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HomeMy WebLinkAbout2000 12 04 Regular F General Fund COMMISSION AGENDA ITEM F CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X 11/27/2000 Meeting MGR. (J IDEPTc.CY Authorization REQUEST: The Parks and Recreation Department is requesting that The City Commission approve an appropriation from the general fund. Fund balance of $14,400 is required to cover the projected increase in utility costs due to previous under-billing from Florida Power Corporation for FY 2000/01. PURPOSE: The purpose of this item is to provide the necessary funding to cover increased utility costs due to previous under-billing by Florida Power Corporation. ISSUE ANALYSIS: . During the week of September 25,2000, Florida Power discovered that one phase of a three phase meter was not making proper contact at Central Winds Park. The meter provides power to the overhead sports fields and Parks and Recreation offices. This did not affect electrical service, but did cause the meter to read only about 1/3 to 1/2 the actual usage since 1992. . Florida Power, by Florida Public Service Commission Statute 25-6.106, may only re-bill for a maximum of 12 months. Their re-bill amount is based on 1/3 from their field technician estimates rather than the 1/2, which the actual usage indicates. The final re-bill amount is $6,335. Per the finance director, it must be paid from utility expense from the FY 2000 utility expense budget, as the services were incurred during FY 2000. 1 . Based on the projected increased in Parks and Recreation utility expenses for FY 2000/01, the Finance Department recommends an appropriation from the general fund in the amount of $14,400 for FY 2000/01. The current budget for utility expenses is $42,500. The appropriation would increase the utility expense budget to $56,900 for FY 2000/01. . A representative from Florida Power is present to address any questions. FUNDING: This request is not budgeted and will require $14,400 appropriation from fund balance. Sufficient funding is not available for increased utility costs in the Parks and Recreation budget. Funding from fund balance is needed. RECOMMENDATION: The Parks and Recreation Department is recommending that $14,400 in funding be appropriated from the general fund, balance for increased Parks and Recreation utility costs. IMPLEMENTATION SCHEDULE: December 2000. Transfer $14,400 from fund balance to Parks and Recreation Utility Account (7200-54310) for FY 2000/01. ATTACHMENTS: Attachment #1 Attachment #2 Staff Memos Letter from Florida Power and supporting information COMMISSION ACTION: Agenda7S 2 ATTACHMENT III City of Winter Springs Memo To: Chuck Pula From: Louise Frangoul Date: 11/13/00 Re: Florida Power Bill Based on a review of the attached correspondence regarding additional monies owed for past Florida Power services, I will be charging $6,335 in utility expense to FY 2000. In an effort to minimize additional recordkeeping, I am requesting that the charge appear in full on the next bill versus spanning it over FY 2001 and FY 2002. FY 2001 Parks and Recreation utility expense will require an additional appropriation from fund balance as we do not have sufficient monies budgeted to cover the revised estimate of total cost. Please prepare an agenda item requesting the appropriation in the amount of $14,400. . Page 1 City of Winter Springs Memo To: Louise Frangoul From: Rita Hartman cc: Chuck Pula Date: 11/10/00 Re: Florida Power Bill for Parks Department Chuck Pula had sent you a memo regarding the back billing of the electric service at Central Winds Park which detailed that we had been under billed for our electric service at Central Winds Park and the Office building at the park since 1992. You had asked me to review the billing and speak to their representative to get a feeling for how the amount was calculated. I spoke to Herb Grant, Florida Power's Investigator and have verified that we are in fact being billed a very fair amount based on the most recent 30 day reading period. I would recommend that we go ahead and pay the back billed amount as per the letter keeping in mind that we have an option to spread the amount over a 12 month period. Per the current regulation, they can only bill us for the most recent twelve-month period therefore, we will not be liable for electricity used prior to the past twelve months. Chuck had also requested that we make a recommendation on how to fund the increase in the bill for the fiscal year 2001 budget year, After speaking to Mr, Grant at length, he is estimating that the liability for the current year will be approximately $1,200 per month higher or an annual increased amount of $14,400 over what is currently budgeted. I would recommend that Chuck Pula request the additional budget dollars as an appropriation from fund balance from the commission as we do not currently have excess utilities budgeted to cover that large of an increase in our current expense budget for utilities. Of the $6,654.27 back billing, $6,335,27 is related to fiscal year 2000 and will be accrued as an amount payable to Florida Power as of September 30, 2000. We are unable to amend our fiscal year budget after year end to cover this unanticipated expense . Page 1 ATTACHMENT 112 ..... .. ..... i...:....., Florida \\,-::: Power ....:.... COR P 0 RAT ION ....... November 9,2000 City of Winter Springs 1126 E Highway 434 Winter Springs, FI. 32708 Attn. Chuck Pula Re:Acct: 31921 58314 Dear Mr. Pula, As a follow up to our prior discussions I wanted to give you an explanation of the problem found with the ball field meter. The Florida Power field meter technician, found that the meter was partially registering while servicing this account. Further investigation determined that the "c" phase potential wire was not energized. The potential tap was not making contact. This problem has been on going since the meter was activated in 1992. This caused partial registration of the meter but did not effect the electrical service provided to the ball fields. As previously noted the Florida Public Service