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HomeMy WebLinkAboutAgenda Packet 11/13/2012Utility Advisory Committee Council Chambers Port Angeles, WA 98362 November 13, 2012 (4)3:00 PM AGENDA I. Call To Order II. Roll Call III. Approval Of Minutes For October 9, 2012 IV. Late Items V. Discussion Items: A. Medic I Fee Increase B. Professional Services Agreement Amendment No. 3 4 Street Stormwater Improvements, Project DR03 -2009 C. E Street Reservoir Cover Rehabilitation, Amendment 1 D. Morse Creek Hydroelectric Project Evaluation VI. Information Only Items: A. Advanced Metering Infrastructure System Update (verbal report only) B. Wireless Mobile Data System Update (verbal report only) C. Utility Discount Ordinance Amendments Update (verbal report only) D. Bonneville Power Administration FY12 Load- Shaping True -Up Charge and BP -14 Initial Rate Proposal (verbal report only) VII. Next Meeting Date: December 11, 2012 VIII. Adjournment N: \uac\final\ 111312 Other Councilmembers Present: Other Councilmembers Absent: UAC Members Present: UAC Members Absent: Staff Present: Others Present: III. Approval of Minutes IV. Late Items: Revision of order of agenda. V. Discussion Items: Max Mania Utility Advisory Committee Council Chambers Port Angeles, WA 98362 October 9, 2012 3:00 p.m. I. Call To Order Vice Chairman Dean Reed called the meeting to order at 3:02 p.m. IL Roll Call UAC Assigned Councilmembers Present: Sissi Brach, PhD., Brooke Nelson (alternate) Dan Di Guilio, Cherie Kidd, Patrick Downie, Brad Collins Dean Reed, Paul Elliott, Murven Sears II None Dan McKee; Glenn Cutler, Bill Bloor, Larry Dunbar, Sondya Wray, Byron Olson, Rick Hostetler, Nathan West, and Phil Lusk. Craig Johnson Capacity Provisioning, Inc. Jeremy Shwartz Peninsula Daily News Will Lutgen Northwest Public Power Association Gina Smith— Mueller Systems Lee Afflerbach Columbia Telecommunications Corporation Terry Mundorf Western Public Agencies Group Charles Beaudette— OlyPen Cindy Kelly Dry Creek Water Association Vice Chairman Dean Reed asked if there were any corrections to the minutes of September 11, 2012. Sissi Brach moved to approve the minutes. Paul Elliot seconded the motion, Dean Reed and Brooke Nelson abstained from the vote as they were not present for the September 11, 2012 meeting. A. Northwest Public Power Association Presentation (verbal report only by Northwest Public Power Association). Larry Dunbar, Deputy Director of Power and Telecommunications Systems introduced Will Lutgen, Executive Director, from the Northwest Public Power Association. Mr. Lutgen provided a PowerPoint presentation on the benefits of membership to the City's electric utility. A brief discussion followed. 1 B. Advance Metering Infrastructure System Update (verbal report only by Mueller Systems) Larry Dunbar, Deputy Director of Power and Telecommunications Systems introduced Gina Smith from Mueller Systems, who provided an update on the Advance Metering Infrastructure System. A brief discussion followed. C. Wireless Mobile Data Systems Update (verbal report only by Columbia Telecommunications Corporation) Larry Dunbar, Deputy Director of Power and Telecommunications Systems introduced Lee Afflerbach, Founder Principal Engineer, from Columbia Telecommunications Corporation, who made a lengthy presentation on radio frequency fields related to the wireless mobile data systems. Mr. Afflerbach also reported that phases I and H arc now complete, the system acceptance test was successful, and that phase III construction has commenced. A discussion followed. D. Bonneville Power Administration Residential Exchange Program Status (verbal report only by Western Public Agencies Group) Larry Dunbar, Deputy Director of Power and Telecommunications Systems introduced Terry Mundorf, Attorney, from the Western Public Agencies Group, who discussed the outstanding litigation related to the Bonneville Power Administration Residential Exchange Program. A brief discussion followed. E. Utility Advisory Committee Appointment Dan McKeen, City Manager, described the process used to recruit applicants for the Medic I representative vacancy on the Utility Advisory Committee. Max Mania moved to provide a favorable recommendation to City Council to appoint Michael Jacobs to serve as the Medic I representative on the Utility Advisory Committee. Murven Sears seconded the motion, which carried unanimously. F. Morse Creek Hydroelectric Project Evaluation This item was not discussed. G. Utility Rate Studies Recommendations Larry Dunbar, Deputy Director of Power and Telecommunications Systems, discussed the public hearing comments related to the rate study for the City's utilities. A lengthy discussion followed. Dean Reed moved to recommend City Council continue the public hearing on the utility rate adjustments and adopt ordinance amendments including Electric Utility option A for a 3.8% across the board rate adjustment, a 7.0% Wastewater Utility across the board rate adjustment, Solid Waste Collection Utility option C for a 4.0% rate adjustment, a 7.2% Transfer Station across the board rate adjustment, and a 50% Stormwater Utility across the board rate adjustment. Sissi Bruch seconded the motion, which carried unanimously. VI Information Only Items: A. Utility Discount Ordinance Amendments Update (verbal report only by staff) 2 V Rick Hostetler, Customer Services Manager, provided an update and shared that staff now anticipates, a significant increase to customer participation as a result of the recent amendment to the Utility Discount Ordinance. No action was taken. VII. Next Meeting Date: November 13, 2012 Adjournment: 6:30 p.m. Cherie Kidd, Mayor Sondya Wray, Administrative Specialist 3 W A S H I N G T O N U.S.A. DATE: November 13, 2012 TO: UTILITY ADVISORY COMMITTEE FROM: Ken Dubuc, Fire Chief SUBJECT: Proposed Medic I Utility Rate Adjustments Summary: Due to increases in operating costs, the City is proposing an 8% adjustment to the Medic I utility rates for 2013, followed by a 6% increase in 2014. The 2013 adjustment reflects a $0.38 increase for monthly residential rates and a $0.40 increase for monthly commercial/business rates. The 2014 adjustment will reflect a $0.31 increase for monthly residential rates and a $0.32 increase for monthly commercial/business rates. Recommendation: Forward a favorable recommendation to the City Council to: 1) Conduct a public hearing then provide a first reading of the proposed ordinance on November 20, 2012, and 2) Continue the public hearing on December 4, 2012, close the public hearing, then provide a second reading and adopt the proposed ordinance. Background /Analysis: The City of Port Angeles' Medic I program is structured as a utility supported through an enterprise fund using transport charges, a monthly utility charge, and a General Fund contribution. The enterprise fund is based upon a cost of service approach, with the last cost of service study completed in 2010. As a result of the 2010 cost of service study, the monthly residential rate was adjusted in 2011 by 9 or $.36 and the commercial/business monthly rate was adjusted by $.29. Due to recent cost increases for fuel, pharmaceuticals, and personnel, the City is proposing an 8% cost of living adjustment for 2013, and an additional 6% increase in 2014. These increases will assist the Utility with keeping pace with anticipated extraordinary increases in expenses. The cost of living adjustments represent a $0.38 increase in residential monthly rates in 2013 and a $0.31 increase in 2014. The adjustments will represent a $0.40 increase in commercial/business monthly utility rates in 2013 and a $0.32 increase in 2014. The proposed rate adjustments for all classifications are included in the attached proposed ordinance. These modest increases will stabilize the amount of General Fund support needed and will enable the utility to maintain its level of service. The next cost of service study will be completed in late 2013. Attachment Proposed fee spreadsheets Facility Medic 1 Utility 2012 Annual Fees Exhibit A 2012 Annual Fee After 2013 8% After 2014 6% Adjustment Adjustment 24 Hour Nursing Facility Crestwood $2698 $2914 $3089 Group Homes 2 Street House $8 $8.64 $9.16 Clallam Hostelries $0 $0 $0 Serenity House $947 $1023 $1084 Adult Family Homes Home Away From Home $326 $352 $373 Olympic RN Adult Family $273 $295 $313 Good Shepherds Haven $117 $126 $134 Assisted Living Laurel Park $2419 $2613 $2770 Park View Villa $5949 $6425 $6811 Peninsula Manor $398 $430 $456 St Andrews Place $1489 $1608 $1704 Jail Facilities Clallam County Adult $1000 $1080 $1145 Clallam County Juvenile $409 $442 $469 Schools Lincoln $96 $104 $110 Franklin $59.87 $65 $69 Hamilton $143 $154 $163 Jefferson $59.87 $65 $69 Peninsula College $331 $357 $378 Port Angeles High School $755 $815 $864 Queen of Angeles $235 $254 $269 Stevens Middle $566 $611 $648 Facility Apartment Buildings with Single Utility Connection 2012 Annual Fee After 2013 8% After 2014 6% Adjustment Adjustment Gerald Austin Apts $906 $978 $1037 1305 East 1st Bayview Apts $427 $461 $489 306 west l" 8 St Apts. $211 $228 $242 615 West 8' Housing Authority Apts $2967 $3204 $3396 323 East 2 Housing Authority Apts $1730 $1868 $1980 401 East 5' Morning Glory Apts $389 $420 $445 529 East 1st Rozelle Apts $432 $467 $495 212 West 3' Jean Tyson Apts $172 $186 $197 405 East Front Uptown Apts $261 $282 $299 120 South Laurel Tempest Apts $562 $607 $643 112 North Albert Maloney Heights $1165 $1258 $1333 2311 West 18th PORTANGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: November 13, 2012 To: Utility Advisory Committee From: Jonathan Boehme, Stormwater Engineer Kathryn Neal, Engineering Manager Subject: Amendment 3 to the Professional Services Agreement with PACE Engineers for 4 Street Stormwater Improvement Project, DR03 -2009 Summary: In August 2012, the City accepted a $1,000,000 Stormwater Retrofit and Low Impact Development grant from Washington State Department of Ecology for the 4 Street Stormwater Improvement Project, DR03 -2009. In order to complete the design, it is necessary to amend the design contract with PACE Engineers. Recommendation: Forward a favorable recommendation to City Council to approve and authorize the City Manager to sign Amendment 3 to the Agreement for Professional Services with PACE Engineers, in an additional amount of $148,412.19, which increases the maximum compensation under the agreement to $481,500.19, and to make minor modifications to the agreement, if necessary. Background /Analysis: In May 2012, the Department of Ecology offered the City a Stormwater Retrofit and Low Impact Development grant in an amount of up to $1,000,000 for the 4th Street Stormwater Improvement Project, DR03 -2009 which the City accepted in August 2012. Since the grant notification, City Staff and PACE have worked on a new concept that focuses on meeting the green infrastructure /LID objectives of the grant and that responds to concerns that were expressed by residents. The concept of this is to provide raingardens that are dispersed in or near street intersections, so as to minimize impacts to parking and access, and to also provide traffic calming benefits. This new concept was presented to the Department of Ecology and it has been determined that it does meet the requirements of the grant. Staff has also continued to work with neighborhood residents to refine the design concept, and PACE has done geotechnical borings and infiltration tests to determine the feasibility and design criteria for raingardens in specific locations. On November 1, 2012, a public meeting was held for the purpose of explaining the significance of stormwater water quality retrofit work, to lay out the options for intersection- focused raingardens, and to provide a draft layout of good locations based on earlier discussions with residents. About 24 members of the public attended. City staff and the designers gave a presentation, which was followed by a comprehensive question and answer session. The response at the meeting was generally quite N: \UAC \Final \2012 -11 -06 Amend 3 to PACE Agreement for 4th St Stormwater Improvements.doc Task Description Budget 1 Survey $18,423 2 Geotechnical $51,075 3 Environmental /Permitting $37,826 4 Public Involvement $13,360 5 Hydraulic /Hydrologic Analysis $15,355 6 60% Plans, Specifications and Estimate $34,111 7 90% Plans, Specifications and Estimate $31,816 8 100% Plans, Specifications and Estimate $23,748 9 Bidding and Award $9,730 10 Direct costs reimbursables $4,831 TOTAL 5240,275 Amendment 3 to Pace Agreement for 4 St. Stormwater Improvements November 13, 2012 Page 2 po and several excellent suggestions were made that will be incorporated into the design. The evening resulted in good feedback and advice that will improve the project design. A total oft fine written comments were received. While the new concept is focused on meeting the grant's green infrastructure intent, it will also hav a complimentary benefit of reducing or alleviating the flooding risk to that area by det, fining water from storms. In addition, the project includes separate funding for some limited adc itional flood mitigation improvements. TI 1e PACE design contract must be amended in order to go to full design for the new concept. Ai aendment 3 to the Professional Services Agreement will move $91,862.81 of unspent funds frt m the prior design effort and add $148,412.19 of funding for new Tasks 1 through 9. The total remaining cost to complete the design including incorporating the new LID features is $2.10,275. The work that remains to be accomplished is shown in the table below. It is recommended to forward a favorable recommendation to City Council to approve and authorize the City Manager to sign Amendment 3 to the Agreement for Professional Services with PACE Engineers, in an additional amount not to exceed $148,412.19, which increases the maximum compensation under the agreement to $481,500.19, and to make minor modifications to the agreement, if necessary. W A S H I N G T O N U.S.A. Date: November 13, 2012 To: Utility Advisory Committee From: Kathryn Neal, Engineering Manager Subject: E Street Reservoir Cover Rehabilitation, Amendment No. 1 Summary: As part of the E Street Reservoir Cover Rehabilitation design process, HDR has completed their seismic evaluation of the structure. Additional retrofit work is warranted to add to this design effort. Recommendation: Forward a favorable recommendation to City Council to approve and authorize the City Manager to sign Amendment No. 1 to the 2012 Water Utility Professional Services Agreement in an amount not to exceed $42,792, which increases the maximum compensation under the agreement from $55,000 to $97,792, and to make minor modifications to the agreement, if necessary. Background: In August 2012, Council authorized the award of the 2012 Water Utility Professional Services Agreement that had as its first project the preservation and recoating of the E Street Reservoir cover system. This agreement was awarded to HDR Engineering of Bellevue, Washington. As part of their initial tasking, a structural and seismic evaluation was required prior to commencing the design in order to ensure the integrity of the structure. The City received this report on October 26, 2012. The report indicated more extensive repairs were warranted due to severe corrosion on the cover's structural members and connections and failure of some of the reservoirs nonstructural elements. Initial structural analysis indicates that some structural elements could fail under code -based design snow load and live loads. In order to perform the repair work in the most cost effective manner, it is prudent to design and construct this structural repair work prior to the recoating and preservation work. The agreed to amount for the additional design is $42,972 as described in the following tasks: TASK DESCRIPTION AMOUNT Task 5 Post Award Construction Support 4,956 Task 6 Structural Design of Roof Retrofitting 37,836 TOTAL 42,972 Fundy are available for this work in the 2012 Water Utility budget from revenues from the 2010 Utilit j Bond. It is 'ecommended that the Utility Advisory Committee forward a favorable recommendation to City Council to approve and authorize the City Manager to sign Amendment No. 1 to the 2012 Wad er Utility Professional Services Agreement in an amount not to exceed $42,792, which inci eases the maximum compensation under the agreement from $55,000 to $97,792, and to make mit or modifications to the agreement, if necessary. PORTANGELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: November 13, 2012 To: Utility Advisory Committee From: Phil Lusk, Interim Deputy Director of Power and Telecommunications Systems Subject: Morse Creek Hydroelectric Project Evaluation Summary: Staff is seeking a recommendation from the Utility Advisory Committee to determine the future of the Morse Creek Hydroelectric project. Recommendation: Provide a recommendation to City Council to proceed with one of the following options related to the Morse Creek hydroelectric project: 1. Continue the project, including proceeding with $100,000 of repairs necessary to enable operation, or 2. Place the project in standby mode to minimize costs, and delay the repairs until if /when City Council desires operation to resume, or 3. Retire the project and maintain ownership, or 4. Sell the project and property in their present condition, after declaring them to be surplus to the City's needs. Background /Analysis: On June 12, 2012, staff updated the Utility Advisory Committee on the cost of operating and maintaining the Morse Creek Hydroelectric project. It was pointed out that during testing of the Supervisory Control and Data Acquisition System, it was discovered that the bearings on the generator will require replacement. The project is now 25 years old (half way through its 50 -year Federal Energy Regulatory Commission license period) and increased maintenance, replacements and improvements should be expected in the future to keep the project fully operational. At that time, the Utility Advisory Committee requested that staff to return with additional information after the cost of repairs was estimated. On July 10, 2012, staff shared that a $100,000 cost estimate was received for repairs necessary to enable operation. Staff recommended that due to the repair costs and future operating risk that retirement or sale of the hydroelectric facility should be considered. Staff notified stakeholders about possible retirement of the project and requested they share their needs and interests. On August 14, 2012, staff summarized the responses received from stakeholders and the Utility Advisory Committee asked staff to complete an economic analysis. At today's meeting, staff will present the results of the economic analysis, and seek a recommendation from the Utility Advisory Committee to City Council to determine the future of the project. A summary of future options for the project are set out on the following page. \pwl_ms2008 \does \UAC\Final \Morse Creek Hydroelectric Facility Recommendation.doc Options Description Advantages Compliance with the Power Sales Agreement. Maintains Tier 1 resource. Continued transmission agreement the Clallam County PUD. Reduces impact on retail rates. Disadvantages The $100,000 repair cost has a 0.5% retail rate impact. Continued operating risk with an aging facility. Continued impact on retail rates. Increases wholesale power costs absent BPA agreement. Amended transmission agreement with the Clallam County PUD. I Continue to operate the project, including proceeding with $100,000 of repairs necessary to enable operation. Place the facility in standby mode, and delay the repairs until if/when City Council desires operation to resume. 2 3 Retire the facility and maintain ownership. Delays impact on retail rates. Western Public Agencies Group and EES Consulting services would be needed to remove the facility from the Power Sales Agreement. Amended transmission agreement with the Clallam County PUD. Termination of FERC license. Potential decommissioning costs maybe required by FERC. 4 Sell the facility and property in their present condition, after declaring them to be surplus to the City's needs. 2 parties have recently expressed interest. Likely eliminates impact on retail rates. Avoids potential decommissioning costs. Could avoid Power Sales Agreement complications and costs. Terminated transmission agreement with the Clallam County PUD. Transfer of FERC license. Sale is uncertain. 5 Pursue entering into a long -term power sales agreement with a potential purchaser A commitment from another utility to help fund the cost of operating the facility. Due to market conditions and since the facility is not considered to be a renewable resource, this option is not worthy of further consideration at this time Morse Ci eek Hydroelectric Project Evaluation Novembe 13, 2012 Page 2 Summary of future options for the Morse Creek hydroelectric project