HomeMy WebLinkAboutAgenda Packet 01/11/2005 UTILITY ADVISORY P-OMMITTEE
PUBLIC WORKS r!-ONFERENSE ROOM
PORT ANGIE:LE:Sy WA
JANUARY I 1 ~ 2005
3:00 P.M.
AGENDA
I. I~-ALL To ORDER
II. ROLL r'~- A L L
III. APPROVAL t-IF MINUTES FOR DEI~EMBER I 4~, 2DE4
IV. LATE ITEMS
V. DISCUSSION ITEMS
A. AMEND r'-ONSULTANT AGREEMENTS WITH PARAMETRIX
(~'V~EMO WILL BE PROVIDED BY ¢~EPARATE E-~VlAIL)
B. "Pr'In5 (WPAI-~} WESTERN PUBLIC AmENCIES r~RDUP AGREEMENT
C. PRD,..IECT DESIGN FOR UTILITY EXTENSION
VI. NEXT MEETING DATE ' FEBRUARY R~
VII. ADJOURNMENT
UTILITY ADVISORY COMMITTEE
GUEST SIGN UP SHEET
PRINT NAME ORGANIZATION
N: \ PWKS \ LIGHT \ CONS \ CATE \ SIGNUP.wpd
UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
December 14, 2004 ~.~
I. Call to Order:
Chairman Rogers called the meeting to order at 3:00 p.m.
Il. Roll Call:
Members Present: Chairman Rogers, Allen Bentley, Mayor Head.rick, Dean Reed,
Councilmember Erickson
Members Absent: None
StaffPrcsent: William Bloor, Glenn Cutler, Michael Puntenney, Scott McLain, Larry
Dunbar, Steve Sperr, Jeff Young, Cate Rinehart
Others Present: Orville Campbell - Former Councilman
Ill. Approval of Minutes:
Chairman Rogers asked if there were any additions or corrections to the meeting minutes of
November 9, 2004. Mayor Headrick moved to approve the minutes. Dean Reed seconded the
motion, which carried unanimously.
IV. Late Items: None
V. Discussion Items:
,4. Long Term Septage Receiving Agreements
Jeff Young, Wastewater Treatment Plant Superintendent, noted that thc local septage pumping/hauling
service providers had expressed the desire to have a long term agreement to make their rates competitive
and stable. These haulers currently operate under an annual permit with an annual fee of $60 and rates
that can vary each year. Therewas a brief discussion.
No formal motion taken. There was a general consensus supporting staff to prepare a contract.
UTILITY ADVISORY COMMITTEE
December 14, 2004
B. Revisions To The City's Water Shortage Response Plan
Steve Sperr, Engineering Manager, introduced Orville Campbell, a former Councilman. Mr. Campbell
reviewed the history of the plan development, described changes made through time, and enumerated the
elements addressed by the plan. Mr. Sperr responded to questions and provided clarification. There was a
brief discussion.
Mayor Iteadrick moved to recommend City Council amend PAMC 13.46 to address flows in the
Elwha River. Councilmember Eriekson seconded the motion, which carried unanimously.
C. Lease For Washington State Department OfFish And Wildlife Rearing Channel
Steve Sperr, Engineering Manager, explained that the lease to operate a fish rearing channel on City
property along the Elwha River had expired and summarized the changes on the new negotiated three
year lease. A discussion ensued.
Dean Reed moved to recommend City Council approve the new Lease and authorize the Mayor to
sign on behalf of the City. Allen Bentley seconded the motion, which carried unanimously.
D. City Authorized Retailer Agreement Cancellation
Larry Dunbar, Power Resources Manager, addressed the issue of numerous complaints by customers of
the limited local availability of compact fluorescent lamps and torchiere floor lamps and many instances of
premature compact fluorescent lamp failures. Staff recommends the rebates be made available to utility
customers that purchase qualifying Energy Star products from any retailer. There was a short discussion.
Dean Reed moved to recommend City Council cancel the City Authorized Retailer Agreement.
