HomeMy WebLinkAboutAgenda Packet 07/10/2007
Utility Advisory Committee
Public Works conference Room
Port Angeles, W A 98362
July 10, 2007
3:00 P.M.
I. Call To Order
II. Roll Call
m. Approval Of Minutes For June 12,2007
IV. Late Items
V. Discussion Items
A. Leak Detection Results -2007
B. CPI Right-Of-Way License Renewal
C. Renewable Energy Generation Project Grant Applications
D. Renewable Energy System Incentives
E. EnergySmart Grocer Program Agreement
F. Stormwater Utility Rates
G. Transportation Benefit Districts
VI. Next Meeting Date: August 14,2007
VII. Adjomment
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UTILITY ADVISORY COMMITTEE
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Utility Advisory Committee
Public Works Conference Room
Port Angeles, W A 98362
June 12,2007
3:00 P.M.
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L Call To Order
Chairman Reed called the meeting to order at 3:00 p.m.
IL Roll Call
Members Present:
Chairman Reed, Grant Munro, Betsy Wharton, Orville Campbell,
Larry Williams
Members Absent:
Karen Rogers
Staff Present:
Mark Madsen, Bill Bloor, Scott McLain, Larry Dunbar, Steve
Sperr, Bob Kajfasz
Others Present:
Don Cramer - Climate Crisis Coalition
Brian Gawley (3:11) - Daily News
IlL Approval of Minutes:
Chairman Reed asked ifthere were any corrections to the minutes of May 8,2007.
Councilmember Wharton moved to approve the minutes. Orville Campbell seconded the
motion, which carried unanimously with Chairman Reed abstaining.
Chairman Reed asked ifthere were any corrections to the minutes of May 15, 2007. Councilman
Munro moved to approve the minutes. Councilman Williams seconded the motion, which
carried unanimously with Chairman Reed and Councilmember Wharton abstaining.
IV.
Late Items:
None
V. Discussion Items:
A. Conservation Rate Credit Program Options
Larry Dunbar, Power Resources Manager, distributed a handout, reviewed the information
contained in the packet, responded to questions, and provided clarification. Staff provided
twelve items for the committee members to consider.
Staff was directed to pursue those options which would utilize the most funding. An
ordinance amendment, a Portland Energy Conservation agreement, and an Expression of
UTILITY ADVISORY COMMITTEE
June 12,2007
Interest list will be available at a future meeting. Information only. No action taken.
B. Update On NERC/WECC Entity Registration
Scott McLain, Deputy Director for Power Systems, advised that staff had been performing a
compliance self-evaluation, and developing mitigation plans for those standards for which the
City is not currently compliant. Staff will continue to develop the procedures, processes, and
information required to become fully compliant within the schedules of the mitigation plans.
There was a brief discussion.
Information only. No action taken.
VI. Next Meeting Date:
July 10, 2007
VIL A djornmen t:
The meeting was adjourned at 4:21 p.m.
Chairman Reed
Cate Rinehart, Admin Spec II
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~ORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
July 10, 2007
Utility Advisory Committee
Ernie Klimek, Superintendent, W ater/W astewater Collection Division
Leak Detection Results - 2007
Summary: The City has used leak detection companies for the past seventeen years to detect
leaks in the water distribution system. Detecting and repairing these leaks results in the utility
becoming more efficient in the areas of water conservation and is one process in meeting the new
Water Use Efficiency rule to be implemented in 2008. This year's leak detection survey was
performed from March 26th through March 30th. The total estimated water loss that was detected
and repaired was 61,560 gallons per day.
Recommendation: Information Only.
Background/Analysis: For the last seventeen years the Water/Wastewater Collection Division
has contracted with leak detection companies to perform an annual survey of one- fifth of the water
distribution system. This year the Utilities Services Group ofHD Supply Waterworks conducted
the survey. Extremely sensitive sound amplification instruments and computer based correlations
are used for pinpointing these leak locations. City crews spend about ten days preparing for the
contractor's equipment by locating and uncovering the necessary contact points in the system.
The general area covered was Northeast Port Angeles - East to West from Ennis Street to Lincoln
Street and North to South from Lauridsen Boulevard to Water Street. This year's survey ofthe
water distribution system included approximately 15 miles and all intersecting lines. The leak
detection agency spent approximately 40 hours on the survey and a total of 14 leaks were found
within our water distribution system. The water loss due to leakage was estimated to be
approximately 61,560 gallons per day, which would equal about 22,469,400 gallons per year.
Attachment: Summary of Leak Detection Report
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Leak Detection Results - 2007
July 10,2007 UAC Meeting
Page 2 of2
Summary of Survey and Pinpointing Report
Client: City of Port Angeles, W A
Date: 04/03/2007
Period Covered: March 26, 2007 to March 30, 2007
General Area Covered: Northeast
TOTAL ANNUAL WATER LOSS
(rllnllllla: icak.GPM A mirlIIlow- ~ ~da)'. da~yar)
22,469,400.0 GALLONS
SURVEY DATA
Distance Surveyed: 80]45:000 reet, ]5.180 miles
Time Spent Surveying: 22.83 hours
Points Surveyed Access Points Requiring further investigation
Hydrants 60 (points Utat 1m n::tumcd to for pinpoiuling or diminution)
Valves 301 Leak sounds on: Valves s
Services 347 Hydrants 1
Other 3 Services 8
Total 711 Other 0
Total 14
PINPOINTING DATA
LEAK TYPI NUMBER TIME SPENT TOTAL, TOTAL. lARCEST. LARGEST. SMALlEST, SMALLEST. AVERAGE
ori.EAKS PINPOlNT~ GAlWNS GAllONS PER GAUDNS GAlLONS PER GALLONS GALLONS PER lEAK SIZE
ING (hows) PER MrN DAV PER MlN DAV PER MtN OAV OPM
MAIN LINE 3 2.67 30.0 43200.0 20.0 28800.0 5.00 7200,00 10.00
VALVE I 0.25 0.2 360.0 0.2 360.0 0,25 360.00 0,25
HYDRANT 1 0.50 0.5 720.0 0.5 720.0 0.50 720.00 0.50
METER
CURB STOP
SERVICE LINE 3 0.75 7.0 10080.0 5,0 7200.0 1.00 1440,00 2.33
SERVICE CONi' I 0.83 5.0 7200.0 5,0 7200.0 5.00 7200.00 5.00
OTHER
L1NDEFlNED I 0.33
TOTALS 10 5.33 41.75 61560 n.a. n.a n.a n.a 4.2110
I Sites Investigated for Pinpointing I 14 I
L Other Time Spent on Project (includes pinpointing false leak sounds) I 12.00 hrs. J
Date:
To:
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~ORTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
July 10, 2007
Utility Advisory Committee
Larry Dunbar, Power Resources Manager
CPI Telecommunications Right-Of-Way License Agreement Renewal
Summary: The City's license to Capacity Provisioning, Inc. for its telecommunications system
within the City expires September 9,2007 and needs to be renewed.
