HomeMy WebLinkAboutresolution.council.028-96
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RESOLUTION NO.
(Series of
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1996)
A RESOLUTION APPROVING A CONTRACT BETWEEN THE CITY OF ASPEN,
COLORADO, AND KOPF & KOPF ELECTRICAL ENGINEERING FOR THE
ELECTRICAL ENGINEERING PORTION OF THE HOLY CROSS FRANCHISE
AGREEMENT ANALYSIS, AND AUTHORIZING THE CITY MANAGER TO EXECUTE
SAID CONTRACT ON BEHALF OF THE CITY OF ASPEN
WHEREAS, there has been submitted to the City Council a
contract between the City of Aspen, Colorado, and Kopf & Kopf
Electrical Engineering, a copy of which contract is annexed
hereto and made a part hereof.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ASPEN, COLORADO:
Section 1
That the City Council of the City of Aspen hereby approves
a contract between the City of Aspen, Colorado, and Kopf & Kopf
Electrical Engineering for the electrical engineering portion of
the Holy Cross franchise agreement analysis, a copy of which is
annexed hereto and incorporated herein, and does hereby authorize
the City Manager to execute said contract on behalf of the City
of Aspen.
Dated:
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, 1996.
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John S. Bennett, Mayor
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I, Kathryn S. Koch, duly appointed and acting City Clerk do
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certify that the foregoing is a true and accurate copy of that
resolution adopted by the City Council of the City of Aspen,
Colorado, at a meeting held ~~
, 1996.
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AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement made and entered on the date hereinafter stated, between the CITY OF
ASPEN, Colorado, ("City") and Kopf & Kopf Electrical Engineering, Colorado ("Professional").
For and in consideration of the mutual covenants contained herein, the parties agree as
follows:
1. Scope of Work. Professional shall perform in a competent and professional manner
the Scope of Work as set forth at Exhibit "A" attached hereto and by this reference incorporated
herein. professional agrees not to undertake any work for Holy Cross Electrical Association, Inc.
during the period of this Agreement without the express written consent of the City.
2. Completion. Professional shall commence work immediately upon receipt of a
written Notice to Proceed from the City and complete all phases of the Scope of Work as
expeditiously as is consistent with professional skill and care and the orderly progress of the 'Work
in a timely manner. The parties anticipate that all work pursuant to this agreement sh;ll1 be
completed no later than September 30, 1996. Upon request of the City, Professional shall submit,
for the City's approval, a schedule for the performance of Professional's services which sl1all be
adjusted as required as the project proceeds, and which shall include allowances for periods Of time
required by the City's project engineer for review and approval of submissions and for approvals of
authorities having jurisdiction over the project. This schedule, when approved by the City, shall
not, except for reasonable cause, be exceeded by the Professional.
3. Payment. In consideration of the work performed, City shall pay Professional
Seventeen Thousand Two Hundred Dollars ($17,200.00). Professional shall submit, in !timely
fashion, invoices for work performed. The City shall review such invoices and, if they are
considered incorrect or untimely, the City shall review the matter with Professional within tell days
from receipt of the Professional's billing, the City understanding of the disposition of thel issue.
Professional's invoice shall be for the period ending the 25th day of each month. The invoice
should be received by the City's project engineer no later than the 1st of each month.
4, Non-Assignability. Both parties recognize that this contract is one for IJ4:rsonal
services and cannot be transferred, assigned, or sublet by either party without prior written <lOnsent
of the other. Sub-Contracting, if authorized, shall not relieve the Professional of any 'of the
responsibilities or obligations under this agreement. Professional shall be and remain. solely
responsible to the City for the acts, errors, omissions or neglect of any subcontractors officers,
agents and employees, each of whom shall, for this puroose be deemed to be an agent or employee
of the Professional to the extent of the subcontract. :rite City shall not be obligated to payor be
liable for payment of any sums due which may bft due to any sub-contractor.
5. Termination, The Professional or the City may terminate this Agreement, without
specifying the reason therefor, by giving notice, in writing, addressed to the other party, specifying
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the effective date of the termination. No fees shall be earned after the effective date of the
termination. Upon any termination, all finished or unfinished documents, data, studies, surveys,
drawings, maps, models, photographs, reports or other material prepared by the Professional shall
become the property of the City. Notwithstanding the above, Professional shall not be relieved of
any liability to the City for damages sustained by the City by virtue of any breach of this
Agreement by the Professional, and the City may withhold any payments to the Professional for the
purposes of set-off until such time as the exact amount of damages due the City from the
Professional may be determined.
