HomeMy WebLinkAboutAgenda Packet 05/13/2003 PORT ANGELES, WA CJB362
MAY 1 ."4, 2003
3:00
Ar~FNDA
I. r-AL/ To ORDER
II. ROLL CALL
III. APPROVAL OF' MINUTES FOR APRIL ~:1~
IV. LATE ITEMS
c. PARAMETRIX ~003 CONTRA[3T
D, F'LM ORIDATIr'~N UPDATE
VI. NEXT MEETING DATE - 'IUNE '1 Or
VII. ADJOURNMENT
UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
April 8, 2003 ~
I. Call to Order:
Chairman Erickson called the meeting to order at 3:00 p.m.
II. Roll Call:
Members Present: Chairman Erickson, Councilmember Rogers, Dean Reed, Allen Bentley,
Councilman Campbell
Members Absent: None
Staff Present: Mike Quinn (4.00), Craig Knutson, Glenn Cutler, Scott McLain, Steve
Sperr, Lan'y Dunbar, Doyle McGinley, Jim Harper, Bob Kajfasz, Cate
Rinehart
Others Present: Brian Gawley - Daily News
Mark Eveland - Air Flo Heating
IIL Approval of Minutes:
Chairman Erickson asked if there were any additions or corrections to the meeting of March 5,
2003. Allen Bentley noted a change in discussion item "B" from "and information is gatherer"
corrected to "as information is gathered." Dean Reed moved to approve the minutes. Allen
Bentley seconded the motion, which carried unanimously.
IV. Discussion Items
Elwha Underground Rebuild Phase I - Project 22-11
James Harper, Electrical Engineering Manager, explained that the water pumping facility at the Ranney
Well is served by an old 2.5 mile direct buried 12.47 kV line which has been periodically failing.
Rebuilding this line in three phases over a three year period will stabilize this area. The rebuild of this
line was proposed and included in the approved 2002 CFP. A brief discussion followed.
Dean Reed moved to recommend staff proceed with the Elwha Underground Rebuild Phase I
Project 22-11 as described. Allen Bentley seconded the motion, which carried unanimously.
UTILITY ADVISORY COMMITTEE
April 8, 2O03
B. Water Quality Report (2002)
Doyle McGinley, Water/Wastewater Collection Superintendent, noted the Washington State Department
of Health requires every water system provide an annual Water Quality Report to its customers.
Mandatory language use includes water system information, water quality testing occurring daily by
certified personnel, monitoring waivers, bilaterial compliance agreements and where to get more
information. The report is scheduled to be included in utility bills, on the interact, and a public
information announcement in the local paper. There was no discussion
No action taken. Information only.
C. Solar Water Heating Program Agreements
Larry Dunbar, Power Resources Manager, announced the availability of a solar water heating program
for residential customers called "The Bright Way To Heat Water." The first two customers would
receive 75% funding, agree to a lien filed against their home with repayment of RD&D (Renewable
Resource Research, Development and Demonstration) funding to the City upon the sale of their home,
and be required to read and report metering data to the City on a monthly basis for three years.
Subsequent customers would receive an $800 rebate (no lien and no report requirement). A discussion
followed.
Councilman Campbell moved to recommend City Council approve The Bright Way To Iteat
Water License Agreement with the Bonneville Power Administration and authorize the Director
of Public Works and Utilities, or his designee, to enter into Amendment No. 1 of the City
Authorized Contractor Agreement with eligible contractors. Additionally the lien is to be lifted at
the end of the third year if all requirements are met. Couneilmember Rogers seconded the
motion, which carried unanimously.
D. Downtown Watermain/Sidewalks Phase III, Project 00-19, Loan Application
Stephen Sperr, Engineering Manager, mentioned the loan application had been submitted previously but
did not make the list of funded projects. This year in addition to the application for the Public Works
Trust Fund (PWTF) loan, the City will also apply for a Drinking Water State Revolving Fund (DWSRF)
loan. A discussion followed with staff being advised to keep the comprehensive parking solution in mind
as well as the potential preservation of the limited underground area. It was noted that should funding
become available the City would have some flexibility in the project.
Councilmember Rogers moved to recommend City Council authorize the Mayor sign both the
PWTF and DWSRF loan application certifications in an amount not to exceed $2,600,000 for
Phase III of the Downtown Watermain/Sidewalk Replacement Project. In addition, if either or
both the loans are approved, authorize the Mayor to execute the PWTF and/or DWSRF loan
agreement(s) provided that the total loan amount does not exceed $2,600,000. Allen Bentley
seconded the motion, which carried unanimously.
