HomeMy WebLinkAboutAgenda Packet 02/14/2006
UTILITY ADVISORY COMMITTEE
PUBLIC WORKS CONF"ERENCE ROOM
PORT ANGELES, WA 98362
FEBRUARY 14, 2006
3:00 P.M.
AGENDA
I. CALL To 0 RDER
J J. ROLL CALL
III. ApPROVAL OF" MINUTES FOR ~ANUARY 10, 2006
IV. LATE ITEMS
V. DISCUSSION ITEMS
A. ARMY CORP OF" ENGINEERS - DISCUSS FLOOD CONTROL
MEASURES ON ELWHA RIVER (NO PACKET INF"ORMATION)
B. ADDITIONAL WASTEWATER POSITION
C. NIPPON MAINTENANCE AGREEMENT
D. CSO FUNDING OPPORTUNITIES
E. BROWN AND CALDWELL AGREEMENT
F. WPAG AGREEMENT
G. EXECUTIVE SESSION
VI. NEXT MEETING DATE - MARCH 14, 2006
VII. AD..JOURNMENT
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UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
January 10, 2006
L
Call to Order:
,,;
Chairman Rogers called the meeting to order at 3:00 p.m.
IL Roll Call:
Members Present:
Chairman Rogers, Allen Bentley, Dean Reed, Betsy Wharton, Grant Munro
Members Absent:
None
Staff Present:
Mark Madsen (3 :22), William Bloor, Glenn Cutler, Scott McLain, Gary
Kenworthy, Mike Puntinney, Steve Sperr, Larry Dunbar, Cate Rinehart.
Others Present:
Brian Gawley - Daily News
Paul Lamoureux - Citizen
III. Approval of Minutes:
Chairman Rogers asked if there were any corrections to the meeting minutes of December 13,
2005. Allen Bentley moved to approve the minutes. Chairman Rogers seconded the motion,
which carried unanimously. Dean Reed abstained due to absence at the meeting.
IV. Election Of Officers
Mayor Rogers nominated Dean Reed for the position of Chairman for a period of one year. Allen Bentley
seconded the motion, which carried unanimously. Councilman Munro nominated Mayor Rogers for the
position of Vice Chairman. Dean Reed seconded the motion, which carried unanimously. At this point in
the meeting Dean Reed assumed the Chairman position.
V. Late Items:
Eastern Urban Growth Area Update
VI. Discussion Items:
A. Electric Franchise Ordinace - Automatic Term Extension
Larry Dunbar, Power Resources Manager, noted the Clallam County Public Utility District had received a
50 year right to construct, maintain, and operate an electric transmission system within a specific
geographical area ofthe City on November 24, 1948. On June 18,2001, the City granted the District up
to a 25 year franchise for the sole purpose of operating and maintaining a transmission and distribution
system within the City. This term concludes February 20, 2006 and may be automatically extended for an
1
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UTILITY ADVISORY COMMITTEE
January 10, 2006
addition 5 years if the District is in substantial compliance, which it is. There was a brief discussion.
Mayor Rogers moved to recommend City Council affirm the Clallam County Public Utility
District No.1 was in compliance with the franchise during the initial term, which will
automatically extend the term of the franchise for an additional 5 years. Allen Bentley seconded
the motion, which carried unanimously.
B. Special Service Agreement With Dry Creek WaterAssociation
Steve Sperr, Engineering Manager, explained that in anticipation ofthe recent annexation of a portion of
the western Urban Growth Area, in May 2005 the City entered into an Interagency Water Facilities
Agreement with the Dry Creek Water Association. This agreement addresses service area boundaries,
sales offacilities, and new development. It also outlines the terms of a Special Service Agreement that
addresses water service to existing Dry Creek customers that are inside the City. A discussion followed.
Allen Bentley moved to recommend City Council approve a Transfer Agreement and a Special
Service Agreement, and authorize the Public Works and Utilities Director to sign the Agreements
on behalf ofthe City. Mayor Rogers seconded the motion, which carried unanimously.
C. 2006 Consultant Agreement With Parametrix, Inc. For Engineering Services
Gary Kenworthy, City Engineer, advised that Parametrix had provided satisfactory engineering support
services for the Solid Waste and Wastewater Utilities as well as construction support for the transfer
station construction. Agreement tasks were reviewed and discussed.
Councilman Munro moved to recommend the Mayor sign an Agreement for 2006 Professional
Services with Parametrix in the not to exceed amount of $548,702. Councilmember Wharton
seconded the motion, which carried unanimously.
VI. Late Item:
Eastern Urban Growth Area Update
Glenn Cutler, Public Works and Utilities Director, gave a brief overview indicating Brown and Caldwell
had updated the design. Trust fund loan money is being considered for final design and construction.
Information only. No action taken.
VIL Adjourn To Executive Session - 3:45 p.m.
Return to regular session- 5 :02 p.m.
VIIL Next meeting date: February 14,2006
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UTILITY ADVISORY COMMITTEE
January 10,2006
XI. Adjournment:
The meeting was adjourned at 5:02 p.m.
Chairman Reed
Cate Rinehart, Administrative Specialist II
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~RTNGELES
WAS H I N G TON, U. S. A.
UTILITY ADVISORY COMMITTEE MEMO
DATE:
February 14,2006
To:
UTILITY ADVISORY COMMITTEE
FROM:
Bill Beverford, Superintendent, WIWW CoIl. Div.
SUBJECT:
Personnel Adjustments Contained in the Water and Wastewater Rate Study
Summary: HDR Engineering, Inc. and City staff completed a rate study for the Water and
Wastewater Utilities that was presented and adopted by the Utility Advisory Committee and City
Council. The rate study included one additional full time Utility Worker I position for the
Wastewater Utility's Collection Crew. This position was not included in the 2006 budget since
the rate study had not yet been adopted.
