HomeMy WebLinkAbout1968-07-22 Council Minutes - Special MeetingKENAI CITY COUNCIL MT141ITFS - SPFC1Al MEETING 9,00 A.M., 22 DULY, 1968
Roll call: Members present - Charles A. Bailie, Rohert Bielefeld, Chester Cone,
Billy McCann, Florine McCollum and Mayor Eugene if. Morin; Members absent - John
Hulien.
Also present: City Mqr. J. W. Harrison, Dir. of Public Works Nels 0. Kjelstad,
Airport Terminal Bldg. I•tgr. Richard H. Carignan, Acct. George R. Brown, Atty. James
E. Fisher, HEA Mqr. Larry Farnen, CUL Stockholder Robert Coate, Atty. Richard 0.
Gantz, Atty. Stan McCutcheon, Atty. W. C. Arnnld.
Mayor Morin stated the purpose of the meeting as beinq the result of a complete
power failure startinq at 3:30 a.m. Saturday, 20 July. resulting in disasterous
consequences for some businesses. This meeting is to try to secure firm power,
whether a new source of power or through inner -ties remains to hp seen.
Morin praised those who had helped restore power; i.e., Wildwood Military
Base, Snelson, Inc., Phillips Petroleum, Carl and Mrs. Haller, and the City personnel.
Col. Scroggins of Wilds -food and Snelson, Inc. were especially helpful in keeping some
power in the City and in keeping the telephone company in operation.
Morin said the various interests would make their reports, and if any in
the audience had anything constructive to add, they would be heard. This meet-
ing is not to deride or besmirch anyone; it is to find a solution to the problem.
City Manaqcr Harrison stated Consolidated Utilities Ltd. has four generators to
serve the City; i.e., 1 new Fairbanks-Mordlf, 2 Chicago Pneumatics and 1 k1orthing-
ton. One C.P. unit was down, the othar could rnerite only about allO KW; the
Worthington could generate about 500. The new Fairbanks generator blew a piston.
It will take 3 days to a week to repair the new generator by using an extra piston
from Fairbanks, and a sleeve available at Homer.
Two portable generators are on their way from Fairbanks, Alaska, beinq trucked
here as they were too big to go in any aircraft. We are using a 350 KW loaned by
Phillips. With the latter, plus Wildwood, the two Chicago Pneumatics, the City can
handle a normal load. If these machines do not hold up, the lines will be without
power again.
The City does not know how the two generators from Fairbanks will be hooked
up yet; the City has had hundred of phone calls, and only one was abusive; people
are angry, and that's understandable; many have offered assistance.
Station KSRM has done a remarkable ,job of keeping the people informed; the
City employees were not called out; they came of their own accord to assist CUL
in repairing the generators that are now on the line. This is their job to help
in emergencies and they turned out for it.
Morin also thanked KSRM for its services and praised Mr. Buckingham, Kenai
City Light Supt. for his work;- Odin Strandberg, of CUL, worked around the clock
for two days to get the generators going again.
The Mayor expressed the hope the City would retain Mr. Dick Gantz to work with the
City until an inner -tie or firm power of some kind is accomplished.
McCann moved, Cone seconded, to employ Gantz as consultant to secure firm
power for the City. Roll call vote passed the motion unanimously.
Council adjourned for a ten minute recess to talk via telephone with Mr. Hall of
the Public Service Commission.
Reconvening, the Mayor said Mr. Hall was given a short resume of the situa-
tion, and that he would be kept informed.
There was also a call received from the President of Fairbanks -Morris say-
ing the number two unit would be here 1 Sept.168, and they would put this in writing.
Stan McCutcheon, representing the Tyonek Indians said some weeks ago they learned
the City was seeking firm power; that day they asked their engineers to make a
study as to the feasibility of bringing power to Kenai. They are ready to offer
Kenai City Counri 1 Mi nutes , Special tieeti ng
Paqe two
22 duly'68
power on a firm basis at reduced rates; they would build a line to the Beluga Station
and the power could be wheeled on existing lines to Kenai; he understands the exist-
ing lines are carrying only about 20% of their capacity; they have the transformers,
lines, etc. and can start building tomorrow as they also have the money; they will
meanwhile help in any way they can; they have two 500 KW portable units if we need
them; they will give us a rate schedule for study.
Larry Farnen, Mgr, of Homer Electric Association said he did not know about the
City's emergency; that H.E.A. does not have generation for sale; he had talked
with Mr. Coate about inner -ties, and N.E.A. is prepared to provide the inner -
ties with any facility capable of providing the generation.
Morin said the City would make no decision at this meeting; we have had offers
from various sources for buying the distribution system; the City Administration
and Gantz will recommend to Council the action to be taken; the City wants the
most power for the best rate.
Council recessed for 5 minutes to talk with the Governor's office - Walter Kubley -
who said they are willing to be of any service they can.
Robert Coate said he had met with Council about a year ago and had seen the need
�. for additional generation for the City; he had persuaded two other business men
in California to join him in investing with CUL; they had bought and delivered
a new Fairbanks-Morv$iPegenerator, and have another one ordered for next Sept. His
prime concern has been to restore the credit of CUL, to renegotiatd loans, etc. He
had met with Farnen on inner -ties for Kenni; this emergency is not the break -down
of planning; it is a mechanical failure; he is willinq to meet with anyona to
get an inner -tie and he realizes CUL must provide most of the money; lie thinks
the City has handled this emergency in an exemplary manner.
The Mayor emphasized the inner -tie was CUL's responsibility and not the City"s,
'tho we have worked to get this.
The meeting was opened to the public for adding any pertinent information.
Morin read a letter from Peg 7 Roy's Laundromat requesting a release from KCL
power. This letter is a part of the minutes.
V. Harrison said the City could not legally release any substantial customer
as the whole bond issue depended on the study showing a certain number of customers
with a certain amount of revenue coming in; such realease could jeopardize these
bonds.
Mr. Teitjen said if the City denied him this request he feels he is being
denied a freedom of choice; that if he were buying oil, he could choose his dis-
tributor; that duplication of lines is not involved as H.E.A. runs right in front
of his place of business anyway; that it is unconstitutional to deny him freedom
of choice.
Morin said the City would do what it can with due process of law.
Carl Seaman, as owner of apartment houses, expressed concern about the City's
fire -fighting ability during power outages; the City has arranged to have an
auxiliary generator at the well house for such purposes.
This was the legal reason Wildwood was permitted to give the City exchange
power; this - and the fact that health measures demanded power for sewers, etc.
The City fire tank -trucks filled up at Wildwood Station, and the W/W fire station
was on a 5 minute alert in the event fires did break out.
Ernest Presher, Supt. of the Boro School District, said he realizes the need for
power for residences, but he is primarily concerned with the Schools; if this
Kenai City Council Minutes, Special Meeting 79. - Page three
had happened in the winter it could have been a major catastrophe; that he is
not so concerned with rates as he is with firm, dependable power.
Harrison said the City had considered delivering water for flushing purposes, but
with no power for the disposal and pump stations, this would have flooded the
sewers, so no water was delivered.
Harold Daubenspeck, representing Kenai Packers, said his plant was operating all
right on his own generator, and offered a 75 h.p. Cat that could be used for
pumping purposes if the City needs it.
Jim Reams, Vice pres. of Snelsoq, asked if the City knew how long this situation
would prevail. This time element is not known; Harrison said he would be meeting
with all these people today, and as soon as they were remotely near a solution, the
people would be informed.
Reams offered any assitance possible.
James Hornaday, representing the Chamber of Commerce, offered the Chamber's faci-
lities for getting information to the public.
Harrison cautioned against law suits saying the Courts have declared power companies
are not responsible for the duality or the quantity of power.
The Mayor also said suing might retreive some money, but would not solve this pro-
blem; the Administration is bending every effort toward getting firm power, and
is concentrating wholly toward this end; any harrassment will not help.
Council discussed giving Mr. Tietjen an answer, but this will have to come from
the Administration after conference with the Attorney.
Mr. Tietjen said he thought the Council should accept the first definite
offer of firm power; he didn't care from whre, who or how.
Mayor Morin reiterated the policy of the City to get the best power for the lowest
rate.
Meeting adjourned at 10:10 a.m.
Respectfully submitted,
Aga Cte✓
Frances Torkilsen
City Clerk
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