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HomeMy WebLinkAboutORDINANCE 0199-1971CITY OF KENAI, ALASKA ORDINANCE NO. 199-71 AN ORDINANCE of the City of Kenai, Alaska, providing for the submission to the qualified electors of the City at a special election to be held therein on 3 Au~ust~ 1971 of a proposition of whether the City should enter into an agree- ment with Homer Electric Association, Inc. which would provide for the operation of the City's electric system by Homer Electric Association, Inc. and would further provide for the transfer of the ownership of the electrical system from the City to Homer Electric Association, Inc. upon the successful consumation of the agreement and would authorize, as a part of such agreement, a franchise or permit wherein Homer Electric Association, Inc. would be authorized to construct, direct, operate and maintain in, upon, along, across, above, over and under the streets, alleys, public ways and public places now laid out or dedicated and all extensions thereof and additions thereto in the City, poles, wires, cables, underground conduits, manholes and other electric fixtures necessary or proper for the maintenance and operation in the City of an electric distribution system and wires connected therewith and declaring an emergency. WHEREAS, the City has established and is presently maintain- ing and operating a municipal electric power system, and in connection therewith owns and operates properties for the purchase, transmission, distribution, supply and sale of electric power and energy; and is engaged in the business of selling and supplying electric power and energy to residential, commercial, industrial and governmental con- supers within and about the City of Kenai, Alaska; and WHEREAS, Homer Electric Association, Inc. (hereinafter called "HEA"), as an electric cooperative created and existing under the laws of the State of Alaska, engages, among other utility activities, in the business of purchasing, transmitting, distributing, supplying, and selling electric energy within the State of Alaska; and -- ]. W~EREAS, HEA's electrical system is or can be inter- connected with the system of the City for the purpose of furnishing standby electric power~ and WHEREAS, the City Council of the City of Keriai ("Council") deems that the operation by ~A of City's electric system would be beneficial to the City and to City ts users and consumers of electric energy; and WHEREAS, the Council has resolved that such operation of the Cityts electric system can be accomplished by means of a~operating agreement between the City and H~; and WHEREAS, the Board of Directors of HEA has determined that it is to the interest of HEA that an agreement should be entered into for the operation of the City's electrical system un, er the te~1~s and conditions hereinafter set forth~ and WHEREAS, the parties have reached a basic understanding concerning the rems and conditions relative to the transfer of the operatiOn and management of the electric system to HEA and the conveyance of the City's electrical system to HEA and the City Council desires to have the voters approve their entry into such Agre~ent within the guidelines set forth herein~ and '~EREAS, the Board of Directors of HEA desire to have a franchise or permit to operate within the City of Kenai and the Coun~l has resolved that such a franchise or permit should be granted as is more fully set forth hereinafter~ and W~EREA$, the charter of the City requires that the question of whether the City should enter into the Agreement for the operation and transfer of its electric system to HEA and whether as a part of such Agreement a f£anchise or permit to operate an electrical distribution system should be granted to HEA should be submitted to the qualified electors of the City for their ratification or reJection~ NOW, THEREFORE BE IT ORDAINED by the Council of the City of Kenai, Alaska as follows~ Section 1. 