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MINUTES OF THE bfEETING OF THE CITY COUNCIL OF THE CITY OF UKIAH
NOV~tBER 9, 1981
The City Council convened in special session at 4:00 in the City Council
Chambers. The following Councilmembers were present: Hickey, Feibusch,
Snyder, Riley, Myers. Staff present: Kruth, Tillotson.
CONSIDERATION OF PARTICIPATION IN PROPOSED
NCPA HARRY ALLEN COAL FIRED ELECTRIC
GENERATION PROJECT
Subject report is Nevada Power Company sponsored coal project estimated
to deliver power at 85.5 mills/KWH in 1990 dollars. The fuel is to be
supplied with a 183 mile long slurry pipeline from a strip mine in
southern Utah. The City's initial participation would be in the amount
of $9000 to continue preliminary feasibility revision.
Councilman Hickey introduced Mr. Roger Fontes, NCPA representative, to
clarify and answer council questions. Mr. Fontes gave a progress report
explaining that most regulatory approvals for the project have been
received; that a new transmission system will need to be developed to
transmit the energy to California and that some problems exist with the
draft agreements. However, Nevada Power is beginning to negotiate now
that some of the permits are about to expire. He stated that possible
project participants are still evaluating participation and all but the
City of Lodi have chosen to participate. It was pointed out that the
special assesment is required since the project is not sponsored by NCPA
and costs for analysis are not~ authorized from general NCPA funding.
Mr. Fontes was of the opinion the project appears to be a viable one and
recommended negotiating with Nevada Power.
After council discussion, the following concerns were expressed:
1. Potential high cost of power because of expensive
transportation costs.
2. Distance of project from NCPA service area.
3. Projected risks.
4. Problems and uncertainties with the draft agreement.
5. Why PG&E and So. Ca. Edison backed out of the project.
6. Availability of water supply for the plant.
7. Recapture law in Nevada.
ge
e
Need to invest in the local economy, i.e. wastewood burning.
Need to see the recently approved Lake Mendocino project go
ahead.
The question was asked that, in the event the City pays the $9000
assesment, and if further down the line, the City decided not to
continue to participate, would a refund be given. Mr. Fontes stated a
refund would be given if the project goes ahead and someone picks up the
city's share. However, if the project does not go ahead and the
preliminary assesment used, then the money would not be recovered.
Hickey/Snyder made a motion that the City of Ukiah stay with the project
and pay the assessment when due.
The motion failed by the following roll call vote.
AYES: Councilman HIckey NOES: Councilmembers Feibush Snyder Riley,
Myers ' '
ADJOU~\~NT - 4:55 p.m.