CITY OF SHORELINE

SHORELINE CITY COUNCIL

SUMMARY MINUTES OF JOINT DINNER MEETING

Monday, September 9, 2002

Shoreline Conference Center

6:00 p.m. Highlander Room

City Council

PRESENT: Mayor Jepsen, Deputy Mayor Grossman, Councilmembers Chang, Gustafson, and Hansen

ABSENT: Councilmembers Montgomery and Ransom

STAFF: Steve Burkett, City Manager; Bob Olander, Deputy City Manager; Julie Modrzejewski, Assistant City Manager; Paul Haines, Public Works Director; Kirk McKinley, Aurora Corridor Project Manager; and Joyce Nichols, Communications and Goverment Relations Director

Seattle City Light Staff

Gary Zarker, Superintendent; Jim Ritch, Deputy Superintendent, Finance and Administration; Jesse Krail, Deputy Superintendent, Distribution; Henry Brown, Account Executive; Steve Church, Director North Electrical Services; and Jerry Swanson, Lead Engineer.

Mayor Jepsen convened the meeting at 6:20 p.m. with welcoming remarks and introductions. City Manager Steve Burkett explained that the purpose of the meeting was to enhance the communications between the city and Seattle City Light (SCL).

SCL Superintendent Gary Zarker gave an overview of the issues and challenges facing SCL. He discussed the effects of last year’s drought in the Northwest, which coincided with volatile wholesale prices in California’s deregulated electric energy market.

SCL was forced to purchase power in those volatile markets and had to resort to short term borrowing, rate increases and energy surcharges to meet demand. He believed that SCL will be able to remove or reduce the 58% surcharge/rate increases by Spring, 2004. He added that SCL expects to be able to meet customer demand in coming years because it now has firm contracts for power supply in addition to the power generated from its own sources. He said he is confident that SCL can continue to offer very good service and competitive rates for its customers well into the future.

Mr. Burkett discussed the 2002-03 City Council work plan and outlined Shoreline’s major capital projects that will require substantial involvement and cooperation with SCL. He stressed the importance a strong partnership to help get the projects completed.

Councilmember Gustafson asked if Seattle has plans to complete its section of the Interurban Trail south of 145^th Street, to which Mr. Zarker replied that the City of Seattle is in the planning stages of this project.

Mayor Jepsen asked if SCL will be able to meet Shoreline’s construction schedule for the 15^th NE/North City project, which involves utility undergrounding. Steve Church, Director North Electrical Services, said that SCL is generally aware of the project but will need to get the details as soon as possible.

In discussing next steps, both Councilmembers and SCL representatives were eager to move ahead and get the Interurban Trail under construction next spring, as well as moving ahead with work on other capital projects.

Mayor Jepsen declared the meeting adjourned at 7:25 p.m.

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Joyce Nichols, Communications and Government Relations Director