HomeMy WebLinkAboutAgenda Packet 11/13/2007
Utility Advisory Committee
Public Works Conference Room
Port Angeles, W A 98362
November 13,2007
I. Call To Order
II. Roll Call
III. Approval Of Minutes For October 9,2007
IV. Late Items
V. Discussion Items
A. USDA Service Agreement
B. Water Use Efficiency Schedule
C. Tree Trimming Options In City Rights Of Way
D. Ordinance Amendment To Establish Energy Conservation Loans
E. Energy/W ater Conservation Device Purchase
VI. Next Meeting Date: December 11,2007
VII. Adjornment
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Utility Advisory Committee
PublIc Works Conference Room
Port Angeles, W A 98362
October 9,2007
3:00 P.M.
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L Call To Order
Chairman Reed called the meeting to order at 3:00 p.m.
IL Roll Call
Members Present:
Chairman Reed, Karen Rogers, Grant Munro (3:13), Betsy
Wharton, Orville Campbell
Members Absent:
None
Staff Present:
Mark Madsen (3:13), Bill Bloor (3:18), Yvonne Ziomkowski
(3: 19), Scott McLain, Larry Dunbar, Steve Sperr (3: 17), Ernie
Klimek, Cate Rinehart
Others Present:
Brian Gawley - Daily News
IlL Approval of Minutes:
Chairman Reed asked if there were any corrections to the minutes of September 11,2007.
Orville Campbell moved to approve the minutes. Councilmember Wharton seconded the
motion, which carried unanimously.
Chairman Reed asked if there were any corrections to the minutes of September 17, 2007.
Councilmember Wharton moved to approve the minutes. Orville Campbell seconded the
motion, which carried unanimously.
IV.
Late Items:
Landfill Spill Update
V. Discussion Items:
A. Revision To Exhibit E, Bonneville Power Administration Power Sales Contract
Scott McLain, Deputy Director for Power Systems, noted that minor changes were needed in
Exhibit E to the Power Sales Contract with BP A, include metering point changes and a name
change. There was a brief discussion.
Councilmember Wharton moved to recommend City Council authorize the Director of
Public Works and Utilities to sign Revision 1, Exhibit E to the Power Sales Contract
UTILITY ADVISORY COMMITTEE
October 9,2007
between the City of Port Angeles and the Bonneville Power Administration. Mayor Rogers
seconded the motion, which carried unanimously.
B. Delegation Agreement With Bonneville Power Administration For
NERCIWECC Requirements
Scott McLain, Deputy Director for Power Systems, explained that the City is a registered entity
under the North American Electric Reliability Corporation and the Western Electricity
Coordinating Council and is responsible for certain electric reliability standards that became
effective in June of2007. This agreement shifts some responsibilities back to BP A for certain
requirements. There was a brief discussion.
Mayor Rogers moved to recommend City Council authorize the Director of Public Works
and Utilities to sign the Delegation Agreement with the Bonneville Power Administration.
Orville Campbell seconded the motion, which carried unanimously.
C. CFL Markdown Promotion Agreement
Larry Dunbar, Power Resources Manager, pointed out that the City had been offered a change-a-
light compact fluorescent lamp promotion agreement by Fluid Marketing Strategies and all City
expenses under the agreement were eligible for reimbursement. A discussion followed.
Orville'Campbell moved to recommend City Council authorize the Public Works and
Utilities Director to sign the Change-A-Light CFL Promotion Agreement. Mayor Rogers
seconded the motion, which carried unanimously.
D. Water Rate Adjustments
Larry Dunbar, Power Resources Manager, distributed a handout and gave a presentation based on
that information. Staff recommended a retail rate adjustment of7% beginning January 1, 2008.
There was a brief discussion.
Orville Campbell moved to recommend City Council proceed with a public hearing on the
updated rate study and proposed rate adjustments. Mayor Rogers seconded the motion,
which carried unanimously.
E. Combined Sewer Overflow Loan Application For FY1009
Steve Sperr, City Engineer, explained that the City had committed to completing the Phase I
Combined Sewer Overflow Projects by the end of2009. While the City has several Public
Works Trust Fund loans associated with these projects, to fully fund all the work an additional
loan is needed. A discussion followed.
UTILITY ADVISORY COMMITTEE
October 9, 2007
Councilmember Wharton moved to recommend City Council authorize the Mayor to sign
the Fiscal Year 2009 Funding Cycle Application certification, in an amount not to exceed
$5,000,000. In addition, if a grant or loan is approved, authorize the Mayor to execute the
agreement. Mayor Rogers seconded the motion, which carried unanimously.
VI. Late Item: Landfill Spill Update
Steve Sperr, City Engineer, reported that the spill, which was discovered during excavation work,
had been contained and that it appears to be from an isolated source. An action plan is being
completed to remove the contaminated material.
Information only. No action taken.
VIL
Next Regular Meeting Date:
November 13, 2007
VIIL
Adjornment:
The meeting was adjourned at 4:06 p.m.
Chairman Reed
Cate Rinehart, Admin Spec IT
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Utility Advisory Committee Memo
November 13, 2007
Utility Advisory Committee
Tom McCabe, Solid Waste Superintendent
Cooperative Service Agreement with U.S. Department of Agriculture (USDA)
Summary: USDA has provided wildlife management services during the last nine years to
alleviate bird strike hazards to aircraft in the vicinity of the City Landfill, which has recently been
converted to a Regional Transfer Station. The current agreement will expire on December 31,
2007, and a new agreement for the period of January 1, 2008 to December 31, 2008 needs to be
executed.
Recommendation: Information Only
Background/Analysis: The USDA has provided services to the City of Port Angeles since
January 1998 to alleviate bird strike hazards to aircraft in the vicinity of the airport and landfill.
An agreement with the United States Department of Agriculture (USDA) to provide wildlife
management services is required in the current Regional Transfer Station permit. The Regional
Transfer Station permit, in part, is dependent upon the continuance of the ongoing effort to
alleviate bird strike hazards to aircraft, which might result from the operation of the Regional
Transfer Station.
Services are being reduced in 2008 due to the bird activity being significantly reduced as a result
of the conversion from a landfill to a transfer station. After 2008 the City has no plans to continue
utilizing services with USDA. The 2007 cost for USDA services was $71,828.
The new agreement is $43,686 for the period of January 1, 2008 to December 31, 2008.
The work involved is consistent with the Wildlife Hazard Assessment and Management Plan
developed by USDA in partnership with the City of Port Angeles and the Port of Port Angeles.
Sufficient funds have been budgeted for calendar year 2008.
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Utility Advisory Committee Memo
November 13, 2007
Utility Advisory Committee
Ernie Klimek, WaterlWastewater Collection Superintendent
Water Use Efficiency (WUE) Program Goals
Summary: The Water Use Efficiency Rule (WAC 246-290) went into effect January 22,2007
mandating that water purveyors establish goals within one year of this date as part of a Water Use
Efficiency Program. Goals must be approved by the "elected governing body" and must include a
public forum or meeting to provide opportunity for consumers and the public to participate and
comment on the water use efficiency goals. The schedule to accomplish this and the preliminary
draft goal for the public forum are provided below.
Recommendation: For information purposes; no action requested
Background/Analysis: The Water Use Efficiency Rule (WAC 246-290) went into effect January
22, 2007 mandating that water purveyors establish goals within one year of this date as part of a
Water Use Efficiency Program. Goals must be approved by the "elected governing body" and
must include a public forum or meeting to provide opportunity for consumers and the public to
participate and comment on the water use efficiency goals. It is noted that a public hearing is not
required for this. The schedule to accomplish this and the preliminary draft goal for the public
forum are provided below.
The proposed schedule is as follows:
November 12, 2007
November 26, 2007
December 11, 2007
December 18, 2007
Provide two week advance notification of the public forum
Public forum for WUE goal(s)
Utility Advisory Committee to review/refine goal(s)
City Council Meeting - Approve goal(s)
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UAC Memo- WUE Program
November 13,2007
Page 2
Staffwill provide a presentation on the WUE program and discuss the draft goal shown below as
well as receiving comment from consumers and the public. The draft goal to be presented is:
The City of Port Angeles Water Utility will embark on a program to achieve a one percent
reduction in distribution system leakage per year for calendar years 2008-2013. The City will
also promote water use efficiency by:
1) Identifying and reducing distribution system leakage through leak detection surveys.
2) Improving the accuracy and accountability of the system through meter replacement
and calibration.
3) Implementing water use efficiency measures across the Utility's customer classes.
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Utility Advisory Committee Memo
Date:
May 9, 2006
To:
Utility Advisory Committee
From:
Terry Dahlquist, Electrical Engineering Manager
Subject:
Tree Trimming Alternatives in City Rights-of-way
Summary: Tree trimming costs are escalating faster than budgets due to a shortage of qualified
tree trimmers. Trimming required to protect overhead power lines is falling increasingly behind.
In September, the UAC requested staffto evaluate alternatives, including converting overhead
lines to underground, in order to provide needed safety and reliability within reasonable budgets.
Recommendation: Information Only.
Background/Analysis: For several years, the City has contracted with Asplundh Tree Expert Co.
to trim those trees that ,are close enough to overhead power lines to create safety hazards.
Asplundh is the only trimmer in the region certified to work around energized power lines.
Because they are unable to hire enough qualified people, they cannot keep up with the demand.
This year the City had to pay $200/hour plus expenses for two people to come here from Illinois
and Texas. The higher cost for travel and overtime means the City will spend more money this
year to get less trimming accomplished, and get even further behind. In its September meeting,
where this issue was initially discussed, the UAC requested staff to examine different options for
the future.
There are five options that have been identified:
1. Cut down trees conflicting with power lines in public rights-of-way.
2. Convert overhead lines to underground in areas with substantial vegetation.
3. Assign City line crews to perform tree trimming.
4. Work with PUD to co-sponsor a new trimming crew.
5. Continue to hire Asplundh as we have been doing.
Following is an evaluation of each option:
N:\UAC\Final\Tree Trimming.doc
Tree Trimming Alternatives
November 13, 2007
Page 2
Option 1:
Bonneville Power Administration (BP A) takes the tree removal approach for most of their
transmission lines. Last year, BP A removed over 5,000 trees along a portion ofthe transmission
line supplying Port Angeles. Unfortunately, removing any trees within the City is more noticeable
and never popular.
Staff identified three locations this year that were in critical need of trimming, and trees were
removed instead of trimmed. These locations were reviewed with the City's Department of
Community and Economic Development (DCED) in advance, and received their approval prior to
removal. Removing any trees usually creates some criticism, but so do power outages and tree
fires. It is proposed to continue selective tree removal with DCED' s approval. Locations that
seem particularly sensitive can be replanted with slower growing species.
Totally removing trees below power lines costs more than trimming, but is the most economical
option for fast-growing trees. As an example, three trees on the west side of Safeway were
removed instead of being trimmed. Trimming would have cost perhaps $700, but has needed to be
done every two or three years. The removal of these trees cost $2,500, but the problem is gone.
Option 2:
Converting existing overhead lines within the City to underground is an expensive alternative.
Typically, underground installations are about 10 times the cost of overhead construction.
Underground installation in the City is complicated by digging around existing utilities,
maintaining service to existing overhead customers, and cutting and patching concrete or asphalt.
Neither does underground construction provide a permanent solution. Utilities, including Port
Angeles, are finding that underground cables installed 30-40 years ago are starting to fail. If the
high initial cost needs to be repeated in 30 years, there is not a significant annual savings compared
to tree trimming.
Several actual locations were examined to compare trimming with underground conversion. The
Safeway location in Option 1 was one typical of those studied. Costs shown are the actual or
estimated initial amounts, and those amounts averaged over the time before repetition is required.
Trimming of 3 trees:
Removal of 3 trees:
Converting Overhead Line
to Underground:
Cost
$2,000
$2,500
A vg. Annual Cost
$667 (3-year cycle)
(None)
$18,000
$600 (30-year life)
Converting the power line by Safeway to underground would have been 40% of the entire year's
trimming budget just to bypass three trees.
Option 3:
Until about 10 years ago, Light Operations crews performed all the tree trimming required in the
City. This provided fill work during slow periods ofline construction. Until a few years ago, they
would also work on whatever trees Asplundh did not have time to get to. More recently, the Light
Operations work volume has been too great to allow any time for linemen to trim trees.
The number of new housing developments requiring Light Operations crews to install power
infrastructure has dropped dramatically this year. A year from now, our line crews may have time
again to address some tree trimming issues. Paying linemen to trim trees may not seem cost
effective, but in actuality it would be no more expensive than flying trimmers in from Illinois and
Texas and housing them in Port Angeles.
