Loading...
HomeMy WebLinkAboutAgenda Packet 10/11/2005 UTILITY ADVISORY COI~IMITTEE PUBLIC WORKS CONFERENCE ROOI'4 PORT ANGELES~ WA gB362 DmTOBER 1 1 ~ 2OD5 3-'nO .AGENDA I. CALL To ORDER II. ROLL CALL III. APPROVAL OF I~IINUTEB F'OR AUGUST C~ APPROVAL E-IF MINUTES F'OR SEPTEMBER ~ -~ 2FII"I5 IV. LATE I TEIVlS V. DISCUSSION A. DEPARTI',4ENT OF ECDLOBY FISCAL YEAR 2OI-t'7 FUNDING CYCLE APPLICATION a. c~TORMWATER PHASE '-~ RULES (VERBAL) I~.. NORTHWEST COALITION F'OR AFFORDABLE POWER VI. NEXT MEETING DATE - NOVEMBER B~ 2hr-ts VII. AD~.IOURNMENT UTILITY ADVISORY COMMITTEE Port Angeles, Washington August 9, 2005 I. Call to Order: Chairman Rogers called the meeting to order at 3:00 p.m. II. Roll Call: Members Present: Chairman Rogers, Allen Bentley, Mayor Headrick, Dean Reed, Councilmember Erickson (Out 3:40 - Back 4:04) Members Absent: None StaffPresent: Michael Quinn (4:40), William Bloor, Glenn Cutler, Scott McLain, Gary Kenworthy, Larry Dunbar, Tom McCabe, Helen Freilich, Steve Sperr (4:00), Cate Rinehart. Others Present: Brian Gawley - Daily News Paul Lamoureux - Citizen Angle Sanchez - HDR Engineering Incorporated Shawn Koom - HDR Engineering Incorporated III. Approval of Minutes: Chairman Rogers asked if there were any corrections to the meeting minutes of June 14, 2005. A minor spelling error was noted. Dean Reed moved to approve the minutes. Couneflmember Erickson seconded the motion, which carried unanimously. IV. Discussion Items: A. Household Hazardous Waste Collection Event Helen Freilich, Waste Reduction Specialist, pointed out that the City was again being asked to participate in the event sponsored by the Clallam County Environmental Health and the Depzahiient of Ecology. Grant funding pays 75% of the total costs of the event which costs approximately $62,000. There was a brief discussion. Dean Reed moved to recommend City Council authorize the Mayor to sign the 2005 agreement with Clallam County to provide a maximum of $6,000 toward the cost of the Household Hazardous Waste Collection Event. Allen Bentley seconded the motion, which carried unanimously. UTILITY ADVISORY COMMITTEE August 9, 2005 B. Electric Rate Adjustments Lan'y Dunbar, Power Resources Manager, introduced Angie Sanchez and Shawn Koom of HDR Engineering Incorporated. Ms. Sanchez distributed a handout and gave a presentation based on that information. Retail rate adjustments are needed due to a draw down of reserves, increased labor expenses, rebuilding operating, inflation of expenses and increased debt service. Based upon the 3.9% BPA tentative increase notification as of August 1st the worst case scenario is a 9.5% adjustment. Final figures should be announced the 1st of September. A discussion followed. Mayor Headrick moved to recommend City Council proceed with a public hearing on the rate study and proposed rate adjustments. Allen Bentley seconded the motion, which carried unanimously. C. Solid Waste Rate Adjustment - Pre Closure Larry Dunbar, Power Resources Manager, indicated that staff had reviewed the need for a rate increase for 2006 and proposed an adjustment of 5.0%. This increase will help cover the cost of capital projects and rate mitigation. There was a brief discussion. Councilmember Erickson moved to recommend a public hearing be set September 6th to discuss solid waste increases. Allen Bentley seconded the motion, which carried unanimously. D. Amendment No. 1 To The Consultant Agreement With Parametrix, Contract #05-06 Gary Kenworthy, City Engineer, reviewed the information contained in the packet, responded to questions, and provided clarification. He noted it was necessary to amend the agreement for design changes and added work. There was a brief discussion Dean Reed moved to recommend City Council authorize the Mayor sign Amendment No. 1 to the Consultant Agreement with Parametrix, in the amount not to exceed $130,000 for a revised total contrct amount not to exceed $599,529. Mayor Headrick seconded the motion, which carried unanimously. E. Amendment No. 1 To The Consultant Agreement With Brown And Caldwell, Contract #05.04 Steve Sperr, Engineering Manager, stated the amendment to the agreement was needed to fund the development of the Combined Sewer Overflow Reduction Plan into a Sewer Facility Plant to make it easier to apply for and receive loans and grants. There was a brief discussion. 2 UTILITY ADVISORY COMMITTEE August 9, 2005 Allen Bentley moved to recommend City Council amend the Agreement for Professional Services with Brown and Caldwell, Inc., and authorize the Mayor to sign Amendment No. 1 in the amount of $54,700, for a total contract amount not to exceed $214,700. Councilmember Erickson seconded the motion, which carried unanimously. F. Amendment No. 3 To The Consultant Agreement With CH2M Hill, Contract #04-11 Steve Sperr, Engineering Manager, explained construction support services related to the construction of utility extensions to the newly annexed area were needed as well as an adjustment cost for the facility design. A discussion followed Mayor Iteadrick moved to recommend City Council authorize the Mayor sign Amendment No. 3 to the Consultant Agreement with CIt2M Hill, in the amount of $92,588, for a total contract amount not to exceed $997,091. Dean Reed seconded the motion, which carried unanimously. G. Annexation Update Glenn Cutler, Director of Public Works and Utilities, summarized the bid process and request for proposals. A preconstmction meeting has been set for August 11th, completion of the electrical by the end of October, and completion of water/sewer by mid November. No action taken. Information only. V. Adjourn To Executive Session - 4:42p. m. Return to regular session - 5:25 p.m. yrlI. Next meeting date: July 12, 2005 Fill. AdJournment: The meeting was adjourned at 5:25 p.m. Chairman Rogers Cate Rinehart, Administrative Specialist UTILITY ADVISORY COMMITTEE Port Angeles, Washington September 13, 2005 L Call to Order: Cha'n-man Rogers called the meeting to order at 3:00 p.m. II. Roll Call: Members Present: Chairman Rogers, Allen Bentley, Mayor Hcadrick, Dean Reed, Members Absent: Councilmember Erickson StaffPresent: Michael Quinn (3:23), William Bloor, Gary Kenworthy, Steve Sperr, Larry Dunbar, Tom McCabe, Cate Rinehart. Others Present: Paul Lamoureux - Citizen IIL Approval of Minutes: No action was needed on the June 14, 2005 minutes that were accidently included in the packet, which had been previously approved at the August 9, 2005 meeting. The August 9, 2005 and September 13, 2005 minutes will be addressed at the October 11, 2005 meeting. IV. Late Items: Stage 3 Water Shortage Discussion Items: .4. Agreed Order With The Department Of Health Steve Sperr, Engineering Manager, noted that negotiations had been made to formally address the installation of a surface water treatment plant for the City, aa well aa the need for corrosion control treatment aa a result ofpaat exceedances of the copper action level. Changes have been made for the delivery date of thc Water Treatment Plant conztr~ction documents from February 28, 2005 to November 30, 2005 and the cons~'uctiun completion date from December 31, 2007 to August 30, 2008. There was a brief discussion. Dean Reed moved to recommend City Council approve the terms of the Agreed order and authorize the Public Works and Utilities Director to sign thc Agreed Order and negotiate minor modifications to it. Allen Bentley seconded the motion, which carried unanimously. UTILITY ADVISORY COMMITTEE September 13, 2005 B. Electric Rate Adjustments Larry Dunbar, Power Resources Manager, distributed a handout, reviewed the information contained in the packet, responded to questions, and provided clarification. There was a brief discussion. Staffwas directed to reword the memo to Council showing the original proposed increase was not going to be as large. Allen Bentley moved lo recommend City Couuell consider adoption of the proposed retail rates on September :20, :2005 now that the Bonneville Power Adminlstrafiou had finalized their wholesale power rate adjustment. Wording would include 6.5% increase in lieu of the original 9.5% increase. Mayor Iteadrlek seconded the motion, which carried unanimously. C. Electric And Solid Waste Rate Surveys Larry Dunbar, Power Resources Manager, distributed a handout and reviewed the information. It was noted that the proposed rates were well within the average rates of the region and the Puget Sound area. A discussion followed. No action taken; Information only. VI. Late Item: Stage 3 Water Shortage Gary Kenworthy, City Engineer, indicated that the Elwha flows were low and that staffwould most likely recommend that Council proceed to the next level. It was explained that this stage is a voluntary restriction requesting citizens water their lawns every other day. No action taken. Information only. VII. Next meeting date: October 11, 2005 VIII. Adjournment: The meeting was adjourned at 3:46 p.m. Chairman Rogers Cate Rinehart, Administrative Specialist H 2 I RTANGELES W A $ H ~ N G T O N, U. $, A, UTILITY ADVISORY COMMITTEE MEMO DATE: October 11, 2005 To: UTILITY ADVISORY COMMITTEE FROM: Stephen Sperr, P.E. SUBJECT: Department of Ecology Fiscal Year 2007 Funding Cycle Application Summary: The City has committed to completing a number of Combined Sewer Overflow (CSO) projects in the coming years. While the schedule to complete all these projects is still being negotiated with the Department of Ecology (DOE), an