Recommendation: Forward a favorable recommendation to City Council to authorize the
Public Works and Utilities Director to renew the Telecommunications Right-Of-Way License
with Capacity Provisioning, Inc. for a five-year term.
Background/Analysis: The City's license to Capacity Provisioning, Inc. (CPI) to construct,
operate, and maintain a telecommunications system within the City became effective September
24,2001 and was amended on September 9,2002. The initial term ofthe license was five-years
and expires September 9,2007.
In accordance with the City's telecommunications ordinance, CPI requested the license be renewed
and provided a report on the number of customers served and network interconnections, and paid a
$500 deposit to offset the City's administrative cost to consider the renewal.
Due to the likelihood of technological changes and the expiration ofthe Institutional Network
Services Agreement on September 6,2009 (which could be extended annually to September 6,
2012) staff does not recommend the term of the renewed license to exceed five-years.
There are several proposed housekeeping changes that can be reviewed in the attached
strikeout/underline version of the Right-Of-Way License Renewal No.1.
The City Attorney reviewed the proposed renewal.
Attachment: Right-Of-Way License Renewal No.1.
N:\UAC\Original\CPI ROW License Renewal.doc
RIGHT-OF-WAY LICENSE AMENDMENT RENEWAL NO.1
This Agreement is entered into this day of , ~2007
between the City of Port Angeles (hereinafter "City") granting municipal consent to
Capacity Provisioning, Inc. (hereinafter "Grantee"), in the form of a right-of-way license
for the purpose of constructing, maintaining, operating and using a telecommunications
facility or a telecommunications system in public streets, alleys and rights-of-way in the
City of Port Angeles to provide private telecommunications servIces and
telecommunications services to public institutions and business end users within the City;
providing for general and administrative provisions; providing fees and compensation for
the privileges conferred under this right-of-way license; providing conditions; providing
for enforcement of right-of-way license provisions; and providing for written acceptance
of the terms of this right-of-way license.
WHEREAS, the City of Port Angeles, pursuant to federal law, state statutes, and
local ordinances, is authorized to consent to one or more non-exclusive right-of-way
licenses to construct, operate, and maintain a telecommunications system in the public
rights-of-way within the municipal boundaries of the City as designated in Exhibit "A"
("City Area"); and
WHEREAS, the Grantee has entered into an Institutional Network Service
Agreement with the City, which is attached hereto as Exhibit "B", and has requested
municipal consent from the City to construct, operate and maintain a telecommunications
system; and
WHEREAS, the telecommunications system includes facilities comprised of
conduit, lines, fiber, active or passive dark fiber, utility poles, and other
telecommunications facilities located in the right-of-way that are used to provide private
telecommunications services and telecommunications services for hire, sale or resale to
public institutions and business end users within the City; and
WHEREAS, the Grantee has requested municipal consent from the City to
construct, purchase, acquire, develop, finance, lease, license, handle, provide, add to, or
contract for additional facilities to reach and interconnect with the institutional network
nodes as provided by the Cable Communications Franchise No. 3116 and the Fiber Optic
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Wide Area Network Use .^..greement that the City has entered into ','lith Northlafld Cable
Television, me. (Northlafld);
IN CONSIDERATION of the above representations and the agreements set forth
herein, the parties hereby agree as follows:
Section 1 - Definitions. The definitions of all words not defined herein shall be as
used in the Revised Code of Washington and the following Chapters of the Port Angeles
Municipal Code: Chapter 11.14 Telecommunications, Chapter 3.70 Revenues and Fees,
Chapter 5.04 Licensing, Chapter 5.80 Taxation, Chapter 11.08 Construction or
Excavation Work Within Rights-of-Way, Chapter 11.12 Right -of-Way Use, Chapter
13.14 Pole Attachments, and Chapter 17.52 Wireless Telecommunications Towers and
Facilities, which are incorporated herein for all purposes.
Section 2 - Scope Of City Consent.
The City hereby consents to authorize the Grantee, a renewed term for a period of
five (5) years from and after the effective date of this Agreement (the "Term"), to
exercise the non-exclusive right to construct, purchase, acquire, develop, finance, lease,
license, handle, provide, add to, contract for additional facilities, use, operate, own, and
maintain a telecommunication system in, on, under and over the public rights-of-way, to
reach and interconnect with institutional network nodes as provided by the Cable
Communications Franchise Ordinance No. 3116; the Fiber Optic Wide .\rea NetY10rk
Use Agreement, and the I-Net Services Agreement, subject to applicable law and
specifically Chapter 11.14 P AMC, hereafter referred to as the Telecommunications
Ordinance. The Grantee may obtain up to one (1) automatiC) extension of the term of this
Agreement for an additional five (5) year period, not to exceed a maximum term of ten
(10) years, if the Grantee is in substantial compliance with the material terms and
conditions of this f\greernent as affirmatively determined by the Public \If orks and
Utilities Director's \vritten report to the City Council.
Section 3 - Authority Not Exclusive.
The consent conferred in Section 2 is not exclusive, pursuant to the
Telecommunications Ordinance. The Grantee shall respect the rights and property of the
City and other authorized users of the public rights-of-way.
Section 4 - Fees And Compensation.
From and after the effective date of this Agreement and throughout the Term of
this Agreement, the Grantee shall pay the City all taxes, fees and compensation pursuant
to the Telecommunications Ordinance and the Institutional Network Services Agreement.
From and after the effective date of this Agreement and throughout the Term of this
Agreement, Grantee's telecommunications services gross revenues shall be subject to a
public utility tax in accordance with Chapter 5.80, Licensing and Taxation, P AMC.
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Section 5 - Occupation License Required.
From and after the effective date of this Agreement and throughout the Term of
this Agreement, the Grantee shall obtain an occupation license from the City pursuant to
Chapter 5.80, Licensing and Taxation, P AMC.
Section 6 - Construction and Operation ofthe Telecommunication System.
In constructing and operating its telecommunication system, the Grantee shall
comply with all applicable requirements of the following Chapters of the Port Angeles
Municipal Code: Chapter 11.14 Telecommunications, Chapter 3.70 Revenues and Fees,
Chapter 5.04 Licensing, Chapter 5.80 Taxation, Chapter 11.08 Construction or
Excavation Work Within Rights-of-Way, Chapter 11.12 Right-of-Way Use, Chapter
13.14 Pole Attachments, and Chapter 17.52 Wireless Telecommunication Towers and
Facilities. In addition, the Grantee shall comply with the following:
6.1 Permits Required. Grantee shall not construct, reconstruct, or relocate the
telecommunication system (or parts thereof) within the public rights-of-way or on
City property unless authority has been obtained in accordance with the
Telecommunications Ordinance or other applicable City approvals. Nothing
within this right-of-way license shall be construed to authorize the Grantee or a
lessee to make interconnections within the City or connections with end users
within the City not authorized by this Agreement. Nothing within this right-of-
way license shall be construed to authorize the Grantee or a lessee to provide
telecommunications services and/or cable television services for hire, sale or
resale to the general public within the City until Grantee or lessee has obtained a
master permit and/or a cable television franchise from the City and has registered
and received all requisite licenses, certificates and authorizations from the Federal
Communications Commission, the Washington Utilities and Transportation
Commission, or any other federal or state agency having jurisdiction.
