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HomeMy WebLinkAboutAgenda Packet 07/10/2012Utility Advisory Committee Council Chambers July 10, 2012 3:00 PM AGENDA I. Call To Order II. Roll Call III. Approval Of Minutes For June 12, 2012 IV. Late Items V. Discussion Items: A. Energy Conservation Program Annual Report B. Wireless Mobile Data System Acquisition and Integration Agreement Amendment No. 1 C. Electric Utility 2012 Resource Plan D. Ode to the Columbia River (5- minute video only) E. Utility Discount Ordinance Amendments Recommendation VI. Information Only Items: A. Utility Rate Studies Calendar B. Bonneville Power Administration Pre Payment Program C. Advanced Metering Infrastructure System Update (verbal report only) D. Wireless Mobile Data System Update (verbal report only) E. Bonneville Power Administration Administrator Retires (resignation only) VII. Next Meeting Dates: August 14, 2012 VIII. Adjournment N: \uac \final \071012 Other Councilmembers Present: Other Councilmembers Absent: Utility Advisory Committee Members Present: Utility Advisory Committee Members Absent: Staff Present: Others Present: Utility Advisory Committee /Special City Council Meeting Council Chambers Port Angeles, WA 98362 June 12, 2012 2:00 p.m. I. Call To Order Chairman Dan DiGuilio called the meeting to order at 2:02 p.m. II. Roll Call UAC Assigned Councilmembers Present: Cherie Kidd, Dan Di Guilio, Sissi Bruch, PhD., Brooke Nelson (2:30) Patrick Downie Brad Collins, Max Mania Paul Elliott, Murven Sears II Dean Reed Dan McKeen, Glenn Cutler, Bill Bloor, Mike Puntenney, Larry Dunbar, Phil Lusk, Kathryn Neal, Eric Walrath, Tom McCabe, Helen Freilich, Sondya Wray, Rick Hostetler, James Burke Paul Goitlieb, PDN Chris Byrnes, Department of Fish Wildlife Dave McCormack, Aspect Jennifer Garcelon, Clallam County Justin Wilson, Tom Roorda, NTI Bill Harris, Department of Ecology Kent Kovalenko, Waste Connections Tom Bourque, Herrera Mike Spillane, Herrera Bruce and Gerri Ferguson Dry Creek Coalition Darlene Schanfald III. ;Approval Of Minutes Chairman Dan Di Guilio asked if there were any corrections to the minutes of May 8, 2012. Committee Member Cherie Kidd moved to approve the minutes. Paul Elliott seconded the motion, 1 which carried unanimously. IV. Late Items: None. V. Discussion Items: A. 2012 Landfill Bluff Stabilization Phase I, Project SW02 -2012 Kathryn Neal, P.E., Engineering Manager, introduced Tom Bourque with Herrera and he began the PowerPoint Presentation. Erosion has broken a drainage pipe along the marine bluffs on the northern edge of the Port Angeles Landfill. The temporary repair is complete but the next step is to follow up with further investigation and develop conceptual design alternatives for a permanent project. This is to prevent landfill refuse from entering the Strait of Juan de Fuca. A lengthy discussion followed. Paul Elliot moved to recommend City Council to approve and authorize the City Manager to sign a Task Order for the 2011 On -Call Landfill Cell Stabilization Professional Services Agreement with Herrera in an amount not to exceed $300,000, which will increase the contract amount to $396,650, to approve amending the 2012 budget for an additional expenditure of $300,000 from the Landfill Post Closure Fund for project SW02 -2012, and to make minor modifications to the agreement, if necessary. Sissi Bruch seconded the motion, which carried unanimously. B. Landfill Gas Utilization Project Request for Proposal Update Phil Lusk, Power Resources Manager, explained the request for proposal for developing a turn-key landfill gas utilization project at the City's landfill was issued in January. Proposals were eligible to be received through May 11, 2012, however none were received. Due to a lack of interest the request for proposal concludes staff efforts on this project. There was a brief discussion. For information only, no action requested. C. Residential Solid Waste Collection Survey Results Tom McCabe, Solid Waste Superintendent, reviewed the public's participation and responses to the Clallam Spring Clean Up Event. There was a brief discussion. For information only, no action requested. D. Utility Discount Ordinance Amendments Larry Dunbar, Deputy Director of Power and Telecommunications Systems, shared the revised draft amendment on the Utility Discount Ordinance Amendments. A lengthy discussion followed. Brooke Nelson moved to recommend City Council to proceed with a public hearing on the proposed amendments to the Utility Discount Ordinance. Paul Elliot seconded the motion, which carried unanimously. 2 VIII. E. Morse Creek Hydroelectric Project Status Larry Dunbar, Deputy Director of Power and Telecommunications Systems, stated that due to economic conditions the Morse Creek hydroelectric project was put in standby mode in 1997 then restarted in 2004 when conditions were more favorable. The Supervisory Control and Data Acquisition System replacement project and an unanticipated maintenance expense are indications that increased maintenance costs should be anticipated in the future. An inquiry from a private party about purchasing the facility was also brought to the attention of the Utility Advisory Committee. Staff is seeking guidance from UAC to determine if the facility should continue to be operated and maintained, or retired. A lengthy discussion followed. The Utility Advisory Committee directed staff to place this item on a future agenda for further guidance after the cost of the unanticipated maintenance expense has been determined. VI. Information Only Items: A. Natural Gas Prices May Drive Power Rates (May 30, 2012 Bonneville Power Administration Publication) Information only. No action taken. B. Advance Metering Infrastructure System Update (verbal report only) Information only. No action taken. C. Wireless Mobile Data System Update (verbal report only) Information only. No action taken. VII. Next Meeting Date: July 10, 2012 Adjournment: 4:53 p.m. Cherie Kidd, Mayor Sondya Wray, Administrative Specialist 3 PORT NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: July 10, 2012 To: Utility Advisory Committee From: Bob Kajfasz, Commercial Energy Analyst Subject: Energy Conservation Program Annual Report Summary: During the last year, the City finalized its participation in the Bonneville Power Administration's 2010 -2011 Conservation Rate Credit program and initiated the successor 2012- 2013 Energy Conservation Agreement. Staff will present achievements of the last 18 -month period, summarize the current available rebates, and share the progress made on the use of available program funding. Recommendation: For information only, no action requested. Background /Analysis: On April 17, 2001, City Council authorized the Public Works and Utilities Director to implement a conservation program that qualifies for the Bonneville Power Administration's (BPA) Conservation Rate Credit (CRC) program. The CRC formally ended September 30, 2011. On September 15, 2009, City Council authorized the Mayor to sign the Energy Conservation Agreement (ECA) for five years continued funding from BPA for qualified conservation programs. The ECA is an enabling contract that includes a budget specific to the current BPA rate period. On February 2, 2010, City Council adopted Ordinance No. 3391 authorizing the Conservation and Renewable Energy Program Fund (Fund) to acquire electric energy through the installation of cost effective conservation measures in order to minimize or eliminate future BPA Tier 2 power supply purchases. The City has implemented a conservation program consistent with the requirements of the CRC, the ECA, and Fund, and has achieved an average annual energy savings of 2.3 million kWh for the federal fiscal years (FY) 2001 -2011. In 2011, the City requested and received additional funding from BPA to provide rebates for the continuation of the City's conservation program and several large conservation projects at Nippon and Westport Shipyard. The City's ECA budget for FY 2012 and FY 2013 is $1,536,510 after the City's initial request was reduced by 17% related to BPA overspending. The FY2012 and FY2013 ECA budget and an additional $600,000 from the Conservation Fund is fully allocated to provide rebates for continuation of the City's conservation program, increased low- income weatherization projects, and several large conservation projects at the City, Clallam County Courthouse, and William Shore Memorial Pool. Estimated annual energy savings is 3.1 million kWh and 3.6 million kWh respectfully for FY 2012 and FY 2013. N \UAC \Final\Energy Conservation Program Annual Report doc Energy Conservation Program Annual Report July 10, 2012 Page 2 Due to restrictions in the ECA, additional funding in FY 2012 -2014 is not feasible. Staff is exploring opportunities for additional funding from BPA to accommodate additional conservation project funding at Nippon. Following is a list of conservation achieved in the last 18 months and a summary of current conservation program offerings. The majority of the work was completed by local contractors providing a significant benefit to the local economy. This table summarizes the CRC and ECA program achievements from January 1, 2011 through June 30, 2012. Rate Class Energy Savings (kWh /yr) Total Cost Rebate Industrial 6,191,741 $1,329,010 $972,556 Commercial 99,853 58,847 23,899 Residential Low- Income 51,059 83,117 73,481 Residential 2.464.446 1.090.018 285.026 Total 8.807.100 $2,560,933 $1,354.962 The following table summarizes the currently available rebates. Rate class Measures rebates are available for Residential Commercial Heat pump, ductless heat pump, duct sealing, insulation upgrades, window replacement, new water heater, new clothes washer, new refrigerator or freezer, recycling of old refrigerator or freezer, new lighting (retail discount), new Energy Star® home, new Energy Star® manufactured home. Insulation (small commercial less than 5,000 square feet), heat pump (custom project), ductless heat pump (custom project), windows (converted wood framed houses only), commercial clothes washer, commercial refrigerator or freezer, Energy Smart Grocer freezer, freezer case lighting, and kitchen equipment improvements, lighting system upgrades new and retrofit. Industrial Compressed air system improvements and upgrades, lighting system upgrades new and retrofit, process and process