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HomeMy WebLinkAbout1983.04.12_City Council MinutesOn Tuesday, April 12, 1983, the Owasso City Council met in special session in the Council Chambers at City Hall per the Notice of Public Hearing and Agenda posted on City Hall bulle- tin board at 4:00 p.m, on April 8, 1983, and by reference is made a part hereof. ITEM l: CALL TO ORDER The meeting was called to order at 7:10 p.m, with Mayor Spencer presiding. ITEM 2: FLAG SALUTE Flag salute was led by Mayor Spencer ITEM 3: ROLL CALL PRESENT: Boyd Spencer, Mayor Wauhilleau Webb, Vice-Mayor Phyllis Gross, Councilwoman James Smalley, Councilman Von 5tockler, Councilman (7:25 p.m.) Dale Block, City Manager Ann Hendrickson, City Clerk Ron Cates, City Attorney ABSENT: None ITEM 4: DI5CUSSI0TQ CONCERNING PUBLIC IMPROVEMENT PROJECTS Ii~T THE WATER AND SEWER AREAS AS WELL AS THE FEASIBILITY AND DESIRABILITY OF FINANCING ALTERNATIVES. Mr. Bob Pruitt of Al C. Young and Associates was present to review the water and sewer projects discussed at the public hearing of March 22, 1983, and to present changes and additions as discussed in that. meeting. HP explained the provisions made for service to people now using the existing line, showing how the existing line could be tied into the new 12" line in two places. He presented a different plan for sewer line from 86th St. No, paralleling the railroad line to the treatment plant. This would be more cost effective and better for future growth. Mr. Block stated that he felt that the new sewer line would sufficient to solve the problem with the FHA moritorium on building in the northern part of the City. Mr. Block explained that the four lift stations that will be put out of use will be used as spare parts for the existing lift stations. Mary Williams asked about when improvements would be made to the treatment plant. The Mayor said that was a seperate project which was under way at this time. Mr. Block said that if things go as planned, construction for improvements at the plant site should be under way by this time next year. OWASSO CITY COUNCIL PAGE TWO APRIL 12, 1983 Mr. Lyle Wasserman asked if there was an estimate on future growth as to how much the new line would handle. Mr. Block said that studies indicate that the new line would handle future growth for a conservative 10-15 years. Edna McCaslin asked about a drainage ditch in her part of town which she felt was a long-standing problem that should be taken care of. Mr. Block explained that this problem could probably be taken care of at the same time the water line is replaced. He stated that when problems such as deteriorated water lines are taken care of, money that would have been spent on water line repair is available for correction of .other problems. Mr. Block outlined the new water line project showing that except for an area on 129th E. Ave, the City would have a complete 12" water line loop around the City. He stressed the importance of looping flow for the City's water pressure. Mr. Block explained that the new water line and the new water storage tank would be extremely important to the City in it's firefighting ability, particularly when there is more than one fire at a time. He said the water tank would be in the vicinity of the interesection of the proposed Highway 169 and 96th St. North. Mr. Wayne Vines asked if the new storage tank would take care of the water pressure in the north end of town. Mr. Block said it would greatly improve it. The tank's 100' height will create additional pressure. Ms. Williams asked how the tank would affect water pressure in the south part of Owasso. T!Ir. Block said water pressure prob- lems in the area where Ms. Williams lives are probably caused by reduction of flow in the pipes. Mr. Pruitt said the new storage tank would riake the water pres- sure more even and constant all over town. Ms. Williams asked what would be done with the old water tank. Mr. Block said it would continue to be used. Mrs. Gross asked if the exact location of the proposed highway has been determined with regard to the location of the new water storage tank. Mr. Pruitt said that location of the site is flexible.and did not have to be located exactly as shown on the plans. Mr. Block said he had just learned that the Highway Department is planning a full interchange at 96th St. No, and he would get their plans before determination of the site of the water tank was made. OWASSO CITY COUNCIL PAGE THREE APRIL 12, 1983 Mr. Pruitt said that once the new water line is built, another water storage tank can be added in the same area when warranted by growth. With regard to water line replacement in the downtown area, all metallic lines would be replaced with 6" plastic pipe. Mr. Block said that approximately 80 valves would be put in which would enable the water department to turn off water one block at a time when problems occlzr. Ten additional water hydrants will also be installed which is another step in improving fire fighting capability. . Mr. Pruitt explained that the cost estimate on waterline replace- ment included right-of-way clearning and restoration, and also service connections. He said another cost figure was given for materials only in case part of the work could be done by City employees. Mr. Block asked that the council consider the total cost figure with the possibility of the City doing some of the work. He said the City does not have a construction crew and does not have the capability that he would expect to see in the future. He suggested there be some segmental bidding in tn.is area when the tirne comes . Mayor Spencer stated that he is against City crews doing work on projects like these and he thought the City would be ahead in both time and money to have the work contracted out. Mr. Wasser- man agreed and said'it would be better to have the work contracted out as far as responsibilty is concerned. Mrs. Gross asked what kind of pipe was in use south of 76th St. North. The Mayor said six inch plastic pipe was put in that area about 10 years ago. Mr. Block said the water line replacement would involve about 10z miles of pipe and is quite a large undertaking. It will last a long time, however, and will free money for other projects that might have previously been spent on water line repair. In summary, Mr. Pruitt gave a total preliminary construction cost of $2,313,400. He explained that this did not cover engineering fees which are estimated at $165,100. An approximate figure for inspection, administration, land acquisition, legal and financing would be $261,000. The total approximate figure for the water distribution and sanitary sewer system projects is $2,740,000. Mr. Block said that this be less. He said the 5% tion cost could probably figure is negotiable and probably will contingency built in to the construc- take care of part of the costa Mr. Brian Davis asked what the shortest possible time would be for completion of the projects. Mr. Pruitt said if different contrac- OWASSO CITY COUNCIL PAGE FOUR tors working on each project estimated time months on the sewer lines, 9 months on the about 1 year on the downtown restoration. APRIL 12, 1983 would be 6 to 7 new water lines and r1r. Block asked Mr. Davis when money would be needed and would payment need to be for part of the fiscal year or the whole year. Mr. Davis said that on June 30, 1984 the City will need a sum of money in the sinking fund equal to what would go on the tax rolls if it were to be put on the tax rolls. Mr. Davis reviewed alternatives on bonding. as discussed at the last special meeting. The option that seemed most generally accep- table was a General Obligation Bond issue that would be retired through the imposition of a new 1G sales tax the proceeds of which would be put into the sinking fund in lieu of actually making an Ad Valorem tax. He explained that it would be necessary for the City Council to pass a Sales Tax Ordinance in which there is a section that covers the purpose of the sales tax and that would limit the purpose of the sales tax to some degree to the repayment of the bonds being issued at the same time that the sales tax is voted on. The amount of limitation can vary greatly. The election is held to ratify the sales tax ordinance. If the election fails, the sales tax ordi- nance does not go into effect. If it is ratified,. it takes 60 to 90 days in order to begin collecting the sales tax. He explained that the law requires that there be one proposition for each particular utility system project, one for water and one for sewer, on the ballot. An explanatory note can be put on the ballot saying that if the sales tax proposition does not pass, even though one of the other propositions might pass, the bonds would not be issued. It is important that people understand that even though Ad Valorem taxes are referred to on the ballot, the City will be making payment in lieu of the Ad Valorem Taxes from sales tax revenues so they will not go on the tax rolls. He said there are basically three ways to pledge the sales tax monies: 1, general sales tax ordinance wherein the sales tax goes into the City's general fund and a resolution is passed by the Council saying sales tax will be used to pay the bonds. 2. sales tax proposition stating that first use of the sales tax proceeds will be to retire the bonds and any surplus would go to general fund. 3. sales tax will be used only for payment of bonds. The first method is probably too loose as future Councils would not be bound by the resolution and the third method is too restrictive. OWASSO CITY COUNCIL PAGE FIVE APRIL 12, 1983 Mr. Davis said the council would also need to pass a resolution calling for a special bond election to be held which would in- clude the sales tax proposition. The water and sewer proposals must outline exactly how 70Q/o of money requested will be spent and then 85% of that 70°/o must be spent as outlined. Thirty percent could be used for any water or sewer project in the City. This assures the taxpayers of Owasso the money will be spent as approved and also keeps money from being unusable if too strictly tied down. The Council directed Mr. Brian Davis of Evan L. Davis, Inc, to draft documentation indicating that the new l~ sales tax, if passed, be used to retire the proposed water and sewer bonds and any surplus should go into the City of Owasso General Fund and to return to the Council meeting on April 19 with a proposed sales tax ordinance and a resolution authorizing the calling of an election with three propositions (sales tax, water and sewer) and that the explanatory note indicating that if the sales tax proposition does not pass, the bonds would not be issued be put on the ballot. There being no further business before the Owasso City Council, chair adjourned at 9:10 p.m. ,~ 12c/ BOY M. SPE ER, MAYOR ANN HENDRICKSON, CITY CLERK