HomeMy WebLinkAboutMinutes 06/06/1994UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
June 6, 1994
L Call to Order:
Councilman Braun called the meeting to order at 4:32 p.m.
Roll Call:
Members Present: Gary Braun, Cathleen McKeown, and Joe Michalczik.
Members Absent: Bill Myers and Larry Schueler.
Staff Present: J. Pittis, B. Titus, C. Hagar, C. Knutson, B. Jones, R. Ellsworth, G.
Leaf, K. Godbey, S. Kenyon, and J. Pomeranz.
IlL Discussion Items:
A. Water and Wastewater Cost of Service
Councilman Braun reviewed the information provided by Finance Director Godbey and Gary
Leaf, Power Analyst.
Gary Leaf recapped the discussion from the last meeting and reviewed the memo from the
packet. Mr. Leaf explained that commercial rates need to increase substantially more than
residential in order to avoid cross-subsidization. Staff recommends the first installment increase
be the same for all rate classes, and gradually adjust the subsequent increases for COS
differentials so that each class pays its own way. Discussion followed.
Concern was expressed over people who are frugal with their water consumption paying the same
amount as someone who waters their lawn on a regular basis. It was felt that a tiered rate would
be more equitable. Concern was also expressed that putting a flat rate on wastewater would
discourage water conservation.
After further discussion, Joe Michalczik moved to reconunend to the Council adoption of the
ordinances raising water rates by 25% and wastewater rates by 15%, as reconunended by
EES and staff. Councihnember McKeown seconded the motion, which carried
unanimously.
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IV. Approval of Minutes:
Councilmember McKeown moved to approve the minutes of the February 14, 1994,
meeting as written. Joe Michalczik seconded the motion, which carried
unanimously.
III. Discussion Items: (Continued)
B. Discussion of Curbside Recycling Contract (Verbal)
Public Works Director Pittis distributed copies of a draft letter to Environmental Waste Systems
regarding contract negotiations for the recycling program. Bob Jones explained that the recycling
contract with EWS has expired and the City is currently negotiating a new one. EWS is
requesting a rate increase from $5.79 to $7.79 per customer per month. Staff is currently
searching for ways to avoid having an immediate rate increase, and several of the options are
mentioned in the proposed letter to Environmental Waste. If an agreement cannot be reached
with EWS, then the City will proceed with the bid process.
In the meantime, staff will survey customers to discover what levels of service they expect and
what they are willing to pay for them and will continue to prepare bid documents to go out for
bid if negotiations fail. Discussion followed. A special meeting was set for June 20, 1994, at
4:30 p.m. in the Public Works Conference Room.
C. Utility Deposit Increase
Customer Service Manager Kenyon reviewed his memo to the Committee and explained that the
money collected for utility deposits is placed in a separate account, and the City pays the
customers pass book interest on the funds. This money is refunded to the customers if they
discontinue service with the City, or when a customer has been with the City for one year, been
delinquent no more than twice, never had a field collection, NSF check, or been discontinued
for non-payment. Discussion followed.
Councilmember McKeown moved to recommend an increase in single family residence
utility deposits from $160.00 to no more than $250.00. After further brief discussion, Joe
Michalczik seconded the motion, which carried unanimously.
D. Establishing Fees for Collections Pe,rformed by Mail
Customer Service Manager Kenyon reviewed the information he had provided. It was noted that
the proposed fee is $6.00 less than the cost of field collections and will give the Field
Representative more time for other duties. After brief discussion, Councihnember McKeown
moved to recommend the establishment of a $16.00 fee for collections performed by certified
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June 6, 1994
mail. Joe Miehalczik seconded the motion, which carried unanimously.
E. Increase in Connect/Disconnect Fees
Customer Service Manager Kenyon reviewed the information he had provided.
Connect/disconnect fees are not at cost of service levels. Staff is requesting the raise in these
fees in order to be consistent. It costs just as much to turn service off and on as it does to
perform a disconnection or a field collection. After a brief discussion, Councilmember
McKeown moved to recommend an increase in connection fees to $22.00. Joe Miehalczik
seconded the motion, which carried unanimously.
F. Coming Changes to Electric Utility Industry
This was an information only item. Light Director Titus reviewed the issue paper he had
provided and explained that no action was necessary but that he wanted the UAC to be aware
of the coming changes. There was a brief discussion. No action was taken.
G. Possibility of a BPA Rate Increase This Fall
This was an information only item. Light Director Titus reviewed the issue paper he had
provided and explained that the spill program may result in a BPA rate increase. There was a
brief discussion. No action was taken.
H. Solid Waste Tax Exemption for Federal Accounts
Finance Director Godbey explained that it was brought to her attention that Federal accounts are
exempt from paying the 4.6% excise tax on solid waste services. Staff is requesting approval
of an ordinance amendment reducing all federal accounts by 4.6%. After a brief discussion,
Joe Michalczik moved to reconunend the adoption of necessary ordinances decreasing
federal solid waste accounts by 4.6%. CounciLmember McKeown seconded the motion,
which carried unanimously.
V. Late Items:.
None.
VI. Next Meeting:
A special meeting of the Utility Advisory Committee will be held on June 20, 1994, at 4:30 p.m.
The next regular meeting of the Utility Advisory Committee will be held on Monday, July 11,
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1994, at 4:30 p.m.
VII. Adjournment:
The meeting adjourned at 6:30 p.m.
Chairman ~ )
Deputy City Clerk