controls improvements. All improvements must meet City Material Installation Specifications to qualify for a rebate. All improvements with the exception of residential appliances and residential lighting require advance written approval from a City representative. QRTANGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: July 10, 2012 To: Utility Advisory Committee From: Brian S. Smith, Deputy Police Chief Subject: Wireless Mobile Data System Acquisition Integration Agreement Amendment No. 1 Summary: Staff was recently notified that the City received final approval and authorization on a $52,000.00 grant award from the Federal Emergency Management Agency for in -car cameras for public safety. The grant can be incorporated into an existing Agreement as a change order and can be completed prior to when the grant expires. Recommendation: Forward a favorable recommendation to City Council to approve and authorize the City Manager to sign Amendment No. 1 to the Wireless Mobile Data System Acquisition and Integration Agreement with Capacity Provisioning, Inc. in an amount not to exceed $48,422.28, which increases the maximum compensation under the agreement from $2,577,922.00 to $2,626,344.28, and to make minor modifications to the agreement, if necessary. Background /Analysis: On December 13, 2011, City Council approved a Wireless Mobile Data System Acquisition and Integration Agreement for a Wireless Mobile Data System (WMDS). As part of the procurement process and the Agreement that was accepted, one of the City's options includes in -car cameras for public safety. Due to the need to use all Broadband Technology Opportunities Program (BTOP) grant funds for construction, the option for in -car cameras was not able to be included. Staff was recently notified that the City has received the final award and authorization by the Federal Emergency Management Agency (FEMA) through their fiduciary agent to commence procurement via a previously awarded $56,000 FEMA Port Security grant. Up to $52,000 is approved by FEMA for in -car cameras for public safety. The FEMA Port Security grant can provide in -car cameras for up to 6 police cars, and requires that the work is completed by the end of this year. News of the grant award is very timely and staff initiated including the additional scope of work in the WMDS Acquisition and Integration Agreement. The additional scope of work includes procurement, configuration, and installation of an in -car camera system that will utilize the WMDS. The work will be completed by Cascade Network and Capacity Provisioning and at the same time the WMDS hardware and software is installed in police cars prior to October. This will allow the Police Department to configure right now the in- car hardware and software consistent with a camera application that will be usable for present and future installations. This will save labor and costs that would be incurred in the future as the WMDS hardware and software in thirty-three police vehicles would have to be reconfigured to handle the in -car camera application. This also saves the staff time that would have been involved in the preparation of an additional RFP and in -car camera bid specifications. Attachment: Draft Amendment No. 1 to the WMDS Acquisition and Integration Agreement AMENDMENT No. 1 TO THE WIRELESS MOBILE DATA SYSTEM ACQUISTION AND INTEGRATION AGREEMENT BETWEEN THE CITY OF PORT ANGELES AND CAPACITY PROVISIONING, INC. This Amendment is made this day of 2012 by and between the City of Port Angeles, a Washington municipal corporation "City and Capacity Provisioning, Inc., existing under the laws of Washington, registered to do business in Washin State, hereinafter the "Vendor The Parties recite, covenant, and agree as follows: Section 1. Prior Aareement. The Parties entered into an Agreernexikdated December 20, 2011 providing for installation of a Wireless,obile Data System (tho: NYMD,S). Said WMDS consists of the design, acquisition, and donsfraction of' a WMDS that Will:45S integrated with the fiber optic network for the City's public safety;:utilities, -and general pliblic functions and the City's existing information systems for use by the-City in accordance with the terms, conditions and specifications set forth the original AgreernentExcept as provided in Section 5.1 Total Compensation, below, the Dek Mhor 20, 2011 AVooment between the City and Vendor is ratified and shall remain unchange#W0, effect. Section 2. The December 20, 2014 greemen is,: hereby amended by amending Section 5.1 Total Compensatonfofthe Agreement in its entirety to read as follows: 5.1 Total1CQnpensatioi Page 1 The "City shalli c mT,ensat /the Vendor in the amount "A", 1,927,252 3 which includes :all applicable tames in accordaneee with Exhibit 3 Schedules A B and "C" a d Sch dine,! D optionat,.it ,2 a c e udingf6 inxcar camera systerrxsGwzlawrver softw :ard if the Vendor successfully completes Phase II, and the Phase II System Acceptance Test is accepted by the City byNovember 2, 2Q If the,Phase II System Acceptance Test is accepted by the City by November 2, 2012 the Vendor shall h4,be required ,to remove all equipment, facilities, software and other materials installed