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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.