HomeMy WebLinkAboutMINUTES Utilities Committee 2004-02-12RECORD OF PROCEEDINGS
Town of Estes Park,Larimer County,Colorado,February 1 2,2004.
Minutes of a Regular meeting of the UTILITIES COMMITTEE of the
Town of Estes Park,Larimer County,Colorado.Meeting held in the
Municipal Building in said Town of Estes Park on the 1 2th day of
February 2004.
Committee:Chairman Jeffrey-Clark,Trustees Gillette and Newsom
Attending:Chairman Jeffrey-Clark and Trustee Newsom
Also Attending:Town Administrator Widmer,Public Works Director Linnane,
Utilities Supt.Goeh ring,and Deputy Clerk van Deutekom
Absent:Trustee Gillette
Chairman Jeffrey-Clark called the meeting to order at 8:00 a.m.
LIGHT AND POWER DEPT.
Electric Rate Study Scope of Services —Approval Request.
The Light and Power Department implemented rate increases of 6.25%in 2003 and
6.24%in 2004 based on the electric rate study approved by the Town Board in January
2003.
The Light and Power Financial Plan approved by the Town Board in December 2003
recommended continuing retail rate increases of 3.9%from 2005 through 2008.The
continuing rate increases are required to meet the following goals:
1.Eliminate the annual deficit in 2005
2.Maintain a fund balance exceeding $900,000 in 2005 and increasing in
following years
3.Reach an industry standard target of 90 days of Operation &
Maintenance expense plus 2%Fixed Asset ending balance fund reserve
by 2008
4.Fund Capital Improvement Programs from cash.This includes the multi-
million dollar major expansion of Marys Lake Substation anticipated for
2009.
Staff received a Scope of Services from Black &Veatch to perform the 2004 Electric
Rate Study for a negotiated cost $30,000.Director Linnane noted that the 2004 Budget
includes $30,000 for this study.
The Committee recommends approval of the Electric Rate Study Scope of
Services presented by Black &Veatch at a cost of $30,000.
Annual Tree-Trimming Project —Approval Request.
The Light and Power Department began annual tree trimming services for electric line
clearance in 1998.Since implementing this program,outages (momentary and
sustained)have been greatly reduced in the trimmed areas,including the lines in Rocky
Mountain National Park.
Staff received a proposal from Asplundh Tree Expert Co.to perform tree trimming
services at a cost of $82.26/per crew hour,the same cost as the 2002 contract.(The
department did not contract for tree trimming services in 2003 due to budget
constraints).
RECORD OF PROCEEDINGS
Utilities Committee —February 12,2004 -Page 2
The 2004 Budget includes $70,000 for this project.This budgeted amount will provide
funding for approximately five months at the proposed rate listed above.Staff
recommends starting the program in May to allow better vehicle accessibility to the
electric lines.
The Committee recommends that the 2004 tree trimming contract be awarded to
Asplundh Tree Expert Co.at a cost of $82.261 per crew hour not to exceed $70,000.
Policy Revision -Discontinuance of Service —Approval Request.
The Town’s current policy provides for discontinuance of electric service to accounts
that have combined arrears on electric and water service equal to or exceeding $65.00
for 30 days past the due date.The Town Board adopted the Public Utility Commission
(PUC)of Colorado’s Guidelines for Discontinuance of Electric Service in administering
its own policy.
Staff from both Light and Power and Finance Departments met to discuss revision of
the Town’s Discontinuance Policy and presented the following recommendations:
1.Increase the normal and after-hours disconnect/reconnect charge to more
accurately reflect current costs and discourage delinquent payment.
2.Replace the two-tier residential deposit with $100 charge applicable to all
residential accounts.Reduce the term of deposit retention to one year for
residential accounts and two years for commercial accounts.Provide a simpler
deposit policy that is user-friendly.
3.Implement a monthly late charge of 1.5%for amounts 30 days in arrears.This
late charge amount is a common industry standard.
4.Replace door hangers with telephone notification.
Staff explained that the Discontinuation Notice mailed to customers provides phone
numbers to local agencies that offer assistance to individuals experiencing financial
hardships (i.e.,Crossroads,Salvation Army,etc.).
The Committee recommends adoption of Discontinuance of Service Policy
changes 14 listed above.These changes would take effect April 1,2004,allowing
ample time for customer notification.
Reports
>Monthly Financial Report.The Light and Power Year-End Financial Reports and
associated graphs were reviewed.
)Misc.Projects Update.Director Linnane presented a summation of departmental
projects and Purchased Power Rider Table.
>Gem Lake Trailhead Pole Fire.A Porcelain conductor failed causing a minor fire
on the pole.The pole has been replaced.
WATER DEPT.
Estes Valley Recreation and Park District (EVRPD)Request to Lease 75 Acre Feet
(a.fj of Town-Owned Water Rights —Approval Request.
In 2003,EVRPD and the Park R-3 School District requested and received 135 a.f.of
Town-leased CBT water rights.Staff recently received another request from EVRPD
and the School District to lease an additional 75 a.f.in 2004.The following 2004
projections involve water tights use,not actual water use.
•The 2004 water rights available to the Town are projected at 1403 a.f.
•The 2004 water rights use is projected at 832 a.f.
•The 2004 water rights surplus is projected at 486 a.f.This amount has taken
into account the EVRPD 75 a.f.lease request,as well as the existing lease
agreements (85 a.f.total).
