CC Minutes 04/14/2003 - Laserfiche WebLink

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 CASSELBERRY CITY COMMISSION Minutes of April 14, 2003 - Special Meeting/Workshop VERBATIM TRANSCRIPT Page 2 of 79 BRUCE PRONOVOST: This evening we have on our agenda, is really the second in a series, or actually probably the third in a series of workshops and special meetings that we've had with regard to who shall provide electric service to the City of Casselberry. As for members of the audience who may not be aware; the City of Casselberry has had a franchise agreement with Florida Power Corporation which expired in 2001. Although the City and Florida Power entered into negotiations around 97/98, those negotiations were not successful in producing another fi.anchise agreement. While those negotiations were going on, there became a stumbling block with a key clause in the contract which was the purchase option at the end of the thirty year franchise agreement, the City had the option to purchase the system, and certainly that's a pretty significant asset. And the stumbling block with the City was where Florida Power's position was that clause in the contract was, would not be in the future contract, and when the City asked the question what will we get for not having that in return for giving up that asset, the answer was nothing and in fact the clause in the contract was; Florida Power would not adhere to that. So, some litigation ensued. The long of the short is the City prevailed with those law; in that litigation, at considerable expense to the City and determined that the price of the system would be 22.3 million dollars. Now, the City has undertaken several goals. One, on behalf of its citizens, the first goal is how can we improve Casselberry? How can we ensure that our citizens are paying a fair, equitable rate for high quality service? And of course now we're into the system with litigation costs and we've also requested that the City be made whole. We had another workshop about a month ago. We had proposals fi.om private enterprises who had an interest in providing electric service to the City. Those private enterprises were one, Florida Power, and also a company out of California, ENCO, who made proposals to the City. This evening, we are going to hear presentations from municipally owned utilities. Kissimmee Utilities and also Orlando Utilities Commission. And after that we'll have a staff presentation, almost a decision tree, if you will, in terms of what are the options that are available to the City and then we can move forward with that. So, having said all that, the first presenter will be Kissimmee Utility Authority. KEN DAVIS: Mr. Mayor and Commissioners, thank you for the opportunity to be here tonight. I'd like to start; my name is Ken Davis. I'm Vice President of Engineering and Operations with KUA and I'd like to extend apologies fi.om our President and General Manager, Jim Welch, which was, who was unable to be here tonight due to a prior commitment. Since Jim's not here, I'll be pretty much giving most of the presentation, but we did bring along Ben Sharma, which is our Vice President of Power Supply, will talk briefly about some power supply options. Mike Geraghty, our Vice President of Customer Service and Marketing will talk about some of the