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HomeMy WebLinkAboutAgenda Packet 09/08/2009 UtIlity AdVIsory CommIttee Public Works Conference Room Port Angeles, W A 98362 September 8, 2009 130pm AGENDA I Call To Order II Roll Call III Approval OfMmutes For August 11,2009 Approval OfMmutes For August 25, 2009 IV Late Items V DIscussIOn Items A Post-Closure Landfill Consultant Agreement Amendment No 1 B BonnevIlle Power AdmmlstratlOn Energy ConservatIon Agreement C BonnevIlle Power AdmmlstratlOn Wholesale Power Rate Adjustments D UtIlity Retail Rate and Fee Adjustments E Northwest Energy EffiCIency Alliance ContrIbutIon F Western Public AgencIes Group Consultmg Agreement Amendment No 1 G BonnevIlle Power AdmmlstratlOn Power Sales Agreement AmendmentNo 1 H TransmIssIOn Agreement for the Morse Creek HydroelectrIc Project I BonneVIlle Power AdmInIstratIOn TIer 2 Power Supply Update VI Next Meetmg Date October 13, 2009 VI Adjournment N \uac\final\090809 UTILITY ADVISORY COMMITTEE 9~ ~q oJ- GUEST SI N UP SHEET PRINT NAME ORGANIZATION -oUl tJ Ii: O. rJ t-L <jo tJ L~P&v to of IV" fMtJ I{ tJr~ N \PWKS\LIGHT\ CONS \ CATE \SrGNDP wpd Uhhty AdvIsory Committee Pubhc Works Conference Room Port Angeles, W A 98362 August 11, 2009 3 00 P m c~~ .,. I. Call To Order Chairman Reed called the meetmg to order at 3 00 P m II. Roll Call Members Present Chairman Reed, Mayor Braun, Dan DI GUlho, Orville Campbell, Karen Rogers (3 09) Members Absent Betsy Wharton Staff Present Kent Myers, DefUlls Dickson, Glenn Cutler, Nathan West, Steve Sperr, Phil Lusk, Cate Rmehart Others Present Ross Tayler - Clallam County Carol Brown - Lower Elwha Klallam Tnbe Happy Longfellow - Parametnx Diane C Nelson - League Of Women Voters III. Approval Of Mill utes Chairman Reed asked If there were any correctIOns to the mmutes of July 14, 2009 Councilman DI GUlho moved to approve the mmutes Orville Campbell seconded the mohon, which carrIed unanimously Mayor Braun abstamed due to absence IV. Late Items: None V. Discussioll Items: A. Lower Elwha Klallam Tribe Valley Access Road - Temporary Easemellt Steve Sperr, Deputy Director of Engmeenng Services, reviewed the memo notmg some concerns m the draft agreement There was a lengthy diSCUSSion Information only. No action taken. B. BOlllleville Power AdmllllstratlOll Wholesale Power Rate Adju!tmellt Phil Lusk, Power resources Manager, adVised that BP A hdd released Its final record of deCISion on wholesale power rates and that the City had been prOVided With a new "stepped-rate" opllon A dIScussIon followed More InformatJon wIll be brought to the UAC at a further date shoWIng altematJves Information only. No action taken. VL Meeting was continued until August 15,1009 at 10:00 a.m. Vll. Adjournment: The meetIng was adjourned at 4 14 p m ChaIrman Reed Cate RInehart, AdmIn Spec 11 b~-4J:-,. Utlhty AdvIsory Committee - Continuation From August 11, 2009 Pubhc Works Conference Room Port Angeles, W A 98362 August 25, 2009 1000 am I. Call To Order Chairman Reed call the meeting to order at 10 05 a m II. Roll Call Members Present Chairman Reed, Mayor Braun, Dan 01 Gmho, Karen Rogers Members Absent Betsy Wharton, OrvIlle Campbell Other Council Members Present Chene Kldd Staff Present Kent Myers, Btll Bloor, Glenn Cutler, Cate Rinehart Others Present Carol Brown - Lower Elwha Klallam Tnbe Happy Longfellow - Paramtnx Steve Shager - General Counsel, Lower Elwha (10 19) It was noted that Mayor Braun would take the place of Betsy Wharton and Chene Kldd would be an observer only Ill. Late Items: September 8, 2009 Agenda IV. D,scussion Item: A. Lower Elwha Klallam TrIbe Valley Access Road - Temporary Easement Glenn Cutler, DIrector of Pub he Works and Utlhtles drstnbuted several handouts reviewing the contents WIth the Committee These Included a Memo of Understanding e-maIl from the County, ReservatIOn of Rights to the CIty, and a draft Easement Agreement Carol Brown, Lower Elwha Klallam Tnbe, dlstnbuted a map and legal descnptlOns of the areas Involved There was a lengthy dISCUSSIOn Staff was requested to try to obtain a formal Memo of Understanding from the County CommissIOners Information only. No action taken. B. September 8, 2009 Agenda Glenn Cutler, Director ofPubhc Works, advised that due to the number of Items hsted the meetmg the tIme should probably be changed to accommodate them all A special meet1l1g will beg1l1 at 1 30 P m wIth the regular meet1l1g start1l1g at 3 00 P m V. Next Meeting Date: September 8, 2009 VI. AdJoumment: The meet1l1g was adjourned at 11 56 am ChaIrman Reed Cate R1l1ehart, Adm1l1 Spec IT N IPWKSILlGHTlCONSICA TElauguslll meet wpd Date: To: From: Subject: ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo September 8, 2009 Utility Advisory Committee Kathryn Neal, P E, Engmeenng Manager Post-Closure Landfill Consultant Agreement Amendment No I Summary: In October 2008 the City entered mto an agreement with Aspect Consultmg to provide engmeenng services m support ofthe Port Angeles Landfill Post-Closure Permit reqUirements It IS necessary to amend the agreement to cover unforeseen costs for 2009, add tasks and extend the agreement through 20 I O. Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor to sign Amendment No.1 to the Consultant Agreement with Aspect Consulting for Landfill Engineering in an amount not to exceed $12,000 in 2009 and $115,100 in 2010, which increases the maximum compensation under the agreement from $58,000 to $185,100, and authorize the City Manager to make minor modifications to the agreement, if necessary. Background/Analysis: The thirty-year post-closure phase ofthe Port Angeles Landfill (Landfill) began m 2008, after the last two cells of the landfill were covered and the seawall at the beach was constructed m 2007 Management of the Landfill IS regulated through the Solid Waste Post- Closure Permit (SLW08-0001) Issued by Clallam County Environmental Health Services (CCEHS), workmg m close cooperatIOn With Washmgton Department of Ecology (DOE) The Permit covers the enure Landfill, and addresses the different regulatIOns that pertamed at the time to the particular parts of the landfill that were m operatIOn The Permit was Issued on August 29, 2008 and was amended on Apnl 15, 2009 With thiS new post-closure phase, additIOnal groundwater wells were added along the beach, and new reqUirements were established for momtonng the seawall and beach morphology Groundwater and leachate momtonng was required by CCEHS and DOE at the Landfill m the past, and associated sampling, analYSIS, and documentatIOn contmues under the new permit In addluon, there are vanous annual reqUirements for surface water quality, air quality, mmlmlzmg explOSive gases, bird control, and documentatIOn of mspectlOn and mamtenance actlvlues In October 2008 the City entered mto an agreement With Aspect Consultmg to prOVide engmeenng services m support of Post-Closure Permit reqUirements Costs mcurred thiS first year of the permit have exceeded the esumated amounts, m part because CCEHS and DOE permit reqUirements were mcreased when the Post-Closure Permit was amended m Apnl 2009, and thiS was the first year of complymg With all annual permit reqUirements Post-Closure Landfill Consultant Agreement Amendment No September 8, 2009 Page 2 Amendment No I IS mtended to cover additional costs, and extend the consultant agreement through 2010 The tasks to be accomphshed m 20 I 0 are similar to the 2009 reqUirements, except that a macro-algae survey IS reqUired m 20 I 0 Budgets for the 20 I 0 groundwater momtonng reports have been adjusted consistent with the 2009 expenence A summary of the ongmal and proposed tasks and budgets under the agreement and amendment No lis attached for more mformatlOn A descnptlOn of the proposed tasks IS also mcluded m the attachment Fundmg for the proposed amendment IS available from the Sohd Waste Landfill Post-Closure Fund The notice to proceed for 2010 work Will not be Issued unttl after approval ofthe City'S 2010 budget It IS requested that the UtIhty AdVisory Committee forward a favorable recommendatIOn to City Council to authonze the Mayor to Sign Amendment No. I to the Consultant Agreement with Aspect Consultmg for Landfill Engmeenng m an amount not to exceed $12,000 m 2009 and $115,100 m 2010, which mcreases the maximum compensatIOn under the agreement from $58,000 to $185,100 Attachment Summary of ongmal and proposed tasks and budgets and a descnptlOn of the proposed tasks Summary of Tasks and Budgets for Amendment No.1 Task Original Amended Proposed Total No Description Amount 2009 2010 Amended Budget Budget Amount 11 Groundwater MomtorlnQ Reports 111 Biannual Reports $6,500 $17,100 $9,000 $26,100 112 Annual Groundwater Report $13,500 $23,800 $19,600 $43,400 113 2008 Seawall FlUid Report $8,000 $8,000 $7,500 $15,500 Seawall Momtorlng Report and 12 Beach MomtorlnQ 121 AnalysIs of data $9,000 $9,800 $5,000 $14,800 123 Annual Beach Morphology Report $8,000 $10,300 $8,000 $18,300 2 Maintenance Support $13,000 $1,000 $5,000 $6,000 3 Macro-Algae Survey - - $61,000 $61,000 Totals $58,000 $70,000 $115,100 $185,100 Description of Proposed Tasks for Amendment No.1 Task 1 1 Groundwater Momtonng Reports Biannual Reports are due 60 days after samples are taken m the Spnng and Fall A second biannual report IS a new reqUirement from the County that was not ongmally mcluded m the Post- Closure Permit The Annual Report IS due m Apnl of each year, and documents all samples, analyzes results, and makes recommendatIOns to preserve environmental quality and responsibly manage the landfill The cost over-runs for these reports were due to a new analytical lab for the second report and lengthy QNQC of the lab data, additIOnal analyses mvolvmg the tlmmg of sampling at the new beach wells to mlmmlze the tidal seawater mfluence, and time reqUired to respond to DOE comments The 2008 Seawall FlUid Report analyzed the flUid that collects behmd the wall above the beach Based on the sample results another round of sampling was done m 2009 and a 2009 Seawall FlUid Report Will be produced m 2010 Task 1 2 Seawall Momtonng Reports and Beach Momtonng Two technical memos analyzed beach transect data taken m November 2008 and May 2009 Comments from DOE have not yet been received on the Annual Beach Morphology report Site mspectlOns and survey work were not a part of the ongmal scope of the agreement, but are needed to complete the reqUired Report Task 2 Mamtenance Support No charges to thiS category yet Beach Nounshment m front ofthe seawall IS reqUired m 2009, and staff IS completmg the deSign and permlttmg With mlmmal assistance from the consultant to compensate for the extra consultant effort reqUired to complete the Groundwater Reports Task 3 Macro-Algae Survey A macro-algae survey IS reqUired m 20 lOA baseline macro-algae survey was done m 2006 and the permit reqUires post-closure surveys to be completed m 2010 and 2012 FORTANGELES WAS H J N G TON, USA Utility Advisory Committee Memo Date: September 8, 2009 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Bonneville Power AdmmlstratlOn Energy ConservatIOn Agreement Summary: The Bonneville Power AdmmlstratlOn offered an Energy Conservation Agreement to the City The proposed agreement covers a five-year penod, allows a smooth transitIOn between Bonneville Power AdmmlstratlOn rate pen ods, and would provide additional fundmg to the City for local conservatIOn efforts Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor to accept the Energy Conservation Agreement with the Bonneville Power Administration. Background/Analysis: The Bonneville Power AdmmlstratlOn (BPA) offered the City a new Energy ConservatIOn Agreement that covers a five-year penod that comcldes with the Northwest Power and Conservation COunCIl'S 6th Power Plan The proposed Agreement would provide a smooth transItion for conservatIOn activIties between BP A rate penods by provldmg fundmg m the event the conservatIOn rate credit Isn't available The proposed agreement replaces the ConservatIOn AcqUiSItion Agreement The proposed Energy ConservatIOn Agreement IS optIOnal and If the City wants to participate It must be accepted by September 30, 2009 If the City accepts the agreement BP A would prOVide an additional $60,000 for local conservatIOn efforts ThiS amount IS m addition to the BP A fundmg prOVided through the conservatIOn rate credit Staff recommends that the Utility AdVISOry Committee forwards a favorable recommendatIOn to City CounCil to authonze the Mayor to accept the Energy ConservatIOn Agreement With the Bonneville Power AdminIstratIOn N \UAC\Fmal\BP A Energy ConservatIOn Agreement doc Date: To: From: Subject: FORTANGELES WAS H I N G TON, U. S. A. Utility Advisory Committee Memo September 8, 2009 Utility Advisory Committee Phil Lusk, Power Resources Manager Bonneville Power AdministratIOn Wholesale Power Rate Adjustments Summary: The Bonneville Power AdministratIOn released Its final record of decIsIOn on wholesale power rates The City was offered a new "stepped-rate" optIOn to Implement half of the rate Increase thiS October and the remainder next October Recommendation: Forward a favorable recommendation to City Council to accept the Bonneville Power Administration's posted wholesale power rates. Background/Analysis: On July 21,2009, the Bonneville Power AdministratIOn (BPA) released ItS final record of deCISIOn on wholesale power rates, which Included a regIOnal "average" rate Increase of around 7%. Staff estimates the posted wholesale power rate will Increase the City'S total cost ofBPA purchases by roughly $1,884,000/year The BPA will Implement ItS posted wholesale power rate Increase on October 1,2009, which will remain In effect through September 2011 BPA IS providing the city a new wholesale power "stepped-rate" optIOn, where the City could Implement half of the rate Increase thiS October and the remainder next October ThiS optIOn Includes the BP A's time value of money and should result In similar total revenues to the BPA Staff consulted with the City's lndustnal TransmissIOn rate class customer on thiS matter, which represents about 60% of City wholesale power purchases The BP A used a 4 7% discount rate In calculating the time value of money for the stepped-rate option The stepped-rate optIOn may be preferable If I) the City had an alternative short-term Investment opportumty With a Yield greater than 4 7%, 2) the City did not have adequate cash reserves, or 3) It was preferred by the City'S lndustnal TransmiSSIon rate class customer The Electnc Utility cost of service study, which Included the estimated retail rate Impacts of the wholesale power rate Increase, confirmed that the City would Incur higher wholesale power costs under the stepped-rate optIOn. If the City selects the stepped-rate optIOn, a commitment to the BP A must be made no later than September 18, 2009 and an amendment to the Power Sales Agreement would be reqUired Staff requests that the Utility AdVisory Committee forward a favorable recommendatIOn to City CounCil to accept the Bonneville Power AdministratIOn's posted wholesale power rates N \UAC\Fmal\BP A Wholesale Power Rate Adjustments doc Date: To: From: Subject: ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo September 8, 2009 Utility Advisory Committee Larry Dunbar, Deputy Director of Power Systems Ulihty Retail Rate and Fee Adjustments Summary: Dunng the last year FCS Group completed comprehensive rate studies for the Electnc, Water, Wastewater, Sohd Waste CollectIOn and Transfer Stalion ulihlies A presentalion Will be made at today's meetmg on the recommended retail rate and fee adjustments Recommendation: Forward a favorable recommendatiou to City Council to proceed with a public hearing on utility rate and fee adjustments for the Electric, Water, Wastewater, Solid Waste Collection, and Transfer Station Utilities. Background/Analysis: Dunng the last year, FCS Group completed comprehenSive rate studies for the Electnc, Water, Wastewater, Sohd Waste CollectIOns, and Sohd Waste Transfer StatIOn ulihlies The studies for Water, Wastewater, Sohd Waste CollectIOns and Transfer StatIOn ulihlies were completed a year ago and staff will present thiS year's rate study update The comprehenSive rate study for the Electnc Ulihty was recently completed by FCS Group and staff Will present ItS findmgs and recommendatIOns Followmg a presentatIOn, staff will seek the recommendalion ofthe Ulihty AdVISOry Committee to City Council to proceed with a pubhc heanng on the ulihty rate and fee adjustments for the Electnc, Water, Wastewater, Sohd Waste CollectIOn and Transfer StatIOn Ulihlies The proposed City Council pubhc heanng IS October 6, 2009 for a presentatIOn of the rate studies and to allow pubhc mput to the process after the presentatIOn The pubhc heanng would be contmued to October 20, 2009 at which lime the pubhc heanng Will be closed Staff will return to the Ulihty AdVISOry Committee on October 13,2009 requestmg a recommendatIOn to City CounCil to adopt rate and fee ordmance amendments The proposed rate and fee adjustments for each ulihty would be effeclive January 4,2010 N IUACIFmallUtthty Retail Rale and Fee