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HomeMy WebLinkAboutAgenda Packet 04/13/2010I. Call To Order II. Roll Call III. Approval Of Minutes For March 9, 2010 IV. Late Items V. Discussion Items: VI. Information Only Items: VII. Next Meeting Date: May 11, 2010 VIII. Adjournment N:1UACIFINAL1041310 UTILITY ADVISORY COMMITTEE Jack Pittis Conference Room Port Angeles, WA 98362 April 13, 2010 3:00 p.m. A. Nippon Paper Industries USA Co., Ltd Cogeneration Project Memorandum of Intent B. College Substation Switch Replacement C. Lower Elwha Klallam Tribe /City of Port Angeles Wastewater Agreement D. Retail Tiered Rate Methodology Study Consultant Agreement E. Simple Steps, Smart Savings Promotion Services Agreement F. Low Snowpack/Wholesale Power Rates (verbal report only) G. Benefit Dump Day H. Refrigerator Freezer Collection Event (verbal report only) I. Washington State Cash for Appliances Program J. Conservation Loan Guaranty Agreement Termination K. City Response to GoogleTM Fiber for Communities Request for Information L. Western Public Agencies Group Direct Load Control Assessment M. Advanced Metering Infrastructure Project Communications Plan PRINT NAME ORGANIZATION 4 a \4 I ti► /l'J V�-9- Srri -t MSC- II19u,I Iv P5 N: \PWKS LIGHT \CONS CATE SIGNUP wpd UTILITY ADVISORY COMMITTEE y113 GUEST SIC:N UP SHEET I. Call To Order Chairman Di Guilio welcomed Dean Reed as the new citizen at large member and suggested a letter of appreciation be sent to Orville Campbell. Councilmember Nelson moved to approve the recommendation and Councilmember Kidd seconded the motion, which carried unanimously. II. Roll Call Members Present: Staff Present: Others Present: III. Approval Of Minutes Utility Advisory Committee Vern Burton Meeting Room Port Angeles, WA 98362 March 9, 2010 3:00 p.m. Chairman Di Guilio, Brooke Nelson, Cherie Kidd, Paul Elliott, Dean Reed Kent Myers, Bill Bloor, Yvonne Ziomkowski, Terry Gallagher, Brian Smith, Mike Puntenney, Jim Harper, Elizabeth Strait, Larry Dunbar, Steve Sperr, Kathryn Neal, Phil Lusk, Cate Rinehart Jim Jones Jr Clallam County Mike Sturgeon Wave Broadband Tom Callis Peninsula Daily News Shirley Nixon Citizen Craig Johnson Capacity Provisioning, Inc. Kurt Lorenzgen- Capacity Provisioning, Inc. Donna Knifsend Attorney Mike McCarty Fire Department Volunteer Chairman Di Guilio asked if there were any corrections to the minutes of February 23, 2010. Councilmember Nelson moved to approve the minutes. Paul Elliott seconded the motion, which carried unanimously. Dean Reed abstained due to absence at the meeting. IV. Late Items None V. Discussion Items A. Nomination And Election Of Vice Chairman Paul Elliott moved to nominate Dean Reed as Vice Chairman. Councilmember Nelson seconded the motion, which carried unanimously. B. Metropolitan Area Network Services Agreement Larry Dunbar, Deputy Director of Power Systems, gave a power point presentation and reviewed the information it contained noting that two vendors submitted proposals. There was a brief discussion. Dean Reed moved to recommend City Council authorize the Mayor to sign the Metropolitan Area Network Services Agreement with Capacity Provisioning, Inc. and authorize the City Manager to make minor modifications to the agreement, if necessary. Councilmember Nelson seconded the motion which passed on a vote of four to one with Councilmember Kidd in opposition. C. Reimbursement Resolution For Capital Project Financing Yvonne Ziomkowski, Finance Director, advised that the City intends to issue bonds in 2010 and 2011 to cover the cost of utility improvements within the city limits and that some expenses will necessarily be paid prior to the issuance of the bond. There was a brief discussion. Councilmember Kidd moved recommend City Council adopt a resolution to authorize reimbursement from bond proceeds to the Water, Wastewater, Electric, and Stormwater funds for expenditures made prior to the issuance of the bonds. Dean Reed seconded the motion, which carried unanimously. D. Industrial Wastewater Pretreatment Program Ordinance Kathryn Neal, Engineering Manager, passed out a copy of the ordinance revisions and reviewed the information. A discussion followed. Information only. No action taken. E. Nippon Paper Industries USA Co. Supplement To Settlement Agreement Larry Dunbar, Deputy Director of Power Systems, noted that the City and Nippon Paper Industries USA Co., had entered into a Settlement Agreement related to the Bonneville Power Administration Residential Exchange Program. The supplement to the Settlement Agreement is related to City payment of the associated State utility taxes to Nippon. There was a brief discussion. Dean Reed recommended City Council authorize the Mayor to approve a Supplement to Settlement Agreement with Nippon Paper Industries USA Co., and authorize the City Manager to make minor modifications to the agreement, if necessary. Councilmember Nelson seconded the motion, which carried unanimously. F. Google Fiber For Communities Request For Information Larry Dunbar, Deputy Director of Power Systems, advised that Google was planning to build and test ultra -high speed broadband networks in a number of trial locations across the country and has put out a Request For Information to help identify interested communities. Councilmember Nelson moved to recommend City Council authorize the Mayor to respond to the Google Fiber for Communities Request for Information. Councilmember Kidd seconded the motion, which carried unanimously. VL Information Only Items G. 2009 Consumer Confidence Water Quality Report Information only. No discussion or action taken. H. Broadband Technology Opportunities Program Grant Application Information only. No discussion or action taken. I. Advanced Metering Infrastructure And Demand Response Project. Information only. No discussion or action taken. VII. Next Meeting Date: April 13, 2010 VIII. Adjournment: 4:50 p.m. Dan Di Guilio, Chair Cate Rinehart, Administrative Specialist N. \UAC\Final\mar9meet.wpd p W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: April 13, 2010 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Nippon Paper Industries USA Co., Ltd Cogeneration Memorandum of Intent Summary: Nippon Paper Industries USA Co., Ltd offered the City a non binding Memorandum of Intent to indicate its interest in purchasing a portion of the output of a cogeneration project that is under consideration. Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to sign a non binding Memorandum of Intent with Nippon Paper Industries USA Co., Ltd and to make minor modifications to the Memorandum of Intent, if necessary. Background /Analysis: Nippon Paper Industries USA Co., Ltd (NPI) has been assessing the cost and benefit of a cogeneration project at their Port Angeles mill for the last few months. The project would use a wood -fired (biomass) boiler to generate 18.6 megawatts of renewable energy. NPI anticipates it will make a go /no go decision on the project in June of this year, with ground- breaking required by the end of this year to ensure eligibility of a federal grant. The cogeneration project would commence operation sometime in 2012. The City's Electric Utility is not required by State law to purchase renewable energy. However, the City's Electric Utility is required by the State law to update its 2008 Resource Plan by September 1, 2010. Based on the 2008 Plan, 5 and 10 year Tier 2 purchases were estimated to be 3.39 and 4.35 average megawatts respectively. Although prior City Council direction was to double the conservation program to reduce or eliminate future Tier 2 purchases through September 30, 2014, purchasing a portion of the output of NPI's future cogeneration project could also be considered for some of the City's future Tier 2 needs. In accordance with the Bonneville Power Administration Power Sales Agreement, the Utility Advisory Committee and City Council will be asked to consider how it will satisfy the Tier 2 needs from October 2014 through September 2019 before September 1, 2011. A more formal commitment to NPI for cogeneration power purchases should be considered at that time. Staff recommends that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the City Manager to sign a non binding Memorandum of Intent with Nippon Paper Industries USA Co. Attachment: Draft Memorandum of Intent N. \UAC\Final\NPI Cogeneration Memorandum of Intent doc P ORT A NGELES WASH I N G T O N, U.S.A. Public Works Utilities Department This Memorandum of Intent (MOl) outlines the principal terms and conditions of the understanding between Nippon Paper Industries USA Co., Ltd. (NPIUSA) and City of Port Angeles (Utility) (together, the Parties) regarding the potential purchase and sale of electric power that NPIUSA plans to generate from a proposed 200,000 lb/hr wood -fired (biomass) boiler and 18.6 MW average extraction /condensing turbine generator facility (the Project) at the NPIUSA paper mill site in Port Angeles, Washington (the Site). NPIUSA intends to pre certify electric power generated at the Project for California, Oregon and Washington Renewable Portfolio Standards (RPS) as required. Utility will consider purchasing from NPIUSA electric power certified to meet RPS requirements for delivery in October 2014 September 2028, if needed. Project specifications, power delivery dates and amounts and anticipated pricing are all reasonable approximations. This MOI does not create a binding obligation on either Party. Any purchase of electric energy by the Utility will require a future agreement and is subject to the formal approvals of the Parties. The Parties will conduct further due diligence regarding the Project. Project specifications may change during the planning and analysis of the Project. The Project is presently planned as follows: Commercial Operation Date Q3, 2012; Project Size 18.6 MW avg.; Project Characteristic Firm Renewable Power 94 -96% Annual Capacity Factor; Project Fuel Forest waste, clean urban wood, mill residuals, paper mill sludge; RPS Qualification Developer will precertify in CA, will complete certification, and will seek subsequent certification in OR, WA as required; Interconnection BPA at 230KV, interconnection currently in place; Memorandum of Intent Point of Sale Point of interconnection above, transmission arranged by purchaser. Phone: 360- 417 -4800 Fax: 360- 417 -4542 Website: www.cityofpa.us Email: publicworks@cityofpa.us 321 East Fifth Street P.O. Box 1150 Port Angeles, WA 98362 -0217 A definitive agreement between NPIUSA and Utility will contemplate the following terms: Contract Term 10 to 20 years; Contract Escalation Percentage of PPI; Initial Contract Price at Startup Aggregate of $92 -95 per MWH; Renewable Energy Credits (RECs) Bundled with power. Rights at WREGIS assigned to purchaser. CA definition of Environmental Attributes; Seasonality Slightly higher summer output due to warmer weather; Outages Two 3 -day annual outages coordinated with power purchaser; Balancing Authority Ancillary Services Provided for and paid for by purchaser, imbalance charges paid by developer. The expected roles and contributions of the Parties to the Project are as follows: NPIUSA will: Carry out all necessary permitting, design, evaluation, and development work in preparation for an investment decision; Subject to acceptable costs and business conditions, and subject to board and shareholder approvals, arrange funding of the Project; Permit, construct and commence operation of the Project at the Site; and Arrange with the Washington Department of Natural Resources and other owners of forest land and milling facilities, including forestry companies, to make available a supply of forest and mill residue fuels for the Project. Utility will: Consider purchasing from the Project from 1 megawatt to up to 20 megawatts of RPS eligible renewable power produced /generated from forest residues, urban wood and mill residuals, including sludge, at a then prevailing renewable power price with PPI indexing. The forgoing terms and conditions do not constitute a binding agreement, but are some of the general business terms under which the Parties are willing to proceed. Any binding agreement between the Parties shall be set forth in a separate, future, definitive agreement in form and content satisfactory to each of the Parties. This letter of intent does not constitute a binding agreement upon the Parties and neither Party will have any liability on account of such Party's refusal or other failure to enter into a definitive and binding agreement. The Parties will, however, proceed in good faith to discuss of a sales agreement for Project power. Dated April, 2010. ACKNOWLEDGED AND AGREED: Nippon Paper Industries USA Co., City of Port Angeles Ltd. By Title: Date: By: Title: Date: J;cRT NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: April 13, 2010 To: Utility Advisory Committee From: Terry Dahlquist, P.E., Electrical Engineering Manager Subject: College Substation Switch Replacement Summary: The Electric Utility needs to replace a 69 kV switch on the transmission system that was not included in the capital projects for 2010. Replacement is required due to advanced deterioration of the switch and supporting structure. Recommendation: Forward a favorable recommendation to City Council to add a capital project for College Substation Switch Replacement, Project CL06 -2010, to the Capital Facilities Plan, and approve advertisement of the work upon completion of the design. Background /Analysis: Periodically the Electric Utility contracts for infrared scans of critical equipment to detect overheating problems before they cause an actual failure. Such a scan revealed overheating contacts on switch L20, a 69 kV switch on the transmission system near College Substation. The location in the system is critical to supplying the City's entire electric distribution system. The immediate overheating problem was repaired last month by Light Operations crews. In the course of performing the repairs, crews determined the switch was generally in poor condition, and the wood structure supporting it has severe rotting on the top. The existing situation has been stabilized and is not an emergency, but it is urgent that this switch and related structures be replaced prior to the next winter storm season. Staff is prepared to develop the design and solicit bids from utility contractors to replace switch L20 and the supporting structure. It is recommended that the estimated $80,000 cost be funded from Electric Utility operating reserves. Once bids are received, staff will return to City Council to request award of the contract. Staff recommends that the UAC forward a favorable recommendation to the City Council to approve the addition of the College Substation Switch Repair, Project CL04 -2010, to the Capital Facilities Plan, and approve advertisement of the work upon completion of the design. N: \UAC\Final \College Substation Switch Replacement.doc J OR1 A NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: April 13, 2010 To: Utility Advisory Committee From: Glenn A. Cutler, P.E., Director Public Works and Utilities Subject: Lower Elwha Klallam Tribe (LEKT) /City of Port Angeles (City) Wastewater Agreement Summary: Construction of a storage facility for the LEKT sewer project is cost prohibitive. The National Park Service (NPS) desires that the City construct a storm water system in lieu of the storage facility on First Street between Lincoln and Valley Streets to mitigate combined sewer events associated with the LEKT sewer project. Three documents, a City/NPS Cooperative Agreement, a City /LEKT Water Agreement, and a Task Agreement need to be executed to allow the City to construct the storm sewer system. Recommendation: It is recommended that 1) the issues be thoroughly discussed by the UAC membership, 2) identify issues the staff should further pursue, and 3) forward the Cooperative Agreement Amendment #1, Wastewater Agreement Amendment #1 and the draft Task Agreement 17 to the City Council with a favorable recommendation. Background /Analysis: The City and LEKT entered into a wastewater agreement on May 30, 2007. As part of the agreement, the LEKT agreed to prevent any contribution to combined sewage overflows (CSO) in the City's system. The current design includes a 430,000 gallon storage tank estimated to cost $5,400,000. The NPS, as a cost saving measure, requested City staff to explore alternatives to construction of the storage tank. This was performed under Amendment No. 5 to the Brown Caldwell (B &C) CSO Consultant Agreement, approved by Council on November 4, 2009. The results of the analysis by B &C identified a potential source separation project in the Port Angeles downtown area. The project would separate storm water flows from the sanitary collection system on First Street between Lincoln and Valley Streets. The project envisions installing a new stormwater collection system under First Street, with catch basins on both sides of the street, and it is estimated in the range of $1,500,000 to $2,000,000. The alternative solution has been informally presented to the Depaitinent of Ecology, on January 14, 2010, and was supported by the LEKT. The NPS issued Task Agreement 16 Modification #2 in an amount not to exceed $161,744 for the City and B &C to develop the appropriate documentation for submittal to the DOE for the alternative solution. It is anticipated this work effort will be completed later this year. The NPS has requested the City to take on the responsibility for constructing the alternative solution. If Council agrees to take on the responsibility of constructing the alternative, it will be necessary to modify the City/NPS Cooperative Agreement H9500050094 (attached) signed in early fall of 2005, and April 13, 2010 Utility Advisory Committee Re: COPA -LEKT Wastewater Agreement Page 2 the Wastewater Agreement between the City of Port Angeles and the Lower Elwha Klallam Tribe signed in the Spring of 2007. It will also be necessary to agree to the acceptance of a new task agreement between the City and NPS to construct the project. Attached for consideration is draft language to modify the Cooperative Agreement permitting the NPS to issue work to the City and, at the City's option, accept work for performance associated with the construction of a storm sewer system. It is also necessary to modify the Wastewater Agreement between the City and LEKT to permit, as an alternative to the storage facility, the construction of a storm sewer system. Attached is the suggested language for modifying the agreement. The last item that needs to be addressed is the proposed task agreement that would be issued to the City to construct the storm sewer system. The permitting and approval from the Department of Ecology for the storm sewer system is in processing and will not be completed until later this year. Only the concept has been selected and a detailed construction design needs to be accomplished. The NPS is desiring to utilize funds from the American Recovery and Reinvestment Act. These funds need to be obligated not later than May 15, 2010 by the NPS. Issuance of funds to the City will obligate the funds. The task agreement also includes costs associated with the design, construction, and construction management for the incremental cost for the pedestrian bridge to be constructed by the City over Dry Creek later this year to accommodate the LEKT sewer line. Staff is currently negotiating the terms of a task agreement that addresses the design, permitting and construction management for the sewer system. A final task agreement may not be available for discussion with the UAC today. The attached draft task agreement 17 is provided for discussion purposes. A summary of the task agreement follows: The City agrees to: 1. Constructing a new storm drainage facility in lieu of constructing a dedicated Tribal waste water storage facility on First Street to Valley Street storm drain. a. Obtain all necessary federal, state, and local permits and approvals b. Connect the new system into the existing Valley Street stormwater system c. Comply with and accomplish reporting required by the American Recovery and Reinvestment Act per attached Recovery Act Guidance. 