HomeMy WebLinkAbout1970-03-10; Water Committee Ad Hoc; MinutesMINUTES OF: WATER COMMITTEE
DATE OF MEETING: March 10, 1970 - 4:00 P.M.
PLACE OF MEETING: City Manager's Conference Room
PRESENT: Bob Watson, Knox Williams, Carl Prince, Bill Esterline,
Win Friday, Joe Spano, Theltna Sowell, Glenn McCoraas,
Bob Neely, Chief Anear
ABSENT: Don Hickethier, W. D. Cannon, Hunter Cook
1. Minutes of the meeting of February 24, 1970 were approved as
written.
2. Consideration of motion for Reservoir #1 - Mesa Drive -
Mr. Watson and Mr. Esterline put together an outline for a
motion, a copy of which was distributed to each member present.
Mr. Watson stated that Engineering Science and the various
staff reports indicate that Parcel 4 consisting of 10,000
square feet, as shown on the distributed map, be retained
for a storage tank.
Mr. Watson reviewed the outline to the Committee for their
consideration. The outline indicates a selling price of
$17,700 minus $5,000, the cost to remove the existing Reservoir
and restore the land to residential standards. Therefore,
the recommended selling price would be $12,700.
It was stated that this Reservoir is now used for storage.
Mr. Spano stated the sale of this Reservoir should be simul-:
taneous with the construction of the proposed water improve-
ments. Mr. Esterline agreed that if this Reservoir has a
use, then it should be recommended that the sale of the property
be deferred until such time as its replacement is constructed.
Mr. Watson agreed and suggested tabling this matter until the
next meeting subject to a report from the Engineering Department
on this matter.
It was stated this Reservoir is used mainly for fire purposes.
It was agreed that this be referred to the Engineering Department
for their review and report for the next meeting.
3. Consideration of sale of bonds - Mr. Watson reviewed a letter
from O'Melveny & Myers, Bond Attorneys counseling the City as
to the eligibility of the sale of bonds. They stated the
Legislature's 1% statutory limit on bonds does not apply to
local government.
Mr. Esterline questioned what the net gain in the Water Depart-
ment revenues would be without including any additional bond
charges. Mrs. Sowell stated there would be a gain" of about
$65,000 to $70,000 a year net profit with the current water
rates and an increase in meter rates.
Chief Anear stated that on a bond issue there is no provision
for installing fire hydrants.
Discussion ensued on the sale of bonds and the sale of
Calaveras Lake. Mr. Neely stated that people have stated the
City should sell Calaveras Lake rather than increase the rates.
Mr. Watson felt that the Water Department had no need for
Calaveras Lake and it should be sold and proceeds used to improve
the water system. In response to certain opinions that the Lake
should be retained for a park, Mr. Watson stated that if another
Department of the City wished to have Calaveras Lake, the Water
Department should be reimbursed.
The water improvements studies and finances were discussed at
great length with the following points being made:
1. Considerable funds have been expended for studies and
designs for water systems improvements over the past
several years.
2. The ability to sell bonds as approved by the electorate
is in jeopardy due to increased interest rates and failure
to increase water rates as recommended by Bartel Wells'
study.
3. In order to accomplish the water improvements, the
alternatives are:
a. Present matter to electorate to increase maximum
allowable interest rates on bonds.
b. Raise the water rates to place the City in a better
financial position to service the bonds.
c. Increase the municipal tax rate for the purpose of
servicing the bonds.
4. Unless some action is taken, it is doubtful whether the
City is in a position to finance their share of the water
improvements.
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Mr. Esterline outlined a suggested procedure to be presented
to the Council on what the committees had done and include
dates of revenue bond passage.
Mr. Esterline presented a seven-point program to present to
the Council concerning the financing and ability of the Water
Department to pay.
Respectfully submitted,
\o
Barbara Bishop
Recording Secretary