6. Covenant Against Contingent Fees, The Professional warrants that s/he has nQt been
employed or retained any company or person, other than a bona fide employee working for the
Professional, to solicit or secure this contract, that s/he has not paid or agreed to pay any company
or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gifts
or any other consideration contingent upon or resulting from the award or making of this contract.
For a breach or violation of this contract without liability, or in its discretion to deduct from the
contract price or consideration, or otherwise recover, the full amount of such fee, commission,
percentage, brokerage fee, gift or contingent fee.
7. Independent Contractor Status, It is expressly aclmowledged and understood Iby the
parties that nothing contained in this agreement shall result in, or be construed as establishing an
employment relationship. Professional shall be, and shall perform as, an independent Contractor
who agrees to use his or her best efforts to provide the said services on behalf of the City. No
agent, employee, or servant of Professional shall be, or shall be deemed to be, the employee, agent
or servant of the City. City is interested only in the results obtained under this contract. The
manner and means of conducting the work are under the sole control of Professional. None of the
benefits provided by City to its employees including, but not limited to, workers' compensation
insurance and unemployment insurance, are available from City to the employees, agents or
servants of Professional. Professional shall be solely and entirely responsible for its acts and ;for the
acts of Professional's agents, employees, servants and subcontractors during the performancelof this
contract. Professional shall indemnify City against all liability and loss in connection with, and
shall assume full responsibility for payment of all federal, state and local taxes or contributions
imposed or required under unemployment insurance, social security and income tax law, with
respect to Professional and/or Professional's employees engaged in the performance of the services
agreed to herein,
8. Indemnification. Professional agrees to indemnify and hold harmless the City, its
officers, employees, insurers, and self-insurance pool, from and against all liability, claims, and
demands, on account of injury, loss, or damage, including without limitation claims arising from
bodily injury, personal injury, sickn,ess, disease, death, property loss or damage, or any other loss
of any kind whatsoever, which arise out of or are in any manner connected with this con~ct, if
such injury, loss, or damage is caused in whole or in part by, or is claimed to be caused in whole
or in part by, the act, omission, error, professional error, mistake, negligence, or other fault of the
Professional, any subcontractor of the Professional, or any officer, employee, representative, or
agent of the Professional or of any subcontractor of the Professional, or which arises out, of any
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workmen's compensation claim of any employee of the Professional or of any employee of any
subcontractor of the Professional. The Professional agrees to investigate, handle, respond to, and to
provide defense for and defend against, any such liability, claims or demands at the sole expense of
the Professional, or at the option of the City, agrees to pay the City or reimburse the City for the
defense costs incurred by the City in connection with, any such liability, claims, or demands. The
Professional also agrees to bear all other costs and expenses related thereto, including court costs
and attorney fees, whether or not any such liability, claims, or demands alleged are groundless,
false, or fraudulent. If it is determined by the final judgment of a court of competent jurisdiction
that such injury, loss, or damage was caused in whole or in part by the act, omission, or other fault
of the City, its officers, or its employees, the City shall reimburse the Professional for the portion
of the judgment attributable to such act, omission, or other fault of the City, its offiCtlrs, or
employees.
9. Professional's Insurance, (a) Professional agrees to procure and maintain,: at its
own expense, a policy or policies of insurance sufficient to insure against all liability, claims,
demands, and other obligations assumed by the Professional pursuant to Section 8 above.1 Such
insurance shall be in addition to any other insurance requirements imposed by this contract or by
law. The Professional shall not be relieved of any liability, claims, demands, or other obligations
assumed pursuant to Section 6 above by reason of its failure to procure or maintain insurance, or by
reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types.
(b) Professional shall procure and maintain, and shall cause any subcontractor of the
Professional to procure and maintain, the minimum insurance coverages listed below. I Such
coverages shall be procured and maintained with forms and insurance acceptable to the City. All
coverages shall be continuously maintained to cover all liability, claims, demands, an~ other
obligations assumed by the Professional pursuant to Section 8 above. In the case of any claims-
made policy, the necessary retroactive dates and extended reporting periods shall be procured to
maintain such continuous coverage.
