10311983 Special Meeting - Laserfiche WebLink

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J5' Special Meeting October 31, 1983 Page 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AMENDING THE CODE OF ORDINANCES OF SAN MARCOS, TEXAS, BY ADDING TO ARTICLE II. SERVICE CHARGES, OF CHAPTER 30, WATER AND SEWERS AND SEWAGE DISPOSAL; A DIVISION 4, SEWER CAPITAL RECOVERY FEE; PROVIDING FOR AN EFFECTIVE DATE; PROVIDING A SEVERA- BILITY CLAUSE; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCE PROVISIONS; PROVIDING FOR ITS PUBLICATION; PROVIDING FOR ITS PASSAGE ACCORDING TO LAW AND DE- CLARING AN EFFECTIVE DATE. Ms. Kissler moved for approval of the Ordinance on first reading and Mr. Farr seconded the motion. Mr. Brown stated he thought that Section 30-48 on Page 6 needed to make provision for inflation. Mr. Kreczmer stated some of the water usage amounts were low and some were too high. City Manager Gonzalez stated at the top of Page 5 provisions needed to be made for service stations, churches and travel trailers. Mr. Guerra asked if future Councils could change Section 30-50. Acting City Attorney said it could be changed but the City had a contractual obligation on existing contracts and would be obligated. Mr. Kreczmer asked Mr. Chapman more specific information on Mr. Guerra's question regarding diversion of money by future Councils. Mr. Chapman said they would be looking litigation into the face because the funds were designated for a specific pur- pose, but that future dollars brought in could be designated differently if a future Council chose to handle it in a different manner. City Manager Gonzalez stated the fees in the Ordinance before the Council in the amounts of $750.00 and $900.00 were reasonable and could easily be justified. Mr. Guerra asked the effect of a lower amount, and Mr. Gonzalez replied that less improvements could be done to the sewer treatment plant if less money was collected. The proposed capital recovery fee would be in addition to the present tap fee of $250.00. Shirley Wickersham stated she thought the City was rushing into this matter. Jim Byrn asked questionsof the City Manager and was advised that $919,000 would generate 500,000 additional gallons of capacity and that the expansion was pursuant to our Master Plan which estimat~the City's population to be 45,000 in the year 2000. Mr. Byrn recommended the City seek a lO-year minimum projection rather than six years. Mr. Byrn did not think the projects Sink and Purgatory were of immediate need as Willow Creek, but City Manager Gonzalez replied that they were for future growth. The Council voted unanimous approval of the Ordinance on first reading. A discussion was then held regarding financing of sewer treatment plant improvements. Curtis Adrian of First Southwest Company, the City's bond consultant, stated the City is financially sound and can issue approximately $5 million of bond indebtedness in certificates of obliga- tion or revenue bonds. He stated he would like to further check out what impact the capital recovery fee would have on the City's utility fund and would like to report back to the Council if it is in conform- ance with the arbitrage law. Mayor Craddock directed Mr. Adrian and the City's bond attorney, Rick Fisher, to proceed. Mr. Fisher suggested the Council delay the passage of the Ordinance until a review of the legal implications could be made. Bryan Hoot, a local plumbing con- tractor requested the Council proceed as quickly as possible. City Manager said the Staff was recommending $1 million in certificates of obligation be issued for improvements to the current facility. After some discussion, Mr. Adrian and Mr. Fisher stated they could have a report to the Council at the Wednesday, November 2 Council Meeting.