Recommendation: Forward a favorable recommendation to City Council to authorize the
addition of one employee in the Public Works & Utilities Department 2006 budget for a
full-time Utility Worker I position for the Wastewater Utility.
Background/Analysis: The City contracted with HDR Engineering, Inc. to assist staffwith a
rate study for the Water and Wastewater Utilities. Included in the Wastewater Utility rate
structure was allowance for one additional full time Utility Worker I position. This position was
not included in the 2006 budget since the rate study had not yet been adopted.
The current Wastewater Collection Crew consists of two members whose duties include meeting
mandatory Wastewater Treatment Plant's permitting requirements, maintenance often-sewer lift
stations, CSO site inspections, and infrastructure maintenance and cleaning. The addition of a
Utility Worker I position would allow for two workers to be assigned to a regular, systematic
schedule of cleaning the sewer collection system, utilizing the Vactor Truck to it's fullest
potential, while at the same time providing the means for the division to remain current with all
other mandatory and periodic activities. The individual would also participate in utilizing the
new sewer video inspection system to pinpoint infrastructures deficiencies, including video
inspection of new additions or developments in the collection system before the City assumes
responsibility. The additional manpower would also perform stormwater system cleaning of
manholes and catch basins in critical areas identified by Engineering to prevent contaminants
from entering into receiving bodies of water.
PW 0101_06 [Revised 07/24/03]
~RTNGBLES
WAS H I N G TON, U. S. A.
UTILITY ADVISORY COMMITTEE MEMO
DATE:
February 14,2006
To:
UTILITY ADVISORY COMMITTEE
FROM:
Michael Puntenney, Deputy Director, Operations
SUBJECT:
Nippon Paper Industries Electric Transmission Maintenance Agreement
Summary: Due to the forthcoming completion of configuration alterations to transmission
interconnections between the dams, PUD substations, and the Nippon Paper Industries' mill, the
entire transmission system supporting the mill will be inside the City. The attached two-party
agreement will provide for maintenance services for these electric transmission lines.
Recommendation: Forward a favorable recommendation to City Council to authorize the
Public Works and Utilities Director to sign an Agreement with Nippon Paper Industries
USA Co. Ltd., for maintenance services for these electric transmission lines.
Background/Analysis: Over the past several years, the City has been part of a three-way
agreement between Nippon Paper Industries (NPI), Clallam PUD, and the City to perform
maintenance on NPI's 69 kV transmission lines, with the City performing all maintenance inside
the City, and the PUD performing all maintenance outside the City.
In the near future, the generation from the dams will be interconnected with the PUD substation
at Laird's Comer, and this line will no longer be connected directly to the mill. Nippon will then
interconnect the two transmission lines by the airport, and abandon the lines between the airport
and Laird's Comer. At this point their entire transmission system will be inside the City. Nippon
is proposing a new O&M two-party agreement with the City for the future. The construction
work for this is complete and the cutover will occur following final Federal Government review
and acceptance ofNPI's transmission use agreement. This is expected to happen in late winter
or early spring ofthis year at which time this maintenance agreement between NPI and the City
will go into effect. The attached document represents the proposed agreement both staffs have
developed.
Staff recommends that the Utility Advisory Committee forward a favorable recommendation to
City Council to authorize the Public Works and Utilities Director to sign the attached agreement
for maintenance services for electric transmission lines with Nippon Paper Industries USA Co.
Ltd.
Attachment: Operating and Maintenance Agreement
N:\UAC\Final\Nippon Transmission Maint Agreement Memo.doc
TRANSMISSION LINES NO.1 AND NO.2
OPERATING and MAINTENANCE AGREEMENT
This Agreement, made and entered into this _ day of _' 2006, by and
between Nippon Paper Industries USA Co. Ltd., a corporation organized under the
laws of the State of Washington (hereinafter called "NPln); and the City of Port
Angeles, a Washington State municipality (hereinafter called the "City") is for operating
and maintenance services for NPl's electric transmission lines.
WHEREAS, NPI owns certain electric transmission lines extending from Bonneville
Power Administration's Port Angeles Substation to the NPI paper manufacturing facility
located on Ediz Hook at Port Angeles, Washington as depicted on the Attached Exhibit
A (Transmission Lines No. 1 and No.2) and
WHEREAS, the City owns and operates electric distribution facilities on portions of both
Transmission Line No.1 and Transmission Line No.2 and
WHEREAS, the City has the resources in place to respond to electric system outages in
the City and
Whereas, NPI and the City are parties to that certain Maintenance Agreement,
Agreement Number 000404, dated June 5, 2000 and that certain Operating Agreement,
Agreement Number 000405, dated June 5, 2000, which will be terminated by the parties
and replaced hereby.
Transmission Lines No.1 and No.2 Operating and Maintenance Agreement - Page 1
291/503981.02
021306/0804/16682.00006
NOW THEREFORE, it is agreed by and between NPI and the City as follows:
1. DURATION OF AGREEMENT
This Agreement shall become effective upon the activation of certain
improvements to the subject transmission line system and written
acknowledgement of the parties. The effectiveness hereof shall terminate the
Prior Agreements. This Agreement shall continue in effect unless it is terminated
earlier pursuant to Section 10.1 of this Agreement.
2. RESPONSIBILITY
The City shall be the responsible party for providing system dispatching,
maintenance, and emergency response services for Transmission Lines No. 1
and No.2.
3. DISPATCHING
3.1 Dispatching includes, but is not limited to, the calling to work of emergency
response personnel, the ordering of breakers and disconnects to be opened
and/or closed, the installing/removing of clearance tags, and the issuing/receiving
of working clearances.
3.2 The system dispatcher shall have complete and total authority over the operator
in the field performing the switching.
3.3 The system dispatcher shall issue all clearances for work being performed on
Transmission Lines No. 1 and NO.2.
4. SYSTEM OPERATION
4.1 The system dispatcher shall operate the system in accordance with the switching
instructions in Exhibit B. .
4.2 The Exhibit B to this Agreement may be changed by mutual consent between
NPI and the City.
4.3 Each party to this Agreement hereby authorizes the placement of personal
clearance locks by the other party on all switches subject to this Agreement.
4.4 The Parties to this Agreement hereby authorize the system dispatcher to call
personnel from the Party listed as the First Responder for switching as indicated
in the chart below.
Authorized Parties or Party
Switch Owner First Second
Number Responder Responder
Transmission Lines No.1 and No.2 Operating and Maintenance Agreement - Page 2
291/503981.02
021306/0804/16682.00006
L948 NPI SPA City
.
90 NPI City NPI
92 NPI City NPI
93 NPI City NPI
94 NPI City NPI
TV6 City City None
21 NPI NPI None
K12 NPI NPI None
.
22 NPI NPI None
23 NPI NPI None
K11 NPI NPI None
24 NPI NPI None
4.5 The parties to this Agreement hereby authorize the system dispatcher to call
personnel from the party listed as the Second Responder above if personnel
from the First Responder are not available.
4.6 The Ownerindicated above hereby grants the Authorized Party permission to
operate said switch or switches.
4.7 The Owner hereby grants the Authorized Party access to all facilities owned by
the Owning Party as may be necessary for the Authorized Party to perform the
switching ordered by the system dispatcher.
4.8 The parties to this Agreement hereby authorize the system dispatcher to call
personnel from the City as First Responder and NPI as Second Responder for
line patrolling.
5. SCHEDULED MAINTENANCE
5.1 The City shall perform the maintenance activities listed below, unless informed
not to perform the maintenance activity by NPI in writing prior to December 1, for
maintenance during the following calendar year. The City may perform
maintenance activities by competitive bid on a unit-cost basis, plus the City's
administrative and general costs, or with the City's crew at its cost. Maintenance
shall include the cost of any replacement, relocation, or repair required to
maintain the system.
5.2 The City shall provide NPI the estimated costs associated with the scheduled
maintenance for the following calendar year by July 1 of the current year. The
Transmission Lines NO.1 and NO.2 Operating and Maintenanoe Agreement - Page 3
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02130610804/16682.00006
estimated cost supplied by the City shall be based on the best information
available to the City at the time the estimate is given. The parties recognize that
competitive bid pricing of scheduled maintenance for the following year may not
be available at the time the cost estimates are prepared by the City. To allow for
this uncertainty, the City hereby is authorized to exceed the estimated costs by
up to 20 percent without any additional authorization from the NPI. If the
scheduled maintenance costs for the year are expected by the City to exceed the
cost estimate by more than 20 percent, the City shall provide a revised cost
estimate to NPI. NPI shall have 30 days after receipt of the revised cost estimate
to either approve the revised cost estimate or reduce the amountof scheduled
maintenance so as not to exceed the approved budget for scheduled
maintenance.
5.3 Should NPI elect to reduce the scheduled maintenance to a level that, in the
opinion of the City, is inadequate to protect life or property, the City is authorized
to perform whatever maintenance that may be required to make the City's
distribution facilities safe. The work required to make the City's distribution
facilities safe may require the removal of a portion of the transmission facilities.
Upon 30 days written notice to NPI, the City may remove that portion of the
transmission facilities required to make the City's distribution system safe, and
NPI shall pay the City for the costs associated with the removal of said
transmission facilities.
5.4 Should NPI elect to reduce the scheduled maintenance for those transmission
facilities without distribution facilities to a level that is not adequate to protectlife
or property, the City may terminate this Agreement pursuant to Section 10.2 of
this Agreement.
5.5 For those repairs that include the City's distribution system, NPI shall be
responsible for all costs associated with the pole and transmission facilities, and
the City shall be responsible for the costs associated with the distribution
facilities.
5.6 Should the repairs be limited to the transmission facilities associated with either
Transmission Line NO.1 or Transmission Line No.2, NPI shall be responsible for
100 percent of the cost repairs.
5.7 The tasks included in schedule maintenance are listed below. For those
activities in the maintenance schedule with multiple-year schedules, NPI shall
inform the City of the number of years to the next scheduled maintenance.
Maintenance Activity Frequency
Trail Maintenance Twice per year
Ground inspection Every year
Right-of-way clearing Every year
Pole inspection Every five (5) years
Pole replacement/treatment As needed
For the purpose of this Agreement: Trail Maintenance means maintaining a clear
walking path under or adjacent to sections ot the transmission lines constructed
outside the right-ot-way ot established City streets; Ground inspection means a
Transmission Lines No.1 and No.2 Operating and Maintenance Agreement - Page 4
291/503981.02
021306/0804/16682.00006
r--
6.
6.1
6.2
6.3
6.4
6.5
6.6
6.7
7.
7.1
visual condition inspection of the conductors, poles, cross arms, insulators, and
companion hardware as viewed from the ground; and Right-of-way clearing
means removal of trees, tree branches, or other vegetation that hasthe potential
to grow within 10 feet of transmission line conductors in the next 12 months.
NON-SCHEDULED MAINTENANCE
Should the City determine that non-scheduled maintenance is required, and if the
maintenance is required in the current fiscal year to protect life and property, the
City shall supply NPI with a written cost estimate for the required maintenance.
NPI shall have 30 days after receipt of the cost estimate to approve or
disapprove the required maintenance. Maintenance shall include the cost of any
replacement, relocation, or repair required to maintain the system.
If it is determined during the process of completing repairs to either Transmission
Line No.1 or Transmission Line No. 2 that the actual repair cost will. exceed the
cost estimate by more than 20 percent, the City shall immediately inform the NPI
and request direction for completing repairs to the line.
Should NPI fail to provide the City with additional direction for completion of the
repairs within 24 hours, the City shall complete the repairs and NPI shall be
responsible for its share of the total cost of repairs.
Should NPI elect to reduce the non-scheduled maintenance to a level that, in the
opinion of the City, is not adequate to protect life or property, the City may
perform whatever maintenance that may be required to make the City's
distribution facilities safe. The work required to make the City's distribution
facilities safe may require the removal of a portion of the transmission facilities.
Upon 30 days written notice to NPI, the City may remove that portion of the
transmission facilities required to make the City's distribution system safe, and
NPI shall pay the City for the costs associated with the removal of said
transmission facilities.
Should NPI elect to reduce the non-scheduled maintenance for those
transmission facilities without distribution facilities to a level that is not adequate
to protect life or property, the City may terminate this Agreement pursuant to
Section 10.2 of this Agreement.
For those repairs that include the City's distribution facilities, NPI shall be
responsible for all costs associated with the pole and transmission facilities, and
the City shall be responsible for the costs associated with the distribution
facilities.
Should the repairs be limited to the transmission facilities associated with either
Transmission Line No.1 or Transmission Line No.2, NPI shall be responsible for
100 percent of the cost of repairs.
EMERGENCY MAINTENANCE
The City will respond to all emergencies requiring repair associatedlwith
Transmission Lines No.1 and No.2. The City may respond to an emergency
condition with either its own forces or contract crews the City may have on its
property. The City will respond to the emergency condition as rapidly as possible
in the order of priority as determined by the City's dispatcher. The City's
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021306/0804/16682.00006
Transmission Lines NO.1 and No.2 Operating and Maintenanoe Agreement - Page 5
dispatcher shall determine the priority of multiple emergency conditions on, but
not limited to, the following factors:
. Threat to life or property
. Number of City customers affected
. Time required to complete the repairs
. Resources available to respond to the emergency condition
7.2 Upon responding to an emergency condition on either Transmission Line NO.1
or Transmission Line No.2, the City shall proceed to complete the necessary
repairs. NPI shall reserve the right to delay the repairs on sections of the line
without the City's distribution facilities. If NPI delays the repairs of either
Transmission Line No. 1 or Transmission Line No.2, the City shall schedule said
repairs for the first available time without the disruption of work scheduled for the
City's customers.
7.3 The City hereby is authorized to proceed with emergency repairs up to $50,000
on Transmission Line No.1 and Transmission Line NO.2. For repairs between
$50,000 and $100,000, the City will provide NPI with an estimate or repair costs;
and if City distribution facilities are attached to structures in the area to be
repaired, NPI shall provide direction for repairs within 24 hours of the City
providing NPI with an estimate for the cost of repairs. Failure of NPI to provide
the City with direction for the repairs within 24 hours shall result in the City
restoring the distribution system to service and abandoning the transmission
facilities in the repair area.
7.4 For repairs exceeding $100,000, for those structures that support the City's
distribution facilities the City will provide NPI with an estimate of the repair costs,
and NPI shall provide the City direction for repairs within 48 hours. If NPI fails to
provide the City with direction for repairs within 48 hours, the City is authorized to
restore the distribution system to service and abandon the transmission facilities
on those structures with distribution facilities.
7.5 Should the City proceed with abandoning the transmission facilities due to the
lack of direction from NPI within the specified timeframe, NPI shall retain the right
to request the City to install the abandoned transmission facilities. NPI shall be
responsible for all costs associated with the installation of the abandoned
transmission facilities.
8. CHARGES
8.1 NPI shall pay the City for dispatching services and switching services, except for
switching associated with L948, associated with Transmission Line No.1 and
NO.2 at the City's cost.
8.2 NPI shall pay the City for all scheduled, non-scheduled, and emergency
maintenance services on a unit-cost basis determined by competitive bid, plus
the City's administrative and general costs, or with the City's crew at its cost.
8.3 Services payable by NPI shall be billed to NPI on a quarterly basis. The billing
period may be changed at the City's discretion based on the billing amount.
During periods of low billing amounts, the billing period may be increased; and
during high billing amounts, the billing period may be decreased. Under no
circumstances will the average billing period be less than one (1) month.
Transmission Lines No.1 and No.2 Operating and Maintenance Agreemenl- Page 6
291/503981.02
021306/0804/16682.00006
9. PAYMENT
8.1 The costs incurred by the City under Section 8 of this Agreement are due within
30 days of receipt of the City's invoice. Overdue payments will be subject to a
penalty of one percent(1%) per month of any unpaid amount.
10. TERMINATION
10.1 Either party may terminate this Agreement by providing the other party written
notice of such termination no later than 30 days prior to the effective date of
termination.
10.2 All liabilities incurred during the term of this Agreement survive termination of
this Agreement until satisfied
10.3 If any party to this Agreement violates any condition of this Agreement or
performs switching outside the terms of this Agreement or without instruction of
the system dispatcher, except to protect human life or property in an emergency,
this Agreement may, at the option of the other Party, be terminated immediately.
11. LIABILITY AND MAINTENANCE
11.1 NPI and the City shall exercise reasonable diligence consistent with prudent
utility practices in the operation and maintenance of the electric distribution lines
on Transmission Lines No. 1 and No.2 and the maintenance of Transmission
Lines No. 1 and No.2. It is agreed and understood that the City shall not be held
responsible for any loss or damage that might result to the NPI on account of
interruptions of service on the line or lines, except in the case of gross
negligence on the part of the City. NPI's right of use of either Transmission Line
No.1 or Transmission Line NO.2 for transmitting electrical energy shall be
subject to the right of the City to remove the transmission line from service for
repairs, replacement, and maintenance; provided that, the City shall not remove
the line from service without first notifying NPI and that, insofar as practicable,
the City shall schedule removals from service with NPl's agreement in such a
way as to suit the convenience NPI, as well as its own convenience. It is agreed
and understood that the City may confine work on the line to regular work hours
except in the case of an emergency.
11.2 NPI hereby grants the City access to all facilities owned by NPI as may be
necessary for the City to perform the maintenance obligations pursuant to this
Agreement.
12. INSURANCE
All subcontractors providing services hereunder shall provide proof of insurance
in the following limits:
$200,000 each person
$500,000 each occurrence
Property Damage $100,000 each occurrence
$200,000 aggregate
Bodily Injury
Umbrella Coverage $1,000,000
Transmission Lines NO.1 and No.2 Operating and Maintenance Agreement - Page 7
291/503981.02
021306/0804/16682.00006
All subcontractor policies of insurance providing the coverage required hereunder
shall name the City and NPI as additional insureds with a cross-liability clause
that provides that no cancellation or material changes in the policy shall become
effective unless thirty (30) days prior notice of such cancellation or change shall
be furnished to the City and NPI by registered mail.
13. THIRD-PARTY CLAIMS
To the extent permitted by law, each party agrees to save, defend, and hold
harmless the other party from and against third-party claims for damages for
personal injury, including death, and property damage arising out of negligence
of its employees, officers, and agents. To the extent permitted by applicable law,
NPI and the City each waive any immunity existing under workers' compensation
law as necessary to indemnify and hold harmless the other to the extent set forth
herein. NPI and the City specifically warrant that the terms and conditions of the
foregoing indemnity provisions are the subject of mutual negotiations by the
parties and are specifically and expressly agreed to in consideration of the
mutual benefits derived under the terms of this Agreement.
14. SUCCESSORS AND ASSIGNS
To the extent permitted by law, each party agrees to save, defend, and hold
harmless the other party from and against third-party claims for damages for
personal injury, including death, and property damage arising out of negligence
of its employees, officers, and agents. To the extent permitted by applicable law,
NPI, and the City each waive any immunity existing under workers'
compensation law as necessary to indemnify and hold harmless the other to the
extent set forth herein. NPI and the City specifically warrant that the terms and
conditions of the foregoing indemnity provisions are the subject of mutual
negotiations by the parties and are specifically and expressly agreed to in
consideration of the mutual benefits derived under the terms of this Agreement.
15. DEFAULT AND CANCELLATION
Failure of either party to make payments for two (2) consecutive payment periods
may be considered a default of this Agreement, and the other party may
thereupon cancel the Agreement upon 30 days written notice; except when the
Agreement has been terminated in accordance with Section 10.3 of this
Agreement. Such cancellation shall not relieve any party of its obligations
incurred herein.
16. ARBITRATION
All parties agree that any dispute that arises out of the interpretation,
performance, enforcement, or any other aspect of this Agreement shall be
resolved by submitting the same to binding arbitration, which shall proceed
according to the rules and regulations of the American Arbitration Association;
provided, however, that each party shall select a nominating person within ten
(10) days of notice of the dispute from any party to the others. The City shall
elect one nominating person and NPI shall elect one nominating person. The
two nominating persons shall then meet and promptly select the arbitrator from
the Seattle Office of Judicial Arbitration and Mediation Service list. If the
nominating persons do not select a person who agrees to serve as arbitrator
within thirty (30) days of the first notice, the arbitrator shall be selected by a
Superior Court Judge of Clallam County. The arbitrator's fees shall be paid by
the individuals or corporation who the arbitrator determines was the unsuccessful
litigant.
Transmission Lines No. 1 and NO.2 Operating and Maintenanoe Agreement - Page 8
291/503981.02
021306/0804/16682.00006
.
Attest:
NIPPON PAPER INDUSTRIES USA CO. L TO.
By
Title
Dated
Attest:
CITY OF PORT ANGELES
By
Title
Dated
291/503981.02
02130610804/16682.00006
Transmission Lines No.1 and No.2 Operating and Maintenance Agreement - Page 10
FORTNGBLBS
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE:
February 14, 2006
To:
UTILITY ADVISORY COMMITTEE
FROM:
Stephen Sperr, P.E., Engineering Manager
SUBJECT:
CSO Funding Options
Summary: There are several funding sources available for the capital projects required under
the Combined Sewer Overflow (CSO) Reduction Plan being negotiated with the Department of
Ecology. One of these, Washington State's Public Works Trust Fund (PWTF), accepts
applications for Pre-Construction Loans every month and Construction loan applications
annually on or before May 8.
Recommendation: Forward a favorable recommendation to City Council to authorize the
Mayor to (1) sign a PWTF Pre-Construction Loan Application certification, in an amount
not to exceed $600,000, and (2) sign a PWTF Construction Loan Application certification,
in an amount not to exceed $3,000,000 . In addition, if either or both loans are approved,
authorize the Ma or to execute the a reement s .
Background/Analysis: The City is currently negotiating an updated CSO Plan for the
completion of a number of projects that will reduce CSO events in the future. The next
construction project under the CSO Plan, scheduled to be completed by the end of2007, is the
installation of a sewer main from the north end of Francis Street to. the City's Wastewater
Treatment Plant. This project is estimated to cost a total of approximately $2,900,000 in 2005
dollars. The design portion ofthis project is currently being estimated at $600,000, though this
figure is being reviewed.
The DOE, under its Water Quality Program, administers two financial assistance programs for
wastewater, stormwater and combined sewer construction projects, the Centennial Fund (grants
& loans), and State Revolving Fund (loans only). The City applied for funding of the design
portion of the project in October 2005 for the Fiscal Year 2007 Funding Cycle. A preliminary
Priority List of projects issued by DOE last month shows that the City will likely receive,
contingent on the State Legislature fully funding the programs this year as anticipated, a State
PW 0101_06 [Revised 07/24/03]
Revolving Fund (SRF) loan for the design portion ofthe project, at a 2.6% interest rate over 20
years.
A separate funding program administered by the Washington State Public Works Board, called
the Public Works Trust Fund (PWTF), has separate funding cycles and application process. The
City plans to submit an application for a PWTF Pre-Construction loan by March 5, 2006, in case
it does not receive the expected SRF loan. In addition, a PWTF Construction loan application to
cover the construction of the Francis Street Sewer Project, in an amount not to exceed
$3,000,000, will be submitted before the annual construction loan application deadline of May 8,
2006.
City staff recommends that the Utility Advisory Committee forward a favorable recommendation
to City Council to authorize the Mayor to (1) sign a PWTF Pre-Construction Loan Application
certification, in an amount not to exceed $600,000, and (2) sign a PWTF Construction Loan
Application certification, in an amount not to exceed $3,000,000 . In addition, if either or both
loans are approved, authorize the Mayor to execute the agreement(s).
CSO Funding Options
DATE:
To:
FROM:
SUBJECT:
-'i-"-.,':'
~RTANGBLBS
WAS H I N G TON, U. S. A.
UTILITY ADVISORY COMMITTEE MEMO
February 14, 2006
UTILITY ADVISORY COMMITTEE
Stephen Sperr, P .E., Engineering Manager
2006 Consultant Agreement with Brown and Caldwell
Summary: Brown and Caldwell, Inc. hasbeen selected to continue to provide engineering
services related to the City's wastewater and stormwater systems. The current agreement with
Brown and Caldwell expired January 31, 2006. A new agreement will ensure that the ongoing
engineering services of Brown and Caldwell related to the Combined Sewer Overflow (CSO)
Plan will continue without delay, as well as the design of a sewer extension to the East Urban
Growth Area.
Recommendation: Forward a favorable recommendation to City Council to enter into an
Agreement for Professional Services with Brown and Caldwell, Inc, and authorize the
Ma or to si n the A reement for an amount not to exceed $990,000.
Background/Analysis: On February 17,2005, the City signed an Agreement for Professional
Services with Brown and Caldwell (B&C) to provide engineering support services to assist the
City in negotiations with DOE for approval of an update to its CSO Comprehensive Reduction
Plan, as well as complete the Re-rating of the Wastewater Treatment Plant (WWTP). The CSO
Reduction Plan is still under negotiation with the Department of Ecology (DOE), and the WWTP
re-rating work has been completed and is being reviewed by DOE.
Based on the extensive involvement that B&C has had in providing engineering services for the
City's wastewater and stormwater systems, especially as it relates to the WWTP'sNational
Pollution Discharge Elimination System Permit, B&C was selected as the best qualified to
perform these services. A new engineering services agreement has been negotiated. Under the
new agreement B&C will continue to assist the City in negotiations with DOE for approval of an
update to its CSO Comprehensive Reduction Plan, the completion and approval of an updated
General.Sewer Plan, and design work associated with a sewer extension to serve the East Urban
Growth Area (EUGA).
PW 0101_06 [Revised 07/24/03]
The design of the EUGA sewer is being funded by Clallam County. The City will be managing
the design work and reimbursement will be made through an Interlocal Agreement signed by the
City and County last year. Funding for the other two tasks, as wellas directed services, are
included in the approved 2006 Wastewater Utility budget. The duration of the Agreement will
be through January 31, 2007, and based on the completion of all tasks.
The following is a table ofthe tasks in the proposed Agreement, and the estimated budget for
each task. The budget for each task will be finalized before the Agreement is presented to City
Council. In addition, the budget for the East UGA design task will be approved by the Clallam
County Board of Commissioners before the contract is executed.
TASK BUDGET
1. CSO Comprehensive Reduction Plan Update $20,000
2. Update to General Sewer Plan $50,000
3. East UGA Sewer Extension (Funding by Co.) $900,000
4. Other Services as Directed $20,000
Total $990,000
2006 Brown & Caldwell Agreement
'1
FORTANGELES
WAS H I N G TON, U. S. A.
UTILITY ADVISORY COMMITTEE MEMO
DATE:
February 14, 2006
To:
UTILITY ADVISORY COMMITTEE
FROM:
Scott McLain, Deputy Director, Power Systems
SUBJECT:
Western Public Agencies Group (WP AG) Agreements for 2006
Summary: The City has been a member of the Western Public Agencies Group for several years.
It is comprised of21 Washington public utilities with similar interests. Each year the group
contracts with two consultants and develops a scope of work for issues expected during the year.
The 2006 contract amount is estimated to be $275,000, of which the City's share is expected to
be less than $15,000.
Recommendation: Recommend the City Manager authorize contracts with Marsh
Mundorf Pratt and Sullivan, and EES Consulting for WP AGservices during the year 2006
for an amount not to exceed $15,000.
Backi!round / Analysis: The City of Port Angeles, along with 20 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
Mundorf Pratt and Sullivan, and EES Consulting are the two primary consultants to WP AG.
Each year, the members ofWPAG 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 2006 of a total
WPAG budget of $275,000 is about $12,000. Although the expected expenses for the proposed
scope should be about $12,000, we are requesting authorization of up to $15,000. This expense
was included in the City's 2006 budget in the amount of$18,000.
Attached is the scope of work for the 2006 calendar year with Marsh Mundorf Pratt and Sullivan,
and EES Consulting. The agreements are being reviewed by the City Attorney.
Attachments: WP AG scope of services and budget
N :\UAC\Final\wpag2006uac. wpd
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ExHIBIT A
l
Western Public Agencies Group
2006 Scope of Services and Budget
The Western Public Agencies Group (WP AG) 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
Ellensburg, Grays Harbor P.U.D. No.1, Kittitas 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 Steilacoom.
Together the WP AG member utilities serve more than one million customers and purchase more
than 12 billion kilowatt-hours from the Bonneville Power Administration ("Bonneville") each
year. WP AG 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. WP AG members are winter-peaking utilities with lower annual load factors.
WP AG members' similar characteristics 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. WP AG 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.
WP AG's interests have also been represented in Congress, before the Northwest Power Planning
Council, and in other regional forums.
The scope of services presented here includes areas that various other organizations, of which
WP AG members might also be members, cannot advocate for WP AG members due to conflicts
of interest within those organizations. WP AG 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-I
EXHIBIT A
Scope of Services
The 2006 scope of services for WP AG is proposed as follows:
. General WP AG Activities and Meetings
During 2006, EES Consulting and MMPS&M will monitor and comment on regional and
federal activities of general interest including BP A-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 briefWP AG members on these activities;
. Future BP A Role in Power Supply
The BP A has recently initiated a regional dialogue process to discuss with customers issues
related to the future role of BP A in meeting the regions power needs. The primary emphasis
of this plan is for BP A to separately price (tier) power from the Federal base system and
power obtained from the market. Further, the existing low-cost hydro base is to be allocated
among BP A's traditional utility customers in a fair and equitable manner. The regional
dialogue process will likely conclude in March, and will be followed by a Record of Decision
process. EES Consulting and MMPS&M will continue to participate in the regional dialogue
on the future role of BP A within the region, and in the follow on Record of Decision Process.
The objective will be to obtain the best possible allocation approach for the WP AG utilities,
including the amount of the allocation, the manner of controlling costs, and contract
enforceability.
. BPA Long-Term Power Supply Contracts
If BP A follows the regional dialogue process with a Record of Decision. implementing an
allocation approach, there will be a period of intensive negotiations for the twenty year
contract term. This negotiation will present many issues with resource, rate, legal and policy
implications. A multi-disciplinary approach will be taken to ensure that individuals with the
appropriate skills are available when needed. Both EES Consulting and MMPS&M will
participate in this process, which currently has as an objective finished contracts ready for
offer by 2007.
. Grid West
Development of Grid West continues, but without the active participation of BP A. We
expect that there will be a period of inactivity by BP A on the development of regional
transmission organizations, and that BP A will turn inward to focus on BP A specific solutions
to Federal system problems. There will be a number of TBL processes addressing such
issues as congestion that could bear heavily on transmission rights under existing NT and
PTP contracts. We also expect the IODs to make a push to involve BPA in their version of
Grid West bylaws, which is a development we will watch closely. EES Consulting will have
A-2
EXHIBIT A
,"
primary responsibility for monitoring TBL processes to determine which require WP AG
participation to protect our interests. MMPS&M will be primarily responsible for monitoring
Grid West activities, and any BP A involvement that may require WP AG action.
. IOU Benefits Under Allocation
As noted above, BP A will likely pursue the implementation of an allocated system for
providing power to preference customers. At the same time BP A makes this switch in its
role, the current arrangements under which the IOUs receive benefits will be coming to an
end. In the first quarter of 2006, there will continue to be serious discussions with IOUs on
how and how much they should receive under the Residential Exchange Program during the
next contract terms. As primary litigants challenging the current BP AlIOU arranagement,
WP AG will playa prominent role in these discussions. Concurrent with these discussions,
there is likely to be settlement discussion regarding pending litigation, and if no settlement is
reached, there is a reasonable probability that one or both of our pending cases will result in a
remand to BP A. WP AG will playa prominent role in determining how BP A responds to any
such remand. These topic areas will be the primary responsibility of MMPS&M, but with
active analytical assistance from EES Consulting.
. Tier Two Power Supply
In the event that BP A does go forward with an allocation and tiering of the Federal power
system, it will be appropriate to investigate resource and supply alternatives to serve load in
excess of tier 1 supplies. This would include ensuring that BP A provides an acceptable range
of tier 2 products, and well as non-federal options. In addition, exploration of pooling
opportunities should be undertaken. EES Consulting will have primary responsibility for
assembling and presenting alternatives for meeting incremental power needs and MMPS&M
will present opportunities to act cooperatively in the area of power supply.
. Federal Energy Regulatory Commission
The Federal Energy Regulatory Commission (FERC) has begun investigations into
transmission service provided under the NT and PTP contract under the auspices of updating
of its landmark Order No. 888. This may result in changes to the way transmission
dependent utilities have access and pay for access on transmission facilities and will have
significant implications for WP AG members. To date, PPC has done a good job of working
this issue. EES Consulting and MMPS&M will continue to assist PPC in its efforts, and will
monitor this process to see ifWP AG direct participation is needed.
. Olympia Legislative Session
EES Consulting and MMPS&M will monitor the activities of the 2006 legislature on behalf
ofWP AG's specific interests.
A-3
EXHIBIT A
't
. BP A Wholesale Power Rate Case
BPA has begun its Wholesale Power Rate Case for the coming FY07-FY09 rate period.
There is the very real potential for substantial swings in rate levels, particularly among
various blocks of customers served by BP A. As in the past, EES Consulting and MMPS&M
will represent WP AG's interests in this case. Also, consistent with past practices, the
budgeting for this work will be handled separately, as discussed below.
. Other Matters
During the course of each year, matters arise that require WP AG attention to protect the
interests of our customers. These. matters are undertaken at the direction of the WP AG
utilities.