(i) Workmen's Compensation insurance to cover obligations imposed by
applicable laws for any employee engaged in the performance of work under this contract, and
Employers' Liability insurance with minimum limits of FIVE HUNDRED THOUSAND
DOLLARS ($500,000.00) for each accident, FIVE HUNDRED THOUSAND DOLLARS
($500,000.00) disease - policy limit, and FIVE HUNDRED THOUSAND DOLLARS
($500,000.00) disease - each employee. Evidence of qualified self-insured status may be substituted
for the Workmen's Compensation requirements of this paragraph.
(ii) Commercial General Liability insurance with minimum combined single
limits I' of ONE MILLION DOLLARS ($1,000,000.00) each occurrence and! ONE
MII;LION DOLLARS ($1,000,000.00) aggregate. The policy shall be applicable to all
Ipremises and operations. The policy shall include coverage for bodily injury, broad form
property damage (including completed operations), personal injury (including coverage for
contractual and employee acts), blanket contractual, independent contractors, products, and
completed operations. The policy shall contain a severability of interests provision.
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(iii) Comprehensive Automobile Liability inSUTIUlce with ffi1illmum combined
single limits for bodily injury and property damage of not less than ONE MILLION
DOLLARS ($1,000,000,00) each occurrence and ONE MILLION DOLLARS ($1,000,00-
0.00) aggregate with respect to each Professional's owned, hired and non-owned vehicles
assigned to or used in performance of the Scope of Work. The policy shall contain a
severability of interests provision. If the Professional has no owned automobiles, the
requirements of this Section shall be met by each employee of the Professional providing
services to the City under this contract.
(c) The policy or policies required above shall be endorsed to include the City and the
City's officers and employees as additional insureds. Every policy required above shall be primary
inSUTIUlce, and any insurance carried by the City, its officers or employees, or carried i by or
provided through any insuTIUlce pool of the City, shall be excess and not contributory insu$ce to
that provided by Professional. No additional insured endorsement to the policy required above shall
contain any exclusion for bodily injury or property damage arising from completed operations. The
Professional shall be solely responsible for any deductible losses under any policy required above.
(d) The certificate of insuTIUlce provided by the City shall be completed by the
Professional's inSUTIUlce agent as evidence that policies providing the required coverages, ,condi-
tions, and minimum limits are in full force and effect, and shall be reviewed and approved !by the
City prior to commencement of the contract. No other form of certificate shall be used. The ~rtifi-
cate shall identify this contract and shall provide that the coverages afforded under the policies shall
not be canceled, terminated or materially changed until at least thirty (30) days prior written notice
has been given to the City.
(e) Failure on the part of the Professional to procure or maintain policies providing the
required coverages, conditions, and minimum limits shall constitute a material breach of cpntract
upon which City may immediately terminate this contract, or at its discretion City may procure or
renew any such policy or any extended reporting period thereto and may pay any and all p~miums
in connection therewith, and all monies so paid by City shall be repaid by Professional to City upon
demand, or City may offset the cost of the premiums against monies due to Professional from City.
(f) City reserves the right to request and receive a certified copy of any policy and any
endorsement thereto.
(g) The parties hereto understand and agree that City is relying on, and does not ~aive or
intend to waive by any provision of this contract, the monetary limitations (presently $150,000.00
per person and $600,000 per occurrence) or any other rights, immunities, and protections provided
by the Colorado Governmental Immunity Act, Section 24-10-101 et seq., C.R.S., as from time to
time amended, or otherwise available to City, its officers, or its employees,
10. City's Insurance. The parties hereto understand that the City is a member of the
Colorado Intergovernmental Risk Sharing Agency (CIRSA) and as such participates in the CIRSA
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Property/Casualty PooL Copies of the CIRSA policies and manual are kept at the City of Aspen
Finance Department and are available to Professional for inspection during normal business hours.
City makes no representations whatsoever with respect to specific coverages offered by CIRSA.
City shall provide Professional reasonable notice of any changes in its membership or participation
in CIRSA.
