HomeMy WebLinkAboutRES2023-089 Electric Sale Ballot PropositionSponsored By: Regis
CITY OF SEWARD, ALASKA
RESOLUTION 2023-089
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SUBMITTING THE QUESTION OF SELLING THE CITY OF
SEWARD ELECTRIC UTILITY TO THE QUALIFIED CITY OF SEWARD
VOTERS AT A REGULAR ELECTION IN AND FOR THE CITY OF
SEWARD ON OCTOBER 3, 2023
WHEREAS, the City of Seward owns and operates the electric utility with approximately
2,900 meters and limited financial resources; and
WHEREAS, the financial burden associated with increasing technological demands,
completing infrastructure improvements, meeting more stringent industry standards and attracting
and maintaining qualified employees, has led to the City Council's consideration of selling the
City's electric utility; and
WHEREAS, it is in the public's interest to provide consumers with safe and reliable
electric service along with reasonable rates and value-added programs and services while, also
managing the City's assets for the long-term benefit of the citizens of the City; and
WHEREAS, Seward City Charter 13.4 permits the council to 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 the electors (voters) of the city voting
on the proposition.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City shall submit the following proposition to the qualified voters of the
City at the October 3, 2023, regular city election.
Proposition No. 1
Sale of Seward Electric Utility
Shall the City of Seward sell the Seward Electric Utility with the negotiated terms
and conditions previously approved by City Council that are contingent on voter
approval?
Proposition No. 1
Yes
No
A yes vote approves the sale of the electric utility.
A no vote means the City of Seward retains the electric utility.
CITY OF SEWARD, ALASKA
RESOLUTION 2022-089
Section 2. This Resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 24th
day of July, 2023.
THE CITY OF SEWARD ALASKA
Sue McClure, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Osenga, Calhoon, Wells, DeMoss
Barnwell, McClure
Finch
None
Kris Peck
City Clerk
1
City Council Agenda Statement
Meeting Date: July 24, 2023
To: City Council
From: Norm Regis, Acting City Manager
Subject:
Resolution 2023-089: Submitting The Question Of Selling The City Of
Seward Electric Utility To The Qualified City Of Seward Voters At A Regular
Election In And For The City Of Seward On October 3, 2023
Background and justification:
With less than 3,000 electric meters on its system, the City of Seward's Electric Department has
limited resources, making it difficult for the utility to consistently invest in new infrastructure,
system maintenance, technology, and customer -focused programs and services.
In addition to the financial limitations, Seward's small number of customers and meters will make
it difficult for the City to maintain electric rate stability as necessary investments are made in the
areas mentioned above. A larger electric utility with thousands more customers and meters will
be able to spread expenses across its entire customer base, thereby ensuring more stability in
customer rates.
On June 12, 2023; the Seward City Council directed the City Clerk to solicit applications from the
public in order to create an Ad Hoc Committee which will explore the requirements associated
with rebuilding the Electric Utility. There is a recognition that this effort will be needed, regardless
of whether the Electric Utility is sold in the near future, or not.
A Special Election was held on May 2, 2023 and 58.4% of the voters were in favor of selling the
Electric Utility to Homer Electric Association. Based upon this, City Administration believes that
the majority of voters are in favor of selling the utility. With the forthcoming regulatory
requirements, increasing costs of doing business, and desire for expanded programs that are
available through selling to a larger utility, City Administration recommends placing the
proposition to sell the Electric Utility to Homer Electric Association on the ballot for the Regular
Election in October 2023.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.7.1.4 "Continue to upgrade and expand utilities to meet existing
needs and encourage future development."
Strategic Plan:
Other:
13.3 Utilities
Certification of Funds
Total amount of funds listed in this legislation: $ 0
This legislation (✓):
Creates revenue in the amount of:
$
x
Creates expenditure in amount of:
Creates a savings in the amount of:
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
Not budgeted
Not applicable
x
Fund Balance Information
Affected Fund (✓):
General
Boat Harbor
Motor Pool
Available Fund Balance
SMIC
Parking
Other
x
Electric
Water
Wastewater
Healthcare
Note: amounts are unaudited
$
Finance Director Signature: No Fiscal Impact
Attorney Review
x
Yes
Attorney
Signature:
Not Comments:
applicable
Administration Recommendation
x
Adopt
Resolution
Other: