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HomeMy WebLinkAboutAgenda Packet 12/11/2012I. Call To Order II. Roll Call III. Approval Of Minutes For November 13, 2012 IV. Late Items V. Discussion Items: A. Industrial Transmission Wholesale Power Rate Ordinance Modification VI. Information Only Items: A. Information Technology Grant Award (verbal report only) B. Wireless Mobile Data System Update (verbal report only) C. Utility Discount Ordinance Amendments Update (verbal report only) VII. Next Meeting Date: January 8, 2013 VIII. Adjournment N \uac\final\1 21 112 Utility Advisory Committee Council Chambers Port Angeles, WA 98362 December 1 1, 2012 3:00 PM AGENDA January 22, 2013 City Council/UAC Work Session with special briefing on Landfill Bluff Stabilization Project Alternatives Other Councilmembers Present: Other Councilmembers Absent: UAC Members Present: UAC Members Absent: Staff Present: Others Present: III. Approval of Minutes IV Late Items: None V. Discussion Items: Max Mania A. Medic I Fee Increase Utility Advisory Committee Council Chambers Port Angeles, WA 98362 November 13, 2012 3:00 p.m. L Call To Order Chairman Dan DiGuilio called the meeting to order at 3:02 p.m. II. Roll Call UAC Assigned Councilmembers Present: Dan Di Guilio, Sissi Bruch, PhD. (3:05) Cherie Kidd, Brooke Nelson, Patrick Downie, Brad Collins Dean Reed, Paul Elliott, Murven Sears II, Michael Jacobs N/A Ken Dubuc, Glenn Cutler, Heidi Greenwood, Phil Lusk, Sondya Wray, Byron Olson, Rick Hostetler, Nathan West, Kathryn Neal and Jonathan Boehme. Jeremy Shwartz PDN Cheryl Baumann North Olympic Peninsula Lead Entity Chairman Dan Di Guilin asked if there were any corrections to the minutes of October 9, 2012. Dean Reed moved to approve the minutes. Max Mania seconded the motion, which carried unanimously. Ken Dubuc, Fire chief, discussed the 8% adjustment to the Medic 1 utility rates for 2013, and 6% increase followed in 2014. The adjustments reflect for residential and commercial/business rates. Medic 1 fee rate increase will assist the Utility with the recent cost increases for fuel, pharmaceuticals, and personnel. There was a brief discussion. Max Mania moved to recommend 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. Dean Reed seconded the motion, which carried unanimously. 1 B. Professional Services Agreement Amendment No. 314 Street Stormwater Improvements, Project DR03 -2009 Kathryn Neal, Engineering Manager introduced the Amendment 3 to the Professional Services Agreement with PACE Engineering for the 4 Street Stormwater Improvement Project. The City accepted a $1,000,000.00 grant from the Stormwater Retrofit and Low Impact Development. In order to complete the design, an additional amount of $148,412.19 to fund new task introduced. Jonathan Boehme gave a PowerPoint presentation on the update. There was a lengthy discussion. Sissi Bruch moved to recommend City Council to approve and authorize City Manager to sign Amendment 3 to the Agreement -for Professional Services with PACE Engineers, in an addition 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. Paul Elliot seconded the motion. Max Mania motioned for this item to return and be updated to the Utility Advisory Committee at 60% of the project completion. Sissi Bruch seconded the motion, which carried unanimously. C. E Street Reservoir Cover Rehabilitation Amendment No. 1 Kathryn Neal, Engineering Manger discussed the E Street Reservoir Cover Rehabilitation. As part of the design process, FIDR has completed their seismic evaluation of the structure. Additional retrofit work is warranted to add to this design effort. An additional amount of $42,792.00 is needed for the new tasks. A discussion followed. Dean Reed moved to recommend 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. Paul Elliot seconded the motion, which carried unanimously. D. Morse Creek Hydroelectric Project Evaluation Phil Lusk, Interim Deputy Director of Power and Telecommunication Systems gave a PowerPoint presentation on the Morse Creek Hydroelectric Project. The determination is needed for the future of the Morse Creek Hydroelectric project. A lengthy discussion followed. Dean Reed moved to recommend City Council to review Option 2 to place the project in standby mode to minimize costs, and delay the repairs until if/when City Council desires operation to resume, and not to invest $100,00 of repairs necessary to enable operation. Max Mania seconded the motion, which carried unanimously. YI. Information Only Items: A. Advanced Metering Infrastructure System Update (verbal report only). Information only. An update was given on the project being 18 months behind schedule but still within task budget, and in spring of 2013 the project will be able to move to the next phase. No action taken. B. Wireless Mobile Data System Update (verbal report only). Information only. An update was given on the wireless mobile data project is ahead of schedule and under 2 VIII. budget. No action taken. C. Utility Discount Ordinance Amendments Update (verbal report only). Information only. An update was given that discount applications were received from 100 customers. No action taken. D. Bonneville Power Administration FY12 Load Shaping True -Up Charge and BP-14 Initial Rate Proposal (verbal report only Information only. An update was given on the proposed BPA rate increase on.electric and transmission rates. No action taken. VIL Next Meeting Date: Adjournment: 4:48 p.m. December 11, 2012 Cherie Kidd, Mayor Sondya Wray, Administrative Specialist PORTAELES W A S H I N G T O N U.S.A. Utility Advisory Committee Memo Date: December 11, 2012 To: Utility Advisory Committee From: Phil Lusk, Interim Deputy Director of Power and Telecommunications Systems Subject: Industrial Transmission Wholesale Power Rate Ordinance Modification Summary: On November 5, 2012, the Bonneville Power Administration revealed in the October wholesale power bill that the City's Tier 1 Cost Allocator basis (TOCA) for FY 13 was increased to 1.16219% from FY12's 1.15889 Recommendation: Forward a favorable recommendation to City Council to conduct a public hearing at their December 18, 2012 meeting, to continue and then close the public hearing at their January 2, 2013 meeting, and then adopt the proposed rate ordinance modification. Background/Analysis: On October 1, 2011, the Bonneville Power Administration's (BPA) Tiered Rate Methodology went into effect. On November 5, 2012, the BPA revealed in the October wholesale power bill that the City's Tier 1 Cost Allocator basis (TOCA) for FY 13 was increased to 1.16219% from FY12's 1.15889 The TOCA change raises the City's overall BPA monthly basic charge by a net total of approximately $5,159, and the additional charges will be allocated between the Industrial Transmission customer and the Distribution load using the same process previously used to sub allocate the City's Contract High -Water Mark and FY12 TOCA. Due to the increased City's FY13 TOCA, there is also a change to our load shape allocations, with more heavy- and light -load hour load shape (kWh) being available than when compared to FY12. Following the same process that was used to develop the original FY12 load shape sub allocations, the new 2013 load shape sub allocations were also calculated for the Industrial Wholesale Power Rate Ordinance as shown in the attached modified ordinance. This information has also been shared with the Industrial Transmission customer for their comments. Staff requests that the Utility Advisory Committee forward a favorable recommendation to City Council to conduct a public hearing at their December 18, 2012 meeting, to continue and then close the public hearing at their January 2, 2013 meeting, and then adopt the proposed rate ordinance modification. Attachment: Proposed Ordinance Modification N: \UAC\DepDir\IT Wholesale Power Rate Ordinance Modification.docx AN ORDINANCE of the City of Port Angeles, Washington, revising 13.12.071 relating to Schedule IT -11— Industrial transmission of the Port Angeles Municipal Code. THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN AS FOLLOWS: Section 1. Paragraph A. of 13.12.071 E.2 of the Port Angeles Municipal Code, and the corresponding paragraph of Ordinance 2054, as amended, are amended as follows: 2. Elements for calculating rates and charges. A. Cu CHWM. Customer will have a CHWM amount "Cu CHWM of 53:465 53.351 aMW. From October 1, 2013 through September 30, 2015 the customer will have a Rate Period High Water Mark (RHWM) of 52.903 52.785 aMW. Section 2. Sub Part 5 of 13.12.071 E of the Port Angeles Municipal Code, and the corresponding sub part of Ordinance 2054, as amended, are amended to read as follows: 5. Load shaping charges and credits. The customer load shaping charge (Cu LSC) is the Toad shaping charges for a month to be paid by customer. The Cu LSC each month shall be calculated by the following formula: Where: ORDINANCE NO. Cu LSC (Cu AL Cu SSL) x LSR Cu LSC is the net of the load shaping charges and credits for a month apportioned to customer, with customer paying net load shaping charges to the City, and the City paying net load shaping credits to customer, less an amount calculated by the City using the Toad shaping adjustment true -up rate. Cu AL is customer's monthly HLH and LLH loads. Cu SSL is customer's shaped system load as set out below: Section 2 Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener's /clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 3 Severabilitv. If any provisions of this Ordinance, or its application to any person or circumstances, are held invalid, the remainder of the Ordinance, or application of the provisions of the Ordinance to other persons or circumstances, is not affected. Section 4 Effective Date, This Ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect on January 7, 2013 after passage and publication of an approved summary thereof consisting of the title. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of 2012. ATTEST: Janessa Hurd, City Clerk PUBLISHED: By Summary 2012 G 1,EGAL \a ORDINANCES &RESOLUTIONS \ORDINANCES 2012\22 CHAPTFR 3.12. 09.24 12docx docx -3- Cherie Kidd, Mayor APPROVED AS TO FORM: William E. Bloor, City Attorney