HomeMy WebLinkAboutAgenda Packet 09/17/2007
Utility Advisory Committee - Continued From September 11, 2007
Public Works Conference Room
Port Angeles, W A 98362
September 17, 2007
3 :00 PM
I. Call To Order
II. Roll Call
III. Discussion Items
A. Solid Waste Rates
B. Lease For Interim Light Operations Facility
IV. Next Meeting Date: October 9,2007
v. Adjornment
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Tax-Related Adjustments
1. State refuse collection tax exemption
- Paid by collection entities, 3.6% of gross revenues
- Can be exempt from transfer station disposal
charges
- New transfer station rate needed
- Transfer station cost/revenue neutral
- Collection $30K cost reduction
Tax-Related Adjustments
2. City Utility tax
- Only paid by City utilities, 8% of gross revenues
- City & non-City entities proposed
- Gross revenues from residential & commercial
services within City proposed
- Deduction to gross revenues for disposal costs
at transfer station proposed
- Amendment to utility tax ordinance proposed
- City collections $70K cost reduction
- Non-City collections $20K new revenue
- Utility tax $50K net revenue reduction
1
$1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
Tax-Related Adjustments
City Solid Waste Utility Tax Proposal
2004 Actual 2005 Actual 2006 Actual 2007 Revised 2008 Proposed
III City LandfillfTransfer Station 0 City Collections 0 City Collection Disposal (ends 2007) . Non-City (begins 2008)
$-
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Date:
To:
From:
Subject:
~ORr.ANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
September 11, 2007
Utility Advisory Committee
Larry Dunbar, Power Resources Manager
Solid Waste Rate Adjustments
Summary: Based on the 2004 cost of service study, rate adjustments are needed to support the
new transfer station and waste export system, which must be made in accordance with the
interlocal agreement.
Recommendation: Forward a favorable recommendation to City Council to proceed with a
public hearing on the updated rate study and proposed rate adjustments.
Background/Analysis: Based on the 2004 cost of service study, annual rate adjustments are
needed to provide for the smooth transition to the new waste export system. Solid waste collection
costs have stabilized. The proposed rates are still under development and will be provided at the
Utility Advisory Committee meeting. Staff will provide a presentation on the need for the
proposed rate adjustments and the proposed ordinance amendments at the meeting.
The City Council set a public hearing date on Septemger 18,2007 for a presentation of the study
and to allow public input to the process after the presentation. The public hearing will be
continued to October 2, 2007 at which time the public hearing will be closed and City Council will
be requested to consider adoption of a new rate ordinance.
The proposed timeline for consideration of the proposed adjustments is as follows:
September 11, 2007
September 18, 2007
October 2,2007
Utility Advisory Committee consideration
Presentation of the proposed rates followed by a public hearing to receive
input; continue public hearing to October 2, 2007.
Close public hearing; consider adoption of new rate ordinance.
Staff recommends the Utility Advisory Committee forward a favorable recommendation to City
Council to proceed with a public hearing on the rate study and the proposed rate adjustments.
N:\UAC\Final\Solid Waste Rate Adjustments.doc
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Public Works & Utilities
Utility Advisory Committee
Solid Waste Rates
September 11, 2007
Larry Dunbar
Power Resources Manager
417-4710 Idunbar@cityofpa.us
Overview and Purpose
of the Presentation
1. Transfer Station
background, rates &
ordinance amendments
2. Collections background,
rates & ordinance
amendments
3. Recommended schedule
1
Transfer Station Background
~ Cost of service studies (2004 & 2008)
~ Interlocal Agreement & JSWAB
~ Waste Connections Service Agreement
~ Prior Landfill/Iransfer Station rate adjustments:
~ 2002 - 0%
~ 2003 - 0%
> 2004 - 0%
~ 2005- 5%
).> 2006 - 5%
~ 2007 -14.5%
January 2007 Rate Design
. Collection entities (charge per ton)
~ Municipal solid waste ($80.00 charge)
).> Yard waste ($24.80 charge)
).> Biosolids ($19.85 charge)
. Self haulers
).> Municipal solid waste ($97.00 charge, $10
minimum)
~ Special waste (varies $97.00 - $235.70 charge)
~ Metals and white goods ($47.65 charge)
).> Recycling (no charge)
).> Household hazardous waste (no charge)
).> Moderate-risk waste (no charge residential
only)
2
January 2007 Rate Design
. Blue Mountain Drop-Box (charge per ton)
Self Haulers
~ Municipal solid waste ($184.00 charge, $5
minimum)
~ Recycling (no charge)
Rate Adjustment Needs
. Overall performance similarto 2004
COSA
. Personnel cost reductions
. Service agreement cost escalation
. Service agreement settlement
. Post-closure cost adjustment
. Blue Mountain Drop-Box adjustment
3
Tax-Related Adjustments
1. State refuse collection tax exemption
- coffection entities .
