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HomeMy WebLinkAboutMN-HDPC-1989-07-25 HYDROPOWER COMMISSION Minutes July 25, 1989 Present: D. Hoffman, E. Mulholland, E. Brothers, H. Jones Absent: T. Araneo, C. Emilian, M. Walker, A. Skutt, M. Sprague, M. Sampson 1. Meeting was called to order at 8:20 p.m. by Dan Hoffman. 2. Van Natta Dam RFP--The City has received four responses to its requests for proposals, and the subcommittee rejected two of them, mainly for lack of experience or for not complying with the guidelines set up in the RFP. The other two did not have enough information to make a recommendation, and Ms. Jones was asked to contact them for more information to be provided by July 24 (tentatively) . The City has authorized an expenditure of $2,600 for hiring an engineering consultant. Leasing the site to a private developer was an option suggested since the City's license expires in March, 1990 and construction is not likely to begin by then. An independent developer has stated that he will apply for a license if the. City surrenders its license. 3. Commission Vacancies--To continue as a viable group, the Commission needs to acquire new members. Originally the Commission was set up to represent constituencies, and one of the problems is that some of these are fairly inactive. An "at large" position is vacant, and two Energy Commission positions are vacant. There is also a lack of representation from Fall Creek neighborhood. It was suggested that the media might spread the word that membership is needed. 5. Dan Hoffman presented a chart of two paths this project could take: one exempting the Falls from hydropower development, and the other deciding whether the City should build a plant. Ms. Jones suggested that requests for bids for project construction should be issued in May instead of July 1991. Engineers generally need 18 months to prepare drawings, but March 1990 was still considered feasible. Ms. Jones said that the Planning and Development Committee had considered soliciting additional engineering services with respect to coming up with a preliminary design plan based on the underground design scheme, possibly a two—phase contract. Phase 1 would be the preliminary design, reserving the right not to enter into phase 2 with that engineer unless it's to the City's satisfaction. Ms. Jones is currently researching firms doing underground engineering (i.e. Besha and Morrison—Knudsen) . She is also working to identify other projects that have been built based on this design. Preliminary design for an above—ground plant is completed. Ms. Jones said that if this design is preferred, there are advantages to continue using Stetson—Harza as our engineer, but suggested reviewing competitive proposals anyway. If Council decides by Hydropower Commission Minutes - 7/25/89 Page 2 January to go to phase 2 (either above or underground) , it has to have the underground design and its cost estimates by then. A recommendation from the Commission to Council by September is desired, and an engineer should be hired by October. The Commission would like Council's guidance before proceeding. Two other areas to be determined before Council can go ahead are price for the power and procuring land and water rights. It was suggested that NYSEG be contacted to continue negotiations. Discussion followed regarding land and water rights acquisition, and possibly resuming them along with the power negotiations. Ms. Jones believed Cornell might be more involved with the project if it's underground, since they own the streambed. They also own the originally proposed location for the above-ground plant. Ms. Jones will be one of the people to contact both Cornell and Mark Finkelstein. 6. Discussion regarding the cost of hiring an engineer for final design work before knowing whether the river is designated. It was noted that some money will have to be spent, even with the right to terminate the contract without cause. Ms. Jones estimated a cost of $25,000 if underground designs were pursued. Ms. Jones suggested that a group excursion be arranged to see some of these types of operations. Ms. Jones reported that locating the plant underground would not involve going back to step one in the application process. The City still holds the license and would probably have to file an amended application. The alternative would be to proceed with the original license, because filing an amendment does not hinder the validity of the license. Discussion regarding obligation for development of the recreational plan which is written into the license. The plan does not have to be exactly as originally presented, but it must be submitted to FERC after the project is constructed. There was some question as to whether this obligation was absolute. Discussion regarding the question of another extension for Van Natta Dam. Ms. Jones said that she is requesting this information from FERC. If the City transfers the exemption as the Commission has discussed as a possibility, it might make a good case for an extension, otherwise, it is believed unlikely. 8. Next meeting date is September 18, 1989. EPJ/HYDRO/MINUTES.JUL