HomeMy WebLinkAboutA004 - Council Action Form, May 18, 1982 COUNCIL ACTION FORM
NO: 05-18-82
SUBJECT: Sundstrand Contract Renewal Request
BACKGROUND:
For the past ten years, Sundstrand Corporation has been served with a
separate contract for delivery of electric service from the Ames Municipal
Electric System.
The City Manager's office received a letter from Sundstrand dated April 27,
1982 (copy attached) whereby Sundstrand requests that the existing contract
be extended.
The existing contract with Sundstrand expires on June 30, 1982. If nothing
is done, Sundstrand will be billed at the large power rate after that date.
Also enclosed is a copy of a letter from City Attorney John Klaus which
covers the City's responsibilities concerning uniformity of rates. Enclosure
is also made of a memorandum from Council Member Charles Hammer concerning
his feeling on that issue.
As of this time, staff has met with Sundstrand on three occasions and has had
an explanation of some of the problems encountered at Sundstrand. However,
no negotiations concerning this matter have taken place.
ALTERNATIVES:
1. Approve the request.
2. Deny the request.
3. Refer this request to the Electric Utility Operations Review and Advisory
Board, and request that that Board recommend to the City Council whether
or not to enter into a separate contract with Sundstrand as well as answer
specifically the question as to whether or not the existing large power
rate is adequate to cover Sundstrand's usage, and whether or not changes
are necessary in the large power rate.
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that Council approve Alternative #3
and refer the matter to the Electric Utility Operations Review and Advisory
Board.
COUNCIL ACTION: