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HomeMy WebLinkAboutMinutes 04/08/1996UTILITY ADVISORY COMMITTEE Port Angeles, Washington April 8, 1996 Call to Order: Chairman Michalczik called the meeting to order at 4:30 p.m. Roll Call: Members Present: Members Absent: Staff Present: Public Present: C_raJy Braun, Orville Campbell, Larry Doyle, Joe Michalczik, and Bill Myers. None. J. Pomeranz, C~ Knutson, B. Titus, J. Pittis, C. Hagar, S. McLain, R. Ellsworth, and G. Kenworthy. J. Nelson and J. Honnold. 1II. Approval of Minutes: Bill Myers moved to approve the minutes of the March 11, 1996, meeting. Councilman Campbell seconded the motion, which carried unanimously. Chairman Michalczik stated that there were two late items from the Public Works Department, Treatment Plan Outfall and a water sale issue. He asked that these items be placed first on the agenda, and the Committee agreed. IV. Late Items: A. Wastewater Treatment Plant Outfall Diffitser Director Pittis distributed copies of a draft letter which is proposed to be sent to the Washington Department ofFish and Wildlife and gave a brief history of this project. Director Pittis explained that the Department ofFish and Wildlife has requested that the City not riprap over the diffuser pipeline and bury the pipe deeper so that habitat can grow over the top of it. This letter proposes that the City agrees to this, as well as to disposal of trenched material. The City will also conduct a geoduck survey, explore alternatives for reducing marine discharge of treated wastewater during a 2001 permit review, and will offset the new diffuser from the existing diffuser by 20 feet rather than 75 feet. The old diffuser will be filled with sand to prevent it from collapsing and disrupting the sediments. Unforttmately, this means the cost of the project will be closer to $1 million than to the $350,000 as originally hoped. A brief discussion followed. This was an information only item, and no action was taken. -1- Utility Advisory Committee April 8, 1996 B. Water Sale Issue Jack Pittis distributed a handout and Ralph Ellsworth, Water Superintendent, stated that Terry G. Spragg of Seattle wishes to purchase 1.5 million gallons of water from Port Angeles. Mr. Spragg has developed a bladder to transport large amounts of water to dry areas such as southern California and the Mideast. Mr. Spragg approached the Port of Port Angeles to purchase the water through the Port's meter. Discussion followed, and Superintendent Ellsworth pointed out that if this request had come in August, the answer would be a definite no. Although this amount of water is available at this time of the year, the Tribe may well be concerned about such a large amount of water being sold for outside city use. Councilman Campbell asked if the sale would benefit the community and/or create jobs, and Manager Pomeranz stated any benefits would be minimal. Superintendent EIlsworth explained that Mr. Spragg is simply attempting to sell the bladders he developed, and that is why he is turning this into a media event. He has no plans to purchase water on a regular basis. At~er further discussion, it was the consensus of the Committee that this water sale would be of no benefit to the community, and Councilman Braun moved to recommend the Council deny Mr. Spragg's request to purchase 1.5 million gallons of water. Bill Myers seconded the motion, which carried unanimously. V. Discussion Items: A. Update on BPA Contract Negotiations and BPA Rate Case Director Titus distributed a packet which summarized the BPA rate case. The initial average cost/KWH in the initial proposal was 24.9 mils; the supplemental proposal was 24.9 mils; and the settlement proposal is 24.4 mils. Final rates have not yet been set, and FERC has the final approval of the rates. It is possible that the final rates could be different from what comes out of the settlement process, as FERC has the authority to approve or disapprove of Bonneville's rates. IfFERC feels some portion of the charges are inappropriate, they have the power to change the rates. Director Titus will continue to keep the Committee informed; however, Bonneville's proposed final rates will probably not be known until mid-May. Director Titus reviewed and explained the six BPA contract negotiation options which were also included in the handout. Option 3, which allows for an 80% or higher commitment to BPA, seemed best as it allows for an opportunity to test power markets and save a significant amount of money. Director Titus informed the Committee that after the year 2001, the City will be able to purchase any amount of power from any source available. However, for up to seven years, the BPA would not be obligated to sell power to any utility which had removed part of its load. Director Titus advised the Committee that any savings realized by load diversification could be eliminated by legislative actions to regionalize conservation or fish and wildlife restoration costs. Discussion followed, and Director Titus responded to questions posed by the Committee. This was an information only item, and no action was taken. -2- Utility Advisory Committee April 8, 1996 Next Meeting: The next meeting of the Utility Advisory Committee will be held on Monday, May 13, 1996, at 4:30 p.m VIII. Adjournment: The meeting adjourned at 6:02 p.m. Deputy City Clerk -3-