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HomeMy WebLinkAboutAgenda Packet 08/14/2012Utility Advisory Committee Council Chambers August 14, 2012 3:00 PM AGENDA I. Call To Order II. Roll Call III. Approval of Revised Minutes for June 12, 2012 and Minutes for July 10, 2012 IV. Late Items V. Discussion Items: A. Stormwater Utility Presentation Low Impact Development (verbal report only) Department of Ecology FY 2012 Stormwater and Low Impact Development Grant Acceptance for 4 Street Stormwater Improvement Project (DR03- 2009). Stormwater NPDES and Capital Needs Assessment (information only) Western Washington Phase II Municipal Stormwater Permit Renewal Considerations (verbal report only) B. Electric Utility 2012 Resource Plan C. Morse Creek Hydroelectric Project Status VI. Information Only Items: A. Bonneville Power Administration Cooperative Agreement 48475 Modification #3 (verbal report only) B. Advanced Metering Infrastructure System Update (verbal report only) C. Wireless Mobile Data System Update (verbal report only) VII. Next Meeting Dates: September 11, 2012 VIII. Adjournment N: \uac \final \081412 UAC Assigned Councilmembers Present: Other Councilmembers Present: Other Councilmembers Absent: Utility Advisory Committee Members Present: Utility Advisory Committee Members Absent: Staff Present: Others Present: III. Approval Of Minutes Utility Advisory Committee /Special City Council Meeting Council Chambers Port Angeles, WA 98362 June 12, 2012 2:00 p.m. L Call To Order Chairman Dan DiGuilio called the meeting to order at 2:02 p.m. IL Roll Call Cherie Kidd, Dan Di Guilio, Brooke Nelson (2:30) Patrick Downie Brad Collins, Max Mania, Sissi Bruch PhD 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 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. Brooke Nelson 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 Utility Advisory Committee /Special City Council Meeting Council Chambers Port Angeles, WA 98362 July 10, 2012 3:00 p.m. I. Call To Order Chairman Dan DiGuilio called the meeting to order at 3:02 p.m. IL Roll Call UAC Assigned Councilmembers Present: Cherie Kidd, Dan Di Guilio, Sissi Bruch, PhD. Other Councilmembers Present: Patrick Downie, Max Mania (3:16) Other Councilmembers Absent: Brad Collins, Brooke Nelson Utility Advisory Committee Members Present: Utility Advisory Committee Members Absent: Staff Present: III. Approval Of Minutes Paul Elliott, Dean Reed Murven Sears II Dan McKeen, Glenn Cutler, Bill Bloor, Larry Dunbar, Phil Lusk, Sondya Wray, Bob Kajfasz, Terry Gallagher, Byron Olson, Rick Hostetler (3:33) Mike Puntenney (4:25), Kathryn Neal (4:25) Others Present: Karen Tharaldsen, Bob Dunlap MANNA Chairman Dan Di Guilio asked if there were any corrections to the minutes of June 12, 2012. Sissi Bruch announced that the minutes included her and she was not available for the June meeting. The minutes were left unapproved until the next meeting. IV. Late Items: The following items were added to Section V of the agenda as discussion items "F" and "G F. CSO Phase II Design Amendment 15 to Brown and Caldwell CSO Professional Services Agreement. G. Morse Creek Hydroelectric Project Update V. Discussion Items: 1 A. Energy Conservation Program Annual Report Bob Kajfasz, Commercial Energy Analyst, provided a PowerPoint presentation on the annual energy conservation report. The presentation summarized the city's participation in the Bonneville Power Administrations 2010 -2011 Conservation Rate Credit program. A discussion followed. For information only, no action required. B. Wireless Mobile Data System Acquisition and Integration Agreement Amendment No. 1 Terry Gallagher, Police Chief, discussed an additional grant award for the Wireless Mobile Data System Acquisition Integration Agreement. The additional grant is from the Federal Emergency Management Agency for in -car cameras for public safety. There was a brief discussion. Cherie Kidd moved to recommend City Council to approve and authorize the City Manager to sign Amendment No. 1 to the Wireless Mobile Date 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. Dean Reed seconded the motion, which carried unanimously C. Electric Utility 2012 Resource Plan Phil Lusk, Power Resource Manager, reviewed the City's schedule to update the Resource Plan to maintain compliance with an unfunded Washington State mandate for electric utilities. A discussion followed. Dean Reed moved to recommend City Council to proceed with a public hearing on the Resource Plan. Paul Elliot seconded the motion, which carried unanimously. D. Ode