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Home My WebLink AboutAgenda Packet 08/08/2006 Utility Advisory Committee Public Works Conference Room Port Angeles, W A 98362 August 8,2006 3:00 P.M. AGENDA I. Call To Order II. Roll Call III. Approval Of Minutes For July 11,2006 IV. Late Items V. Discussion Items A. Landfill Use Proposal B. Electric Rate Study C. PUD Right-of-way License D. Termination Of City Authorized Contractor Agreements E. Stormwater Utility Rates Project List VI. Executive Session VII. Next Meeting Date - September 12, 2006 VIII. Adjournment N:\uac\final\080806 UTILITY ADVISORY COMMITTEE 6.. <(3 - alp " GUEST SIGN UP SHEET PRINT NAME ORGANIZATION ~ t"'~d \ 0( ~c.. ...-rr <<.. t. T ( 2.. 67J ~ N: \PWKS\LIGHT\ CONS \ CATE\ SIGNUP. wpd >'~*;'. L,~:i;{,':' UTILITY ADVISORY COMMITTEE Port Angeles, Washington July 11, 2006 L Call to Order: ~; Chairman Reed called the meeting to order at 3:00 p.m. IL Roll Call: Members Present: Chairman Reed, Orville Campbell, Karen Rogers, Grant Munro, Betsy Wharton (3:03) Members Absent: None Staff Present: Mark Madsen (3:08), Bill Bloor (3:05), Glenn Cutler, Scott McLain, Gary Kenworthy, Mike Puntenney, Bill Beverford, Cate Rinehart Others Present: None IlL Approval of Minutes: Chairman Reed asked if there were any corrections to the meeting minutes of June 13, 2006. Mayor Rogers moved to approve the minutes. Orville Campbell and Councilman Munro jointly seconded the motion, which carried unanimously. Chairman Reed asked if there were any corrections to the meeting minutes of July 5, 2006. Mayor Rogers moved to approve the minutes. Councilman Munro seconded the motion, which carried unanimously. IV. Late Items: None V. Discussion Items: A. Leak Detection Results - 2006 Bill Beverford, W ater/W astewater Collection Division Superintendent, noted that the general areas covered this year were "I" Street to McDonald Street, 10th to 16th Streets, and Lindberg Road to 101 Highway East, Delguzzie Drive to Wolcott Steet covering approximately ten miles. A total of four leaks were found and repaired. There was a brief discussion. No action taken. Information only. 1 In Proposal for use of space at the municipal landfill site by The Remediators Inc. COMPANY BACKGROUND: The Remediators Inc., is a bio-remediation company specializing in the clean-up of petroleum and polychlorinated contaminates in soil. The company uses a process known as Microfloral Acceleration in which inoculated biomass is blended with existing contaminated soils to safely break down the toxic compounds into their inert elements. The process leaves no residue or concentrated toxins, and is particularly well suited to the Pacific Northwest coast. The main microorganisms relied on to initiate the process are naturally occurring local strains of fungi. The Remediators Inc., formed in 2003, and is currently part of the Clallam Business Incubator program, and is recognized as an emerging industry capable of providing jobs for the community and educational opportunities for Peninsula College's new environmental studies program. PROJECT DESCRIPTION: The Remediators Inc. would like to develop a treatment center at the existing landfill to develop the commercial application of its MicroFloral Acceleration process. There will be ongoing research to refine our methods. PROJECT NEED: The Remediators Inc., seeks to partner with the City of Port Angeles for the use of a 22,000 square foot area on the southwest comer of the existing landfill, near the area currently used as a firing range. The purpose ofthe location would be to serve as a treatment center for future petroleum contaminated soils which would otherwise be delivered either to the landfill as capping material, or to Waste Connections for shipment though the new transfer station. This would provide both an economic resource for the community, and an environmentally friendly solution to resolving contaminated soils issues. LOGISTICS: The Remediators Inc., would provide a mobile soil processor on site! until a processing center can be built. The processing center would be a covered pole constructed building on a concrete slab. A perimeter