application for grant and/or loan funding through DOE is due October 31, 2005 for the Fiscal Year 2007 Funding Cycle. Recommendation: Forward a favorable recommendation to City Council to authorize the Mayor to sign the Fiscal Year 2007 Funding Cycle Application certification, in an amount not to exceed $600,000. In addition, ff a grant or loan is approved, authorize the Mayor to execute the agreement. Background/Analysis: The City is currently negotiating an updated CSO Plan for the completion of a number of projects that will reduce CSO events in the future. The next construction project to be completed under the CSO Plan, regardless of the required date of completion, is the installation of a gravity sewer main from the north end of Francis Street to the City's Wastewater Treatment Plant. This project is estimated to cost a total of approximately $2,900,000 in 2005 dollars. The design portion of this project is currently being estimated at $500,000, though this figure is being reviewed. The DOE, under its Water Quality Program, administers the following three financial assistance programs: Centennial Fund (grants & loans) The grants under this program go mainly to hardship communities. There was, in the FY2005 funding cycle, $2.6 million in so-called Legislative Provisos, where specific projects were earmarked for grant funding by the State Legislature. There is no guarantee there will be any in the FY2007 funding cycle. PW 0101_06 [Revised 07/24/03] Section 319 (grants) This programs provides grants to non-point activities, not construction projects. State Revolving Fund (loans) This is the program that funds most of the construction projects that fall above the minimtun scoring level for a funding cycle's ranking process. The Fiscal Year 2007 Funding Cycle has a unified application form that is required to be filled out by the applicant. The details of this application will be outlined by City staff at the UAC meeting. The important thing to emphasize is that the DOE structures its grant and loan funding programs such that construction dollars are not available until the design is complete. Because of this, we are moving forward with requesting funding for the design portion of the Francis Street Sewer Project. In order to submit the application an authorized representative of the City must sign the application. We are recommending to the UAC that they forward a favorable recommendation to the City Council as stated in the recommendation above. A separate funding program administered by the Washington State Public Works Board, called the Public Works Trust Fund (PWTF), has a separate funding cycle and application process. The City plans to submit an application for a PWTF loan in the spring of 2006 for construction dollars to cover the rest of the Francis Street Sewer Project costs. FY2007 Application pOR?ANGELES W A S H I N G T O N, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE: October 11, 2005 TO: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director for Power Systems SUBJECT: Northwest Coalition for Affordable Power Summary: A broad based group of utilities, government agencies, industrial and commercial customers, and other organizations have formed a coalition to put pressure on the Bonneville Power Administrator to propose a wholesale power rate for the next rate period (October 2006 to September 2009) that is more in line with rates in effect prior to the "energy crisis" of 2001. Recommendation: Discuss the purpose and approach of the coalition. Consider recommending a resolution in support of the coalition. Background/Analysis: About two months ago, some of the larger utilities in the Western Public Agencies Group (WPAG) began an effort to pressure BPA into setting the level of its wholesale rates in the next rate case at a level that would help preserve the economy of the Northwest. The rate levels that have been in effect since the "energy crisis" in 2001 have had a huge effect on the economy of the Northwest. Now that the "crisis" is behind us, the Northwest needs to have electric rates that will allow business and industry, along with residential customers, to recover financially and form a stronger economy. Wholesale power rates prior to 2001 were about $23 mWh. Rates during the "crisis" ranged up to $35 per mWh, and current rates are about $30 per mWh. The coalition is proposing a rate of $27 per mWh for the next rate case (Oct. 2006 to Sept. 2009). BPA's initial numbers are being proposed at a rate of $34 to $39 per mWh with much of the increase relating to risk. Rates this high will continue to depress the vitality of the Northwest economy. The purpose of the coalition is to form an integrated grassroots advocacy and media