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Home My WebLink AboutPACKET Light and Power 1999-03-11TOWN OF ESTES PARK Light and Power Committee AGENDA March 11,1999 8:00 a.m., Board Room 1. Electric Utility Deposit Policy for Short Term Rental Properties 2. Light and Power Revenue Bond Issue Â° Approve Agreement with Financial Advisor Â° Approve Agreement with Bond Attorney 3. 1998-1999 Christmas Decorations Installation Contract Â° Approve Change Order Request 4. Reports A. Platte River Power Authority B. Financial Report C. Project Updates NOTE: The Light and Power Committee reserves the right to consider other appropriate items not available at the time the agenda was prepared. REM Prepared 3/9/1999 TOWN OF ESTES PARK Office Memorandum To: The Honorable Mayor Dekker and Board of Trustees From: Richard E. Matzke 72 20- Date: March 10, 1999 Re: Electric Utility Deposit Policy for Short Term Rental Properties BACKGROUND: In February, the Town Board reaffirmed the definition of Commercial Electric Customers which includes "any dwelling or accommodation unit or units which are rented for a period of less than thirty days during any portion of a calendar year". The Board concluded that short-term rental properties are included in this definition and thus must be billed at commercial electric rates. A question was raised during the February Light and Power Committee meeting concerning the Town's deposit policy and how it would be applied to long term renters of a commercial short term property who place the electric account in their own name. This question was referred to staff for further study. Attached is an excerpt from the Light and Power Department Policy and Procedure Manual describing the deposit policy containing a new paragraph entitled short-term rental deposits. Under the proposed policy, short-term rental properties would be subject to the normal commercial deposit, but individuals who rent these properties for periods exceeding thirty days and place the account in their own name, would be charged the applicable residential deposit. BUDGET/COST: The difference in deposit for a typical residence would be as little as $75 for a typical non-electric home. RECOMMENDATION: The Light and Power Department recommends that the attached short-term rental deposit policy be adopted and included in the Light and Power Department Policy and Procedure Manual. 1-1 c) Types of Deposits: 1) Residential: When an account is established and billed under the residential rates, the deposit amount is set at $185.00 for an all- electric home and at $75.00 for a home that is heated by natural gas, propane, etc. residential deposits will be retained by the Town for a minimum of two years. 2) Commercial: When an account is established and billed under the commercial rates, the deposit will be set at the total of the three highest months' utility bills out of the previous twelve months with a minimum of $150. If the usage of the commercial account differs greatly from the previous account usage, the Town reserves the right to estimate the expected amount of bills based upon other silmilar-type accounts. Commercial deposits will be retained by the Town for a minimum of three years. 