drain would collect any water run-off from the soil undergoing treatment. Remediated soils might be used by (sold to) the Highway Department for use as erosion control top soil or sold as fill dirt. LIABILITY AND PERMITTING: The Remediators Inc., seeks a location at the City of Port Angeles landfill site due to the pre-existing permit and use as a contaminated site. The Remediators Inc., will carry environmental insurance as prescribed by city, county and state minimum requirements. The city is asked to apply for the Environmental Protection Agency's Research, Development and Demonstration Permit variance (see attached for details) to allow for proj ect implementation. FUNDING: The Remediators Inc., will operate a for-profit business. The company asks the City of Port Angeles to lease the area to them at a nominal fee of$l/year. In return, the company wilI provide infrastructure and personnel to operate a research, development and demonstration project at the landfill location. Revenue for operations ofthe project will be derived from fees charged to individuals or companies requesting soil disposal at rates not to exceed the tipping fees at the I The Enviro-Processor is a self contained industrial truck mounted batch processor capable of processing 25 Cll yards of soil. transfer station. Sales of remediated soils is another source of revenue. RESEARCH GRANT PROPOSAL: The Remediators is working with Peninsula CoIIege to submit a grant proposal to the National Science Foundation later this month (see attached PFI proposal brief. doc ). We will to coIIaborate on commercialization of our soil remediation process. If funded, the grant will provide equipment for Peninsula CoIIege to enhance their biology and chemistry teaching laboratories while supporting The Remediators R&D efforts. A low cost lease for space at the landfiII would demonstrate the support ofthe City of Port Angeles for this partnership. APPENDIX A States May Issue Permit Variances for Municipal Solid Waste Landfills United States Environmental Protection Agency March 2004 EPA530-F-03-052 www.epa.gov/osw The Environmental Protection Agency (EPA) is providing additional regulatory flexibility to states to use new technologies to manage municipal solid waste (MSW). This action aims to stimulate the development and use of safe, new alternative operational processes to landfill MSW. Action EP A's Criteria for Municipal Solid Waste LandfiIIs (MSWLFs) establish the federal regulatory framework for managing municipal solid waste. The states base their EP Aapproved MSW programs on the Criteria. This action modifies the federal Criteria to allow EP A-approved states to issue research, development, and demonstration (RD&D) permits to MSW landfiIIs. State directors have the discretion to provide variances for run-on control systems, liquid restrictions, and the final cover permeability for closure and post-closure care. No other variances may be issued under a state RD&D permit. To grant a variance, the state director must be satisfied that a landfiII operating under an RD&D permit wiII protect the environment to the same extent as it would under a standard MSWLF permit. Municipal Solid Waste RD&D pennits may be used for new and ilmovative landfiII technologies, such as bioreactor landfiIIs and phytocovers. Bioreactor landfills are designed and operated in such a manner that liquids are added to the waste mass to accelerate the decomposition of the waste. Phytocovers provide a different approach to controlling infiltration by using plants to remove moisture from the soil cover of a municipal landfill. A state must adopt these regulations in order to issue RD&D permits. The Agency expects landfill owners and operators to save money by recirculating leachate instead of treating it, and from cost reductions associated with the flexibility in this rule for innovative final cover designs. This rule is not an attempt to lessen the importance of compo sting or source reducton in the hierarchy of municipal solid waste management. If new teclmologies can improve the overall management ofMSW while protecting human health and the environment, then EP A encourages the development of such new and innovative technologies. For More Information j FORTANGELES WAS H I N G TON, U. s. A. Utility Advisory Committee Memo Date: August 8, 2006 To: Utility Advisory Committee From: Larry Dunbar, Power Resources Manager Subject: PUD Telecommunications Right-Of-Way License Agreement Renewal Summary: The City's license to the Clallam County Public Utility District for its telecommunications system within the City is expiring. The license needs to be renewed and a ten- year term has been requested but is not recommended by staff. 