2. Design and construct a structural system to support the Lower Elwha Klallam Tribe's 8 -inch pressure sewer main on the City pedestrian bridge, to be constructed by the City, that will span Dry Creek in the Milwaukee Railroad Grade. 3. The City will not be obligated to perform items 1 and 2 if any federal or state regulatory agency(ies) does not permit approval for the project. 4. Complete the project not later than June 15, 2011. Financial compensation to the City for the work described in the task agreement is a combination of fixed and variable price work. The variable pnce work will be adjusted if there is a change in either, or both, the construction price or duration of the project. The following summarizes the compensation to the City: April 13, 2010 Utility Advisory Committee Re: COPA -LEKT Wastewater Agreement Page 3 For the work specified in the Task Agreement, the National Park Service will provide funding in the amount of $1,584,350; provided that in the event that the costs increase or decrease from $1,584,350, the City and NPS will negotiate an equitable adjustment to this task agreement. The $1,584,350 consists of the following two elements: 1. $1,520,000 for design and construction of the dedicated storm drainage system. a. $209,000 for the permitting and design, bid evaluation services and consultant post award services shall be fixed price. b. $177,000 for the City administration, construction management and field archaeological costs shall be fixed price unless the construction contract price exceeds the award amount of the construction contract by 10 percent or the duration of'the construction contract is extended by 10 percent of the original contract time allowed in the bid documents this cost shall be renegotiated. c. $25,000 for community outreach shall be fixed price. d. $924,652 for the construction contract. The actual amount reimbursed to the City shall be the award amount. e. $184,348 provided for contingency funds and shall be used by the City in consultation with the NPS. f. Change orders to the construction contract consistent with the scope of work for item 1 above shall be reimbursed to the City for the amount of the change order; and in the event that the costs increase or decrease from $1,520,000, the City and NPS will negotiate an equitable adjustment to this task agreement. 2. $64,350 for design, construction, and construction management of a structural system to support the Lower Elwha Klallam Tribe's 8 -inch pressure sewer main on the pedestrian bridge, which will be constructed by the City, that will span Dry Creek in the Milwaukee Railroad Grade (Article II, item 3 above). The structure will be designed and constructed to support a carrier pipe, sewer line, and hangers to be installed by the NPS or Lower Elwha Klallam Tribe. The price will be adjusted if the final cost of the bridge constructed by the City varies by plus or minus 10 The current cost of the bridge is estimated to be $673,000 for design, permitting, construction, and construction management. There is risk involved with accepting funds in advance of a well defined project, and having bid results. The task agreement is structured to reduce the risk to the City, but it cannot be eliminated completely. Negotiations will continue with the NPS over the next few weeks. It is planned to bring this item to the Council for a decision at their first meeting in May, 2010. It is recommended that 1) the issues be thoroughly discussed by the UAC membership, 2) identify issues the staff should further pursue, and 3) forward the Cooperative Agreement Amendment #1, Wastewater Agreement Amendment #1, and the draft Task Agreement 17 to the City Council with a favorable recommendation. N. \UAC\Final \COPA -LEKT Wastewater Agreement.doc ARTICLE I BACKGROUND AND OBJECTIVES Add the following at the end of Article I: Removal of the Elwha and Glines Canyon Dams will result in an increase of sediment in the river, which is anticipated to raise the ground water level in the Lower Elwha Valley, rendering the septic systems used by the Lower Elwha Klallam Tribe (Tribe) ineffective. As a result, the NPS has agreed to construct a wastewater collection and transportation system for the Tribe. The City and the Tribe on May 30, 2007 reached a written agreement on the acceptance and treatment of the wastewater from the new Tribe's wastewater system. One of the components of the project is a "storage facility" to mitigate impacts to the City's combined sewer system. See, para. 2.f. of the May 30, 2007 Agreement. The Tribe has designed the Tribal wastewater system, and NPS funded, and reviewed, the design. After the 2007 Agreement the City, NPS and the Tribe have been involved in discussions and analysis of alternatives to the 2. f. storage facility requirement. The City and NPS and the Tribe have concluded the long term maintenance required by this storage facility, the high construction cost of the facility, are offset by the construction of dedicated storm drainage facilities within the City to offset the quantity of wastewater to be delivered from the Tribal system. The City concludes the new storm drainage system is in its best interests, and is consistent with its commitment to assist in the EREFRA project. NPS has independently concluded the construction of the storm drainage system, in lieu of a Tribal wastewater storage facility, represents a substantial savings to the taxpayers. The Tribe has indicated its concurrence with this alternative. ARTICLE III STATEMENT OF WORK Add the following to "A. The NPS -ONP agrees to:" Add the following to "B. The CITY agrees to:" Cooperative Agreement H9500050094 Amendment #1 19. Negotiate the transfer of sufficient funds to plan, design and construct the storm sewer system in accordance with EREFRA, consistent with the alternative described in the Brown and Caldwell Report of January 5, 2010; and consistent with NPS cost estimates 15. Develop a schedule for, and conduct, the environmental and other necessary compliance requirements, obtain Washington Department of Ecology concurrence, secure permitting, design, and construct a new dedicated storm sewer facility along First Street consistent with the alternative described in the Brown and Caldwell Report ofJanuary 5, 2010. 16. Submit a Task Agreement to NPS for review and approval, and further discussion if necessary, reflecting the storm drainage work to be accomplished by the City. This Amendment is expressly subject to the negotiation of an acceptable Task Agreement and approval by the Washington State Department of Ecology of alternative number one, Storm Drain on First Street to Valley Street Storm Drain in the Brown and Caldwell Report ofJanuary 5, 2010 and issuance of appropriate regulatory permits.. 17. The new storm drainage facility is in lieu of, and is approved as an alternative to, the requirement of a dedicated Tribal wastewater storage facility, pursuant to 2.f. of the City Tribal wastewater agreement. Add the following to "C. Project facilities scope and design:" 5. The City shall plan, design, construct, and operate alternative number one, Storm Drain on First Street to Valley Street Storm Drain in the Brown and Caldwell Report of January 5, 2010 and issuance of appropriate regulatory permits a dedicated storm sewer system. In doing so, the City will do its best to obtain concurrence of the Washington Department of Ecology to construct the system, and comply with all applicable laws and regulations. Add the following to "D. Construction:" The City will construct the new storm sewer system, if approved by the Washington State Department of Ecology in accordance with the provisions of this agreement, and consult with NPS and the Tribe as appropriate. Add the following to "E. Operations and Maintenance" The City will be responsible for all operations and maintenance costs associated with the new storm sewer system constructed in First Street, alternative number one, Storm Drain on First Street to Valley Street Storm Drain in the Brown and Caldwell Report of January 5, 2010. IN WITNESS WHEREOF, the parties hereto executed this amendment to the Agreement on the dates set forth below, FOR THE CITY OF PORT ANGELES FOR THE NATIONAL PARK SERVICE Agreement Number 119500050094 Cooperative Agreement between The United States of America, acting through the Department of the Interior National Park Service Olympic National Park and The City of Port Angeles Agreement Number H9500050094 This Agreement is entered into by and between the UNITED STATES OF AMERICA, acting through the DEPARTMENT OF INTERIOR NATIONAL PARK SERVICE, OLYMPIC NATIONAL PARK (NPS -ONP), and the CITY OF PORT ANGELES (CITY). ARTICLE 1— BACKGROUND AND OBJECTIVES This Agreement is between the United States of America, acting through the National Park Service (NPS), and the City of Port Angeles (City). This Agreement is made pursuant to the Elwha River Ecosystem and Fisheries Restoration Act (EREFRA) and the Congressional Conference Reports for the Fiscal 2000 and 2001 Interior andRelated Agencies Appropriation Bills. Section 4 of EREFRA states "that the Secretary is authorized and directed, subject to the appropriation of funds therefor, to take such actions as are necessary to implement ...(3) protection of the existing quality and availability of water from the Elwha River for municipal and industrial uses from possible adverse impacts of dam removal." Further, these protective measures "...must include all actions reasonably necessary to maintain and protect existing water quality for the City of Port Angeles...against adverse impacts of dam removal." The FY2000 Congressional Conference Report urged the NPS -ONP to enter into a memorandum of understanding with the City and other regional stakeholders in the development and operation of the water mitigation measures required by Section 4 of EREFRA. The FY2001 Congressional Conference Report urged the City and the NPS -ONP to agree on the type and scope of the water supply facilities necessary to mitigate the impact of Elwha River dam removal by March 1, 2001 (or within a reasonable time prior to designing the facilities). The parties agree mutual cooperation and close involvement is necessary to accomplish the task of mitigating for the effects of dam removal, and that substantial involvement is anticipated by each party throughout the term of the projects, and that a cooperative agreement is one appropriate instiwnent to implement and make effective the promises of the Memorandum of Understanding ("the MOU between the parties dated August d, 2004. The parties make and enter into this Cooperative Agreement to implement elements of the MOU relevant to the City. In the case of any conflict between the MOU and this Agreement, the former shall govern. Nothing in this agreement shall in any way limit, diminish, restrict, or lessen the rights, benefits, or entitlements granted by EREFRA. While the NPS -ONP has a duty to mitigate the effects of dam removal, the City owns and controls land and waterworks that are essential to make effective the mitigation. Removal of the Elwha and Glines Canyon dams will result in the degradation of existing water quality through the release of sediments accumulated in Lake Mills and Lake Aldwell, thereby requiring Rage 1 of 18 measures to protect municipal, industrial, and fisheries water supplies. This agreement defines the roles and obligations of the parties with regard to the planning, design, permitting, construction, and operation and maintenance of water treatment or related facilities that are reasonably necessary, as determined by the Secretary, to protect the existing quality and availability of Elwha River water for municipal and industrial uses from the possible adverse impacts of dam removal. It is the joint objective and priority of the parties to complete the water treatment and related facilities in. a timely manner, consistent with initiation of dam removal in 2008 and to make best efforts to avoid delay. The parties will cooperate in completing the tasks set forth herein, and will work with other stakeholders including, but not limited to, Nippon Paper Industries in achieving the goal of restoring the Elwha River ecosystem through dam removal, revegetation, and fisheries restoration, which is recognized as a sigaif cant public project that will benefit the resources of the Elwha River basin and the citizens of Port Angeles, Clallam County, and the region, provided that impacts to the City's water supplies and water systems are fully mitigated pursuant to EREFRA. ARTICLE H AUTHORITY A. Federal: The Elwha River Ecosystem and Fisheries Restoration Act of 1992 Elwha Act), Public Law 102 -495, 106 Stat. 3173, provides for mitigation of the effects of dam removal on municipal and industrial water users of Elwha River water. 16 U.S.C. §1g provides that "The National Park Service may in fiscal year 1997 and thereafter enter into cooperative agreements that involve the transfer of National Park Service appropriated funds to state, local, tribal governments, and other public entities, educational institutions, and private non -profit organizations for the public purpose of carrying out National Park Service programs pursuant to section 6305 of Title 31" ARTICLE III STATEMENT OF WORK A. The NPS -ONP agrees to: 1. Develop an implementation schedule for selection of design alternatives, environmental review, permitting, constriction, operation and testing of all water system mitigation facilities and obtain the City's input as to acceptability. 2. Develop a process for interagency review and obtain City's input as to acceptability. 3. Have primary responsibility, with support and participation by the City, for completing the permitting and environmental review process for the water mitigation facilities. 4. Provide for operation and maintenance of the water mitigation facilities during the daze removal impact period. 5. Negotiate and contract separate agreements with Nippon Paper Industries USA to address specific project impacts to its facilities and interests. 6. Provide the City, at the end of the dam removal impact period, ownership and control of the Port Angeles Water Treatment Plant, the Elwha Mitigation Water Treatment Plant and the Elwha Surface Water Intake, consistent with the MOU. Page 2 of18 7. Serve as lead agency for and exercise approval authority over, project planning, design, engineering, environmental review, permitting, construction, start up testing, operation, and maintenance of the municipal and industrial water supply facilities as provided for in this agreement and utilize the services and expertise of the Bureau of Reclamation. The NPS-ONP will obtain the City's input as to acceptability. 8. Serve as lead agency for all permits and approvals required for the federal actions associated with the project, including approval by DOH of the design and construction of municipal treatment facilities, while providing for participation by the City. 9. Appoint a staff person to serve as the NPS's permitting and environmental review liaison with the parties. 10. Fulfill National Environmental Policy Act compliance requirements and conduct the consultations required by National Historic Preservation Act of 1966, as amended, and the Endangered Species Act to ensure that federal actions associated with the project are in compliance with applicable environmental and cultural resource laws and regulations. 11 Assist the City in obtaining long -term permits, as needed, to allow the City to temporarily relocate or retain Elwha River flow next to the City's existing Ranney well during future low flow periods as needed to maintain adequate Ranney well water yield. Necessary permits may include a U.S. Army Corps of Engineers approval, "Low- Effect" habitat conservation plan (HCP), State hydraulic approval, and or County shoreline permit. Whatever permits are necessary must be secured before transfer of the water mitigation facilities to the City. 12. Investigate alternatives to mitigate the potential impacts of dam removal that may affect the Nippon Paper Industries USA (NPI) Port Angeles Mill. The Parties anticipate that mitigation issues of concern will include, but are not limited to, NPI obtaining a NPDES permit, additions and improvements at NPI's Port Angeles mill, and additional operating costs. The City will work with the NPI and NPS- ONP to address these issues, which the Parties to this MOU recognize are important to the overall success oldie Elwha River Restoration Project. One alternative means to address these issues, in addition to the three clarifiers that will be constructed and used to mitigate impacts during the dam removal impact period, is improving the treatment capability at NPI's existing water treatment facility. NPS -ONP will also assist NPI in obtaining a National Pollutant Discharge Elimination (NPDES) permit, if necessary. NPS ONP will negotiate and enter into separate agreements with NPI to address these issues. NPS ONP will obtain the City's input as to acceptability of the mitigation measures selected and will implement the mitigation measures if NPI concurs. The rights and obligations stated in this paragraph shall be binding upon and shall benefit NPI as well as any assigns or successors to NPI subject to approval by NPS, which approval shall not be unreasonably withheld. "13. Serve as the lead agency for the development of the OM &R plan as part of the design phase of the project for those facilities required to protect the municipal and industrial water supplies from the possible adverse impacts of dam removal. 14. Provide for OM&R of the project facilities during the dam removal sediment release impact period following the first release of fine sediments. This may be satisfied either through NPS -ONP management of OM &R activities or via funding to the City for these activities pursuant to separate agreement. Following the initiation of dam removal, the NPS -ONP and City will agree on a timeframe for transfer of OM&R responsibilities to the City. Page 3 of 18 15. Negotiate the transfer of sufficient funds to operate, maintain, and repair the facilities in accordance with EREFRA 16. Upon successful completion of construction and demonstration of successful operation of the project facilities described herein, transfer ownership of said facilities pursuant to the negotiation of mutually acceptable transfer agreements. 17. Negotiate with the City a protocol for operation as well as periodic and emergency access to the Elwha Surface Water Intake facility during the dam removal impact period. 18. Consistent with EREFRA, operate maintain, and repair industrial water treatment facilities constructed pursuant to this agreement during the dam removal impact period or until transferred to the City pursuant to Section IX, whichever comes later, and provide training to personnel to operate and maintain the facilities during the period of Federal operation and the same operation and maintenance training will be offered to City personnel. B. The CITY agrees to: 1. Assist the NPS -ONP in, obtaining federal, state, and local permits and approvals as needed to implement the facilities and actions consistent with this agreement. 2. Appoint a staff person to serve as the City's permitting and environmental review liaison with the NPS. 3. Participate in the development and review of project design. 4. Cooperate with the NPS -ONP in determining the acceptability of the scope of facilities to mitigate impacts to the City's municipal and industrial water supplies and provide that information to the NPS -ONP prior to the design and construction of said facilities. 5. Pursuant to the Conference Report for the Fiscal 2000 Interior and Related Agencies Appropriation Bill, seek additional funding for design, construction, and OM &R from the U. S. Environmental Protection Agency, other sources for funding not covered by EREFRA, special appropriations, or other sources. This provision shall not be construed as an obligation of the City to obtain such funding. 6. Provide for the use of land at no cost through easement at the City landfill site for water treatment and related facilities including the municipal water treatment plant and transmission facilities and provide for the use of land at no cost through easement at the locations controlled by the City and necessary to comply with the NPS -ONP duty to mitigate, including the land adjacent to the Elwha River for the industrial water intake, industrial water treatment plant, and transmission facilities at no cost to the NPS. White providing for the use of the property, the City shall retain fee title and reserves the right to harvest or to be compensated for standing timber on property described in the MOU. Any compensation for downed timber shall be based on current fair market value as of the date this agreement is executed, and the City shall be responsible for a timber cruise. 7. Provide for the disposal of waste solids from the operation of the municipal water treatment facility at the City's composting operation at no charge to the NPS. Page 4 of 18 8. During the dam removal impact period and subject to mutually acceptable written.agreement by the parties, operate, maintain, and repair the assigned municipal water treatment facilities constructed pursuant to this agreement, and provide administration support for the OM &R program. This shalt include but not necessarily be limited to budget, finance, environmental quality, safety, personnel, property management, supply management, materials, equipment, coordination, and supervision of work activities, the costs of which shall be reimbursed as agreed upon by the parties pursuant to EREFRA in a separate agreement. Long -term OM &R responsibilities will be as set forth in Section VIII of this agreement. 9. Upon successful completion and successful operation of mitigation measures constructed pursuant to this agreement, accept the transfer of such facilities from the NPS -ONP in a mutually acceptable transfer agreement. 10. Seek and obtain advance written approval from the NPS -ONP Elwha Project Manager for all projects, studies, or work for which reimbursement from NPS -ONP will be sought. 11. In support of NPS -ONP reimbursement to the City for any projects, studies, or other work, prepare detailed invoices sufficient to allow NPS -ONP to make an informed judgment that the costs are attributable to the study and preparation of water supply mitigation measures. 12. For each Task Agreement undertaken by the City, retain records consistent with Section X.D. of the MOU. 13. Submit written certifications with all invoices; "I, hereby certify that the invoice attached includes only costs reasonably incurred in performing work in the identified Task Agreement, and not for other purposes or comparable. (Include signature line, line for typed name of signing official, and line for the date of certification). 14. Retain fee ownership of the property where the Elwha Surface Water Intake, effluent flow distribution structure, and related improvements will be situated. C. Project facilities scope and design: 1. The NPS -ONP shall develop the designs for and construction of the water mitigation facilities consistent with Section 4 of the EREFRA and the MOU. NPS -ONP shall coordinate with the City and DOE on design and engineering requirements of the City's domestic water facilities under the Safe Drinking Water Act and its amendments and implementing state regulations. NPS -ONP shall design and construct the facilities in accordance with the scope and description set forth in Section 6 of the most recent version of the Elwha River Water Quality Mitigation Project Planning Report (Project Report) prepared by URS (a private company) for the Bureau of Reclamation. NPS -ONP shall also coordinate with the City on the design and engineering requirements of the City's industrial customers. NPS -ONP shall design and construct the industrial water mitigation facilities in accordance with the scope and description set forth in Section 7 of the Project Report. 2. The NPS -ONP will obtain the concurrence of the Washington Department of Health, and will comply with all applicable laws and regulations, in the design, construction, and operation of the municipal water supply mitigation facilities. 3. The design, construction, and operation of the industrial water supply mitigation facilities will include only those actions that are reasonably necessary to adequately protect the City from the possible adverse impacts of dam removal. Page 5of18 4. The City agrees that NPS -ONP will only provide clarifiers necessary to treat 51.2 mgd (79.3 cfs), representing anticipated peak daily use, during the dam removal impact period years (ability to treat City's full industrial and municipal water rights will not be provided). D. Construction: Upon completion of design and permitting, NPS -ONP will construct the project facilities in accordance with the provisions of this agreement and as authorized by Section 4 of the EREFRA. NPS -ONP will consult with the City on key construction management and modification decisions. E. Operation and Maintenance: The Parties recognize and agree that the federal government is responsible for the costs of operating and maintaining the water mitigation facilities during the dam removal impact period in accordance with EREFRA. Upon completion of construction, during the dam removal impact period and until the facilities are transferred to the City, NPS -ONP will be responsible for operating and maintaining the project facilities in a manner that assures that the quality and quantity of the City's municipal and industrial water supplies are protected from the potential adverse impacts of dam removal pursuant to EREFRA. NPS -ONP will consult with the City on key operation and maintenance decisions. F. Transfer Agreements: Contingent on securing any approval or authorization, the NPS-ONP and the City shall enter into a mutually acceptable transfer agreement to provide for the transfer from the NPS -ONP to the City sole ownership of its municipal and industrial water quality mitigation facilities upon the completion and successful operation of the Project. The terms of the Transfer Agreements shall be mutually agreed upon by the parties. The City intends to seek congressional language providing authority to support the NPS- ONP to transfer ownership of such facilities, including the municipal and industrial water quality mitigation facilities to the City. The ownership of such facilities shall not be transferred until the City has obtained such congressional authorization. The parties recognize and agree that the City reserves the right to not accept transfer of the facilities until the City has received a mutually agreeable transfer of sufficient funds from the federal government and/or other sources to the City for the City to operate, maintain, and repair the facilities in accordance with EREFRA. Transfer timing will be based on a mutually agreed to technical analysis that identifies when fine sediment releases associated with dam removal return to near normal l evels. ARTICLE IV TERM OF AGREEMENT This Agreement will become effective upon signature of both parties and extend until August 10, 2015, or the effective date of the Transfer Agreement, whichever is later. ARTICLE V —KEY OFFICIALS A. Involvement of key officials are essential to ensure maximum coordination and communications between the parties and the work being performed. They are: 1. For the NPS -OLYM: Signatory Page 6 of 18 Jamie Sherrill. Supervisory Contract Specialist National Park Service, Pacific West Region 1111 Jackson Street, Suite 700 Oakland, California 94607 E-mail Jamie_Sherill@nps.gov Telephone: (510) 817 -1337 Facsimile (510) 817 -1313 Administrative Rodney J. Roberson Contract Specialist Olympic National Park 600 East Park Avenue Port Angeles, Washington 98362 E.mail Rod Roberson(iinns.aov Telephone: (360) 565 -3024 Facsimile: (360 565 -3015 Signatory /Approval William G. Laitner Superintendent Olympic National Park 600 East Park Avenue Port Angeles, Washington 98362 E -mail: Bill_Laitner@nps.gov Telephone: .,(360) 565 -3001 Facsimile: (360) 565 -3015 Project Manager/Key Official Brian D. Winter, Ph.D. Elwha Project Manger Olympic National Park 600 East Park Avenue Port Angeles, Washington 98362 E -mail: Brian Winter @nps.gov Telephone: (360) 565 -1323 Facsimile: (360) 565 -1325 2. For the City: Signatory /Administrative City Manager City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 -0217 E -mail: mquinn@cityofpa.us Page 7 of 18 Telephone: (360) 417 -4500 Facsimile: (360) 417 -4542 Project Manager/Key Official Gleam. A. Cutler Director of Public Works and Utilities City of Fort Angeles P.O. Box 1150 Port Angeles, WA 98362 -0217 E -mail: gcutlerOcitvo_pf a.us Telephone: (360) 417 -4800 Facsimile: (360) 417 -4542 B. Communications The City will address any communication regarding this Agreement to the key official with a copy to the Contracting Officer and to the Superintendent NPS -ONP. Communications that relate solely to routine operational matters described in the current work plan may be sent only to the key official. C. Changes in Key Officials Neither the NPS -ONP nor the City may make permanent change in a key official without written notice to the other party reasonably in advance of the proposed change. The notice will include a justification with sufficient detail to permit evaluation of the impact of such a change on the scope of work specified within this Agreement. Any permanent change in key officials will be made only by modification to this Agreement. ARTICLE VI AWARD AND PAYMENT A. The City has the right to refuse any Task Agreement offered by the NPS. B. Payment will be made at the end of the subject task based upon billing by the City of fair and reasonable costs and will be paid by electronic funds transfer directly into the City's account at the financial institution designated on Standard Form 3881, C. Upon receipt of an invoice from the City, NPS -ONP promptly will review it. NPS -ONP will advise the City within 6 days after receiving an invoice of any objection or question about it. If there is no question or objection, NPS -ONP promptly shall voucher the invoice for payment and deliver it to the Accounting Operations Center (AOC). D. Nothing in this Agreement will be construed as binding the NPS -ONP to expend in any fiscal year any sum in excess of the appropriation made by Congress for purposes of this Agreement in that fiscal year. The commitment of funds in furtherance of this Agreement shall be authorized by individual task agreements issued against this Agreement identifying each project or groups of projects, work plan, budget, signatories, and any other special term or condition applicable to the specific project. The NPS -ONP will award funds to City based on the terms of each Task Agreement. E. Unless otherwise specified, the terms and conditions as stated in this Agreement shall apply to all Task Agreements. Subsequent Task Agreements shall become part of this Agreement. ARTICLE VII PRIOR APPROVAL Page 8 of 18 The City will obtain the prior written approval of the NPS -ONP for the items specified in 43 CFR 12.70. ARTICLE VIII LIABILITY A. The United States shall be liable, to the extent allowed by law, including the Federal Tort Claims Act, for claims for personal injuries or property damage resulting from the negligent or wrongful act or omission of any employee of the United States while acting within the scope of his or her employment, arising out of this Agreement. B. The City shall be liable, to the extent allowed by law and subject to RCW 4.96.020 providing for the filing of tort claims against the City, for personal injuries or property damage resulting from the negligent or wrongful act or omission of any City employee while acting within the scope of his or her employment, arising out of this Agreement. C. The parties shall cooperate, to the extent allowed by law, in the submission of claims against the City by third parties for personal injuries or property damage resulting from the negligent act or omission of any City employee in the course of a project undertaken pursuant to this Agreement; and in the submission against the United States of claims pursuant to the Federal Tort Claims Act by third parties for personal injuries or property damage resulting from the negligent act or omission of any employee of the United States in the course of a project undertaken pursuant to this Agreement. D. To cooperate with the NPS -ONP in the investigation and defense of any claims that may be filed with the NPS -ONP arising out of the activities of the cooperator, its agents, and employees. ARTICLE IX REPORTS AND /OR DELIVERABLES A. Where to Submit In accordance with 43 CFR Part 12, the City will submit reports to the NPS- ONP Contracting Officer at the address specified in Article V. The City also will submit a copy of each report to the key official at the address specified in Article V. B. What and When to Submit The City will submit to the NPS -ONP the following reports at the specified times, provided that these reports are required only when work on a Task Agreement issued to and accepted by the City is outstanding and incomplete: 1. Financial Status Report A SF -269, Financial Status Report, annually, prior to each anniversary date of this Agreement. 2. Progress Report Quarterly progress report, beginning (October 1, 2005) after the effective date of this Agreement, and every (15 days after quarter completion) thereafter. Each progress report will include: (a) A summary of overall progress on the work plan, including results to date; (b) Any problems or favorable or unusual developments; (c) Other information pertinent to this Agreement. C. Record Keeping The City will keep records concerning this Agreement in accordance with the requirements of Article XII, Paragraph A, General Provisions, and all applicable Office of Management and Budget Circulars. Page 9 of 18 D. Access to Records 1. The City will give the NPS -ONP and the Comptroller General of the United States, or any authorized representative, access to and the right to examine all records related to this Agreement. 2. The NPS -ONP will give the City or any authorized representative the right to examine any records related to this Agreement that otherwise would be available to the City under the Freedom of Information Act, 5 U.S.C. 552. ARTICLE X PROPERTY UTILIZATION A. City Acquired Equipment The City will utilize, manage, and dispose of property funded by this Agreement as specified in 43 CFR 12.71 and 12.73. The specific method for disposition of City acquired equipment will be agreed to by the City and the NPS -ONP prior to any disposition. B. Property Records The City will maintain records of all property acquired and disposed of under this Agreement, take a physical inventory of all remaining property, and reconcile the results of the inventory with the records at least once every two years in accordance with 43 CFR 12.72 (d)(2). ARTICLE XI MODIFICATIONS AND TERMINATION A. This Agreement may only be modified by a written instrument executed by the parties. B. Either party may terminate this Agreement by providing the other party with thirty (30) days advance written notice. In the event that one party provides the other party with notice of its intention to terminate, the parties will meet pminptly to discuss the reasons for the notice and to try to resolve their rlifferences. ARTICLE XlI— GENERAL AND SPECIAL PROVISIONS A. General Provisions 1. OMB Circulars and Other Regulations The following OMB Circulars and other regulations are incorporated by reference into this Agreement: (a) OMB CircularA -87, "Cost Principles for State, Local, and Indian Tribal Governments." (b) OMB CircularA -97, "Provisions for Specialized and Technical Services to State and Local Governments." (c) OMB CircularA -102, as codified by 43 CFR Part 12, Subpart C, "Uniform niform Administrative Requirements for Grants -in -Aid to State Governments. (d) OMB CircularA -133, "Audits of States, Local Governments, and Non -Profit Organizations." (e) FAR Clause 52.203 -12, Paragraphs (a) and (b), "Limitation on Payments to Influence Certain Federal Transactions." 2. Non Discrimination All activities pursuant to this Agreement shall be in compliance with the requirements of Executive Order 11246; Title VI of the Civil Rights Act of 1964, as amended, (78 Stat. 252; 42 U.S.C. 200d et seg.); Title V, Section 504 of the Rehabilitation Act of 1973, as Page 10of18 amended, (87 Stat. 394; 29 U.S.C. 794); the Age Discrimination Act of 1975 (89 Stat. 728; 42 U.S, 6101 et se,ic and with all other federal laws and regulations prohibiting discrimination on grounds of race, color, sexual orientation, national origin, disabilities, religion, age, or sex. 3. Lobbying Prohibition 18 U.S.C. 1913, Lobbying with Appropriated Moneys, as amended by Public Law 107 -273, Nov. 2, 2002 —No part of the money appropriated by any enactment of Congress shall, in the absence of express authorization by Congress, be used directly or indirectly to pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device, intended or designed to influence in any manner a Member of Congress, a jurisdiction, or an official of any government, to favor, adopt, or oppose, by vote or otherwise, any legislation, law, ratification, policy, or appropriation whether before or after the introduction of any bill measure, proposing such legislation, law, ratification, policy, or appropriation; but this shall not prevent officers or employees of the United States or of its departments or agencies from communicating to any such Members or officials, at his request, or to Congress or such official, through the proper official channels, requests for legislation, law, ratification, policy, or appropriations which they deem necessary for the efficient conduct of the public business, or from retaking any communication whose prohibition by this section might, in the opinion of the Attorney General, violate the Constitution or interfere with the conduct of foreign policy, counter intelligence, intelligence, or national security activities. Violations of this section shall constitute violations of section 1352(a) of title 31. 4. Anti- Deficiency Act 31 U.S. C.1341— Nothing contained in this Agreement shall be construed as binding the NPS -ONP to expend in any one fiscal year any sum in excess of appropriations made by Congress for the purposes of this Agreement for that fiscal year, or other obligation for the further expenditure of money in excess of such appropriations. 