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HomeMy WebLinkAboutRes2000-092 I I I Sponsored by: Janke CITY OF SEWARD, ALASKA RESOLUTION 2000-092 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A BALLOT PROPOSITION FOR THE SALE OF THE ELECTRIC UTILITY AT mE NOVEMBER 7, 2000, SPECIAL CITY ELECTION WHEREAS, the City of Seward currently owns and operates an electric utility; and WHEREAS, because of deregulation and industry changes affecting the operation and economies of electric utilities throughout the United States and Alaska, it appears timely for the City Council to consider the prospect of selling the City's electric utility; and WHEREAS, the public interest is adequately protected under the provisions of Section 13.4 of the City Charter which provides that "The council may sell, lease or otherwise dispose of a municipal utility or of property and interest in property used or useful in the operation of a utility only after a proposition to do so is approved by three-fifths of the electors of the city voting on the proposition;" and WHEREAS, it is in the public interest to provide for quality electric services and reasonable rates and at the same time seek to manage City assets for the long term benefit of the citizens of the City; and WHEREAS, prior to or following the approval by the voters of a proposition to sell the electric utility, the City Council would consider the enactment of an ordinance to establish a trust fund for the receipt, investment, and use of proceeds from any such sale; to direct that revenues ofthe trust fund, after inflation proofing, be used, for example, to (1) hold stable or reduce property taxes, (2) reinvest in the trust fund, and (3) fund capital improvements; and to require any change in the use of proceeds from the Electric Utility sale to be approved by the voters; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. At the special municipal election to be held on November 7, 2000, the City shall submit to the qualified voters of the City the question of approval of the concept to sell the Seward Electric Utility. Pursuant to Section 13.4 of the City Charter, an affirmative vote by three-fifths of the qualified electors voting on the proposition is required to approve the sale of a municipal utility. Section 2. The proposition shall be substantially in the following form: CITY OF SEWARD, ALASKA RESOLUTION 2000-092 Proposition No.2 Sale of Seward Electric Utility Shall the City of Seward sell the Seward Electric Vtility for a price consistent with the City's Code and Charter and upon terms to be negotiated which, in the estimate of the City Council, would yield benefits to the City at least comparable to the benefits reasonably expected to be received by the City from the Seward Electric Utility, and deposit the net sale proceeds in a trust fund with terms and conditions to be established by ordinance? A yes vote approves the concept of a sale; a no vote disapproves the concept of a sale. Section 3. The above proposition shall be printed on a ballot which may set forth other propositions. The proposition set forth in Section 2 above shall be printed in full, and the following words shall be added as appropriate and next to a space provide for marking the ballots: Proposition No.2 Yes No Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 17 day of August, 2000. THE CITY OF SEWARD, ALASKA r~- rI _ {J.~ 4.,. Edgar Blatchford, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: FdiCd Ad Patrick Reilly City Clerk (City Seal) ",.,....",# ,....,.. Of S~I1!.",,, ~ ~~ ......... ~...:...41! ~ Ci' ..... f-PO.q;......;"YA ~ ~. . .".~~..'" i'! ~. ~ -: ....... \: 5 · \ SEAL j. = : . - :: .. \ I .. OJ.. ~.~ ~''':--.~ I "'- -:.,~.".tl~....~~; '~4f OF ,..~,~.. ",...u,,"~