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HomeMy WebLinkAboutAgenda Packet 03/13/2007 Utility Advisory Committee Public Works Conference Room Port Angeles, W A 98362 March 13, 2007 3:00 P.M. AGENDA I. Call To Order II. Roll Call III. Approval Of Minutes For February 13, 2007 IV. Late Items V. Discussion Items A. Ordinance Establishing Prices For Compost B. Benefit Dump Day C. Water Use Efficiency Program D. Water Rate Design Goals E. CH2M Hill Consultant Agreement F Stormwater Rates VI. Executive Session VII. Next Meeting Date: April 10, 2007 VIII. Adjournment N :\UAC\Final\031307. wpd UTILITY ADVISORY COMMITTEE GUEST SIGN UP SHEET PRINT NAME ORGANIZATION .-1 .J () L LA;V( vu R ~.l;~ & I .. . N: \PWKS \LIGHT\ CONS \ CATE\ SIGNUP. wpd Utility Advisory Committee PublicW orks Conference Room Port Angeles, W A 98362 February 13, 2007 3:00 P.M. /) '4/:'1* AGENDA L Call To Order Chairman Reed called the meeting to order at 3:00 p.m. IL Roll Call Members Present: Chairman Reed, Orville Campbell, Grant Munro (3:02), Betsy Wharton, Richard Headrick Members Absent: Karen Rogers Staff Present: Mark Madsen,Bill Bloor, Glenn Cutler, Mike Puntenney, Scott McLain, Gary Kenworthy, Larry Dunbar, Steve Sperr, Bill Beverford, Helen Freilich, Terry Dahlquist, Cate Rinehart Others Present: Brian Gawley - Daily News IlL Late Items: Department of Ecology Grant Eastern UGA Easements IV. Discussion Items: A. Department Of Ecology Coordinated Prevention Off-set Cycle Agreement Grant #G00700148 Helen Freilich, Recycling Coordinator, explained that the City had applied for grant funds last summer and application had been approved for total costs of$32,000. The grant is a 75/25 match and the local share for the grant is $8,000. Funds in the grant will be used for food waste compo sting and electronics recycling for City residents. A request was made for business costs. There was a brief discussion. Councilmember Wharton moved to recommend City Council accept the CPG for total UTILITY ADVISORY COMMITTEE February 13,2007 eligible costs of $32,000 and authorize the Director of Public Works and Utilities to sign the agreement. Orville Campbell seconded the motion, which carried unanimously. B. Reallocation Of Budgeted CFP Funding Terry Dahlquist, Electrical Engineering Manager, noted recent storm events identified several power system weaknesses which need immediate attention. Many feeders downtown currently have no overcurrent protection other than the substation breaker and the power supply to Green Creek mill and points west along Highway 101 follows a long, circuitous, and vulnerable route. Funding can be accomplished by delaying the highest 2007 $60,000 project to 2008. There was a brief discussion. Staff was directed to provide the cost of going underground at a future meeting. Councilman Munro moved to recommend supporting the addition of a new 2007 Light Utility CFP project, CLOl-2007 to correct power system weaknesses with funding to be provided by delaying CFP project, CLOl-2004 to 2008. Councilman Headrick seconded the motion, which carried unanimously. C. CFL Markdown Promotion Agreement Larry Dunbar, Power Resources Manager, advised that the City had been offered an agreement to participate in the "Change a Light, Change the World" compact fluorescent lamp markdown promotion by Portland Energy Conservation, Inc. The agreement is in connection with a region- wide promotion by the Bonneville Power Administration and all City expenses are eligible for reimbursement. A discussion followed. Councilmember Wharton moved to recommend City Council authorize the Public Works and Utilities Director to sign the CFL Markdown Promotion Agreement. Councilman Headrick seconded the motion, which carried unanimously. D. Francis Street CSO Pre-design Consultant Agreement Amendment, Project 06-01 Steve Sperr, Engineering Manager, acknowledged that after an evaluation of alternatives for routing wastewater from Francis Street Park to the Wastewater Treatment Plant was completed, several other routes were identified in consultation with City staff Additional design effort is therefore needed to complete the pre-design work for the preferred alternative before detailed design can begin. There was a lengthy discussion. Orville Campbell moved to recommend City Council authorize the Mayor to sign Amendment No.1 to the Agreement with Brown and Caldwell for pre-design of the first three of the CSO projects, increasing the maximum compensation amount under the agreement by $86,000, from $339,000 to $425,000. Councilman Munro seconded the motion, which carried unanimously. UTILITY ADVISORY COMMITTEE February 13, 2007 