Borough Mayor Whitaker looks for extra time with emergency energy spending

Published Wednesday, June 25, 2008

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FAIRBANKS — Borough Mayor Jim Whitaker has asked the Borough Assembly to extend a declared energy emergency and waive public-spending rules for a 2-month-old energy-emergency fund.

Whitaker said the proposal to waive the rules for approximately $750,000 would help the community head off future problems linked to the rising costs of home heating and transportation.

The rules in most cases require the borough to award contracts to the lowest “responsive and responsible” bidder.

In early may, the mayor and Borough Assembly sought and approved, respectively, a declaration that skyrocketing energy costs constitute a public emergency.

The vote, which established the energy project, exempted the money — originally $1.3 million — from public spending laws for two months, the timeline Whitaker hopes to extend.

Whitaker said Thursday the cost of energy, which borough officials estimate has more than doubled on a per-household level in Fairbanks since 2003, presents a problem serious enough to justify loosening the reins on public money to react to as-yet-unforseen opportunities or issues.

“We have to be in a position to act quickly in order to have something move forward in an appropriate time frame,” he said.

The borough has spent part of the project’s original $1.3 million to help match a state grant for early studies of a proposed alternative energy plant that would convert coal and biomass to synthetic gas and liquid fuels.

Assemblyman Tim Beck, who chairs the assembly’s Finance Committee, said he supports waiving some spending rules for the energy-emergency project.

He said the rules can slow governments when they need to move fast — but has questions about the thought of leaving the waiver in place for good.

“It’s one thing to say, ‘We’ll trust you with this money for 60 days.’ It’s another to say forever,” he said Tuesday.

Whitaker said he planned to use the money to tackle energy issues on a number of fronts, including a proposed waste-to-energy pilot project — one separate from the larger proposed coal plant.

Part would go to pay an energy consultant and federal lobbyist, for example, and for his office’s travel costs to visit the state capital to discuss statewide, energy-focused proposals, he said. And some would partially match $500,000 coming from the Alaska Housing Finance Corp. to help local officials administer home energy-efficiency programs.

Most of the money came from the borough’s general fund, with the rest coming from a state revenue-sharing program.

Whitaker identified the financial services firm Greengate, which has advised the Alaska Gasline Port Authority, and Andrew Lundquist, a federal lobbyist who the mayor said has been under contract with the borough for the better part of the past three years, as the consultant and lobbyist, respectively, likely to receive money from the energy-emergency project. He said the borough is talking to state and federal officials about the prospect of securing tens of millions of dollars in government aid for the coal-and-biomass-to-synthetics plant.

Community Discussion

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  1. a1shiva
    6/25/2008, 4:18 a.m.
    Suggest removal

    I guess it does not matter how they spend it fast or slow they are going to spend every dime of it and ask for more anyway. Lets just waive those public spending rules and not worry about bids going to the lowest qualified bidder. Better yet why don't we just sign a bunch of checks and leave the name and amount off of them and let Whitaker and F.E.D.C.O. fill them in. It seems to me the bigger hurry the borough gets in to spend money the more mistakes are made. Just my 2 cents because that is all I will have left after paying property taxes this year.

  2. James
    6/25/2008, 4:56 a.m.
    Suggest removal

    I agree. These people are just plain idiots. A small community funding these project is ludicrous. Why am I not surprised with any stupid thing Whitaker does. Typical knee jerk reaction.

  3. BigMike
    6/25/2008, 5:40 a.m.
    Suggest removal

    In light of FEDCO's horrible track record why would the borough be giving them a blank check. We have seen how they have abused this situation in the past. This gassification project is decades away from happening if ever. How could Whitaker possibly claim that it should be considered it as an emergency spending concern?

    The only viable short to midterm energy solution that would have Borough wide influence is to get the Healy coal plant operating. Retool with conventional technology if necessary but force the State and GVEA to move on this.

  4. Ramster21
    6/25/2008, 6:01 a.m.
    Suggest removal

    GVEA did retool, thanks for that lovely money pit in North Pole, 2500 gallons of fuel a day. What were they thinking, could have just built another Coal Plant or OPEN Healy plant already.. COAL is more abundant and would save millions is cost. Better yet, bring some of the little Nuclear plants from Japan... That cheap electric

  5. woodman
    6/25/2008, 6:12 a.m.
    Suggest removal

    Can't get the money fast enough to his good old boys. Must be pay back time.

  6. Bugger
    6/25/2008, 7:13 a.m.
    Suggest removal

    I agree we need to spend all the money we can before it is all gone. China is sitting back laughing as they collect more and more US Bonds. Jim Whitaker should be tared and feathered along with his pals in the Port Authority, and FEDCO. The ONLY thing they will accomplish is spending all the money, no doubt debt paybacks for what ever reason. If they could make energy from BS we would not need oil, or coal,, they produce more than enough to heat Fairbanks.. I used to ask it they thought we were that STUPID, but the answer is too obvious, looks like we are, we keep electing them.. Sad times...

