amazon web services · viewpoint but they don't allow cannabis on the cruise ships. he...

12
UNAPPROVED May 5, 2016 Regular Ketchikan City Council meeting was called to order by Mayor Williams at 7:00 p.m., May 5, 2016, with the following members present: Dick Coose, Janalee Gage, Julie Isom, David Kiffer, Robert Sivettsen and Judy Zenge. Councilmember Kj Harris was absent. The Pledge of Allegiance was given by all persons in the Chambers. Staff present were Assistant Manager Martin, City Attorney Seaver, Police Chief Bengaard, Telecommunications Division Manager Cushing, Library Director Lyshol, Finance Director Newell, Water Division Manager Kleinegger, Museum Director Simpson, Electric Division Manager Donato, Electric Division Operations Manager Adams, Engineering Technician Brown, Public Works Director Hilson and City Clerk Suiter. •••• PUBLIC HEARING ON RESOLUTION NO. 16-2625 AMENDING THE 2016 GENERAL GOVERNMENT OPERATING AND CAPITAL BUDGET FOR THE MUSEUM DEPARTMENT- $4,720 Mayor Williams called the public hearing on Resolution No. 16-2625 to order at 7:00p.m. and requested public testimony. As there was no testimony, Mayor Williams declared the public hearing closed at 7:00p.m . •••• COMMUNICATIONS Inf01mation regarding the Swan Lake Fixed Wing Aircraft Service was laid on the table. Mayor Williams read the proclamation for Lemonade Day and presented it to Councilmember Isom, who was representing the Ketchikan Chamber of Commerce. PERSONS TO BE HEARD Kathleen Light, Executive Director of the Ketchikan Area Atts and Humanities Council, handed out three brochures: Celebration of the Sea Art Walk; Escaping, a gallery exhibit by Beth Antonsen; and the 2015 annual repott. She described each one and noted there will be a Torchnight performance tomorrow night at the Great Alaska Lumberjack arena. She pointed out several aspects of the annual report. Irene Anderson spoke regarding missing persons in Ketchikan. She was patticularly concerned about her cousin, saying there may have been missed opportunities concerning the incident. She described different things she has done to bring attention to those who are missing. She hoped if anyone else goes missing there may get to be a better protocol in place. 1

Upload: others

Post on 18-Jul-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 2016

Regular Ketchikan City Council meeting was called to order by Mayor Williams at 7:00 p.m., May 5, 2016, with the following members present: Dick Coose, Janalee Gage, Julie Isom, David Kiffer, Robert Sivettsen and Judy Zenge. Councilmember Kj Harris was absent.

The Pledge of Allegiance was given by all persons in the Chambers.

Staff present were Assistant Manager Martin, City Attorney Seaver, Police Chief Bengaard, Telecommunications Division Manager Cushing, Library Director Lyshol, Finance Director Newell, Water Division Manager Kleinegger, Museum Director Simpson, Electric Division Manager Donato, Electric Division Operations Manager Adams, Engineering Technician Brown, Public Works Director Hilson and City Clerk Suiter .

•••• PUBLIC HEARING ON RESOLUTION NO. 16-2625 AMENDING THE 2016 GENERAL GOVERNMENT OPERATING AND CAPITAL BUDGET FOR THE MUSEUM DEPARTMENT- $4,720

Mayor Williams called the public hearing on Resolution No. 16-2625 to order at 7:00p.m. and requested public testimony.

As there was no testimony, Mayor Williams declared the public hearing closed at 7:00p.m .

•••• COMMUNICATIONS

Inf01mation regarding the Swan Lake Fixed Wing Aircraft Service was laid on the table.

Mayor Williams read the proclamation for Lemonade Day and presented it to Councilmember Isom, who was representing the Ketchikan Chamber of Commerce.

PERSONS TO BE HEARD

Kathleen Light, Executive Director of the Ketchikan Area Atts and Humanities Council, handed out three brochures: Celebration of the Sea Art Walk; Escaping, a gallery exhibit by Beth Antonsen; and the 2015 annual repott. She described each one and noted there will be a Torchnight performance tomorrow night at the Great Alaska Lumberjack arena. She pointed out several aspects of the annual report.

Irene Anderson spoke regarding missing persons in Ketchikan. She was patticularly concerned about her cousin, saying there may have been missed opportunities concerning the incident. She described different things she has done to bring attention to those who are missing. She hoped if anyone else goes missing there may get to be a better protocol in place.

1

Page 2: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 2016

Tenence Robbins, representing Ketchikan Wellness Coalition, reminded everyone that there are a lot of youth using marijuana in Ketchikan, saying it is double the number of kids who use cigarettes. He went on to say youth use of marijuana in Colorado skyrocketed because kids think it is safe. He pointed out a young brain doesn't stop developing until the person is 25 years old. He said it is legal for adults but we should do what we can to prevent it getting into the hands of the youth. He also said next door to the location where the store might be located is a building that will be apartments.

Derek Meister spoke in support of marijuana retail sales in the community. He felt the people have spoken and the work that lies ahead is how to make it function and how to make it safe. He thought it was important to recognize it is an active market outside the purview of the law, and legalizing it provides safeguards and baiTiers. He also shared about an at1icle he read recently about what people on either side of an issue think about the people on the other side of it.

Jack Duckworth, representing Residential Youth Care, reminded he was re-directed to bring a one-time proposal about help obtaining a dishwasher for their facility. Mayor Williams said he would make sure there was an answer at the next meeting.

Eric Beimer handed out a paper regarding he and his partner's proposed marijuana shop. He said he has talked to people in the community about the shop, saying there is universal support. He felt there was a legitimate demand. He pointed out the concerns they have heard relate to noise and smell, and said they have been actively pursuing being good neighbors. He felt they would be a good addition to the neighborhood, bringing increased traffic to the area. He addressed the impact to the cruise ship industry, saying he was told the cruise ship people don't have an official viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty bins, verbal warnings, and signage. He stated their intent to offer on-site consumption and the restrictions they intend to place on such. He talked about the site they will be using and how they will improve it. He asked if the Council considered the alternatives to them as business owners, emphasizing cannabis is legal and is here. He commented it was the responsibility of parents to deal with the use of it by their own children. He answered numerous questions from the Council.

Carl Richey, speaking as a doctor, said he owns the building where the marijuana shop is going to be after citing his credentials. He said a lot of people are worried about drugs and noise, saying a similar thing was experienced with alcohol during prohibition. He commented he doesn't see many people dying because of marijuana but tobacco is the drug that causes people to die.

CONSENT AGENDA

Mayor Williams suggested moving several items to the Consent Agenda, including: the item concerning the Telecommunications Division procurement of Address Commander Software Suite and support services; the purchase of a rear end loader for the Solid Waste Division; a budget transfer relating to a preliminary structural analysis of the Ted Ferry Civic Center and the KPU Administration building; and a letter to the Ketchikan Gateway Borough Planning Commission concerning no objection to issuance of a couple of conditional use petmits. No objections were heard.

2

Page 3: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 2016

Councilmember Sivet1sen requested that the Consent Agenda item conceming the Swan Lake Fixed Wing Aircraft Service be considered separately; no objections were heard.

Approval of Minutes - Regular City Council Meeting of April 21,2016

Moved by Sivet1sen, seconded by Isom for approval of the minutes of the regular City Council meeting of April21, 2016.

Motion passed with Coose, Kiffer, Gage, Isom, Zenge and Sivertsen voting yea; Harris absent.

Memorandum of Agreement - Twelve-Month Extension of Contract No. 13-12 - Bayview Cemetery Maintenance and Operations

Moved by Sive11sen, seconded by Isom the City Council authorize the city manager to execute the Memorandum of Agreement extending Contract No. 13-12, Bayview Cemetery Maintenance and Operations, between the City of Ketchikan and PM Landscaping for the 2016-2017 contract year.

Motion passed with Coose, Kiffer, Gage, Isom, Zenge and Sive11sen voting yea; Han·is absent.

Resolution No. 16-2625 - Amending the 2016 General Government Operating and Capital Budget - Museum Department- $4,720

Moved by Sivertsen, seconded by Isom the City Council approve Resolution No. 16-2625 amending the 2016 General Govetument Operating and Capital Budget to provide a supplemental appropriation for the Museum Depat1ment in the amount of $4,720; and establishing an effective date.

Motion passed with Coose, Kiffer, Gage, Isom, Zenge and Sivertsen voting yea; Harris absent.

Revised Agreement Between the City of Ketchikan and the University of Alaska Southeast - Administration of Ketchikan Campus Library

Moved by Sivertsen, seconded by Isom the City Council approve the revised agreement between the City of Ketchikan and the University of Alaska Southeast for administration of the Ketchikan Campus Library reflecting state imposed funding reductions for the period July 1, 2015 through June 30, 2018 and authorize the city manager to execute the revised agreement on behalf of the City Council.

Motion passed with Coose, Kiffer, Gage, Isom, Zenge and Sive11sen voting yea; Harris absent.

3

Page 4: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 2016

Exempting the Procurement of Address Commander Software Suite and Maintenance/Support Services for the Telecommunications Division - Incognito Systems - Deferred From April 21, 2016

The motion before the Council was:

Moved by Sivet1sen, seconded by Kiffer pursuant to subparagraph 6 of Section 3.12.050(a) of the Ketchikan Municipal Code, the City Council exempt the procurement of an Address Commander software suite and annual maintenance and support services for the Telecommunications Division from the competitive bidding and written quotation requirements of the Ketchikan Municipal Code; authmize the general manager to enter into an agreement for the procurement of an Address Commander Software suite and annual maintenance and supp011 services with Incognito Systems of Vancouver, British Columbia in an amount not to exceed $27,000; and approve funding in the amounts of $27,000 from the Telecommunications Division's 2016 Network Monitoring Capital Account.

Motion passed with Coose, Kiffer, Gage, Isom, Zenge and Sive11sen voting yea; Harris absent.

Award of Contract No. 16-22 - Rear End Loader for Refuse Collection, RWC International, Ltd

Moved by Sivet1sen, seconded by Isom the City Council accept the bid of RWC International, Ltd of Anchorage, Alaska in the amount of $182,930 for Contract No. 16-22, Rear End Loader for Refuse Collection; approve funding in the amount of $182,930 from the 2016 Solid Waste Division's Packer Vehicle Replacement Capital Account; and direct the city manager to execute the contract documents on behalf of the City Council.

Motion passed with Coose, Kiffer, Gage, Isom, Zenge and Sivertsen voting yea; Harris absent.

Budget Transfer - Preliminary Structural Analysis of the Ted Ferry Civic Center and KPU Administration Building

Moved by Sivettsen, seconded by Isom the City Council authmize the general manager to enter into a professional services agreement with Quantum Consulting Engineers of Seattle, Washington in an amount not to exceed $6,500 for preliminaty structural analyses of the Ted Ferry Civic Center and the KPU Administration Building to identify systemic settlement issues associated with both buildings; approve a budget transfer of $3,250 from Appropriated Reserves of the Public Works Sales Tax Fund to the Engineering Division's 2016 KPU Admin Building Foundation Stabilization Capital Account; and authorize funding from the Ted Ferry Civic Center's 2016 Door Replacement and the Engineering Division's 2016 KPU Admin Building Foundation Stabilization Capital Accounts.

Motion passed with Coose, Kiffer, Gage, Isom, Zenge and Sivertsen voting yea; Ranis absent.

Letter to Ketchikan Gateway Borough Planning Commission re: Conditional Use Applications - Mayor Williams

4

Page 5: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 2016

Mayor Williams asked if there were any objections to submitting this letter to the Planning Commission, and none were heard.

Award of Contract No. 16-21- Swan Lake Fixed Wing Aircraft Service, Pacific Airways, Inc.

Moved by Sivertsen, seconded by Isom the City Council deny the appeal of Taquan Air, Inc. conceming award of Contract No. 16-21, Swan Lake Fixed Wing Aircraft Service to Pacific Airways, Inc. to the next regular Council meeting.

Moved by Sivertsen, seconded by Kiffer to defer until the next regular Council meeting.

Motion to defer passed with Coose, Kiffer, Gage and Sivertsen voting yea; Isom and Zenge voting nay; Ranis absent.

Moved by Sivet1sen, seconded by Isom the City Council accept the bid of Pacific Airways, Inc. in the amount of $420 per flight for Contract No. 16-21, Swan Lake Fixed Wing Aircraft Service; authmize funding from the 2016 Electric Division's Swan Lake Travel-Business Account No. 600.01 ; and direct the general manager to execute the contract documents on behalf of the City Council.

Electtic Division Operations Manager Adams answered questions from the Council.

Moved by Sivertsen, seconded by Kiffer to defer until the next regular Council meeting.

Motion to defer passed with Coose, Kiffer, Gage and Sivertsen voting yea; Isom and Zenge voting nay; Ranis absent.

UNFINISHED BUSINESS -None

NEW BUSINESS

Update of City Employee Policies

Councilmember Sivertsen said he discussed the policies with the human resources division manager, and was told they have been looking at a number of updates for quite a while. He said he heard that it will now be more searchable and felt we can back off this for now. He noted there will be personnel moving out of the office and it will take a while to get back to it.

Budget Transfer - Amendment No. 1 - Centennial Building Gallery Expansion and Restroom Renovations - Welsh Whiteley Architects, LLC

Moved by Sivet1sen, seconded by Zenge the City Council authorize the city manager to enter into Amendment No. 1 to Contract No. 15-14, Centennial Building Gallery Expansion and Restroom Renovations Design, between the City and Welsh Whiteley Architects, LLC in an

5

Page 6: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 2016

amount not to exceed $4,671 for preparation of a 100% schematic design cost estimate, bringing the total contract cost to $88,1 04; approve a budget transfer of $500 from Appropriated Reserves of the Public Works Sales Tax Fund to the Museum Department's Centennial Building Gallery Expansion and Restroom Expansion Capital Accounts; and authorize funding in the amount of $4,671 from the Museum Depattment's Centennial Building Gallery Expansion and Restroom Expansion Capital Accounts.

Engineering Technician Brown answered questions from the Council.

Motion failed with Coose, K.iffer, Gage, Isom, Zenge and Sivertsen voting nay; Harris absent.

Prohibition of Marijuana Establishments Within the Downtown Area

Moved by Coose, seconded by Sivertsen the City Council direct staff to take such action regarding the prohibition of marijuana establishments within the downtown area as determined appropriate by the City Council.

Councilmember Coose expressed his concern of having a shop in the downtown area, and he was also concerned about the zoning of the area. He said preventing this would not prevent retail sales in town, just in the downtown. He felt parking was an issue, and he didn't want Ketchikan to become known as a marijuana destination. He went on to say he felt this particular conditional use permit should be protested, and there shouldn't be a zoning crack to allow it downtown.

Councilmember Zenge said she is really wonied about branding, saying she felt they have a good business plan. She expressed her reservations about having such a store in the downtown.

Councilmember Isom said she has been back and f01th, but if we are really that concerned about what people see in downtown Ketchikan, we would have gotten rid of all the bars. She didn't feel the business would present a bad face, and they will be improving an area that has been in disrepair. She felt the Council may be letting personal opinions get in the way of letting a business move forward.

Councilmember Coose said he is looking at what it will look like to cmise ship passengers corning into town. He said he supported the Council protesting the business' conditional use permit.

Councilmember Sivertsen said he talked to people who are pro-marijuana. He discussed Seattle, noting there are some areas that don't allow it. He said he is trying to look at whether it will be an enhancement to the downtown. He said it will be a business in our community, and he sees the owners coming at it from a responsible side. He discussed that any protest could not be capricious, and said he would like to send this back for staff review as to what our legal responsibilities are.

Councilmember Gage said she is not a fan of marijuana being legal, as she deals with addiction every day. She said she'd like to see more of how the education of youth would be implemented.

6

Page 7: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 20 16

She said she liked the plan the business owners have, but when she was in downtown Portland she was bombarded by it everywhere.

Councilmember Coose suggested asking the Planning Commission to delay acting on the conditional use permit to allow the Council more time to consider information.