Option 4:
Clallam Count Public Utility District #1 (PUD) has an Asplundh crew working for them full time.
They have just formed a second crew internally after trying to recruit people for about a year.
Unfortunately, they have such a large backlog that it may be years before they can release their
Asplundh crew, or have any spare time of their own. PUD fully expects to keep both their crew
and the Asplundh crew busy for the available future. While they have discussed forming a second
internal crew, that is not part oftheir immediate plans due to the potential impact on rates. There
is the possibility the City could share a second crew with PUD, but it will take some time to
establish and organize. It does not seem that PUD can be of any assistance to our situation any
time in the immediate future.
Option 5:
Asplundh has been generally doing a good job, but they never get as much done as is needed.
Even if a crew was available, the City probably could not afford to get everything done. While the
City can continue with Asplundh, trimming will likely continue to get further behind if that is all
that is done every year.
Staff Approach:
For cost reasons, staff will be implementing a combination of Options 1,3, and 5. The approach to
tree trimming will be as follows:
1. Continue doing an annual survey, as we now do, and evaluate each tree for potential
removal instead of trimming. Those regarded by Engineering as candidates for removal
would be routed to DCED for concurrence. Where recommended by DCED, new slower-
growing trees would be replanted.
2. Continue hiring Asplundh for 3-4 weeks a year. Their first priority would be removal of
condemned trees, followed by trimming any critical locations identified.
3. Use Light Operations crews for trimming less critical locations when not occupied by other
operational duties. If one crew could spend a few hours a week on a regular basis, it would
help considerably.
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Utility Advisory Committee Memo
November 13, 2007
Utility Advisory Committee
Larry Dunbar, Power Resources Manager
Energy Conservation Loans
Summary: At the June meeting, the Utility Advisory Committee supported a staff
recommendation to offer energy conservation loans. At the September meeting, the Utility
Advisory Committee directed staff to complete additional research and return with more
information.
Recommendation: Forward a favorable recommendation to City Council to 1) approve
additional loan guarantee agreements with lenders, and 2) adopt an ordinance establishing a
conservation fund.
Background/Analysis: At its September meeting, the Utility Advisory Committee directed staff
to assess the interest our largest customers have in conservation loans, further research options for
outsourcing loans, and draft an ordinance to establish a conservation fund. Staff surveyed some of
our largest customers about conservation loans, most of which expressed interest if the loan terms
and conditions were competitive. Staff further researched and considered outsourcing loans and
recommends that additional agreements be negotiated with lenders to guarantee loans (similar to
the attached agreement with First Federal Savings and Loan Association to guarantee residential
conservation loans). As part ofthe agreement lenders would: review loan applications; originate,
secure, and service loans; and the City would guarantee loans in exchange for a more favorable
interest rate.
Staff believes that customer participation in the conservation program can increase by expanding
loan guarantees to include commercial loans and by partnering with additional lenders. Staff met
with two local lending institutions last week to determine their interest in such an arrangement.
Staff recommends that a new agreement be negotiated with lenders for City Council consideration.
A draft ordinance has been prepared to establish a conservation fund that should be adopted to
support current business practices and the recommendations herein.
Attachments: 1) Draft Conservation Fund Ordinance
2) Loan Guarantee Agreement with First Federal Savings and Loan Association
N:\UAC\Final\Conservation Loans.doc
Chapter 3.25
ENERGY CONSERVATION FUND
Sections:
3.25.010 Created.
3.25.020 Receipts and Expenditures.
3.25.030 Surplus.
3.25.040 Loan Guarantee.
3.25.010 Created. There is hereby established in the City Treasury a fund for the fiscal
administration of moneys for the operation of the Energy Conservation Program. The fund shall
be known and designated as the Energy Conservation Fund.
3.25.020 Receipts and Expenditures. All money received for energy conservation from
all sources shall be paid into the Energy Conservation Fund. All expenditures incurred in
operating, administering, and maintaining the energy conservation program of the City shall be
paid out of the Energy Conservation Fund.
3.25.030 Surplus. All money remaining in the Energy Conservation Fund at the end of
each month after the payment of all outstanding current expenses of the Energy Conservation
Fund shall be retained in the Energy Conservation Fund for and subject to the payment of all
energy conservation program expenses.
