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HomeMy WebLinkAboutMinutes 04/30/1991UTILITY ADVISORY COMMITTEE Port Angeles, Washington April 30, 1991 Call to Order: Chairman Hallett called the meeting to order at 4:35 p.m. II. Roll Call: Members Present: Members Absent: Jim Hallett, Richard Wight and Thomas Hunt. Mike Lemon and Jeff Rosbach. Staff Present: J. Pomeranz, C. Knutson, K. Godbey, B. Titus, J. Pittis, B. Upton, G. Leaf, S. McLain, and B. Jones. III. Approval of Minutes: The minutes of March 12, 1991, were approved as written. IV. Discussion Items: Proposed Changes to General Service Rate Schedules and Rate Ordinance: City Light Director Titus reviewed the proposed changes to the General Service Rate Schedules due to confusion which existed over the demand threshold by which a general service customer would be placed on the demand rate schedule. The rate schedules and rate ordinance should clarify the original intent of the rate change made effective this past October. The Utility Advisory Committee then moved to consideration of Item B. on the agenda, as Items A. and B. would be included in one ordinance to be presented to the City Council. Proposal to Adopt New Rate Schedule and Rate Ordinance for Non-Profit Tax Deductible Organizations: Director Titus then reviewed the proposed rate schedule for non-profit, tax deductible organizations which was being presented due to the negative impact felt by several general service demand customers at the time the new rates were adopted in October, 1990. During meetings held with some of the affected organizations, it was agreed the best solution would be to create a new rate class and rate schedule which would include the affected group. It is proposed that a rate class consisting of all non-profit, tax deductible organizations be established and place those customers on a -1- Utility Advisory Committee April 30, 1991 Page Two new rate schedule which does not have a demand charge. The new rate complies with cost of service principles. Director Titus noted some of the customers will realize a slight increase; most will be marginally affected by this new rate schedule. After limited discussion, Councilman Wight moved to recommend to the City Council approval of the General Service Rate Schedules and Non-Profit, Tax Deductible Rate Schedules as presented. Thomas Hunt seconded the motion which carried unanimously. C. Proposed Policy and Procedure for Use of Light Fund Reserves: City Light Director Titus led discussion on the possible role Light Fund Reserves will play in meeting 1992 revenue requirements, particularly in light of the fact rates will need to be increased later this year. He reviewed the anticipated BPA rate increase and how the Fund Reserves might help offset a portion of that increase. Reserves might also be used to refinance General Fund debts and pay for PCB cleanup. Director Titus presented a proposed Policy and Procedure for consideration in assuring a target level of Light Fund Reserves in the amount of $2 million. Lengthy discussion ensued concerning the possibility of the City underwriting 1% of the expected BPA increase of 3%. In addition, the Utility Advisory Committee addressed itself to the Policies & Procedures; it was agreed the last sentence in Section 5.2.3 was included erroneously and should be deleted. Councilman Wight moved to recommend adoption of the Policies & Procedures. Thomas Hunt seconded the motion which carried unanimously. The Committee agreed the City Council should be given the information pertinent to the Light Fund Reserves. Gary Leaf distributed information pertinent to a Cost of Service Study which is being conducted in conjunction with the BPA rate increase. Mr. Leaf discussed the timeline for the 1991 rate increase. In view of the fact more work needs to be done in relation to the Cost of Service Study, the members of the Utility Advisory Committee directed Mr. Leaf to proceed with the study and be prepared to address the matter again at a meeting to be scheduled in June. D. Electromagnetic Fields (EMF): The staff member who would be addressing this subject is -2- Utility Advisory Committee April 30, 1991 Page Three presently out of town; the matter was deferred to a future meeting of the Utility Advisory Committee. E. Information on Draft Service Territory Agreement with PUD: Director Titus reviewed the discussions taking place between the City and the PUD on a territory agreement. At the present time, an agreement still needs to be reached with regard to compensation to be paid. In addition, there are certain areas outside the City limits which PUD feels the City could more appropriately serve, a matter which will need to be addressed by the City Council. Director Titus indicated this matter will return to the Utility Advisory Committee for further review; a map will be submitted of the proposed boundaries. F. Proposed Resource Recovery Project at Landfill: Superintendent of Solid Waste Jones reviewed the analysis conducted on the proposed Resource Recovery Project at the Landfill. Superintendent Jones indicated the program could be viable if there were a current market and if the D.O.E. would allow such a program to substitute for curbside recycling. It would not be economically sound to support both curbside recycling and resource recovery. Further, Mr. Aldrich's request for a financial "window of opportunity" could not be granted due to the fact such a program would have to be bid. After limited discussion, members of the Utility Advisory Committee agreed such a program could be reviewed again in the future at the time it might be more economically feasible. It was requested that Public Works so advise Mr. Aldrich in writing. Finance Director Godbey advised the UAC members she would be prepared to discuss wastewater rates at the next meeting of the Utility Advisory Committee. Ve Chairman Adjournment: The meeting was adjourned at 6:45 p.m. City Cl~k ~ /- -3-