenues. Mr. Michalczik understood this, however, he felt it unfair to have to compensate the PUD at a rate 43% higher than what the City can charge. Mr. Michalczik asked if these customers can be charged a higher rate to make up this difference. Director Pittis said this was a legal question and he would have Attorney Knutson look into this. Councilman Campbell felt this was an interesting exercise in educating the City as to what happens when an area is annexed and the utilities are transferred. This issue must be carefully examined as annexations take place, and somehow freeze the utilities as they are until a better way of transferring services can be found. Discussion followed, and Director Pittis reminded the Committee that if they do not wish to approve the agreement, there is the option of telling the PUD they will have to continue to serve these customers for the next five years. Councilman Doyle felt the Council should be made aware of this alternative. Councilman Doyle moved to recommend City Council approve the agreement with a full explanation including the alternative. Bill Myers seconded the motion, which carried unanimously. Utility Advisory Committee February 8, 1999 Status on Regional Water Systems Discussions Director Pittis stated he and Attorney Knutson met with a representative of the Tribe. The Tribe is interested in discussing water treatment approaches which can then be presented to the Department of Interior. Director Pittis felt an accommodation can be reached where everyone wins. It this can be achieved locally, the Department of Interior will have no choice but to agree. Director Pittis stated this can be brought back to a future meeting for further discussion. Councilman Doyle felt this issue should be brought up to the officials in Washington, D.C. at the conference next month. D. Status of FERC License Surrender on Morse Creek Deputy Director Titus stated he had a packet of letters on this issue should the Committee wish to read them. FERC will determine the extent of environmental review and proceed with necessary studies. Mr. Titus reviewed the steps yet to be taken in the surrender process. Information only, no action was taken. Brief discussion followed regarding other issues that can be brought to the attention of the legislature at the Washington, D.C. conference. VI. Late Items None. VII. Next Meeting: The next meeting will be March 15, 1999, at 2:00 p.m. VIII. Adjournment: The meeting adjourned at 4:01 p.m. ~hairma'n - Deput~_~jty Clerk -3-