  7. Fairbanksgas
    6/25/2008, 7:18 a.m.
    Suggest removal

    Actually it is 3,500 gallon of fuel per HOUR at the new North Pole turbine.

    Whittaker is in a good position. His term will be up and if the FEDCO plan fails miserably like all their other plans, he will be long gone. After all it is the Fairbanks way for our mayors to take off with the communities money. I'm sure the Mr. Whittaker will find a nice six figure position as assistant director of FEDCO or something alone those lines.

  8. DistantThunder
    6/25/2008, 7:40 a.m.
    Suggest removal

    Does the fire-chief quorum a meeting when there's a 5-alarm fire ringing the bell in the fire-station?

    The energy emergency in Fairbanks is every bit as real as:
    if all the lands south of the Tanana River caught on fire all at once, from Delta to Nenana. [as if the Parks fire wasn't bad enough]

    In an emergency you don't go home after 5pm and watch TV while messing with the BBQ, and yakkin' on the phone about small talk. It's not like other workdays.

    In an emergency you don't dither and worry about which consultant to hire....
    ....if the ship is sinking you get on the radio and call a MAYDAY for the best damn bilge pumps to be helicoptered in to save the ship.

    Many parts of Alaska are a fire hazard because of methane leaking out everywhere[especially the North Slope]...
    and 90% of Alaska south of the Brooks is struggling with an energy emergency???

    Does anybody need a bilge-pump for their sinking ship?
    www.fairbanksgas.com
    ..some of us are actually trying to help.

    Here comes more Thunder and Lightning....
    .....flash/rumble

  9. woodman
    6/25/2008, 8:08 a.m.
    Suggest removal

    One question. I thought the mayor was waiting for a report to see if these projects were viable. Isn't the report due back soon. Exactly what is he keeping from the public again?

  10. theabowman
    6/25/2008, 8:31 a.m.
    Suggest removal

    Fuel costs are very high but there is not an emergency. Hurricane Katrina was an emergency, the Iowa floods were an emergency. This is a big spike in fuel costs and yes proactive things should be done but the rules are in place for a good reason. It's easy to bandy the word "emergency" around. After the millions the state has thrown down the sewer with the Arctic Power lobbyists, more money for federal lobbyists is not wise. We've had FEDCO and the Port Authority sop up lots of our cash. Now this?

  11. James
    6/25/2008, 8:38 a.m.
    Suggest removal

    theabowman well said and I agree.

    You can thank the past/present GVEA board of directors, the new energy guy (Steve Haggerson (sp)) and Mike Kelly for the fuel pig at North Pole. GVEA is a runaway and there is absolutely NOTHING we can do about it!

  12. buboy
    6/25/2008, 9:31 a.m.
    Suggest removal

    forclosures...people leaving the interior...Their goes the Borough tax base...er wait, Property tax will go sky high for those of us remaining in the interior..Who will be here in the end? City, Borough and State employees....Ya got to love that!!!!

  13. woodman
    6/25/2008, 9:42 a.m.
    Suggest removal

    Why we vote for the tax cap. Property taxes are based on the last year sales of homes. If sale prices go down so do property assessments. The tax cap keeps the borough from sky high property taxes. Why do you think they want it gone. Thank you Interior Tax Payers Association for all your hard work. Vote for their tax cap, not the one the other guys have been trying to get everyone to believe is best for the public.

  14. ravenvet42
    6/25/2008, 12:45 p.m.
    Suggest removal

    Not sure who to believe anymore.
    First, I don't know the #'s of $$$'s that the Borough wants to spend without oversight, but it would be interesting to compare how much they will designate to the engineers and lobbyists compared to the amount designated to help with homeowner and energy conservation. With all this media coverage (some of it verges on "hype"), i rarely hear discussions about energy conservation or renewable energy.
    Secondly, who is most important? I believe that Fairbanks could manage quite nicely as a modest town with committed residents who appreciate our climate extremes, our challenges, and our uniqueness. There are most certainly "others" who want us to be like the rest of the world....obligated to indebtness, relying on others for sustinance and supplies, and suckered into the marketing blitz to convince us that our "wants" are now actually our "needs."
    We have been convinced that the military bases and the tourists are now our lifeblood and we can't possibly live without them. As a result, the box stores have arrived and the unique local businesses are struggling to survive. You can't get a decent airline reservation in the summer because the tourist packages have already booked most of the seats. The mayor told the Assembly that we need to spend the big bucks to study the gassification project feasiblity in order to keep the military here.
    Finally, when did we fall off the wagon and choose that the government must provide us with everything? We live in an interesting state/culture where Libertarians shout of government interference and restrictions yet we want our government to take care of us when things get tough. In the end, it's our choice. Most people have been choosing apathy or the easy way.
    "Be afraid....be very afraid????"

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