2
UTILITY ADVISORY COMMITTEE
April 8, 2003
E. Consultant Agreement with Brown and Caldwell For Engineering Services
Stephen Spent, Engineering Manager, stated Brown and Caldwell had been selected to continue to
provide engineering services related to the Infiltration/Inflow Roof Drain Disconnection Pilot, a
Condition Assessment of the Sewer Collection System, an update to the Combined Sewer Overflow
Comprehensive Reduction Plan and other services as directed. A discussion followed. Staff was
directed to include examples of each task in the summary of scope and budget when presented to
Council.
Dean Reed moved to recommend City Council authorize the Mayor to sign an Agreement for
Professional Services with Brown and Caldwell in an amount not to exceed $159,920.
Councilmember Rogers seconded the motion, which carried unanimously.
F. Elwha River Salmon Hatchery Lease
Stephen Spent, Engineering Manager, described the Washington Department of Fish and Wldlife
(WDFW) operation of a fish rearing facility on leased City Property adjacent to the Elwha River and the
City's Industrial Water Line (IWL). The lease allowing them to operate on the site and use a portion of
the water diverted from the Elwha River IWL expired in March 2003 and a new three year lease is being
negotiated. New issues to be addressed include the Habitat Conservation Plan, fish screens, permitting
and construction of facilities under the Elwha Act, and use of City water. A lengthy discussion followed
with concerns expressed over the lack of WDFW cooperation in obtaining permits for city and Daishowa
projects, especially in the last several years. A letter to them outlining those concerns was suggested by
members of the UAC.
Tabled until further notice.
G. Clallam PUD Wholesale Water Contract
Scott McLain, Deputy Director for Power Systems, advised that the Clallam County PUD had been
receiving wholesale water service from the City for many years and the last agreement terminated at the
end of 2002. The new three year contract addresses a number of changes which are improvements to the
previous contract. This contract is currently being reviewed by the PUD. There was a brief discussion.
Councilman Campbell moved to recommend City Council authorize the Mayor to sign the
Wholesale Water Contract with the Clallam County PUD providing no significant changes
occurred due to PUD action. Dean Reed seconded the motion, which carried unanimously.
H. Reports
Rayonier Leachate (Quarterly)
Fluoridation Project Status
Glenn Cutler, Director of Public Works and Utilities, reported a draft was being designed by CH2M Hill.
Currently the plant would be located adjacent to the landfill area and would be in liquid form.
Brownsfields Clean-Up Grant Application
Glenn Cutler, Director of Public Works and Utilities, advised the EPA money for the landfill bluffhad
3
UTiLITY ADVISORY COMMITTEE
April 8, 2003
been denied.
F. Next Meeting: The next meeting will be May 13, 2003.
VI. Adjournment:
The meeting adjourned at 5:05 p.m.
Councilmember Erickson, Chairman Cate Rinehart, Administrative
Assistant
4/10/03
N:WWKS~LIGHTXCONS\CATE~apr8meet.wpd
4
pORTANGELES
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: May 9, 2003
TO: UTILITY ADVISORY COMMITTEE
FROM: Scott McLain, Deputy Director for Power Systems
Attached is your packet for the Utility Advisory Committee Meeting on Tuesday, May 13th.
Item A in the packet is a memo concerning construction of an Oil Handling and Warehouse
building. While we are presenting several recommendations with regard to the project, some of
which could produce as much as a $45,000 increase, it is Glenn's intention to fully discuss each
option before any formal recommendation is forwarded to the City Council.
N:\UACWinalXcovermemo.wpd
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: May 13, 2003
TO: UTILITY ADVISORY COMMITTEE
FROM: Jatnes L. Harper, Electrical Engineering Manager
Re: Construction of Oil Handling and Warehouse Building, CL 82-99
Summary: EPA regulations require indoor storage for leaking or weeping transformers and for
drums of oil. A building to satisfy this requirement was included in the 2003 construction budget
in an mount of $94,000. The design engineers estimate for construction is $157,431, of which
$34,624 are recommended added items. The estimated cost of construction without the added items
is $122,807.
Recommendation: Forward a favorable recommendation to the City Council that $45,000 in
additional funds be allocated from light reserves, ($29,000 for added cost of the building plus
$16,000 for the addition of an oil impervious liner), and that staff proceed with bidding for the
construction of the Oil Handling and Warehouse building.
Background/Analysis: This item is being returned for UAC review because the consultant's
estimate for construction of the Oil Handling and Warehouse Building, Project 02-I 0 exceeds the
budgeted funds by $29,000 or 31%, excluding three added items recommended by the consultant.
The three added items recommended by the consultant to be incorporated into the design will
cost an additional $34,624. The cost / benefit of each added item discussed below requires
consideration, approval, and additional fund allocation prior to finalizing the design and bidding
o f the project.
The cost of the building was under estimated by staff due to a lack of experience in building
construction, and especially specialty building construction. Future projects of types which staff
has limited experience will incorporate a preliminary construction cost estimate by the consultant
as the first design task. This will allow consideration of more accurate total project cost prior to
appreciable design expenditures.
The consultant recommends the installation of a 40 mil PVC oil resistant liner with sand cushion
under the concrete slab floor to assure containment of spilled liquids through any potential cracks
or joints. The installed liner is estimated to cost approximately $16,000. Staffrecommends this
added item be approved as insurance against migration into the surrounding soil of any of the
hazardous materials to be stored and handled in the building.
N:\UAC~Finahuacwarhs2.wpd
Design Services for Oil Handling and Warehouse Building
Page 2
May 13, 2003
The consultant recommends a restroom be installed at a cost of $10,000 due to the approximate
one block distance to available facilities. Staffrecommends the restroom rough-in and floor
accommodations be included and the construction be deferred at this time.
The area in front of the proposed building is currently paved with asphalt but is not continued to
the adjacent streets. The consultant recommends installing asphalt paving at a cost of $7,000 to
tie the existing asphalt to the paved streets. Staffrecommends this be deferred until determined
to be necessary for access. The current gravel surface is the minimum acceptable.
EPA Regulation 40 CFR Part 761.65 requires any leaking or weeping transformers or drums of
liquid to be stored under cover and out of the weather. The City does not have sufficient indoor
storage space to hold the number of transformers and oil filled equipment routinely in storage.
The City has numerous large oil filled units subject to being retrofilled and reclassified as non
PCB. These units can be retrofilled and reclassified for only the cost of the oil plus labor and oil
disposal in the new facility. The City will have the oppommity to experience significant savings
by doing this work in house, and the potential of fines and citations will be reduced if not
eliminated.
Staffhas explored other possible options for meeting EPA requirements. The possibility of
Clallam PUD processing City transformers on a contract basis was discussed. The
PUD facility has limited space and would frequently be unable to accept City equipment.
Tacoma has the next closest facility which would always be available. However, this would
require processing a hazardous material transport manifest and sending a truck to Tacoma several
times a week, exposing the City to the added liability of a spill during transit. The cost of the
building is still considerably below the $480,000 estimated cost of shipping the PCB
transformers to Tacoma for storage and handling.
The agreement with Parametrix, Inc. for design of the Oil Handling and Warehouse Building at a
cost not to exceed $25,600 was approved by Council on November 19, 2002. The cost to date
for Parametrix is $18,336.37. The remaining tasks are approximately $600 for final bid package
preparation and up to approximately $2,100 for bid evaluation assistance as needed. The design
has been completed, and the engineering estimate for construction of the building including
added items is $157,431, which is $63,431 greater than the $94,000 budgeted amount. The
estimated construction cost of the building without the added items is $122,807 which exceeds
the budgeted amount by $29,000.
Design ServicesforOilHandling and Warehouse Building
Page 3
May 13, 2003
~O COST ITEM BUDGET ESTIMATE ENGINEER ESTIMATE DIFFERENCE
OF STAFF
RECOMMENDATION
1 Mobilization $5.000.0(3 $5,000.00
2 Water System $1,000.00 $2,000.00
3 Sewer System $2,000.0(3 $3,000,00
4 Electrical System $6,000.0~ $9,000.00
5 Unsuitable Soil Replacement $3,500.00
6 Structural Excavation $6,000,00
7 Concrete & Reinforcement $20,000.00 $25,000.00
8 Metal Building $60,000.0(3 $60,000,00
Sum Required Items $94,000.0(3 $113,500,00 $19,500.00
Sales Tax Required Items~ $9,307,00 $9,307.00
Subtotal Required Items $94,000.001 $122,807,00 $28,807.00
ADDED ITEMS $15,000,00
g Oil resistant PVC Liner $15,000.00
1(3Restroom $10,000,00
11 AC Pavement $7,000,00
Sum Added Items $0.0¢ $32,000.0(3 $15,000.00
Sales Tax $0.00 $2,624.00 $1,230.00
Subtotal Added Items $0.00 $34,624,00~ $16,230.00
Total $94,000.00 $157,431,00 $45,037.00
It is recommended that the UAC forward a positive recommendation to the City Council that
$45,000 in additional funds bc allocated from light reserves, ($29,000 for added cost of the
building plus $16,000 for the addition of an oil impervious liner), and that staffproceed with
bidding for the construction of the Oil Handling and Warehouse building.
