03-12-84 Street & Alley Comm MinutesMarch 12, 1984
SEWER AND WATER COMMITTEE MEETING
The Sewer & Water Committee met at 4:00 P. M, on this date in the committee room
at City Hall. Present were committee members Nystul, Ruiz. and Springer, Tom
Flynn, DPW Hammer, Superintendent Hughes and City Attorney Neier.
Tom Flynn presented some information on raising the out -of -city sewer rate
premium from 25% to 100%. City Attorney Neier was asked about the legality in
view of certain statutes. He believes the statute does not prohibit such a
setting of a rate. Discussion was held about the reasonableness of such a pro-
vision and the basis to substantiate it. One reason was the additional assets
that could be assumed if the area were annexed. Another theory is that each
out -of -city case should be evaluated to determine the necessary additional
costs for the area hooking on. The consensus of opinion was reaffirmed that
the proposed rate schedule to be published and distributed to the public anti -
pate the plus 100% four out -of -city sewer.
The City Attorney was asked to prepare a memorandum about how rate changes would
affect our two contracts with out -of -city users.
Tom Flynn presented some data on depreciation. According to the financial re-
cords, the historical cost of the water utility is $1,923.000. The replacement
cost is $5,246,000. The need for adequate replacement 'reserves shoulc be obvious.
Superintendent Hughes and Tom had prepared a proposed water hook-up fee. It is
a graduated fee starting at $50.00. It will be included in the proposed rate
hearing.
Superintendent Hughes had prepared a memorandum regarding water line relocations
done by Pack & Company at the Northwest Financial Center (Gateway West Mall vici-
nity). Essentially a water line was relocated to make way for the building. As
no engineering had to be done because it was just moving pipe, the contractor was
given permission to do so. However, the contractor was instructed to advise the
water department so they could inspect installation and witness the pressure test-
ing and flushing. This was not done. There is a sedimentation and air in the
line at the Gateway Apartments. The committee reaffirmed the necessity for the
Director of Public Works, Water Superintendent and City Attorney to move as soon
as possible to notify Pack & Company of our displeasure and confirm telephone con-
tact in writing.
The letter previously authorized accepting the last section of lines to Green Acres
was discussed. The letter was not sent because the lawsuits were filed before it
was mailed. However, the committee agreed it should be sent with the City Attorney
approving the draft.
The Water Superintendent made the following reports:
- The sludge hauling truck has arrived and is being checked out before
delivery.
- The firm of Brinkman & Lenon was given the job of the energy conser-
vation study at the Wastewater Treatment Plant.