HomeMy WebLinkAboutUAC Packet 05/14/2019
City Council / Utility Advisory Committee Joint Meeting
City Council Chambers
Port Angeles, WA 98362
May 14, 2019
3:00 p.m.
UPDATED AGENDA
Updates include:
Reordering of items VI and VII
I.Call To Order
Additional Discussion Topic (UAC
II.Roll Call Recommendation of COSA Models)
III.Approval Of Minutes forApril 09, 2019
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. Informational Only Items:
A.Combined Cost of Service Analysis (COSA) Presentations / Discussion
VII.Discussion Items:
A.UAC Recommendation of COSA Models
B.Electric Utility Operations Center Professional Services Agreement
C.Capital Facilities Plan (CFP) 2020-2025
VIII.Information Only Item:
IX.Next UAC Meeting Date:
UAC meeting June 11, 2019 at 3:00-5:00 pm
X.Adjournment
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UTILITY ADVISORY COMMITTEE
City Council Chambers
Port Angeles, WA 98362
April 09, 2019
3:00p.m
I.Call To Order
Chair Cherie Kiddcalled the meeting to order at 3:00pm.
II.Roll Call
UAC Assigned
Councilmembers Present:Mayor Sissi Bruch, Deputy Mayor Kate Dexter, Councilmember and
Chair Cherie Kidd,Councilmember Jim Moran, Councilmember Mike
French and Councilmember Lindsey Schromen-Wawrin
Councilmembers Absent:Councilmember Michael Merideth
UAC Members Present:Vice Chair William Atkinson, Mattias Järvegren,Paul Collinsand
Rob Feller
UAC Members Absent: Laura Dodd
Staff Present:Glen Goodworth, Gregg King, James Burkeand Jonathan Boehme
Others Present:Three Citizens
III.Approval Of Minutes
Paul Collinsrequested a motion for approval of the March 12, 2019 minutes.Kate Dexter
seconded the motion. Motion carried 7-0.
IV.Late Items:None
V.Public Comment:
Matt Jordan talked about dark skies and energy waste.
Becky Swan talked about wastewater averaging.
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VI.Discussion Items:
A.Pump Station 3 Design and Construction Support, Professional Services Agreement
Jonathan Boehme, City Engineer, reviewed the Pump Station 3 and needed construction support. Pump
Station 3 is not working and needs to be replaced. The City issued a Request For Proposal (RFQ) and
selected Kennedy Jenks.Discussion ensured.
Kate Dexter made the motion that the UAC provide a favorable recommendation for City Council
to authorize the City Manager to sign the 2019 Pump Station 3 Design and Construction Support
Professional Service Agreement with Kennedy Jenks Consultants in the not to exceed amount of
$215,950 and make minor modifications if necessary.Rob Feller seconded. Motion carried 7-0.
B.2019 NPDES Wastewater Outfall Inspection, Professional Services Agreement
Jonathan Boehme, City Engineer, explained that the City must renew its NPDES permit for its
Wastewater Treatment Plant every five (5) years. This agreement is for underwater inspection of the
outfalls from the Plant.The City issued a Request For Proposal (RFQ) and BergerABAMwas selected.
Discussion ensured.
Bill Atkinson made the motion the UAC forward a favorable recommendation to City Council to
authorize the City Manager to sign the 2019 NPDES Outfall Inspection Professional Service
Agreement with BergerABAM in the not to exceed amount of $50,000and make minor
modifications if necessary. Rob Feller seconded. Motion carried 7-0.
C.Net Metering Policy
Gregg King, Power Resource Manager, discussed the House Bill 2773 and that the City is coming up on
the legislated cap of 0.5% of its 1996 peak load. The City wishes to encourage continued customer
owned generation and wishes to modify its net metering agreement to purchase generation at a
wholesale cost so as not to burden other rate payers.