to the Columbia River (5- Minute video only) Larry Dunbar, Deputy Director of Power and Telecommunications Systems, shared that 2012 marks the 75 anniversary of the Bonneville Power Administration, and a short video in celebration of the event was viewed. E. Utility Discount Ordinance Amendments Recommendation Larry Dunbar, Deputy Director of Power and Telecommunications Systems, discussed the public hearing comments in relation to the proposed utility discount ordinance amendments. A lengthy discussion followed. The Utility Advisory Committee informally provided guidance to the City Council to continue the public hearing, close the public hearing, and adopt the proposed utility discount ordinance amendments including: availability only through the Electric Utility, removing the senior and disabled requirements, and discontinue the 5% and 10% discounts. 2 VIII. F. CSO Phase II Design Amendment 15 to Brown and Caldwell CSO Professional Service Agreement Mike Puntenney, P.E., City Engineer, reviewed Amendment 15. Brown and Caldwell has completed the design of Phase 1 and Phase 2 preliminary design is included in the 2006 General Sewer Facility Plan. Combined Sewer Overflow Phase 2 project design is scheduled to begin. Information only. No action taken. G. Morse Creek Hydroelectric Project Update Glenn Cutler, P.E., Director of Public Works and Utilities, shared that a cost estimate of $80,000 was received to replace the generator bearings and replace a failed valve. Due to economics and the age and condition of the project staff plans to return to the Utility Advisory Committee next month to further consider retirement of the facility. Information only. No action taken. VI. Information Only Items: A. Utility Rate Studies Calendar Information only. No discussion or action taken. B. Bonneville Power Administration Pre Payment Program Information only. No discussion or action taken. C. Advance Metering Infrastructure System Update (verbal report only) Information only. No discussion or action taken. D. Wireless Mobile Data System Update (verbal report only) Information only. No discussion or action taken. E. Bonneville Power Administration Administrator Retires (resignation only) Information only. No discussion or action taken. VII. Next Meeting Date: August 14, 2012 Adjournment: 5: p.m. Cherie Kidd, Mayor Sondya Wray, Administrative Specialist 3 PORTANGEL W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: August 14, 2012 To: Utility Advisory Committee From: Kathryn Neal, P.E., Engineering Manager Subject: Department of Ecology FY 2012 Stormwater and Low Impact Development Grant Acceptance Summary: In May 2012 the Department of Ecology offered the City a Stormwater Retrofit and Low Impact Development grant in an amount of up to $1,000,000 for the 4 Street Stormwater Improvement Project, DR03 -2009. The offer was a result of a legislative provision in the State's 2012 Supplemental Capital Budget. Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to sign the grant agreement with the Department of Ecology under the FY2012 Stormwater Grant Program in the amount of up to $1,000,000, and to make minor modifications to the grant agreement, if necessary. Background/Analysis: The original 4th Street Stormwater Improvement Project, DR03- 2009, was used to control flooding in an established Port Angeles neighborhood. Design was initiated in 2010 using PACE Engineers. The original design concept included concentrated Low Impact Development (LID) features and other stormwater retrofits largely designed for flood control. The concepts that were developed were met by resistance from the 4th and H neighborhood due to a number of concerns. Additionally, because it was predominantly a flood control design, it was not competitive for a Stormwater Retrofit and LID grant. In May 2012, the Department of Ecology notified the City that it would be eligible for a Stormwater Retrofit and LID grant in an amount of up to $1,000,000. The offer was a result of a legislative provision in the State's 2012 Supplemental Capital Budget. This grant is restricted to water quality improvements to stormwater systems by using green infrastructure retrofits as opposed to the larger pipes or an outfall. Since the grant notification, City Staff and PACE have worked on a new concept that focuses on meeting the green infrastructure /LID objectives of the grant and that responds to concerns that were expressed by residents. The raingardens will no longer be concentrated, but rather dispersed in or near street intersections, so as to