1979 REG MTG MIN AUG 21 - Laserfiche WebLink

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305 Electric Utility Director Gale Drews spoke to the Council Members regarding recent meetings with the R. W. Beck Company to discuss the wholesale rate increase from the Southern California Edison Company, which went into effect on August 15, 1979, and its effect on the City of Colton. Mr. Drews requested Council's consideration and approval of a resolution to put into effect an across-the-board interim rate increase in the amount of 42 percent for a period of 60 to 90 days in order to handle this increase received from the Edison Company, and to retain the City's reserves. Mr. Ron Locher, representing the R. W. Beck Company, reviewed a summary of esti- mated operating results, for the fiscal year ending June 30, 1980, of the Revenues and Expenditures, showing a deficit in the Balance of Revenues in the amount of $134,462. Mr. Beck stated that he and the City Staff have thoroughly reviewed these figures and charges and recommend that this interim rate increase be implemented as an across-the-board increase, so that all charges would be increased by the same percentage for that interim period of time, pending the completion of the detailed rates which may be somewhat above or below this 42 percent amount, which is un- certain at this time, and it may also vary as to percentage increase among the customer classes, depending on the way that the costs are shown that serve the (� various customer classes. Acting City Manager Elliott asked what effect would it have on the City if this increase was not passed on to the customers and if the City handled it themselves. C[ Mr. Locher stated the City would realize a deficit of revenues of approximately $134,000. Mr. Elliott asked what that would amount to on a monthly basis. Mr. Locher answered approximately $10,000 to $12,000 monthly. Mr. Locher stated the City would then be drawing on its reserve fund. Discussion then followed among Council Members and Staff with regard to the proposed interim rate increase, the Edison Company increase recently imposed on the City of Colton, and the effects to the City's reserve funds. Councilwoman Cisneros stated the Council Members have just received this report this evening, and because there are still so many questions to be answered and because this is such an important item, she felt any action regarding a rate in- crease should be postponed until the next regular Council Meeting, for further study and report. Mayor Gonzales also suggested that this matter be referred to the Utilities Com- mission for their recommendations and report. On Council consensus, the matter regarding an interim rate increase was tabled until the next regular Council Meeting and also referred to the Utilities Com- mission for recommendations. Bids Veterans Park Mr. Elliott reported on the bids for Veterans Park improvements, advising that of the 41 Notices Inviting Bids sent out, only four bid packages were picked up but no bids were received for this improvement project. Mr. Elliott stated that Staff recommends Council authorize Open Market Procedures, informal negotiation, for the construction of the barbeque pit, estimated at $1,500, request formal bids for the purchasing only of the pre -fabricated shelter, approximate price $14,500, and that erection of the shelter be negotiated through open market procedures upon delivery of the shelter material, and that the basket- ball court be advertised again as a separate item from the park shelter, the approximate cost of the court will be $5,400, which will require formal bid procedures. Moved by Councilwoman Cisneros, seconded by Councilman Hayes, approving Staff's recommendation as to bid procedures and advertising for Veterans Park Improve- ments. Unanimous vote. AUG 2 1 1979: