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HomeMy WebLinkAboutAgenda Packet 09/10/2002 PORT ANSELES~ WA cjB362 ~;EPTEMBER 1 FI, 2ne}2 3:00 P.M. AGENDA I. P-ALL TO FIRDER Ii. ROLL P-ALL Ill. APPROVAL OF MINUTES FOR AUGUST 13) 2Gn2 IV. LATE IteMS V. DISCUSSION ITEMS A. I-NET FAST TRA{~K REPORT (VERBAL) MP-E: CTATUS REPORT PRELIMINARY WATER/¥VASTEWATER RATE STUDY (VERBAL) D. LG&E (AVISTA) TRANSMISSION LOSSES E. BPA WHOLESALE RATE STATUS (VERBAL) VI. NEXT MEETING OCTOBER B, 2002 VII. ADJOURNMENT UTILITY ADVISORY COMMITTEE Port Angeles, Washington August 13, 2002 L Call to Order: Chairman Bentley called the meeting to order at 2:00 p.m. II. Roll Call: Members Present: Chairman Bentley, Councilman Campbell, Councilmember Erickson, Councilmember Rogers, Dean Reed Members Absent: None StaffPresent: Mike Quinn (2:25), Craig Knutson, Glenn Cutler, Tim Smith, Scott McLain, Gary Kenworthy (2:25), Larry Dunbar, Steve Sperr (2:55), Scott Johns, Jim Harper (IT), Tom McCabe, Cate Rinehart Others Present: (Sign In Sheet) Capacity Provisioning Craig Johnson Bob Jensen Bill Roberds Northland Cable Pete Grigorieff Mike Sturgeon Olypen Terry Kennedy Clallam PUD Dennis Bickford Fred Mitchell Port Angeles Schools Steve Baxter Olympic Medical Center Evan Boyd Clallam County Dan Engelbertson Mike Doherty KONP Dan Karl III. Approval of Minutes: Chairman Bentley asked if there were any additions or corrections to the meeting minutes of July 30, 2002. Dean Reed moved to approve the minutes. Councilmember Erickson seconded the motion, which carried unanimously. IV. Discussion Items: A. 1-Net Fast-Track Approval (Note: Although these subjects were originally listed as separate items each one is contingent upon the other therefore they have been addressed as a single unit). Proposed Fiber Optic }Vide Area Network Use Agreement UTILITY ADVISORY COMMITTEE August 13, 2002 Proposed Institutional Network Services Agreement Proposed Clallam County PUD Right-Of-Way License Agreement Information only. No action required. Institutional Network Implementation Consulting Services - Monthly Status Report Information only. No action required. Larry Dunbar, Power Resources Manager, summarized the background, Clallam County PUD concerns, I-Net service agreement revisions and the benefits that would be received. The revised fast-track schedule was discussed in addition to some minor agreement corrections. A brief deliberation followed with concerns regarding what interlocal agreements the City may foresee. Councilmember Rogers moved to recommend City Council approve the proposed Fiber Optic Wide Area Network Use Agreement, amendment No. 1 to the Cable Television Franchise Ordinance No. 3116, and right-of-way easements for I-Net node enclosures with Northland Cable Television. Additional changes may be negotiated prior to City Council consideration. Councilman Campbell seconded the motion, which carried unanimously. Councilmember Rogers moved to recommend City Council approve the proposed Institutional Network Services Agreement and Telecommunications Master Permit with Capacity Provisioning, Inc. and authorize the City Manager to execute Interlocal Agreements for the acquisition of I-Net Services with public institutions. Dean Reed seconded the motion, which carried unanimously. B. SAFE Water Initiative Glenn Cutler, Director of Public Works and Utilities, acknowledged a briefing paper issued through the State which addresses potential legislation that would assist with water system improvements and a number of other related issues. Funding sources may include a surcharge on water connections and/or energy consumption. There was a brief discussion. Staff agreed to continue to monitor the information and relay it to committee members. No action Taken. Information only. C. Port Angeles Landfill Bluff Erosion and Slope Stabilization Tom McCabe, Solid Waste Superintendent, indicated approximately 600 feet of the bluffis losing about one foot per year of waste material originally disposed of in the 1960's and 1970's. This erosion is related to an apparent undercutting of the toe of the slope by wave action. A preliminary investigation has been done by a consultant and plan of action