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HomeMy WebLinkAboutAgenda Packet 05/10/2011Utility Advisory Committee Jack Pittis Conference Room Port Angeles, WA 98362 May 10, 2011 3:00 PM AGENDA I. Call To Order II. Roll Call III. Approval Of Minutes For April 12, 2011 IV. Late Items V. Discussion Items: A. Bonneville Power Administration Revised Residential Exchange Program Settlement Agreement B. Combined Sewer Overflow Archaeological Pre Clearance Exploration, Project No. 06 -01 C. 4 Street Stormwater Project and Public Outreach D. Broadband Technology Opportunities Program Professional Services Agreement E. Advanced Metering Infrastructure System Radio Frequency Field Opt -Out F. Elwha Valley Road Project City /County Roadway Easement and Quitclaim Deed G. Simple Steps, Smart Savings Promotion Services Agreement Project Order -03.3 VI. Information Only Items: A. Benefit Dump Day Report B. Advanced Metering Infrastructure System Update (verbal report only) C. Utility Rate Studies Calendar D. Tier 2 Power Supply /Strategic Planning Workshop VII. Executive Session Potential Litigation: RCW 42.30.110(1)(d) VIII. Future Meeting Dates: June 7 -8, 2011 Tier 2 Power Supply /Strategic Planning Workshop June 14, 2011 Regular Meeting IX. Adjournment N: \uac \final \121411 I. Call To Order Chairman Dan DiGuilio called the meeting to order at 3:00 p.m. II. Roll Call UAC Assigned Councilmembers Present: Dan Di Guilio, Cherie Kidd, Brooke Nelson Other Councilmembers Present: Other Councilmembers Absent: Utility Advisory Committee Members Present: Utility Advisory Committee Members Absent: Staff Present: Others Present: III. Approval Of Minutes City Council Special Meeting/Utility Advisory Committee Jack Pittis Conference Room Port Angeles, WA 98362 April 12, 2011 3:00 p.m. Max Mania Don Perry, Brad Collins, Patrick Downie Dean Reed Paul Elliott Kent Myers, Glenn Cutler, Bill Bloor, Mike Puntenney (3:53), Larry Dunbar, Dan McKeen, Phil Lusk, Randy Brackett, Terry Gallagher, Brian Smith, Kathryn Neal, Nathan West, and Sondya Wray Hugh Haffner PUD #1 Clallam County Craig Johnson Capacity Provisioning, Inc. Bob Jensen Capacity Provisioning, Inc. Frank Needham NoaNet Fred Mitchell PUD #1 Clallam County Mike Doherty Clallam County Commissioner Tom Callis PDN Chairman Dan DiGuilio asked if there were any corrections to the minutes of March 8, 2011 and March 28, 2011. Councilmember Nelson moved to approve the minutes. Dean Reed abstained due to absence of the prior meeting. Cherie Kidd seconded the motion, which carried unanimously. IV Late Items: Columbia Telecommunications Corporation Professional Services Agreement Amendment No. 3 was pulled for the Agenda. Retail Tiered Rate Methodology Study New Large Single Load Update (verbal report only) was deferred to a future meeting. Simple Steps, Smart Savings Promotion Services Agreement Project Order 03.3 was withdrawn from the meeting agenda. V. Discussion Items: A. Proposed Wireless Network Open Access Policy Terry Gallagher, Chief of Police, reviewed a PowerPoint presentation on the Proposed Wireless Network Open Access Policy. As part of the City's grant under the Broadband Telecommunications Opportunities Program, the City must establish a policy in support of the Federal Communications Commission Policy Statement. A lengthy discussion followed. Councilmember Nelson moved to recommend City Council to establish policy for public access to the Wireless Network in accordance with the Federal Communications Commission Policy Statement FCC 05 -151, and authorize City Manager to make minor changes to the policy, if necessary. Dean Reed seconded the motion, which carried unanimously. B. Wireless Mobile Data System Sub -Grant Match Resolution Terry Gallagher, Chief of Police, reviewed a PowerPoint presentation on the Wireless Mobile Data System Sub -Grant Match Resolution. A brief discussion followed. Dean Reed moved to recommend City Council to pass a resolution committing reserves for the City's matching share of the Broadband Telecommunications Opportunities Program grant project with the Northwest Open Access Network if the City Manger accepts the Participation Agreement, and authorize City Manager to make minor modifications to the resolution if necessary. Brooke Nelson seconded the motion, which carried unanimously. C. Redundant Fiber Optics Facilities, Project CL03 -2010, Change Order No. 1 Larry Dunbar, Deputy Director of Power Systems, discussed different Change Order options and items within the Redundant Fiber Optics Facilities Project. A lengthy discussion followed. Dean Reed moved to recommend City Council authorize City Manager to approve Change Order No. 1 to contract with Capacity Provisioning, Inc. for Redundant Fiber Optic Facilities, Project CL03 -2010, in the amount of $40,756.48 for a total contract amount of $186,997.58, including applicable tax. Brooke Nelson seconded the motion, which carried unanimously. D. Combined Sewer Overflow Phase I Constructability Review Results Kathryn Neal, P.E., Engineering Manager, provided an update on the Combined Sewer Overflow Phase I Constructability Review Results. A brief discussion followed. For information only, no action requested. VI. Executive Session Bill Bloor, City Attorney, announced the Executive session which was conducted as follows: Session began: 3:46 P.M. Session ended: 3:52 P.M. E. Electrical Work Permit Fees Update Randy Brackett, Deputy Director of Operations, shared information on the electrical work permit fees and provided an attachment with electrical permit fee comparisons. A lengthy presentation followed. For information only, no action requested. F. Moderate Risk Waste Facility Operation Randy Brackett, Deputy Director of Operations, discussed the operation and current state grant for support of the City of Port Angeles Moderate Risk Waste Facility. There was a brief discussion. For information only, no action requested. G. Retail Tiered Rate Methodology Commercial Customer Impact Study Phil Lusk, Power Resources Manager, shared that EES Consulting will be preparing an impact study for the City's largest electric customers. The study will estimate the impacts the new time of use rate design and BPA rate increase will have on customers. For information only, no action requested. H. Electric and Water Meter Clearance Ordinance Amendments Phil Lusk, Power Resources Manager, provided a PowerPoint presentation. A discussion followed after reviewing the current ordinances on meter clearance requirements. Dean Reed moved to recommend City Council to proceed with a public hearing and adopt the amendments to ordinances relating to electric and water meter clearances. Brooke Nelson seconded the motion, which carried unanimously. VII. Information Only Items: A. Advanced Metering Infrastructure System Agreement (Verbal Report Only) Information only. No action taken. B. Electric Vehicles Information only. No action taken. VIII. Next Meeting Dates: May 10, 2011 IX. Adjournment: 5:30 p.m. Dan DiGuilio, Mayor Janessa Hurd, City Clerk Dan DiGuilio, Chair Utility Advisory Sondya Wray, Administrative Specialist Committee PART NGELES W A S H I N G T O N U. S. A, Utility Advisory Committee Memo May 10, 2011 Date: To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Bonneville Power Administration Revised Residential Exchange Program Settlement Agreement Summary: A revised settlement agreement has been offered for consideration regarding the Bonneville Power Administration's Residential Exchange Program. Recommendation: Formulate a recommendation to City Council. Background /Analysis: Last month the settlement agreement was rejected by City Council and more than 9% of customer owned utilities regarding the Bonneville Power Administration (BPA) Residential Exchange Program (REP). After the settlement agreement failed to be accepted by 91% of customer owned utilities, a revised settlement agreement was offered for consideration. The revised settlement agreement only changes the 91% acceptance requirement to 75% and the acceptance deadline from April 15, 2011 to June 3, 2011. Based on the lower acceptance requirement the revised settlement agreement is anticipated to prevail. Staff will be ready to answer questions, and Mr. Terry Mundorf will be available by phone. Following a brief summary, staff will request that the Utility Advisory Committee formulates their recommendation to City Council on the revised settlement agreement. N \UAC \Final\BPA Revised Residential Exchange Program Settlement Agreement docx GE LE S W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: May 10, 2011 To: Utility Advisory Committee From: Kathryn Neal, Engineering Manager and Derek Beery, City Archaeologist Subject: Combined Sewer Overflow Archaeological Pre Clearance Excavation, Project No. 06 -01 Summary: The City is undertaking a pre construction, archaeological sampling effort for the Combined Sewer Overflow Phase 1 Project. Sealed bids for this work are expected to close on May 9, 2011. Recommendation: Forward a favorable recommendation to City Council to Award and Authorized the City Manager to sign a contract for CSO Archaeological Pre Clearance Excavation, based on satisfactory bid results. Background /Analysis: The City is undertaking a pre construction, archaeological sampling effort for the Combined Sewer Overflow (CSO) Phase 1 Project. The City is integrating archaeological sampling into the pre construction process as part the effort to reduce uncertainty regarding the presence of buried archaeological resources within the higher probability shoreline areas of the Port Angeles waterfront. This plan is a result of National Historic Preservation Act Section 106 compliance and consultation for the federally regulated project. All work will be accomplished in compliance with the Pre -work Archaeological Sampling Plan. The Plan also describes the likely presence of tribal monitors in addition to other archaeological methods to be employed during the fieldwork. Archaeological sampling shall consist of 11 trenches and 3 test pits excavated under the direction of the City Archaeologist. The Contractor shall be responsible for providing a safe entry into the trenches and test pits. The 11 trenches will be open excavations, excavated to approximately 8 feet wide and 16 feet long centered on the expected construction path for the CSO pipe centerline and will be between 2 feet and 8 feet deep depending upon location. The 3 test pits will be 8 -foot by 8 -foot, excavated to a depth varying between 15 feet to 18 feet deep. Soldier pile and lagging shall be required for these 3 deep excavation test pits. Upon completion of the project, the Contractor shall remove the soldier pile and lagging and restore the project site to its original condition per the direction of the City Engineer. Funds are available for this work from the CSO project. Sealed bids for this work are expected to close on May 9, 2011. The bid results were not available at the time of the issuance of this memorandum, but will be presented at today's meeting. N. \UAC\Final \CSO Archaeological Pre Clearance Excavation, Project 06 -01 doc PART NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: May 10, 2011 To: Utility Advisory Committee From: Terri Partch, P.E., Civil Engineer, Stormwater Program Manager Subject: 4 Street Stormwater Project and Public Outreach Summary: City staff has designed alternative approaches to solving both flooding issues and stormwater treatment for an area along 4 Street between H Street and Evans Avenue. Public outreach has been conducted with the property owners to educate them on rain gardens and to measure their level of acceptance of the ram garden concept. Recommendation: Following a staff presentation, the Utility Advisory Committee is requested to provide guidance on which low impact design alternatives will be used to complete this project. Background /Analysis: The City has had longstanding problems with winter flooding along 4th Street between H Street and Evans Avenue. In July 2010, City Council authorized a consultant agreement with PACE Engineers,, Inc. to study the stormwater problems, develop preliminary Low Impact Design (LID) alternatives, and assist the City with a grant application to seek partial funding support. The grant program was specifically for stormwater water quality treatment. Last November, the City was notified that it was not successful in securing grants. This year the State received a high number of applicants, so had awarded projects to those focused exclusively on water quality issues rather than those that solved both water quality issues as well as fixing other flooding issues. Consequently, this made the City scores non competitive for this grant cycle. The City also planned to use bond funding to support some of the project alternatives. Two of the LID alternatives include rain gardens, a fundamentally new type of stormwater facility for the Port Angeles area. Because of this, on March 8 public outreach for the rain garden design alternatives was performed to try to both educate and measure public acceptance of the concept. For this, Council Member Mania and two City staff members attended a meeting at the home of one of the local residents. Local residents expressed many concerns about the rain garden concept, so much so, that they subsequently submitted a formal petition against having rain gardens in their neighborhood. City staff will make a short presentation on the results of the public outreach and the LID alternatives that have been studied to date, and seek guidance from the Utility Advisory Committee on which LID alternatives will be used to complete this project. N \UAC\Final \4th Street Stormwater Project Public Outreach docx Date: To: From: Subject: )ORTNGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo May 10, 2011 Utility Advisory Committee Terry Gallagher, Police Chief Broadband Technology Opportunities Program Professional Services Agreement Summary: The City advertised, received, and evaluated proposals for consulting services in support of the Wireless Mobile Data System project. Following a competitive selection process, Columbia Telecommunications Corporation was ranked as providing the best overall qualifications and their proposal was within the price range anticipated for the scope of work. Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor to sign an agreement with Columbia Telecommunications Corporation in an amount not to exceed $65,400, and authorize the City Manager to make minor modifications to the agreement, if necessary. Background /Analysis: At the direction of the Northwest Open Access Network (NoaNet), staff recently completed a Request for Qualifications (RFQ) process to select a consultant for professional services in support of the City's Broadband Technology Opportunities Program grant for the City's wireless mobile data system. A total of four consultants submitted their qualifications in response to the RFQ which were evaluated on May 2, 2011. A technical committee comprised of representatives from the Police, Fire, and Public Works and Utilities departments evaluated proposals and participated in interviews, which were completed on May 6, 2011. The evaluation focused on qualifications and prior performance, project understanding, resumes, availability, project management expertise, references, and work samples. The table below summarizes the initial RFQ evaluation results, which are presented in alphabetical order by consultant name. An overall numeric score was calculated, which is provided in the last column of the table. Consultant Columbia Telecommunications Corporation COMgroup Engineering Associates Sparling N \UAC \Final \Telecommunications BTOP Professional Services Agreement doc Home Office (City /State) Kensington, MD Kirkland, WA Sherwood, OR Seattle, WA Score 92 51 52 73 Broadband Technology Opportunities Program May 10, 2011 Page 2 The table below summarizes the RFP interview results, each consultant responding to the RFQ participated in an interview. The last column of the table below contains the overall score given by the technical committee for the consultants that were interviewed. Consultant Score 1 1 Columbia Telecommunications Corporation 95 1 COMgroup 51 1 Engineering Associates 89 1 Sparling 58 1 Staff recommends that CTC is retained to assist the City to procure a City -owned wireless mobile data system. The Professional Services Agreement with CTC has been negotiated and is attached. The scope of work includes preparing the RFP, providing support to the City prior to the proposal due date, evaluating proposals, and support during contract negotiation. A fee not to exceed $65,400.00 was proposed for the services, which is within the range anticipated for this project. Notice to proceed to CTC will be withheld until the Participation Agreement is signed by the City Manager. Staff recommends that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the Mayor to sign an agreement with Columbia Telecommunications Corporation in an amount not to exceed $65,400, and authorize the City Manager to make minor modifications to the agreement, if necessary. Attachment: Professional Services Agreement CONTRACT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PORT ANGELES AND COLUMBIA TELECOMMUNICATIONS CORPORATION RELATING TO: TELECOMMUNICATIONS PLANNING AND SYSTEM DESIGN THIS CONTRACT is made and entered into this day of 2011, by and between THE CITY OF PORT ANGELES, a non charter code city of the State of Washington, (hereinafter called the "CITY and Columbia Telecommunications Corporation, a Corporation authorized to do business in the state of Washington (hereinafter called the "CONSULTANT WHEREAS, the CITY desires professional services related to a Wireless Mobile Data System; and WHEREAS, the CITY desires to engage the professional services and assistance of a qualified consulting firm to perform the scope of work as detailed in Exhibit B, and WHEREAS, the CONSULTANT represents that it is in full compliance with the statutes of the State of Washington for professional registration and /or other applicable requirements, and WHEREAS, the CONSULTANT represents that it has the background, experience, and ability to perform the required work in accordance with the standards of the profession, and WHEREAS, the CONSULTANT represents that it will provide qualified personnel and appropriate facilities necessary to accomplish the work; NOW, THEREFORE, in consideration of the above representations and the terms, conditions, covenants, and agreements set forth below, the parties hereto agree as follows: I SCOPE OF WORK The scope of professional services to be performed and the results to be achieved by the CONSULTANT shall be as detailed in the attached Exhibit B and shall include all services and material necessary to accomplish the work. The CITY may review the CONSULTANT'S work product, and if it is not satisfactory, the CONSULTANT shall make such changes as may be required by the CITY. Such changes shall not constitute "Extra Work" as related in Section XII of this Contract. The CONSULTANT agrees that all services performed under this Contract shall be in accordance with the standards of the profession and in compliance with applicable federal, state and local laws. The Scope of Work may be amended upon written approval of both parties. 11 OWNERSHIP OF DOCUMENTS Upon completion of the work, all documents, exhibits, photographic negatives, or other presentations of the work shall become the property of the CITY for use without restriction and without representation as to suitability for reuse by any other party unless specifically verified or adapted by PW 0410_01 Professional Services Agreement Page 1 of 7 [Revised [05/12/06] the CONSULTANT. However, any alteration of the documents, by the City or by others acting through or on behalf of the City, will be at the City's sole risk. III DESIGNATION OF REPRESENTATIVES Each party shall designate its representatives in writing. The CONSULTANT'S representative shall be subject to the approval of the CITY. IV TIME OF PERFORMANCE The CONSULTANT may begin work upon execution of this Contract by both parties and the duration of the Contract shall extend through December 31, 2013. The work shall be completed in accordance with the schedule set forth in the attached Exhibit E. V PAYMENT The CITY shall pay the CONSULTANT as set forth in this section of the Contract. Such payment shall be full compensation for work performed, services rendered, and all labor, materials, supplies, equipment and incidentals necessary to complete the work. A. Payment shall be on the basis of the CONSULTANT'S standard billing rates as set forth in Exhibit D multiplied by the actual hours worked, cost for actual labor, overhead and profit plus CONSULTANT'S direct non -salary reimbursable costs as set forth in the attached Exhibit D. B. The CONSULTANT shall submit invoices to the CITY on a monthly basis. Invoices shall detail the work, hours, employee name, and hourly rate; shall itemize with receipts and invoices the non -salary direct costs; shall indicate the specific task or activity in the Scope of Work to which the costs are related; and shall indicate the cumulative total for each task. C. The CITY shall review the invoices and make payment for the percentage of the project that has been completed less the amounts previously paid. D. The CONSULTANT invoices are due and payable within 30 days of receipt. In the event of a disputed billing, only the disputed portion will be withheld from payment. E. Final payment for the balance due to the CONSULTANT will be made after the completion of the work and acceptance by the CITY. F. Payment for "Extra Work" performed under Section XII of this Contract shall be as agreed to by the parties in writing. VI MAXIMUM COMPENSATION Unless otherwise agreed to in writing by both parties, the CONSULTANT'S total compensation and reimbursement under this Contract, including labor, direct non -salary reimbursable costs and outside services, shall not exceed the maximum sum of $65,400.00. The budget for each task is as set forth in the attached Exhibit C. Budgets for task(s) may be modified upon mutual agreement between the two parties, but in any event, the total payment to CONSULTANT shall not exceed $65,400.00. VII INDEPENDENT CONTRACTOR STATUS PW 0410_01 Professional Services Agreement Page 2 of 7 [Revised [05/12/06] The relation created by this Contract is that of owner independent contractor. The Contractor is not an employee of the City and is not entitled to the benefits provided by the City to its employees. The Contractor, as an independent contractor, has the authority to control and direct the performance of the details of the services to be provided. The Contractor shall assume full responsibility for payment of all Federal, State, and local taxes or contributions imposed or required, including, but not limited to, unemployment insurance, Social Security, and income tax. VIII EMPLOYMENT Employees of the CONSULTANT, while engaged in the performance of any work or services under this Contract, shall be considered employees of the CONSULTANT only and not of the CITY, and claims that may arise under the Workman's Compensation Act on behalf of said employees while so engaged, and any and all claims made by a third party as a consequence of any negligent act or omission on the part of the CONSULTANT'S employees while so engaged, on any of the work or services provided to be rendered herein, shall be the sole obligation and responsibility of the CONSULTANT. In performing this Contract, the CONSULTANT shall not employ or contract with any CITY employee without the City's written consent. IX NONDISCRIMINATION The CONSULTANT shall conduct its business in a manner, which assures fair, equal and non- discriminatory treatment of all persons, without respect to race, creed or national origin, or other legally protected classification and, in particular: A. The CONSULTANT shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity /affirmative action requirements; and, B. The CONSULTANT shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran status, disabled veteran condition, physical or mental handicap, or national origin. X SUBCONTRACTS A. The CONSULTANT shall not sublet or assign any of the work covered by this Contract without the written consent of the CITY. B. In the event any subcontracting is approved the subcontractor and its employees shall be required to execute the Non Disclosure Agreement prior to being given access to any confidential information regarding the City's computer system C. In all solicitation either by competitive bidding or negotiation made by the CONSULTANT for work to be performed pursuant to a subcontract, including procurement of materials and equipment, each potential subconsultant or supplier shall be notified by the CONSULTANT of Consultant's obligations under this Contract, including the nondiscrimination requirements. XI CHANGES IN WORK PW 0410_01 Professional Services Agreement Page 3 of 7 [Revised [05/12/06] Other than changes directed by the CITY as set forth in Section I above, either party may request changes in the scope of work. Such changes shall not become part of this Contract unless and until mutually agreed upon and incorporated herein by written amendments to this Contract executed by both parties. XII EXTRA WORK The CITY may desire to have the CONSULTANT perform work or render services in connection with this project, in addition to the Scope of Work set forth in Exhibit B and minor revisions to satisfactorily completed work. Such work shall be considered as "Extra Work" and shall be addressed in a written supplement to this Contract. The CITY shall not be responsible for paying for such extra work unless and until the written supplement is executed by both parties. XIII TERMINATION OF CONTRACT A. The CITY may terminate this Contract at any time upon not less than ten (10) days written notice to the CONSULTANT. Written notice will be by certified mail sent to the consultant's designated representative at the address provided by the CONSULTANT. B. In the event this Contract is terminated prior to the completion of the work, a final payment shall be made to the CONSULTANT, which, when added to any payments previously made, shall compensate the CONSULTANT for the percentage of work completed. C. In the event this Contract is terminated prior to completion of the work, documents that are the property of the CITY pursuant to Section II above, shall be delivered to and received by the CITY prior to transmittal of final payment to the CONSULTANT. XIV INDEMNIFICATION /HOLD HARMLESS CONSULTANT shall defend, indemnify and hold the CITY, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the negligent acts, errors or omissions of the CONSULTANT in performance of this Contract, except for injuries and damages caused by the sole negligence of the CITY. The CITY agrees to indemnify the CONSULTANT from any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage and bodily injury, including death, caused solely by the negligence or willful misconduct of the CITY, CITY's employees, or agents in connection with the work performed under this Contract. If the negligence or willful misconduct of both CONSULTANT and CITY (or a person identified above for whom each is liable) is a cause of such damage or injury, the loss, cost, or expense shall be shared between the CONSULTANT and the CITY in proportion to their relative degrees of negligence or willful misconduct and the right of indemnity shall apply for such proportion. Should a court of competent jurisdiction determine that this Contract is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the CONSULTANT, the CITY, and the officers, officials, employees, and volunteers of either, the CONSULTANT'S liability hereunder PW 0410_01 Professional Services Agreement Page 4 of 7 [Revised [05/12/06] shall be only to the extent of the CONSULTANT'S negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the CONSULTANT'S waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Contract. However, the CONSULTANT expressly reserves its rights as a third person set forth in RCW 51.24.035. XV INSURANCE The CONSULTANT shall procure and maintain for the duration of the Contract, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the CONSULTANT, its agents, representatives, employees or subcontractors. No Limitation. CONSULTANT'S maintenance of insurance as required by the Contract shall not be construed to limit the liability of the CONSULTANT to the coverage provided by such insurance, or otherwise limit the CITY'S recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage; and, 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, and personal injury and advertising injury. The City shall be named as an insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City; and, 3. Workers' Compensation coverage as required by the Industrial Insurances laws of the State of Washington; and 4. Professional Liability insurance appropriate to the Consultant's profession. B. Minimum Amounts of Insurance Consultant shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no Tess than $1,000,000 each occurrence, $2,000,000 general aggregate. 3. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit. PW 0410_01 Professional Services Agreement Page 5 of 7 [Revised [05/12/06] C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability, Professional Liability and Commercial General Liability insurance: 1. The Consultant's insurance coverage shall be primary insurance as respect the City. Any insurance, self- insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant's insurance and shall not contribute with it. 2. The Consultant's insurance shall be endorsed to state that coverage shall not be cancelled, suspended or materially changed by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. Any payment of deductible or self- insured retention shall be the sole responsibility of the CONSULTANT. 4. The CONSULTANT'S insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Consultant before commencement of the work. XVI APPLICABLE LAW This Contract shall be construed and interpreted in accordance with the laws of the State of Washington, and in the event of dispute the venue of any litigation brought hereunder shall be Clallam County. XVII NON DISCLOSURE The Consultant, on behalf of the City, acknowledges that the local area network and metropolitan area network security information received or generated, directly or indirectly, while working as a Consultant for the City under this Contract is confidential and that the nature of the information is such that the provisions in the Non Disclosure Agreement attached hereto and incorporated herein as Exhibit A are reasonable and adopted as part of this Contract. PW 0410_01 Professional Services Agreement Page 6 of 7 [Revised [05/12/06] XVIII EXHIBITS AND SIGNATURES This Contract, including its exhibits, constitutes the entire Agreement, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. The following exhibits are hereby made a part of this Contract: Exhibit A Non Disclosure Agreement Exhibit B Scope of Work Exhibit C Budget for Each Task Exhibit D Consultant Labor Costs and Non -salary Reimbursable Costs Exhibit E Schedule for the Work IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and year first written above. CITY OF PORT ANGELES APPROVED AS TO FORM: MAYOR WILLIAM E. BLOOR, CITY ATTORNEY CONSULTANT ATTEST: TITLE: PW 0410_01 Professional Services Agreement Page 7 of 7 [Revised [05/12/06] BECKY J. UPTON, CITY CLERK Via Electronic and U.S. Mail Dear Mr. Dunbar: Columbia Telecommunications Corporation 10613 Concord Street Kensington, MD 20895 301.933 1488 fax. 301 933 3340 www CTCnet.us Mr. Larry Dunbar City of Port Angeles Public Works Utilities Department 321 East Fifth Street Port Angeles, WA 98362 -0217 ,OMMUNIC:AT10NS FNGINFFRIN0 8, ANANN YSIS III III 111 FOR 1I IL PUBLIC: LC TUFZ May 6, 2011 Re: Proposal and statement of work to prepare an RFP to select a systems integrator to plan, install, and operate a multiband high -speed broadband wireless communications network for Public Safety First Responders, other City agencies, and commercial and residential customers. Thank you for the opportunity to discuss the initial technical support that will be required to support the City of Port Angeles as you enter into a partnership with the Northwest Open Access Network (NoaNet). It is our understanding that NoaNet has accepted the National Telecommunications and Information Administration (NTIA) grant to fund the construction of a broadband wireless network for City agencies. We further understand that the City has agreed to receive a contract from NoaNet to establish the City as a sub grantee to the overall NoaNet grant. And, based on information provided by NoaNet representatives, we understand that work will need to commence on the engineering portion of the City's portion of the project within several weeks. At your request, Columbia Telecommunications Corporation (CTC) is providing a statement of work to prepare contingent upon the City's receipt of federal grant funding through NoaNet —a competitive negotiation (consistent with RCW 39.04.270) through a request for proposals (RFP) process that represents the functional specifications for a multiband high -speed broadband wireless communications network consistent with the technical design defined by the City's own NTIA grant application. The RFP will be based on the technical design developed as part of the Communications Needs Assessment and Public Safety Considerations project we prepared for your office under an earlier assignment. We anticipate that the RFP will solicit responses from experienced systems California Illinois Maryland Minnesota North Carolina Tennessee Valley Washington, D.C. Wisconsin Mr. Larry Dunbar May 6, 2011 Page 2 integrators— companies companies that provide a turnkey approach to projects such as this by combining all necessary hardware, software, equipment, and installation and testing services to create a functioning system. We further expect that these systems integrators will have demonstrated competence in both fiber optic and wireless technologies. (Though not in the scope of this project, we also note that the City might decide to issue a second RFP at some point in the future, separate from the sub grantee relationship with NoaNet, to identify a qualified provider of operations and maintenance services for the wireless network.) We have divided the project into five discrete tasks. We propose to complete the first task preparation of the primary RFP document within 90 days of a notice to proceed. We recommend that upon completion of the first task, the City place the RFP on public notice and that the remaining tasks and all work under this statement of work be completed within six months of the start of the project. A proposed project timeline is attached. We propose to perform all professional service support listed under this statement of work for a total cost of $60,900. We are estimating an additional $4,500 to cover out -of- pocket travel expenses. Travel expenses may vary and will be coordinated with your office prior to planning any onsite work. As we discussed during our meeting in Port Angeles last September, this statement of work only covers the project through the selection of the systems integrator. Additional engineering support from our organization or another qualified engineering firm will be required throughout this project. I anticipate that total engineering expenditures throughout the project might be in the $125,000 to $150,000 range, depending on the support available from City staff. We look forward to working with you and the City staff on this challenging project. Regards, Lee Afflerbach Mr. Larry Dunbar May 6, 2011 Page 3 To support the City of Port Angeles in meeting the requirements of an NTIA broadband grant as a sub grantee to NoaNet, CTC proposes to perform tasks in the following technical areas: Prepare an RFP process to competitively secure the services of a systems integrator for the City of Port Angeles, Washington Assist the City staff in evaluating the technical submissions from responders to the RFP Support the City as a sub grantee Task 1. Prepare RFP Task 2. Provide Pre -Bid Support Statement of Work Based on the design submitted in the City's application to NTIA and the requirements information collected from participating City departments, we will develop a comprehensive engineering framework and scope of services for the RFP. The RFP will specify technical performance requirements for the network with regard to radio coverage, data throughput, security, and redundancy of key network components for both public agency and commercial network performance. The RFP will define at a system level the engineering structure and key technical requirements that will need to be met by the successful respondent in terms of: Required coverage areas Radio spectrum allocation Available locations for mounting wireless access points (WAP) Existing and proposed backhaul network access to interface to WAP Equipment technical standards with respect to open industry standards (FCC, IEEE) The RFP will clearly define the scope of responsibility for the systems integrator, including requirements for acceptance testing, management system, maintenance and support, work hours, documentation, and whether the systems integrator is to be responsible for any necessary changes to existing City infrastructure (e.g., power at poles, pole make ready, additional structures required, etc.). CTC will meet with City staff to review the RFP materials and to finalize the RFP based on City and NoaNet feedback. The RFP should require at least one mandatory pre -bid conference with candidate respondents after release of the RFP. We will attend this conference and assist in preparing responses and RFP addenda, as necessary, for questions presented by the respondents. Mr. Larry Dunbar May 6, 2011 Page 4 Task 3. Evaluate Proposals We will develop proposal evaluation criteria based on the RFP requirements. We will prepare evaluation forms for a structured review, and provide an independent evaluation of the proposals based on these criteria. Task 4. Provide Contract Negotiation Support We will assist in negotiating the final contract with the awarded systems integrator. Example tasks include developing a detailed list of deliverables and a recommended payment schedule corresponding to deliverables. We anticipate attending negotiation meetings. Task 5. Support the City as a Sub Grantee to NoaNet We will assist the City in meeting the requirements —both of NoaNet and the National Telecommunications and Information Administration (NTIA)— concomitant with the City's role as a sub grantee to NoaNet under its BTOP grant. Based on our experience supporting other BTOP grantees, we anticipate that our services will include: Preparing engineering exhibits Representing the City in meetings (in person and via teleconference) with NoaNet, NTIA, and other local, state, and federal agencies involved in permitting and other project design and construction processes Developing any necessary engineering designs or modifications to ensure proper interoperability and interconnection Researching and developing necessary engineering materials to assist the City and its communications contractor with public information dissemination regarding the locations of access devices and the electro- magnetic fields (EMF) associated with the installation, including issues such as: o compliance with standards and laws o exposure duration o frequency of exposure o intensity of output o duration and frequency of output o device transmission patterns and schedules (sending and receiving) o comparisons, as appropriate, to similar "everyday risks," such as cell phone usage, microwave ovens, etc. Mr. Larry Dunbar May 6, 2011 Page 5 Proposed Timeline Based on a start date of May 18, and assuming no delays in the City's procurement process, we believe that this project could be completed on the following approximate timeline: 1. Prepare RFP, May 18 to July 22, 2011 2. RFP issued and "on the street," July 22 to September 2, 2011 3. Evaluation of responses, September 5 to September 30, 2011 4. Contract negotiation and award, October 3, 2011 to January 6, 2012 5. System integrator begins work, January 9, 2012 6. Construction 67% complete by July 27, 2012 7. Construction 100% complete by July 26, 2013 A chart illustrating the proposed timeline is included on the following page. Mr. Larry Dunbar May 6, 2011 Page 6 Estimated Costs The total cost for this work, exclusive of travel, will be as follows: Hours Hourly Rate Sub -Total Director of Engineering 240 $160.00 $38,400 Principal Engineer /Analyst 150 $150.00 $22,500 Total Professional Fees $60,900 Please note that CTC reserves the right to reallocate funds among task and staff categories so long as the total cost is not exceeded. We estimate that our total travel expenses for three trips will be $4,500.' For mutually agreed -upon work performed beyond this statement of work, CTC will bill at the following hourly rates: Director of Engineering $160 Principal Engineer /Analyst $150 Senior Project Engineer /Analyst $140 Senior Engineer /Analyst $130 Staff Engineer /Analyst $120 Engineer Aide II 65 CTC's billing rates are inclusive of all routine expenses including administrative, accounting, computer support, telephone calls, and photocopying. Non routine expenses are billed at cost. CTC's rates are guaranteed for the term of this project. Payment is due within 30 days of invoice. 1 To be coordinated with client and billed at cost. P W A S H I N G T O N U. S. A Utility Advisory Committee Memo Date: May 10, 2011 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Rick Hostetler, Customer Service Manager Subject: Advanced Metering Infrastructure Radio Frequency Field Opt -Out Summary: During the Town Hall meetings held last month, a customer voiced concerns about the radio frequency fields emitted by smart meters and expressed an interest in having the ability to opt -out from the wireless data transmission component of the City's Advanced Metering Infrastructure System. Recommendation: Formulate a recommendation to City Council. Background /Analysis: During the Town Hall meetings held last month, a customer voiced concerns about the radio frequency (RF) fields emitted by smart meters and expressed an interest in having the ability to opt -out from the wireless data transmission component of the City's Advanced Metering Infrastructure System. Mueller Systems, the City's Advanced Metering Infrastructure System vendor, prepared a summary of the equivalent impacts of the RF fields emitted by their smart meters. Based on the Mueller Systems RF summary and staff research, it appears that the RF field emitted by smart meters is not significant and in full compliance with applicable standards. Wireless smart meters, when installed and properly maintained, result in much smaller levels of RF field exposure than many existing common household electronic devices, particularly cell phones and microwave ovens. Meuller's summary states that the system the City is purchasing will have an average RF field exposure equivalent to a two second phone call on a wireless telephone per day. If the City were to consider allowing customers to opt -out from the wireless data transmission component of the smart meters being installed this year, several ordinance amendments would be needed. Staff does not recommend the opt -out option. If the Utility Advisory Committee forwards a favorable recommendation to City Council staff suggests that the additional cost to opt -out of smart metering be paid by the customer requesting the opt -out, and that the opt -out option not be available to low- income senior citizens and disabled citizens receiving a utility discount. The costs to opt -out will be shared at today's meeting and would include two components, the first being the one -time costs incurred as a result of the changes required to the new meters to be manually read and the second being the monthly recurring costs associated with the required manual readings and billing instead of the automated reading and billing being provided by the Advanced Metering Infrastructure System. N \UAC \Final\AMI System Opt Out Meter docx .2ORT i NGELES. W A S H I N G T O N U.S.A. Utility Advisory Committee MEMO DATE: May 10, 2011 To: Utility Advisory Committee FROM: Glenn A. Cutler, P.E., Director of Public Works Utilities SUBJECT: Elwha Valley Road Project City /County Roadway Easement and Quitclaim Deed Summary: The Lower Elwha Klallam Tribe has proposed to create a new access road, the Elwha Valley Road, to their reservation. To accomplish this, the Lower Elwha Klallam Tribe will quitclaim parcel E to the City as part of the plan to construct the new Elwha Valley Road. The City then would grant an easement to Clallam County to maintain, alter, and improve the road so it may become part of the Clallam County road system. Recommendation: Forward a favorable recommendation to City Council to: 1) accept the quitclaim deed and 2) grant an easement to Clallam County to alter, repair, improve, and maintain for county road purposes, and authorize the City Manager to make minor modifications to the easement, if necessary. Background /Analysis: On September 1, 2009, the Council passed a resolution granting temporary and permanent easements to the Lower Elwha Klallam Tribe (LEKT) to construct portions of the Elwha Valley Road (EVR) Project. It was anticipated that additional easements would be required to complete the project. On January 10, 2011 Council granted an easement for installation of a waste water line in Kacee Way and relocation of City utilities impacted by the construction of the EVR bed. It was envisioned that an additional easement would be required between the LEKT, Clallam County (CC) and City to allow construction and transfer of the EVR to CC. The staff members from the three agencies determined that the most efficient way to complete the process required two final documents involving the City. First, the LEKT will quitclaim a deed for a triangular parcel (E) to the City. Then the City would grant an easement to CC to permit them to maintain the roadway after it is constructed and conveyed to them from the LEKT. The quitclaim deed and execution of the easement will, in part, satisfy portions of the Wastewater Agreement between the City of Port Angeles and the LEKT dated May 30, 2007. The City and Tribe have other obligations under this agreement that continue to be addressed by staff. Utility Advisory Committee Elwha Valley Road Project City /County Roadway Easement and Quitclaim Deed Page 2 The easement has provisions for: Final as -built drawings and specifications shall constitute the extent and scope of the easement. City intends to use Parcels D and E for current and future utilities. County shall be responsible for all risk of loss, injury, or damage associated with the roadway that might originate by the City utilities. City shall coordinate utility repairs with the County for roadway closures. County shall be responsible for all roadway maintenance, signage, and liabilities. The easement and quitclaim deed will be recorded concurrently. It is recommended that the Utility Advisory Committee forward a favorable recommendation to City Council to 1) accept the quitclaim deed, and 2) grant the easement to Clallam County to construct, alter, repair, improve, and maintain the Elwha Valley Road, and authorize the City Manager to make minor modifications to the easement, if necessary. Attachments: Draft Easement dated May 4, 2011 Draft Quitclaim Deed dated May 4, 2011 AFTER RECORDING, MAIL TO: City of Port Angeles Attn: City Attorney P O Box 1150 Port Angeles, WA 98362 Page 11 EASEMENT AGREEMENT s biZ A S T iJI A y 4 z.- 0 1 Grantor: CITY OF PORT ANGELES Grantee: CLALLAM COUNTY Tax Parcel Nos.: 073002 230150, 130150, 140150, 140225 (Milwaukee Grade) GRANT OF RIGHT -OF -WAY EASEMENT FOR COUNTY ROAD PURPOSES THIS EASEMENT is made by and between the CITY OF PORT ANGELES, a municipal corporation of the State of Washington (hereinafter "Grantor and CLALLAM COUNTY, a subdivision of the State of Washington (hereinafter "Grantee SECTION 1. GRANT AND LOCATION OF EASEMENT 1.1 Easement Property. Grantor grants and conveys to Grantee an exclusive, perpetual easement to establish, lay out, construct, alter, repair, improve, and maintain for county road purposes, in, on, over, and across portions of Parcels D, and E, as shown on Exhibit 1 (map) and described in Exhibit 2, (the "Easement Property both herein incorporated by reference, more commonly known as Kacee Way and /or the Elwha Valley Road. The Parties hereby authorize their representatives, identified in Section 8 below, to substitutes for Exhibit s 1 and 2 the as- built drawings, specification, and information that show the road in its location and alignment after construction is complete. Those as -built drawings, specification, and information shall constitute the extent and scope of the Easement Property. This Easement shall terminate upon vacation of the county road by Grantee. 1.2 Condition of the Easement Property. Grantor makes no representation concerning the condition of the Easement Property or its suitability for use as a county road. 1.3 Municipal Utilities. The parties recognize and acknowledge that the Easement Property is located within a portion of the former 100 -foot -wide Milwaukee Railroad Grade "Milwaukee Grade owned by the Grantor. Within the Milwaukee Grade, and including the Easement Property, the Grantor has established and maintains several municipal utility lines and utility corridors. The Grantor intends to use the Milwaukee Grade now and in the future to maintain existing utility lines, to establish new utility lines, to relocate and reconstruct existing utility lines, to access Grantor's property, to operate, maintain, repair, replace, rebuild, move, remove, alter, and change utilities, utility routes, facilities, and access ways, and for other purposes and uses, all established and maintained for purposes the public health, safety, and general welfare of the residents of the Grantor of Port Angeles, Washington. Also, the Grantor has used the land for access to the Grantor's property, facilities, utilities, and for other municipal purposes. All these uses and purposes collectively are referred to as "Municipal Utilities." The parties acknowledge and agree that it is essential that the Grantor's currently operating utilities remain in operation for the public health, safety and general welfare. 1.4 Rights of Grantor. Nothing in this grant of easement is intended to subordinate the rights of the Grantor, as they currently exist, to the county road that is allowed by this grant. The county road right -of -way easement is intended to co -exist with, and not limit, restrict, deny, deprive, forgo, hinder, or impede (1) Grantor's full access to its Municipal Utilities, its property, and its facilities, or (2) Grantor's right to operate, maintain, repair, replace, rebuild, move, remove, alter, or change Municipal Utilities, utility routes, facilities, and access ways. Nothing in this grant is intended to limit restrict, deny, deprive, forgo, hinder, or impede the Grantor's rights and privileges to use the Easement Property for the Grantor's Municipal Utilities, its property, and its facilities, to the same extent it has exercised those rights and privileges prior to the execution of this document. As an example, and not by way of limitation, Grantor reserves to itself all rights, title, interests, and privileges to have full, free and unlimited access to and within the Easement Property, and to use the Easement Property for the benefit of its Municipal Utilities, as the Grantor, in its sole discretion, deems necessary or expedient, even if doing so causes damage to the Elwha Valley Road or related structures and facilities. The Grantee, for itself and its successors, agrees that the Grantor shall not be liable to the Grantee, or it successors, assigns, contractors, grantees, permittees, or licensees for any injury loss, damage, or claim resulting from the exercise by the Grantor of the rights and privileges reserved herein or from the Grantor's activities authorized under this agreement; and the Grantee waives, releases, and covenants not to assert all such claims. By this provision, the parties intend to place on the Grantee all risk of loss, injury, or damage associated with the Elwha Valley Road within the Easement Property that might arise or occur from any cause whatsoever, including loss, injury, or damage that might originate in the Grantor's Municipal Utilities or from the Grantor's operation, maintenance, repair, replacement, rebuilding, removal, moving, or alteration of its Municipal Utilities or utility routes, facilities or access routes. 1.5 Rights of Third Parties. This Easement is subject to all valid interests of third parties noted in the records of Clallam County, Washington. Grantor makes no representations regarding the interests of third parties to the Easement Property. Subject to such pre existing interest and to the rights of the Grantor, the use of the Easement Property shall be exclusively for county road purposes. 1.6 Surveys, drawings, and Plans in executing this Easement. It is the Grantee's obligation to determine, create, and conduct boundary locations, surveys, plats, diagrams and/or legal descriptions. Grantor is relying upon the surveys, plats, diagrams and/or legal descriptions provided by Grantee. Grantee is not relying upon and Grantor is not making any representations about any boundary locations, surveys, plats, diagrams and /or legal descriptions. Page 12 SECTION 2. PURPOSE OF EASEMENT This Easement is for the establishment of a county road, pursuant to Ch. 36.75 RCW, to be entered into the county road system as the "Elwha Valley Road Use of the Easement Property is limited to those purposes set forth in RCW 36.75, for county roads, and is intended to co -exist with the current and any future Municipal Utilities of Grantor. SECTION 3. MAINTENANCE AND REPAIR OF IMPROVEMENTS 3. 1 Grantee's Activities. Grantee shall be entitled to carry out its duties and responsibilities under Ch. 36.75 RCW. In carrying out its duties and responsibilities under Ch. 36.75 RCW, however, Grantee shall be responsible, at its sole cost, for repairs to the above -noted Municipal Utilities of Grantor, arising from Grantee's activities, Such repairs shall be performed by Grantor, at Grantor's option. 3.2 Grantor's Activities. It is anticipated that Grantor will in the future need to repair or maintain its Municipal Utilities, existing or installed in the future. Other than the Grantee's activities described in section 3.1, the Grantor shall be responsible for the cost of the repairs or maintenance to the Municipal Utilities and to the graveled roadway to the extent that the road system existed prior to the beginning of any construction of the Elwha Valley Road. The Grantee shall be responsible for the cost of repair of the road system and for any improvements, including road system surfacing, that occur after said date. 3.3 Property. Grantee shall also not cause or permit any excavation or filling activity to occur on or under the Easement Property, without the approval of Grantor as set forth in Section 6, which approval shall not be unreasonably withheld. 3.3 Coordination of Scheduled Work. Each party shall notify the other prior to performing any scheduled work on or in the Easement Property, as set forth in this Agreement. The parties agree to coordinate scheduled construction and maintenance work within the Easement Property, and endeavor to mutually protect the public interest by minimizing impacts and interference with Grantee's county road and Grantor's utilities within the Easement Property with such construction and maintenance. Any roadway work performed near any of Grantor's utility facilities, may be inspected by Grantor. Similarly, work performed on Grantor's utilities that may impact the county road may be inspected by Grantee. Each party shall bear their own costs and expenses for such inspections. This shall not restrict either party from acting in an emergency, without notification. 3.5 Reservation To Facilitate Future Municipal Utilities Replacement. It is anticipated that Grantor will in the future need to replace the Municipal Utilities. Grantor reserves a four -foot strip within the Easement Property and along the southern shoulder of the county road for future replacement of Grantor's Municipal Utilities. This reservation is not intended to limit Grantor's right, consistent with their pre existing easements, to locate the Municipal Utilities elsewhere Page 13 should Grantor later determine this to be in the best public interest. In using this reserved area for Municipal Utilities, Grantor is responsible for backfilling and restoring the site grade following excavation. However, Grantor shall not be responsible for the cost of restoration of the roadway shoulder. SECTION 4. INTERFERENCE WITH OTHER USES OF EASEMENT PROPERTY Grantee shall exercise its rights under this Easement so as to minimize and avoid to the fullest extent reasonably possible interference with Grantor's use of the Easement Property for Municipal Utilities of Grantor. Any improvements, maintenance, or repairs by Grantee on the Easement Property shall be designed, built and executed so as to minimize and avoid possible interference with Grantor's use. SECTION 5. COMPLIANCE WITH LAWS Grantee shall at its own expense conform to all applicable laws, regulations, permits, orders, or requirements of any public authority affecting the Easement Property and the Pennitted Use. Upon request, Grantee shall supply Grantor with copies of permits or orders. SECTION 6. ROAD CLOSURES, CONSTRUCTION AND REMOVAL 6.1 Road Closures. Road closures for the county road as a consequence of construction, alteration, replacement, removal, or major repair of the county road or Grantor's improvements shall be conducted in compliance with Ch. 47.48 RCW. 6.2 Construction. Grantor's consent has been granted for the initial construction and maintenance of county road improvements as identified in, on, over, and across the Easement Property. Prior to any construction, alteration, replacement, removal or major repair of the county road, Grantee shall submit to Grantor plans and specifications which describe the proposed activity. Except in the case of emergency repairs, such work shall not commence until Grantor has approved those plans and specifications. Grantor shall have sixty (60) days in which to review the proposed plans and specifications. The plans and specifications shall be deemed approved unless Grantor notifies Grantee otherwise within the sixty (60) days. In the case of emergency repairs, Grantee shall notify Grantor within forty -eight hours of commencing county road repairs and shall provide Grantor with the proposed plans and specifications for the emergency road repairs, if requested. Grantee shall reimburse all costs and expenses incurred by the Grantor arising in connection with utility work that becomes necessary due to the Grantor's construction, alteration, replacement, removal or repair of the county road. 6.3 Removal. Upon vacation of the county road, at Grantor's option, Grantee shall remove or retire any road improvements located upon the Easement Property in accordance with the Page (4 1 provisions of this Subsection and shall restore the Easement Property to a condition substantially similar to the unimproved utility access road which existed prior to county road improvements. Notification. Prior to or within sixty (60) days after Grantee's road vacation, Grantor shall notify Grantee in writing whether it intends to require the removal of the improvements or whether the improvements may be abandoned in place. In the event Grantor fails to provide any notice of its intent, Grantee shall abandon the improvements in place. Removal. In those cases where the improvements shall be removed, Grantee agrees to provide a written plan, to be approved in writing by Grantor, for the removal of the road improvements. The plan shall identify a timeline for removal and restoration. Abandonment. In those cases where the improvements shall be abandoned in place, Grantee agrees to provide a written plan for abandonment. The plan shall identify a timeline for abandonment and shall identify the location of the improvements. Plans for Removal or Abandonment. Grantee shall provide the plan for removal or abandonment within sixty (60) days after the actual or deemed notification of Grantor's removal or abandonment requirement is provided. Grantor shall then have sixty (60) days in which to approve or reject the plan. Grantor's failure to respond within the tune allowed shall be deemed an approval of the plan. Costs to Remove or Abandon. Grantee agrees to undertake the removal and disposal of the improvements or the abandonment of the improvements at its sole cost and expense. Grantee agrees to perform any removal activities in a prompt and expeditious manner upon approval of any plans. Ownership of Abandoned Improvements. Any improvements that are allowed to be abandoned in place shall become the property of Grantor without any payment by Grantor. 6.4 Unauthorized Improvements. Improvements made on the Easement Property without Grantor's prior written consent or which are not in conformance with the plans submitted to and approved by Grantor shall be severed, removed, and disposed of by Grantee. If Grantee fails to remove an unauthorized improvement upon request, Grantor may remove it and charge Grantee for the cost of removal and disposal. SECTION 7. INDEMNITY Grantee shall indemnify, defend, and hold harmless Grantor, its employees, officers, and agents from any and all liability damages including damages to the Easement Property arising from causes of action, suits, claims, costs, fees, including attorneys fees, penalties or judgments of any nature, arising out of the use, occupation, or control of the Easement Property to establish, lay out, construct, alter, repair, improve, and maintain a county road by Grantee, by its contractors, subcontractors, invitees, agents, employees, licensees, or permittees, except as may arise solely out of the willful or negligent act of Grantor or Grantor's elected officials, employees, or agents. Page 15 To the extent that RCW 4.24.115 applies to Grantor, Grantee shall not be required to indemnify, defend, and hold Grantor harmless from Grantor's sole or concurrent negligence. Grantor shall indemnify, defend, and hold harmless Grantee, its employees, officers, and agents from any and all liability damages including damages to the Easement Property arising from causes of action, suits, and claims, brought or asserted by third parties, including costs, fees, attorneys fees, penalties or judgments of any nature, in favor of third parties, arising out of the use, occupation, or control of the Easement Property to establish, lay out, construct, alter, repair, improve, and maintain its municipal utilities and facilities, by its contractors, subcontractors, invitees, agents, employees, licensees or permittees, except as may arise solely out of the willful or negligent act of Grantee or Grantee's elected officials, employees, or agents. To the extent that RCW 4.24.115 applies to Grantee, Grantor shall not be required to indemnify, defend, and hold Grantee harmless from Grantee's sole or concurrent negligence. SECTION 8. NOTICE Any notices required or permitted under this Easement may be personally delivered by facsimile machine, but shall also be mailed by certified mail, return receipt requested, to the following addresses or to such other places as the parties may direct in writing from time to tune: If to the Grantor: City Manager City of Port Angeles 321 East 5th Street P.O. Box 1150 Port Angeles, WA 98362 -0217 If to the Grantee: County Administrator Clallam County 223 E. 4th Street, Suite 4 Port Angeles, WA 98362 Page 16 A notice shall be deemed given and delivered upon personal delivery upon telephone confirmation of facsimile delivery or three (3) days after being mailed as set forth above, whichever is applicable. SECTION 9. ASSIGNMENT Grantee shall not assign its rights in the Easement nor grant any rights or franchises to third parties under Ch. 36.55 RCW, without Grantor's prior written consent. Grantor reserves the right to change the terms and conditions of this Easement upon its consent to any assignment. SECTION 10. CAPTIONS The captions in this instrument have been inserted solely for convenience of reference, are not a part of this Easement Agreement, and shall have no effect upon construction or interpretation. SECTION 11. SUCCESSORS AND ASSIGNS This Easement shall be binding upon and inure to the benefit of the parties their successors and assigns and shall be a covenant running with the land. SECTION 12. RECORDATION. The Grantee shall record this Easement Agreement at the Clallam County Auditor's Office in Port Angeles, Washington, and pay all recording fees and incidental closing costs. SECTION 13. ESTABLISHMENT Pursuant to Ch. 36.75 RCW, this agreement shall become effective upon ratifying Resolution of the Clallam County Board of Commissioners establishing the Elwha Valley Road as a county road. SECTION 14. TIME IS OF THE ESSENCE TIME IS OF THE ESSENCE as to each and every provision of this Easement. SECTION 15. APPLICABLE LAW AND VENUE Page 17 This Easement shall be interpreted and construed in accordance with and shall be subject to the laws of the State of Washington. Any reference to a statute shall mean that statute as presently enacted or hereafter amended or superseded. Venue for any action arising out of or in connection with this Easement shall be in the Superior Court for Jefferson County, Washington. SECTION 16. MODIFICATION Any modification of this Easement must be in writing, and properly signed or adopted by the parties. Neither Grantor nor Grantee shall be bound by any oral representations or stateinents. SECTION 17. SURVIVAL. The indemnification obligations contained in Paragraph 7 shall survive termination of this Easement Agreement. SECTION 18. ENTIRE AGREEMENT This writing incorporates the entire agreement of the parties relating to the subject matter hereof. There are no other agreements or understandings relating to the subject matter of this document. THIS AGREEMENT requires the signature of all parties and is executed as of the date of the last signature below, and shall require ratification by Grantee, as set forth above: Clallam County [subject to ratifj'ing resolution] B Dated: City of Port Angeles, B Dated: Approved as to form: William E. Bloor, City Attorney Page 18 Approved as to form, only: Clallam County Prosecuting Attorney Douglas E. Jensen, Chief Civil Dep. Attest: Janessa Hurd, City Clerk STATE OF WASHINGTON COUNTY OF CLALLAM