The borough assembly held a second reading of a proposed amendment to Wrangell's municipal code during their meeting Tuesday. The amendment would be to chapter 15.12, Electricity, and would add a section that covers rate stabilization. This amendment was first brought up during the city's recent budget workshops, according to the meeting's agenda packet, where the assembly requested a "rate stabilization fund" be created to help offset increased power costs to residents in case the city had to switch to diesel power. According to the agenda packet, this fund in the amount of $250,000, would be used to establish the fund. There would also be a small rate increase acting as a surcharge to grow this fund, which the assembly would establish via resolution. The proposed amendment would establish this stabilization fund in the code.
This amendment went through a first reading on June 25, with several recommended changes by the assembly. The proposed changes include minor grammatical changes and additions of language allowing the assembly to make more than one revision per fiscal year if necessary.
During the second reading of the ordinance in this meeting, community member Joan Sargent voiced a few concerns she has. She supported the idea of a rate stabilization fund, she said, but wanted to know what constituted a "sufficient level" the assembly would try to grow the fund to. She also wanted some clarification on language in the amendment allowing the assembly to make more than one rate change in a year. There was some debate about putting a cap on the fund, or leaving it open to grow as much as possible. The assembly decided, after discussion, that they would come to a decision in the next assembly meeting after more information is gathered. As to Sargent's second concern, Borough Manager Lisa Von Bargen said that this language simply gave the assembly the ability to adapt the rate as needed and respond to emergency situations. She also added that the assembly changing the rate more than once a year would be very unlikely, and not recommended by accountants.
There were concerns amongst the assembly, as well. Assembly Member David Powell wondered why a rate change would be needed at all, and also argued that a cap on the fund was needed. Assembly Member Jim DeBord said that while he liked the idea of a rate stabilization fund, he was worried it was not being implemented in the best way. After some discussion on these and other topics, the assembly voted to hold a third reading of the proposal at their next meeting in August.
Another topic covered in the meeting was the possibility of requesting additional reimbursement from SEAPA. The power agency recently paid out over $800,000 to Wrangell and Petersburg to compensate them for a six-week run of diesel power, due to a water shortage at the hydropower plant in Tyee Lake. Von Bargen said that while the money Wrangell received covered much of the cost, there was still approximately $46,500 in cost that was yet to be covered. She wanted direction from the assembly before approaching the SEAPA board with a request for additional reimbursement. However, this was rejected. Vice-Mayor Patty Gilbert was the only assembly member who voted in favor of the idea, and Mayor Steve Prysunka was absent from the meeting that night. Assembly Member Powell said that it did not feel right to go to them asking for more money after they had already paid out a large amount. Plus, he said, as members of SEAPA it was only fair that they take the bad with the good, like the other communities the power agency serves.
Other items covered in the meeting include approval of a limited access agreement with Dan and Twyla Nore for a portion of Lot 6A of the Dan Nore Subdivision, and authorization of a negotiated sale of borough owned property.
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