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HomeMy WebLinkAbout01/18/1982 - Special Minutes City Council MINUTES SPECIAL CITY COUNCIL MEETING MONDAY, JANUARY 18, 1982 4:00 P.M. COUNCIL MEMBERS PRESENT: Mayor Halter, Councilmen Boughton, Dozier, Runnels COUNCIL MEMBERS ABSENT: Councilmen Ringer, Jones, Prause STAFF PRESENT: City Manager Bardell, City Secretary Jones, Deputy Finance Director/Tax Assessor-Collector Schroeder, Utilities Administrator Piwonka, City Engineer Ash VISITORS PRESENT: See guest register. Agenda Item No. 1 - Council Concerns. No council concerns. Agenda Item No. 2 - Discussion of a proposal to provide electrical services for University. City Manager Bardell presented the item. He stated that Texas A&M University is currently considering their needs for additional electrical power. They estimate that by July, 1983, they will require a minimum of 5 megawatts of supplemental power, with 15 megawatts for emergency (stand by) power. They have also indicated that their needs could reach 10 megawatts of supplemental power if growth continues, with 15 megawatts for emergency (stand by) power. He explained the supplemental power is power purchased on a regular basis that will be used during the peak capacity time each day. Emergency (stand by) power is only required in the event of failure of equipment. These two types of power are classified differently in rates due to the fact that emergency (stand by) power is not used on a regular basis. The City of College Station has requested to be considered by the University as a possible supplier for power. The University's present supplier is Brazos Electric Cooperative. He pointed out that the City of College Station does not purchase power from Gulf States Utilities on a supplemental or emergency contract. The City purchases power from Gulf States Utilities on a regular rate contract. A proposed contract to the University for power would have to be on a regular basis also. He stated that he has prepared a sample rate schedule that would be applicable to the University and included in our city rate ordinance. He explained that the character of service would be an alternating current, 60 Hertz, three phase, 12,470/7,200 of volts. The proposed rates would be $2.90 per kilowatt for all demand. The energy charge would be $.012 per kilowatt-hour for all KWH. The minimum monthly charge for energy would be $30,000 per month plus applicable fuel adjustment and/or wholesale rate adjustment. The minimum demand charge per month would be 75% of their peak demand in the last twelve- month period. The City will purchase, when available, excess kilowatt-hours from the University at the price which we would pay Gulf States Utilities less 10%. These figures indicate an approximate 20% adjustment to the University, based on the theory that a 5% line transformation loss will occur leaving a 15% revenue. City Manager Bardell said that the City will also bill the University for a facilities charge. The estimate of the facilities charge ranges from $27,000 to $69,000 per month and depends upon how much the city must invest for this project. ' 003&22 MINUTES SPECIAL CITY COUNCIL MEETING MONDAY, JANUARY 18, 1982 4:00 P.M. PAGE 2 He stated that Electric Power Engineers has advised the city on this proposal. Mr. Bardell pointed out to the council that an additional substation would need to be built on the west side of the University. The substation on FM 2818 has been contracted and all equipment is here for beginning construction. After completion of the substation on FM 2818 and the proposed station west of the University, the city could loop the 138 KVA line to the main existing substation on Hwy. 30 from both points, thereby securing the University substation. Another alternative would be to put two 25 KVA line transformers in this proposed substation that could serve the full University from either side of the station. The first alternative would cost the City approximately $1,300,000.00. The cost of the second alternative would be approximately $2,000,000.00. The University has estimated that if they build a substation and use Brazos Electric Cooperative lines for power, their cost will be approximately 1.7 million dollars. City Manager Bardell stated that the city believes our offer will provide the University with a less expensive alternative as they would not have to build a substation. This proposal would also benefit the City of College Station by providing a loop service 138 KVA line throughout the city. He asked the council for authority to present this proposal to the University by a letter giving them 4 or 5 options for electrical service. Councilman Dozier moved to authorize the City Manager to present the proposal to provide electrical service to the University. Councilman Boughton seconded the motion which passed unanimously. Agenda Item No. 3 - Adjourn. Mayor Halter adjourned the meeting at 4:55 p.m. ATTEST: APPROVED: ./ / G~ry -P~I t / Dian Jones, C~ Secretary 003 .2_3