Allen Bentley seconded the motion, which carried unanimously. Staffwas directed to verify
whether this Agreement needed to go to Council or not.
E. Solid Waste Request For Proposal Evaluation Process Revision
Lany Dunbar, Power Resources Manager, acknowledged that during the evaluation process it became
evident that additional clarifications and corrections were needed and a new proposal date set. Mr.
Dunbar reviewed the clarifications and corrections and responded to questions.
No action taken. Information only.
F. Bonneville Power Administration Transmission Rate Settlement Proposal
Scott McLain, Deputy Director for Power Systems, reviewed the information contained in the packet
noting that a settlement for the rate case on power transmission rates would avoid a lengthy and
expensive formal rate case. A short discussion followed.
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UTILITY ADVISORY COMMITTEE
December 14, 2004
Mayor Headrick moved to recommend City Council support the proposed settlement agreement
with the Bonneville Power Administration. Councilmember Erickson seconded the motion, which
carried unanimously.
G. Issues/Concerns For 2005
Glenn Cutler, Director of Public Works and Utilities, gave a brief overview on the goals and objectives
handout noting that the intention of the ambitious list was to complete it by the end of 2005. Members
were requested to advise staff of any additions overlooked. There was a brief discussion.
No action taken. Information only.
H. 2005 Calendar UAC Dates
No action taken. Information only.
VI. Next meeting date: January 11, 2005
VII. Adjournment: The meeting was adjourned at 4:30 p.m.
Chairman Rogers Cate Rinehart, Administrative
Assistant
12/16/04
N:~PWKS~LIGHTXCONS\CATE~de¢ 14meet.wpd
....... THREE (3) TIER WASTEWATER RATE STRUCTURE (2005) .......
( RESIDENTIAL ONLY )
.IN ANTICIPATION OF THE "EARLY IN 2005" CONSIDERATION OF A "FAIR
7ALUE" TIERED RATE FOR THE WASTEWATER UTILITY- THE FOLLOWING
rECOMMENDATION RELATES VERY CLOSELY TO THE CITY"S "MISSION
~TATEMENT", "STATEMENT OF VALUES", AND "CITY GOALS"-FOR
IMPROVING THE FINANCIAL STABILITY OF PORT ANGELES", WHILE
MEETING AND EXCEEDING CUSTOMER EXPECTATIONS".
.THIS (3) TIER CONCEPT IS ALSO IN KEEPING WITH THE "INCREMENTAL
'EES" OF THE STORM WATER ASSESSMENTS IMPOSED UPON THE CITY'S
'ROPERTY OWNERS IN 2004.
.AS PRESENTED TO THE CITY COUNCIL ON NOV. 1, 2004, AND, AS KNOWN
~ND RECOGNIZED BY ALL OF THOSE PRIVY OF THE ACTUAL WATER
JSAGE BY CITY CUSTOMERS- THE 'AVERAGE' CUBIC FEET USAGE IN THE
~OMMUNITY AS A WHOLE-IS 1100 CUBIC FEET (plus or minus) WHICH IS
~ORE THAN TWO AND A HALF (2 1/2) TIMES THE TEN (10) YEAR OLD,
}BSOLETE FIGURE OF 430 CF, AS PRESENTLY STILL USED IN THE SINGLE
DNE RATE FITS ALL?) RATE STRUCTURE.
.KEYWORD HERE IS: "AD VALOREM"...(VALUE RECEIVED FOR $$$ SPENT-
N PROPORTION TO PRODUCT/SERVICE USED BY ALL RESIDENTIAL
',USTOMERS).
.THE FOLLOWING THREE (3) TIER RATE STRUCTURE IS RECOMMENDED
'O BE ADOPTED, AND TO COMMENCE WITH THE UTILITY STATEMENT OF
,PRIL 2005, REPLACING ORDINANCE # 3174, CHAPTER 13.65, WASTEWATER
ERVICE- RATES~ DATED NOVEMBER 16, 2004.
