Loading...
HomeMy WebLinkAboutMinutes 05/11/1992UTlLITY ADVISORY COMMITTEE Port Angeles, Washington May 11, 1992 II. III. IV. Call to Order: Mayor Hallett called the meeting to order at 4:35 p.m. Roll Call: Members Present: Jim Hallett, Thomas Hunt, Gary Braun, Joe Michalczik, and Richard Wight. Members Absent: None Staff Present: J. Pittis, B. Titus, K. Godbey, B. Upton, B. Jones, S. Kenyon, D. Sawyer, and R. Ellsworth. Guests Present: Margaret Crawford, Gay Knutson, and Carl Alexander. Approval of Minutes: Councilman Wight moved to approve the minutes of the April 13, 1992 meeting as written. The motion was seconded by Thomas Hunt and carried by a majority vote, with Councilman Braun abstaining due to absence from that meeting. Discussion Items: A. Presentation on Community Action Council's Possible Involvement in Voluntary Program to Assist Low Income Citizens: Wendy Sternshein This item was removed from the agenda due to Ms. Stemshein's illness. Presentation from Growth Management Advisory Subcommittee on Draft Utility Policies for Inclusion in Comprehensive Plan Margaret Crawford, Gay Knutson, and Carl Alexander were present as representatives of the Growth Management Advisory Committee's Utilities/Public Facilities/Services Subcommittee. Ms. Crawford sought the input of the Utility Advisory Committee as this subcommittee moves forward in working on an update of certain portions of the Comprehensive Plan. The Comp Plan is presently lacking in the area of utilities, and certain generalities must be expanded to include the recognition of utilities as being part of City government, particularly due to the growth -1- Utility Advisory Committee May 11, 1992 management requirements. Ms. Crawford indicated it would be appropriate to include what levels of service are to he in place in conjunction with development in the City. Ms. Crawford expressed the desire to incorporate language which clarifies or assures a lesser amount of interpretation problems and questions of semantics, hopefully through specific definitions. At this point, the subcommittee has not dealt with annexation policies as they relate to the provision of utilities to the annexed areas. Discussion followed concerning urban growth areas, and Councilman Wight expressed the opinion that, when the UGA was established, the City accepted a certain amount of responsibility in assuring the placement of the necessary infrastructure. The question needs to be answered as to when that infrastructure is put in place. Carl Alexander pointed out that certain issues being addressed will require input from the Utility Advisory Committee, such as the placement of underground utilities and potential impacts, for instance, on cable TV lines, PUD lines, etc. Further, the UAC could be helpful in identifying future modes of service and future technologies. The Comprehensive Plan, thus far, has served as a guideline; however, Mr. Alexander stressed the point that it must now become a much more controlling document. Ms. Crawford concluded by inviting UAC input by early June in order to provide the subcommittee ample time to prepare the preliminary draft. It was agreed that staff would prepare pertinent information for the June 8, 1992 Utility Advisory Committee meeting so the issues can be addressed further. C. Proposal to Move from 25 to 30 Day Payment Period on Utility Accounts Mayor Hallett reviewed the memorandum from Customer Service Manager Kenyon concerning the proposal to move from a 25 to 30 day payment period on utility bills. At the present time, the City bills for utilities once every 30 days with payment due upon receipt. Accounts are considered delinquent after 25 days. Because a number of senior citizens are on fixed incomes and unable to make payment in the specified time, and because the new utility billing system will handle delinquencies in a more efficient manner, it is being requested that the City convert to a 30 day payment period. Finance Director Godbey noted this is a change in the process, a consideration which will arise periodically due to the conversion. Councilman Wight moved to recommend to the City Council that the recommendation to move from a 25 to 30 day payment period on utility accounls be accepted as presented. The motion was seconded by Thomas Hunt and carried unanhnously. D. Proposal to Change Delinquent Interest Charges on Utility Accounts A memorandum on changing delinquent interest charges was reviewed by Mayor Hallett. The City presently assesses delinquent interest of one percent per month on any unpaid balance with -2- Utility Advisory Committee May 11, 1992 a $0.50 minimum. With the new billing system, it is proposed that the City change to a four percent finance charge with a $2.00 minimum. Continuing to assess interest in the current manner can be accommodated in the new system; however, a programming change would cost $9,100. Councilman Braun moved to accept the recommended change in the delinquent interest charges and forward the recommendation to the City Council. The motion was seconded by Councilman Wight and carried unanimously. E. Consideration of Solid Waste Rate Increase Finance Director Godbey indicated the information submitted is, at this point, intended to serve as information concerning the need for a Solid Waste rate increase. Current estimates indicate the landfill cell construction will cost approximately $3 - $3.5 million which results in an additional debt payment of $252,000 in 1992, which is approximately $100,000 more than that estimated in the solid waste rate study conducted in 1991 for the purpose of determining the amount for a bond issue to finance the construction. It is staff's recommendation that the solid waste rate study be updated, with recommendations to be forthcoming as to the proposed rate increase. Director Godbey explained the timing of the proposal and subsequent adoption of an