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HomeMy WebLinkAboutAgenda Packet 10/09/2018 Utility Advisory Committee City Council Chambers Port Angeles, WA 98362 October 9, 2018 3:00 p.m. AGENDA I.Call To Order II.Roll Call III.Approval Of Minutes for September 11, 2018 IV.Late Items V.Public Comment–The Utility Advisory Committee desires to allow the opportunity for Public Comment. However, the business of the City must proceed in an orderly, timely manner. At its most restrictive, Public Comment shall be limited to a total of 15 minutes. Individuals may speak for three (3) minutes or less, depending on the number of people wishing to speak. If more than 20 people are signed up to speak, each speaker may be allocated two (2) minutes. (Taken from Council Rules of Procedure Section 12). VI.Discussion Items: A.Francis Street Pigging Bypass, Project WW-01-17 – Design Briefing B.Revised Net Metering and Customer Generation Policy – Design Briefing C.2019 Utility Rates VII.Information Only Items: A.Landfill Sand Ballast Placement, CON-2018-53 VIII.Next Meeting Date: November 13, 2018 IX.Adjournment pg 1 UTILITY ADVISORY COMMITTEE City Council Chambers Port Angeles, WA 98362 September 11, 2018 3:00p.m I.Call To Order Councilmember and Chair Cherie Kidd called the meeting to order at 3:00pm. II.Roll Call UAC Assigned Councilmembers Present:Deputy Mayor Kate Dexter, Councilmember Cherie Kidd and Councilmember Lindsey Schromen-Wawrin Councilmembers Absent: None UAC Members Present:Paul Collins UAC Members Absent: Vice Chair William Atkinson, Mattias Järvegren, Rob Feller, and Laura Dodd Staff Present:Gregg King, Steve Clark, Nathan West, Bill Bloor, Teresa Reed- Jennings,Jonathan Boehme,Jeff Bender,Lucio Baack, Vincent McIntyre, Glen Goodworth, MarySue French, Marian Bodart, Yvette Nichols, and Michelle Hale Others Present:One Citizen III.Approval Of Minutes Lindsey Schromen-Wawrin requested a motion for approval of the August 14, 2018 minutes. Paul Collins seconded the motion. Motion carried 4-0. IV.Late Items:None V.Public Comment: None VI.Discussion Items: A.Design Briefing for Pump Station 3 Replacement, Project WW0308 Jeff Bender, Civil Engineer II,provided a design briefing for the Pump Station 3 replacement project. Jeff distributed photos to explain the specifics for the project.Originally scheduled as a multi-year project that would install additional gravity mains and force mains, and replace a small pump station with a significantly larger pumping facility, this project is now being scheduled as a simple upgrade to the existing pump station. pg 2 This project was originally estimated to exceed $3 million dollars. The revised Engineer’s Estimate for this project ranges between $400,000 and $600,000.Funds are available in the approved 2018 budget for the Wastewater Utility Capital projects in the amount of $159,000. An additional $900,000 is scheduled for 2019 in the approved CFP. Discussion was held. Kate Dextermade a motion endorse the design strategy for Pump Station No. 3 Replacement, Project WW03-08, and provide a favorable recommendation that City Council award a construction contract in 2018 that is within the approved project budget. Paul Collins secondedthe motion. The motion carried 3-1. Councilmember Lindsey Schromen-Wawrinwish to be noted that the UAC meeting contained only four UAC members (quorum) of which three were councilmembers and only one volunteer committee member. VII.Information Only Items: A.Pre-Design Briefing for H St. Stormwater Outfall, Project DR0213 Vincent McIntyre, Civil Engineer I, distributed a packet to explain the stormwater outfall project.Vince stated the existing conveyance system is too small to accommodate the runoffgenerated by the built-out residential area. A 12” stormwater pipe was installed in 2014 over the bluff at H St. to divert 25% of the entire sub-basin to a new outfall. The current project will complete the diversion effort by connecting the 12” pipe to a new outfall to be located at the southwest corner of the Boat Haven (near the entrance of Castaways). The proposed design will utilize the vacant 48” Industrial Water Line as a casing pipe to house the new storm pipe which will minimize land disturbance in an archeologically sensitive area. This project is currently in the pre-design phase and is expected to go out to bid in early spring with construction anticipated in summer 2019. B.Pre-Design Briefing for Decant Facility at Transfer Station, project SW0112 Lucio Baack, Civil Engineer I,provided an informational updateto the Department of Ecology’s Water Quality Combined Financial Assistance Grant to design and construct a Decant Facility at the Port Angeles Regional Transfer Station. A packet was