City to review electric rate structure while also looking for efficiencies

MARK SCHUMANN

Electric rates cut 4.2 percent, operating efficiencies to be reviewed

Customers of Vero Electric will soon see a reduction of 4.2 percent in their bills. The rate cut, recommended by City Manager Jim O’Connor and unanimously approved by the City Council Tuesday, will go into effect June 1.

In proposing the second rate reduction of 2014, O’Connor explained that growing demand for power and lower fuel costs add up to a more profitable electric system. O’Connor said he is confident that even with the rate cut the City will be able to increase its electric reserve fund by $900,000 during the current fiscal year. The fund is now $30 million, O’Connor explained, which represents an 86-day operating reserve.

In addition to the almost-immediate rate cut, the Council also approved Mayor Richard Winger’s proposal for a broad-ranging study of the City’s electric rate structure. Stressing the importance of remaining focused on lowering rates, Winger proposed City staff work with an outside, “third party” to look for ways of running the electric system more efficiently. Those options may include decommissioning the power plant, which is operating at a loss of some $4 million a year.

Under questioning from Councilwoman Pilar Turner, O’Connor supported conducting a rate structure study and system optimization review. Much has changed in power use trends since 2009 when Vero Electric’s rate structure was last reviewed, O’Connor said. Connection and reconnection charges, rate tiers and possible peak use charges will all be up for consideration.

Bar hours extended to 2 a.m.

Persuaded by local restaurant and bar owners they are loosing business when customers head south to party for another hour, the Council unanimously approved extending to 2 a.m. the last call for alcoholic beverages in the city’s restaurants and bars.

In a compromise proposed by Vice Mayor Jay Kramer, the Council also approved sunsetting the extended drinking hours effective June 15, 2015. Kramer explained that he wanted to give the extended drinking hours a one-year trial.

Police Chief David Currey said he could support the extended drinking hours. The Police Department, Currey said, works will with local restaurant and bar owners. Currey stressed that regardless of what time in the day or night someone is drinking, it is important to drink responsibly.

Additional $67,000 approved for demolition costs

Airport Director Eric Minger reported that demolition crews clearing away an old restaurant on airport property unearthed a 3-foot-deep concrete slab that will cost an additional $134,000 to remove. With the state’s agreement to fund half the cost of removing the slab, Minger sought and the Council approved the additional $67,000 needed to complete the project. Councilman Craig Fletcher remembered that the thick concrete slab once served as the foundation of an incinerator operated by the Navy during World War II, when the airport served as a training base.

Public encouraged to participate in Memorial Day ceremonies

Veterans Memorial Island Sanctuary Advisory Committee members Tony Young, John Michael Matthews, Alma Lee Loy, and Ken Daige. Barbara Fallon, Joel Herman and Curtis Paulisin also serve of the committee.

Members of the Veterans Memorial Island Sanctuary advisory committee came before the Council to encourage the public to attend Monday’s Memorial Day ceremonies. The event will mark the 50th anniversary of the founding of Veteran’s Memorial Island Sanctuary. Veterans Day ceremonies are set to begin promptly at 8:50 a.m. on Veterans Memorial Island. Attendees are encouraged to arrive by 8:30 and to bring folding chairs.