I. FLAG SALUTE
II. ROLL CALL
III. PUBLIC HEARING
Section 5.4 of the CBJ Charter, allows the Assembly to adopt emergency ordinances when circumstances warrant. This emergency ordinance would add a new sales tax exemption for cost of power adjustments (COPA) on electrical power bills.
The purpose is to exempt the significant cost increases that Alaska Electric Light and Power (AEL&P) will be passing on to its customers based on the sharply increased cost of power production resulting from the loss of hydroelectric power from Snettisham. The present sales tax on the base electric rate would remain; only the increase, the COPA, would be exempted. The ordinance would be effective May 1, 2008, so that electricity delivered from that day forward would have the COPA exempted. As required by Section 5.4(b) of the CBJ Charter, the ordinance would expire 180 days after its adoption.
I recommend this ordinance be adopted.
B. Resolution 2441*
An Emergency Appropriation Resolution Appropriating $3,250,000 To The Manager For A Loan To Alaska Light And Power, And For Energy Conservation Measures, Funding Provided By The Budget Reserve.
The CBJ Charter, Section 9.10(b), provides in part: “Upon declaration by the assembly that a public emergency exists and describing the emergency in clear and specific terms, the assembly may make emergency appropriations. Such appropriations may be made by resolution...” This resolution would make appropriations under the emergency as declared by the Manager and Assembly regarding Juneau’s loss of hydroelectric power. The measure would appropriate $3 million to the Manager for a loan to Alaska Electric Light and Power, the terms of which are to be negotiated by the Manager. The purpose of the loan is to “provide AELP with working capital to allow its customers to annualize (spread out over 12 months) costs of power adjustment payments, and to protect Juneau’s most vulnerable citizens.” The resolution also provides minimum loan terms, providing that, if the loan term does not exceed 12 months, it shall not bear interest. To the extent the loan does exceed 12 months, it shall bear interest at the CBJ cost of funds rate as calculated by the Finance Director. In addition, the resolution would appropriate to the Manager $250,000 to implement energy conservation measures for CBJ.
I recommend this resolution be adopted.
IV. ASSEMBLY COMMENTS AND QUESTIONS
V. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS
VI. EXECUTIVE SESSION