distributed and Lucio provided details on the decant facility. The funding was delayed in 2016 due to a State budget shortfall. This has sincebeen resolved andCity staff are currently in contact with the Department of Ecology to finalize the grant agreement. Once the grant agreement has been negotiated and signed, the City will issue a Request for Qualifications seeking professional services to design a new decant facility on the preferred site. VIII.Next Meeting Date: October 9, 2018 IX.Adjournment:3:33p.m. ___________________________ __________________________________ Chair Cherie Kidd Michelle Hale, Administrative Specialist II pg 3 UTILITY ADVISORY COMMITTEE MEMO Date: October 9, 2018 To: Utility Advisory Committee From: Jeffrey S. Bender, P.E.,Civil Engineer II, Subject:Francis Street Pigging Bypass, Project WW-01-17 – Design Briefing Summary:This project will install a 16-inch bypass pipeline around the pigging port located in Francis Street Park parking lot. Funding:Funds are available in the approved 2018 budget for the Wastewater Utility Capital projects in the amount of $10,000. An additional $190,000 is scheduled for 2019 in the approved CFP. Recommendation:It is requested that the UAC endorse the design strategy for Francis Street Pigging Bypass, Project WW-01-17, and provide a favorable recommendation that City Council award a construction contract in 2018 that fits within the approved project budget. Background / Analysis:In 2013 IMCO Construction installed a new 36-inch syphon/gravity linewith a pigging launch station from CSO 10 in Francis Street Park to the Wastewater Treatment Plant influent diversion structure. During the design phase of CSO Phase 1 it was anticipated that the bypass line would be installed during CSO Phase 2 after the old force main from the old Pump Station 4 was abandoned. The existing 16-inch gravity main in Francis Street was required to remain in service until the new pump station was constructed, tested, and put into service. Once the new pump station was online, the 16-inch gravity main was going to be disconnected from the abandoned force main and connectedto the new force main installed during CSO Phase 1. This 16-inch main was intended to act as a bypass line around the 36-inch pigging port to facilitate the launching of a pig. During CSO Phase 2 construction, City crews were not able to locate the 16-inch gravity main on the beach in front of Francis Street Park where it was supposed to connect to the new force main. After several days of attempting to locate the line,it was determined that this scope of work would be removed from the CSO Phase 2 contract and added as a separate CFP. A deductive change order was issued and the funds were removed from the CSO Phase 2 contract. Pigging,in the context of pipelines,is the practice of using a device known as a "pig" to clean sediment that has built up in a pipe and has been used for many years to successfully clean large diameter pipelines. This procedure can be done without stopping the flow in the pipeline, as long as a bypass pipe is available to convey the flows around the "launching station". A pig is then inserted in the launching station, the launching station is closed, and flow is redirected through the main. The pressure-driven flow of the fluid in the pipeline is used to push the pig along the pipe until it reaches the "receiving station" (in this case the influent diversion structure) where the pig is then retrieved. Funding Overview:Funds are available in the approved 2018 budget for the Wastewater Utility Capitol projects in the amount of $10,000. These funds are for potential design investigations, survey, etc. pg 4 This project was scheduled for design in 2018 and construction in 2019; therefore, an additional $190,000 is scheduled for 2019 in the approved CFP for construction. pg 5 UTILITY ADVISORY COMMITTEE MEMO Date: October 9, 2018 To: Utility Advisory Committee From: Gregg King, Power Resource Manager Subject: Revised Net Metering and Customer Generation Policy – Design Briefing Summary:Staff estimates that the City will reach the state mandated cumulative limit for net metering systems within the next year. Staff recommends the utility adopt an alternative net metering policy for future renewable energy system installations prior to reaching the state limit that have minimal impact on the City’s electric distribution system, ensures that all rate payers are treated fairly, and aligns with policies of other regional electric utilities. Funding:No additional funds required. Recommendation:It is requested that the UAC endorse the design strategy for a revised net metering and customer generation policy. Background / Analysis:In June 1998, the Washington