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HomeMy WebLinkAboutAgenda Packet 11/08/1999 UTILITY ADVISORY COMMI3-rEE PUBLIC WORKS CONFERENCE ROOM PORT ANGELES, WA 983(~2 NOVEMBER 8, 1999 3:00 P,H, AG EN DA I. CALL TO ORDER II. ROll CAll III. APPROVAL Of ~VIINUTES Of SEPTEMBER I 3, 1999, REGULAR MEE-FING. IV. DISCUSSION IteMs A. WAtER~/ASTEWateR COSt OF SERVICE STUDY B, DISCUSSION Of EXPANDINg UAC iVieMbERSHIP - VERBAL ONLY - NO RePORt C. PRoceDuRES FOR SURPLUSING PROPERTY HELD BY tHe UTilities - VERBAl ONlY V. INFORMATION ONlY ITEMS ELWHA DAM TRANSMISSION LINE VI. LATE Items VII. NEXT MEeTINg - DECemBER I 3, 1999 VIII, ADJOURNMENT UTILITY ADVISORY COMMITTEE Port Angeles, Washington September 13, 1999 L Call to Order: Acting Chairman Myers called the meeting to order at 3:10 p.m. IL Roll Call: Members Present: Councilman Doyle, Councilman Williams, and Bill Myers. Members Absent: Councilman Campbell and Joe Michalczik. Staff Present: Craig Knutson, Glenn Cutler, Becky Upton, Tom McCabe, Steve Evans, and Scott McLain. III. Approval of Minutes: Councilman Doyle moved to approve the minutes of the August 23, 1999, meeting. The motion was seconded by Councilman Williams and carried unanimously. IV. Discussion Items: A. Right-of-Way Use Permits - Interim Policy for Communication Lines Scott McLain, Power Manager, advised the Committee members that the City has received requests from Olympic Memorial Hospital, as well as Pacific Office Equipment, to install fiber optic communication lines. The City would like to remain cooperative; however, because the City may build a City-wide fiber optic network in the future, it would be advisable to not create a conflicting situation. Staff is recommending that the City issue Right-of-Way Use Permits for a one-year period that would be renewable until the time the City's feasibility study is complete and a fiber optic system installed that could serve as a replacement. In the ensuing discussion, Committee members spoke in support of the recommendation. Mr. McLain indicated that the City may want to contribute to some of the cost as long as the fiber optic installation is done to the City's specifications. It was noted the offer was made to install another conduit for the City's use. Lengthy discussion followed, at which time the Committee considered pole rental agreements and relationships with the companies involved in telecommunications. Bill Myers expressed the opinion that the City make it very clear that anyone installing fiber optics would need to join the City's system once it is complete. Attorney Knutson indicated that Right-of-Way Use Permits are presently issued by staff, but it may be advantageous to take the matter to the City Council because of the fiber optics Utility Advisory Committee September 13, 1999 Mitigation Alternatives and Integration with Regional Supply Objectives", and they are being asked to provide comments by September 17, 1999. Once the comments have been received, a summary will be prepared for the Utility Advisory Committee and a determination made as to whether any changes need to be made to the report. Attorney Knutson reported that the Council will be receiving a copy of the follow-up response prepared subsequent to the visits of Senator Gorton and Congressman Dicks on the matter of Elwha Dam removal impacts. Staff has responded to questions raised with the legislators, particularly those posed by Senator Gorton with respect to the City's position that permanent treatment facilities are necessary, how long it will take to design mitigation measures, and whether appropriations can be spread out over a period of two years. Bill Myers asked that he and Joe Mmhalczik be provided with copies of the response document. Lengthy discussion followed, and it was noted that the law specifies the money be in hand before dam removal can proceed. Congressman Dicks has suggested it may be necessary to change the law to allow incremental budgeting. V, Other Business: Brief discussion was held with regard to the history and value of the Utility Advisory Committee. Director Cutler felt the Committee's input is most valuable in obtaining a sense of direction. Bill Myers suggested that consideration be given to expanding the membership of the committee, perhaps with community representatives. Attention was directed to the tour of the Port Townsend compost facility tomorrow, and Councilman Doyle indicated he would appreciate a tour of the City's facility as well. It would provide him with a point of comparison. VIL Next Meeting: The next meeting of the Utility Adviso~ Committee will be held on Monday, October 11, 1999. VIII. Adjournment: The meeting adjourned at 4:10 p Bill Myers, Acting Chairman Becky J. Upton, City Clerk 3 pORTANG .L S WASHINGTON, U.S.A. PUBLIC WORKS DEPARTMENT DATE: November 8, 1999 To: Utility Advisory Committee FROM: Scott McLain, Power Manager SUBJECT: Water/Wastewater Cost-of-Service study During the last UAC meeting, Economic and Engineering Services presented a revenue requirements analysis for Water and Wastewater. General direction was also given regarding use of rate stabilization funds (cash reserves), minimum cash balances to maintain, and capital spending levels. This UAC meeting will discuss the second phase of the study, which deals with allocating costs fairly among the customer classes and rate design, which specifies the actual rates to the various customer classes. The actual rate options weren't available at the time this memo was distributed, but will be available in your City Hall mailbox by Friday afternoon. By utilizing rate stabilization reserves, overall combined increases for the six year period were 40% for water and 31.5% for wastewater. Cost of Service allocations were reviewed for CY 2000 and also for 2001-2003. The analysis confirmed that the various customer classes were receiving services on a "cost-to-serve" basis. It appears that across-the-board increases with some very minor modifications between classes are prudent for rate adjustments that will be necessary during the rate period. Action to be taken: Recommend rate adjustment package to Council. Estimated time: 30 min. N:~PWKS\LIGHTXPOWM~MEMOS\UAC 1108.WPD pOR?ANGELES W A $ H ~ N (3 T O N, PUBLIC; WORKS DE~PART~E~IT D~(TE: NOVEMBER 8, 1999 To: UTILITY ADVISORY COMMITTEE FROM: JIM HARPER SUB~mCT: ELWHA DAM OWNERSHIP TRANSFER INFORMATION ONLY The transfer of ownership of the Elwha and Glines dams from the Fort James Company to the US Park Service is currently scheduled for February 2000. The final decision of whether to continue generation activities until the dams are removed or not is scheduled for the end of 1999. If the Park Service continues generation, the 69kV transmission lines will be required to transmit the power to the BPA Transmission grid. The ownership transfer issue of concern to the City is the 69kV transmission lines historically operated and maintained by City customer, Dalshowa, may also transfer to the Park Service. Approximately 30 of the poles in question are underbuilt with City Light distribution circuits. Future transfer of ownership from the Park Service, after generation is terminated, may be difficult and expensive. The transmission facilities within the City will continue to be needed to serve Daishowa long after the Elwha and Glines dams are removed. Plans are underway for a joint proposal by representatives of Daishowa, City Light and PUD to be presented prior to a coordination meeting scheduled for November 24. This proposal will hopefully meet the legal requirements of the Park Service and the long term operating requirements of the City and Dalshowa. Action to be taken: None at this time. Estimated time: 20 min · · · · · · · · · · · ·