Loading...
HomeMy WebLinkAboutMinutes 03/31/1981 62 CITY COUNCIL MEETING Port Angeles, Washington March 3l, 1981 I CALL TO ORDER The special meeting was called to order by Mayor Haguewood at 7:00 P.M. The purpose of this meeting is to discuss washington Public Power Supply System's proposed Balance Financing Program for Nuclear projects 4 and 5, related City Light items, and the Downtown Improvement District No. 203. I II ROLL CALL Members Present, Mayor Haguewood, Councilmen Boardman, Buck, Duncan, Hordyk, Polhamus, Quast. Members Absent: None. Staff Present: Manager F1odstrom, Deputy Clerk Headrick. G. Booth, R. Orton, J. Pittis, R. French, L. Cosens, N. Sweet, T. Sterner. . III - V Suspended. VI LEGISLATION l. L.I.D. NO. 203: FINAL PROGRESS PAYMENT & ACCEPTANCE OF PROJECT Councilman Buck moved the Council authorize payment of $4,334.30 to DelGuzzi Construction Company, as the eighth and final payment of work done and materials furnished by said contractor on L.I.D. No. 203, and $228.l2 re- tained percentage on progress payment No. 8 into the escrow account at I Seattle First National Bank, as certified by Public Works Director J. pittis; and, to accept the project as complete as recommended by the Public Works Director. The motion was seconded by Councilman Boardman and carried with Councilman Hordyk voting "NO." Councilman Hordyk stated as his reasons for voting against the motion, the contractors disregard for the public's safety during construction, and the City being "misled" into the responsi- bility of ongoing maintenance of the project. 2. WPPSS BALANCE FINANCING PROGRAM Light Director Lew Cosens introduced Mr. James Perko to the Council and audience. Mr. Perko is the Treasurer of the Washington Public Power supply System (WPPSS). Mr. Perko gave a brief presentation on the Supply System's proposed Balanced Financing Program and the Supplemental Agreement to the participant's Agreement. Under the proposed financing program the Supply system would sell short-term bonds and intermediate-term bonds as well as long-term bonds similar to those issued under the current financing program for Projects 4 and 5. The Supply System would refinance the short-term bonds prior to maturity with the proceeds of long-term bonds, intermediate- term bonds or additional short-term bonds. The Balanced Financing Program is a necessary tool that the Supply System would like to have to gain additional f1exibilities in its financial management decision making pro- cess. All 88 participating utilities in Projects 4 and 5 must approve the Balanced Financing Program before it can be implemented. In addition to Mr. Perko's explanation of the proposed financing program, the presentation I included a brief history of the Balanced Financing program; key objectives of the program, the legal documents required for the program; and the terms of the supplemental agreement. Following the presentation the Council and Mr. Perko discussed at length the financial difficulties experienced during the project construc- tion, and the efforts of the Supply System to alleviate those problems. During the discussion Councilman Hordyk moved the Council authorize the appropriate signatures on the WPPSS Balanced Financing Program for Nuclear Plants No. 4 and 5. The motion was seconded by councilman Buck. CITY COUNCIL MEETING March 3l, 1981 63 VI LEGISLATION 2. Cont. I During discussion on the motion, Councilman Quast stated that he would like additional staff input and information before making a decision on the financing program, and moved the Council table this agenda item until the next regular Council meeting. The motion to table was seconded by Council~ man Duncan. On called vote, Councilmen Boardman, Duncan and Quast voted "AYE" and Councilmen Buck, Hordyk and POlhamus voted "NO." voting to break the tie, Mayor Haguewood voted "NO" and the motion to table was denied. On called vote on the original motion, Councilmen Buck, Hordyk, and Polhamus voted "AYE" and Couci1men Boardman, Duncan, and Quast voted "NO." Mayor Haguewood, voting to break the tie, voted "AYE" and the motion to approve the WPPSS Balanced Financing Program was passed. 3. IMPACTS OF NORTHWEST PUBLIC POWER BILL: RELATED CITY LIGHT ITEMS A presentation on the impacts of the Northwest Public Power Bill was given by Light Director Cosens. Subjects discussed by Mr. Cosens irtcluded a brief summary of the Regional Power Act and what will be required of Bon- neville; the new power sales contract which will be required between the City and Bonneville; new power resources which must be ,developed by the City for use in the City's own system or sold to Bonneville; and the options available to WPPSS project 4 and 5 participants. I Following Mr. Cosen',s presentation, Mr. Greg Booth, City Light Power Manager, outlined the current and future conservation measures which can be imple- mented by the City. Some of these programs included the Residential Weatherization Program; Residential Conservation Service; several com- mercial conservation programs; and other programs such as a street light efficiency program. Mr. Booth then reviewed the City's Residential Weatheri- zation Program; proposed rate structures (staff intends to recommend a 59% revenue increase required for all customer classes except industrial 69 KV at the May 5, 1981 Council meeting); PURPA Section 210 (Cogeneration and Small Power Production) requirements; updating the Municipal Code in regard to power; and an explanation of "demand meters." -'---- VII ADJOURNMENT The meeting adjourned at lO:20 P.M. ~f~~J) e.~ City Clerk ~9~ 'Mayor I