HomeMy WebLinkAboutRes2013-025 Sponsored by: Hunt
bar CITY OF SEWARD, ALASKA
RESOLUTION 2013 -025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING PAYMENT IN THE AMOUNT OF $60,000 TO
CONTRIBUTE TO THE HIRING OF A CHIEF EXECUTIVE OFFICER FOR
ALASKA RAILBELT COOPERATIVE TRANSMISSION ELECTRIC
COMPANY, AND APPROPRIATING FUNDS
WHEREAS, a regional generation and transmission (G &T) cooperative is proven to he
financially optimal for the residents of the Railbelt in state sponsored studies; and
WHEREAS, having a regional G &T would lower and stabilize energy costs; and
WHEREAS, the City of Seward, along with other Railbelt utilities, formed the Alaska
Railbelt Cooperative Transmission and Electric Company (ARCTEC) to serve that purpose; and
WHEREAS, the hiring of a Chief Executive Officer enables ARCTEC to pursue financial
independence; and
WHEREAS, each utility belonging to ARCTEC is contributing an equal share to the hiring
of the CEO.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to contribute $60,000 from account 501-
5400 -5130 in 2013.
Section2. Funding in the amount of $60,000 is hereby appropriated from the electric retained
earnings, to the contracted services account no. 501 -5410 -5390.
Section 3. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8 day
of April, 2013.
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -025
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THE CITY OF SEWARD, ALASKA
David Seaward, ayor
AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
a ket
ohanna Ki "Ty, CMC
ity Clerk
(City Seal)
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Council Agenda Statement
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Meeting Date: April 8, 2013 =e q �
Through: City Manager Jim Hunt 4irtA
From: Electric Utility Manager John Foutz
Agenda Item: Contribute $60,000 in 2013 to ARCTEC to hire the selected candidate for
Chief Executive Officer
BACKGROUND & JUSTIFICATION: Following the recommendations of an Alaska Energy
Authority (AEA) sponsored Study for 2008 six utilities worked together and formed the Alaska
Railbelt Cooperative Generation and Transmission Company (ARCTEC) in 2010. The study
recommended this effort finding that a regional Generation & Transmission cooperative (G &T) was
necessary to lower costs to the residents and businesses. Seward was among the 5 original founding
members of ARTEC. Up to now Joe Griffith, from Matanuska Electric Association (MEA), has
been the acting Chief Executive Officer of ARCTEC. The next step for ARCTEC to become a G &T
is to hire a CEO to facilitate financial independence. The representatives of all ARCTEC member
utilities have selected a candidate for the CEO position and would like to extend an offer for hire.
Each utility will be contributing $60,000 each year for the 2013 salary and expenses of the CEO.
INTENT: For the Seward Electric Utility to be authorized to contribute $60,000 for the CEO
position in ARCTEC so the cooperative can facilitate financial independence.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan (document source here): 3.7.3.1 and 3.7.3.2 X
2. Strategic Plan (document source here): X
3. Other (list): X
FISCAL NOTE: The funds for this have not been allocated in the 2013 budget. Funding for this
will come from electric reserves. This expense may become a recurring annual cost of the electric
utility.
Approved by Finance Department: JG2�
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Council approve Resolution 2013- 021 authorizing the allocation of funds to contribute to
ARCTEC for the salary and expenses of a CEO in 2013.
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