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 the Clallam County Public Utility District No.1 for a five-year term. Background/Analysis: The City's license to the Clallam County Public Utility District (District) to construct, maintain, and operate a telecommunications system within the City for the District's internal needs became effective October 10,2001. The initial term ofthe license was five-years and expires October 10, 2006. Due to the District's limited authority under State law, the license does not grant the District authority to provide wholesale or retail telecommunications services to end users within the City, interconnect the District's telecommunications system with other systems within the City, nor allow the District to expand its telecommunications system within the City. In accordance with the City's telecommunications ordinance, the District requested the license be renewed, provided a report, and paid a $500 deposit to offset the City's administrative cost to consider the renewal. As part ofthe District's request they would like the term ofthe renewed license to be ten-years. Due to the likelihood oftechnological and/or legal changes, staff does not recommend the renewed term exceeds five-years. No other changes to the license are proposed or recommended. ~ N:\UAC\Final\PUD Right-Or-Way License Renewal.doc 2431 East Highway 101 Post Office Box 1 090 Port Angeles, WA 98362 (360) 452-9771 FAX 452-9338 www.clallampud.net Shelley Burgett, C.P.A., General Manager Commissioners Will Purser, District NO.1 Hugh Haffner, District No.2 Ted Simpson, District NO.3 June 28, 2006 Mr. Scott McLain Deputy Director Power Systems City of Port Angeles P.O. Box 1150 Port Angeles, W A 98382 RE: Telecommunications Right-of-Way License ~. Dear Scott: A warrant for $500 is enclosed, along with the information requested for renewal of the Telecommunications Right-of-Way License. The District requests a ten-year term on the renewal as the telecommunication system is necessary for the long-term operation of our systems, and the facilities within the City are unlikely to change. In conclusion, the District has complied with the requirements of the license.and does not provide telecommunications services to end users within the City. Please call me at 565-3235 if you have any questions. Sincere , (:L. red Mitchell Telecommunications and Power Resources Manager FM:cb Enclosures i-- I '--- 1.1 RIGHT -OF- WAY LICENSE Entitv Requesting Renewal: Public Utility District No. 1 of Clallam County Telecommunications Services: The primary purpose of the fiber-optic cable infrastructure is for the District's own use. Capacity that is excess to the District's needs is made available on a wholesale basis only. Video Services: The District does no intend to provide cable service, open video service, or other video programming services. Network Map: No facilities have been added to the original submittal. District Locations: The District's operation center on 18th Street is located within the City and connected to the District's telecommunications system. Interconnection Locations: The District's Port Angeles Hut, located on Pioneer Road, allows interconnection for wholesale telecommunications services. The District has an agreement with one retail service provider reselling telecommunications services with the City. FORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo Date: August 8, 2006 To: Utility Advisory Committee From: Larry Dunbar, Power Resources Manager Subject: City Authorized Contractor Agreement Termination/Amendment Summary: The City entered