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06/07/1982-CC-Minutes-RegularCity Council June 7, 1982 Mayor Ralph Freddy Inman MAY Meeting Co le, Benny Bridges, Danny Spindle, ti Tendell Thomas , and Carolyn Adkins Lloyd Henderson, Mary Jo Stover, Bill Carpenter, Garry Kraus, C. G. McNeil, Anne Kyle, Claudine Andrews and daughter. 1. The Minutes of the May 17, 1982 Regular Meeting and the May 20, 1982 Emergency Called Meeting were approved as printed. \'a-b 2. Thomas made the motion to approve disbursements in the amount of $28,935.80. Bridges gave the second. Voted unan. 3. The authorization and acceptance of bids for sale of $150,000 General Obligation Bonds and $450,000 Utility Revenue Bonds was held at 7:00 P. M. Mayor Cole received and opened a total of 6 bids. Four bids were received on the G. 0. Bonds and two bids were - received on the Utility Revenue Bonds. Bidders and amounts are as follows: General Obligation Bonds $1502000.00 1. Mercantile National Bank @ Dallas Net Interest Cost $ 51,987.75 Effective Interest Rate 10.39755% 2. Rotan Mosle Inc. Net Interest Cost $ 53,750.00 Effective Interest Rate 10.75% 3. National Bank of Commerce of Dallas Net Interest Cost $ 53,575.00 Effective Interest Rate 10.715% 4. Underwood, Neuhaus & Co., Inc. Net Interest Cost $ 50,500.00 Effective Interest Rate 10.10% Utility Revenue Bonds $450,000.00 1. Underwood, Neuhaus, & Co., Inc. Net Interest Cost $580,759.38 Effective Interest Rate 12.7150468% 2. Rotan Mosle Inc. Net Interest Cost $598,342.50 Effective Interest Rate 13.10% Mr. Bill Carpenter, financial advisor for the City with Kidder -Peabody Company, went over each bid and calculated the interest rate. The firm of Underwood, Neuhaus, & Co. Inc. was low bidder on the G. 0. and Revenue Bonds. Good Faith checks for $3,000 and $9,000 were received from City National Bank, Austin, Texas, Texas. With everything in order Mr. Carpenter read aloud the G. 0. and Utility Revenue Bond documents. Carpenter explained the interest rate that would be charged on the bonds from June 1. He futther explained that the city would also be accruing interest on the bond money from the date of sale. Mr. Carpenter explained to Council why he thought the City's bond rating had dropped from B A A 1 to BAA. It was thought that the transfer of monies from the Utility Fund into the General Fund was the objectionable item to the rating agency. Carpenter said it was necessary to make sure the City's Utility Revenues were 12 times the amount of expenditures. Carpenter also mentioned that there are new loans governing the Interest & Sinking and Reserve Funds. Not over 15% of the principle amount of the I & S can be invested. Motion was made by Wendell Thomas to approve the bid on the General Obligation Bonds for $180,000 to Underwood, Neuhaus & Co., Inc. for a total net interest cost of $50,500.00 and an effective interest rate of 10.10% and to adopt the Ordinance authorizing the issuance of the General Obligation Bonds. Benny Bridges gave the second. Voted unan. 1� C Motion was made by Benny Bridges to approve the bid on the Utility Revenue Bonds for $450,000 to Underwood, Neuhaus & Co., Inc. for a total net interest cost of $580,759.38 and an effective interest rate of 12.7150468% and to adopt the Ordinance authorizing the issuance of the Utility Revenue Bonds. Wendell Thomas gave the second. Voted unan. 4. & 5. Garry Kraus presented council with a copy of the pro- posed Water and Sewer Rate Ordinance setting the new city water and sewer rates. Changes were dsicussed for Section II Sewer Rates. The last sentence of the last paragraph, Section II was changed from: .....The water consumption to be used to establish sewer billings shall be the actual water consumption during December of the previous year so as not to account for water used for such purposes as lawn and garden watering from which water is not returned to wastewater facilities. to. .....The water consumption to be used to establish sewer billings shall be the actual water consumption for each customer during the month of the previous year exhibiting the lowest city wide water use so as not to account for water used for such purposes as lawn and garden watering from which water is not returned to wastewater facilities. The following paragraph to be added to Section II re�ardin� new connections: New connections to the system shall be billed at the average city wide sewer billing rate for each customer during the month for the respective class of use, until such time a rate can be established based upon actual use. Motion was made by Wendell Thomas to approve the new Water and Sewer Rate Ordinances with the above changes. Danny Spindle gave the second. Voted unan. 6. Claudine Andrews of 709 No. 1st Street in Sanger met with council to discuss a recent sewer problem she incurred. During a recent heavy rain the sewer backed up and ruined her carpet. Her insurance company re- placed her carpet but she feels the city owes her for the deductible in the amount of $350.00. The City's insurance by letter stated they did not feel that the City was legally responsible for Mrs. Andrews damages. Mr. Harold Easley hired Hunter. Associates of Dallas to do the engineering on the subdivision. They