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Agenda Packet 06/11/2001
DU TO LENGTH OF MEETING SANDWICHES WILL BE PROVIDED SPECIAL MEETINO UTILITY ADVISORY r. OHMITTEE/POET AN(~ELES WORK5 PORt ANGELESy WA 98362 dUNE 1 I , gO0 1 3:00 P.M. ABENDA I. Call TO ORDER Only Discussion Items A & B Ii. ROLL P-ALL Provided to PA Works! III. APPROVAl OF MINUTES OF APRIL 30, 200 1 VI. NEXT MEETINB - dULY g~ ~on 1 UTILITY ADVISORY COMMITTEE - SPECIAL MEETING Port Angeles, Washington April 30, 2001 I. Call to Order: Chairman Reed called the meeting to order at 3:00 p.m. II. Roll Call: Members Present: Chairman Reed, Allen Bentley, Mayor Larry Doyle, Larry Williams, Orville Campbell Members Absent: None Staff Present: Mike Quinn, Glenn Cutler, Scot~ McLain, Larry Dunbar, Mark Hughey, Cate Rinehart Others Present: Richard Li - Metropolitan Communications Consultants Dr. Paul Carlson - Metropolitan Communications Consultants Jim Haguewood - PA Works Karen Rogers - PA Works Leonard Beil - PA Works III. ,4pproval of Minutes: Chairman Reed stated the minutes of the April 9, 2001 meeting will be approved at the regularly scheduled meeting May 7t~. IV. Discussion Item: Fiber Optic Backbone Business Plan Larry Dunbar, Power Resources Manager, introduced Richard Li and Dr. Paul Carlson of Metropolitan Communications Consultants. Mr. Li reviewed the project background, mission, and development goals. Infrastructure alternatives were introduced which included a private network, City network, public/private network or a Cable TV network upgrade. Mr. Li indicated the Northland Cable survey was predominately negative citing service and programming problems, however, this was not a unique finding as other city companies had the same image. It was suggested that a supportive approached be taken regarding the franchise agreement. Various scenarios were given which consisted of a City owned project, a City/Cable partnership, a City/Telephone partnership or a City/Cable/Telephone consortium. A short discussion followed. It was recommended as an interim step the City/Cable scenario be used as a starting point, with the ideal relationship of the City/Cable/Telephone consortium. The consultants stated the feasibility of this project showed an economic success. They further requested the City rescind the Design Engineering portion of their contract due to the fact that it was awarded months ago but the original schedule could not UTILITY ADVISORY COMMITTEE APRIL 30, 2001 be maintained, Lockheed Martin is no longer available, and strategic direction would further delay the process. There were some questions regarding the business survey response. It was noted the City received over two hundred responses indicating a range from modest awareness to broad usage. A pilot demonstration project was suggested using three nodes to show what fiber optics can be used for, capabilities of city use, and to give businesses a chance to try it out. A short discussion followed. It was explained that the demonstration concept was in the primitive stages with details to be worked out by staff. Larry Dunbar, Power Resoumes Manager, requested comments on the draft by the end of the day of May 3rd. No action taken. Information only. VI. Late Items: None VII. Next Meeting: The next meeting will be held May 7, 2001 at 3:00 p.m. in the Public Works Conference Room. VIII. Adjournment: Chairman Reed adjourned the meeting at 5:05 p.m. Dean Reed, Chairman Cate Rinehart, Administrative Assistant N :~KS~LIGHT~ONS~CATE~pr 3~n.v~l 2 UTILITY ADVISORY COMMITTEE Port Angeles, Washington May 7, 2001 ~ L Call to Order: Vice Chairman Williams called the meeting to order at 3:00 p.m. It was noted that the agenda was amended to remove the works "Special Meeting". II. Roll Call: Members Present: Vice Chairman Williams, Mayor Doyle, Orville Campbell, Allen Bentley Members Absent: Dean Reed StaffPresent: Ken Ridout, Scott McLain, Gary Kenworthy, Tanya O'Neill, Larry Dunbar, Mark Hughey, Cate Rinehar~ Others Present: Jack Warburton - Brown and Caldwell James Hansen - Brown and Caldwell III. .4pproval of Minutes: Vice Chairman Williams asked if there were any further changes or additions to the agenda. Scott McLain, Deputy Director of Power Systems, added "Water Shortage Response Plan" under Late Items. Vice Chairman Williams then asked if there were any additions or corrections to the meeting minutes of April 9, 2001. Mayor Doyle moved to approve the minutes. Allen Bentley seconded the motion, which carried unanimously. IV. Discussion Items: .4. Stormwater Gap ~4nalysis Gary Kenworthy, Deputy Director of Engineering Services, introduced Jack Warburton and James Hansen of Brown and Caldwell. A review was given of the regulations and requirements with a recommendation to expand erosion and sediment control, establish water quality guidelines, provide formal documentation and expand inspection. Existing operating activities, new program setup fees, additional annual operating activities, and total program costs were explained and discussed. Various types of funding were explored with the emphasis on spending more on staffand equipment than more studies. A discussion followed with questions regarding noncompliance and the consequences. The consultants cautioned the possibility of a third party lawsuit such as environmental groups and state refusal to allow building. No action taken. Information only. B. Net Metering Procedure UTILITY ADVISORY COMMITTEE May 7, 2001 Scott McLaln, Deputy Director of Power Systems, pointed out in 1998 the State Legislature approved mandating net metering which allows customers with qualifying generation to be billed only for the net amount of electrical energy delivered by the City. Qualifying generation may be fuel cell, solar, wind or hydro power. Mr. McLain indicated a total of four inquiries have been made so far this year which clearly indicated a need for a metering connection agreement and ordinance. A short discussion followed. Councilman Campbell moved to recommend City Council approve the implementation of Net Metering, the Net Energy Metering Connection Agreement form and the Ordinance authorizing the Manager of Electric Engineering to sign net metering agreements. Allen Bentley seconded the motion, which carried unanimously. C. Conservation Plans and Publicity Mark Hughey, Commercial Energy Analyst, summarized the various conservation programs which include conservation awareness, energy/water conservation, compact fluorescent lamps, City facilities and building improvements. Mr. Hughey reported these programs would qualify for the BPA Conservation and Renewables Credit Discount. Larry Dunbar, Power Resources Manager, further elaborated on the building improvement portion indicating the need for a contractor agreement to protect the City and comply with BPA standards. A discussion followed with questions regarding the performance bond portion of the agreement. Mr. Dunbar agreed to revise the final agreement to omit that portion of the first paragraph of 21D. Allen Bentley moved to recommend to City Council that a budget adjustment be approved and the Director of Public Works and Utilities, or his designee, be authorized to enter into City Authorized Contractor Agreements as revised by omitting the performance bond section. Councilman Campbell seconded the motion, which carried unanimously. D. PUD Electric Franchise Agreement Larry Dunbar, Power Resources Manager, reviewed the past history of the expired fifty year franchise. After several meetings a letter of acceptance has been received from the Clallam County PUD and the ordinance is now ready. A short discussion followed with concerns regarding the words "No facilities within the City limits may be engaged, improved, or expanded or retail customers served without obtaining the City's permission, which can not be unreasonably denied...". Scott McLaln, Deputy Director of Power Systems, stated the City Attorney would be contacted regarding rewording that section. Mayor Doyle moved to recommend City Council adopt the revised ordinance granting the Ciallam County Public Utility District No. 1 a franchise to operate and maintain infrastructure for the sole purpose of transmission and distribution of electric energy. Councilman Campbell seconded the motion, which carried unanimously. E. Fiber Optic Backbone Business Plan Authorization to Proceed Larry Dunbar, Power Resources Manager, summarized the sequence of events recommending the design engineering agreement be cancelled due to the business pain recommendations. Mr. Dunbar further UTILITY ADVISORY COMMITTEE May 7, 2001 explained the work sequence recommended in the business plan to be cable television fianchise negotiations, other scenario (3 and 4) negotiations, and a fiber optic pilot project. A meeting with PA Works! was held earlier in the day and that committee recommended all three activities be conducted in parallel. PA Works! also recommended that consortium partner development is completed beyond the consortium partner development activity of the other scenario (3 and 4) negotiations recommended in the business plan. The PA Works! committee directed staff to return in June with an expanded consulting services proposal for their consideration. Councilman Campbell moved to recommend to City Council that the business plan be approved; that the fiber optic backbone design engineering services agreement with Metropolitan Communications Consultants be rescinded; that the Mayor be authorized to accept the consulting services proposals with Metropolitan Communications Consultants and Dow, Cogburn and Friedman; that task Il of the cable franchise negotiations, task II of the other scenario negotiations, and task IV of the pilot project proceed concurrently; and that additional scope of work be proposed beyond the consortium partner development activity of the other scenario negotiations at the next regularly scheduled meeting. Allen Bentley seconded the motion, which carried unanimously. F. Leak Detection 2001 Results Ken Ridout, D~uty Director of Operations, advised contracted work with Utility Services Associates revealed seven leaks detected and repaired. An estimated 41,000 gallons of water was recovered as a result. A brief discussion followed. No action taken. Information only. G. Rayonier Leachate Report Vice Chairman Williams left for an appointment - Councilman Campbell became Acting Chairman. No action taken. Information only - graph. F. Late Items Codification of the Water Shortage Response Plan Ken Ridout, Deputy Director of Operations, pointed out that due to below normal rainfall and snow pack it was anticipated that low water flows could be experienced in the Elwha River and it may be necessary to implement conservation measures. A response plan has been developed which inehides five stages- internal preparations, voluntary conservation, outdoor restrictions, mandatory outdoor/indoor restrictions and water rationing. A brief discussion followed with concerns over the penalties associated with non compliance which included a written warning, installation of flow restriction devices, and water service shutoffwith a $100 charge for reestablishing service. Item tabled with a request to soften penalties and include the full ordinance at the next meeting. A request was made to include mechanical failure as part of the plan. UTILITY ADVISORY COMMITTEE May 7, 2001 VII. Next Meeting: The next regular meeting will be held June 11, 2001, at 3:00 p.m. in the Public Works Conference Room. VIII. Adjournment: The meeting adjourned at 5:45 p.m. Larry Williams, Vice Chairman Cate Rinehart, Administrative Assistant Councilman Campbell, Acting Chairman N :~PWKS~LIGHT~CONS\CATE'enayTmeet.wpd 4 WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: June 11, 2001 To: UTILITY ADVISORY COMMITTEE PORT ANGELES WORKS! COMMITTEE FROM: Larry Dunbar, Power Resources Manager SUBJECT: Fiber Optic Backbone Business Plan Revised Scope of Work Summary,: Thc Business Plan verified the overall feasibility of four scenarios to develop a fiber optic backbone. As part of thc Business Plan, a strategic direction was approved that explores partnership opportunities to develop a fiber optic backbone. Staff is returning to the PA Works! Committee and the Utility Advisory Committee with a revised scope of work to implement the City/Telephone Partnership and City/Cable/Telephone consortium. Recommendation.: Recommend City Council approval of the revised scope of work to proceed with implementation of the City/Telephone partnership and City/Cable/Telephone consortium and amend the consulting services agreement scope of Work and compensation with Metropolitan Communications Consultants. Background/Analysis: On October 17, 2000, the City Council approved a professional services agreement with Metropolitan Communications Consultants (MCC) including legal services from the firm of Dow, Cogbum and Friedman (DCF) to implement the Community Telecommunications Action Plan. On February 6, 2001, Council approved an agreement in the amount of $166,882 with MCC for fiber optic backbone design engineering services. On April 30, 2001, thc draft business plan was presented at a special meeting of the Utility Advisory Committee (UAC) and Port Angeles Works! Committee (PA Works!) with no action requested. A total of four infrastructure development alternatives were presented including: City developed and owned, City/Cable provider parmership, City/Telephone provider partnership, and City/Cable/Telephone consortium. The business plan confirmed the overall feasibility of each alternative described above and recommended a strategic direction for thc City to follow as it pursues development of a broadband telecommunications infrastructure. On May 22, 2001, Council approved the business plan, rescinded the fiber optic backbone design engineering services agreement with MCC, authorized the Mayor to sign consulting services agreements with MCC and DCF, and instructed Staffto return to the UAC and PA Works! with a comprehensive proposal to implement the Cityfrelephone Partnership and City/Cable/Telephone consortium. June 11, 2001 Utility Advisory Committee Memo Page 2 Below is a summary of the consulting services scope of work that was approved by City Council on May 22, 2001. Strategic Direction Scope of work summary City Pilot Project Project definition and design consulting services for a fiber optic infrastructure pilot project. During the project definition stage, goals, participating customers, and service providers will be determined. The cost of the consulting services scope of work is $35,000 (lump sum) and the construction and equipment costs are estimated at $350,000. Staffwill remm to the UAC requesting their recommendation for additional consulting services from the bid solicitation through the bid award phases of the pilot project. City/Cable provider Technical and legal consulting services were approved to negotiate an partnership upgrade to the Cable Operator's infrastructure as part of the franchise renewal. Prior to negotiations, MCC will prepare the infrastructure parmership, network, cost, and schedule requirements. Outside legal services proposed will be provided to assist the City Attorney with franchise renewal issues as they may arise under Federal Law. The technical and legal consulting services total $25,000 and $10,000 respectively (time and expense). The cost of consulting services will depend on how well negotiations proceed. City/Telephone Technical services in support of consortium partner development Parmership, and through Task ~B. The technical consulting services for consortium City/Cable/Telephone partner development is $20,000 (time and expense). consortium Below is a summary of the revised consulting services scope of work. A copy of the consulting services proposals is attached. City/Telephone Staff has negotiated a comprehensive proposal for consortium planning Partnership, and and consortium partner solicitation with MCC. Additional services for City/Cable/Telephone consortium building and network implementation will be required consortium depending on the response to the consortium partner solicitation. The technical services in support of the revised scope of work are $50,000 (time and expense). C_METROPOLITAN COMMUNICATIONS _ CONSULTANTS Seattle: 5847 McKinley PI, N,, Seaale. Washin§~en 98103 Tel: 206.522.6778 Fax: 206.522.6777 Tacoma: 1201 Pacific Avenue, Suite 1702, Tacorna, Washington98402 Tel: 253.272.1636 Fax: 253.272,1482 w',wv.mcco.com June 6, 2001 Mr. Larry Dunbar Power Resources Manager The City of Port Angeles 321 East Fifth Street Port Angeles, WA 98362-0217 Re: Broadband Infrastructure Development, Additional Proposal Dear Larry: In response to the request of the PA Works! Committee on May 7, we are submitting our proposal detailed in Exhibit A, covering expanded consulting services for development of broadband infrastructure based on the findings and recommendations of the Business Analyses. The proposal may be authorized in part or in whole, with the appropriate signature below, or by other City procedure as required. Thank you for your consideration, we look forward to being of service. Very truly yours, METROPOLITAN COMMUNICATIONS CONSULTAN'r~, LLC Richard C. T. Li, P.E. President Acknowledge and Accepted by the City of Port Angeles by date EXHIBIT A - SCOPE OF WORK page 2 RECOMMENDED STRATEGIC DIRECTION AND WORK SEQUENCE The tasks in the dotted outline box are covered by the City's existing authorizations, issued 10/17/00 and 5/22/01. The bold outline shaded tasks are the items covered by the current request for authorization. Recommended Strategic Direction ~ ,.- ~ I. CATV II. CATV Franddse Fraerkbe Scenado 2 Renewal Negotiations A. Franchise A. Public Proceeding Ordinance ~ Future Ne~ds & ~ Negotiations Interests Report ~ B. Ascertainment ~ Broadband .............. . ..................... I Pannersh~ -Net, PEG & m m~ Re~rt, and ~ Negotiated? · ~ Brah Ordnance ) ] m ~ for Negotiations Yes ,.- ~nity i B. A~option ofI · -i Franchise I Ordinance III. Otker.~eeaeio leletlatleal m ~ ........................................ lrd.cemerkTam i i w. Pilot Projed Building · i ^. ~ilot D~nitiofl and KConsortium li Design Agreements B. Nego~ations B.Pilot Bidding C. Execute and Award Agreements C, Build Pilot D. Begin Consortium D. Integrate Pilot Opera§ohs into Network City DevelopmeM (Scenario 1) / J Port Amgeles Telecommunications Network Implemeltatkm / Metropolitan Communications Consultants Confidential and Proprietary Exhibit A- Scope of Work page 3 PRIOR AUTHORIZATIONS Task I - Cable Franchise Renewal Proceedings (10/17/00) A. Public Proceedings B. Ascertainment Report and Draft Ordinance Task II - Scenario 2 Negotiations (5/22/01) A. Franchise Ordinance Negotiations B. Franchise Ordinance Adoption Task III - Other Scenario Negotiations (5/22/01) A. Continuing development work with service providers and other applicable parties through Task II B. Task iV - Pilot Project (5/22/01) A. ~]ot Proiect Definition and Desi§n. CURRENT AUTHORIZATION REQUEST Task V - Consortium Planning A. Consortium Structure Policies and Procedures C. Functional Operations D. Competencies Required E. Partner Design Requirements F. Investment Required G. Return Opportunities Task VI - Consortium Partner Solicitation A. Prepare RFP's B. RFP Process C. Evaluate Responses D. Determine Strategic Relationships E. Recommend Partners FUTURE WORK (NOT IN THIS AUTHORIZATION) Task IV - Pilot Project (estimated Total Project Cost $350,000) B. Pilot Project Bid Solicitation and Awards C. Build Pilot Project D. Integrate Pilot into Network Task VII - Conso~ium Building Task VIII - Network Im~lementat*m Metropolitan Communications Consultants Confidential and Proprietar,j Exhibit A- Scope of Work page WORK SCHEDULE The schedule for the work under this proposal is shown on the following Gantt chart. V. Consortium Planning A. Consortium Strudure 6/19 B. Policies and Procedures 6/19 C. Fundional Operations 6/19 D. Competencies Required 6/19 E. Partner Design Requirements 6/19 F. Investment Required 7~24 6. Return Opportun/ties H. UAC Acceptance I. Council Acceptance ¥1. Consortium Partner Solicitafio,. A. Prepare RFP's B, RFP Process C. RFP Evaluations : D. Determine Strategic Relationships F. UAC Acceptance G. Council Acceptance BUDGET ESTIMATES The work covered by this proposal is estimated to require the time and expense budgets shown below. Item Description Fee Basis Proposed Budget Task V Consortium Planning T & E 25,000 Task VI Consortium Partner Solicitation T & E 25,000 Total, Estimated Budget Requited, all tasks $50,000 ADDITIONAL WORK, STANDARD HOURLY RATES AND EXPENSES Additional work r~luested, outside the scope of work of this proposal, may be done on a negotiated lump sum basis or at the standard rates listed below. Description Technician Engineer/Analyst Principal Labor charge/hour $40 to $70 $80 to $170 $195 Direct project expenses reimbursed at actual cost plus 10% based on receipts presented Metropolitan Communications Consultants Confidential and Proprietary WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: June 11, 2001 To: UTILITY ADVISORY COMMITTEE PORT ANGELES WORKS! COMMITTEE FROM: Larry Dunbar, Power Resources Manager SUBJECT: Fiber Optic Pilot Project Summary: As part of the Business Plan, a strategic direction was approved that includes a fiber optic pilot project. Metropolitan Communications Consultants will provide a presentation on the project's definition stage including draft goals, participating customer screening process, and otential service providers. recommendation: A presentation on the fiber optic pilot project definition stage will be made with no action requested. Background/Analysis: On May 22, 2001, Council approved the business plan, rescinded the fiber optic backbone design engineering services agreement with Metropolitan Communications Consultants (MCC), and authorized the Mayor to sign consulting services agreements with MCC and Dow, Cogbum and Friedman. As part of the approval of the business plan, a fiber optic pilot project was authorized. The scope of work during the project definition stage includes goals, selection of participating customers, and recruitment of service providers. Design of the fiber optic pilot project will follow the project definition stage. After the design is complete, Staffwill provide a report to the Utility Advisory Committee and PA Works! Committee prior to solicitation of bids. WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: June 5, 2001 TO: Utility Advisory Committee FROM: Jeff Young, WWTP Superintendent SUBJECT: MagnaDhve Proposal Summary: In an effort to reduce electrical consumption, maintenance, and repair costs at the City's WWTP, staffhas investigated the potential for savings which may be realized by the conversion of power couplings which drive the aeration blower system. There appears to be several advantages in a conversion which would utilize locally developed technology manufactured by MagnaDrive. There is little difference in the overall capital cost between the MagnaDrive conversion and other competing products. RCW 70.95 A.090 allows water pollution control facilities the option of not having to go to the competitive bid process. The MagnaDrive conversion would also allow the City to support additional local labor in the retrofit process. Funding for this project will require an amendment in the WWTP 2001 capital budget. Recommendation: Recommend City Council approve the MagnaDrive retrofit on the W3,VTP #2 and #3 blowers. Background / Analysis: In an effort to reduce electrical consumption, maintenance, and repair costs at the City's WWTP, staff has been investigating the potential benefits which may be derived through the conversion of power couplings which drive the aeration blower systems. The analysis of the blower systems shows that substantial electrical energy savings can be made by retrofitting existing two speed blowers to variable speed control. As a secondary measure to the investigation to reduce costs, staff has purposely sought to support local businesses in implementing an effective solution. That effort has led to a strong focus on locally engineered technology manufactured by MagnaDrive. Recently, two other local firms, Prime Marine and Angeles Electric, have teamed with MagnaDrive on a regional business-to- business response to the BPA energy crisis. Working with the City's Economic Development Director and City electric utility staff, a variety of potential facility retrofits using MagnaDrive products have been identified that can lead to reduced energy costs for local area employers. In response to the anticipated increases for electrical energy, magnetic coupler conversions are currently being researched and/or are being implemented at the Daishowa, K-ply and Portac mills as well as several other major energy consumers throughout the county. At the City's WWTP, there are three plant aeration blower applications under consideration. The #1 blower has recently been retrofitted with a Robicon variable frequency drive (VFD). The remaining #2 and #3 blowers are now being considered for similar energy saving conversions. The new variable speed drive on the #1 blower operates at about 900 to 1000 rpm to meet the dissolved oxygen requirement in the secondary process. At this speed, the drive is using about 637 kWh per day. Staffhas taken power usage recordings on the remaining two speed blowers and compared them with the Robicon VFD. The two speed blowers use approximately 1115 kwh per day in the high speed setting, and 748 kwh per day in the low speed setting. With the two speed blowers, the plant has typically been operated in the high speed mode. The analysis of a conversion using the MagnaDrive couplings shows that the same approximate amount of energy can be saved. MagnaDrive asserts, due to the nature of their magnetic coupler design which incorporates a "frictionless, disconnected drive technology", that the City will benefit from additional maintenance and repair cost savings compared to the variable frequency drive design which was involved in the #1 bower retrofit. By implementing a conversion on the #2 and 3 blowers utilizing the magnetic coupler an actual side-by-side comparison can be made over time. The total cost of the Robicon VFD improvement was $14,050 for the one unit. The total retrofit quote from MagnaDrive, Prime Mar/ne and Angeles Electric for two couplers is $33,948.50 or $16,974.25 plus tax for each unit. Attachment: MagnaDriv¢/PRIME/Angeles Electric quotes N:XPWKSXL1GHTXPOWMWIEMOSXmagnadrive memo2.wpd MagnaDdve Co~tion is pleased to provide you w~h ~e following quo~Eon for MagnaDdve Coupling. For qu~ions or a~i~ance w~h your ap~ica~on or quotation please conta~ your M;gnaD~e mpr~n~t~e. To: C~ of Po~ AnQe~s ~l~e~:. 90 .Da~ ~ receipt of depos~ Po~ AnQeles Was~wa~ Aeration Bio,rs 321 E. Fi~t S~t Balance net 30 ADI Con~c~Tim Sm~ Quo~ good through 711/~1 Phone: 360~1~ ~uo~ p~d by: ~yWi~s~ Fax: 360~17~609 Da~: 6~[~ QuoS: SM0170 E~ail: ECONDEV~CI.PORTANGELES.WA.USA Ma~aDrlve Ac~unt Manage: ~eve Man~ll Appli tion: e tion Blower 75150-hp 1800112 m Lins No. ~ Desc~p~ ..... ~ch Unit To~l 1 2 14.5 Ma~naD~e AdduCable Spe~ D~ve $ 10,10q.00 $ 20,200.00 2 2 JoVan Ele~dcA~u~or $ 2,958.~ $ 5,916.00 3 Supe~sbn/In~l~on. Travel, ~nd Training $ 1,600.00 .$ 1,600.00 6 Cu~o~e; ~o pmvlde ~inp ~u~ 8 . Ship,in9 and Handlin~ ..- $ ' 6~.50 $ 677.50 9 Standa~ LimRed Wa~a~y vo~d if n~ ~nst~l~ b~ a Ma~naD~ve Te~hni~an Sub To~l $ 28,393.S0 W~in~on S;a;e S~es T~ ~11 ae Applied On ~v~ce T~I $ 28,393.50 Custo~ Agreemen~Jgnamre of Quob~on A~pa~ce Oaed 1177 Fairview Ave. N. Seattle, WA 96109-4418 (206)694-4700 FAX (206) 694-4747 Angeles Electric, Inc. 524 E. 1st Port Angeles, WA 98362 (360) 452-9264 May 18, 2001 City of Port Angeles ATTN: Scott McLain Please accept our not-to-exceed price of $600 to convert two City Sewer aerators over to magnetic drives. This price includes all labor and materials, but does riot include permits for which you may be exempt. Thank you for considering us for this project. Please call if we can be of further assistance. Sincerely, Ken Simpson pORTA.NGELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: June 11, 2001 TO: UTILITY ADVISORY COMMITTEE FROM: Doyle W. McGinley, Superintendent Water/Wastewater Collection SUI~JECT: Water Quality Report (Calendar Year 2000) Summary: The United States Environmental Protection Agency requires that every water system provide an annual Water Quality Report to its customers. The report is to contain information the potential contaminants present in the water supply that customers receive. The attached Watcq Quality Report for the Port Angeles Water Supply has been prepared for distribution to the City'.~ water customers. Recommendation: Approve the attached Water Quality Report for presentation to the City Council and distribution to water customers of the City. Background / Analysis: In 1996 Congress passed amendments to the Safe Drinking Water Act that included a mandate for the Environmental Protection Agency [EPA] to require community water systems to provide each of its customers with a "Consumer Confidence Report [CCR]" every 12 months. Last year's report, using 1999 data, was delivered to all City of Port Angeles water customers via the Port Angeles Times, Summer Edition 2000, along with a public information announcement on June 22, 2000. This year's report must be distributed by July 1st. The attached Water Quality Report, based on calendar year 2000 data, has been developed in accordance with the EPA CCR regulations. The regulations require information on the quality of the water delivered by the system and characterization of any risks from exposure to any contaminants in the drinking water in an accurate and understandable manner. The report is intended to communicate to customers the quality of their water in terms they can understand. Many of the topics covered are required and some of the actual language used is mandatory. The City was also required to provide information to wholesale customers by April 1, 2001. Testing information was forwarded to the Clallam County Public Utility District in March 2001. Attachment: Water Quality Report A:~200! CCr uae.wlx] WASHINGTON, U.S.A. PUBLIC WORKS & UTILITIES DEPARTMENT Water Quality Report - 2000 Data (As required by USEPA) Dear Water Customer: The City of Port Angeles is pleased to provide you with our annual Water Quality Report. The purpose of this report is to tell our customers about the high quality of their water and their water system. We aggressively safeguard our Elwha River and well supplies, which enables us to always provide our customers with a reliable and safe water 9upply. This report is a summary of the quality of water provided in 2000. It is a record reflecting the hard work by our employees to bring you water that satisfies all of the requirements of the Safe Drinking Water Act. The report includes details about where your water comes from, its quality and how it compares to sthngent standards set by regulatory agencies. We believe that customers who are well informed are able to make better decisions about their drinking water supply. WATER SYSTEM INFORMATION Source of the City's Water: The source for the City of Port Angeles Water System is a Ran_ney Collector (well) located on the east bank of the Elwha River at mile post 1.9 in Section 3, T 30 N, R 7 W. The system identification number is 68550M. The river flows northward from the high peaks of the Olympic Mountains in the heart of the Olympic Peninsula to the Strait of Juan de Fuca. The source of the river and most of the land through which it flows is contained within the boundaries of the Olympic National Park. In April, 2000, the City received notice from the Washington Department of Health that the Ranney collector has been classified as groundwater under the influence (GWI) of surface water. This designation requires the City to meet the requirements of the Surface Water Treatment Rule (SWTR). The City evaluated regulatory compliance options available under the S~/'IY, including filtration and complying with criteria to avoid filtration. The City and the Washington State Depa, iment of Health (DOH) are negotiating an agreement that could effectively meet the filtration avoidance requirement and thus avoid the high cost of filtration. A Bilateral Compliance Agreement between the City and DOH Docket g00-02- 01, details the regulation compliance requirements and is available upon request. Water from the Ranney Collector is tested following the guidelines established by the Washington State Department of Health to detect potential contaminants that could reasonably be expected to be found in drinking water. As water travels over the surface of the land or through the ground, it dissolves naturally occurring minerals and, in some cases radioactive material, and can pick up substances resulting from the presence of animals or from human activity. Because most of the land through which the Elwha River flows is inside the Olympic National Park, there is limited opportunity for human contamination of the water. Contaminants that might be expected in untreated water include: biological contaminants, such as viruses and bacteria; inorganic contaminants, such as salts and metals; pesticides and herbicides; organic chemicals from industrial or petroleum use, and radioactive materials. 321 EAST FIFTH STREET · p. O. BOX 1150 ® PORT AN<3ELES, WA 98362-O217 PHONE: 3t50-417-4805 · FAX: 360-417-4542 · TTY: $60-417-464S . E-MAiL: PU BWOR KS@CI .PORT-ANGELES.WA.US In order to ensure that tap water is safe to drink, the Environmental Protection Agency (EPA) prescribes regulations which limit the amount of certain contaminants in water provided to the public water systems. Food and Drug Administration (FDA) regulations establish limits for contaminants in bottled water which must provide the same protection for public health. V~ATER QUALITY TESTING OCCURS DAILY BY CERTIFIED PERSONN~ ~L Drinking water, including bottled water, may reasonably be expected to contain at least small amounts of some contaminants. Thc presence of contaminants docs not necessarily indicate that water poses a health risk. More information about contaminants and potential health effects can be obtained by calling the Environmental Protection Agency's Safe Drinking Water Hotline (800-426-4791 ). Some people may be more vulnerable to contaminants in drinking water than the general population. Immuno-compromiscd persons such as persons with cancer undergoing chemotherapy, persons who have undergone organ transplants, people with HIV/AIDS or other immune system disorders, some elderly, and infants can be particularly at risk from infections. These people should seek advice about drinking water from their health care providers. EPA/CDC guidelines on appropriate means to lessen the risk of infection by cryptosporidium and other microbial contaminants are available from the Safe Drinking Water Hotline 800-426-4791. Disinfection in the City's water supply is accomplished by dosing the water with chlorine at the Ranney Collector on the Elwha River and at the City's five reservoirs. The chlorine concentration is monitored daily and is maintained at a minimum of 0.10 mg/1 throughout the system. In the year 2000, city water quality personnel collected over 300 water samples through-out the water distribution system. Two of the samples where tested positive for coliform presence. Mandatory repeat sampling were negative. All repeat samples were tested for coliform presence, fecal coliform and E. coll. No further action is required. The City receives a number of calls each year about Fluoridation. The City does not induce fluoride into the public water system. Fluoride is a natural substance found in varying degrees in almost all water supply. Fluoride was not detected in this years sampling. MONITORING WAIVERS: The City has been granted by the Department of Health a waived through December 2001, for the sampling of synthetic organic chemicals( herbicides, general pesticides). Previous background test results indicated that this substance does not occur in this source. TABLE OF CONTAMINANTS FOUND IN SOURCE WATER None detected MONITORING FOR NON-HEALTH RELATED COMPOUNDS INORGANICS Detected Compliance Level MCL SOURCE MCLG Conductivity 95 not set 700 a (umhos/cm) Hardness (mg/I)* 42 not set not set b Magnesium 1.6 not set not set c (raga)* Calcium (mg/1)* 14 not set not set *testing is required, no state action level Table Notes: a. MHOS instrument to measure ION changes in water b. Measure of materials shown above c. Occurs in surface water. Used to measure hardness of water Calcium and magnesium are naturally occurring minerals in groundwater. These minerals arc measured to determine water hardness. Hardness interferes with the sudsing of soap. The scale of hardness is: 0-75 mgfl = sof~; 76-150 rog/1 = moderately hard; 151-300 mg/l = hard. [AWWA standard] DEFINITIONS: Action level [AL] Thc concentration of a contaminant which, if exceeded, triggers a treatment or other requirement which a water system must follow. Maximum Contaminant Level [MCL] The highest level oft contaminant that is allowed in drinking water. MCLs are set close to the MCLGs as feasible using thc best available treatment technology. Thc contaminant is measured in milligrams per liter (rog/L). Maximum Contaminant Level Goal [MCLG] The level oft contaminant in drinking water below which there is no known or expected risk to health. MCLGs allow for a margin of safety. The contaminant is measured in mill/grams per liter (mgfL). Milligrams per liter [mg/l] or parts per million [ppm] Metric measurement of concentration oft contaminant or material. [one part per million and one rog/1 = 1 penny in 10,000 dollars] Micro mhos per centimeter [umhos/cm] Measure of ions in water. 3 WATER CONSERVATION TIPS Water conservation measures are an important first step in protecting our water supply. Such measures not only save the supply of our water, but can also cut the cost of water treatment. Here are a few suggestions: Conservation measures you can use inside your home: ~ Fix leaking faucets, pipes, toilets, etc. ~ Install water saving devices in faucets, toilets and appliances. Replace old fixtures with new ones. This will reduce water consumption by nearly one-half. ~e Wash only full loads of laundry. ~ Do not use the toilet for trash disposal. ~r Take shorter showers. Do not let the water mn while shaving, washing, brushing teeth, or cleaning fruits and vegetables. ~ Soak dishes before washing. Run the dishwasher only when full. You can conserve outdoors as well: ~a~ Water the lawn and garden in the early morning or evening. ~a~ Use mulch around plants and shrubs. ~ Repair leaks in faucets and hoses. Use water-saving nozzles. ~a~ Use water from a buck to wash your ear. Save the hose for rinsing. For more information: The City Council of the City of Port Angeles meets on the 1st and 3rd Tuesday of each month at City Hall, 321 E. 5th Street. Information about the City's utilities may be found on the web site: www.ei.port- ongeles.wa.us. If you have questions, the City of Port Angeles Water System Superintendent may be reached at 360-417-4855. Report Date: June 1, 2001 4 pORTANGELE5 WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: June 11,2001 TO: UTILITY ADVISORY COMMITTEE FROM: Glen,vi A. Cutler, Director of Public Works and Utilities SUnJECT: CODIFICATION OF THE WATER SHORTAGE RESPONSE PLAN Summary: The UAC had questions/concerns about the penalties recommended for those customers that did not comply with thc water shortage plan. The only change recommended is restricting waterflow to 10 gallons per minute for a Level 2 penalty. Also clarification has becn provided regarding the lien proposed for the Level 3 penalty. _ Recommendation; UAC support the enforcement measures proposed. Direct staffto develop an ordinance for UAC review prior to recommending to the City Council adopting the Water Shortage Response Plan. Background / Analysis: On March 5, 2001 Doyle McGinely, Water/Wastewater Superintendent, outlined the water shortage plan. On May 7, 2001 the UAC was requested to endorse the water shortage plan to the City Council for codification which included penalties associated with noncompliance. The UAC had questions/concerns about the penalties recommended. The following information is provided to clarify the Staff recommendation. 1) The Level 1 penalty should remain unchanged. 2) The Level 2 penalty should remain unchanged but the flow restriction be changed from 1 gallon per minute to 10 gallons per minute. Normal residential flow is approximately 20 gallons per minute. This reduction will be a significant impact to the customer but not damage any appliances. 3) The Level 3 penalty remain as proposed (see attached UAC memo) with the $100 charge for reestablishing service being added to the regular bill of the customer. However, service would not be shutoff without prior notice and an opportunity for the customer to comment, in order to satisfy due process requirements, unless a public health or safety emergency exists. The charge must be paid prior to mm on of the water. If unpaid, the charge will become an unperfected lien the same as any unpaid utility bill per RCW 35.21.290 and 35.21.300. This lien is not necessary to be filed in court. This tool is most effective when the property is owned by the occupant. In those cases when the property is occupied by a renter the charge will become a lien for approximately 2 - 3 months and then will be turned over to a collection agency. This tool is also effective if property is sold with an unpaid utility bill. Per the Finance Department Customer Services Representative, Scott Kenyon this procedure is the current practice for over due billings. Attached for information is a summary of penalties by other Washington State municipalities. It is recommended that the UAC support the enforcement measures proposed. Direct staffto develop an ordinance for UAC review prior to recommending to the City Council adopting the Water Shortage Response Plan. Attachment: UAC memo dated May 7, 2001 Water Shortage Response Plan Penalties From Other Agencies N:\G LENN~uac_watershortage_plan.wpd Water Shortage Response Plan Penalties From Other Agencies AGENCY WARNINGS PENALTY Everett None Turn off water to premises - $20 penalty and agree to comply before water turned back on. Fircrest None Misdemeanor - By Ordinance Friday Harbor Minor Emergency 1st Hand Written Warning - Delivered or Posted 2nd Install Flow Restrictor - 1 GPM 3 ~ Disconnect Water - $100 Assessed to Utility Account Moderate Emergency 1s~ Hand Written Warning 2~ Verbal Warning - $100 Assessed to Utility Account 3~ Disconnect Water - $250 Assessed to Utility Account Severe Emergency 1a Verbal Warning - $100 Assessed to Utility Account 2"d Disconnect Water - $250 Assessed to Utility Account All charges assessed for violations shall be paid prior to service being turned back on. If not paid it becomes a lien against the premises. Lien enforced by terminating water service. Gig Harbor None $100 Fine as provided in Municipal Code. Kent 1 st Warning 2~ Infraction - $10 Fine (Issue written notice to 3e Infraction - $25 Fine appear - Enforced by 4~ Infraction - $50 Fine Ordinance) Centralia 1 a Hand Written Warning - Delivered or Posted 2na Disconnect Water - $25 (Day) - $40 (Night) Turn on Charge Plus Install Flow Restrictor. Charges to be paid prior to water being turned back on. Marysville 1 ~ Hand Written Warning - Mailed to Billing Address 2na : Install Flow Reslrictor - Costs Added to Water Bill 3~a Disconnect Water - $50 Turn on Charge to be paid prior to water being turned back on. Charge is a Civil Infraction by Ordinance. Sumner : None 5 Days Written Notice to Disconnect Water. If no compliance then Cited with misdemeanor and $1000 fine by Ordinance. Edmonds 1 ~ Hand Written Warning - Delivered or Posted 2nd Install Flow Restrictor & $25 Surcharge 3'a Install Flow Restrictor & $50 Surcharge If violations continue then water service terminated. ·. ' Water Shortage Response Plan Penalties From Other Agencies Mercer Island 1st Hand Written Warning - Delivered or Posted 2nd Install Flow Restrictor. Ifreslxictor removed by someone other than City then service terminated. Redmond l~t Hand Written Warning - Delivered or Posted 2nd Notice of Violation & $100 Civil Penalty 3r~ Notice of Violation & $250 Civil Penalty 4~h Notice of Violation & $500 Civil Penalty 5t~ Install Flow Restrictor & $500 Civil Penalty 6th Disconnect Water & $500 Civil Penalty All charges assessed for violations shall be added to water bffi. If not paid in 30 days it becomes delinquent and collected in same manner as delinquent accounts. Kirkland Ist Notice of Violation & $50 Surcharge per day 2nd Install Flow Restfictor & $50 Surcharge per day 3r~ Disconnect Water & $50 Surcharge per day Tukwila None Surcharge and $100 and/or Disconnect Water - $25 turn on charge to be paid prior to turn on. Question: If flow restriction device installed on water service, could this cause damages to such household items as water heaters, washing machines and/or dish washers? Answer: Doyle McGinley spoke with 2 local vendors that sell appliances and they both agreed that if the City were to place a flow restriction device at a customers water meter to reduce the flow from 20 gallons per minute (5/8 inch water meter) to l0 gallons per minute that no damage should occur to the appliance. C:\WP DaLa\WATER\Water5 hcaXa&ePen alfies2.wpd WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: May 7, 2001 TO: UTILITY ADVISORY COMMITTEE FROM: Glerm A. Cutler, Director of Public Works and Utilities RE: CODIFICATION OF THE WATER SHORTAGE RESPONSE PLAN Summary: Rainfall and the snow pack in the Pacific Northwest has been below normal for the oast number of months. It is anticipated that low water flows will be experienced in the Elwha River during the summer months. It will be necessary to implement conservation measures. ',taffhas developed a Water Shortage Response Plan. tecommendati0n: UAC recommend to City Council to adopt the Water Shortage Response Plan. Background / Analysis: The Pacific Northwest has experienced abnormal low rainfall for the past number of months. The snow pack is approximately 30 percent of normal, in the Olympic Mountain range that feeds the Elwha River, for this time of year. This situation will most likely result in lower water flows in the Elwha River during the summer months. Low water flows in the Elwha River have a potential to adversely impact the fish habitat. The Governor has declared a water emergency for the State due to the low rainfall and snow pack. In view of these facts it is recommended that the City codify its water shortage plan and develop an enforcement plan. On March 5, 2001 Doyle McGinely, Water/Waste Water Superintendent, outlined the water shortage plan. The plan has five stages: Stage I, IntemaI Preparations Stage l/, Voluntary Conservation Stage 1~, Outdoor Restrictions Stage IV, Mandatory Outdoor Restrictions and Indoor Conservation Stage V, Water Rationing. The Public Works and Utilities Department is proposed to be the lead agency for enforcement/warnings/flow restrictions/disconnects. The recommended penalties associated with noncompliance are in 3 levels. Level 1: Written warning with notification of consequences of continued noncompliance. Level 2: Installation by City of flow restriction device for 7 days to permit only 1 gallon per minute with notification of consequences of continued noncompliance. Level 3: Water service shutoff and $100 charge for reestablishing water service. Charges assessed will constitute a lien against the property until paid. The City Manager and Director of Public Works and Utilities shall have the anthodty to declare a water emergency and implement the Water Shortage Response Plan. The plan requires compliance by City residents as well as other water customers of the City, including the Clallam County Public Utility District, a wholesale water customer. If endorsed by the UAC, staffwill finalize the program and present it to the City Council for approval. W A $ H I N (~ T O N, U.S.A. UTILITY ADVISORY 00MMITTEIE ME O DATE: Jurle 11, 2001 TO: UTILITY ADVISORY COMMITTEE FROM: Tom McCabe, Solid Waste Superintendent SUBJECT: Assumption of Solid Waste Services in Upper Golf Course Road Annexation Area Summary: Waste Connections currently provides solid waste services to the residential customers in the previously annexed areas of upper Golf Course Road. City staff has negotiated an agreement beneficial to both parties to relinquish this service to the City. Recommendation: UAC recommend the City Council approve the City's assumption of solid waste services for the annexed areas on upper Golf Course Road and authorize the City Manager to sign the Second Amendment to the Solid Waste Disposal Contract with Waste Connections. Background / Analysis: Waste Connections and the City Staffhave reached a tentative agreement to allow the City to provide refuse and recycling services to 31 homes on upper Golf Course Road. The area on the east side of Golf Course Road was annexed November 1, 1993 and has 23 homes. The area on the west side of Golf Course Road was annexed January 28, 1996 and has 8 homes. City staffhas been contacted by residents in both of the annexed areas to provide solid waste services. RCW35A.14.900 allows the City to assume solid waste services after a period of seven years if the following criteria are met at the time of annexation. 1. Notify the Utility Transportation Commission. 2. Grant a seven-year franchise or permit to the existing solid waste company. 3. Adopt an ordinance or resolution specifying the date upon which the City will assume solid waste collection. Because the City did not meet the above conditions at the time of annexation, staff has negotiated an agreement with Waste Connections to relinquish the two annexed areas with the following conditions. 1. Waste Connection agrees not to seek measurable damages from this action and the City agrees that the percentage rate differential that we are currently charging for solid waste disposal at the City Landfill shall remain at the same percentage differential until the landfill closes on or before December 31, 2006. 2. The City expressly acknowledges that this agreement will not set a precedent for allowing the City to serve future annexed areas without the statutorily required exclusive franchise for a minimum of 3. Waste Connection agrees to release the City from liability for prior lack of notification on these two annexations. The City Attorney has developed the attached "Second Amendment to the Solid Waste Disposal Contract," which describes the mutually agreed upon conditions for the agreement between the City and Waste Connections. Attachrramts: Second Amendment to Solid Waste Disposal ConUact Letter from Waste Connections Map SECOND AMENDMENT TO SOLID WASTE DISPOSAL CONTRACT THIS AMENDMENT to the solid waste disposal contract dated February 7, 2000 is made and entered into by and between the City of Port Angeles, a municipal corporation, hereinafter called the "City", and Murrey's Disposal, hereinafter called the "Contractor". WHEREAS, the City and Contractor are parties to a solid waste disposal contract in effect until December 31, 2000; and WHEREAS, the City and Contractor have agreed upon the following terms under which the City will be allowed to take over solid waste collection service to areas that have already been annexed into the City; and WHEREAS, the City and Contractor have agreed that, in consideration for the City taking over solid waste collection service in previously annexed areas, the City will agree to the landfill disposal rate methodology as set forth herein; NOW, THEREFORE, the City and the Contractor hereby agree that the solid waste disposal contract dated February 7, 2000 shall be amended by amending paragraph 3. Consideration to read as follows and by adding the following paragraph 10. Service of Previously Annexed Areas: 3. Consideration. The Contractor shall pay City the sum of $63.00 for each ton of acceptable waste delivered to the Port Angeles LandfilI pursuant to this Contract. Acceptable waste that requires special handling will be charged at $190.00 a ton in accordance with PANIC 13.56.020C. The City hereby agrees that if the current standard landfill disposal price per ton is increased or decreased, the rate applicable to the Contractor shall remain at the same reduced level that Contractor is currently charged in proportion to the revised standard landfill disposal rate until the Port Angeles landfill closes on or before December 31, 2006. 10. Service of Previously Annexed Areas. The Contractor hereby agrees that on February 1, 2001 the City shall be allowed to commence service of all areas annexed into the City as of December 31,2000; provided that the City hereby acknowledges that the Contractor will not be deemed to have set a precedent for allowing service to newly annexed areas without notification as required by state statute; and provided further Second Amendment to Solid Waste Disposal Contract Page 1 of 2 that the Contractor hereby agrees to release the City from any liability the City may have to the Contractor for lack of notification as required by state statute for serving the areas annexed into the City prior to December 31, 2000. DATED this __ day of ., CITY OF PORT ANGELES MURREY'S DISPOSAL Michael Quinn, City Manager Name: Title: ATTEST: APPROVED AS TO FORM: Becky J. Upton, City Clerk Craig D. Knutson, City Attorney F:~AG REEMENTS&CONTRACTShnurrey~-amend I .wpd Second Amendment to Solid Waste Disposal Contract Page 2 of 2 2548 West 19th Street · Port Angeles, \VA 98363-1332 · (360) 452-7278 ° FAX (360) 417-0122 ° 1-800-422-7854 April 20. 2001 Tom McC~be, Solid Wasle Superintendent Public Works & Utilities Depm-lment City of Pon Angeles PO Box 1150 Pon Angeles, WA 98362 Re: City. Assumption of Solid Waste Collection in the Woodhaven Area Please accept this letter as our agreement to the City assuming solid waste collection service in all areas ~exed as of December 31, 2000 (Specifically the Wenflhaven I and Woodhaven II annexed areas) with the following conditions: As consideration for our agreement not to seek measurable damages from tiffs action, the City agrees that the percentage rate differential that we are currently pay/ng ~or solid waste disposal al the City Landfill shah remain at the same percentage differential through the year 2006. · The City expressly acknowledges that tiffs agreement will not set a precedent for allowing the City to service future annexed areas without the statutorily required exclusive franchise for a minimum of seven years. · We agree 1o release the CiLy from liability for prior lack of notification on these two annexations. In closing, we remain conmUtted to working in cooperation with thc City in reaching a mutual agreement Please let me know if you have any questions. Sincerely, Cc: City File FAdie Westmoreland We Pick up Where You Left Off City of Port Angeles Area Map ~ ~~ ~, uo^ LEGEND City boundary Building Streetc] N ,, alley 500 0 500 Feet gravel street This map is not intended for use as a legal description. Locations of features /"..../paved drive '~ are approximate only. Topographic features are :t: 5 feet of actual ~' paved street locations. This map/drawing is produced by the City of Port Angeles for its own use and purposes, Any ~her use of this map/drawing ~ Parcel shall not be the responsibility of the City. City of Port Angeles Area Map ~ .~ ~~~, /,~, UOA LEGEND ~City boundary ~Building N o [ Streetcl Street ,, alley 500 0 500 Feet A r~ '," ,,' dirt street · '..- grave dri',e This map is not intended for use as a legal description. Locations of features gravel street are approximate only. Topographic features are ± 5 feet of actual ...""......-' paved drive x /~ paved street locations. This map/drawing is produced by the City of Port Angeles for its own use and purposes. Any other use of this map/drawing ~ Parcel shall not be the responsibility of the City. WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: June 11, 2001 TO: UTILITY ADVISORY COMMITTEE FROM: Yvonne Ziomkowski, Finance Director RE: Utility Tax on Electric Sales Summary: The City is expecting a substantial increase in electric rates starting in October. The City's utility tax on electric sales would also increase substantially in direct proportion to the increase. A rebate of the increased amount of electric utility taxes would help mitigate retail rate increases required to cover the wholesale power increases from BPA. Recommendation: Recommend City Council authorize rebating electric utility taxes that are in excess of $1,302,000 annually for a one year period. Background / Analysis: The Bonneville Power Administration is anticipating increasing its wholesale power rates substantially starting October 1, 2001. The City also anticipates a substantial increase in its retail rates to customers. The Electric utility pays a utility tax to the City's general fund equal to six percent of total revenues. Large retail rate increases would also generate substantial increases to the electric utility tax. Staffbelieves that a rebate of the increased electric utility taxes will help mitigate the retail rate increase required due to the increase in BPA's wholesale power rates. Because of the likelihood that electric sales could be very volatile due to the increases that are forthcoming, a change in the electric utility tax rate is not recommended. The annual amount of $1,302,000 represents the projected annual revenue from electric utility taxes at current retail rates, plus a five percent increase for inflation. The method of rebating the amounts back to customers has not yet been finalized. Staffwill remm to UAC when details have been completed. This is being brought before the UAC at this time because this issue ties into the Rate Mitigation Agreement the City is proposing between BPA and the City. The rebate of electric utility taxes contributes to the financial incentive for Daishowa America to substantially reduce their electrical consumption by reducing their pulp refining operation, which allows the City to achieve the 10% reduction in load that is requested by BPA. N:kPWKS~IGHTh°OWIvlhM EMO S~ua¢061101Utility~ax.wpd pORT,/ NGELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTI=I::: MEMO DATE: June 11, 2001 TO: UTILITY ADVISORY COMMITTEE FROM: Stephen Sperr, Utility Engineer SUBJECT: Right-of-Way Permit for City Drain Line through National Park Service Property Summary.' The City will be replacing an existing overflow/drain line for its Peabody Heights Reservoir this summer. This includes work within the Olympic National Park. A Right-of-Way permit is required to complete the work and allow use of the line. Recommendation: Recommend City Council authorize the City Manager to sign the attached Right-of-Way permit on behalf of the City. Background / Analysis: The City, in consultation with Olympic National Park (ONP), has designed an overflow/drain line to replace the existing one serving the Peabody Heights Reservoir. The existing line ends several hundred feet away from Peabody Creek and is causing erosion problems in the area, which is within ONP. There is no existing Right-of-Way Permit or easement for use or maintenance of the existing line. ONP assisted the City in developing a National Park Service (NPS) Right-of-Way Permit to allow construction of the replacement overflow/drainline, including a flow diffuser to be located adjacent to Peabody Creek. The attached Permit will allow construction of the replacement facilities to be completed this summer as part of the recently awarded Black Diamond Reservoir Improvements contract, Project 99-18. It will also allow the City to use the facilities for the next ten years and will allow time for the City to negotiate a permanent easement agreement with the NPS, which could take several years to complete, according to ONP. Attachment: National Park Service Right-of-Way Permit STATE OF WASH/NGTON Right-of-Way Permit No.: RW-9500-01-006 United States Department of the Interior National Park Service Right-of-Way Permit for City of Port Angeles WHEREAS, City of Port Angeles, (hereinafter Permittee) has applied to the United States of America (her(mafter Permitor) for a right-of-way to construct, operate and maintain an underground stormwater, overflow and drain piping as part of the Peabody Heights Reservoir project within the boundaries of Olympic National Park (hereinafter Park), a unit of the National Park System, United States Department of the Interior; and WHEREAS, the National Park Service (hereinafter Service) administers the Park that was established as a unit of the National Park System, United States Depattment of the Interior pursuant to 16 U.S.C. § 251-255; and WHEREAS, the Director of the National Park Service (or his delegate) is required pursuant to 16 U.S.C. la-1 to authorize only those uses of land within the Park which will not be in derogation of the values and purposes for which the Park was established, except as may have been or shall be directly and specifically provided by Congress; and WHEREAS, 16 U.S.C. 79 authorizes the use of fights-of-way through the Park for stormwater, overflow and drain piping, provided that the Director (or his delegate) finds that the same is not incompatible with the public interest; and WHEREAS, the Service has promulgated regulations at Title 36 Code of Federal Regulations, Part 14, regarding r/ghts-of-way over, across and upon the lands administered by the National Park Service; and WHEREAS, the Service has been delegated the authority to allow such rights-of-way over, across and upon land under the jurisdiction of the Service pursuant to 245 Departmental Manual 5.1; and WHEREAS, the Service has determined that the proposed use of the Park lands for the construction, maintenance and operation of the subject stormwater, overflow and drain piping is neither incompatible with the public interest nor inconsistent with the use of such lands for Park purposes; and THEREFORE, The United States, through the Service, an agency of the Department of the Interior, acting pursuant to the authority of 16 U.S.C. 5 or 16 U.S.C. 79 issues this permit to the City of Port Angeles, P.O. Box 1150, Port Angeles, WA 98362, for a right-of-way across Federal lands within Olympic National Park for the construction, operation and maintenance of a stormwater, overflow and drain piping. The permittee agrees to comply with and be bound by the Service regulations, 36 CFR Part 14, regarding rights-of way over, across and upon lands administered by the Service, in addition to the terms and conditions set forth in this permit. MAP AND LEGAL DESCRIPTION OF RIGHT-OF-WAY The right-of-way shall be 50 feet wide with 25 feet on either side of the described centerline for underground lines. For those parts of the permit which describe City of Port Angeles appurtenances, the right-of-way shall be 50 feet centered on the equipment or as otherwise described. That portion of the NW¼ of the NE¼ of Section 15, Township 30 North, Range 6 West, W.M., as well as that portion of the SE¼ of the NE¼ of Section 15, Township 30 North, Range 6 West, W.M., lying within the boundaries of Olympic National Park, and as described on the map located at Exhibit A. AUTHORFFY TO ENTER INTO AGREEMENT FOR RIGHT-OF-WAY The Permittee represents and warrants to the Permittor that: (1) It is duly authorized and empowered under applicable laws of the State of Washington and by its charter and bylaws to enter into and perform this agreement in accordance with the provisions; (2) Its City Council, or duly authorized executive committee, has duly approved, and has duly authorized the execution, delivery, and performance by it of this agreement by the City Manager; (3) All action that may be necessary or incidental to the approval of this permit, and the due execution, delivery, and performance by the Permittee has been taken; and (4) All of the foregoing approvals, authorizations, and actions are in full fome and effect at the time of the execution and delivery of this agreement. PERMITTED USE OF RIGHT-OF-WAY BY THE PERMITrEE The fight-of-way is for the sole purpose of constructing, operating and maintaining a stormwater, overflow and drain piping across the above described lands, application for which was made in writing to the superintendent, Olympic National Park (hereinafter superintendent) on March 13, 2001, by the Permittee. That in utilizing the right-of-way, the Pennittee agrees to comply with and be botmd by laws and regulations regarding the use and occupancy of the lands administered by the Service and by the terms of this p~mfit. DEVIATION FROM APPROVED RIGHT-OF-WAY The Permittee agrees that it will not deviate from the location of the approved right-of-way in its construction, operation and maintenance of the subject stormwater, overflow and drain piping. All ingress and egress for construction, maintenance and operation of the stormwater, overflow and drain piping shall be restricted to the righi-of-way. In the event that the Permittee determines that ingress and egress over Park lands not included in the right-of-way are necessaxy for the construction, maintenance and operation of the subject stormwater, overflow and drain piping, then the Permittee must apply, in writing, to the superintendent for approval of such ingress and egress. EFFECTIVE DATE OF THE RIGHT-OF-WAY The effective date of this permit shall be the date of its execution by the Regional Director (or delegate) and the Permittee. The right-of-way permit shall terminate TEN (10) years fi-om the effective date, at noon, (State time) unless prior thereto it is relinquished, abandoned, or otherwise terminated pursuant to the provisions of this permit or of any applicable Federal law or regulation. RENEWAL OF RIGHT-OF-WAY Unless relinquished, abandoned, or otherwise terminated pursuant to the provisions of the permit or of any applicable Federal law or regulations, the Permittee may make application to the superintendent, at least six months prior to its expiration date, for renewal of the right-of-way. The Permittee shall file a written application, SF 299, in accordance with the existing Service regulations, to renew the right-of-way. The Permittee shall agree to comply with all the laws and regulations existing at such application date governing the occupancy and use of the lands of the park for the purposes desired. The right-of-way permit may be renewed after full consideration of the application. 4 DISPOSAL OF PROPERTY ON TERMINATION OF RIGHT-OF-WAY Upon the termination of the fight-of-way permit by expiration or by cancellation for cause, in the absence of any agreement to the contrary, if all monies due the Permittor have been paid, the Permittee shall be allowed six months, or such additional time as may be provided, in which to remove fi.om the right-of-way all property or improvements of any kind placed by them; and if not removed within the time allowed, all such property and improvements shall become the property of the United States. NONUSE OR ABANDONMENT It is understood and agreed by the parties that all or any part of the fight-of-way may be terminated at the discretion of the Permittor in the event of nonuse or abandonment for a period of two years by the Permitte~. In the case of termination, the Permittor will provide the Permittee with written notice including reasons for termination. FEES FOR USE AND OCCUPANCY The Permittor and Permittee understand and agree that the consideration for utilization of the lands, pursuant to the right-of-way, for a municipally operated project is waived according to 36 C.F.R. 14.26(c)(1). FEES AND REIMBURSEMENT OF COSTS Pursuant to 36 C.F.R. 14.22(a)(2), for State or local governments or agencies or instrumentalities thereof where the lands will be used for governmental purposes and continue to serve the general public, payment of fees and costs incurred by the Service as a result of this permit are waived. TERMS AND CONDITIONS The permit is subject to the following terms and conditions: (1) This permit shall not be construed as a permanent interest in the land of the right-of-way or as an abandonment of use and occupancy by the United States, but shall be considered a use of the land as described, anything contained to the contrary notwithstanding. (2) This right-of-way permit may be terminated upon breach of any of the stated conditions or at the discretion of the Regional Director of the Sevvice. Perrnittec will be given written notice and thirty (30) days to allow an opportunity for corrective actions before termination may occur. The written notice shall describe the specific violations of the permit. If Permittee does not correct the violations to the satisfaction of the Service, or present a reasonable plan acceptable to the Service within the thirty (30) day period, then the N-PS shall be entitled to revoke this permit. (3) The Permittec shall comply with all applicable State and Federal laws and existing regulations promulgated thereunder in the construction, operation and maintenance of the stormwater, overflow and drain piping. (4) The superintendent, Olympic National Park, shall be notified in writing no less than two weeks prior to the start of initial construction on Park lands. An on-site meeting will be conducted no less than one week prior to start of construction between representatives of the Park and the Permittee construction/maintenance supervisor to determine and clarify the scope of the project and any requirements of the Service. The Permittee construction/maintenance supervisor will contact the Park on the moming of the fa'st day of work and each morning thereafter prior to entering the Park, advising the location and extent of work crews and equipment in the Park. Except in extraordinary situations and with the agreement of the superintendent, or as detemfined at or prior to the on-site meeting above, all work on Park lands will be conducted on a Monday through Friday, 8 a.m. through 5 p.m. basis. All work on Park lands shall be completed to the satisfaction of the superintendent or his or her representative. (5) The Permittee shall have a right of ingress and egress within the fight-of-way at all times for the purposes of maintaining and operating the existing stormwater, overflow and drain piping and appurtenances. (6) If any portion of the stormwater, overflow and drain piping is to be installed underground within the road shoulders of public roads, they shall comply with the specifications of the highway department having.jurisdiction. Detailed procedures of installation are also subject to approval in advance of construction by the superintendent or his or her n~presentative. (7) If required, the Permitlee shall file a performance bond with satisfactory surety payable to the Permittor to fully insure compliance with the permit terms and conditions. (8) The Permittee shall be responsible to pay the Permittor for any damage resulting from this permit which would not reasonably be inherent in the use which the P~cmittee is authorized to make of the land. The Permittor will give the Permittee written notice of such damage and the Permittee will either take corrective action or pay the indicated amount as agreed upon and approved by the superintendent. (9) Use by the Permittee of the land is subject to the right of the Park to establish trails, roads, and other improvements and betterments over, upon or through said premises, and further to the use by travelers and others of such roads, trails, and other improvements akeady existing. If it is necessary to exercise such right, every effort will be made by the Park to refrain from unduly interfering with or preventing use of the land by the Permittec for the purposes intended under this p~mdt. (10) The Permittee shall take adequate measures as directed and approved by the superintendent to prevent or minimize damage to Park resources. This may include restoration, soil conservation and protection measures, landscaping, and repairing roads, trails, fences, etc. The Permittee shall dispose of brush and other refuse as required by the superintendent. The superintendent or his or her representative may inspect the right-of-way area as deemed necessary. (1 I) The Permittee will halt any activities and notify the superintendent upon discov~ of threatened or endangered species or archeological, paleontological, or historical findings. All artifacts unearthed remain the property of the Park. (12) No vegetation may be cut or destroyed without first obtaining approval from the superintendent. Any vegetation that must be removed shall be mitigated as specified by the superintendent. (a) The proposed route of the trench will be staked/flagged so it can be reviewed prior to trenching. The primary consideration from a vegetation perspective is that the alignment shall avoid, to the greatest extent possible, tree root systems. This may require significant detours in the route versus an alignment, which uses the least minimum of pipe material. (b) After the route is approved, surface duff and litter shall be manually raked aside prior to trenching. (c) The trenching machine shall be thoroughly washed (flushed with water) to remove soil prior to use on Park lands. (d) After the pipe is laid and the trench is backfilled, jute netting or coir fabric shall be placed and staked to cover the exposed soil. A sample of the material to be used shall be provided to the Park for approval prior to use. The product may contain biodegradable plastic netting. (0 The reserved duff and litter shall be replaced back on top of the erosion control netting/fabric. (f) No seeding will be required. The use of hay or straw mulch, bark, or importation of any materials, which may contain non-native (weed) seeds, is prohibited. (g) Prior to line excavation, all plants of the understory species listed below shall be carefully excavated along the right-of-way and placed in holding areas outside the work zone. Roots of salvaged plants shall be completely covered with soil and duff excavated from the top layer of the ditch cut. Red elderberry (Sambueus racemosa) Salmonberry (Rubus parviflorus) Swordfem (Polystichum munitum) Western hemlock (Tsuga heterophylla), only seedlings under 2' tall ? Western red cedar (Thuja plicata), only seedlings under 2' tall (h) After line placement, salvaged materials will be planted in natural groupings along the whole length of the new line. Plants will be planted in salvaged topsoil and covered with a 6"- 12" layer of salvaged duff. If the project work takes place during dry conditions the plantings shall be watered initially prior to project completion. (i) The Olympic National Park greenhouse has 60 seedling conifers propagated from seeds collected in the headquarters area which will be donated to this project. These seedlings will be planted with salvaged plant materials along the completed line. (13) Use of pesticides and/or herbicides on Park lands is prohibited without prior written approval from the superintendent. (14) In the event any facilities covered by this permit should interfere with future Park construction, the Permittee agrees to terminate the use or relocate them at not cost to the Service within 60 days after written notice. (15) The Permittce agrees to do everything reasonably within its power, both independently and on request of the superintendent, to prevent and suppress fires resulting from the Permittee's activities on and adjacent to the right-of-way. (16) The Permittee agrees that the right-of-way shall be subject to the express condition that the use will not unduly interfere with the management and administration by the Service of the lands. Further, the Permittee agrees and consents to the occupancy and use by the Park, its Permittees, or lessees of any part of the right-of-way not actually occupied or required by the project, or the full and safe utilization, for necessary operations incident to such management, administration, or disposal. (17) Upon expiration, revocation or termination of this permit, the Permittee shall leave the lands subject to the permit in as nearly the original condition as possible, as directed and approved by the superintendent (18) The Perrrfittee agrees that in undertaking all activities pursuant to this permit, it will not discriminate against any person because of race, color, religion, sex, or national origin. (19) No member of or Delegate to Congress or Resident Commissioner shall be admitted to any share or part of this permit or to any benefit that may arise therefrom, but this provision shall not be construed to extend to this permit if made with a corporation for its general benefit. (20) No transfer of the permit will be recognized unless and until it is first approved in writing by the Regional Director of the Service. Such a transfer must be filed in accordance with existing regulations at the time of transfer, and must be supported by the stipulation that the assignee agrees to comply with and to be bound by the terms and conditions of the right-of-way. @ (21) This agreement is made upon the express condition that the United States, its agents and employees shall be free fi.om all liabilities and claims for damages and/or suits for or by reason of any injury, or death to any person or damage to property of any kind whatsoever, whether to the person or property of the Permittee, its agents or employees, or third parties, fi.om any cause or causes whatsoever while in or upon said premises or any part thereof during the term