1. The "System' means all tangible properties and property rights which, (as of the effective date of the Agreement} are being used by the City for, or are useful for, the transmission and distribution of electric energy and power within the 1Lmits of the city and in such area adjacent thereto as may be presently served by said System. Said tangible property shall include real property, rights-of-way, easements, poles and pole lines, crossa~ms, sub-statio~s, transfomers, station equipment, meters, and other tangible property of every kind and description which are now used, owned and operated by the City in the operation of said System, together with any and all additions, betterment~; improvements and extensions thereof which may hereafter be acqui~ed'andmade a part of said System under the terms of this agreement~ the System shall also include all rights and obligations which th~ ~ity shail have under that certain contract existing between the'City and Consolidated Utilities, Ltd., dated September 11, 1963~ covering the generation by Consolidated and the purchase by the city of electric energy. The aforesaid definition of the System shall not include cash in the Revenue Fund of the System as of the effective date of the agreen~nt, nor shall it include any of the funds, securities, investments or assets in any of the Bond Redemption Funds or Reserve Accounts of the Bond Redemption Funds or any sinking fund pertaining thereto, provided, however, that funds, securitie~, investments or assets in any such Bond Redemption Funds, Reserve Accounts or sinking funds shall be held and applied by the City for the purpose of redeeming Electric Light and Power Bonds of the City as herein defin,d in accordance with the provisions of said bonds and the ordinances of the City. 2. 'Outstanding Bonds' shall mean the City of genai, Alaska Electric Light and Power Revenue Bonds issued as follows~ the 1963 City of Kenai, Alaska, Electric Light and Power Revenue Bonds in the original principal a~ount, of $425,000, authorized by Ordinan~e No. 54 of the City, passed and approved on October 10, 1963~ the City of Kenai, Alaska, Electric Light and Power Revenue Bonds, 1964, in the original principal a~ount of $25,000, author- ized by ordinance No. 70 of the City, passed and approved on the 26th d~ O~ August, 1964~ the City of Kenai, Alaska, Electric Light and Power Revenut Sonds, 1967, in the original principal a~ount of $300,000, authorized by Ordinance No. 124 of the City, passed and'approved on September 20, 1967~ the City of Kenai, Alaska, Electric L~ght and Power Revenue Bonds, 1969, An the original principa1'amount of $25,000, authorized by Ordinance No. 174, passed and approved February 4, 1970~ the City of Kenai, Alaska, Electric L~ght and Power Revenue Bonds, 1970, An the original principal amount of $275,000, authorized by Ordinance No. 180 of the City, passed and'approved on May 20, ~970. Attached hereto, marked Exhibit C, is a Schedule showing (1) the total amount of outsta~ding indebtedness upon each of the aforesaid Electric Light and Power Revenue Bond issues, and (2) the amounts of principal and interest payments required to be made each year hereafter upon each such issue of revenue bonds from the date hereof to the final maturity date of the bon~s of each such issue. 3. The 'Kenai 1963 Electric Light and Power Revenue Fu~d" shall mean the fund of that name created by Ordinance No. 54 into which are paid all gross earnings and revenue derived by the City from the operation of its System and all additions and improvements thereto and extensions thereof. - 4 - Section 2. The City shall, if approved by the voters, at the special election herein provided for, enter into an Agreement (hereinafter Agreement) with HEA which Agreement shall provide substantially as follows= 1. For HEA to manage and operate the System for and on behalf of the City cf Kenai. 2. For the maintenance of the Kenai 1963 Electric Light and Power Revenue Fund as a trust fund for the payment of the Outstanding Bonds. 3. For HEA to assume and agree to perform all of the services and to provide all supplies and materials necessary to maintain and operate the System and for HEA to covenant and agree to maintain the System in good condition and repair and to meet all of the covenants heretofore made by the City with the holders of the Outstanding Bonds. 4. For HEA to interconnect its existing electrical distribution system with that of the City to the extent that the same may become necessary to provide continuous uninter- rupted service for the inhabitants of the City of Kenai. 5. For ILFA to provide /or additions, improvements, betterments and extensions of the system which, in its Judg- ment, will provide for the full, complete, efficient ope~ation of electric power, light and energy as may be required from time to time by such consumers and users. 6. For HEA to pay into such accounts as may be created by the Agreement, sufficient sums to pay the Outstanding Bonds, maintenance and operation costs, protection of all reserve accounts and payment of any other necessary costs and expenses for maintaining and operatln~ the System and for the payment of any balance to - 5 - HSA as reimbursement for wholesale po~er coata (a~ defined in the~qreement}~ its normal co6~ of maintenance and operat£on~ coats of renewals and replacements of tho System and additions, and betterments thereto and as payment for the services of USA rendered tn the manaqement and operation of the System. 7. For USA to p&y to the City upon the ef£ectivo date of the Aqreement (1) a sum tn cash equal to the money in value on such date of the Investments in the several reserve accounts now held in the several bond funds, (2) a sum in cash sufficient to re~mbm~se the City for moneys expended from the City General Fund for purposes o£ the system and (3~ a sum equal to the value o~ all personal property used in the operation of the System which may be payable accordinq to the ~rms of a neqotiable note In equal monthly installments to bear Interest at the rate of 6% per ~nnumupon d~mintahinq balances. 9. For ~iF~ to account to the City for the oper~,~as a£ the System during each month it operates the System, Includ- Ing an Itemized statement of all receipts and disbursements t~cludLng amounts expended £or maintenance, labor cost, addi- tions~ imp~ovements, betterments and extensions. The City shall reserve the rlqht to inspect books and records o~ USA 9. For lISA to utilize the oame btllinq policies and procedures as have heretofore pertained to the operat£on of the System by the City. to operate an electical distribution system ~ithin the City for a period of 30 yoa~s from the effective date o[ thi~ Aqreement. 11. For HSA to make any and all renewals and replace- ~2~, ex2~ns~o~8~ ~ddit[ons~ imp~ovemonts, and betterments -6 - to the System in accordance with the sa~e standards and criteria which BSA would operate its own electric properties and business, 12, For BSA to render an accounting to the City each year, showing in reasonable detail all retirements and renewals, replacements, additions, bet=erments, extension and improvements to the System ~ade during the preceding calendar 13o For HEA to seek and secure the approval of the administrator for the Rural ElectrificationAdmin£stzation Department of Agriculture, United States of America to the Agreement. 14. For ilEA to endeavor to take into its employ al1 of the employees of the City's electrical system, excepting supervisory ~mpioyees, at the ~me wage scale which ~re applicable to present employees of HSA in the same classification of employment and the seniority n~asu~ment by their continuous employment by the City immediately prior to the beginning of the Agreement. 15. For BSA to base a working crew within the City sufficient and ade..~uate to properly service the System. 16. For HEA to agree not to discriminate in the sale of electrical energy between those who live within the City of Kenai and those ~ho live without the City of K=nai unless there is a rational and Justifiable cost basis for so doing. 17. For either party to suspend its obligations under the Agreement during the time it is prevented from doing so by force majeure, which means acts of God, strikes, acts of the public enemy, wa~s, blockades, insur~ections, riots, epidemics, landslid~s, lightning, earthquakes, fires, sto~ms, floods, washouts, · x=est ~and restraints of government and people, civil disturbances, explosions, breakdown of machinery or equipment and any other -7 - cause not within the control of the party claiming suspension. 18. For tbs City to retain the right to terminate the Agreement should HEAbecome insolvent or become default in any ~f its obligations, or ask for a receiver or file a petition in bankruptcy or under tho reorganization provisions of the Bankruptcy Act of the United States. 19. For the City to retain title and ownership of the System until the full performance of the Agreement. 20. For transfer of the System to HEA upon full performance of the Agreement according to its terms and upon payment of or provision for payment of all principal and interest on all of the Outstanding Bonds. 21. For the Agreement to become effective upon tbs first day of the calendar month after the voters have approved the entry by the City Council into the Agreement and after the Agreement shall have been ratified and approved by the Board of Directozs of ~A and by the Rural Electrificat£onAdministration of the Department of Agriculture, United States of America which ever date shall last occur. 22. For the City to continue to ¢~rate the System for the ~ole account and benefit of the. City until the Agreement is effective. 23. For such other terms and conditions to be made a part of the Agreement as the Council shall deem necessary or desirable foe the protection of the City and the System. Section 3. If the voters approve the entry into the Agreement between the City and HEA as hereinabove set forth, the C~ty will be obligated to grant a franchise or permit to HEA, and HSA desires to have a franchise or permit to operate an electrical di~tribution system during the time the Agreement -8 - is in force, and thereafter when the System will be transferred to HEA as provided in the Agreement. The City therejore does grant to HEA, a franchise or permit to operate an electrical d~stribution system within the City on the terms and conditions set forth hereina£ter. Du~in~ the t~me NrA is operating the System and prior to the time the System is transfer=ed to HEA, ~EA shall maintain the'System, and HEA*s system as separate entities, and maintain separate books and accounts, and the provisions of this ordinance relative to the franchise shall not be applicable to the system as distinguished f~om HEAts system. Following the transfer of the System to BrA, all of the provisions of this ordinance relative to the franchise or permit shall be applicable to any extension of the There is hereby granted by the City to HSA the right and privilege to constcuct, erect, operate and main~ain, in, upon, along, across, above, over and under the streets, alleys, p~biio ways and public places now laid out or dedicated, and aL1 extensions thereof, and additions thereto, in the City, poles, wires, cables, underground conduits, manholes and other electric f~xtu=es necessary or proper for the maintenance and operation in the City of an electric distributuion system and wires connected therewith. The right to use and occupy said streets, alleys, public ways and places for the purposes herein set forth shall not be exclusive, and the City reserves the right to grant a s~milar use of said streets, alleys, public ways and places, to any person at any period of this franchise. Bection 5. Compliance with Appltcab~; ~a~s and Ordinances. HZA shalL, at all times dur£nq the l£f~ of this franchise, be s~b~ect to all law£u! exerciBe of the police power by the City, and to such reasonable regulation as the City shall hereafter by resolution or ordinance provide° SectLon 6o ~ ~ability - Indemni£icat~no It is expressly understood and agreed by and bek~een ~ and the C~ty that HEA s~ll save the Cit~ ha~less ~rom all loss sus~ ~ the C~ty on ac~unt of ~y suit, Jud~ent, exe~tLon, cla~, or d~nd ~hatsoever, resulting from n~liqence on the pa~t o~ HEA ~n ~he const~cZion, operation or ma~n~nanc~ o~ Lts electric syst~ ~n the C~ty, The C~ty shall not~f~ ~EA's representatLve in the CLty ~th~n ~en ~lO) days a~er ~he presen~on of any cla~ or d~nd, e~ther by su~t or otherwise, ~de against the CLZy on account of any n~liqence as a~o~esaLd on the pa~t o~ HEA, section 7, se~oe S~andards, HEA shall maintain and operate i~s plan~ and sys~ a~ re.er e~ficien~ service in accordance wi~h ~he rules and Fegula~ions as are, or ~y be, 8e~ forth by ~he Council as provided ~n Section 5 o~ ~h~s ordinance; or by ~he Public ~li~ie~ Co~ission o~ ~he S~ete o~ A~aoka. ~, Me,er Accuracy, A~I e~ec~Fic service sha~ b~ supplied ~hrou~h me~o~ ~hich shall accurately measure ~he ~oun~ o~ e~ec~ic~y suppl~ed ~o any cons~er. a. ~eques~ ~or ~eter Check. ~EA shall a~ any ~e ~hen re~estod by a cono~er mak~ a ~ o~ ~he accuracy o~ any e~e~trical serv~c~ me,er. b. Resul~ o~ ~etor Check. ~, upon ~es~ i~ ~s ~ound ~ha~ ouch me,er ov~Fun8 ~o ~he ex~en~ o~ ~ 10 - 2 percent or more, HEA shall pay the cost of such tests and shall make a refund for overcharges collected since the last known date of accuracy but for not longer than 60 months, on the basle of the inaccuracy found to exist at the time of the tests. I! the meter is found to be accurate o~ slow or less than 2 per cent fast, the customer shall pay the ~easonable cost of such testing. Co Compulsory Check. Every meter, whether com- plained of or otherwise, shall be removed from service at least once each seven years and thoroughly te~ted for its accuracy, Any meter found inaccurate upon any test beyond a tolerance o£ 2 percent shall not be returned to service until properly adjusted. 