11. Completeness of Agreement. It is expressly agreed that this agreement contains the
entire undertaking of the parties relevant to the subject matter thereof and there are no verbal or
written representations, agreements, warranties or promises pertaining to the project matter thereof
not expressly incorporated in this writing,
12. Notice, Any written notices as called for herein may be hand delivered to the
respective persons and/or addresses listed below or mailed by certified mail return receipt
requested, to:
City:
Amy Margerum, City Manager
City of Aspen
130 South Galena Street
Aspen, Colorado 81611
Professional:
K?pf & Kopf Electrical Enj:ineers
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13. Non-Discrimination: penalty. No discrimination because of race, color, creed, sex,
marital status, affectional or sexual orientation, family responsibility, national origin, ancestry,
handicap, or religion shall be made in the employment of persons to perform seIVices under this
contract. Professional agrees to meet all of the requirements of City's municipal code, Section 13-
98, pertaining to non-discrimination in employment.
14, Waiver. The waiver by the City of any term, covenant, or condition hereof shall not
operate as a waiver of any subsequent breach of the same or any other term. No term, covenant, or
condition of this Agreement can be waived except by the written consent of the City, and
forbearance or indulgence by the City in any regard whatsoever shall not constitute a waiver !of any
term, covenant, or condition to be performed by Professional to which the same may apply and,
until complete performance by Professional of said term, covenant or condition, the City shall be
entitled to invoke any remedy available to it under this Agreement or by law despite any such
forbearance or indulgence.
15. Execution of Agreement by City. This agreement shall be binding upon all!parties
hereto and their respective heirs, executors, administrators, successors, and assigns. Notwith-
standing anything to the contrary contained herein, this agreement shall not be binding upon the
City unless duly execufed by the Mayor of the City of Aspen (or a duly authorized official in his
absence) following a Motion or Resolution of the Council of the City of Aspen authorizing the
Mayor (or a duly authorized official in his absence) to execute the same.
16.
General Terms.
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(a) It is agreed that neither this agreement nor any of its terms, provIsions,
conditions, representations or covenants can be modified, changed, terminated or amended,
waived, superseded or extended except by appropriate written instrument fully executed by the
parties.
(b) If any of the provisions of this agreement shall be held invalid, illegal or
unenforceable it shall not affect or impair the validity, legality or enforceability of any other
provision.
(c) The parties acknowledge and understand that there are no conditions or
limitations to this understanding except those as contained herein at the time of the execution hereof
and that after execution no alteration, change or modification shall be made except upon a writing
signed by the parties.
(d) This agreement shall be governed by the laws of the State of Colorado as
from time to time in effect.
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly
authorized officials, this Agreement in three copies each of which shall be deemed an original on
the date hereinafter written.
Dated: 7/;s-/tJb
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ATI'ESTED BY:
CITY OF ASPEN, COLORADO:
1M;."!" J)~
By:
SED !It /
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By:
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Exhibit "A"
Professional agrees to provide:
I. Tasks numbered 4, 6, and 7 in SVBK Consulting Group's proposal dated March
15, 1996 (attached).
2. Attendance at all meetings with SVBK Consulting Group and City of Aspen staff,
and City Council work sessions and public meetings.
SCOl'J:' or SU:'I''fCF,
The product or T;\sk J will be a revicw, \\lith input from the City St:dT, which discusses the
technical, legal and cconomic/linanciallaetors for the above listed options available to thc'City.
TASK.. - HlcVllcW OF FACILITIES UNDER CONSIDERATtON FOR ACQUIStTION
SV8K will perform a general review of those portions of Holy Cross's local elcctric distribution
system serving customers within and surrounding Aspen in order to gain an understanding of
the facilities under consideration for acquisition by the City. The system will be reviewed with
respect to its general design, construction and condition.
The starting point for evaluating potential distribution system expansion areas will be to identify
existing local Holy Cross transmission/distribution facilities_ This obvious first step is
sometimes the most difficult, depending upon the cooperation received from the utility that owns
the system. It is expected that detailed information on the existing power system will only be
available from Holy Cross. Absent infonnation from Holy Cross, it will be more difficult to
determine the existing system configuration, equipment sizing, feeder loadings, and so forth.
Without the timely availability of such data descriptive of Holy Cross's facilities, a limited field
inspection will be required to develop necessary system infonnation. It is also possible that the
City Electric Department may have the requisite data required for the study. SV8K will
interface with the City to minimize the need for perfonnance of an independent review of the
area(s) under consideration for acquisition. SVBK will use the following approach to identify
and inventory the components of the power system serving the potential Distribution Expansion
Areas in and around Aspen.
