1978 REG MTG MIN JAN 17 - Laserfiche WebLink

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10 Report and the estimated $400,000 deficit in the Electric Fund for the current fiscal year. Mr. Calabrese outlined the Utilities Commission recommendations as follows: 1. No increase in energy rates. 2. Increase the monthly minimum charge for residential customers only by $1.00 per month. 3. Reduce the operating expenditures of the Electric Utility by changing the formula for transfers to the General Fund as proposed by the City Manager. 4. Eliminate the five percent (5/) rate decrease for commercial and indus- trial customers and retain the five percent, -(5%) rate decrease for resi- dential customers. Mr. Calabrese stated that the Utilities Commission also recommend adoption of Electric Utility Operating Rule No. 19, regarding extension of lines, as pro- posed, however, this Rule and an appropriate enacting resolution will be pre- sented to the City Council for consideration at the next regular meeting, February 7, 1978. After discussion among Council Members, moved by Councilman Gonzales, seconded by Councilman Hayes, approving recommendations of the Utilities Commission with regard to the Electric Utility Report and Electric Fund deficit, as outlined by the City Manager. Vote was unanimous. Computer Systems Agreement Mr. Calabrese referred to his memorandum outlining a proposed agreement for the sale of computer time. Director of Finance William Holt advised the Council Members that the City has been approached by the firm of David Reser and William Pierce, General Partners, which does data processing for various nonprofit and private ventures, to use the City's computer in the evenings when the machine is not needed by the City. Mr. Holt said this firm's computing requirements necessitate utilization of magnetic tape storage, while the City currently utilizes magnetic discs for storage; the magnetic tape storage being the more efficient, safer and most practical method in comparison to the magnetic discs for storage. Mr. Holt continued that the proposed agreement provides that the partnership of David Reser and William Pierce will buy two tape drives and a tape con- troller, which are acceptable to the City, and lease computer time for a period of at least three years from the City, and in return for providing the tape drives and controller, the City will allow them up to 50 hours per month of computer time, with all hours in excess of 50 hours per month being paid for to the City at the rate of $8.50 per hour. Mr. Holt stated the City would have first claim on use of the computer at any hour of the day or night, and it would be protected by a $50,000 bond pro- vided by the partnership; also, the City would be required to provide a main- tenance contract on the tape drives during the time that we have our normal maintenance contract. Mr. Holt said the City would derive numerous benefits from this, along with cost savings, and because of these advantages and utilizing the tape drives to a great extent, the City has negotiated with the partnership the option for the City to buy the tape drives upon expiration of the agreement at 50% of the amount paid by the partnership. Mr. Holt concluded Staff recommends that the City Council approve the agreement regarding utilization of the City of Colton's computer and the provision of additional computer equipment to the City by the partnership of David Reser and William Pierce. Councilman Rehrer stated he was concerned about possible problems with security and eventual cost to the City with this type of agreement and arrangement. JW 17.1978