1985 CC ADJ MIN JUN 19 - Laserfiche WebLink

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74 ADJOURNED COUNCIL MEETING JUNE 199 1984 In accordance with notice duly and legally given, an Adjourned Regular Meeting of the City Council of the City of Colton was held on the above date at 5:30 p.m., in the Council Chambers of City Hall, Mayor Huntoon presiding. ROLL CALL: Council Members present were Rios, Rehrer, Garcia and Mayor Huntoon. Also present were City Manager Elliott, City Attorney Edwards, City Clerk Ramos,,Acting Finance Director Andengaard and Assistant Finance Director Young. Absent was Council Member Cisneros. City Attorney Edwards and City Manager Elliott reported the Mayer Group is desirous of pulling their building permits and were to post a letter of credit. Staff has learned that there is a possibility of a law suit, and that Mayer is an affiliate of Coast Federal Savings. Mr. Elliott said the City is assuming the position, that Mayer will have to reapproach the City in order to settle this matter. BUDGET: City Manager Elliott reported for tonight, staff would like to have R.W. Beck make a presentation on the Electric Study and do a recap of the Police Department. City Manager Elliott said he would also like R.W. Beck to address the possibility of doing a Water Utility Study. Electric Utility Director Drews, addressed the Council saying, the 1.3 million dollar refund from Southern California Edison, was to absorb 1984-85 purchase power costs. Mr. Drews said he was now pro- posing that the revenues for this fiscal year, which are more than anticipated, be used and if need be, use some of the reserve. Mr. Drews said in that way, the City would have the full 1.3 million, plus interest, to help defray purchase power costs in 1985-86, thereby eliminating any need for a rate increase. Mr. Dave Helsby of R.W. Beck b Associates, reported that they had completed the package on the rate study and have placed a draft of our findings before you. Mr. Helsby stated earlier in 1984-85 we projected a revenue deficiency of $900,000 and at that time Council approved the use of Southern California Edison refunds to offset these deficiencies. Mr. Helsby said they have completed projections for FY 1985-86 and based on those projects, we do show a revenue deficiency of $900,000 which is shown on Table 1-1 at the end of the Draft Report. Mr. Helsby said since the Southern California Edison refunds are still available, there will not be a need for a rate increase, as there will be no net deficiency. Mr. Helsby said their report shows a deficit in- revenue from the sale of power and an increase will be needed when refunds run out, perhaps, in 1986-87; therefore, R.W. Beck is recommending some changes in the rate structure of the City's electric rates. Mr. Helsby there would be no change in residential,- lighting rates would have no change, the General Services Rates which are non -demand, demand, and large demand are being recommended for a rate -structure change. Mr. Helsby said the changes would reflect more current industry standards and date rate structures to reflect more accurately the cost of service. JUN 19 1985