Direct Request/o Holy Cross - With the City's concurrence, SVBK will attempt to acquire
necessary distribution system, load and customer infonnation directly from Holy Cross_ SV8K
will review infonnation as is made available by Holy Cross, and will request additional data as
appropriate. It has been our experience in similar projects of this nature that, at best, utilities
assign such requests low priority and provide requested infonnation slowly. To minimize such
delays, SVBK will develop a comprehensive written list of data requirements and coordinate
with the City to accelerate the data collection process. SVBK strongly recommends persistence
in following up all such data requests.
Publicly A vai/able Information - It has been SVBK's experience that much of the information
required to identify and inventory the existing power system may be available through other
channels. SVBK will request FERC Fonn I and REA Form 7 type of data from Holy q:ross or
will attempt to obtain this information through other public channels. We will also seck publicly
available information through the Colorado Public Utilities Commission, and other state and
Cederal agencies with regulatory responsibility over Holy Cross.
Site Inspections - In order to identi Fyi and inventory the existing Holy Cross distribution
Cacilities under consideration Cor ",cqu:sition by the City, a site inspection will be accomplished'
as necessary to become acquainted with the nature of the existing system and to identify possible
problems which may be encountered in the City's proposed acquisition.
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Sell!'''- Or-SU,VICE
The best way to display existing power system information is on Inaps and tables. To pcrCorm
this task, SVl3lZ will attempt to obtain from Holy Cross, system onc-lillC diagrams concerning
local {~lcilitics, applicable design standards utilized in the development oCtile system serving the
Aspen area, as well as, information which indicates the age of its existing local t~lcilitics_
Tables and appropriate one-line routings will be prepared to complete the invcntory of the
system data, including a display of distribution system lines lengths, conductor and transformer
sizing, services, number of meters, street lighting, etc,
? VALUATION OF SYSTEM UNDER CONSIDERATION FOR ACQUISITI N
Dala a uired in the performance of Task 4, as well as information as. med to be accessible
from Ho Cross, should provide SVBK with the basic informatiol necessary to perform a
valuation 0' the existing Holy Cross distribution system area under consideration for
acquisition by 1e City_ SVBK assumes that one-line diagram of Holy Cross's local power
system will be av 'Iable with sufficient detail to permit reas able identification of the total
miles of distribution es, as well as the number and sizing 0 substation equipment, distribution
transformers, capacitor nks, fusing schemes, switche and disconnects, sectionalizets and
reclosers and other installed . stribution equipment. T number and age of poles, overhead and
underground conductor sizing d other items not s wn on Holy Cross supplied diagrams will
be developed from an examinatio f Holy Cros s physical plant inventory records, and other
such records as may be available, inc ding ty and County tax information.
Upon completing development of a s te inventory, existing Holy Cross facilities 'under
consideration for acquisition by th City w be categorized by age and type of plant
(transmission, distribution, genera, etc,). Based u n SVBK's review of Holy Cross physical
property records, historical an al renewals and repla ments expenditures and original cost
information for each inventor' d facility will be determine or inclusion in SVBK's valuation
database.
Utilizing the databa ,SVBK will develop a valuation of the existing oil' Cross system under
consideration for quisition by the City on the basis of (I) Replacement ost, (2) Replacement
Cost Less DelJ ,ciation, (3) Original Cost, and (4) Original Cost Less De eciation valuation
methodoloo' s. Additionally, SVBK will develop an estimate of Physical Sev ance Damages,
if an)', w 'ch could be claimed by Holy Cross in condemnation proceedings. 1-10 Cross' might
also cI m Stranded Investment damages should the City elect to condemn a pOr1i (5) of their
locaypower systcm. The issue of stranded investment is presently a volatile subject 'th respect
tOklectric utilities in the cour1s and at several state and federal regulatory agencies. S K will
~O\'ide a preliminary estimate of the magnitude of any potential claim for stranded inve ent
.' damages, if any, 1-1011' Cross might make,
TASK 6 - ENERGY AN1..>I'OWER REQUIREMENTS
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Task 6 represents an impOr1ant work element upon whose results will depend all other work
activities. Examples of "downstream" work elements which willmakc direct use of the' results
of the Task 6 analyses include the following:
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> Establishment of system power requirements;
>- Determination of revenue requirements; and
>- Pro Forma financial statements.
The objective of Task 6 will be to develop the required customer energy consumption (kWh)
and system peak load (kW) projections needed as input to other work activities.