GIVEN under my hand and official seal this Page 19 ss. Attest: Trish Holden, CMC, Clerk of the Board I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Mayor of the City of Port Angeles, to be the free and voluntary act of such party for the uses and purposes mentioned in this document. _day of ,2011. Notary Public in and for the State of Washington. Residing at My Commission Expires: PARCEL D OHN.S ~TC7N Tand Surveying ELWHA VALLEY ACCESS ROAD EXHIBIT Z 540 W. Eighth Street, Port Angeles, WA 360.452.0237 360.452.0238 fax www.Iohnstonlandsurveying.com 05/02/2011 Page 1 of 3 THAT PORTION OF THE NORTHEAST QUARTER AND THE NORTHWEST QUARTER OF SECTION 2, TOWNSHIP 30 NORTH, RANGE 7 WEST, W.M., DESCRIBED AS FOLLOWS THE SOUTH 90 FEET OF THE 100 FOOT WIDE FORMER RIG T -OF -WAY 0i' TkE CHICAGO, MILWAUKEE, ST, PAUL AND PACIFIC RAILROAD LYING WESERLY OF LOWE=ELWHA ROAD, AS SHOWN ON THE CITY OF PORT ANGELES SURVEY RGRDED IN VOLUME 56 QFnSURVEYS, PAGE 40, AND THE BOUNDARY LINE AGREEMENT SURVEKRCORDED IN VOLUME 67'O,F'SURVEYS, PAGE 20, RECORDS OF CLALLAM COUNTY, WASHINGTON::'!.: TOGETHER WITH THE SOUTH 90 FEET OF THE 100 FOOT'WIDEFOIMER RIGHT -OF -WAY OF THE CHICAGO, MILWAUKEE, ST. PAUL AND PACIFIC RAILROADID(SO AS FOLLOWS: BEGINNING ON THE NORTH LINE OF SAIIC(P0,13MER RIGHT` J £W AT THE WESTERN MOST REBAR WITH CAP STAMPED "NTI- JOHNSTON PL$=:37531' AS SHOWN 0'{ ,,N D CITY SURVEY, FROM WHICH A POINT OF CURVATURE OF SAID NORTH L'II`lE BE'AW ;SOUTH 70 ==01," EAST, A DISTANCE OF 2154 26 FEET, THENCE NORTH 70 °51'05" WI COIif -INONG ALONG AID NORTH LINE, A DISTANCE OF 231.18 FEET TO THE BEG !KING OF A TANGENT Gt.IRVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 7204.46 FEET THENCE WESTERLY, ALONG SAID'CUIVE THROUGH' A CENTRAL ANGLE OF 02°0021", AN ARC LENGTH OF 252.21 FEI TO "POINT )AND THE TERMINUS OF THIS DESCRIPTION. TOGETHER WITH A STI P ABUTTINGVHE NORTH LIME OF THE 100 FOOT WIDE FORMER RIGHT -OF- WAY OF THE CHICAGO,`M11LWAUI E .S,T-Pk1,L,AND PACIFIC RAILROAD DESCRIBED AS FOLLOWS BEGINNING AT,T "POINTS)( THENCE CONTINUING ALONG SAID NORTH LINE ON A CURvOnto VF NORTH RLY AND HAVING RADIUS OF 7204.46 FEET THROUGH A CENTRALANGLE OF '01f,04'39 •AN:ARC LENGTH OF 135,49 FEET TO THE,P? NT OF TANGENCY:-/ S SHOWN,ON VOLUME 69 OF SURVI S, PAGE 46; THENtE;NORTF—f 6'05" WEST, A DISTANCE Senn OF 370.1.O.FEET TO A TANGE'I :CURVE; G'ONCAVE SOUTHERLY AND HAvilorA RADIUS OF 517424 FEET; THENCE WESTERLY, ALONG SAID URVE THROUGH CENTRAL ANGLE OF 02 °32'00 AN ARC LENGTH JF 255.44 Ft-t; THENCE NORTH 70 °18'05" WEST, A DISTANCE -QE 5040; THENCE SOUTHERLY AT RIGHT ANGLES, 50 FEET TO`- „THEGENTERLINE OF SAID FORMER RIGHT OF WAY, THENCE SOUTH 65 °35'03” EAST, A DISTANCE OF 81096 FEET TO A POINT OPPOSITE AND 90 FEET DISTANCE FROM SAID 'POINT X THENCE NORTHERLY ON A RADIAL LINE, NORTH t;�, 21 °09'16" EAST, 90 FEET TO "POINT X" AND THE TERMINUS OF THIS DESCRIPTION. ALL BEARINGS AND DISTANCES IN THIS DESCRIPTION ARE BASED ON THE WASHINGTON COORDINATE SYSTEM GRID, NORTH ZONE, DATUM OF 1983, ADJUSTED IN 1991 PER VOLUME 40 OF SURVEYS, PAGE 27, RECORDS OF CLALLAM COUNTY, STATE OF WASHINGTON. Page 2 May 2, 2011 PARCEL E ALL THAT PORTION OF THE NW 1/4 OF THE SW 1/4 OF THE NE 1/4 OF SECTION 2, TOWNSHIP 30 NORTH, RANGE 7 WEST, W.M., CLALLAM COUNTY, WASHINGTON LYING SOUTHERLY OF THE RIGHT OF WAY OF THE FORMER CHICAGO, MILWAUKEE, ST. PAUL AND PACIFIC RAILROAD; SITUATE IN CLALLAM COUNTY, SATE OF WASHINGTON. f 1 'A 4. N sa 11 11411111111111111ag1111 �ARIaE�E, III IIIII�il WIDTH 11 111 11* SOUTH 90' TO EAST.- NORTH 90' TO WEST SE, NW P pARC NW, SW, WE SW, SW, NE PJE, SW, NE ARGEI- D Section 2 EVA Right of Way Exhibit 7 mil. SE, NE SOUTH 40' 1 After Recording Return to City Clerk City of Port Angeles 321 East Fifth Street Port Angeles, WA 98362 Tax Parcel Numbers: Abbreviated Legal: QUIT CLAIM DEED Grantor: Lower Elwha Klallam Tribe, a federally recognized tribe, also known as the Lower Elwha Tribal Community, for and in consideration of mutual benefit, conveys and quits claim to the Grantee: City of Port Angeles, the following described real estate situated in the County of Clallam, State of Washington, together with all after acquired title of the Grantor herein, the following described real estate: All that portion of the NW 1/4 of the SW Y4 of the NE 1/4 of Section 2, Township 30 North Range 7 West, W.M., Clallam County, Washington lying southerly of the Right of Way of the former Chicago, Milwaukee, St. Paul and Pacific Railroad; Situate in Clallam County, State of Washington. PTN 073002 1300050 PTN NW SW NE S2, T30N, 7 W, W.M. lying southerly of Milwaukee Railroad Grade Grantor, Lower Elwha Klallam Tribe Date Frances G. Charles, Chairwoman STATE OF WASHINGTON )ss. COUNTY OF CLALLAM On this day personally appeared before me, Frances G. Charles, Chairwoman of the Lower Elwha Klallam Tribe, to me known to be the individual described in and who executed the within and foregoing instrument, and acknowledged that she signed the same as her free and voluntary act and deed, for the uses and purposes therein mentioned and as Personal Representative of said estate. SUBSCRIBED AND SWORN to before me this day of 2010. NOTARY PUBLIC in and for the State of Washington. Residing at My commission expires J)ORT NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: May 10, 2011 To: Utility Advisory Committee From: Joey Currie, Residential Energy Analyst Subject: Simple Steps, Smart Savings Promotion Services Agreement Project Order -03.3 Summary: The City has been offered an amendment to our Simple Steps, Smart Savings Promotion Agreement to deliver energy efficient compact fluorescent lamps and showerheads to its low- income senior citizens and low- income disabled customers. 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 sign Project Order -03.3 to the Simple Steps, Smart Savings Promotion Services Agreement, and to make minor modifications to the agreement if necessary. Background /Analysis: The proposed amendment (Project Order -03.3) would include the installation of approximately 8,400 compact fluorescent lamps and 330 low -flow showerheads to 300 of the Cities' low- income senior citizens and low income disabled customers that qualify for utility discounts. These products will lower the electrical demand for our utility discount customers through reduced consumption. Another benefit of the amendment will be audits of the homes where these products are to be installed. Last month the Utility Advisory Committee asked staff to contact the Olympic Community Action Program (OlyCap) to determine if the audits would duplicate efforts, but learned that OlyCap only provides audits upon request and is unable to share the audit findings with the City. The audits will provide the City with valuable information about what might be done to help these customers further reduce their energy costs and by pointing out any energy inefficiencies such as poor insulation or outdated windows. 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 sign Project Order -03.3 to the Simple Steps, Smart Savings Promotion Services Agreement, and to make minor modifications to the agreement if necessary. Attachment: Proposed Simple Steps, Smart Savings Promotion Services Agreement Project Order -03.3 N \UAC \Final \Simple Steps, Smart Savings Promotion Agreement Rev 1 docx N..■•• Stir•,..,.. Project Order Title Simple Steps, Smart Savings TM— Fluid Run Direct Install, Option 3 Project Order -03.3 Fluid's Authorized Representative Megan McCabe 503.808.9003x106 mmccabei fluidms.com EXHIBIT B TO PSA This Project Order is entered into pursuant to the terms and conditions of and as an amendment to the Promotion Services Agreement between the City of Port Angeles and Fluid Market Strategies, Inc. (Fluid), dated May 19, 2010. Fluid's Objective To conduct home auditing and implement a successful direct install project in select homes within the City of Port Angeles service area in accordance with this document and in conformance with BPA's direct install program requirements Scope of Services The Fluid run direct installation portion of the Simple Steps, Smart Savings program will increase adoption and use of energy saving products by offering the City of Port Angeles CFL installation and energy saving showerhead distribution services An installation fee and a $0.35 administration fee will be applied to all CFLs and showerheads provided to City of Port Angeles utility customers in accordance with this Project Order. Fluid will comply with BPA's current Implementation Manual for direct install measures pertaining to this Project Order. Administrative and Staff Support Services from Fluid will include development, delivery and facilitation of the direct installation portion of the Simple Steps, Smart Savings promotion as outlined in Attachment A Direct Install Proposal. Fluid's installation team members will: Participate in an orientation detailing customer service expectations, installation best practices and outlining the goals of the promotion. Secure needed CFL and showerhead product supply, and manage product distribution and inventory. Recruit select City of Port Angeles utility customers for participation and schedule customer services Perform installations in compliance with local and state regulations. Collect audit data and track activity on the Home Snapshot Audit form (Attachment B). Provide the City of Port Angeles with reports of project activity and hardcopies of audit forms. Allow the City of Port Angeles representatives to work closely with Fluid's administration of this program to ensure the best possible public relations and the best chance of a successful outcome for Fluid and the City of Port Angeles. Marketing Services Fluid will provide and operate a consumer facing website that provides information about promotional products as well as a one page summary of promotion related services offered by the City of Port Angeles. A customer support telephone number will be provided and maintained by Fluid and made available to utility customers for services under this Project Order. Fluid will provide informational materials, including Home Energy Savings Steps brochures and Showerhead Installation Instructions, to utility customers who receive direct install services. Templates will be made available to the City of Port Angeles for utility bill inserts, newspaper ads, customer direct mail letters, door hangers, and newspaper copy /web graphics. Additionally, Fluid is available to design custom marketing materials as needed. The scope of any additional custom marketing will be detailed in a Change Order as an attachment to this document. Reporting Minimum reporting requirements will include: The City of Port Angeles will receive electronic reports of direct installation and auditing activity once a month. The report will document the information collected on Attachment B. Upon request, Fluid will conduct quality control efforts through select site verification to ensure customer satisfaction and proper product installation. Fluid will meet reporting standards enabling the City of Port Angeles to obtain reimbursement from BPA for qualifying PSA EXH B 1 PSA EXH B work performed under this Project Order. Additional reporting requirements will be communicated to Fluid as they are identified. Incorporated Documents (Note: In the event of any conflict between the terms and conditions contained in this Project Order and those set forth in any Incorporated Documents, the terms and conditions of this Project Order shall prevail.) Attachments A (Direct Install Proposal) Attachments B (Snapshot Audit Form) Compensation for the Services Fluid shall be compensated for the Fluid Run Direct Install Services described above as follows: Product Description CFL Twist 13 -15 Watt CFL Twist 18 -20 Watt $0.35 1 $2.25 CFL Twist 23 -26 Watt $0 35 1 $2.00 CFL Reflector $0.35 1 $2.25 CFL Globe $0.35 1 $2.25 Showerhead $0.35 1 $8.00 For selected product only. Accepted By: City of Port Angeles Please Print Name Signature Title Administrative Fee Installation Fee $0.35 1 $2.25 Date Product Cost* $1.19 $1.39 $1.65 $2.88 $2.88 $3 50 Project costs for the City of Port Angeles have reached a maximum amount of or A maximum of utility customer homes are retrofitted within the City of Port Angeles service area. Total Cost Per Unit $3.79 $3.99 $4.00 $5 48 $5.48 $11.85 In accordance with the unit prices listed in the chart above the City of Port Angeles commits to fund this direct install project until one of the following is achieved: Any change in the scope of services in this document will be detailed in a written Change Order signed by both parties and attached to this agreement. Time of Performance for the Services Commencement Date Completion Date ,2011 ,2011 Except as provided herein, all terms and conditions of the Master Promotion Services Agreement referenced above shall be incorporated into and become a part of this Project Order. This Project Order shall remain in effect unless terminated by either party at any time by giving a thirty (30) day notice to the other party or meeting completion obligations in this Project Order Notice shall be effective when received Approved by: Fluid Market Strategies Please Print Name Signature Title Date 2 PORTANGELES W A S H I N G T O N U.S. A Utility Advisory Committee Memo Date: May 10, 2011 To: Utility Advisory Committee From: Tom McCabe, Solid Waste Superintendent Subject: Benefit Dump Day Report Summary: Participants in the 2011 Benefit Dump Day donated $5,614 to the Port Angeles Food Bank. The April 17th event produced a total of 539 vehicle trips disposing of 179.92 tons. Of the total tonnage, 23% was diverted to metal, tire, and yard waste recycling. Recommendation: For information only, no action requested. Background /Analysis: The Solid Waste Division sponsored Benefit Dump Day for all Clallam County residents on Sunday, April 17, 2011. The number of vehicles and tonnage was down 22% from 2010, but similar to 2008 and 2009 numbers. A waiting line developed at the gate before opening at 9:00 am, but was gone by 9:20 am. Participation was steady all day. A total of 43 staff and volunteers assisted with this 6 -hour event. City staff checked vehicle loads, managed the metal pile, and weighed vehicles at the scales. A County staff person was stationed at the used oil /antifreeze area. Police volunteers helped with vehicle checking and traffic control. The Food Bank staff collected donations. Waste Connections staff directed traffic and helped unload vehicles at the Transfer Station. The 2011 reduction in participation appears to be a regional experience. The City of Sequim held a separate collection event on April 15 -16 at their Public Works Utility Yard. Waste was accepted from City of Sequim residents with a coupon or I.D. The City collected 35.8 tons of garbage and 4.33 tons of metal. This is less than half of what was collected in 2010. Benefit Dump Day 2008 -2011 Summaries Year Vehicle Total Tons Transfer Recycling Tons (metal, tires, Cash* Trips Received Station Tons batteries, yard waste) Contribution 2008 1 529 1 163.30 1 93.78 1 69.22 1 $5,619 1 2009 1 550 1 179.30 1 129.36 1 49.95 1 $5,480 1 12010 1 688 1 229.39 1 152.85 1 76.54 1 $7,381 12011 1 539 1 179.92 1 139.41 1 40.51 1 $5,614 1 Minimum donation $10 since 2008 some donors elected to pay more Utility Advisory Committee Benefit Dump Day Report Page 2 Demographic of Users Location 1 City of P.A. 1 Sequim 1 Forks 1 East County 1 West County 1 Totals Waste Materials Year 1 2008 1 2009 1 2010 1 2011 Event Costs 2011 Vehicle Trips 20081 2009 20101 251 1 268 289 1 241 27 161 -1 11 176 1 172 253 1 78 1 83 129 1 5291 550j 6881 Average Load Size 617 pounds 1 652 pounds 1 667 pounds 1 668 pounds 1 2011 215 10 1 203 110 539 Refrigerators Tires (counted at scales) (counted at scales) 186 units 1 95 units 1 79 units 1 51 units 1 Description Employees (10 Public Works and Utilities staff members) Advertising Peninsula Daily News Sequim Gazette Sam-Can Rental (2) Freon Removal 51 units $20 /unit Tire Recycling (261 tires) 4.68 tons $92.89/ton Hauling and Disposal Fee 139.41 tons @$50.53. /ton Total 2008 78.47 6.70 56.85 21.28 163.30 Solid Waste Tons 2009 2010 89.22 92.18 10.16 4.87 0.08 52.10 89.40 27.82 42.86 179.30 229.39 718 1 217 1 367 1 261 2011 68.69 2.16 0.64 72.07 23.36 179.92 Batteries 66 1 119 1 83 1 41 1 Cost 2011 $2, 376 $350 $220 $1,071 $435 $7,045 $11,497 I ORTNGELES WA S H I N G T O N G T O N, U.S.A. Utility Advisory Committee Memo Date: May 10, 2011 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Utility Rate Studies Calendar Summary: A schedule has been prepared to inform the Utility Advisory Committee about upcoming dates and action items related to this year's utility rate studies. Recommendation: For information only, no action requested. Background /Analysis: In 2008, cost of service studies were completed for the water, wastewater, solid waste collections and transfer station utilities by FCS Group. In 2009, a cost of service study was completed for the electric utility by EES Consulting. This year rate studies will be completed by staff for all utilities (electric, water, wastewater, solid waste collection, transfer station, and stormwater). The schedule including dates and action items is provided below for more information. We anticipate that the September Utility Advisory Committee may take more time than normal to review the findings and recommendations for each utility. 2011 Utility Rate Studies Schedule Dates Action Items September 13, 2011 Presentation to the Utility Advisory Committee September 20, 2011 City Council sets public hearing October 4, 2011 Presentation to the City Council; open pubic hearing October 11, 2011 Utility Advisory Committee recommendation to City Council October 18, 2011 Continue public hearing, close public hearing, adopt rates January 2, 2012 New rates in effect N \UAC \Final \Utility Rate Studies Calendar doc P ORT A NGEL ES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: May 10, 2011 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Tier 2 Power Supply /Strategic Planning Workshop Summary: Similar to a decision that was required to be made in 2009, the City must make a Tier 2 power supply decision by the end of this September. Strategic planning for the Electric Utility will also be included at next month's workshop. Recommendation: For information only, no action requested. Background /Analysis: In 2009, the Northwest Public Power Association (NWPPA) held a workshop for the Utility Advisory Committee and City Council for the first Bonneville Power Administration (BPA) Tier 2 decision. The first Tier 2 decision was the BPA short-term option for power supply beginning this October through September 2013. Combined with selection of the BPA Tier 2 short-term option, City Council concurred with a "Iron Man Proposal" to increase the energy conservation program, negotiate a power sales agreement with Nippon Paper Industries, prepare a retail tiered rate design, implement an advanced metering infrastructure system, monitor the opportunity to participate in a biomass cogeneration project, and revisit the opportunity of a City -owned landfill gas generation project. By the end of this September, the Utility Advisory Committee and City Council will need to decide which Bonneville Power Administration Tier 2 option it will select to meet future power supply needs beginning October 2014 through September 2019. Beyond power supply, it's timely to complete strategic planning for such areas as conservation, new large single loads, telecommunications, and the advanced metering infrastructure system. As a result of the workshop, staff is seeking key performance objectives to be established and prioritized for the Electric Utility. For the benefit of Utility Advisory Committee members that did not participate in the 2009 workshop, a copy of the "Iron Man Proposal" is attached. A draft agenda for next month's workshop is also attached that will be further discussed at today's meeting. N \UAC \Final\NWPPA Power Supply Strategic Planning Workshop docx Northwest Public Power Association Tier 2 Power Supply /Strategic Planning Workshop Agenda Day 1 Tuesday, June 7, 2011 Power Supply /Strategic Planning Topics 1 Introductions Today's Objectives Arnie Winkler 9:OOAM 2 Power Supply /Strategic Planning Setting The Stage Larry Dunbar 9:10AM 3 BPA Tier 2 FY2012 -2028 Load Forecast Phil Lusk 9:15AM 4 BPA Tier 2 Product Options, Notices Commitments Shannon Greene 9:30AM Break 10:OOAM 5 Nippon Paper Industries Co- Generation Project Update Harold Norlund 10:15AM 6 Advanced Metering Infrastructure System Considerations Luis Pizano 10:30AM 7 Telecommunications Considerations Lee Afflerbach 11:OOPM 8 BPA Tier 2 Product Options, Other Considerations Terry Mundorf 11:30AM Lunch (Jack Pittis Conference Room) Finance, Rate Design, Conservation, and Demand 9 Response Considerations Lunch, along with refreshments at morning breaks, will be provided. Noon Gary Saleba 1:OOPM New Large Single Loads, and Economic Development 10 Considerations Phil Lusk 2:OOPM 11 Other Electric Utility Considerations Larry Dunbar 2:15PM 12 Power Supply /Strategic Planning Summary Terry Mundorf 2:30PM Adjourn 3:OOPM Northwest Public Power Association Tier 2 Power Supply /Strategic Planning Workshop Agenda Day2 Wednesday, June 8, 2011 Power Supply /Strategic Planning Topics A Today's Objectives B Tier 2 Power Supply Staff Proposal Continue Reliance on BPA Option A Diversify from BPA Option B Break D Group Reports Elliot, Perry, Mania E Transformation of 3 Reports into 1 Proposal Lunch (Jack Pittis Conference Room) F Key Performance Objectives (KPO) G Adding, Deleting, Prioritizing KPO's Adjourn Elliot, Collins, Reed Collins, Nelson, Downie Lunch, along with refreshments at morning breaks, will be provided. Arnie Winkler Larry Dunbar Policy- Makers Form 3 Groups Refine Proposal Di Guilio, 9:OOAM 9:05AM 9:15AM Kidd, Reed 10:30AM Group Leaders 10:45AM Arnie Winkler Group Facilitation 11:15AM Noon Arnie Winkler Group Facilitation 1:OOPM Policy- Makers Form 3 Groups 1:15PM Refine KPO's Perry, Nelson, Kidd Di Guilio, Mania, Downie Transformation of 3 Group KPO Reports into 1 KPO Arnie Winkler H Proposal Group Facilitation 2:15AM 3:00PM Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility Tiered Rates Begin October 1, 2011. By November 2, 2009, the City is responsible for choosing how to provide for its future energy growth. New resources and technology, and additional conservation are needed. Page 1 10/13/2009 The choices made must ensure a reliable low -cost energy supply. The City needs to notify BPA of its above -High Water Mark election by November 2, 2009, which is required by the Bonneville Power Administration Power Sales Agreement. Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility 1. Straw Stone -Iron Man Proposal Purpose. This is a business proposal that generated a large number of ideas for the solution of our initial Tier 2 power supply problem. The Straw and Stone Man proposals were intended to generate discussion of its advantages and disadvantages and to provoke the creation of a new and better proposal. As part of the June 3 -4, 2009 workshop, the "Straw Man" proposal was refined into a "Stone Man" proposal by group consensus. Based on additional Utility Advisory Committee guidance on July 14, 2009 and September 8, 2009, the Straw and Stone Man proposals evolved into this "Iron Man" proposal. 2. Tier 2 Power Supply Problem Statement. On November 18, 2008, City Council approved a Power Sales Agreement with the Bonneville Power Administration (BPA). The new Power Sales Agreement will commence on October 1, 2011 and conclude on September 30, 2028. The primary change in the new Power Sales Agreement is a shift from average embedded melded rates to a Tiered Rate Methodology (TRM). TRM is composed of a two -level pricing construct in which Tier 1 supply is limited to the output of the federal based system, and the rates for which are based on the cost of those resources. The output of the federal based system is anticipated to diminish during the term of the agreement which will have the same effect as increasing the City's Tier 2 power supply needs. Tier 1 will serve the City's current Toad. Tier 2 serves load in excess of that served by Tier 1 at a rate (or rates) based on the cost of new resources At the time of execution of the new agreement it was anticipated that about 97% of the City's power supply would initially be provided by BPA under the Tier 1 rate. It was understood that Tier 1 costs would be similar to average embedded costs at that time. We expected the remaining 3% of the City's power supply needs could be provided by BPA under a Tier 2 rate alternative. Based on the most recent BPA Toad forecast and transition period high water marks, the City's Tier 2 power supply needs will begin in October of 2011 in the amount of 0.145 aMW or 0.2% increasing to 0.569 aMW in October of 2012, and 1.026 aMW or 1.2% of the City's power supply in October of 2013. Tier 2 loads below 1.0 AMW will be covered under load shaping charges. Note the significant difference between what was anticipated upon execution of the new Power Sales Agreement and the recent BPA load forecast. The City's Tier 2 exposure was delayed two years and is about one -third of the initially anticipated amount. Anticipating historical customer growth rates, it is anticipated that within twenty years 8% of the City's power supply may fall under the Tier 2 power supply with a projected wholesale power supply cost increase of 11 A Tier 2 commitment to BPA must be provided by November 2, 2009, which would cover the 3 -year period from October 2011 through September of 2014 or a longer term depending on the rate alternative selected. Power supply resources other than BPA can be used to serve all or part of the City's Tier 2 Toads. Page 2 10/13/2009 Tier 2 Power Supply Iron Man Proposal City of°Port Angeles Electric Utility Similar considerations need to be made in the future with the next decision due prior to September 30, 2011 for the 5 -year period of October 2014 through September 2019. 3. Tier 2 Power Supply Options. There are three general options available to the City to satisfy its Tier 2 power supply including: 1) continued reliance on BPA; 2) diversify all Tier 2 load to non -BPA supply; and 3) do a portion of Tier 2 with BPA and the remainder with non -BPA power supply. The options are recommended to be separately applied to the City's distribution customers (e.g., residential and commercial rate classes) and the industrial transmission rate class. Although the BPA Power Sales Agreement does not require the City to allocate Tier 1 or 2 power supply to its residential, commercial, and industrial transmission rate classes, allocations are considered in the following options and alternatives. 