Budget
The budget for the scope of services described above is calculated at the following billing rates
for EES Consulting and MMPS&M:
EES Consulting
President................................................................ .................. $150 per hour
Vice President/Managing Director............................................ 140 per hour
Senior Project Manager............................................................. 130 per hour
Project Manager ...............................................................,........ 120 per hour
Senior Analyst................................... ....... ............ ................ ..... 110 per hour
Analyst or Engineer................................................................... 100 per hour
Clerical.....................................................................;.......... 60 - 80 per hour
MMPS&M
Principal................... ............................ .................. ....... .......... $150 per hour
Associate .... ......... ...... ........... .............. ...... ......... .............. .......... 110 per hour
These billing rates will remain in effect through December 31, 2006.
On the basis of the above billing rates,. the 2006 labor budgets of EES Consulting and MMPS&M
combined, and exclusive of BP A's Wholesale Power Rates proposal, are estimated to remain at
$200,000. This labor budget will be split equally between EES Consulting and MMPS&M.
In addition to labor costs, out-of-pocket expenses will be billed to WP AG 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 non-rate case elements in total. Out-of-pocket costs will be billed by
A-4
..
EXHIBIT A
(
whichever organization actually incurs the expense. The total estimated WP AG budget for 2006
is estimated at $230,000.
In addition, it is estimated that the rate case labor budget will be $45,000, inclusive of out-of-
pocket costs.
As always, the allocation of the budget among WP AG 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 anyone utility. We have assumed that
all WP AG members will participate in the rate case activities. After a final count of WP AG
participants, including participants in the rate case activities, a final budget by utility will be
prepared. An example of the budget's allocation is attached at the end of this narrative.
Project Staffing
The staffing for this project will be similar to that for past WP AG activities. Gary Saleba and
Terry Mundorf will be the principal representatives for EES Consulting and MMPS&M,
respectively. Additional MMPS&M and EES Consulting staffwill assist as needed.
A-5
Western Public Agencies Group
Proposed Budget for 2006 Scope of Services
EES Consulting and Marsh Mundorf Pratt & Sullivan
Source: 2005-2006 Northwest Electric Utility Directory (NWPPA)
January 9, 2006
Total Budget
Labor
Expenses
Total
$
$
$
245,000
30,000
275,000
Average of Customers,
Energy Sales and
Investment
Customers Energy Sales Investment' With 15% Budget Allocation
Without Cap Cap with Cap
percent of percent of percent of percent of percent of
number total kilowatt-hours total dollars total total total dollars
Individual Utilities
Benton Electric REA 13,852 1.9% 473,529,150 2.9% $ 55,076,221 3.1% 2.66% 5.16% $ 14,194
, Clallam County PUD 31,717 4.4% 566,573,000 3.5% $ 68,731,437 3.9% 3.94% 7.67% $ 21,100
Clark Public UUlties 169,000 23.6% 4,202,563,000 25.8% $ 275,772,523 15.7% 21.69% 15.00% $ 41,250
City of Ellensburg 7,559 1.1% 175,963,334 1.1% 10,029,653 0.6% 0.90% 1.76% $ 4,833
Grays Harbor PUD 36,296 5.1% 979,591,000 6.0% $ 140,024,541 7.9% 6.34% 12.34% $ 33,924
.. ; Kittitas County PUD 3,609 0.5% 63,522,782 0.4% $ 10,581,463 0.6% 0.50% 0.97% $ 2,669
,. lewis:COunty PUD No. 1 28,582 4.0% 792,698,102 4.9% $ 85,282,442 4.8% 4.57% 8.88% $ 24.429
Mason County PUD No.1 5,200 0.7% 60,098,330 0.4% $ 10,176,188 0.6% 0.56% 1.09% $ 2,993
Mason County PUD NO.3 29,818 4.2% 598,278,758 3.7% $ 99,434,348 5.6% 4.49% 8.75% $ 24,056
Pacific County PUD No.2 16,267 2.3% 273,226,891 1.7% $ 31,651,924 1.8% 1.92% 3.73% $ 10,271
Peninsula Light Company 28,882 4.0% 503,915,698 3.1% $ 59,691.447 3.4% 3.51% 6.83% $ 18,791
City of Port Angeles 10,204 1.4% 648,080,143 4.0% $ 18,896,806 1.1% 2.16% 4.19% $ 11,521
Snohomish County PUD No.1 295,451 41.3% 6,151,711,000 37.7% $ 845,525,367 48.0% 42.35% 15.00% $ 41,250
Pierce County CooperatIve Power AssocIation
Alder Mutual Light Company 263 0.0% 3,359,020 0.0% $ 304,837 0.0% 0.02% 0.05% $ 134
Town of Eatonville 1,043 0.1% 24,627,000 0.2% $ 1,150,000 0.1% 0.12% 0.24% $ 647
Elmhurst Mutual Power and Light Company 13,086 1.8% 246,455,015 1.5% $ 18,920,525 1.1% 1.47% 2.87% $ 7,892
lakeview Light and Power Company 9,577 1.3% 272,854,881 1.7% $ 8,369,626 0.5% 1.16% 2.26% $ 6,228
City of Milton 3,238 0.5% 55,332.476 0.3% $ 2,378,975 0.1% 0.31% 0.60% $ 1,660
Ohop Mutual Light Company 3,879 0.5% 69,895,406 0.4% $ 10,293,640 0.6% 0.52% 1.01% $ 2,777
Parkland Light and Water Company 4,200 0.6% 113,000,000 0.7% $ 8,585,910 0.5% 0.59% 1.15% $ 3,154
Town of Steilacoom 2,889 0.4% 37,138,000 0.2% $ 918,000 0.1% 0.23% 0.45% $ 1,227
Subtotal Pierce County Cooperative Power Association 38,175 5.3% 822,661,798 5.0% $ 50,921,513 2.9% 4.43% 8.63% 1$ 23,719
Total 714,612 100.0% 16,312,412,986 100.0% $ 1,761,795,873 100.0% 100.00% 100.00% $ 275,000
Note: Allocation percentages assume full participation by all member utilities.
1 Investment values as reported for 2003
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