E. Easements For The East UGA Sewer System Steve Sperr, Engineering Manager, advised that in order to minimize construction costs, easement from two property owners were needed to allow construction of several portions of the sewer system on private property. There was a brief discussion. Councilmember Wharton moved to recommend City Council approve the easements, and authorize the City Manager to sign the easements. F. Added Engineering Staff For Implementation Of Phase II Storm water Permit Requirements Gary Kenworthy, City Engineer, distributed a handout, reviewed the information contained in the packet, and responded to questions. Mr. Kenworthy affirmed the need for additional staff to evaluate the impacts and changes required to meet the stormwater permit. There was a brief discussion. Councilman Munro moved to recommend City Council authorize the addition of a new engineering position in Public Works and Utilities, to be funded equally by the Stormwater and Wastewater Utilities. Councilman Headrick seconded the motion, which carried unanimously. J;: Executive Session Adjourn to executive session - 4:29 p.m. Executive session under RCW 42.30.11 O( c) to discuss with legal counsel potential litigation and (i) to consider the terms on which real estate will be offered for sale. Executive session concluded at 4:44 p.m. Meeting resumed in regular session. G. Department Of Health Agreed Order Steve Speer, Engineering Manager, reported that due to a delay in obtaining final design approval compliance dates could not be met. A new Agreed Order would add additional deliverables and interim deadlines. A discussion followed. Orville Campbell moved to recommend City Council approve the terms of a new Agreed Order with the DOH, and authorize the Public Works and Utilities Director to sign the Agreed Order. Councilman Headrick seconded the motion, which carried unanimously with a protest vote issued by Councilman Munro. VIL Next Meeting Date: March 13, 2007 UTILITY ADVISORY COMMITTEE February 13, 2007 VIIL Adjournment: The meeting was adjourned at 4:59 p.m. Vice Chairman Rogers Cate Rinehart, Admin Spec II DATE: To: FROM: SUBJECT: FORTANGELES WAS H I N G TON, U. S. A. UTILITY ADVISORY COMMITTEE MEMO March 13, 2007 UTILITY ADVISORY COMMITTEE Tom McCabe, Solid Waste Superintendent Ordinance to Establish Prices for Compost Sales Summary: Compost from the Co-Composting Facility will be available to the public beginning in April 2007. The proposed rate for finished compost is $20.00 per cubic yard for purchases of up to 3 cubic yards, and $17.00 per cubic yard for purchases of more than 3 cubic yards. Recommendation: Forward a favorable recommendation to City Council to adopt the ro osed amendment to the transfer station rate ordinance. Background/Analysis: Since January 2007, Waste Connections has operated the Co-Compost Facility under contract with the City of Port Angeles. Having satisfied the stockpiling requirements of compost needed for landfill closure, the City is now in a position to commence selling the surplus finished compost that is produced. The primary market for the compost will be residents, landscapers, and governmental entities. Finished compost will be available for sale as each bay in the co-compost facility has produced a completed product. When available, it will be sold during the same hours of operation as the transfer station. Waste Connections' personnel will load customer vehicles by the cubic yard. City Staff has researched market pricing for compost in Clallam and Jefferson County. The City of Port Townsend sells the same type of compost and it is very popular with home gardeners for all kinds ofplantings. Comparative compost sales prices for a variety of private and public facilities in the area are shown in the following table: City/County $/cubic yard Constituent Materials loaded Pt. An!!:eles -SeQuim Anjo Soils $26 Yard waste Blake Sand & Gravel $43 Yard waste (from Cedar Grove) Lazy J Tree Farm $18-$24 Yard waste Landscape Materials $26 Yard waste Other $/cubic yard Constituent Materials loaded Cedar Grove -Seattle $17 Yard & wood waste LRI-Puyallup $18-$20 Yard and wood waste, food waste, Compost Factory biosolids, paper products, manure City of Port Townsend $12 Yard waste and bio-solids Attached: City Ordinance 3243, Amended N:\UAC\Final\UAC Memo 3-13-07compost2.doc '<;, :;> ;r~ "f ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, amending Chapter 13 .57 of the Port Angeles Municipal Code to establish a sales price for Class A Compost. TIIE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN as follows: Section 1. Ordinance 3243, as amended, and Chapter 13.57, Solid Waste Processing Facility, of the Port Angeles Municipal Code are hereby amended by amending 13.57.020 PAMC to read as follows: 13.57.020 Rates. At least 30 days prior to the date, the Director shall publish notice to the public of the date the solid waste processing facility will be open for business. Beginning on the date specified in a written notice from the Director to the public that the solid waste processing facility will be open for business, the following rates shall be in effect and supercede the rates specified in 13.56.020 PAMC: A. All collection entities shall be charged and pay the following rates at the transfer station: 1. $80.00 per ton for municipal solid waste and wastewater treatment plant grit. 2. $24.80 per ton for clean yard waste, as determined by the transfer station attendant, that may be converted to compost. 3. $19.85 per ton for wastewater treatment plant biosolids. 4. The City shall pay the collection entity charges for municipal solid waste received at the transfer station :from the contractor for the Blue Mountain drop box operation under the service agreement. The City shall pay the collection entity charges for yard waste received at the transfer station :from the contractor for curbside collection of yard waste under the service agreement. B. All self-haulers shall be charged and shall pay the following rates at the transfer station (except as set forth herein): 1. $97.00 per ton for municipal solid waste with a $10.00 minimum fee. 2. $40.00 per ton for clean yard waste, as determined by the transfer station attendant, that may be converted to compost, with a $5.00 minimum fee. -1- \f)j !}'!: i~!~' i:;I 3. In addition to the fees established by subsections 1 and 2 of this section, a self-hauler that delivers an unsecured load to the transfer station shall be charged a $1 0.00 fee. 4. There will be no fee charged for recyclable materials deposited into the recycling drop-off facility. There will be no fee charged for acceptable household hazardous waste received at the transfer station. 5. There will be no fee charged for acceptable moderate-risk waste received at the moderate-risk waste facility from residents covered under the interlocal agreement. Commercially exempt small quantity generators shall not deposit moderate-risk waste at the moderate-risk waste facility. 6. Self-hauler rates shall be reduced by 4.6% for the federal government, its agencies and instrumentalities. 7. Rates for acceptable special waste shall be charged as follows: Item Rate Asbestos $235.70 per ton Tires (automobile and truck) $97.00 per ton Metals and white goods $47.65 per ton Environmental fee $20.00 per unit Contaminated or dredge soils $97.00 per ton. The environmental fee per unit shall be in addition to the rate per ton for metals and white goods. 8. In lieu of requiring multiple scale house transactions for loads with mixed municipal solid waste, the Director may establish weight reductions for recyclable materials, metals, acceptable household hazardous waste, and acceptable moderate-risk waste. Under no circumstances shall a weight reduction result in a reduction of the minimum fee. The weight reductions approved by the Director shall be issued at the scale house. C. The self-hauler rate 13.57.020.B.1. may be waived for disposal of refuse which is collected as a part of a beautification or cleanup program. The transfer station self-hauler rate 13.57.020.B.1. may be reduced by 50% for certain projects by non-profit organizations. Any waiver or reduction to the self-hauler rate shall comply with the following requirements: 1. The person requesting a waiver orreduction submits a written application to the Director at least 30 days before disposal of refuse at the transfer station. The Director shall accept or deny the application before refuse is disposed at the transfer station. 2. A waiver may be available for disposal of refuse which is collected as part of a beatification or cleanup program, such as the benefit dump day, Clallam County chain gang, and Washington State Department of Transportation, which must dispose oflitter. 3. A reduction may be available to charitable, nonprofit organizations, such as the Salvation Army, St. Vincent DePaul, and Serenity House, the primary purpose of which is provide necessary SUppOlt for the poor or infirm and which must dispose of unusable donated items. -2- " ".-' ~~. ;' . I~ :.\- .. '':'.' ;,~~ ". ~.\-"'J1. ~~--'.iJ :.~ ~J .~ 4. Pursuant to Chapter 35.83 RCW, a reduction may be applied to the Housing Authority of Clallam County for self-haul of materials left by tenants who vacate Housing Authority premises and for disposal of demolition debris. 5. All waivers or reductions approved by the Director shall be valid for 30 days and shall be limited to projects that further the public health, safety, or welfare, enhances the environment, or is otherwise in the public interest for parties of the interlocal agreement. 6. In order for the wai ver or reduction to be valid, applications approved by the Director shall be presented to the scale house attendant at the time of disposal. D. All self-haulers shall be charged and shall pay the following rates per ton at the Blue Mountain drop-box: 1. $184.00 per ton for municipal solid waste with a $5.00 minimum charge. 2. Recyclable materials deposited into the recycling drop-off facility will not be charged a fee. Acceptable household hazardous waste will not be charged a fee. 3. The self-hauler rate shall be reduced by 4.6% for the federal government, its agencies and instrumentalities. E. The Director shall have authority to enter into contracts with rates other than specified in this Chapter, provided that such rates cover the cost of providing the service, the contract provides a benefit to the City not otherwise obtained, the City Manager, Mayor and Council members of the Utility Advisory Committee are notified, and that such contracts have a term of no more than ninety (90) days before formal adoption by the City CounciL F. The sales price for Class A Compost shall be $20.00 per cubic yard for UP to 3 vards and $17.00 per cubic vard for more than 3 vards. plus Washington State sales tax. Section 2 - Corrections. The City Clerk and the codifiers of this ordinance are authorized to malce necessary cOlTections to this ordinance including, but not limited to, the cOlTection of the scrivener's/clerical elTors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 3 - Severability. If any provisions of this Ordinance, or its application to any person or circumstances, are held invalid, the remainder of the Ordinance, or application of the provisions of the Ordinance to other persons or circumstances, is not affected. Section 4 - Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take -3- effect five days after its publication by summary. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of 2007. ':..1 . ".,.' ...'..l Karen A. Rogers, Mayor ATTEST: Becky 1. Upton, City Clerk APPROVED AS TO FORM: William E. Bloor, City Attorney PUBLISHED: . 2007 By Summary G:\LegaLBackllp\ORDINANCES&RESOLUT10NS\ORDINANCES.2007\2007-5.COIlIllost Rates.022807. wpd March I, 2007 -4~ DATE: To: FROM: SUBJECT: ~RTANGBLBS WAS H I N G TON, U. S. A. UTILITY ADVISORY COMMITTEE MEMO March 13, 2007 UTILITY ADVISORY COMMITTEE Tom McCabe, Superintendent, Solid Waste Division Benefit Dump Day Summary: The City of Port Angeles sponsors an annual Benefit Dump Day for all Clallam County residents. The scheduled date this year is Sunday, April 15 from 9:00 am to 3:00 pm. The Port Angeles Food Bank will receive $5.00 for every participant ofthe event. Recommendation: Forward a favorable recommendation to City Council for the annual Benefit Dump Day scheduled for Sunday April 15, 9:00 am to 3:00 pm, at the Port Angeles Regional Transfer Station with a minimum $5.00 fee for every participant of the event. Background/Analysis: The Solid Waste Division sponsors an annual Benefit Dump Day for all Clallam County residents. A minimum $5 donation is collected from each vehicle by the Port Angeles Food Bank. Dumping is restricted to one load per household with vehicle sizes up to a 3/4-ton pick-up truck or a trailer measuring 5 ft x 8 ft. and a maximum limit of four tires and four appliances per customer. Commercial haulers are not allowed. Large appliances, metals, and tires are collected for recycling. Promotion / Advertising: Peninsula Daily News Sequim Gazette KONP Radio Staff for the Event: Waste Connections (Transfer Station) City Staff (metal pile, scales, gate) Clallam County Staff (for oil and antifreeze) Food Bank Staff and Volunteers (gate) Police Patrol Volunteers (traffic control) The 2007 Benefit Dump Day will be Sunday, April 15. This will be the first year that this event will conducted using the new transfer station. Waste Connections, Inc., is donating their staffing for this event. The hours and load restrictions will be the same as previous years. This will be the second year of not accepting cans of food, as requested by Micki Saunders, Director of the Port Angeles Food Bank. The tipping fees and labor cost are built into the current tipping fees. Benefit Dump Day Page 2 March 13, 2007 SUMMARY STATISTICS FOR PAST EVENTS Event Totals Year Vehicle Solid Cash Food (lbs) Trips Waste Contribution Contribution Tons 2002 1,444 567 $2,800 5,500 2003 1,400 581 $3,259 5,840 2004 706 251 $1,960 2,440 2005 841 300 $1,998 Not available 2006 677 234 $3,664 Not collected Demographic of Users 2006 2006 Location Vehicles Tonna~e Tip Fees Not Collected City ofP.A. 267 81.43 $6,897.12 Sequim 73 27.05 $2,291.14 Forks 4 1.81 $153.31 \ , East County 192 66.14 $5,602.06 . West County 141 57.47 $4,867.71 \ Totals 677 233.9 $19,811.34 Date: To: From: Subject: DORTrti AN l'Gr 'EiL' E....'S' I=- '_.m..'.J:1t ';. fmmJ ....... .,. ", ./ WAS H I N G TON, U. S. A. Utility Advisory Committee Memo March 13, 2007 Utility Advisory Committee Stephen Sperr, P.E., Engineering Manager Larry Dunbar, Power Resources Manager Water Use Efficiency Program Summary: The Department of Health adopted a Water Use Efficiency Rule that mandates the City to develop a water use efficiency program by January 22,2008. Recommendation: Information only, no action requested. Background/Analysis: On January 22,2007, the Washington State Department of Health (DOH) adopted the Water Use Efficiency Rule (Rule), which requires the City as a municipal water supplier to develop a 6 year water use efficiency program by January 22,2008. The mandated water use efficiency program activities include: 1. An update to the City's water use forecast. 2. Offering at least 6 water conservation measures (e.g., shower heads, faucet aerators, toilet dams, small rebates for low-flow toilets/clothes washers/dish washers, etc.). 3. Estimating distribution system leakage. 4. Verifying that the water transmission and distribution system is fully and accurately metered. 5. Estimating "authorized consumption" that's un-metered (e.g., fire fighting and training, flushing of mains and sewers, street cleaning, etc.). 6. Adopting a program through a public process by January 22,2008. The Rule establishes a distribution system leakage standard of 10% by year 2010. Furthermore, beginning in 2008 the Rule requires the City to provide its customers an annual water use efficiency performance report. In addition, as part ofthe 2008 update to the City's Comprehensive Water System Plan (prior DOH mandate) the Rule requires the City to evaluate the feasibility of adopting and implementing a rate structure that encourages water demand efficiency, and evaluate opportunities for the use of reclaimed water (where they exist). Staffplans to develop a water use efficiency program and return to the Utility Advisory Committee this fall seeking a recommendation to City Council. The program will be incorporated into next year's water system plan update, which will be completed by CH2M Hill. Implementation of the program and compliance with the distribution system leakage standard will have rate impacts. N:\UAC\Final\Water Use Efficiency Program doc FORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: March 13, 2007 To: Utility Advisory Committee From: Larry Dunbar, Power Resources Manager Subject: Water Rate Design Goals Summary: The Utility Advisory Committee directed staffto seek their guidance on water rate design goals. Recommendation: Provide guidance on water rate design goals. Background/Analysis: On November 14, 2006, the Utility Advisory Committee directed staffto seek their guidance on water rate design goals. At today's meeting, staff will provide a presentation on current rate design goals. Guidance from the Utility Advisory Committee on this matter is being sought before July 2007. Changes to water rate design can be included in this year's water rate study update, which will be considered by the Utility Advisory Committee this fall. N:\UAC\Final\Water Rate Design.doc ~ 1 Rate Design Goals, 1. . Each class pays appropriate share 2. Total rev~hue r~flects cost' . .' <' ,";'," ,-.. :'3.' Hates stable'overtime ,.--~,: ,.", , p' " . '. I . 'Ii . . . Ra,teDesign Objectives Promotes seasonal water use efficiency Easy to administer , Legal 2 3 2 u: 900 0 Cl Cl l! 800 Cl ~ Cl 700 c ;; 0 :;: 600 ;; c 0 :;: 500 ~ c 400 .9 0- E " 300 '" c 0 0 200 ,.. :E E 0 100 :;: 0 1996 .Rate Design Considerations 875 $15.29 Not adjusted for in'come, weather or wastewater rates $0 1998 2000 2002 . 2004 2006 - Consumption - Monthly Cost - Monthly Cost Adjusted Far CPt 5 3 5.000 ~ 4.500 ., '" ~ 4.000 ~ '" ~ 3,500 o :. .:: 3.000 'E o :. t 2.500 ~ 2.000 C. E ~ 1.500 l: o ~ 1.000 :c 'E ~ 500 Commercial Trends $45.2 ~$60 $58.76 $120 $100 $80 8 ,., :c 'E o :. ., '" l! ., ~ $40 $20 $0 - Consumption - Monthly Charge -- Monthly Charge Adjusted For CPI - -Linear ( Consumption ) =---" $45.23 Not adjusted for income. weather or wastewater rates o 1996 1998 2000 2002 2004 2006 Costs that do not tend to vary with the quantity of water produced Fixed & Variable Costs Fixed costs (basic charge) Variable costs (commodity charge) Costs that tend to vary with the quantity of water produced 7 4 Commodity Rate Alternatives Uniform rates - status quo Tiered rates -" 2 orrnore'rat$s and steps -Minimum (e..g.,d~duct, lifeline) -1nverted(increasil'1~D block __Decreasing block -Seasonal (e.g., isurnmer,hcm-summer) $3.00 COrnrnodity Charge -~rlifqrrni Rate ---Status $2.50 Port Angeles Port Townsend lL o o ; $2.00 0. <II $1.70 e' co c3 $1.50 c .Q Q. E ; $1.00 c o o $0.50 o 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 >30 9 $0.00 Hundred Cubic Feet(CCF).PerMonth 5 Commodity Charge - Deduct Example 1 (Assumes no change to current basic charge - overall revenue neutral) $3.00 $2.50 LL. <.> <.> t $2.00 a.. Gl ~ .. t3 $1.50 c: .Q 0. E ~ $1.00 c: o <.> $1.97 Forks $0.50 $0.00 $0.00 o 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 >30 10 Hundred Cubic Feet (CCF) Per Month Commodity Charge - Increasing Block Example 1 (Assumes no change to current basic charge - overall revenue neutral) ~ ... - $2.50 u. () () t $2.00 a.. Gl ~ $1.60 .. t3 $1.50 c: .Q 0. E ~ $1.00 c: o () Sequim $1.75 ./ $0.50 $0.00 o 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 >30 11 Hundred Cubic Feet (CCF) Per Month 6 Commodity Charge ,-'-Increasing Block Example 2 (Assumes no change to current basic charge '- overall revenue neutral) $3.00 $2.50 u. () () . ; $2.00 11. Gl ~ III <3 $1.50 c .2 Q. E ;J $1.00 c o () Clallam County PUD $1.65 $1.75 -- $1.80 $1.80 $0.50 $0.00 o 2 4 6 8101214 Hundred Cubic Feet (CCF) Per Month 18 20 22 24 26 2830 >30 12 Commodity Charge - Decre9sing Block Example (Assumes no change to current basic charge - overall revenue neutral) $3.00 $2.50 u. () () ; $2.00 11. Gl ~ III t3 $1.50 c .!2 Q. E ;J $1.00 c o () $1.75 $1.70 $1.65 $1.60 --- - - $0.50 $0.00 o 2 4 6 8 Hundred Cubic Feet (CCF) Per Month 10 12 14 16 18 20 22 24 26 28 30 >30 13 7 Commodity Charge - Seasonal Example (Assumes no change to current basic charge - overall revenue neutral) $3.00 $2.50 u. o o l $2.00 Ql ~ $1.55 t3 $1.50 c ,2 Q. ~ $1.00 .. c o o $0.50 $0.00 I I I I ! ! I ~I I i i i i I I I I I Poulsbo $1.85 /" 1><:\ ~ v ...~~ _ ""li4",~0 ~~. ;..~'If ~W*, ~. 3" '),'1} <<~ ,$:\ ~ rb- rb- rb- rb- 'S PJ\> ~~ ~ ~ # '?-" -,.'li O~".'li ,,'li 14 c:>0~ ~o Q'lJ Rate Discount - 2006 Statistics · Monthly charge $31.36 (before) · Discount$5.85 (18.4%) · Monthly charge $25.51 (after) · Minimum discount $1.09 · Maximum discount of $59.41 · Total annual discounts - $20,000 16 8 Rate DiscountAlternatives 1. Across-the-board discount -status quo 2. Basiccharge only discount 3. Commodity only discount 4. Rate design alternatives? 5. Discount consistent with other utilities? Guidance Needed 1. Goals & objectives 2. Rate design alternatives 3. Discount alternatives 4. Guidance needed before August for Fall rate study update 17 18 9 FORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: March 13, 2007 To: Utility Advisory Committee From: Stephen Sperr, P.E., Engineering Manager Subject: CH2M Hill Consultant Agreement, Project 07-08 Summary: The newly signed Agreed Order with the Department of Health (DOH) requires the design, approval and construction of a temporary corrosion control facility. In addition, the City continues to need engineering support related to the impacts of the federal Elwha Dam Removal Project. Recommendation: Forward a favorable recommendation to City Council to approve a new Agreement with CH2M HilI, for an amount not to exceed $113,000. Background/Analysis: The City negotiated a new Agreed Order with the DOH last month, which included the following deliverables that specifically relate to a Corrosion Control Facility to address elevated levels of copper in the water distribution system. The following table is a summary of the deliverables and due dates in the Agreed Order: Deliverables Due Dates Submit action plan addressing interim mitigation & "what Dec. 31, 2007 if Elwha Dam Project doesn't happen" scenario Submit Water System Plan Amendment/funding strategy Apr. 30, 2007 Submit corrosion control report Apr. 30, 2007 Submit design and construction documents for corrosion Sept. 4, 2007 control Obtain approval of construction documents for corrosion Dec. 31, 2007 control Install corrosion control treatment facility June 29, 2008 CH2M Hill evaluated and developed a chemical feed system to address corrosion control for the City in 1995. It has also been involved in the development and/or design of numerous projects associated with the City's Water System, including water system planning, since then. In addition, the City desires to continue to retain the engineering services of CH2M Hill to assist in ensuring that mitigation measures developed by the federal government under the Elwha River PW 0101_06 [Revised 6/06] CH2M Hill Agreement March 13,2007 UAC Meeting Page 2 of2 Ecosystem and Fisheries Restoration Act do not adversely impact the City, especially its potable and manufacturing water systems. As in the past, most, but not all, costs incurred under this task will be reimbursed by the National Park Service. Typical services requiring the assistance of CH2M Hill are meeting attendance and design review. Therefore, City staff have included three tasks in a draft new Agreement with CH2M Hill: Task Description Contract Amount 1 Corrosion Control Facility $38,000 2 Elwha Dam Mitigation $50,000 3 Directed Services $25,000 Total $113,000 Currently, in the 2007 Water Utility budget there are no funds specifically budgeted for Corrosion Control. The 2007 Water Utility budget contains $100,000 for Elwha Dam Mitigation, and $50,000 for Directed Services. The funding for the CH2M Hill agreement will come from reallocations within the existing Water Utility budget and additional funding will not be required. It is recommended that the Utility Advisory Committee forward a favorable recommendation to City Council to approve a new Agreement with CH2M Hill, for a not to exceed amount of $113,000. ~ORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: March 13,2006 To: Utility Advisory Committee From: Gary W. Kenworthy P.E., Deputy Director of Public Works/City Engineer Subject: Stormwater Utility Rates Summary: This is a continuation of discussions started in May 2006 regarding the need for added funding for the Stormwater Utility. Further discussions were delayed in view of the pending DOE decision on the inclusion of Port Angeles in the Phase II Municipal Stormwater permit. Now that the City has been included in Phase II an additional engineering position has been approved by Council to support the City's implementation efforts. Recommendation: Review the funding needs, capital program, and rate options and provide direction to staff for future action. Background/Analysis: The Stormwater Utility and associated rates were established in November 2003. The initial direction from Council was to focus on capital and small works projects and provide training of field crews in proper maintenance procedures to meet regulatory requirements. The basic rates established to fund the utility were $3.00 per month for single family and duplex properties, and $3.00 per month per 4000 sq. :ft of impervious area ($30.00 max.) for non-residential properties. Two major projects have been completed since establishment of the utility, the Crown Park Drainage Improvements Project and the Lincoln Avenue Stormwater Separation Project. In addition, Stormwater utility funds have been used to assist funding of street and sidewalk projects with stormwater facilities. Street crews have attended classes on proper maintenance to meet requirements of the Environmental Species Act (ESA) and Department of Ecology (DOE) best management practices. Since the establishment of the Stormwater Utility new unfunded mandate requirements have been imposed on the City by DOE. In addition, rising material and construction costs have effectively reduced the construction program. To meet these challenges, additional staff and funding are needed. Last May and August, presentations were made to the UAC regarding the need to adjust the Stormwater Utility Rates. In view ofthe uncertainty as to whether the City would be designated by DOE as requiring a Phase II Municipal Stormwater permit, it was recommended in August to delay action and revisit the issue in March 2007. Subsequently, the City has been designated by DOE as a municipality requiring a Phase II Municipal Stormwater permit. The City has joined other designated Cities in appealing some of the permit conditions. The City is also submitting a petition to DOE to include the surrounding UGA and other Clallam County area to be covered by the permit. The City is not challenging being included under Phase II and has submitted the Notice ofIntent (NOI), as required by DOE, to be covered by the permit. Council recently approved the hiring of an additional Stormwater Rates 2007 March 13,2007 Page 2/3 full time engineering position in Public w~fks to assIst hi iffip1ementation of the Phase II requirements. The estimated annual cost for this position is $100,000. The original projection of the rates in 2003 was estimated to produce a net annual revenue for projects in the amount of $225,000 per year. The Engineering News Record (ENR) Construction Cost Index for Seattle in 2003 was 7713. The current ENR index is 8621. This construction cost change since 2003 effectively requires $26,500 more now ($251,500 annually) to continue to fund the Stormwater capital project program at the same levels as 2003. Each $1 of base rate adjustment produces approximately $108,000 in net revenue. The estimated Stormwater Utility base rate adjustment required to fund the new engineering position ($100,000) and maintain a level construction program ($26,500) in the amount of$126,500 annually is $1.20. This would result in a base rate of $4.20 under the current rate structure. This rate will not cover the added efforts that will be required by Community and Economic Development for public involvement, education, training, and permitting, nor will it cover any added work required by the Utilities, Parks, and Street crews. Any added efforts which may be required of engineering beyond the one authorize position are also not included. Beyond the above staffing and adjustments for inflation discussion, the CFP for 2007 thru 2012 includes non-programmatic capital projects totaling $5,420,000 or $900,000 per year. To raise an additional $650,000 per year beyond the $250,000 proposed above would require adding $6.00 to the base rate for a total of $1 0.20 per month. This is not acceptable or affordable at this time for the ratepayers. Additional funding for general area stormwater improvements will need to be provided by developers, by formation of Local Improvement Districts, or by loans and grants when available. If Stormwater Utility rates are adjusted, a review of the commercial (35%) and residential (65%) contributions to the overall revenues may be needed. Based on impervious areas for commercial (52%) and residential (48%) customers, an adjustment may be needed to make the rates more equitable. Currently, monthly contributions from contiguous commercial properties are capped at 10 equivalent residential units (ERU) or $30.00. Adjusting or removing the cap limits and/or modifying the ERU impervious area from 4000 s.[ are alternate methods to bring the commercial and residential rates to equity. Removing the cap would provide an estimated additiona12600 ERUs or $90,000 in annual revenues at the current $3.00 ERU rate. Reducing the per ERU area from 4,000 s.[ to 3,500 s.[ would not increase the residential revenues but would raise the commercial revenues by $142,200 with cap or $290,000 without cap at the current $3.00 ERU rate. These options are shown in the following table: o tion Descri tion Residential Commercial Total 1 No Change (Current) $232,500, 65% $124,500,35% $357,000, 100% 2 Remove ERU cap $232,500, 52% $214,500, 48% $447,000, 100% 3 Reduce ERU to 3500 S.F. with $232,500,47% $266,700,53% $499,200, 100% ERU cap 4 Reduce ERU to 3500 S.F. $232,500, 36% $414,500,64% $647,000, 100% without ERU cap Measured Impervious areas 48% 52% 100% N:\UAC\Final\Stormwater Rates 2007.doc Stormwater Rates 2007 March 13,2007 Page 3/3 These proposals are presented here to enable discussion with the UAC on Stormwater Utility Rate adjustments needed to meet the CFP program as well as pending NPDES Phase II unfunded requirements. For comparison the following table has been prepared showing the stormwater utility rates charged by similar sized cities and how they have changed (Highlighted) since 2004 to meet the ever increasing requirements: Monthly System Monthly System City Residential Development Residential Development Rate Char e Rate Char e 2004 2006 Port Angeles $3.00 None $3.00 None Anacortes $3.00 $1,126.00 $3.00 $1,126.00 Blaine $4.00 $200.00 $4.00 $200.00 The rates and system development charges shown in the table above are based on A WC 2004 and 2006 Surveys. The statewide average for all reporting cities is $9.00 per month. The following is a summary ofthe non-programmatic Stormwater Utility capital projects in the approved 2006 CFP (dollars in thousands): Priority Project 2007 2008 2009 2010 2011 2012 Total 1 10th & N $50 $250 $300 2 Stream Outfalls $50 $50 $50 $50 $50 $50 $300 3 CampbelllPorter $50 $200 $250 $500 4 Lincoln Culvert $100 $100 5 Canyon Edge/ Ahlve $50 $200 $250 $500 6 Lincoln Park/Big Bo $30 $270 $300 7 Bluff Outfalls $70 $120 $120 $120 $120 $120 $670 8 CSt. Extension $50 $200 $250 $500 9 Rose/Thistle $50 $200 $250 $500 10 Laurel/1 0 1 $50 $200 $250 $500 11 Upper Golf Course $50 $200 $250 $500 12 Milwaukee $50 $150 $500 $700 13 First Street $50 $50 Totals $300 $920 $990 $570 $1,170 $1,470 $5,420 N:\UAC\Final\Stormwater Rates 2007.doc