Minutes 1984-09-18 SP
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CITY COUNCIL SEPTEHBER 18, 1984
ARROYO GRANDE, CALIFORNIA 6:30 P.H.
The City Council met in Special Session with Hayor B'Ann Smith presiding.
Upon roll call, Councilmen Gallagher, Hillis and Vandeveer were present; Councilman
Hogan was absent. "
AUTHORIZATION FOR SOUTH SLO COUNTY SANITATION DISTRICT DELEGATE TO VOTE ON I
DISTRICT FINANCING PLAN (HR. HILLIS) I
Councilman Hark Hillis said the item came up at the last Sanitation District I
meeting for a vote, and several questions were raised as to the method for paying
for the expansion of the sewer treatment plant.
The proposed method for financing is through the sale of Sewer Revenue Bonds.
Councilman Hillis asked the District Administrator Paul Karp to explain the Plan
and update the information to Council and the audience.
Mr. Karp indicated that an engineering study for improvement and expansion
of the waste water plant. had been required by. order of the Regional Water Quality
Control Board. That study, as well as a financing study, have been comp1eted and
adopted by the Sanitation District Board of Directors. To date, the District has
completed the first phase of plant expansion and is now involved in designing the -
first stage of the second phase. The second phase Is to be completed in three
stages and that work wi II result in expansion of':ilhe plant to a capacity of four
million gallons per day. According to District Consultants. the present hook-up
charge augmented with an appropriate escalator would create sufficient funGUng to
complete Phase II. The Consultant found that,.the first stage of this phase would
be required to be completed prior to collection of adequate revenues to cOITplete
the project. To remedy the cash flow for thi s fi rst stage of consU'uct i 0111. ' the
Consultant recommended issuance of a revenue bond to suppl~nt existing cash on
hand and assessments which would be placed on Grover City for their share of' the
cost of in-plant improvements. The amount of bond issue approved by the Iioclrd of
Directors through the 1933 Sewer Revenue Bond Act is $2.4 million. The Consultant
indicates that the bond issue would be retired through future revenues fr~' the
connection charges, Grover City assessments, and 25% from service charges. Mr. Karp
reported that a service charge increase ~f $5..00 per year per resident would be
n~quired to fund the District's share of the in-plant improvements (apprOltimately
25% of the cost of the bond issue). '
During the discussion there was considerable disappointment on the part of
the audience over the fact that the official statement prepared for the bond issue
had neglected to discuss the value of vegetable crop revenue in the Arroyo Grande
Valley. The audience felt the discussion regarding wine production was overempha-.
sized in that statement. Mr. Karp suggested that the statement was at the printers
but that a last minute change could be made if the group could prepare a paragraph -
which accurately discloses the financial impact on row-crop agriculture.
Mr. John Taylor suggested that the District Consultant prepare such a para-
graph with input from the County Agriculture Commissioner. Mr. Karp indicated
that he would follow through with that request.
During the discussion, the Council was addressed by JOHN TAYLOR, 680 Valley
Road; ELLA HONEYCUTT, 560 Oak Hill Road; MARIE CATTOIR, 195 Orchid Lane; and
LEROY SARUWATARI, 512 Launa Lane.
On motion of Councilman Vandeveer. seconded by Councilman Millis for discus-i
sion. to authorize the Sanitation District Delegate to vote favorably on the
District Financing Plan by Sewer Revenue Bonds. On the following roll call vote.
to wi t:
AYES: Councilman Vandeveer
NOES: Councilman Gallagher and Mayor Smith
ABSTAIN: Councilman Hillis
ABSENT: Councilman Hogan
the motion failed.
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CITY COUNCIL SEPTEMBER 18, 1984
ARROYO GRANDE, CALIFORNIA SPECIAL SESSION PAGE TWO.
AUTHORIZATION Ta GO TO BID FOR CONSTRUCTION OF VILLAGE RESTROOMS
On motion of Councilman Millis, seconded by Councilman Gallagher, and unani-
mously carried, ,to authorize the City Staff to go to bid for' the construction of
Villagerestrooms.
AWARD OF BID FOR THE PURCHASE OF A CASE BACKHOE
On motion of Councilman Gallagher, seconded by Councilman Millis, and unani-
mously carried, for the expenditure of $39,825.00 to the lowest bidder (Ryan
Equipment Company) for the purchase of a Case Backhoe.
AWARD OF BID FOR WATER RESERVO I R NO. 1 .ROOF
On motion of Councilman Millis, seconded by Councilman Gallagher, and unani-
mously carried, to award the bid for the Water Reservoir No. 1 Roof to the lowest
bidder, Spiess Construction, in the amount of $125,000.00.
ADJOURNMENT
On motion of Councilman Gallagher, seconded by Councilman Vandeveer, and
unanimously carried, to adjourn the Special Session to the Regular Session at
7:40 P.M.
MAYOR
ATTEST: ,
DEPUTY CITY CLERK