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HomeMy WebLinkAbout03/28/1967 VB minutes MINUTES OF THE SPECIAL MEETING OF T~ BOARD OF TRUSTEES March 28~ 1967 CALL TO ORDER President Congreve called the meeting to order at 6:40 P.M. INVOCATION Trustee Colfer ~ave the invocation. ,C LL Present upon roll call: Bergen Bruhl Colfer Ekren Grittani Teichert Congreve This meeting was called for the purpose of second reading of the Election Ordir~nce and Resolution for Referendtun, and consideration Election Ord of option to purchase Utility Sewer and Water Company's waterworks Referendum and distribution system and sewer disposal system under the terms Resolution contained in Ordinances 884 and 885. ELECTION ORDINANCE Trustee Colfer gave second reading of Ordinance #1195.' 1967 Election Ordinance for the Village of Mount Prospect, Cook County, State of Illinois Ord. #~195 Trustee Colfer, seconded by Trustee Grittani, moved for passage and approval of Ordinance #1195. Upon roll call: Bergen Bruhl Colfer Ekren Grittani Teichert Motion carried. Trustee Grittani read Resolution No. 17-67: A RESOLUTION EST~ttLISHING PRECINCTS ~ND POLLING PI~CES FOR REFERENDUM ISSUE Res. 17-67 and moved, seconded by Trustee Teichert, moved for pyssage and approval of Resolution No. 17-67. Upon roll call: Bergen Bruhl Colfer Ekren Grittani Teichert Motion carried. OPTION TO PURCHASE UTILITY SE~ER AND WATER COMPANY WATERWORF~ AND DISTRIBUTION SYSTEM AND SEWER DISPOSAL SYSTEM UNDER THE TERMS CONTAINED IN ORDINANCES 884 and 885. Option to Memorandum from President Congreve follows: purchase Utility Sewer "It was not intended to hold up this item so as to Water Co. require immediate action, but the conmon knowledge was that a decision by this Beard did not have to be made until May of this year. With this in mind, I reviewed the franchise on Tuesday, March 21, and discovered that we n~st make our decision to either exercise the option or let it drop by April l, 1967. More time would be desirable to consider this, but we are at this point now, and discussion of reason why it was not considered sooner will not make any more time now. The Board of Trustees has to decide on whether or not we exercise the option. If we do not exercise the option, the price is fixed. No negotiations are possible. If the Board decides not to exercise the option, no other action is necessary. March 28,' 1967 "A method of financing must be found, and also a method of paying of this must be decided upon. The contract Utility S~wer and Water Core.many has with citizens to furnish water must be assumed. Enclosed sheet shows approximate amount of units and cost." APPROXZMATE USER£ IN AP~ SERVED BY UTILITY SE~]R & WATER CO. March 22, 1967 Approximate WI~HIN VTLLAGE LIY~TS users in area Homes 460 ~ $ 600.00 $276,000.00 Apartments 440 ~ $ 200.00 88,000.00 Co~m~ercial 20 ~ $1,000.00 * 20~000.00 ' $384,000.00 OUTSIDE VILLAGE Homes 200 ~ $ 600.00 $120,000.00 Apartments 330 ~ $ 200.00 66,000.00 Comercial 12 ~ $1,000.00 12~000..005198~000.00 F~s needed $582,000.00 · This is assumed, as it is based on a formula dete~nined by use. The amount used is believed to be more tb~n adequate. "The latest statement filed with the I.C.C. is for the year 1965. The 1966 statement is not due until ~rch 31, and is not on file. The following information was taken from it. Water Sewer Operating Revenue $ 56,9~-~ $ 18~73~.96 Operation Expense - 36,271.39 ~-5,429.36 Maintenance Expense - 298.34 - 525.00 ~alance $ 19,9~9.05 $ 12,782.60 Total balance both systems: $32,751.65 The statement shows an increase in operating revenues of approximately $20,000.00 in 1965 over 1964. From these figures, it appears that approximately 40% of the receipts would be available to retire the indebtedness, maintain and improve the system. Using the existing rates, which are $2.50 per month for sewer and average .75 per thousand gallons for water." PROPOSED ~THOD ~D OPERA~ AND FINANCE "I would veto any method where the system would not be self- Method of supporting ana self-liquidating. From preliminary studies, this operation is possible and also at perhaps less cost for the services to the and citizens. The statutes give the Village the authority to set a financing different rate for a different ~ater and sewer area, thus ailowing an acquisition like this to be made without pen&lizing the other residents in to~. Bonds may be issued on an installment purchase, not to exceed twenty years. Purchase would be on July 1, 1967. The option, in my opinion, is not clear as to whether we purchase just what is in the Village or the entire system. The entire system should be considered due to inter-connecting of mains." ADVANTAGE TO PURCHASE "Village would have control of maintenance and operation of system. Utilities around the Village have been sold to larger companies March 2~ 1967 which have seen need to greatly increase their rates. Village records are public, with rates set to cover only cost of operating and financing. Acquisition of this system would assure equitable na~es. The Village has the staff, equipment, personnel and know-how to operate a system like this efficiently. Under the proposed method, the residents using the system would assume costs of acquisition, therefore not penalizing the rest of the people in the Village.. I would recc~mmend that the Board of Trustees pass the following resolutions, giving notice of interest to purchase the Utility Sewer and Water Company, and a committee consisting of myself, Messrs. Bergen, Bruhl, Colfer, Teichert and Grittani meet and consider the method of financing." Following the memorandum from President Congreve, the Village Attorney was requested to give the legal aspects of the purchase. He reported it appears that the only practicable and feasible manner in which to accomplish the purchase is to issue revenue bonds. The Village presently has an issue outstanding pursuant to Ordinance 907, which in its drafting took into consideration this option contained in the above Ordinance. The Village would have the right and authority to maintain a separate rate structure for this system to accomplish the retirement of the new issue of bonds. A meeting was held with Attorney Robert Burrows of Chapman and Cutler on Friday, M~zrch 24, 1967. In his opinion there is no pzoblem proceeding along the avenue of bond ordinance 907, Sec. 10. From a legal standpoint, the recormmendation of Attorney Robert Moore is the revenue bond approach would be most ~easible. Finance Director Jesse reported that his review of 1964 report of Utility Sewer and Water indicated a $32,000 profit before taxes. This evaluation indicated that the Village should be able to operate charging the same or lesser rates with at least the same degree of efficiency while liquidating the bonded indebtedness. %he meeting was then opened to the public for discussion. Mr. Raymond O'Brien of Elk Ridge Villa questioned the option regarding the source of supply. Mr. Frank Anziloni of Elk Ridge Villa asked about the feasibility of obtaining Chicago water. Mr. Charles Green inquired how will the lift station solve the problem of flooding and was referred to the report of Consoer, Townsend and Associates. Mr. Sheldon Mels stated there could be another 300 homes in this area by court action to add another $200,000. Mr. Jerry Turf, ~, inquired whether the Village would install the lift station. Mr. Roger Anderson of Mount Shire asked if the Village would give him service at equal or lower rates. Mr. Wally Wilson of Elk Ridge Villa inquired if additional funds are available will such funds be used to reduce rates and when, and was advised it would take about five years. It was pointed out that separate books would be kept. Mr. Harry Kohlman of Mount Shire asked if the Village purchases water from Utility to use in Mount Prospect and was advised it is only used by the Fire Department. The question arose about the $25.00 water deposit required by Utility Sewer and Water. Mr. Joseph Stecker, 1602 Willow stated he had received his water deposit fund after about a two year residency via a letter of request to the Utility Co. March 28, 1967 Mr. Eric Ellesson, 1204 Birch, asked how the Village would operate and mentimned there were water problems in the area. Bob Dettloff asked about the advantage to the Village and to residents if the Village exercised its option. Mr~ Robert Steger asked if the rates to the users in the Village would be the same as for those residents outside and was advised that under the present code people residing outside the Village -- limits are charged more. Mr. Arthur Li~nemann, 1208 Linneman Rd. ~ asked if he would receiYe ~is building permits if the Village purchased the utilities° ?,~. Jim Atkinson~ 310 N. ~imerson, asked if the Board had studied ~ny balance sheet of the Utility Co. Following these questions from the floor, Trustee Teichert~ seconded by Trustee Colfer~ moved for passage and approval of Resolution 18.67: Res. 18-67 RE Pb~CHASE OF WATE2~WORY~ AND WATER DISTRIBUTION SYST EM Upon roll call: Ayes: Bergen Bruhl Colfer Ekren Grittani Teichert Motion carried. Trustee Teichert~ seconded by Trustee Colfer~ moved for passage and approval of Resolution 19~67: Res. 19-67 RE Pb~CHASE OF SANITARY SEWAGE DISPOSAL SYSTEM Upon roll call: Ayes: Bergen Bruhl Colfer Ekren Grittani -- Teichert ~tion carried. ~ustee Bergen~ seconded by Trustee Teichert~ moved for passage and approval of Resolution 20.67: Res. 20-67 A RESOLUTION EXPRESSING ~-~ LEGISLATIVE INVENTION REGARDING UTILITY SE~ AND WATER CORPORATION PURCHASE OPTIONS Upon roll call: Ayes: Bergen Bruhl Colfer F~ren Grittani Teichert Motion carried. ADJOUR~2~f Trustee Colfer, seconded by Trustee Teichert~ moved the meeting be a~jou~ned~ Time: 8:45 P.M. Unanimous. RIC~RD H. ~©NROE, Village Clerk _ March 28, 1967