6.2 Plan Review. Grantee shall not commence construction unless and until all
maps and other documents are provided to the City, in accordance with Chapter
11.14 Telecommunications, Chapter 5.04 Licensing, Chapter 5.80 Taxation,
Chapter 11.08 Construction or Excavation Work Within Rights-of-Way, Chapter
11.12 Right-of-Way Use, and Chapter 13.14 Pole Attachments.
6.3 Scheduling. The Grantee shall provide the City advance notice before
beginning construction or installation, pursuant to the Telecommunications
Ordinance.
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6.4 Commencement of Construction. Construction of the facilities
contemplated by the September 9. 2002tffis right-of-way license was completed.
Any reconstruction. additional construction. and maintenance work shall comply
with this right-of-way license. shall eommenoe liO later than 01'1e year after the
effeotiYe date of this right of way lioense; proYided that S'\;lch time limit shall1'1ot
apply to delays caused by acts of God, strikes, eminent domain litigation, or other
occurrenoes over ',vhiaR the Grantee has no aontml.
6.5 Construction Standards. Grantee shall comply with construction standards
in accordance with Section 11.14.040 of the Telecommunications Ordinance. In
addition, any employee, contractor, vendor or agent assigned to work on the
installation, maintenance, or repair of system equipment must be pmperly
licensed under the laws of the State of Washington and the City of Port Angeles.
6.6 Inspections. The Grantee shall permit the City to conduct inspections of
construction or installation to ensure compliance with the Telecommunications
Ordinance.
6.7 Restoration of Property. At its own cost and expense, Grantee shall within
ten (10) calendar days restore property on public or private lands disturbed by
Grantee's activities, pursuant to the Telecommunications Ordinance.
6.8 Removal or Relocation of Facilities. The Grantee shall remove or relocate
facilities as required by the Telecommunications Ordinance.
6.9 Installations on City Pmperty and Private Property. No cable line, wire,
amplifier, converter, utility pole. or other pieee of equipmenttelecommunications
facilities owned by the Grantee shall be installed by the Grantee on any City
property or private property without first securing the written permission of the
City or a grant of authority as required under this Agreement or written
permission of the property owner and/or lawful occupant of any property
involved.
6.10 City Use of Grantee's Facilities. In consideration of the rights and
privileges hereby granted, the City shall have, and Grantee hereby grants to the
City, the right and privilege to suspend and maintain wires and necessary control
boxes on poles placed by the Grantee in the streets, and other places aforesaid, or
if such wires are placed underground, to place and maintain in the pipes or
conduits of the Grantee, if space therein is available, wires which the City may
require for telecommunications, electrical, water, wastewater, fire, police, or
emergency services. All such wires must be placed on the poles or in conduits so
as not to interfere with communications service and shall not carry currents or
voltage dangemus to Grantee's plant or Grantee's users, and all installations,
maintenance and repairs shall be subject to the rules, regulations and supervision
of the Grantee. The City agrees in consideration of establishing this service and
furnishing such facilities, to hold Grantee harmless from all claims and/or liability
Page 4 of ~9
for damages, which may arise out of operating these wires and control boxes.
Further, where such facilities have been installed or maintained by the City and
not solely by Grantee, the City agrees to hold the Grantee harmless from all
liability for any claims or damages that may arise out of the negligent installation,
maintenance, use or operation by the City of these facilities.
6.11 Books and Records. The Grantee shall keep books and records as required
by the Telecommunications Ordinance and in accordance with generally accepted
accounting principles.
6.12 Underground Utilities. The Grantee shall subscribe to the One Call
Locator Service and comply with all regulations of Chapter 19.122 RCW for its
telecommunications system within the City.
6.13 Institutional Network Services Agreement. As a condition of maintaining
municipal consent under this right-of-way license, the Grantee shall comply with
the Cable Communications Franchise No. 3116, the Fiber Optie Wide ..\rea
Network Use ..^..greement, and the Institutional Network Services Agreement. The
City shall have the right to terminate this right-of-way license if Grantee fails to
comply with the Institutional Network Services Agreement.
Section 7 - Tree Trimming.
Upon ten (10) days' written notice provided to the Director, except in an
emergency of imminent danger to persons or property, the Grantee may trim trees or
other vegetation owned by the City or encroaching upon the public right-of-way to
prevent branches or leaves from touching or otherwise interfering with its wires. All
trimming or pruning within environmentally sensitive areas shall be subject to applicable
requirements of Chapter 15.20 PAMC Environmentally Sensitive Areas Protection. All
trimming or pruning shall be at the sole cost of the Grantee. The Grantee may contract
for said trimming or pruning services with any person approved by the City prior to the
rendering of said services.
Section 8 - Reports.
The Grantee shall make available to the City such information or reports, as
required by the Telecommunications Ordinance. The Grantee shall allow the City to
inspect any of the Grantee's facilities and equipment with sufficient notice as to not
disrupt the operations of the Grantee.
Section 9 - Insurance.
The Grantee shall comply with Section 11.14.120(E) of the Telecommunication
Ordinance governing insurance and shall submit to the City a certificate of insurance that
demonstrates such compliance.
Section 10 - Indemnity.
The Grantee hereby releases, covenants not to bring suit, and agrees to indemnify,
defend and hold harmless the City, its officers, employees, agents and representatives
Page 5 of ~9
from any and all claims, costs, judgments, awards or liability to any person, including
claims by the Grantee's own employees to which the Grantee might otherwise be immune
under Title 51 RCW, arising from injury or death of any person or damage to property, of
which the negligent acts or omissions of the Grantee, its agents, servants, officers or
employees in performing under this license, master permit, or lease are the proximate
cause.
The Grantee further releases, covenants not to bring suit, and agrees to indemnify,
defend, and hold harmless the City, its officers and employees from any and all claims,
costs, judgments, awards or liability to any person including claims by the Grantee's own
employees, including those claims to which the Grantee might otherwise have immunity
under Title 51 RCW, arising against the City solely by virtue of the City's ownership or
control of the rights-of-way or other public properties, by virtue of the Grantee's exercise
of the rights granted herein, or by virtue of the City's permitting the Grantee's use of the
City's rights-of-way or other public property, based upon the City's inspection or lack of
inspection of work performed by the Grantee, its agents and servants, officers or
employees in connection with work authorized on the City's property or property over
which the City has control, pursuant to this license, master permit, or lease or pursuant to
any other permit or approval issued in connection with this license, master permit, or
lease.