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: May 13, 2003
TO: UTILITY ADVISORY COMMITTEE
FROM: Larry Dunbar, Power Resources Manager
SUBJECT: Solar Water Heating Program Agreements
Summary: The Bonneville Power Administration recently offered the City participation in a
xu'n-key solar water heating program for residential customers called "The Bright Way To Heat
[aterTM''.
,evised Recommendation: Forward a favorable recommendation to approve the Bright
Way To Heat WaterTM License Agreement with the Bonneville Power Administration and
authorize the Director of Public Works and Utilities, or his designee, to ,e. nter into
Amendment No. 1 of the City Authorized Contractor Agreement with eligible contractors.
Background: On April 12, 2001, the City Council authorized the Director of Public Works and
Utilities to implement a conservation program that qualifies for the Bonneville Power
Administration (BPA) Conservation and Renewables Discount (C&RD) program. On May 22,
2001, the City Council authorized the Director of Public Works and Utilities to enter into City
Authorized Contractor Agreements with local independent contractors that install eligible
conservation improvements.
On April 8, 2003, the Utility Advisory Committee recommended "approve The Bright Way To
Heat WaterTM license agreement with the Bonneville Power Administration and authorize the
Director of Public Works and Utilities, or his designee, to enter into amendment No. 1 of the City
Authorized Contractor agreement with eligible contractors. Additionally the lien is to be lifted at
the end of the third year if all requirements are met" to City Council.
Analysis: Staff inadvertently overlooked the prior City Council delegation to the Public Works
and Utilities Director to implement conservation programs and requests the utility advisory
committee to consider the revised recommendation herein. The revised recommendation in
strikeout/underline format is to "approve The Bright Way To Heat WaterTM license agreement
with the Bonneville Power Administration and authorize the Director of Public Works and
Utilities, or his designee, to enter into amendment No. 1 of the City Authorized Contractor
agreement with eligible contractors
y~,~ ,~ ,,,~ ~uu,~,,~.L~ ,~ .~,.L . Additional information about staff's revised plans for customer
rebates and a lien related to the renewable resource research, development and demonstration
program is provided on the following page.
I:~STAFFREPORTSLSOL~RWATER~IEATIlqG WPD
May 13, 2003 Utility Advisory Committee
RE: Solar Water Heating Program Agreements
Page 2
Renewable resource research, development and demonstration funding
In order to help ensure that a solar water heating program is successful, Staff proposes to
combine the $800 C&RD rebate for a solar water heater system with C&RD renewable resource
research, development and demonstration (RD&D) funding for two installations this year. The
anticipated total cost of a solar water heating system is in the range of $4,500 to $5,000. By
combining the C&RD and RD&D funds thc customer's initial cost would be 50% (the former
plan was 75%) of total cost (in the range of $2,250 to $2,500). The Eugene Water and Electric
Board program when combined with thc Oregon income tax credit provides an overall incentive
of 50% which has resulted in numerous installations. Use of RD&D funding in subsequent years
in support of The Bright Way To Heat WaterTM program may also be appropriate.
Customers receiving RD&D funding would be required to read and report solar water heating
system metering data to the City on a monthly basis through September 30, 2006. The required
metering would be provided by the City which also qualifies for RD&D funding. As a condition
of RD&D funding, Bonneville requires that metering dat~ be made available to the public in an
anonymous format via the world-wide-web. In the event a customer does not comply with the
meter reading and reporting requirements, a lien would require customer repayment of thc
RD&D funding upon the sale of the home. Customer repayment of the RD&D funds (if
required) would be applied to the City's Conservation fund. A total of $20,000 in RD&D
funding is available under thc C&RD program. All City costs under the C&RD and RD&D are
reimbursed by BPA.
Staff, in cooperation with Air Flo Heating Company, plans to hold a solar water heating
workshop in June to promote the availability of the program and to recruit two customers to
participate in this year's RD&D activities. Customers participating in the RD&D activity will be
selected based on solar access, adequate family size/water heating demand, ease of installation,
and other factors.
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: May 13, 2003
TO: UTILITY ADVISORY COMMITTEE
FROM: Stephen Sperr, Engineering Manager
SUBJECT: Consultant Agreement with Parametrix, Inc. for Engineering Services
Summary: Parametrix, Inc. has been selected to continue to provide engineering services related
to the Solid Waste Utility, Landfill and Wastewater Treatment Plant (WWTP), including directed
services. The Agreement will ensure that ongoing engineering services needed to support solid
waste activities, landfill closure plans and NPDES permit requirements for the WWTP provided
by Parametrix will continue. The Agreement has a not-to-exceed mount of $222,383.
Recommendation: Forward a favorable recommendation to City Council authorizing the
Mayor to sign an Agreement for Professional Services with Parametrix.