3.25.040 Loan Guarantee. The Public Works and Utilities Director shall have authority
to use the uncommitted amounts within the Energy Conservation Fund to guarantee conservation
loans under agreements with lending institutions in accordance with RCW 35.92.360. A cash
balance equal to ten percent of all loan guarantees shall be set aside within the Energy
Conservation Fund.
AGREEMENT
AGREEMENT entered into this .!Jtsd... day of '7'\e1O ~ ./, 1998, by
and between The City of Port Angeles (hereinafter called "the City), and First Federal Savings
and Loan Association of Port Angeles (hereinafter called "First Federal).
It is agreed that the City will guarantee loans to City customers made by First Federal
under the terms and conditions of this Agreement. The loans must be for energy or water
conservation measures in existing structures that do not result in conversion from another fuel
source to electrical energy.
Either party may terminate this contract with 60 days written notice. Such termination
shall not alter the obligation of the parties as to loans that have been previously committed.
Definitions
"City Customers" are owners of existing structures who have an active account for
utility services with the City.
"Eligible Measuresl! are improvements included in the City's energy conservation plan
which are.made to existing stroctures.
hLoan Fees" are costs associated with preparing and closing a loan as described on the
attached fee schedule.
Page I of4
For purposes of this Agreement, a loan guarantee is an undertaking by the City that
if the City customer fails to make payments on the loan for a period of 120 days, and after
reasonable efforts to collect, the City will pay the remaining balance of the loan to
First Federal.
Upon the City paying the remaining balance of the loan, First Federal will deliver, endorse
and negotiate without recourse any and all notes and documents to the City and transfer any
security that it has associated with the loan for energy or water conservation measures.
Procedures
The parties to this Agreement will follow these procedures:
I. First Federal shall supply the loan application form to be used.
2. The loan application will have a statement that if the customer does not pay the
loan, the City will have the right to charge the remaining obligation of the loan on
the City's utility bill and may tenninate services ifnot paid in a timely manner.
3. First Federal wiU provide each customer with assistance in completing applications.
4. First Federal shall submit to the City a request for certification by the City that the
borrower is a Customer, the conservation measures are Eligible Measures, and the
<dollar amount of the guaranty is appropriate.
Page 2 of4
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5. The City shall determine if the borrower is a City Customer, that the
Eligible Measure will be made to an existing structure, and that the installation
of Eligible Measures will not result in a conversion from one energy source to
another. The City shall then certify these facts to First Federal.
6. First Federal shall determine the eligibility of the customer for the loan and
shall advise the customer whether or not the customer qualifies.
7. The City, after receiving a notice of completion, will certify to First Federal
that the Eligible Measures are complete and that funds may be disbursed.
8. First Federal shall disburse all funds under the loan after receiving a certificate
from the City that Eligible Measures are complete.
9. First Federal shall treat the loan offunds and its collection as it does any other
home improvement loan that it services.
10. The Weatherization Applicant will pay all Loan Fees incurred for processing the
application. They may be paid in cash or included in the loan amount.
Loan Characteristics
The loan shall be in the amount ap...proved by the Ci~ for Elil2ible Measure;. The
loan shall be repayable in equal monthly payments, including interest, over a period
of ono more than 120 months from the date of disbursing of funds. The loan proceeds
will be paid to the City Customer and the company who did the work and/or provided
the equipment for the Eligible Measures.
Page 3 of4
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The annual interest rate shaH be fixed at the beginning of the loan. The interest is
determined by adding 2.0 percent to the 5-year T-BilI rate and is determined weekly.
Underwriting Guidelines
No mortgage payments greater than 30 days past due within the last 12 months.
A
Credit Score - 640 or above as a "guideline".
No Liens or Judgments outstanding
Divorce proceedings must be final
Title Insurance (Limited Liability) request on loan amounts of$IO,OOO and above.
FIRST FEDERAL SAVINGS & LOAN
ASSOCIA nON OF PORT ANGELES
P. O. BOX 351
PORT ANGELES, W A 98362
CITY OF PORT ANGELES
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Signa~re \)
Karen L. Grandbouche
President and CEO
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Date
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WAS H I N G TON, U. S. A.