during`Phase II and; Shall not be required to refund to the City in full all compensation paid by the City to thl:Vendor under this Agreement in accordance with Section 3.1.3. Invoicing and payment of compensation shall be in the manner and at the times provided in Section 5.3 below. No other compensation or consideration shall be due to the Vendor for the successful completion of Phases I and II. In the event the Vendor successfully completes Phase III, and after the Phase III System Acceptance Test is accepted by the City, and the City approves the Vendor's as -built drawings, the City shall compensate the Vendor the amount of $699,092.48 for Phase III, which includes all applicable taxes in accordance with Exhibit 3 Schedule "D" and Proposed Exceptions "3 "4 and "5" included in Exhibit 3 Schedule "D Payment of compensation for Phase III shall be in the manner and at the times provided in Section 5.3 below. Vendor agrees to sell to City, upon City request, for 3 years after final System Acceptance Test, additional Wireless Access Point equipment. The charges for Wireless Access Point equipment included in Exhibit 3 Schedules `B" and "C" shall remain valid subject to City acceptance based on the Vendor's actual cost plus a 12% markup for a minimum of three years following City approval of the final System Acceptance Test. Vendor agrees to sell to City, upon City request, for 3 years after final System Acceptance Test, additional Vehicle Access Mobile Wireless Units equipment and I. Camera °Systems. The charges for Vehicle Access Mobile Wireless Units shall remain valid subject to Clallam County, Fire District No. 2, Fire District No. 3, and Lower Elwha Klallam Tribe acceptance based on 'the Vendor's actual cost plus a 12% markup for a minimum of three years following City approval of the final System Acceptance Test. CITY OF PORT ANGELES By: Dan McKeen Interim City Manager Date: Page 2 CAPACITY PROVISIONING, INC. Dame (Print) Title: Date: ORTNG 1. LES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: July 10, 2012 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Electric Utility 2012 Resource Plan Summary: The City's electric utility must comply with an unfunded Washington state mandate to develop a Resource Plan. A component of the enabling legislation is that consumer participation in the development of the Resource Plan is encouraged. Further, the governing body of a consumer -owned utility must approve the 2012 and any future Resource Plans after it has provided public notice and hearing. Recommendation: Forward a favorable recommendation to City Council to proceed with a public hearing on the Resource Plan. Background /Analysis: As previously presented to the Utility Advisory Committee in 2008 and 2010, the electric utility is required by RCW 19.280.030 to update its Resource Plan (Plan) that must be submitted to the Washington State Department of Commerce by September 1, 2012. The first state mandated Plan was completed in 2008. Electric utilities with more than 25,000 customers are required to prepare an Integrated Resource Plan, which is a much more extensive effort. The principal desired outcome of the Plan is to ensure electric utilities have adequate resources to meet projected loads, especially as BPA has moved to a tiered rate structure from its prior melded rate schedule. While the Plan is not a legally binding document, at a minimum it must provide a description of current power loads and resources, as well as the estimated power loads and resources for 2017 and 2022 time periods. The state required Plan must be updated every two years and may be available to the public from the City's website. In its projection of the resources estimated to serve future loads, the Plan must explain why those resources were chosen, and if those chosen resources were not conservation, efficiency or renewable energy resources, an explanation must be provided on why such a decision was made. Staff is currently preparing an update to the 2010 Plan based on typical growth rates and the City's current and anticipated future mix of resources. The schedule for an on -time delivery of the 2012 N \UAC\Final \Electnc Utility 2012 Resource Plan doc Electric Utility 2012 Resource Plan July 10, 2012 Page 2 Plan is summarized on the following page. Dates July 10, 2012 July 17, 2012 August 7, 2012 August 14, 2012 August 21, 2012 August 28, 2012 Electric Utility 2012 Resource Plan Schedule Action Items UAC recommendation to Council to set public hearing Council sets public hearing for August 7, 2012 Plan presented to Council; Public hearing opened UAC update on Plan Council continues public hearing and approves resolution Final Plan and approved resolution submitted to the Washington State Department of Commerce OR.T$GELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: July 10, 2012 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power and Telecommunications Systems Subject: Utility Discount Ordinance Amendments Recommendation Summary: During the last six months the City Council and the Utility Advisory Committee have discussed amendments to the utility discount ordinance. After considering the July 3, 2012 City Council direction at today's meeting, the Utility Advisory Committee will be requested to formulate its recommendations on the utility discount ordinance amendments. Recommendation: Formulate and forward a favorable recommendation to the City Council, continue the public hearing, close the public hearing, and adopt the proposed utility discount ordinance amendments. Background /Analysis: At today's meeting staff will summarize City Council direction and citizen input received at the July 3, 2012 public hearing, and any additional input received since then. On July 3, 2012, City Council requested further consideration by the Utility Advisory Committee of the following: 1. Removing the requirements to be a senior or disabled citizen, 2. Reducing the number of discount levels from 4 to 2 by eliminating the 5% and 10% discounts, providing a higher priority for assisting citizens with the greatest financial needs, 3. Combining section 13.20.070 into section 13.20.050 to further simplify the ordinance, 4. Replace the word "ensuing" in section 13.20.050.B. with a less ambiguous word, 5. Consider discounts only during November through February when the need for assistance with home heating energy costs is the largest, and 6. Staff monitoring customer participation to ensure fiscal management. After the Utility Advisory Committee formulates a recommendation to City Council at today's meeting, staff will prepare a revision to the proposed ordinance amendments that will be presented to City Council. The attached proposed utility discount ordinance amendments were presented to City Council on July 3, 2012. Attachment: Proposed utility discount ordinance amendments N• \UAC \Final \Utility Discount Ordinance Amendments Recommendation doc AN ORDINANCE of the City of Port Angeles, Washington, amending Port Angeles Municipal Code Chapter 13.20 relating to senior utility discounts. THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN AS FOLLOWS: Section 1. Ordinance 2663 as amended, and Chapter 13.20 of the Port Angeles Municipal Code relating to senior utility discounts are hereby amended by amending the following sections to read as follows: 13.20.010 Purpose and findings. 13.20.020 Definitions. 13.20.030 Utility discount. 13.20.040 Information to be made available. 13.20.050 Qualifications for the utility discount. 13.20.060 Annlication for the discount. 13.20.070 Calculation of the discount. 13.20.080 Penalty for false information. 13.20.010 Purpose and findings. The City Council of the City of Port Angeles finds that it is appropriate for the City of Port Angeles to provide a discount against electric utility charges to low income elderly and disabled residents of the City. The Council further finds that this discount should be accompanied by energy conservation programs. 13.20.020 Definitions. ORDINANCE NO. A. "Utility discount" means a discount granted pursuant to the terms of this chapter to a low income senior citizen resident or a low- income disabled citizen resident, the amount of which is applied against outstanding obligations of the citizen resident, to the City of Port Angeles for residential electric utility services. B. "Lowy income s Senior eitizen resident" means a person who: 1. Resides within the City of Port Angeles; 2. Is 62 years of age or older; 3. Receives utility services from the City of Port Angeles; 5. Has a total ineecluding that of his er her speusc er co tenant, which does (f), C. Disabled eiti-z-en resident" means a person who: 1. Resides within the City of Port Angeles; 2. Receives utility services from the City of Port Angeles; 3. Is the h ad of a household; 42. Qualifies for special parking privileges under RCW 46.16.381(1) through or a blind person as defined in RCW 74.18.020, and whose i neen e, including that of his or her spouse amount specified in RCW 70.161.020(1), or a person who qualifies for supplemental social security benefits due to a disability. 13.20.030 Utility discount. There is authorized a utility discount for each calendar year commencing January 1, 4-992 2013, which discount shall be applied to the electric utility charges on monthly utility bills of qualified brie senior citizen residents and disabled citizens residents, in accordance with the terms of this chapter. 13.20.040 Information to be made available. The City's Customer Service Manager shall maintain at all times the following information applicable to current applications for, and awards of, electric utility discounts under the terms of this chapter: A. A list of all Federal, State or local energy related programs which are available to provide fiscal assistance to low- income senior and disabled citizens residents. for which B. A list of all conservation or consumption reduction programs of the City that are available at no charge for which an applicant for a utility discount must agree to apply, and the requirements for each such program; C. Current application forms. 13.20.050 Qualifications for the utility discount. A. Each recipient of a utility discount must meet the following criteria: 1. Be a low- income senior resident or a disabled citizen resident, as defined in section 13.20.020. been denied, aid for all Federal, State, or local utility related programs available to provide 3.2 Agree to participate in available energy conservation or programs of the City that are available at no charge to a low- income resident that is the pronertv owner. 