Commission only allows us to rebill for a period of one year. A spreadsheet showing the recalculated billing for each month is enclosed. The rebill amount of $6,654.27 is for eleven and one-half months. Though your actual usage indicates it is closer to one-half, the rebill was based on one-third, Our field meter technician had noted that he had left a message to indicate he thought the rebill would be one-third more of the prior usage. Due to this we rebilled based on the one-third rather than the actual findings of one-half. This rebilling is in accordance with FPSC 25-6.106 and a copy has been enclosed for your review. As you requested I have enclosed a projected estimate for 2001. Very truly yours. #4~ Herb Grant Revenue Protection Investigator GENERAL OFFICE: 3201 Thirty-fourth Street South. P,O. Box 14042.51. Petersburg. Florida 33733 . (813) 866-5151 A Florida Progress Company Rebill for City of Winter Spgs Acct #31921-58314 Bill Month Org KWH Org KW Org Bill Payment I Rebill KWH Rebill KW Rebill Amt Difference Nov-99 14122 192 $1,093,31 $1,093,31 21160 284 $1,631.85 $538.54 Dec-99 16514 187 $1,276,35 $1,276,35 24748 284 $1,906.41 $630,06 Jan-OO 10028 173 $780,70 $780,70 15042 284 $1,164.69 $383,99 Feb-OO 10350 99 $805,36 $805,36 15502 284 $1,199,92 $394,56 I Mar-OO 14260 198 $1,104,80 $1,104.80 21390 284 $1,650.85 $546,05 Apr-OO 17158 207 $1,326,74 $1,326.74 25714 284 $1,982.00 $655,26 May-OO 19228 205 $1,485,27 $1,485.27 28842 284 $2,221.56 $736,29 Jun-OO 18078 203 $1,397,20 $1,397.20 27094 284 I $2,087,69 $690.49 Jul-OO 16192 125 $1,303,39 $1,303,39 24288 284 $1,948,74 $645,35 ) Aug-OO 15272 191 $1,230,06 $1,230,06 22908 284 $1,838.73 $608,67 Sep-OO 12696 179 $1,024.72 $1,024,72 19044 284 $1,530.73 $506,01 Oct-OO 27784 284 $2,227.42 $2,227.42 31786 284 $2,546.42 $319.00 ~ Totals 191682 $15,055.32 I $15,055,32 I 277518 $21,709,59 $6,654,27 (, ~ 3 5", J 7 To F'( 'I'I/ao ~o f'l O()/ol Projected Estimate for 2001 Bill Month Nov-OO Dec-OO Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-O 1 Oct-01 Est. kwh 33396 30360 29348 32384 29348 33396 30360 33396 30360 29348 33396 28336 Estimated $2,180.96 $2,568.15 $2,260.30 $2,492.82 $2,260.30 $2,570.33 $2,337.82 $2,570.33 $2,432.74 $2,352.08 $2,674.75 $2,271.40 Totals 373428 $28,971.98 This estimate was based on FPC's current rates and your current usage of 1012 KWH per day. 7/t1? {.p~ -f-o n ({ 0- f1 i J E j/J'c fnl c.. [;'o-f\ V I cd' //P;l/~ ft.6/1 c- S;;U.. ,It c.lT' C'" I-A M !c'i /(1'-1 Sup~. No. 180 ELECTRIC SERVICE CHAPTER 25-6 (11) Each utility shall submit, as a tariff item, a procedure for discontinuance of service when that service is medically essential. Specific Authority: 366.05, F.S. Law Implemented: 366.05(1), F.S. History: New 2/25/76, Amended 2/3/77, 2/6/79, 4/13/80, 11/26/80, 1/1/91, 1/11/93. 25-6.106 Underbillings and Overbil1ings of Energy. (1) A utility may not backbill customers for any period greater than twelve (12) months for any undercharge in billing which is the result of the utility's mistake. The utility shall allow the customer to pay for the unbilled service over the same time period as the time period during which the underbilling occurred or over some other mutually agreeable time period. Nor may the utility recover in a ratemaking proceeding any lost revenues which inure to the utility's detriment on account of this provision. This rule shall not apply to underbillings provided for in Rules 25-6.103 or 25-6.104. (2) In the event of other overbillings not provided for in Rule 25-6.103 the utility shall refund the overcharge to the customer for the period during which the overcharge occurred based on available records. If commencement of the overcharging cannot be fixed, then a reasonable estimate of the overcharge shall be made and. refunded to the customer. The amount and period of the adjustment shall be based on the available records. The refund shall not include any part of a minimum charge. (3) In the event of an overbilling, the customer may elect to receive the refund as a credit to future billings or as a one-time payment. Specific Authority: 366.05(1), F.S. Law Implemented: 366.05(1), F.S. History: New 4/13/80, Amended 5/3/82. 11/21/82. 25-6.107 - 25-6.108 Reserved 25-6.109 Refunds. (1) Applicability. With the exception of deposit refunds and refunds associated with adjustment factors, all refunds ordered by the Commission shall be made in accordance with the provisions of this rule, unless otherwise ordered by the Commission. (2) Timing of Refunds. Refunds must be made within ninety (90) days of the Commission's order unless a different time frame is prescribed by the Commission. Unless a stay has been requested in writing and granted by the Commission, a motion for reconsideration of an order requiring a refund will not delay the timing of the refund. In the event that a stay is granted pending reconsideration, the timing of the refund shall commence from the date of the order disposing of any motion for reconsideration. This rule does not authorize any motion for reconsideration not otherwise authorized by Chapter 25-22, Florida Administrative Code. (3) Basis of Refund. Where the refund is the result of a specific rate change, including interim rate increases and the refund can be computed on a per customer basis, that will be the basis of the refund. In such cases, refunds may be made by either recalculating the affected customer's bill or by applying an appropriate refund factor to the consumption used by the customer during the refund period. However, where the refund is not related to specific rate changes, such as a refund for overearnings, the refund shall be made to customers of record as of a date specified by the commission. In such case, refunds shall be made on the basis of consumption. Per customer refund refers to a refund to every customer receiving service during the refund period. Customer of record refund refers to a refund to every customer receiving service as of a date specified by the Commission. (4) Interest. (a) In the case of refunds which the Commission orders to be made with 6-64