Utility Advisory Committee Memo
November 13, 2007
Utility Advisory Committee
Larry Dunbar, Power Resources Manager
Conservation Kit Purchase Contract
Summary: Staff proposes to offer City utility customers an energy and water conservation kit at
no charge. The kit would be promoted through a coupon inserted into December utility bills. The
cost to purchase and distribute kits to customers is eligible for reimbursement under the Bonneville
Power Administration's Conservation Rate Credit program.
Recommendation: Forward a favorable recommendation to City Council authorizing the
Director of Public Works and Utilities to enter into a contract for Conservation Kits.
Background/Analysis: On June 19,2006, the City Council authorized the Director of Public
Works and Utilities to implement an energy conservation program that qualifies for the Bonneville
Power Administration (BPA) Conservation Rate Credit (CRC) program. As part of the CRC
program the City can provide any customer that requests a conservation kit the following devices:
compact fluorescent lamps, a high efficiency showerhead, and high efficiency faucet aerators. The
total cost to purchase and distribute conservation kits is eligible for BP A reimbursement under the
CRC. The conservation kits are also an eligible measure under the Water Use Efficiency program.
Staff proposes to purchase conservation kits through a vendor that will ship the kits directly to
customers that return a coupon to the City. The coupon would be an insert into the December
utility bills (see attachment). Customers could return the coupon as late as January 31,2008 to
receive a kit by mail at no charge. Customers would be responsible for installation. Based on past
customer participation in similar conservation programs, the estimated total cost to purchase and
distribute conservation kits is from $50,000 to $100,000, depending on actual customer
participation. The total cost will include all applicable taxes, shipping and handling.
To ensure best value; the City will use a competitive bid process for a one year indefinite quantity
contract. The contract will include a minimum guarantee of 1,000 kits that is estimated to be
between $20,000 and $30,000. The contract will have a not-to-exceed limit of $1 00,000. Orders
will be placed monthly against the contract.
N:\UAC\Final\Conservation Kit Purchase Contract.doc
Conservation Kit Purchase Contract
November 13,2007 UAC Meeting
Page 2 of2
Staff requests that the Utility Advisory Committee forward a favorable recommendation to City
Council to authorize the Director of Public Works and Utilities to enter into a contract for
Conservation Kits.
Attachment: Conservation Kit Coupon
N:\UAC\Final\Conservation Kit Purchase Contract.doc
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Weatherwise Service
Energy & Water
Conservation Kit Coupon
Redeem This Coupon for a Free
Energy & Water Conservation Kit Including:
. Three 13-Watt Compact Fluorescent Lamps.
. Two 20-Watt Compact Fluorescent Lamps.
. One Low-Flow Shower Head.
. One Low-Flow Kitchen Sink Aerator.
. Two Low-Flow Bathroom Sink Aerators.
Follow these three eas ste s to receive our conservation kit
S~p2 S~p3
Mail this coupon by January 31, The conservation kit will be
2008 to: mailed to the customer in 3 to 4
Weatherwise Service weeks.
P. O. Box 1150
Port Angeles, WA 98362
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Step 1
Complete the Customer
Information below. Be sure to
sign the coupon in the space
provided.
Utility Customer's Name:
Port Angeles Service Address:
Mailing Address (if different than above address):
Utility Account Number:
Home Phone:
Work Phone:
Please check the box that most closely represents the water heater type your home has:
o Electric 0 Fuel oil 0 Propane 0 Solar
Please check the box that most closely represents your home:
o Single family home 0 Multi-family home 0 Commercial Building 0 Industrial Facility
Notice: This offer is only available to City of Port Angeles Electric and Water Utility customers. This offer is
limited to one kit per customer, has no cash value, and certain restrictions apply. The City reserves the right
to change terms and requirements without notice. The Customer shall indemnify and hold harmless the City,
its officers, officials, employees, and volunteers harmless from any and all claims, injuries, damages, losses
or suits, including attorney fees, arising or issuing out of or in connection with this offer, except as may be
caused by the sole negligence or willful conduct on the part of the City. This service provided in
cooperation with the Bonneville Power Administration Conservation Rate Credit program.
By signing below, I request the free energy and water conservation kit. I also agree to install and not resell
the kit and understand the terms and conditions of this special offer. I certify the information provided in this
application is complete, true, and correct.
Signature: Date: