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Home My WebLink AboutUAC 11142023 Agenda Packet NOVEMBER 14, 2023 City of Port Angeles UTILITY ADVISORY COMMITTEE Agenda This meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City staff have the option to attend the meeting in person, in Council chambers at City Hall th located at 321 East 5 Street, Port Angeles, or remotely via telephone or video link. The Chair may determine the order of business for a particular UAC meeting. The agenda should be arranged to best serve the needs and/or convenience of the UAC and the public. The Chair will determine time of break. Hearing devices are available for those needing assistance. The items of business for regular UAC meetings may include the following: A.Call to Order – Regular Meeting at 3:00 p.m. B.Public Comment The Utility Advisory Committee (UAC) desires to allow the opportunity for Public Comment. However, the business of the City must proceed in an orderly and timely manner. Visit https://www.cityofpa.us/Live-Virtual- Meetings to learn how to participate during public comment and or watch the meeting live. Written public comments can be submitted to: gking@cityofpa.us, comments will not be read aloud but will be made part of the record. Comments should be received by 10:00 a.m. Tuesday, November 14, 2023. For audio only please call: 1-844-992-4726 Use access code: 2552 125 8034 Password: YDdpxkMf222 (93379563 from phones and video systems) Once connected, press *3 to raise your virtual hand if you wish to make a comment or public testimony. You will be notified when it is your turn to speak. This access code is good for the November 14, 2023 meeting only. If you are joining in through the WebEx link: https://cityofpa.webex.com/cityofpa/j.php?MTID=m3172364e24773821020c63b25ee65626 and wish to make a comment or public testimony, please use the “raise your hand” feature in WebEx. You will be notified when it is your turn to speak. Members of the public may address the UAC at the beginning of any Regular Meeting under "Public Comment." The UAC desires to allow the opportunity for Public Comment. However, the business of the City must proceed in an orderly, timely manner. At any time, the presiding officer, in the presiding officer's sole discretion, may set such reasonable limits as are necessary to prevent disruption of other necessary business. At its most restrictive, Public Comment shall be limited to a total of 15 minutes for the Public Comment period. 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. November 14, 2023 Port Angeles UAC Meeting Page 1 Individuals who are residents of the City or own businesses within the City will be called to speak first, with preference given to those who wish to speak to an item on the meeting’s agenda. If time remains, the presiding officer will call other individuals wishing to speak, generally in the order in which they have signed in. If time is available, the presiding officer may call for additional unsigned speakers. Persons speaking shall state their name, whether they reside within the City limits, whether they have any other pertinent connection to the City, and whether they are appearing as the representative of an organization. Excerpts: Council Rules of Procedure Section 12 C. Late Items To be placed on this or future agendas, including any executive session needed during or at the end of the meeting. D. Minutes October 10, 2023 | Approve E.Solid Waste Review/Presentation byMike Healy, Director Public Works and Utilities and Gregg King, Power Resource Manager F. Electric Utility Updates/Presentation by Gregg King, Power Resource Manager BPA Contract update Energy Northwest small nuclear project 2023 North Olympic Peninsula Energy Futures overview City Hall EV charger update G. Various Utility Updates by Mike Healy, Director Public Works and Utilities H. Future UAC TopicsRobust Discussion, Members + Christmas Holiday UAC meeting discussion I. Next Meeting December 12, 2023 Adjournment November 14, 2023Port Angeles UAC Meeting Page 2 UTILITY ADVISORY COMMITTEEMEETING Hybrid Meeting Port Angeles, WA 98362 October10, 2023 3:00 p.m. I.A. Call to Order Chair Mattias Järvegren called the meeting to order at 3:02 pm. B.Roll Call UAC Assigned Councilmembers Present:Mayor Kate Dexter, Councilmember Amy Miller and Councilmember Lindsey Schromen-Wawrin UAC Members Present:Chair Mattias Järvegren, Terry Nishimoto and Richard French (Excused late arrival at 3:07) UAC Members Absent: Laura Dodd. Staff Present: Public Works and Utilities Director Mike Healy, Power Resources Manager Gregg King, City Engineer Jonathan Boehme, Finance Director Sarina Carrizosa, Cost and Capital Accountant MarySue French, Cost Accountant Jason Jones, Systems Network Analyst Daniel Harris, Public Works Management Assistant Jessica Toth, and City Attorney William Bloor. II.Public Comment The public is invited to provide written comments via e-mail prior to the meeting, call- in and via WebEx. There was no public comment. III.Late Items There were no late items. IV.Approval of Minutes Councilmember Miller moved to approve the September 12, 2023, minutes. Mayor Dexter second the motion. Chair Järvegren asked if there was unanimous consent, hearing no opposition, the motioncarried 5-0. V.Cost of Service Studies and 2024-2025 Rates for Electric, Solid Waste, and Stormwater Utilities Finance Director Sarina Carrizosa and Cost and Capital Accountant MarySue French presented the 2024 Cost of Service Analysis for the purpose of utility rate change review and the City’s methodology. City staff reviewed rate changes for the following utilities: electric rate, solid waste collections and transfer station rates and stormwater rates. November 14,2023Port Angeles UAC MeetingPage 3 Electric Utility rates discussed. A $1.7 Million dollar increase or 6.4% increase to electric plans in 2024 include the following: Personnel costs – 10.5% increase includes City Electrician Supplies – 5.6% increase includes BPA payments The Electric Utility phase in approach is continued with an increase in Base rates and a decrease in variable rates. This approach does not have an overall change in rates and is expected to be cost neutral. This was made possible by savings from an approximately $3.0Million credit from BPA in 2023. Solid Waste rates discussed. A 3.8 Million dollar increase or 29.7% increase to solid waste plans in 2024 include the following: Personnel costs 9.8% increase Other services 31.7% increase (including $1.0Million settlement payment) Debt payments 75% increase (including payments to the Water division for the Staff recommendation of a $1.5 Million interfund loan from the water division. Chair Järvegren questioned the $1.5Million settlement payment. Director of Public Works and Utilities Healy explained that the transfer of responsibility between Waste Connections and the City, at the end of their contract, there were monies in dispute which were then settled through litigation. Councilmember Schromen-Wawrin did not agree with the response. Director of Finance Carrizosa clarified further that the settlement was 1.9Million dollars to be paid in four quarters or one half of 1Million dollars paid every six months were the terms of the settlement. Stormwater rates discussed. A $261,000 increase or 8.2% increase to the stormwater plans in 2024 include the following: Personnel costs – 6.8% increase – includes additional utility worker per State Mandates for NPDES requirements. Capital Transfers – 9.1% increase Staff is asking the Utility Advisory Committee to forward a favorable recommendation for the Staff Recommended 2024-2025 Electric, Solid Waste and Stormwater rates to City Council. Discussion followed. Member French asked a general question. Mayor Dexter called a point of order and asked that general questions are held until the COSA discussion was complete. Member French moved to make a favorable recommendation for the Staff recommended 2024-2025 Electric, Solid Waste and Stormwater rates to City Council. Mayor Dexter seconded the motion. Councilmember Schromen-Wawrin responded that the response about the solid waste cost was not adequate. Except for the City Council Members, this committee did not get information during the entire process with Waste Connections and severing the contract with them and with the explanation given, will not vote yes. November 14, 2023Port Angeles UAC Meeting Page 4 Director of Public Works and Utilities Healy suggested that if this committee still has questions regarding the settlement, Staff from the Legal department can give a presentation at the next meeting to further explain. Councilmember Schromen-Wawrin moved to table this motion until the next meeting. Director of Finance Sarina Carrizosa explained there is a 75-day requirement for solid waste rates to take st effect. And if the intent is to make rates effective January 1, 2024, staff would need a 75-day notice to the Utility Transmission Committee (UTC). Mayor Dexter stated that the motion dies for lack of a second. The current motion is whether we are going to vote on this. Further discussion followed. Councilmember Schromen-Wawrin moved to amend the motion to add a recommendation to present the larger context of solid waste costs to City Council and UAC. Mayor Dexter seconded the motion. Chair Järvegren asked if there was unanimous consent; hearing opposition, the motion went to a vote, the motion carried 5-1. Further discussion followed. Councilmember Schromen-Wawrin moved to amend the main motion to include the presentation to JSWAP in addition to Utility Advisory Committee and City Council. Mayor Dexter seconded the motion. Chair Järvegren asked if there was unanimous consent, hearing opposition, the motion went to a vote, the motion carried 5-1. Forward a favorable recommendation for the Staff Recommended 2024 -2025 Electric, Solid Waste and Stormwater rates to City Council and direct staff to provide a presentation about the history of Solid Waste transition of transfer station services to City Council and the Utility Advisory Committee and JSWAP. Chair Järvegren asked if there was unanimous consent in regard to the amended original motion, hearing opposition, the motion went to a vote, the motion carried 5-1. VI. Calendar of Actions & Meetings Update on BPA contract negotiations. Chair Järvegren asked to continue speaking on the additional item Member French brought up earlier. Member French asked for the Water and Wastewater rate presentations. Director of Finance Sarina Carrizosa explained that those COSAs occurred last fall for a two-year period. For 2024, the rates will stay the same. Member French made a general statement about the deer in the City and that no one can do anything about the increase in population. Member French made a general statement about the City streets and many citizens are unsatisfied with th street, I street, and Marine Drive road construction projects. 8 Discussion followed. Councilmember Miller asked Staff to include, for a future meeting, a discussion or presentation on the cost for developers regarding utilities. November 14, 2023Port Angeles UAC Meeting Page 5 VII. Next Meeting Date: November 14, 2023 VIII. Adjournment: 4:12 p.m. ______________________________________ ________________________________________ Chair Mattias Järvegren Jessica Toth, Public Works Management Assistant November 14, 2023Port Angeles UAC Meeting Page 6 E. Solid Waste Review Presentation by Mike Healy, Director Public Works and Utilities Gregg King, Power Resource Manager November 14, 2023Port Angeles UAC Meeting Page 7 SOLID WASTE SOLID WASTE SOLID WASTE CONCLUSION F. Electric Utility Update Presentation by Gregg King, Power Resource Manager BPA Contract update Energy Northwest small nuclear project 2023 North Olympic Peninsula Energy Futures overview City Hall EV charger update November 14, 2023Port Angeles UAC Meeting Page 8 G. Various Utility Updates Presentation by Mike Healy, Director Public Works and Utilities November 14, 2023Port Angeles UAC Meeting Page 9 H. Calendar of Actions and Meetings • 2024 Budget • Cost of Service Studies – Electric, Storm Water, and Solid Waste • Utility Rates – as needed November 14, 2023 Port Angeles UAC Meeting Page 10 Next UAC Meeting December 12, 2023 3:00 –5:00 PM This meeting will be conducted as a hybrid meeting. November 14, 2023 Port Angeles UAC Meeting Page 11