.TIER # 1 = 0- 750 CF- ~ $34.00 per month.
.TIER # 2 = 751 - 1500 CF- ~ $38.00 per month.
.TIER # 3 = 1501 CF & ABOVE- ~ $40.00 per month.
.LANGUAGE IN THE NEW ORDINACE TO DIRECT A PORTION OF THIS
'rEVISED RATE STRUCTURE INTO THE "CSO CONTROL FUND" ONLY -
'ROM: TIER #1 = $2.00 PER MONTH; TIER #2 = $2.00 PER MONTH; AND
'ROM TIER #3 = $4.00 PER MONTH.
.FOR GOOD COMMUNITY "P R" (PUBLIC RELATIONS)-THIS FORMULA
~OULD BE REFERRED TO AS A "VAT". (VALUE ADDED TAX).
. RESPECTFULLY SUBMITTED: Paul Lamoureux, 602 E. Whidby AV., Port Angeles
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: January 11, 2005 ~x,x .~
To: UTILITY .~DVISORY~EE
FROM: Gary W. Kenworthy, PE
Deputy Director of Public Works and Utilities/City Engineer
SUBJECT: 2005 Consultant Agreement with Parametrix, Inc. for Engineering Services
Summary: Parametrix, Inc. has been selected to continue to provide engineering services related
to the Solid Waste Utility and Landfill, including directed services. The Agreement will ensure
that ongoing engineering services needed to support solid waste activities and landfill closure
provided by Parametrix will continue. The Agreement has a negotiated an overall not-to-exceed
fee in the mount of $469,525 00. Following completion of the RFP and permitting processes, as
approved and funded, Parametrix will be directed in writing to complete those remaining tasks
required meet design, permitting conditions, and constmctiun support. These task scopes and
fees may need to be adjusted for revised schedules, permitting conditions, and the availability of
City resources for design and construction support.
,Recommendation: Forward a favorable recommendation to City Council authorizing the
Mayor to sign an Agreement for Professional Services with Parametrix in the not to exceed
amount of $469,525.00.
Background/Analysis: The current agreement for Professional Services with Parametdx Inc.
expires January 31, 2004. Parametrix was provided satisfactory engineering support services for
the Solid Waste and Wastewater Utilities as well as assistance with the RFP for the transfer
station and waste export services. Continuing with Parametrix is in the best interest of the City
due to their in-depth knowledge of existing City programs and projects.
The City has been working with Parametrix in developing a scope and budget for the
continuation of services similar to those in the existing Agreement, and new tasks that are funded
as part of the City's 2005 budget. Task scopes and estimates were prepared to cover potential
outcomes of the RFP process. Instead of amending the existing Agreement, it was clear that the
best approach to addressing the remaining work and the new tasks was to execute a new
Agreement.
Table 1 outlines the key tasks in the proposed new Agreement, with task amounts and what was
budgeted in 2005 for each task. Funding sources are from the solid waste budget. Staff will
return to the UAC and Council as needed should scope changes and/or funding needs exceed
those of the agreement as a result of the RFP outcome and permitting requirements..
January 11, 2005 UAC Meeting
2005 Parametrix Consultant Agreement
Page 2 of 3
Table 1 - Summary of Scope and Budget
2005 2005 City 2005 Budget
TASK Task Budget Reallocation
Amount
1. Engineering Assistance for Solid Waste Management $105,765 $86,000 $110,000
2. Permitting and Compliance Support $75,261 $60,000 $75,000
3. Waste Export System Acquisition* $0 $0 $0
4.1& 4.2 Design Services (Stormwater & Shoreline) $238,499 $241,000 $245,000
4.3 & 4.4 Design Services (Shoreline Mitigation & MRW)* $0 $31,000 $0
5. NPDES Permit Support* $0 $0 $0
6. Construction Support Services* $0 $62,000 $0
7. Directed Services $50,000 $50,000 $100,000
Total $469,525 $530,000 $530,000
*These tasks will not be authorized without sufficient grant funding, bonding, or budget
amendments in place to cover directed task costs.