Background/Analysis: On October 26, 2000, the City signed an Agreement for Professional
Services with Parametrix Inc. to provide engineering support services for 6 landfill and solid
waste tasks, for a total of $295,284.00. On May 3, 2002 the Agreement was amended, adding 8
additional tasks and increasing the total amount of the Agreement to $607,970.00. Amendment
No. 1 also extended the time of performance for the Agreement to March 31, 2003. Most of the
14 tasks have either been completed or are nearing completion.
Recently, the City has been working with Parametrix in developing a scope and budget for the
continuation of services for existing tasks, and new tasks that are funded as part of the City's
2003 budget. Instead of amending the existing Agreement, it was clear that the best approach to
addressing the remaining work and the new tasks was to execute a new Agreement. Continuing
with Parametrix is in the best interest of the City due to their in-depth knowledge of existing City
programs and projects. City staff are satisfied with Parametrix's expertise and ongoing
engineering support services in the solid waste, landfill, and wastewater treatment plant areas.
Table 1 outlines the key tasks in the proposed new Agreement, with 2003 budgets and estimated
2004 budget. The source of funding for each task is listed in parentheses after each task title
(SW is the Solid Waste Fund and WW is the Wastewater Fund). The funding for tasks
anticipated to continue into or start in 2004 will be added to the Agreement as funds are made
available, through an Amendment(s) to the Agreement.
May 13, 2003 UAC
2003 Parametrix Consultant Agreement
Page 2 of 2
Table 1 - Summary of Scope and Budget
2003 City 2003 Task
TASK Bud~let Amount
1. Engineering Assistance for Solid Waste $70,000 $61,495
Management ($15K WW, $55K SW)
2. Landfill Compliance Support (SW) $35,000 $29,811
3. Waste Export System Development (SW) $35,000 $19,152
4. Shoreline Stabilization (SW) $125,000 $18,103
5. WWTP NPDES Services (WW) $50,000 $43,090
6. Site Development Planning (SW) $0 $24,235
7. Directed Services (SW) $50,000 $26,499
Total $365,000 $222,383
· Task l supports routine solid waste handling activities and landfill operations. Examples
of this would be (1) update the landfill fill sequence plans, (2) gas system maintenance
and monitoring and (3) co-composting consulting services.
· Task 2 provides for regulatory reporting and permit coordination for landfill operations.
Examples of this would be (1) preparation of the Solid Waste Annual Report and (2)
preparation of groundwater monitoring reports.
· Task 3 provides for technical assistance in developing a waste export system for solid
waste disposal for the proposed Transfer Station. Some specific components of this task
are (1) development of Interlocal Agreements for the commitment of waste streams to the
proposed Transfer Station and (2) updating the Solid Waste Long Range Plan.
· Task 4 will develop design and permit documents to mitigate erosion of waste along the
base of the bluff north of the old landfill.
· Task 5 involves sediments sampling and reporting, as well as an outfall evaluation, to
meet NPDES permit requirements for the Wastewater Treatment Plant.
· Task 6 provides for technical assistance related to the impacts that the potential siting of a
new municipal water treatment plant on or adjacent to the landfill property would have on
current operations and planned facilities there.
The duration of the Agreement will be through January 31, 2004. Funds for the tasks are in the
2003 budget or will be requested in future budgets. Tasks will only be executed when funds
become available. If progress on tasks during 2003 is satisfactory, the Agreement will likely be
amended in 2004 to include wastewater design work budgeted for that year.
N:\UAC~DepDirhMay 13 new Parametrix Agrecm~nt~wpd
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: May 13, 2003
TO: UTILITY ADVISORY COMMITTEE
FROM: Stephen Sperr, Engineering Manager
Re: Fluoridation Memorandum of Understanding
Summary: The City has negotiated a Memorandum of Understanding 0ViOU) with the
Washington Dental Service Foundation (WDSF) whereby they would "gifl" a temporary fluoride
facility to the City. Concurrent with development of the'MOU, CH2M Hill and the WDSF are
developing a design/build agreement whereby CH2M Hill will design and construct the
temporary fluoride facility.
Recommendation: Forward a favorable recommendation to City Council authorizing the
Mayor to sign a Memorandum of Understanding with the Washington Dental Services
Foundation to expedite the funding and construction of a fluoridation system.
Background/Analysis: The WDSF selected the City as a candidate beneficiary of grant funding
for fluoride in late 2002, as part of WDSF's charitable mission to improve the oral health of
Washington State residents. At the time, the City did not have any near-term plans to install a
fluoride system when it was approached by the WDSF and local health care professionals
supporting fluoridation of the City's water supply.
