HomeMy WebLinkAboutElectric Board - Minutes - 10/14/1992Minutes to be approved by the Board at the November 18, 1992 meeting.
FORT COLLINS ELECTRIC BOARD
MEETING MINUTES
October 14, 1992, 5:00 - 6:30 P.M.
BOARD MEMBERS PRESENT:
John Allum, Dane Brandt, William Orendorff, Richard Smart and Larry Walsh.
BOARD MEMBERS ABSENT:
Mark Fidrych and Barbara Rutstein.
STAFF PRESENT:
Don Botteron, Allen Boushee, Delynn Coldiron, Ron King, Bob Kost, Bob Nastan,
Rich Shannon and Dennis Sumner.
BOARD LIAISONS:
Council Liaison -- Gerry Horak
Staff Liaison -- Don Botteron
CALL TO ORDER:
Dane Brandt called the meeting to order.
AGENDA:
1)
Approval of Minutes
5)
EMF Statement
2)
3)
Amendment I Information/Discussion
Rates
6)
Preliminary Work Plan Items
4)
Citizen Outreach
7)
8)
Other Business
Critique Meeting/Next Meeting's
Agenda
DISCUSSION
TOPICS:
1. APPROVAL OF MINUTES:
A Motion was made by Board Member Smart to approve the Minutes. Board
Member Allum seconded the Motion. The Motion carried unanimously and the
Minutes from the September 16, 1992 meeting were approved.
2. AMENDMENT I INFORMATION/DISCUSSION:
Bob Kost and Don Botteron attended a seminar sponsored by the Colorado
Municipal League which addressed potential ramifications of Amendment I.
Don reported that the experts who attended the seminar could not come to
agreement on issues related to this Amendment.
Relating to the proposed rate increase, the Amendment talks about limiting
taxes and expenditures. Fees are not limited, according to its author
Douglas Bruce. To date, interpretation has been that fees are not limited
unless they generate revenues that exceed the expenditure limit. Douglas
Bruce states that utilities are exempt, but the Utility intends, for
accounting purposes, to meet the guidelines/requirements of the Amendment.
Board Members discussed this issue and were in agreement with forwarding
a memorandum to City Council which explained the potential impacts of the
Amendment on the Electric Utility and recommended strategies pertaining to
these potential impacts. Board Members chose not to take an advocacy
position. A draft memorandum was provided to Board Members for their
review. A Motion was made by Board Member Orendorff that the Memorandum
to City Council regarding Amendment I -- Bruce Tax Amendment be submitted
as drafted. Board Member Smart seconded the Motion and the Motion carried
unanimously.
3. RATES:
Don Botteron briefly readdressed some of the financial policies of the
Utility and highlights of the 1993 budget information that were previously
shared with the Board. Following the background information, Don
continued his presentation by sharing some graphs/charts with the Board.
The first graph showed that even with the 7.4% increase, overall rates
will be approximately 2% less than what they were in 1983. The second
graph showed the proposed cost -of -service distribution by rate class. The
Utility has made a commitment that no major customer class will deviate
from the cast -of -service line by more than t 10%, with the goal of getting
each of the major customer classes within the t 5% line. The Electric
Rate Comparison chart showed the Utility's position in comparison to
surrounding Utilities after the proposed adjustment: Poudre Valley REA:
21.4% above Light & Power; Public Service Company: 17.57% above Light &
Power; Loveland: 16.48% above Light & Power and Longmont: 3.10% below
Light & Power. Longmont has not yet passed through the purchase power
increase. The Average Residential Electric Bill graph showed that after
the proposed increase, electric bills will be approximately 8% below what
they were in 1983.
Board Members discussed rate issues and were in agreement with proposing
that City Council adopt the recommended rate increase. A draft Memorandum
was provided to Board Members for their review. Board Member Walsh made
a motion that the Memorandum to the Mayor and City Council Members
regarding the recommended 1993 Light & Power budget and the proposed 7.4%
electric rate increase be submitted as drafted. Board Member Smart
seconded the Motion and the Motion carried unanimously.
Board Member Allum abstained from the discussion and vote on this issue
due to potential conflict of interest because of his association with
Platte River Power Authority.
4. CITIZEN OUTREACH:
Dennis Sumner gave Board Members an update regarding citizen outreach.
