1981 ADJ MTG MIN OCT 27 - Laserfiche WebLink

Browse Search

its Mr. Drews explained that the entire cost of the Palo Verde Project is going to be $710,000,000 and our portion is $7.1 million; the Public Power Authority is going to go out and sell the bonds; our obligation then would be to purchase the 2.2% in Palo Verde through the Public Power Authority, the funds from this power purchase will then be used to pay off the bonded indebtedness. Mr. Drews the City will in actuality be purchasing a portion of our needed energy from Palo Verde at a lesser cost rather than having to purchase all of our needed energy from Edison our current sole supplier. Mr. Drews further explained the reason our costs are higher with Edison is that we pay many unseen built-in costs, such as, plant construction, maintenance and operation all of the overhead costs; in the Palo Verde Project, the City of Colton is a part owner, the cost of the plant is a fixed cost, we know going in how much that is going to be and it will not deviate. Mr. Drews referred the Council to the R. W. Beck Reported submitted earlier and pointed out the savings the City will realize through this project. Mr. Drews stated the City will have a small but immediate savings to begin with, but between 1984 and 1985 the estimated savings is over $5,000,000 and these savings will mean that the City will be able to hold down the cost of power to the citizens. Mr. Drews said the City will never be able to decrease rates, but hopefully this will hold back increases. Further discussion followed by the Council with a concensus being that most of the concerns had been aired and resolved. Moved by Councilwoman Garcia, seconded by Councilman Hayes, to approve Resolution No. 4153. Unanimous vote. RESOLUTION NO. 4153 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON APPROVING THE TERMS AND CONDITIONS OF A POWER SALES CONTRACT BETWEEN SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND THE CITY OF COLTON AND AUTHORIZING THE EXECUTION OF AND DELIVERY OF SAID AGREEMENT BY OFFICERS OF THE CITY OF COLTON. Agreement Opt. of LA Water & Power Mr. Drews reported this agreement is necessary for the City to arrange for transmission of the capacity and energy from the Palo Verde facility to the City. Mr. Drews said this agreement is between the City and the Department of Water and Power of Los Angeles. Moved by Councilman Rehrer, seconded by Councilman Hayes, to approve the Transmission Agreement with the Department of Water and Power of Los Angeles. Unanimous vote. Finance Computer Purchase City Attorney Edwards reported that further meetings have been conducted between Mr. David Roupe (Private Computer Programmer), Mr. Ken Fairbanks (Hewlett-Packard) and City Staff, with the result of discussions being, to propose that the equipment to be purchased by the City be the Hewlett-Packard Company Series 40 with related materials. City Attorney Edwards stated a Series 30 was originally proposed, however, the Series 40 is now on the market and would better meet the City's needs due to greater capacity. Mr. Edwards said the total cost as now proposed will be $159,522.94 plus tax, plus freight for a total of approximately $170,000.00. Councilwoman Garcia questioned the Hewlett-Packard Quotation Summary under Periodic Charges, which lists Item B. Hardware Maintenance $1,107.00 and C. Soft- ware $550.00. Councilwoman Garcia asked how often would the maintenance fee of $1,107.00 be charged and why is the City being charged for the Software. Mr. Ken Fairbanks responded by saying, the quotation summary simply reflects the costs which will be due to Hewlett-Packard, not who will pay them. Mr. Fairbanks stated he understood Mr. Dave Roupe has included both of these charges in his proposal as his responsibility. Mr. Dave Roupe concurred and stated that maintenance fee, as well as, the Software Operator currently employed by the City. Operator has resigned and as soon as this his employee. fJ C1 , 7 1981 he would be paying the $1,107.00 monthly and also he will be hiring the Computer Mr. Roupe explained that the Computer is formally complete, she will become