The issue was presented by a group from Olympic Medical Center to the Utility Advisory
Committee at its January 14, 2003 meeting. The UAC recommended that City Council address
the issue at its next meeting. After City Council discussions and a public hearing, the City
Council directed the installation of a fluoride facility using grant funding from WDSF.
The City will operate a temporary facility to feed fluoride to the City's municipal water system
until the proposed future water treatment facility, to be funded and constructed by the federal
government as part of the Elwha Dam Removal project, is constructed and operational.
Customers of the City's municipal water system, including PUD No. 1 of Clallam County, will be
supplied with fluoridated water. The future water treatment facility, expected to be completed by
the year 2007, will include a permanent fluoride feed system. Upon completion of the future
water treatment facility, the temporary fluoride facility will be abandoned and its component
equipment and instrumentation salvaged for use in the water treatment facility or elsewhere.
Fluoridation MOU
May 13, 2003 UAC
Page 2 of 2
The City has negotiated a MOU with the WDSF whereby they would "girl" a temporary fluoride
facility to the City. A copy of the MOU is attached. Concurrent with development of the MOU,
CH2M Hill and the WDSF are developing a design/build agreement whereby CH2M Hill will
design and construct the temporary fluoride facility.
It is recommended that the UAC forward a favorable recommendation to City Council
authorizing the Mayor to sign a Memorandum of Understanding with the Washington Dental
Service Foundation to expedite the funding and construction of a fluoridation system.
N:\UACheinalkMay 13 Fluoridation MOU.wpd
MEMORANDUM OF UNDERSTANDING
REGARDING GIFT OF FLUORIDATION SYSTEM
The purpose of this Memorandum of Understanding (the "MOU") is to set forth the nonbinding
understanding of Washington Dental Service Foundation, LLC, a Washington limited liability
company ("WDSF"), the City of Port Angeles, Washington, a municipality (the "City"), and
CH2M Hill, a corporation of the State of Washington, with respect to a contemplated gift by
WDSF to the City ora fluoridation system to be designed, constructed and installed by the
engineering firm CH2M Hill.
1. In furtherance of WDSF's charitable mission to improve the oral health of Washington
State residents, WDSF intends to enter into an agreement with CH2M Hill for the
construction ora fluoridation system to fluoridate the public water supply of the City (the
"System"), with the further intention of gifting the System to the City.
2. WDSF intends to enter into a design-build agreement with CH2M Hill (the "Design-
Build Agreement") for the design, construction and installation of the System. WDSF
will pay the design, construction and installation costs associated with the System, in an
amount that is mutually agreeable to all parties and will be finalized in the Design-Build
Agreement. The parties understand that WDSF has allotted a total of $260,000 for the
design, construction and installation of the System and that WDSF will not be expected
to pay for any amounts in connection with the design, construction and installation of the
System that exceed this total allotted amount.
3. The Design-Build Agreement will require that CH2M Hill work closely with and under
the general advice and supervision of representatives designated by the City, as
necessary, to ensure that the System is designed, constructed and installed in compliance
with applicable federal, state and local health and safety laws concerning fluoridation of a
public water supply.
4. As a pre-condition to WDSF entering into the Design-Build Agreement with CH2M Hill,
the City shall have received approval from any and all applicable governing bodies,
including but not limited to the Port Angeles City Council, for the design, construction
and installation of the System, the fluoridation of the Port Angeles public water supply,
and the gift of the System from WDSF to the City. The City shall provide written
documentation of all such approvals to WDSF prior to WDSF's execution of the Design-
Build Agreement.
5. Contemporaneously with execution of the Design-Build Agreement, WDSF and the City
intend to enter into a gift agreement pursuant to which WDSF will girl the System to the
City (the "Gift Agreement"). Under the Girl Agreement, WDSF will agree to transfer
complete ownership of the System to the City at no cost, with an additional amount of
funding, in an amount to be determined after execution of the Design-Build Agreement,
that shall be used specifically to implement the City's community water fluoridation
project with its future water fluoridation system.
6. Under the Gift Agreement, WDSF will retain no rights or interests in the System, nor
shall it have any responsibilities, obligations or liabilities with respect to any aspect of the
future operation of the System.
7. Under the Gift Agreement, the City will agree to accept the gift of the System and not to
take any action that may lead to the rejection of the girl of the System.
8. Under the Gift Agreement, the City will agree that the System will be transferred by
WDSF "as is" with no warranty of any kind, whether express or implied, including,
without limitation, any implied warranties of memhantability, fitness for a particular
purpose or noninfringement.