2, Notice of Inter~uption for Repairs, ~henever it is necessary to shut off or interrupt serv~c~ for the purpose o~ making repairs, adjustments, or installation, BF~t shall do so at such time as will cause the least amount of inconvenience to its customers, and unless such repairs are unforeseen and immediately necessary, it shall give reasonabl~ notice thereo£ to the consumers. Section S. ~E~ Rules. HE& shall have the authority to promulgate such rules, regulations, terms and conditions governing the conduct ef its business as shall be reasonably necessary to enable HEA to ex- ercise its rights and perform its obligations under thi~ franchiss, and to assure an uninterrupted service to each and all o~ its customers. Such rules, regulations, terms and conditions shall not be in conflict with the provisions hereof or o~ laws o~ the State of Alaska, and shall be subject to approval by the Public Utilities Commission of the State of Alaska. Section. 9. Conditions on Street Occupancy. 1. Use. All transmission and distribution structures, lines and equipment erected by HEA within the C~ty shall be so located as to cause minimum interference with the proper use of streets, alleys and other public ways and places, and ~o cause minumum interference with the rights or reasonable convenience of property owners who adjoin any of the said streets, alleys or other public ways and places. 2. Restoration. In case of any disturbance of pavement, sidewalk, driveway or other surfacing, HEA shall, at its own cost ami expense and in a manner approved by the City Inspector, replace and restore all paving sidewalks, driveway or surface of any street or alley disturbed, in as good condition as before said work WaS commenced. 3. Relocation. In even~ ~.a~ at any time during the period of this franchise the City shall lawfully elect to alter, or change the grade o£, any street, alley or other public way, HEA, upon reasonable notice by the City, shall remove, relay, and relocate its poles, wires, cables and other electrical fixtures at its own exp~nse. 4. Placement of Fixtures. HEA shall not place ~oles Or other fixtures where the same will interfere with any electric light, telephone wire or conduit, water ~ydrant or water main, and aL! such poles or other - 12 - fixtures shall be placed at the outer edge of the side- walk and inside the curb line, and those placed in alleys shall be placed close to the line o[ the lot abutting on said alley, and then in such a manner as not to interfere with the usual travel on said streets, alleys and public ways. 5. Temporary Re~oval o£ ~i~e £or Building ~ovinq. KEA shall, on the request of any person holding a building moving permit issued by the City temporarily raise or lo, er its wires to permit the moving of buildings. The expense of such temporary removal, raising or lowering of wires shall be paid by the person requesting the same, and H~A shall have the authority to require such payment in advance. HEA shall be given not less than forty-eight hours' advance notice to arrange for such temporary wire changes. 6. Tree Trimminqo HEA shall have the authority to trim trees upon and overhanging streets, alleys, sidewalks and public places of the City 8o as to prevent the branches of such trees from coming in contact with the wires and cables of HEA, all trimming to be done under the supervision and direction o£ the City and at the expense of HEA. Section 10. Preferential or Discriminatory Practices Prohibited. HEA shall not, as to rates, charges, service facil- ities, rules, regulations, or in any other respect, make or grant any preference or advantage to any person, nor subject any person to any pre~udioe or disadvantage, provided that nothing An this franchise shall be deemed to prohibit the establishment, of a graduated scale of charges and classified rate schedules to which - 13 - any ¢~stomer coming within such classification would be entitled. Section I1. gxtenston Policy. HEA ~hall file with the City Clerk its extensionpoltcy as filed, with, and approved by, the City Council and the Public Utilities Comission of the State of Alaska and HZA shall not make or refuse to make any extension except as permitted by this ordinance. I. Publication. Upon acceptance of this franchise, HSA at its o~n expense, shall cause to have published in a newspaper of general circulation in the City its extension policy as ~iled with, and approved by, the City Council and the Public Utilities Commission of the S~ate of Alaska and shall annually send to each of its customers living vithtn the corporate limits of the City a copy of such extension policy. Section 12. Approval of Transfer. HEA shall not sell or transfer its plant or system to another, nor trans£er any rights under this franchise to another without Council a~proval. No sale or transfer shall be effective until the vendee, assignee or lessee has filed in the office of the City Clerk an instrument, duly executed, reciting the fact of such sale, assignment