are the City's engineers but they were employed by Easley and paid by Easley. Mrs. Andrews told council that "the builder sends me to the city and the city sends me to the builder." She was concerned if the sewer backed up a second time would the city take the responsibility. It was noted that Mrs. Andrews had been in her house since November 1981, Councilman Thomas stated it is required by the subdivision ordinance for the developer to have a performance bond for 1 year and that Mrs. Andrews should pursue the possibility. Mayor Cole stated the city had turned the claims over to their insurance company and the company had stated the city was not liable. He further stated the city was not trying to put the blame on anyone, but making suggestions for Mrs. Andrews to check into. He advised her to exhaust all avenues with the developer and the performance bond. 7. Trailer Coach Service and Inspection Fees - Lloyd advised Councilman Danny Spindle had requested this item be placed on the agenda and Danny had raised some questions regarding the monthly in- spection fees. Spindle had asked what the inspec- tion fee was for and if the city made any inspections. It was stated that the monthly inspection was a part of the Trailer Coach Parking Ordinance. Council seemed unaware of the monthly inspection fee. Mayor Cole stated he thought it was the licensing portion of the ordinance. When council recently increased their fee schedule the monthly inspection fee went from $1.00 to $5.00. Mr. C. G. McNeill, owner of Sanger Mobile Estates stated he didn't object to the licensing fee but did to the monthly inspection fee. He would like to keep the license fees where they are but do away with the inspection fee. It was the general consensus of the council to suspend the monthly inspection fee (and so advised City Secretary) on the trailer parks and amend the present ordinance. Item to be placed on next council agenda. 8. Mayor Cole requested this item to day over until the next council meeting to give time and thought to those council wishes to appoint to serve on the committee. 9. Santa Fe Proposal - Council had received a copy of the contract proposal from Santa Fe to study regarding the crossing at the new landfill site. Lloyd stated that Phil Philips had studied the proposal but did not want to suggest action until he had had a chance to sit down with Santa Fe's attorney and deal with him individually. He did advise Lloyd that the county could condemn the right-of-way. 10. Other such matters: A. Councilman Thomas requested the city to check about the zoning on the Gateway Subdivision. B. Lloyd reminded council of the Donkey ballgame scheduled for Saturday, June 12th at 7o00P.M. @ Little League Field. C. With regards to the new landfill rates to be charged to Sanger citizens when they haul their own trash, Lloyd re- quested council to reconsider this item and not charge the citizens at this time since this fee was meant originally to be enacted when the new landfill goes in. Council agreed. D. Lloyd made council aware that the pre- sent personnel policy for the city allowed employees to sell their vacation in lieu of taking time off. He stated he had asked Jack Russell to do away with this item in the new codification but had failed to bring it to council's attention. First it is hard to budget for this amount of money should the employees elect to sell their vacation time. Two - Lloyd felt the employees needed the time off. What Lloyd would like to do is give all employee's a month's notice to give _written statement if they want to receive pay, After the month's notice the option would no longer be available. Council agreed. E. Lloyd advised Council that he and Garry Kraus had been working on another drainage program. Lloyd stated it was covered under the HUD Program. The corner of 5th and Locust and Locust to the South of the Church of Christ is the target -- area. This should assist in the drainage of the corner where Mrs. Sweetman lives. It was proposed to take out all of that corner and make a receiving pond in the ditch on Locust Street. This is also the proposal_ from the 5 people who attended council regarding their drainage problem. There is enough money to put in 30" pipe. Cost is estimated at $12,000. There is about $14,000 in the HUD money. F. Numerous yards and tracts of land were mentioned for mowing. G. Drainage on Diane was discussed. Meeting adjourned. ATTEST: Cii y Se&iQtary °il MINUTES: City Council June 21, 1982 PRESENT: Mayor Ralph Cole, Benny Bridges, Danny Spindle, Wendell Thomas and Carolyn Adkins OTHERS PRESENT: Lloyd Henderson, Mary Jo Stover and Anne Kyle 1. The minutes of the June 7? 1982 meeting were approved as printed. 2. Disbursements in the amount of $1,951.36 were approved on a motion by Danny Spindle. Wendell Thomas gave the second. Voted unan. 3. Motion to approve the Sanger Electric Capital Improvements was 0. made by Danny Spindle after questioning Item No. 7 on the state- ment. Thomas gave the second. Voted unan. 4. Motion was made by Benny Bridges to re -appoint the following Planning and Zoning Commissioners: Place 2 - Jimmy Frazier Place 4 - Willard Bounds Place 6 � Bill Enlow Second was given by Wendell Thomas- Voted unan.