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HomeMy WebLinkAboutMinutes 08/10/1998 UTILITY ADVISORY COMMITTEE Port Angeles, Washington August 10, 1998 L 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, and Bill Myers. Members Absent: Joe Michalczik. Staff Present: Manager Ibarra, C. Knutson, J. Pittis, K. Godbey, C. Hagar, B. Titus, K. Ridout, S. McLain, D. Miller, and T. McCabe. IlL Approval of Minutes: Bill Myers moved to approve the minutes of the July 6, 1998, meeting. Councilman Williams seconded the motion, which carried unanimously. IV. Discussion Items: A. Conversion of Residential Containers to All 90' s Deputy Director of Public Works Ridout announced that staff had found a lower price on the 90 gallon containers should the conversion proceed. Mr. Ridout reviewed the information contained in the packet and provided the history of this issue. Councilman Doyle pointed out an error in the memo, the last paragraph should read rates were raised in 1994, not 1984. Discussion followed. Manager Ibarra expressed concern over customers receiving less service for the same amount of money and asked if they would be told the increase was to pay for landfill closure costs. Mr. Ridout explained that most of the Solid Waste costs went towards landfill expenses. Councilman Campbell felt that sufficient revenues must be maintained to provide for closure and post closure of the landfill. The real debate is how to shift the revenues given the reduced level of service for some and a higher level of service for others. Manager Ibarra asked how the $4 figure was arrived at. Councilman Campbell explained that staff attempted to make the differential great enough to increase recycling. Dale Miller, Recycling Coordinator, did not feel that $4 was enough to make people recycle. Mr. Miller saw the positive side of hi-weekly garbage pick up, but did not feel that $1 a week was going to promote recycling. Scott McLain, Power Manager, explained that the $4 charge was set to mostly recover the landfill closure shortfall. -1- Utility Advisory Committee August 10, 1998 Further discussion followed, and staff responded to questions and provided additional clarification especially regarding the three rate options outlined in the memo. Manager Ibarra stated he did not feel comfortable with options two and three, as they would not generate enough revenue. He asked if a bigger incentive for recycling should be created by raising the solid waste rates higher. Manager Ibarra also suggested running a pilot program in one of the neighborhoods to work out some of the bugs. Following further discussion, it was the general consensus of the Committee that there were many unanswered questions such as how to track requests to change pick up schedules, how to best arrange for bi-weekly pick ups, and how to educate the public on why this change is necessary. Therefore, staff will do additional research to respond to all questions and look into a pilot program for bi-weekly pick up and return this issue to UAC. B. Changes to Energy Conservation Programs Chairman Doyle reviewed the information contained in the packet. Scott McLain, Power Manager, gave a brief explanation and review of the conservation program. He then responded to questions and clarified the changes to the program. Councilman Campbell moved to recommend that the City Council fund the conservation programs as outlined in the proposed programs and to revise the conservation plan which will be submitted to Bonneville Power Administration to reflect these changes. CouIIcilman Wiil~am~ seconded the motion, which carried unanimously. C. Transmission Losses for 1998/1999 Chairman Doyle briefly reviewed the information contained in the packet and asked Scott McLain, Power Manager, to def'me APS-96 and PF-96, which he did. Mr. McLain responded to questions and provided clarification. Councilman Williams moved to recommend to Council that, if staff cannot f'md a lower price, the City replace its losses under the PF-96 rate for the contract year from October 1998 through September 1999. Bill Myers seconded the motion, which carried unanimously. D. Confirm of Modify Recommendation to Surrender FERC License Bob Titus, Deputy Director of Utility Services, reviewed the information provided in the packet and reviewed the seven options available in regards to the Morse Creek Hydro facility. He explained that within 90 days, the City must begin some action. The action could be to begin surrendering of the license or relining the pipe to provide water for the salmon pond. Discussion followed, and Mr. Titus and Director Pittis responded to questions and provided clarification regarding the various options for this facility. Staff felt it was in the City's best interest to surrender the license, as fixing the pipeline leak and/or relining the pipeline is cost -2- Utility Advisory Committee August 10, 1998 prohibitive. Concern was expressed over surrendering the license and losing water rights. Attorney Knutson explained that the City could surrender the license and still use Morse Creek as an emergency back up. Councilman Williams expressed concern over forfeiting local generating facilities in light of the recent power fluctuation experienced in Port Angeles due to a fire in Sbelton. Mr. McLain explained that retaining the hydro facility would not help solve this problem. Following further discussion and clarification, Councilman Campbell moved to recommend that the Council adopt option one, surrender the FERC license, remove the powerhouse and cap the pipeline. Bill Myers seconded the motion, which carried unanimously. V. Information Only Items None. VI. Late Items A. PUD Merger Bob Titus, Deputy Director of Utility Services, and Finance Director Godbey distributed memos regarding the PUD merger. Mr. Titus explained that the study prepared by the PUD's consultants contained several errors. The City's consultants felt it was in the City's best interest to retain its electric utility and PUD's consultants felt a merger was in everyone's best interest. Mr. Titus reviewed the information contained in his memo which outline several factual errors in the PUD's study. Director Godbey reviewed the financial aspects of the merger and pointed out the revenue losses that would result to the City should it proceed with a merger. The General Fund would be severely impacted as would the Water, Wastewater and Solid Waste Funds, because they would have to absorb the cost of employees currently covered by the electric utility. This issue was not addressed by the PUD's study. Director Godbey stated that financially, the City's electric utility is very strong, and she did not see a benefit in merging with the PUD. Discussion followed. Manager Iharra explained that staff felt the Committee needed to be briefed on this issue, bring it to a conclusion if possible, and place a similar memo in the Council packet for the next meeting. The next meeting with the PUD is August 20, 1998, and this issue can be put to rest at that time. The Committee agreed with this plan, and this item will go to the City Council meeting of August 18, 1998. -3- Utility Advisory Committee August 10, 1998 VI. Next Meeting: Due to Labor Day, the next UAC meeting was scheduled for August 31, 1998. After a brief discussion, it was the general consensus of the Committee to change the meeting date to September. Therefore, the next Utility Advisory Committee meeting will be held September 14, 1998, at 3:00 p.m. in the Public Works Conference Room. VIII. Adjournment: The meeting adjourned at 4:55 p.m. Deputy Cit~ler~ (/~J -4-