This covenant of indemnificatiori--'snall inClude~-but not be liriiited--Dytlii~f ---.-
reference to, claims against the City arising as a result of the negligent acts or omissions
of the Grantee, its agents, servants, officers or employees in barricading, instituting
trench safety systems, or providing other adequate warnings of any excavation,
construction or work in any public right-of-way or other public place in performance of
work or services permitted under this license, master permit, or lease.
Section 11 - Grantee Default And Remedies.
If Grantee fails to comply with or is in violation of this Agreement or the
Telecommunication Ordinance, Grantee will be subject to termination and remedies as
provided for in PAMC 11.14.120 and 11.14.130.
Section 12 - Compliance With Laws~ Severability.
12.1 Notwithstanding any other provisions of this Agreement to the contrary,
the Grantee shall at all times comply with all applicable police powers and
regulations of the City and all administrative agencies thereof.
12.2 If any provision of this Agreement or any related ordinance is held by any
court or by any federal, state, or local agency of competent jurisdiction to be
invalid as conflicting with any federal, state or local law, rule or regulation now or
hereafter in effect, or is held by such court or agency to be modified in any way in
order to conform to the requirements of any such law, rule or regulation, said
provision shall be considered as a separate, distinct and independent part of this
Agreement, and such holding shall not affect the validity and enforceability of all
other provisions hereof or thereof. In the event that such law, rule or regulation is
subsequently repealed, rescinded, amended or otherwise changed, so that the
Page 6 of ~9
provision hereof or thereof which had been held invalid or modified is no longer
in conflict with the law, rules and regulations then in effect, said provision shall
thereupon return to full force and effect and shall thereafter be binding on the
parties hereto, provided that the City shall give the Grantee sixty (60) days written
notice of such change before requiring compliance with said provision.
12.3 If the City determines that a material provision of this Agreement is
affected by such action of a court of the federal, state or local government, the
City and Grantee shall have the right to modify any of the provision hereof or in
such related ordinances to such reasonable extent as may be necessary to carry out
the full intent and purpose of this Agreement.
Section 13 - Taxes. Permit And Other Fees.
Nothing contained in this Agreement shall be construed to exempt the Grantee
from any tax levy, permit fee or assessment, including but not limited to application,
inspection, pole attachment, excavation impact, or tree trimming fees, which are or may
be hereafter lawfully imposed on all entities engaged in the same business as the Grantee,
or as are generally applicable in the City or State.
Section 14 - Sale Or Transfer.
With respect to the sale or transfer of the Grantee's telecommunication system,
the Grantee shall comply with appropriate sections of the Telecommunications Ordinance
and the I-Net Services Agreement. The City shall have the right of first refusal to acquire
the telecommunications system owned by the Grantee, in the event of any transfer,
assignment or sale, at fair market value for a period of sixty (60) days following service
of notice to the City in accordance with this agreement.
Section 15 - Service Of Notice.
15.1 All notices required or permitted to be given to either party by the other
party under any provisions of this Agreement shall be in writing and shall be deemed
served as follows:
(a) When delivered by hand or by Federal Express or similar service to that
party's address set forth below during normal hours; or
(b) When mailed to any other person designated by that party in writing
herein to receive such notice, via certified mail, return receipt requested.
15.2 Notice shall be given to the following:
(a) If to the City: Glenn Cutler, Public Works and Utilities Director
P.O. Box 1150, Port Angeles, W A 98362-0217
(b) If to Grantee: Bill Roberds, President
54 Misty Lane, Port Angeles, W A 98362
Section 16 - Force Maieure.
Any delay, preemption, or other failure to perform caused by factor
beyond either party's reasonable control, such as an act of God, unauthorized labor
Page 7 of ~9
dispute, non-delivery by non-affiliated suppliers, war, riot, technical breakdown, or
government administrative or judicial order or regulation, shall not result in a default of
the Agreement. Each party shall exercise its reasonable efforts to cure any such delays
and cause thereof, and performance under the terms of this Agreement shall be excused
for the period of time during which such factor continues.
Section 17 - Construction And Jurisdiction.
In the event of any conflict between this Agreement and the Telecommunications
Ordinance, the terms ofthe Telecommunications Ordinance shall prevail and control.
This Agreement is made and performed in Clallam County, Washington, and it
shall be construed in accordance with the laws in the State of Washington and the City of
Port Angeles. Any lawsuit under this Agreement shall be brought in Clallam County,
Washington.
Section 18 - Repeal of Prior Agreement.
Upon the effective date of this Agreement, the Right-Of-Way License Agreement
Amendment No.1 entered into on September ~2, ~2002 is hereby repealed and is
no longer in force and effect.
Section 19 - Execution.
This Agreement shall take effect upon execution by the following duly authorized
representatives of the parties.
City of Port Angeles:
By:
Glenn Cutler, Pubic Works and Utilities Director
Attest:
Becky J. Upton, City Clerk
Approved as to form:
Craig D. Kn-utsonWilliam Bloor, City Attorney
Grantee:
by:
by:
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APPROVEDlAGREEMENTSlROWLICNESERENEWAL2007 DOC
Page 8 of ~9
Date:
To:
From:
Subject:
DO'" ,'RlT,' A IN.. ;'G" tE':Li E'iS'.
1=-.J/:. "'./'f.. '.. ... J ' ! ...' Y
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
July 10, 2007
Utility Advisory Committee
Larry Dunbar, Power Resources Manager
Renewable Energy Generation Project Grant Applications
Summary: At last month's meeting, the Utility Advisory Committee supported a staff
recommendation to consider community interest in a renewable energy generation project. Staff
will present a summary of the promotional efforts and expressions of interest received at today's
meeting.
Recommendation: Support staff's recommendation to proceed with grant applications.
Background/Analysis: On June 12,2007, staff provided a report to the Utility Advisory
Committee about participation in the Bonneville Power Administration's new Conservation Rate
Credit (CRC) program being substantially below targeted spending levels. At that meeting the
Utility Advisory Committee supported a staff recommendation to consider community interest in a
renewable energy generation project. Staff will present a summary of the promotional efforts and
expressions of interest received at today's meeting.
The anticipated cost for a 30 kW photovoltaic system is $400,000, which would be financed by the
City through the conservation fund. Project funding may be provided by the CRC (50%), electric
customers from the community (more than 25%), and a Bonneville Environmental Fund (BEF)
grant from the (less than 25%). Project size would depend on the CRC and BEF grant.
