HomeMy WebLinkAbout1998-04-09-Utilities Committee MinutesMINUTES OF THE APRIL 9,1998 UTILITY COMMITTEE MEETING
The April 9,1998 Waukee Utility Committee meeting was called to order at 7:00 PM by
Chairman Forret.The following members were present:Olson,Forret,Wiesley,Lawson.
Absent:Pulliam,Schlaefer,Schmidt.
GAS PRICING -LOCKING IN OF WINTER RATES
Bill Huston of U.S.Energy presented the recent history of the gas prices and the future projection
of what gas prices were expected to do.He told the Committee that the gas prices were very volatile.
His theory is that instead of being guided by the laws of supply and demand,gas prices were being
influenced by Wall Street and other investors.The average summer prices are higher than they have
ever seen,and future prices are acting irrationally.He does not believe that gas prices for next winter
will fall.
Motion by Wcisley,Seconded by Lawson to lock in winter prices for the months of November,
December and January in 1998/99 and 1999/2000.Motion passed 4-0.
FUTURE GAS CAPACITY
The Committee also discussed the City's future Gas Capacity and the options for securing the
capacity to meet the needs of the growing population.U.S.Energy will be reviewing options
including running a large line from the west and connecting to the east.
LOWERING OF MINIMUM WATER AND WASTEWATER RATES.
This issue was returned to the Utility Committee at the request of the Mayor.At the last meeting the
Utility Committee did not have very much time to review the issue and discuss the alternatives.After
some discussion,motion by Weisley to maintain the rates as they are.The motion died for lack of
a second.Motion by Olson,second by Lawson to lower the minimum water bill to $8.60/month and
the minimum wastewater bill to $5.16/month.Motion passed 3-1 (Weisley).
FORGIVING OF GAS LOAN TO GENERAL FUND
In 1995 the Gas Fund advanced the General Fund $195,000.City staff has asked that this loan be
forgiven.The rational is that the Gas Fund is fairly healthy and it does not appear that the General
Fund would be able to pay the Gas Fund back for a number of years.Forgiving the advance would
increase the unreserved cash balance of the General Fund by that amount and only affect the retained
earnings of the Gas Fund by that amount and not the available cash.The retained earnings are already
more than the yearly revenues for the Gas Fund.After a brief discussion,motion by Wiesley,second
by Olsen to forgive the advance.Motion passed 4-0.
Motion by Lawson,second by Olson to adjourn.Motion passed 4-0.