HomeMy WebLinkAboutRes1998-139
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-139
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO TERMINATE
PARTICIPATION IN THE NORTHERN INTERTIE AS OF JANUARY 1,
1999
WHEREAS, in 1993, the Alaska Legislature granted $90 million to the seven Railbelt
utilities to partially pay for the cost of construction of two new electrical transmission lines; and
WHEREAS, one line is scheduled to be built between Healy and Fairbanks (Northern
Intertie) and the other is scheduled to be built between Anchorage and the Kenai Peninsula (Southern
Intertie); and
WHEREAS, the grant was divided equally between the two interties ($45 million each) with
Chugach selected to build the Southern Intertie, and Golden Valley selected to build the Northern
Intertie; and
WHEREAS, the Northern Intertie is now expected to cost approximately $75 million, or $30
million in excess of the grant funds; and
WHEREAS, in 1996 the City of Seward signed the Northern Intertie Construction
Management Agreement between the six Railbelt utilities as authorized by Resolution 96-005; and
WHEREAS, the City of Seward wanted to keep their options open as to actual financial
participation in the Northern Intertie until more information on the costlbenefits were available; and
WHEREAS, it is now known that the City's share of the additional cost will be a minimum
of $430,000 (probably in the range of $600,000) with no anticipated financial return on that
investment; and
WHEREAS, it is not anticipated there will be any need for the City of Seward to ever
transmit power over this new line which will run between Healy and Fairbanks; and
WHEREAS, Golden Valley Electric Association has progressed with the design and
environmental impact statement to the point where they will be ready to start construction in 1999;
and
CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-139
WHEREAS, at the last Intertie Participants Group meeting, it was requested that a decision
be made by December 15,1998, from all of the other Railbelt utilities on whether or not we will be
participating financially in the Northern Intertie; and
WHEREAS, although none ofthe other utilities, including Seward, could make a decision
at that meeting without discussions with their Boards of Directors/Assembly/Council, the general
tone of the conversation was that most if not all of the utilities (except Golden Valley) will opt out
of the Northern Intertie;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council authorize the City Manager to terminate participation in the
Northern Intertie as ofJanuary 1, 1999.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd
day of November, 1998.
THE CITY OF SEWARD, ALASKA
~~~
Lowell R. Satin, Mayor
AYES: Blatchford, Callahan, Gage, Orr, Satin, Shafer
NOES:
ABSENT: King
ABSTAIN:
ATTEST:
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