AdJustmenls doc i September 8, 2009 City of Port Angeles Rate Studies for: Electric, Solid Waste Collection, Water, Wastewater, Transfer Station Proposed Agenda 1. Historical Rate Increases 2. Proposed 2010 Rate Increases 3. Proposed 2010 Fee Increases 4. Electric Utility Summary 5 Collection Utility Summary 6. Water Utility Summary 7. Wastewater Utility Summary 8. Transfer Station Summary 1 Historical Rate Adjustments Ubhty 2005 2006 2007 2008 2009 Electnc - Base Electnc - Consum ptJon 65% 59% Storm water 1000% Collections - Weekly Pickup 50% 248% -18% 15% Collections - EOW Pickup -109% 15% Water - Base 40% 30% 190% 190% 70% Water - Consumption 40% 30% 190% 190% 70% Wastewater 43% 48% 53% 21% Wastewater - CSO 1080% 540% 370% 290% Transfer Stanon 50% 50% 145% 75% 105% Blue Mountam 75% 35% 2 Historical Rate Adjustments 2008 1 2007 1 2006 1 2005 1 2004 1 2003 1 2002 1 2001 1 2000 "'8 '22 $217 $72 I SIl, $296 $36 ." "" '" ." ",I 1 "'I 1 I AnnuaIc:ompoum oolll,ncr_Qf5Q% peryear!rQm20001D 2008or23%aboY<t oo""wn....~ ,,"~ $216 $217 I $212 $214 "" $- $500 $1,000 $1500 $2,000 $2,500 Average Annual Cost (based on actual charges, customers, and consumption) eEleclI1c .Water awast-mar OGllrblllgll OCombmed SewerOverllow eStormwalllr 3 2 Proposed 2010 Rate Increases 2010 Proposed FCS 2009 ResIdential Rate Monthly Group Utility Rates Increase Increase Report Electnc - Base $11 00 per month 000% $000 000% Electrrc - Consumption o 0582 per kWh 000% 000 000% Stormwater 6 00 per month 000% 000 N/A Collections - Weekly Pickup 2720 per month 000% 000 350% Collections - EOW Pickup 19 75 per month 000% 000 350% Water - Base 24 65 per month 850% 210 850% Water - Consumptron 1 92 per 100 CF 850% 107 850% Wastewater 38 35 per month 400% 1 50 400% Wastewater - CSO 10 25 per month 30 08% 310 30 08% Average Customer Total $19823 per month 392% $777 Without CSO 248% $467 4 Proposed 2010 Rate Increases 2010 FCS 2009 Rates Proposed Increase Group Transfer Statton (perton) Rate Increase (perton) Report Transfer Station - Collection Entities $9135 450% $411 1050% Transfer Station - Self Haulers $11490 450% $517 1050% Yard Waste - Collection EntitIes $25 75 450% $1 16 1050% Yard Waste - Self Haulers $43 00 450% $194 1050% Blosollds - Collection Entitles $45 00 450% $203 1050% Blue Mountain - Self Haulers $204 65 000% $000 1050% 5 3 Proposed 2010 Rate Increases 2009 2010 FCS Rates Proposed Increase Group Transfer Station (per yard) Rate Increase (per yard) Report Compost 1-3 Yards $20 00 000% $000 1050% Compost 4-49 Yards $17 00 000% $000 1050% Compost 50-99 Yards $1500 667% $100 1050% Compost 100-299 Yards $1400 711% $100 1050% Compost 300 Yards or More $1300 769% $100 1050% Compost 4 Yards or More $1500 000% $000 1050% (Schools, Non-Profit, or Govemmental Agencies) 6 Proposed 2010 Fee Increases Add State/City taxes to utility fees Electric Utility Connection Fees Electncal Perrrllts Pole Attachments Construction ContnbutJon Wastewater Utility Septic Waste Disposal Commercial Leachate Sewer Permits System Development Charge Water UtIlity Connection Fees System Development Charge 7 4 Proposed 2010 Fee Increases Electric Utility 2010 Total 2010 Proposed 2010 Proposed FCSGroup Electnc Utili! 2009 Fees ProOOlled Fee Fee Increase Taxes 2010 ProDosed Electncal WorK Pemllts $9375 $11990 2789% 167% $1566 873% $1049 250% $10941 Pole Attachments $11 50 $1380 2000% 955% $1'0 873% $120 3783% $1585 Construction Contnbutlon Vanes Varies 957% 000% $000 873% Vanes N1A N1A Connection Fees $713 $771 811% 000% $000 750% $5780 750% $771 une extenSions OH & UG\ $410 $443 810% 000% $000 750% $3320 750% $443 8 Proposed 2010 Fee Increases Water Utility 2010 Total 2010 Proposed 2010 Proposed FCS Group Waler Utlhtv. ResldentJal 2009 Fees Pronosed Fee Fee Increase Taxes 2010 Pmnosed ConnectlonS/Blnch $980 $1163 1864% 500% $4900 1150% $13370 2143% $1190 Connecllon3f41nch $980 $1,163 1864% 500% $4900 1150% $13370 2143% $1190 Connection 1 Inch $1060 $1,258 1864% 500% $5300 11 50% $144 60 2170% $1290 5 tem Develo menl $1510 $11061299% 000% $000 11 50% $19620 N1A N1A 2010 Totat 2010 Proposed 2010 Proposed FCS Group Water UIJhlv. Commercel 2009 F.., Proposed Fee Feetncrease Taxes 2010 Pronosed Connection 1 Inch $1515 $1712 1300% 000% $000 1150% $19690 000% $1515 Connection 1-1f21nch $2700 $3203 1864% 500% $13500 1150% $36840 2278% $3315 Connection 2 Inch $2700 $3203 1864% 500% $13500 11 50% $368 40 2278% $3315 9 5 Proposed 2010 Fee Increases Wastewater Utility Wastewater UtJhtv 2010 TotaJ 2010 Proposed 2010 Proposed FCSGroup 2009 Fees Prnnosed Fee Fee Increase Taxes 2010 Pro~ed Sa llc Hauler Fee $70 $80 1429% 120% $084 1150% $916 NfA NfA Sewer Perrmts $135 $155 1481% 160% $216 1150% $1784 NtA NfA Stem Develo menl $1510 $1,706 1299% 000% $000 1150% $19620 NtA NfA 10 Proposed 2010 Fee Increases Service Fees 2010 Total 2010 Proposed 2010 Proposed FCS Group Sel'Vlce Fees 2009 Foes Pro.........ed Fee Fee Increase Taxes 2010Pro~ ElectncUtJh $25 $30 20 00% 650% $163 1137% $338 NtA NfA WaterUbll $25 $30 20 00% 630% $158 1150% $343 NtA NfA Wastewater Ullll 525 S30 20 00% 630% $158 1150% $343 NtA NfA Collection Utility S25 S30 20 00% 200% $050 1510% $450 NfA NfA Se!'V1ce Fee IS ed 10 nol a I to Yard Waste contaIners be and the f1l"ilt container $25 $30 20 00% 430% $1 0811310% $3 93 NtA NfA Transfer Station Utility SeMce Fee IS propsed to also apply to reader card and transponder card replacement not due to nannal wear and tear 11 6 Study Summary Electric Utility 12 Electric Assumptions .2009 Revenues T$1,219K .2009 O&M - T 3, 195K .2010 rate defiCiency 0% .2010 rate adjustment proposed 0% .-7% SPA Wholesale Increase (no step) . Reduction of "Lookback Credit" . No SPA Transmission Increase 13 7 Electric Assumptions -Industrial Transmission Pass-Through -Electric work permit - 2nd of 3rd year cost recovery proposed -Pole attachments - 1 st of 4th year extended cost recovery proposed -No staff additions (2 of 3 crew unfilled) aUght operation facIlity contribution -Additional debt service 14 Electric Assumptions -Rate stabilization adequate -No 2010 COLA -10% Medical/Dental Insurance Increase -Tier 2 expanded conservation program -2011 enhanced revenues due to meter error, shrinkage, meter reading -Street lighting description & master- metered street lights clarifications -2011 economic development State law sunset 15 8 Electric Study Findings Capital Facilities Plan Caoltal Facllltres Plan 2009 2010 Elwha Mitigation 255 - Downtown Upgrades 60 - Upgrade College Substatlon 50 - Laurel Substatron Structure 105 - Replace Cable @ Crabapple Road 50 - Replace Cable In Plaza Mall 90 - Rayonler Transmission Lme Renovation 30 Demand Management Tier 2 GeneratIOn - 30 F Street 1202 Upgrade - 170 WA Substation Transmission llna Renovatr - 200 Cable Restoration Phase II - 100 Morse Creek Hydro Improvements - 75 Advanced Metermg Infrastructure - 2777 SPA Demand Response & Smart Gnd - 500 Total 640 3.852 16 Electric Study Findings Capital Facilities Plan ($1,000) CaPital FacIlities Plan Fundrna Sources 2009 2010 CFP Beglnmng Cash 254 - Other Note Proceeds - 2,777 Department of Energy 500 Cash/Rate Financed ContnbutJon 281 500 Morse Creek Hydro Reserve - 75 Elwha MttlaallOn 105 CFP Endmo Cash - - 17 9 Electric Study Findings With 0% Rate Increase Revenue Requirements ($1,000) Desen tlon 2009 2010 Dlstnbutlon System Sales 17317 17,317 Industnal TransmissIon Sales 11,001 12,375 Permit & Construction Related 338 386 Miscellaneous 247 192 Pole Rental 59 71 Total Revenues 28 962 30,341 Operation & Mamtenance 5,973 6,644 Purchased Generation & TransmissIon 17,235 19,387 Taxes 2,814 2,867 Transfer Payments 352 194 Debt Service 451 565 Matenals - Job Cost 520 520 Total Exoenses 27,345 30177 Revenues Less Expenses 1,617 164 18 Electric Study Findings With 0% Rate Increase Ending Fund Balances ($1,000) T e of Reserve 2009 2010 Target Ending OperatIng Cash Balance 5,712 5,876 2,000 Ending Rate Stabilization Balance - Tier 2 900 900 900 Ending CFP Balance - - - Endmg Morse Creek Hydro Balance 105 30 - Endmg Bond Reserves 173 395 395 Endlna Lloht Ooeratlons Center Balance 536 641 2000 Total Reserves 7425 7842 5,295 19 10 Study Summary Solid Waste Collection Utility 20 Coliection Assumptions - 2009 revenues T $88K -20090&M T$15K - 201 0 rate deficiency 11.9% - 201 0 rate adjustment proposed 0% - No signrflcant growth In 2010 - No 2010 COLA -10% Medical/Dental Insurance Increase -Increased disposal costs 21 11 Collection Study Findings With 0% Rate Increase Revenue Requirements ($1,000) Descnptlon 2009 2010 Residential Weekly 1.199 1.199 Residential Every-Other-Week 770 770 ResIdential Yard Waste 205 205 Commercial 941 941 CommercIal Recyclmg 5 5 Investment Interest 110 77 MIscellaneous Revenues 15 16 Total Revenues 3.245 3.213 O&M 1024 943 Administration & General 452 481 Disposal Charges 954 995 Recyclmg, Yard Waste, ace 588 601 Taxes 366 358 Transfer Payments 150 150 Debt SaMee - - Total Ex enses 3533 3.528 Revenues Less Expenses (289) (315 22 Collection Study Findings With 0% Rate Increase Ending Fund Balances ($1,000) Type of Reserve Endma Operatma Cash Balance Total Reserves I 2009 I 3.152 3,152 2010 I Target t 2.837 I 750 2.837 I 750 23 12 Study Summary Water Utility 24 Water Assumptions -2009 revenues T$61K -20090&M T$51K -2010 rate deficiency 8.3% -2010 rate adjustment proposed 8 5% -New Water Treatment Plant -Water Treatment Plant O&M Fund -PAWTP net cost $273K (6.9% of 8.5%) -No significant growth in 2010 25 13 Water Assumptions -Refunded bond debt service savings -Connection fees - 2nd of 4th year extended cost recovery program - No 2010 COLA -10% Medical/Dentallnsurance Increase - No Rate Stabhzatlon Fund - Additional debt service - Fire hydrant clarification - Leak ordinance clarification 26 Water Study Findings Capital Facilities Plan ($1,000) CaMal Facllltles Plan 2009 2010 Directed Services 85 55 McDougal Pump 40 500 Dry Creek Water Settlement 150 - Computer Maintenance Management System 75 - Design fOf Morse Creek Water Line - 100 Design Phase II TransmISSion Line - 575 Advanced Metenng Infrastructure 1,113 BI-Annual Reolacements 150 150 Total 500 2493 27 14 ,r Water Study Findings Capital Facilities Plan ($1,000) Capital Faclhtles Plan Fundma Sources 2009 2010 CFP Beginning Cash 182 . Other Note Proceeds . 1.113 PWTF Loan Proceeds . 1075 Treatment Plant O&M 75 . Cash/Rate Financed Contnbutlon 243 305 CFP Endlna Cash . . 28 Water Study Findings With 8.5% Rate Increase Revenue Requirements ($1,000) Descnctlon 2009 2010 Imgatlon Sales 121 131 Resldentlal Sales 3.114 3379 CommerCIal Sales 1.354 1.469 PUD Wholesale Sales 260 282 Elwha & Industnal Sates 16 16 Other Fees 83 94 Investment Interest 50 35 Miscellaneous Revenues 305 343 Total Revenues 5,182 5617 O&M 1.856 2145 Admmlstratlon & General 1175 1.172 UtilitIes 209 227 ChemIcals 115 81 Taxes 717 n8 Transfer Payments 422 360 Debt SelVlC8 848 843 Total Ex enses 5343 5606 Revenues Less EXDGnses ~ -161 11 29 15 Water Study Findings With 8.5% Rate Increase Ending Fund Balances ($1,000) Type of Reserve 2009 2010 Target Ending Operating Cash Balance 1,628 1,639 1,250 Ending Rate Stabilization Balance - - - Ending Treatment Plant O&M 7825 7667 7667 Ending Bond Reserves 339 428 428 Endlna CFP Balance - Total EndlnQ Reserves 9,792 9734 9345 30 Study Summary Wastewater Utility 31 16 Wastewater Assumptions 02009 revenues A $360K 020090&M A$139K 02010 rate deficiency 19.8% 02010 rate adjustment proposed 4.0% 