HomeMy WebLinkAboutMinutes 02/12/1991UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
February 12, 1991
Call to Order:
Chairman Hallett called the meeting to order at 5:00 p.m.
II. Roll Call:
Members Present: Jim Hallett, Mike Lemon, Richard Wight and
Thomas Hunt.
Members Absent: Jeff Rosbach
Staff Present: J. Pomeranz, C. Knutson, B. Upton, B. Titus,
J. Pittis, K. Ridout, B. Jones, J. Gonzales and G. Leaf.
Guests Present: Mike Sturgeon, Dan Withers and Rose Wilhelm
of Northland Cable Television; Miles Overholt and Lon Hurd of
3H Cable Communications; Tom Gould and Scott Reid of Economic
and Engineering Services, Inc.
III. Approval of Minutes of January 7. 1991 MeetinG:
The minutes of January 7, 1991 were approved as written.
IV. Discussion Items:
A. Discussion of Cable Television Issues and Rate
Negotiations:
Representatives of Northland Cable Television and 3H Cable
Communications were present for the purpose of discussing
cable television issues in general, as well as the status of
rate negotiations. Additionally, Attorney Knutson advised the
group the contract with 3H Cable Communications expired as of
December 31, 1990 and it would be appropriate for the Utility
Advisory Committee to submit a recommendation to the City
Council with regard to extending the agreement.
Attorney Knutson referenced the presentation made by 3H Cable
Communications at the January 2, 1991 meeting of the City
Council; subsequent to that meeting, Northland Cable requested
the opportunity to discuss cable television issues before the
Utility Advisory Committee. At this time, Dan Withers
addressed certain issues of concern to the City.
Specifically, the city has expressed concern over the 30% rate
increase implemented in 1988. Most of the industry
experienced a similar increase which was implemented during
1987; Northland's implementation was late.
Lengthy discussion was held concerning the additional outlet
charge. Mr. Withers explained a second outlet can be obtained at
a charge of $2.50 per month. Another option is for residents to
pay a $100.00 fee which is applied for the entire period the
resident lives in the same home. This fee provides for an
inspection and repair charges particularly for those individuals
who wish to install their own outlet. It is important to monitor
signal leakage especially due to FCC's ability to shut a company
down because of continued leakage. In addition, Mr. Withers
expressed concern about the lack of quality equipment that is
available on the open market and is being utilized by those doing
their own installations. Mr. Withers distributed a fact sheet
regarding service charges.
Mr. Withers delineated various services offered by Northland
Cable: FM service, a $19.95 additional outlet charge which
defers the expense of labor and truck time only, the pre-
wiring of new homes (first two outlets free). Councilman
Lemon encouraged Northland Cable to make every effort to
educate the public as often as possible; it is understandable
as to why individuals choose to install their own cable
outlets in an effort to realize a savings.
Discussion ensued concerning the suggestion that Northland
take away the incentive for people to install their own
outlets; however, Mr. Withers noted Northland would need to
realize the revenues elsewhere if this were the case. The
possibility of shifting the revenue to another service was
suggested; Mr. Withers reviewed the present options available
for the economy basic package and the standard basic package.
There could be a third package made available in the future as
many requests are submitted for additional channels.
Mr. Withers reviewed Northland's current upgrade to 330 MHz
wherein each amplifier is replaced; this project should be
completed by August. Part of the project will also include
extra channels; Northland will try to add 1 - 2 channels per
year. Brief discussion involved the City's right for a public
education channel; Miles Overholt indicated 3H Cable
Consultants can offer expertise in this area. Mr. Withers
summarized by noting the many improvements made since
Northland purchased the cable company; staff education has
improved greatly.
At this time, Miles Overholt, 3H Cable Communications,
distributed information pertinent to the proposed Federal
Communication Commission Rules for Effective Competition. If
adopted, the rules could be effective as early as April or
May, 1991. In addition, Mr. Overholt indicated it does not
appear that Congress will pass any legislation having to do
with rate regulation during this particular session.
Representatives of Northland Cable and 3H Cable Communications
departed the meeting at 6:20 p.m., after which time the
Committee directed attention to the renewal of the contract
with 3H Cable Communications. Attorney Knutson reviewed facts
pertinent to 3H's performance over the past year: provided
technical evaluation of franchisee's system; advised City
Clerk on handling of complaints; provided UAC with expertise
on utilization of educational/governmental access channel;
analyzed accuracy of franchise fee paid; negotiated with cable
operator on rate and franchise compliance issues and advised
city on proposed changes in federal laws and regulations. 3H
also submitted the required annual report to the City.
Further, Attorney Knutson noted it would be difficult for the
City to determine the appropriate source of much of the
information and expertise offered by 3H. Accordingly, a
motion was made by Councilman Wight and seconded by Thomas
Hunt to recommend to the City Council to renew the contract
with 3H Cable Communications Consultants. The motion carried
unanimously.
B. Consideration of Solid Waste Cost of Service Study:
Messrs. Tom Gould and Scott Reid, Economic Engineering
Services, Inc., were present to submit a report regarding a
recently conducted Solid Waste rate study. Public Works
Director Pittis indicated the same company had previously
conducted a similar study for Water/Sewer. It is important to
have such studies conducted periodically in order to assure
the best methodologies are applied in rate considerations as
they relate to revenue requirements. Such a study is
particularly important in view of the possibility of curbside
recycling. Mr. Gould advised the UAC members that it is
important to revisit the rate structure on an annual basis.
Once the rate study has been completed, the annual update can
be accomplished in-house.
Options considered for this study were:
0
0
o
No curbside recycling
Curbside recycling
Curbside recycling plus update of miscellaneous charges
Messrs. Gould and Reid discussed the differences in the
options and the varied expense and revenue impacts on each
scenario, cost considerations involve annual closure fees, as
well as ongoing maintenance expenses at the existing landfill
for the next thirty years. Rate design issues identified
involve cost based rates, continuity, rate philosophy, equity,
ease of administration, ease of understanding from the
customer's point of view, and incentives to encourage
recycling. Three options were considered for purposes of this
review with the next component being a philosophy direction in
order to establish the appropriate rate structure.
After lengthy discussion, the group was in agreement landfill
based recycling should be pursued with landfill tipping fees
instituted for all (Option 3). Further, it was agreed
consideration should be given to a recycling incentive;
however, the EES representatives suggested it would be
worthwhile to gain the history of one year before instituting
such an incentive program. It would be helpful to have more
information as to utilization and rates before adopting a
formal incentive program. Public Works Director Pittis
indicated it will be recommended that a public hearing be
conducted before the City Council on March 5, after which time
the Utility Advisory Committee might want to be prepared to
make a recommendation.
Accordingly, Director Pittis was asked to incorporate the
conclusions of the Committee into a more definitive proposal
to be considered at another meeting of the Utility Advisory
Committee, after which time a proposal will be submitted to
the City Council. In this regard, the Committee agreed to
meet on this matter on Thursday, February 28, 1991, at 4:30
p.m. Director Pittis requested that the agenda include
consideration for a wastewater cost of service study.
Request for Review of Current Senior Energy Discount
Program:
This matter was brought before the Utility Advisory Committee
for review in that the program has not been given further
review since its inception ten years ago. The question to be
answered is whether the program is accomplishing what was
intended. Ms. Gonzales reviewed information pertinent to the
program, particularly the method of calculating the discount
based on gross household income and size of family.
Discussion followed with Councilman Hallett noting senior
citizens are not representative of the only impoverished
sector in society. Mr. Leaf noted State law only allows
energy discounts for aged or disabled. However, Councilman
Hallett indicated he would like to see the program explored
beyond age. He was hopeful of further enhancements. Attorney
Knutson noted the aged or the disabled have generally lost
their ability to earn an income. City Manager Pomeranz and
Ms. Gonzales agreed to pursue the matter and possibly offer an
expanded program for future consideration by the Utility
Advisory Committee.
V. There being no further business, the meeting was adjourned at
8:45 p.m.
Chairman City Cl~k ~ ! --