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
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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
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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,
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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,
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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.
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City clerk (-.I