HomeMy WebLinkAboutAgenda Packet 10/18/1999 UTILITY ADVISORY COMMITTEE
ROLL CALL
Call to Order:
Members Present:
Orville Campbell, Chairman Bill Myers
Joe Michalczik, Vice Chairman Larry Williams
Larry Doyle Glenn Wiggins (Alternate)
Members Absent:
Others Present:
As there was not a quorum present, the meeting could not be held. However, as the
representatives from EES were present, they did proceed to give staff a run down on the
cost of service study they are performing for the water utilities.
The presentation was taped and the tapes are filed with the other UAC meetings.
pORTAN ELES
~A/ A $ H I N G T O N, U. S. A.
CITY MANAGER'S O~FICE
NOTICE OF SPECIAL MEETING
UTILITY ADVISORY COMMITTEE
NOTICE IS HEREBY GIVEN that the Utility Advisory Committee, a subcommittee
of the Port Angeles City Council. will hold a special meeting on Monday, October 18, 1999,
at 10:00 a.m., in the Public Works Conference Room at City Hall, 321 East Fifth Street.
The purpose of this special meeting is to consider the following items:
Water/Wastewater Rate, Study Preliminary Report
Timing of Utility Rate Increases
Discussion of Industrial Representative Replacement
Discussion of Possible Alternate Council Member to Solid Waste Advisory
Committee
Becky J. Upton
City Clerk
Distribution: Peninsula Daily News
KONP Radio
Peter Ripley
Northland Cable
Front Lobby (Post)
32I EAST Fifth STREET ® P O BOX ' ~50 ® ~OrT ANGELES, WA 98362'0217
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E-MAIL CItYMGR~CI. PO Rt'AN G ELES.WA.US
PUBLIC WORKS CONFERENCE ROOM
PO~ ANGELES, WA 98362
OCTOBer I 8, 1999
I 0:00 A.M.
AGENDA
I. CALL TO ORDER
II. ROll CALl
Ill. APPROVAL OF MINUTEB OF SEPTEMBER I 3, 1999, REGULAR MEETING.
IV. DISCUSSION Items
A. WATER~VASTEWATER RATE STUDY - PRELIMINARY REPORT
B. TIMING Of UlqLITY RATE INCR~$ES AND 1-695 (DIscuBB)ON ONLY - NO REPORT)
C. DISCUSSION OF INDUSTRIAL REPRESENTATIVE REPLACEMENT- MR. MICHALCZlK'B
TERM Of OffIce EXPIRES ON DECEMBER 3 I , 1999
D. DISCUSSION Of POSSIBLE ALTERNATE COUNCIL MEMBER TO SOLID WASTE ADVISORY
V. INFORMATION ONLY ITEMS
VI. LATE ITEMS
vi). NEXt MELTING - NOVEMBER 8, I 999
viii. ADUOURNMENT
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.
II. 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
study. In the absence of any objection from the Utility Advisory Committee, the Public
Works & Utilities Director would issue the one-year permits. The Utility Advisory
Committee serves in an advisory capacity to the City Council; however, on occasion staff
has asked the UAC to provide direction on matters that don't necessarily require Council
action. It may be warranted to make a change to the ordinance which allows for UAC policy
guidance to staffon issues that don't require formal action by the City Council. Councilman
Doyle suggested that, because of the fiber optics study, it might be wise to at least inform the
City Council of this particular discussion, to which the Committee members agreed.
Further lengthy discussion followed with regard to the basic premise of the
telecommunication ordinance being drafted, whether fiber optics would be installed on poles
or underground and specifically what the Right-of-Way Use Permit allows, and whether the
City would reimburse others for the installation of fiber optics. In summarizing the
discussion, Mr. McLain clarified them would be a one-year renewable permit issued with an
administrative fee of $300.00 and a charge of $8.00 per pole. No action was necessary, but
the Council will be informed of this discussion.
B. Update on Petroleum Contaminated Soil from Rayonier
Public Works & Utilities Director Cutler reviewed details pertinent to the City's acceptance
of petroleum contaminated soil at the Landfill from the Rayonier demolition site. The DOE
is presently seeking public comment after which it is expected that approval will be
forthcoming, and the hauling can commence around September 27th. This item was being
submitted for informational purposes only.
Discussion then centered around the mason the tracks are tarped before leaving the Landfill
and the amount calculated for transportation costs. Councilman Doyle suggested that the
hourly rate may be understated, and he suggested the figure be confirmed.
C. Water/Wast*water Study Update
Power Manager McLain reported that the firm of Economic & Engineering Services (EES)
is currently doing an analysis for the City, and it would be advisable at this time to forewarn
the UAC that it is likely there will need to be a rate increase this year. Five-year revenues
and expenses are being studied; this is a work in progress at this time. Discussion followed
with regard to thc possible impacts should Initiative 695 be passed by the voters.
D. Update on Regional Water Supply Meetings
Public Works & Utilities Director Cutler referenced the letter of September 2, 1999, which
was sent to the Clallam County P.U.D., the Lower Elwha Klallam Tribe, the Dry Creek
Water District, and the Black Diamond Water District. These entities were provided with
a copy of the CH2M Hill draft study, "Preliminary Evaluation of Elwha Dam Removal
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 Michalczik 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.
VII. Next Meeting:
The next meeting of the Utility Advisory Committee will be held on Monday, October 11,
1999.
VIII. Adjournment:
The meeting adjourned at 4:10 p.m.
Bill Myers, Acting Chairman Becky J. Upton, City Clerk
3
pO TANC L S
WASHINGTON, U.S.A.
PUBLIC WORKS DEPARTMENT
DATE: October 18, 1999
TO: Utility Advisory Committee
FROM: Scott McLain, Power Manager
SUBJECT: Water/Wastewatcr rates
Economic and Engineering Services, (EES) was hired recently to review rates and perform a cost of
service analysis (COSA) for the Water and Wastewater utilities. Their task was to review revenues,
expenses, and capital expenditures for the test period from 2000 to 2005 and recommend rates for the
utilities to recover costs over that period.
A cost of service study generally consists of three interrelated studies. First is a revenue requirements
study, which determines overall expenditures, revenues, and capital projects for the test period. Next
is a cost of service study, which allocates the costs from the revenue requirements to the various
classes of customers, i.e. residential, commercial, etc. The last part of the study is a rate design
analysis, which takes the allocated costs and develops monthly charges for each of the classes of
customers. The discussion at this UAC meeting will focus on the revenue requirements portion of the
study. Staffwill also show overall increases required for revenues to balance with expenditures over
the test period.
The revenue requirements study has shown that substantial increases are required in both water and
wastewater rates to keep the fund solvent through 2005. Several items have been identified that are
contributing to the increased costs over this period. These include increases in insurance rates,
interfund allocations, Public Works administrative charges, contributions to the economic
development fund, and increases in funding for capital projects.
There are still some refinements to projected costs for the test period, but at this time the Water utility
is showing increases over the six year period totaling 53% and the Wastewater utility shows increases
over the six year period totaling 28%.
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p__ORTANGELES
WASHINGTON, U.S.A.
UTILITY ADVISORY COMMITTEE MEMO
DATE: October 18, 1999
To: CHAIRMAN AND MEMBERS
FROM: Glenn A. Cutler, Director of Public Works and Utility Services
SUBJECT: DISCUSSION OF INDUSTRIAL REPRESENTATIVE TO UAC
Summary: Mr. Joe Michalczik's term expires as of December 31, 1999. He is a citizen member of
the UAC representing the industrial customers of the City's utilities. Daishowa America Port
Angeles MILL has nominated Dean M. Reed, Engineering/Hydroelectric Operations Manager, to
fill the position that will be vacant effect January 1, 2000. The new term will be for the period of
January 1, 2000 to December 31, 2003.
~Recommendation: The three City Council members of the UAC interview Dean M. Reed for the
pending vacant citizen industry membership position on the UAC and make a recommendation to
the full City Council for appointment.
Background / Analysis:
Mr. Joe Michalczik is industry's representative to the UAC. His term expires on December 31,
1999. The term for the next appointee will be January 1, 2000 to December 31, 20003.
Daishowa America Port Angeles was requested to nominate an individual to represent industry.
They have nominated Mr. Dean M. Reed the Daishowa America Port Angeles
Engineering/Hydroelectric Operations Manager.
Mr. Reed is currently serving on the Planning Commission. His term expires on March 1, 2000
and he plans on completing his term on the Planning Commission. This is no known law or
regulation that prohibits Mr. Reed from serving on the Planning Commission and the UAC at the
same time.
It is recommended that the three City Council members of the UAC interview Mr. Reed for the
pending vacant industry membership position. If Mr. Reed is acceptable to the members it is
recommended that his name be submitted to the full City Council for appointment as the industry
representative to the UAC.
Attached is Mr. Reed's application and PAMC Chapter 2.68, Utility Advisory Committee.
N:\GLENN~UACMEMO.wpd
September 27, 1999
Ms. Becky J. Upton, City Clerk
City of Port Angeles
P.O. Box 1150
Pod Angeles WA 98362
Dear Ms. Upton:
My apptication for a position on the City of Port Angeles Utility Advisory Committee as a Daishowa America
representative is attached. Please advise me if you require anything further to process my application.
Dean tv1. ~eea'
Engineering/Hydroelectric Operations Manager
DA:Port Angeles Mill
DMREED/skc
Application Attached
cc: Mark Hannah {letter only)
PA Util Adv Corem App
POST OFFICE BOX 271 PORT ANGELES WASHINGTON9~62 (~6111457 4474
pORT ,NGELE$ sEP 1.9
W A $ H I N G T 0 N, U.S.A. CIW OF PORT ANGELES
Cl~ CLERK
Application for Appoin~ent to a Board, Commission, or Commi~ee
Board, Commission, or Committee to which you are seeking appointment
Board or comrmssion Full Name.
Board or Comraission Full Name
Board or Commission Full Name
Applicant Name and General Information
Fffst MI Last
Home stxeet address
City State Zip Code
Home phone number Work phone number
Certification and Location Information
Are you currently a City employee? Yes(~ A~e you a citizen of the United states~ No
you a City resident~..~ No Do you own/manage a business in the City? Ye N~
Are
Do you hold any professional licenses, registrations or certificates in any field (list below)~)Ne
Are you aware of any conflict of interest which might arise by your service on a City Board or Commission? If so,
please explain: ~
In compliance with the American Disabilities Act, if you will need special accommodations because of a physical
limitation, please contact the City Clerk, 4174634, so appropriate arrangements can be made.
(OVER)
Work Experience
List most recent experience ftrst (or elaborate on a resume if you prefer)
Employer · Your Title From (M/Y) To (M/Y)
Brief job description
Employer Your Title ~rom (M/Y) To (M/Y)
Brief job description
Employer Your Title From (M/Y) To (M~Y)
Brief job description
Education
List most recent experience first
Institution/Location Credits earned/Major area of study Graduated?
Institution/Location Credits earned/Major area of study Graduated?
Institution/Location Credits earned/Major area of study Graduated?
Gharitable, Social, and Givic Activities and Membarahipa
List major activities you have participated in during the last five years
Organization and location Group's purpose/objective # of members
Briet'descriptionofyourpa~cipation -- '~'~'Q..¥~ (~xQ,l~[~-,<~ ~./Z(2~.~, -
Organization and location Group's purpose/objective # of members
Brief description of your participation
Applic~ntdS[~n~tur; "-)---~
Submit completed forms to: Office of the City Clerk, City of Port Angeles, 321 E. 5th Street, P. O. Box 1150,
Port Angeles, Washington, 98362 1/99
2.68.010
2.68.030
CHAPTER 2.68
UTILITY ADVISORY COMMI'I'FEE
Sections:
2.68.010 Purpose.
2.68.020 Committee Created.
2.68.030 Membership.
2.68.040 Organization.
2.68.050 Duties.
2.~)2.~)._]~. The declared purpose of this Chapter is to provide a mechanism for
the City Council of Port Angeles to obtain the benefits of
recommendations, advice, and opinions on those matters affecting City utility policy and
operations from a committee which may devote the necessary study to careful consideration of
such matters and which will increase citizen participation and input to local government. (Ord.
2489 §1, 5/27/88)
2.68.020 Committeg Created. There is hereby created a Utility Advisory Committee
which shall consist of five members. (Ord. 2489 §1, 5/27/88)
2.68.030 Membership.
A. Pr~dures.
1. Three Council members of the Utility Advisory Committee shall be
appointed by the Mayor from the seven members of the City Council.
2. Two citizen members of the Committee shall be selected and appointed in
accordance with the City Council's Rules of Procedure. One of these two members shall
represent the industrial customers of the City's utilities and the second member shall represent all
other customers of the City's utilities.
3. Citizen members may be removed from office for reasons deemed
appropriate by the appointing authority, including, but not limited to, malfeasance in office or
neglect of duties.
B. Criteria.
Criteria used in selecting citizen members shall include, but not be limited to, the
following:
1. Members shall be residents of the City.
2. Members shall have displayed an interest in the work of the Committee.
3. Members shall be selected in accordance with the Equal Opportunity
guidelines.
4. Members shall be appointed without regard to political affiliation.
5. Members shall not be City employees.
4/98 2 - 52
2.68.030
2.68.050
C. Terms.
Terms for citizen members shall be as follows:
1. A full term of office shall be four years.
2. As of December 31, 1997, the term of office of the member representing
industrial customers shall be extended to December 31, 1999, and the term of office of the
member representing other customers of the City's utilities shall be extended to December 31,
2001, after which the two members shall be considered to have served two full terms.
3. The term of office shall start on January 1st of the year in which the
appoinunent is made, provided that appointments to an unexPired term shall start as designated
in the appointment.
