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Home My WebLink AboutMINUTES Light and Power Committee 1992-09-10( RECORD OF PROCEEDINGS Light and Power Committee September 10,1992 Committee:Chairman Aldrich,Trustees Hix and Dekker Attending:Chairman Aldrich,Trustee Dekker Also Attending:Town Administrator Kiaphake,Assistant Town Administrator Widmer,Light and Power Director Matzke,Town Attorney White,Clerk O’Connor Absent:Trustee Hix Chairman Aldrich called the meeting to order at 10:05 A.M. FALL RIVER HYDRO PLANT -AUTHORIZATION TO NEGOTIATE CONTRACT FOR SERVICES. The Department requested proposals to renovate and restore the Fall River Hydro Plant from four (4)firms.Jacobson/Coleman submitted the only qualified proposal.Director Matzke reviewed the proposal whereby Mr.Jacobson proposes entering into an interim lease agreement with the Town during which time he proposes to obtain a FERC ruling on licensing requirements and determine the extent of repairs needed to place the plant in service.Upon completion of the proposed study,Mr.Jacobson proposes to enter into a final agreement to operate the plant and share profits with the Town. Restoration cost estimates are $187,500;estimated annual operating costs are $63,000;and with estimated annual net revenues totalling $12,390.Following discussion pertaining to the required minimum flow level and Fall River Water Treatment Plant operation,the Committee recommends staff be authorized to negotiate a Contract and Interim Agreement with Jacobson/Coleman,returning to the Committee for further review.Said documents to address: 1.Term of agreement 2.Lease payment to the Town during the interim 3.Availability of the property and facilities to the Town during the interim. All the aforementioned documents to be reviewed by Town Attorney White prior to submittal to the Committee.The Committee expressed their appreciation to Mike Mangelsen for his effort on this project.The Committee urged staff to contact “Woodward Governor” regarding a potential contribution to the project. PUBLIC SERVICE COMPANY (PSC0)NATURAL GAS FRANCHISE AGREEMENT - APPROVAL. Staff presented a draft franchise agreement to operate a natural gas distribution system between PSC0 and the Town.The previous agreement expired August 13,1992.Town Attorney White thoroughly reviewed negotiated changes to the Agreement,including the following major amendments: 1.Reducing the term from 25 years to 20 years. 2.Increasing the franchise fee from 2%to 3”to the Town. 3.The Town would have the right of first refusal to purchase the system should PSCo elect to market the gas system. Tim Kawakami,Loveland District Manager and Rich Stengard/PSCo representatives,reviewed their extension policy advising there is no limit to extending gas service in the community;however,as the customer bears the costs of such extensions,availability may be limited in certain areas. 0 RECORD OF PROCEEDINGS Light and Power Committee -September 10,1992 -Page 2 Director Matzke reviewed the proposed schedule for adoption of the new agreement which necessitates an ordinance and public notice: •October Committee Meeting -Review final proposed ordinance granting the franchise. •Town Board,October 13 —First reading of proposed ordinance.Public comment is allowed;no board action required. •Town Board,November 10 —Second reading of proposed ordinance.Public comment allowed;board will vote on adoption of the ordinance. Following passage by the Town Board and acceptance by PSC0,PSC0 must file an application for Certificate of Public Convenience and Necessity with the Public Utilities Commission for final approval of the franchise agreement.PSCo will pay for all publishing costs and attorney’s fees incurred by the Town in granting of this franchise application. Staff noted that the franchise fee will made monthly beginning January,1993 in lieu of yearly. The Committee expressed their appreciation to staff,Town Attorney White and PSC0 representatives for their cooperative efforts and speed in negotiating an agreement,recommending approval,as to form,of the draft agreement,authorizing staff to proceed with this project. OCTOBER MEETING DATE -RESCHEDULE. Due to scheduling conflicts,the October Committee meeting will be held October 1 at 8:30 A.M.in lieu of October 8th. REPORTS. The Committee reviewed graphs for purchase power—demand,purchase power—energy,and accumulated year—to—date purchase power—energy by month. Project Updates.Year-to-date work orders total 193 vs.11$last year.The cable for the main extension for the Honda School has been ordered.Estimated cost for the cable is $35,000 which will borne by Honda.Staff reported that the school facility will extend natural gas to their site,thus,from an electricity standpoint,they will add to the Town’s baseload without aggravating the peak.The Hand-held meter reading equipment has been received.The manufacturer will begin training October 5. The 5-Year Capital Improvement Plan will be presented in October. Ass’t.Town Administrator Widmer presented the Platte River Power Authority (PRPA)Report:financial analysis relating to bond refinancing,benclimarking project,yearly statistical report,and the EPPIC Award Celebration. There being no further business,Chairman Aldrich adjourned the meeting at 11:14 A.M. 2 Vickie O’Connor,CMC,Town Clerk SEP%% rj :