of this agreement or occasioned by any occupancy or use of said premises or any activity carded on by the Permittee in connection herewith, and the Permittee hereby covenants and agrees to indemnify, defend, save and hold harmless the United States, its agents, and employees fi.om all liabilities, charges, expenses and costs on account of or by reason of any such injuries, deaths, liabilities, claims, suits or losses however occurring or damages growing out of the same. (22) Any alterations to this permit must be in writing and signed by the parties. Renewals will be subject to regulations existing at the time of renewal and such other terms and conditions deemed necessary to protect the public interest. (23) Any underground utilities previously located within this right-of-way which are damaged or disrupted during maintenance shall be repaired or restored by the Permittee within four hours. (24) The Permittee shall be responsible for the provision and maintenance of proper signs, barricades or other means of warning motorists and pedestrians of danger during all periods of repair and maintenance. (25) Nothing herein contained shall be construed as binding the Service to expend in any one fiscal year any sum in excess of appropriations made by Congress or administratively allocated for the purpose of this permit for the fiscal year, or to involve the Service in any contract or other obligation for the further expenditure of money in excess of such appropriations or allocations. COM~PL/ANCE Failure of the Permittee to comply with any provision of this right-of-way permit shall constitute grounds for immediate termination of ttfis permit. WAIVER NOT CONTINUING The waiver of any breach of any provision of this right-of-way permit, whether such waiver be expressed or implied, shall not be construed to be a continuing waiver or a waiver of, or consent, to any subsequent or prior breach of the same or any other provision of this permit. IN WlrNESS WllEREOF, the Regional Director of the National Park Service, acting on behalf of the United States, in the exercise of the delegated author/ty ~om the Secretary of the Department of the Interior, has caused this Permit of Right-of-Way number RW-9500-01-006 to be executed this day of ,2001. David K. Morris Superintendent Olympic National Park National Park Service United States Department of the Interior ACCEPTED THIS day of ,2001. Michael Quinn, City Manager City of Port Angeles Attest: Becky Upton, City Clerk WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: June 11, 2001 To: UTILITY ADVISORY COMMITTEE FROM: Stephen Sperr, Utility Engineer SUBJECT: Completion of Industrial Water Line Repairs, Project 20-27 Summary: Leaks in the Industrial Water Line were repaired during the week of May 14, 2001. The City has not received a bill for the final cost, but estimate that the final cost will be in the range of $70,000-100,000. Daishowa will reimburse the City for the cost and coordination of this work. Recommendation: For information only. Background / Analysis: The Public Works and Utilities Department coordinated repairs on the Industrial Water Line (IWL) by Western Waterproofing. The repairs were completed during a scheduled mill shutdown by Daishowa America the week of May 14, 2001. At least three locations on the IWL had leaks of varying volume, estimated to be a total of approximately 450 gallons per minute (gpm). These leaks were repaired after the IWL was emptied and the leaks were reduced to approximately 20 gpm. Total elimination of leaks in this pipeline is impossible, due to the nature of the tunnels that make up a significant portion of the system The estimated cost to complete the work was in the range of $70,000-$100,000. The method of repair was similar to previous repair work completed on the IWL in 1985 and 1991, when a hydraulic cement was used. A hydrophyllic urethane was also used at some leaking joints, to allow expansion/contraction without further cracking and leaking. Daishowa America will reimburse the City for the final contract amount for this work, per the existing maintenance agreement. Daishowa America has indicated their satisfaction with the performance of the repair work. A representative of the Washington State Department of Labor and Industries (L&I) Safety Consultant Program assisted in the site safety coordination, and visited the site during the work. The L&I representative commended the City for its jobsite safety and submitted a positive report to the City. A copy of the cover letter fxom the L&I report is attached for your information. The L&I report is available upon request. N 5PROJECTS~20~27 I.W.L r~pairs\UACrnemo3 .wpd CONSULTATION AND EDUCATION SERVICES 1305 Tacoma Avenue South Room 305 Tacoma, Washington 98402-1988 May 18, 2001 Mr. Stephen Sperr City of Port Angeles P.O. Box 1150 Port Angeles, Washington 98363-0217 REFERENCE: Consultation # 502073869 Dear Mr. Sperr: This letter is confirmation of the consultative visit that I made to your operation on May 15, 2001. The purpose of this service was to perform a comprehensive safety evaluation of the Industrial Water Line Repair operation, its equipment and the formal site-specific safety and health program. Although this report is considered CONFIDENTIAL, you are required to share the contents with your employees within 30 days. Your organization should be commended for the proactive and positive approach you took towards safety and health. Pass on to everyone, "WELL DONE". I am impressed in the way in which safety and health was a major part in the complete process. It was a pleasure working with everyone in all the pre-planning meetings that took place for this operation. I am especially impressed with the LOCK BOX operation that was used for this operation. There was a lot of thought that went into this program's development. I am especially impressed with the PROJECT LOCK system that was used. This one specific procedure ensures that positive lockout remains for the entire operation. Pass on to the individuals that developed this lockout procedure "WELL DONE". Pass on to everyone that was involved in this operation my thanks for maintaining such a high level of awareness for safety and heath. The items referenced in the enclosed report were hazards or problems, identified, at the time of my visit, and are not necessarily all that may be present at the work site. Additionally, situations change and conditions could be different on a day to day basis. Therefore, it is the responsibility of the employer to continually review the conditions present and to identify hazards through a self-inspection program. Stephen Sperr May 18, 2001 Page Two Again, I wish to thank everyone and you in taking the time out so we could go through this. If you have any questions or need any assistance with any Safety or Health related items or if you have any questions regarding this report, please give me a call. Sincerely, James S. S~ms '~ Safety Consultant Telephone (253) 596-3920 E-mail: sims235@lni.wa.gov Enclosure: Written Report W AS H I N g T O N~ U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: June 11, 2001 To: UTILITY ADVISORY COMMITTEE FROM: Brad Collins, Community Development Director RE: CPA 01-0l Utility Extension Policy Change Summary: After a year of discussion the City Administration has proposed and the Planning Commission has recommended that the longstandin, g Comprehensive Plan policy prohibiting the extension of City services outside the City limits without annexation be reversed. The primary reasons for this policy change are related to the lack of success the current policy has had on effecting new development. While the extension of utility services into the UGA will be at the iscretion of the City, it will not be without conditions that are imposed administratively to mtect the City. For example, the users will be charged a 50% surcharge for utility usage outside le City. In addition, the user will be required to sign a no-protest agreement for future annexation and local impr.oveme, nt district (LID) proposals within prescribed legal time lines. the end result is that services will be made available for those in need and for those areas that Ibenefit from the City's efforts to extend services. By providing such services under these conditions, there is no disincentive to future annexation; and, in fact, there is a financial incentive to reduce utility charges once annexed into the City. Reco e d ti : The Department of Community Development recommends that the Utility Advisory Committee forward a recommendation of approval similar to the Planning Commission to change Utilities and Public Services Element Policy D.3 in the City's Comprehensive Plan to allow for the extension of urban services by the City, at its sole discretion, to the urban growth area without prior annexation. Background / Analysis: After a year of discussion the City Administration has proposed and the Planning Commission has recommended that the longstanding Comprehensive Plan policy prohibiting the extension of City services outside the City limits without annexation be reversed. The primary reasons for this policy change are related to the lack of success the current policy has had on effeeting new development. First, the City of Port Angeles has not experienced much annexation since the policy was first adopted in the late 1970's. Second, new development has been taking place outside the City limits without the necessary urban services, resulting in a growing burden on subsequent development or the City as a whole to pay for the infrastructure for existing development. Third, the City has not planned for capital facilities in the areas outside the City Utility Advisory Committee Memo Comprehensive Plan Utility Extension Policy Page 2 limits but within the urban growth area, even though under the Growth Management Act the City will ultimately become responsible for providing services in the UGA. Finally, it has become impossible to tell whether annexation is a hurdle for providing urban services to new development taking place in the UGA or the provision of urban services to new development taking place in the UGA could discourage annexation fxom occurring. Both the City and the County land use planners are frustrated in their review of new development applications with the seemingly Catch-22 requirement that urban services be delivered concurrent with the development and that urban services cannot be delivered by the City, who is the ultimate, if not primary, provider of such services as water supply. Another factor in this policy change relates to the Growth Management Act, which in 1990 altered the land development process inside and outside urban growth areas, making annexation and service delivery somewhat inevitable. The Planning Commission was not in total agreement about how the new policy allowing service extensions outside the City without annexation should be worded. In particular, the verb "should" could be interpreted to imply a duty on the part of the City to serve any and all new development regardless of feasibility (distance and cos0. "Should" is defined in the Comprehensive Plan to indicate that the City has discretion as oppose to "shall" which is also defined to mean that the City does not have discretion. The staff'and all but one of the Planning Commissioners have agreed to use the policy verb "should" with the added language that it's "at the sole discretion" of the City. "Should" was preferred over "may" to be consistent with other Comp Plan policy language and because "should" implies a responsibility to provided services but not an obligation to do so. While the extension of utility services into the UGA will be at the discretion of the City, it will not be without conditions that are imposed administratively to protect the City. For example, the users will be charged a 50% surcharge for utility usage outside the City. In addition, the user will be required to sign a no-protest agreement for future annexation and local improvement district (LID) proposals within prescribed legal time lines. The end result is that services will be made available for those in need and for those areas that benefit from the City's efforts to extend services. By providing such services under these conditions, there is no disincentive to future annexation; and, in fact, there is a financial incentive to reduce utility charges once annexed into the City. The Clallam County Community Development Director Bob Martin and Planning Director Andy Meyer have the support of the County Commissioners in endorsing this City policy change. Mr. Martin has long been a proponent of the City providing services to new development in the UGA. The County's comment letter is attached to this memo. Attachments: CPA 01-01 Draft Ordinance Clallam County Comment Letter G:\P~m~ning\uti~ext.epa ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, amending Ordinance 2818 as amended and the Comprehensive Plan by revising the City's planning areas to specifically designate the area east of Race Street and the Port Angeles Urban Growth Area (UGA), by amending a policy in the Commercial Goals and Polices section of the Land-Use Element to clarify the intent, by amending policies in the Transportation Element to comply with the Growth Management Act, by amending policies in the Utilities and Public Services Element to allow for City services and facilities in the UGA without annexation, by adding a new item to the Objective section of the Conservation Element to facilitate compliance with the Endangered Species Act, and by amending sections of the Transportation Element, the Utilities and Public Services Element, and the Capital Facilities Element as requested by the Nonmotorized Advisory Committee. WHEREAS, the City of Port Angeles adopted its present Comprehensive Plan on June 28, 1994, by Ordinance 2818; and WHEREAS, the City has established a process for amending the Comprehensive Plan by Ordinance 2858 and Chapter 18.04 of the Port Angeles Municipal Code; and WHEREAS, SEPA review of the proposed amendments was completed on April 24, 2001; and WHEREAS, the City Council has held a public hearing, has considered the Planning Commission's recommendations, and has entered its findings and conclusions addressing elements set forth in PAMC 18.04.060 and in support of adopting the proposed 2001 Comprehensive Plan amendment; and WHEREAS, the proposed 2001 Comprehensive Plan amendment has been determined to be consistent with the Port Angeles Comprehensive Plan, the Clallam County-Wide Planning Policy, the Growth Management Act, and the public health, safety, and welfare; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES DOES HEREBY ORDAIN as follows: Section 1. Ordinance 2818 as amended and the Comprehensive Plan are hereby amended by amending the Land Use section of the Community Profile to read as follows: II. COMMUNITY PROFILE Land Use The Comprehensive Plan divides the City into 5 _8 planning areas. For the purpose of description, the individual planning areas are identified as the Harbor, Northwest, Southwest, North Central, o~id South Central, East, Eastern Urban Growth Area and Western Urban Growth Area planning areas. These areas are located on Figure 3 and are described as follows. The Harbor planning area contains the Coast Guard Station, the Port and Salmon Club boat ramps, Ediz Hook Park; and Daishowa Mill on Ediz Hook. The historic downtown and waterfront are also essential parts of this subarea. The boat haven marina, log export terminal, the K-Ply mill, the Coho Ferry terminal, City Pier, and Rayonier Mill line the waterfi'ont. Entertainment activities (movie theater, bookstores, antique shops, galleries, and restaurants) abound within the pedestrian oriented central business district. The Northwest planning area covers the western edge of town lying beyond Tumwater Creek and north of the airport. This area is comprised largely of older homes. There is a commercial area serving the residents along C Street. A pocket of industrial/commercial activities are located along the Tumwater Truck Route/Highway 101 junction. This area of town has limited access because of the Tumwater Creek ravine and the bluffs. It also has the largest segment of undeveloped residential land within the current City limits. The Southwest planning area includes Fairchild International Airport, the Clallam County Fairgrounds and Lincoln Park. Industrial development is located at the airport industrial park. A few homes lie within the City limits along Lower Elwha Road, but otherwise this planning area contains predominantly industrial and park (recreation) land uses. The North Central planning area is the older more dense portion of town. It is an area divided by Valley, Peabody and Ennis/White's Creek ravines. It contains all of the municipal buildings and Clallam County building and courthouse. The commercial uses along Lincoln Street provide community shopping opportunities. Recreation is provided by a number of parks and the Peninsula Public Golf Course. Much of the city's multifamily housing is within this planning area. The South Central planning area is the area of town with newer homes, on larger lots. This is where the street pattern changes fi.om traditional blocks to cul-de-sacs. Many views of Port Angeles Harbor and the Strait of Juan de Fuca are available. The Port Angeles High School lies within this planning area. The Olympic National Park Headquarters and Visitors Center is along fth Hill ' ' ........ ,~. the Heart o e s Road. ''" ' ~ ~" ' - ' is ,,,~ , ~,,,,ou,,~ ,~,~,,,,,u~t~.~ The East planning area is the area of the existing city limits easterly of Race Street. This area hag a mix of older homes and newer residential subdivisions and development, as well as portion of the -2- main commercial corridor. Marine views from upper elevations am possible, along with mountain views. This planning area includes Peninsula College facilities and Peninsula Golf Club. The Eastenl Urban Growth Area is generally the area east of the city limits. Remnant properties in the UGA that are located south 0fthe city limits and east of Valley Creek are considered tO be in this area until annexation occurs whereby they will be considered to be part of the adjacent pla0nin_g area. Policies for this planning area are adopted by Clallam County as a part of the Port Angeles Regional Cortaprehensive plan. The Western Urban ~owth Area is generally the area west and south of the city limits. Remnant properties in the UGA that are located south of the ci_ty limits and west of Valley Creek are considered to be in this area until annexation occurs whereby they will be considered to be part of the adjacent planning area. Policies for this plannine area are adopted by Clallam County as a part of~e Port Angeles Regional Comprehensive Plan, Section 2. Ordinance 2818 as amended and the Comprehensive Plan are hereby amended by amending Figure 3 - Planning Areas as set forth in the revised map attached hereto as Exhibit "A". Section 3. Ordinance 2818 as amended and the Comprehensive Plan are hereby amended by amending the Commercial Goals and Policies section of the Land Use Element to read as follows: V. LAND-USE ELEMENT Commercial Goals and Policies Policy E61 New Comprehensive Plan commercial area designations a,c,~s should not be located along the alternate local crosstown route or the crosstown truck route. Sectioq 4. Ordinance 2818 as amended and the Comprehensive Plan are hereby amended by amending the Policies section of the Transportation Element to road as follows: VI. TRANSPORTATION ELEMENT Policies BB. The City s-hotfl~ 8hall coordinate with the State Dept. of TraNsportation, Clallom County,~ and the Peninsula Regional Transportation Planning Organization~ transportation planning efforts. This includes recognition of SR 101 ~.nd SR 117, alon? with connecting roadways o~' Front, Lincoln, Railroad, Oak and Flirst Streets to and from the ferry landings, and alolag Front Street .and Marne Drive and First Street -3- between SR101 and SR117, as transportation facilities of state-wide significance which are declared essential public facilities under the Growth Management Act. Review of potential impacts these facilities and LOS standards will be incorporated with futwre updates to th, City's Comprehensive Plan, as required t~Y the Act. BI9. The development of the City's comprehensive service and facilities plan for streets, bikeways, pedestrian walkways, and the overall transportation system, and regional transportation plans should all be consistent. These plans, as adopted and hereafter amended, are incorporated herein. Section 5. Ordinance 2818 as amended and the Comprehensive Plan are hereby amended by amending the Policies section of the Utilities and Public Services Element to read as follows: VII. UTILITIES AND PUBLIC SERVICES ELEMENT Policies Al. Public facilities should be equitably distributed across the City's planning areas including designated Urban Growth Areas. D3. The City, at its sole discretion, should ,~,~. extend urban services outside the City without annexation. Section 6. Ordinance 2818 as amended and the Comprehensive Plan are hereby amended by adding a new item to the Objective section of the Conservation Element to read as follows: IX. CONSERVATION ELEMENT Objective B 11. The City will. continue participating in various watershed olanning and salmon recovery efforts. The City will incorporate appropriate measures for the protection ofh.a, bitat for listed or threatened species under the federal Endangered Specic~ Act when providing public services and admini,tering land ul~e and development reeulations. Section 7. Ordinance 2818 as amended and the Comprehensive Plan are hereby amended by amending sections of the Transportation Element, the Utilities and Public Services element, and the Capital Facilities element to read as follows: -4- VI. TRANSPORTATION ELEMENT General Comments The intent of the Transportation Element is to define in a comprehensive manner how vehicular traffic and nonmotorized means of travel are is to be routed from one portion of the community to another in the most efficient, economical, and compatible manner. The City's Circulation Plan in accordance with the Statewide National Functional Classification System identifies the City's principal arterial streets, minor arterial streets, and collectors with the remaining streets classified as locals (See Figure 11). Policies A2. The safety of non-motorized modes of transportation should be a primary consideration in the circulation system. Adequate sidewalks, crosswalks, bi,.:~,A,, p,~dia bikeways, and handicapped access should be provided. "- ' '--- hx,xi fC, ii,~, ~id ai,,,o~ sh..;ilc ac,~icca ,md should be located in or near the downtown core and public transportation system. Ob|ective~ Al. The City will be an active partner in the development of the Olympic Discovery_ Trail. which passes through and along key harts of its hark. street, nedestrian, and nonmotorized transportation systems and facilities. The City's Circulation Plan acknowledges that such a regional trail system serves many functions. It is a means of intercity commuting, a way to promote economic development, a means to promote a healthy lifestyle, and a way to provide future utility right-of-waY. A2. The City's Comprehensive Plan will continue efforts to improve or provide access to Valley, Tumwater, Peabody, Ennis, White's Creeks and the development of the Foothills Trail System. A3. As an active partner, the City will maintain a Citizen's Advisory Group and will facilitate communication with Clallam County. the City of Seouim. the DNR. and other public and private groups developing alternative transportation systems. Objectives B6. The City will consider a variety of traffic management alternatives to increase the existing street system capacity and implement appropriate options as feasible. Such alternatives may include: a_. Taking into account nonmotorized use: ab. Remove parking at controlled intersections to provide auxiliary turn lanes to increase capacity; b_c. Remove parking during selected periods of the day (i.e., noon and PM peak hour) to create additional through land capacity; cd. Modify signal timing to respond to seasonal and/or daily peak traffic periods to favor major flows and expand the number of signals that are coordinated as part of a system, while assuring enough time for a handican~ed citizen to cross when a signal button is pushed. B 10. The City will facilitate the implementation of City-adopted transportation nlans. B 15. Road improvements should provide for alternate modes of transportation, and new roads shall be evaluated for the ability to accommodate alternate modes of transnortation. VII. UTILITIES AND PUBLIC SERVICES ELEMENT Policies C6. The City should plaqe special emphasis on the recreational needs of the youth of the community, includin~ bicycle safety education nrograms. DS. The City should promote the joint use of transportation rights-of-way and utility corridors for all forms of transportation, including nonmotorized. D9. The City should identify lands useful for public purposes, such as utility corridors, landfills, sewage treatment facilities, transportation (including noumotorized}, recreation, schools, and other public uses. X. CAPITAL FACILITIES ELEMENT Policies A3. The City shall develop individual comprehensive service and facility plans for the following ~ capital facilities and/or services: · transportation, including streets, and nonmotoriz~d (bikeways and pedes~an walkways~, · water system, · sanitary sewer system, · electrical system, · parks and recreation services, and · emergency services (police, fire, and medical response). A4. The City should co-operate with the appropriate private and/or public agencies to develop individual comprehensive service and facility plans for each of the following -6- utilities and/or services: · telecommunications, · schools, · transportation (air, marine, nonmotorized, and public transit), and solid waste collection and disposal. A6. The comprehensive service and facility plan for streets, and nonmotorizeql (bikeways, and pedestrian walkways) shall also include specific actions and requirements for bringing into compliance any street facilities that fall below the required level of service, including demand management strategies which encourage reduced reliance on single occupant vehicle trips and encourage use of alternate modes of transportation such as the bicycles, walkways, and transit riding with incentive programs for and from local businesses. Section 8. The Comprehensive Plan amendments set forth in this Ordinance shall be incorporated into the Comprehensive Plan as kept on file with the City Clerk. Section 9 - Effective Date. This Ordinance shall take effect five days after the date of publication by summary. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of ,2001. MAYOR ATTEST: Becky J. Upton, City Clerk APPROVED AS TO FORM: Craig D. Knutson, City Attorney PUBLISHED: By Summary -7- CITY OF' PORT ANGI"LESI SCALE l Pus,~c wo. Ks 1~t~l~° PLANNING AREA MAP ~Lt EXHIBIT DI COMMUNITY DEVELOPMEN'I Da~L--~O~ ~o~ ~ Ct~tL~a Cou~rrt ~o ~v~ ~ (~) 417-24 ~y 3, 2~1 Ci~ of P~t P.O. Box 1150 Po~ ~g~les, WA 98362 ~: ~opos~ Comp~hens~e P~n Amendmen~ - 2~1 Dm B~: I have renewed ~e ~o~sed ~en~enU to ~e Ci~'s Comprehemive Pi~ w~ch I receiv~ April 26, 2001. Mo~ of ~e~ ~volve ~or c~es to yo~ pl~ ~ch do ~ ~volve ~ is~. How~, I do ~t to conc~enee ~ sup~ for ~e pm~s~ c~ge ~ch ~H ~low ~vision of ~li~ se~ce ouuide ~e ci~ l~U. ~s ~ll ~ a help~l c~ge ex.ne how ~ to ~e ci~ md ~o~ ~ ~e Po~ ~el~ UGA. If you ~ve ~y qu~o~ or co~en~, ple~e let me c: Bob Martin Board of Cl. allam County Commi.~siol~rs VEm>~oM1sEa (patent pending) represents a technological breakthrough in ELECTRICAL SPECIFICATIONS ~htI~l~~~flOl~=lC~)Owe~OH~O, u~ ~.u~u ~,,..Fag~ ,...,,uui8 ,,~ input ¢ohage: i~5-vbks (2<~'Voks available) chines. VENDmOM]sm reduces energy consumption by an average of 47% Maximum Load: 12 Ami~ (Steady-State) without compromising the temperature of the vended product. Utilizing a Passive Infrared (PIR) Sensor, VEND~G/VI~sE~ completely pow- ENVIRONMENTP& SPECIFICATIONS e~s down a vending machine when the area surrounding it is unoccupied. OpemmZ~r~ qS~C to 75°C Storage Temp: 40"c to 85~C Once powered down, VmqmqoMis~a will monitor the room's temperature. ~m~,um~ty: 95~Mam~um Using this information, VF3rm~GM~sER automatically m-powers the vending machine at one to three hour intervals, independent ofmpancy, to en- COMV,~ne~u'rv sure that the vended product stays cold. V~r~n~$M~sm is a simple external Mae~ plug-and-play product, typically requinng 15 minutes or less for installation. ~h asda~y p~x~m. IN,~-tlVTW TIMEOU~ chines with a single sensor, minimizing installation and visual impact. A~to V~x'DmoMtsm also monitors electrical current used by the vending machine. This ensures that Vv.~omGM~sm will never power down a vending machine while the compressor is running, so a high head pressure start never occum. In addition, the current sensor ensures that every time the vending machine is REGUlaetlOR¥ APPROVP&~ powered up, the cooling cycle is mn to completion before again powering ~ ta2C-UL Uszd down the vending machine. Finally, VE~DmGM~S~m will also identify for ser- h~n~on'r~chn~ogy vice personnel that the machine's cooling compressor is failing. Equipment (rtE)91'79 V~'a)~oM~s~'s unique approach to power manage- ment makes it the most effective energy saver available: · V~a~c3lesm is Invisible to Users- the vend- ing machine is powered up when anyone ap- the area is vacant. : ~ measures ambient room temperature and ' compressor current, mpowering the vending ma- chine as needed to ensure that cold product tem- perature is maintained. · Product b Always Available for Vending - The customer never sees a powered down vending machine. A cold beverage vending machine consumes on average 427 wans, costing nearly $300 per year to operate at 8¢ per kwh. Powering down such a vending machine when not needed can result in savings of $140 or more per year per machine. Additionally, other cooled product vending machines, such as refrigerated candy machines, can also be efficiently controlled by V~D~oMasm. Non-cooled product machines can be controlled by a companion product, the Ovvzcv2VhsEm V,=~o~oM~su~ is proudly Made in USA. Ba.yview Technology Group, Incorporated C~rri~. o I~?-~ooO br 1091 Industrial Rd.. Suite 106 B;,'/~i~,~T~hnol. G.~up, ln* LISTED San Carlos, CA 94070 (800) 770-8539 Typical Savings Generated with VendingMiser $250 t Assumptions I Standard Vending Machine with Lamps 427 Watts TypJca Power j $200 LOW I ramc Areas - t,,1 -lZ schools, 5-6 day per week office buildings -4~-.Low Annual Savings (38%) .~/' Mean Annual Savings (48%) ? · Annual Savings (58%) $100 /, High Traffic Areas - cafeterias, dorm ~,~ _.~ buildings, convenier~,e stores, 7 day $5O $0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.00 0.10 0.11 0.12 kWh Cost Commo Questions About VendingMiser W'dl V~z>v, c3lz~ keep my drinks coM? Has VV.,VDr, C, Me~ been field tasted~ Alosolutely - it has been tested by vending machine manu- Thousands of VendingMisers have been ridded with facturers as well as major bottlers and they have verifiedhundreds of satisfied customers. Average energy say- this. Contact us for detailed documentation, ings has been independently documented to be 47O/o. W'dl Vmre~14ss~ damage my vending machines? Are any locations not appropriate for V~mevoMm~ No - VEr4D~NGM~sER'S current sensor ensures that the Yes - but only a few. A machine in a 24 hour, 7 day a compressor is never "sho~ cycled", so no damage will week location might generate little savings. Vnmn, r,- occur to the machine. Vn,~nqoMmam will actually de- lvhs~ is not approved for use where it is exposed to crease maintenance costs and extend the life of the ma- min. Outdoor machines where the lights need to be on chine since it reduces compressor and lamp on hours, all night for security or sales reasons are not candidates. Much testing has been completed, and some is ongoing. Part # Description Contact Bayview for the latest updates. No bottler has VM 150 VendinsMiser with PIR Sensor found any problems with Vn'a)Ir,~MmER. VM151 VendinglVliser with Sensor Relx~ter San Carlos, CA 940?0 {SO0} ??O-8S39 talme'~m'~"*t' pO, RTANG ELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO To: UTILITY ADVISORY COMMITTEE F~OM: Lar~ Dunbar, Power Resources Manager SUBJECT: Commercial Lighting Conservation Program Summary: Energy efficient commercial lighting is a cost-effective activity with high customer acceptance. Acceptance of the Purchase o£Conservation Agreement would enable the City to ~rovide up to $200,000 to its business customers for lighting conservation projects. ~ecommendation; Recommend to the City Council that the Mayor be authorized to enter ~to the Purchase of Conservation Agreement with the Bonneville Power Administration. Background/Analysis; On April 17, 2001, the City Council authorized the Director of Public Works to implement a conservation program that qualifies for the Bonneville Power Administration (BPA) Conservation and Renewables Credit Discount (C&RD). On May 22, 2001, City Council approved a budget adjustment and authorized the Director of Public Works and Utilities, or his designee, the authority to enter into City Authorized Contractor Agreements. Staffhas developed a program that qualifies for thc BPA C&RD. As part of the program development effort, Staffhas prepared a program plan, has entered into the City Authorized Contractor Agreement with 15 local contractors, and has proceeded with the implementation and marketing plan. The City's C&RD is based on BPA power purchases at the rate of ½ mill per kWh which represents about $315,000 per year over the next five-year period. Due to the anticipated BPA wholesale power increase and water shortage, high customer participation in the C&RD program is expected. BPA recently offered the City a Purchase of Conservation Agreement as part of its Conservation Augmentation program. The City has until September 1, 2001 to accept the Agreement. Under the Agreement, the City could provide up to $200,000 for lighting conservation projects to local businesses. Lighting conservation measures include modification or replacement of existing interior and exterior fixtures and controls. Acceptance of the Agreement would help satisfy anticipated high customer demand and participation in the C&RD. A copy of the Purchase of Conservation Agreement is attached. N:~PWKS'~.IOHT~CONS',comervation3.doc Department of Energy Bonneville Power Administration P.O. Box 3621 Portland, Oregon 97208-3621 April~2~ 200t In reply refer to: PSW-6 Mr. Scott McLain, Deputy Director of Power Systems Port Angeles City Light P.O. Box I 150 Port Angeles, WA. 98362-0217 Dear Scott: As part of its Conservation Augmentation (ConAug) efforts, Bonneville has developed a Limited Standard Offer for Commercial Lighting. Under this Limited Standard Offer participating utilities may receive up to $200,000 for lighting projects, subject to program funding constraints. Enclosed are the Limited Standard Offer for Commercial Lighting program description and the contract. The window to sign this Limited Standard Offer contract closes on September 30, 2001. Over the next several months Bonneville may also offer additional limited standard offers covering conservation activities in other sectors. The Limited Standard Offer is designed to facilitate utilities moving ahead on conservation. Energy efficient commercial lighting is a cost-effective activity with high end-use consumer acceptance. Like other ConAug offers, the Limited Standard Offer is open to all utilities for which BPA follows load. Utilities for which Bonneville does not load follow, such as Slice utilities and some block purchasers, will need to decrement their block to participate in this offer. This Limited Standard Offer is an expansion of the ConAug Invitation to Reduce Load through Conservation (IRLC). To date Bonneville has received 48 ConAug IRCL proposals from 15 of our customers. Two contracts have been signed with others waiting for signature or still being negotiated. The IRCL has been extended through September 30, 2001 and may receive further extensions. If you would like a final contract or have any questions, please call me or Elly Adelman, Energy Efficient Representative, at (503) 230-5052. I look forward to your participation. Since, rely, Chuck W. Forman, Jr. Account Executive Enclosure Contract No. Date: PURCHASE OF CONSERVATION AGREEMENT executed by the ...... U NI TED S TAT-E S49 ~AMEt~tC- A DEPARTMENT OF ENERGY acting by and through the BONNEVILLE POWER ADMINISTRATION and ~iFULL NAME OF CUSTOMER~ Table of Contents Section Page 1. Term of Agreement ........................................................................................... 2. Definitions ......................................................................................................... 3. Purchase of Energy Savings ............................................................................. 4. Implementation Budget .................................................................................... 5. Other Sources of Funding ................................................................................. 6. Project Implementation .................................................................................... 7. Consumer Agreements ...................................................................................... 8. Invoicing and Payment ..................................................................................... 9. Records and Audits ............................. : ............................................................. 10. Bonneville Oversight ........................................................................................ 11. Evaluations ....................................................................................................... 12. Procedures for Addition or Removal of Measures and Units ........................... 13. Suspension and Withholding Payment ............................................................ 14. Termination ...................................................................................................... 15. Environmental Provisions ................................................................................ 16. Standard Provisions .......................................................................................... 17. Uncontrollable Force ......................................................................................... 18. Liability ............................................................................................................. 19. Dispute Resolution ............................................................................................ 20. Notices ............................................................................................................... 21. Signature Clause ............................................................................................... Exhibit A Project Proposals .............................................................................. This PURCHASE OF CONSERVATION AGREEMENT, is executed by the UNITED STATES OF AMERICA, Department of Energy, acting by and through the BONNEVILI,E POWER ADMINISTRATION (Bonneville) and the ~&ULL NAME OF CUSTOMEFo~, (~Customer Name~), a __ utility organized under the laws of the State of hereinafter may be referred to individually as "Party" or collectively as "Parties." RECITALS Bonneville is required by the Pacific Northwest Electric Power Planning and Conse ~ryation Act~Publi~La~y_~-5~_th~wstP.o~ver Aet)~ tn m~ ~h~ netflrm power load requirements of its customers in the Pacific Northwest; and Bonneville is authorized to acquire Conservation to reduce the firm p~)wer load requirements of its customers in the Pacific Northwest; and Bonneville intends to acquire Conservation which is reliable and dependable as part of its efforts to augment the supply of Federal power; and ~Customer Name~) intends to produce Completed Units within its service area, producing a quantity of Energy Savings in exchange for an Implementation Budget Rom Bonneville; and NOW, THEREFORE, the Parties agree as follows: 1.. TERM OF AGREEMENT This Agreement becomes effective at 2400 hours on the date of execution by both Parties (Effective Date), and shah remain in effect until 2400 hours on September 30, 2006, unless terminated earlier as provided in section 14. Except as provided for in section 3(d), aH obligations shah remain until satisfied. 2. DEFINITIONS All capitalized terms used herein shall have the following meaning: (a) "Completed Unit" means a Unit that is properly installed, operating and, when applicable, commissioned in accordance with the manufacturer's requirements and specifications for normal operations; and as applicable has satisfied or met any specification requirements set forth in Exhibit A. Co) "Conservation" means any reduction in electric energy consumption resulting from an increase in the efficiency of electric energy use, production or distribution. (c) "Consumer" means any end user of electric energy in the (~Customer Namer's service area that contributes to (~Customer Name~)'s total retail load. (d) "Contracting Officer" means the person designated by Bonneville who has the authority to enter into, administer, modify, suspend, or terminate this Agreement; and to make related interpretations, determinations and findings. (e) "Contracting Officer's Technical Representative" or "COTR" means the authorized representative of the Contracting Officer knowledgeable in the technical aspects of this Agreement designated in writing by the Contracting Officer: ' ' 01 ES- , Name of company 2 (f) "Energy Savings" means the ascribed, deemed, estimated, evaluated, or verified Conservation, ~n first year kilowatt-hours (kWh) attributable to Completed Units as specified in Exhibit A. (g) -"Fiscal-Year" means ~che consecutive t~vet,~ (12) mo~th-periodwhichbegins on every October i and ends on the following September 30, during the term of this Agreement. (h) "Implementation Budget" means the amount of money Bonneville shall make available to ~Customer Name~ pursuant to Exhibit A to expend on Implementation Costs during the Implementation Period. (i) "Implementation Costs" means the sum of all or part of the actual total costs to install or implement Measures which result in Completed Units as identified for each Project in Exhibit A. (j) "Implementation Period" means the period of time from the Effective Date through 2400 hours on September 30, 2006, during which Completed Units are delivered, unless extended by written agreement of the Parties. (k) "Measure(s)" means materials or equipment installed, or activities implemented, to achieve Conservation, as identified in Exhibit A. (1) "Other Requirements" means any revision, restriction, or alteration which Bonneville may impose on any Measure as a result of any directive or order of any court or regulatory agency of competent jurisdiction, or the result of a final record of decision of any process conducted by Bonneville pursuant to the National Environmental Policy Act. (m) "Project" means the total of all Completed Units installed for each proposal under this Agreement. (n) "Regional Technical Forum" (RTF) means an organization composed of BPA customers, state agencies, public interest groups and Bonneville that has responsibility for developing the list of recommended qualifying measures, some of which are eligible for purchase under the Conservation Augmentation as deemed measures. (o) "Unit" means any Measure or combination of Measures which achieve Conservation as provided in each Conservation proposal agreed to and incorporated in Exhibit (A). (p) "Work in Progress" means Projects committed to by ~Customer Namen, the installation of which has not been completed as of the date of any notice of termination of this Agreement. (q) "Workday" means a day that both Parties recognize as a regular day of work. O IES- , Name of company 3. PURCHASE OF ENERGY SAVINGS (a) Bonneville agrees to purchase and ~Customer Name~ agrees to sell the Energy Savings from each Project incorporated into Exhibit A. Co) - (~Customer Name~ may at any time propose additional Projects for Bonneville's consideration to purchase during the term of this Agreement. Proposals submitted shall include the information as outlined in the Bonneville Invitation to Reduce Loads through Conservation, dated October 17, 2000, and include the funding sources as required in section 5(a). Bonneville may request additional information on any project submitted prior to acceptance. If Bonneville agrees to the terms for the purchase of Energy Savings from additional Projects proposed, then Exhibit A shall be amended to add such Projects. (c) Bonneville may at any time during the term of this Agreement send ~Customer Name~ notice that Bonneville will no longer accept proposals for additional Projects under this Agreement. (d) Bonneville shall not be obligated to pay for a Project that is completed and the Energy Savings delivered after September 30, 2006. 4. IMPLEMENTATION BUDGET (a) On the Effective Date of this Agreement, or when a Project is amended into Exhibit A, ~Customer Name~ is authorized by Bonneville to incur Implementation Costs in an amount equal to the Implementation Budget for each Project described in Exhibit A. Co) Bonneville's purchase commitment, consistent with the Exhibit A, shall be available to ~Customer Name~ for the term of this Agreement, except as provided for in sections 13 (Suspension and Withholding Payment) and 14 (Termination). (c) Unless otherwise described in Exhibit A, Bonneville shall not be obligated to pay costs in excess of the Implementation Budget for any individual Project. Such costs shall solely be paid by the ~Customer Name.. (d) Bonneville may, but is under no obligation to supplement the Implementation Budget or provide additional budget authority under this Agreement. (e) Unless otherwise agreed in writing, the balance of any Implementation Budget remaining after the completion, acceptance and payment for a Project shall be made available to Bonneville. (9 Agreements entered into by ~Customer Name. with their Consumers under this Agreement that commit the Implementation Budget shall be signed prior to September 30, 2006. 01 ES- , Name of company 4 5. OTHER SOURCES OF FUNDING (a) For any proposal submitted, ((Customer Name~ shall list all other sources of funding for Projects and Measures other than that provided by Bonneville. Bonneville and .Customer Name~ may then agree to the allocation of costs among the~arious~fundingsources. (b) Bonneville will not pay for any portion of the cost of a Project under this Agreement that has been or would be paid or given credit for under any other Bonneville or Federal contract or financial assistance agreement. No Project or Measure claimed under Bonneville's C&RD shall be eligible for payment under this Agreement. 6. PROJECT IMPLEMENTATION (a) ((Customer Name~ shall: (1) implement the Projects as described in Exhibit A; (2) deliver Completed Units within the timelines described in Exhibit A unless as otherwise agreed to by the Parities; (3) cause only those Measures identified in Exhibit A to be installed in accordance with any specifications for those Measures; (4) implement Projects in acc6rdance will all applicable building, electrical, environmental, and health and safety regulations imposed by Federal, state and local laws, codes and ordinances; (5) unless otherwise specified in Exhibit A, submit a summary report, that includes the information required by section 8(a), together with the associated invoice(s) to the Bonneville representative identified in section 8(b); and (6) .Customer Name~ may subcontract to provide Completed Unite under this Agreement. If ~Customer Name. does create such an arrangement, .Custemer Nam~ shall, by contract, require that the entity comply with the terms and conditions of sections 9 (Records and Audits), 10 (Bonneville Oversight), 11 (Evaluations). 13 (Suspension and Withholding Payment), and 14 (Termination). 7. CONSUMER AGREEMENTS (a) For projects where .Customer Name~ establishes an agreement with the Consumer, wherein the Consumer returns the funds to ~Customer Name~ either through an addition to their utility bill, or due to an obligation created by the Consumer's removal of the equipment, ~Customer Name~ shall use those returned funds to purchase additional Energy Savings. 01 ES- , Name of company 8. INVOICING AND PAYMENT (a) Unless otherwise specified in Exhibit A ~Customer Name. shall provide for each Project, an invoice with the documentation detailing the Project costs Savings methodology, including, if the Energy Savings are not deemed, any pre- and post metered data, formulas, assumptions, operating hours used for determirring the Energy Savings; the equipment installed; ancI the Project costs, including but not limited to equipment costs, architecture and engineering costs, labor, and other direct and incLLrect costs. Unless specified in Exhibit A for the Project, the frequency of invoices shall either be: (1) no more often than monthly for Projects with multiple Units expected to be delivered throughout the term of this Agreement; or (2) a single invoices when the Project is completed. Co) Invoices shall be transmitted to Bonneville at the following address: Bonneville Power Administration P.O. Box 3621 Portland, Oregon 97208 - 3621 Attn: Telephone (503) 230- Fax (503) 230-3380 Email: (c) Bonneville shall pay on a cost reimbursement basis the amount invoiced by electronic transfer of funds from Bonneville to the ~<Customer Name.'s bank account. Payment by Bonneville shall be made on or before the close of business on the 30th day following the date of receipt and acceptance of a proper invoice by Bonneville's COTR. Should the 30th day be a day other than a Workday, the payment shall be due on the next Workday. (d) Should there be a disagreement in the invoice amount, Bonneville and ~Customer Name. agree to work together to correct errors to the invoice submitted and any revisions noted on the revised invoice. The Parties shall make reasonable efforts to make invoice adjustments as soon as possible after Bonneville's receipt of the invoice. 9. RECORDS AND AUDITS (a) Customer Name. shah establish and maintain supporting documents and records for each Project. The flies for all projects implemented under this Agreement shall be clearly designated as being Conservation Augmentation projects. The records for each Project, Measure or Unit as appropriate shah include, but is not ~imited to: (1) the name, address, and telephone number of the recipient; (2) the measure installed; (3) the kWh savings from the measure; (4) documents detailing how the energy savings were determined; (5) the total cost of the measure; and (6) the dollar amount invoiced to Bonneville. 01ES- , Name of company 6 CO) If (~Customer Name. participates in any of Bonneville's Conservation Programs, ((Customer Name. shall maintain records sufficient to demonstrate the source of BPA funding, or credit for each Project, Measure or Unit as appropriate. 10. -BO NrNE-VtL-L-E-OVERS I GH T (a) Bonneville er Bonneville's agent shall have the right to conduct inspections of Units or Completed Units and monitor or review ~Customer Name))'s procedures, records, verified Energy Savings methods and results, or otherwise oversee ~Custemer Name.'s implementation of this Agreement. The number, timing, and extent of such audits shall be at the discretion of Bonneville. Such audits shall occur at Bonnevflle's expense. Financial audits shall be in compliance with the audit standards established by the Comptroller General 0fthe United States. Bonneville may contact appropriate Federal, State, or local jurisdictions regarding environmental, health, or safety matters related to Units or Completed Units. Co) Prior to any physical inspection pursuant to section 10(a), Bonneville shall give ~Customer Name~ written notice. Upon receipt of notice, (~Customer Name. shall have 30 days to arrange for the inspection of Units or Completed Units, or review of energy audit or Measure installation procedures, technical documents, records, or verified savings methods and results. (c) Bonneville's Contracting Officer, or Contracting Officer's Representative, may issue interpretations, determinations, and findings of the body of this Agreement that are binding on the Parties. Such decisions shall be provided to ~Customer Name~ in writing. In administering this Agreement, only the written statements of Bonneville officials acting within the scope of their authority shah be considered to be official Bonneville statements. 11. EVALUATIONS (a) Bonneville may conduct, and ~Customer Name. shall cooperate in, Conservation impact and Project implementation process evaluations to assess the amount, cost effectiveness, and reliability of Conservation in ~Customer Name~'s service area or Region. Bonneville shall select the timing, frequency, and type of such evaluations. (b) Bonneville will set the specific requirements for evaluations with consideration for the schedules and reasonable needs of ~(Custemer Name~ and ~Customer Name.'s customers. (c) Any evaluation of the Project initiated by Bonneville shall be conducted at Bonnevilie's expense and such costs shall be excluded from the Implementation Budget. 01 ES- , Name of company 7 12. PROCEDURES FOR ADDITION OR REMOVAL OF MEASURES AND UNITS (a) Measures may be removed from Exhibit A only upon agreement of the Parties; except however, Bonneville may unilaterally remove any Measure ~rom~gxhihit A when m~eh r~mnvnl i~ neeessit-_ted by Other Req-_L~amen~. (b) Units may be removed from Exhibit A, or the descriptions of 14nits revised, only upon the agreement of the Parties; except however, Bonneville may unilaterally remove any Unit or make necessary revisions to Unit descriptions when necessitated by Other Requirements. (c) Bonneville may provide notices that establish procedures for implementing this Agreement. When such procedures are adopted by mutual agreement they shall be amended into this Agreement. 13. SUSPENSION AND WITHHOLDING PAYMENT (a) Bonneville and {{Customer Name~} agree to amend Exhibit A to reflect a change to any Measure that is required due to Other Requirements during the term of this Agreement. (b) Bonneville and ~Customer Name)~ agree to an immediate suspension of the Project related to any'Measure that either Party determines after a reasonable investigation presents a significant environmental, health, or safety threat to Consumers. ~Customer Name>~ shall take actions within 60 days, or another number of days as agreed in writing, to remedy the environmental, health or safety threat to Consumers from past Measure ihstallation, and/or implement such other actions as the Parties agree to. The Project shall resume only when Bonneville is satisfied that the Contractor has remedied the environmental, health or safety threat to Consumers. (c) If Bonneville determines that ~{Customer Name>>'s Project implementation is not in substantial compliance with the environmental, technical, and/or record-keeping requirements of this Agreement, Bonneville shall provide a written report to ~Customer Name~ identifying the specific nature of the noncompliance and the Measures affected thereby and withhold further payment of Implementation Costs claimed by {{Customer Name~> for such Measures. (d) Upon receipt of the report specified in subsection 13(c), {{Customer Name~ shall not submit additional invoices for Implementation Costs for the Measures identified in the report. (e) ~{Customer Name>~ shall take action to bring the Project into substantial compliance with the environmental, technical and/ur record-keeping requirements of this Agreement within thirty (30) days and shall notify Bonneville when corrective action has been completed. 01 ES- , Name of company (f) If ~<Customer Name. has not brought the Project into substantial compliance as provided for in subsection 13(e), then Bonneville may either: (1) continue to withhold payment of Implement Costs until such time as Bonneville and ~Customer Name~ agree that the Project is in substantial compliance with the environmental, technical and/or ............ recording-keeping requirements of this Agreement; or (2) terminate this Agreement in accordance with section 14. (g) If Bonneville continues to withhold further payment of Implementation Costs pursuant to subsection 13(c), Bonneville shall not accept and make payment for any Energy Savings from the Measures or Completed Unite which are not in substantial compliance with the environmental, technical, and/or record-keeping requirements of this Agreement. (h) After a suspension imposed under section 13(a) or 13(b) has been lifted or an event of noncompliance under section 13(c) has been corrected, Bonneville shall pay for all claims that are in substantial compliance with this Agreement. including claims for work performed during the previous suspension period, except that for environmental, health, or safety costs incurred due to noncompliance with Federal, State, or local agency regulations, ~Customer Name>> shall bear the coste of compliance. Bonneville shall also accept the Energy Savings from the affected Completed Units ff a section 13(a) or (b) suspension is lifted and if ~Customer Name, has completed actions bringing the affected Completed Units into substantial compliance with this Agreement. 14. TERMINATION (a) Either Party may terminate this Agreement upon thirty (30) calendar days' written notice. ~Customer Name. shall have one (1) year bom the effective date of termination pursuant to this section to complete Work in Progress. (b) Bonneville may terminate this Agreement by giving <~Customer Name~ thirty (30) days' written notice, if ttCustomer Name~> has failed to comply with the following: (1) the environmental, technical, or record-keeping requirements. ~Customer Name~;s commitments to Consumers shall be the responsibility of ~Customer Name~. (2) for cause upon ~Customer Name~;e failure to comply with this Agreement, including use of any portion of the Implementation Budget in a manner that is inconsistent with this Agreement. (c) Bonneville may terminate this Agreement by giving ~Customer Name~ thirty (30) days' written notice if ~Customer Name.: 01 ES- , Name of company 9 (1) gives notice to Bonneville that it will step placing firm load on Bonneville pursuant te its existing, amended, or new firm power sales contract with Bonneville (for the sale of power and energy te meet all or a portion of ~Custemer Name)~'s firm electrical energy load or electric peaking requirements) for a period of at least one (1) year; (2) gives notice te Bonneville of its intent to terminate, or terminates, such existing or new firm power sales contract with Bonneville; or (3) if<~Customer Name~) becomes insolvent, files a petition for bankruptcy or reorganization, or assigns substantially all assets te crediters and consequently Bonneville no longer serves ~Custemer Name))'s loads. <<Custemer Name~?s commitments to Consumers shall be the responsibility of ~Custemer Name~>. (d) There shall be no period to complete work in progress beyond the effective date of termination available to ~Customer Name)) for a termination under subsection 14(b) and 14(c). ~Custemer Name))'s commitments te Consumers shall be the responsibility of (~Custome~ Name~. (e) If this Agreement is terminated in accordance with section 14(c), a termination charge shall be determined pursuant to this subsection 14(e). The termination charge shall be based on the ratio of the total Conservation expected for the life of the Completed Units less the Energy Savings achieved te the date of termination, compared to the total Conservation expected for the life of the Completed Units. ~Customer Name~ shall pay the termination charge returning payments received from Bonneville for the Conservation not yet acquired by Bonneville in accordance with the following formula: R = P*(T-A)/T Where: R= Reimbursement to Bonneville; P= Bonneville payments made to '~Custemer Name, for Implementation Costs te the termination date of this Agreement; A= Total Energy Savings through the date of termination of this Agreement: and T= Total estimated Conservation for the life of all Completed Units achieved to the date of termination of this Agreement. The following conditions apply to this charge: (1) The Energy Savings values for Completed Units shall be consistent OIES- , Name of company 10 with Exhibit A. Measure life values shall be consistent with the Bonneville Energy Conservation Guidebook published in October 1993, or in effect at the time this reimbursement is calculated. (2) Bonneville shall present an invoice to ~Customer Name~ for payment calculated pursuant to this section 14(e). (3) ~Customer Name~) may reimburse Bonneville by either:' (a) making a lump sum payment within thirty (30) calendar days of the date of Bonneville's invoice; or (b) by making no more than 12 consecutive equal monthly payments, with the first payment and each succeeding payment due within thirty (30) days of the date of Bonneville's invoice. (4) If reimbursement is accomplished by installments, interest shall be charged on the outstanding balance in accordance with average Bonneville Interest Earning Rate with the United States Treasury. Interest shah be calculated for the period of time between the date of the first payment made by Bonneville to <<Custemer Name)~ and the date of the first reimbursement payment made by <~Customer Name~ to Bonneville for which reimbursement to Bonneville is being made in accordance with this section. 15. ENVIRONMENTAL PROVISIONS (a) Bonneville in the performance of this Agreement shall comply with all of its obligations pursuant to the National Environmental Policy Act. Co) The Parties agree to: (1) comply fully with all applicable Federal, State, and local environmental laws; (2) to assist and to cooperate with each other in meeting each other's environmental obligations, to the fullest extent economically and technically practical and mutually agreeable; and (3) provide upon request of the other Party a copy of the pollution abatement plans as required by the Clean Air Act, by the Clean Water Act, by other federal statutes, or by an agency having jurisdiction and within a reasonable time submit evidence that such plans have been approved or have not been objected to by agencies with jurisdiction. OIES- , Name of company I 1 16. STANDARD PROVISIONS (a) No oral or written amendment, rescission, waiver, modification, or other change of this Agreement shall be of any force or effect unless set forth in a written instrument signed by authorized represent~tlv~.s of ~neh P~rty Co) This Agreement is binding on any successors and assigns of the Parties. Bonneville may assign this Agreement to another Federal aget{cy to which Bonneville's statutory duties have been transferred. Neither Party may otherwise transfer or assign this Agreement, in whole or in part, without the other Party's written consent. Such consent shah not be unreasonably withheld. Bonneville shall consider any request for assignment consistent with applicable Bonneville statutes. (c) The Parties shall provide each other with any information that is reasonably required, and requested by either Party in writing, to operate under and administer this Agreement. Such information shall be provided in a timely manner. If such information is subject to a privilege of confidentiality, a confidentiality agreement or statutory restriction under state or Federal law on its disclosure by a Party to this Agreement, then that Party shall endeavor to obtain whatever consents, releases, or agreements are necessary from the person holding the privilege to provide such information wh'de asserting the confidentiality over the information. Information provided to Bonneville which is subject to a privilege of confidentiality or nondisclosure shall be clearly marked on each appropriate page as such and Bonneville shall not disclose such information without obtaining the consent of the person or Party asserting the privilege, consistent with Bonneville's obligation under the Freedom of Information Act. The Consumer's company name, estimated and/or actual Energy Savings, and estimated and/or actual Implementation Costs for Units and Completed Units may not be designated as proprietary - information. (d) This Agreement, including all provisions, exhibits incorporated as part of this Agreement, and documents incorporated by reference, constitutes the entire agreement between the Parties. It supersedes all previous communications, representations, or contracts, either written or oral, which purport to describe or embody the subject matter of this Agreement. (e) The exhibits listed in the table of contents are incorporated into this Agreement by reference: The exhibits may only be revised upon mutual agreement between the Parties unless otherwise specified in this Agreement. The body of this Agreement shall prevail over the exhibits to this Agreement in the event of a conflict. (0 The Parties agree that there are no unspecified third party beneficiaries of this Agreement. Nothing contained in this Agreement is intended to confer 01ES- , Name of company 12 any right or interest to anyone other than the Parties, their respective legal representative, assigns or successors. (g) Except as otherwise provided herein or as agree by the Parties, no provision of~hi~ A~oweemenLm~y h~ w~Liwd ~xe~pt ~ cnnfirmed iny~riting. Any WalYelL at any time by a PartY of its rights with respect to a default under this Agreement, or any other matter arising in connection therewith, shall not be deemed a waiver with respect to any subsequent default or matter. Either Party may waive any notiee or agree to accept a shorter notice that specified in the Agreement. Such waiver of notice or acceptance of shorter notice by a Party shall not be considered a wavier with respect to any subsequent notice required under this Agreement. (h) If any term of this Agreement is found to be invalid by a court of competent jurisdiction then such term shall remain in force to the maximum extent permitted by law. All other terms shall remain in force unless that term is determined not to be severable from all other provisions of this Agreement by such court. (i) This Agreement shall be governed by and interpreted under Federal law. 17. UNCONTROLLABLE FORCE (a) Any obligation of a Party to perform under this Agreement, except an obligation to pay amounts due under this Agreement, shall be excused when such failure to perform is due to an Uncontrollable Force. In the event that either Party is unable to perform due to an Uncontrollable Force, such Party shall exercise due diligence to remove such inability with reasonable dispatch. Nothing in this section shall be construed to require either Party to settle any strike or labor dispute in which it may be involved. (b) Each Party shall notify the other in writing as soon as practicable of any Uncontrollable Force that may impair performance under this Agreement. Failure to give such notice within a reasonable period shall be deemed a waiver of such Uncontrollable Force. (c) Uncontrollable Force is an act or event beyond the reasonable control of a Party, and which by exercise of due diligence and foresight such Party could not reasonably have been expected to avoid or remove, which impairs the ability of the Party to perform and, includes, but is not limited to, failure of or threat of failure of facilities, flood, earthquake, storm, accident, fire, lightning, and other natural catastrophes; epidemic, war, labor, or material shortage, strike or labor dispute, or sabotage; and also includes restraint by an order of a court of competent jurisdiction or by regulatory authorities against any action taken or not taken by a Party, after a good faith effort by the appropriate Party to obtain: (1) relief from such order; or (2) any necessary authorizations or approvals from any governmental agency or regulatory authority. 01ES- , Name &company 13 18. LIABILITY (a) TO the extent allowed by the Federal Tort Claims Act, Bonneville agrees to defend, indemnify, and hold harmless ~Customer Name~, its affiliated com~panies, their respective boards of directors: nfflc~rs~ ~rnplny~, and representatives, against and from any and all loss, claims, actions, or suits, for or on account of injury, bodily or otherwise to, or death of pereons, or for damage to or destruction of property belonging to ~Cust~mer Name~) or others, resulting from Bonneville's negligent acts or omissions or intentional misconduct in connection with the performance of this Agreement, excepting that any liability attaching to Bonneville shall be reduced by any proportion that such injury or harm is caused by negligence or intentional misconduct of ~Customer Name)~, its s~l~ated companies, their respective boards of directors, officers, employees, agents or representatives. (b) ~Customar Name~ agrees to defend, indemnify, and hold harmless Bonneville, its employees, agents and representatives, against and from any and all loss, claims, actions, or suits, for or on account of injury, bodily or otherwise to, or death of persons, or for damage to, or destruction of property belonging to Bonneville, or others, resulting from ((Customer Name~'s negligent acts or omissions or intentional misconduct in connection with the performance of this Agreement, excepting that any liability attaching to ~Customer Name~ shall be reduced by any proportion that such injury or harm is caused .by negligence or intentional misconduct of Bonneville, its employees, agents or representatives. (c) No Party ("First Party") shall be liable to the other Party ("Second Party") for any injury or death to any person, or for any loss or damage to any property, caused by or arising out of an electric disturbance on the First Party's electric system, whether or not such electric disturbance resulted from the First Party's negligent, grossly negligent, or wrongful act or omission. (d) Bonneville and ~Customer Name~ assert that neither Party is the agent or principal for the other, nor are they partners or joint ventures; and the Parties agree that they will not represent to any other party that they act in the capacity of agent or principal for the other. (e) In no event shall either Party be liable to the other Party hereto for any special, punitive, exemplary, consequential, incidental, or indirect losses or damages for any failure of performance howsoever caused, whether or not arising from a Party's sole, joint, or concurrent negligence. (0 ~Customer Name~ agrees that Bonneville has no responsibility for production of Energy Savings under this Agreement. (g) Independent contractors contracting with.either Party to implement the provisions of this Agreement shall be required by contract to indemnify and hold harmless the other Party.~rem all claims, damages, losses, liability, and 01ES- ., Name of company 14 expenses arising from breach of contract, statutory and regulatory claims, and the negligent or other tortious acts or omissions of such independent contractors, their officers, employees, or agents. Nothing in this Agreement shall establish, or be construed as establishing, a contractual relationship between Bonneville and any contractor or subcontractor hired by ~Customer Name- £u parLicipate in £he Frojec~'~s implemeutation. 19. DISPUTE RESOLUTION (a) The Parties shall make a good faith effort to negotiate a resolution of · disputes before initiating litigation. During a contract dispute or contract issue between the Parties arising out of this Agreement, the Parties shall continue performance under this Agreement pending resolution of the dispute, unless to do so would be impossible or impracticable. {{Customer Name. reserves the fight to seek judieiai resolution of any dispute arising under this Agreement that is not subject to arbitration under this section 19. (b) Final actions subject to section 9(e) of the Northwest Power Act are not subject to binding arbitration and shall remain within the exclusive jurisdiction of the United States Ninth Circuit Court of Appeals. Any dispute regarding any fights of the Parties under any Bonneville policy, including the implementation of such policy, shall not be subject to arbitration under this Agreement. {{Customer Name)~ reserves the right to seek judicial resolution of any dispute arising under this Agreement that is not subject to arbitration under this section 19. For purposes of this sectioh 19 Bonneville policy means any written document adopted by Bonneville as a final action in a decision record or record of decision that establishes a policy of general application, or makes a determination under an applicable statute. If either Party asserts that a dispute is excluded from arbitration under this section 19, either Party may apply to the Federal court having jurisdiction for an order determining whether such dispute is subject to arbitration under this section 19. (c) Any contract dispute or contract issue between the Parties arising out of this Agreement, except for disputes that are excluded through section 19(a) above, shah be subject to binding arbitration. The Parties shall make a good faith effort to resolve such disputes before initiating arbitration proceedings. During arbitration, the Parties shall continue performance under this Agreement pending resolution of the dispute, unless to do so would be impossible or impracticable. (d) Any arbitration shah take place in Portland, Oregon, unless the Parties agree otherwise. The CPR Institute for Dispute Resolution's arbitration procedures for commercial arbitration, Non-Administered Arbitration Rules (CPR Rules), shall be used for each dispute; provided, however, that: (1) the Parties shall have the discovery rights provided in the Federal Rules of Civil Procedure unless the Parties agree otherwise; and (2) for claims of $1 million 01 ES- , Name of company 15 or more, each arbitration shall be conducted by a panel of three neutral arbitrators. The Parties shall select the arbitrators ~rom a list containing the names of 15 quahfied individuals supplied by the CPR Institute for Dispute Resolution. If the Parties cannot agree upon three arbitrators on the list within 20 business days, the Parties shall take turns striking names f~om the hst of proposed arbitrators. The Party initiating the arbitration shall take the first strike. This process shall be repeated until three arbitrators remain on the list, and those individuals shall be designated as the arbitrators. For disputes involving less than $1 million, a single neutral arbitrator shall be selected consistent with section 6 of the CPR Rules. (e) Except for arbitration awards, which declare the rights and duties of the Parties under this Agreement, the payment of monies shall be the exclusive remedy available in any arbitration proceeding. Under no circumstances shall specific performance be an available remedy against Bonneville. The arbitration award shah be final and binding on both Parties, except that either Party may seek judicial review based upon any of the grounds referred to in the Federal Arbitration Act, 9 U.S.C. §i-16 (1988). Judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction thereof. Each Party shall be responsible for its own costs of arbitration, including legal fees. The arbitrators may apportion all other costs of arbitration between the Parties in such manner as they deem reasonable taking into account the circumstances of the case, the conduct of the Parties during the proceeding, and the result of the arbitration. 