5. Minority Business Enterprise Development Executive Order 12432 It is national policy to award a fair share of contracts to small and minority firms. The NPS -ONP is strongly committed to the objectives of this policy and encourages all recipients of its Cooperative Agreements to take affirmative steps to ensure such fairness by ensuring procurement procedures are carried out in accordance with 43 CFR 12.944 for Institutions of Higher Education, Hospitals and Other Non -Profit Organizations, and 43 CFR 12.76 for State and Local Governments. B. Special Provisions Publications of Results of Studies No party will unilaterally publish a joint publication without consulting the other party. This restriction does not apply to popular publications of previously published technical matter. Publications pursuant to this Agreement may be produced independently or in collaboration with others; however, in all cases proper credit will be given to the efforts of those parties contributing to the publication. In the event no agreement is reached concerning the manner of publication or interpretation of results, either party may publish data after due notice and submission of the proposed manuscripts to the other. In such instances, the party publishing the data will give due credit to the cooperation but assume full responsibility for any statements on which there is a difference of opinion. C. Certifications The following certification is required in accordance with the above provisions and made a part of this Agreement: DI -2010, U.S. Department of the Interior Certification Regarding Debarment, Suspension and Other Responsibility Matters, Drug -Free Workplace Requirement and Lobbying. Page 11 of 18 ARTICLE XIIII ATTACHMENTS In addition to the attachments previously specified in this Agreement, the following documents, provided by City, are attached to and made a part of this Agreement: A. City's Work Plan and Budget (attached as task agreements) B. Form SF- 424, "Application for Federal Assistance" (incorporated by reference for each Task Agreement) C. Form SF -424A, "Budget Information" (incorporated by reference for each Task Agreement) D. DI -2010 E. SF -LLL, if applicable IN WITNESS WHEREOF, the parties hereto executed this Agreement on the date(s) set forth below. FOR THE CITY OF PORT ANGELES Date: Signature Name: Michael-Quinn— i t(,4( ,Mar Title: Ci Manager LT 1 Date: Attest Signature Name: a,E m y a,p7"OW Title: City Clerk -iziptcA Page 12 of 18 Approved as to Form Signature Name City Attorney Date: W /,'&on, Z /Qr 22,5 Delete the following: Wastewater Agreement Between the City of Port Angeles and the Lower Elwha Klallam Tribe May 2007 2. Facilities f. In -pipe storage or off -line storage located in the gravity sewer section of the system to store flows from the Tribe's service area so as not to contribute to the frequency and or volume of a combined sewer overflow event. Insert the following: 2. Facilities f. Construct facilities that will store flows from the Tribe's service area or construct alternate facilities within the City system, to be negotiated with the City, so as not to contribute to the frequency and or volume of a combined sewer overflow event. G'I fa., tii, I,' i j 0' \C,i, ,,,L a_i riLdc Amendment No. 1 1. Background and Purpose: WASTEWATER AGREEMENT BETWEEN THE CITY OF PORT ANGELES AND THE LOWER ELWHA KLALLAM TRIBE This is an intergovernmental agreement between the City of Port Angeles, a code city of the State of Washington "the City and the Lower Elwha Klallam Tribe, a federally recognized Indian Tribe operating under a constitution and bylaws approved by the Secretary of the Interior "the Tribe This agreement is made pursuant to the general Intergovernmental Agreement between the Lower Elwha Klallam Tribe and the City of Port Angeles (October 3, 2001). The purpose of this agreement is to provide for transport of wastewater from the Lower Elwha Reservation and tribal trust lands east of the Elwha River per the attached map, which is provided for demonstrative purposes only, to the City's wastewater treatment plant for processing in order to prevent public health emergencies due to actions by the Federal Government under the Elwha River Ecosystem and Fisheries Restoration Act (Public Law 102 -495). This agreement is not intended to limit the Tribe in purchasing additional sewer services for tribal lands where such services are not prohibited by the Washington Growth Management Act and the City has capacity for additional connections. 2. Facilities: Facilities needed to implement this agreement include: a. A wastewater collection system combining vacuum and gravity systems for areas within the Tribe's service area. b. Vacuum pumps and a lift station. Legal Backup2007Agrmts Contracts LEKT -City Sewer Agreement Final 5/25/2007 1 c. A standby generator for vacuum pumps and lift station. d. A force main from the lift station across Dry Creek to a manhole on the gravity sewer main located on the City's Milwaukee Railroad right -of -way. e. A gravity sewer main on the City's Milwaukee Railroad right -of -way from east of Dry Creek to the City's existing system at Milwaukee Drive and 18th Street. f. In -pipe storage or off-line storage located in the gravity sewer section of the system to store flows from the Tribe's service area so as not to contribute to the frequency and or volume of a combined sewer overflow event. g. Odor control at the lift station and force main discharge manhole. h. A supervisory control and data acquisition system for the City to operate valving on the storage facility(ies). L Surface restoration to match existing conditions or as required by the City. 3. The Tribe's Obligations: a. The Tribe will design and construct wastewater collection, storage, and conveyance facilities connecting tribal lands to the City's wastewater collection and treatment system in accordance with current City and Washington State Department of Ecology standards. To accommodate future population density growth in the area served by the gravity sewer, if requested by the City, any additional capacity of the gravity sewer will be designed and constructed at the City's expense. Legal Backup2007Agm7ts Contracts LEKT -City Sewer Agreement Final 5/25/2007 2 b. The Tribe's facilities will be designed to handle the Tribe's current and projected Reservation and tribal trust land wastewater Toads and to prevent any contribution to combined sewage overflows in the City's system. c. The Tribe will own, operate, and maintain all such facilities, with the exception of those facilities located within the City and its existing Urban Growth Area (UGA) per the attached map; provided that, in consideration and support for the City's undertaking to operate and maintain them the Tribe shall transfer to the City, at no cost, additional facilities that come to be located in the City or its UGA when either the City or UGA limits are expanded as well as any necessary easements. d. The Tribe agrees that the City may allow hook -ups to that portion of the facilities within the City and its UGA; provided that the total flow from all new hook -ups allowed by the City does not result in an increased hydraulic head or decreased hydraulic capacity that exceeds five percent of the designed system capacity without the written consent of the Tribe. e. The Tribe will pay the following fees to the City: 1) A System Development Charge for 400 Equivalent Water Meters (EWM). The amount shall be the charge for 400 EWMs as determined by the applicable provisions of the Port Angeles Municipal Code at the time funds to pay that charge are appropriated by Congress and included in the Annual Funding Agreement between the Tribe and the National Park Service, except that if such funds are appropriated and included in the Annual Funding Agreement for Federal Fiscal Years 2009 or 2010 the amount shall be the charge in effect during Calendar 2009. Legal Backup2007Agrmts Contracts LEKT -City Sewer Agreement Final 5/25/2007 3 2) A Milwaukee Drive connection charge of $240 per EWM connected at the time the Tribe's facilities become operational; provided that this fee will not apply in the event that such fees become prohibited by Washington State law. 3) A Milwaukee Drive connection charge of $240 per EWM for each additional EWM added after the Tribe's facilities initially become operational; provided that the fee will not apply in the event that such fees become prohibited by Washington State law. f. For 2007 the Tribe will pay a monthly wholesale rate of $2.94 per one hundred cubic feet of water consumed by the Tribe's customers plus one monthly single- customer administrative fee of $9.30. These rates will be adjusted by the City in accordance with paragraph 4. j. and Chapter 13.65 PAMC. The City will assure that the Tribe does not pay a disproportionate share of system costs. No rate adjustments attributable to correction of the City's combined sewer overflow problems will be imposed on the Tribe. g. The Tribe will adopt and enforce the pretreatment standards of Chapter 13.06 PAMC or any successor chapter, if applicable, for all wastewater not being received from residential users. h. The Tribe will pay the one -time fee listed in Subsection 3.e.1 prior to service being provided, the Milwaukee Drive charges as they accrue, and the other charges on a monthly basis. i. The Tribe will report to the City monthly on the number of hookups /connections and water consumption on which to base an accurate billing statement. Legal Backup2007Agrmis Contracts LEKT -City Sewer Agreement Final 5/25/2007 4 4. The City's Obligations: a. The City will accept and treat, in compliance with all applicable federal, state, and local regulations and permits, all wastewater conveyed to its system by the Tribe from the Lower Elwha Reservation and tribal trust lands east of the Elwha River not inside the City's Urban Growth Area. b. The City agrees to assist the Tribe in obtaining construction permits, easements, and any other necessary authorizations as needed by the Tribe for construction and operation of wastewater facilities within the City's limits or on any other City property. c. The City will provide system capacity for the equivalent of 400 EWMs for family units and commercial facilities calculated per Chapter 13.69 PAMC, a copy of which is attached and incorporated as Exhibit A. d. The City will accept, own, operate, and maintain that portion of the facilities, located within its present or future Urban Growth Area and City boundaries along with any necessary easements. e. The City will pay all of the costs of planning, designing, constructing, operating, and maintaining any gravity sewer capacity in excess of that needed to serve the equivalent of 400EWMs for family units and commercial facilities on the Reservation and tribal trust lands. f. The City will provide the Tribe a meaningful opportunity to consult in all decision making processes affecting rates charged to the Tribe under this agreement, including notification and invitation to attend at the City's Utility Advisory Committee meetings. The parties understand that the preceding sentence does not confer on the Tribe any voting rights in the City's meetings. Legal Backup2007Agrmts Contracts LEKT -C,ty Sewer Agreement Final 5/25/2007 5 g. Based upon aggregate meter readings provided to the City by the Tribe, the City will provide the Tribe a monthly statement showing consumption and the total amount due. In the interest of privacy, the Tribe will not provide individual meter readings. h. Subject to terms agreed upon by the parties and provided the City's system has adequate capacity, the City will provide treatment for wastewater generated from future Tribal facilities that are within the City's Urban Growth Area on the same terms as such service is provided to others and without regard to the limitation established in paragraph c above. i. The City shall assess the Milwaukee Drive connection charge per Chapter 13.67 PAMC to the extent allowed under Washington State law. j. The City shall calculate the wholesale wastewater rate per the attached example. See Exhibit B. 5. Effective Date: This agreement shall be effective from the date the last signature is affixed and shall remain in force until terminated. Upon any such termination: (1) the Tribe shall be liable for monthly service charges pro -rated to the termination date; (2) each party shall retain ownership of wastewater facilities as provided in this agreement; (3) if necessary, any decommissioned facilities will be drained, flushed, and abandoned in place or capped pursuant to applicable Federal, State, County and City laws and regulations. 6. Dispute Resolution: In the event of a dispute regarding interpretation of or compliance with any provision of this agreement, the parties shall submit such dispute to non binding mediation. If agreement is not reached within 45 days of the mediation, unless such time is extended by agreement of the parties, then the parties may use other legal remedies to resolve the dispute, including arbitration or litigation. In the event either Legal Backup2007Agrmts Contracts LEKT -City Sewer Agreement Final 5/25/2007 6- party files lawsuit regarding interpretation of or compliance with any provision of this agreement, the Tribe waives its sovereign immunity and consents to the jurisdiction of the courts of the state of Washington and further agrees that venue shall be in Clallam County Superior Court; provided that such waiver is limited to actions brought by the City for equitable relief, for damages arising under this agreement, or for fees due and owing to the City. 7. Term of Contract: This Agreement shall be effective as of the date of execution of this Agreement by both Parties. The initial, and minimum, term of this Agreement shall be for twenty< (20) years from the date service commences. Until terminated, this Agreement shall automatically renew for successive periods of twenty (20) years upon the expiration of the initial term or of any renewal term. This Agreement may be terminated upon mutual agreement of both Parties at any time. In addition, ten (10) years from the effective date of the Agreement or any time thereafter, either Party may give to the other written notice of termination. If written notice of termination is given, this Agreement shall terminate on (a) the termination date stated in the notice or (b) the date ten (10) years after written notice of termination is given, whichever is later. All liabilities and obligations accrued hereunder or payments due under this Agreement shall survive termination and shall continue in effect until satisfied. 8. Amendment: This agreement may be amended by written agreement of the parties. Dated this 30th day of May, 2007. CITY OF PORT ANGELES LOWER ELWHA KLALLAM TRIBE akfLe■,_ 101X114J d4CU1 t1.0 L--Ac BY� By: Appryed as to form: Williarm E. Bleor, W Attorney Legal Backup20C7Agrmts Contracts LEKT C,ty Sewer Agreement Final 5/25 Attest: Becky J. on, ity Cler 7 Draft Submitted by COPA on Annl 9. 2010 ARTICLE I GENERAL TERMS ARTICLE II STATEMENT OF WORK The City agrees to: TASK AGREEMENT NO. 17 (J2011101106) Between the United States Department of Interior, National Park Service, Olympic National Park and The City of Port Angeles, Washington Unless otherwise specified herein, the terms and conditions as stated in Cooperative Agreement Number H9500050094, including Amendment 1 shall apply to this Task Agreement. 1. Implement the Alternative 1, Storm Drain on First Street to Valley Street Storm Drain, from the Brown and Caldwell Report dated January 5, 2010, by constructing a new storm drainage facility in lieu of constructing a dedicated Tribal waste water storage facility. a. Obtain all necessary federal, state, and local permits and approvals b. Design and construct the stormwater system in First Street, to mitigate CSO- related impacts to the City's wastewater system from Tribal waste water flows. c. To connect the new system into the existing Valley Street stormwater system d. Operate and maintain the new stormwater system in First Street. e. Comply with and accomplish reporting required by the American Recovery and Reinvestment Act per attached Recovery Act Guidance National Park Service, Standard Terms and Conditions for Cooperative Agreements and Grants, version 2, released 9/23/2009. 2. Provide monthly status reports as follows: a. A Summary of overall progress on the work identified in Article II Statement of Work item 1 herein; b. Any problems or favorable or unusual developments; c. Other information pertinent to the work. 3. Design and construct a structural system to support the Lower Elwha Klallam Tribe's 8- inch pressure sewer main on the City pedestrian bridge to be constructed by the City that will span Dry Creek in the Milwaukee Railroad Grade. 4. The City will not be obligated to perform items 1 and 2 if any Federal or State regulatory agency(ies) does not permit approval for the project. ARTICLE III SCHEDULE AND TERM OF TASK AGREEMENT The work of this Task Agreement will be performed not later than June 15, 2011. Page 1 of 3 Draft Submitted by COPA on April 9.2010 ARTICLE IV AWARD AND PAYMENT Financial Assistance: For the work specified in this Task Agreement, the National Park Service will provide funding to the City in the following amount of $1,584,350; provided that in the event that the costs increase or decrease from $1,584,350, the City and NPS will negotiate an equitable adjustment to this task agreement. The $1,584,350 consists of the following elements: 1. $1,520,000 for design and construction of the dedicated storm drainage system described in Article II, Items 1 -2, above. The $1,520,000 consists of the following elements: a. $209,000 for the permitting and design, bid evaluation services and consultant post award services shall be fixed price. b. $177,000 for the City administration, construction management and field archaeological costs shall be fixed price unless the construction contract price exceeds the award amount of the construction contract by 10 percent or the duration of the construction contract is extended by 10 percent of the original contract time allowed in the bid documents this cost shall be renegotiated. c. $25,000 for community outreach shall be fixed price. d. $924,652 for the construction contract. The actual amount reimbursed to the City shall be the award amount. e. $184,348 provided for contingency funds and shall be used by the City in consultation with the NPS. f. Change orders to the construction contract consistent with the scope of work for item 1 shall be reimbursed to the City for the amount of the change order; and in the event that the costs increase or decrease from $1,520,000, the City and NPS will negotiate an equitable adjustment to this task agreement. 2. $64,350 for design, construction and construction management of a structural system to support the Lower Elwha Klallam Tribe's 8 -inch pressure sewer main on the pedestrian bridge which will be constructed by the City that will span Dry Creek in the Milwaukee Railroad Grade (Article II, item 3 above). The structure will be designed and constructed to support a carrier pipe, sewer line and hangers to be installed by the NPS or Lower Elwha Klallam Tribe. The price will be adjusted if the final cost of the bridge constructed by the City varies by plus or minus 10 The current cost of the bridge is estimated to be $673,000 for design, permitting, construction and construction management. Page 2 of 3 Draft Submitted by COPA on April 9. 2010 ARTICLE VI- Prohibition on Text Messaging and Using Electronic Equipment Supplied by the Government while Driving Executive Order 13513., Federal Leadership On Reducing Text Messaging While Driving, was signed by President Barack Obama on October 1, 2009 (ref.: htto: /edocket. access. uno.eov /2009/ndf/E9- 24203.ndf1. This Executive Order introduces a Federal Government -wide prohibition on the use of text messaging while driving on official business or while using Government- supplied equipment. In accordance with Section 4 of that Executive Order, the National Park Service encourages the City and its contractors to adopt and enforce policies that ban text messaging while driving when on official business or performing any work under this Task Agreement. The National Park Service also encourages the City and its contractors to adopt and enforce initiatives of the type described in Section 3(a) of the Executive Order. Appropriation Data: The chargeable appropriation for this Task Agreement is: 9500- 3081 -FSN ARTICLE V- AGENCY CONTACTS For the NPS: Scott McCollough, Project Manager, scott_mccollough @nps.gov, 303 969 -2939. For the City: Glenn A. Cutler, Director of Public Works and Utilities, gcutler @cityofpa.us, (360) 417 -4800. ARTICLE VI SIGNATURES IN WITNESS WEREOF, the parties hereto have executed this Task Agreement on the date(s) set forth below. For the National Park Service For the City of Port Angeles Page 3 of 3 ORTN W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: April 13, 2010 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Retail Tiered Rate Methodology Study Summary: The Public Works Utilities Department issued an invitation to qualified consultants to submit a proposal to perform services necessary to complete a Retail Tiered Rate Methodology Study for the City's electric utility. Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor to approve a consulting services agreement with EES Consulting to complete a Retail Tiered Rate Methodology Study in an amount not to exceed $24,500. Background /Analysis: In preparing for the shift to the Bonneville Power Administration (BPA) Tiered Rate Methodology (TRM) for wholesale power purchases effective October 1, 2011, the City intends to independently assess and evaluate methods to equitably allocate the BPA wholesale TRM power costs to customer rate classes (e.g., residential, commercial, etc.), develop retail rate design options for each rate class based on the shift to BPA wholesale TRM power costs, evaluate cash reserve needs, and develop a capital financing strategy. The most advantageous BPA wholesale TRM power cost allocation methodology and retail rate design option developed by this Retail TRM study will be incorporated into the Advanced Metering Infrastructure project and used by the City next year as part of a Cost -of- Service Analysis to determine the City's actual retail rates that will be effective on January 1, 2012. On January 25, 2010, the Public Works Utilities Department issued an invitation to qualified consultants to submit a proposal to perform services necessary to complete a Retail TRM Study for the City's electric utility. A total of three proposals were received by the March 5, 2010 deadline. A five- member evaluation team scored the proposals and the top two firms participated in a secondary telephone interview. Following this telephone interview and subsequent discussion, the evaluation team unanimously selected EES Consulting to complete the study. Staff requests that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the Mayor to approve a consulting services agreement with EES Consulting to complete a Retail Tiered Rate Methodology Study in an amount not to exceed $24,500. Attachment: Retail TRM Study Request for Proposals N \UAC \Final\Retail TRM Study doc CITY OF PORT ANGELES, WA PUBLIC WORKS UTILITIES DEPARTMENT REQUEST FOR PROPOSALS ELECTRIC UTILITY RETAIL TIERED RATE METHODOLOGY STUDY January 25, 2010 The Public Works Utilities Department invites qualified consultants to submit a proposal to perform services necessary to complete a Retail Tiered Rate Methodology (TRM) Study for the City of Port Angeles electric utility (City). In preparing for the shift to the Bonneville Power Administration (BPA) TRM for wholesale power purchases effective October 1, 2011, the City intends to independently assess and evaluate methods to equitably allocate the BPA wholesale TRM power costs to customer rate classes (e.g., residential, commercial, etc.), develop retail rate design options for each rate class based on the shift to BPA wholesale TRM power costs, evaluate cash reserve needs, and develop a capital financing strategy. The most advantageous BPA wholesale TRM power cost allocation methodology and retail rate design option developed by this Retail TRM Study (study) will be used by the City next year as part of a Cost -of- Service Analysis (COSA) to determine the City's actual retail rates that will be effective after October 1, 2011. A. Consultant Services The Consultant shall conduct the study as required to address the scope of work consistent with this Request for Proposals. The Consultant will conduct a detailed review of City provided records and information. The Consultant shall determine the revenue requirements for each rate class and determine applicable retail rate designs in a just, reasonable, and not unduly discriminatory manner. Each retail rate design option shall be consistent with common utility industry practice, shall be easy to understand by customers and easy to City of Port Angeles Public Works Utilities Department Request for Proposals Retail TRM Study administer by the City, and shall result in enhanced revenue stability as compared to the City's current uniform retail rate design. B. City Provided Records Information The City has posted most records and information needed to complete the study on its File Transfer Protocol (FTP) website http: /olypen.com /copa under the Retail TRM Study folder. C. Anticipated Scope of Work Task One Data Collection and Assessment The Consultant will establish the study's foundation by conducting a structured data collection and analysis process. This task shall include updating the relevant data fields and other necessary revisions to a COSA model to be provided by the City or the Consultant. 'The Consultant will strive to uncover any data limitations, issues or concerns that will need to be addressed early in the process to ensure successful completion of the study. Additional elements of Task One include: a. Rate classes included in this study are the City's distribution system customers: residential, general services, general services demand, general services demand primary metered, primary service, lighting, municipal water pumping, and nonprofit tax deductible. The City's Industrial Transmission rate class is not included in this study. b. The test -year shall be developed using the City's 2009 actual revenues and expenses. The electricity consumption data will include an estimate of heavy and light -load hour energy consumption and the distribution system's non coincident peak (NCP) demand per rate class, which shall be reviewed by the Consultant prior to use in the study. c. The study will include developing at least three methods to allocate the City's BPA wholesale TRM power costs to each rate class. As a component of January 25, 2010 Page 2 of 9 N:\PWKS\LIGHTIPOWM1Cost of Service Studies\2010 Electric Rate Study12010 Retail TRM Study RFP.doc City of Port Angeles Public Works Utilities Department Request for Proposals Retail TRM Study these allocation methods, the Consultant shall also include an evaluation of their resulting impacts on retail rate revenue risk and economic development. d. As noted in Task Four, the study will include developing retail rate design options, which must be feasible to deploy using the City's SunGuard Public Sector NaviLine customer information system. e. The study shall also include recommended revenue metering components (e.g., heavy and light Toad hour energy consumption, NCP demand, etc.) that the Advanced Metering Infrastructure (AMI) project (commencing later this year) will need to be capable of providing. Task Two Evaluation of Cash Reserve Needs The Consultant will review City policies regarding cash reserve management requirements in light of BPA's TRM. This review will ensure maintenance of the minimum threshold for each fund listed below, and the financial and rate impacts for establishing any new or revised reserves or target levels. The following reserves will be reviewed: 1) cash (operating) reserves; 2) rate stabilization (TRM) reserves; 3) energy conservation and cash restricted for loan guarantees; 4) bond reserves, 5) contributions to the Light Operations Facility replacement fund, and; 6) resumed contributions to the City's Morse Creek Hydroelectric Project. Task Three Capital Improvements Financing Strategy: The objective of the capital improvements financing strategy is to determine the optimal mix of available resources from rate revenues, connection fees, and debt financing to ensure financial health of the City and to smooth the impacts on retail rates from capital funding needs for current and future rate payers. The analysis shall consider depreciation and compare the City's debt ratio for the electric utility to industry benchmarks and provide recommendations on future policies related to debt service and the cash financing of capital improvements. January 25, 2010 N \PWKSILIGHTIPOWM\Cost of Service Studies12010 Electric Rate Study12010 Retail TRM Study RFP.doc Page 3 of 9 City of Port Angeles Public Works Utilities Department Request for Proposals Retail TRM Study Task Four Retail Rate Design Options: This task includes evaluating the City's existing retail uniform and time -of -use rates to reflect the impacts of wholesale TRM power costs. The Consultant shall develop at least three retail rate design options (e.g., demand response, rates that un- bundle distribution and commodity costs, rates that mirror the BPA wholesale TRM design, inverted block rates, etc.) for each rate class. The rate design options will be developed to be consistent with the City's cash reserve needs and capital improvement financing strategy, and generate sufficient revenue to meet the projected requirements. Additional elements of Task Four include: a. Wholesale generation and transmission rates and costs shall be based on the BPA's TRM, including customer charge, Toad shaping charges and credits, and NCP distribution system demand charges. b. The Consultant's development of retail rate design options shall include a Demand Response (DR) rate for each rate class, which includes an evaluation of the wholesale TRM NCP demand costs and potential retail customer incentives. c. Each retail rate option will evaluate the relative pros and cons of moving to the proposed rate design, and to what extent the rate design encourages energy efficiency. Each rate design option shall evaluate revenue risk and identify the percentage of revenue that comes from the fixed versus the variable rate components compared to BPA's TRM wholesale fixed and variable costs. The Consultant's retail rate design options and recommendations will be summarized for consideration by the City. d. Bill comparisons will be generated describing the number of and degree to which different customers are impacted by changes in the current rate designs. The Consultant will prepare a comparison of the impact of each rate design option (including the existing rate designs) on a typical monthly bill for each customer class. January 25, 2010 Page 4 of 9 N.IPWKSU.IGHTIPOWM\Cost of Service Studles12010 Electric Rate Study<2010 Retail TRM Study RFP.doc City of Port Angeles Public Works Utilities Department Request for Proposals Retail TRM Study Task Five Meetings /Presentations: The Consultant shall prepare for and facilitate meetings with staff, senior management, the City's Utility Advisory Committee, and City Council to review BPA wholesale TRM power cost allocation alternatives and retail rate design options. Teleconferencing and video- teleconferencing will be used instead of personal travel. Video teleconferencing shall include use of the City- provided epopcentral.com service at no cost to the Consultant, and the Consultant will be required to have a webcam and broadband Internet connection. The City recommended webcam is a Logitech QuickCam Pro 9000 or equivalent. The Consultant shall participate in two video teleconference calls to share draft results with senior management and two in- person presentations on the study findings to the City's Utility Advisory Committee and to City Council. The Consultant shall be reimbursed for any additional City required travel. Following these reviews, the Consultant will revise the study, as 'appropriate, and prepare a final report. Additional elements of Task Five include: a. Two (2) staff review teleconferences will be scheduled to discuss the preliminary results and incorporate changes /edits. One meeting will discuss the results of the data collection and assessment including updates and revisions to a COSA model. The second meeting will review the proposed BPA wholesale TRM power cost allocation alternatives, retail rate design options, evaluation of cash reserve needs, and the financing strategy for capital improvements. b. Up to two (2) video teleconferences to discuss and present the alternatives, options, and recommendations with senior management. c. Up to two (2) in- person presentations with the Utility Advisory Committee and City Council to present the alternatives and options and obtain policy maker's feedback. January 25, 2010 Page 5 of 9 N:IPWKSILIGHTIPOWM1Cost of Service Studiesl2010 Electric Rate Study12010 Retail TRM Study RFP doc City of Port Angeles Public Works Utilities Department Request for Proposals Retail TRM Study Task Seven Documentation: The Consultant shall prepare a draft report for the study using Microsoft Word. The draft report shall be based on a Microsoft Excel spreadsheet model that shall also be submitted to the City electronically for review and comment. The Consultant shall prepare its draft presentation using Microsoft PowerPoint, which shall also be submitted to the City electronically. The Consultant shall provide a total of three (3) bound copies of the final report, along with an Adobe Acrobat portable document format (pdf) copy of the report, and an electronic copy of the final Microsoft Word, Excel, and any PowerPoint files used during the study. D. Anticipated Milestones Schedule i[estons RFP issue date Consultant registration, questions, requests for information Consultant proposal submittal deadline City proposal review Negotiation of a_ greement including Exhibits A -C Utility Advisory Committee Consideration City Council Contract Awarded City acceptance of agreement and notice to proceed Consultant submits draft spreadsheet models and report to City Consultant submits draft presentation to City Consultant presentation to senior management Consultant presentation to Utility Advisory Committee__ Consultant presentation to City Council Consultant delivers final report and electronic files E. Proposal Evaluation January 25, 2010 N :IPWKSIUGHTIPOWM\Cost of Service Studies12010 Electric Rate Study\2010 Retail TRM Study RFP doc January 25, 2010 February 19, 2010 March 5, 2010 March 19, 2010 April 7, 2010 April 13, 2010 April 20, 2010 April 21, 2010 June 25, 2010 July 2, 2010 July 23, 2010 August 10, 2010 September 7, 2010 October 8, 2010 Consultant selection will be based on the evaluation of proposals unless it is deemed necessary by the City to conduct interviews. The Consultant determined best qualified to perform the studies will be recommended to the City Council for contract award, Page 6 of 9 City of Port Angeles Public Works Utilities Department Request for Proposals Retail TRM Study subject to successful negotiation of the professional services agreement including its Exhibits (A -Scope Of Work, B- Budget For Each Task, and C- Consultant Labor Costs And Non Salary Reimbursable Costs). F. Proposal Submittal The proposal shall contain the following information in the order shown below: 1. Letter of Interest and Introduction Please describe your interest in the anticipated and optional scope of work. 2. Qualifications and Prior Performance List the experience for the firm's key staff proposed for the anticipated scope of work. Describe your firm's understanding of the BPA TRM and the issues it creates for retail distribution utilities. Provide detailed information, including references, on any other similar studies that the firm has been involved in during the last 3 -5 years, especially those considered to be very similar to the scope of work delineated above. An example of any prior studies can be provided as Appendix A to the Consultant's response. The City of Port Angeles is an Equal Opportunity Employer. The City encourages Women and Minority consultants to apply and Women and Minority sub consultants to be used. 3. Proposed Staff List the experience and number of years with the firm for the key staff members. Also include the experience of any proposed sub consultant staff. Local experience and prior experience working with the City is considered desirable. What experience has the team had together on other similar studies? Resumes may be included as Appendix B to the Consultant's response. 4. Demonstrate Your Understanding of the Citv's Needs List and briefly describe what you think are important issues and what your approach would be for successful completion of the study. What changes should the City consider to the anticipated scope of work, especially in any areas that may impact the revenue risk for its electric utility? What BPA wholesale TRM power cost allocation alternatives and retail rate design options should the City consider? How can BPA wholesale TRM power cost allocation and rate design effect economic development? January 25, 2010 N•\PWKSU_IGHTIPOWM1Cost or Service Studies12010 Electric Rate Study12010 Retail TRM Study RFP.doc Page 7 of 9 City of Port Angeles Public Works Utilities Department Request for Proposals Retail TRM Study Will you utilize the COSA model provided by the City or provide your own model? Include a discussion of milestones that may impact the timely completion of the study. Also indicate any concerns you may have with the City's standard professional services agreement. Do you need any other City records and information beyond what's currently available from the FTP website to complete the anticipated scope of work? 5. Staff Availability Demonstrate your ability to provide the proposed staff for the study and the ability to perform the anticipated scope of work in a timely manner after City Notice to Proceed. 6. Proiect Management Who will be the project manager? What qualifications and experience does the project manager have with similar studies? To what extent could your travel expenses affect the City's cost? Describe the project management approach to be used, including how costs will be managed and controlled. 7. Proposal Format Please provide the above information in an organized fashion in the order listed. The total length of the proposal shall not exceed five double -sided or ten (10) single -sided letter sized pages. Graphics shall be kept to a minimum. Appendices for a work sample and resumes will not be counted in the page totals. G. Proposal Deadline A total of five printed and bound copies and one Adobe Acrobat® portable document format (pdf) copy of the Consultant's proposal and appendices shall be delivered by 5:00 P.M. Pacific Time, March 5, 2010 to: Director of Public Works Utilities City of Port Angeles 321 East Fifth Street P.O. Box 1150 Port Angeles, WA 98362 January 25, 2010 N:IPWKSIUGHTIPOWMICost of Service Studies12010 Electric Rate Study12010 Retell TRM Study RFP.doc Page 8 of 9 City of Port Angeles Public Works Utilities Department Request for Proposals Retail TRM Study Proposals should be marked "Retail TRM Study City of Port Angeles Proposals shall not be submitted via facsimile or electronic mail. Consultants wishing to register to receive all official City communications in reference to this RFP, or wishing to submit questions or requests for additional information, may contact Phil Lusk, Power Resources Manager, via phone (360) 417 -4703 or e-mail to plusk @cityofpa.us before February 19, 2010. 4,0-J2-„ ‘244 .JAN-4J "1 2-S, 2 -c10 Glenn A. Cutler, P.E. Date Director of Public Works Utilities January 25, 2010 N:WWKSILIGHTIPOWM\Cost of Service Studles12010 Electric Rate Study12010 Retail TRM Study RFP doc Page 9 of 9 P W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: April 13, 2010 To: Utility Advisory Committee From: Philip Lusk, Power Resources Manager Subject: Simple Steps, Smart Savings Promotion Services Agreement Summary: The City has been offered a new Agreement to deliver energy efficient compact fluorescent lamps to its electric utility customers. In addition to compact fluorescent lamps, the Agreement includes specialty light bulbs and showerheads delivered through retail markdown, as well as other possible mechanisms such as builder channel promotions and direct installation in homes. Under the retail markdown component, all City expenses would be eligible for reimbursement under the Bonneville Power Administration's energy conservation program. Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to make minor modifications to the Agreement if necessary, for the Mayor to sign the Agreement and also to authorize the Director of Public Works and Utilities to sign any amendments to the Simple Steps, Smart Savings Promotion Services Agreement. Background /Analysis: Since 2007, the City has participated in the "Change a Light, Change the World" compact fluorescent lamp (CFL) markdown promotion. Under this effort, the City made payments that were used to markdown CFL prices at local retailers. This type of market transformation proved itself to be highly effective in promoting energy efficiency. For example, more than one -third of the Bonneville Power Administration's (BPA's) fiscal year 2009 energy savings were achieved by encouraging the use of CFLs purchased under this program. BPA recently launched its new follow -on program "Simple Steps, Smart Savings This effort focuses on increasing the use of CFLs, and now includes specialty light bulbs and showerheads delivered through retail markdown, as well as other possible mechanisms such as builder channel promotions and direct installation in homes. The new Agreement is anticipated to result in total City payment up to $50,000 through January 31, 2012. Under the retail markdown component, all City expenses are eligible for reimbursement under the BPA's energy conservation program. The City Attorney reviewed the proposed amendment (attached). Staff requests that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the City Manager to make minor modifications to the Agreement if necessary, for the Mayor to sign the Agreement and also to authorize the Director of Public Works and Utilities to sign any amendments to the Simple Steps, Smart Savings Promotion Services Agreement. N \UAC \Final \Simple Steps, Smart Savings Promotion Agreement doc Simple Steps, Smart Savings. Promotion Services Agreement This Promotion Services Agreement "Agreement is entered into as the day of 2010 between the City of Port Angeles, 321 East 5 Street, Port Angeles, Washington 98362 and Fluid Market Strategies, Inc. 517 SW 4 Avenue Suite 400, Portland, Oregon 97204, hereinafter called "Contractor The City of Port Angeles and Contractor may also hereinafter be referred to individually as, "Party or collectively as, "Parties This Agreement shall remain in force only for the duration of the period specified below, unless extended in accordance with this Agreement (Term). All obligations incurred under this Agreement shall survive the Term until satisfied. Project Name Contract Period Client Name Client Representative Telephone Number Address City, State, Zip Exhibit A- Schedule of Rates Exhibit B- Project Orders Incorporated Documents, if any Simple Steps, Smart Savings. April 1, 2010- January 31, 2012 City of Port Angeles Bob Kajfasz number 321 East 5 Street Port Angeles, Washington 98362 Contractor Name Fluid Market Strategies, Inc. Telephone Number 503 808 -9003 Address 517 SW 4 Ave Suite 400 City, State, Zip Portland, Or. 97204 Taxpayer Identification Number 1 20- 3767308 This Agreement covers the services specified in Exhibit B- Project Orders, which is hereby included and made a part of this Agreement. The Contractor agrees to perform the services specified in Exhibit B in the manner and within the time specified therein. Except as expressly The following Exhibits to this Agreement, if any, are by this reference incorporated into and made part of this agreement by the following attachments: 1. Scope of Services This agreement sets forth the terms and conditions which shall govern services that from time to time, during the Term hereof, may be requested by the City of Port Angeles and agreed to by Contractor (the "Services However, execution of this Agreement does not obligate either Party to request or perform any specific services. The City of Port Angeles makes no representation to Contractor of the amount of Services, if any, which may be requested from Contractor under this Agreement. 1 provided elsewhere in the Agreement, any and all modifications or revisions to Exhibit B (including, but not necessarily limited to, additions, deletions, and extensions) must be in writing and signed by both parties. The scope of services offered by Fluid enable the City of Port Angeles to customize promotional delivery mechanisms for the Simple Steps, Smart Savings Promotion in their service territory. These promotions include retail markdown promotions, builder channel promotions, direct mail fulfillment, online fulfillment, bulk purchase, and direct installation opportunities of the following products: Twist CFLs: Regular Twists, Daylight Twists, A -Lamps Specialty CFLs: Reflectors, Globes, Candelabras, Torpedoes, Outdoor Lighting Fixtures: Indoor Hard -Wired Fixtures Showerheads: 2.0 GPM or Tess Participation in any or all of the delivery mechanisms is determined by the City of Port Angeles and agreed upon with individual purchase orders (Exhibit B). Each purchase orders will define the process and fees associated with the approved delivery mechanisms in which the City of Port Angeles agrees to by signing the agreement and individual purchase orders. 2. Term of Agreement The effective date of this Agreement (Term) is April 1, 2010 and continues in effect until the 31st of January, 2012, unless the Parties agree in writing to extend the Term, or unless this Agreement is earlier terminated in accordance with the Early Termination provisions below. 3. Compensation and Payment The Parties shall specify in each Project Orders executed pursuant to this Agreement the method of compensation and manner of payment for Services provided pursuant to this Agreement the method of compensation and manner of payment for Services provided pursuant to that specific Project Orders. Compensation shall be determined on the basis of the administrative fee and unit prices. Such rates or prices shall be specified in each Project Orders along with any not -to- exceed amount applicable to the Services. Payment for services pursuant to a Project Orders shall be made as follows: a) Upon completion of the Services described herein, Contractor shall submit a monthly invoice with attached expenses to the City of Port Angeles and to the attention of: City of Port Angeles Attn: Bob Kajfasz 321 East 5 Street Port Angeles, Washington 98362 2 The invoice must be itemized to show incentives processed and related administrative fees charged. The City of Port Angeles will pay the undisputed portion of the invoice within thirty (30) days of the receipt. 4. Documentation The Contractor shall maintain records documenting all fees and expenses in excess of $5.00, incurred either by Contractor or any subcontractor of Contractor in the performance of this Agreement. During regular business hours and upon reasonable notice, the City of Port Angeles, or its designee, shall have the right to inspect and audit all records required to be maintained under this Agreement. 5. Insurance The Contractor, and any subcontractor engaged by Contractor in its performance of this Agreement, shall carry and maintain fully paid commercial general liability, automobile liability and workers compensation insurance. All policies shall be written only by insurers admitted to do business in Washington and having a rating of at least "A" and a financial rating of at least "VIII" on the most current edition of Best's Key Rating Guide or comparable rating by another generally recognized rating agency. All policies shall be endorsed to (a) specify the City of Port Angeles as an additional insured to the full extent of its right to indemnification under this Agreement, and (b) provide that the City of Port Angeles shall be given no less than thirty (30) days advance written notice of cancellation or material change in coverage. Certificates of insurance shall be sent to the City of Port Angeles before work begins. Contractor shall obtain the following minimum insurance coverage "Required Insurance prior to the Effective Date, at its expense, and keep the Required Insurances in effect during the Term (except with respect to Professional Liability Insurance, when they shall be kept in effect for a period of the Term plus two years); Workers' Compensation Insurance in compliance with statutory requirements; Commercial General Liability Insurance (including contractual liability), on any occurrence basis, with not less than $1,000,000 per occurrence for bodily injury and property damage liability, with an annual aggregate limit of $2,000,000; Professional Liability Insurance, including errors and omissions coverage, with a per occurrence and aggregate limit of not less than $1,000,000, to protect against all loss suffered by the City of Port Angeles or third parties, including financial and consequential loss, caused by error, omission, or negligent acts related to provision of the Services; Commercial Automobile Liability Insurance, with a combined single limit, or the equivalent of not less than $1,000,000 per occurrence, for bodily injury and property damage with respect to Contractors vehicles, whether owned, hired, or non owned, assigned to, or used by Contractor in connection with the Services; and 3 The Required Insurances shall be with insurance companies admitted to do business in the state of Washington and rated "A" or better by Bests Insurance Rating. Contractor shall furnish the City of Port Angeles with certificates of insurance for each of the Required Insurances. The Commercial General Liability, Commercial Automobile Liability, and Umbrella Coverage shall (i) name the City of Port Angeles, its directors, offices, and employees, as additional insured, (ii) provide that it is primary insurance with respect to the interests of the City of Port Angeles and that any insurance maintained by the City of Port Angeles is excess and not contributory, (iii) include a cross liability and severability of interest clause, and (iv) shall include coverage for Hazardous Substances. 6. Safety Contractor will be solely and completely responsible for the training of its employees, agents and contractors "Personnel and the conditions of the work site, including safety of all persons and property during the performance of services. 7. Governing Law, Venue and Attorney's Fees The laws of the State of Washington shall govern this agreement. Exclusive venue in case of legal suit or action is instituted to enforce compliance with any terms, covenants, or conditions of this agreement shall lie in Clallam County, Washington. Both parties agree to submit to the personal jurisdiction of any court of competent subject matter jurisdiction in Clallam County, Washington. In the event of legal suit or action, including any appeals there from, brought by either party against the other to enforce any of the obligations hereunder or arising out of any dispute concerning the terms and conditions hereby created, the losing party shall reimburse the prevailing party for its reasonable attorney fees and costs incurred in the suit or action including investigation costs, expert witness fees and costs of depositions. If any part of this agreement is found to be in conflict with applicable laws, such parts shall be inoperative, null and void so far as it is in conflict with said laws, but the remainder of this agreement shall be in full force and effect. 8. Good Faith Negotiation /Mediation Prior to filing suit or initiating arbitration on any dispute, which arises between the Parties under or relating to this Agreement, the Parties agree to attempt to resolve the dispute through good faith negotiation. If the dispute cannot be resolved through good faith negotiation, the Parties agree to hire an independent, trained and mutually acceptable mediator to mediate the dispute. The cost of the mediator will be shared equally by the Parties. The mediation shall be conducted at the City of Port Angeles, Washington. 9. Suspension of Work by Utility The City of Port Angeles may suspend, in writing, all or a portion of Contractors services under Exhibit B in the event unforeseen circumstances make normal progress in the performance of the Contractors work inadvisable in the opinion of the City of Port Angeles. Contractor may request that the work be suspended by notifying the City of Port Angeles, in writing, of circumstances which are interfering with normal progress of the work. The time for completion of the remaining work shall be extended by the number of days the work is suspended by the City of Port Angeles, unless both parties can mutually agree upon a new completion time. In the event the period of suspension exceeds 90 days, the terms of this Agreement shall be subject to 4 renegotiation; provided, however, that if such renegotiation of a mutually acceptable replacement contract has not occurred within 180 days after suspension (Renegotiation Period), then either party may terminate this Agreement in accordance with the early termination provision hereof, provided further, that the failure to renegotiate this Agreement within the Renegotiation Period shall not be construed as a breach of the Agreement by either Party. 10. Suspension of Work by Contractor Contractor may suspend, in writing, all or any portion of its services under this Agreement, but only if and to the extent the City of Port Angeles, fails to make timely payment in accordance with the terms of this Agreement. The City of Port Angeles, shall have a period of sixty (60) days from the date on which payment was due (Cure Period) within which to satisfy any arrearages in payment. Contractor shall resume performance of any suspended services upon receipt of payment of any arrearages from the City of Port Angeles, within the Cure Period. 11. Early Termination Either party shall have the right, but not the obligation, to terminate this Agreement, on sixty (60) days written notice, in the event the other party's service or performance fails to conform to the requirements of this Agreement. Contractor shall have the right, but not the obligation, to terminate this Agreement, effective upon expiration of the Cure Period, in the event the City of Port Angeles, fails to pay any arrearage within the Cure Period. Either party shall have the right but not the obligation, to terminate this Agreement in the event work is suspended under this Agreement for a period in excess of 90 days and no renegotiation of this Agreement has occurred within the Renegotiation Period. Any right of early termination shall be in addition to, not in replacement of, any and all rights and remedies a party may have for breach of the Agreement by the other Party. 12. Subcontractors Contractor may contract with one or more qualified subcontractors (Subcontractor Agreement) to perform a portion of the services specified in the Scope of Work; provided, however, that Contractor shall remain solely responsible to the City of Port Angeles, for all performance under this Agreement and, provided further, that the City of Port Angeles, shall have no responsibility for the review or supervision of the work of any subcontractor or for any payment to any subcontractor. All subcontractor agreements shall require the subcontractor to comply with the invoicing, insurance, suspension of work, audit, documentation, confidentiality and return of records obligations imposed on Contractor by this Agreement. No subcontractor shall be deemed to be a third party beneficiary of this Agreement or to have any other rights under this Agreement. 13. Relationship of Parties Contractor is an independent contractor, and this Agreement is not intended to form a partnership or joint venture between the Parties. Individuals employed by Contractor are not employees or agents of the City of Port Angeles, nor are Contractors subcontractors employees or agents of the City of Port Angeles. Each Party is solely responsible for payment of compensation to its employees and personnel and will withhold and pay to the appropriate authorities all taxes, contributions, and assessments imposed or required under all laws with 5 respect to payment. The Contractor will require these terms in all agreements with subcontractors for work undertaken for this Agreement. 14. Return of Records On termination of the contract, the Contractor will consult with the project manager at the City of Port Angeles, about whether pertinent records should be returned. If requested, the Contractor will deliver to the City of Port Angeles, all records, reports, data memoranda, notes models or publications whether electronic or hard -copy, equipment and supplies of any nature, and receipts for any and all billing made to the City of Port Angeles, that are in possession or under control of the Contractor, prepared or acquired in the course of the contract with the City of Port Angeles. Further, the Contractor agrees not to keep or withhold such information or data, or reproductions of such information or data that relate to the business activities of the City of Port Angeles, or to parties in a contract relationship with the City of Port Angeles, Alternatively, if the return of records and equipment or supplies is not requested, Contractor agrees to retain these items for three years after the completion of this contract and to notify the City of Port Angeles, project manager at the end of that time before disposing of them. Contractor shall include a provision substantially identical to the foregoing in all its Subcontractor Agreements. 15. Indemnification The Contractor will indemnify, hold harmless, and defend the City of Port Angeles, and, its officers, employees, agents, representatives, and affiliates (each an Indemnified Party) against any and all losses, liabilities, damages, claims, suits, proceedings, judgments, assessments, costs, and expenses (including interest and penalties), and including reasonable attorney fees and expenses, incurred by the City of Port Angeles, and arising from (i) negligent or wrongful acts or omissions of the Contractor or of its officers, employees, agents, representatives, subcontractors, or affiliates of this Agreement, or (iii) any finding, judgment or other determination or settlement whereby the Contractor is deemed or considered to be the employer of the other Party. The Parties specifically agree that the provisions of this Section also apply to any claim of injury or damage to the persons or property of the Contractors employees. Contractor acknowledges and agrees that, as to such claims, the Contractor, with respect to the City of Port Angeles, hereby waives any right of immunity which Contractor may have under industrial insurance (Title 51 RCW as amended and under any substitute or replacement statue). This waiver was specifically negotiated by the Parties, is solely for the benefit of the Parties and their successors and assigns, and is not intended as a waiver of Contractors right of immunity under said industrial insurance for any other purpose. 16. Force Majeure Notwithstanding anything contained in this Agreement to the contrary, neither Party will be deemed liable or to be in default for any delay or failure in performance under this Agreement deemed to result from acts of God, acts of civil and military authority, acts of public enemy, war, or any like cause beyond the Parties reasonable control. 17. Severability Should any provision of this Agreement be held by a tribunal of competent jurisdiction to be invalid or unenforceable, the_temainder of the Agreement will remain in full force and effect. 6 18. Notices Notices required to be made under this Agreement shall be served personally, by facsimile transmission, by overnight courier to the address shown above, or by email, with a duplicate sent by certified mail, return receipt requested. Notice shall be effective only upon receipt by the party being served. Effective Date and Term This Agreement, including its exhibits, shall be effective immediately upon execution by both parties. the City of Port Angeles Fluid Market Strategies Signature Signature Name Name Date Date 7 The Schedule of Rates includes all Bonneville Power Administration promotional components. These rates are to be used as a guide for determining promotional involvement and can be altered through agreed upon terms. These rates do not require that the City of Port Angeles will be participating in these promotions they are for reference purposes only. The signed project orders will include the agreed upon rates and unit goals. Option 1: City of Port Angeles Run Direct Install. Fluid will provide products (bulk purchase) for the City of Port Angeles staff installation and /or the City of Port Angeles selected installation team. The City of Port Angeles has the option to utilize marketing materials and trainings. See bulk purchase pricing. City of Port Angeles Run Direct Install Pricing: Product Admin Cost Fee Product Description Direct Install CFL Twist 13 -15 Watt Direct Install CFL Twist 18 -20 Watt Direct Install CFL Twist 23 -26 Watt Direct Install Specialty CFL Reflector Direct Install Specialty CFL Globe Direct Install Showerhead $1.19 $1.39 $1.65 $2.88 $2.88 $3.50 Exhibit A Schedule of Rates $0.22 $0.22 $0 22 $0.22 $0.22 $0 22 Subtotal $1.41 $1.61 $1.87 $3.10 $3.10 $3.72 Option 2: City of Port Angeles Run Direct Install. In addition to providing products (Bulk Purchase), Fluid will provide installer training and reporting materials. If third parties are chosen by the City of Port Angeles for performing direct installations, Fluid will provide select on -site verification. City of Port Angeles Run Direct Install with Training and Verification Pricing: Product Admin Addt'l City of Port Product Description Cost Fee Angeles Cost Installation Direct Install CFL Twist 13 -15 Watt $1 19 $0.30 $2.25 Direct Install CFL Twist 18 -20 Watt $1.39 $0.30 $2.25 Direct Install CFL Twist 23 -26 Watt $1 65 $0.30 $1.95 Direct Install Specialty CFL Reflector $2.88 $0.30 $2.25 Direct Install Specialty CFL Globe $2 88 $0.30 $2.25 Direct Install Showerhead $3.50 $0 30 $8 00 Shipping TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed Total $3.74 $3.94 $3.90 $5.43 $5.43 $11.80 1 8 Option 3: Fluid Run Direct Install. Fluid will provide the products and a trained installation team which may include Fluid staff; industry partners such as contractors and /or retailers with in -home services. Fluid Run Direct Install Pricing: Product Description Direct Install CFL Twist 13 -15 Watt Direct Install CFL Twist 18 -20 Watt Direct Install CFL Twist 23 -26 Watt Direct Install Specialty CFL Reflector Direct Install Specialty CFL Globe Direct Install Showerhead Direct Install teams will perform the installation, data collection, a home snapshot and report on activities .When third parties are utilized for performing direct installs Fluid will provide select on- site verification. The home snapshot will include: Socket Count Appliance Information Heating Equipment Information Bulk Purchase Capture competitive pricing through our CFL and Showerhead manufacturing partnerships to purchase product in bulk for events, giveaways, etc. Bulk Purchase: Product Description CFL Twist 13 -15 Watt CFL Twist 18 -20 Watt CFL Twist 23 -26 Watt Specialty CFL Reflector Specialty CFL Globe Showerhead Product Admin Cost Fee $1.19 1 $0.35 $1.39 1 $0.35 $1.65 1 $0.35 $2.88 1 $0.35 $2.88 $0.35 $3.50 $0.35 $1.19 $0.20 $1.39 $0.20 $1.65 $0.20 $2.88 $0.20 $2.88 $0.20 $3.50 $0.20 Addt'I City of Port Angeles Cost Installation $2.25 $2.25 $2.00 $2.25 $2.25 $8.00 $1.39 $1.59 $1.85 $3.08 $3.08 $3.70 Total $3.79 $3.99 $4.00 $5.48 $5.48 $11.85 Product Admin Cost Fee Subtotal Shipping handling TBD, if needed quoted and passed through TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed Direct Mail The promotion will deliver CFLs (check implementation manual for limit) and showerheads to the City of Port Angeles customers with energy tips and installations instructions. 9 Direct Mail: Product Description Direct Mail CFL Twist 13 -15 Watt Direct Mail CFL Twist 18 -20 Watt Direct Mail CFL Twist 23 -26 Watt Direct Mail Specialty CFL Reflector Direct Mail Specialty CFL Globe Direct Mail Showerhead Online Offers This offer provides a vehicle for utilities looking for an online solution. With this, your customers will have the opportunity to purchase CFLs and Showerheads online at a dedicated website. The City of Port Angeles landing pages on this website can be customized with product selection and the City of Port Angeles look feel. Online Offers No Cost to Consumer: Product Description Online CFL Twist 13 -15 Watt Online CFL Twist 18 -20 Watt Online CFL Twist 23 -26 Watt Online Specialty CFL Reflector Online Specialty CFL Globe Online Showerhead Online Offers Consumer Purchase: Product Description Online CFL Twist 13 -15 Watt Online CFL Twist 18 -20 Watt Online CFL Twist 23 -26 Watt Online Specialty CFL Reflector Online Specialty CFL Globe Online Showerhead Product Admin Cost Fee Subtotal Shipping handling $1.19 $0.25 $1.39 $0.25 $1.65 $0.25 $2.88 $0.25 $2.88 $0.25 $3.50 $0.25 Product Admin Cost Fee Handling $1.19 $0.25 $1.44 $1.39 $0.25 $1.64 $1.65 $0.25 $1.90 $2 88 $0 25 53.13 $2.88 $0.25 53.13 $3.50 $0.25 $3.75 Product Cost $1.19 $1.39 $1 65 $2.88 $2.88 $3.50 Admin Fee Subtotal Shipping Handling $0.25 $0.25 $0 25 $0 25 $0.25 $0.25 $1.44 $1.64 $1.90 $3.13 $3.13 $3.75 Subtotal $1.44 $1.64 $1.90 53.13 $3.13 $3.75 TBD, if needed quoted and passed through TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed Shipping TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed TBD, if needed Payment Processing TBD TBD TBD TBD TBD TBD I 10 Retail Builder Channel Locations The Residential Products Promotion will be partnering with retailers and builder channels to provide discounted pricing on showerheads, twister CFLs, specialty CFLs, and hard wired fixture products. Retail Builder Channel Pricing: Product Description Product Cost Admin Fee Total CFL Twist Retail $0.50 I $0.25 1 $0.75 CFL Specialty Retail I $2.00 I $0.25 1 $2.25 Fixtures Indoor Retail I $8.00 $0.25 $8.25 Showerheads 2.0 GPM or Tess- Retail 1 $7.00 $0.25 1 $7.25 11 Date: To: From: Subject: JORT NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo April 13, 2010 Utility Advisory Committee Tom McCabe, Solid Waste Superintendent 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's event is Sunday, April 25, 2010 from 9:00 a.m. to 3:00 p.m. The minimum donation to the Port Angeles Food Bank is $10.00 per vehicle. Recommendation: For information only, no action requested. Background /Analysis: The Solid Waste Division sponsors an annual Benefit Dump Day for all Clallam County residents. 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 Benefit Dump Day will be Sunday, April 25, 2010. The hours and load restrictions will be the same as in previous years. All of the costs associated with this event are built into the current tipping fees. Separating materials for recycling is promoted in all the advertising. In 2009, 28% of the materials collected were recycled. A summary of the prior events is provided below and on the following page. Year Vehicle Total Tons Trips Received 2007 I 713 I 222.89 I 2008 I 529 I 163.30 2009 I 550 I 179.30 N \UAC \Final\Beneft Dump Day doc Transfer Station Tons 141.48 93.78 129.36 Minimum donation increased from $5 to $10 in 2008 Recycling Tons (metal, tires, batteries yard waste) 81.42 69.22 49.95 Cash Contribution $4,304 $5,619* $5,480 Benefit Dump Day April 13, 2010 Page 2 Demographic of Users Vehicles Location 2007 2008 City of P.A. 286 251 Sequim 20 24 Forks 1 East County 248 176 West County L 158 78 Totals 713 529 Refrigerators (counted at scales) 2007: 84 units 2008: 186 units 2009: 95 units Tires (counted at scales) 2007: 415 tires 2008: 718 tires 2009: 217 tires Batteries: 2007: not available 2008: 66 batteries 2009: 119 batteries 2009 268 27 172 83 550 Solid Waste Tons 2007 2008 2009 83.98 78.47 89.22 6.49 6.70 10.16 0.74 82.76 56.85 52.10 48.92 21.28 27.82 222.89 163.30 179.30 pORTANGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: April 13, 2010 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Washington State Cash for Appliances Program Summary: The Washington State Department of Commerce Energy Policy Division is administering $5.6 million in American Recovery and Reinvestment Act rebate funds for the Washington State Cash for Appliances Program. Rebates will be paid to Washington residential consumers who purchase eligible ENERGY STAR® refrigerators and clothes washers and recycle their resource wasting appliance. These State rebates may be combined with existing City of Port Angeles electric utility rebates. Recommendation: For information only, no action requested. Background /Analysis: The Washington State Department of Commerce Energy Policy Division is administering $5.6 million in American Recovery and Reinvestment Act (ARRA) rebate funds for the Washington State Cash for Appliances Program. Rebates became available on March 15, 2010 and are offered on a first -come, first served basis until funds run out. Rebates may be combined with existing City of Port Angeles electric utility rebates. If a customer purchases a qualified clothes washer they could receive a $100 rebate from the State for buying an ultra high efficiency ENERGY STAR® unit with a Modified Energy Factor (MEF) of 2.46 and above and Water Factor (WF) of 4.0 and below. This appliance would also qualify for a $50 rebate from the City. If a customer buys a qualifying refrigerator and recycles their old one, City customers can get $75 from the State and a $125 rebate from the City. However, rebate terms, conditions and documentation requirements are different for the two programs, and prospective customers should read all rebate forms for details. In addition to saving on new appliances, customers will save energy on their electric bills with new ENERGY STAR appliances. Older refrigerators can use up to four times more energy than newer, more efficient models. The State estimates unplugging an old refrigerator can save up to $140 per year, and efficient clothes washers can save up to $85 per year in utility charges. The State's program is expected to replace 15,000 refrigerators and 45,000 clothes washers, saving Washingtonians around $1,000,000 in annual energy costs, saving 355 million gallons of water and preventing 8,042 tons of carbon dioxide (CO2) annually. Additional information available on City website httn:// www .citvota.us /nwConserv.htm #CAnn N \UAC\Final \Washington Cash for Apphances Program doc P;RTANG;ELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: April 13, 2010 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Conservation Loan Guaranty Agreement Termination Summary: Since 1998, the City has sponsored a loan guaranty program in cooperation with Federal Savings and Loan Association of Port Angeles to assist customers in the financing of conservation improvements. On March 25, 2010 staff received a letter from that institution providing a notice of termination of that agreement, effective May 24, 2010. Recommendation: For information only, no action requested. Background /Analysis: The City and First Federal Savings and Loan Association of Port Angeles (First Federal) entered into an agreement in 1998 to assist residential customers in the financing of energy and water conservation improvements. From 1998 to 2007, a total of 76 City residential customers financed $350,000 in conservation projects under the agreement. In 2008, the City expanded overall customer participation in the conservation lending program to include the City's commercial customers. As part of the expanded agreement, the City provides First Federal a guaranty to pay the principal balance of any loan defaults in exchange for a more favorable interest rate, which varies with the prime interest rate that is currently 2.75 There have been no loan defaults requiring City payment under the agreement since its inception. On March 25, 2010, staff received a letter from First Federal providing a notice of termination of that agreement, effective May 24, 2010. They wrote that they would like to continue to work with the City to assist its utility customers with their conservation efforts. They stated that a new loan product is being developed and is currently being reviewed by their attorney. Once that document has been finalized, it will be sent to the City of its approval. Depending on when the new loan agreement is offered by First Federal and accepted by City Council there may be a discontinuation of the loan service to City customers. Attachment: First Federal Conservation Loan Guaranty Termination letter N \UAC\Final \Conservation Loan Guaranty Agreement Termination doc M First Federal Making a difference. Together. 800.800.1577 ourfirstfed.com March 25, 2010 Director of Public Works and Utilities at City Hall PO Box 1150 Port Angeles, WA 98362 Dear Director of Public Works and Utilities, Sincerely, Levon Mathews President CEO vAR 2' 211 City of Port Angeles Public Works and Utilities Dept Engineering Services Division Re. Conservation Loan Guaranty Agreement between the City of Port Angeles and First Federal Savings and Loan of Port Angeles, dated February 7, 2008 In accordance with the 60 day written notification requirements of the subject Agreement, First Federal will terminate this Agreement effective May 24, 2010 We will continue to honor the terms of the written agreements through the expiration of this 60 day notification period or until a new contract has been approved and signed by all parties. The termination of the agreement does not alter our obligation for loans that have been previously committed We would like to continue to work with the City of Port Angeles to assist your customers with their energy conservation efforts A new contract which includes a new First Federal loan product is being reviewed by our attorney Once that document has been finalized it will be sent to you for approval. We have appreciated the service and business provided to us by the City of Port Angeles and look forward to continuing our mutually beneficial relationship. p W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: April 13, 2010 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: City Response to GoogleTM Fiber for Communities Request for Information Summary: GoogleTM is planning to build and test ultra -high speed broadband networks in a small number of trial locations across the country. As a first step, GoogleTM put out a Request for Information to identify interested communities and invited responses from local governments. Recommendation: For information only, no action requested. Background /Analysis: GoogleTM is planning to build and test ultra -high speed broadband networks in a small number of trial locations across the country. GoogleTM wants to deliver Internet speeds more than 100 times faster than what most Americans have access to today with 1 gigabit per second, fiber -to- the -home connections. GoogleTM plans to offer service at a competitive price to at least 50,000, and potentially up to 500,000 people. Their goal is to experiment with new ways to help make Internet access better and faster for everyone, as well as to develop new applications for the GoogleTM brand. As a first step, GoogleTM put out a Request for Information (RFI) to identify interested communities and invited responses from local governments. Newspaper reports suggest that more than 1,100 communities responded to the RFI. The City's response (attached) to the RFI included answering a 14 -page questionnaire by March 26, 2010. Below are some specific things that GoogleTM stated they had in mind for their enhanced broadband service: Next generation applications: to see what developers and users can do with ultra high speeds, whether it's creating new bandwidth intensive "killer applications" and services, or other uses we can't yet imagine. New deployment techniaues: to test new ways to build fiber networks; to help inform and support deployments elsewhere, and share key lessons learned with the world. Openness and choice: to operate an "open access" network, giving users the choice of multiple service providers. Attachment: City response GoogleTM Fiber for Communities Request for Information N \UAC \Final \City Response to Google Fiber For Communities RFI doc City of Port Angeles Google Fiber for Communities Request for Information March 26, 2010 City of Port Angeles Response to Google Fiber for Communities Request for Information Required fields 1. GENERAL INFORMATION Name of governing body: City of Port Angeles, WA You can create a name for each response. Name of this response: Google Fiber City List communities included in your response: City of Port Angeles, WA Contact person Name: Dan Di Guilio Title: Mayor Address: PO Box 1150 Port Angeles State: Washington ZIP (5 Digit): 98362 Phone number: 360- 417 4630 Email: ddiguilio @cityofpa.us Contact person has authority to provide these answers as the official position of the responding local government? Yes 2) BACKGROUND INFORMATION ABOUT YOUR COMMUNITY Required fields Population (2008): 19170 Populated area in square miles: 11 City of Port Angeles Response to Google Fiber for Communities Request for Information Please describe how the population is distributed: Fairly evenly across the City. Median household income per annum): 32050 Number of housing units: 8050 Number of single family homes: 5960 Number of multi family homes: 420 Number of apartment complexes: 40 Average number of units per apartment complex: 40 Number of gated communities: 0 Average number of housing units per gated community: 0 Approximate percentage of households in entire community with access to broadband Internet service 100 Approximate percentage of households in entire community that are currently subscribing to broadband Internet service 40 Percentage of plains 70 Percentage other terrain 0 City of Port Angeles Response to Google Fiber for Communities Request for Information Terrain: Overall description of terrain: With an average elevation of 32 feet, the City's terrain is predominantly gently elevating plains before turning into rolling hills that form the base of the Olympic Mountains. Percentage of rolling hills 30 Percentage of mountains 0 Climate: Average annual highest temperature °F): 60 Average annual temperature °F): 50 Average annual lowest temperature °F): 40 Average amount of snowfall per year (inches): 4 Average amount of rainfall per year (inches): 25 Average amount of hurricane or tornado activity in a year (days): 0 City of Port Angeles Response to Google Fiber for Communities Request for Information Local government: Form of local government (city, town, county, etc.): City Local government rule: Select Home rule Limited rule Other Other Source of government decision making (city manager, city council, mayor, etc.): The City operates with a Council/Manager form of government. The City Council, comprising seven elected members, is the legislative authority and is responsible for, among other things, appointing a City Manager as the chief administrator. Utilities: Please list largest utilities and the approximate percentage of the community covered by each provider: Provider name: Coverage Electric: City of Port Angeles 100 Gas: None 0 Water: City of Port Angeles 100 Sewer: City of Port Angeles 100 Cable: Wave Broadband 100 Phone: Qwest 100 Local economy mix (if available): Number of high tech jobs: 350 Number of manufacturing jobs: 1800 Number of education services jobs: 1270 Number of other service sector jobs: 3230 Colleges and universities (List names and average number of students enrolled at each, if available): Peninsula College 9905 average There are also a total of seven business and vocational schools in the local area. City of Port Angeles Response to Google Fiber for Communities Request for Information Major hospitals /health care facilities (List names): Olympic Medical Center Current providers of high speed Internet service (Company; DSL, Cable modem, wireless, fiber, etc.): Qwest DSL Wave Broadband Cable modem Capacity Provisioning Fiber optic backbone Other significant features of your community that could be relevant for this project: As will be explained further in the Request for Information, the City of Port Angeles has the following significant features that are highly relevant for this project: 1. Decade long track record of supporting fiber deployment 2. A one stop -shop, with the City and utility combined in a single package 3. City government is a small organization and can provide a quick turn around on permits and other institutional issues 4. Utility poles are relatively clear and we will work Google to take care of any make -ready work 5. The City will work with Google to find suitable property to place any field terminal equipment and splice housings 6. Our community is a cross section of middle America The basis for any ultra -high speed broadband network project is the fiber -optic system that forms its backbone. To enhance local economic development, the City of Port Angeles began working with the private sector to deploy a fiber -optic network in 2002; that network quickly brought advanced 100 Mb broadband services to the community. Port Angeles is rapidly becoming known as "Fiber City" and, for example, already has many times more fiber -optic cable per square mile many larger cities in the Pacific Northwest. Our City's current outside fiber plant consists of almost 100 miles of privately owned overhead fiber cable. We also have approximately 200,000 feet of privately owned fiber cable in buried conduit, most of which is empty for future use. The City has a strong track record of encouraging and standing behind fiber carriers, cutting the red tape to make it happen and participating as an enthusiastic and proactive customer for City of Port Angeles Response to Google Fiber for Communities Request for Information broadband services. In short, Port Angeles is a City that asks "how can we do it Also, Port Angeles is small enough that Google's funding will be able to create a city -wide demonstration, yet large enough to provide the company with a meaningful pilot project. 