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HomeMy WebLinkAboutMINUTES Light and Power Committee 1986-10-080 0 RECORD OF PROCEEDINGS YLight and Power Committee October 8,1986 Committee:Chairman Laing,Trustees Brown and Habecker Attending:All Also Attending:Mayor Dannels,Town Administrator Hill,Light and Power Director Dekker,Finance Officer Vavra,Mr.Bill Harris/North American Hydro, Clerk O’Connor Absent:None 1987 BUDGET -REVIEW: The Committee reviewed and discussed the first draft of the 1987 Budget. OLYMPUS DAM HYDRO PROJECT FEASIBILITY REPORT -REVIEW: Mr.Bill Harris/North American Hydro presented the Feasibility Report for the Olympus Dam Hydro Project.The report compared the benefits and costs of the different hydropower development alternatives at the Olympus Dam using a life-cycle approach. Certain basic assumptions,which were required in a benefit/cost analysis,were outlined prior to describing the results of the economic analysis.The most likely disposition of the power available from the Olympus Dam hydro development indicated three basic options:(1)the power could be used within the Town of Estes Park’s electric distribution system;(2)the power could be sold directly to Platte River Power Authority;and (3)the power could be “wheeled”across Western Area Power Administration’s electric transmission system for ultimate delivery and sale to the Public Service Company of Colorado (P.S.Co.).Six (6) development alternatives were proposed as follows: Alternative A -One Fixed-Flow Submersible Unit Initial Cost Estimate $191,000 Average Annual Gross Income 18,800 Alternative B -Two Fixed-Flow Vertical Units Initial Cost Estimate $312,000 Average Annual Gross Income 23,400 Alternative C -Two Single-Adjustable Vertical Units Initial Cost Estimate $382,000 Average Annual Gross Income 28,200 Alternative D -One Kaplan Unit Initial Cost Estimate $313,000 Average Annual Gross Income 30,000 Alternative E -One Crossflow Unit Initial Cost Estimate $260,000 Average Annual Gross Income 24,000 Alternative F -One Refurbished Vertical Francis Runner Initial Cost Estimate $267,000 Average Annual Gross Income 25,200 Results of the computations which are based upon generated power being sold to P.S.Co.,indicate Alternatives D or F would produce the best benefit cost ratios.In evaluating the benefits and costs,the Committee stated they had no objection to selling the power to Public Service Company.The Town would incur a 0 0 Light and Power Committee -October 8,1986 —Page two RECORD OF PROCEEDINGS higher expense to retain and use the power than it would be to sell it to another utility. Director Dekker advised various grants are offered through WAPA and DEED for innovative projects.The Olympus Dam Project may qualify.Following discussion,the Committee recommends (1) North American Hydro submit their costs to “fine-tune”the study; (2)North American Hydro submit photographs of the proposed equipment;and (3)Director Dekker investigate and obtain information concerning the possibility of obtaining grants through WAPA and DEED,returning to the Committee for further review. Regarding the Cascade Diversion Structure Project,Mr.Harris reported North American Hydro is still interested in pursuing a lease agreement.North American Hydro will submit a revised lease for consideration. MARYS LAKE SUBSTATION CONSTRUCTION CONTRACT -REVIEW OF BIDS: Two bid proposals were submitted for Contract #3 —General Construction for the Marys Lake Substation: Leonard L.Graton Construction $34,130.00 Electric Substation Specialists Corp $49,000.00 Light and Power Director Dekker advised the contract documents pertaining to Graton Construction had been reviewed and approved by Town Attorney White.The Committee recommends accepting the low bid submitted by Graton Construction in the amount of $34,130.00. PLATTE RIVER POWER AUTHORITY -AUTHORIZATION FOR EXECUTION OF DOCUMENTS: The Committee reviewed Exhibit “A”to the Transmission Facilities Agreement between PRPA and the Town.The exhibit described leased facilities to be transferred to PRPA plus a table indicat ing the Town’s responsibilities in the cost and maintenance of the Estes and Marys Lake Substation Sites.The Committee recom mends the Mayor be authorized to execute Exhibit “A”to the Transmission Facilities. Attachment “C”to the Power Contract between PRPA and Town indicated the delivery points by PRPA to the Estes and Marys Lake Substations,underfrequency load interruption and the Town’s cost and maintenance responsibilities for both substation sites.The Committee recommends the Mayor be authorized to execute Attach ment “C”to the Power Contract. REPORTS: The foundation has been constructed for the new transformer located at the Marys Lake Substation. 1986 Electric sales are 3/4 of 1%ahead of 1985.Sales for the month of September have increased 7%over that of September, 1985. Finance Officer Vavra reported an estimate was obtained from the NCR Corporation for the surge protection equipment for all Town-owned equipment in the Municipal Building.The estimate was $17,000 which did not include additional wiring to each location. The Committee recommends Finance Officer Vavra investigate other sources for such equipment,returning to the Committee for further considtion. fl±e being flo further business,the meeting adjourned. OCT144f 7). Vickje O’Connor,Town Clerk . -.-n.p—ri