minimize impacts to parking and access, and to also provide N: \UAC\Final \DOE 2012 Stormwater r Retrofit and LID Grant Acceptance.docx DOE 2012 Stormwater Retrofit and LID Grant Acceptance.docx May 13, 2008 Page 2 traffic calming benefits. This new concept has been presented to the Department of Ecology and it has been determined that it does meet the requirements of the grant. Staff and Ecology have negotiated a final funding agreement based on the grant criteria and on a modification of the project design. While the new concept is focused on meeting the grant's green infrastructure intent, it will have a complimentary benefit of reducing or alleviating the flooding risk to that area by detaining water from storms. In addition, the project is including separate funding for some limited additional flood mitigation improvements. It is noted that the PACE design contract will need to be amended in order to go to full design for the new concept. Grant eligible project costs may be incurred beginning May 1, 2012. The grant requires matching funds from the City equal to at least 25% of the eligible project cost. To utilize the entire potential grant amount the City must contribute $333,333.33 for the design and construction of the bio- retention raingardens. No in -kind match is allowed. The match funding of $333,333 and additional funding for flood mitigation in the amount of $108,500 is available from existing CFP stormwater project balances in the Stormwater fund. It is recommended that the Utility Advisory Committee forward a favorable recommendation to the City Council to authorize the City Manager to sign the grant agreement with the Department of Ecology under the FY2012 Stormwater Grant Program in the amount of up to $1,000,000, and to make minor modifications to the grant agreement, if necessary. P ORT A NGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: August 14, 2012 To: Utility Advisory Committee From: Kathryn Neal, P.E., Engineering Manager Subject: Stormwater NPDES and Capital Needs Assessment Summary: The City retained Herrera Environmental Consultants to complete a comprehensive study of the Stormwater Utility. The primary goal was to develop a functional resourcing and financial analysis of the staffing, equipment and funding mechanisms necessary to meet the requirements outlined in the State's existing and pending renewal for the NPDES Phase II Municipal Stormwater Permit. Herrera and City staff will present the findings of the study. Recommendation: For information only, no action requested. Background/Analysis: In August 2011, the City retained Herrera Environmental Consultants to complete Stormwater NPDES and Capital Needs Assessment Study (Gap Analysis). The primary goal was to develop a functional resourcing and financial analysis of the staffing, equipment and funding mechanisms necessary to meet the requirements outlined in the State's existing and pending renewal for the NPDES Phase II Municipal Stormwater Permit. To accomplish this, the first task was to gather data and characterize the existing stormwater program, and to assess the City's current Stormwater Management Plan. The second task was the regulatory gap analysis to review the required regulatory responsibilities and associated deadlines over the next five year Permit term, and to assess gap between the City's current resources and the resources needed to meet those responsibilities. The final step is to perform a financial analysis and create funding recommendations for both the regulatory and capital programs. Herrera and City staff will present the findings of the gap analysis and financial analysis, including Existing stormwater program Capital Facilities Plan Impact of Permit requirements At the conclusion of the subject topic, the City Manager and City Attorney will lead a discussion on the efforts of a number of communities considering the formation of a coalition to challenge some of the conditions of the reissued NPDES Phase II Stormwater Permit. This item is for information only but with a potential of the subject being brought to the August 21 Council meeting for consideration. N \UAC\Final \Stormwater NPDES and Capital Needs Assessment.docx pORTjNGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: August 14, 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 a Washington State unfunded mandate to update its 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 Resource Plan after it has provided public notice and hearing. Recommendation: Forward a favorable recommendation to City Council to