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HomeMy WebLinkAboutMinutes 07/11/1994UTILITY ADVISORY COMMITTEE Port Angeles, Washington July 11, 1994 I. Call to Order: Councilman Braun called the meeting to order at 4:38 p.m. Roll Call: Members Present: Gary Braun, Cathleen McKeown, Bill Myers, Joe Michalczik, and Larry Schueler. Members Absent: None. Staff Present: C. Knutson, K. Godbey, J. Pittis, B. Titus, C. Hagar, B. Jones, R. Ellsworth, and S. Kenyon. 111. Approval of Minutes: Councilmember McKeown moved to approve the minutes of the regular meeting of June 6, 1994, as written. Joe Michalczik seconded the motion, which carried unanimously. Councilman McKeown moved to approve the minutes of the special meeting of June 20, 1994, was written. Joe Michalczik seconded the motion, which carried unanimously. IV. Discussion Items: A. Rate Proposals (f BPA Interim Rate/ldjustment Triggers City Light Director Titus stated that he wanted to give the Committee advance warning, because if Bonneville does "trigger" it will be in early August, and the rates would take effect in October. This will only give the City about seven weeks to take action to adjust rates, and would give little opportunity for discussion. He then went on to explain the information he had provided in the packet, which contained two different options for raising the rates. Power Manager McLain explained that the rate increase is triggered when reserves drop to $145 million, and the target point for reservesis $370+ million. If the increase does trigger, theBPA recovers enough during the interim rate adjustment to bring the reserve level back up. This is for one year only, and there is no markup. The trigger is only to recover additional payments to the BPA and the associated taxes. Discussion followed. -1- Utility Advisory Committee July 11, 1994 Joe Miehalczik moved to accept Option 1, which is to have a separate line item on the utility bill which reflects the increase imposed by the BPA as a surcharge, and that the increase not exceed 10%. Power Manager McLain pointed out that the percentage would change with different classes. A discussion followed and Director Titus explained that the City could inform the BPA of the City's position on the issue. Joe Michalczik amended his motion to add a letter be drafted to the BPA stating that a rate increase would be a hardship on the conununity that has had its fishing and timber industries closed down. Councihnember McKeown seconded the motion. Discussion followed and Councilman Schueler felt that Option 2 was better, as the consumer could be apprised of the increase being due to the BPA's shortfall, without having it be a separate line item on the utility bills. Joe Michalczik withdrew his motion, and further discussion followed regarding the surcharge, as to whether or not it should be a separate line item on utility bills. Joe Michalczik moved to accept Option 1 as recommended by the Light Department, and that any increase is not to exceed 10% and will be reflected as a separate line item on the utility bills. Councilman McKeown seconded the motion, which carried unanimously. It was the general consensus of the Committee that staff should draft a letter to the BPA to indicate the hardship which will be imposed on this community should this rate increase be triggered. Power Manager McLain stated that the way it looks now, the rate increase probably will not trigger, but it is very close. B. Water Right Transfer Request by Crescent Water Association. Public Works Director Pittis advised the Committee that the Crescent Water Association was aware that this issue was going to be discussed this evening; however, they were not invited to attend. If the Committee wished to meet with the Association at a later date, that could be arranged. He reminded the Committee that this area is outside the Urban Growth Area, and that it was appropriate to say no to the request at this time. Councilman Schueler expressed concern over saying no to a neighbor. Director Pittis explained that the area between Morse Creek and the Elwha River is the area traditionally thought of as a planning area for the City's water system, and once water rights are given away, they are gone forever. He stated that the City could sell the water, but should not give or sell the water rights. After further discussion, Bill Myers moved to deny the request to sell or transfer water rights to the Crescent Water Association. Counciimember McKeown seconded the motion. Councilman Schueler stated that he did not feel this motion was in the community's best interest, as it will hinder development. There was further discussion explaining the difference between selling water and giving away water rights. Joe Michalczik reminded the Committee that water rights are established and the City will never receive more. Councilmember McKeown called for the question and a vote was taken on the motion, which carried by a majority, with Councilman Schueler voting in opposition. -2- Utility Advisory Committee July 11, 1994 C. Presentation from Larry Leonard Re: City Relinquishing Lien Rights. Mr. Leonard failed to appear before the Committee, and this item was deferred to a future meeting. V. Late Items:. A. Aerocomposites Utilities Disconnected for Non-Payment. Customer Service Manger Kenyon reviewed the memo he had prepared for the Committee. He stated that the Port is in the process of taking its last two buildings back. Whoever occupies these buildings must pay off the delinquent utility bill. If the Port takes over, they will pay the arrears; however the City will turn the power on for the Port pending a payment schedule being agreed upon. Customer Service will keep the UAC informed. Councilman Braun commended Manager Kenyon on the job he's done. This was an information only item, and no action was taken. Joe Michalczik thanked Public Works Director Pittis and staff for the job they did regarding the landfill. VI. Next Meeting: The next regular meeting of the Utility Advisory Committee will be held on Monday, August 8, 1994, at 4:30 p.m. VII. Adjournment: The meeting adjourned at 5:48 p.m. Chair' ~tn~ Deputy City Clerk -3-