HomeMy WebLinkAbout1970-09-21 Town Council Minutes`IINUTES OF BOATED OF TRUSTEES
SEPTEMBER 21, 1970
The meeting was brought to order by Mayor Dobson at 10:15 A.M.
0 I. ROLL CALL:
Present: Tod Anderson
Dick Bailey
t+avor Dobson
John Donovan
Clay Freeman
Dr. Steinberg,
Others: Clarence Hoper, Consulting Utility
Engineer
Stan Bernstein
II. Letter to William Lucas was approved with possible
revisions by J. Donovan.
III. ELECTRIC UTILITY ACQUISITION:
Mr. Hoper's preliminary report was occassioned by the
fact that Vail is now a second class town and that the single
transmission line is inadequate. r4r. Hoper stated that there was
difficulty in obtaining detailed billing data from Holy Cross.
Holy Cross has computer billings for all accounts for the whole
year, but there is no projection in the reports. Mr. Hoper will
not ao beyond giving pure facts and figures; he is an engineer,
not a promoter. ter. Hoper stated, "This is presently already
publicly owned by the RE:A. The ownership should be invested in
the Town of Vail based upon availability of information. A pro-
jection would be desireable." As stated by Mr. Hoper, we have
one major problem: If we decide at this time to take on this
venture, our major problem is power supply. T1r. Hoper had two
suggestions: 1) take a look at future operations; 2) concentrate
on an adequate power supply.
Mr. Hopes also stated that Holy Cross could not be
approached regarding the acquisition of electricity from their
association. No negotiations can take place until we have made
the decision to take "ail. There is a letter from Holy Cross to
Clarence Hoper stating that thev will build a 138,000 transmission
to the Vail Substation and will change a 60,000 line to 128,000;
then with a double line, we should have good. service. The present
facilities are inadequate. There is a very real need to acquire
duplicate transmission.
Holy Cross is our supplier. We can not buy power from
Holy Cross until we have a duplicate line. PUC will want to know
how we have not had good service. Records are not available from
Holy Cross. As records must be gotten as soon as possible, some-
one should write down a definite outgoing record until meters
are installed.
PSC of Colorado is another supplier. PSC would have to
bring power in from Gillman Line. We would be on a single line,
but duplicate service could and should be secured. Holy Cross
duplicate service is brought in from Avon. A public service can
be duplicated by Holy Cross.
In addition, Per. Hoper stated that on a previous meeting
with t'r. Brookour, Vice -President of Public Service, that Mr.
. Brookour. regarded Vail as Holy Cross's territory. Mr. Hoper stated
his disagreement and said that transmissions can be brought in if
we choose to do so. We must convince Holy Cross that we are dis-
engaging. This whole problem is in the hands of the Board of
Trustees. The involved engineers will supply any and all facts
and figures needed, i.e., Aspen is buying from Public Service, not
Holy Cross; Glenwood is buying from the Bureau of Reclammation.
Bureau power should be available to us. We could offer Public
Service a franchise but first we would have to acquire power from
the REA, financed by revenue bonds. Mr. Hoper said that he would
write a feasibility report.
Because of economics and better service, Mr. Hoper
recommended the distribution of electricity on a municipal level.
If rates are equitable, it would just be another revenue source.
Operation of the electric business is only as difficult as the
quality of competence of the man in charge.
F'r. Hoper recommended strongly that we purchase
electricity. If we sell outside town, we will become part of
the PUC, but we should try anyway. If we took over Vail's elec-
tricity, REA is still obliged to serve the outside areas.
Mr. Hoper then gave a background of the Bureau of
Reclammation. the Board of Reclammation has been building hydro -
plants for years. They needed steam standbys and backups and they
interconnected with PSC. The Board of Reclammation wanted to
build some steam plants to backup hydropower. The Board of Reclam-
mation was originally started to give farmers hydrowater. If
they put steam plants in, they would then become primary power,
not secondary. REA was permitted to build steam plants to break
up the monopoly of.the private uti.lities.These plants are all over
the country and are built by super co-ops. The Hayden Plant sells
some electricity to REA and some to PSC. The bulk of power that
REA gets in this area comes from the Board of Reclammation. REA
has an atomic plant in Plantville, north of Denver.
r4r. Hoper restated that all he will be bound by are the
figures he gives us. No cost for a feasibility study were given.
Gie are not in a position to set bonds until we know how much our
wholesale electricity cost will be. We should take a look at a
projection of Vail's operation. We should get a quote from PUC;
however, their report will be based on 1969 operation. In order
to get power from REA, we need an accurate record of lack of ser-
vice for possible needed friendship at PUC.
Mayor. Dobson then voiced his_ opinion as to his understand-
insq of procedures.
1. Decide whether we want to buy public service. If the de-
cision is affirmative, we should get pertinent information
from the community and state, i.e., Ft. Collins and
Colorado Springs: Part of the policy is the basic
feasibility of power search. We do not want to get caught
buying without sufficient power source. Mr. Hoper voiced
his desire to take Mr. rhinger to sit down and talk with
the Board of Reclammation after we have made the decision
to buy.
2. Pursue the acquisition as far as cost is involved. Then
check our financing., bond situation, and time table.
3. A future projection of operation will then be in order.
The final feasibility report will be based upon actual
cost of system and purchase of power, coupled with pro-
jection. In Vail, any projection by Mr. Hoper will be
based on present conditions.
IV. JEEP PARKING DURING VAILFEST:
It was resolved that all jeeps will park in the front
of the Chili Bowl by the Christiana to the bridge, east of the
Creek. These will be the only motor vehicles on Vail streets
during the vailFest.
v. FUTURE MEETINGS:
There will be no Board of Trustee Meeting on 9/28/70.
VI. Stan Bernstein stated that the assessed values were
quoted at $6,500,000 to $9,600,000.