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HomeMy WebLinkAboutUAC Agenda Packet 04/12/2016N:\UAC\MEETINGS\UAC2016\UAC041216\041216 Agenda.docx Utility Advisory Committee Jack Pittis Conference Room Port Angeles, WA 98362 April 12, 2016 3:00 p.m. AGENDA I. Call To Order II. Roll Call III. Approval Of Minutes for March 8, 2016 IV. Late Items V. Discussion Items: A. Medic I Utility Advisory Committee Member Appointment B. Bonneville Power Administration Tier 2 Power Election C. Landfill Post-Closure Engineering Professional Services Agreement Amendment 5 D. Port Angeles Landfill Stabilization Project (SW0212) - Construction Management Services Contract Amendment #3 VI. Information Only Items: A. 2015 Consumer Confidence Water Quality Report B. Residential Customer LED Lightbulb Distribution (verbal report only) VII. Next Meeting Date: May 10, 2016 VIII. Adjournment Utility Advisory Committee Jack Pittis Conference Rooms Port Angeles, WA 98362 March 8, 2016 3:00 p.m. I. Call To Order Vice Chair Whetham called the meeting to order at 3:15 p.m. II. Roll Call UAC Assigned Councilmembers Present: Sissi Bruch, Vice Chair Lee Whetham, and Cherie Kidd Other Councilmembers Absent: Brad Collins, Mayor Patrick Downie, Dan Gase, and Michael Merideth UAC Members Present: Betsey Wharton, Rob Feller UAC Members Absent: Chair Lynn Bedford – excused Staff Present: Craig Fulton, Gregg King, Phil Lusk, Shailesh Shere, Bill Bloor Others Present: Two Citizens III. Approval Of Minutes Council Member Sissi Bruch requested a motion to approve the minutes of February 9, 2016. Council Member Cherie Kidd seconded the motion, which carried with one abstention. IV. Late Items: Council Member Sissi Bruch added an item for a future meeting; the process between the waterfront wall that was approved vs. the wall the City ended with – why the difference? Representative Betsey Wharton would like to discuss staff technical assistance for the Fluoride Ad Hoc Committee. V. Discussion Items: A. Fluoride Ad Hoc Committee Representative Wharton had questions about the technical feasibility of various fluoride options. After discussion it was recommended that the Fluoride Ad Hoc Committee request staff to attend meetings to provide technical assistance to the Committee. VI. Information Only Item A. Morse Creek Surplus Equipment and Property update (verbal report) Craig Fulton, Director of Public Works and Utilities, gave an update on the disposal of the Morse Creek hydro project and property. There was much discussion during the presentation. The main points discussed were:  The largest parcels are from an old US Army combat range which has restrictions on property use. The US Army is planning on cleaning up the riskiest portion of the parcel at some point in the future.  The appraisal did not take into account the combat range restrictions, so the appraisal is too high. The City is working with the appraiser to obtain a recalculation.  There is a waterfall between the powerhouse and the dam that prevents fish from going up river.  The project stopped generation in 2010 when the generator’s bearing broke.  The project is uneconomical to operate.  The City has requested BPA remove the hydro generation from its power contract.  The City has discussed the process to surrender its generation license with FERC.  The City intends to sell the property as three groups rather than parcel-by-parcel.  Request by Councilmember Bruch for a cost estimate to decommission the project.  A preliminary RFP will evaluate offers by bid price, speed to close the deal, cash vs debt offers, offer on all property, and proposed environmental land use. Further updates are planned as the process moves forward. VII. Next Meeting Date: April 12, 2016 VIII. Adjournment: 4:12 p.m. ___________________________ __________________________________ Lynn Bedford, Chair Michelle Hale, Administrative Specialist II DATE: April 12, 2016 TO: Utility Advisory Committee FROM: PHIL LUSK, DEPUTY DIRECTOR OF POWER & TELECOMMUNICATION SYSTEMS SUBJECT: Bonneville Power Administration Third Purchase Period Election for Tier 2 Power Supply Summary: The City is required to make its third purchase period election with the Bonneville Power Administration (BPA) for its Tier 2 power supply by September 30, 2016. As shown in Figure 1, the City remains well under any Tier 2 power requirement. While the election necessity is moot, BPA’s contractual requirements must be fulfilled. Therefore, the recommended election is BPA’s Tier 2 Short-Term product for 100% of the City’s electric load that is above its High Water Mark (Tier 1) allocation, with a 10 megawatt ceiling. Funding: This election is for October 2019 through September 2024. In the unlikely event that any Tier 2 power would need to be purchased, the cost impact, either positive or negative, would be factored into the City’s retail electric utility rates at that time. Recommendation: City Council authorize the Director of Public Works and Utilities to notify the BPA, in accordance with Section 2.4 of Exhibit C of the BPA Power Sales Agreement, No. 00PB-12054, the City should elect Section 2.4.1.2, the Tier 2 Short-Term rate alternative, for the period of October 2019 through September 2024 for 100% of its above High Water Mark (Tier 1) load, with a 10 megawatt ceiling. Background/Analysis: The BPA Power Sales Agreement requires the City select how it will obtain the supplemental electricity required for any load that is greater than its Tier 1 allocation during the five year period between 2019 and 2024. This election is due by September 30, 2016. An analysis of current and forecasted loads shows that the City is not expected to exceed its Tier 1 power allocation at any time through the 2028 period. Additionally, power purchased on the Utility Advisory Committee Memo Bonneville Power Administration Third Purchase Period Election for Tier 2 Power Supply Page | 2 Utility Advisory Committee April 12, 2016 open market is at historic lows. BPA forecasts that will remain so through the 2028 period1. Given the available headroom shown in Figure 1, it is unlikely that the City will ever have a requirement for Tier 2 power. Headroom measures the gap between the City’s electrical loads and BPA’s allocation of Tier 1 power. The City’s available headroom amounts to about 30% of our Tier 1 allocation, and this represents a power requirement roughly equal to 20 equivalents of the former KPly/PenPly load. Hypothetically, if a new load that was larger than the available headroom did come to Port Angeles and created an exposure to Tier 2 power, the City could most likely purchase the supplemental power on the open market at a price less than the BPA as projected through September 2024 (Figure 2). Per the BPA Power Sales Agreement, the City is provided with three options: 1. Zero Amounts at Tier 2 Rates 2. Tier 2 Short Term after initially serving with a dedicated resource 3. Tier 2 Short Term with a ceiling on the amount of Tier 2 power the City would purchase In 2011, the City elected Option 2. To maximize certainty and to comply with BPA’s administrative requirements, staff recommends that BPA’s Option 3, the Tier 2 Short Term with a ceiling, be elected. The staff recommended ceiling is 10 megawatts. In accordance with Section 2.4 of Exhibit C of the BPA Power Sales Agreement, No. 00PB- 12054, the City should elect Section 2.4.1.2, the Tier 2 Short-Term rate alternative, for the period of October 2019 through September 2024 for 100% of its above High Water Mark (Tier 1) load, with a 10 megawatt ceiling. Funding Overview: This election is for the October 2019 through September 2024 period. In the unlikely event that any Tier 2 power would need to be purchased, the cost impact, either positive or negative, would be factored into the City’s retail electric utility rates at that time. 1 SOURCE: Bonneville Power Administration. (October 2015). Long-Term Financial and Rates Analysis, Reference Case Results. https://www.bpa.gov/Finance/FinancialPublicProcesses/2028/doc2028/Long- Term%20Financial%20Rates%20and%20Analysis%20Reference%20Case%20Results.pdf Bonneville Power Administration Third Purchase Period Election for Tier 2 Power Supply Page | 3 Utility Advisory Committee April 12, 2016 Date: April 12, 2016 To: Utility Advisory Committee From: Kathryn Neal, P. E, Engineering Manager Subject: Landfill Post-Closure Professional Services Agreement – Amendment 5 Summary: In October of 2008 the City entered into an agreement with Aspect Consulting to provide engineering services in support of the Port Angeles Landfill 30-year post-closure permit. Aspect has been supporting the City in post-closure compliance and the Landfill Cell Stabilization Project (the Project) which is now complete. As the renovated landfill site is transitioning to post- closure maintenance under a new facility permit, it is important to have continuity for technical support for the new permit and landfill infrastructure. This amendment provides for a one year extension to the existing agreement with Aspect Consulting in order to provide continued support for the post-closure requirements. Funding: Funding is available in the Solid Waste Landfill fund (404-7585-537.41-50) under Post-Closure Contract and Technical Assistance in the amount of $115,000. Recommendation: Forward a favorable recommendation to City Council to authorize the City Manager to sign Amendment 5 to the Professional Services Agreement with Aspect Consulting in an amount not to exceed $103,969.56, for a new total agreement amount of $736,717.20, and to make minor modifications to the agreement, as necessary. Background/Analysis: The thirty-year post-closure phase of the Port Angeles Landfill (Landfill) began in 2008 after the last two cells of the landfill were covered and the seawall at the beach was constructed in 2007. Management of the landfill is regulated through the Solid Waste Post- Closure Permit issued by Clallam County Environmental Health Services (CCEHS) working in close cooperation with Washington State Department of Ecology (DOE). The permit covers the entire Landfill and addresses the different regulations that were in place at the time each of the particular cells of the landfill were closed. Since May 2014, the Port Angeles Landfill has been operating under a modification to the Clallam County Environmental Health Services Solid Waste Handling Facility Permit. The modification was issued in order to provide for the construction of the Landfill Cell Stabilization Project, which involved the relocation of approximately 400,000 cubic yards of waste from the 304 Landfill to the 351 Landfill, along with modifications to the existing seawall, a mechanically reinforced earth (MRE) slope on the face of the Valley Cell, a new cover system, modifications to the leachate, Utility Advisory Committee Memo Landfill Post-Closure Professional Services Agreement Contract Extension January 10, 2012 Page 2 landfill gas, groundwater monitoring and stormwater systems, and other improvements. Regulated Post-Closure Activities include environmental monitoring, inspection, maintenance, reporting and recordkeeping, technical support, and emergency reporting. In October of 2008, the City entered into an agreement with Aspect Consulting to provide engineering services in support of the landfill post-closure permit requirements. Aspect has provided post-closure compliance technical services prior to the Landfill Bluff Project and during its construction. Due to the specific experience that Aspect Consulting has with the City’s landfill infrastructure and participation in the Landfill Bluff Project, they are uniquely qualified to provide the continuity in expertise for the first year of support as we transition into the new systems and permit. This amendment extends the current agreement by one year which would otherwise expire at end of April 2016. The tasks and fees included for Aspect Engineering for the one-year period are summarized in the following table. Summary of tasks and fees for 2016 Post-Closure Landfill Professional Services Task No. Description Proposed Fees 1.1 Groundwater Monitoring Reports 1.1.1 Biannual Reports $24,012.70 1.1.2 Annual Groundwater Report $23,444.62 1.5 Operations Support for the Landfill Gas System $24,082.30 1.6 Operations Support for Landfill Cover System $6,130.72 1.7 Operations Support for Mechanically Reinforced Earth Slope $12,547.07 2 Maintenance Support $13,752.15 Totals $103,969.56 It is recommended that the Utility Advisory Committee forward a favorable recommendation to City Council to authorize the City Manager to sign Amendment 5 to the Professional Services Agreement with Aspect Consulting in an amount not to exceed $103,969.56, for a new total agreement amount of $736,717.20, and to make minor modifications to the agreement, as necessary. Date: April 12, 2016 TO: Utility Advisory Committee FROM: CRAIG FULTON, P.E., DIRECTOR OF PUBLIC WORKS & UTILITIES SUBJECT: Port Angeles Landfill Stabilization Project (SW0212) - Construction Management Services Contract Amendment #3 Summary: Construction management services are provided by Anchor QEA for the Port Angeles Landfill Stabilization Project. Due to the discovery of large amounts of asbestos and the resulting claim from the construction contractor, Anchor QEA has provided a substantial amount of additional support to prepare the City to equitably resolve the asbestos claim. In addition, the construction contractor, Magnus Pacific, was required to achieve substantial completion by November 10, 2015. Schedule impacts due to the asbestos as well as other issues extended the completion date to the end of March 2016. This required Anchor QEA to be onsite longer. This amendment provides the final reconciliation to compensate Anchor QEA for the additional effort. Funding: a) The project originally was approved by Council on May 20, 2014 with a contingency of $1,962,994. The construction management agreement has had two additive amendments valued at $299,927, and the construction contract has had twelve change orders for a total value of $1,453,927 and legal expenses of $62,562. This leaves a net contingency balance of $146,579 at this time. b) In addition, the Engineers report that the construction contract has two pending change orders and quantity take-off variances that are expected to further reduce the construction contract cost by $518,713. With this, the projected amount of surplus funding available in the project is estimated to be $665,292 which is more than sufficient for this amendment. Recommendation: Authorize the City Manager to sign Amendment No. 3 to the Professional Services Agreement with Anchor QEA increasing the value by $99,000 for a revised maximum not-to-exceed amount of $1,827,927. Utility Advisory Committee Memo April 12, 2016 Utility Advisory Committee Re: Landfill Bluff Construction Management, Anchor QEA, SW0212, Amendment No. 3 Page 2 Background/Analysis: A professional services agreement for construction management services to oversee the construction contract for the Landfill Stabilization Project was awarded to Anchor QEA on May 20, 2014. Due to the discovery of large amounts of asbestos and the resulting claim from the construction contractor, Anchor QEA has provided a substantial amount of additional support to prepare the City to equitably resolve the asbestos claim. The claim was settled as part of Change Order 12. In addition, the construction contractor, Magnus Pacific, was required to achieve substantial completion by November 10, 2015. Schedule impacts due to the asbestos as well as other issues have extended the completion date to the end of March 2016. This required Anchor QEA to be onsite longer. Anchor QEA has analyzed their remaining budget in the agreement. At this time, a budget increase of $99,000 has been projected to be needed. The professional services agreement is an hourly contract, so the City has been charged only for the actual effort that the construction management firm used. The agreement was previously amended by $219,927 to transfer the testing services effort from the construction contract to the construction management agreement for purposes of better control and execution (the construction contract was modified with an equal “deductive” change order for shifting the testing services). The following table summarizes all amendments for the construction management agreement. It is recommended that the Utilities Advisory Committee forward a favorable recommendation to City Council to authorize the City Manager to sign Amendment No. 3 of the Professional Services Agreement with Anchor QEA for construction management services in an amount not to exceed $99,000 for an overall contract value not to exceed $1,827,927. Construction Management Contract Stage Amount Original Contract Amount $1,429,000 Amendment No. 1 – Testing Services Transfer 219,927 Amendment No. 2 – Asbestos Claim/Delay 80,000 Amendment No. 3 – Asbestos Claim/MRE Wall Redesign / Delay 99,000 Total revised contract amount $1,827,927 N:\UAC\MEETINGS\UAC2016\UAC041216\2015 CCR UAC Report.doc Date: April 12, 2015 To: Utility Advisory Committee From: Craig Fulton, P.E., Director of Public Works & Utilities Subject: 2015 Consumer Confidence Water Quality Report Summary: The Washington State Department of Health requires that every water system provides an annual Consumer Confidence Report to its customers. The report contains information on the potential contaminants present in the water supply that customers receive. The attached report for the Port Angeles water supply has been prepared for distribution to the City’s water customers. Recommendation: For information only, no action is requested. Background/Analysis: In 1996, Congress passed amendments to the Safe Drinking Water Act that mandated the Environmental Protection Agency (EPA) require community water systems to provide each of their customers with a “Consumer Confidence Report” (CCR) every twelve months. This report, referencing 2015 calendar year data, will be available to all City of Port Angeles water customers on the City’s website. By law, this report must be distributed to our customers by July 1, 2016. Staff developed the attached CCR in accordance with the EPA CCR regulations. The regulations require information on the quality of the water delivered by the system and a characterization of any risks from exposure to contaminants in the drinking water in an accurate and understandable manner. Included in the report is the data for Water Use Efficiency, which is also required to be provided to our customers by July 1, 2016. The City is also providing the CCR to Clallam County Public Utility District No. 1 by April 1, 2016 to be shared with their customers. Attachment: 2015 Consumer Confidence Water Quality Report Utility Advisory Committee Memo Solid Waste Landfill Post-Closure Engineering Support Utility Advisory Committee April 12, 2016 Landfill Site –March 22, 2016 Landfill Site February 16, 2016 Regulated Post-Closure Activities –Environmental Monitoring –Inspection –Maintenance –Reporting and Recordkeeping –Emergency Reporting Regulated Post-Closure Facilities •Cover Systems –304 Landfill –351 Landfill •Leachate Management Facilities •Groundwater Monitoring Facilities •Landfill Gas Control Facilities –Collection System and LFG Flare •Surface Water Management •Shoreline Features –Seawall –Beach/Bluff –Dry Creek •Mechanically Reinforced Earth Wall •Other –Vegetation –Access Roads –Security Date: April 12, 2016 To: Utility Advisory Committee From: Ken Dubuc, Fire Chief Subject: Utility Advisory Committee Appointment Summary: For years, the City has had a member on the Utility Advisory Committee who represents the community and the local Licensed Care Facilities on matters related to the Medic 1 utility. That committee position is currently vacant. The City has received an application for appointment to the Utility Advisory Committee from Laura Dodd, the Administrator from St. Andrews Place Assisted Living. Administrators from the local Licensed Care Facilities were contacted and it was agreed that Ms. Dodd will represent the community and the Licensed Care Facilities with regard to issues related to the Medic 1 utility. Recommendation: Staff requests that the Utility Advisory Committee provide a favorable recommendation to City Council to appoint Laura Dodd to serve as the Medic 1 representative on the Utility Advisory Committee. Background/Analysis: Since the Medic 1 Utility was formed, there has been a member on the City Utility Advisory Committee who represents the Community and the local Licensed Care Facilities on matters related to the Medic 1 utility. This position is typically held by an Administrator from one of the four local Licensed Care Facilities. The Medic 1 representative to the UAC only attends those UAC meetings that have a Medic 1 related issue on the agenda. There is currently a vacancy in this position due to a job location change. The Fire Chief met with the Administrators from Laurel Park Assisted Living, Crestwood Convalescent Center, St. Andrews Place Assisted Living and Park View Villas to interview them and determine if they were interested in submitting an application. Laura Dodd, the Administrator from St. Andrews Place, indicated that she would be interested in applying to fill the current vacancy. Ms. Dodd has submitted a completed City of Port Angeles Application for Appointment. Staff requests that the Utility Advisory Committee provide a favorable recommendation to City Council to appoint Laura Dodd to serve as the Medic 1 representative on the Utility Advisory Committee. Attachment: Application for Medic 1 representative on the Utility Advisory Committee Utility Advisory Committee Memo CITY OF æ\a:-z Í)onrÅrucnrns¡-I I- wt4sHtNGYÕN, U.ã"1\. Appr,ICÁ,TIoN FoR ArrorNrMENT xo So¿nn, Cc*ttrclsslon an CcncuITTgË Bcnrd, Cammis¡Íon or Committee tû which yoä å!'s secking appoinfment; fYlçd tc I L{-trl,fu Ådul:ôrü tøryt ?"1 tf& Ápplicant Narxe and General lnf,ormaficn Laxra l*, \J redd First M{Lesf åå& fash*n I-lt:me Street Add.r*ss /4r"t €.s huù4r"¡ bJe QeSr*å* City Stafe zip tf Ticnre phene Work pha*e €*u.mdktsJÐ clú ær1, {Òr"r? Cell phone E-rnail add¡ess \ LJ' D¿te af Eirth {to be eompletod only hy applicants fs,r Public Safeg. Âdvie*ry Soard fcr purposcs sf critrinal histor¡+ check to eaãure eonrplirnce with Port .dngeles Municlprï Ccde 2.26"$2ð) Certificaticn snd Lacation Information {cirele üïe} rlrc you employed by the CÍly ol Port Ángeles? Are you a citir¡n af th* United $lstes? Are ¡r:u a Registwed Voter? Are you a Ciry reridentl Iq 1*rs¡få Yes No No No llso,how lons -J Do ycu own/manage a business in the City? Do you hold any professianal licenses, registrations or cenifìeates in any fìeld? G No ì¡lo lfso. please list:fru* l Are you aware of an.n* ccnfliet *i interest which nrighi arise by ycur selice an a City Board cr Co¡anissicn? If,so. please explain: lVork ûr Professitnrl Experiencè - {".ist rn$sl reeent experienee first, or aTtaeh a resumë }, AnÅra,rj E ?tçxs* &Å¡n,rt'skalaf û 3/¿oo t* vt¿s¡¿ñ, Employer Tkte Fronr (M,Y) Tdiiþ{¡f} Brief description Employer 1-ille Fronr {Mll') Tc {M,X'} Briefjob description Employer "litle Fronr (M.t') To (MlY) Briefjob description Ëducatian - Li$t I'rx)sl reserìt expai*xce {îrs{ ?¿njnéuiû- f¿lkæ AÅ { v*}l No tnstiiutianli,ocsiian v Degree eamedlMajrr arca of iiuay Hduared? In*titurion/Lacatian Degree earnedr'Majcr area of Cradualed? Charitable, SCIeial and Civie Activitie¡ aad Membershipx - L.ist rnajoractivities y** have paxìcipated in during the ìast five years ?"lô ç Erief descripåian of yr:ur pa;ticipatian Graup's purpo*el*bjective s purposelobjective # of members P # of members & ã?,ln UJT Brief tleseriptian of yo*r p*rticipaiic'r*: 2 Questions &fe interested in scrving ûn this Bonrd or C*mmission? "1 tz? "r Wh¿t in -vour background cr experience do you think would help y.cr in serving on this Foard? What is your understandi*g of the respcnsibilities of this particular Board or Commission? .Í{f t l l{,}t Åj- rl . I g.¡n "rtvrwr-lffl Flease &el fre€ to add any additicnsl çomnr*¡¡ts yon wish tu make reg*rding y*ur application" .*r¡r,*àø}.qlta/tb Ã@iltKenärurs dste at Submit campleted forme ts OFFTCE oF rxcCmy Clrnx JrNF¡IFaR VENSKLASE¡q, C¡Ty CIERr 3ó04 I 7 453 4 or ^lvenekla@cityafoa.us City of Parr Á,ngeles 321 Ë. 5ú Street I:û $ox 1 150 Port Angeles, W.4 9fi3$2 ln earnpliance with rhe Arnericar:s with Disabilities ,4cf- if you need spscial acrcrnß:sdations beeause af a ph;*sical lirnitation" piease ccntact the City Manager's Office at 4l?,4500 so appropriate arrangemeqts can be made. 3