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HomeMy WebLinkAboutMINUTES Utilities Committee 2007-08-16RECORD OF PROCEEDINGS Town of Estes Park,Larimer County,Colorado,August 16,2007. Minutes of a Regular meeting of the UTILITIES COMMITTEE of the Town of Estes Park,Larimer County,Colorado.Meeting held in the Town Hall in said Town of Estes Park on the 16th day of August 2007. Committee:Chairman Homeier,Trustees Newsom and Pinkham Attending:All Also Attending:Administrator Repola,Deputy Administrator Halburnt, Utilities Director Goehring,Finance Director McFarland, Superintendent Mahany,Deputy Town Clerk Deats Absent:None Chairman Homeler called the meeting to order at 8:00 a.m. PUBLIC COMMENT Michael Dzik,Sustainable Mountain Living (SML)Group,read a statement from fellow SML member,Tom Street,indicating that the minutes from the July Utilities Committee meeting did not reflect comments made by Utility Director Goehring in regard to net metering.The Sustainable Mountain Living Group made a presentation at the July meeting,after which Dir.Goehring stated that the Utilities Department would come back to Committee in either September or October with a more complete report addressing net metering,credits,and incentives.Chairman Homeier acknowledged that the Town realizes that the SML Group is eager to pursue this topic and that information regarding net metering credits and incentives will need to be studied due to their budgetary implications. LIGHT &POWER DEPARTMENT BUCKET TRUCK REPLACEMENT (VEHICLE 93325A)—REQUEST APPROVAL. The 2007 Light &Power Department budget includes $260,000 for the replacement of Bucket Truck 93325A,a 1996 International 4900 Series 4x2 truck,equipped with a bucket aerial device which is used by the line crew for aerial line and transformer repairs.The vehicle is 11 years old with 7,850 hours and 67,540 miles.(Replacement Type 13 Policy — 8,500-9,000 hours or 12 years;this vehicle is not included in the replacement fund.)The Light &Power Department requests the purchase of a 4x4 vehicle with a similar aerial device.The choice of aerial devices is limited by the storage building door height of 12’ and the taller truck chassis due to Tier Ill emissions.Bids were solicited with the following results: Altec Industries —Denver,Colorado/St.Joseph,Missouri Meets specification (Height 1 i’ll”) 2007 International 7400-4x4 w/Altec AM855 Series Aerial Bucket $226,451 Trade-in:Equipment #93325A $15,000 Bid Price:$211,451 Terex Utilities —Denver,Colorado/Watertown,South Dakota Vehicle did not meet specifications (Height 12’3”) 2007 International 7400-4x4 w/Hi-Ranger HRX55 Series Aerial Bucket $221,017 Trade-in:Equipment #93325A $15,000 Bid Price:$206,017 Versalift Utilities —Colorado Springs,Colorado/Waco,Texas DECLINED TO BID RECORD OF PROCEEDINGS Utilities Committee —August 16,2007-Page 3 Staff requests approval to accept the Water Utility Financial Plan,dated March 2007,by HDR Engineering,and recommends increasing the water rates by a 5.6%each year for 2008,2009,and 2010;with an update to the Water Utility Financial Plan in 2010 and a reevaluation and recalculation of any additional rate increases. The Committee discussed the financial plans for both utilities,noting that they are similar with the differences being the capital projects involved.Dir.Goehring indicated that public hearings will be held on October 9th for Water and October 23rd for Light & Power to comply with requirements for notification of rate increases to utility customers and allow for public input on the mailer.The Committee requested the rate increases for both utilities be included as action items on the Town Board agenda,and that a budget study session related to Utilities be held prior to the October 231c Town Board meeting. Discussion followed and included:transfer of funds from Utilities to the General Fund; reduction of the percentage of this transfer to the General Fund;items expensed to the Utilities Department;budget to reflect the cost of doing business;request for an annual summary of debt service;the monitoring of financial reserves;water accounts have minimum monthly charge with no minimum usage to encourage conservation;water customers have been using less water as a possible result of more second homes in the area. The Committee recommends approval to accept both the Section 3 Light &Power Financial Plan,and the Section 2 Water Utility Financial Plan,compiled by HDR Engineering,dated March 2007,as follows: 1)a recommendation to increase the electric rates by 2.5%each year 2008, 2009,and 2010;with an update of the Light &Power Financial Plan in 2010, and a reassessment and recalculation of any additional rate increases;and 2)a recommendation to increase the water rates by a 5.6%each year for 2008,2009,and 2010;with an update to the Water Utility Financial Plan in 2010 and a reassessment and recalculation of any additional rate increases. REPORTS LIGHT &POWER 1.Financial Reports —Dir.McFarland reviewed the report. WATER 1.Water Financial Reports —Dir.McFarland reviewed the report. The Committee discussed the financial reports including the following topics:budgeting processes,revenue projections,capital projects and bonding,depreciation,sole sourcing as it relates to water plant membrane treatment system;and a timeline for bond market announcements.The Committee requested that Dir.McFarland bring an approximate bond market timeline to the September Utilities Committee meeting. There being no further business,Chairman Homeier adjourned the meeting at 9:04 a.m. a Th ________________________ Cynthia .Deats,Deputy Town Clerk APPROVED E AUG 26 20071 TOWN OF ESTES PARK BOARD OF TRUSTEES