HomeMy WebLinkAboutMinutes 06/27/1990UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
June 27, 1990
I. Call to Order
Chairman Hallett called the meeting to order at 4:15 p.m.
II.
Roll Call
Members Present: Jim Hallett, Mike Lemon
Members Absent: Dick Wight, Jeff Rosbach, Thomas Hunt
Staff Present: J. Pittis, B. Titus, B. Jones, B. Coons, D.
Dickson, T. Smith, G. Kenworthy, S. McClain, G. Leaf, A. Hill,
L. Danks, R. Dickinson.
III. Approval of Minutes of Previous Meeting
Lacking a quorum no action was taken.
IV. Discussion Items
1. Review of Solid Waste Rate Options
The Public Works Department presented 12 various alternative
solid waste rate options for discussion purposes. After
reviewing the material and some discussion, the consensus of
those present was to present alternative II to the Council.
This alternative covers only the costs for operation costs
plus the landfill bonds and delays rates to cover recycling
until those costs are known later this year.
Additional conversation involved such issues as: 1) recycling
should be mandatory, 2) look at the landfill life cycle costs
in future rate reviews, 3) include yard waste collection in
the approach to recycling, and 4) what would the cost of
providing everyone a 45 gallon container in alleys.
2. Revised Cost of Service Study for city Light
Light Staff presented new figures based on three recent
changes: 1) new proposed CIP expenses, 2) the issuance of
bonds for capital projects, and 3) basing expenses on an
accrual rather than a cash basis. The overall result of these
changes produced a rate surplus of $300,000+ based on existing
rates.
Minutes of June 27, 1990 UAC Meeting
Page 2
The UAC agreed with Staff that bonding for capital projects
and using an accrual method of accounting was an appropriate
way to determine expenses for rate purposes and directed Staff
to proceed on that basis.
Since existing rates produced a revenue surplus and the
purpose of this years rate change is to equalize the rate of
return for each rate class, the next issue discussed was on
what basis to determine the rate of return. Staff presented
the UAC with three options: 1) return based on sales, 2)
return based on net plant, and 3) return based on an
arithmetic average of sales and net plant. After discussion of
the merits it was decided that an average of sales and net
plant was the most equitable way to determine rate of return.
3. Discussion of New Electricity Rates
It had previously been agreed that revenue requirements should
be based on cost of service so Light Staff presented charts
showing the required percentage changes. Original Staff
figures showed that slight increases would be required for
Residential and Industrial Transmission rate classes with
decreases for all other rate classes if revenues were to
remain the same as with existing rates.
After some discussion Mike Lemon suggested that we lower the
percentage change for all rate classes so that the Industrial
Transmission rate class would break even and all other rate
classes would see a rate decrease. Everyone agreed that this
was a good idea and would still provide a revenue surplus for
the year. Light Staff was directed to proceed on this basis.
The UAC also agreed that the rate schedules that would produce
the required revenues should follow the expenses shown in the
cost of service study as much as possible. Rate options are to
be provided to the UAC at a future meeting with changes to the
customer charge, demand charge and energy charge in accordance
to the cost of service study. This would be instead of a
simple across the board percentage change.
4. Discussion of Hook Up Charges for City Light
Light Staff presented various options to the UAC as to how the
Light Department could implement a hook up charge for new
consumers. The UAC was in agreement that some type of hook up
fee should be charged but did not express a preference. After
some discussion it was agreed that there should be uniformity
in how hook up charges are applied in all City utilities and
Minutes of June 27, 1990 UAC Meeting
Page 3
that City Light and Public Works should get together and see
what type of fee structure would work best for all the
utilities. Information is to be brought back to the UAC at a
future meeting.
V. Late Items/Member Discussion
There were no late items.
VI. Adjournment
The meeting was adjourned at 7:05 p.m.
------Chairman