December 3, 2018 - Council of the Whole - Substation/Mutual Aid

DECEMBER 3, 2018
6:00 P.M.
Mike Schwab, Mayor
Dale Fox, Council Member                           Sydney Radich, Council Member
Chuck Hawk, Council Member                    Andrew Hess, Council Member
Tom Hilliard, Council Member                    Dave Godwin, Council Member                
Kris King, Clerk-Treasurer                             Michael L. Miller, Village Administrator 
Ryan Swan and Ray Heitger were also in attendance.
The meeting was called to discuss two Electric Department topics.  The first part was a discussion on mutual aid.  Brewster currently participates in a mutual aid agreement through American Municipal Power (AMP).  The Village benefitted greatly from this when we were hit by a tornado in 2006.  So far, the only times we have assisted others is by assisting Beach City.  VA Miller has drafted a policy which outlines procedures and expectations for our Council and Employees should the Electric Department participate in a call out for mutual aid.  A Master Agreement has been signed with AMP.  VA Miller stated each employee would take a truck and only two employees can participate at a time.  A question was asked as to what would happen if the Village had an issue while two employees were out on a call.  VA Miller stated that we then ask for mutual aid from a nearby participant in the program (Orrville, Wadsworth, etc.).  When asked how this would benefit the Village for our employees to go out on a call, VA Miller explained that their wages and equipment costs are paid by the requesting participant.  No one can participate without the proper approval as outlined in the policy.
The meeting moved on to cover the proposed Substation Upgrade/Expansion Project.  The Village is currently in the middle of a rate study that will be finalized by Courtney and Associates.  Any changes to the rates will not go into effect until July of 2019.  The one change that is being projected is an adjustment to the PCA to spread the formula from three months to six months to smooth out any spikes.  Councilman Godwin asked why rates are being raised so far ahead.  VA Miller stated that there may not be a raise in rates, just a restructuring.  Also, if there is a rate increase it would be minimal.  VA Miller went on to discuss the financing of the project, the approximate costs associated with the financing of the project, and the preliminary financing time table.  Councilman Godwin then asked why we don’t use the funds we have instead of borrowing the money.  VA Miller explained how much just one of the large transformers going out would cost.  It would be irresponsible not to have funds in case of an emergency.  As an AMP community, we are asked to keep six months of operating expenses in our fund in order to comply with bond rating requirements.  Councilman Hilliard brought up changing the tiers.
Meeting adjourned at 6:24 pm.
Kris King, Clerk-Treasurer