Loading...
HomeMy WebLinkAbout12-23-1991RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA %33839 Special Meeting No. 17 - December 23, 1991 Agenda Item A-1 President Selby called the Special Council meeting to order at 9:00 A.M. the same being held in Room 4 of City Hall. Present: President Selby, Aldermen Canfield, Crawford, Hunziker, McConnell, Petersson and Solinger. Absent: None. The call of the Special Meeting was read by President Selby, the same being called for the purpose of Consideration of Electric Service Charges for 1992 and any other business the Council may deem proper. E-1 Discussion was held by the Council of a request to increase Electric Service Rates for 1992. Petersson moved, Canfield second to adopt Resolution No. 631-91.and 632-91 approving the increase. Discussion was now considered. Alderman Crawford stated that her main concern was the way this came about. She felt that this should have been discussed at a Committee of the Whole where Council can go through the actual documents that is involved with the increases. That is why she voted nay at the December 18, 1991 meeting. Alderman Crawford proceeded to question Robert Pawelski, General Manager of Rochester Public Utilities on the various pages of the book explainin the rate structure, graphs, etc. Robert Pawelski, General, Manager, Rochester Public Utilities was present and went over the questions that Alderman Crawford requested clarification.on. Mr. Pawelski stated that the increases are needed because of the agreement that we made with them to purchase power. Some- .of the increases are to pay for the plant that had to be built and bonds had to be sold. When this building is paid for, the rates should level off. Mr. Pawelski stated that they should level off in 1993. Alderman McConnell questioned the rebate given for use of space heaters. Mr. Pawelski stated that this was a part of the Energy Conservation program and includes such things as a low flow shower head, space heaters, low watt light bulbs and things of that nature which would lower the use of electricity. Alderman McConnell was not in favor of the rebate system. He stated that "If I buy a space heate for myself, why can't my neighbor". Alderman Canfield stated that he is in favor of this increase. This increase was part of the 1986-1987 SMMPA structure and we knew that the increases would be coming and that it will level off -in 1993 and at that point, the City will be paying cheaper rates than the areas around us that do no belong to SMMPA. The reason is because they will be building larger facilities or buying from those that have and at that time they will be paying the higher costs of buildin , etc. Alderman Canfield feels that this is still the cheaper better deal. Alderman Solinger also stated that the rate would level off in 1993 and feels that the City is in a position to receive electricity at a good rate at that time. It was noted that if the increase does not pass, then the Rochester Public Utilities would be short of revenue, not SMMPA. 3840 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Special Meeting No. 17 - December 23, 1991 Agenda Item E-1 Alderman Petersson stated that _"we can't borrow money to pay bills which is what -we will be doing if we don't pass this rate increase." She stated that just because she is protesting SMMPA, jeopardizing Rochester Public Utilities is not the answer. Alderman McConnell stated that he is against this increase and the people can't afford this. Alderman McConnell wondered why a compromise could not be made. Why 5% - why not somewhere in the middle? President Selby asked Mr. Pawelski if he could live with a different rate than 5% and she was also concerned about the businesses, both large and small - can they live with the rate increase? Mr. Pawelski stated that it is a matter of economics. They need this 5% to operate efficiently on. Wishing to be heard was Lyle Gardner of 532 5th Avenue N. W. He presented a letter that he:.had received from the Attorney Generals Office dated Sept. 16,.1986 informing him how to search out the procedure that made groups like SMMPA legal. Mr. Gardner stated that groups like SMMPA are here to stay and they raise rates to an unbelievable level. He is not in favor of the rate increase and not in favor of SMMPA. He is in favor of having our own private plant that is City owned and operated. He is also wondering if the so- called surcharge was legal. Mr. Pawelski stated that the charge was to pay for the meter installed and it is a legal charge. Alderman Hunziker stated that he is against the increase. He is in favor of looking at a lower percent. He stated that the City of Rochester is one. of 18 cities that belong to SMMPA. Rochester carries 42% of the bill. The City of Rochester only has one vote on SMMPA's board. He stated that the growth of the city has stopped but our bills haven't. Alderman Hunziker stated that the bills can be paid from the reserve money that the Public Utility has. Wishing to be heard was Jim Kuehl of 4815 Valley High Dr. and he is no, happy-withRochester Public Utility. Rochester Public Utility used eminent domain on his property and SMMPA had nothing to do with that. It is -noted that,the average customer's monthly bill for electricity will go up $2.32 to an ave. of $48.73 and the water will go up 33¢ to $6.83. Alderman McConnell also stated that the money spent by SMMPA is not necessary, such as salaries. Alderman Crawford stated that the public heeds to know that the rates will level off in 1993. It was the assurance that she needed at this time. Having no further di'scussion,vote was taken. Upon roll call vote, Aldermen Canfield, Crawford, Petersson and Solinger.and President Selby voted aye. Ayes (5), Aldermen Hunziker and McConnell voted nay. Nays (2), Motion carried. Having no further business Petersson moved, Sol' ger seco to,adjourr the meeting. Ayes (7), Nays (0).Motion carried ty Cler