3. Receives electric utility services from the City of Port Angeles. 4. Completes an Annlication for the discount in accordance with 13.20.060. 5. Has a gross income below the amounts snecified in 13.20.070. 4. Agree to participate in the City's average payment-program. B. Failure of applicant a low income resident that is the pronertv owner to participate in an available energy conservation program, after receipt of a utility discount, shall constitute a basis for denial by the City of participation in the utility discount program during the ensuing years until such conservation measures are installed. 13.20.060 Application for the discount. A. Applications for electric utility discounts shall be obtained from and filed with the City's Customer Service Manager or to another entity as directed by the Citv's Customer Service Manager. B. Submission of an application for an electric utility discount shall constitute a verification by the applicant that all information provided in such application is true and correct to the best of the applicant's knowledge. 13.20.070 Calculation of the discount. Calculation of the amount of the utility discount for eligible low- income senior or disabled citizens residents shall be in accordance with the following procedure: A. The amount available shall be a percentage of the electric utility base and consumption charges on the monthly utility bill. The percentage shall be based on all sources of the citizen's resident's annual gross income during the nrior three months in accordance with the following: 1. $0.00 $7,999.00 2.500.00 annual income 30% discount 2. $8,000.00 2.501.00 $11,500.00 3.375.00 annual income 20% discount 3. $11,501.00 3.376.00 $17,500.00 4.875.00 annual income 10% discount 4. $17,501.00 4.876.00 $21,000.00 5.750.00 annual income 5% discount B. The amount of discount to be received by any individual shall be reduced by the amount which the total subsidy, including grants from other (e.g., Federal) sources, exceeds the customer's utility bill. 13.20.080 Penalty for false information. The willful provision to the City of false information in an application for the electric utility discount shall forfeit the low- income senior or disabled citizen';, resident's eligibility for future credits. Additionally, the low- income senior or disabled citizen resident shall be required to repay the amount of any electric utility discount received based upon such false information. Section 2- Severabilitv. If any provisions of this Ordinance or its applications to any person or circumstances is held to be invalid, the remainder of the Ordinance or application of the provisions of the Ordinance to other persons or circumstances is not affected. Section 3 Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener's /clerical errors, references, ordinance numbering, section subsection numbers and any references thereto. Section 4 Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect January 1, 2013 after its publication by summary. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day 2012. ATTEST: Janessa Hurd, City Clerk APPROVED AS TO FORM: William E. Bloor, City Attorney Cherie, Kidd, Mayor PUBLISHED: By Summary G \LEGAL\a ORDINANCES &RESOLUTIONS \ORDINANCES. Senior Utility Discounts 06.13.12 docx 5 P )ORT A NGELE J S W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: July 10, 2012 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power and Telecommunications Systems Subject: Utility Rate Studies Calendar Summary: A schedule has been prepared to inform the Utility Advisory Committee about upcoming dates and action items related to this year's utility rate studies. Recommendation: For information only, no action requested. Background /Analysis: In 2008, cost of service studies were completed for the water, wastewater, solid waste collections and transfer station utilities by FCS Group. In 2010, a cost of service study was completed for the electric utility by FCS Group. This year rate studies will be completed by staff for all utilities (electric, water, wastewater, solid waste collection, transfer station, and stormwater). The schedule including dates and action items is provided below for more information. We anticipate that the September Utility Advisory Committee may take more time than normal to review the findings and recommendations for each utility. 2012 Utility Rate Studies Schedule Dates Action Items September 11, 2012 Presentation to the Utility Advisory Committee September 18, 2012 City Council sets public hearing October 2, 2012 Presentation to the City Council; open pubic hearing October 9, 2012 Utility Advisory Committee recommendation to City Council October 16, 2012 Continue public hearing, close public hearing, adopt rates January 7, 2013 New rates in effect N \UAC\Final \Utility Rate Studies Calendar doc ORTANGEI W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: July l0, 2012 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power and Telecommunications Systems Subject: Bonneville Power Administration Pre Payment Program Summary: The Bonneville Power Administration plans to offer the City an opportunity to participate in a new pre payment program later this year to help fund its investments in the Federal Base System. Staff does not plan to pursue participation in this year's initial offering. Recommendation: For information only, no action requested. Background /Analysis: The Bonneville Power Administration (BPA) recently met with City staff and the City's Industrial Transmission customer to discuss a new pre payment program. The program is a means for BPA to secure approximately $125 million per year for investments in the Federal Base System (FBS). BPA is promoting the program because it anticipates that it will fully utilize its $7.7 billion U.S. Treasury line of credit by 2016. BPA plans to invest about $500 million per year in the aging FBS. If the City chooses to participate, it would pre purchase a $9.2 million block of future wholesale power, and, in exchange, would receive a $50,000 credit on its monthly wholesale power bill for 15 years. BPA wholesale power rates will be the same for participants and non participants. As part of the program, the City would have to offer to purchase at least one block at a cost in the range of $5.5 $6.3 million in today's dollars. The City's Electric Utility would have to borrow to purchase a block because it still replenishing its unrestricted cash from the 2001 West Coast Energy Crisis, and the use of cash for the pre payment program may not be prudent. The anticipated net retail rate reduction for the purchase of a block is only about 0.15 There is some risk if the City participates that would need to be considered, and the City's authority to participate would need to be confirmed. Staff is also concerned that: BPA's anticipated acceptable rate of return for utility participants may be too low; that financing origination costs, required reserves, and typical debt coverage ratio requirements do not appear to have been considered; and that financing a block may reduce the City's ability to secure funding for its own Electric Utility renewals and replacements. BPA plans to offer City an opportunity to participate in August, and a City response would be due in November. BPA anticipates selecting utility participants in December, and utility participants would have four months to provide funding and/or obtain financing. There are three additional offerings anticipated. For the reasons cited above, staff does not plan to pursue participation in this year's initial offering. N \UAC \Final \BPA Pre Payment Program.doc Department of Energy Bonneville Power Administration P.O. Box 3621 Portland, Oregon 97208 -3621 EXECUTIVE OFFICE June 19, 2012 In reply refer to: A -7 Every journey must come to an end. And so today I'm announcing that I will be leaving BPA when I become eligible for retirement in January. It has been more than 11 years since I assumed this role. It's amazing to me that much time could have passed so quickly. I can now admit that I was scared to take on the awesome responsibilities that come with this job. Some of the fear has passed but the extreme sense of honor to have been blessed with this opportunity is greater than ever. Many people touch the BPA elephant in different ways, not recognizing the magnitude of our responsibilities. We are the region's major transmission provider, operating 75% of the high voltage transmission in the Northwest. We market more than a third of the electric power in the Northwest from hydropower and nuclear resources. We fund and manage what is likely the largest fish and wildlife restoration program in the world. We run some of the most successful energy efficiency programs in the country. We provide financial benefits that lower rates for residential and small -farm customers of investor -owned utilities. We operate a business that produces $3.3 billion in annual revenues requiring financial management, legal, human resource, information technology, compliance, and business support systems. The scope of our activities is so vast, touching the lives of the 11 million people in the Northwest on a daily basis, that there has never been a boring day for me. For someone who wanted a career with the opportunity to perform public service that can make a meaningful and hopefully positive difference in people's lives, this job has been a dream come true. I am deeply indebted to the four Secretaries and six Deputy Secretaries of Energy, stretching across three Administrations, who have afforded me the opportunity to serve the country and the Pacific Northwest. I am also exceedingly grateful to the members of the Northwest Congressional delegation, who probably understand the challenging balancing act inherent in this job better than anyone and who have been extraordinarily supportive throughout my tenure. One of the greatest rewards in this job has been seeking to define a mainstream approach to governing and receiving bipartisan support for those efforts. Those of you who know me well will not be surprised to hear that I have been planning this for a while. I am eligible