2. City Utility tax
- City & non-City entities providing
residential & commercial services within City
- Deduction to gross. revenues for disposal
costs at transfer station .
Revenue Requirement
Without Rate Adjustments ($OOO's)
Description 20.0.7 20.0.8
Collection Entities 2,611 2,642
Self-Haulers 2.493 2,250.
ffl Yard Waste & Compost 177 164
::J Elwha & FEMA 356 0.
m Intra-Fund Transfers 3,90.4 214
(ij Miscellaneous Revenues 795 731
a:: Blue Mountain Drop Box 239 239
Total Revenues 10.,336 6,0.0.1
O&M 523 424
Administration & General 419 337
Transfer Station Operations 922 90.1
Long Haul & Disposal 2,50.6 2,597
ffl Debt Service & Settlement 818 1,30.9
~ Post-Closure Maintenance 175 262
~ Taxes - Transfer Station 60.3 544
~ Transfer Payments 3,50.1 20.2
Blue Mountain Drop Box 248 251
Total Expenses 9,714 6,828
R~V'erii.i:es!liess;Eiperises'ii,f~;~W1f,\1i,~ ~~\:~;~0i~22;: 827,
4
Capital Facilities Program ($000'5)
Capital Facilities Plan 2007 2008
Charges & Services 595 -
Bluff Stabilization 1,950 -
Residuals Handling Facility 250 -
.
Closure . 1,100 -
Total 3,895, -
Capital Facilities Plan Funding Sources 2007 2008
CFP Cash 590 -
Closure Fund 3,305 -
Cash/Rate Financed Contribution ."
- -
Total 3,895 -
Ending Fund Balance
Without Rate Adjustments ($000'5)
T pe of Reserve 2007 2008
Operating 3,537 2,710
Closure 100 100
Post-Closure 3,700 3,689
CFP
Total Reserves 7,337 6,499
5
Revenue Requirement
With 7.50/0 Rate Adjustment ($OOO's)
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Descriotion 2007 2008
Collection Entities 2,611 2,771
Self-Haulers 2,493 2,369
Yard Waste & Compost 177 174
Elwha & FEMA 356 0
Intra-Fund Transfers .3,904 214
Miscellaneous Revenues 795 749
Blue Mountain Drop Box 239 257
Total Revenues . 10,336 6,277
O&M 523 424
Administration & General 419 337
Transfer Station Operations 922 901
Long Haul & Disposal 2,506 2,593
Debt Service & Settlement 818 1,309
Post-Closure Maintenance 175 262
Taxes - Transfer Station 603 573
Transfer Payments 3,501 202
Blue Mountain Drop Box 248 257
Total Expenses 9,714 6,859
Reverrues(Less'Expe[ise's::l!,j)!r~.f:(;~!j;;;! 'H;r}ti){~J622~; iYij!!;i:(511~
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Ending Fund Balance
With 7.50/0 Rate Adjustment ($000'5)
T e of Reserve 2007 2008
Operating 3,537 2,955
Closure 100 100
Post-Closure 3,700 3,689
CFP
Total Reserves 7,337 6,744
6
Rate Adjustment Recommendations
. Current rate design should be maintained
. Rate adjustments should be across-the-board
. New rate for collection entities excluding State
refuse collection tax
. Rate adjustment effective January 1, 2008
. City utility tax ordinance amendment
Rate Adjustment Recommendations
Collection Entities
>- Municipal solid waste (MSW)
."./ Proposed $6.00 increase - new rate $86.00 per ton
~. MSW State refuse collection tax exemption
./ Proposed $3.10 reduction - new rate $82.90 p~r ton
>- Yard Waste
./ Proposed $1.90 increase - new rate $26.70 per ton
>- Yard Waste State refuse collection tax exemption
./ Proposed $0.95 reduction :- new rate $25.75 per ton
~ Wastewater treatment plant biosolids
./ Proposed $1.50 increase - new rate $21.35 per ton
7
Rate Adjustment Recommendations
Self-Haulers
~ Municipal solid waste
v' Proposed $7.30 increase - new rate $104.30 per ton with
no change to $10.00 minimum charge
v' Average $1.30 residential increase ($18.80 - $17.50 for
360 Ibs)
v' Average $6.00 commercial increase ($86.00 - $80.00 for
1,6501bs)
~ Yard waste
v' Proposed $3.00 increase - new rate $43.00 per ton with no
change to minimum charge
v' Average $0.50 increase ($7.30 - $6.80 for 340 Ibs)
Rate Adjustment Recommendations
Blue Mountain Drop-Box
Self Haulers
v'Proposed $13.80 increase - new rate $197.80 per ton with
no change to $5.00 minimum charge
v' Average $0.80 increase ($11.20 - $10.40 for 113 Ibs)
8
:
Current/Proposed Rate Summary
(charge per ton)
Collection Entities 2007 2008
Municipal solid waste $ 80.00 $ 86.00
Municipal solid waste-State
Collection Tax Exempt - 82.90
Wastewater treatment plant qrit 80.00 86.00
Yard waste 24.80 26.70
Yard waste-State Collection Tax
Exempt - 25.75
Wastewater treatment plant
biosolids 19.85 21.35
Blue Mountain Ora -Box
Munici al solid waste
Minimum charge (MSW)
2007 2008
$ 184.00 $ 197.80
5.00 5.00
Current/Proposed Rate Summary
Self Haulers 2007 2008
Municipal solid waste $ 97.00 $ 104.30
Minimum charae (MSW) 10.00 10.00
Uncovered loads 10.00 10.00
Asbestos 235.70 253.40
Tires (automobile & truck) 97.00 104.30
Metals & White Goods 47.65 51.25
Environmental Fee 20.00 20.00
Contaminated or dredge soils 97.00 104.30
Yard waste (Residential) 40.00 43.00
Yard waste (Commercial) 40.00 43.00
Minimum charge (YW) 5.00 5.00
Household hazardous waste
(batteries, antifreeze, oil) - -
Moderate-risk waste - -
Recycling Drop Box (Tin,
Aluminum, Plastic, Glass) - -
9
Overview and Purpose
of the Presentation
1. Transfer Station
background, rates &
ordinance amendments
2. Collections background,
rates & ordinance
amendments
3. Recommended schedule
Collections Background
. Cost of service studies (2004 & 2008)
. Prior collection rate adjustments:
>- 2002 - 0%
~ 2003 - 0%
>- 2004 - 0%
~ 2005 - 5%
~ 2006 - 24.8% residential weekly
0% residential every-other week
5% commercial
>- 2007 - 0% residential
5% commercial
10
Current Residential Rate Design
. Weekly residential refuse
);0 55% participation ($27.30 charge)
>- 60% recycle (no additional charge)
~ 30% yard waste ($7.05 additional charge)
. Every-other-week refuse
). 45% participation ($21.85 charge)
~ 85% recycle (no additional charge)
). 40% yard waste ($7.05 additional charge)
Current Commercial Rate Design
. gO-gallon refuse
. 300-gallon refuse
. Commercial cardboard (no additional
charge)
. Commercial recycling ($10.50 additional
charge for PA School District)
11
Collection Rate Adjustment Needs
. Personnel cost reductions
. Equipment cost reductions
. State refuse collection tax exemption
. City utility tax deduction for transfer
station disposal costs
. Recycling emphasis shift
. Service agreement cost adjustments
. Closure & post-closure contributions
ended
Collection Revenue Requirement ($OOO's)
Without Rate Adjustments
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Description 2007 2008
Residential Weekly 1,370 1,370
Residential Every-Other-Week 725 725
Residential Yard Waste 175 175
Commercial 1,042 1,042
Commercial Recycling 1 1
Investment Interest 115 115
Miscellaneous Revenues 6 6
Total Revenues 3.434 3.434
O&M 1,136 1,008
Administration & General 393 378
Disposal Charges 811 865
Recycling, Yard Waste, oce 497 544
Taxes 404 328
Transfer Payments 125 125
Debt Service - .