State Legislature enacted Substitute House Bill 2773: Net Metering for Certain Renewable Energy Systems. Net metering legislation requires electric utilities to offer net metering to customers and allows interconnection of eligible renewable energy systems to the electric grid. The City’s present Net Metering policy mirrors the state legislation allowing for; interconnection of qualified renewable energy systems with generating capacity less than 100 kW; providing a bi-directional electric meter connection capable of measuring the difference between energy delivered by the utility and energy delivered to the city by the customer-generator; providing a credit to the customer generator for any net energy delivered to the utility in a normal billing period; and providing the net metering to city utility customers on a “first-come, first served basis” limited at 0.5 percent of the City’s 1996 peak demand (595 kW). Federal and state tax incentivesand declining renewable energy system costs havedriven a steep increase in program participation over the last several years. The City has experienced a 20% increase in net- metering applications since the beginning of 2018 and is now at 83.4% (495.9 kW) of the legislated minimal limits for net metering. At the present growth rate, the City will reach the legislated limits within approximately one year. Staff recommends an alternate policy be approved before the legislated limitis reached. Staff recommends a policy that will continue to provide net-metering for qualified renewable energy systems that; (a) haveminimal impact on the City’s electric distribution system, (b) ensures that ratepayers are treated fairly,and, (c) aligns with policies of regional electric utilities. Funding Overview:No additional funding required. pg 6 UTILITY ADVISORY COMMITTEE MEMO Date: October 9, 2018 To: Utility Advisory Committee From: Glen Goodworth, Senior Accountant Subject: Proposed Adjustments to 2019 Utility Rates Summary:Aspartofthe2018Budgetpreparation,oneyearrateswereapprovedforElectric,Water, Wastewater,Stormwater,SolidWasteTransferStation andSolidWasteCollectionsutilities.On December31, 2018 theserates will expire. Revisedratesfor allof these utilitiesare being presented for reviewandrecommendationforadoption by the CityCouncil.Therecommendationis for approvalof just a one yearraterevision (2019). Funding:The approval of the proposal presentedwill not increaseexpenditures, but willrequiresome rateincreasesin 2019 thatwillgeneratetherequiredrevenuetomeetbudgetedexpenditures. The need for rateincreasesdiffersbyutility, but includeslaborandbenefitcostincreases,changesin allocations, capital needs, etc. Recommendation:Forward a favorable recommendation to the City Council to adopt the 2019 utility rates upon completion of the mandatory public hears, which will be scheduled at a later date. Background / Analysis:RatesforElectric,Water,Wastewater,StormwaterandSolid Waste Collectionsutilitieswereadopted on December 19, 2017 (Ord.No 3601) tosetrates through 2018. Solid Waste TransferStationratesfor 2018 wereadopted on October 17, 2017 (Ord.No3590).All utilityrates,with theexceptionofMedic1, are to expire on December31, 2018. As part of theBudgetand COSA process, revenue and expenditure analysiswascompletedtodetermine the raterequirementsfor 2019 based on the 2019 Budgetexpenditures and non-raterevenue.Somerates weredetermined to already meet expenditure requirements, thus no change in ratesare recommended. Otherrateswill require differinglevels of rate increasesto achievethe requiredrevenue levels. Insome casesthe informationpresentedbytheCOSA processhas identifiedareassuggesting potential adjustments betweenandwithin rateclasses to achievegreatercustomerrateequity. As with the 2018 Budget, the recommendation for 2019 is one-yearrateoptions forallaffected utilities.Theproposalof singleyearrate setting will allowStaffandCouncilthe opportunitytofully understand the implicationsthat the operationalreviews(COSAs)aresending,evaluateratestructure preferences, pursue potential ratechangesincludingphase-in options, andrecommendfuture rate options thatcan beusedformultipleyears.In 2019, the recommendation is forrateincreasesforthe Water and Wastewater Utilitiesonly.ThesechangesarereflectedinattachmentsAandB.Existing 2018rates provide sufficientrevenuesfor allotherutilities. Afterpresentationof the proposed ratechanges, the requestof theUtility Advisory Committeeis to recommendthe adoption ofthe raterevisionsto the City Council. pg 7 FundingOverview:Theapprovalof the proposal presentedwill not increaseexpenditures,but will requiresomerate increases in 2019 that will generate the required revenue to meetbudgeted expenditures.Theneedfor rateincreasesdiffers by utility,but includeslabor andbenefit cost increases,changes in allocations,capitalneeds, etc. pg 8 Attachment A City of Port Angeles Water Utility Rate Summary 2019 Budget 2019 Accounts/Percent2018% changeRecommended Customer ClassConsumptionof categoryBudgetBudget (1) Overall rate change requirement3.8% Residential 95.0%31.07 5.4% 32.75 5/8"6,727 3/4"310 4.4% 33.75 5.4% 35.58 1"42 0.6% 37.64 5.4% 39.68 1.5"4 0.1% 69.70 5.4% 73.48 Consumption Block 1 (0-1,000 cf)42,716,632 93.2% 0.02410 5.4% 0.02541 Block 2 (1,001-1,500 cf)1,939,373 4.2% 0.03048 5.4% 0.03213 Block 3 (1,501+ cf)1,192,049 2.6% 0.03674 5.4% 0.03873 Commercial 5/8"550 53.9% 50.05 0.0% 50.05 3/4"101 9.9% 53.36 0.0% 53.36 1"147 14.4% 58.90 0.0% 58.90 1.5"85 8.3% 103.76 0.0% 103.76 2"90 8.8% 157.91 0.0% 157.91 3"26 2.5% 283.33 0.0% 283.33 4"11 1.1% 463.08 0.0% 463.08 6"8 0.8% 912.19 0.0% 912.19 8"2 0.2% 1,450.91 0.0% 1,450.91 Consumption28,470,734 0.02298 0.0% 0.02298 Municipal 5/8"16 39.0% 50.05 0.0% 50.05 3/4"3 7.3% 53.36 0.0% 53.36 1"9 22.0% 58.90 0.0% 58.90 1.5"1 2.4% 103.76 0.0% 103.76 2"9 22.0% 157.91 0.0% 157.91 3"2 4.9% 283.33 0.0% 283.33 4"1 2.4% 463.08 0.0% 463.08 Consumption1,398,973 0.02298 0.0% 0.02298 Irrigation 5/8"31 34.8% 41.55 0.0% 41.55 3/4"7 7.9% 45.17 0.0% 45.17 1"20 22.5% 48.93 0.0% 48.93 1.5"8 9.0% 86.15 0.0% 86.15 2"18 20.2% 131.29 0.0% 131.29 3"3 3.4% 235.45 0.0% 235.45 4"2 2.2% 384.74 0.0% 384.74 Consumption5,757,331 0.02364 0.0% 0.02364 PUD Gales Addition1 0.02145 5.4% 0.02261 Baker Street1 0.02049 5.4% 0.02160 (1) The COSA model confirms inequity in rates between Residential and others. The 2019 rate proposal is to reflect the required 3.8% increase in rates in the Residential category only. Although future rate decisions will need to correct the overall inequity, this is a first step. pg 9 Attachment B City of Port Angeles Wastewater Utility Rate Summary 2019 Budget 20182019 Budgeted% changeEscalated 2018 RatesBudget Rates Base Rate-per month0.50%(1) below 430 cf Residential-430 & above 82.97 0.37% 83.28 Residential-below 430 77.04 0.36% 77.32 Commercial 24.02 0.37% 24.11 Municipal 24.02 0.37% 24.11 Consumption Rate-per cf Residential Commercial0.0754 0.40%0.0757 Municipal0.0754 0.40%0.0757 (1) The required percentage increase in Watewater operational rates for 2019 (.5%). Note - The attached rates reflect the combined rates for the operation of the Wastewater Utility and the debt service on the completed CSO project. Although the overall operational rate increase requirement for 2019 is only .5%, when included with a 0% requirement on the CSO rate portion of the total, the taxpayers rate is approximately .36% to .40%. pg 10 UTILITY ADVISORY COMMITTEE MEMO Date: October 9, 2018 To: Utility Advisory Committee From: Lucio Baack, Civil Engineer I Subject:Landfill Sand Ballast Placement, CON-2018-53 Summary The purpose of the 2018 Landfill Sand Ballast Placement project is to place approximately 250 cubic yards of ballast sand over the 351 landfill cell closure turf to prevent uplift and protect the cell. The project will be advertised for bids in November, and after bids are opened, staff will seek approval from City Council for award of a construction contract. Funding:Funds are available in the approved 2018 budget in the amount of $50,000 from the post closure contractservices (account 404-7585-537-4150) and the post closure repair and maintenance budgets (account 404-7585-537-4810). Recommendation:Informational purposes only. Background / Analysis:AGRU Synthetic Closure Turf was selected as the final cover system for the 351 landfill cell for a several reasons.Synthetic Closure Turf reduces upfront capital construction and long-term maintenance costs.The cover also provides improved stormwater quality and improves short term and long term slope stability. The post-closure landfill project requires a ballast sand cover to prevent uplift and protect the cell. Periodic sand lose and replacement was anticipated as a recurring maintenance activity for the post- closure landfill project. As part of thatroutine maintenance activity the City has elected to hire a contractor to deliver and install additional ballast sand over the 351 landfill cell turf cover. A conveyor system, blower equipment, or similar apparatus will be employed to spread the sand to a manufacturer recommended ½ inch. Prior to sand installation the contractor will submit a plan detailing the method of sand placementfor review by City staff. Funding Overview:Funds in the amount of $50,000 are available in the approved 2018 budget in the post closure professional / contract services budget (account 404-7585-537-4150) and the post closer repair & maintenance budget (account 404-7585-537-4810). pg 11