02010 CSO adjustment proposed 30.0% oNo significant growth in 2010 oRefunded bond debt service savings oNo 2010 COLA 010% Medical/Dental Insurance Increase 32 Wastewater Study Findings Capital Facilities Plan ($1,000) CaOltal FacIlities Plan 2009 2010 Additional Design for CSO Phase I 1,680 700 Preliminary Septage ReceJVlng StatIon 28 103 Directed SelVlces 60 65 Dry Polymer Feed Replacement 54 0 BI-Annual Line Replacements 275 0 EUGA Cost Settlement 640 0 Plant Headworks Design 25 Carbon Scrubbers for WWTP 53 Waste ActJvated Sludge Thlckenmg 0 105 Sewer Trestle at FranCIS & 8th 0 75 Pump Replacements at PS#3 0 145 Advanced Metenna Infrastructure 0 1.113 Total 2,762 2,359 33 17 Wastewater Study Findings Capital Facilities Plan ($1,000) Capital FaCIlities Plan FundmQ Sources 2009 2010 CFP Beginning Cash Balance 3,703 2,773 Construction Contnbutlon 376 . Other Note Proceeds . 1,113 PWTF Loan Proceeds 1428 595 Cash/Rate Financed Contnbubon . 546 Septic Waste Fund 28 103 CSO Reserve Fund . . CFP EndmQ Cash Balance 2773 2770 34 Wastewater Study Findings With 4.0% & 30.1 % eso Rate Increases Revenue Requirements ($1,000) Descnotlon 2009 2010 Residential 3,158 3,284 Commercial 1,153 1,199 Septic Disposal 326 368 Leachate 139 163 Combined Sewer Overflow 1128 1467 Investment Interest 240 167 Miscellaneous Revenues 249 141 Total Revenues 6,393 6789 O&M 2316 2,383 AdmmlstralJon & General 906 875 Uttlltles 200 205 Chemicals 65 62 Taxes 725 787 Transfer Payments 1195 2068 Debt Service 1123 1290 Total Exoenses 6,530 7,670 Revenues less Expenses (137 1881) 35 18 Wastewater Study Findings With 4.0% & 30.1 % CSO Rate Increases Ending Fund Balances ($1,000) ITvoe of Reserve 2009 2010 Target Ending Operating Cash Balance 2,932 2,051 1,250 Ending Rate Stabilization Balance 1,130 1,130 500 Endmg Combined Sewer Overflow Balance 1,668 3,135 - Septic Waste Cash Balance 298 564 728 Endmg Bond Reserves 583 672 EndlnQ CFP Balance 2773 2,770 - Total Reserves 9383 10,321 2478 36 Study Summary Transfer Station Utility 37 19 Transfer Station Assumptions -2009 revenues T $1, 195K -20090&M T$1,191K -Significantly effected by recession -2010 rate adjustment need 30.0% -2010 rate adjustment proposed 45% -Blue Mountain rate adjustment proposed 0% -No significant growth in 2010 -Planned use of reserves through 2011 -No 2010 COLA 38 Transfer Station Assumptions -10% Medlcal/Dentallnsurance Increase -Reduced long-haul service fees 39 20 Consumer Price Index 300 275 250 --- ---- -- --- ---- -- -- -- -- 225 .../ ~ . . 200 ~ "5 "0 '25 <0" " 1t" ,# # ~ ~ ,- " " " ". f> f> f> f> f> 40 Fuel Price Index 800 700 800 500 . . 400 ~ .E 300 200 '00 ///////////////// -WaslColIstActullis -Wfl$tCoast Precllcbon 41 21 Transfer Station Study Findings With 4.5% Rate Increase Revenue Requirements ($1,000) Descnotlon 2009 2010 Collection Entities 2175 2,272 Self-Haulers 1,269 1,326 Yard Waste & Compost 217 227 Elwha & FEMA 0 0 Intra-Fund Transfers 199 269 MIscellaneous Revenues 623 566 Blue Mountain Drop Box 219 219 Total Revenues 4,483 4,660 O&M 609 601 Administration & General 391 401 Transfer Station Operations 812 849 Long Haul & Disposal 2,015 1,938 Debt SelVlce 753 753 Post-Closure Mamtenance 199 269 Taxes 407 425 Transfer Payments - 337 Blue Mountain Drop 60x. 220 222 Total Expenses 5,406 5794 Revenues Less Expenses (923) (1.135) 42 Transfer Station Study Findings With 4.5% Rate Increase Ending Fund Balances ($1,000) Tvpe of Reserve 2009 2010 Target Endmg Operating Cash Balance 1987 1121 $1 OSM Target Endmg Closure Balance - - - Ending CFP Balance - - - Endlna Post-Closure Balance 3560 3628 $3 62M Target Total Reserves 5,547 4,749 43 22 Study Findings What's Next? -JS'tJAB rccommcndatlon -September 8, 2009 Utility Advisory Committee Meeting -September 15, 2009 City Council sets public hearing -October 6, 2009 City Council public hearing -October 20, 2009 City Council public hearing continuation -Proposed rates effective January 4, 2010 44 23 ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: September 8, 2009 To: Utility Advisory Committee From: Phil Lusk, Power Resources Manager Subject: Northwest Energy Efficiency Alliance Contnbutlon Summary: The Conservation Rate Credit program ends on September 30, 2009 While the amount of unspent dollars m the conservatIOn program's budget has decreased slgmficantly dunng the past SIX months, the City has a chOice on how to deal With the residual balance when the program termmates 1) Return money to the BonneVille Power AdmmlstratlOn or 2) Provide a contnbutlOn to the Northwest Energy Efficiency Alhance supportmg regIOnal energy efficiency programs Recommendation: Forward a favorable recommendation to City Council to authorize a contribution to the Northwest Energy Efficiency Alliance in an amount up to $150,000. Background/Analysis: The current Bonneville Power Admmlstratlon (BP A) ConservatIOn Rate Credit (CRe) program ends on September 30,2009 While the amount ofunobhgated dollars m the City'S conservatIOn program budget has decreased slgmficantly dunng the past SIX months, a chOice must be made on how to deal With the residual balance of$125,000-$150,000 before the CRC program concludes at the end of the month Staff has Identified two speCific optIOns the City could use. 1) Return the money to the BPA, or 2) Provide a contnbutlOn to the Northwest Energy Efficiency Alliance (NEEA) that supports regIOnal energy efficiency programs (please see the attachment for NEEA background mformatlOn) In the event OptIOn liS exercised, the funds would simply revert back to the BP A With no regIOnal or local benefits to the City's conservation program In the event that OptIOn 2 IS exercised, regIOnal benefits Will occur and the City Will be able to