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HomeMy WebLinkAboutMinutes 12/19/1994UTILITY ADVISORY COMMITTEE Port Angeles, Washington December 19, 1994 Call to Order: Councilman Braun called the meeting to order at 5:08 p.m. Roll Call: Members Present: Members Absent: Gary Braun, Cathleen McKeown, and Joe Michalczik. Bill Myers and Larry Schueler. Staff Present: C. Knutson, J. Pittis, B. Titus, C. Hagar, S. Kenyon, R. Ellsworth and K. Maike. III. Approval of Minutes: Councilmember McKeown moved to approve the minutes of the regular meeting of October 10, 1994, as written. Joe Michaiczik seconded the motion, which carried unanimously. Councilman Braun requested that the minutes show that Mr. Bill Myers is absent from the meeting due to serious health problems which resulted in surgery. IV. Discussion Items: A. Delinquent Tenant Notification Program Councilman Braun reminded the Committee that they had asked Customer Service Manager Kenyon to collect a minimum of 20 property managers willing to sign up for the notification program. Manager Kenyon informed the Committee that he had only been able to get ten commitments. However, he believes that if the program is implemented and other property owners hear of its benefits, they will sign up for it. He further stated that two of the ten property managers who have shown an interest in the program, are the biggest property managers in the City, and he felt enough money could be saved and collection costs reduced to pay for the difference. Customer Service Manager Kenyon requested the UAC to recommend to the Council that this program be implemented. Joe Michalczik expressed concern that the other rate payers will be paying the difference for the property owners. He felt the program should stand on its own, and if people drop off the program this could result in an additional cost to residential and industrial rate payers. Manager -i- Utility Advisory Committee December 19, 1994 Kenyon pointed out that landlords who signed up would be making a one year commitment, and if they dropped the program they would not be given a rebate on the yearly fee. City Attorney Knutson asked if the program could be put on a graduated basis; however, Manager Kenyon stated that this had been looked into and was not financially feasible. After further discussion, Councilmember McKeown moved to not implement this program until more property owners show an interest in this program. Joe Michalczik seconded the motion. Councilman Braun suggested amending the motion to state the issue be revisited in the future if more property owners wish to participate and the program becomes more cost effective to the City to operate the program. This was agreed to by the maker and seconder of the motion. A vote was taken on the motion, which carried unanimously. B. Proposal for Reduced Fee Automatic Turn-on Eric Tobin was not present to address the issue. Customer Service Manager Kenyon stated that this was a "hot" topic at the present time. Many property owners are very angry because they feel $22.00 to turn on service for one or two days is an outrage. Mr. Kenyon has checked with other utilities and the City of Port Angeles is the only utility in the area that does not have a no or reduced cost utility turn on plan for property owners. Mr. Kenyon recommends the institution of a reduced cost automatic turn-on program for property owners. This would involve property owners signing an agreement with the City, assuming responsibility for utility bills left unpaid by vacating tenants, and a $10.00 connect charge, which would be a $12 savings to land owners. After a discussion, Joe Michaiczik moved to forward a recommendation to the City Council to institute a reduced cost, automatic turn-on program for property owners. Councilmember McKeown seconded the motion, which carried unanimously. C. PUD Water Contract Public Works Director Pittis stated that this draft of the contract has been reviewed by the City Attorney and the PUD. Director Pittis then reviewed the changes to the draft of the PUD water contract and explained why these changes are supported by staff. Joe Michalczik asked if it was the City's objective to become the wholesale water supplier for the PUD. Public Works Director Pittis responded that the Council has decided that the area from the current City limits to Morse Creek is an urban service area, and the City will be the service provider. This is essentially the area this water is serving. Water rights are getting confusing. There is some opinion that they must be used, or they may be lost. Joe Michalczik expressed further concern over the City bearing the financial burden for the new pump station in 1995 and a new reservoir in the future. He compared this to the landfill issue, and wanted to make sure the PUD was paying its fair share, as they benefit from these capital improvement projects. Director Pittis stated that the PUD will be sharing in the cost of the -2- Utility Advisory Committee December 19, 1994 mutually beneficial projects. After further discussion, Joe Michalczik moved to recommend to the Council that draft #3 of the PUD Water contract be sent to the PUD for approval and signature, and that the necessary restrictive and metering devices be installed to track water usage and be more effective in engineering the new pump station. Councilmember McKeown seconded the motion, which carried unanimously. D. Recycling Service Levels (Verbal) Director of Public Works Pittis informed the Committee that the recycling agreement with Waste Management contains several options for service levels under contract. The City contracted for Alternate "A" which provides basic services for the landfill, yard waste and curbside recycling services. Staff is suggesting that the landfill service, which is $I, 195 per month, be deleted and these services be performed via signage and the City's landfill crew. Staff further suggested that yard debris pick-up, which costs $1.80 per residence, be reduced to bi-weekly at least for the winter months which would reduce the cost to $1.70 per residence, This would be a savings of $2,500 for four months, or $3,100 for five months. Staff is requesting that the UAC recommend negotiation of a change order to the current contract. Joe Michalczik moved to have staff negotiate a change order with Waste Management to delete landfill services from the current contract and change yard debris pick-up to bi- weekly during the five winter months. Councilmember McKeown seconded the motion, which carried unanimously. E. Conservation Resource Acquisition Agreement with BPA City Light Director Titus explained that this contract has been reviewed by the City Attorney. It will replace the existing contracts for individual conservation programs and give the City flexibility to spend the $1.2 million already in place. It will be possible to move the money back and forth between the programs, which was not possible under the old agreements. Also, the new contract allows for projects to be signed up through 1997 and completed by 1999. The old contract demanded the money be utilized within one year or it reverted back to the BPA. Councilmember McKeown moved to recommend to the Council that staff enter into the Conservation Resource Acquisition Agreement with BPA. Joe Michalczik seconded the motion. After a limited discussion, a vote was taken on the motion, which carried unanimously. F. Discussion of Changes to Conservation Programs Conservation Manager Maike stated that the Light Department would like to take advantage of the flexibility allowed by the new Conservation Resource Acquisition Agreement by implementing programs based more on rebates and reduced grants. This would allow -3- Utility Advisory Committee December 19, 1994 conservation savings to be acquired more cost effectively. City Light Director Titus explained that conservation programs are mandated, and if the money for them doesn't come from the BPA the City will have to build this cost into its utility rates. At this point, it would be wise to change the programs to something less expensive than the existing programs, yet still acquire the conservation which will be mandated. After further discussion, Couneilmember McKeown moved to support staff's reconunendation to modify the operation of the conservation program by moving from large grants and rebates towards third party funding and emphasis on customer service and turn-key packaging. Joe Michalczik seconded the motion, provided that it was noted that industry is not ~ thiS was agreed to by the maker of the motion. A vote was taken on the motion, ~v~l{ ca~ed unammously. G. Update on BPA Contract Negotiations (Information Only) City Light Director Titus stated that in February the Light Department will be asking the Council to support a recommendation that will establish for all time the rights a utility has to hydropower from Bonneville. It is difficult to keep the Committee advised of ail the changes occurring at this time, because there are so many changes being made. Hopefully, after the January meeting with Bonneville, staff will have enough information to give a recommendation to the Council. V. Late Items None. VI. Next Meeting: The next regular meeting of the Utility Advisory Committee will be held on Monday, January 9, 1995 at 4:30 p.m. VII. Adjournment: The meeting adjourned at 6:40 p.m. Chairman Deputy City'-C~erk '