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HomeMy WebLinkAboutMinutes 02/13/1995II. UTILITY ADVISORY COMMITTEE Port Angeles, Washington February 13, 1995 Call to Order: Chairman Myers called the meeting to order at 4:32 p.m. Roll Call: Members Present: Members Absent: Gary Braun, Cathleen McKeown, Joe Michaiczik, and Bill Myers. Larry Schueler. Staff Present: J. Pomeranz, C. Knutson, B. Titus, J. Pittis, C. Hagar, K. Maike, M. Robertson, B. Jones, G. Kenworthy, and S. Kenyon. IH. Approval of Minutes: A. Approval of ltem C. PUD Water Contract from the minutes of the December 19, 1994 meeting. Public Works Director Pittis was asked for clarification of this matter. He stated that the area from the current City limits to Morse Creek is an urban service area and to be developed in accordance with City standards; therefore, the minutes are correct as written. Couneilmember McKeown moved to approve Item C of the minutes of December 19, 1994. Joe Michalczik seconded the motion, which carried unanimously. B. Approval of Minutes of January 9, 1995 Meeting Councilmember McKeown moved to approve the minutes of the January 9, 1995, meeting as written. The motion was seconded by Joe Miehalczik. A vote was taken on the motion, which carried unanimously. IV. Discussion Items: City Light Director Titus requested that items A and B be switched in order, as there were several contractors present regarding this issue. A. City Light Conservation Re-invention Director Titus reviewed the history of this item and reminded the Committee that this item was referred back by the City Council. He stated that staff met with the Contractors Utility Advisory Committee February 13, 1995 involved with the conservation programs and attained consensus agreement for initiatives to take in making changes to these programs. There will be a three-month trial basis to gauge the effect of the changes. Ken Maike then explained the three programs that were arrived at and how they will work. Terry McCartney of Everwarm stated that his company has worked with the City on these programs since 1981. The City's program has always been very successful, and Light Department staff has always been easy to work with. Mr. McCartney stated that the local contractors are in favor of all three proposals. Mr. Michalczik inquired what conservation incentives there were for industry at this time. Ken Maike explained that it was industries energy savings plan, which is basically so many dollars per kilowatt hour savings. Industry has a separate budget, and it is on a first-come, first-served basis. Councilmember McKeown moved to recommend to the Council the change to conservation programs, to take advantage of the new BPA Conservation Resource Agreement. Joe Michalczik seconded the motion, which carried unanimously. V. Late Item: A. Complaint from Violet Creelman Regarding Electric Base Rates Chairman Myers invited Mrs. Violet Creelman to address the Committee. Violet Creelman, 1219 Columbia Street, the owner of a fourplex, wished to protest the $11.00 base rate on electric bills. She stated that people who conserve electricity are subsidizing others who have hot tubs, swimming pools, etc. Ms. Creelman felt this was a very unfair practice. Joe Michalczik asked Light Director Titus what the $11.00 fee covered. Director Titus responded that the City Council adopted cost of service as the basis of rate setting for all utilities. The customer costs are those that are not affected by how much a person uses. This would include such things as the cost of reading the meters, however, there are some plant costs also associated with this fee. Director Titus went on to state that a cost of service study is done every time there is a rate change, and it is done by an outside consulting firm to check on the accuracy of the study. City Attorney Knutson offered to give Ms. Creelman a copy of the cost of service study, and invited her to attend the next rate changing process. Ms. Creelman felt that the conservation measures discussed earlier were pointless, when there is still an $11.00 base rate. -2- Utility Advisory Committee February 13, 1995 Director Titus attempted to explain again to Ms. Creelman what the $11.00 paid for, and that it was not a case of one user subsidizing another. Ms. Creelman stated that Snohomish County bases its rates on usage, not base rate. She also contacted Clallam County PUD and found that they had a per day charge, rather than a monthly charge, which she felt to he more equitable. Ms. Creelman claimed that many months her $11.00 base rate is twice as much as what she pays for electricity. Councilmember McKeown asked if staff could do research on the issue and find what other entities charge as a base rate. Ms. Creelman again stated that she was very angry over this base rate as were many other people she knew. Chairman Myers informed Ms. Creelman that her point was well taken, and he felt the issue was that the City of Port Angeles identifies all its charges on the utility bills, and other utilities bury them in the rates. Customer Service Manager Kenyon will have staff do a survey of other utilities. Ms. Creelman was invited to come to the next UAC meeting for further discussion. IV. Discussion Items: B. Discussion of Combined Sewer Overflow Reduction Program Public Works Director Pittis explained that the City has an NPDES Permit for the wastewater treatment plant. Part of the permit deals with the reduction of combined sewer overflow into the harbor which involves stormwater in the sewer