relations in support ora targeted federal lobbying effort. The organization is stressing that this will not be a campaign to '~oash" BPA or the delegation. The focus will be on the utility customers in the Northwest and consequences of the economy, jobs, and competitiveness if rates are not reduced in the next rate case. The campaign is being coordinated by McBee Strategic consulting, along with APCO Worldwide and will be an effort throughout Washington, Oregon, Idaho, and Montana. They will also manage the federal component out of Washington D.C. N:\UAC~Original~NW coalition for Affordable Power.doc UAC Memo- Northwest Coalition for Affordable Power October 11, 2005 Page 2 The focus of the campaign will be to present the facts concerning the costs and risks for the Bonneville Power Administration. Based on the data that has been made available by BPA, a target rate of $27 per mWh is a realistic and achievable objective. On the 27th of September, the City of Port Angeles electric utility became a member of the coalition, prior to the letter that was sent to the delegation (attached). After discussion at UAC, the City may consider joining the organization not only as the electric utility, but as the City of Port Angeles municipality as well. Many of the organizations within the City may also be contacted to join the organization. Attachments: Delegation letter Participating entities N:\UACSOriginal\NW coalition for Affordable Power.doc Dear Pacific Northwest Delegation member: We, the'members of the Northwest Coalition for Affordable Power, would like to thank you for your leadership on electricity issues and your commitment to low-cost electricity in the Northwest. As we enter the Bonneville Power Administration's (BPA) FY2007- 2009 rate case, we believe that in order to ensure a rate reduction and a stable economy, your continued oversight and leadership is critical to success. The energy crisis in California and throughout the West had a negative and dramatic effect on BPA's historic ability to offer low cost power. As a result, BPA raised its wholesale rates by approximately 50% during the past five years. With the energy crisis behind us, we believe lower rates now are possible and that it is well within BPA's ability to present scenarios that detail a wholesale power rate of $27 per megawatt hour, inclusive of risk, as part of the FY2007-2009 rate case. In February, BPA embarked on a "Power Function Review" (PFR) process to determine agency program costs for the FY2007-2009 rate case. Throughout the PFR, many BPA customers have identified cost savings and creative new approaches to BPA's budget that were not included by the agency. In fact, at the conclusion of the PFR process, BPA recognized that many customers had commented that BPA's cost reductions were not enough. They stated that, "BPA is also not satisfied that these costs are as low as they can reasonably be while still meeting its mission requirements." BPA promised "to seek further reductions before submitting its FY2007-2009 final power rate proposal." The agency further pledged that it "will seek comment early next year on these further cost changes, prior to incorporating them in the final power rate proposal." As a result, uncertainly over program costs remain. While the PFR process provided some visibility into the elements that make up BPA's program costs, we believe the continued examination of costs and risks promised by BPA would best be accomplished by having BPA present scenarios that details a $27 per megawatt hour rate to the region that would provide for the necessary regional debate on our collective priorities. Further, we believe the region would be best served by having BPA's revenue requirement and line item costs, which are currently not included, detailed as part of the rate case similar to other utilities in the region. We believe that all program costs must continue to be examined throughout the rate case in order to maximize cost savings for the next rate period. If program costs and risk are considered together throughout the fall, a wholesale rate of $27 per megawatt hour is achievable. A $27 per megawatt hour represents an approximate 10% reduction from the FY2006 rate recently announced by BPA. The Coalition believes that only BPA can effectively present these scenarios due to the lack of visibility into line item budget numbers. However, we are committed to continuing to work with BPA to identify potential savings as many have done throughout the process thus far. We are commilted to the continued success of BPA and believe that BPA is a unique and powerful economic driver for the entire region. However, as detailed above, we believe that BPA's rate process can be more transparent and credible, which ultimately will lead to lower rates for the region. Therefore, we ask your support in requesting that BPA take the following three actions: 1. Prepare scenarios that provide for a $27 per megawatt hour inclusive of risk in the coming rate case for regional discussion. 