Mayor Williams reminded that the conditional use pennit would be renewed every three years. He also reminded the Council would be able to comment on the state license.

Councilrnember Sivertsen said he would like to see something brought forward to propose to the Borough on the number of establishments relative to distance or concentration in the downtown area. He also said he would like to see something drafted in the way of an excise tax, perhaps along the line of five percent.

After further discussion, Mayor Williams said the direction is that the Council will not to protest at this time. Clerk Suiter clarified that if the motion failed, the Council would not protest the conditional use permit at this time.

Motion failed with Coose voting yea; Kiffer, Gage, Isom, Zenge and Sivertsen voting nay; Ranis absent.

APPROVAL OF VOUCHERS

Moved by Isom, seconded by Kiffer for approval of vouchers to Ketchikan Daily News in the amount of $2,240.93.

Motion passed with Coose, Kiffer, Gage, Isom, Zenge and Sivertsen voting yea; Ranis absent.

CITY MANAGER'S REPORT

Schedule of General Government and KPU Appropriated Reserves Through the City Council Meeting of April 21, 2016

In his repott, Manager Amylon provided the Council a schedule of the current balance of Appropriated Reserves of various funds of General Government and KPU through the City Council meeting of April 21 , 2016.

Spring Clean-Up Week

Manager Amylon included a memorandum from Solid Waste Superintendent Neeley summarizing the results of the week-long collection effort during spring clean-up week. He expressed his appreciation to Mr. Neeley and the entire staff of the Solid Waste Division.

General Government/Ketchikan Public Utilities Financial Statements for the Quarter Ending March 31, 2016

7

Page 8: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 2016

Manager Amyl on transmitted the 2016 first quarter financial statements for General Government and Ketchikan Public Utilities.

Delay of the Completion of the 2015 Audit

Manager Amylon inf01med the Council that there would be a delay in the completion of the 2015 audit due to an infotmation delay from the State of Alaska Division of Retirement and Benefits relative to the new pension accounting standard.

Report on Current and Future Bond Sales

Manager Amylon provided a report from Finance Director Newell regarding cun·ent and future bond sales.

2016 Sales Tax Report No.3

Manager Amylon included a repo1t from Finance Director Newell concerning sales tax for the year.

Appointment of Acting Museum Director

Manager Amylon informed he was appointing Senior Curator of Programs Anita Maxwell to serve as acting museum director, noting she would be assisted by Senior Curator of Collection Haley Chambers.

Preliminary Schedule Front Street, Mill Street and Stedman Street and Tongass Avenue Water and Wastewater Utilities Replacement

Manager Amylon provided a preliminary report from Assistant Public Works Director Brakke detailing likely schedules for the work relative to the Front, Mill and Stedman Streets and Tongass Avenue Water and Wastewater Utilities Replacement Project.

Councilmember Coose said at some point in time he would like to see a more refined schedule as infonnation becomes available.

KPU MANAGER'S REPORT

Purchase of Wireless Devices - V erizon Wireless

In response to questions at the meeting of April 21 , 2016, Manager Amylon provided infotmation from Telecommunications Division Manager Cushing regarding the number of wireless devices to be purchased and whether unsold inventory could be returned to Verizon Wireless.

CITY CLERK'S FILE- None

8

Page 9: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 2016

CITY ATTORNEY'S REPORT

City Attomey Seaver said he understands about excise tax. He noted proximity regulations is something that the Borough would do as a pat1 of zoning.

FUTURE AGENDA ITEMS

Councilmember Kiffer said he would like to see the Council give Mr. Duckworth an answer, and Mayor Williams said it would on the next agenda.

MAYOR AND COUNCIL COMMENTS

In addressing comments that were made about missing persons, Councilmember Coose said he wondered if the City could post things as necessary on Facebook, and he noted she kept questioning whether there are some procedures, which he felt should be clearly identified.

Councilmember Gage thought that considering the Borough is putting a cigarette tax up to a vote, saying the rest of the state has implemented a tax since 2003. She felt it speaks volumes if we can't acknowledge that a cigarette tax can lower the use of youth tobacco, commenting it also lowers the cost of cancer. She said the state pays out millions for cancer treatment, and Ketchikan is at about $1 million that goes out in medical expenses. She felt we need to consider that we care about our youth, and it does work.