3. COLLABORATING ON A GOOGLE FIBER TRIAL In this section, we ask you to share how your community would work with Google to enable us to proceed quickly and effectively. Are you, the local government, willing to appoint an individual to serve as a single point of contact Yes Describe the duties and responsibilities of this individual (1000 characters): We will assign a senior staff member knowledgeable about all city and utility practices, such as securing licenses and coordinating any make -ready work required in the existing aerial and underground utility rights -of -way. This individual will also be responsible for assisting Google to secure, in an expedited manner, any land parcels (e.g., public land or land in the utility right -of -way) needed for this deployment. Due to its size, the City of Port Angeles has a relatively flat organization and most required steps for deploying the project, such as construction permits, can be expedited at the staff level. Financial decisions and policy decisions for items such as a telecommunications master permit or a right -of -way license would need a recommendation from the City's Utility Advisory Committee and the approval of City Council, but that process would only take 10 to 14 days to complete. Describe any current or planned programs in your community to accelerate and expand adoption and use of broadband Internet access (1000 characters): A major area of interest for growth in broadband communications is to support cost effective and timely communications between health -care providers, clinics and the local hospital. This particular requirement focused on providing a means for accessing 1 A single point of contact to coordinate the local government and community's interactions with Google, to obtain as promptly as possible whatever information Google may require, and to resolve any problems that may anse as quickly and effectively as possible Google is interested in working with communities in which it can rapidly install fiber -optic facilities and offer ultra -high speed Internet access services Google respects the legitimate responsibility of local governments to preserve and protect community assets, minimize disruption, ensure the safety of the public, address aesthetic concerns and property values, and obtain reasonable compensation for the use of public assets 7 City of Port Angeles Response to Google Fiber for Communities Request for Information central medical records and supporting a common central billing system. This requirement could also entail providing high -speed interactive conductivity to exchange high- resolution x -rays, exchange real -time diagnostics and desktop videoconferencing among medical practitioners. The delivery of archival resources from existing or future cultural centers and museums would relay the rich heritage of the Olympic Peninsula to the rest of the world. Also, by using interactive education techniques, we could stream lectures and presentations to the public. Gigabit fiber could open up a new world of opportunity for the City of Port Angeles, especially given its somewhat isolated locale. Additional reasons why you believe that Google should select your community for this project (2500 characters): Located between the Strait of Juan de Fuca and the Olympic Mountains, Port Angeles is located in Clallam County on the North Olympic Peninsula of Washington State. It is the county seat and the largest city on the Olympic Peninsula. While Port Angeles is located less than 50 miles to the northwest of Seattle, the region's unique topography requires an arduous three -hour trip to that metropolitan area. Port Angeles has had a long and colorful history. Portions of the City were originally settled by First Nation inhabitants, and one locale, Tse- whit -zen village, was inhabited more than 2,700 years ago. Tse- whit -zen is the largest and most ancient First Nation village ever unearthed in Washington, and one of the region's most extraordinary cultural finds. The Olympic National Park is another local treasure, and when combined with the Olympic National Forest, more than 1.5 million acres are under federal protection. The Park averages around 3.3 million visitations annually. The Elwha Ecosystem Restoration Project is the second largest ecosystem restoration project in the history of the National Park Service after the Everglades. It will consist of removing two dams and their reservoirs from the Elwha River, and the removal of the two dams is expected to begin in 2011. In 2010 and 2011, Port Angeles will purchase and install new advanced metering infrastructure (AMI) electric and water meters for nearly all of its utility customers, and will develop a robust two -way communications system and integrate it with the City's fiber -optic backbone. This project also includes an initial investigation of "Smart Grid" applications such as distribution utility automation, dynamic pricing, peak load City of Port Angeles Response to Google Fiber for Communities Request for Information management, demand response, and home area networks. This is another area where the City of Port Angeles and Google may be able to form a partnership in provided information- enabled home energy consumption data received from "smart meters" to the City's residents. The City's unique public /private partnership business model for developing its fiber network is open access and could provide an example of what communities and Google can do together. How can we jointly translate the astonishing and growing power to monitor, visualize and share information about human activities and their impacts in ways that foster social and environmental progress? Please provide a web link to any additional information you wish us to consider. Submissions using Google Maps or YouTube are encouraged: http: /www.fibercity.us/ 4. YOUR COMMUNITY'S SUPPORT Have you performed any outreach, study, or analysis regarding support in your community for this type of trial? Yes Describe how you ascertained or plan to ascertain the level of community support for this project (e.g., surveys, public hearings, meetings with community groups, etc.) (1000 characters): The City's utility management staff presented the details of the Google opportunity to the City's Utility Advisory Committee and the City Council. It was openly discussed in public meetings. Both bodies reviewed the Google RFI and agreed unanimously to authorize City staff to aggressively pursue this opportunity. The City leadership and the utility department management and staff are dedicated to providing Google with the assistance it needs to eliminate barriers and streamline processes so it can quickly install its fiber network. Please describe your community's level of support for this project (1000 characters): The City of Port Angeles has a very high level of community support for this project. While not performing any whacky stunts or resorting to fancy gimmicks to get your attention, City residents and businesses would warmly welcome Google into our mainly working -class rural community to serve as an innovation test bed. -9- City of Port Angeles Response to Google Fiber for Communities Request for Information Independently of this initiative, Port Angeles has taken a proactive position over the past decade in terms of examining and meeting needs for expanding broadband infrastructure citywide. Most recently, public meetings were held in spring 2009 and early this year to update the specific needs of institutional and commercial users of broadband services. The city proudly displays the logo that represents its plans to be the Fiber City. Please briefly summarize any additional comments or suggestions you would like to make to Google on behalf of your community (1000 characters): The City of Port Angeles was incorporated in 1890 yet, as we have progressed into the 21st century, it still holds onto the steadfast traditions of hard work, family, and community. In partnership with the community, we are stewards of our unique environment and quality of life. The City of Port Angeles has already demonstrated that it can successfully partner with Google. The City voluntarily shared 95Gb of orthophotography files with Google in 2008 to provide public access to our photography and to encourage Google to expand its mapping applications in our area. Port Angeles has more than a decade of experience of providing high- capacity fiber optic service to end users. A Google partnership will expand this technology to all residents within the community. In a very short period of time the City could have a top -down fiber -optic infrastructure serving businesses, institutional sites, and all residences. 5. FACILITIES AND RESOURCES Please respond as completely and accurately as possible. Pole attachments: Please identify the entities, including units of the local government, that own or control utility poles in your community: 2 Deployment of a community-wide FTTH network will require Google to work closely with local government entitles and other organizations Google seeks to identify resources owned by the community that may assist in the rapid, smooth deployment of a residential fiber optic network In this section, we ask you to share information about particular facilities and assets within the community that may be used or affected as part of such a facilities deployment, particularly those owned by the local governrnent Entity name: The City of Port Angeles 0 City of Port Angeles Response to Google Fiber for Communities Request for Information Number of poles owned or controlled: 8890 Annual rate per pole for pole attachment: by telecommunications carriers 14 by cable system operators 14 by Internet access providers 14 If the local government will make its own poles available for attachments by Google, please estimate the number of days to complete the following steps, assuming full cooperation from Google: Negotiation of a master pole attachment agreement: 0 Issuance of permits for individual attachments: 1 Developing specifications for make -ready work: 0 Completing make ready work: Please identify any state or local laws ordinances, rules, or other legal measures that govern access and rates for attachment: All applicable Public Utility Ordinances are contained within Chapter 13 of the Port Angeles Municipal Code (PAMC). The technical provisions for Pole Attachments are provided in Chapter 13.14 PAMC. Pole attachment fees are set forth in Chapter 3.70 PAMC. As further clarification to the "number of days" question above, the City pole attachment ordinance specifies all requirements for make -ready work. Although City Entity name: Capacity Provisioning, Inc. City of Port Angeles Response to Google Fiber for Communities Request for Information completion of make -ready work is possible, it is normally completed by a third -party vendor that is attaching the equipment to the City -owned utility poles. Please provide contact information for any entities named above: Glenn A. Cutler, P.E. Director of Public Works and Utilities City of Port Angeles 321 E. Fifth Street Port Angeles, WA 98362 360.417.4800 gcutler @cityofpa.us Conduits: Please identify the entities, including units of local government, that own or control utility conduits in your community: Linear feet of conduit owned or controlled: 200000 Please provide contact information for any entity named above: Craig E. Johnson Vice President Managing Partner Capacity Provisioning, Inc. 116 1/2 West 8th Street Port Angeles, WA 98362 360.565.8400 craig @cpifiber.com With respect to your processes for managing access to public rights -of -way, please estimate the number of days to complete the following steps, assuming full cooperation from Google: City of Port Angeles Response to Google Fiber for Communities Request for Information Negotiation, approval, and issuance of a master right -of -way agreement: 30 Issuance of construction permits: 5 Post construction inspections and approvals: 1 Please indicate the amount or method of calculating all fees and charges for use of the public rights -of -way, including the following (if applicable): Application fees: 500 Linear foot (or other) usage fees: 0 Inspection fees: 150 Other fees or charges: 250 Community sensitivities and policies Please describe any historical districts or other culturally or environmentally sensitive areas (386 characters): The city has 10 buildings on State or National registers, three prehistoric archaeological sites, and one historic district. Environmentally sensitive areas include marine bluffs, marine shoreline, wetlands, streams and stream ravines, and steep slopes and geologically hazardous areas. Some areas are protected by Title 15 PAMC. Please describe your undergrounding plans and policies, if any: The City's undergrounding policy is only directed toward new residential subdivisions. While our City Council has developed no formal policy to convert the current overhead facilities to underground ones, they have expressed an interest in undergrounding the downtown areas of the City for aesthetic reasons. City of Port Angeles Response to Google Fiber for Communities Request for Information Please identify unique ordinances, rules, policy statements, and other legal measures specific to your community that Google would have to comply in developing a fiber project: All ordinances specific to the City of Port Angeles that Google would have to comply with in developing a fiber project are contained in the City's Telecommunications Master Permit Right of Way License Fee Ordinance #3085). 7. REGULATORY ISSUES Please describe the local regulatory obligations that would apply to Google if this project went forward in your community: Google would have to comply with the following: 1) Telecommunications Ordinance #3083) 2) Pole Attachment Ordinance #3084) 3) Telecommunications Master Permit Right of Way License Fee Ordinance #3085) 4) Right of Way Construction Permit Ordinance #3087) Please describe local business obligations and taxes /fees, if any, that would apply to Google if this project went forward in your community (386 characters): While no state or local taxes are charged for Internet access, Google would be subject to a 6% state sales tax on telecommunications services for wide area networking (for example, fast Ethernet) and telephone service. No taxes apply to VOIP service. Cable television services that are regulated under the Cable Communications Act currently pay a 5% franchise fee to the City. pORT NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: April 13, 2009 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Western Public Agencies Group Direct Load Control Assessment Summary: The City recently received the final report for the Direct Load Control Assessment conducted for the Electric Utility by the Western Public Agencies Group. The report indicates that the cost and benefit of direct load control is worthy of serious consideration. Recommendation: Information only, not action requested. Background /Analysis: Last year, the Utility Advisory Committee supported and City Council approved the Electric Utility's participation in a Direct Load Control Assessment conducted by the Western Public Agencies Group (WPAG). The City's cost -share of the $57,900 project was less than $5,000. A copy of the assessment is available upon request. Direct load control is a specific kind of demand response that cycles or shuts down customer equipment during peak demand events in order to reduce demand charges. Peak demand is the maximum rate of energy consumption during one hour that occurs during each month. At its simplest, direct load control in a home uses a control device to briefly curtail major appliances or space conditioning units. WPAG investigated measures for shaving summer and winter peaks using water heater switches, zonal heating switches, and central thermostat control equipment. Although direct load control is not a new practice for electric utilities across the nation, it has not been used by most electric utilities buying power from the Bonneville Power Administration (BPA) due to low peak demand rates. However, beginning October 1, 2011, the primary opportunity to reduce wholesale power cost under BPA's new wholesale Tiered Rate Methodology (TRM) will be peak demand management. Under TRM the peak demand will no longer be coincident with the BPA system and will be the City's peak, which will likely increase the City's peak demand quantity. Wholesale peak demand rates are expected to increase from today's range of $1 to $2 per kilowatt to a rate range between $8 and $10 per kilowatt under the TRM. While there are many unresolved details, peak demand management may be able to reduce the City's wholesale power costs under the TRM by as much as $3 million annually ($1.6 million distribution system; $1.4 million industrial transmission system). While this is an estimate and the City's actual savings will likely be less, the assessment provided valuable background information for the City's residential demand response proposal that will be submitted to BPA later this month. N: \UAC\Final \WPAG Load Control Feasibility Study.doc J;ORT NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: April 13, 2010 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Advanced Metering Infrastructure Project Communications Plan Summary: A communications plan is crucial for the success of the Advanced Metering Infrastructure project. Staff is developing a request for proposals for consulting services that will be advertised next month with consulting proposals due in June. Staff will return to the Utility Advisory Committee in July after consulting proposals are evaluated and the agreement, scope of work, fee, and schedule are negotiated with the top ranked consultant. Recommendation: For information only, no action requested. Background /Analysis: A communications plan is included in the budget for the Advanced Metering Infrastructure (AMI) project. The communications plan will include the development of customer (external) and staff (internal) education program including informational messages that need to be shared prior to, during, and after the project. A communications plan is crucial for the success of the AMI project. The communications plan will include the outcome of the Retail Tiered Rate Methodology Study, which will likely include a new electric rate design for most customers. There have been several utilities that have deployed AMI projects along with rate design changes without a communications plan that have resulted in customer pushback. The customer pushback is due to a lack of understanding which can be alleviated by adequate and timely communications. Utilities that have deployed successful AMI projects with communications plans have resulted in 95% customer satisfaction. Staff is developing a request for proposals (RFP) for consulting services for the customer communications plan. It is anticipated that the RFP will be advertised next month with consulting proposals due in June. Staff will return to the Utility Advisory Committee in July after consulting proposals are evaluated and the agreement, scope of work, fee, and schedule are negotiated with the top ranked consultant. N \UAC \Flnal\AMI Communications Plan doc