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HomeMy WebLinkAboutMinutes 06/10/1991UTILITY ADVISORY COMMITTEE Port Angeles, Washington June 10, 1991 Call to Order: Chairman Hallett called the meeting to order at 4:02 p.m. II. Roll Call: Members Present: Jim Hallett, Richard Wight, and Jeff Rosbach. Members Absent: Guests Present: Staff Present: B. Mike Lemon Thomas Hunt Dean Reed, Daishowa America J. Pomeranz, C. Knutson, J. Pittis, K. Godbey, Titus, B. Upton, S. Hursh, S. McLain and G. Leaf. III. Approval of Minutes: The minutes of April 30, 1991, were approved as written. IV. Discussion Items: A. Electromagnetic Fields (EMF): Light Engineering Manager Hursh reviewed studies conducted where electromagnetic fields (EMF) created by overhead power lines have been linked to increased cancer rates. Future studies will compare levels and length of exposure. Potential impacts on City Light are such that consideration might be given to the establishment of certain requirements in terms of underground lines and the like. A policy of the PUD on Electromagnetic Fields had been distributed to members of the UAC for review. Manager Hursh conducted a demonstration for the members of the Utility Advisory Committee which indicated increased exposure to EMF by the use of a fan. City Light Director Titus indicated study results on EMF might well affect the manufacturing of appliances more than utilities. Attorney Knutson reported he will be attending a seminar for electrical utility attorneys at which time more information in this regard will be obtained. The Committee will be kept apprised of further developments. In the meantime, the staff of City Light will maintain a type of library for access by the public; EMF readings will also be provided upon request. Utility Advisory Committee June 10, 1991 Page Two Revised 1991 Cost-of-Service Study and Electric Rate Options: City Light Director Titus presented information pertinent to an updated cost-of-service study to reflect the effects of the proposed 1992 budget and BPA's announced rate increase. The findings of the study show that revenues under the current rate schedules will fall approximately 2.5% under the expected expenses. In explaining the cost-of-service study, Director Titus indicated there is a need to increase residential rates by 4.17% and decrease municipal water rates by 9.71%. City Manager Pomeranz suggested it might be appropriate and timely to have the numbers reviewed by the same consultants who conducted the cost-of-service study for the Solid Waste Division. Councilman Wight supported this suggestion in that it is almost a requirement for a public utility to periodically seek outside review of rate structures. After further discussion, Councilman Wight moved to have the City Manager obtaln quotes for a City Light cost-of-service study, and to have the matter reviewed by the City Council if the quotes exceed $4,000. If quotes do not exceed $4,000, the City Council is to be advised with an informational memo. Jeff Rosbach seconded the motion which carried unanimously. In the ensuing discussion, Director Titus indicated there is a need to establish rate schedules for each of the rate classes, subject to the review of the consultant. Also, there is a need to identify the use of the reserve fund. Rate design issues were considered and Jeff Rosbach expressed concern about the street light allocation which is funded at a 50% level by the industrial sector. It was his opinion this funding should come from City funds, with consideration given to which rate class benefits most from the street lighting. Dean Reed, Daishowa America, agreed with comments made by Jeff Rosbach on the issue of street lighting. Discussion was held concerning rate schedules in general, with opinions being expressed that each rate class should pay for the actual service being received. Options identified were a full cost of service with rate change or increase rates $1.00 plus institute an incremental increase in cost from the previous year with City Light absorbing the remainder. In addition, the suggestion was made to move all other rate classes immediately to full cost of service but to institute an incremental increase for residential on a 50/50 basis. Light Director Titus will provide statistics for the different options at a future meeting. Utility Advisory Committee June 10, 1991 Page Three In considering the use of City Light reserve funds, the recommendation had been submitted to offset 1% of the projected rate increase by drawing down our reserves. There is also a possibility of funding such projects as the PCB cleanup. Director Titus indicated whatever option is pursued, it must be assured that all customer classes benefit by the action. Consideration was given to the advantages and disadvantages of a customer refund, possibly by implementing a credit on accounts. However, concern was expressed that such an effort might result in artificially low rates. It was agreed that Director Titus should proceed with the preparation of rate schedules, incorporating the 1% draw down on reserves and the other suggestions on reserve fund usage, such as PCB cleanup. Provision of Electrical service to Residents Currently Served by PUD: Director Titus reviewed a proposed agreement between the City and the PUD whereby residents in the Cristman Place area off Golf Course Road (Uplands Subdivision) would receive electrical service from City Light. Discussions are being held wherein a formula for determining compensation would use City Light replacement costs as a starting point and then be adjusted upward or downward depending on the application of the formula finally agreed to in the Service Territory Agreement. Approximate costs are estimated to be $54,000 with a likely decrease when finalized. Jeff Rosbach indicated the figure should be based on replacement costs less depreciation. Members of the UAC agreed a recommendation should be forwarded to City Council supporting the proposed transfer of customers from the PUD to City Light. D. Wastewater Rates: Finance Director Godbey reviewed for the Utility Advisory Committee the previous analysis conducted on the construction of the secondary treatment plant. All figures in the analysis have been updated, including grants, loans, etc. In order to meet revenue projections, it would be necessary to increase wastewater rates in the amount of $3.00 per month, or 15%. A cost-of-service study would be conducted in 1993 or 1994. The updated figures assume zero growth. After further discussion, it was moved by Jeff Rosbach to accept the recommendation of the Finance Department and to recommend to the city Council to increase wastewater rates by $3.00 and to increase the l&tecomer charge by $35.00. The motion was seconded by Councilman Wight and carried unanimously. Utility Advisory Committee June 10, 1991 Page Four E. Regular Meeting Dates/By-Laws Attorney Knutson presented proposed By-Laws for consideration by the Utility Advisory Committee. In considering regular meeting dates, it was moved by Jeff Rosbach and seconded by Councilman Wight to conduct a monthly meeting of the Utility Advisory Committee on the second Monday of each month at 4:30 p.m. A vote was taken on the motion which carried unanimously. Councilman Lemon moved to adopt the By-Laws of the Utility &dvisory Committee as presented. The motion was seconded by Jeff Rosbach and carried unanimously. Adjournment: The meeting was adjourned at 6:20 p.m. Chairman Clerk