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HomeMy WebLinkAboutMinutes 05/11/1998 UTILITY ADVISORY COMMITTEE Port Angeles, Washington May 11, 1998 I. Call to Order: Chairman Doyle called the meeting to order at 3:00 p.m. II. Roll Call: Members Present: Councilmen Campbell, Doyle, and Williams, Bill Myers and Joe Michalczik. Members Absent: None. Staff Present: C. Knutson, J. Pittis, B. Titus, B. Collins, and C. Hagar. III. Approval of Minutes: Councilman Williams moved to approve the minutes of the April 13, 1998, meeting. Councilman Campbell seconded the motion, which carried unanimously. IV. Discussion Items: A. Morse Creek Fish Enhancement Project Public Works Director Pittis stated this was for information only. He reviewed the memo and informed the Committee that Attorney Knutson had spent some time with Dick Goin, a project advocate, discussing this issue. Discussion followed, and Chairman Doyle asked Attorney Knutson for additional input on the issue. Attorney Knutson stated his discussion with Mr. Goin centered mostly around the Elwha River and how the Endangered Species Act applies to that. The proposed listing for endangered species includes what is called an Evolutionarily Sensitive Unit (ESU). The discussion revolved around whether the Elwha River Chinook should be included in the listing for the Puget Sound ESU. The City must submit comments to the National Marine Fisheries Service regarding how it would deal with this proposed listing if it passes and whether the Elwha Chinook should be included with the Puget Sound Chinook. Attorney Knutson thought that the City could receive credit with Federal and State regulators for projects such as the Morse Creek fish enhancement/acclimation pond project as well as the Elwha River stock preservation channel project that has been proposed by the Elwha S'Klallam Tribe. He also stated that the State legislature has appropriated several funding sources for these kinds of projects so that there may be funding through a grant application to the State. - 1 - Utility Advisory Committee May 11, 1998 Director Pittis stated there are two reasons to consider this project, to aid the City in the ESU issue and because it's part of our community and the sport fishery is important to us. Attorney Knutson stated a third reason is because it could tip the balance as to whether the Morse Creek Hydro project is economically viable to continue. Deputy Director Titus concurred that the fish enhancement project could result in the hydro project being allowed to operate for several more months each year, which would increase is profitability. Discussion followed, and Director Pittis and Attorney Knutson responded to questions and provided clarification. No action was taken. B. Landlocked Electrical Facilities Deputy Director Titus reviewed the information contained in the packet and the history of this issue. He stated he is not asking for any action on this item at this time; however, there are several property owners in the Southwood area anxious to have their power lines run underground. These owners have already contacted the City Manager's office and will probably be contacting Council members also. Staff felt it imperative to give the Council all the information on this issue including total cost, before asking for any decision. Total cost for all such large conversion projects is still being calculated, and staff will return to the Committee when all the information is in hand. Discussion followed. Deputy Director Titus reminded the Committee that a recent change to the City's line extension policy did away with the $1000 credit toward the cost of changing from overhead to underground line conversion. It is estimated that the cost of converting just the Southwood area (36 homes) will be $130,000. This has not been budgeted for 1997. Director Pittis stated customers are being informed that the conversion will not take place this year. If this and other landlocked areas are converted, it is possible that the total cost would be $500,000. Councilman Campbell felt that it was unfair to ask all rate payers to share in the cost of something that benefits only a few people. Discussion followed regarding the obligation of the home owners vs. rate payers to pay this expense and the utility easements for this area. Joe Michalczik stated undergrounding the utilities was an advantage to the property owners and agreed with Councilman Campbell that the responsibility for paying should lie with the owner. He felt giving a discount or rebate was reasonable, but performing this service for free was not. Bill Myers spoke in defense of the homeowners, as they are the victims of a bad plat. Further discussion followed regarding maintaining of easements and the cost involved. Councilman Campbell felt a compromise could be arrived at which would be fair to rate payers as well as property owners. Mr. Myers stated that was the reason the City was absorbing $1000 of the cost involved in undergrounding the utilities to these areas. It allowed for sharing the cost of the change over. Director Pittis stated this item would be returned to a future Committee meeting after staff has gathered all the information regarding total cost, benefits to the utility and benefits - 2 - Utility Advisory Committee May 11, 1998 to the customers. B. Information on HB2831 (Unbundling) Deputy Director Titus reviewed the information contained in the packet. Mr. Titus explained that small electric co-ops and PUD's were submitting their information together, thereby giving an average figure rather than having individual responses. Discussion followed, and Deputy Director Titus responded to questions posed by the Committee. Councilman Campbell felt this information would be useful to develop, and once gathered, a decision can be made on how to disseminate it. Following further discussion and clarification, Deputy Director Titus stated staff would gather the information and attempt to have it ready for UAC and Council prior to the end of the year. At that time, staff could see what groupings might be placed together. The UAC and Council may be more comfortable adding our data to another group's information. Councilman Campbell moved to recommend that the City Council approve the study, develop the information, but not be concerned with deadlines of submittal. Use of the information can be decided at a later date. Bill Myers seconded the motion, which carried unanimously. D. Marine Bluff Issues This item was deferred to the next meeting. V. Information Only Items A. Washington, D. C. visit by Public Power Representatives. No discussion, no action. VI. Late Items A. Jefferson County Disposal Request Director Pittis stated he had sent a letter to Jefferson County counter offering $21.17 per ton with a 50/50 split of transportation savings. He received a reply stating Jefferson County is doing an RFP for long hauling and would like to explore the possibility of a joint long haul agreement after closure of the Port Angeles landfill. Also in that letter, Jefferson County made a counter offer of $21.17 per ton and 40% of transportation savings. It was estimated that 40% of the transportation savings would be $5.94; therefore, Jefferson County would pay $27.11 per ton to use the landfill. This proposal is conditional upon approval of the Jefferson County Board of Commissioners. Discussion followed. Joe Michalczik was uncomfortable charging Jefferson - 3 - Utility Advisory Committee May 11, 1998 County one third the amount we charge City residents. Councilman Campbell explained that Jefferson County would be paying the $1 million shortfall for landfill closure. Director Pittis informed the Committee that this contract would be of benefit to the City through the year 2000; it would be less advantageous after that. Mr. Michalczik suggested the contract end in the 2000, then renegotiate. Lengthy discussion followed; no action was taken. Deputy Director Titus gave a report on the Valley Street transformer. VI. Next Meeting: The next meeting will be June 8, 1998, at 3:00 p.m. VIII. Adjournment: The meeting adjourned at 4:55 p.m. a Deputy City Clerk - 4-