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HomeMy WebLinkAboutMinutes 02/12/1996UTILITY ADVISORY COMMITTEE Port Angeles, Washington February 12, 1996 L Call to Order: Chairman Myers called the meeting to order at 1:10 p.m. Roll Call: Members Present: Members Absent: Staff Present: Gary Braun, Orville Campbell, Larry Doyle, Joe Michalczik, and Bill Myers. None. C. Knutson, B. Titus, C. Hagar, K. Godbey, and S. McLain, J. Pittis, and G. Kenworthy. IlL Approval of Minutes: Councilman Braun moved to approve the minutes of the January 8, 1996, meeting. Councilman Doyle seconded the motion, which carried by a majority, with Councilman Campbell abstaining as he had not attended that meeting. Chairman Myers requested Election of Officers be moved up on the agenda, as Joe Michalczik and Councilman Braun had other commitments later this afternoon. The Committee agreed. IV. Election of Officers Chairman Myers opened the nominations. Councilman Braun nominated Joe Michalczik as Chairman. Councilman Campbell seconded the motion. There being no further nominations, a vote was taken on the motion, which carried unanimously. Councilman Doyle nominated Councilman Braun as Vice-Chairman. Joe Michaiczik seconded the motion. There being no further nominations, a vote was taken on the motion, which carried unanimously. Joe Michalczik requested Bill Myers to continue chairing the current meeting, as he had to leave at 3:00 p.m. -1- Utility Advisory Committee February 12, 1996 V. Discussion Items: A. Update on BPA Rate Case Light Director Titus introduced Scott McLain, Power Manager, who gave a review of the information contained in the packet. Mr. McLain explained that currently the rate decrease appears to be about 15%. The new rates will be effective as of October 1, 1996, and the final proposal is scheduled to come out on May 31, 1996. Even though other costs may rise, the citizens should receive a significant decrease is utility rates. Director Titus explained the negotiation process and the options that will have to be considered in the near future. Discussion followed and Director Titus and Scott McLain responded to questions directed by the Committee. Mr. McLain stated that the contract with Bonneville expires in the year 2001. If Bonneville does not offer competitive rates, power can be purchased elsewhere, and Bonneville's customer base will dwindle. Further discussion followed and Director Titus clarified issues regarding the Rate Impact Analysis contained in the packet. No action was taken. B. Update on BPA Contract Negotiations Director Titus distributed an updated version of the Joint Letter of Commitment which had come in from the BPA since the meeting packet had been distributed to the Committee, and a draft letter of intent submitted by the Public Power Council. Director Titus then reviewed and clarified the information provided. Director Titus again stressed that Bonneville now must be cost competitive as well as have contractual terms that are comparable to those found in the private sector. At Councilman Braun's request, Director Titus explained how the BPA would recover debt service costs if it loses its customers. Discussion followed, and Director Titus responded to questions posed by the Committee and clarified several issues of concern Director Titus explained that he will speak to a BPA account executive tomorrow attemoon to discuss the most recent draft of the Joint Letter of Commitment, and decide if this draft is more acceptable to the City. Director Titus then reviewed the Letter of Commitment and explained its intent. Discussion followed regarding retiring the WPPS debt, and the City's role in this issue. Councilman Campbell felt that under any circumstances, it was the job of this Committee and staffto do the best job possible to protect the citizens of Port Angeles from future problems due to the BPA having to retire its debts. Director Titus explained that he will be attending several meetings this week and next, and will have more information for the Committee at its next meeting. No action was taken. -2- Utility Advisory Committee February 12, 1996 C. Update on Regional Conservation Concerns Light Director Titus distributed a copy of a letter received from Senator Slade Gorton regarding the Northwest Power Act, as well as a draft copy of his response to that letter. Director Titus then reviewed the information provided in the packet, and explained that a number of utilities, including Port Angeles, complained that the survey carried out by the Northwest Conservation Act Coalition was erroneous and performed under false pretenses. The survey shows Port Angeles disconfmuing all conservation programs by 1998. This is not what the surveyor was told, and does not reflect the tree picture. Staffwanted the Committee to be aware of what was going on in the event they are contacted by members of the Congressional delegation. Director Titus explained that part of the difficulty is that the Power Act that is in place still has established conservation targets for Bonneville. It is unclear what Bonneville's responsibilities will be in light of all the changes taking place. Director Titus explained what conversation measures are currently available and what has been done in the past. Discussion followed; however, no action was taken. Deputy Clerk Hagar distributed a memo from the City Clerk and Customer Service Manager regarding discounts offered to Northland Cable Senior and Disabled Citizens. This was for information only. There was no discussion or action taken. D. Report on Treatment Plant Outfall Study Public Works Director Pittis reviewed the information contained in the packet and introduced Gary Kenworthy, City Engineer, who explained why the existing outfall pipe needs to be replaced and where it would lie. Director Pittis informed the Committee that the existing outfall pipe has broken diffusers; however, it still appears to be doing its job as there is no build up of sediment. Discussion followed; no action was required. E. One-Year Certification of Treatment Plant Gary Kenworthy, City Engineer, reviewed the information provided in the packet. Mr. Kenworthy explained that the Department of Ecology requires a one-year certification to assure that everything is meeting permit requirements. The Wastewater Treatment Plant was monitored for over a year, staffgathered data, and a report was submitted to the DOE. The DOE approved the report and certification has been granted. Councilman Doyle pointed out that there was a typographical error in the memo and certification was granted in January, 1996 not 1995. Brief discussion followed, and Mr. Kenworthy and Director Pittis responded to questions directed by the Committee. There was no action required. F. Discussion of City/PUD Agreement Public Works Director Pittis summarized the agreement, pointing out changes, explaining why -3- Utility Advisory Committee February 12, 1996 the changes were made, and offering clarification on several issues. Discussion followed, and Director Pittis responded to questions directed by the Committee regarding the new reserqoir that will be needed and how it will be paid for. Director Pittis explained that the new reservoir would be placed on Mt. Angeles Road. The Public Utility District (PUD) has requested that they pay their share of the new reservoir through water consumption rates. The City would be responsible for bonding, as it has a better bond rating; therefore, the cost would be less. Director Pittis completed his review of the agreement, addressed concerns expressed by the Committee, and stated he would bring any further changes back for review prior to any action being taken. This was an information only item, and no action was taken. G. Discussion of Commercial Yard Debris Public Works Director Pittis reviewed the information provided in the packet. He stated that home builders feel that the per ton charge for commercial yard debris should not apply to single lot land clearing. They agreed that if someone is clearing five or ten acres the per ton charge is equitable. Mr. Pittis reviewed the three alternatives arrived at by staffand a brief discussion followed. No action was taken. VI Late Items: None. Noct Meeting: The next meeting of the Utility Advisory Committee will be held on Monday, March 11, 1996, at 4:30 p.m. VIII. Adjournment: The meeting adjourned at 4:10 p.m. ( alrman Deputy City Clerk~/// -4-