for full retirement benefits this coming January. I believe any organization is well served by periodic changes in leadership just to get a fresh view. I am announcing my decision now in order to allow an orderly transition to a new Administrator. In order to promote a successful transition I will be staying on as Administrator until a new selection is made. Following that I will remain with the agency until I am eligible for retirement in order to support my successor. Large business organizations generally seek to manage CEO transitions 2 in this manner and BPA deserves no less. DOE Deputy Secretary Daniel Poneman will be leading a competitive process to select a new Administrator. I owe a debt of gratitude to the many BPA employees who have served during my tenure. Thanks to you all. It has been an honor to serve alongside a tremendous cadre of public servants. Public service deserves greater acclaim in our culture. I believe that if the public could only see the level of dedication, hard work and commitment to being great stewards of the public's assets exhibited by BPA employees it would forever alter their view of public service for the better. There is something about the mission of BPA that brings out the best in people. BPA is steward of a set of assets that are a treasure and through those responsibilities a creator of tremendous value for the Pacific Northwest. My admonition to anyone reading this letter is to recognize how important it is to maintain, enhance and retain the tremendous value of these uniquely Northwest assets. The best part of this job has been the opportunity to meet, engage and get to know so many people across our region, getting the opportunity to understand how BPA can improve the quality of your lives. To the many power and transmission customers, tribal members, blue collar workers, members of the public interest community, retail ratepayers, business operators, contractors, merchant power developers, fellow public servants and other members of the BPA community, I wish I could convey how much I have learned from you. I have appreciated your input and then tried to reflect the will of the region wherever possible. One of my most memorable moments was being in a town hall meeting attempting to explain our rate increases after the 2001 West Coast energy crisis. A woman patiently listened to me describe everything we had done to try to manage the rate impact downward. She then politely thanked me but described how the rate increase was impacting her family. She finished with a challenge that every day I ask myself have I done everything possible to use the power of my office to make the world a better place. It was a powerful thought that resonated beyond the specifics of that time and that issue, and I've tried to meet her challenge. I hope I have the chance in the coming months to see and thank everyone internally and externally to the agency who has helped me through input, advice, counsel and most important moral support. It is hard to put into words how important this has been to allowing me to shoulder the challenges of this job. As I move toward leaving this office I have no interest in parties or other going away events. I do have a request, though. For the last 11 plus years I have put so much of myself into this job with the consequence being that my family got short- changed or worse, at times took the brunt of my frustrations. I'm sure they wondered what I was doing that was so important that they had to pay a price. Hence what I would really appreciate is a letter from anyone so inclined addressed to Kathleen, Hana, Tyler and Daniel relating some event or interaction during my tenure that was memorable for you and might help them understand what I have been doing with my time. 3 Oh, and by the way, I have every intention of being the Administrator until the day I am not. Not the lame duck Administrator, the short term syndrome Administrator, or the acting Administrator. Those of you who saw the way I approached the job during the first 15 months when I was an acting Administrator know my belief that the agency cannot afford a caretaker for even short periods of time. I have no intention of acting any differently now. Because I will be focused on performing this job until I'm done, I am not focusing on what comes next. So, please don't ask me. I want to keep my attention on where it belongs, which is the host of issues that BPA needs to address in my remaining time in this job. I would prefer not to discuss the past until after I leave this job, but I know when I leave there will be a sense of satisfaction for accomplishments along with regrets for my failures and unfinished business, relief for the burdens that will soon be lifted from my shoulders, along with disappointment in missing out on upcoming challenges, joy for the friendships and acquaintances made along the way along with disappointment for the friendships harmed because of the need to make tough decisions. I expect this to be the best job I will ever have. Thank you all for everything you have done to make this such a truly rewarding experience. Sincerely, Stephen J. Wright Administrator and Chief Executive Officer