claim the contnbutlon amount under the CRC and 75% of the associated energy savmgs would be credited towards the City's upcommg Tiered-Rate High Water Mark If the contnbutlOn IS made, NEEA Will be responsible for fundmg regIOnal energy efficlCncy mltlatlves that result m substantiated energy savmgs NEEA will also be reqUired to provide a report to the City documentmg how the funds were spent no later than October 31,2010 While the speCific dollar amount cannot be prOVided at this time, Staff requests that the Utlhty AdvIsory Committee forward a favorable recommendatIOn to City Council to authonze a contnbutlon to the NEEA m an amount up to $150,000 N \UAC\Fmal\NEEA ContnbutlOn doc -{ -.. NORTHWEST :. ENERGY EFFICIENCY ~~ ALLIANCE OUR HISTORY 11,e Northwesr Energy Efficlency Alliance (NEEA) was founded In 1996 rhrough fundIng provided by Norrhwesr uulmes to encourage the development and adoptIon of energy-efficient technologIes and busmess practices Local unlmes deClded rhar by collaborarIng under rhe banner of NEEA rhey could have a grearer Influence on rhe regIOnal markerplace, helpIng rhem more qUlckly ach,eve rhelt energy effiCiency goals The nonprofit organIzation IS ;upporred by eleemc utilines, Bonneville Power Admullsttanon, Energy Trust of Oregon, state governments, and energy effiCIency mdustry representatIves In Idaho, Montana, Oregon and WashIngron NEEA was founded to complement, not replace, the strong assers of local unhry energy effiCiency programs Through the combmed effort of energy consumers, uulmes, BonnevIlle Power Admmlstratlon and Energy Trust of Oregon, the Northwest IS vIewed as a nanonalleader In energy effiCIency WHAT IS ENERGY EFFICIENCY? Energy effiCIency IS slmply USIng energy more efficlenrly- gettmg more out of the same kilowatt-hour of electnclty While OUf own energy use IS somethmg we often take for granted, the production of energy has sOCietal costs and environmental Impacts Us10g products and servICes that employ energy-efficIent technologies IS a way every person and bus10ess can reduce those Impacts, lower energy bills, and 10 many cases, Increase the productIVIty, comfort and hvabIl1ry of rhe home or workplace WHY SHOULD WE INVEST IN ENERGY EFFICIENCY? SavIng a kllowarr-hour of electrIcity rhrough energy effiCIency IS the most cost-effeCtive way to meet the growmg demand for energy In the regIon The alternatIve IS buddmg new power plants and chstrIbunon hnes Energy effiaency IS also rhe most fiscally and eco-responsIble way to save energy Because of rhls, It should be considered our firsr ptlonty as a regIOn NEEA'S FUNDERS NEEA IS currently funded dlrecrly by 12 electnc unlmes, rhe BonneVille Power Admlfilsttanon and Energy T rusr of Oregon These Invesrmenrs are pooled and used ro fund region-Wide energy effiCiency projects BENEFITS OF ENERGY EFFICIENCY By rhe end of2007, rhe Northwesr regIon had saved 210 average megawatts through NEEA's market transformatlon mltlatlves and other related utlllty and state efforts ThIS IS enough electncIty to power more than 145.000 homes for a year In addmon to the environmental benefits. the economIC benefits of energy effiCiency touch all reSidents and bus10esses In the regIon SaVIng energy and reducmg cosrs helps boost local economles by freeIng up money for Northwest consumers and bUSInesses MARKET TRANSFORMATION At the hIghest level, NEEA uses a strategIc process called "market ttansfotmatIOn" to help change behavlOrs and busmess practices wlthm the residential, commercial and mdustnal sectors Market transformatIon Involves IdentifyIng and removmg market barners, and explomng opportumnes to accelerate the adoptIon of energy efficIency as standard practIce HOW NEEA WORKS IN THE MARKETPLACE LEVERAGE NEEA leverages the resources and mfluence of ItS partners m order to achieve regiOnal economies of scale for energy-effiCient products and serVICes By workmg together, we are able to have a greater Impact on the Northwest marketplace TECHNOLOGY New technologIes ready for commerCializatIon are brought to the Northwest where NEEA works to encourage market adoptIon of the<;e energy-efficient products and servICes RESOURCES RegIOnal resources IOl..1udmg market strategIes, relatIonshIps WIth experts m the marketplace, as well as trammg and marketing platforms prOVIde addmonal opportunItIes for NEEA's partners to connect wIth thelt cusromers Northwest Energy EffICiency Alliance . 529 SW Third Avenue, SUite 600 Portland, Oregon 97204 503-827-84t6 . 800-411-0834 . 503-827-8437 (Fax) . wwwnwalllanceorg '''NNlvHLI ~ ') ", ~",\ EnergyTrust 0,0",001,,< Av'STA fiLy mJI ~~Gr>or1lCOUlt'l PUBUC umny """""" ::11...".....,..,.,........._..'''. -~lDAHO a::!! POWER, North\Xb'tcm FIICI~\ ~PAOFIC POWER ~ + PUCET . SOUND ENERGY ~ Seattle City LIght TACOMA 1c POWER T..~D"" ~UOL'C UT'L'T'" Date: To: From: Subject: ~ORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo September 8, 2009 Utility Advisory Committee Larry Dunbar, Deputy Director of Power Systems Western PublIc Agencies Group Consultmg Agreement Amendment No 1 Summary: The Western PublIc AgencIes Group represents the mterests of ItS electnc utilIty members before the BonneVille Power AdmmlstratlOn The City'S current share of the 2009 proposed scope of work IS $10,365 out ofthe total WPAG budget of $230,000 The scope of services for the remamder of this year Will mcrease the City'S cost by $4,056 Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to sign an amendment to the agreement with EES Consulting, Inc., and Marsh Mundorf Pratt Sullivan & McKenzie in an amount not to exceed $4,056, which increases the maximum compensation under the agreement from $10,365 to $14,421. Background/Analysis: The Electnc UtilIty IS a member