Discussion ensured concerning the calculation for wholesale power and the billing process. There was
also concern a current House bill would render the need to update the Net Metering Agreement moot.
Staff will research the UAC’s questions and return at a later date.
No UAC action.
D.Changes to Electric Utility Port Angeles MunicipalCode
Gregg King, Power Resource Manager, went over some housekeeping of the City’s municipal code as it
relates to electric utilities: Time of Use not required for most rate payers, Yard Light Efficiency updated for
more efficient lighting, and slight increase charged for lockbox installation. Discussion ensued about time
of use and the blue lighting of some LED lighting.
Lindsey Schromen-Wawrinmade the motion the UAC forward a favorable recommendation to City
Council to adopt the following updated municipal codes and to make minor modifications as
needed: 13.12.020 – 13.12.066, 13.12.072, 3.70.100.Kate Dexter seconded. Motion carried 6-1.
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VII.Information Only Items:
A.Wastewater and Stormwater Cost of Service Analysis (COSA) Presentations
Glen Goodworth, Senior Accountant,went through the COSA model developed for Wastewater.
Discussion followed. Stormwater COSA was cut short due to time.
VIII.Next Meeting Date:
April 23, 2019Special Meeting
May 02, 2019 Webinar education
May 14, 2019 UAC meeting
IX.Adjournment:5:02pm
___________________________ __________________________________
Chair Cherie Kidd Gregg King, Power Resource Manager
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UTILITY ADVISORY COMMITTEE
MEMO
Date: May 14, 2019
To: Utility Advisory Committee
From: Glen Goodworth, Senior Accountant
Subject: Combined Cost of Service Analysis (COSA)Presentation
Summary:Upon completion of the individual Utility COSA reviews, a summary of the potential COSA
model options for 2020 and beyond is to be discussed. The model option recommendations from the
st
UAC will be presented to the City Council on May 21.
Funding:N/A
Recommendation:The UAC forwards a favorable recommendation to advance selectedCOSA
models for each utility to the City Council for approval.
Background / Analysis:In order for City Council and the UAC togain a greater understanding of the
COSAprocess a series of informational trainings were presented to Council and UAC over the course of
the last few months, leading to more informed and involved rate setting and decision making. The
th
presentations concludedwith the May 8meeting on the Electric COSA.
A review and discussion of the COSA model results will be presented so that recommended rate-setting
models can be forwarded to the City Council for selection and approval. The selected COSA models will
then be used in conjunction with the 2020 Budget to set rates for 2020 and beyond.
Funding Overview:N/A
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UTILITY ADVISORY COMMITTEE
MEMO
Date: May 14, 2019
To: Utility Advisory Committee
From: Shailesh Shere,Acting Director of Public Works & Utilities,
Subject:Electric UtilityOperations Center, Professional Services Agreementwith Crow
Engineering
Summary:The purpose of this memo is to receive UAC support forthe Light Utility Operations Center
Professional Services Contract. Electric Utility operations has been located in rented facilities following
the sale of the former location in 2008. The City requires design and construction management services
to execute the project.
Funding:Funds are available and proposed for 2020 budget for the Electric Utility (451-7188-594-6510)
in the amount of $400,000 for design and $6,000,000 for construction and construction management.
Recommendation:It is requested that the UAC forwarda favorable recommendation for City Council
to authorize the City Manager to sign the Professional Services Agreement with Crow Engineering in the
not to exceed amount of $384,190.00 and make minor modifications as necessary.
Background / Analysis:The project to construct the Electric Utility Operations Center is identified in
the Capital Facilities Plan as CL0414. The facility will be sited on City owned property adjoining the City’s
Corporation Yard complex at the intersection or Lauridsen Boulevard and the Tumwater Truck Route.
st
Responses to a request for qualifications for the desired were received July 31, 2017. Fee negotiations
with the firm determined to be the most qualified were initiated. These negotiations continued sporadically
until February of this year. The sporadic nature of the negotiations was due to several factors including
changes in upper management and efforts to purchase various existing facilities. A satisfactory agreement
as to the design fee and construction cost estimate could not be reached. As a result, staff was instructed to
enter into negotiations with Crow Engineering of Beaverton, Oregon, the firm that was determined to be
the next most qualified during the initial evaluation process.
Satisfactory estimates for design and construction cost estimates were received in April. The estimated
design fee is $384,190 with and estimatedconstruction cost of $4,679,700 with a 25% contingency of
$1,169,925 for a total construction cost estimate of $5,849,625, not including applicable taxes. A
breakdown of the design fee estimate, which includes a tentative schedule, a rough order of magnitude
construction cost estimate, and a scope of desired services are provided as attachments to this memorandum.
Funding Overview:Funds are available and proposed in 2020budget for the Electric Utility (451-
7188-594-6510) in the amount of $400,000 for design and $6,000,000 for construction and construction
management.
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UTILITY ADVISORY COMMITTEE
MEMO
th
, 2019
Date: May 6
To: Utility Advisory Committee
From: MarySue French, Sr. Accountant,
Subject:Capital Facilities Plan
Summary:Long-term planning allows the City time to plan, fund,and prioritize projects.Thefirst year
of the Capital Facilities Plan (CFP) becomesthe next year’s capital budget.
Funding:There is no requirement for funding at this time. Eachproject sheetdescribes the proposed
funding. Funding sources include governmental transfers, utility reserves (both capital and operating),
utility rates, grants, and contributions. If funding has not been identified the project is marked unfunded,
but still remains in the CFP. No additional debt is proposed for this planning cycle (2020-2025)
Recommendation:Staff requests UAC forward a favorable recommendation to the City Council for
approval of the Capital Facility Plan for 2020 – 2025.
Background / Analysis:
The Capital Facilities Plan (CFP) allows the Utility Advisory Committee, Citizens, and City Council to
critically review and identify what is working, what can be improved, what might be needed in the future,
and what opportunities exist. This comprehensive approach allows consideration and approval of capital
improvements/replacements for a longer range than an annual review. This provides a coordinated
decision making process which can consider all available information and resources. For example,often
times this coordination allows staff to change priorities so we can replace underground facilities prior to
repaving roadways.
The City of Port Angels defines a capital facility project as a project that exceeds one year in length, and
is over $7,500 in cost. The proposed Utility Capital Facility Plan incorporates directives from City
Council including:
Building capital reserves to a cash to depreciation ration to 1:1.
o This means the cash held for each capital utility fund should be equal to the prior
years’ depreciation for that fund.
o In the Utility section, Wastewater which had been below the cash to depreciation
requirementfor the previous 2 yearsat 81% and 53% has improved to 101% by
2025 and the intervening years are 12%-47% better than the 2019-2024 CFP.
o This level in reserves allows utilities to react in emergency situations without fear
of rate impacts caused by unplanned spending.
o Allows the fund to build a balance for large infrequent projects without raising
rates which smoothsthe contributions from rates over a period of time.
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Replacement of critical infrastructure based on priorities, and focus on preventable
maintenance to increase asset life.
Best use offunds available, allowing for little to no impact on customer rates from capital
investment.
o Allows for long-range rate planning. The project costswill be used for the Cost of
Service Analysis currently being performed.
Leveragesprojects and allows the building of projects in one area at the same time to save
on construction costs. (i.e. staging, digging, etc.)
Links projects to the Comprehensive and StrategicPlan.
This is a living document and is subject to change due to shiftingpriorities, emergencies and other
factors. Should a change be made, the document will be updated along with any changes needed for the
budget. Council can make changes upon adopting any new spending that is capital in nature. If changes
are presented an analysis will be performed to ensure rates are not impacted negatively.
Funding Overview:
The first year of the Capital Facility Plan will become next year’s budget. There is no requirement for
funding at this time.
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