HomeMy WebLinkAboutMINUTES Utilities Committee 2008-06-12-Th
RECORD OF PROCEEDINGS
Town of Estes Park,Larimer County,Colorado,June 1 2,2008.
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 j th day of June 2008.
Committee:Chairman Homeier,Trustees Blackhurst and Ericson
Attending:All
Also Attending:Town Administrator Halburnt,Deputy Town Administrator
Richardson,Utilities Director Goehring,Deputy Town Clerk
Deats
Absent:None
Chairman Homeier called the meeting to order at 8:00 a.m.
PUBLIC COMMENT
None
LIGHT &POWER DEPARTMENT
ORGANIC CONTRACT &POWER SUPPLY AGREEMENT WITH PLATTE RIVER
POWER AUTHORITY.
In the mid 1960s,potential limits on the availability of federal hydropower compelled the
municipalities of Estes Park,Loveland,Longmont,and Fort Collins to create a non-profit
corporation to purchase blocks of energy from the Bureau of Reclamation for resale to
individual member municipalities.The corporation faced limitations,however,because
it was unable to issue tax-exempt bonds to finance capital projects.At the time the
corporation was created,legislation did not permit the municipalities to act jointly,but an
amendment to the Colorado Constitution ratified in 1974,allowed for the establishment
of a power authority,a “separate governmental entity,”with the power to own energy
generation and transmission facilities with investor-owned and cooperative utilities.The
Platte River Power Authority (PRPA)was established in 1975 by the Member
Municipalities (Estes Park,Loveland,Longmont,and Fort Collins)through an Organic
Contract,replacing the previously established non-profit corporation.A stipulation of the
Organic Contract is the establishment of the “Power Supply Contract”between PRPA and
each Member Municipality guaranteeing all power required by the Members is purchased
from PRPA.
Joe Wilson,PRPA General Counsel,explained the need for extending the Organic
Contract and outlined proposed changes which address organizational changes and
update wording contained in the contract to current practice;removing archaic terms and
language.Changes also deal with the ability of directors to conduct and participate in
board meetings by means of electronic teleconferencing,and procedures to follow when a
vacancy exists in the position of General Manager.
Mike DahI,Division Manager-Power Systems Operations,reviewed the proposed changes
to the Power Supply Agreement.The contract obligates PRPA to supply,and Estes Park
to purchase,all power required to operate its electric system with the exception of
grandfathered hydropower.The proposed addition of a De Minimus exception to the all
requirements obligation,will allow Estes Park to generate power for its own use from any
new generation resource up to 1 megawatt or 1%of peak load,whichever is greater,
enabling the Town to utilize renewable resource options such as solar and wind power in
the future.The contract also incorporates the pre-existing facilities agreement,outlining
the responsibilities of PRPA and the Town of Estes Park related to purchasing and
RECORD OF PROCEEDINGS
Utilities Committee —_May-8.-2OO8 -Page 2
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maintaining equipment for the transmission and delivery of power.Mr.Dahi spoke to
redundancy and commended the Town on the design of its distribution system and the
ability for either substation to supply power throughout the system in the event one of the
substations is off-line due to an emergency.
The Committee asked for information related to the PRPA organization and its
background.Mr.Wilson stated that the board of directors has legislative authority to
manage the affairs of PRPA,including establishing rates;that PRPA is a self-regulated
organization with no direct oversight by the Colorado Public Utilities Commission;and
provided a brief history of PRPA.The Committee requested that a memo be prepared
outlining the involvement of former Mayor and Light &Power Director Bob Dekker in the
creation of PRPA.
It has been standard practice to extend the Organic Contract approximately every 10
years ensuring that the term of the contract never falls below 30 years to accommodate
the time frames and terms of financial bonds.The Organic Contract was extended in 1980
and again in 1998 to its current term through 2040.The proposed contract changes have
been reviewed by Town Attorney White,and staff recommends extending the Organic
Contract and the Power Supply Contract with Platte River Power Authority through 2050.
The final document will be taken to the Town Board for approval in late July or August.
REPORTS
LIGHT &POWER
BUDGET
1.Pole Inspection Update —The pole inspection program is designed as a
maintenance system to track the condition of wooden utility poles for employee
safety,liability,and future planning purposes.Typically,poles last 40 years,but
inspectors are finding that poles in this climate are staying in good condition nearly
twice as long as poles in wetter climates.Approximately 2,000 poles have already
been inspected with 40 poles identified for replacement,so far.The poles will be
replaced in-house with wooden poles of similar grade and height.
2.Mary’s Lake Substation Update —Upgrades to the substation being made to
allow for future loads and increased system reliability and redundancy are
underway and progressing as planned.
MISCELLANEOUS
Trustee Ericson requested that staff propose several incentive plans related to citizen
participation in green programs to be reviewed and considered during the budgeting
cycle.
There being no further business,Chairman Homeier adjourned the meeting at 9:12 a.m.
CyifFi A.Deats,Deputy Town Clerk
APPROVED
[:M 1
TOWN OF ESTES PARK
BOARD OF TRUSTEES