HomeMy WebLinkAboutMinutes 03/12/1991UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
March 12, 1991
Call to Order:
Chairman Hallett called the meeting to order at 4:32 p.m.
II. Roll Call:
Members Present: Jim Hallett, Richard Wight, Mike Lemon and
Thomas Hunt.
Members Absent: Jeff Rosbach
Staff Present: J. Pomeranz, J. Pittis, B. Titus, G. Leaf and
S. Hursh.
III. Approval of Minutes:
The minutes of February 28, 1991, were approved as written.
IV. Discussion Items:
A. Discussion of Solid Waste Ordinance:
Public Works Director Pittis presented a draft of the Solid
Waste Ordinance which would place into effect the Cost of
Service Study for solid waste rates, including the recycling
activity.
The Ordinance contained the following key changes or
additions:
1. Definitions for Recycling Container, Recyclable
Materials, and Yard Waste are included;
More detail on when a mess is cleaned up and the minimum
bill;
New residential rate at $12.75 for recycling and $14.00
for those not recycling;
New commercial rate at $12.75 and $44.25 for i/week
collection;
Recycling container requirements provided in addition to
a provision that theft of recycled materials is a
criminal offense;
6. Ail landfill users charged $49.50 per ton;
7. Increase uncovered loads - charge $5.00 not $2.00;
8. Discontinuance of weighing commercial vehicles;
Increase special handling charge from $75 per ton to $120
per ton;
10.
Ail clean yard waste that can be converted to compost
will not be charged a fee at landfill (this is slightly
different than the material at the hearing where it was
stated that only materials that could be chipped would be
free);
11. Ability to waive the landfill fee for City-sponsored
clean-up programs;
12. No landfill fee for materials than can be recycled at
landfill;
13. Tire and appliance charge revised from $1.00 each to
$49.50 per ton.
During the discussion on the possibility of two different
rates, the Utility Advisory Committee reviewed the attached
graph which describes the relationship between a rate for
those recycling and those who do not, the total revenue needed
for the residential rate class, and the percentage of
residential accounts recycling. After much discussion, the
UAC recommended that a single rate of $12.75 be retained with
a review in six months and retain the option of a rebate to
those who participate in the recycling program at the six-
month point. The minority opinion preferred two rates and
wanted a review of the collection methods used in the City
with the emphasis placed on a system that would be able to
charge for the amount of garbage being disposed.
A differential rate for those not recycling could be
administered by:
Lower rate triggered by the request for the containers
and then randomly monitored for usage;
0 Use of automatic reading meters (ARMS)-like bar code;
Coupons given to those who recycle - write address on the
coupon when container emptied;
Lottery for those who recycle - give out free collection
for some period.
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Additional suggested changes to the Ordinance were:
0 To make the minimum charge at the landfill $2.00
Include that the Landfill Attendant be the person
determining if the yard waste is clean and compostable.
The Committee also wanted to leave the possibility open to
provide rebates to those who recycled during the first six
months.
B. Recently Announced BPA Rate Increase:
Gary Leaf reviewed the proposed BPA rate increase and
explained the reasons for the increase and the impact they
would have on City Light. At the present time, BPA is looking
at a 5% increase which would increase wholesale power costs to
the City by approximately 4%. However, it was pointed out
that several of the assumptions BPA made in proposing a 5%
increase have been questioned by the utility industry or have
proven overly conservative by recent events. It is more
probable that the BPA will be closer to 3% which would
increase costs to the City by approximately 2%.
C. Need For and Timing of City Light Rate Increase:
Discussion moved to the need for City Light to increase its
own rates this Fall. A proposed timeline was presented to the
UAC indicating decision points in the process. The UAC agreed
that electric rates should be adjusted to coincide with the
BPA increase and agreed that the proposed timeline was a good
one to follow.
D. Use of City Light Reserves:
While discussing rates, the issue of the Light Fund reserves
was brought up. Currently the reserve is in excess of
$5,000,000. It was pointed out that a prudent reserve level
for a utility our size should be between $1.5 and $2 million
so that we have an excess reserve of over $3 million. After
some discussion, Staff was directed to prepare an issue paper
to suggest options available for reducing the reserves down to
a more appropriate level. It was also suggested that a policy
be established governing the level and uses for a reserve
fund.
E. Light Department Policy Revisions:
A review of proposed internal service policies for the Light
Department was conducted. Director Titus reviewed six service
policies governing how the department would deal with
customers under varying circumstances. The UAC agreed with
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all of the proposals and voiced support for those changes
which would tend to bring the policies of the Light Department
more in line with those of the other City utilities. Policies
will become effective in 90 days.
F. Possible Implementation of an Apprenticeship Program:
Establishment of an apprenticeship program for journeyman
lineman was discussed and the UAC indicated that they felt
this would be a positive step for the department and the
community. They suggested that Staff come back to the UAC at
a future meeting with details of how a program would be
implemented and what the costs would be.
V. Adjournment:
Due to the lateness of the hour, it was agreed that the
remaining items on the agenda would be postponed to a later
date. T~he meeting was adjourned at 7:20 p.m.
City Cfe~k~l --~
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