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HomeMy WebLinkAboutMINUTES Light and Power Committee 1992-08-20n BRADFORD PUBLISHINGCO.RECORD OF PROCEEDINGS Light and Power Committee August 20,1992 Committee:Chairman,Aldrich,Trustees Hix and Dekker Attending:All Also Attending:Town Administrator Kiaphake,Assistant Town Administrator Widmer,Light and Power Director Matzke,Finance Director Monte Vavra,Clerk O’Connor,and Deputy Clerk Kuehi Absent:None Chairman Aldrich called the meeting to order at 9:30 a.m. GENERMJ FUND TRANSFER -DISCUSSION Staff has studied the Light and Power Fund Transfer to the General Fund with the goal of establishing a formula for the transfer.It was concluded that there is no best formula;each utility needs to be considered separately.Although past practices are not out of line with other Colorado communities,the town should establish a formula—based transfer in order to eliminate the uncertainty of year—to—year budgeting and planning.The recommendations are as follows: 1.Raise the Franchise Fee from 2%to 3%of urban revenue for consistency with other franchised utilities in the town; 2.Adopt the following Transfer Formula:The General Fund Transfer shall equal 9.5%of Total Electric Sales.This formula is intended to be applicable for at least the next five years;however,it is important to maintain some flexibility in its use. It is recommended this be done by acknowledging the formula may be modified in the case of unusual or unforeseen financial conditions. Light and Power Director Matzke reviewed the Cash Flow Analysis in relation to revenues and expenses.The recommended formula bases the transfer to the General Fund on electric sales.Transfer sales have grown 10%each year,but will start to level off in 1993.One major goal is to maintain a Light and Power Fund Balance above one million dollars.The Cash Flow Analysis shows how this can be accomplished.However,this projection indicates a shortage of capital starting in the year 1994,indicating a need to raise revenues or lower expenses.A five—year capital improvement plan could be available in late September or early October.Estes Park cannot grow fast enough in sales to cover costs;however,a rate increase should be considered only as a last resort.The Committee noted that the transfer to the General Fund represents a return on investment for citizens of Estes Park who invested in the utility. The recommended change addresses a fund balance that will release a reserve for Light and Power to work with and retain a return on investment without an immediate rate increase.The Committee recommends approval of the formula—based transfer and franchise fee of 3%.The Committee thanked the Staff for their efforts. PURCHASE OF ALL TERRAIN VEHICLE -AUTHORIZATION TO PURCHASE The Department included $6,000 in the 1992 budget for purchase of an all terrain vehicle to allow patrolling of lines which are now only accessible by foot and to provide sufficient capacity to transport transformers and heavy equipment to remote areas which would reduce response time.Two bids were obtained: BRADFORD PUBLISHING CO.RECORD OF PROCEEDINGS ‘Iight and Power Committee -August 20,1992 -Page 2 Turf and Trail Equipment,Lakewood $5,044 Loveland Kawasaki $5,259 The Committee recommends the low bid in the amount of $5,044 be accepted with Staff to verify if the bid includes a roll bar. SCADA SYSTEM IMPROVEMENTS -AUTHORIZATION TO PURCHASE The Department budgeted $30,000 in 1992 to obtain additional SCADA system equipment in order to place in service the equipment previously purchased.These items include a communication circuit, $3,000;uninterruptible power supply,$1,800;disk drive for master station,$3,718;and hardware to be installed in substations, $5,000;for a total of $13,518.The Committee recommends approval of $13,518 in expenditures to bring the SCADA system equipment on line. CHRISTMAS SCENE RESTORATION Linda Vogel,Graphic Designs West,submitted a bid of $6,543.72 to restore the following Buel Porter Christmas Scenes: Shepherd (minor repair)$90.00 Santa and Helicopter $624.87 Santa and Reindeer $5,828.85 This bid includes structural repair as well as repainting and restoring detail.The Committee recommends approval that all three scenes be refurbished at a cost not to exceed $6,543.72. REPORTS Financial Report:The Committee received the Monthly Financial Reports for July. Fall River Hydro Plant --Update:The Platte River Power Authority was contacted regarding the request for a third party to operate the plant.Following their written approval,a request for proposals to renovate this facility was mailed to four consultants. The Committee approved the offer from Frank Nix to volunteer his expertise in evaluating these proposals. Project Updates:Work order activity stands at 177 this year compared to 100 last year.The American Honda Education School is starting construction of an entrance access road,including line extension,which will be at their cost. Platte River Power Authority:Public Service Company sales have decreased due to the Colorado—Ute bankruptcy settlement. PRPA offered an early retirement bonus and seven employees accepted the offer.These positions will not be replaced in order to downsize and restructure the organization. An advantage of being a PRPA member is the ability to pooi resources to perform studies,such as the one conducted on the electro magnetic fields.Their study recognized that there is not a scientific basis to conclude that electro magnetic field exposure causes any adverse health risks but research will continue to be monitored.PRPA is available to provide technical assistance for customers with questions concerning EMF. The EPIC Award will be bestowed on September 26th in Fort Collins. The concept of this award may change from being given to those involved with public power districts to a scholarship awarded to teachers and students. 0.0 RECORD OF PROCEEDINGS Light and Power Committee -August 20,1992 -Page 3 Chairman Aldrich commented on a Denver Post article regarding a Governor’s Award given to Trapper Coal Mine for their part in restoring sites back to their natural state after mining. U.S.West:U.S.West is addressing concerns that have been raised regarding phone service.Major construction to install more trunk lines is needed to solve the problem. The Committee entered into Executive Session to discuss positions relative to matters that may be subject to negotiations.The Chairman reconvened the meeting at 11:20 a.m. PUBLIC SERVICE CO.FRANCHISE AGREEMENT -AUTHORIZATION TO PROCEED The Committee recommends Staff pursue negotiations of a new franchise agreement with Public Service,as the apparent rate of return for investment does not justify pursuing purchase of the local gas system at this time. There being no further business,Chairman Aldrich adjourned the meeting at 11:25 a.m. V. Tina Kuelil,Deputy Town Clerk rv7 r 4 AUG25 J . b U;Ti’hj