HomeMy WebLinkAbout1983-1108 ADJOURNEDMINUTES OF THE ADJOURNED MEETING
ASHLAND CITY COUNCIL
November 8, 1983
PLEDGE OF ALLEGIANCE &
ROLL CALL
APPROVAL OF MINUTES
ORDINANCES, RESOLUTIONS &
CONTRACTS
Krebs Annexation Ord.
Hydroelectric Generator
Mayor Medaris called the meeting to order after leading the Pledge
of Alle:giance at 7:30 P.M. on the above date in the Civic Center
Council Chambers. Present were Acklin, Howard, Laws and Smith.
Dale arrived a few minutes later.
Smith moved to approve minutes of the regular meeting of
November 1, 1983 and Acklin seconded the motion which passed
unanimously on voice vote.
Second reading by title only was given an ordinance setting a
public hearing on a proposed annexation and withdrawal from Fire
District No. 5 (Krebs Annexation). Laws indicated he wishes to
change the policy regarding emergency clauses, in cases where the
action is simploy to call for a public hearing. He said that the
absence of an emergency clause delays an already lengthy process.
He requested addition of the emergency clause, thereby providing
the first reading of the amended ordinance tonight and the second
reading November 22. Almquist read the emergency clause amendments
which would provide for a public hearing on December 20, 1983 with
publications on December 6 and December 13. (Dale arrived at this
point). Upon motion by Acklin, seconded by Howard and carried,
the Ordinance was unanimously passed to second reading on roll call
vote.
Almquist called attention to his November 8 memo which had been
distributed earlier. He read most of it aloud to the Council, and
summarized the remainder. Laws advocated discussing funding of
the project with the Budget Committee. Almquist reviewed the
options, and he recommended that earnings of the Electric Utility
Reserve be used to fund debt service. He then introduced Herman
Steeck, of Steeck Electric Co., who described some of his past
work, including such local projects as the LostCreek and Applegate
projects.
Howard moved to award the project to Steeck Electric Co., and
authorize the Mayor and Recorder to execute the contract, and to
defer action on the funding method until the Budget Committee
has had a chance to make a recommendation.
Almquist suggested two possible money-saving measures. The
value incentive clause would allow equal sharing by the City and
the Contractor in the event that contract savings are approved
by all three parties (the contractor, the engineer and the City).
The other proposal is the opposite of the penalty for late com-
pletion; in the event that the contractor completes the project
ahead of schedule, he receives one-half of the value of the
energy produced between the actual and scheduled dates of com-
pletion.
....... continued 11/R/83 P. 1
__Adjourned Meeting Ashland City Council 11/8/J3 P.2
Hydroelectric Generator
continued
Dale commented favorably on the benefits of the value incentive
clause. He asked if it would apply to the turbine and generator.
Almquist indicated he would not want to make substitutions there.
Concerning payment of interest from the Electric Utility Reserve,
Smith asked about interest earnings from that source. Almquist
indicated $50,000 to $60,000 per year. Smith asked about using
the corpus of the Reserve to help fund the plant. Almquist indicated
it could be done. Interest earnings in future years would decline;
but there is a precedent in the airport fuel tanks project. Acklin
suggested a combination of sources could be used to fund the antici-
pated over-run, but she also wishes to consult with the Budget Comm-
ittee. Howard then added to his motion permission to apply the
value incentive clause and the sharing of the value of power
produced prior to scheduled date of completion. Smith seconded the
motion which passed unanimously on roll call vote.
ADJOURNMENT At 8:15 p.m., the meeting was adjourned.
Robert D. Nelson Medaris
Acting City Recorder Mayor