· Task 1 provides engineering services to support routine solid waste handling activities
and landfill operations. Components include: (1) Update the landfill fill sequence plans,
(2) Site life verification, (3) Gas system maintenance and monitoring, (4) General
operations assistance, (5) Project management and coordination.
· Task 2 provides for regulatory reporting and permit coordination for landfill operations.
Components include:(1) Comprehensive Solid Waste Management Plan, (2) Groundwater
monitoring reports, (3) Amend Development and Closure and Operations and
Maintenance Plans, (4) Landfill NPDES permit support, (5) Shoreline Improvement
Permit Support, (6) Shoreline Monitoring.
· Task 3 provides for assistance of City Staff with Transfer Station and MRW Facilitiy
design support. Components include: (1) Transfer Station Design Review, (2) Moderate
Risk Waste Facility Design Review. Task 3 is being delayed until results of RFP process
are known.
· Task 4 will develop designs for planned improvements. Components include: (1) Phase
II Stormwater Improvements, (2) Shoreline Improvements, (3) Mitigation Design, (4)
Moderate Risk Waste Facility Design. Components 3 and 4 of Task 4 are being delayed
until permitting requirements and results of RFP process are known.
January 11, 2005 UAC Meet/ag
2005 Parametrix Consultant Agreement
Page 3 of 3
· Task 5 provides for NPDES permit support. Included for continuity only. There are no
identified tasks for 2005.
· Task 6 provides for construction support services. Components include: (1) Stormwater
System Improvements, (2) Gas system installation. (3) Transfer Station Contractor
Administrative Support, (4) Moderate Risk Waste Facility Construction. Task 6 is being
delayed until design of each components is completed, schedule for construction is
established, and the availability of City resources during construction are known.
· Task 7 provides for unforseen engineering or other services that may be required during
the contract duration. The scope and fee for these services are negotiated and written
authorization will be required to proceed with the work.
The duration of the new agreement will be through January 31, 2006.
N:\UAC~pDir~PMX 2005.wpd
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: January 11, 2005
To: UTILITY ADVISORY COMMITTEE
FROM: Scott McLain, Deputy Director for Power Systems
SU~-ECT: Western Public Agencies Group (WPAG) agreements for 2005
Summary: The City has been a member of the Western Public Agencies Group for several
ears. It is comprised of 22 Washington public utilities with similar interests. Each year the
roup contracts with two consultants and develops a scope of work for issues expected during
ae year. The 2005 contract amount is estimated to be $230,000, of which the City's initial share
is expected to be about $10,000.
Recommendation: Recommend the City Manager sign agreements with Marsh Mundorf
Pratt and Sullivan, and ECS Consulting for WPAG services during the year 2005 for an
amount not to exceed $15~000.
Background / Analysis: The City of Port Angeles, along with 21 other public utilities in
Washington, are members of the Western Public Agencies Group. This group was formed in
1980 to share costs in contracting with experts in the regional power field. The law firm of
Marsh MundorfPratt and Sullivan, and EES Consulting are the two primary consultants to
WPAG.
Each year, the members of WPAG establish a budget based on expected regional issues for the
year. Allocations of the total budget are divided among the participating utilities based on
number of customers, kWh sales, and utility investment. The City's share for 2005 of a total
WPAG budget of $230,000 is about $10,000. Although the expected expenses for the proposed
scope should be about $10,000, we are requesting authorization for up to $15,000. The
additional authorization is for unknown tasks that may develop during the year. In the past two
years, these tasks have mainly been related to filing or intervening in lawsuits concerning
regional issues that affect utilities such as the City that receive their power under the Priority
Firm power rate. The authorized budget in both 2003 and 2004 was $18,000 with actual
expenses of $15,052 and $16,500. This expense was included in the City's 2005 budget in the
amount of $18,000.
Attached is the scope of work for the 2005 calendar year with Marsh MundorfPratt and
Sullivan, and EES Consulting. The agreements are being reviewed by the City Attorney.
Attachments: WPAG scope of services and budget
N:\UACWinal\wpag2005.wlxl
EXHIBIT A
Western Public Agencies Group
2005 Scope of Services and Budget
The Western Public Agencies Group (WPAG) comprises 21 publicly owned utilities in the state
of Washington: Benton REA, Clallam County P.U.D. No. 1, Clark Public Utilities, the City of
Ellansburg, Grays Harbor P.U.D. No. 1, K.ittitas County P.U.D. No. 1, Lewis County P.U.D. No.
1, Mason County P.U.D. No. 1, Mason County P.U.D. No. 3, Pacific County P.U.D. No. 2,
Peninsula Light Company, the City of Port Angeles, Snohomish County P.U.D. No. 1, and
members of the Pierce County Cooperative Power Association, which includes Alder Mutual
Light Company, the Town of Eatonville, Elmhurst Mutual Power and Light Company, Lakeview
Light and Power Company, the City of Milton, Ohop Mutual Light Company, Parkland Light and
Water Company, and the Town of Stellacoom.
Together the WPAG member utilities serve more than one million customers and purchase more
than 12 billion kilowatt-hours from the Bonneville Power Administration ("Bonneville") each
year. WPAG member utilities also own or receive output from more than 500 megawatts of non-
Bonneville generation and purchase more than 400 megawatts of power from sources other than
Bonneville. WPAG members are winter-peaking utilities with lower annual load factors.
WPAG members' similar characterizes have caused them to join together to represent their
interests before Bonneville, and in other forums in the Pacific Northwest and the United States
since 1980. WPAG has intervened as a group in every major Bonneville rate proceeding since
enactment of the Pacific Northwest Electric Power Planning and Conservation Act of 1980.
WPAG's interests have also been represented in Congress, before the Northwest Power Planning
Council, and in other regional forum,.
The scope of services presented here includes areas that various other organizations, of which
WPAG members might also be members, cannot advocate for WPAG members due to conflicts
of interest within those organizations. WPAG thus fills a need that is unmet by membership in
the Public Power Council, the Northwest Public Power Association, the Pacific Northwest
Utilities Conference Committee and other similar groups.
A-1
EXItlBIT A
Scope of Services
The 2005 scope of services for WPAG is proposed as follows:
· General WPAG Activities and Meetings
During 2005, EES Consulting and MMPS&M will monitor and comment on regional and
federal activities of general interest including BPA-related legislation, progress on regional
transmission and wholesale market design issues, and any other new topic of mutual interest
and relevance. Monthly meetings will be held to brief WPAG members on these activities.
· BPA Power Business Line Rates Workshops
BPA's Power Business Line (PBL) continues to have periodic adjustments of the Load-
Based, Financial-Based and Safety-Nct CRACs which will be followed closely. The PBL
will also begin its rate process near the end of the year for the upcoming rate period. EES
Consulting and MMPS&M will attend workshops preceding its forthcoming wholesale power
filing. When more is known about the next rate filing, a separate budget will be developed.
· Future BPA Role in Power Supply
The Northwest Power and Conservation Council (NWPCC) has recently issued and taken
comments on a draft plan for the future role of BPA in meeting the regions power needs. The
primary emphasis of this plan is for BPA to no longer plan on meeting the needs of its
customers without a bilateral agreement to do so. Further, the existing low-cost hydro base is
to be allocated among BPA's traditional utility customers in a fair and equitable manner.
~CC has recommended that BPA offer 20-year contracts by October 2007. EES
Consulting and MMPS&M will continue participate in the regional dialogue on the future
role of BPA within the region. If some form of the Council's plan is ultimately carried
forward, EES Consulting and MMPS&M will participate in the discussions of how best to
allocate BPA's low-cost power on WPAG's behalf.
· Grid West - Bylaw/Decision Points
Development of C-rid West continues. In the event that the Grid West bylaws are adopted,
significant activities will occur, including negotiation and drafting of a transmission
agreement, development of a tariff, consolidation of BPA and PacifiCorp control areas and
further definition of markcts.. A significant aspect of the activities taking place in 2005 will
be the decision about whether to seat a developmental board of directors. These issues will
have significant implications for members of WPAO. We will actively participate in these
efforts on behalf of WPAG.
A-2
ExI-nBIT A
· BPA Contract Lock
In the event that Grid West becomes operational, the manner in which BPA complies with its
current transmission agreements and business practices will profoundly impact the nature of
the transmission services available to WPAG members, and the costs of such services. BPA
has indicated that it will contractually ensure the continuation of existing service under Grid
West. The contract providing such surety w/ll likely be negotiated in the next twelve month,
and WPAG will participation actively in this process.
· Power Supply Under Allocation
As noted above, BPA will likely only augment its existing resources for customers who
desire that service. For those that elect not to have BPA meet their power needs in excess of
their allocation, it will be of great importance that the low-cost allocation not be
contaminated by the augmentation costs (e.g., through a tiered rate mechanism). EES
Consulting and MMSgnM will continua to monitor this issue and advocate on behalf of
WPAG to ensure that the benefits of a low-cost allocation are not diluted by augmentation
costs associated with services BPA may provide to other customers.
Many alternatives will be available for customers that elect to self-augment their resources..
EES Consulting end MMPS&M will present alternatives for meeting incremental power
needs and keep WPAG members abreast of general power supply condition~ on the West
Coast.
· Energy Policy Act of 2005
With the reelection of the President and a strengthened RePublican majority in Congress after
this year's election, there appears a greater possibility of the passage of the most significant
energy legislation since the Energy Policy Act of 1992. These new laws could have
sigulfieant implieatinns on the region, BPA and the future of power supply to WPAG
utilities. EES Consulting and MMPS&M will monitor these activities and report on
developments of special interest to WPAG utilities.
· Olympia Legislative Session
EES Consulting end MMPS&M will monitor the activities of the 2005 legislature on behalf
of WPAG's specific interests.
Budget
The budget for the scope of services described above is calculated at the following billing rates
for EES Consulting and MMPS&M:
EXHIBIT A
EE$ Consulting
President .................................................................................. $130 per hour
Vice PresidenffManaging Director ............................................ 120 per hour
?roject Manager ........................................................................ 110 per hour
Analyst or Engineer ................................................................... 100 per hour
Clerical ................................................................................ 60 - 80 per hour
MMP$&M
Principal .................................................................................. $135 per hour
Associate ................................................................................... 110 per hour
These billing rates will remain in effect through December 31, 2005.
On the basis of the above billing rates, the 2005 labor budgets of EES Consulting and MM]'S&M
combined are estimated to remain at $200,000. This labor budget will be split equally between
EE$ Consulting and MMPS&M,
In addition to labor costs, out-of-pocket expenses will be billed to WPAG members at their cost
to EES Consulting and MMPS&M. It is estimated that $30,000 in total out-of-pocket expenses
will be incurred for all work elements in total. Out-of-pocket costs will be billed by whichever
organ/zation actually incurs the expense. The total estimated WPAO budget for 2005 is estimated
at $230,000.
As always, the allocation of the budget among WPAG members is open to negotiation by the
participants. We have attached an inter-utility allocation predicated on the most recent available
utility data, assuming a 15 percent maximum allocation to any one utility. After a final count of
WPAG participants, a f-real budget by utility will be prepared. An example of the budget's
allocation is attached at the end of th/s narrative.
Project Staffing
The staffing for this project will be similar to that for past WPAG activities. Gary Saleba and
Ten~ Mundorf will be the principal representatives for £ES Consulting and MlvlPS&M,
respectively. Additional MMPS&M and EES Consulting staff will assist as needed.
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