Staff can request BP A permission by July 13, 2007 to use its CRC for the project and may be
allocated a proportionate share of a $6M renewables allowance based on all utilities expressing
interest. Staff proposes to submit a request that conditions the City's willingness to proceed if the
CRC provides at least 50% of total project costs, that the City's minimum acceptable CRC is
$150,000, and that electric customers provide from $100,000 to $200,000 up front or from $6,750
to $13,500 in annual contributions (representing the debt service for $100,000 and $200,000,
respectively). BPA would either accept or deny the City's request by August 1,2007.
In addition to the CRC, staff could submit a letter of enquiry to the BEF at any time. If the BEF is
interested the City would submit a detailed grant proposal. Notification of a BEF grant award
would be made on or before December 28, 2007 if a City proposal were submitted by September
15,2007.
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Overview
· Background
· Benefits
· Costs
· Economics
· Summary
· Recommendations
Background
· Power purchases from Bonneville
Power Administration
· Conservation rate credit program
· October 2006 program changes
· June 2007 Utility Advisory Committee
guidance
1
Background - CRC Options
CRC renewable energy options
1 . Residential solar system
2. Green power purchases
3. Contributions to non-profit organizations
promoting renewable energy
4. Community solar system
· $6,000,000 CRC per year for all
Bonneville Customers
· July 13th CRC request deadline
Background - CRC Objectives
· To provide a local option to utility
customers that want to contribute to a
centrally located alternative energy system
· To help overcome the obstacles of risk
and high upfront cost, limited solar access,
and lack of knowledge of alternative
energy systems
· Provide an alternative energy option that
can grow as demand for alternative energy
increases
2
Background - Project Location
· Not determined
· Provides public visibility
· Large enough area to accommodate
commercial size renewable system
· Large enough to accommodate growth as
customer demand requires
· Provides some protection from vandalism
· Provides easy access for maintenance
crews
Project Benefits
· Local economic impact
· No unwanted emissions or noise at point of
generation
· Contributes to electricity supply & diversity
· Reduced reliance on fossil fuels & price-
volatile energy sources
· Reduces stress on the existing grid
improving grid reliability and resilience
· Proactive, educational benefits
3
Project Costs
· $400,000 estimated cost for 30 kW grid-
tied PV system
· $200,000 possible CRC from Bonneville
Power Administration
· Bonneville Environmental Foundation
grant may be available
· $100,000 to $200,000 from community
· $6,750 to $13,500 conservation fund debt
service
Project Economics
· Estimated annual electrical generation
30,000 kWh
· Enough electricity for 2 homes per year
· Costs exceed benefits
· Estimated electricity cost: $0.53/kWh
· Net present value ($155,000)
· Could breakeven if electric rates escalate
4
Awareness Efforts
· Press release
· Website
· Peninsula Daily News article
· Peninsula Daily News advertisements (2)
· Letter to commercial electric customers
· Climate crisis coalition
Awareness Efforts.
· Evening meeting
- Renewable supporters
- Customers, others, vendor, consultant
- Economics knowledge
- Past City involvement in renewables
-- Limited consideration
- Short time period to educate public
5
Expressions of Interest
· Typical utility customer participation
· Expression non-binding
· 19 day window
· Customers interested
· $4,560 upfront
· $32,160 over time
· Annual average $1,840 or 27% of
amortized cost
Summary
· Risks
- Return CRC to SPA
~ Customer contributions short
- Conservation fund capital
· Disadvantages
- Economics of generation
- Other options
- Recruitment of customer contributions
6
Summary
· Advantages
- CRC & BEF funding opportunities
- CRC & BEF local economic benefit
- Responsive to interested customers
- Likelihood of adequate customer participation
- Those that pay benefit
- Proactive
- Multiple off-ramps available
Recommended Approach
Timeline
July 13, 2007
August 1, 2007
September 15, 2007
December 28, 2007
January 2008
June 2008
December 2008
December 2009
Milestone e
CRC request
BPA CRC award*
BEF grant request
BEF grant award*
Contribution rates**
Decision to proceed**
Project design
Project completion
*UAC guidance sought **UAC & City Council approval sought
7
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Ellensburg Solar Community
ESCaoe to a Sustainable tU1"\Jre
To help meet the future energy needs of our customers, the City wants to take advantage of one
of Ellensburg's most abundant energy resources, the sun (over 300 days of sunshine a year). A
pilot community solar electric project is providing everyone in Ellensburg the opportunity to invest
in locally produced clean electricity. Solar electric modules (panels) are converting free renewable
sunshine directly into electrical power ready to be used in homes and businesses. With no
moving parts, no noise and no pollution, solar electric modules are the simplest and cleanest
power generation systems our community has available.
The first phase of the project - 120 solar modules (36KW) was completed in November and is
located on the west edge of West Ellensburg Park, adjacent to Interstate 90. All of the power
being produced goes directly onto the City's utility power lines. With community support and
additional funding from the local utilities, the City, the County, CWU, local clubs/organizations
and the local citizens we have the potential to expand the system to 550 solar modules (165KW)
over the next three to five years.
This project uses an innovative financing approach that makes it unique among the various
renewable energy programs in the Northwest People In our community iU'e being asked to
partner with the 09' to help Ittnd the project. In exchange for their financial SlJppOf"l;, the Oty Will
give the contlfbutors a doIIaraedit on their electric bill for the value of the electricity produced by
the solar system. Example: If a customer's contribution represents 3% of the total funds
contributed by utility customers, that customer would receive 3% of the power produced by the
solar project - deducted directly off their electric bill.
Contributions made by utility customers go primarily towards the purchase of the solar modules.
The City's Conservation and Renewable program is funding the other project costs, such as solar
system infrastructure, operations and maintenance, design development and marketing. A data
monitoring system from Fat Spaniel Technology is also installed to disseminate the project's data
via the internet. http=//view2.fatspaniel.netjEllensburglprojed/EndUserView.htm,. Check out
the web site to see the power output of the solar system.
Utility staff is working with the University to find ways for CWU students to participate in the
project. An engineering student designed a new adjustable racking system to hold the solar
modules. CWU's Civic Engagement Center provided senior marketing students to design the
project logo and other marketing materials. An IT student is also developing the solar web page
for the City.
The City is committed to renewable energy to help meet Ellensburg's future energy needs. As
community funds continue to come in - the Utility plans to expand the solar system in 24 module
increments. For additional information, please contact: Gary Nystedt, Resource Manager for the
City of Ellensburg (509) 962~7245
Community Renewables Generation Project - Expression of Interest
The City of Port Angeles is seeking support from the community to construct a solar powered
electrical generation facility. The estimated cost of the facility is $400,000 and the grant
requires Port Angeles electric customers to contribute $200,000 upfront or $13,500 per year
for 20 years. The location of the facility has not been determined.
If you are willing to contribute to this renewable energy project please use this form to express your support to
the City. Upfront contributions are preferred above monthly contributions to minimize the City's risk.
Name (Print) Street Address / Mailing Address
Phone Email
Option A - Up front Contribution Option B - Monthly Contributions
o I am willing to make an upfront contribution of o I am willing to make monthly contributions of
o $100 o $250 o $500 o $750 o $1,000 o $2.50 0$5 0$10 0$15 0$20 0$
0$ For the following number of years
o I 02 03 04 05 07 o 10 o 15 020
Option C - Combination Contributions
o I am willing to make an Upfront Contribution of 0 $100 o $250 0 $500 0 $750 o $1,000 0$
AND Monthly contributions of 0 $2.50 0$5 0$10 0$15 o $20 0 $
For the followinl! number of years 0 1 02 03 04 05 07 o 10 o 15 020
Use this space to provide comments or attach a separate sheet if necessary.
L understand that by signing below I am expressing my interest in making a financial contribution(s) for a
community renewables generation project. Although the City is not accepting contributions at this time,
contributions may begin to be collected on October 1, 2007. A financial contribution may entitle me to a
proportional share of the energy output of the facility. I realize that participation in this project will not
necessarily save me money or lower my energy costs and in fact, will cost me more than it would ultimately
save.
Signature
Date
The City may contact you to confirm interest. The terms and conditions of any formal City offering will vary. The City of
Port Angeles is under no obligation to submit a grant request or proceed with a community renewables generation project.
Completed expression of interest forms will be considered if received by July 9,2007
City of Port Angeles
Public Works & Utilities Department
P.O. Box 1150, Port Angeles, WA 98362
For more information visit the City's website at www.citvofpa.us
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WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
July 10, 2007
To:
Utility Advisory Committee
From:
Larry Dunbar, Power Resources Manager
Subject:
Renewable Energy System Incentives
Summary: Washington State law provides incentives for non-commercial renewable energy
systems installed by electric customers. The incentive is provided by the electric utility, which is
reimbursed by a reduction to the public utility tax paid by the electric utility to the State.
Recommendation: Forward a favorable recommendation to City Council to participate in
the Washington State renewable energy system incentives program including City incentive
payments.
Background/Analysis: In 2005, the Washington State legislature established chapter 82.16 of the
Revised Code of Washington to provide incentives for electric customers to purchase and install
small non-commercial renewable energy systems. Eligible systems include photovoltaics,
anaerobic digesters to treat livestock manure, and wind systems that generate electricity. The
incentive is $0.15 per kWh generated and additional incentives are available if photovoltaics,
inverters, and other equipment are manufactured within Washington State.
The incentives provided for systems that are approved by the Washington State Department of
Revenue are required to be paid by the electric utility. The incentives paid by the electric utility
are reimbursed to the City via a reduction to the public utility tax paid by the electric utility to the
State. Since the passage of the law there has been at least one electric customer that installed a
renewable energy system that may be eligible for incentives.
The law requires electric customers to obtain a certification of eligibility from the Washington
State Department of Revenue and submit an application to the City by August 1 st of each year.
The incentives under the program are available though year 2014. The attached certification form
is provided by the Department of Revenue, and staff prepared the attached application form.
Attachments: Renewable Energy System Cost Recovery Certification Form
2007 Renewable Energy System Incentive Application Form
N:\UAC\Original\Renewable Energy System Incentives.doc
~venue
Renewable Energy System Cost Recovery Certification
82.16 RCW
;/'.'ll.;t>'::0'!:'n;~:(jl...
First, contact the utility serving your property to confirm
it is participating in this program and to receive its
application procedures for this incentive payment.
Instructions for Filing: Please mail or fax this
certification form to the Washington State Department of
Revenue at the address below. The Department will: (1)
forward this form to the Climate and Rural Energy
Development Center at Washington State University, and
(2) advise the applicant within 30 days of receipt of this
form whether the renewable energy system qualifies for
the investment cost recovery incentive program.
If you have purchased property with a certified renewable
energy system, you must reapply for certification as the
new owner.
Definitions:
Customer-generated electricity: The alternating current
electricity that is generated from a renewable energy
system located on an individual's, business', or local
government's real property and is provided electricity
generated by a light and power business. A system
located on a leasehold interest does not qualify under this
definition. It also does not include electricity generated
by a light and power business with greater than 1,000
megawatt hours of annual sales or a gas distribution
business.
Solar inverter: The device used to convert direct current
to alternating current in a photo voltaic cell system.
Photo voltaic cell: A device that converts light directly
into electricity without moving parts.
Solar module: The smallest nondivisible self-contained
physical structure housing interconnected photovoltaic
cells and providing a single direct current electrical output.
Mail to:
Department of Revenue
Taxpayer Account Administration
PO Box 47476
Olympia W A 98504-7476
FAX to: (360) 586-0527
For Official Use Only - A
Department of Revenue
Date:
/
/
Climate & Rural Energy Development Center - WSU
Date:
/
/
Department of Revenue Ta:x:Reporting Number
(If ou do not have a number, one will beassi ned.)
DDD-DDD-DDD
Name, Address, and Phone Number of A Iicant
Tele hone No. (
)
(Required)
Location of Renewable Ener S.
(If different from above address)
Does the electricity produced meet the defmition of
"customer generated electricity?"
DYes DNo
Wbat.does. t~erene\V~ble eriergy system prodllce
electricity With?
. Solar inverters and solar modules manufactured
in Washington State D
. A wind generator powered by blades
manufactured in Washington State D
. A solar inverter manufactured in Washington
State D
. A solar module manufactured in Washington
S~ D
. Solar or wind equipment manufactured
outside of Washington State D
. An anaerobic digester D
Can the electricity be transformed or transmitted for
entry into or operation in parallel with electricity
transmission and distribution systems? DYes D No
What is the permit number and the date the renewable
energy system received its final electrical permit from
the local jurisdiction?
Permit No:
Date:
The information provided is true, complete, and correct to the
best of my knowledge and belief under penalty of perjury.
Signature:
For tax assistance, visit htto://dor.wa.gov or 1-800-647-7706. To inquire about the availability of this document in an alternate format for the visually
impaired, please call (360) 705-6715. Teletype (ITY) users may call 1-800-451-7985.
REV 41 0094 (06/29/06)
2007 Renewable Energy System Incentive Application
Incentives for renewable energy systems are available through the City in accordance with
chapter 82.16 of the revised code of Washington and all City requirements. Prior to August 1,
2007, please mail or fax a copy ofthe approved Washington State Department of Revenue
certification form and this application to the City at the address below.
Provide the Washington State Department of Revenue A. D artment of Revenue Tax R OrtingNumber
Tax Reporting Number. 0 0 0 - 0 0 0 - 0 0 0
B. Applicant name, mailing addres!), phoIl.~ number
Provide print the applicant's name, mailing address,
and phone number in the spaces provided.