20. NOTICES (a) Any notice required under this Agreement shah be in writing and shall be delivered: (1) in person; (2) by a nationally recognized delivery service; or (3) by United States Certified Mail. Notices are effective when received. Either Party may change its address for notices by giving notice of such change consistent with this section. If to ~Custemer Name,,: If to Bonneville: ~ ~, Bonneville Power Administration ~ ,, (fill in appropriate location address) Attn: ~ ,, Attn: . ~ ,~ ~ ~, Phone: ~ ~, Phone: ~___ __,, FAX: ~ , FAX: ~___ __,~ E-Mail: ~ ~, E-Mail: ~ ,~ 01ES- ,Nameofcompany 16 21. SIGNATURE CLAUSE Each Party hereto represents that it has the authority to execute and deliver this Agreement and that it has been duly authorized to enter into this Agreement. IN WITNESS WHERE_OF, the Parties have executed this Agreement. <<FULL NAME OF CUSTOMEPo> UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By By Account Executive Name Name (print/Type) (Print/Type) Title Date Date 01 ES- _ , Name of company 17 Exhibit A Project Proposals, Energy Savings & Project Budgets 1. DesCription of Conservation Proposal: (a) Proposal (b) Delivery Schedule (c) Estimated Energy Savings (d) Bonneville Payment & Invoicing Requirements (e) Specification, if any, for installation 2. Description of Conservation Proposal: (a) Proposal (b) Delivery Schedule (c) Estimated Energy Savings (d) Bonneville Payment & Invoicing Requirements (e) Specification, if any, for installation 3. Description of Conservation Proposal: (a) Proposal (b) Delivery Schedule (c) Estimated Energy Savings (d) Bonneville Payment & Invoicing Requirements (e) Specification, if any, for installation 4. Description of Conservation Proposal: (a) Proposal (b) Delivery Schedule (c) Estimated Energy Savings 01 ES- ., Name of company I of 2 Exhibit A 04/25/01 (d) Bonneville Payment & Invoicing Requirements (e) Specification, ff any, for installation OIES- , Name of company 2 of 2 Exhibit A 04/26/01 'Exhibk A Bonneville Contract No. Dam Proiect Proposals, Energy Savings & Peoiect Budgets A. Commercial Lighting I.imited Standard Offer This Limited Standard Offer (LSO) provides rebates for retrofits of lighting in commercial buildings. Th~ M~,~ures-el;slbl~ fo~ pay~a~t u~,der~.is ~ose listed in the Verification Report. In addition, a 25% wart reduction for each Project is required to receive the rebate. < < (~Rmaer NamO> shall ensure that all' materials, including PCB ballasts, are disposed of in acc6rd~nc~ with current envlroranental laws, <<Cu~omer Name>> shall implement a commercial ~ector lighting retrofit program designed to install the Measures listed in the Verification Report below. <<Customer Name> > may implemem the program using < <Customer Name> >'s staff or contractors to provide the service~ necessary to install the Measures. <<Customer Name>> shall provide a work plan to Bonneville which includes (1) a brief description of <<Customer Name> >'s program, (2) method for determining eligible buildings, and {3) qualifications required for auditors, installers and inspectors. Bormeville shall review this work plan and upon acceptance, send written notification to proceed. B. Implementation Period This LSO is available from the Execution Date of the Agreement, or amendment through September 30, 2003. This may be extended by modification of this LSO. C. Energy Savings Verification <<Customer Name>> sh~ inspect all instalJadons to ensure Measures are installed correcdy and the Measures meet the specifications listed in Section F of this LSO. < ~'._ustomer Name >> shall complete and sign the Verification Report and attach the Wattage Reducti°n Summary Sheet, or equivalent, for each Project and submit it with the invoice as described in sec6on D Below. < <l~hstorner Name>> shall retain all supporting documents for each Project that include, but are not limited to, purchase orders, subcontractor invoices, preproject estimates~ or other related Project documents. Bonneville may review these records as provided forin this Agreement. D. Bonneville Payment & Invoicing Requirements Bonneville shall provide (FILL IN AMOUNT REQUIRED, AMOUNT NOT TO EXCEED $200,O00. O0) for implementation of dfis proposal. <<Customer Name> > may invoice Bonneville up to this total Implementation Budget for this LSO through September 30, 2003. If < <Customer Name>> expends this Implementation Budget amount prior to September 30, 2003, < <~mtomer Name>> may request additional Implementation Budget. Bonneville ~ review the request and mayadd additional funds to the Implementation Budget by modification to this Agreement <<Customer Name> > may invoice Bonneville when Projects are complete, but no more often than once a month. Bonneville shall review and upon acceptance pay the reimbursements for measures installe~L <<Customer Name>>shall, if requested by Bonneville, arrange for an on-site inspection by Bonneville of the Measures installed. E. Program Requirements 1. The facility shall be non-residential and served by <<Customer Name>>. 2. The rebate shall not exceed 100 percent of the actual total cost. 3. All retrofit Projects must reduce the connected lighting wattage by 25%. 4. Rebates are available for existing facilities only. Page 1 5. Specify Energy Star labeling if available. F. Specifications for installation Electronic Ballasts for Full Size Fluorescent Lamps 1. Listing: The ballast must be listed on the most current Lighting Design Lab Specification Committee's Electronic Ballast List for Full Size Fluorescent Lamps. 2. General: All electronic ballasts shall meet the requirements of U.L 935 and shall bear the appropriate U.L. label. W~r~an~: Th~ ~!eetro~!c ~llasLs~ga!nst de.~e~s !n m~ter!=! and workmanship for three years. The warranty shall include either a $10.00 replacement labor allowance or complete replacement including labor by an agent of the manufacturer. 4. Mechanical Characteristics: Electronic ballasts shall have the same physical dimensions and mounting arrangements as those of their core and coil counterparts. §. Electrical Characteristics: The electronic ballast shall withstand input power line transients as defined in ANSI C82.41. The ballast shall tolerate a line voltage variation of+/- 10%. 8. The power factor shall be g$% or higher. The lamp crest factor shall measure 1.7 or less for rapid start ballasts and 1.85 or less for instant start ballasts. 7. Total harmonic distortion of the input current to the electronic ballast shall not exceed 20% of the input current. 8. The electronic ballast shall be Class "A" sound rated and UL Class "P" thermally protected. 9. The electronic ballast shall comply with FCC rules and regulations Part 18 concerning the generation of both EMI (electromagnetic interference) and RFI (radio frequency interference). 10. Electronic ballasts shall operate the lamp at a frequency of 20 khz or greater. 11. The ballasts shall start and operate standard lamps at $0 degrees F and energy savings lamps at 60 degrees 'F. Ballast case temperature shall not exceed 25 degrees C rise above a 40 degrees C ambient temperature. 12. The ballast shall be provided with an internal fuse to protect the electrical power supply from internal component failure. The ballast shall also be short-cimuit protected in the event of miswiring. Compact Fluorescent Low Wattage Fluorescent Ballasts This specification applies to magnetic and electronic ballasts of either integral or modular configuration operating 5 to 30 watt fluorescent lamps, regardless of shape or number of driven lamps. This specification does not apply to ballasts operating fluorescent lamps 2' and longer. 1. Listing: The ballast must be listed on the most current Lighting Design Lab Specir~=ation Committee's Electronic Ballast List for Low Wattage Fluorescent Lamps. 2. All ballasts shall comply with Underwriters Laboratory (UL) requirements and shall bear the appropriate labels. 3. The power factor for all ballasts shall be 90% or higher. 4. Total harmonic distortion (THD) of the input current shall not exceed 33% of the fundamental 60Hz. current. 5. Electronic Ballasts shall comply with FCC rules and regulations Part 18, concerning Electromagnetic and Radio Frequency Interference (EMI and RFI) 6. Electronic ballasts covered by this specification shall withstand input power line transients as defined in ANSI C62.41. 7. All equipment covered by the specification shall be Class "P" thermally protected where required by Code. 8. For all modular ballasts, the lamp current crest factor (ratio of peak current to RMS current of the modulated waveform) shall not exceed 1.7 for rapid start ballasts or 1.85 for instant start ballasts. g. The ballast shall be capable of starting the designated lamp at the minimum temperature established by the lamp manufacturer. Integral units shall state minimum starting temperature. 10. Ail ballasts shall be Class 'A" sound rated. Full Size Fluorescent Lamps: 1. Lamps shall be 1" in diameter T8. 2. Lamps shall have Rare Earth phosphor c0~ting and have a minimum CRI of 80. Page 2 Fluorescent Luminaires: 1. Components or luminaires shall be U.L listed or classified. Compact Fluorescent Lamps: 1. Lamps shall have Rare Earth phosphor coating having a minimum CRI of 80. Screw-in Compact Fluorescent: 1. I oral harmomc cllstortion (1HL)) ot the input current shall not exceed 33% of the fundamental 60 Hz. current. 2. Lamps shall meet Energy Star requirements. No equivalents allowed. Compact Fluorescent Fixtures: 1. Components or luminaires shall be U.L. listed or classified. 2. Recessed downlights shall have a reflector specifically designed for the lamps. 3. Recessed downlights shall be vented to provide convective cooling to the lamp. HID Lighting: 1. Luminaires and retrofit kits shall be U.L. listed or classified per specific application, (e.g., exterior luminaires to carry a U.L. wet or damp label designation): Occupancy Sensors: 1. Occupancy sensors shall be U.L. listed or classified. 2. Controlled luminaire wattage shall not exceed occupancy sensor electrical load capacity. 3. Occupancy sensors shall be provided with manual sensitivity adjustment or and an adjustable or fixed time delay during which controlled luminaires remain on after the space is vacated. Fixed time delay shall be at least 30 seconds and no more than 20 minutes. 4. Occupancy sensors shall be provided with a minimum 3 year manufacturer warranty. Daylighting Controls 1. Electronic ballasts shall control the light output of the lamps continuously between 25% and 100% of full light output. 2. Electronic ballast shall meet all other Fluorescent Ballast Specifications. Programmable Thermostats 1. Programmable thermostat shall have deadband and 7-day setback capabilities; heat pump thermostats shall also have optimal start and emergency heat lookout features. 2. Programmable thermostats shall include a switch to manually activate the fan. The fan shall run continuously when this switch is on. The fan shall run only when the thermostat calls for heating or cooling when this switch is off. 3. Programmable thermostats shall be provided with a batte~ back up. Page 3 Bonneville Contract Verification Report Item InstalJ~l Rebate Total Rebate Existing Fluorescent Fixtures, with magnetic ballasts; And TI2 lames, 4' or leas, ckangeto: T8 lamps and electronic ballasts with: 2 t° 4 lareps $30 I I lamp $i5 and Yi2 slimline lamps~ 5' to 8~ ch~mgeto: T8 lamps and clectr°nic ballasts with: 2 t° 4 latnps $40I1 lamp $20 and TI2 HO or VHO lamas. 5' to $'. change to: T8 lamps and elvztr°nic ballasts with: 2 t° 4 lamps $50I1 lamp $40 Existing Incandescent Fixture, change to: Compact Fluorescent, hard wired, replaceable lamp $30 Screw-in Compact Fluor., locking base, replaceable lamp $15 Screw in compact fluorescent $7 Existing Exit Sign, over 17 watt~, change to: Less 5 wat ( eD1 $35 I Fluorescent Fixture~, 4' or less with Elect. Ballasts and T 8 lam~ps 2, 3, or 4 lamps $30 1 tamp $15 Fluorescent Fixture, over 4' with Elect. Ballasts and T8 Lamps 2, 3, or 4 lamps $40 I lamp $20 Compact Fluorescent Fixtures, Hard Wired 5- 17 watts nominal $351 Greater than 17 watts nominal; $45 Exit Signs Less than 5 Watts (LED) $30 High Pressure Sodium or Metal Halide Fixtures 100 W or less $70 101 W - 399 W $120 400 W or ~reater $200 Occupancy sensors Wall-switch mount: 100 to 300 W $20 ] over 300 W $35 Ceiling or high wall mount, over 300 W $45 Programmable Setback Thermostat (with optimal start and emergency heat lockout) For HVAC systems with electric resistance heat or $50 [ [ Heat Pumps Total ~ Building Name and Address: Total Cost: $. kWh Savings: % Watt Reduction [3 Watt Reduction Achieved [] AH Equipment Meets Minimum Equipment Specifications [3 The Rebate Items listed above have been installed and ate opeeational Inspected and Approved by: Date: Page 4 WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: June 11, 2O0T TO: UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager SUBJECT: Marketing Services Professional Services Agreement Summary: The energy crisis and water shortage heighten the need to communicate with City utility customers. Informing and educating customers about these issues and proven ways to minimize impacts is important. tecommendation: Recommend to the City Council that the Mayor be authorized to enter nto the Marketing Services Professional Services Agreement with Den-Ree Productions. Background/Analysis: On April 17, 2001, the City Council authorized the Director of Public Works to implement a conservation program that qualifies for the Bonneville Power Administration (BPA) Conservation and Renewables Credit Discount (C&RD). On May 22, 2001, City Council approved a $20,000 advertising budget for the implementation and marketing plan. Acceptance of the Marketing Services Professional Services Agreement would provide needed marketing services to create awareness of the BPA wholesale power rate increase followed by a City retail rate increase anticipated this Fall. The marketing services will also assist the City with customer communications on the water shortage and energy conservation program. The energy crisis and water shortage present significant communication challenges such as: informing customers about the reasons for rate increases; soliciting customers to take action to reduce energy and water usage; and educating customers about the steps they can take to reduce their consumption and costs. The proposed scope of work includes services to produce, schedule and place print, radio and television advertisements and materials. The maximum compensation under the Agreement during the remainder of this year is $8,050. The maximum compensation per print, radio and television is $100, $50, and $525 respectively. The maximum advertising expenditures during the remainder of this year is $11,900. Video programs and commercials will also be on the City's government/educational access channel to increase exposure. Outsourcing these services is the most effective and efficient way to implement the implementation and marketing plan. Den-Ree Productions has the expertise and is available to complete the scope of work. A copy of the Professional Services Agreement is atlaehed. N:',PWKS',L1GHT~CON S'¢onservation4.doc June 7, 2001 Den-Ree Productions 670 Lotzgesell Road Sequim, WA 98382 Ph: (360)° 683-2677 Larry Dunbar Power Resources Manager The Gity of Port Angeles 315 East 5th Street Port Angeles, WA. 98362 Larry; Here are the details of our proposal to implement the marketing and advertising components of the city's conservation and public awareness campaign between now and the end of 2001. Exhibit "A" shows the details of the cost breakdown for our services and expenditures for the program, which includes both market consulting, and production costs through the end of December, 2001. It also includes an explanation of how we will work with the city in the approval and implementation of the marketing and advertising materials to be used through the local radio, print and television media. Exhibit "B" outlines the schedule for the program, and how it fits with the overall scope of the conservation and rate awareness campaign over the next several months. We looked forward to working the City of Port Angeles to educate, and inspire, the public about the critical role of conservation during these challenging times. Dennis Bragg Den-Ree Productions Exhibit A - Scope of Work and Lump Sum Costs TASK ~ - IMPLEMENTATION AND MARKETING PLAN The Consultant shall provide services to the City to update and carry out its Implern~nt~-t~0n ~n~Marketingl=~'~n~or ti~eC~ty~sPublicWor~ c~r~lJJtilities Department. The Contractor shall develop a marketing strategy and the details needed to implement the City's Implementation and Marketing Plan. The scope of work included in the marketing strategy shall include: a) Monthly meeting(s) with City staff to develop marketing strategy, priorities and activities; b) Identification of the specific activities to implement the strategy, their sequencing and schedule, and the party responsible for performing each activity; c) Draft radio advertisement scdpts, draft television advertisement stor~boards and scripts, and draft brochures/print advertisements shall be submitted for City review and approval; and d) The resource commitment (dollar costs) needed to implement the strategy. TASK II - MARKETING MATERIALS The Contractor shall provide the following services, within the available budget, to the City in developing Marketing Materials: a) Creative design and publication of brochures and pdnt marketing materials; b) Creative content, development and publication of radio advertisements; c) Creative content and production of television advertisements and informational programs. City staff will have final editorial approval of the content and design of Marketing Materials. All Marketing Materials must be approved in writing by the City prior to Contractor placement of advertisements. TASK III - OTHER SERVICES The Contractor shall implement sequencing and scheduling of marketing materials. The Contractor shall place advertisements with local newspapers, television access channel, radio and television stations within the approved budget. The cost of all advertisements shall be billed directly to the City. Page 8 CONSULTANT LABOR COSTS The Contractor shall charge the City the following rates: Production of Markefin,q Materials: -~Production of brochures-anti.tint-advertisements Not to exceed $100 per brochure/print ad Productions 14 Maximum compensation $1.400 Additional services $50.00 per hour Production of radio advertisements Not to exceed $50 per radio ad Productions 28 Maximum compensation $1,400 Additional services $25.00 per hour Production of video programs and commercials Not to exceed $525 per production Productions 10 Maximum compensation $5,250 Additional services $35.00 per hour Maximum compensation: $8,050.00 Maximum advertisin.q expenditures: $11,900.00 Services and advertising shall not exceed the above limits without prior City authorization. The Contractor shall not obligate the City to exceed the budget available, $20,000 was approved for fiscal year 2000. All charges include tax, where applicable. Page 9 Exhibit B - Implementation and Marketing Plan Schedule (subject to change) 1. Rate Increase Awareness Program 2001 Schedule !m~!ementation/Mar~tt~g~ctivi,ty .4 §161/ ~.8 9 '01'1~.1~2[__ Program development - Complementary advertising [ [ [ I Iv/ IV/ 2. Conservation Awareness Program 2001 Schedule Irnplementation/Marketins Activity 4 5 6 7 8 9 10 11 12 Program development V/ Community presentations V/ V/ V/ ~/ V/ iSchool poster contest development V/ School poster contest 1/' Energy Conservation Workshop Complementary advertising ~/ 1/ 3. Energy/Water Conservation Program 2001 Schedule Irnplernentation/Marketing Activity 4 5 6 7 8 9 10 11 12 Program development ~/ No cost, low cost brochure bill insert V/ Pumhase energy/water savinlg devices Free devices brochure bill insert V/ Retailer recruitment Appliance rebate brochure bill insert Point-of-purchase promotional materials Complementary advertising V/ V/ V/ 4. Compact Fluorescent Lamp Program 2001 Schedule ~ ImlNementation/MarketingActivity 4 5 6 7 8 9 JO 11 12 Program development Brochure/coupons bill insert V/ Complementary advertising ~/ V/ 5. Building Improvements Program 2001 Schedule Irnplementation/Marketing A ctiyi~, 4 $ 6 7 8 9 10 21 12 Program development V/ Contractor recruitment/training Brochure bill insert V/ Complementary advertising V/ Energy audit program offerin~ Supplemental program Offerings Page 10 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE THE CITY OF PORT ANGELES AND DEN-REE PRODUCTIONS RELATING TO: MARKETING SERVICES THIS AGREEMENT is made and entered into this day of June, 2001, by and between THE CITY OF PORT ANGELES, a non-charter code city of the State of Washington, (hereinafter called the "CITY") and Den~Ree Productions, a Washington Corporation (hereinafter called the "CONSULTANT"). WHEREAS, the CITY desires to secure marketing services in support of the Public Works and Utilities Department, 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 A, 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 A 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 XI of this Agreement. The CONSULTANT agrees that all services performed under this Agreement shall be in accordance with the standards of the profession and in compliance with applicable federal, state and IocaJ laws. The Scope of Work may be amended upon written approval of both parties. II OWNERSHIP OF DOCUMENTS Page 1 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 the CONSULTANT. However, any alteration or reuse of the documents, by the City or by others acting through or on behalf of the --Cdty;~vitl-be-at-t h e-City's .sole .risk~ Ill 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 Agreement by both parties, The work shall be completed in accordance with the schedule set forth in the attached Exhibit D. V PAYMENT The CITY shall pay the CONSULTANT as set forth in this section of the Agreement. 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 lump sum on the basis of the CONSULTANT'S total budget required as set forth in attached Exhibit A - Scope of Work and Section VI Lump Sum Compensation below. B. The CONSULTANT shall submit invoices to the CITY on a monthly basis. Invoices shall detail the work; 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 completed work. 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 upon the completion of the work and acceptance by the CITY. F. Payment for "Extra Work" performed under Section Xl of this Agreement shall be as agreed to by the parties in writing. VI LUMP SUM COMPENSATION Unless otherwise agreed to in writing by both parties, the CONSULTANT'S total compensation under this Agreement, including labor, direct non-salary reimbursable Page 2 costs and outside services, shall not exceed the maximum lump sum amounts as shown in attached Exhibit A. VII EMPLOYMENT Employe~s of-the C-ONSIJETANT, while~.ngagedjn th~rmance of any work. or_ _ __ services under this Agreement, 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 Agreement, the CONSULTANT shall not employ or contract with any CITY employee without the City's written consent. VIII 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. IX SUBCONTRACTS A. The CONSULTANT shall not sublet or assign any of the work covered by this Agreement without the written consent of the CITY. B. The CONSULTANT will be using the firms submitted with its proposal as subcontractors. Subcontractors other than those listed shall not be permitted without the written consent of the CITY. 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 Page 3 shall be notified by the CONSULTANT of Consultant's obligations under this Agreement, including the nondiscrimination requirements. X CHANGES IN WORK Other th~r~changes-directed-by-the-C~TY as~set-Jorth in Section I~abO3Le, eithe_~T.p_arty may request changes in the scope of work. Such changes shall not become part of this Agreement unless and until mutually agreed upon and incorporated herein by wdtten amendments to this Agreement executed by both parties. XI 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 A 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 Agreement. The CITY shall not be responsible for paying for such extra work unless and until the written supplement is executed by both parties. Xll TERMINATION OF AGREEMENT A. The CITY may terminate this Agreement 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 Agreement 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 Agreement is terminated pdor 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 pdor to transmittal of final payment to the CONSULTANT. XIII INDEMNIFICATION/HOLD HARMLESS The CONSULTANT agrees to indemnify the CITY 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 CONSULTANT, CONSULTANT employees, affiliated corporations, officers, and subcontractors in connection with the work performed under this Agreement. 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 Page 4 solely by the negligence or willful misconduct of the CITY, CITY's employees, or agents in connection with the work performed under this Agreement. If the negligence or willfu~ 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-~xpense-shall he--shared-between the_C_,QNS~ANT and the CITY in proportion to their relative degrees of negligence or willful misconduct and the dght of indemnity shall apply for such proportion. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages adsing out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the CONSULTANT and the CITY, its officers, officials, employees, and volunteers, the CONSULTANT'S liability hereunder 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 Agreement. However, the CONSULTANT expressly reserves its rights as a third person set forth in RCW 51.24.035. XlV INSURANCE The CONSULTANT shall procure and maintain for the duration of the Agreement, 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. The CONSULTANT shall provide a Certificate of Insurance evidencing: 1. Automobile Liability insurance with limits no less than $1,000,000 combined single limit per accident for bodily inju~j and property damage; and, 2. Commercial General Liability insurance written on an occurrence basis with limits no less than $1,000,000 combined single limit per occurrence and $2,000,000 aggregate for personal injury, bodily injury and property damage. Coverage shall include but not be limited to: blanket contractual; products/completed operations; broad form property damage; explosion, collapse and underground (XCU) if applicable; and employer's liability; and, 3. Professional Liability insurance with limits no less than $1,000,000 limit per occurrence. Any payment of deductible or self insured retention shall be the sole responsibility of the CONSULTANT. Page 5 The CITY shall be named as an additional insured on the Commercial General Liability insurance policy, as respects work performed by or on behalf of the Consultant and a copy of the endorsement naming the CITY as additional insured shall be attached to the Certificate of Insurance. The CITY reserves the right to review a certified copy of all required insurance policies in the CONSULTANT's office. 