system. There is a permit requirement which states that overflows must be reduced to one overflow per location per year. Director Pittis then used the overhead projector to give a line by line review of the Combined Sewer Overflow Reduction Program update, which will help the City achieve the goal of overflow reduction. Director Pittis stated that this program is based on funding being available, and that changes in roles and regulations will be encountered in the future permit renewals. This issue will be revisited every time the City has to apply for a new permit, which will occur in June, 1997 and again in 2002. Joe Michalczik asked what the sewer rate will be in five years, and Director Pittis felt it would be around $37 per month. Further discussion followed regarding availability of funds and costs involved in performing the updates. Joe Michalczik moved to recommend to the Council adoption of the f'wst three years of the plan as outlined by Director Pittis. Councilmember McKeown seconded the motion, which carried unanimously. C. Diversification of Energy Resources Light Director Titus reviewed the information contained in the Light Department Issue Paper. He stated that Bonneville should have its actual rate out by early April, and last week BPA predicted a 4.5% increase rather than the double digit increase originally -3- Utility Advisory Committee February 13, 1995 planned. Bonneville is also delaying the implementation of the new rates from October 1, 1995, to January 1, 1996. The group of utilities which banded together to explore the joint acquisition of energy resources from an entity other than the BPA has grown from seven to twenty. The group is using a consulting firm that will put together a request for proposals, analyzes the acquired information, and make recommendations to the participating utilities. A discussion followed regarding fish and wildlife expenses. This was an information only item; no action was taken. V. Late Items: B. HB 1480 - Proposal to Abolish Utility Lien Authority Customer Service Manager Kenyon distributed a memo to the Committee and explained that the legislature is again questioning the City's ability to lien property for unpaid utility bills, and HB 1480 would do away with utility lien rights. It is the AWC's belief that this bill has a chance of passing during the current session. AWC has requested that its members write their legislators informing them of the unfairness of this action and listing the actions that have been taken in order to protect property owners. Customer Service Manager Kenyon requested the UAC recommend implementation of the landlord notification program to the Council. Joe Michalczik moved to reconunend hnplementation of the landlord notification program for a period of one year, at which time this issue will be revisited by the Council for approval of continuation. Councilmember McKeown seconded the motion, which carried unanimously. C. Solid Waste Options Public Works Director Pittis distributed a handout entitled Solid Waste Districts, and then deferred to Solid Waste Superintendent Jones, who pointed out that the title page should say "Solid Waste Options". Superintendent Jones reviewed the handout in detail and explained the future of solid waste in the City. Director Pittis explained this is an information only item; however, it will eventually be brought back to the U^C for specific discussion as to what will be best for the City, what are the alternatives, what the City hopes to accomplish, and how to achieve these goals. -4- Utility Advisory Committee February 13, 1995 A discussion followed regarding establishing a disposal district. No action was taken. D. Summary of Electric System Long Range Planning Study The executive summary from the recently completed ESLRP study was distributed by Light Director Titus. There was no discussion. This was for information only. E. Department Policy and Procedure Service Upgrades & Maintenance City Light Director Titus distributed a copy of the Light Department's Policy and Procedure regarding Service Upgrades and Maintenance. He stated that, as a result of the Comprehensive Plan adoption, there is a need for some changes to the operating policies and procedures in order to be in compliance. The major one will the line extension policy to deal with the underground requirements of the Comprehensive Plan. Another change which could be potentially more time critical, arose due to the EDC working with an anonymous client who may locate a manufacturing facility in the old Hiller buildings. The EDC approached the City with loading information regarding power needs and requested cost estimates. It is possible that the City could be looking at a $60,000 investment in order to get sufficient capacity into the Hiller buildings. The policy and procedure distributed is the one which would pertain to this situation. It is unclear if, as the way it is currently stated, the City would not charge for upgrades. Director Titus asked the UAC if the City should absorb the $60,000 in costs, or should policy be revised to clarify that these costs be passed on to the new tenant. A discussion followed, and it was the general consensus of the Committee that the policies and procedures should be amended. This item will come back at the next meeting. No action was taken at this time. VI. Next Meeting: The next meeting of the Utility Advisory Committee will be held on Monday, March 13, 1995, at 4:30 p.m. VII. Adjournment: The meeting was adjourned at 7:15 p.m. Deputy City Clerk -5-