Tel~hone No. ( )
Provide the date of the letter from the Department of C. ProVide the date of the letter from the Department
of Revenue stating that the. renewable energy
Revenue stating that the renewable energy system is system is eligible forthejncehtives
eligible for the incentive. Date of letter:
Provide the following information: D. Calculate kilowatt-hours generated by system
This year's meter reading. 1. June 30, 2007 meter reading
Last year's meter reading. 2. June 30, 2006 meter reading
Subtract D.2 from D.l and enter the amount. 3. Difference
Provide the meter multiplier. 4. Meter multiplier
Multiply D.3 times D.4 and enter the amount. 5. Kilowatt-hours generated
Provide the following information: , E. Specify the eligible incentive adjustment factors
1. For customer-generated electricity produced using solar modules manufactured in
Washington state, enter 2.4
2. For customer-generated electricity produced using a solar or a wind generator equipped
with an inverter manufactured in Washington state, enter 1.2
3. For customer-generated electricity produced using an anaerobic digester manufactured
in Washington state, enter 1.0
4. For customer-generated electricity produced using other solar equipment or using a
wind generator equipped with blades manufactured in Washington state, enter 1.0
5. For all other customer-generated electricity produced by wind, enter 0.8
6. Add up the adjustment factors E.I-5 and enter the total adjustment factor in E.6
Provide the following information: IF. Determine the total incentive
Multiply D.5 times E.6 times $0.15 and enter the amount ofthe total incentive. The
maximum total incentive is limited to $2,000.00. $
Applicant Date
The information provided is true, complete and correct to the best of my knowledge and belief under penalty of
perjury.
City of Port Angeles, Public Works and Utilities Department P.O. Box 1150, Port Angeles, W A 98362
Bus (360) 417-4700 Fax (360) 417-4709
Date:
To:
From:
Subject:
DO! ,R,yT,' A IN, (G.' ',E','L, ,E' :,5,
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WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
July 10, 2007
Utility Advisory Committee
Larry Dunbar, Power Resources Manager
EnergySmart Grocer Program Agreement
Summary: The City was offered an agreement to participate in the "EnergySmart Grocer
Program" by Portland Energy Conservation, Inc. All City expenses under the agreement are
eligible for reimbursement under the Bonneville Power Administration's Conservation Rate Credit
program.
Recommendation: Forward a favorable recommendation to City Council to authorize the
Public Works and Utilities Director to sign an EnergySmart Grocer Program Agreement.
Background/Analysis: The "EnergySmart Grocer Program" Agreement was recently offered to
the City by Portland Energy Conservation, Inc. The proposed agreement is in connection with a
region-wide promotion by the Bonneville Power Administration. As part of the agreement,
Portland Energy Conservation, Inc. would be responsible for energy audits, identifying eligible
energy conservation measures, and verifying all work is acceptable.
The proposed agreement is anticipated to result in City payment of up to $50,000 through June of
2009 to grocery stores within the City. All City expenses under the proposed agreement are
eligible for reimbursement under the Bonneville Power Administration's Conservation Rate Credit
program.
The proposed agreement term, incorporation of amendments to an agreement between Portland
Energy Conservation, Inc. and Bonneville Power Administration, and a few other minor
modifications are being negotiated. The proposed agreement will be reviewed by the City
Attorney before seeking City Council approval.
Staff requests that the Utility Advisory Committee forwards a favorable recommendation to City
Council to authorize the Public Works and Utilities Director to sign an EnergySmart Grocer
Program Agreement.
N:\UAC\Original\EnergySmart Grocer Program Agreement.doc
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WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
Date:
July 10, 2007
To:
Utility Advisory Committee
From:
Stephen Sperr, P.E., Deputy Director of Public Works/City Engineer
Subject:
Stormwater Utility Rates
Summary: Due to the NPDES Stormwater Phase II designation and the resultant need for expansion
of the Stormwater Utility, a rate adjustment is needed.
Recommendation: Forward a favorable recommendation to City Council to adjust
Stormwater Utility rates as recommended by staff herein.
Background/Analysis: At the May 9,2006 Utility Advisory Committee meeting, the related issues
of a pending NPDES Stormwater Phase II designation and the need to adjust Stormwater Utility
rates established on January 1, 2004 were brought up for discussion. Subsequent discussions were
held in August and September 2006, and March and May 2007. The most recent UAC discussion on
Stormwater Utility rates, held on May 8, 2007, resulted in direction given to City staff to narrow the
focus to several rate options, which are outlined in Table 1 below.
Table 1
Rate Adjustment Options
Current Rate
Description Structure Option 1 Option 2 Option 3 Option 4
Monthly Rate per ERU $3 $4 $4 $6 $10
Impervious Area per ERU, 4,000 4,000 4,000 4,000 4,000
square feet
ERU Cap for Commercial 10 10 100 10 10
Gross Revenue $360,000 $437,000 $506,000 $656,000 $1,093,000
The Stormwater Utility was established in 2004, with an emphasis on funding capital facilities
projects. And there is still a strong need to fund capital construction projects through rates.
However, with the Department of Ecology's designation of the City as an NPDES Phase II
Stormwater community, there is also a need to actively implement other elements of a Stormwater
Utility Program that will (1) limit the City's exposure to the potential for "third-part" lawsuits, and
(2) leverage funds as part of obtaining grants and loans from Washington State's Public Works
Board and Department of Community, Trade and Economic Development.
Stormwater Utility Rates
July 10,2007 UAC Meeting
Page 2 of2
Some of these other elements that will be developed in the next two years will be:
. A 'rebate program, with an emphasis on residential incentives
. Public education
. Expanded water quality testing
. Enforcement
. Low Impact Development standards
. Applying for grants and loans, and managing them
With City Council approval, the City has recently hired a Civil Engineer, Amanda Roberts, to
develop these programs as well as further refine and assist in prioritizing the Stormwater Utility's
capital facilities plan. A preliminary budget for the Stormwater Utility for the next two and a half
years is outlined in Table 2 below.
Table 2
Preliminary Stormwater Utility Budget, Current through 2009
Description Adjusted 2007 2008 Proposed 2009 Proposed
Personnel $50,000 $105,000 $110,000
Services $20,000 $50,000 $75,000
Rebate Program $0 $0 $50,000
Intergovernmental $100,000 $100,000 $100,000
Construction $230,000 $445,000 $365,000
Total Budget $400,000 $700,000 $700,000
To fund the Stormwater Utility through 2009, Option 3 of Table 1 is the preferred alternative. While
that does not fully fund the proposed budgets for the utility as shown in Table 2, there is the
potential for additional grants in the next 18 months, and construction loans may be in place as early
as 2009.
City staff recommends that the UAC forward a favorable recommendation to the City Council to
raise Stormwater Utility rates to $6 per month per impervious surface equivalent residential unit
(ERU), as summarized in Option 3 in Table.!. The deadline for getting rate information to Clallam
County so that it can be included in the 2008 tax mailing is November 2007.
N:\UAC\OriginallJuly 2007 Stormwater Rates memo to UAC.doc
Date:
To:
From:
Subject:
Fr..... 10' 'R" .1.... I'PJ.' N"'Gr 'ElL" E; iSI
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WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
July 10, 2007
Utility Advisory Committee
Stephen Sperr, P.E., Deputy Director of Public Works/City Engineer
Transportation Benefit Districts
Summary: On May 4, 2007 the Governor signed ESHB 1858 modifying the current authority
for Transportation Benefit Districts. The TBD is another tool in the toolbox for communities to
consider when funding transportation/street projects.
Recommendation: For Discussion Only.
Background/Analysis: Attached is a memo developed by the City Attorney discussing the recent
signing ofESHB 1858 modifying the current authority for Transportation Benefit Districts.
The most notable change is the ability for cities to impose a vehicle registration fee of up to $20
per vehicle. There are specific steps to follow including waiting times before it may be
implemented.
The topic of funding street improvements through a Street Utility was previously discussed with
the UAC in August 2003. Staff was directed to return to the UAC when there was a change to
legislation.
It is recommended that after a short staff presentation that the UAC conduct a general discussion
on the merits of a Transportation Benefit District and provide direction, if any, to staff.
N:\UAC\DepDir\Transportation Benefit Districts.doc
LEGAL
DEPARTMENT
William E. Bloor
City Attorney
[4531 ]
Dennis Dickson
Sr. Assistant City
Attorney
[4532]
Rick Petersen
Assistant City Attorney
[4562]
Candace Kathol
Legal Assistant
[4536J
Diana Lusby
Legal Administrative
Assistant
[4530]
Jeanie DeFrang
Legal Administrative
Assistant
[4530]
Randi Felton
Legal Records
Specialist
[4576]
~ORTANGELES
WAS H I N G TON, U. S. A.
DATE: May 11,2007
To: Mark E. Madsen, City Manager
Glenn A. Cutler, Director of Public Works & Utilities
FROM: William E. Bloor, City Attorney
RE: Transportation Benefit Districts
The ability to create transportation benefit districts (TBD) has been in existence
since 1987. However, due to limitations imposed on districts themselves and on
funding, they were rarely used. In fact, prior to 2005 only 2 had been formed in
the state.
On May 4th, the Governor signedESHB 1858 which becomes effective onluly 22.
The bill makes several modifications to the current authority. Notably, the
changes allow cities to impose a vehicle registration fee of up to $20 per vehicle.
It is expected that with these changes in the law, TBDs will be widely adopted by
cities now to assist in funding street, road, and transportation projects.
Baclmround:
Cities may establish transportation benefit districts to fund capital improvement
of city streets and roads. The improvements must be consistent with (1) local and
regional transportation plans, (2) required for economic development, and (3)
partially funded by local governments or private sources.
Creation of the district requires a public hearing and a finding of public interest
for formation. The procedure to create a TBD is simple. The City Council must
conduct a hearing, and of course give prior notice of the hearing. At the
conclusion of the hearing, the City Council may establish a TBD simply by
adopting an ordinance. Transportation benefit districts are quasi-municipal
corporations with independent taxing authority, including authority to impose
taxes and impact fees for construction purposes. The transportation benefit district
must include the entire area within each participating jurisdiction. That is, if a
transportation benefit district is formed here, it must include all territory within the
city limits. The governing body of the TBD is the local legislative authority. In
our case the City Council would be the governing authority of the TBD.
TBDs may fund projects that are of state-wide or regional significance contained
in a state or regional transportation plan. A TBD may spend up to 40% of its
revenue on local street improvements.
May [1,2007
Re: Transportation Benefit Districts
Page 2
2007 Leaislation:
The legislation adopted this year specifically grants to TBDs, once formed, the
ability to impose a vehicle registration fee up to $20 per vehicle. That may be
imposed without a vote ofthe people. With a vote of the people, the fee may be
increased to $100 per vehicle. The Department of Licensing administers and
collects the fees. In the alternative, the TBD may impose an impact fee on the
construction or reconstruction of commercial or industrial buildings, or the
development or subdivision of land for commercial purposes.
Of the two alternatives, most commentators believe that the vehicle registration
fee is most likely to be used. There are limitations. Some of the limitations do not
apply to Port Angeles but others do. First, we are not allowed to impose any fees
or charges within 180 days of the effective date of this Act, July 22, unless the
County by resolution declares that it will not impose those fees.
In addition to the $20 vehicle registration fee, which can be imposed without a
vote of the people, TBDs may also obtain funding through general obligation
bonds, LIDs, development fees, and voter approved levies.
The County has the first right to impose the fees authorized by the 2007
legislation. If so, then the money collected by the County is distributed in
accordance with an interlocal agreement that must be negotiated between the
county and cities within the county. The interlocal agreement is effective when
it is approved by the county, and 60% of the cities representing 75% of the
population of the cities within the county.
The weakness in this is that there is no default position for distribution of the
money in the event entities are unable to negotiate an interlocal agreement. In that
case, the legislation provides that the TBD may still collect up to the $20 fee, but
there is no automatic distribution to cities.
"What proiects are eligible for funding:
First, the ordinance that establishes a TBD must specify the functions to be
performed by that district, and they must be in accordance with the general
requirements ofTBDs. In general, this means that the money must be used for a
"transportation improvement." The statute defmes that term to mean a project
which is identified in both a local transportation plan and a regional transportation
plan. If that condition is met, however, the scope is fairly broad and may include
investment in new or existing arterials of regional significance, high capacity
transportation, and other projects of regional or state-wide significance including
transportation demand management. Projects may also include the operation,
preservation, and maintenance of those facilities.
May 11,2007
Re: Transportation Benefit Districts
Page 3
The TBD, as originally contemplated, was designed to carry out a single project
and some elements of that remain. One section of the statute requires that the
district terminate day-to-day operations within 30 days after completion of the
"construction of the transportation improvement or series of improvements
authorized by a district." Another section provides that "the ordinance
establishing a district shall specify the functions and transportation improvements
... to be exercised or funded ... and that the functions or transportation
improvements proposed to be provided or funded by the district may not be
expanded beyond those specified in the notice of hearing unless additional notices
are made ...."
These provisions do place constraints on TBDs. However, there remains enough
flexibility to give each TBD a wide scope, and there is nothing to prohibit a city
from creating a series of TBDs over time.
This memo is intended simply to layout the basic criteria and some of the
limitations relating to TBDs. I expect that some of the information contained
herein could be used as the basis later for a presentation to the UAC and/or to the
City Council. In addition, the information in this memo may spark other
questions. In that event I would be happy to discuss this with you or provide
additional information.
William E. Bloor,
City Attorney
WEB :dl
G:\LEGAL IMEMOS.2007\M.dsenCutl er. Transport.tion Benefit Distri cl.051 007.wpd