cz lease, accepting the terms of the franchise, and agreein~ to perfo~mall the conditions thereof. Section 13. City Rights in Franchise. l. City Rules. The right is hereby reserved to the City to adopt, in addition to the provisions herein contained and existing applicable ordinances, such additional regulations as it shall find necessary in the exercise of the poltce power, provided that such regulations, by ordinance or otherwise, shall not be in con£1ict with the laws of the State of Alaska. - 14 - 2. Use of System by City. The City shall have the right, during the life of this franchi~e, free of charge, where aerial construction exists, of maintainin~ upon the poles of the City within the City limits wire and pole fixtures necessary for a police and fire alarm system, such wire~ and fixtures to be constructed and maintained to the satisfact$on of the City and in accordance with its speo£fications. a. Complian~e with SEA Rules. The City in its uae ami maintenance of such wires an fixtures, shall at all times comply with the rules and reg- ulations of HF~t so that ~heremay be a minimum damlor of 0ontaot or conflict between tho wires and fixtures of H~& and the wires and fixtures used by the City. b. Liability. The City shall be 0olely responsible for all damage to persona or property a~ising out of tho construction or maintenance of said wires and fixtures authorized by th£s Section and shall save HSAharmless fro~ all claims and demands ~hatsoever a~tsing out of the attachment, main- tenance, change or removal o~ said ~ires a~d fixtures to the poles o£ HEA. In case of rearrangement of HEA plant or re, oval of poles or fixtures the City shall ,ave HEA harmless from any damage to ~orsons or property a~ising out of the removal or construction: of its wires or other fixtures. 3. s~pe~vision and Inspection. The City shall have the right to supe~visc all construction or installa- tion work per£ormed subject to the provisions ct this - 15 - ordinance and to make such inspect~ons as it shall find necessary to ~nsure compliance with qoverninq ordinances. 4. Procedure after Te~mination or Revocation. Upon the revocation of this franchise by the Council, or at the end of the term of this franchise, the City shall have the riqht to determine whether BFJ~ shall continue ~o operate and maintain its plant and dtstrtbuttnq system pe~dl~g the decisions o£ the City as to the future maintenance and operation of the plant and distribution system. 5. R~jht of A~qutsitton by the City. At the expir- ation of the term £or ~htch this franchise ts granted, the City, at its election, and upon the payment of an amoun~ #hich shall be determined by a valuation provided by the Alaska Public Utilities Co~isston or its successor, shall have the right to pt~chase and take over the property of ~BA vithtn the City ~its o~ Eenat. Upon the exercise o£ this option by the C~ty by the service of an official notice upon ~EA to that effect, IlEA shall t~unediately execute such deeds or i~t~ments o~ conveyance to the City as shall be required to convey ~o ChG ¢~Cy title to the property tn fee simple, free from any and all liens and en~nmbrances. HEA ~hall make it a condition o~ each contract entered Into by ~t with re£erence to operations under this franchise that the contract shall be subject to the exercise of this option by the City and ths~ ~he City shall have the r~ght to be substituted for HEA as a party to any such contract and shall have the r~qht to succeed to all privtleqes and the obltqat~ons thereo~ at its option. G. Payment to City. HEA shall pay to the City for the privilege of operatin~ its system under th~s franchise a sum equivalent to per cent ( %) of the annual gross operating revenues taken in and received by it on all retail sales of electricity with the City. 7. Rates. Rates charged by HgA for service hereunder shall be fair and reasonable and designed to meet ali necessary costs of the service, including a fair rate of return on the net valuation of its prop- erties devoted thereto, under efficient and economical management. ~hen this franchise takes effect HEA shall have the authority to charge and collect not to exceed the rates presently in e£fect or as approved by the Public Utilities Commission of the State of Alaska. 1. Savings to Customers. If during the term o£ this franchise HEA purchases electric energy, other than dump or emergency energy, for distributioa, any savings which accrue to HEA by reason of such purchase of the electric energy used in the City shall be forthwith passed on to its consumers. If during the ter~n of the franchise REA receives refunds, or if the cost to HEA of providing electric service is reduced, by order of any regulatory body having competent ~u=isdiction the Company shall pass on to its customers such refunds or any saving# result/a9 therefrom. 