The concept was to provide outreach to citizens informing them about the
anticipated rate increase, etc., and the suggestion receiving the most
favorable response from the Board was to hold an open house at the
Library. Staff was able to reserve the Dellatour Room on Wednesday,
November 4, 1992, from 4:30 to 8:30 p.m. It is intended that this will be
an informal session with a series of displays set up. Staff will be
present at the display to answer questions and present information to
citizens attending the open house. Proposed topics are: 1) Rates/
Finances; 2) Undergrounding Program; 3) Energy Services Activities; 4)
System Reliability Figures; and 5) Power Quality Information. Staff is
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looking into the possibility of obtaining a PC with on-line access to the
billing system so customer accounts can be accessed and specific questions
answered. Informative posters will be hung on the walls, brochures will
be available, and the Lighting Lending Kits will be on display.
Board Members discussed this issue. It is anticipated that advertising
for this open house will be done by public service announcements and paid
advertisements. It was suggested by one of the Board Members that staff
prepare a chart showing the number of customers in each rate class and the
amount of revenue generated by each rate class and have this available at
the open house.
5. EMF STATEMENT:
Board Members discussed the 2nd draft of the EMF statement and the
procedures necessary to finalize and endorse a statement. It was
concluded that the EMF statement should be framed as a Utility statement,
carrying the Board's endorsement. Staff feels that at least a couple of
the Council Members would like to see some sort of statement that
acknowledges that Fort Collins and this Utility are aware that EMF is an
issue of potential future importance.
The following changes were proposed:
Ist paragraph under EMF: ...both electric and magnetic fields are
created... be changed to ...both electric and magnetic fields OF
VARYING STRENGTH are created...
- Add language to second paragraph that clarifies that research done
to date raises more questions about the adverse effects of magnetic
fields than of electric fields.
4th paragraph under EMF, Ist sentence: ...electric and magnetic
field... be changed to ...electric and magnetic fieldS...
Last paragraph of the draft statement: "Fort Collins Light & Power
will be sensitive to concerns over EMF and issues..." (take out
adverse health effects.)
It was suggested by a Board Member that this issue be tabled until next
month's meeting. Board Members were concerned with doing a good job on
this and postponing this issue until next month's meeting would allow the
two absent Board Members the opportunity to offer their comments.
Bob Nastan will revise the EMF Statement in accordance with the suggested
changes and will prepare a draft transmittal letter to Council which will
be forwarded to Board Members in next month's meeting packet.
6. PRELIMINARY WORK PLAN ITEMS:
Several items were suggested for the Board's consideration:
• Review Rules and Regulations
• Western IRP Requirements
• Monitor EMF
• Monitor Tax Limitation Amendment
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Rich Shannon mentioned that the Cost of Development Study that the City is
currently undertaking has the potential to involve several Boards and
Commissions in analyzing what the City charges and why.
Board discussed these items. It was suggested that "monitor reaction to
rate increase" be added as an item to the Work Plan. Staff will prepare
a draft Work Plan and will forward this to the Board with next month's
meeting packet. Deadline for getting a finalized Work Plan to the City
Clerk's office is November 30.
OTHER BUSINESS:
Boards & Commissions Workshop:
Board Member Allum and Don Botteron attended the 1992 Boards & Commissions
Workshop which was presented by the City Attorney's Office. Each Board
Member was given a copy of the manual which was handed out at that
meeting. Board Members should take some time to review this manual and
any questions will be addressed at next month's meeting.
Environmental Fair Report:
Dennis Sumner reported to the Board that the Environmental Fair was very
successful again this year. There were approximately 7,000 people who
attended the fair (up from about 5,000 people last year). The EMF booth
that PRPA operated had a good flow of traffic and people seemed to
appreciate the information. The Look Up and Live presentation always
draws a crowd and staff anticipates having this at the open house. There
was not as many people signing up for the Lighting Lending Library Kits as
in the past. People seemed to have a higher level of under -standing of
the bulbs and the associated economics than last year.
8. CRITIQUE MEETING/NEXT MEETING'S AGENDA:
EMF Statement Report on TABOR Amendment
Cost of Growth Information Status of Rate Increase
Other Business Work Plan
- Boards and Commission Workshop
ADJOURNMENT:
The meeting adjourned at 7:20 p.m.
yn w k. uoiairon,
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