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.