8. Records and Reports. The City shall have access at all reasonable hours to HEA*s plans, contracts, and enqtneerinq, accounting, financial statistical, cus- tomer and service records relating ~o the property and the operation of H~A and to all other records required to be kept hereunder. The followin~ records and reports shall be filed with the City Clerk and in the local office of ~Ao 10 Rules and Re~ulationso Copies of such rules, regulations, te~ms and condit~ons adopted by it for ~he conduct o£ its business. 2. Hetor Checks. Reports of the results of all requested and compulsory meter checks, 3, Gross Revenue. An annual summary report sho~inq gross revenues received by HEA ~rom its operations with the City during the precedin~ year and such other in£o~ation as the city shall request vith respect to properties and expenses related to ItEA service within the City, 9, Term o£ Franchise. The franchise and rights herein granted shall take e£fect and be in force £rom and a_~te~ the approval by the voters o~ the City of this franchise at a special election to be called and~ u_pon _~inal execution and approval of the A~reement between liSA and the City ~hich is se~ to~th h~roinabove and~ upon filing o£ the recluir_-d acceptance by 2SA ~ith the City Clerk ang _~.hall continue in £orce and e~[ect for a term of thirtlf (30) years from tho e£~ective date of the &qreement. 10. Publication Costs. HFJI shall assure the cost of publication of this franchise ordinance as such publication is required by law. A bill for publication - 18 - costs shall be presented to IlEA by the City ?reasurer upon the Company's filing of acceptance and shall be paid at that time. 11. Pen~lties. Any violation by HZA, its vendee, lessee or successors of the provisions of this franchi~e or any~a2erial portions thereof, or the failure promptly to per£onn any of the provisions thereof, shall be cause ff6r the forfoiture of tht~ £ranchioe and all r£ghts hereunder and the City, after written notice to advisinc~of the default and continuation of such violation, failu~ or default for a period of sixty (60) days follo~£nq said written notice, may declare this franchise void. Sect,.on ld. A copy of this ordin~nce sh~ll be filed In the office of the City Clerk and subject to public inspection £or thirty (30) days after it is f~led. Section l~. & public hearinq on ~hether or not this ordl~nce should be adopted shall be held at 8~00 o'clock ~.~. at ¢~tyLlbrery 30 June~ ~?l and the City Clerk is hereby directed to give notice of such public hear£nq by in the Cook Inlet Courie~ at least one week prior to the time set £or the Section 16. Within two (2) ~eeks after this ordinance has been finally adopted, H~ must ~i1¢ with the City Clerk Its uncond2tional acceptance of ?~1 terms o~ ~he £~nchise or as set forth herein. HEA further musk deposit with the Department o£ Finance o£ the City, an a~ount of money estimated by the City C~rk to be adequate to pay c!l expense~ of holdinq the special election ~rovided £or herein. Section 17. The proposition of whether or no~ - 19 - City shall be authoriz~d to enter into the Aqreement with HEA on the terms and conditions set forth herein, or terms and con- ditions substantially similar thereto, and whether the City shall, as a part o£ such Agreement, adopt the franchise provisions of this ordinance, as described hereinabove, shall be submitted ~o the qualified electors of the City at a special election to be held therein on 3 Auqust, 1971. ~aid proposition shall be in the £ollowinq form PROPOSITION NO. 1 ELECTRIC LIGHT AND POI~R OPERATING AND FRANCHISE AGREEMENT Shall the City of Kenai, Alaska enter into an Aqreement with Homer Electric Association, Inc. (HEAl for the operation and manaqement of the City's Electrical distribution ~yste~ by HEA and if all the terms of the Aqreement are met, provide £or the transfer of all of the City's electrical distribution system to HEA and will as a part of said A~reement, qrant a fran- chise or permit to HEA to operate and maintain an electri- cal distribution system on the public-streets and alleys and other public places o£ the City of Kenai, for a period of thirty (30) yea~s all as is more specifically provided in Ordinance No. 199 adopted June 30, 1971, wh.ch ordinance is hereby su--d~mitted £or ratification? OPERATING ~D FIIANCIIISE ORDINANCE YES , . . OPERATING AND FRANCHISE ORDINANCE NO · · * /-'-7 Segtion 18. Those eligible to vote at said special election must possess the £ollowinq qualifioationss 1. They must ~e at least 19 years of aqe. 2. They must be citizens of the United States, and for at least one (1) year precedinq the election of the State of Alaska, and for thirty (30) days inunedia- rely precedin9 the election residents of the City of Kenai, Alaska. 