HomeMy WebLinkAbout05/16/196133. City Attorney Houser brought up for the Council's attention the matter of
the Police Department vehicle that was wrecked last year and which was not
being paid off by the insurance company, and stated that the car was damaged
to such an extent that the City replaced the car rather than repair it
and that the insurance company was now going to pay for. the loss in the
amount of $1,150 and requested that the Council authorize the Mayor to
sign the release for payment of the claim.
Request approved on motion of Gerald W. Shipsey, seconded by R. L. Graves,
Jr.
34. City Attorney Houser requested permission of the City Council to. get a
litigation guarantee report prior to beginning condemnation of.the T. C.
.Maino property-on Broad Street.
Request approved on motion of R. L. Graves, Jr., seconded by Donald Q.
Miller.
RESOLUTION NO. 790 (1961 Series), "A Resolution Directing the Filing of
Condemnation Action for Street Purposes," was passed and adopted on motion
of Donald Q. Miller, seconded by R. L. Graves, Jr., on the following roll
call vote:
AYES: Clay P. Davidson, R. L. Graves, Jr., Miss Margaret M. McNeil,
Donald Q. Miller.
NOES: Gerald W. Shipsey
ABSENT: None
On motion of Donald Q. Miller, seconded by Gerald W. Shipsey, the meeting ad-
journed at 12:15 P. M. to May 16,1961 at 7:30 P. M. to meet with sewer con
sultant Harry N. Jenks and:•with the City's financial advisor, Stone and Young-
berg to discuss alternative proposals for sewer enlargement.
Approved this 5th day of June, 1961.
%���RN
ADJOURNED COUNCIL MEETING
May 16, 1961 - -- 7 :30 P. M.
CITY HALL
The City Council met in Adjourned Session with Mayor Clay P. Davidson presiding.
ROLL CALL: Present - Clay P. Davidson, R. L. Graves, Jr., Miss Margaret M.
McNeil, Donald Q. Miller, Gerald W. Shipsey.
Absent - None
CITY STAFF PRESENT: City Clerk Fitzpatrick, City Attorney Houser, Adminis-
trative Officer Miller, City Engineer Romero.
Also Present: Harry N. Jenks, consulting sanitary engineer; Ed Burnett
and Lee Mitchell, representing Stone and Youngberg, financial
consultants.
1. Mayor Davidson stated that the purpose of the meeting was to explore alter-
. nate solutions to the expansion and enlargement of the sewer disposal plant.
1
Mayor Davidson introduced Mr. Harry N. Jenks, consulting sanitary engineer,
and Ed Burnett and Lee Mitchell, representing the financial consultants
Stone and Youngberg.
Mr. Jenks then proceeded to outline the proposal as presented to the City
Council in his report submitted to the Council on February 28, 1961. Mr.
Jenks briefed the Council on the results of his studies including construction
of a transmission line to the ocean. Mr. Jenks then outlined his three major
proposals for sewage plant enlargement. His reason for recommending proposal
one as the first step of an over -ail sewer project which would ultimately
' include an outfall line to the ocean, was the fact that in the next five to
ten years sewer and sewage waste technology would be advanced to such a point
that all the water processed in a sewer plant would be needed without wasting
it into the ocean. It was his recommendation, therefore that the sewer plant
be enlarged in units with the ultimate development consisting of an outfall
to the ocean.
Mayor Davidson stated that the future growth of the City is limited in direct
proportion to the capacity of the sewer plant; therefore, the plant should
be built to serve the ultimate need so that when a bond issue is sold to the
public on the basis that it is for the ultimate development, it would actually
take care of the City's ultimate needs. Further, he believed the plant should
be built in stages through the use of revenue bonds as the development is needed.
Mr. Burnett, representing Stone and Youngberg, explained to the City Council
the various points of the revenue bond procedure, particularly the matter
of setting up reserves for redemption of bonds and interest.
He also brought out that the rates of interest for revenue bonds are higher
than for general obligation bonds, and further listed the standard covenants
that are prerequisites of a revenue bond sale. He figured that using step
one of Mr. Jenks' proposal, it would cost approximately $1 per month per utility
customer to redeem bonds for this phase, but that if the City wished to go
to the'ultimate of $2,000,000 then the sewer charge would be about $3 per month.
He stated he believed the project to be feasible but financially difficult under
the revenue bond procedure. Mr. Burnett then explained the sequence of events
in the revenue bond procedure including setting up the project, selling the
bonds, awarding the contract, etc.
The City Council then discussed the various sewer proposals as made by Mr. Jenks
and also the presentation of Mr. Burnett relative to financing the project,
particularly the financial feasibility.
Administrative Officer Miller suggested that he and City Engineer Romero would
recommend that the City proceed with phase one as recommended by Mr. Jenks
with the addition 6f a trunk line to the industrial area southeast of the
City and the continued expansion of the main.outfall line down Higuera Street
to the sewer plant and then continuati6nn- of the plant expansion in phases as
recommended by Mr. Jenks.
Councilman Shipsey stated he believed that the City should go along with Mr.
Jenks' recommendation for phase one but not-include the trunk line to the
industrial area, as he does not believe that the present residents of the
City should pay for industrial speculation, as the City was doing enough in
enlarging the plant for industrial speculation, as the City was doing enough
in enlarging the plant facilities:
Mayor Davidson stated it was not his intention to give anything away, that the
City will not attract industry until sewer trunk lines are made available to
the industrial areas.
' City Attorney Houser stated that the City could extend trunk lines to the in-
dustrial area and then have these areas form assessment districts so that
property owners affected would pay a per acre cost for use of the trunk lines
and in this way repay the general taxpayer.
The City Council discussed the present tax structure and the relation of the
City's needs to the City's growth.
Councilman Graves suggested that the City should, before looking for and
encouraging industry, establish the types of industry the City desires,
and then go out and attempt to-get the type of industry that the City has
set up standards for.
Administrative Officer Miller presented a suggestion that the City use general
obligation bonds and-then use a sewer service charge. A flat rate for
residences, and 'metered rate for businesses and industry, to redeem.the
bonds.
Councilman Shipsey again stated he was against the City going to the ocean
with an::outfall line at this time but that some progress must be made on
the existing sewer plant enlargement.
City Engineer Romero presented the following rough figures for development:
1. Phase 1 sewer plant expansion, $925,000.
2. Transmission line along Tank Farm Road, $375,000.
3. Final phase of main outfall line on Higuera Street from
Elks Lane to the sewer plant, $25,000.
Grand total $1,375,000, or $1,500;000 in round figures. An estimated
sewer charge to service $1,500,000 in revenue bonds would be approximately
$2.50 per month per utility customer, and, under general obligation bonds,
about $2.20 per month. These figures, it is to be remembered, are very
roughtestimates at this time.
In order for Mr. Jenks to proceed with the design of the sewage plant
enlargement, Mayor Davidson asked each Councilman what size plant or popu-
lation equivalent Mr. Jenks should design for.
Councilman Shipsey stated Mr.. Jenks should plan for a population equivalent
of 40,000 people.
Councilmen Miller and Graves stated the plant should be designed for a
population equivalent of 50,000 people.
On motion of Donald Q. Miller, seconded by R. L. Graves, Jr., Mr. Jenks
was authorized to proceed with the design of the sewer plant for a 50,000
population equivalent. Motion carried, on the following roll call vote:
AYES: Clay P. Davidson, R. L. Graves, Jr., Miss Margaret M. McNeil,
Donald Q. Miller, Gerald W. Shipsey.
NOES: None
ABSENT: None
2. Administrative Officer Miller brought up the matter of allowing Police and
Fire Department employees to .park in Parking Lot 5 behind the Police and
Fire Station by using a decal issued by the City. Mr. Miller stated that
the prior Council had decided that the lot would be used only for paying
customers and not for free employee parking. Mr. Miller stated the reason
he is bringing this up was that the Fire Department employees were using
the lot without paying for the meters, and that the Police Department were
in an awkward position relative to ticketing their fellow employees. Mr.
Miller asked if the Council would determine whether the policy should be
changed or left as is.
Councilman Miller stated that the City should live up to its own ordinance
and should provide off - street parking for its employees.
Mayor Davidson stated he believed the City should allow the employees to
park without having to feed the meters and be issued a decal.
Councilman Shipsey suggested that the newly appointed Traffic Committee
I
look into the matter and report to the City Council.
Councilman Graves agreed that a study should be made without any pressure
from employees concerned.
Administrative Officer Miller stated that he believed the employees should
be allowed to park behind the Fire Station without paying and be issued a
parking decal.