Councilmember Isom said Lemonade Day is coming on May 21, and the Chamber is sponsoring it. She explained it is when kids get out and sell lemonade, and the Chamber gives out backpacks full of business inf01mation. She said she will be in the Plaza handing out backpacks and getting kids to sign up. She said she has a lemon head for people to wear if they want to help.

Councilmember Sivertsen addressed the Swan Lake Project, saying presently SEAP A is mobilizing and getting ready to work on the project. He said that means they are bringing a plexi-barge out to the site, putting it in the lake and putting a one hundred ten-ton crane on it to work on the raise for Swan Lake. He reminded two years ago we were talking to SEAP A and asking them what they were going to do to help keep us out of diesel bumers. He pointed out this is the answer because it will raise the pool by 25%.

He felt the problem is with the present rains that we've had and the likelihood of continued rains, if the dam is spilling they can't work on the spillway to get the project done. He continued that means the contractor will tie his barge off and let it sit until the water comes down.

He thought there had been communication between the City and SEAP A, and SEAP A has requested the City draw on Swan Lake so they can get water level down maybe three feet so it is manageable and this may be a practice throughout the year. He reminded this is a project that benefits Ketchikan, and the only way we can bum water out of that lake feasibly to meet these conditions is through the turbines.

He continued the turbines will take about 420 cubic feet per second for each turbine. He noted there is a 10 or 12 inch pipe in that, but it is a very small volume and won't produce what they

9

Page 10: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 2016

need. He said what SEAP A has done is order a very big toaster for $250,000, and what they are going to do is plug it in so they can run a turbine and bum up the power in heat so they can keep the lake down. He emphasized this may not meet their needs because it's not here yet.

In response to Councilmember Sivettsen, Ed Schofield of SEAP A said they expect the toaster to be delivered on site about the 16th or 1 i'\ and it will take about a week to install and commission it. He said the lake is seven inches from spill. Councilmember Sivettsen asked how fast it will drop if we are running the turbines, with the understanding this will cost a little bit because we have to pay for the power, but he thought SEAP A has offered to do the spill computation like we do with Whitman. Mr. Scofield said we can pull the lake down about eight inches a day, but right now because of the warm weather and the fact the KPU systems are producing at their maximum as well, we're short on power needs to meet it. He continued right now we are producing about 8-10 megawatts out of the plant, which is about 6/1 Oths out of the lake if we have no inflows. But, he went on to say, we've been getting an inch every other day and an inch brings the lake up a little over a foot.

In response to Councilmember Sivettsen's question regarding how KPU can work with this project and how we can help draft that and the estimated costs to enter into an agreement like this, Electric Division Manager Donato said he wears two hats: serving as a member of SEAP A on its board and serving KPU as its electric division manager. He said we've looked at this for some period of time and we've got to bring the lake down a huge quantity, five to eight feet. He felt we're really late in the game at this point, saying we would have to do something really drastic on our (KPU's) end to take that much water and generate electricity.

He continued the number he came up with, after he and Bob Newell met with Mr. Schofield and Eric Wolf, was something along the order of 17.5 gigawatt hours, or $1.1 to $1.3 million. He reported he was on a phone call on Tuesday with other member utilities, and they essentially thought KPU should "take one for the team." He explained they looked at four plans, the fourth of which was the toaster. He reminded the toaster bums off the energy and nobody benefits. He suggested giving power away to the three communities for a week or two, rather than just making Ketchikan pay for it all. He said right now the power that is coming out of Swan is going to the two other member communities as well. He felt this way the project could benefit all three conununities. He said they need a load bank and if it's free, we can turn off our generation and tum on all the lights. He pointed out on the phone call the director of SEAP A said he wanted to bring the lake down five to eight feet in the next two weeks, and Mr. Donato wasn't sure it was conceivable.

Councilmember Sivettsen thought that one of the problems with free power was that SEAP A wouldn't get any revenue, which would mean there might be no rebate because they would still have to expend money for the time we are giving power away for free. Mr. Donato reminded he didn't know what the revenue profile is for the rest of the year, but we are talking about right now trying to get the spillway clear so they can mobilize.

Councilmember Sivertsen said what he is looking for is four hands from the Council to authorize staff to deal with SEAPA to come to some sott of agreement and not have to bring it back to the Council. He said he didn't know what the agreement would be, but the delay in the contract is going to cost the community as well as SEAP A.

10

Page 11: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 2016

In response to Mayor Williams, Electric Division Manager Donato said the way they left it last week in the board meeting was the SEAP A board approved the procurement of the toaster, which is a 5 megawatt load banlc He said his suggestion was to get two of them coming because he didn't know that five was enough for the period they want to bring the lake down. He said he didn't know if the three member communities could bum off enough water.

Mayor Williams said we should continue figuring out a plan to try to make this happen; otherwise, we need to delay the project. Mr. Schofield said that was all they were asking. He pointed out they need not only the 5 megawatt load bank out there, but a predictable load because they can't hope that tomonow is going to bring enough generation or else they will need to shut the job down.

Mayor Williams said there should be another meeting with members of the SEAP A board as well as others involved. Councilmember Sivertsen reminded he was the chaiiman of the SEAPA board for a number of years, and he tried to stop the division of north and south because we all benefit from the projects we have. He said we drag a lot of power from Tyee over the year and we would not be as long in power as we are if we hadn't had that opportunity. He said he didn't see it as a SEAP A problem or a KPU problem, but rather a community problem because if the project stalls we're going to pay for it later on. He recognized it was going to cost money because as long as we have lots of water we're going to purchase well below the purchased power that we would nonnally be using at this particular point in time. He went on to say he didn't want to waste money but we've got to do something.

Mr. Schofield said the contractor will be on site on May 13, and if the spillway is spilling and we have to put them on hold, we just lost $1.3 million in costs. Mr. Donato said if we're going to bum off some power, he just needs to know how many millions of dollars the Council is going to authorize and we'll start burning off the power.

Councilrnember Sivertsen said he was talking about four hands that would allow something to be worked out that won't have to be brought back to the table. Mayor Williams said he wanted to be part of it, and a plan needs to be worked on.

Assistant Manager Martin said if the Council is dii·ecting staff to set up a meeting with other SEAP A staff as well as the Mayor and Councilmember Zenge, it can be done. He went on to say that if we're going to go back and sit down and say we don't have the authorization to spend $1.3 million, i.e. SEAP A needs to have us buy it for $1.3 million, then it is sort of a moot point. He said we can set up a meeting and from that maybe we can get some direction. Mayor Williams said set up the meeting.

Mr. Schofield said we have a plan that works, and Mayor Williams said he didn't know if that was going to happen. Councilmember Sivertsen said the load bank is about $250,000, which Mr. Schofield confirmed is a lease for six month. Councilmember Sivertsen also confirmed this was patt of the plan. He said he is concemed if we don't get the projecting going and it is delayed, it will take us into winter. Mr. Schofield said the initial plan was to control the lake at five feet, and anything beyond that becomes an added cost to the contractor. He went on to say having the

11

Page 12: Amazon Web Services · viewpoint but they don't allow cannabis on the cruise ships. He didn't feel they would be putting an undue strain on cruise ship passengers. He discussed amnesty

UNAPPROVED May 5, 20 16

communities draw down the power isn't predictable, and what SEAP A needs is to be able to call KPU when they need another five and have KPU back off.

Mayor Williams asked about someone doing the radio, and no one offered.

OTHER NEW BUSINESS - None

EXECUTIVE SESSION - None

ADJOURNMENT

As there was no further business, the Council adjourned at 9:27p.m.

ATTEST:

Katherine M. Suiter City Clerk

FYI ITEMS INCLUDED

Lew Williams III, Mayor

Rendezvous Senior Day Services, Inc.'s Quarterly Activity and Financial Repot1s - January Through March 20 16

Unapproved Minutes of the April 15, 2016 Ketchikan Gateway Borough Ad Hoc Marijuana Advisory Committee Meeting

Southeast Alaska Independent Living (SAIL) Quat1erly Financial Report - January through March 2016

12