is being developed for submittal to the Clallam County Health Department for review. A brief discussion followed. No action taken. Information only. D. Implementation of Stormwater Utility Gary Kenworthy, Deputy Director of Engineering, noted slight changes in schedule dates and pointed 2 UTILITY ADVISORY COMMITTEE August 13, 2002 out various aspects of the proposed utility budget and program and initial projections for revenues and utility fees. Mention was made regarding the stormwater manual which is a guide to follow and not a regulation. Glenn Cutler, Director of Public Works and Utilities, pointed out several sections of the proposed ordinance. A discussion followed with revisions to change "requirements" to "provisions". Dean Reed moved to forward the ordinance to the City Council to set dates for a public hearing and action. Councilman Campbell seconded the motion, which carried unanimously. V. Next Meeting: The next regular meeting will be September 10th - 3 p.m. VI. Adjournment: The meeting adjourned at 3:45 p.m. Allen Bentley, Chairman Cate Rinehart, Administrative Assistant 8/15/02 N :XPWKS\LIGHTXCONS\CATE~aug 13meet.wpd 3 WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: SEPTEMBER 10, 2002 TO: UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager RE: Institutional Network Implementation Consulting Services - Monthly Status Report Summary: This is an informational report on Metropolitan Communications Consultants activities during the month of August 2002. The advisory services include support with the I-Net fast-track and during construction of the I-Net backbone. Recommendation: Information only, no action required. I-Net Fast-Track Advisor Services ($20,000 authorized time & materials budget) Task August Activity Prior Current Total Project Management Support $3,022.50 $3,022.50 Agreement Development $4,972.50 $4,972.50 Service Agreement Packet latency issue, plans Negotiation and specifications review $3,900.00 $1,072.50 $4,972.50 Ferry and mileage expenses Expenses for July 8, 2002 $83.58 $83.58 I-Net Backbone Construction Advisory Services ($25,000 authorized lump sum budget) Task August Activity Prior Current Total Project Management Support and representation Support on technical matters $1,700.00 $1,700.00 Plans & Specifications Review 90% review completion $1,800.00 $1,800.00 Construction Phase Change order-node climate Engineering control, battery backup $500.00 $500.00 Testing Observation , Final Inspection Totals $11,895.00 $5,156.08 $17,051.08 WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: September 10, 2002 To: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director for Power Systems RE: Transmission Losses for LG&E (Avista) Power Purchase Summary: The City must purchase power to replace transmission losses on its market power purchase from LG&E. The recent volatility in the power market has made a fixed price offer unavailable. The Bonneville Power Administration is offering an indexed price for losses at the Mid-C heavy load spot market price plus 15%. This purchase will provide for transmission losses for the remainder of the term of the LG&E power supply contract. Recommendation: Forward a favorable recommendation to City Council to authorize the Director of Public Works and Utilities to sign a confirmation agreement with the Bonneville Power Administration to provide transmission losses for the City's LG&E (Avista) power supply for a one year period starting October 1, 2002. Background/Analysis: The City has a power supply contract with LG&E Power, which has sold the power delivery responsibilities to Avista Energy, Inc. This power is delivered to the Bonneville control area for Port Angeles' use at the Mid Columbia (Mid-C) transfer point. Transmission of that power from Mid-C to Port Angeles is covered in the City's transmission agreement but the City is required to return transmission losses that naturally occur due to electrical resistance on the transmission system to the transmission provider (BPA, Transmission Business Line). Transmission losses are set at 1.9% in the City's transmission contract. The volatility of spot market power prices in the past year and a half has made it