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Home My WebLink About1966-11-10 Council Minutes - Special MeetingMINUTUS till KNNA1 CITY COUNCIL SPECIAL MEETING 10 NOVEMBER 1966 Members present: Bob Boilefold, Chester Conos, Bud Lofstodt, Roper Meeks, Gone Morin, Carl Seaman and Mayor J. G. Dye. Also present: City Mgr. Harrison and Loon Spencer of It. W. Bock and Associates. Tito City Mgr. reported: 1. Word has boon received Strandberg has arranged fina Xor j tt ng the coil fixed. They will start winding it Saturday. will send a mand hero to install it. Harrison will keep check g on this. 2. Regarding power purchase: Harrison was unable to contact Parnon; and left work with asst. mgr. at CR A he wanted to meet with them. S. CU1. will soon have both new units working which should see us through the winter okay. 4. The transformers for the hip substation out at CUL are hero and will be connected soon. Mr. Spencer presented his proposal for onpineoring services for establish. ing a power grid in South Central Alaska. This proposal is included in these minutes. Kenai could produce A mill power for Anchorage and 4 mill power for the Kenai area. It's possible we could sell to CEA, and they could sell to I16A; or we may by-pass one or both. Time, Study and consultation will give the answers. This plan would save the people money and would make money for tho investors. This could save Kenai about $120,000 a year to generate its own requirements. Very likely the commercial rates would receive the first rate reduction. The main idea is to provide low-cost power to the people. The City Manager thinks bock should take part of the risk in this ven- ture, He asked how do we proceed if the plan works out? What would be the plant design? [low would the contracts read? The bond program? Subsequent discussion reveals the Beck proposal will provide most of these answers. Spencer says they would pursue the plan to a conclusion. If findings show it to be impossible to work out, they would cease studies immediately Otherwise, they would got letters of commitment from potential users. The City would be free to thooso an engineering firm to carry out the plan. In all likelihood it would be R. W. Bock, but the City would not be committed to them by this agreement. At the some time, the City doesn't want to pay for this study and have the information turned over to other parties. Sponcer says they would not work with any other party without first asking for a release from the City. Harrison asked if this entire package could be put in a letter; i.e. what the stops would be; what it involves. Spencer says they have a standard form with all the stages spelled out which he will send to us. Council deferred action until this letter and matorial can be received. Spencer reported he had gone to Columbia Ward pishories today with the City 61gr. Ho still thinks the only way to furnish poser to them is to lot them finance the extension and be reimbursed thru their billings. Harrison reported the HBA agreement is still before RPA in Washington. No action should be taken yet; thero's still a little time to got this ready for a January bond election. There's no further word re gas. Wildwood may be able to talk prices soon. Special Council Meeting Minutes 11/10/66 Pare two Union Oil is looking at dosirn for pas to C11AP now. 11opo to have this on next week's agenda. There was discussion on: Union gas wolls by CUL; service areas; con- tracts with CUL; amount of Ras available, reserves, etc.; solo of gas to Sig Tenders, Inc., information can be given to them with impunity; need to get W&S to areas where builders want to build houses oithor thru BpA grant or, by bonding; bus transportation - North Kenai, Soldotna, etc. The City has informed PSC of the needs; etc. John Nulion wanted to know if the commercial rates for power would bo changed soon; if it was possible to raise residential and reduce com- mercial. Council says this is of prime concern to thom --that more users would help solve the problem. The agreement with CUL calls for larger and larger uses of power--wo will pay for it whether we use it or not, other than power, the agenda included discussion of the money in the Bridge Fund Reserve which is part of the General Fund and now invosted with First Federal Savings R Loan in Anchosago at 6,65% interest. It was thought this money should be deposited with a local firm, oven if it means less interest. Seaman moved, Cone seconded, to put the Bridge Fund in a Bank at Kenai at the highest rate of interest. Roll call vote: Affirmative - Cone, Lofstodt, Meeks, Morin, Seaman; Negative - Bielefeld. Meeting adjourned, 10:00 p.m. Respectfully submitted, � Frances Torkilson City Clerk f = oo * kv .+ tCr 'SNp ASSOCIATES '- �ii� #twoe Ealldla8 Seattle, Mashisirtea �, 'f 10 November 1966 F City of Kanai { P. 0. sox $80 ! Kenai, Alaska .99611 SUSJECTt proposal For -Engineering Services GentlptMeat Pursuant to diroetioa.of.the City Council in the Special Meeting, `. November 4, lOOo, we"ae pleased to present ,the fallowing proposals SCOT Pl0F SEA oss t R.. M. book'oAd Associate• (Consulting Engineers) wilt contact potential largfL�e.lectrio wholesale and retail Customers in Southern Alaska and to vestijate the various moth.od;s whereby those customers may be served byienerating faci.lit4*8 •to be Installed by, the City. The Consulting Engineer will determititee 'the appros;irsse"'site and test of such generating facilitios'and estimate the probable cost of power to such customers. Potential Customers will be urged to enter into contractual arrangements for a 20 year•period,:e: touger. The Consulting Engineer will embody his findings in s report to -be presented to the City within three months from the date of authorization to piroceed. PAYYNANT t Memorandum billings will be rendered to the City monthly based upon the Service Rates of the Consulting Enjineer,"..plus actual out-of-pocket expenses at cost: It at any time during the investigations apparently insurmountable obstacles are discovered the Consulting Engineer will so advise the City and discontinue work under this authorisation. At the tine of presentation of the report, if it appears that no contractual arrangement: with any of the potentisl customers can be entered into by the end of 1967, the costs, as determined above, will be billed to the City. At the option of the City the total billing may be paid at the rate of _ $ 00.00 per month plus interest on the unpaid balance at the rate of 6t per antrum. The Consulting Engineer agrees that the total billings, as determined above, will not exceed $2,S00.00. 1f,during the investigation period, a contractual arrangement is reached with one or more such potential customers which will result in the + issuance of bonds to provide generating facilities, the billings herein will be waived until such time as bonds are issued. I: i. a f Y f) 1 ii i 4t City of Kemal P. 0. box 6*6 Kenai $ Alaska 10 November 1966 Pate Two ! The this authorisation at any time, whsreapon oasts �i accumulated to tkat-dat*will be paid to the Consulting Engineer at the :. rate of f100.00 pot month with interest on the unpaid balance at the rate I of six perooiat (64) per &noun. Respectfully submitted, Leon D. Spencer ' ' Supervising Engineer l R. M. beck and Associates t i APPROVED BVt H. C. Mestfall, Manager Western Region R. M. beck And Associates ACCEPTED BY: James W, Harrison, City Manager r City of Kenai, Alaska ATTEST; Frances Torkilsen, City Clerk City of Kenai, Alaska /A A,