HomeMy WebLinkAboutAgenda Packet 11/13/2018
Utility Advisory Committee
City Council Chambers
Port Angeles, WA 98362
November 13, 2018
3:00 p.m.
AGENDA
I.Call To Order
II.Roll Call
III.Approval Of Minutes for October 9, 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.Community Solar Project
VII.Information Only Items:
VIII.Next Meeting Date: December 11, 2018
IX.Adjournment
UAC 11/13/2018pg 1
UTILITY ADVISORY COMMITTEE
City Council Chambers
Port Angeles, WA 98362
October 9, 2018
3:00p.m
I.Call To Order
Councilmember and Chair Cherie Kidd called the meeting to order at 3:02pm.
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:Vice Chair William Atkinson
UAC Members Absent: Mattias Järvegren, Rob Feller, Paul Collins and Laura Dodd
Staff Present:Gregg King, Shailesh Shere,Nathan West, Teresa Reed-Jennings,
Tess Agesson, Jeff Bender,Lucio Baack, Glen Goodworth,
MarySue French,Marian Bodart, and Michelle Hale
Others Present:
III.Approval Of Minutes
Lindsey Schromen-Wawrin requested a motion for approval of the September 11, 2018
Minutes.Kate Dexterseconded the motion. Motion carried 4-0.
Lindsey made a statement regarding the quorum representationat the meetings.
IV.Late Items:Lindsey Schromen-Wawrinexpressed interest in the UAC having discussion on
the City’s designation to Tree Line USA. Chair Cherie Kiddrequested to put this topic on a
future meeting agenda when more information is available.
V.Public Comment: None
VI.Discussion Items:
A.Francis Street Pigging Bypass, Project WW-01-17– Design Briefing
Jeff Bender, Civil Engineer II,provided a design briefing to install a 16-inch bypass pipeline around the
pigging port located in Francis Street Park parking lot. Mr. Benderprovided a history of the pipe and
describedhow the “pigging” process uses a “pig” to clean sediment that has built up in a pipe to
UAC 11/13/2018pg 2
successfully clean large diameter pipelines. 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. Discussion was held.
Vice Chair BillAtkinson made a motion to 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. Kate Dexterseconded
the motion. Motion carried 4-0
B.Revised Net Metering and Customer Generation Policy – Design Briefing
Gregg King, Power Resource Manager,briefed committee members on the Revised Net Metering and
Customer Generation Policy. Staff estimates the City will reach the state mandated cumulative limit by
next yearandrecommends adopting an alternative net metering policy for future renewable energy
system installations prior to reaching the state limit that have a) minimal impact on the City’s electric
distribution system, b) to ensure all rate payers are treated fairly, and c) aligns with policies of other
regional electric utilities. No additional funds required. Shailesh Shere, Acting Director of Public Works,
discussed in detail the threepointsto the revised policy. Discussion followed to include requests for more
information.
Kate Dexter made a motion to endorse the design strategy for a revised net metering and
customer generation policy. Vice Chair BillAtkinson seconded the motion. Motion carried 4-0
C.2019 Utility Rates
Glen Goodworth, Senior Accountant/COSA, provided a detailed presentation on the 2019 Utility Rates.
As part of the Budget and cost of service analysis (COSA) process, revenue and expenditure analysis
was completed to determine the rate requirements for 2019 based on the 2019 budget expenditures and
non-rate revenue. In 2019, the recommendation is for a one year rate revision for Water and Wastewater
Utilities only. Two public hearings are scheduled on the proposed rates; October 16 and a few weeks
later in November.Lengthy Discussion followed.
Kate Dexter made a motion to forward a favorable recommendation to the City Council to adopt
the 2019 utility rates upon completion of the mandatory public hearings, which will be scheduled
at a later date.Lindsey Schromen-Wawrin seconded the motion. Motion carried 4-0
Information Only Items:
A.Landfill Sand Ballast Placement, CON-2018-53
Lucio Baack, Civil Engineer I,spokebrieflyof the 2018 Landfill Sand Ballast Placement project. The
project will place approximately 250 cubic yards of ballast sand over the 351 landfill cell closure turf to
prevent uplift and protect the cell. This is part of the Post Closure Plan. Funds are available in the
approved 2018 post closure budget in the amount of $50,000. 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.
UAC 11/13/2018pg 3
VII.Next Meeting Date: November 13, 2018
VIII.Adjournment:4:54p.m.
___________________________ __________________________________
Chair Cherie Kidd Michelle Hale, Administrative Specialist II
UAC 11/13/2018pg 4
UTILITY ADVISORY COMMITTEE
MEMO
Date: November 13, 2018
To: Utility Advisory Committee
From: Shailesh Shere,Deputy Director Power Systems,
Subject: Community Solar Project
Summary:With the assistance ofthe Bonneville Environmental Foundation (BEF), Port Angeles issued
a Request for Proposal (RFP) for a 1 MW community solar project. The City received two proposals,
which are being evaluated.
Funding:No upfront funding required.
Recommendation:Staff recommends the UAC forward a favorable recommendation to the City
Council to approve City staff to review and evaluate the submitted proposals with the goal of procuring a
power purchase contract for a fiscally responsible community solar program.
Background / Analysis:Community Solar Projects (CSPs) are centrally located renewable energy
systems that provide a renewable energy option for utility customers that cannot afford or do not have a
favorable location for a customer-side renewable system of their own.
Port Angeles recently issued a Request for Proposal (RFP) for a one (1) MW community solar project.
The RFP calls for aninvestor to finance, build and operate the community solar project. The tax investor
would recoup their investment with federal tax credits and a power purchase agreement with the City.
Once the investor has utilized all tax incentives, the Citymaypurchase the project atfair market value
(FMV). City participants would purchaserenewable energyat a reasonable net green-energy rate, and
receive annual state incentives to offset the increased rate.
The City received and is evaluating two proposals. Steps remaining in the evaluation process are refining
afinancial model, develop and implement a website customer survey, develop a marketing plan, and
negotiate a power purchase agreement.The final agreement will be brought to the City Council for
approval.
Staff recommends the UAC forward a favorablerecommendation to the City Council to approve City
staff to review and evaluate the submitted proposals with the goal of developing a contract for a fiscally
responsible community solar program.
Funding Overview:
The City is in the early stages of refining a comprehensive financial model based on the following:
An investor would finance and build a 1 MW solar project in Port Angeles at no up-front cost to the
City.
The investor would utilize a combination of federal tax incentives, and a power purchase
agreement, to recouptheir costs.
UAC 11/13/2018pg 5
Staff will develop a community solar program that allows Port Angeles residential and business
customers to participate without impacting other rate classes.
The community solar program willbe self-sustaining and include all operation, maintenance, and
repair costs for the life of the project.
All negotiations are nonbinding until the City Council approves a contract and the contract is
signed.
UAC 11/13/2018pg 6