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HomeMy WebLinkAboutUAC Packet 07/09/2019 Utility Advisory Committee City Council Chambers Port Angeles, WA 98362 July 09, 2019 3:00 p.m. AGENDA I.Call To Order II.Roll Call III.Change in UAC Membership IV.Approval Of Minutes for June 11, 2019 V.Late Items VI.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). VII.Discussion Items: A.Elwha Water Treatment Plant – Engineering Services (PSA-2019-21) B.Follow-up to Wastewater Port Angeles Municipal Code VIII.Information Only Items: A.Morse Creek FERC License Surrender Update IX.Next Meeting Date: August 13, 2019 X.Adjournment pg 1 UTILITY ADVISORY COMMITTEE MEETING City Council Chambers Port Angeles, WA 98362 June 11, 2019 3:00p.m I.Call To Order Vice Chair William Atkinsoncalled the meetingto order at 3:02pm. II.Roll Call UAC Assigned Councilmembers Present:Deputy Mayor Kate Dexter, Councilmember Lindsey Schromen- Wawrin UAC Members Present:Vice Chair William Atkinson, Mattias Järvegren UAC Members Absent: Councilmember and Chair CherieKidd, Laura Dodd, Rob Feller, Paul Collins Staff Present:Gregg King, Shailesh Shere, JonathanBoehme,Jason Hart, David Freed, William Bloor, Marian Bodart, Diana Bagwell, and Michelle Hale Others Present:ThreeCitizens III.Approval Of Minutes Lindsey Schromen-Wawrin moved to approve the May14, 2019minutes, amended to change verbiage from “request a motion” to “moved”.Deputy Mayor Kate Dexterseconded the motion. Motion carried 4-0. IV.Late Items:None V.Public Comment: Chris Hartman, representing Port of Port Angeles, requested the local limit for the Wastewater Utility Port Angeles Municipal Code (VI.B.) be changed to lower the limits for copper and zinc. The Port of Port Angeles launched a new facility that will not be able to meet these newly proposed limits. Jesse Waknitz, representing Port of Port Angeles, requestedthe City to reconsider lowering the limits in the proposed Wastewater Utility Port Angeles Municipal Code (VI.B). The current suggested limits would open up the Port ofPort Angeles to multiple violations and penalties. VI.DiscussionItems: pg 2 A.2019 Landfill Beach Nourishment, Contract CON 2019-28 Jonathan Boehme,City Engineer and Deputy Director of Engineering, provided history into the annual Landfill Beach Nourishment project and the Shoreline Permit requirements. Jonathan Boehme is requesting UAC endorse the design strategy for the 2019 Landfill Beach Nourishment and for UAC to provide a favorable recommendation to City Council for the award of a 2019 construction contract in an amount not to exceed $55,000. Lindsey Schromen-Wawrin moved to provide a favorable recommendation to City Council for the award of a 2019 construction contract in an amount not to exceed $55,000. Seconded by Kate Dexter. Motion carried 4-0. Lindsey Schromen-Wawrin moved to endorse the design strategy for 2019 Landfill Beach Nourishment, Project CON-2019-28, with the addition to reevaluate the design strategy in collaboration with the statefor future years. Seconded by Kate Dexter. Motion carried 4-0. B.Changes to Wastewater Utility Port Angeles Municipal Code Deputy Director of Water & Wastewater Jason Hartis proposing to make small changes to the Wastewater Utility Port Angeles Municipal Code. Jason Hart introduced David Freed, Wastewater Pretreatment Specialist, who detailed the sections of the code that required updating. These sections included Upper pH discharge limit; Grease Interceptors & Garbage Disposals; National Pretreatment Standards; Dilution & Mass-Based and/or Concentration- Based Limits; Local Limits; and Typographical error. Discussion was held regarding the concerns of businesses around the proposed local limits changes. The local limits of the PAMC will be added as an agenda item to the next UAC meeting. Kate Dexter moved to forward a favorable recommendation to City Council to adopt the upper pH discharge limit, grease interceptors and garbage disposals, national pretreatment standards, dilution and mass-based and/or concentration-based limits, typographical error and not local limits for the recommended municipal code updates and to make minor modifications as needed.Lindsey Schromen-Wawrinsecondedthe motion, recognizing that there should be a larger discussion around local limits. Motion carried 4-0. VII.Informational OnlyItems: A.Stage I Water Shortage Declaration Power Resource Manager Gregg Kingstated that Governor Inslee has declared a drought emergency for Clallam County. City of Port Angeles staff are implementing Stage I Water Shortage Declaration. City Manager will be presenting the declaration to City Council. VIII.Next Meeting Date: July 9, 2019 IX.Adjournment:4:28pm pg 3 Chair Cherie Kidd Diana Bagwell, Adtrative Specialist II UTILITY ADVISORY COMMITTEE MEMO Date: July 9, 2019 To: Utility Advisory Committee From: Jonathan Boehme P.E., City Engineer,Deputy Director of Engineering Subject:Elwha Water Facility – ProfessionalServiceAgreement(PSA-2019-21) Summary:the City formally accepted transfer of the Elwha Water Facilityfrom the National Parks Service(NPS) on August 1, 2018. In order for the City to effectively maintain and operate the facility on a long-term basis, the City requires professional engineering expertise. Jacobs Engineering Group has been selected as the most qualified firm to provide these services. Funding:Funding from the National Park Service (NPS) for capital improvements and operating costs areavailable through the 2018 settlement agreement with the NPS. The Industrial Water budget(account 402-7382-534-4150)willneed tobe amended to include professional service costs of $150,000 for 2019. Funds of $200,000 for 2020 will be budgeted in the annual budget process. Recommendation:Forward a favorable recommendation to the City Council toauthorize the City Manager to sign the Elwha Water Facility –Engineering Services Professional Services Agreement with Jacobs Engineering Group in the amount not to exceed $150,000 in 2019, and $200,000 in 2020, and to make minor modifications to the agreement as necessary. Background / Analysis:The Elwha Water Facility (EWF) was maintained by the NPS until formally transferredto the City on August 15, 2018. Upon acceptance of the EWF, the City determined that operational modifications were necessary to effectively maintain and operate the Facility. The City evaluated six engineering consulting firmsand selected Jacobs Engineering Group.In 2017, Jacobs Engineering Group acquired CH2M,the original designers of the EWF.Given their institutional knowledge, Jacobs Engineering Group is uniquely qualified assist the City.Through this agreement,the City will be provided with support services from August 1, 2019 through December 31, 2020 Jacobs Engineering Group will work with City staff to develop a Facility Management and Decommissioning Planfor the overall EWF operation and maintenance. The final version will be delivered in early 2020, shall not exceed $100,000,and will include an implementation schedule, cost estimates and recommendations for operational and structural modifications. Including: o surface water intake; o diversion pumping compound; o fish screen structure; o effluent distribution structure; and o relocationof an emergency generator and SCADA equipment. If equipment and / or facilities are no longer be needed, the Consultant will assist the City with surplus and decommissioning. In 2020,after the Plan has been delivered, the City will begin Plan implementation. The City anticipates Plan implementation will cost $200,000 for the remainder of 2020. pg 5 This Professional Services Agreement also includes assistance for engineering and technical support for unforeseen issuesthat may arise. Under this task the City and Jacobs Engineering Group will negotiate the scope of work, fee and formalize a Directed Services work order. Funding Overview:Funding from the National Park Service (NPS)for capital improvements and operating costs are available through the 2018 settlement agreement with the NPS. The Industrial Water budget (account 402-7382-534-4150) will need to be amended to include professional service costs of $150,000 for 2019. Funds of $200,000 for 2020 will be budgeted in the annual budget process. pg 6 Exhibit A – DRAFT Scope of Work for Elwha Water Facilities Engineering Support Jacobs Engineering Group, Inc. (Consultant) shall provide the following services to the City of Port Angeles (City), as described herein, in the form of planning, analysis, design, and other technical support related to City’s Elwha Water Facilities. The budget for these services is presented in Exhibit B on a per-task and per-sub-task basis. These per-task and per-sub-task budgets were developed to establish the level of effort for each task and subtask as well as to establish the overall project budget. These task and subtask budgets are not contractually binding. They are presented to identify the configuration of the overall budget, which provides the contractually binding, not-to-exceed contract limit. It is understood that some tasks and subtasks may be under-spent and some tasks and subtasks may be over-spent. This is acceptable as long as the overall not-to-exceed contract limit is not exceeded. Project invoices will be submitted to City allocating incurred labor and expense costs at the task level, not the subtask level. Consultant travel to the City shall be at the request of the City, and will be a reimbursable expense to be charged against the applicable task. Background The Elwha Water Facility (EWF) is located on the Elwha River west of Port Angeles in Clallam County, Washington, approximately 2 miles upstream from the mouth of the river. As part of the removal of the Elwha dams, the EWS was constructed by the National Parks Service (NPS) as a mitigation facility to supply and treat water from the Elwha River for use by the City of Port Angeles, Lower Elwha Klallam Tribe, Washington Department of Fish and Wildlife, and McKinley Paper Company. The EWS had been maintained by the NPS and its operations contractor, Veolia North America, until it was formally transferred to the City on August 15, 2018 pursuant to the Elwha Transfer Agreement executed on August 1, 2018. Upon the City accepting the transfer of the EWF, it was determined a series of operational modifications would be necessary for City staff to effectively maintain and operate the system. This Scope of Work identifies various tasks and engineering support services for the City’s Water and Engineering Departments for the period of August 1, 2019 through December 31, 2020. Specific components of the work for the period of this contract include the tasks listed below. Summary of Key Assumptions Some of the key assumptions upon which the scope and budget of this Agreement is based are presented below. City shall furnish all applicable design and report documents as PDFs to Consultant. City staff that have understanding of the needs and objectives for the EWF shall participate in the Task 2 conference call and the Task 3 site visit and workshop. All deliverables shall be submitted via email as PDFs and/or Word and Excel files, as applicable. The planning and evaluation activities presented herein are those identified as key elements of an overall facility management and decommissioning strategy. Other elements of an overall strategy pg 7 may be identified as part of this work and those elements may warrant further evaluation. If such elements are identified and deemed necessary to evaluate, an amendment to this Agreement will be undertaken to scope and fund that additional evaluation. Task 1.Data Collection Consultant shall receive and review all applicable drawings, specifications, reports, and other documentation related to the EWF that aid Consultant’s work. Consultant’s project team shall review the documents furnished by City. A summary of the documentation made available by the City for review shall be developed by Consultant for inclusion into the Facility Management and Decommissioning Plan as a bibliography or references list. Task 2.Description of the EWF Consultant shall describe the EWF as part of the introduction of the Facility Management and Decommissioning Plan. Consultant’s description shall include: An overall site plan showing the location and names of the facilities that comprise the EWF. The overall site plan shall be prepared using an aerial photo as the basemap. Or, if City prefers and provides an alternative GIS-based drawing, design drawing, or as-built drawing, Consultant shall use that to develop the overall site plan. Prepare a brief description of each of the main facilities that comprise the EWF. Include one or more photographs for each facility. Provide a brief narrative of the original, intended purpose of each facility. Consultant shall incorporate an introductory section describing the original intention of the EWF and the history of the project, as developed by City and furnished to Consultant. Consultant shall incorporate a discussion of EWF facility operations in recent years with respect to Elwha River water quality impacts. These impacts are understood to be related to the use of the TDPF and cleaning frequency of the Fish Screen Structure. Consultant shall develop a narrative of this topic based on input from City. Consultant shall incorporate a discussion of the operating permit(s) under which the EWF is required to operate – identifying key operating requirements and constraints. Consultant shall develop a narrative of this topic based on input from City and provisions of the operating permit(s). Consultant shall incorporate a discussion of Elwha River water quality reflecting the observed trends in the river, as tracked and summarized by other sources. Consultant’s effort here is limited to incorporating raw documentation from other sources by appendix and any summarized narrative developed by City. Task 3.Preliminary Development of Strategies Consultant and City shall participate in a conference call of up to three hours duration to discuss City’s overall objectives for the EWF and, as applicable, for each individual EWF facility. The conference call shall serve as an opportunity to discuss challenges, options, constraints, and other factors that impact City’s objectives. It shall also serve as an opportunity to address the individual evaluations presented as subtasks of Task 5. Based on the input and discussion from the conference call, Consultant shall develop preliminary facility planning strategies for further review and discussion as part of the Task 4 site visit. pg 8 Consultant shall summarize the results and content of the conference call and submit to City for its review and comment. Task 4.Site Visit and Planning Workshop Consultant shall participate in an EWF site visit and planning workshop with City staff. It is understood the site visit will be undertaken in the morning and the planning workshop in the afternoon. Alternative strategies and solutions for each of the EWF facilities shall be addressed and discussed during the Task 4 Site Visit and Planning Workshop to facilitate final decisions regarding strategies. Prioritization of improvement strategies for the overall EWF and for individual EWF facilities shall be discussed as part of Task 4 Site Visit and Planning Workshop for formal documentation by Consultant as part of Task 5. Consultant shall summarize the results and content of the conference call and submit to City for its review and comment. Task 5.Development of Facility Management Strategies City has identified several specific facility management strategies for consideration as part of the overall Facility Management and Decommissioning Plan. These strategies are presented in the subtasks below. Other, unidentified strategies that are anticipated to become apparent during execution of the work, will be addressed as part of Task 5.8, Other, to the extent allowed by the budget. Consultant shall undertake the subtasks below in narrative and schematic-diagram format. Schematic diagrams of the improvement strategies shall be developed as hand markups or PDF markups of existing design or as-built drawings. Upon completion of each or most of the subtasks below, Consultant shall facilitate a conference call with City to review and discuss a draft of the results of each subtask. Consultant shall revise content and results of each subtask based on City review comments and input. Upon completion by Consultant of the revisions, Consultant shall develop estimated costs, as part of Task 5. 5.1Equipment Surplus and Facility Decommissioning Plan Consultant shall develop a preliminary facility decommissioning plan that includes a summary of equipment items and facilities to be included in a public works contract that would be competitively bid. The plan shall include brief descriptions of the facilities, their original function, the rationale for their surplussing or decommissioning. 5.2SCADA Consultant shall evaluate the EWF’s existing supervisory control and data acquisition (SCADA) and communication system. Develop a description of key scope activities and their associated cost to remotely monitor and control selected EWF facilities and equipment, from the PAWTP, and integrate the EWF facilities into the City’s existing SCADA system. This task includes consideration of SCADA needs at each of the individual EWF facilities. 5.3Elwha Surface Water Intake (EWSI) Consultant shall identify, describe, and assess options for sediment removal from the ESWI’s sediment trough, as well as modification options to the existing bar screens to reduce the amount of cobbles, entrained bed load, and woody/leafy debris entering the ESWI. pg 9 5.4Diversion Pumping Compound The Diversion Pumping Compound is comprised of two facilities; the Diversion Pumping Station (DPS), and the Temporary Diversion Pumping Facility (TDPF). Both facilities are located in the same fenced area on the EWF site. The DPS and TDPF both utilize the same intake rotary screens and suction header supply. The purpose of this task is to assist City select which of the two facilities if should retain for long- term service and which facility it should decommission. Consultant shall develop estimated operations and management costs for the DPS and TDPF for comparison and assistance in assessing which facility should be kept in service. This evaluation shall include identification of options and costs to furnish clean seal water to the DPS pumps and the feasibility of modifying the DPS as a gravity intake structure. 5.5Fish Screen Structure Consultant shall assist City by providing engineering support related to the operation and maintenance of the Fish Screen Structure. Specifically, Consultant shall undertake the following actions: Evaluate facility safety issues, make recommendations for safety measures to mitigate fall hazards, and other hazards associated with the facility’s sediment removal process. Identify and describe potential facility modifications related to implementation of a fish friendly/automated sediment removal system Identify and describe options to facilitate maintenance of the overall fish screen structure. Assess the feasibility of a hoist system over the fish screen structure to aid in component maintenance. The Fish Screen Modulation Parameter Control Panel is susceptible to harsh weather, extreme heat, and cold weather. These factors have resulted in panel failure. Identify options and recommend a preferred option for improving control panel climate control. 5.6Effluent Distribution Structure (EDS) The Effluent Distribution Structure (EDS) includes three pump systems and two gravity-fed treated water lines. Various pumps supply water to the Port Angeles Water Treatment Plant, the EWF utility water, and EWF fire suppression systems. The gravity connections supply water to WDFW, McKinley Paper, and LEKT. The EWF utility water system provides general-purpose non-potable water for maintenance and treatment process applications. Consultant shall undertake the following activities associated with the subtask: Review with City issues associated with the existing fire suppression system and develop a course of action to enable resumption of fire suppression service. Develop a concept design of a bypass pipeline and associated system for the EDS so that EDS pumps can be regularly exercised and maintained without impacting normal operation of the Port Angeles Water Treatment Plant. 5.7Ranney Well It is understood that the backup emergency generator at the Ranney Well is no longer operational and is in need of costly repair to return it to an operational condition. Given that the existing non-operational generator is over 40 years old and that there is a 1,000-KW generator on-site and available for relocation, City is interested in the feasibility of incorporating the 1,000-KW generator as a replacement. pg 10 Consultant shall describe in concept options for incorporation of the 1,000-KW generator and removal of the existing generator for surplus or scrap. No further evaluation of making repairs to the existing Ranney Well generator will be undertaken. It is understood that City has solicited scope and cost information for its repair. Consultant shall identify and summarize each of the main electrical loads and the total electrical equipment load to be powered by the 1,000-KW generator. The 1,000-KW generator is understood to be housed in an outdoor enclosure and that it would be situated near the Ranney Well facility outdoors on an equipment pad. 5.8Other Consultant shallcoordinate with City staff regarding other EWF facilities not specifically identifiedherein and develop a facility management strategy for each. The strategy could include continued operation and maintenance of the facility, re-purposing of the facility, or decommissioning of the facility. Consultant’s support with respect to this subtask shall be to the extent enabled by the budget. Task 6.Estimated Costs Consultant shall estimate the cost of the EWF improvements and improvement strategies developed in Task 5. The projects shall be developed as total initial capital project costs. These total initial capital project costs account for planning, design, permitting, construction, and construction management. The estimated costs shall be developed using Consultant’s standard “Timberline” software package and made available for City review. The estimate shall be organized on a per-facility and/or per- improvement strategy basis. A summary of the estimated costs shall be developed for inclusion in the main body of the Facility Management and Decommissioning Plan document. The cost estimates shall conform to the classification standards established by the Association of the Advancement of Cost Engineering International (AACEI). The Class of estimate shall be 5 as defined by AACEI. In providing opinions of construction cost, Consultant has no control over cost or price of labor and materials; unknown or latent conditions of existing equipment or structures that may affect operation or maintenance costs; competitive bidding procedures and market conditions; time or quality of performance by operating personnel or third parties; and other economic and operational factors that may materially affect the ultimate project cost or schedule. Therefore, Consultant makes no warranty that the City’s actual project costs, financial aspects, economic feasibility, or schedules will not vary from Consultant’s analyses, projections, and/or estimates. Task 7.Prioritization and Implementation Schedule Consultant shall develop a draft prioritization of the various improvements and strategies for review and comment by City. Consultant shall develop a brief narrative discussion summarizing the rationale for the prioritization. Consultant shall submit to City the draft prioritization content for City’s review and comment. Consultant shall revise the prioritization per City’s review. Based on input from City staff regarding the level of annual expenditure the City deems suitable, Consultant shall develop a draft schedule presenting the time horizon over which the EWF improvements and strategies would be implemented. City shall review the implementation schedule and provide direction to Consultant regarding revisions. Consultant shall revise the schedule to form the final implementation schedule. pg 11 Task 8.Facility Management and Decommissioning Plan Consultant shall incorporate the results and work products from Task 1 through 7 into a combined Facility Management and Decommissioning Plan document. The work products associated with results of Task 2 through 7 The Plan document shall be comprised of narrative, tabular, and marked-up drawings. Some content developed by Consultant shall be included as one or more appendices, as applicable, and other content not developed by Consultant shall be included as one or more appendices. This configuration shall be subject to review and approval by City. Consultant shall prepare a single, combined and complete draft of the Facility Management and Decommissioning Plan and submit to City for City’s review and comment. Consultant shall revise, update, and finalize the Facility Management and Decommissioning Plan based on City’s review comments. Task 9.Project Management Consultant’s project manager shall manage Consultant’s project team, task leads, overall execution of the project, and accurate accounting of the project budget. Consultant’s project manager shall work with Consultant’s project accountant to prepare and submit invoices on a monthly basis along with a monthly project status memo addressing and describing work covered by the invoice. Any significant project budget or accounting issues shall be addressed in the monthly status memo for City’s review and consideration. Consultant shall prepare all of Consultant’s internal, standard, required work-execution, quality control, health and safety, and budget control work products necessary to effectively execute the work. The scope and budget for this task includes time for Consultant’s project manager to communicate regularly by phone and email with City’s project manager to provide continual status updates and coordination throughout the project. No formal documentation of the content and results of these meetings shall be prepared. Consultant shall invoice for services rendered on a monthly basis or less frequently, if warranted by the pace of work. Task 10.Technical Assistance/Directed Services This task enables City to direct, at its discretion, Consultant to undertake planning, engineering, and/or other technical support to address unforeseen issues which may develop at the EWF. As individual needs for planning, engineering, or other technical support arises, City and Consultant shall negotiate the scope of work and fee and formalize it in a Directed Services work order. pg 12 UTILITY ADVISORY COMMITTEE MEMO Date: 7/9/2019 To: Utility Advisory Committee From: Jason Hart,Deputy Director of Water and Wastewater Subject: Follow-up to Wastewater Utility Port Angeles Municipal Code Summary:The purpose of this memo is to receive support for updating aseveral sectionsof the City’s municipal code related to the chromium limit in the City Wastewater Utility Municipal Code.Updates to all other local limits will be delayed while the City gathers information and analyzes the results. These changes will not increase sewer utility rates. Funding:N/A- little or no impact on revenues or costs to the City. Recommendation:Staff requests that the UAC forward a favorable recommendation to City Council to adopt the following updated municipal code:13.06.045, subsectionsA (chromium only),B,& D. Background / Analysis:Update chapter 13.06.045 of the Port Angeles Municipal Code (PAMC) to reflect the following changes: Subsection A: Chromium limit:The City’slocal limit for chromium (42.2 mg/L) is higher than Washington’s Dangerous Waste (DW) threshold (5.0 mg/L, Ch. 173-303-090 WAC); these changes decreasethe City’s chromium limit to below Washington’s DW threshold. Subsection B:allows the imposition of equivalent mass-based limits in lieu ofconcentration-based limits, as in PAMC 13.06.044. Subsection D:amends a typographical error (missing quotation mark). Other limits- As recommended by the WashingtonDepartment of Ecology,the City will defer updating the rest of the Local Limits table for one yearwhile: additional sampling data is collected, industrial flowsare recalculated, and adjustments to the DOE worksheet’s default settings are investigated. This will allow for data validation to ensure the table accurately represents the utility’s customers and treatment system. Discharge violations- Several questions were raised at the June 11, 2019 UAC meeting regarding the impact of pretreatment program violations on City businesses. The Cityusesaguide to ensure a consistent response to all discharge violations. The guide’s objective is to assist voluntary compliance by using an incremental range of enforcement responses, starting with warning calls and notices, progressing to administrative orders, hearings, fines, and ultimately service disconnection. Since 2013 the Cityhas been able to work with permittees to restore compliance without issuing fines. Funding Overview:N/A- little or no impact on revenues or costs to the City. pg 13 CHAPTER 13.06 - INDUSTRIAL WASTEWATER PRETREATMENT ……… 13.06.045 - Local limits. A. The City has established local limits pursuant to 40 CFR 403.5(c). These limitations are "pretreatment standards" and are enforceable in wastewater discharge permits. The pollutant limits are established to protect against pass through and interferenceand reflect the application of reasonable treatment technology. No person shall discharge wastewater in excess of the following local limits. Local Limit Pollutant (mg/L) Chromium 42.2 4.90 B. The limits apply at the point where the wastewater is discharged to the POTW. All concentrations for metallic substances are for total metal unless indicated otherwise. The Director may impose equivalent massbasedlimits in addition toa, or in lieu of,concentration based limits. D. Users shall be subject to "instantaneous limits" (as determined by a grab sample) of equal to twice the "local limit” concentration for any pollutant for which a composite sample is required in a permit. This provision is inapplicable to Users without permits, or withoutthe permit requirement to collect a composite sample for the analyte in question. ……….. pg 14 UTILITY ADVISORY COMMITTEE MEMO Date: July 9, 2019 To: Utility Advisory Committee From: Gregg King,Power Resource Manager Subject: Morse Creek FERC License Surrender Update Summary:On August 18, 2015 the City Council declared the Morse Creek Hydroelectric Project surplus to the City’s needs. Since then, the City has been working through the lengthy process of removing the project from contracts and surrendering licenses from federal agencies. Funding:Minor restoration required by FERC and DOE is funded within the existing operating budget. Recommendation:Information only. Background / Analysis:On August 18, 2015 the City Council declared the Morse Creek hydrogenation project surplus due to the project requiring expensive repairs and being uneconomical to operate. In 2016 the City started the process of decommissioning the project by removing the project from Bonneville Power Administration’s (BPA’s) list of resources. Timeline: May 31, 2017 the City requested a surrender of its Federal Energy Regulatory Commission (FERC) hydrogenation license. April 13, 2018 Clallam PUD filed a claim to intervene in the FERC request citing an interest in the water intake structure and requested a dam safety inspection. September 12, 2018 conducted a dam safety inspection and found the structure stable and satisfactory. November 29, 2018 FERC approvedthe license surrender. December 31, 2018 Clallam PUD requested a rehearing claiming the dam safety inspection was inadequate. April 18, 2019 FERC denied the request for a rehearing. July 2, 2019 - The City issued a Request for Proposal (RFP) for bids to purchase the Power House generating equipment including the turbine, generator, switchgear, and controllers. rd o Bids are due July 3 at 4:00 pm. o When the equipment is sold and removed the City will finish the decommissioning by plugging the penstock and removing access into the Power House structure as well as turning off electrical power. Funding Overview: Minor restoration required by FERC and DOE funded by existing operating budget. pg 15