of the Western PublIc Agencies Group (WP AG) along with twenty-two other publIcly owned electnc utilIties WP AG members serve more than one millIon customers and purchase more than 6 billIon kilowatt hours from the BonneVille Power AdmmlstratlOn (BPA) WPAG represents the mterests of ItS members before BPA, and has mtervened m every major BPA rate proceedmg smce 1980. EES Consultmg, Inc, provides WP AG techmcal and finanCial servICes and legal services are provided by Marsh Mundorf Pratt Sullivan & McKenZIe Each year WP AG proposes an agreement and scope of services to ItS members, which IS allocated to each utilIty based on average customers, energy sales, and capital mvestrnents On January 6, 2009, City CounCil approved an agreement With EES Consultmg, Inc, and Marsh Mundorf Pratt SullIvan & McKenZie m an amount not to exceed $10,365 Due to the complexity of several key Electnc UtilIty Issues that have reqUired more consultmg time than anticipated, WPAG has mcreased the City'S cost of membership by $4,056 (from $10,365 to $14,421) The Electnc UtilIty budget m 2009 for WPAG membership IS $20,000. A copy of the proposed budget addendum mcludmg a descnptlOn of the additional scope of services IS attached. It IS recommended that City CouncIl authonze the City Manager to Sign an amendment to the agreement With EES Consultmg, Inc , and Marsh Mundorf Pratt Sullivan & McKenZie m an amount not to exceed $4,056, which mcreases the maximum compensatIOn under the agreement from $10,365 to $14,421 Attachment: 2009 WP AG Budget Addendum N \UACIFmal\WPAG MembershIp Budget Addendum doc FORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo Date: September 8, 2009 To: Utility Advisory Committee From: Larry Dunbar, Deputy Director of Power Systems Subject: Bonneville Power AdmllllstratlOn Power Sales Agreement Amendment No I Summary: The BonneVille Power AdmllllstratlOn offered the City an optional amendment to the Power Sales Agreement The proposed amendment IS consistent with the Tiered Rate Methodology, which was finahzed after the Power Sales Agreement was accepted by the City Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor to accept amendment No.1 to the Power Sales Agreement with the Bonneville Power Administration. Background/Analysis: On November 18,2008, City Council authonzed the Mayor to accept the Power Sales Agreement with the BonneVille Power AdmllllstratlOn (BP A) that IS III effect through September 2028 The pnmary change III the Power Sales Agreement was a shift from average embedded melded rates to a Tiered Rate Methodology (TRM) The proposed amendment to the Power Sales Agreement replaces several defimtlOns and sectIOns to be consistent with the TRM, which was finahzed after the agreement was accepted by the City The proposed amendment IS optIOnal and If the City plans to proceed must be accepted by October 30, 2009 If the City does not accept the amendment at thiS time It will be reqUired at a later date Staff recommends that the Utlhty AdVISOry Committee forwards a favorable recommendation to City Council to authonze the Mayor to accept amendment No I to the Power Sales Agreement with the BonneVille Power Admllllstratlon N \UAC\Fmal\BPA Power Sales Agreement Amendment doc Date: To: From: Subject: -, FORTANGELES WAS H I N G TON, USA Utility Advisory Committee Memo September 8, 2009 Utility Advisory Committee Larry Dunbar, Deputy Duector of Power Systems TransmissIOn Agreement for the Morse Creek Hydroelectnc Project Summary: Tbe TransmissIOn Agreement for the Morse Creek Hydroelectnc Project between the Clallam County Public Utility Dlstnct No I and the City has expired A new agreement has been prepared that contmues to provide services that are beneficial and of approximately equal value to both parties Recommendation: Forward a favorable recommendation to City Council to authonze the Mayor to accept the TransmissIOn Agreement for the Morse Creek Hydroelectnc Project with the Clallam County Public Utility Dlstnct No I, and authonze the City Manager to make mmor modificatIOns to the agreement, If necessary. Background/Analysis: On February 2, 1988, the Clallam County Public Utility Dlstnct No I (Dlstnct) and the City executed a TransmissIOn Agreement for the Morse Creek Hydroelectnc Project As part of the agreement the Dlstnct transmits the Morse Creek Hydroelectnc project's electncal output across ItS dlstnbutlOn facilities to the Bonneville Power AdmmlstratlOn' sPort Angeles substatIOn Tbe City m exchange transmits water from the Morse Creek dIversIOn dam usmg the Dlstnct's water nght to the Dlstnct's water treatment plant The agreement was mutually beneficial to the Dlstnct and the City There was no Dlstnct charge to the City for electncal transmisSion, nor was there any City charge to the Dlstnct for water transmiSSIOn The agreement had a twenty year term and expued m 2008 Replacement of the expired agreement was delayed to mcorporate the Federal Energy Regulatory CommiSSIOn license and Washmgton State Clean Water Act 401 certificatIOn, which the City received earlier thiS year A separate transmiSSIOn agreement between the BonneVille Power AdmmlstratlOn, the Dlstnct and the City IS mcorporated by reference, which will be expmng at the end of September 20 II The proposed agreement IS an update of the last agreement and mcludes a twenty-seven year term to coinCide With the term of the wholesale water agreement Staff recommends that the Utility AdVISOry Committee forwards a favorable recommendatIOn to City Council to authonze the Mayor to accept the TransmissIOn Agreement for the Morse Creek Hydroelectnc Project With the Clallam County Public Utility Dlstnct No I N \UAC\Fmal\Morse Creek TransmIssIOn Agreement doc