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Sub-Task A: Establish Energy & Power Requirements
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In order to establish the future energy and power requirements of Aspen electric users, including
those located in the potential Distribution Expansion Areas, the first work element to be
performed will be to gather available data pertaining to area demographic and economic tre'nds;
and the current and anticipated number of customers and customer energy usage levels (by
customer group andlor rate class) within the City's existing service area and in the areas under
consideration for acquisition by the City. Specific data to be collected and incorporated into a
computerized data base, to the extent available, will include:
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U.S. Census data such as population, households, commercial/industrial establishments
and employment by census tract for census years 1980, 1990, and 1994 (as available);
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Data available from City sources, including numbe, of customers served by other
municipal functions (e.g. water service), voter registration by district, and the results of
other City sponsored studies dealing with municipal water service, land use studies,
highway planning studies, etc.; and
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Input from City planners regarding growth trends by geographical region.
Using the above information for as many historical years as are available (ten years of historical
data would be preferred), to the extent practicable models will be developed that esta:blish
statistically valid relationships between City demographic and economic trends and the number
of electric customers and energy consumption levels. These models will then be used to project
electric energy sales (kWh) over the planning horizon.
Sub-Task B: Estimate Distribution System Losses
SVBK will develop estimates will of electric system distribution losses. It is anticipated th~t the
City Electric Department can provide SVBK with historical loss information which will be
utilized for projection of future distribution system losses_ Further, owing to our understanding
that the characteristics of customer load and distribution system design par~meters of the!areas
undel consideration for acquisition from Holy Cross are similar to Aspen's system, it is
anticipated that Aspen loss data can be utilized for projection c:f losses for the potential.
distribution areas. To the extent data from Holy Cross is available for this analysis, it wJI be
used. [n the event that such information is not available, use will be made of industqf averages
relating customer mix and miles of distribution lines to distribution system losses_
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Suh-Task C: Estimate Total Ellergy & Pml'cr Requirements.
The forecasts of customers and energy consLlmption (kWh) will serve as lhe basis Cor estimating
total energy and power requirements for the City including the areas under consideration for
acquisition. Estimated distribution system losses will be added to the system sales projections,
thus arriving at projections of system energy requirements. Total system energy requirements
will then serve as the basis for projecting system load requirements (KW). System load
projections will be bascd on load factors developed from Holy Cross and City data or, in the
absence of such information, on representative load factors from municipal systems which have
similar characteristics and comparable mixes of residential, commercial and industrial loads.
TASK 7 - REQUIRED FACILITY IMPROVEMENTS
[n order to determine the impact of the proposed service area acquisitions on Aspen municipal
electric system customers, it is necessary to project the future costs associated with necessary
improvements to both the existing City distribution system and the acquired distribution system
expansion areas in order to insure the ability of the system(s) to serve both growtb in customer
load and in order to insure ongoing provision of reliable electric service.
It is likely tbat Holy Cross may rcfuse to provide load data on the basis of maintaining
confidentiality. Thus, one potential problem which may be encountered in evaluating necessary
power system improvements will be the determination of how much load is presently supplied
to local Holy Cross customers. SVBK will request load data,.however if this is not available,
it will be necessary for SVBK to make independent projections of existing system load on the
basis of customer types and typical usage patterns. Projections of customer energy consumption
and system loads will be developed in Task 6.
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Once tbe existing load level is determined, the next step will be to make a projection of future
system load requirements including the Distribution Expansion Areas_ It has been SVBK's
experience that residential development can be reasonably projected on the basis of available
land and current zoning. Future long-term commercial and industrial development will be
difficult to accurately predict and will be dealt with on a case specifIC basis.
Owing to our understanding of the nature of the areas being considered for acquisition, SVBK
believes that the City Electric Department may be able to provide information concerning the
costs associated with future upgrades of both the existing distribution system and the potential
expansion areas. To the extent possible, SVBK will utilize such information in projecting future
upgrade requirements and costs. Should such information not be available, we will detc~rnine
recol11r(lended facility improvements using standard utility planning criteria. After cstablisbing
loads and suitable planning criteria, SVBK will evaluate the existing distribution systefT1.
T A . - POWER SUPI'L Y OPTIONS AND S
Power supply costs r sent 'ingle largest cost component for a ,Municipal system. The
City present ceives power from threc sources: City-owlJcd tiydroelectric generation,
~'ea Power Administration ("WAPA"), an unicipal [[ectric Agen:cy of
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