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.
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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
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