09241986 Emergency Meeting - Laserfiche WebLink

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3 Emergency Meeting September 24, 1986 Page 3 - Mr. Nicola moved to appoint the City's four Trustees as the Mayor, Mayor Pro-Tem, City Manager and Finance Director and Ms. Kissler seconded the motion. Mr. Barrera stated the staggered terms in the bylaws needed to be changed. The Council voted unanimously for approval of the four Trustees. Mr. Barrera stated the Finance Director serving as the Trustee of the Deed of Trust is a minor role. Mr. Barrera stated on the manner of termination of employees the wording needed to be nailed down because the matter could go through many years in the appeals process. It was consensus to nail down to the initial conviction of a felony. Mr. Brown asked Ms. Hoch about the anxiety of the customers, and she stated the customers just do not want to see their rates go up. Ms. Hoch reviewed an amortization schedule of twenty years with Council. She stated there would be extra money without the system growing based on 9-30-85 revenues and reviewed with Council her projections. She did not reflect any growth in preparing debt service, but only based it on what they are currently earning and paying for debt service. She estimated $753,000 that could be used for growth ex- pansion of the system. Ms. Kissler stated it is extremely important to the City to have control over the water in our ETJ growth area. Mr. Coddington requested clarification on the Moss Cliff contract. Ms. Hoch stated Moss Cliff is a contract wherein Elim agreed to re- fund 50% of what is collected and Moss Cliff will give Elim an ease- ment. Moss Cliff has been notified by Elim that until the easement is given, the funds will be held and is referred to on Page 6 of the audit report under Sec. 8 ($4,597). Mr. Coddington stated the City should not purchase this system until we have the net worth of the corporation, a full audit. Ms. Hoch stated the balance remaining for improvements and operating expenses is: approximately $30,000. Mr. Brown asked Ms. Hoch to respond to the liability the city would assume. She stated the City was to buy her shares and she has agreed to sign the "Maxwell" type agreement for the benefit of the City to purchase this system as proposed. Potential liability is placed on Ms. Hoch with this type agreement. In the proposed agreement between Elim and the City, the City would request certain territory that is certificated at present on the certificate Elim serves and is listed on the security agreements and is pledged on the notes to the parkers. In the City acquiring a certificate, there would be potential litiga- tion if the Parkers did not like the method used by the City. Ms. Hoch said there was no ho&tility on the part of the customers as the agreements are now structured. Mr. Gonzale.z advised the Council it is the opinion of the Sawtelle firm the City is in a good position in regard to what other creditors might have. They could sue but we - have a good position with this agreement. Mr. Farr moved to amend the language regarding employees'dismissal for an initial conviction, with direction to Mr. Barrera to word this amendment, and Ms. Kissler seconded the motion. On roll call the following vote was recorded: AYE: Brown, Coddington, Farr, Kissler, Nicola. NAY: Younger. ABSTAIN: None. - Ms. Kissler moved to amend the water system General Manager from being a Trustee on the Board to being an Ad Hoc Member with direction to Mr. Barrera to word this amendment, and Mr. Nicola seconded the motion. On roll call the following vote was recorded: AYE: Brown, Farr, Kissler, Nicola. NAY: Coddington, Younger. ABSTAIN: None.