HomeMy WebLinkAboutRes2022-067 Research Sale of Electric Sponsored by: Mayor Terry&Council Member Calhoon
CITY OF SEWARD,ALASKA
RESOLUTION 2022-067
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, DIRECTING THE CITY MANAGER TO DEVELOP A
TIMELINE AND PROCESS FOR EXAMINING THE ADVANTAGES AND
DISADVANTAGES OF SELLING THE ELECTRIC UTILITY AND BRING
RECOMMENDATIONS BACK TO CITY COUNCIL FOR ADOPTION
WHEREAS,the City of Seward currently owns and operates an electric utility; and
WHEREAS,on November 7,2000,City Council set a ballot proposition to sell the electric
utility based on deregulation, industry changes, and benefits to the public that included a future
trust fund from sale proceeds. The proposition failed to receive the required three-fifths of the
electors; and
WHEREAS, at various instances since that time, Administration, Elected Officials and
Public Members have proposed reviewing again the prospect of selling the Electric Utility; and
WHEREAS,it is crucial to have ample public involvement,full vetting of the advantages
and disadvantages, and education prior to conducting another ballot proposition in preparation of
a sale; and
WHEREAS, some items under consideration will include the continuation of quality
electric services and reasonable rates while at the same time seeking to manage City assets for the
long-term benefit of the citizens; and
WHEREAS,other items to consider include safety, accessibility for customers,providing
timely responses to inquiries, planning for and making system improvements, future economic
development,retaining local generation and staff; and
WHEREAS,the process moving forward could include involving the Port and Commerce
Advisory Board with task items,customer and employee surveys,public comments and questions,
town hall meetings, valuation reports of current and future infrastructure, and entertaining or
continuing discussions with potential purchasers; and
WHEREAS,the outcome of the process will provide a current evaluation of the question
and a recommendation for or against moving forward with an updated ballot proposition to sell
the utility.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Council directs the City Manager to develop a process and timeline to
CITY OF SEWARD, ALASKA
RESOLUTION 2022-067
study the option to sell our electric utility.
Section 2. The City Manager will bring the process and timeline recommendations to
Council for approval at the June 13, 2022 Regular Council Meeting.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9th
day of May, 2022.
TH CI Y F S ARD
isty Terry, ayor
AYES: McClure, Osenga, Calhoon, Casagranda, DeMoss, Terry
NOES: None
ABSENT: Wells
ABSTAIN: None
ATTEST:
Brenda J. Ball , M C
City Clerk
(City Seal) . OF
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City Council Agenda Statement
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Meeting Date: May 9, 2022
IOW
To: City Council ,q
From: Mayor Terry and Council Member Calhoon
Agenda Item: Resolution 2022-067: Directing the City Manager to Develop a Timeline and
Process for Examining the Advantages and Disadvantages of Selling the
Electric Utility and Bring Recommendations Back to the City Council for
Adoption
Background and justification:
On November 7, 2000, the City Council set a ballot proposition to sell the electric utility based on
deregulation, industry changes, and benefits to the public that included a future trust fund from sale
proceeds. The proposition failed to receive the required three-fifths of the electors.
Since that time, administration, elected officials and public members have proposed reviewing the
prospect of selling the electric utility.
The current resolution proposes to direct the city manager to develop a process and timeline to
study the option to sell the electric utility and to bring the process and timeline to the city council on
June 13, 2022.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan:
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ 0
This legislation (✓):
x Creates revenue in the amount of: $ 0
Creates expenditure in amount of: $
Creates a savings in the amount of: $ _
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
x Not budgeted
Not applicable
Unassigned Fund Balance and Available Unrestricted Cash Balance Information
Fund (✓):
General SMIC Electric x Wastewater
Boat Harbor Parking Water Healthcare
Motor Pool Other
Finance Signature: (").t(L)Iyi v''
Attorney Reviews( Administration Recommendation
Yes x Adopt Resolution
x Not applicable Other: