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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 pg 1 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. pg 2 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. pg 3 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 pg 4 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 pg 5 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. pg 6 pg 7 pg 8 pg 9 pg 10 pg 11 pg 12 pg 13 pg 14 pg 15 pg 16 pg 17 pg 18 pg 19 pg 20 pg 21 pg 22 pg 23 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. pg 24 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. pg 25