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03-06-57SpMtg HAHCH 6th, 19§7. A Special Heeting of the City Co~mission was held in the Com- mission Chambers at 7:30 P.H., with Hayor Warren in the Chair, City Hanager W. E. Lawson Jr., City Attorney Harry T. Newett and the following Commissioners being present - R. $. Holland, Catherine Strong and Dugal G. Campbell. Also present, for discussion of Water Distribution expansion, were all Hembers of the Financial Advisory Board, namely, Charles Crane, Chm., Nathan S. Sharp, Att*y. Rhea ~hitley and C. Weldon R~raul. City Manager W. E. Lawson introduced Hr. Homer Scott, represent- ative of Smith & Gillespie, and there followed a general discussion of the original Survey Report, submitted by that firm, concernin& supple- mentation of the present Water Distribution System by a proposed ad- ditional Source of Supply and Treatment Plant on the northside off the City.and their recommended Water Consumption increased rate schedule. Hr. Scott stated that a study of the past many,years of water sales within the area reflected an average annual 14~ increase. · Co~missioner Holland requested clarlffication of Smith & lespie*s recomended Rate Schedule, as shown on Pages 29, 30 and 31, as he did not believe the suggested rate increase could possibly work out on an equitable basis. Hr. Scott explained that the suggested rate schedule was Subject to adjustment as, un£ortunately, there was very little data furnished Smith & 6illespie, by the City, for experience consideration, due to lack of proper accounting records covering the phase of the Water De- partment relating to Sales and Distribution, which deprived a Survey of its most needed factor. Commissioner Campbell inquired iff the wide variation off rate increase proposed, approximate~y 0 to 72~, reflected in the ~report", would result in an over-all 20~ average increase, to which Hr. Scott replied that doubtless the suggested various rate increases, contained in the report, might better be voided and a revised Hate Schedule submit- ted which could now he prepared in a systematic manner inasmuch as ac- curate data, just made available by the City Hanager, through compil- ation of installation and sales records, supplied by the accounting de- partment, fumishes the necessary data needed ~or effecting an equit- able rate schedule. Mr. Scott further advised against allowing installation of a lar~er meter than needed on any one individual account, as such care- lessness would only result in excessive ~nvestment of equipment {me- ters& fittints) and therefore p~ove costly rather than economical and would not result in greater water consumption or sales. A 3/4" meter is sufficient for any ~ingle family residence. Comnissioner Campb§ll referred to the recent understanding the Commission that a 30~ increase should be put into effect imbeds ately and was advised by the City Hanager that it was considered a little premature to establish a rate increase, based upon the sug- ~ested schedule off Smith and 611leslie w~ich reflected such a wide variance of increase, namely 0--72~, and that a more intelligent study should be made of the now available data just compiled by the accounting department. The Financial Advisory Board, inquiring if the project n~t be done in phases, was advised by Hr. Scott that such was entirely ~lthin reason but obviously somewhat more costly in the end due to each phase requiring individual sets off Construction Costs and ac- counting ~rocedures, let alone the provision and detail concerning provision of funds. 54 MARCH 6th, 1957. Mr. Scott further warned against attempting to install wells on the northside of the City, only to augment the supply and expect to treat the water at the present plant, which would require double pu~ping and prove, not only very costly but unwise. In his .opinion the complete plant installation should be an actuality on the north side which supply could then join the present line at any determined point. Following general discussion of the minimu~ limitations of a first practical phase, the Financial Advisory Board, while, warning against the stretching of credit standing, felt that a short term _ certificate issue of possibly $400,000. to $500~000., might be ranged, and, joined by the City Commission, requested Mr. Scott, in view of the errors and unequitableness of part of the present Report, as disclosed during this discussion and review, to wold Pages-29, 30 and 31, leaving Page 33 as is, which relates to Page 28, and submit a new proposed Rate Schedule utilizing the vlauable data furnished by the City Manager, as well as a Plan providing for the minimum re- quirements of a feasible and economical first phase, to which Mr. Scott, on behalf of Smith and Gillespie, agreed. Commissioner Campbell requested that Smith and Gillespie also furnish an estinmte of coot for the second and final phase of the basic plan. Commissioners Strong and Campbell brought out the point that it was most fortunate that the City had not acted hastily and es- tablished an over-all water rate increase based on the suggested rate schedule contained in the Report which now appears to have been most unequitable, and would, obviously, have placed the City in a very embarrassing position, in view of which fact, and speak' ing for the Con~ission, did not feel that any additional charge should be made for supolying the City with a supplemental survey and rate schedule proposal. Mr. Scott expressed his belief that Smith & Oillespie would reco~nize this issue and cause no additional expense to be incurred by the City relative to a revised Schedule, and assured the Finan- cial Advisory Board and the Comuission that he would return in ap- proximately two weeks with a proposed p~an, as requested, and vised rate schedule. The Financial Advisory Board then brought up the advisability of seeking interest bearing deposits of City funds and Hayor Warren apoointed Commissioner Campbell to confer with the City Manager and Mr. Crane, Chin., of the Financial Advisory Board at 10:30 A.M. Thursday, March 7th, in the office of City Manager W. E. Lawson, relative thereto. Meeting adjourned. /S/ R.D. Worthin~ City Clerk APPROVED: MAYOR.