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HomeMy WebLinkAboutAgenda Packet 07/08/2014 Utility Advisory Committee Jack Pittis Conference Room Port Angeles, WA 98362 July 8, 2014 @ 3:00 p.m. AGENDA L Call To Order II. Roll Call III. Approval Of Minutes For June 10, 2014 IV. Late Items V. Discussion Items: A. Morse Creek Update VI. Information Only Items: A. None. VII. Next Meeting Date: August 12, 2014 VIII. Adjournment N:AUAC\MEETINGS\UAC2014\UAC070814\070814 Agenda.docx Utility Advisory Committee Council Chambers Port Angeles, WA 98362 June 10,2014 3:00 p.m. L Call To Order Chairman Lynn Bedford called the meeting to order at 3:00 p.m. IL Roll Call UAC Assigned Councilmembers Present: Sissi Bruch, Dan Gase, Lee Whetham Other Councilmembers Present: Other Councilmembers Absent: Dan Di Guilio, Patrick Downie, Cherie Kidd, Brad Collins Utility Advisory Committee Members Present: Lynn Bedford, Betsy Wharton,Paul Elliott(3:03) Utility Advisory Committee Members Absent: John LeClerc Staff Present: Craig Fulton, Byron Olson,Phil Lusk, Sondya Wray, Gregg King, Bill Bloor, Tom McCabe, Helen Freilich, Tracey Grooms, Tess Agesson Others Present: Jeremy Schwartz—PDN Meggan Uecker—Clallam County Public Works Don Jarrett—McMillen LLC Sue Buske—The Buske Group 10 Citizens IIL Approval Of Minutes Chairwoman Lynn Bedford asked if there were any corrections to the minutes of May 13, 2014. Dan Gase noted that two corrections to the draft minutes needed to be made.Paul Elliot moved to approve the revised minutes. Lee Whetham seconded the motion,which carried unanimously. IV. Late Items: Sissi Bruch requested to discuss the separate water and sewer utility rates at a later date. V. Discussion Items: A. Cable Television Franchise Renewal with WAVE Broadband(verbal report) Gregg King,Power Resources Manager,introduced Sue Buske,who is a telecommunication consultant. Ms. Buske provided a PowerPoint presentation on the cable television franchise renewal process.Port Angeles currently has 9,210 subscribers with WAVE Broadband. There was a lengthy discussion on the local franchise, license agreement, and the current Franchise Agreement that was granted in 2002 that is set to expire in May 2017. Information only.No action taken. B. Morse Creek Update Phil Lusk, Deputy Director of Power& Telecommunications Systems introduced Don Jarrett of McMillen LLC. Mr. Jarrett provided a PowerPoint presentation on his firm's analysis of the City's options regarding the Morse Creek hydroelectric project. He reviewed three options for the Morse Creek hydroelectric project and provided an analysis of costs,regulatory requirements, and a review of engineering issues associated with each option. The identified options are: 1. Return to service and continue to operate, or 2. Sell the project and property in their present condition, after declaring them to be surplus to the City's needs, or 3. Retire the project after surrendering the operating license to the Federal Energy Regulatory Committee and maintain ownership After a lengthy discussion, staff withdrew its request for a recommendation and the agenda item will be re-presented on July 8t'Utility Advisory Meeting. C. Clallam County Comprehensive Solid Waste Management Plan Meggan Uecker of Clallam County Public Works reviewed a PowerPoint Presentation on the Comprehensive Solid Waste Management Plan(CSWMP). The plan addresses solid waste management throughout Clallam County. Since March 2013, a local consultant and the Solid Waste Advisory Committee have been developing an update. The plan update is complete and is awaiting adoption by the various jurisdictions covered by the plan. There was a lengthy discussion. Paul Elliot moved to recommend City Council to adopt the CSWMP Update. Betsy Wharton seconded the motion,while Lee Whetham and Dan Gase abstained. VI. Information Only Items A. 2015 Public Works& Utilities Capital Facilities Plan(verbal report only) Information only. No action taken. B. Radio Frequency Emissions Update (verbal report only) Information only.No action taken. C. City Infrastructure Tour Date Scheduling July 11th was agreed upon as the scheduled tour date. VIL Next Meeting Dates: July 8,2014 VIIL Adjournment: 5:18 p.m. Dan DiGuilio, Mayor Sondya Wray, Administrative Specialist II 01 NORTIFF" GELS W A S H [ N G T O N, U. S. A. Utility Advisory Committee Memo Date: July 8, 2014 To: Utility Advisory Committee From: Craig Fulton, P.E., Director of Public Works and Utilities Subject: Morse Creek Hydroelectric Project Recommendation Summary: Staff is making a recommendation to the Utility Advisory Committee for consideration by the City Council to determine the permanent future of the Morse Creek hydroelectric project. Recommendation: Provide a recommendation to City Council that the City sell the project and all property in its present condition after declaring them to be surplus to the City's needs. Background/Analysis: Following the discovery that the generator bearings required replacement, staff updated the Utility Advisory Committee (UAC) on June 12, 2012 regarding the high cost of operating and maintaining the Morse Creek hydroelectric project. On July 10, 2012, staff shared that a $100,000 cost estimate was received for the generator repairs necessary to enable operation. Due to the repair costs and future operating risk, staff recommended that the retirement or sale of the project and property 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 stakeholder responses received, and the UAC asked staff to complete an economic analysis. On November 13, 2012, staff presented the economic evaluation, which determined that the project's operating costs are significantly higher than purchasing additional wholesale power from the Bonneville Power Administration. The UAC then recommended to the City Council that it consider options for the project other than continued operation. On November 20, 2012, City Council directed that the project be placed in standby mode to minimize costs, and to return later to the City Council with additional information. After a year of extensive analysis and due consideration, staff requests the UAC recommend to City Council that the City sell the project and all property in its present condition after declaring them to be surplus to the City's needs. Prior to sale, an assessment of the real estate's value will be conducted and factored into the sale price as warranted. On January 7, 2014, staff received a letter from the Federal Energy Regulatory Committee(FERC) requesting the City's plan and schedule for the project. On March 11, 2014 FERC granted the City an extension date of August 12, 2014 to provide FERC with its action plan. Staff intends to advise FERC that the City intends to sell the project and property. If the successful bidder wants to operate the hydroelectric plant, the City will jointly file with the potential transferee to the FERC for the transfer of the operating license. In the event the successful bidder does not want to operate the hydroelectric plant, the City will make application to voluntarily surrender its operating license to the FERC. N:AUAC\MEETINGS\UAC2014\UAC070814\Morse Creek Hydroelectric Project Update.docx