9. Under the Girl Agreement, the City will agree to indemnify and hold harmless WDSF
and its members, trustees, officers, agents, and employees from and against any and all
causes of action, suits at law or equity, or claims or demands, and any liability, loss,
damage, cost or expense (including without limitation reasonable attorneys' fees) of any
nature, arising out of the design, construction, installation, operation, or gift of the
System, or the performance of the terms of the Gift Agreement.
10. Under the Gift Agreement, the City will agree that its sole and exclusive remedy from the
City's use or inability to use the System or any breach of the Gift Agreement by WDSF
shall be for the City to discontinue use of the System or to repair or modify the System at
the City's election and sole expense.
11. Under the Gift Agreement, the City will agree that WDSF will not be liable for any
special, indirect, incidental or consequential damages in connection with the gift of the
System or otherwise arising out of the Gift Agreement, even ifWDSF has been advised
of the possibility of such damages.
12. Under the Gift Agreement, the City will agree to designate one or more representatives to
work closely with and to assist CH2M Hill with the design, construction, and installation
of the System, as necessary, to ensure that the System meets the requirements of the City
and all applicable laws concerning the fluoridation of a public water supply.
13. The parties' understanding will be effectuated pursuant to and subject to conditions
contained in the Gift Agreement in form and substance satisfactory to the City and
WDSF. The Gift Agreement will contain such representations and warranties, covenants
and conditions as are customary and appropriate to transactions of this nature.
14. The City and WDSF will coordinate all publicity relating to this MOU, and no party will
issue any press release, publicity statement or other public notice relating to this proposal
and the matters contemplated herein without prior consent of the other party.
15. Unless otherwise agreed, the City and WDSF will each pay its own expenses in
connection with the transactions contemplated hereby.
N:\GLENN\Floufidation MOU 5.DOC 2
16. This MOU is solely a statement of present intention of the parties made in good faith and
is not intended to create any binding obligations. This MOU is not intended to be, is not
represented as, and should not be interpreted as, a legal or binding contract or agreement.
This MOU replaces and supersedes all previous correspondence and discussions between
the parties concerning this proposal.
17. WDSF and the City will endeavor to complete and execute the Girl Agreement by June
30, 2003. In the event that the parties have not executed the Girl Agreement by
September 1,2003, WDSF reserves the right to withdraw this MOU and end negotiations
with the City at any time by written notice to the City.
DATED this __ day of _, 2003.
WASHINGTON DENTAL SERVICE CITY OF PORT ANGELES,
FOUNDATION, LLC WASHINGTON
Signature Signature
By:. By:.
Its: Its:
CH2M Hill
Signature
By:.
Its:
N:\GLENN\Flouridation MOU 5.DOC 3
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: May 13, 2003
TO: UTILITY ADVISORY COMMITTEE
FROM: Stephen Sperr, Engineering Manager
RE: Morse Creek Water Line Options
Summary: There are sections of the Morse Creek water line that are not an integral part of the
City's Water System. As discussed at the January 14, 2003 UAC meeting, the water line is no
longer needed as an emergency back-up water supply conveyance. Staff is now considering
various options related to the desire or need to continue to provide water to customers outside the
Urban Growth Area (UGA) boundary.
Recommendation: That the UAC concur with the recommendations outlined in this memo,
or as modified by the UAC, and encourage staff to proceed with development of costs and a
schedule to implement the recommendation.
Background/Analysis: The Morse Creek water line was originally constructed in 1924 and
included a dam/intake structure on Morse Creek, a water line from the intake to what is now
known as Peabody Heights Reservoir, and related appurtenances.
The current concrete coated and lined steel cylinder water line was built in 1961, replacing the
earlier wood stave water line. A hydroelectric power generation station using a portion of the
water line was built in 1987 and generated power until 1997, when it was shut down due to low
energy prices. Steps are being taken this year to re-start the station. Clallam County PUD No.1
started using water from the water line in 1988.
There are sections of the Morse Creek water line, as described below, that are not an integral part
of the City's Water System. As discussed at the January 14, 2003 UAC meeting, the water line is
no longer needed as an emergency back-up water supply conveyance. Staff is now considering
various options related to the desire or need to continue to provide water to customers outside the
Urban Growth Area (UGA) boundary. The water line outside the City limits has been divided
into discrete sections, all of which are outside the UGA boundary except Section 6. Attached is a
map showing these sections of the water line. A description of each section, number of
customers and discussion of options follows.
Morse Creek Water Line Options
May 13, 2003 UAC
Page 2 of 4
.SECTION 1
A. Description - This section is from the intake at the dam (sta -3+50) to PUD water supply
tap (sta) 30+00 and is being used by the Clallam County PUD #1 as a water supply that is
treated at their Morse Ct. treatment facility. This section will also supply the City's
hydroelectric plant once it is re-started.