3) Short-term Rental Deposits: For those properties that obtain a short-term rental license and are converted to the commercial rate, 00\\Gur the deposit ameunt) will be: a) The owner of the property will be required to provide a commercial deposit as defined above; b) If the property is leased for a period that exceeds 30 days and the utilities are transferred to the renter's name, the renter shall provide a residential deposit as defined above. The property will be charged the commercial rate class for all Town provided utilities. The utility office staff will have the option of waiving a deposit for existing customers that convert their property to a short-term rental based upon payment history. 1-2 Interoffice Memo Date: 03/11/99 To: L&P Committee Rich Widmer, Town Administrator Richard Matike, Director of Ught & Power From: Monte L Vavra, Finance Officer RE: Bonding for the Light & Power Substatjon The 2000 budget antjdpated the Ught & Power Fund will sell $3 million in revenue bonds that will be used to relocate the substation and to pay for other assodated project costs. Plane River Power Authority is participating in this endeavor by fronting much of the cost by contracting with vendors and other contractors. At the project completion in early 2000 Platte River will tum the project over to the Town along with a bill of appredmately $2 million. The L&P Department will have approximately $1 million in related costs in addition to PRPA's. In order to have the cash on hand to pay these costs the Town will need to issue the bonds. The major parties involved in issueing bonds is the Town, the bond attorney, the bond underwriters, possibly a bond insurance company and/or a rating agency. One additional party that l would like involved in this bond transaction is a finandal advisor (FA). The FA's duties would be to help the Town select an underwriter, help in sizing the bond issue, help in guiding to decide to do a competitive bid or a negotiated bond issue, make sure that the bonds a competibve in the market, guide the Town through the insurance and rating process if we decide to do either. In the past the Town has hired Mr. Jim Manire of James-Capital-Advisors-to assist with-the private placement of the Park Entrance Estates SID issue and the refunding of the golf course COP issue in 1998. Mr. Manire is familiar with the Town's operation and would be worldng for us, not the unden.,riter. The fee for James capMal is S5,000 plus any travel and other out-of-pocket expenses and would be paid out of the bond proceeds. A copy of an agreement is attached, and has been reviewed by Greg White. A second party that will.need to be hired is a bond attorney. The Te,m has also been working wjth bjane Barrett frorr, the firm Holme, Roberts and Owen for the last two bond issues. In checking with Greg White he also recommends retaining Diane Barrett as the bond attorney for this transaction. Diane has quoted a fee range of $25,000 to S35,000 depending upon how we structure the financing. Her fee will also be paid from the bond proceeds. This will be a long-term project, starting approximately 6 10 8 weeks prior to the bond sale. At first glance the bonds should be sold either by early November, or wait until after February 2000. Recomrnendation: Approve agreement with James CapMal in the amount of $6,000 to provide finandal advisor service for the upcoming L&P bond issue. Accept fee of $25,000 to $35,000 from Holme Roberts & Owen (Diane Barrett) for the legal work induding bond opinion. 