HomeMy WebLinkAbout1963-07-29 Council Minutes - Special MeetingMINUTES OF SPECIAL COUNCIL '93ETIVG %UNDAY 29 JULY 1963
8:00 n.m.
Meeting was called by Mayor James G. Dye for the purpose of negotiating a bid
for the purchase.of Kenai Power Corporation.
Roll call showed all members present but !Messrs. Sims and 'McCann.
I•tayor Dye gave a brief report of his trip to Seattle and Washington, D.C.: Govn't.
Treasury Bills had been purchased in the amount of $912,048.57 @ 3.09% interest.
Maturity dates vary and some payments to Lease Co. may be early and some late ac-
cording to their payment schedule. The City will pay interest on the bonds
starting 1 June 1963; however the Bond broker paid the City an additional $6,000.-
which was accrued interest to the time the City received the bond money. No charnes
were made by the banks who handled the transactions.
The Mayor spent two days with lHiFA in Seattle reviewing the City's application for
Water and Sewer. Results were to half the amount of the application to $400,000.-
which will furnish both systems for the Original Townsite with an alternate appli-
cation for East Addition if the money holds out.
Air. Dick Williams talked with Council re Black Gold Estates Sub. Some discussion
was held but action will be deferred until 4vednesday's regular meeting.
The subject of purchase of Kenai Power Corporation was discussed extensively. There
are 15 sets of bid forms out. Mr. Arthur Garrett still seems to be interested and
possibly HEA and CEA. The Mayor and sir. Strandberg are against KPC remaining in
business as Wildwood is definitely not interested in an agreement if Kenai Power is
to be the distributor. It is understood if the SBA loan goes through to KPC and
CUL that Mr. Rowley would manage the generation, Strandberg the distribution and
Roy Johnson would be the new Receiver ---Why a receiver?? It also would take two
to three months to get the load finalized.
Council discussed methods of obtaining a bid bond, etc.
Leon Spencer of R.f,;.Beck & Associates, Seattle, was present for the discussion and
was most helpful in projecting costs, revenues, etc. were the City to acquire KPC.
The Beck plan was reviewed by Council also.
Clerk was instructed to write re payment for the Franchise Tax --also to inquire re
the annual report.
Mr. Knackstedt moved, Swires seconded, the Mayor be authorized to submit the City's
offer for Kenai Power Corporation and that he be authorized to sign any documents
necessary to accomplish this submittal. Motion passed unanimously.
Meeting adjourned 11:30 p.m.
Respectfully submitted,
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Mrs. Frances Torkilsen
City Clerk