HomeMy WebLinkAboutMINUTES Light and Power Committee 1987-04-020 0
RECORD OF PROCEEDINGS
7 Light and Power Committee
April 2,1987
Committee:Chairman Hix,Trustees Brown and
Habecker
Attending:Chairman Hix,Trustee Habecker
Also Attending:Mayor Dannels,Trustee Dickinson,Light
and Power Director Dekker,Finance
Officer Vavra,Sharon Podein,Peter
Nadell,Clerk O’Connor
]thsent:Trustee Brown,Town Administrator Hill
ELECTRIC RATE STUDY -REVIEW:
Sharon Podein/R.W.Beck and Peter Nadell/Gorsuch,Kirgis etal
presented the electric rate study for the test year ending
December 31,1926.The study compared revenues and expenses for
Residential,Residential Demand,General Service Small and Large
and Municipal electric rates.The study indicates net revenues
of $53,106 from consumers inside the Town Limits and a revenue
deficit of $135,970 from consumers outside the Town Limits,
resulting in a total system revenue deficit of $82,863.The
Committee reviewed three basic scenarios in adjusting the rates:
a)increase the rates 6.8%which would bring net revenues up to
zero (break even)for revenue generated outside the Town Limits,
b)increase the rates 1.9%which would place the entire system on
just a “break even”basis,and c)increase the rates 4.4%±,a
point approximately one—half way in between which would generate
about a 2%surplus based upon 1986 income and expenses.A rate
study for the entire system had not been prepared since August,
1922.The rates were adjusted in 1983 and 1984 with one
“pass—on”increase of 2.3%followed by two decreases of 3.5%and
3.4%respectively.Mr.Nadell advised,that pursuant to current
law,the following steps must be observed in revising electric
rates:(1)publish a notice in a paper of general circulation;
(2)advise consumers,in writing,of the proposed rate increase;
and (3)prepare the tariff sheets and rate books for public
inspection.Following considerable discussion,the Committee
recommends the following:
1.A 6.8%rate increase for all rate classifications.
2.The Board of Trustees set a public hearing date of May
26,1987 at their April 14,1987 meeting.
3.The revised rates will become effective five (5)days
following adoption by inclusion of the “emergency”
provision of the Ordinance.
4.The rates will affect the first billing cycle in June.
5.The Town’s rate attorney will contact Town Attorney
White concerning the proposed rate increase,with the
rate attorney to provide a “written order”and Ordi
nance.
Items 2 through 4 will be contingent upon all documents being
prepared in a timely fashion.
COMPUTER COMPONENTS/FINANCE OFFICE -AUTHORIZATION TO PURCHASE:
Finance Officer Vavra requested authorization to purchase the
“Lotus”Program for the IBM XT Personal Computer.An estimated
expenditure is $297.00;funds are available in the 1987 Budget
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RECORD OF PROCEEDINGS
Light and Power Committee -April 2,1987 -Page two
for such a purchase.The Committee recommends approval of the
request.
The Committee reviewed a cost estimate submitted by Finance
Officer Vavra for two (2)CRT terminals.Two existing terminals
are in need of replacement.The estimate compared new and used
terminals plus maintenance costs.The Committee recommends
Finance Officer Vavra be authorized to purchase two (2)new NCR
#7930 Terminals at $846.00/each,for a total expenditure of
$1,692.00.Adequate funds are also available in the Budget for
this expenditure.
REPORTS:
In comparing statistics for delinquent accounts in March,1986 to
those in March,1987,telephone calls made were up 28.5%,notes
placed were down 20%and accounts disconnect were up 90%.
Platte River Power Authority (PRPA)contractually obligated to
furnish 4,200 acre feet of Windy Gap water to Fort Collins
annually.Through a “Memorandum of Understanding”executed April
5,1987,Anheuser Busch (A-B)will pay all of PRPA’s pumping
costs to bring this water to the eastern slope and in return A—B
will be able to use this reusable water for their brewery.Each
participating entity will benefit from this arrangement.
The Committee reviewed a letter dated April 2,1987 written by
Mayor Dannels to the National Park Service.The letter addressed
the minimum flow issue concerning the Cascade Diversion Structure
and offered four areas of negotiation.
Light and Power Director Dekker advised the Committee on the
power outage which occurred March 29th.
Following completion of all agenda items,the meeting adjourned
to allow the Committee to view various vehicles and equipment.
Vickie O’Connor,Town Clerk
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