ordinance which is essential to the bond rating. Councilman Braun inquired as to how long such an increase would be in effect, and Public Works Director responded every effort will be made to project rates for a two-year period. Councilman Wight moved to authorize staff to update the Solid Waste rate study and return with recommended cate increases, to include a methodology by which magazines and phone books can be collected for recycling purposes. Thomas Hunt seconded the motion. Discussion ensued concerning the current contract for recycling and whether the language can be rewritten to include Councilman Wight's recommendation. It was agreed staff will return with a recommendation in this regard. In addition, Joe Michalczik suggested an open house at the Landfill, perhaps during the Derby Days festivities. A vote was then taken on the motion which carried unanimously. F. PUD Water Contract Discussion Public Works Director Pittis reported three meetings had been held with representatives of the PUD on the water contract, and the proposed contract before the IJAC at this time was submitted to the PUD this past week for consideration. Director Pittis reviewed the contract language and highlighted some of the more notable areas, -3- Utility Advisory Committee May 11, 1992 such as: the agreement has been rewritten for one year only; the agreement recognizes there are certain mutual benefits from cooperative efforts in the operation and maintenance of respective water systems and in planning for future supplies; the agreement sufficiently safeguards and protects the needs of Port Angeles citizens; and the amount to be remitted has increased from twenty-five cents to thirty-two cents per 100 cubic feet per month. Director Pittis indicated the PUD is seeking another source of water at this time. Lengthy discussion ensued, and a question was raised as to whether there will still be a problem in the area of Golf Course Road, in view of the new developments scheduled for the area. Director Pittis indicated the developments underway at present can be served, and if there are problems, the agreement allows the PUD flow to be restricted. However, any future anticipated developments will, in fact, create a problem in the absence of a reservoir in that vicinity. Director Pittis indicated that, if the PUD agrees to the terms of the contract, the matter will then be forwarded to the City Council for consideration. Should any problems arise in the meantime, the matter will be returned to the Utility Advisory Committee. Councilman Wight moved to have staff negotiate the water contract with the PUD. The motion was seconded by Councilman Braun and carried unanimously. Choose UAC Delegate to Attend BPA Programs in Perspective Meeting in Seattle in July City Light Director Titus briefly reported on meetings scheduled by BPA throughout the region to address issues affecting its customers. The meetings are geared toward policy makers and managers and address major issues facing the industry. Director Titus indicated this year's meeting is particularly important in view of anticipated power shortages and the probability of double digit rate increases. He inquired as to whether any members of the Utility Advisory Committee would like to attend the Programs in Perspective Meeting in Seattle on July 15. Councilmen Wight and Braun, and Joe Michalczik and Thomas Hunt all indicated an interest in attending. Director Titus will provide follow-up. Update on City Light ~nancial Position and Potential Scheduling of Future Rate Increases Mayor Hallett summarized the information submitted in the consideration of City Light's financial position. He referenced the UAC's previous decision to incorporate a 2% refund from City Light reserves, a matter which had not been finalized. At this time, it has been requested that the refund be given further consideration, in light of a 5-year financial forecast recently prepared which indicates there is a need for a light rate increase in 1993. Light Director Titus reviewed the financial forecast in terms of projected revenues, expenditures, -4- Utility Advisory Committee May 11, 1992 and fund balances. Revenues are not expected to rise at the same rate as expenditures, especially with the expected rate increases from BPA. It is expected that rates must increase by 20% by 1993. In the discussion that followed, Councilman Wight felt the public would be amenable to no refund of reserves and would accept a "ratcheted" rate increase as opposed to an increase all at once. Joe Michalczik cautioned the members of the UAC that the mills would not have budgeted for such an increase, a matter which must be a consideration in this discussion. At this point, the extent of the increases has not been presented. Mr. Michalczik noted it may be timely to actively engage the public in energy conservation efforts. Discussion followed, and the Utility Advisory Committee was in agreement this matter should be taken to the public as soon as more details are available. Director Titus indicated the extent of the BPA increase will be known this fall, and the City could implement an increase at the earliest in October, 1992. Councilman Wight expressed the opinion that the City should wait until BPA announces an increase before instituting any change in the rate structure. By consensus, the members of the Utility Advisory Committee agreed this matter should be taken to the City Council for discussion. ln£ormation Items: Director Titus had distributed information on certain items with no action taken: BPA 10 year financial plan; BPA power sales contract renegotiation, cost of service rate making, and City Light affiliations. VI. Late Items: None. VII. Next MeetinP: The next meeting of the Utility Advisory Committee will be held on Monday, June 8, 1992, 4:30 p.m. VIII. Adiournment: The meeting was adjourned at 6:52 p.m. -5- City clerk (-.I