4. Members of the Committee may be appointed to succeed themselves;
provided that no person shall be allowed to serve more than two consecutive four (4) year terms.
5. Appointments to fill an unexpired term shall be only for the remainder of
that term, after which a re, appointment may.be made.
6. Members shall serve without pay. (Ord. 2975, 11/28/97; Ord. 2489 §1,
5~27~88.)
A. The Committee shall elect its own chairman and vice-chairman from among its
members and create and fill such other offices as it deems necessary for efficient operation. It
shall adopt rules for the transaction of business and keep written record of its meetings,
resolutions, transactions, findings and determinations, which record shall be a public record.
B. The Committee shall hold meetings as deemed necessary by the City Council to
carry out its duties. There shall be a fixed time and place of meetings which shall be made known
to the public, and all regular sessions of the Committee shall be open to the public. Three
members shall constitute a quorum for the conduct of official business. (Ord. 2489 §1, 5/27/88.)
~. The Committee shall be responsible to the City Council for its duties
and actions. The duties of the Committee shall .include, but not be 'limited to, the follbwing: '
A. To give advisory recommendations to the City. Council on matters relating to City
utility policy and operation and all other matters as the City Council may deem appropriate.
B. To adopt bylaws, rules and regulations consistent with the laws of the State of
Washington for conducting the meetings of the Utility Advisory Committee.
C. To maintain and preserve the confidentiality of information discussed in executive
session pursuant to Ch. 42.30 RCW and the City Council's Rules of Procedure. (Ord. 2489 §1,
5/27/88.)
2 - 53 4/98
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IpO TA. ELES
WASHINGTON, U.S.A.
DATE: August 17, 1999
ME M O TO: Mayor Braun and City Council
FROM: Glenn A. Cutler, Director Public Works and Utilities Director
~[IBLIC WORKS
I~EPARTMENT RE: Water and Wastewater (sewer) Rate Study - Supplemental Information
Glenn A. Cut~er
Director [4801] This memo is to address questions asked at the City Council meeting on August 3, 1997
Phyllis rasler concerning the dates when rates were last increased and by how much were they increase.
148001
Cate Rinehart Based upon corporate knowledge and a limited records search it has been determined that a
administraSve Assistant rate study for only water was performed by a consultant in 1992. In 1996 a City financial
[47001 management analyst performed a limited water and wastewater study. This employee has
Ken Ridout left the employee of the City and the position was not filled.
Deputy Director [48021
Deputy Director [4701] The following tables are for typical residential service. The number in parenthesis is the
rate increase from the previous period.
City Engineer [48031 Residential 7/1/95 7/1/96 7/1/97 7/1/98
Jim Harper Water Service
Electrical Engineer [4702]
LOU Haehnlen 5/8 inch Meter $7.90 $9.00 $9.85 $10.75
~uilding OfficiaH4816] (Basic Service) (13.9%) (9.4%) (9.1%)
sr. Electrical *nspector t47381 Per 100 cubic feet $0.75 $0.86 $0.86 $0.86
Scott McLain (14.7%) (0.0%) (0.0%)
power Manager [4703]
Superintendent 14855[ Residential 6/30/95 7/1/95 7/1/96 to
Pete Burrett Wastewater Service and prior present
Superintendent [48351 Water consumption $22.00 $25.25 $27.00
Mark Shar~p <430 cubic feet (14.7%) (6.9%)
147311 Water consumption $26.00 $28.25 $30.00
Kev~n Cunts >430 cubic feet (8.65%) (2.64%)
Treat. Plant Supervisor {4845]
[4825]
COMAPARBLE WATER SEWER RATES AS OF 10-12-99
CITY WATER RATESEWER RATE 1999 PROPOSED INCREASE
ABERDEEN $26.80 $25.00 10% WATER 6% SEWER
EDMONDS $25.57 $24.45 NONE
KIRKLAND $28.10 $31.25 5% WATER 3% SEWER
LACEY $16.61 $33.30 3% WATER 0% SEWER
LYNWOOD $9.83 $20.95 NONE
MARYSVlLLE $19.09 $20.00 NONE
MT. VERNON * $32.00 NONE
OAK HARBOR $24.80 $26.93 POSSIBLE UTILITY TAX INC
PASCO $15.10 $29.40 NONE
SEA'I-rLE $20.65 $41.20 10% WATER 10% SEWER
WALLA WALLA $24.58 $26.03 2% WATER 2% SEWER
WENATCHEE $14.02 $13.71 ' 5% WATER 2% SEWER
PORT ANGELES $19.35 $30.00
Skagit PUD provides water