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
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Utility Advisory Committee
PublicW orks Conference Room
Port Angeles, W A 98362
February 13, 2007
3:00 P.M.
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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
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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.
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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.
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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
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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.
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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
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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:
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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
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Rate Design Goals,
1. . Each class pays appropriate share
2. Total rev~hue r~flects cost'
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Promotes seasonal
water use efficiency
Easy to administer
, Legal
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.Rate Design Considerations
875
$15.29
Not adjusted for in'come, weather or wastewater rates
$0
1998
2000
2002
. 2004
2006
- Consumption - Monthly Cost - Monthly Cost Adjusted Far CPt
5
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~ 4.500
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Not adjusted for income. weather or wastewater rates
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1996
1998
2000
2002
2004
2006
Costs that do not tend to vary with the quantity of water produced
Fixed & Variable Costs
Fixed costs (basic charge)
Variable costs (commodity charge)
Costs that tend to vary with the quantity of water produced
7
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Commodity Rate Alternatives
Uniform rates - status quo
Tiered rates -" 2 orrnore'rat$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
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Hundred Cubic Feet(CCF).PerMonth
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Commodity Charge - Deduct Example 1
(Assumes no change to current basic charge - overall revenue neutral)
$3.00
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Hundred Cubic Feet (CCF) Per Month
Commodity Charge - Increasing Block Example 1
(Assumes no change to current basic charge - overall revenue neutral)
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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
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Hundred Cubic Feet (CCF) Per Month
18 20 22 24 26 2830 >30
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Commodity Charge - Decre9sing Block Example
(Assumes no change to current basic charge - overall revenue neutral)
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10 12 14 16 18 20 22 24 26 28 30 >30
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(Assumes no change to current basic charge - overall revenue neutral)
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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
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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