into a total of twenty City Authorized Contractor Agreements with independent contractors that install energy conservation improvements under the Conservation and Renewables Discount program. The program is ending and staff feels that several City Authorized Contractor Agreements are not necessary under the new Conservation Rate Credit program. Recommendation: For information only, no action required. Background/Analysis: On May 21, 2001, the City Council authorized the Public Works and Utilities Director to enter into City Authorized Contractor Agreements under the Bonneville Power Administration Conservation and Renewables Discount (C&RD) program. A total of twenty contractors entered into the Agreement with the City including a term through December 31, 2006, which may be terminated upon ten days written notice. The C&RD program is concluding at the end of September 2006. On June 19,2006, the City Council authorized the Public Works and Utilities Director to implement the Bonneville Power Administration's successor program, called the Conservation Rate Credit (CRC) program. The duration ofthe CRC program is from October 2006 through September 2009. The CRC program implementation manual is anticipated to increase the energy efficiency requirements and decrease customer rebates for heat pumps and windows. The result of these changes will be lower customer participation for heat pumps and windows and maintaining nine City Authorized Contractor Agreements is not necessary after October 1, 2006. The City Authorized Contractor Agreement should be maintained with eleven contractors for insulation, air sealing, lighting, and solar water heating improvements because rebates and customer participation are anticipated to be similar to the past. Staffwill be receiving the CRC implementation manual in the near future and will either terminate City Authorized Contractor Agreements or amend them to provide a term through September of2009. N:\UAC\Final\City Authorized Contractor Agreement Termination.doc ,. ,.., ~RTANGBLES WAS H IN G TON, U. S. A. UTILITY ADVISORY COMMITTEE MEMO DATE: August 8, 2006 , To: UTILITY ADVISORY COMMITTEE FROM: Gary W. Kenworthy P;E., Deputy Director of Public Works/City Engineer SUBJECT: Stormwater Project List Summary: At the May meeting of the UAC, it was requested that several rate increase scenarios be outlined to see what impact it would have on the project completion timeline for identified CFP projects. Recommendation: None. This is a continuation of discussions regarding Stormwater Utility Funding and Projects. Background/Analysis: Edit: The Stormwater Utility was created (Ordinance 3 151) in 2003. During the formation discussions for the Stormwater Utility it was noted that the rates would be reevaluated in three years, our normal utility review period. The current monthly Stormwater Utility Rates are $3.00 per month ($36 Annually) for single-family and duplex properties and $3.00 per 4,000 square feet unit of impervious area, with a ten unit/$30.00 cap ($360 Annually), for commercial/multiple property. These fees are collected by the County along with property taxes and in 2005 generated revenues of$357,000 (1490 commercial properties, $124,500, 35%; 6510 residential properties, $232,500, 65%). It was directed by City Council that the funds for the Stormwater Utility be utilized primarily for Capital Facility Projects (CFP) to reduce flooding and Combined Sewer Overflow (CSO) impacts, as well as endangered species act (ESA) training for staff. The charges for services (1 % County processing fees, 8% utility tax rate, and staff training, assessments and other services) reduce the projected annual funds available for capital projects, in 2006 dollars, to approximately $310,000. This is the same value noted in the 2003 Council Memo for the Stormwater Utility formation. A listing of proposed projects prepared for the recently approved 2006-20012 Capital Facilities Project (CFP) list for Stormwater is attached. Below is a table showing several rate increase scenarios and their impact on the level of the funding for the Stormwater Utility. Stonnwater Project List August 8,2006 , Page; 2 Monthly ERU Rate Net Annual Revenue Available ($108,000 Net/$1 increase) for Projects * Current, $3.00 . $225,000 $3.50 $279,000 $4.00 $333,000 $5.00 $441,000 $6.00 $549,000 *If no additional money is spent yearly for training, assessments and other services and the Catch Basin Modifications Program remains at $85,000 Over the next 6 years the 2007-20012 CFP has identified $6,485,000 in projects to be, completed. These equate to approximately $1,080,000 per year to be fully funded. Our current stormwater utility balance, following award of the Lincoln Street stormwater improvements project, will be approximately$35,000 for 2006. It is clear that the CFP, with the current revenues of$31O,000 per year, does not present a realistic program. . The adopted Stormwater CFP project list for 2007 totals $385,000 plus an added $40,000 for stormwater utility's share of the decant facility at the landfill for atotal of $425,000. Also included in the 2007 Stormwater CFP is the City-Wide Catch Basin: Modifications funding allocation, which is used to annually to supplement the stormwater improvements for street improvement projects such as the Peabody Reconstruction Phases I and IT, Park Avenue Improvements, and First/Front Street Entrance Improvements. This will match the projected available funding of $425,000 ($310,000 in projected revenue plus $80,000 rolled over from delay of the Peabody Street project to 2007, and the current $35,000 utility balance). . The projected work for 2007 involves the preliminary engineering and construction budget estimating for a number of projects that would then be constructed in 2008 arid beyond. The preliminary engineering is required to set project priorities within specific problem areas and to establish construction costs for each project. With this information and the funding constraints a rational approach to our stormwaterproblems can be established The current projected net revenue stream of $310,000 only leaves $225,000 available for the preliminary engineering and/or construction after $85,000 is allocated for the annual City Wide Catch-Basin Modification program. With the rising cost of construction the amount that can be accomplished each year is diminishing. The preliminary engineering work scheduled for 2007 should help identify project sequencing. Using planning level estimates, the design and construction of a typical $500,000 project, would take 27 months to remain within the available funding. The project could start construction in 2009 (2007 preliminary engineering, 2008 design, 2009 construct) when sufficient funding is available to proceed. In addition, the Stormwater CFP project listings do not take into account DOE's likely decision later this year to require Port Angeles to have a NPDES Municipal Stormwater Phase II Permit. This unfunded mandate will be a significant impact to the City and developers. It is clear that with NPDES Phase II implementation, additional administration, engineering and planning staff will be needed. At a minimum one additional FTE position ($100,000) will be required to meet the implementation requirements, as well as oversee current stormwater design, construction N:\UAC\DepDir\Stonnwater Project List.doc r- , . .. Stormwater Project List August 8,2006 Page 3 management, consultant management, pursuit of funding opportunities, and monitoring of DOE and other agency pending programs and impacts. This added cost to the utility will severely impact the project completion rates. . . Using the non-programmatic projects listed in the CFP the following table was prepared to show durations based on funding levels: PROJECT COMPLETION TIMES, MONTHS PROJECT COST* PROJECT PROJECT PROJECT PROJECT PROJECT TTTLE ($1,000) TIME @ TIME @ TIME @ TIME @ . TIME @ $3.00 $3.50 $4.00 $5.00 $6.00 10 &N $300 DETENTION CAMPBELL/PORTER $500 AREA CANYON EDGE & $500 AHL VERS BIG BOY POND $300 16 OVERFLOW C STREET $500 27 22 EXTENSION ROSE & THISTLE $500 27 22 18 AREA LAUREL & 101 $500 27 22 18 14 AREA UPPER GOLF $500 27 22 18 14 11 COURSE AREA MILWAUKEE $1,200 64 52 43 33 27 DRIVE AREA FIRST STREET $250 14 11 9 7 6 SEPARATION * These are planning