3. They must be able to read and write the English language, as prescribed by law. - 20 ~ 4. They must not be barred from voting by any other provision of law. $. They must be reqistered in the nmnner prescribed in Section 6°3, 6-4, 6-5, 6-6, 6-7 and 6-8 of the Kenai Code, X963. Sect.~on 19. For elector or vot~;r reqistration the book rill be open daily in the office of the City Clerk, City Ad~tntstration Buildinq, ICenai, Alaska, from 9~00 o'clock until Ss00 o'clock P.H0 daily, except Saturdays, Sundays and holidays. Reqistration ~hall be closed five (5) days preceding the Special election. A duplicate registration Index shall be furnished by the City Clerk-Registrar to the precinct ~udqes and clerks of the elect~on. Section 20. Notice of this special election shall be published once a week for not less than two (2) consecutive reeks in a newspaper o£ general circulation in the City, and the first publication thereof shall be not less than fourteen days prior to said election date. Said notice shall be published in the 'Cook Inlet Courier' which is hereby dete~mined to be a newspape~ of q~nera_l e~rculation within the City. Notice of this special election shall also be posted on the official City bulletin beard in or on the City Ad~inistration Building and tn two (2~ other conspicuous places w4_th the City. .~ct.~on 21. The desiqaated polling places ~ill be the City ~inist~ation Building, and the ~enai Airport Terminal BuLldtng. Said polls shall be open from 8,00 o'clock A.~4. to Ss00 o'clock P.~. on ~he 3--day of &uqust, 1971. ~ection 22. The following qualified elector5 of the - 21 - City are hereby desianated and appointed to serve as Judges and clerks at said special electton~ t Judqe~ Clerks Precinct No. 1 ~rances Meeks ~arion gempf Sharon_Young Precinct ~o. 2 Nears Evenson Louise Carter Peggy Meyers ........ Chairman Prances Meeks Cha£~an Nedra Evenson Xfa replacement shall be required for any of the above- named o££ic£als, such replacement may be appointed at any me®ting of the City Council. Sect£on 23. This ordinance shall be published in full after its passage not more than four (4) weeks and at least two (ZI weeks before the election hereina~v~ called is he~d. Section. 24f An emergency is hereby declared and the rules qover~inq the ~troduction, reading, passage, and approval of this ord~mlce are hereby suspended and this ordinance will be inunediately effective upon its passage and approval. PASSED AND APPROVED this _~/] day of ~.~ ~ . , 1971. ATTEST ~ ~Afct~nq C~ty 'C~erk (~ CITY OF KENAI, ALASKA Mayor - 22 - ,,) CERTIFICATE $'/E, TIlE [,IEbIBERS OF TIlE KENAI CITY COUNCIL DO ttEREBY CERTIFY TliI/ RI/SULTS OF A CA~iVASS OF TIlE BALLOTS FOR TIlE SPECIAL ELECTION OF $ AUGUST 1971, TO BE AS FOLLO$~S: OPERATING AND PIT~h~CItlSE ORDINANCE ..... YES OPE~TIHG ~DCPR~CIIIS~ O~INANCE ...... NO SPOILED BALLOTS / f~ ! C}~LLENGED BALLOTS ABSENTEE ~ALLOTS /~ TOTAL BALLOTS CAST John F. SteinbeCk, ,~.layor 6ouncfl~an Robert BieYefeld COg~Cil~an Jaad~ Doylo CoUnCil~,~an JaJnes il°rnaday ' ~ATED: ,1Au~ast 1971 / cOuncilman/~ru ~lcG/~ady ~:~un¢l. Daan Rob'crt Noron~'" ~'ou~cll/man llU§l~ Malone ~TTEST: Sharon Sterling Acting City Clerk 3^rtPLE CITY OF KEHAI SPECiAl, ELECT TO..'! TUESDAY, AUGUST 3, 1971 SAHPLE PROPOSITION ,"JO, 1 ELECTRIC LIGHT AHD POWER OPERATING Al;D Fi';A;JCHI£E AGEEEMENT I ' SAr';PLE ' OPERATING AND FRANCHISE ORDINANCE YES . . . /---7 OPERATING AND FRANCHISE ORDI~'IANCE NO . . . /.' / Shall the City of Kenat, Alaska enter into an Agreement with Homer Electric Association, Inc. (HEA) for the operation and management of the City's Electrical distribution system by HEA and if all the terms of ~he Agreement are met, provide for the transfer of all of the City's electrical distribution system to HEA and will as a part of said Agreement, grant a franchise or permit to HEA to operate and maintain an electrical distribution system on the public streets and alleys and other public places of the City of Kenai, for a period of thirty (30) years all ac is more specifically provided in Ordinance No. 199 adopted June 30, 1971, which ordinance is hereby s--~mitted for ratification?