2001 CC ADJ REG MIN Aug 14 - Laserfiche WebLink

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CITY MANAGER'S REPORTS AND RECOMMENDATIONS: Management Audit of Electric Utility Tom Snow, Regional Managing Partner of KPMG, presented on the following topics: Historical background; the California energy crisis; an overview of Colton's electric supply situation; financial issues; operational consideration and recommended an annual report geared to the utility operation, a balancing account tied to the PCA to monitor under -collections and a monthly executive summary report showing where it has been, where it is at and where the utility is headed. Mr. Snow said he would follow-up with a written report. He concluded that the City of Colton's Utility Department was performing very efficiently and performing above the norm. City Manager Parrish indicated his office would coordinate with the Utility Department and Mr. Snow to implement the recommendations. Commission's MOTION/VOTE: After discussion, motion/second by Commissioners Perez/Morua to receive and file the report carried upon unanimous vote. City Council's MOTION/VOTE: Motion/second by CM Chastain/DeLaRosa to receive and file the report and to direct staff to implement the recommendations carried with no opposition. City Manager Parrish read the recommendations to be implemented: 1) Track over/under collections using a formal balancing account; 2) Produce monthly reports for review. An internal staff review team was created to include himself, Al Holliman, Mike Williams and Tom Clarke; 3) Produce an Executive Summary along with financial reports to contain a comparison to prior years, comparison with the budget and outlook to the future, that will also be distributed to the public; and, 4) Have a separate audit for the Utility. City Manager Parrish stated that the Utility Commission would receive the same paperwork that the City Council would receive. Beckett Ranch Option/ Agreement for Colton Jets Project Utility Director Clarke reported this was the first step of the Colton Jets Project, expected to be a joint project between the City and either the state agency of the California Power Authority; the Department of Water Resources or it could become a SCPPA project. Even though the City Council recently authorized the execution of the Department of Water Resources contract, Director Clarke said it was still pending. Once executed, he said the City could move forward to create am MOU and put the project into construction. Director Clarke said the City had negotiated a purchase option agreement with the Beckett family, owners of 38 acres on Agua Mansa Road, adjacent to the RIX facility offering the following: Crossroads of both 66KV and 220 thousand volt systems; transmission lines adjacent to the property; an existing 12 -inch high pressure gas line; a ten -inch jet fuel line; and, approximately 35 million gallons a day of water available for cooling with adequate land to expand beyond the 288 MW. Director Clarke submitted Mr. Beckett's non-negotiable price for the property: A negotiated 6 month purchase City Council Adj. Mins Aug. 14, 2001 4