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. The CONSULTANT'S insurance shall be primary insurance as respects the CITY, and the CITY shall be given thirty (30) days prior written notice of any cancellation, suspension or material change in coverage. XV APPLICABLE LAW This Agreement 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. XVI EXHIBITS AND SIGNATURES This Agreement, 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 Agreement: Exhibit A - Scope of Work and Lump Sum Costs Exhibit B - implementation and Marketing Plan Schedule In WITNESS THEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY OF PORT ANGELES MAYOR CONSULTANT TITLE: Page 6 APPROVED AS TO FORM: CRAiGKNUTSON,-GITY ATT©RN EY ATTEST: BECKY UPTON, CITY CLERK Page 7 WASHINGTON, U.S.A. UTiLiTY ADVISORY COMMITTEE MEMO DATE: June 11, 2001 To: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director &Power Systems RE: BPA Rate Mitigation Agreement Summary: The Bonneville Power Administration (BPA) will be implementing substantial [ wholesale power rate increases starting in October. If all of BPA's customers can reduce their load requirements, the size of the increase will be considerably lower than if BPA is required to ;eryc the entire forecast load. [lecommend__~ation: Recommend the City Council authorize the City Manager to sign the Rate Mitigation Agreement with the Bonneville Power Administration along with an agreement with Daishowa America to commit to reduce their load requirements on the city. Background / Analvs{s: The Bonneville Power Admiuistmtion (BPA) is anticipating substantial wholesale power increases starting this October. The increases are being driven by the high price of market power which BPA will need to purchase to serve loads in excess of the power they are able to generate with their own resources. It is in the best interest of all the customers of BPA to reduce these market purchases and lower the rate increase necessary this fall. BPA needs to have final figures for the amount of load they will be required to serve by June 22, 2001, for thc rate case calculations which will set rates for the first six month period starting October 1, 2001. All utilities in the Northwest are being asked to commit to reducing their load on BPA by 10% starting this fall. BPA has commitment fi'om other groups they are serving, including some of the DSI's, the investor owned utilities, and a group called the block/slicers, but thai commitment is contingent on getting the majority of the public utility customers to commit to the 10% reduction also. The City can meet its 10% reduction through a combination of several programs. These include our conservation program offerings, residential and commercial consumer electricity reduction incentives, along with an agreement with Daishowa America to reduce its pulp refining load by purchasing pulp from out of the area. The load reduction commitment by Daishowa will be compensated by a payment fi.om the BPA. This should result in reductions to our load on BPA by about nine MWa, and meet our 10% load reduction on BPA. N :~PWKSXLIGH'IXPOWM~vlEMOS~uac061101 ratemitiSat/on.wpd Department of Energy Bonneville Power Administration PO Box 3621 Portland OR 97208 POWER BUSINESS LiNE DRAFT May 30, 2001 9:20 a.m. In reply refer to: PeW-Portland Contract No. 01PB-10861 RATE MITIGATION AGREEMENT Mr. Scott McLain Deputy Director of Power Systems Port Angeles City Light PO Box 1150 Port Angeles WA 1150 Dear Scott: This letter agreement (Agreement) between the Bonneville Power Administration (BPA) and The City of Port Angeles (Port Angeles)) a municipal corporation organized under the laws of the State of Washington, provides for Rate Mitigation measures that Port Angeles commits to undertake, and for which BPA agrees to make payment to Port Angeles in order to reduce the size of the BPA rate increase scheduled to take effect October 1, 2001. The Partiee agree: 1. TERM This Agreement takes effect on the date signed by the Parties and continues through September 30, 2003./Term must be either one year or two.] 2. DEFINITIONS "Rate Mitigation" means measures that are expected to reduce the amount of power provided by BPA to customer loads and/or power sales by the customer to BPA. 3. RATE MITIGATION COMMITMENT Port Angeles commits to complete the actions specified in this section (3) and Exhibit A which the Parties agree are expected to achieve the following reductions in the amount of power provided by BPA under Contract No. 00PB-12054. BPA agrees to consider such expected power purchase reductions in the calculation of the Load Based Cost Recovery Adjustment Clause (LB CRAC) calculations performed pursuant to section F of the 2002 General Rate Schedule Provisions. (a) Price Induced Rate Mitigation As a result of the expected increase in BPA's PF-02 rates, which take effect on October 1, 2001, Port Angeles shall increase its retail rates on average by not less than __ percent by ., 2001. The Parties agree that such retail rate increase is expected to result in a reduction in Port Angeles' power purchases under this Agreement equal to the amounts specified below. --~L1/iH=9~301~2 --~10L140~9]~ ~a!~ .... Month (MWh) (~) OcWber November December Janua~ ~ebrua~ Mar& Total May J~e August Sep~mber Total ~) Additional Rate Mitigation Measures Po~ Angeles commits to implement the Rate Mitigation measure(s) specified in section 3(c), below, and Ex,bit A. ~e Parties agree that, if comple~d, the total of such measure(s) is expec~d to reset in a reduction in Port ~geles' power purchases under this ~reement equ~ to the amounts spe~ed in the table below. (c) To~l Rate Mitigation ~oun~ and Percentages Port ~geles' Rate Mitigation percentage is calc~aWd by &~ng Po~ ~geles's Tot~ Rate Mitigation ~ount, which is the sum of the e~ected load redactions ~om sections 3(a) and 3~), by the total annual M~s of for~asted sales to Port ~geles as forecas~d at the PF 02 raw as documen~d in BPA's 2002 ~ended Power Ra~ Proposal, ~-02-E-BPA-58 an~or at the FPS-96 rate as d~umen~d in ~-02-FS-BPA-0~. Category. 10/1/01 - 9/30/02 I0/1/02 ~ 9/30/03 MWh MWh 3(a) Price Induced 8(b) Additional Measures i. Conservation/Load Curtailment Measures ii. Presubscription Measures iii. Power Supply Measures iv. Load Redaction Measures v. Irrigation Load Reduction Measures TOTAL RATE MITIGATION AMOUNT 01PB-10861, Port Angeles 3 Category. 10/1/01 - 9/30/02 10/1/02 - 9/30103 MWh MWh Rate Case Load Assumption RATE MITIGATION PERCENTAGE % % (4) PRESERVATION OF RIGHTS TO POWER (a) Section 5(b) Power Purchase Rights The Rate Mitigation specified in section 3 and Exhibit A is being undertaken by Port Angeles at the request of BPA. Upon the expiration or termination of this Agreement Port Angeles may take service from BPA for the amount of retail load reductions stated in section 3 which resulted from the execution of this Agreement and such service shall be bKled under the PF-02 rate, or its successor rate, without any charge, surcharge, penalty or TAC. Port Angeles' right to purchase service from BPA shall be the same as it was prior to the execution of this Agreement. (b) Load Loss and Returning Retail Load The Parties agree that the retail load loss provisions contained in section 5 of Contract No. 00PB-12054 will not apply to the retail reduction resulting from actions taken by Port Angeles pursuant to section 3. The Parties further agree that retail loads that are served by suppliers other than BPA as a result of this Agreement will be eligible to return to service from BPA upon the termination or expiration of this Agreement without notice to BPA, and at the PF-02 rate without application of any additional charge, surcharge, penalty or TAC. (5) RATE MITIGATION CONTINGENCY (a) As of the execution date of this Agreement the BPA Administrator has not issued any final rate decisions in Docket No. WP-02. In the event that the Load-Based Cost Recovery Adjustment Clause (LB CRAC), materially consistent with the Joint Customer Group and BPA staff proposal is not adopted in the Administrator's final Supplemental Record of Decision, this Agreement shall terminate effective October 1, 2001. (b) If, in calculating the LB CRAC (excluding true-ups) applicable for the period October 1, 2001 through March 31, 2002, pursuant to section F(1) of the General Rate Schedule Provisions (GRSPs), BPA is able to meet either criterion (1) below (through contracts executed no later than 7 calendar days prior to the final workshop explaining the calculation of the LB CRAC for the period from October 1, 2001, through March 31, 2002), or criterion (2) below, then this Agreement shall remain in effect. If BPA fails to meet both criterion (1) and criterion (2) below, then this Agreement shall terminate effective October 1, 2001. (1) BPA includes in the calculation of the LB CRAC (excluding true-ups) no more than 2200 aMWs (including all purchases made by BPA prior 01PB-10861, Port Angeles 4 to April 10, 2001) per month of market power purchases for meeting LB CRAC augmentation on average for the period October 1, 2001, to March 31, 2002, where market power purchases for purposes of calculating the application of this contingency clause do not include (i) power buy-backs of public agency and cooperative customers, investor- owne..dtit'~r~n'ceqr. ....................... (~) pc'::er purchases from public agency and cooperative customers, investor- owned utilities, or direct service industrial customers to the extent such buy-backs and purchases were executed between April 10, 2001 and the final date for execution of contracts used in the calculation of the LB CRAC for the period from October 1, 2001, through March 31, 2002. (2) The rate after application of the LB CtkAC (excluding all true-ups) is no more than 1.87 times the PF, RL, and IP-TAC rates. In the event that contracts executed between April 10, 2001, and the final date for execution of contracts used in the calculation of the LB CRAC (excluding true-ups) for the period from October 1, 2001, through March 31, 2002, exceed the amount necessary to reduce market power purchases below 2200 aMW per month in criterion (1), such additional load reductions shall be used to reduce the level of the LB CRAC. (c) If, in calculating the LB CtkAC (excluding true-ups) applicable for the period April 1, 2002 through September 30, 2002, pursuant to section F(1) of the General Rate Schedule Provisions (GRSPs), BPA is able to meet either criterion (1) below (through contracts executed no later than 7 calendar days prior to the final workshop explaining the calculation of the LB CRAC for the period from October 1, 2001, through March 31, 2002), or criterion (2) below, then this Agreement shall remain in effect. If BPA fails to meet both criterion (1) and criterion (2) below, then this Agreement shall terminate effective April 1, 2002. (1) BPA includes in the calculation of the LB CRAC (excluding true-ups) no more than 2200 aMWs (including all purchases made by BPA prior to April 10, 2001) per month of market power purchases for meeting LB CRAC augmentation on average for the period April 1, 2002, to September 30, 2002, where market power purchases for purposes of calculating the application of this contingency clause do not include (i) power buy-backs of pubhc agency and cooperative customers, investor- owned utilities, or direct service industrial customers; or, (ii) power purchases from public agency and cooperative customers, investor- owned utilities, or direct service industrial customers to the extent such buy-backs and purchases were executed between April 10, 2001 and the final date for execution of contracts used in the calculation of the LB CRAC for the period from October 1, 2001, through March 31, 2002, or are extensions of such buy-backs or purchases that were executed prior to April 10, 2001, and are extended prior to calculation 01PB-10861, Pert Angeles 5 of the LB CRAC for the period from April 1, 2002, through September 30, 2002. (2) The rate after application of the LB CRAC (excluding all true-ups) is no more than 1.87 times the PF, RL, and IP-TAC rates. In the event that contracts executed between April 10, 2001, and the final date for execution of contracts used in the calculation of the LB CRAC (excluding true-ups) for the period from October 1, 2001, through March 31, 2002, or extensions of buy-backs or purchases that were executed prior to April 10, 2001, and are extended prior to calculation of the LB CRAC for the period from April 1, 2002, through September 30, 2002 exceed the amount necessary to reduce market power purchases below 2200 aMW per month in criterion (1), such additional load reductions shah be used to reduce the level of the LB CRAC. (d) If, during the period October 1, 2001 through September 30, 2003, the amount of power forecast to be delivered by BPA to the direct service industrial customers in the calculation of the LB CRAC (excluding true-ups) exceeds 400 aMWs per month on average for any six month period used in calculating the LB CRAC, then this Agreement shall terminate on the first day of such six month period. (e) If the amount of power actually delivered to the direct service industrial customers exceeds 400 aMW per month on average for any six month period as determined by BPA through written notice to its customers or during the true-up of the LB CRAC, then this Agreement shall terminate effective on the first day of the month following such determination. (f) BPA acknowledges that Port Angeles may acquire the output of new generating resources or purchase firm power to meet the load reductions agreed to in Exhibit A. If such new generating resources were energized or such purchases were made after April 10, 2001, BPA hereby determines that, through reasonable measures, the firm planning capability of such resources in the amount of the load reductions agreed to in this Agreement cannot be conserved or otherwise retained for use in the region for the period after the load reduction provided in this Agreement expires or terminates through September 30, 2006. Port Angeles shall identify their newly added post April 10, 2001, resources or purchases and their firm planning capability by written notice to BPA by September 30, 2001 or as otherwise mutually agreed. BPA further determines that the use of any such non-hydroelectric resource, that would otherwise be considered a market resource under BPA's policy implementing section 9(c) of the Northwest Power Act, to meet loads in the region resulting from load reduction contracts with BPA that are subject to this section 5 shall not be considered a regional resource as a result of such use. This paragraph shah remain in effect subsequent to the expiration or termination of this Agreement. 01PB-10861, Port Angeles 6 If the foregoing terms are acceptable, please sign both originals and return one original of this Agreement to BPA by June 22, 2001. The remaining original is for your files. Sincerely, Account Executive Name Charles W. Formaq~ Jr. (Print/ ~pe) ACCEPTED: THE CITY OF PORT ANGELES By Name (Print/Type) Title Date PBLLAN:WXPSW\PM\i l_16XPort Angelee\5_30 redraft 01PB-10861Overarching L~tter Agreement.doc O1PB-10861, Port Angeles Exhibit A ADDITIONAL RATE MITIGATION MEASURES (As described in section. 3(c), Customer a.~tel AE may list each. measure below in Section 3(c), or categorize them similar to that shown in i-v below. Tlr, ese titles are for th, e convenience of ctistomers to better summarize their commitment. Exhibit A should be organized to reflect w!;~tcvc~; tit]cc c::'~.~4~,s~dJ4~re. C,~.~to:ner ~_~d..4E ,:ay c1~_~,, ,~. ~1,,I~,~,~ th~ titl~.~ fnr categories _ ii-v, below, or com. bine them and simply ~se the title "Additional Measures" without any of th.e sub-categories. These titles are/bt tl~ convenience of customers to better summarize their commitme, t. This section sl~o~.dd be organized to reflect the titles ~tsed i, section 3(c).] B Additional Measures i. Conservation/Load Curtailment Measures ii. Presubscription Measures iii. Power Supply Measures iv. Load Reduction Measures v. Irrigation Load Reduction Measures (a) [NAME OF MEASURE #1] The Rate Mitigation amounts expected to be achieved under the measure provided for under Contract No. are shown in the table below. Such measure subject to section 5, Rate Mitigation Contingency, of the body of this Agreement. [Drafter's Note: Specify the contract number under which the measure has or will occur. In.dicate if the measure is or is not subject to the rate mitigation contingency.] 10/1/01-9/30/02 10/1/02-9/30/03 Month (MWh} (MWh) October November December January February March Total April May June August September Total Co) [NAME OF MEASURE #2! The Rate Mitigation amounts expected to be achieved under the measure provided for under Contract No. are shown in the table below. Such measure subject to section 5, Rate Mitigation Contingency, of the body of this Agreement. [Drafter's Note: Specify the contract number under which, the measure h, as or will occur. Indicate if the measure is or is n~ot subject to the rate mitigatio~ conti~gency.] 01PB-10861, Port Angeles Exhibit A, Additional Rate Mitigation Measures i of # 10/1/01-9130102 1011102-9/30103 ~o.th (~Wh) (~W) October November December January February March Total April May June August September Total 01PB-10861, Port Angeles 2 of# Exhibit A, Additional Rate Mitigation Measures WASHINGTON, U.S.A. UTILITY ADVISORY (~OMMITTEE MEMO DATE: June 11, 2001 TO: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director of Power Systems RE: Consumer Electricity Reduction Agreement Summary: The Bonneville Power Administration is offering a program for commercial and residential customers which will pay consumers to reduce their load on the utility. Customers that can reduce their load by more than 10% can receive an incentive at the rate of $.046 per kWh for all savings above 10%. Recommendation: Recommend City Council authorize the City Manager to enter into the Consumer Electricity Reduction Agreement with the Bonneville Power Administration. Background / Analysis: The Bonneville Power Administration needs to reduce the amount of load it is required to serve to be able to lower the amount of the wholesale rate increase that will be effective starting in October. This BPA sponsored program provides incentives for commercial and residential customers that reduce their load on our utility. The financial incentive is based on a customer reducing their monthly consumption by at least 10%, Any kWh savings above 10% would receive a payment of $.046 per kwh. The Utility would receive a payment of $.01 per kwh for administering the program. To qualify for the program, residential customers must have lived at the same address or commercial customers must have had the same place of business for the past twelve months. The customers also cannot be participating in any other BPA funded Conservation Augmentation programs other than the Compact Florescent Light Program or the Vending Miser Program. They must also indicate that they intend to participate in the program. This program will also contribute to the City's commitment to reduce load by 10% in our Rate Mitigation Agreement with BPA. N:~PWKS~LIOH~xPOWM~IEMOS\uac061101 ¢lecrcduction.wod Department of Energy Bonneville Power Administration PO Box 3621 Portland OR 97208 POWER BUSINESS LINE DRAFT DATE 06/04/01 In reply refer to: PSW Contract No~ 01PB- 10918 CONSUMER ELECTRICITY REDUCTION AGREEMENT Mr. Scott McLain Deputy Director of Power Systems Port Angeles City Light PO Box 1150 Port Angeles WA 98362-0217 Dear Scott: This letter agreement (Agreement) between the Bonneville Power Administration (BPA) and The City of Port Angeles (Port Angeles), provides for the reduction of retail end-use consumer (Consumer) electricity consumption through the BPA Consumer Electricity Reduction Program (Program). This Program is intended to reduce the level of BPA's applicable wholesale power rates effective on October 1, 2001. Under this Agreement, BPA agrees to pay Port Angeles for verified and certified reductions in the amount of electricity consumed by Port Angeles' Consumer residential and commercial loads served with power purchased under Port Angeles' Power Sales Contract No. 00PB-12054 (Power Sales Agreement, "PSA'). Port Angeles agrees to actively advertise and promote this Program with its residential and commercial consumers. Unless otherwise specified in this Agreement, all administrative and operational provisions required to perform this Agreement shah be as described in the PSA. This Agreement does not amend, modify, or otherwise change the provisions of the PSA. The Parties agree: 1. TERM This Agreement takes effect on the date signed by BPA and Pm~ Angeles. Performance by BPA and Port Angeles shah commence on October 1, 2001 and continue through September 30, 2003 (Expiration Date). 2. PROGRAM REQUIREMENTS To be eligible for this Program, Port Angeles must have Consumers who are eligible to participate and have met the Program requirements. The Consumer participating in the Program must reduce their kilowatthour (kWh) energy usage amount by more than 10% compared to the same retail 2 billing period for the previous year. If the Consumer does not achieve more than a 10% reduction during a retail billing period, no credit shall be provided for that period; however, the Consumer shall remain eligible to participate in the Program. Each month, Port Angeles will compare the Consumer's electric usage to the same retail-billing period for the previous year. Consumer's electric usage for the previous year will be adjusted based on the number of days of service in the current retail-billing period. Upon request, Port Angeles shall provide BPA with documentation for each Consumer participating in the Program. BPA shall use this documentation to verify and confirm the Consumer load reduction amounts covered by this Agreement. Port Angeles shall provide any additional documentation BPA and Port Angeles mutually agree is necessary to demonstrate compliance with the Program. Port Angeles agrees that each Consumer participating in the Program has met the fo]lowing requirements: (a) The Consumer is not participating in any BPA funded Conservation Augmentation programs other than the Compact Florescent Light program and the Vending Miser program. (b) The residential Consumer has lived at the same address and the commercial Consumer(s) has (have) had the same place of business} for the past twelve consecutive months. (c) The Consumer has submitted positive indication of intent to participate in the Program to Port Angeles (Business reply post card, phone contact, or equivalent). 3. REPORTING Prior to receiving credit under this Agreement, Port Angeles shall submit a report to BPA certifying the total number of Consumers participating and total number of Consumers that have achieved reductions in load of greater than 10%. Each month Port Angeles shah submit an executed Exhibit A, BPA Certification and Reporting Form, to BPA documenting the total amount of savings. 4. AMOUNTS AND PRICE a. Port Angeles shah receive a credit for the retail billing periods where the Consumer has achieved energy savings of more than 10%. BPA shall credit Port Angeles' monthly wholesale power bill for each kWh of energy savings above 10% multiplied by $0.056 per kWh. b. Port Angeles shah credit the Consumer's monthly power bill for each kWh of energy savings above 10% multiplied by $0.046 per kWh. BPA will credit Port Angeles' next wholesale power bill fo]lowing receipt of a completed Exhibit A. Billing and payment under this Agreement 01PB-10918, Port Angeles 3 shall be made consistent with and as a specific item in Port Angeles' wholesale power bill. 5. TERMINATION BPA and Port Angeles shall each have the right to terminate this Agreement upon 30 days written notice to the other party. Termination of this Agreement shah be no sooner than September 30, 2002. If the foregoing terms are acceptable, please sign both originals and return one to me. The remaining original is for your files. Sincerely, Charles W. Forman, Jr. Account Executive ACCEPTED: THE CITY OF PORT ANGELES By Name (Print / 7~ype) Title Date P]SLLAN:(W\PSW\PM'xll_IB\Port AngelesX,01P~-~0918 CEJ~kgreement. doc) 6/4/01 01PB-10918, Pon Angeles pOR?ANGELES WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MI~MO DATE: June 1 I, 2001 To: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director of Power Systems RE: Contribution to Washington PUD Association for DSt effort Summary: The DSI's are pushing for wholesale rates from BPA based on a "tiered rate structure". This rate structure would be devastating to public utility customers of BPA. The Washington PUD Association has hired a consultant to seek solutions that will work for all customers of BPA. Recommendation: Recommend City Council authorize the City Manager to contribute o the cost of supporting the effort against "tiered rates" by BPA in the amount of $4,000. Background / Analysis: The Direct Service Industries (DSI's) have been pushing for a new wholesale rate concept from BPA called "tiered rates". The proposal advocates customers of BPA receive their first 75% of purchases at a rate less than $25 and the remaining 25% of their purchases at market rates. This rate mechanism would shift costs away from the DSI's to the other customers of BPA, increasing rates to other public and exchange customers by up to 250%. This result could mean a substantial loss of direct and indirect jobs and closure of business and industries served by the public utilities. The Association of Washington Cities (AWC) is working collectively with the Washington PUD Association (WAPUDA) and the Washington Rural Electric Cooperative Association (WRECA) in securing representation on this issue in Washington DC. Former Senator Slade Gortun, a friend of utilities and BPA for many years, has been retained as a consultant to seek solutions that work for all ratepayers. A suggested contribution for utilities, based on number of customers and retail revenue, has been established and suggest a contribution by the City in the amount of $4,000. Staffbelieves this contribution is reasonable considering the devastating effects this could have on our community if the DSI's are successful in forcing BPA to implement tiered rates. N :~ WKS~IGH'I~POWM~VIEM OS\u a¢061101 wpuda.wpd