HomeMy WebLinkAbout1967-10-07 Council Minutes - Special MeetingGA ITAL .-{}A8KA
—lot. CITY OF KENAI'
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BOX 580 - KENAI, ALASKA - TEL 283.7535
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SPI.CIAL (M.NCII. 141:ET .. ' ,.w,4vnl ,
7 (XTORi:R, 1067
Roll call: *mhers present - Rob liielefold, Chester Cone, Joltn Ilulien, Billy McCann,
rlorine McCollum and Vice Mayor Carl Seaman; Absent - Mayor James G. Dyo.
Also present: Asst. City Mgr. James Moore and those listed on sheet accompanying
these minutes.
Mr. Job Coate addressed Council saying, he became Interested in Alaska some time ago;
he noticed the shortage of capital here and thought Alaska needed assistance in its
rapid growth; he met Odin Strandberg and became interested in CUL activities; he
doesn't know much about the electrical business, but it seemed that the utility is sub-
sidizing the City rather than the other way around. lie is willing to invest money with
CUL (infact has already done so) if the City will assure payment to CUL in line with
the letter from CUL which accompanies these minutes.
Council had discuss all this in executive session at the last regular meeting
and was assured by the City manager, James W. Harrison, that all these items seemed
within reason.
There was considerable discussion between Council and the visitors.
Hulien moved, McCollum seconded, the City will negotiate with Wildwood and will
guarantee CUL 14 mills as soon as possible and no later than 1 November, 1967. Motion
carried unanimously by roll call vote.
Council agreed the offer will be made to Wildwood of accept or reject. It was
originally thought to offer power to Wildwood at 15 or 15 1/2 mills.
Following more discussion regarding the City's rates to its customers, Bielefeld
moved, Hulien seconded, to adopt items 2,3,4,5 and b of the CUL letter of 4 October,
190, effective 1 November, 1967. Roll call vote: Affirmative - Bielefeld, Cone,
Hulien and McCollum; Negative - Billy McCann.
Mr. McCann was hesitant to vote for these changes without a recommendation from
the Electric Bond Counsel or the electric engineer who is studying the feasibility of
HEA purchase with the new bond money.
Vice Mayor Seaman thanked the gentlemen for coming and expressed the hope the
action taken today will work out to the mutual benefit of all concerned.
Mr. Moore presented a request for payment to National Mechanical as submitted by Engr.
Harold Galliett, in the amount of $227,797.21.
McCann moved, Hulien seconded, to pay National Mechanical $227,797.21 for
partial payment #2 for LDA Project $07-1-00271. Motion passed unanimously by roll call.
Meeting adjourned at 5:50 p.m.
Respectfully submitted, tt
Frances Torkilsen
City Clerk
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Outober 4, 1967
bpi•. J. w. Harrison, City manager
City of Eenai
Box 620
Kenai, Alaska 99611
Dear Hills
Dewing the past several months Consolidated
Utilities, Ltd* has been working out long-term finan-
cing with Kr. Robert L. Caste of 8an Francisco. These
negotiations are based upon the Oily of Eenai'sgreeing
to a return on invested capital o! 8
, or that rate
of return which the city already has granted Kenai
Utilities, Inc. in the gas distribution franchise. In
order to achieve this rate we propose the following
basic changes in the rate schedule contained in the
power contracts
1. Adjust
ationAiribroe
the
rate
for
Ba eenergy
14 supplied mills netildwood
2. Ad;ust electric beat rate to 10 mills/kwh net
3. Delete schedule 11 (e)
4. Revise schedule 11 (d) to 14 mills/kwh net
5. Hold schedule 11(e) to' miriiwum step of 14 mills/'. wh
urtil p.3% return is met.
6. provide for rate review by mutual agreement.
The above revisions are in accord with schedule 14,
Rate Review, of the power contract and represent the �:in-
m ad;ust,-ents necessary to assure financing
of The
net cost/kwh for the next three years will be 15.3 to
15.1 :rAlls.
Mr. Caste will be in Kenai aaturday to meet with
Council, possibly accompanied by Xr. Halley of Fairbanks-
-I!orse Oo. In order that generation now in the production
line hvedelivered
resolvetime
the rate adjustments demand
that
is i�:perpereti
tine.
Yours truly
g r�ber
Pros.
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