difficult to get fixed price contracts for power deliveries, particularly for small amounts such as this transmission losses requirement. I could not get quotes from any other utilities to supply this power. The City will receive 97,826 MWh of power from Avista during the one year period from Oct. 1, 2002 to Sept. 30, 2003. We will need to replace transmission losses in the amount of 1858.694 MWH during this time. The Bonneville Power Administration, Power Business Line, has agreed to a price at the Mid-C heavy load spot market price plus 15% to supply these transmission losses. The cost of losses for the past year have been at the fixed price of 45 mils. The projected price using the forward market prices for the year should put the price for losses during this time at about 40 mils. The power delivered under the contract with LG&E, including losses, will save the City about $1,500,000 compared to an equivalent power purchase from BPA. Board of Clallam ,, County Commissioners __ ~EPHEN P. THA~NGER, Di~ri~ 1 P.O. ~x 863 N]CHAEL C. CHAPNAN, DisLri~ 2 223 Ea~ 4~ Sffeet HOWARD V. DOHER~, 3r., Di~ri~ 3, Chair Po~ ~geles, WA 98362-0327 360.417.2233 F~x: 360,4]?.2493 Dan Enge/be~on, Coun~ Adm/ni~rator E-maik commi~ione~G~.clallam.wa.us File: A31.13 29 August 2002 Nike Quinn, City Nanager City of Port Angeles 321 E. 5~h St. Port Angeles, WA 98362 Dear Nike: ] want to formalize two items we have discussed a number of times. The first relates to the City's recently adopted I-Net proposal. During the approval process for the contractual agreement with CPI, Larry Dunbar, Glenn Cutler and I discussed the plans of the City to reserve a number of dark fibers for City use once the full number was installed. According to Lam/and Glenn, the City will adopt policy for use of the full number of fibers during the next several months. The County also requests a minimum of one fiber pair to be reserved for our use. It is estimated by our IT department that the availability of a dedicated fiber pair will reduce the equipment costs necessary for use of the I-Net and link to PUD to less than half of what otherwise will be necessary. I would appreciate passing this request through whatever process is necessary and your support of the request. The second issue relates to the general topic of 1T support, more specifically to support of the City's new IBH I-Series Computer. As you are aware, Clallam County has an abundance of expertise in support of this platform. The county currently shares our personnel with the PUD, City of Sequim, and the Port of Port Angeles. We have used the IBIH AS400 platform since its inception over 20 years ago. The County now provides all support for both a general government machine and a public safety machine used by Law Enforcement and Fire Departments throughout the County as well as by PENCON. As you consider system maintenance and support for your new machine, please keep the County in mind. We likely can provide better support at a significantly lower cost. As we have discussed, it is my belief that it would be to both our advantage to eventually combine many of the functions of IT. Support of the City's new machine could be the beginning. Thanks for your consideration of these requests. Sincerely County Administrator J:\publicXA46 Communications~'ibcr\Request for Fiber Pair doc PORt ANGELES, WA 98362 SEPTEMBER 1 n, 3:00 P.M. AGENDA I. CALL TO ORDER II. ROLL I-:- AL L III. APPROVAL OF' MINUTES FOR AUOUST IV. LATE ITEMS A. I-NET FAST TRACK REPORT {VERBAL) B. MCP- STATIJ5 REPORT C, PRELIMINARY WATER/~VASTEWATER RATE STUDY (VERBAL) D. LG&E (AriSTA} TRANSMISSION LOSSES E. BPA WHOLESALE RATE STATUS (VERBAL) VI. NEXT MEETING OCTOBER B~ 2002 VII. ADJ°URNMENT UTILITY ADVISORY COMMITTEE Port Angeles, Washington August 13, 2002 Call to Order: Chairman Bentley called the meeting to order at 2:00 p.m. II. Roll Call: Members Present: Chairman Bentley, Councilman Campbell, Councilmember Erickson, Councilmember Rogers, Dean Reed Members Absent: None Staff Present: Mike Quinn (2:25), Craig Knutson, Glenn Cutler, Tim Smith, Scott McLain, Gary Kenworthy (2:25), Larry Dunbar, Steve Sperr (2:55), Scott Johns, Jim Harper (IT), Tom McCabe, Cate Rinehart Others Present: (Sign In Sheet) Capacity Provisioning Craig Johnson Bob Jensen Bill Roberds Northland Cable Pete Grigorieff Mike Sturgeon Olypen Terry Kennedy Clallam PUD Dennis Bickford Fred Mitchell Port Angeles Schools Steve Baxter Olympic Medical Center Evan Boyd Clallam County Dan Engelbertson Mike Doherty KONP Dan Karl III. Approval of Min utes: Chairman Bentley asked if there were any additions or corrections to the meeting minutes of July 30, 2002. Dean Reed moved to approve the minutes. Councilmember Erickson seconded the motion, which carried unanimously. IV. Discussion Items: A. 1-Net Fast-Track Approval (Note: Although these subjects were originally listed as separate items each one is contingent upon the other therefore they have been addressed as a single unit). Proposed Fiber Optic }Vide Area Network Use Agreement UTILITY ADVISORY COMMITTEE August 13, 2002 Proposed Institutional Network Services Agreement Proposed Clallam County PUD Right-Of-Way License Agreement Information only. No action required. Institutional Network Implementation Consulting Services - Monthly Status Report Information only. No action required. Larry Dunbar, Power Resoumes Manager, summarized the background, Clallam County PUD concerns, I-Net service agreement revisions and the benefits that would be received. The revised fast-track schedule was discussed in addition to some minor agreement corrections. A brief deliberation followed with concerns regarding what interlocal agreements the City may foresee. Councilmember Rogers moved to recommend City Council approve the proposed Fiber Optic Wide Area Network Use Agreement, amendment No. 1 to the Cable Television Franchise Ordinance No. 3116, and right-of-way easements for I-Net node enclosures with Northland Cable Television. Additional changes may be negotiated prior to City Council consideration. Councilman Campbell seconded the motion, which carried unanimously. Councilmember Rogers moved to recommend City Council approve the proposed Institutional Network Services Agreement and Telecommunications Master Permit with Capacity Provisioning, Inc. and authorize the City Manager to execute Interlocal Agreements for the acquisition of I-Net Services with public institutions. Dean Reed seconded the motion, which carried unanimously. B. SAFE Water Initiative Glenn Cutler, Director of Public Works and Utilities, acknowledged a briefing paper issued through the State which addresses potential legislation that would assist with water system improvements and a number of other related issues. Funding sources may include a surcharge on water cormections and/or energy consumption. Therewasabriefdiscussion. Staffagreedtocontinuetomonitortheinformation and relay it to committee members. No action Taken. Information only. C. Port Angeles Landfill Bluff Erosion and Slope Stabilization Tom McCabe, Solid Waste Superintendent, indicated approximately 600 feet of the bluffis losing about one foot per year of waste material originally disposed of in the 1960's and 1970's. This erosion is related to an apparent undercutting of the toe of the slope by wave action. A preliminary investigation has been done by a consultant and plan of action is being developed for submittal to the Clallam County Health Department for review. A brief discussion followed. No action taken. Information only. D. Implementation of Stormwater Utility Gary Kenworthy, Deputy Director of Engineering, noted slight changes in schedule dates and pointed 2 UTILITY ADVISORY COMMITTEE August 13, 2002 out various aspects of the proposed utility budget and program and initial projections for revenues and utility fees. Mention was made regarding the stormwater manual which is a guide to follow and not a regulation. Glenn Cutler, Director of Public Works and Utilities, pointed out several sections of the proposed ordinance. A discussion followed with revisions to change "requirements" to "provisions". Dean Reed moved to forward the ordinance to the City Council to set dates for a public hearing and action. Councilman Campbell seconded the motion, which carried unanimously. V. Next Meeting: The next regular meeting will be September 10th - 3 p.m. VI. Adjournment: The meeting