RECORD OF PROCEEDINGS
Utilities Committee —February 12,2004 -Page 3
An intergovernmental agreement (similar to previous years)would be prepared by Town
Attorney White and signed by all parties.The lease would be contingent upon available
water supplies and made part of the agreement.Revenue from the lease would be
$3,750 (75 a.f.at $50/foot).
The Committee recommends approval of the EVRPDISch00I District request to
lease 75 a.f.of Town-owned water rights at $501a.f.,as outlined above.
Water Shop Retaining Wall Project —Approval Request.
Director Linnane reported that annual spring runoff causes embankment loss along the
north property line at the Water Shop.Cornerstone Engineering submitted a Scope for
Design and Construction Management at a cost of $5,132 for a concrete retaining wall
project that will stabilize the existing embankment.The 2004 Budget includes $60,500
for this project ($3,500 for engineering and $57,000 for construction).
Staff will return to Committee with construction bids at the April meeting.Due to the
relatively small size of the project,a longer construction period of 90 days will be
included in the specs;this may attract more bidders.
The Committee recommends approval of the $5,132 Cornerstone Engineering
Scope for Design and Construction Management of the retaining wall project as
presented.
Water System Vulnerability Assessment Scope of Services —Approval Request.
Federal regulations mandate that all public water systems serving between 3,300 and
50,000 people complete a Vulnerability Assessment and develop an Emergency
Response Plan by December 31,2004.All aspects of the system,including computer
system security and physical security of the water plants are to be evaluated.
Cost summations were received from the following:
Versar.Inc.
Vulnerability Assessment $14,800
Emergency Response Plan $5,000
Total:$19,800
Pinkerton Consulting and Investigation Services
Vulnerability Assessment &Emergency
Response Plan $9,900
Total cost:$9,900
The 2004 Budget includes $25,000 for this project.Concluding all discussion regarding
federal mandates and funding reimbursement,the Committee recommends approval
to proceed with the Vulnerability Assessment and Emergency Response Plan
from Pinkerton Consulting and Investigation Services at a cost of $9,900.
Water Shop Remodel Project —Approval Request.
Director Linnane reported that due to increased staffing space and phone/computer
access requirements,the budgeted Water Shop remodel was changed from a one-bay
to a two bay addition.The existing office space available at the Water Shop is 275
square feet.The new office addition will consist of four offices and a common entryway
for public access for a total of 843 square feet.The remodel of existing staffing area will
create a more secure environment for the SCADA system by incorporating it into an
employee-only staff area,which can be removed from public access.
RECORD OF PROCEEDINGS
Utilities Committee —February 12,2004 -Page 4
O’Reilly Construction presented the following bid for the new office additions and
remodel of existing space for a staff room area:
Construction (O’Reilly)$76,000
Performance Bond (Town estimate)$2,500
Total cost $78,500
The 2004 Budget includes $60,000 for this project.Additional funds are available from
the Vulnerability Assessment and Emergency Response Plan budget excess ($16,000)
and Water Shop Retaining Wall budget excess ($2,500).
The Committee recommends approval of the Water Shop Addition and Remodel
Project by O’Reilly Construction at a cost of $78,500,with the $18,500 deficiency
funded from the Vulnerability Assessment and Emergency Response Plan and
Water Shop Retaining Wall budget excesses outlined above.
Water Tap System Development Fee Study Scope of Services —Approval
Request.
Director Linnane explained that the 2004 Budget Executive Summary includes the
Water Tap System Development Fee Study Scope of Services,but the actual budget
was printed without this project being included.
Per industry standards,the Water Department tap fee is structured to include two fees:
a Water Rights Fee (WRF)and a System Development Fee (SDF).The Town’s current
tap fee is approximately $7,200,which is low compared to tap fees in other Front Range
communities.Most water districts and municipalities charge in excess of $15,000 for
single-family residence (SFR)water taps.
Director Linnane explained that the System Development Fee portion has not changed
in over 15 years.Therefore,staff requested Black &Veatch provide a Scope of
Services to study the SDF.The existing single-family residence SDF is approximately
$2,000.It does not reflect current system costs.The SDF is integral to the funding of
the larger capital improvement projects,such as:
>The Marys Lake Water Plant
>The Marys Lake Raw Water Pump Project
>The annual Water Main Replacement Project (Loop)
>The three major Glacier Plant rehabilitation projects
>The Glacier Plant 1-million gallon tank
>Replacement of the 3-mile long Fall River Road 12-inch water distribution line
(see note)
>The Fall River Corridor High Zone Tank and distribution line
>The $5-million major expansion of the Marys Lake Water Plant,planned for
the year 2009
The Black &Veatch scope will study and make a recommendation for all of the tap fee
classifications:SFR,multi-family,Accommodations,Commercial Accommodations,and
Commercial.
The cost of the SDF Scope of Services from Black &Veatch is $15,000.The project is
included in the Executive Summary of the 2004 Budget.The Water Department Fund
Balance can accommodate the project.If needed,the budget could be supplemented
during the fall budget process.
The Committee recommends approval of the Black &Veatch SDF Scope of
Services at a cost of $15,000.
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RECORD OF PROCEEDINGS
Utilities Committee —February 12,2004 -Page 5
Reports
>Miscellaneous Proects Update.Director Linnane presented a summation of
departmental projects.
>Monthly Financial Report —Water.The Water Year-End Financial Reports were
reviewed.
>The snow pack is currently at 80%of normal levels.
There being no further business,Chairman Jeffrey-Clark adjourned the meeting at 9:30
a.m.
Rebecca van Deutekom,CMC,Deputy Town Clerk
APPROVED
F FEB 24 2004 j
TOWN OF ESTES PARK
BOARD OF TRUSTEES