level "placeholder" estimates to be refmed during preliminary engineering. The shaded area in the above table represents what can be completed within a 6 year (72 Month) funding program at the various ERU monthly rates. The programmatic projects not included were the Stormwater Outfalls to Streams and Marine at $50,000/year and Stormwater Discharges over Bluffs at $120,000N ear. If these were included the above durations would be extended significantly. It is clear that the funding for the stormwater utility is deficient and rate increases or other funding revisions need to be considered. The UAC's direction in which projects to pursue under the current and future funding is also requested. Attachments: 2006 - 2012 Stormwater Utility CFP 2003 Stormwater Project Matrix N:\UAC\DepDir\Stormwater Project List.doc . . .' I. ,~"_ .,.t",~ 2006 - 2012 CAPITAL FACILITIES PROJECTS PRIORITY ORDER CFP I TIP $UMMARY PAGE 4:. Exhibit "A"- PROJECT TITLE 1 DR04-99 Lincoln Slreet Storm Drein (4th 10 7th St.) 400,000 400,000 -100,000 0 0 0 0 0 0 400,000 Y 2 DR02-99 Cily-Wide Catch Basin Modificalions 740,000 740,000 BO 000 85,000 90 000 95 000 . . 100.000 105 000 110000 665,000 N 3 DR65-99 10lh And "N" Slreet Reglonel Storm Detenti 300,000 300,000 0 50,000 250 000 0 0 0 0 300,000 N 4 DR01.o4 Stormwater Outfalls 10 SIreams & Marine 300,000 300,000 0 50,000 50 000 50 000 50 000 50 000 50 000 300000 Y 5 DR06-04 Stormwater at Campball & Porter 500,000 500 000 0 50 000 200 000 25D 000 0 0 0 500,000 N 6 DR14-99 Peabody Creek/Uncoln 51 Culvert Rehab 100,000 100,000 0 0 100 000 0 0 0 0 100,000 Y 7 DR04-04 SIormwater at Canyon Edge & Ahtvera 500,000 500,000 . 0 50,000 200 000 25D 000 0 O' 0 500,000 N 8 DROB-04 Uncoln ParklBio Bov Pond 300,000 300,000 0 30,000 270000 0 0 0 0 300 000 N g DR53-99 Stormweler Discharges Over Bluff 870,000 670,000 0 70,000 120 000 120 000 120,000 120000 . 120 000 670,000 Y 10 DR07 -04 SIormweter et "COO SIreel Exten8lon 500,000 500,000 0 o. 0 50 000 200 000 25D 000 0 500 000 . N 11 DR05-04 SIormwater al Rose & Thlslie 500,000 500,000 0 0 0 0 50 000 200 000 250 000 500 000 N 12 DR03-04. Slormwater al Laurel & US101 500,000 500,000 0 0 0 0 50,000 '.200,000 250 000 500 000 N 13 DR02-04 Upper Golf Course Rd. Area Slormwater 500 000 500,000 0 0 0 0 50 000 . 200 000 250 000 500 000 N 14 DR03-99 Milwaukee Dr. Slormwater Imorovements 1 200 000 1 200,000 0 0 .0 0 50 000 150.000 500 000 700 000 . N 15 DR01-01 First St. Stormwater Separallon 250,000 250,000 0 . 0 0 0 .0 0 50,000 50,000 Y STORMWATER PROJECTS \'. TOTAL OF MANDATED STORMWATER PROJECTS TOTAL OF ALL STORMWATER PROJECTS ~ . ';''<' . Noycmbri.4ti. 2003 City Couna1 RE: S'~\valcr Ulilily, FOnnBlion P8ic.I?:>-' . . .. ::if'. :! ~ '0'. . . I I. ST~~ATERPROJECTMATJUX ., '": I . .' Estimated ProJec:t Type . I !. ! Project Cost . j : Ecoa. I ",' ;FJoodinl , .cso . Otber I Red. . Dev. ~ &. Eros. ! . : i 'j '..L'X : $500,000. X I l . '.. .. I ~ $500,,000. X I /. I . ! I I : $500,000. ! l X .,. ! . X'. . i '$500,000. " X ! .. X . . I I ~ $500,000. . 'X I .X I . ,.t. . . ; $ I 00,000 ea. X ;. i :x . ~ $~SO,OOO .i . I X .' X. i '. . : ., J . I ~ $500,000.. ~ ~ .X "j 1 i $200 000.... X i X . , 1 $100'000" X !.' ! ' . I "i" ; $250,000" .X I ! . .r~ :$400,000. . .X i' ! I ; $800,000. I X , . . . ~ $500,'000. X ; $300;000 X : $100,000 X ~ $50,000/yr X X --- $50,000 X ---..-. j. l : i ;. I . i ., . ! ./ . I" i.b~J'& us 10] ., 1 i ~~y~ 'Edge & Ahlvers' I i Ro~ClthistJe area . . i CanipbelllPOT.leJ"'Area : ," . . ! {. r .C" Street Exu;nsion Area I! ..' .' .' j ! Over Bluff .Disch. (N; 1011I, P, McD) I I. .' j ; Lincoln ParkIBig BoY Pon:d" . i '. I. ! Downtown.eSo L t.. j i'.LinColn StOnD 411I - 6th . i Li~coJn' Stonn 6rb _7th . Project Description. i AJbertlEumce Stonn I .,' i 10-" &: Milwaukee Area . .. : Milwaukee ~"P" Area. I ; ! Upper Golf Course Road Area ;' .~ 011I &."N" ReBionaJ Dele~tjon I ; Uncoln Street .CuJven Repairs . ~ ( City's Share) . . Street Outfalls 10 StreamslMarine . Stream RehabiJitation (Malching $) . .. PlacehoJderEElimateE until Preliminary EnEinec:nnE can be completed uCSO related work can be funded fully or paniaJly from Wastewater Fu~d