adjourned at 3:45 p.m. Allen Bentley, Chairman Cate Rinehart, Administrative Assistant 8/15/02 N:XPWKS~LIGHTxCONS\CATE~aug 13meet.wpd WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: SEPTEMBER 10, 2002 To: UTILITY ADVISORY COMMITTEE FROM: Larry Dunbar, Power Resources Manager RE: Institutional Network Implementation Consulting Services - Monthly Status Report Summary: This is an informational report on Metropolitan Communications Consultants tctivities during the month of August 2002. The advisory services include support with the I-Net hst-track and during construction of the I-Net backbone. ~ecommendation: Information only, no action required. I-Net Fast-Track Advisor~ Services ($20,000 authorized time & materials budget) Task August Activity Prior Current Total Project Management Support $3,022.50 $3,022.50 Agreement Development $4,972.50 $4,972.50 Service Agreement Packet latency issue, plans Negotiation and specifications review $3,900.00 $1,072.50 $4,972.50 Ferry and mileage expenses Expenses for July 8, 2002 $83.58 $83.58 I-Net Backbone Construction Advisory Services ($25,000 authorized lump sum budget) Task August Activity Prior Current Total Project Management Support and representation Support on technical matters $1,700.00 $1,700.00 Plans & Specifications Review 90% review completion $1,800.00 $1,800.00 Construction Phase Change order-node climate Engineering control, battery backup $500.00 $500.00 Testing Observation Final Inspection Totals $11,895.00 $5,156.08 $17,051.08 WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: September I 0, 2002 TO: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director for Power Systems RE: Transmission Losses for LG&E (Avista) Power Purchase Summary: The City must purchase power to replace transmission losses on its market power purchase from LG&E. The recent volatility in the power market has made a fixed price offer unavailable. The Bonneville Power Administration is offering an indexed price for losses at the Mid-C heavy load spot market price plus 15%. This purchase will provide for transmission losses for the remainder of the term of the LG&E power supply contract. Recommendation: Forward a favorable recommendation to City Council to authorize the Director of Public Works and Utilities to sign a confirmation agreement with the Bonneville Power Administration to provide transmission losses for the City's LG&E (Avista) power supply for a one year period starting October 1, 2002. Background/Analysis: The City has a power supply contract with LG&E Power, which has sold the power delivery responsibilities to Avista Energy, Inc. This power is delivered to the Bonneville control area for Port Angeles' use at the Mid Columbia (Mid-C) transfer point. Transmission of that power from Mid-C to Port Angeles is covered in the City's transmission agreement but the City is required to return transmission losses that naturally occur due to electrical resistance on the transmission system to the transmission provider (BPA, Transmission Business Line). Transmission losses are set at 1.9% in the City's transmission contract. The volatility of spot market power prices in the past year and a half has made it difficult to get fixed price contracts for power deliveries, particularly for small amounts such as this transmission losses requirement. I could not get quotes from any other utilities to supply this power. The City will receive 97,826 MWh of power from Avista during the one year period from Oct. 1, 2002 to Sept. 30, 2003. We will need to replace transmission losses in the amount of 1858.694 MWH during this time. The Bonneville Power Administration, Power Business Line, has agreed to a price at the Mid-C heavy load spot market price plus 15% to supply these transmission losses. The cost of losses for the past year have been at the fixed price of 45 mils. The projected price using the forward market prices for the year should put the price for losses during this time at about 40 mils. The power delivered under the contract with LG&E, including losses, will save the City about $1,500,000 compared to an equivalent power purchase from BPA. N :~v, rKSkLIG HTkPOWM \TLOSS E S\tlosse s uac0203, wpd