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-