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HomeMy WebLinkAboutAgenda Packet 06/14/2011I. Call To Order II. Roll Call III. Approval Of Minutes For May 10, 2011 IV. Late Items V. Discussion Items: A. Nippon Paper Industries USA Co., Ltd, Power Sales Agreement Update (verbal report only) B. Puget Sound Clean Cities Coalition Electric Vehicle Infrastructure Grant Acceptance C. Advanced Metering Infrastructure System Agreement Change Order No. 1 D. Residential Solid Waste Collection Route Revisions E. Bonneville Power Administration Residential Exchange Program Settlement Agreement Ratification F. Bonneville Power Administration Commercial and Industrial Demand Response Grant Amendment No. 1 G. Professional Services Agreement Amendment No. 3 for Commercial and Industrial Demand Response Project Evaluation H. Bonneville Environmental Foundation Solar4R Schools Project Update VI. Information Only Items: A. Northwest Public Power Association Tier 2 Power Supply Workshop Update (verbal report only) B. Advanced Metering Infrastructure System Agreement Update (verbal report only) C. Eagles Easement (verbal report only) VII. Next Meeting Date July 12, 2011 VIII. Adjournment N. \uac \final \061411 Utility Advisory Committee Jack Pittis Conference Room Port Angeles, WA 98362 June 14, 2011 3:00 PM AGENDA I. Call To Order Chairman Dan DiGuilio called the meeting to order at 3:00 p.m. II. Roll Call UAC Assigned Councilmembers Present: Dan Di Guilio, Cherie Kidd, Brooke Nelson Other Councilmembers Present: Other Councilmembers Absent: Utility Advisory Committee Members Present: Utility Advisory Committee Members Absent: Staff Present: Others Present: III. Approval Of Minutes Chairman Dan DiGuilio asked if there were any corrections to the minutes of April 12, 2011 Committee Member Dean Reed moved to approve the minutes. Paul Elliot abstained due to absence of the prior meeting. Brooke Nelson seconded the motion, which carried unanimously. IV. Late Items: None. City Council Special Meeting/Utility Advisory Committee Jack Pittis Conference Room Port Angeles, WA 98362 May 10, 2011 3:00 p.m. Max Mania, Patrick Downie Don Perry, Brad Collins Dean Reed, Paul Elliott None Kent Myers (3:15), Glenn Cutler, Bill Bloor, Mike Puntenney, Yvonne Ziomkowski, Larry Dunbar, Randy Brackett, Terry Gallagher, Ernie Klimek, Joey Currie, Terri Partch, and Kathryn Neal. Tom Callis PDN Bob Martin Clallam County (3:40) Terry Mundorf Western Public Agencies Group 1 V. Discussion Items: A. Bonneville Power Administration Revised Residential Exchange Program Settlement Agreement Larry Dunbar, Deputy Director of Power Systems, introduced Terry Mundorf who reviewed the revised settlement agreement that has been offered with the Bonneville Power Administration's Residential Exchange Program. A lengthy discussion followed. The Councilmembers and Utility Advisory Committee members confirmed they do not support the Residential Exchange Program Settlement Agreement. B. Combined Sewer Overflow Archaeological Pre Clearance Exploration, Project No. 06 -01 Kathryn Neal, P.E., Engineering Manager, discussed over the pre construction and archaeological sampling effort for excavation within the Combined Sewer Overflow project. A brief discussion followed. Dean Reed moved to recommend City Council award and authorize City Manager to sign a contract for CSO Archaeological Pre Clearance Excavation, based on satisfactory bid results. Brooke Nelson seconded the motion, which carried unanimously. C. 4` Street Stormwater Project and Public Outreach Terri Partch, P.E., Civil Engineer, Stormwater Program Manager, provided information on alternate approaches to solving flooding issues, as well as storm water treatment. Public outreach has been conducted in the problem areas, along Fourth Street between H Street and Evans Avenue. A lengthy discussion followed. Following a staff presentation, the Utility Advisory Committee provided guidance to staff to complete the design using a hard pipe alternative. D. Broadband Technology Opportunities Program Professional Services Agreement Terry Gallagher, Police Chief, reviewed the evaluated consultant's qualifications in support of the Wireless Mobile Data System project. Columbia Telecommunications Corporation's qualifications were ranked as the top selection and price for the scope of work was within the anticipated price range. Dean Reed moved to recommend City Council authorize the Mayor to sign an agreement with Columbia Telecommunications Corporation in an amount not to exceed, $65,400, and authorize City Manager to make minor modifications to the agreement, if necessary. Paul Elliot seconded the motion, which carried unanimously. 2 E. Advance Metering Infrastructure System Radio Frequency Field Opt -Out Larry Dunbar, Deputy Director of Power Systems, provided a brief description of a customer's voiced concerns about the radio frequency fields emitted by smart meters and an opt -out program from the wireless data transmission component, during last month's Town Hall meeting. A lengthy discussion followed. The Utility Advisory Committee provided guidance to staff not to pursue an opt -out allowance. F. Elwha Valley Road Project City /County roadway Easement and Quitclaim Deed Glenn A. Cutler, Director of Public Works Utilities, stated the Lower Elwha Klallam Tribe has proposed to create a new access road to their reservation. Requirements and construction plans to achieve the Elwha Valley Road, was brought to attention. There was an extensive discussion. Brooke Nelson moved to recommend City Council to: 1) accept the quitclaim deed and 2) grant an easement to Clallam County to alter, repair, improve, and maintain for county road purposes, and authorize City Manager to make minor modifications to the easement, if necessary. Cherie Kidd seconded the motion, which carried unanimously. G. Simple Steps, Smart Savings Promotion Services Agreement Project Order 03.3 Joey Currie, Residential Energy Analyst, discussed an amendment offered to our Simple Steps, Smart Savings Promotion Agreement to deliver energy- efficient compact fluorescent lamps and showerheads to low income senior citizens and low- income disabled customers. All City expenses would be eligible for reimbursement under the Bonneville Power Administration's energy conservation program. A lengthy discussion followed. Dean Reed moved to recommend City Council to authorize City Manager to sign Project Order -03.3 to the Simple Steps, Smart Savings Promotion Services Agreement, and make minor modifications to the agreement, if necessary. Paul Elliot seconded the motion, which carried unanimously. Information Only Items: A. Benefit Dump Day Report Information only. No action taken. B. Advance Metering Infrastructure System Update (Verbal Report Only) Information only. No action taken. 3 C. Utility Rate Studies Calendar Information only. No action taken. D. Tier 2 Power Supply /Strategic Planning Workshop Information only. No action taken. VI. Executive Session Bill Bloor, City Attorney, announced the Executive session in accordance with RCW 42.30.110(1)(i) which was conducted as follows: Session began: 4:15 P.M. Session ended: 4:55 P.M. VIII. IX. Dan DiGuilio, Mayor Janessa Hurd, City Clerk Dan DiGuilio, Chair Utility Advisory ray, Adminfistrative S` Committee Next Meeting Dates: June 7 -8, 2011 Tier 2 Power Supply /Strategic Planning Workshop June 14, 2011 Regular Meeting Adjournment: 5:05 p.m. 4 CITY OF i 1 j M* T1 ORT s NGELES W A S H I N G T O N U. S. A Utility Advisory Committee Memo Date: June 14, 2011 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Puget Sound Clean Cities Coalition Electric Vehicle Infrastructure Grant Summary: The City recently submitted a funding request under the Puget Sound Clean Cities Coalition Electric Vehicle Infrastructure Grant program. Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to 1) sign the agreement with the Puget Sound Clean Cities Coalition for the City's electric vehicle infrastructure project, 2) sign an interlocal agreement with the City of Seattle for procurement of electric vehicle infrastructure, and 3) make minor modifications to the agreement, if necessary. Background /Analysis: A recent solicitation from the Puget Sound Clean Cities Coalition sought proposals for alternative fuel technology vehicle acquisitions and infrastructure deployment in Western Washington. Given our successful experiences with alternative fueled vehicles, the City proposed to purchase four additional hybrid/electric vehicles. The City also proposed to procure a total of 10 "Level 2" charging stations. Four of these charging stations would be placed on City property, and two of these stations would be publicly available. A fifth station would be placed at The Landing Mall, where it will be integrated into an existing commercial and industrial demand response pilot project funded by the City and the Bonneville Power Administration. The other five stations will be strategy placed in the City's downtown business corridor in cooperation with locations being identified with the assistance of the city's business community. The total funding sought from the Puget Sound Clean Cities program under this solicitation is $131,780, with a total cost -share from of the City in the amount of $108,150. It is anticipated that the procurement activities will be completed by mid August 2011, and the infrastructure installations will be completed by mid October 2011. Staff recommends entering into an interlocal agreement with the City of Seattle for procurement of electric vehicle infrastructure. A complete sources and uses of funds statement is attached. Although a formal award notice has not yet been received from the funding agency, staff is requesting that the Utility Advisory Committee forward a favorable recommendation to City Council because the grant has a very tight timeline, and the requirement that our proposed project meet a funding dispersement deadline of November 30, 2011. N \UAC \Final\Puget Sound Clean Cities Coalition Electric Vehicle Infrastructure Grant docx Puget Sound Clean Cities Coalition Electric Vehicle Infrastructure Grant June 14, 2011 Page 2 USES OF FUNDS STATEMENT Level 2 Charging Stations (Turn -Key Installed) Chevrolet 1500 Silverado, Two Mode Hybrid Crewcab STATE CONTRACT ORDER CODE 2311 118 -042 Automobile, Midsize 4 Door Hatchback, 2011 Toyota Prius Hybrid STATE CONTRACT ORDER CODE 2311 935 -001 Small Utility /Crossover Ford Escape Hybrid Electric Vehicle STATE CONTRACT ORDER CODE 2312- 962 -001 TORO Workman MDE STATE CONTRACT 08506 TOTALS Puget Sound Clean Cities Recovery Act Grant Budget UNITS COST /UNIT TOTAL COST City Cost -Share Funding Request 10 13,550 135,500 24,000 111,500 1 39,580 39,580 25,300 14,280 1 24,500 24,500 22,500 2,000 1 30,200 30,200 28,200 2,000 1 10,150 10.150 8 150 2 000 239,930 108,150 131,780 SOURCES OF FUNDS STATEMENT Puget Sound Clean Cities 131,780 City of Port Angeles Electric Utility Fund 12,000 City of Port Angeles Economic Community Development Fund 12,000 City of Port Angeles Equipment Reserve Fund 84.150 TOTALS 239,930 Vehicle Due replacement #42 1999 2011 Oldsmobile Cutlass In Kind Life cycle Replacement 2011 Ford 12 year Fusion 120,000 miles Proposed Replacement Life cycle 2011 Toyota 12 years Prius 120,000 miles MPG 15 MPG 26 MPG 49 Fuel cost calculated $4.00 per gallon 2011 Prius Cost Comparison Purchase Cost N/A Purchase Cost $16,650.00 City Purchase cost $22,500.00 Vehicle purchase price difference $5,850.00 120,000 mile Fuel Disposition of consumption vehicle 8000 gallons Cost $32,000.00 120,000 mile Fuel consumption 4,615 gallons $18,461.00 120,000 mile Fuel consumption 2,449 gallons Cost $9,795.00 Fuel cost difference $8,666.00 Surplus dispose 120,000.`irile price savings Prius $2,816.00 2011 1/2t Hybrid Pickup Cost Comparison Vehicle Life Cycle MPG City Purchase 120,000 Fuel Disposition of Cost consumption vehicle Reassign to #4400 15,000 gallons Street Div. 15 8 $14,007 Cost Carpenter $60,000 shop Standard T MPG City Purchase 120,000 Fuel Pickup Life Cycle Cost consumption Replacement %2 t Extended 15 15 $20,570 8000 gallons cab 2wd Cost $32,000 Proposed Life Cycle MPG City Purchase 120,000 Fuel Replacement Cost consumption GMC K1500 15 20 $25,300 6,000 gallons 1/2t crewcab Cost hybrid pickup $24,000.00 Purchase Fuel Cost 120,000 mile Difference Difference savings $4,730 $8,000 GMC hybrid $3,270 Fuel cost calculated $4.00 per gallon Vehicle #05425 2005 Pontiac Vibe #05426 2005 Pontiac Vibe Standard Replacement 2011 Ford Escape Proposed Replacement 2011 Ford Escape Hybrid 2011 Ford Escape Cost Comparison Life Cycle 12 years 120,000 miles 12 years 120,000 miles Life Cycle 12 years 120,000 miles Life Cycle 12 years 120,000 miles Fuel cost calculated $4.00 per gallon MPG 29 29 MPG 24.5 MPG 34 Purchase Cost $16,808 $16,808 City Purchase Cost $18,020 City Purchase Cost $28,200 Purchase Difference $10,180 120,000 Fuel Consumption 4,139 gallons Cost $16,552 4,139 gallons Cost $16,552 120,000 Fuel consumption 4,898 gallons Cost $19,592 120,000 Fuel Consumption 3,529 gallons $14,117 Fuel Cost Difference $5,475 Present mileage 92,764 miles 86,821 miles 120,000 mile savings Standard Escape $4,705 Vehicle Due replacement #79 1994 Cushman 2009 Scooter Standard Life Cycle Replacement John Deere 10 Gator cart Proposed Life Cycle Replacement Toro Workman 10 MDE cart 2011 Work Cart Cost Comparison Purchase cost $,9,733 Purchase Price $8,000 Purchase Price $8,150 Purchase cost Difference $150 7 year maintenance cost $1,829 Projected 7 year maintenance cost $1,100 Projected 7 year maintenance cost $600 Maintenance cost difference $500 Disposition of vehicle Surplus dispose Life cycle cost savings $350 W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: June 14, 2010 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Ernie Klimek, Water Superintendent Subject: Advanced Metering Infrastructure System, Project WTO1 -2008, Change Order No. 1 Summary: Mueller Systems, LLC was awarded a contract to construct the advanced metering infrastructure system for the Electric and Water Utilities. As part of the implementation plan, Mueller Systems recommended the City consider the use fire rated meters for commercial customers with fire suppression systems. Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to approve Change Order No. 1 to the contract with Mueller Systems, LLC for the Advanced Metering Infrastructure System, Project WTO1 -2008, in the amount of $78,550.00 for a total contract amount of $4,468,314.00, including applicable tax. Background /Analysis: On December 21, 2010, City Council awarded a contract to construct the Advanced Metering Infrastructure (AMI) system for the Electric and Water Utilities. As part of the Implementation Plan that was completed in February, Mueller Systems, LLC recommended the City consider the use fire rated meters for commercial customers with fire suppression systems. The Fire Department supports the need for fire rated meters to ensure that the water flow and pressure are not negatively affected when a fire suppression system is activated. The work entailed in Change Order No. 1 includes changes to water meters for commercial customers with fire suppression systems, including adjustments to the unit charges (all dollar amounts in this memo include applicable tax). The contract is structured to pay based on the actual installed quantities. Therefore, the final contract amount may vary up or down from the authorized amount. It has been confirmed that sufficient funding for this Change Order No. 1 is available within the existing budget for the AMI System. The negotiated amounts are fair and reasonable. Below is a summary of the meters that need to be fire rated. Meter Description Commercial 3 Inch 1 1 Commercial 4 Inch 1 Commercial 6 Inch 1 Contract Unit Charge N \UAC \Final \AMI System Charge Order 1 doc 713.00 1 990.00 1,853.00 1 Change Order Estimated Change Order Unit Charge Quantity 3,321.00 1 15 3,975.00 1 7 5,560.00 1 5 1 Totals 1 27 1 39,120.00 20,895.00 18,535.00 $78,550.00 Advanced Metering Infrastructure System, Project WTO1 -2008, Change Order No. 1 June 14, 2011 Page 2 Change Order No. 1 addresses fire rated meters and the cost is based on the estimated quantity, for a total increase to the contract of $78,550.00. Staff evaluated the need for residential and commercial fire meters and a memo is attached providing further information. In accordance with the Implementation Plan the City has until June 30, 2011 to take action on this issue, which will provide Mueller Systems adequate lead time to have the appropriate meters manufactured for the City's project. A summary of the contract and change order is provided below. Original Contract Change Orders (1) Amount 1 $4,389,764.00 1 $78,550.00 Summary of Contract and Change Order Final Cost Project Cost Variance 1 $4,468,314.00 1.8% Staff recommends that the Utility Advisory Committee forwards a favorable recommendation to City Council to authorize the City Manager to approve Change Order No. 1 to the contract with Mueller Systems, LLC for the Advanced Metering Infrastructure System, Project WTO1 -2008, in an amount of $78,550.00 for a total contract amount of $4,468,314.00, including applicable tax. Attachment: Memo titled "Residential and Commercial Fire Meters AMI System Project" Residential Fire Annlications Commercial Fire Annlications r WASHINGTON, U.S.A. PUBLIC WORKS UTILITIES DEPARTMENT DATE: March 18, 2011 To: Mike Puntenney, City Engineer From: Eric Walrath, Engineering Projects Supervisor Ilia Subject: Residential and Commercial Fire Meters AMI System Project Mike, Subsequent to our conversation regarding the subject water meters, I have discussed the matter with the Water Superintendent, the Fire Marshal, and reviewed the specifications of the various meters. Below is the summary of the information obtained and recommendations. The standard water meter size for single family residences is 5/8 Single family residences with fire suppression systems are served by a standard 3/4" meter and are billed at the 5/8" rate. The Fire Marshal has no objection to the continuation of this practice. Based on my review of the meters currently specified for the project, the Model MVR has identical flow characteristics to the residential fire meter for sizes 3/4" to 2 Both meters are built to meet the same standard; ANSI/AWWA C701, Class 1. Flow characteristics of the 400 Series IIS meter, also currently specified for the project, are virtually identical to both of the above meters. The only substantive difference appears to be reduced accuracy as flows approach the maximum. Based on the above, it is recommended that the currently specified 3/4" Model MVR or 3/4" 400 Series IIS be deployed at locations with fire suppression systems currently served by a 3/4" meter. Cost and accuracy are the determinant factors regarding selection for this application. Most, if not all, commercial fire suppression systems which use large combined fire and domestic water service are currently metered with compound meters. The currently specified Model MVR is suitable for commercial applications up to 2 The MVR may be suitable for applications from 3" to 6 This would be a function of the requirements of the particular system. Maximum flows for the FM3 Fire Service Meter, available in sizes from 3" to 10 are approximately double the MVR. Based on the above, it is recommended that the currently specified Model MVR be deployed for commercial applications up to 2 3" to 6" Model MVR meters may be used where flow characteristics meet or exceed those of the existing compound meter and meet or exceed the requirements of the existing fire suppression system. Unit priceshould be obtained for 3 6" FM3 Fire Service Meters for deployment at locations where the Model MVRs bt adequate for existing system requirements. Reviewed: II Xl Date: 3/11/2,0 f I J )ORT A NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: June 14, 2011 To: Utility Advisory Committee From: Randall C. Brackett, P.E., Deputy Director of Operations Subject: Residential Solid Waste Collection Route Revisions Summary: The Solid Waste Division recently reviewed the residential collection routes. The Friday route has 1,755 customers, which is 400 more than any of the other collection routes. To improve service efficiencies, 340 customers along the Penn Hill and Harbor Crest area route will be switched from Friday and collected on Tuesdays beginning July 19th. A customer notice and transition period will be provided to assist affected customers. Recommendation: For information only, no action requested. Background /Analysis: Over the last 10 years, the west end of the City has grown and has significantly increasing the number of customers serviced on Fridays. The Friday route now has 400 more customers than any other collection day. The Friday route is also split up between the west and east ends of the City. Furthermore, traffic congestion, beginning on Fridays through Sunday and especially over summer months has increased along Hwy 101, which is also a large portion of the east end route. The Tuesday route is the lightest with 1,107 residential customers. Fortunately, an easy rebalancing of collection routes can be accomplished by changing the Penn Hill and Harbor Crest area route from Friday to Tuesday. Waste Connections is pleased to participate with the City in this revision. Their recycling and yard waste collection schedule mirrors the City routes, so they will also see a smoothing across their collection service days. The first day of revised service will be July 19, 2011. The only affected customers will be those in the Penn Hill and Harbor Crest areas. Staff will notify customers of the change in the service day beginning June 22. Staff will also place informational hangers on customer doors and mail a post card regarding the transition. Contact numbers for Waste Connections and the Solid Waste Division will be provided to all customers to help answer any questions. The City web site will also have information regarding the transition and an updated map of the collection areas. N. \UAC\Final \Waste Collection Route Change.docx Waste Collection Route Change June 14, 2011 Page 2 As a courtesy during the transition period, residents will not be charged if they request an extra pick -up (return collection service). The transition period will extend until August 2, 2011. After the two -week transition period, a $15 fee may be charged for return collection services. Residents on extended vacation or leave from the area may be considered, on a case by case basis, by the Solid Waste Supervisor for any further fee waivers. By making this service day change from Friday to Tuesdays for 430 customers, the community will benefit by more efficient service, less fuel consumption, successful service coordination with our contract handler for recycling and yard debris collection and reduced traffic congestion on Fridays. A summary of the current and revised collection routes is provided below, highlighting the changes to Tuesdays and Fridays in bold. CURRENT WASTE COLLECTION ROUTE SUMMARY ROUTES Current Mon Tues Wed Thurs Fri Sat RESIDENTIAL 1,023 1,107 1,390 1,339 1,755 Garbage Recycling 737 797 1,001 964 1,278 115 Yard Waste 327 354 445 428 636 115 REVISED WASTE COLLECTION ROUTE SUMMARY ROUTES Beginning July Mon Tues Wed Thurs Fri Sat 19th RESIDENTIAL 1,023 1,447 1,390 1,339 1,415 Garbage Recycling 737 1,041 1,001 964 1,019 115 Yard Waste 327 463 445 428 452 115 *Penn Hill Harbor Crest Friday service moved to Tuesday. Services the City contracts with Waste Connections pORTANGELES W A S H I N G T O N U. S. A Utility Advisory Committee Memo Date: June 14, 2011 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Bonneville Power Administration Residential Exchange Program Settlement Agreement Ratification Summary: A settlement agreement regarding the Bonneville Power Administration's Residential Exchange Program has been accepted by more than 75% of consumer owned utilities. Staff is seeking guidance on whether the City should join an effort to influence congress not to ratify the agreement. Recommendation: Provide guidance to staff. Background /Analysis: A settlement agreement regarding the Bonneville Power Administration's Residential Exchange Program has been accepted by more than 75% of consumer owned utilities. Staff received the attached message from Grays Harbor County Public Utility District seeking our interest in cosigning a letter to members of congress expressing concerns about the ratification of the agreement. Staff is seeking guidance on whether the City should join an effort to influence congress not to ratify the agreement. N \UAC\Final\BPA Revised Residential Exchange Program Settlement Agreement docx Larry Dunbar From: Liz Anderson [lnderson @ghpud org] Sent: Monday, June 06, 2011 10:27 AM To: Larry Dunbar Subject: RE: Letter to the Delegation Good morning Larry, It would be great to have the City sign! I believe the timing will be okay. We are waiting for another Board as well. I'd like to get the letter to the Delegation as soon as possible but think we can wait until the 14th. Thank you! Liz Anderson Original Message From: Larry Dunbar rmailto:LdunbarOcitvofpa.usl Sent: Friday, June 03, 2011 4:25 PM To: Liz Anderson Subject: RE: Letter to the Delegation Liz, the earliest that we can get direction from our policymakers is June 14th, is that OK? Original Message From: Liz Anderson Finailto:landersonOehaud.orel Sent: Wednesday, May 25, 2011 3:05 PM To: mmichelOcanbvutilitv.ore; vmolamphvOcanbyutility.ore; Mark Burlingame; Larry Dunbar; paul.roeersOkittitasoud.com; Mark Johnson; Pend Oreille BoB Geddes Subject: FW: Letter to the Delegation Importance: High Good afternoon, As you are aware, the deadline is approaching for consumer -owned utilities to decide whether or not to sign the proposed REP Settlement, part two. Grays Harbor PUD voted to reject the agreement and drafted the attached letter to members of the Northwest Delegation expressing our concerns about possible ratification should the 75% approval threshold be met. We are inviting representatives of other utilities who share our concerns to add their signatures to the letter in hopes that a unified message will resonate with lawmakers as they consider possible new legislation. You are receiving this request because your utility decided not to sign the last Settlement agreement. We are hoping to gather signatures by EOB June 3, 2011. If your utility would like to sign, please send me an email along with a copy of the electronic signature(s) to be added. I will be happy to format the signatures so they appear on one page. If you are aware of other utilities that may be interested in signing, please feel free to forward this information. If you are interested in signing but cannot provide a signature prior to June 3, just let me know and we will see what we can do to accommodate you. We would like to get as many signatures as possible but understand that the Memorial Day holiday may make it a bit challenging to get everyone's signature in by the end of next week. Thank you very much for your consideration. We hope to hear from you soon! 1 June 3, 2011 Dear Members of Congress: We are writing on behalf of the ratepayers we represent to urge you to not take any action to pass federal legislation that would authorize the Residential Exchange Program Settlement Agreement (REP Settlement) notwithstanding provisions of existing law. Congressional ratification of the REP Settlement would require members of Congress to commit ratepayers across the region to 17 years of REP payment obligations whether or not their locally elected utility boards agreed to the terms of the REP Settlement. We are not opposed to a settlement, but do not want to be committed by the actions of other utilities to something we do not find acceptable. We respect the rights of other public utility boards to waive their rights and commit their ratepayers to the terms of the REP Settlement. However, we strongly oppose any attempt by some public utility boards to eliminate the rate protections established under the Northwest Power Act for their fellow public utility boards that do not agree to the settlement terms. Section 8 of the proposed REP Settlement obligates signers to seek new federal legislation that would in essence substitute the provisions of the REP Settlement for the rate protections contained in the existing law. This new legislation would do so by immunizing the REP Settlement from judicial review. We are opposed to this because it would take away the rights of non signers to the rate protections contained in the Northwest Power Act rate protections that they seek to retain for their ratepayers. Further, it would take away the rights of those utilities who do not sign the REP Settlement to continue to pursue their legal claims. There is no need for legislative language to implement the terms of the REP Settlement. Utilities who wish to abide by the REP Settlement terms can do so without federal legislation. BPA and other settlement proponents have stated that the REP Settlement is fully functional in the absence of federal legislative action. As publicly owned utilities, the decision whether or not to waive our statutory rights is a matter that should be decided by local governing boards that are accountable to the ratepayers in our community. Whether or not to sign the REP Settlement that waives statutory rights and obligates ratepayers to 17 years of payments is a decision each public utility board needs to make for its own community. It is not a decision that should be made for us by elected officials of other utilities outside of our service area who do not live, work and pay power bills in our community. We would be happy to discuss with you the issues that the REP Settlement poses, and answer any question you have about our community's position on this important issue. We thank you for your attention to the power issues at stake in the Northwest and appreciate your leadership on behalf of Northwest ratepayers. PORTANGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: June 14, 2011 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Bonneville Power Administration Commercial Industrial Demand Response Grant Amendment No. 1 Summary: The City is participating in a Commercial and Industrial Demand Response Pilot Project with the financial support of the Bonneville Power Administration. Due to an addition to the scope of work, Amendment No.1 to the current Agreement is necessary. Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to sign Amendment No.1 to the agreement with the Bonneville Power Administration for the City's Commercial and Industrial Demand Response Pilot Project, and make minor modifications to the agreement, if necessary. Background /Analysis: Earlier this year, the Utility Advisory Committee supported and City Council approved the acceptance of an award from the Bonneville Power Administration (BPA) to participate in a Commercial and Industrial (C &I) Demand Response (DR) Pilot Project. The City submitted a proposal, and the BPA issued a formal notification of its intent to award an agreement to the City, with the BPA cost -share not to exceed $384,520. In late 2010, and early 2011, the City and its largest customer, Nippon Paper Industries USA Co., LTD (Nippon), engaged in two distinct streams of work associated with the execution of DR strategies that can benefit both the City and the BPA. One of those work streams, led by members of BPA's Cross Agency Demand Response Team, is exploring Nippon's ability to manipulate production- sensitive equipment to provide an energy load building resource (through the City) to assist BPA in its efforts to integrate wind power on the regional electrical grid. An initial proof -of- concept test indicated that Nippon can likely provide support to BPA to meet the wind integration challenge. However, the proof -of- concept has only identified what production equipment can respond, but has yet to determine if load building resources can be fully automated, which load building resources require supervision or "semi- automation," and which load building resources will require human intervention. In addition, there is a need to identify a transparent communication architecture that will provide all stakeholders with real -time visibility of the available resources, real -time feed -back of the load building responses, and an automated signal (end -to -end) to dispatch the resources. These additional steps are necessary to translate the proof of- concept into a commercially viable product(s). N \UAC \Flnal\BPA C &I DR Grant Amendment #1 doc BPA Commercial and Industrial Demand Response Grant Amendment No.1 June 14, 2011 Page 2 In March 2011, Nippon, the City, and the BPA, agreed to work together to integrate both efforts under the C &I DR Pilot Project in order to inform and facilitate the translation of the proof -of- concept efforts into commercially viable products by leveraging the technology infrastructure being used by that project. The goal of this project is to enable and test Nippon's ability to provide multiple capacity products to the City for potential sale to the BPA in the future, including: Product 1: Voluntary reduction of non production related electrical loads with a day -ahead notice; Product 2: Voluntary reduction of production related electrical loads with a 10- minute notice; Product 3: Voluntary reduction of production related electrical loads with a day -ahead notice; and Product 4: Voluntary increase of production- related electrical loads with a 10- minute notice; If the goals to enable and test the four products noted above are successful, the BPA anticipates that a commercial demonstration project would follow the proof of concept process. More specifically, the proof of concept pilot is now scheduled to run through September 30, 2012. A follow -on commercial demonstration may require an additional 12 -month period to conduct, which would be through the period ending September 30, 2013. Assuming both processes prove out and each party (i.e., Nippon, BPA, and the City) desire to proceed, a longer -term contract might then be struck beginning in BPA's FY14, which starts on October 1, 2013. While there may be avenues that could allow for acceleration of this process (or cause it to slow down), this appears to be the approximate timeline given what staff knows at this time. The financial impact to the City for the added proof of concept will be a slight increase in our in- kind contribution of staff support. All other direct cost increases, if any, will be funded by the BPA. Any project efforts beyond the current proof of concept will likely require an additional amendment to the Agreement. Staff requests that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the City Manager to sign Amendment No.1 to the Agreement with the Bonneville Power Administration for the City's Commercial and Industrial Demand Response Pilot Project, and make minor modifications to the agreement, if necessary. 170RTANGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: June 14, 2011 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Professional Services Agreement Amendment No. 3 for Commercial Industrial Demand Response Project Evaluation Summary: The City is currently engaged in a Commercial and Industrial Demand Response Pilot Project with the Bonneville Power Administration. An amendment to the professional services agreement with EES Consulting is proposed to provide essential support services. Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to sign Amendment No. 3 to the Professional Services Agreement with EES Consulting for an amount not to exceed $20,000, and to make minor modifications to the Agreement, if necessary. Background /Analysis: Demand response (DR) is a practice that cycles or shuts down customer equipment during peak electric utility demand events to reduce Bonneville Power Administration (BPA) wholesale demand charges. At its simplest, DR uses a control device to briefly curtail major appliances or space conditioning units. Peak demand is measured as the maximum rate of energy consumed during one hour each month. EES Consulting, Inc. (EESC) is currently assisting the City with its Residential DR Pilot Project by performing the economic evaluation of the cost effectiveness of DR and other technical project related support services. Additional services of EESC are also required to assist the City and the BPA with their Commercial and Industrial (C &I) DR Pilot Project. At the conclusion of its evaluation, EESC will provide the City and BPA with a final report describing the data input, the economic analysis and resulting cost effectiveness of the C &I DR strategies evaluated. This final report will provide the information required to determine if further deployment of C &I DR is warranted. The economic and technical support services are important to the BPA because they plan to use the final report as part of its decision making for future regional programs. The additional EESC contractual services will not exceed a total of $20,000, with a 100% cost share to be provided by the BPA. Staff requests that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the City Manager to sign Amendment No. 3 to the Professional Services Agreement with EES Consulting for an amount not to exceed $20,000, and to make minor modifications to the Consulting Services Agreement, if necessary. N: \UAC\Final\Professional Services Agreement Amendment #3 for C &I DR Project Evaluation.doc Find out the latest about the City of Port Angeles' New Electric and Water Meters Get up -to -date information, ask questions and join the discussion about the new Advanced Metering Infrastructure (AMI) system The City of Port Angeles has started installing the AMI system and replacing water and electric meters, which will give customers more information and control over their electricity use —and help the City and customers keep costs down. At this Town Hall meeting we'll discuss The upcoming Bonneville Power Administra- tion's (BPA) rate increases and changes to the way they charge for power How the new meters work and the advantages over our old system And, introduce the Voluntary Peak Power Project where customer volunteers can try additional energy- saving technology Town Hall Meetings Thursday June 30th at 12:15 p.m. Thursday June 30th at 6:00 p.m. City Hall Council Chambers 321 East 5th Street For more information about the AMI system: Go to www.cityofpa.us /newmeters.htm, Email us at newmeters @cityofpa.us or C a l l 360 417 -4595. Voluntary Peak Power Project info will be provided in an upcoming utility bill and is available now at www.cityofpa.us /drpower.htm. AM A System VoDaMary Pock Power 0 proiect Overvliew A New Way to Reduce Your EQecthhdty Use To help our residents and small businesses gain more control over their electricity bills, the City of Port Angeles is starting the "Voluntary Peak Power Project" —for around 600 volunteers Over a one -year period the City will test a system that occasionally shuts off water heaters or turns down heating units for a short time during peak demand periods when electricity is most expensive The goal is to reduce power use for participants, thereby lowering their bills, without effort and with little, if any, discomfort The project will help the City measure whether these small reductions in power usage, spread through many homes and small businesses, are significant enough to lower Port Angeles' wholesale power costs, positively impacting all customers It's a win -win customers can save money, the City avoids having to pay the highest costs, and the region reaps the environmental benefits of conservation Join your neighbors —and volunteers in similar projects taking place across the region —in this very exciting new project If the project is successful, the service will be made available to all our customers on a voluntary and phased basis Every customer will get to decide for themselves if they want the Voluntary Peak Power equipment —or not If you volunteer, here's how it works: 1 We'll install a free control unit on your water heater, a "smart" thermostat or a thermal storage unit in qualifying homes and small businesses These are yours to keep 2 Occasionally, during times of high electricity demand, we'll send a wireless message to your device that turns off your water heater or adjusts your thermostat by a couple of degrees for a period lasting a few minutes up to 3 hours You should not notice any significant change in your hot water or space temperature as a result of these temporary adjustments, and you can override thermostat changes if needed 3 Your feedback will be gathered through up to 4 online surveys so we can understand how participants view the project and if you are impacted 4 We'll measure how these temporary power reductions, spread through all participants' homes and businesses, affect overall power demand Benefits of the Voluntary Peak Power Project: Participants will receive up to $160 for being part of the one -year project Devices installed in your home are yours to keep (up to a $1,000 value) You'll be the first in our community to experience this new technology while helping the City of Port Angeles manage energy use more efficiently Interested in volunteering or finding out more? See the volunteer qualifications and program details on the back of this sheet Interested customers can email drpower@cityofpa.us or call 360- 417 -4595. All questions are welcome cP' P,K yowaL What u. peak demand? The "peak demand period" is the time during the day when consumers' demand for electricity is at its highest (currently 6 a.m. to 2 p.m., except for Sundays) The Bonneville Power Administration (BPA) is changing its rate structure, effective October, 2011, so that electricity costs more during peak demand periods Starting in early 2012, the utility bills of City of Port Angeles customers will be based on the BPA's new rates Why peak demand umportaMM? If we don't conserve during peak times the City will have to pay higher costs for electricity, which in turn means higher costs for our customers PORTg Do you qualify? This voluntary project is available for up to 600 residential and small business customers who meet the fcllowing criteria Own a single family home or small commercial building To test the water heater control unit muss have a completely electric water heater that is less than 0 years old To test the "smart" thermostat must have a completely electric central heating system that is less than 10 years old Are able to complete online surveys using an Internet connection Project timeline and details We'II begin accepting volunteers for the project in May, 2011 and will continue until we have placed all the Voluntary Peak Power equipment with qualified participants The majority of participants will get a devi :e that shuts off their water heater briefly, 90 participants will get a "smart" thermostat that turns down the central heating system, and 10 participants will test a thermal enerc y storage heater We will schedule the installation of equipment with participants on an individual basis, after your new AMI electric meter has been installed The project testing will begin in January, 2012, after all participants' devices have been installed, and will continue for one year Participants will be asked to complete up to 4 online surveys during the project Participants will receive up to $120 in utility bill credits ($10 for each month of program participator') At the end of the project, participants will receive another payment of $10 for each survey completed during the cc urse of the project (up to $40) After the project concludes, the City will conduct a thorough technical and economic evaluation of these technologies to verify if they offer significant value to the utility and its customers If the evaluation concludes that the projec is a success, the service will be made available to all of our customers on a voluntary and phased basis Participants in this project may continue to use the devices installed for his project if they wish to enroll in future programs offered by the City Any future customer incentives are yet to be determined The Voluntary Peak Power Project is made possible by our new AMI system One of the benefits of installing the AMI system throughout the City is the ability to take advantage of new energy management opportunities, such as those we're exploring in this project AMI enables the Voluntary Peak Power equipr tent (water heater controls and smart thermostats) to send and receive data Interested parties can email drpower@cityoipa.us or call 360 417 4595 to request an application All questions are welcome AI [1 Synem Flo un�trry Peak Power project Frequently Asked Questions What is peak demand, and how does it affect my bill? The "peak demand period" is the time during the day when consumers' demand for electricity is at its highest (currently 6 a m. to 2 p m except for Sundays) The Bonneville Power Administration (BPA) is changing its rate struc- ture, effective October, 2011, so that electricity costs more during peak demand periods As a result of the BPA's rate increases, customers may see an increase in their bill starting in early 2012 Why is limiting peak demand important? With the Bonneville Power Administration's (BPA's) new rate structure electricity prices will change according to how much demand there is If we don't conserve during peak times the City will have to pay higher costs, which will then be reflected in higher costs for our customers What is the Voluntary Peak Power Project? The Voluntary Peak Power Project is an effort that will help our residents and small businesses gain more control over their electricity bills and reduce the demand for power during high priced peak demand periods With the help of up to 600 vol- unteers, over a one -year period the City will test a system that occasionally shuts off water heaters or turns down heating units for a short time during peak demand periods when electricity is most expensive The goal is to reduce power use for participants, thereby lowering their electric bills, without a lot of effort or discomfort What do you hope to learn from the project? The project will help the City measure whether small reductions in power usage, spread through many homes and small businesses, are significant enough to lower Port Angeles' wholesale power costs, which lowers costs for all customers The Citv's aoals are to: Reduce demand for power during high priced peak demand periods Lower the wholesale power supply costs the City pays the Bonneville Power Administration (BPA) for electricity Minimize customer effort and any discomfort while reducing individual power use What are the City's plans for offering Voluntary Peak Power equipment to all customers? If the project is successful, the service will be made available to all of our customers on a voluntary and phased basis Every customer will then get to decide for themselves if they want to have the Voluntary Peak Power equipment installed —or not If I volunteer, will my heat and hot water be available when I need it? Yes, you should not notice any significant change in your hot water or space temperature as a result of these temporary adjustments, and you have the control to override thermostat changes if needed Do I have to participate? No, participation in the Peak Power Project is entirely voluntary If you do join, you may opt out at any time and you may override the changes to your "smart" thermostat if needed How does the project work? First we'll install a free water heater control and /or a "smart" thermostat in the homes and small businesses of qualifying volunteers. Occasionally, during times of high electricity demand, we'll send a wireless message to each volunteer's system that turns off the water heater or adjusts the thermostat by a couple of degrees for a period lasting a few minutes up to 3 hours. Participants should not notice any significant change in hot water or space temperature as a result of these temporary adjustments, and they will have the control to override thermostat changes if needed. Participant feedback will be gathered through several online surveys so we can understand how individuals are impacted. f PORT How does the Voluntary Peak Power Project equipment work? FOR PROJECT VOLUNTEERS ONLY, the City will send occasional wireless signals to each participant's electric meter which will in turn signal their Peak Power equipment to make an adjustment The meters of customers who do riot volunteer for the proiect will not receive these signals For customers who volunteer to test the "smart" thermostat, the equipment includes a Home Area Network (HAN) display that delivers information about the participant's overall electricity usage from their outside meter What do project volunteers receive for taking part? Participants will receive up to $120 in utility bill credits ($10 for each month of program participa ion) At the end of the project, participants will receive another $10 for each survey completed during the project (up to $40) Devices installed in homes and small businesses are theirs to keep (up to a $1,000 value) Be the first in our community to try this lew technology while helping the City manage energy LP e more efficiently Are there any qualifications to participate:' This voluntary project is available for up to 600 residential and small business customers who meet the following criteria Own a single family home or small commercial building To test the water heater control unit mi. st have a completely electric water heater that is less tha 10 years old To test the "smart" thermostat must have a completely electric central heating system that is les! than 10 years old Are able to complete online surveys using an Internet connection Can renters or tenants participate in the project? Yes, we welcome renters' participation if they ren a single- family home or small commercial building and the building owner enrolls them in the project on their behalf What other cities are participating in the Peak Power Project? The BPA is helping to sponsor six diffilent Peak Power projects throughout the region, including efforts on Orcas Island and in Shelton, WA, as well as in Eugene and Redmond, OR Does this have anything to do with the new AMI meters? is the City paying for two different ;ystems? One of the benefits of installing the AMI system throughout the City is the ability to take advantage of energy management opportunities, such as these The Voluntary Peak Power equip 'nent (water heater controls and "smart" thermostats) se Ids and receives data using the new AMI system infrastructure, we ale not installing a new system for this project Is my personal energy use information confidential? Yes, your personal energy use information will remain confidential The wireless signals generated for this project are t ansmitted over secure networks to and from the City A; is true now, your utility usage information will be protected and secure The City must also comply with federal laws regarding the privacy, protection and disclosure of personal information. I want to volunteer for the Voluntary Peak Power Project. Whom do I contact? If you're interest( d in participating, or just want to find out more, email drpower @cityofpa.us or caII 360 417 4595 All questions are welcome Didn't see an answer you were looking for? Please contact drpower @cityofpa.us or call 360- 417 -4595. J W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: June 14, 2011 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Bonneville Environmental Foundation Solar4R Schools Project Update Summary: The Bonneville Environmental Foundation, the Feiro Marine Life Center, and the City have been implementing a Solar 4R Schools renewable energy demonstration and education project at the Feiro Marine Life Center. Staff will provide an update on the project's status. Recommendation: For information only, no action required. Background /Analysis: In July 2009, the Feiro Marine Life Center (FMLC) requested support from the City of Port Angeles for a renewable energy education program. The City agreed to provide up to $18,739 from Bonneville Power Administration Conservation Rate Credit for the renewable energy education program. The FMLC also applied to the Bonneville Environmental Foundation (BEF) under the Solar 4R Schools program for additional funding support for the renewable energy education program. BEF approved the FMLC application and entered into a Funding Agreement with the City to provide teacher training, science kits, renewable energy guides, and the installation of a 2kW photovoltaic (PV) system and monitoring equipment at the FMLC and to cover all project costs in excess of $18,739. BEF provided educational materials, curriculum and support during the 2010 and 2011 school year that allowed FMLC to introduce renewable energy and its concepts to more than 300 students. BEF has also conducted a site survey at the FMLC and the surrounding area on the City pier for an appropriate location of the demonstration PV system. However, a suitable location for the PV system was not identified and the PV system will not be installed. Alternatively, BEF has proposes to install PV system performance and weather monitoring at the existing PV system at the Serenity House of Clallam County's Maloney Heights apartment complex in Port Angeles to be incorporated into the Solar 4R Schools program. BEF is preparing a new Funding Agreement to include the Maloney Heights project component. N \UAC\Final\Bonneville Environmental Foundation Solar4R Schools Project Update doc j ORT W A S H I N G T O N U.S.A. Utility Advisory Committee Memo June 14, 2011 Date: To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Northwest Public Power Association Tier 2 Power Supply Workshop Summary: On June 7 -8, 2011, City Council and Utility Advisory Committee members attended the Northwest Public Power Association Tier 2 Power Supply Workshop. The purpose of the workshop was to consider the City's Tier 2 power supply and key performance objectives for the Electric Utility. Recommendation: For information only, no action requested. Background /Analysis: On June 7 -8, 2011, City Council and Utility Advisory Committee members attended the Northwest Public Power Association Tier 2 Power Supply Workshop. The purpose of the workshop was to consider the City's Tier 2 power supply (for October 2014 September 2019) and key performance objectives for the Electric Utility (through June 2014). On the first day of the workshop there were several presentations made by City staff and energy professionals, and on the second day ofthe'workshop City Council and Utility Advisory Committee members reviewed and refined a Tier 2 power supply strategy and key performance objectives. Based on the direction provided at the workshop, staff will request a recommendation from the Utility Advisory Committee to City Council before the September 30, 2011 deadline to select the Bonneville -Power Administration short-term Tier 2 rate alternative. With the imminent BPA wholesale power rate increase beginning this October, staff will also be returning to the Utility Advisory Committee and City Council in August to evaluate options to reduce retail rate revenue risk such as applying the increase only to the customer charge versus consumption charges, and ways to mitigate utility discount customer impacts. A copy of all presentations is now available on the City's ftp website under the "NWPPA Workshop" folder from htto: /olvoen.com /cona/. A copy of the Tier 2 power supply strategy and key performance objectives which were refined during the workshop are attached for more information. Please contact me if you were not able to attend or if you have any questions. Attachment: Electric Utility Tier 2 Power Supply Strategy Electric Utility Key Performance Objectives N \UAC \Flnal\NWPPA Tier 2 Power Supply Workshop docx NGE LES Electric Utility Tier 2 Power Supply Strategy Policymaker Consensus June 8, 2011 1. Continue reliance on BPA power supply for future Tier 2 needs (not landfill gas, cogeneration, market purchases, etc.). 2. Maintain selection of BPA short -term rate alternative and notify BPA by September 30, 2011 (for October 2014 September 2019 deliveries). 3. Consider adoption of an ordinance for incremental Toads in 2011 (use a name other than "new large single loads" to avoid confusion with BPA terminology). 4. Annually review energy sales growth compared to BPA and City funded conservation program activities, performance targets, and funding sources to ensure avoidance of Tier 2 power supply needs. Complete BPA required Conservation Plan in 2012. 5. Complete demand response installations in 2011, evaluate the cost and benefits of demand response in 2012, and if appropriate consider expanding demand response efforts in 2013. 6. Revisit Electric Utility strategic planning in June of 2014 and the City's Tier 2 power supply in June of 2016 (for October 2019 September 2024 Power Supply) Electric Utility Key Performance Objectives Policymaker Consensus June 8, 2011 1. Conservation a. Maintain high staff performance to acquire energy conservation through City electric customers. b. Prepare for a 2 /3 increase in BPA energy conservation funding beginning October of 2011 due to the Northwest Power and Conservation Council's 6 Power Plan, which is anticipated to continue for at least the next five years. c. Continue to identify and implement energy conservation projects at municipal facilities, and participate in the resource conservation- manager program through 2011. d. Continue to seek additional BPA funding to implement energy-'conservation activities within the City. 2. Advanced Metering Infrastructure (AMI) System a. Consider additional demand response efforts in 2013. b. Integrate the AMI System into the Conservation Voltage Optimization and SCADA Systems in 2012. c. Consider annual'Meter inspection to review meter condition, check for tampering, and ensure clearances are maintained, beginning 2012. d. Utilize the outage management system beginning 2012. e. Consider redundant fiber optic connections to AMI System collectors in 2012 to ensure high network reliability. f. Correlate consumption with meteorological data to predict next day peak hour in 2012, which will be used for,demand response scheduling. g. Consider.future distribution automation and smart grid efforts as they become available (timing unknown). h. Begin optimization review of electrical transformer right sizing, commercial water meter right sizing, arid consider water system main leak detection via the AMI System in 2013. 3. Telecommunications a. Explore need for a Telecommunications Utility ordinance in 2011 for the future City owned wireless mobile data system. b. Prepare a Request for Qualifications (RFQ) for consultant services in 2013 for the Cable Television Franchise formal renewal proceeding, which includes a community survey and a future needs and interests report. c. Explore ways to leverage telecommunications capability. 4. Electric Utility Rates Finances a. Anticipate wholesale power cost increases in the Fall of 2011 (that shift from variable cost to high fixed and low variable cost) that necessitate a retail rate increase. Return to City Council to evaluate options for retail rate increases that reduce retail rate revenue risk such as applying the increase only to the customer charge versus consumption charges, and ways to mitigate utility discount customer impacts prior to September 2011. b. Consider retail rates in the Fall of 2011 that include rebuilding unrestricted cash balance. c. Consider continuation of the communications plan incorporating AMI System benefits in 2012 (e.g., time of use rates, customer portal,high usage alerts, water leak alerts, etc.). Timely communicate final 2011 BPA wholesale power rate increase to the public. d. Consider conducting a separate customer survey on green retail rate alternative in 2013. e. Evaluate the effect on weekday (Monday through Friday) retail rates if Saturdays are made into either a low or medium rate in 2013. 5. Future Annexations a. Engage the Clallam County Public Utility District in a discussion to consider electrical customer transfer by wheeling arrangement versus acquisition of assets in 2012. 6. Infrastructure Plan... a. Maintain renewals and replacements at or above depreciation 2011 forward. b. Complete cost /benefit evaluation of pole `replacement to determine future use of City crews or contractors in 7. Landfill Flare Facility a. Conduct to,assess gas quality and quantity in 2011. b. Proceed with a request for proposal (RFP) seeking development of a beneficial use in 2012. 8. Electrification of the Transportation Sector a. Seek grant opportunities for electric vehicle infrastructure and charging station(s) in 2011 forward. 9. Public Power a. Maintain a positive relationship with BPA, and memberships in trade associations (i.e., Public Power Council, Western Public Agencies Group, and Northwest Public Power Association) that preserve public power benefits. 1 4 s 7, 153 63 s- i7 4,714 f PP