2-1 TOWN OF ESTES PARK Office Memorandum To: The Honorable Mayor Dekker and Board of Trustees From: Richard E. Matzke -722?2"- Date: March 10, 1999 Re: 1998-1999 Christmas Decorations Installation Contract Change Order Request BACKGROUND: In September 1998, the Light and Power Department requested bids for the 1998-1999 Christmas Decorations Installation Contract. The contract was awarded to the low bidder, Rocky Mountain Lawn Care. At the department's request, the contractor installed additional twinkle lights on trees along Elkhorn Avenue, repaired electrical outlets and performed other miscellaneous repairs. The Light and Power Department has received a change order request in the amount of $7,492.16 for the additional work performed. BUDGET/COST: The original contract amount approved in September 1998 was $43,338. The 1998 budget for Christmas Decorations was $55,000. The 1999 budget for decorations is $65,000. The change order request will put in 1998-1999 installation cost in line with last year's. RECOMMENDATION: The Light and Power Department recommends that the change order request from Rocky Mountain Lawn Care for $7,492.16 be approved and funded from the 1999 budget for Christmas Decorations. REM 3-1 NOODO rAV'h~OC~-0 A 01 010\ oet-r- oo 9 . -1 U flu - â‚¬1 - & ET - A r. Ve Vil rq. d X r.Â·11- 0 - en 00 M i - >4 - KO- - : : : O \0 Â¢9 1 00 1 r.1 Z : 2= 11% i . 1... ..4 1 r. i. i -00-00â‚¬lt- O X - 1 00 1 : *9 â‚¬901(NOV 3 1 M itn ! : 03 t.7 -- 1 M ; tr) 04.0 Â¢9 60 Mi-i 41 i ': 1 I I 0 1 : : : 1 : -OOh h 04 te, =r el - 1 f M O 00 N O W le, U C~ 0 ODA a.. a....1 \0 - U .Oâ‚¬100â‚¬9- M \0 7 O$0 M go In -Â¢9- - %2 1 - O Â£0 M MOM #0 - 2 to -- M ~ (9 - 0~9 1 5.1 n r. . 1 . E m w .- - 000 4 06 . -4 1 1 - -&0 MOO h 1 64 1 4 Co : t0 2U -1 25 8000 0 ~entr,(N.ZO 01000 04 (nel\OC,WO 0. q 00.0. 00 .r, MOrilQ e O O el ef =24 â‚¬ /0 00 el 00 tr, N h el M CO MMO-4 4- 61- n Ve 00.-/*el U r- (1 - - . 04 0 m ~4 8 1 13 8 0 O -9 am E E--Ag<.9 63 8 2 Â¤ F 48 .4 U 2 -5 glomabl 0 1 li Ji 11 11 C., e M wo~W im E u 1 W [9CZ90'I OOL'L98 8[9'81'Z 06Â£'89Â¢L 986'06E LO I'62.5 Z58 t'l' 6Â£4'1'L -IV.LIcIVD 3110138 55I'9E Â£99'Eli 8**38 EÂ£9'ZLL'I 8 I Â¢880' I *BL'61 5 1'9â‚¬'186 986'ZEâ‚¬ 20' I Et'6 SE[kIALIGNE[dXE[ 1V.LO.L I Â£8'*9ES 1,â‚¬5.9[$ El'l'.594$ +01/Ldâ‚¬$ (Â£61'869'IS) SHHO.LIGNE[dXH lIHAO $528,629 $1,302,93 TOTAL REVENUE 690,390 1,353,349 TOWN OF ESTES POWER FOR THE MONTHS ENDING FEBRUARY 28,1999 & 1998 198'0â‚¬ I-E[ D BUDGET SHANHAHN .:IO (ADNECIOL:13(I) SSHOXH (ADNHIDLEG) SSHOXH 0 AAM IN31SAS Loadh99.xls 3/10/1999 -0-1997 966 L -- 000'6L 666 1-ili= oaa 100 deS 6nv Inr unr Ae'Al ldÂ¥ JeIN qa=1 uer OWN OF ESTES PARK PURCHASE POWER-DEMAND 3-84 39Â¥d 24,000 - 23,000 22,000 21,000 20,000 000'8X 000'LL 000'9L 000'9 K 000't'L Â·~Â·12&2%*22%**8*&8*%8**66Â¤2*&2kk*47$68*99*88*kkkÂ» 1 ...... ..lilli. ..................... ............. ... ....... I. ......... lili......... ........ ./. ............. ............. ........................................................................... ............. -6#1,~~06**â€žâ€ž11.1â€žr#i**~*~u~~~<.4.Li.42.%2<L.... 42<LJ j ......................... .:.: .*-*. IMk*Â§6$*98886&*39**RkS:k*$**69*Sit**8**8# 2 ............ ......................... Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â· 'ffR$$$$$$$$$$$$~f~~33*3Ffts*39~Ft: c ............. ..................... .... 4,24%%2k*36%4&**Rk**966:*k***Rkk**39* ..................... .'''' ...................... ..................... ES&*~9%*8$i&~E&**S.e*SESE&***Bm**Â§Â§Â§ ~ ......................... .Ess~mmssmsmEmsssmssemmmE , ~24*4***4*2**4*2 ............................................................................... Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â·Â· 12Â»k#%*M*SÂ»ki<4~'6466.44*~4~U 1 v-v-, Â· 'R 448%t:**699*9$&**Â§69*66*ak*i*%99$9*9%$9*39$4 ir.'.~19 St~Â»i*:**2*'*206*N<-%**6Â«4*t'*24 433*22%Â« ERÂ·/:Â· 04%*Â§4**#Â§%%Â§4 Â»ip.,0,0,0,:4440.0,0,0,0,#,0,0â€ž ..,4.0,0,0,0,0,0,0,4 0 HMM *1HiNOW 8,000,000 01997 01998 01999 10,000,000 6,000,000 000'000't 000'000'Z ~NerÂ·42Â®2%4*Rk**%44*kkkER;63akke*:Nek*NakeeEkkeNE*%%%4 ~ 1*N%%44%444%99&*444%4444%44~&44k4kk444%449*Nkâ‚¬%*44%444&244%44444%44 :@ h.~/~i#//////*Rk;&*ak;SR//////RARR**akk*RRERk////////r 1, 1/Rkkk"*66$6684%4*3*ker..,34*RRk*RRERSÂ«3*44%44* 1/////rl///2/////ri//\\//////ri////$&/p f 06**%%%%2%%:Ssyskkakkwea:*8*112* 3 1 tiNNER:4424*NNllikkikNkkBBRRAN:.% ~RBR*%;SSE~E~ES 8.'...:..:.:.:.....:.:::...'':.:::.'. hlRRRRRRRES*SS 1. C 1 0 It 0 N (0 a,SVHOEInd HMM alA Loadh99.xls 3/10/1999 0 1997 966 LO 000'000'09 666 L m O des unr Ae,\1 Jdv Jeni qe=1 ENERGY PURCHASES YEAR TO DATE *-8* 39Â¥d ~ 866 L SA 011 666 t ~ - 000'000'04 120,000,000 - 100,000,000 80,000,000 - - 000'000'oz ............................. 1/*:*6$99/%6**%9*$*SR%63%28%69*$ ~ .............. ..........I....... .................. ......... ........9 ....................Il.-...9...................'.................. .................. 9 ....... .................. IN:*SmEEESEEmS~~SSSmR*$*RRR.Mrm f Z< Â·LOXÂ·.Â·I NONÂ·333:Â·-.-E.Â·T.X+3.Â·rÂ·.3.Â·-Ib:.Â·XE~.-' 1&3%54*%UkAkkekkk,BRAks*MB&%* = g .............................................. C) -I-I-:-7-7-7 70..:Â·.-7- -2---I-I-I-.:.-.tÂ·.-IÂ·.......3-:-I-I-I-:3...Arm**Ss*sssam*ssÂ»*Â¤61**2Gs@@Sse<SALA"*%#.i;#Â¤89*B 84#&2**$6%*kÂ»%;6**Skirk**ReS Â§ 1Â· jl 111~~~ ~~; il; ~i ,;~~,~ ~g~,~TME: iÂ·: il i :i ~i i~44** 1,9 Flu 'i'Â· *~~: ',1 !~1'{1:.i 4( 4.( 1,1 â€ž1:1 ~ :;i:i ti'i.'!1 !Â·~ !t~,E ..... ...1*24:U:*22%666*%***9**9**6U*49*%Â§% .% I. '.... 888#88 8 O 0 0 0 0 0 0 0- O- Lr, LO A*(082* S 1- 1 CF ($) Sa-IVS Al)11.NOW Salehist.xls 3/10/1999 .. 01997 966 L 0 666 L O AoN des unr XeIN ESTES PARK LIG POWER DEPARTMENT BY MONTH 9-8* 39Vd 800,000 - 000'09Â£ - 000'09* .,- . ,- 000'00Â£ E,%22*Â§%*BR*Â§*R**Rk*4***%*44*kk*ik******944%}:R;~ ........ th:*%%%%**:4**>228*%%**%%44444&444*:%443*444*43: . .......... &*2***kke#mke*ti4*Â§%%4%4*%%4kkike HYAW *mi/*24*%%2* RM#*%224%%*SRER -8*%%%%*SmmE3ES,SSFESS~SSSE i 8%2*%24%%%*RRBR*:42%44:8 4 ~ ~ ~ BR/~MjmWALF b%ke**GESESSEESS 2 .....,,..................,..,...................... ,.,........,1,*332*%*W j I. I I I. I I I. I. i ......... 0 ($) Salvs alva 01 MVEA 01997 4,000,000 - 01998 01999 2%4~ 6,000,000 - 5,000,000 - 000'000'Â£ - 000'000'Z 000'000' L mERSS*