HomeMy WebLinkAboutTB Study Session 2016-05-24
Town of Estes Park, Larimer County, Colorado May 24, 2016
Minutes of a Study Session meeting of the TOWN BOARD of the Town of
Estes Park, Larimer County, Colorado. Meeting held at Town Hall in
Rooms 202/203 in said Town of Estes Park on the 24th day of May, 2016.
Board: Mayor Jirsa, Mayor Pro Tem Koenig, Trustees Holcomb,
Martchink, Nelson, Norris and Walker
Attending: All
Also Attending: Town Administrator Lancaster, Assistant Town Administrator
Machalek, Town Attorney White, Director Bergsten, and
Town Clerk Williamson
Absent: None
Mayor Jirsa called the meeting to order at 5:10 p.m.
ELECTRIC RATE STUDY OVERVIEW AND RECOMMENDATIONS.
Shawn Koorn/HDR Engineering provided an overview of the 2016 electric rate study
which reviewed revenue requirements, cost of service and rate design. The revenue
requirement compares the utility’s revenues to expenses to determine the level of
funding needed to support operations and capital needs. The cost of service analysis
should equitably allocate the revenue requirements to the various customer classes of
service without any class subsidizing another. The rate design reflects the findings of
the revenue requirements and the cost of service analysis. The assumptions used in
the study include the projected expenses over a 5-year period; based on current capital
improvement plan; allocate 2016 revenue requirement through functionalized costs,
classify costs into the appropriate components (energy, demand, customer), and
allocate costs to customer classes; and the current rate structure would be maintained
for all customers. The study has determined a need to adjust revenues to meet annual
O&M expenses, capital improvement to maintain the system, maintain annual debt
service and fund taxes and transfers. The proposed rate adjustments for present rate
structure would by 6.7% in 2016 and 5.5% for 2017-2019. The study confirmed the
current rate structure reflects how the customer classes impact the system, and
therefore, no changes would be recommended. An increase to the fixed customer
charge would better reflect the fixed costs on the system. The next steps would include
the finalization of the rate study, set a rate hearing meeting per state statutes, and
implement the proposed rates by September 1, 2016.
Board comments were heard and summarized: concern was raised on how the new
rates may impact those living on a budget and in affordable housing; the increases may
impact the rental rates for the Housing Authority; questioned if the proposed rates are
conservative; and would support consumption costs versus fixed costs because the
consumption costs would increase conservation levels.
TRUSTEE & ADMINISTRATOR COMMENTS & QUESTIONS.
Attorney White provided a history of the lease agreement and operation of the golf
course by the Estes Valley Recreation and Park District (EVRPD). The original lease
was executed in 1957 and was dissolved in 1990 when the District failed to renew the
lease. In 1990, the District entered into an agreement with the Town to make
improvements to the golf course through Certificates of Participation (COPs) through
the Building Authority. An operating agreement was executed to pay the Town back
and outline the operations of the golf course. In 1998, the COPs were refunded (i.e.
refinanced) and the ground lease and operating agreement were amended. The ground
Town Board Study Session – May 24, 2016 – Page 2
lease was terminated in 2009 with the repayment of the loan; however, the operating
agreement remained and renews every 2 years in October of each even year. The
Town would need to provide the District with 180-day notice in order to review the terms
of the agreement in the future or to terminate the agreement.
Discussion ensued on the EVRPD letter received by Administrator Lancaster dated May
24, 2016 regarding the use of the 1A sales tax funds for the community center project.
The Board requested a press lease be produced to outline the project is the
responsibility of the EVRPD and not the Town. The Town may need to consider
removing the Center from the project in order to build a facility to meet the needs and
activities of the Senior Center outlined in the Master Plan. Administrator Lancaster
stated the project continues to be in flux and a discussion may not be feasible at this
time. The Board stated a response should be drafted to outline Attorney White’s
previous opinion that the Town controls the dispersal and use of the 1A funds.
There continues to be confusion on what the current regulations are for vacation homes
and what the Town and County are enforcing. PIO Rusch stated a press release was
issued after the March meeting of the Town Board and County Commissioners to define
the current regulations. Staff was directed not to enforce the 8 individual limitation for
larger homes until the Task Force has completed their recommendations.
Trustee Martchink requested a Task Force be developed to determine the needs of
young families. The Board discussed the formation and recommended the item be
discussed at the strategic planning retreat in June.
FUTURE STUDY SESSION AGENDA ITEMS.
Administrator Lancaster reviewed the upcoming study session agenda items. The
storm drainage study would not be completed until the end of 2017; therefore, the item
would not be brought forward until the study has been completed. A follow-up on
Broadband would not occur until after the engineering design has been completed.
There being no further business, Mayor Jirsa adjourned the meeting at 6:45 p.m.
Jackie Williamson, Town Clerk