B. Customers - 2; PUD via Wheeling Agreement and City hydroelectric plant
· C. Options
1. Sell to PUD, have PUD wheel water to City's hydro plant.
2. Continue to wheel water to PUD and supply water to hydro plant.
3. Abandon in place.
D. Recommendation - Continue to wheel water to PUD and use for hydroelectric plant.
SECTION 2
A. Description - This section is fi'om PUD water supply tap (sta 30+00) to the inlet of the
penstocks for hydroelectric plant (sta 129+00) and has recently been tested and leaks
repaired, and provides service to the City's Morse Creek Hydroelectric Facility.
B. Customers - 1; City's hydroelectric plant
C. Options
1. Continue to use for hydro plant.
2. Abandon in place.
D. Recommendation - Continue to maintain for use as water supply for hydro plant.
SECTION 3
A. Description - This section is from the inlet of the penstocks for hydroelectric plant (sta
129+00) to the old chlorination building east of Mt. Pleasant Road (sta 166+50) and is
physically disconnected from the water line on the east end and valved offat the west end
This section has been de-watered and inactive since 1978.
B. Customers - none
C. Options
1. Relinquish right-of-way to property owners.
2. Do nothing.
3. Re-establish viability of Morse Creek water line for use as an emergency supply
for the City.
D. Recommendation - Do nothing. While the water line and right-of-way is of no current
use to the City, this may change in the future.
SECTION 4
A. Description - This section is from the old chlorination building east of Mt. Pleasant Road
(sta 166+50) to where the City supplies wholesale water to the PUD at its Gales Addition
Reservoir (sta 238+00). It is supplying customers outside the UGA boundary, with those
closest to Mt. Pleasant Road having low water pressure. Most customers along this
section of the water line have agreements with the City (as part of easements negotiated
when the water line route was originally established) that allow for metered or a low flat
Morse Creek Water Line Options
May 13, 2003 UAC
Page 3 of 4
rate monthly billing that varies among the connections. Some of these customers have a
limit on the number of homes per connection, but this has been difficult to enfome in the
past. The City has installed meters on all connections to monitor consumption, regardless
of whether a flat rate or metered rate is charged.
B. Customers - 17 and PUD (wholesale water)
C. Options
1. Relinquish fight-of-way by telling customers that after a certain date the City will
no longer provide water to individual customers. May give them the option of
setting up a water association that can purchase water from the City.
2. Do nothing (continue to provide water to the customers).
3. Sell this section of the water line and its customers to the PUD.
4. Install a booster station to meet minimum Department of Health pressure
requirements, using an LID to cost share among those that will benefit.
D. Recommendation - Install a booster station, with customers along this section sharing
the cost of construction.
SECTION 5
A. Description ~ This section is from where the City supplies wholesale water to the PUD at
its Gales Addition Reservoir (sta 238+00) to the UGA boundary (sta 265+00). It is
supplying customers outside the UGA boundary, but before the PUD connection at the
Gales Addition Reservoir. Similar to Section 4 above, most customers along this section
of the water line have agreements with the City that allow for metered or a low flat rate
monthly billing that varies among the connections. The City has installed meters on all
connections to monitor consumption, regardless of whether a flat rate or metered rate is
charged.
B. Customers - 9
C. Options
1. Relinquish right-of-way by telling customers that after a certain date the City will
no longer provide water to individual customers. May give them the option of
setting up a water association that can purchase water from the City.
2. Do nothing.
3. Sell this section of the waterline, along with Section 4, to the PUD, installing a
water meter at the UGA boundary.
D. Recommendation - Do nothing, but require the PUD to pay for some of the maintenance
costs associated with this section of the water line.
SECTION 6
A. Description - This section is from the UGA boundary (sta 265+00) to the City limits (sta
272+00). This section is a small area outside the City limits but within the UGA.
B. Customers - 2
C. Options
1. Do nothing.
2. Sell to the PUD.
D. Recommendation - Do nothing.
Morse Creek Water Line Options
May 13, 2003 UAC
Page 4 of 4
While it is recommended that the City continue to provide water to customers outside the UGA
that are along the Morse Creek water line, there are costs associated with doing so. City staff is
requesting that the UAC either concur with the above recommendations or give guidance on how
to proceed in addressing each of the water line sections described. Staffcan then develop costs
and a schedule for implementation that can be brought to a future UAC meeting for approval.
0.5
Miles
Map legend - Morse creek water line
Diversion structure
-~ Powerhouse
· ~ City water structure
=~ PUD water structure
~ Morse creek water line ._ _ , Treatment Plant
...... Morse creek
City boundary
= '" UGA boundary