2. Include the revenue requirement as part of the FY2007-2009 rate case, and 3. Provide the region line item budget information on program costs that allow for transparency and review by BPA customers. There are few factors that have a larger impact on our regional competitiveness than power rates. Moving beyond the record prices of the energy crisis and ensuring that the rate case is the most effective process possible will help ensure economic stability. Thank you for your consideration of our request and we look forward to working with you and BPA over the coming months. Sincerely, Northwest Coalition for Affordable Power $27( 'o7 The right BPA rate for our economy Northwest Coalition for Affordable Power Coalition Members The Northwest Coalition for Affordable Power is a broad-based alliance consisting of cities, school districts, businesses, chambers, utility districts and a host of others. Our Coalition is committed to securing fair power rates for Northwest electricity customers from the Bonneville Power Administration, which provides nearly half the electricity used in the Northwest. Our common goal is to urge BPA to set a $27 per megawatt hour rate target - The right BPA rate for our economy Utilities: Benton REA Prosser, WA Benton PUD Kennewick, WA Canby Utility Canby, OR City of Port Angeles Electric Utility Port Angeles, WA Clallam County PUD No. 1 Port Angeles, WA Ellensburg City Light Ellensburg, WA Franklin County PUD Pasco, WA Grays Harbor County PUD Aberdeen, WA Lakeview Light & Power Lakewood, WA Mason County PUD No. 1 Shelton, WA Nespelem Valley Electric Cooperative Nespclem, WA Pacific County PUD No. 2 Raymond, WA Snohomish County PUD Everett, WA Tanner Electric Cooperative North Bend, WA Local Governments: City of Ellensburg Ellensburg, WA City of Forks Forks, WA City of Sequim Sequim, WA City of Westport Westport, WA Franklin County Pasco, WA Grays Harbor County Montesano, WA Prosser Public Hospital District Prosser, WA Organizations: Association of Washington School Principals Olympia, WA Columbia-Snake River Irrigators Association Kennewick, WA Greater Pasco Chamber of Commerce Pasco, WA Makah Museum Neah Bay, WA Skagit Valley Hospital Mount Vernon, WA Washington State Grange Olympia, WA 10-04-05 Washington State School Directors Association Olympia, WA Publle Agencies: Housing Authority of the City of Pasco and Franklin County Pasco, WA Kennewick School District Kennewick, WA Quillayute Valley School District Forks, WA Sequim School District Sequim, WA Companies: AgriNorthwest Pasco, WA Allen Logging Co Forks, WA Archways, Inc. Seattle, WA Aqua Quip Seattle, WA Auto Machine & Supply Canby, OR Balcom and Moe, Inc Pasco, WA Bellevue Office Furniture Bellevue, WA Canby Disposal Co Canby, OR Centennial Home Inspections Woodinville, WA CFO2GO Bothell, WA Clallam Bay Grocery Clallam Bay, WA DialPro Northwest Edmonds, WA Emerald City Light, Inc. Renton, WA Forest Hill Veterinary Hospital Auburn, WA Forks Prairie Mart, Inc. Forks, WA Forks Sand & Gravel Forks, WA Forever Resorts Port Angeles, WA Four Seasons Cleaners Seattle, WA Freedoc LLC Snoqualmie, WA GM Nameplate Seattle, WA Green Creek Wood Products, LLC Port Angeles, WA Hangfire Seattle, WA Heartland Payment Systems Seattle, WA Henry's Restaurant Richland, WA High Tide Seafoods Port Angeles, WA Hoquiam License & Transportation Agencies Aberdeen, WA Interfor Pacific Port Angeles, WA JV Northwest, Inc. Canby, OR Kettel's 76 Sequ'ma, WA Kimberly-Clark Worldwide, Inc. Everett, WA Kvichak Marine Seattle, WA Lakeside Industries Port Angeles, WA Lampson Intemational Kennewick, WA Laurier Enterprise/McDonalds Restaurant Kirkland, WA Legacy Senior Living LLC Sequim, WA Lierman Bus Service Comell, WA McDonald Employment Services Seattle, WA Northwest Reps Seattle, WA PQ Corporation Canby, OR Paratex Pest Control Seattle, WA 0-04-05 Personnel Management Services, Inc Kirkland, WA The Plastiform Company Renton, WA Portac Inc Beaver, WA Reiban & Rosen Ine Seattle, WA Rite-Aid Corporation Camp Hill, PA Russ Dean Ford and Family RV Pasco, WA S & S Hospitality, Inc. Kennewick, WA Seattle Office Furniture Seattle, WA Sherwood Assisted Living Sequim, WA Time Equipment Company Bellevue, WA Tri-Cities Motor Sales Pasco, WA Veca Electric Seattle, WA Washbums General Mdse Inc. Neah Bay, WA Washington Alarm, Inc Seattle, WA Washington Fruit & Produce yakima, WA Wilder Auto Center Port Angeles, WA 10-04-05