Total Expenses 3,367 3.248
Revenues:lleSsiExpenses',':!;!!:',""":;,'1 . :J.35ff:;.~ ::'{::~:Y:'!68:: ;';';";"'\',:'/'<':1'86'
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With State & City Tax Exclusions & Transfer Station Rate Adjustment
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Collection Revenue Requirement ($000'5)
With -7.0% Rate Adjustment
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Description 2007 2008
Residential Weekly 1,370 1,274
Residential Every-Other-Week 725 674
Residential Yard Waste 175 184
Commercial 1,042 969
Commercial Recyding 1 1
Investment Interest 115 115
Miscellaneous Revenues 6 6
Total Revenues 3,434 3,223
O&M 1,136 1,008
Administration & General 393 378
Disposal Charges 811 865
Recycling, Yard Waste, OCC 497 544
Taxes 404 302
Transfer Payments 125 125
Debt Service - -
Total Expenses 3,367 3,222
Revenlies';Less'iExpenses::il;,'i'itl\!';?Wt t{;~~Wti;;~.~T:?;:::~{;t 6 8~'
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With State & City Tax Exclusions & Transfer Station Rate Adjustment
Rate Adjustment Recomn:nendations
. Performance beyond 2004 COSA
. Current rate design should be maintained
. -7% rate reduction should be across-the-board
(except Yard Waste & Commercial Recycling)
· 5.0% rate increase for yard waste & commercial
recycling (PA School District)
· Rate adjustments effective January 1, 2008
13
;.
-
.
Rate Adjustment Recommendations
Residential
~ Weekly Service
./ Proposed $1.00 reduction - new rate $26.30
~ Every-Other-Week Service
./ Proposed $2.65 reduction - new rate $19.20
./ Promotes recycling & collection cost savings
)> Yard Waste Service
./ Proposed $0.35 increase - new rate $7.40
Rate Adjustment Recommendations
Commercial
)> gO-Gallon Service
./ Proposed.$1.60 reduction - new rate $21.35
~ 300-Gallon Service
./ Proposed $5.55 reduction - new rate $73.90
>- Recycling Service CPA School District)
./ Proposed $0.55 increase - new rate $11.05
)> Cardboard Recycling Service
./ Proposed $15.00 rate if not a refuse customer
14
Current/Proposed Rate Summar-y
Residential 2007 2008
Weekl service $ 27.30 $ 26.30
Eve other week service 21.85 19.20
Yard waste service 7.05 7.40
Temporary 90-gallon service
each collection 6.85 6.85
Temporary 300-9allon service
(each collection) 19.90 19.90
Commercial 2007 2008
90 allon service $ 22.95 $ 21.35
30 allon service 79.45 73.90
Rec clin service 10.50 11.05
Temporary 90-gallon service
each collection 5.75 5.75
Temporary 300-9allon service
(each collection) 19.90 19.90
Cardboard
(without solid waste service) 15.00
Recommended Schedule
September 18, 2007
D Presentation
D Open public hearing
October 2, 2007
D Continue & close public
hearing
D Adopt ordinance
amendments
15
DATE:
To:
FROM:
SUBJECT:
~RTANGELES
WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
September 11, 2007
Utility Advisory Committee
Terry Dahlquist, Electrical Engineering Manager
Lease for Interim Light Operations Facility
Summary: As a result ofthe sale ofthe Public Works and Utilities Light Operations Building, the
City has been negotiating with the Port of Port Angeles to lease space at the Airport Industrial Park
for an interim Light Operations facility.
Recommendation: Forward a favorable recommendation to City Council authorizing the
City Manager to sign a lease with the Port of Port Angeles for leasing space for the Light
Operations function at 2007 S. 0 Street, and to negotiate minor modifications, if necessary,
and reject bids for the Light Operations Building Modifications, Project 06-37.
Background/Analysis: This item was previously discussed at the UAC and City Council. It was
pulled from the August 7, 2007 City Council agenda due to the fact that the costs for renovations at
the proposed facility exceeded available funds. Staff has modified the work package by reducing
some of the requirements and extending the completion date on some of the work tasks.
The City Council has authorized staff to negotiate an agreement to sell the current Light
Operations facility at 240 West Front Street. The new owners wish to take possession not later
than early March 2008. It is proposed to lease space for an interim facility. The goal then is to
have the Light Operations crews established in a new facility in early November, prior to the
winter storm season.
There are few spaces available of the nature required by Light Operations. Functions require a
combination of finished offices, unfinished vehicle and material storage, and outside storage. The
warehouse space, consisting of suites' A' and' B' at the Airport Industrial Park, owned by the Port
of Port Angeles, provides the most economical and expedient match to operating needs. Already
finished offices will be utilized. The Port of Port Angeles will commit to a 5-year lease, with
options to renew for two additional 5-year periods. The current base rental amount is estimated at
$4,100 per month for 10,000 square feet of space, plus $980.15 per month for the first five-year
period, for a total lease cost of $5,080.15 per month. The additional cost is associated with work to
be performed in Suite A. The base monthly rental will be subject to adjustment at the end of each
5-year lease period.
Originally it was proposed to have work in Suites 'A' and 'B' performed by a contractor on a fast
track basis with an extremely short time frame to accomplish the work. Bids were received in
August for the construction. Consequently, only one bid was received, and it was for $374,125,
about $200 per square foot.
September 11,2007 UAC
Re: Light Operations Interim Facility
Page 2
The work in Suite 'A' is approximately $50,000. The Port proposes to construct a 576 square foot
Line Room, convert one 250 square foot storage room to an office, and extend the existing HV AC
ducts and fire sprinklers to these new spaces. This is felt to be the minimum required to make the
space functional. The Port anticipates being able to complete construction in early November.
City crews would be able to move stored material while partition construction is still in progress,
so full occupancy should still be possible by mid-November, before the worst of the storm season.
The work to be performed in Suite 'B' includes the meter shop functions, and will be
accomplished during the fall and winter months when it is anticipated costs will be more
reasonable and a longer timeframe for accomplishment is possible.
The base rent for the proposed space is $4,100. If the Port performs these minimum modifications,
they have offered to accomplish this either by (1) accepting a lump sum payment from the City of
$50,000, or (2) amortizing the $50,000 cost over the length of the 5-year lease and charge the City
6.5% interest. This would require no initial payment by the City, but the Port estimates the
monthly lease rate would increase $980.15, to $5,080.15 total per month for 5 years.
Funding for the modifications will be from proceeds of the sale of the existing facility. The
monthly rent will be from the annual operating budget.
Staff recommends that the UAC forward a favorable recommendation to City Council authorizing
the City Manager to sign a lease with the Port of Port Angeles for leasing space for the Light
Operations function at 2007 S. 0 Street, and to negotiate minor modifications, if necessary. Staff
also recommends an up front payment of $50,000 for the preliminary work, and a five year
agreement for approximately $4,100 per month, subject to approval by Port Commissioners.
N:\UAC\Final\Light Operations Building Lease Rev B.doc
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Date Prepared September 17,2007
LIGHT OPERATIONS INTERIM FACILITY
RELOCATION COSTS
TO BE CONSTRUCTED IN SUITE A BY PORT OF PORT ANGELES:
1. 380 Sq Ft Line Room
2. 200 Sq Ft Foremens' Office
3. 265 Sq Ft Storage Room converted to Purchasing Office
4. Extension of existing HVAC into above spaces
5. Extension of fire sprinklers into above spaces
Total Cost: Additional $980/month to lease for 5 years, or
One lump sum payment of $50,000
SUB-TOTAL OF INITIAL PORT RESPONSIBILITY:
ADDITIONAL MOVE-IN COSTS BY CITY:
1. IT Infrastructure - Suites A & B (Minimum Required)
2. Mezzanine & Material Relocation - Suite A
3. Fencing
SUB-TOTAL OF INITIAL CITY RESPONSIBILITY:
ADDITIONAL CITY EFFORT FOR SUITES AFTER INITIAL MOVE-IN,
NO LATER THAN FEB 28, 2008:
1. Construct 705 Sq. Ft. Meter Shop
2. Construct 195 Sq. Ft. Dielectric Equipment Shop
3. Construct 170 Sq. Ft. Restroom and Locker Room
4. Pour Concrete floor in above spaces
5. Plumbing
6. New HVAC for above spaces, Items 1, 2, & 3
7. Extend fire sprinklers into above spaces, Items 1,2 & 3
8. New Lighting in Suite B
SUB-TOTAL OF POST MOVE-IN COSTS:
CONTINGENCY
TOTAL RELOCATION COSTS:
9/17/2007
30,000
20,000
10,000
50,000
14,000
12,000
6,000
16,000
17,000
10,000
8,000
50,000
60,000
133,000
7,000
$250,000
. ~....
MANAGER
RECEPTION
LINE ROOM! TRAINING
OFFICE
DISPATCH/MAPPING
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