pass a resolution to approve the Electric Utility 2012 Resource Plan. Background/Analysis: As previously presented to the Utility Advisory Committee on July 10, 2012, the electric utility is required by RCW 19.280.030 to update its 2008 Resource Plan (Plan) which must be submitted to the Washington Department of Commerce (Commerce) by September 3, 2012. The Plan's purpose is to assure that our future resources are adequate to meet our projected loads especially as the Bonneville Power Administration (BPA) makes major changes in its energy charges. While the proposed Plan is not a legally binding document, it describes the current as well as estimated future power loads and resources for 2017 and 2022 time periods. The proposed Plan is publically available on the City's website. Staff will present the proposed Plan that incorporates the City Council 2011 decision to remain a "full requirements" customer of the BPA through September 2019. The Plan also recommends that the City Council give serious consideration to increasing the level of energy efficiency and demand response measures to postpone the likelihood of future Tier 2 power supply purchases. Staff will also summarize the comments received at the August 7, 2012 City Council public hearing. The City's energy future is essential to our community's economic health. The City has long benefited from having access to low -cost electricity from the Federal -Base System. However, as the world and the energy industry change, the City faces a potentially serious threat to its economy in the form of rising wholesale electricity costs. For Port Angeles, 67% of the money spent on retail power immediately leaves our local economy. With minimal downside risk, developing a Plan that will increase energy efficiency and demand response will help to protect the economy from rising energy costs, keep more dollars circulating in the region and in turn, may increase the number of jobs that stay in our community. Attachment: Proposed Resolution N \UAC \Final\Electric Utility 2012 Resource Plan docx Legal Draft 07.24.12 RESOLUTION NO. A RESOLUTION of the City Council of the City of Port Angeles, Washington, approving the 2012 Electric Utility Resource Plan. WHEREAS, the City strives to ensure that its citizens have reliable access to electricity resources adequate to meet their projected loads; and WHEREAS, the City must submit an Electric Utility Resource Plan to the Washington Department of Commerce by September 3 2012 as required by RCW 19.280.030; and WHEREAS, the 2012 Electric Utility Resource Plan is consistent with the City's existing energy conservation programs operated in cooperation with the Bonneville Power Administration, and the Electric Power Plan adopted by the Northwest Power and Conservation Council; and WHEREAS, on February 7, 2010 the City Council of the City of Port Angeles adopted Ordinance No. 3391 to create a Conservation and Renewable Energy Program fund for acquiring cost effective energy conservation measures, renewable energy systems, and distributed generation resources; and WHEREAS, RCW 19.280.030 requires the City to regularly update its Electric Utility Resource Plan at minimum intervals of every two years; and WHEREAS, the City Council of the City of Port Angeles Washington, being the governing body of the consumer -owned electric utility did, after public notice, hold public hearings on the 7th of August 2012 and the 2 1 of August 2012 to provide the public the opportunity to comment on the 2012 Electric Utility Resource Plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Angeles Washington that the 2012 Electric Utility Resource Plan as prepared by the Director of Public Works and Utilities an d attached hereto as Exhibit A be approved; and -1- Legal Draft 07.24.12 BE IT FURTHER RESOLVED that the 2012 Electric Utility Resource Plan, together with this Resolution, shall be electronically filed (through the Internet) with the Department of Commerce of the State of Washington (no later than the 3rd of September 2012) and also be published and made available to the public through the City of Port Angeles website. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the 21 day of August 2012. A`I1133ST: 13y: Janessa Hurd, City Clerk APPROVED AS TO FORM: 13y: William E. Bloor, City Attorney Cherie Kidd, Mayor U \LEGAL\a ORDINANCES& RESOLUTIONS \RtiSOLUTtONS.20I2 \17 Council 2012 Resource Plan Rcwlwion.docx PORTANGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: August 14, 2012 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power and Telecommunications Systems Subject: Morse Creek Hydroelectric Project Status Summary: Staff is seeking a recommendation from the Utility Advisory Committee to determine if the Morse Creek Hydroelectric project should continue to be operated or if retirement should be considcred. Recommendation: Consider retirement of the Morse Creek hydroelectric facility based on an economic analysis that would be prepared by staff evaluating the cost of continued operation and permanent closure. Staff shall return to the Utility Advisory Committee after the analysis is completed. Background /Analysis: On June 12, 2012, staff updated the Utility Advisory Committee on the cost of operating and maintaining the Morse Creek Hydroelectric project. It was pointed out that the modifications to the Supervisory Control and Data Acquisition System have not yet been accepted and during testing it was discovered that the bearings on the generator may require replacement. At that time the Utility Advisory Committee asked staff to return with additional information after the cost of repairs was estimated. On July 10, 2012, staff shared that a cost estimate totaling $100,000 was received for repairs necessary to enable operation. Staff recommended that due to the repair costs and future operating risk that retirement of the hydroelectric facility should be considered at the August meeting of the Utility Advisory Committee. Since the July meeting staff notified stakeholders about possible retirement of the project and requested they share their needs and interests. At today's meeting staff will summarize the stakeholder needs and interests. Staff will also seek a recommendation from the Utility Advisory Committee to either continue to operate or consider retirement of the Morse Creek Hydroelectric facility. Continuing the operation will require $100,000 in repairs, which has a 0.5% rate impact. If this option is selected staff will proceed with competitive bidding and return to the Utility Advisory Committee and City Council to award the repair project to the successful vendor. N• \UAC\Final\Morse Creek Hydroelectric Facility Status.docx Morse Creek Hydroelectric Facility Status August 14, 2012 Page 2 The first step to consider retirement of the facility should be staff preparation of a thorough economic analysis comparing the cost of continued operation and permanent closure. Staff would strive to complete the economic analysis over the next month so that it could be presented to the Utility Advisory Committee at their next meeting. If the result of the economic analysis indicate the least cost approach is to continue to operate the facility, with the concurrence of the Utility Advisory Committee, staff would proceed with competitive bidding and return to the Utility Advisory Committee seeking approval to award the repair project to the successful vendor. If the economic analysis indicates that continued operation of the facility is not the least cost approach, staff would request consulting services from the Western Public Agencies Group and EES Consulting be considered by the Utility Advisory Committee. The consulting services would be necessary to remove the facility from the Power Sales Agreement with the Bonneville Power Administration by an amendment. After an amendment to the Power Sales Agreement is complete, all stakeholders would be formally notified about the retirement, the operating license and other agreements would either be amended or terminated as necessary and appropriate, and actions would be completed to permanently shut down some or all components of the facility. Staff predicts that from beginning to end retirement of the facility will be at least a 2 year effort. July 13, 2012 To All Interested Parties: WASHINGTON, U.S.A. Public Works Utilities Department Due to costs and economic conditions, the City is exploring retirement of the Morse Creek Hydroelectric Facility. The facility has not been operational since April 2012. The City of Port Angeles invites all interested parties to provide written comments on your needs and interests related to retirement of the facility on or before August 6, 2012. Please address,any comments you may have to: Sincerely, Larry Dunbar Deputy Director of Power and Telecommunications Systems ldunbar c eitvoffa.us P.O. Box 1150 Port Angeles, WA 98362 Glenn A. Cutler, P.E. Director, Public Works Utilities Phone: 360 -417 -4800 Fax: 360 417 -4542 Webelte: www.cityofpa.us Etnall: publlcworks ®dtyofpa.us 321 East Fifth Street P.O. Box 1150 Port Angeles, WA 98362 -0217