3.A. Continue Reliance on BPA for Part or All of Tier 2 Power SuoDIv. This option can include the Short -Term, Load Growth, and Vintage rate alternatives. If the Short-Term rate alternative is selected, a future decision will need to be made prior to September 30, 2011 to diversify or continue with that selection or the Load Growth or Vintage rate alternative. The main advantage of this alternative is that it's simple and BPA would have more capability than the City to obtain favorable pricing. This alternative limits the City's risk to the rates that BPA sets every two years. The key disadvantage is that similar to the approximately $20 million expense for today's purchased power, the future Tier 2 wholesale power purchases will flow out of Port Angeles providing no local economic benefits. The estimated net present value of this option based on BPA indicative pricing and a market forecast for the contract term is $30.8 million, which need to be allocated to distribution customers and the industrial transmission rate class. The anticipated cumulative wholesale Tier 2 power supply increase is estimated to be 11.2% in year 2028. The anticipated wholesale Tier 2 power supply increase is estimated to be 0.9% in 2014. The initial Tiered Rates will not be set by BPA until some time in 2011. Another disadvantage is that there would be minimal, if any, wholesale rate signal for conservation since the majority of costs would be take /don't take but pay. However, a load shaping credit may be available, which BPA will be set every two years, that could provide a conservation rate signal. After each two year rate period conservation could reduce Tier 2 needs. The Tier 2 rate alternatives could be the same, different or a combination for the City's distribution customers (e.g., residential and commercial rate classes) and industrial transmission rate class. For example, the City could select 0.622 aMW for Short-Term and 0.300 aMW for Load Growth for distribution customers and 0.104 aMW for Short Term for the Industrial Transmission rate class. Page 3 10/13/2009 Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility 3.B. Diversify from BPA. This option can include a combination of any BPA rate alternative (1 -3 below) with any other alternative (4 -8 below). For example, the City can select the Short-Term Tier 2 rate alternative for part of its Tier 2 needs and additional conservation within the City for the balance of its Tier 2 needs. All loads above Tier 1 in excess of 1.0 aMW must be either served by a non federal resource, a Tier 2 rate alternative, or a combination of both. There are several alternatives that should be carefully considered as part of decision making. A brief summary of each alternative and its advantages and disadvantages is provided below. The alternatives are not mutually exclusive, combining alternatives to form a resource portfolio are possible. 3.B.1. BPA Short-Term Tier 2 Rate Alternative. This rate alternative may or may not provide the least cost approach in the long -run and will depend on the market. Selection of this alternative could provide the City until October of 2014 to develop its initial 0.922 aMW Tier 2 resources for the distribution system. The main advantage of this BPA alternative is that it provides the most flexibility of all BPA Tier 2 rate alternatives and additional time. 3.B.2. BPA Load Growth Tier 2 Rate Alternative. Depending on market conditions at the time of selection, which will include BPA resetting the rate every two years in a rate case proceeding, this rate alternative may provide the least cost approach in the long run. If the Short-Term rate alternative is initially selected the City could decide to select the Load Growth alternative as part of its September 30, 2011 decision. If this alternative is initially selected for some or all of the City's Tier 2 needs, the City can elect to use other options at a later date but cannot remove load actually served by BPA under this option through the term of the Power Sales Agreement ending in year 2028. With proper notice the City could exercise a one -time termination of future new purchases under this alternative. Liquidated damages may apply. 3.B.3. BPA Vintage Tier 2 Rate Alternatives. This wind based resource alternative should only be considered if the City was required by Federal or State law to develop a renewable resource portfolio. The Vintage alternatives (market with least cost resource and least cost resource) are not going to be initially available. Selection of the Short-Term rate alternative would preserve future consideration of Vintage rate alternatives. 3.B.4. Additional Conservation. Perhaps the most flexible, least risk, and lowest cost power resource is pursuit of additional conservation. The Conservation Potential Study indicates there are significant conservation "negawatts" available that have the same effect as traditional generation resources. This alternative by itself could provide the initial 0.922 aMW Tier 2 resources for the distribution Page 4 10/13/2009 Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility system. Conservation by itself may not be able to satisfy all of the City's Tier 2 power supply needs during the term of the new Power Sales Agreement. 3.B.5. Enerav Northwest Purchase Power Aareements. The advantage of this alternative is risk sharing and development, operation and maintenance of large commercial facilities by an experienced provider. Possible disadvantages could be transmission, no local economic multiplier benefits, and reliance on a single generation source. 3.B.6. Enerav Northwest Landfill Gas Generation. The key advantage of this alternative is City ownership and control of a resource within the City that provides local economic benefits. The City could partner with Energy Northwest to develop, operate and maintain this facility, which would provide renewable energy credits. The main disadvantages are that gas production declines over time, the cost of integrating the resource into the BPA supply, and the City would have capital and operating risk similar to its Morse Creek hydro project. 3.B.7. Biomass Coaeneration. The advantage of this alternative may be non City investment in a project that could provide local economic benefits. The main disadvantages of cogeneration is a primary focus by the customer to serve production load versus utility load, and capital, operating and fuel risks. The City could partner with Energy Northwest to further consider a project. 3.B.8. Market Purchases. Compared to the Short -Term and Load Growth rate alternatives, the main disadvantage of this alternative is that the City's Tier 2 needs by itself have little market influence; Bonneville's rate alternatives would likely provide better pricing. 4. Stone Man Proposal. Staff recommends that the City minimizes its Tier 2 power purchases from the BPA. The High proposal would require several City actions between now and September 30, 2014. As part of the recommendation, staff believes that time is needed to develop a "no regrets" resource portfolio, hence a continuing need for Tier 2 Short-Term power supply from the d BPA. Several strategic goals should be m considered for the Electric Utility to maximize local benefits and minimize risks of the Tier 2 power supply. Page 5 10/13/2009 High Benefit Low Risk "No Regrets" Low Benefit Low Risk "Bad Outcome" High Benefit High Risk "A Big Bet" Low Benefit High Risk "Worst Outcome" Low High Risk Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility The Iron Man proposal includes the following: 4.A. Selection of the BPA Short -Term Tier 2 rate alternative for the distribution system and industrial transmission rate class. This will continue to satisfy the City's overall Tier 2 power supply through September of 2014. 4.B. Proceeding with expanded residential, commercial, and City facility conservation programs consistent with the Conservation Potential Study "Base" recommendation (0.32 aMW per year) to satisfy remaining Tier 2 power supply needs for the distribution system through 2014. Staff will include an expanded conservation program that would double City efforts in the 2010 proposed budget, and would be maintained through 2014 at the same level. Staff also recommends that the City facilitate any industrial transmission rate class initiated conservation programs that qualify for BPA program funding. Anticipating the expanded conservation program costs through 2014 are paid using cash versus debt financing, the anticipated rate impact is estimated to be 1.8% or $1.55 per month per residential customer. The anticipated cost of conservation is $30 per MWh and the BPA indicative price for the Tier 2 Short -Term rate alternative is $54 per MWh. 4.C. Continue to have a wholesale rate structure for the industrial transmission rate class that's similar to today. A power sales agreement has been negotiated with the industrial rate class. The agreement includes the Short- Term Tier 2 rate alternative and other items such as customer charges, payment assurances, and billing procedures. Similar to the November 2, 2009 deadline, the City must make another Tier 2 power supply decision by September 30, 2011 for the period of October 2014 September 2019. Staff recommends that a power supply workshop be held in early 2011 to reassess its Tier 2 power supply needs. The initial Tier 1 2 rates and Resource Support Services should be known at that time, which could be a guidepost for a future strategy. At that time we should reassess: 4.D. The costs, risks, and benefits of avoiding BPA Tier 2 rate alternatives for the period of October 2014 and beyond for its distribution customers. 4.E. To revisit the opportunity of a City owned Landfill Gas Generation project including the evaluation of other local generation alternatives. Other options to the Landfill gas Generation project will be evaluated including possible sale of the landfill gas or its use for fueling some of the City's fleet. Staff has included consulting services in the 2010 proposed budget to further study alternative uses of landfill gas. Page 6 10/13/2009 Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility 4.F. To revisit biomass cogeneration opportunities within Port Angeles through a purchase power agreement as needed to satisfy the City's Tier 2 power supply needs. Staff believes the following items are crucial to the success of diversifying its Tier 2 power supply from BPA: 4.G. Acknowledge that the City is becoming responsible for its Tier 2 power supply and that power supply should be "long" versus "short". The Washington State renewable portfolio standard does not apply to the City and that the City would continue to voluntarily support conservation in the absence of any current State or federal mandate. The Western Climate Initiative does not include any mandates at this time, but the State is developing mandatory greenhouse gas reporting requirements that may be applicable in the future. 4.H. That future City sponsored conservation programs should be maintained at a consistent and predictable level. 4.1. That renewable energy credits assigned to the City's Tier 1 power purchases should be resold by the City and the revenues used to offset the City's cost of developing its Tier 2 power supply. The preliminary Tier 1 Renewable Energy Credit (REC) estimate is about 2.5 aMW which has a current annual market value in the range of $5 to $10 per REC, and may provide from $100,000 to $200,000 per year. 4.J. That consulting services are included in the 2010 proposed budget for designing new retail rates based on wholesale tiered rates anticipating changes will be needed in 2011. As part of this effort conservation rate designs will be evaluated that help create economic momentum toward conservation and energy efficiency. As part of the future Tiered rates the power supply will need to be allocated to distribution customers and the industrial rate class. The potential for fuel switching for water heating, space heating, and cooking will also be explored. Customer communications about retail rate design changes will need to begin in 2010. 4.K. Technology needs are included in the 2010 proposed budget such as Advanced Metering Infrastructure (AMI), Supervisory Control and Data Acquisition (SCADA) upgrades, conservation voltage reduction, and peak demand management. BPA programs for Smart Grid and Demand Response will also be pursued. 4.L. There are other local power resources that may be commercially feasible in the future such as biomass energy development in Clallam County, solid Page 7 10/13/2009 Tier 2 Power Supply Iron Man Proposal City of Port Angeles Electric Utility waste conversion, hydrokinetic (wave /tidal /in- stream, off -shore wind), community solar, and incremental generation at Morse Creek Hydro. Upon commercial feasibility, the City should provide a preference for local power resources that are either below or similar to the avoided cost of other non local resources. 4.M. There may be legislative issues that the City may want to consider such as Washington State House Bill 1811, which could have increased the benefits of the City's Morse Creek hydro project. 5. Staff Guidance. Staff reauested and received guidance from the Utility Advisory Committee on the Straw and Stone Man proposals. Staff will request City Council consideration no later than the October 20. 2009 to ensure compliance with the November 2. 2009 BPA Tier 2 notice deadline. Page 8 10/13/2009