HomeMy WebLinkAboutCCM-06-02-80 MINUTES OF THE
CITY COUNCIL MEETING
JUNE 2, 1980
The meeting was called to order by Mayor Jane Reiman at 7:30 P.M. on
June 2, 1980. Councilmembers Shepherd, Fleming, McMullen, Garretson,
Walker and Johnson were present. Mike Howard represented the City
Attorney. Also present was the Assistant Clerk-Treasurer.
Invocation was given by Mrs. McMullen followed by Pledge of
Allegiance.
Mr. Garretson made a motion to approve the minutes of the May 5 and
May 19 meeting. Motion seconded by Mr. Johnson and passed unanimously.
Mr. Johnson recommended Mr. Vaughn D. Story to fill the vacancy on the
Development Commission. Mr. Johnson placed Mr. Story in
Economio
nomination for the EDC. Mr. Garretson seconded the nomination and
passed unanimously.
Old Business
Ordinance D-248 - Ordinance Amending Salary for Utilities Manager -
was brought before the Gouncil for second reading.Mr. Garretson moved
to adopt Ordinance D-248. Motion seconded by Mr. Johnson. Ordinance
DL248 passed on a vote of 5-1. Shepherd, Fleming, Garretson, Walker
and Johnson voting aye. Mrs. McMullen voting nay.
Ordinance DL249 - Procedural Ordinance for Purchase of Real Property -
A A Mr. Garretson pointed out the only ojection was from Mrs. Kerr
concerning the language used as to where the Council could acquire a
second appraisal. Mike Howard said, from research made by City
Attorney, it wasn't necessary that the property be purchased at or
less than the appraised value. There isn't any necessity for a second
appraisal and an ordinance only provides procedural guidelines for the
City. Mr. Howard stated if the Council wants a second appraisal they
may get it. Mr. Garretson moved to adopt Ordinance D-249. Motion
seconded by Mr. Fleming and passed unanimously.
New Business
Transfer of Funds - Police Department - Ordinance B-164 was introduced
for the transfer of funds within the Police Department budget. Chief
Lowe expressed the need for these monies to complete the remodeling
being done in terms of carpeting, tile, paneling, paint and general
decorating of the additional building. Following discussion by the
Council Mr. Garretson moved to suspend the rules and act upon
Ordinsnce B-164. Motion secondred by Mr. Shepherd and passed
unanimously. Vote was taken on Ordinance 3-164 which passed
unanimously.
Salary Ordinance - Water Department Summer Help - Ordinance
D-250 was
introduced to amend Salary Ordinance DL219. Mr. Walker stated the help
City Council Meeting June 2, 1980
Page Two
would be used to assist in locating and the maintenance of
valve and fire hydrants for the water department. After
discussion, Mr. Walker moved to suspend the rules and act
upon Ordinance D-250. Motion seconded by Mr. Garretson and
passed unanimously. Mr. Walker made a motion to adopt
Ordinance D-250. Mr. Garretson seconded the motion and it
passed unanimously.
Eire Department Rules and Regulations Resolution - Mr.
Walker produced a copy of the Rhles and Regulations
Resolution and stated that because of the numerous pages and
the cost, it wasn't possible to supply every one with a copy.
He stated there were copies in all fire stations for the
public to view. Walker pointed out that alot of time had
been put into creating the Rhles & Regulations and the Board
of Public Works had approved them on May 21, 1980. Mr.
Walker moved to adopt the Rhles & Regulations Resolution.
Motion seconded by Mrs. McMullen.
Mr. Garretson pointed out that the Resolution need not have
come before the Council. He stated that if the Resolution
was going to take the form of a City law, then it should be
an ordinance.
Mr. Howard, acting City Attorney, stated that the fire and
police depart ments were in need of these Rules and
Regulations to maintain some guidelines within their
departments but he felt that it didn't need to be an
ordinance. Following more discussion Garretson moved to
table the adoption of the Fire Department Rules &
Regulations Resolution. Motion seconded by Mr. Fleming and
passed unanimously.
Hamilton Waste Utilities - Mayor Reiman introduced Mr. R. J.
Panke, President, and Mr. Willis Kunz, Attorney, both from
Hamilton Western Utilities. Mr. Panke stated he had asked
Mayor Reiman in a letter if she would put HWU on the agenda
to enable various aspects to be discussed.
Mr. Kuntz then introduced himself and stated he had
represented HWU from the time of its initial purchase of the
interest in Journal Box facilities in 1969 or early 1970. At
that time there was an existing contribution contract
between the Town of Carmel and the Journal 30x Corp. It was
a contract under the 15 year act where a number of property
owners went together and financed the interceptor that runs
into the Cities north plant. The financing at that ~ime was
$130,000 for the whole interceptor cost. Apparently, under
the terms of this contract, they figured an Equivalent
Dwelling Unit EDU), and they had Journal Box, Wilson,
Dukuley and Chalfey McBride as parties to the contract.
Apparently the only one who paid anything was Journal Box
Corp. who paid the whole $130,000. At that time there was an
agreement as to the number of EDU's that would be available
to Journal Box for their continuance in aid of construction
to the Interceptor Sewers. The City had agreed that Journal
Box would receive 1088 units and the other wouId receive the
remainder of the total of 1578 units. In the agreement,
under paragraph #7,it states that in return for the
contribution the town agrees to accept the sewage from
City Council Meeting June 2, 1980
Page Three
the sanitory Sewer Interceptor, will make no additional assessments or
connection charges against the contributor, subject to sewage rates
currently established within the town of Carmel and will operate and
maintain the Sewage Disposal Plant at the exclusive expense and cost
of the Town and no others.
When this contract was purchased by HWU, the agreement was that the 15
year act contribution of $84.oo would stay with Journal Box but the
use of EDU's would come to HWU.
After the contract was purchased, it came to light that there was a
sewer ban on the North Plant. With no ability to add on additional
users they arrived at an agreement whereby HWU built a package plant
in Carmel's ~orth Plant that had approximately 240,000 gallons per day
(about 3 EDU per 1,000 gallon) thus adding 750 EDU by adding this
plant. Carmel took 3~0 of the EDU and Hamilton Western Utility took
the other 450. Changes were made in the plant due to the type of
treatment, and we got into an argument of who was going to pay for
these changes and suit was filed. The court into an
then entered
agreed judgment deciding how much each party would pay and how it
would be paid. (at this point in time, Carmel was selling units to
other developers cheaper than it cost to build the plant).
In connection with agreed judgement there was an argument as to how we
were going to figure the service charges and the inflow and
infiltration. ~o come up with a fair method of reporting, a form was
drawn up to show the meter reading, i.e., how much effluent i8 running
through the manholes. HWU agreed on an inflow and infiltration of 1~
million gallons per month. This was all a part of the agreed judgement
except that HWU found, especially during the month of March that we
were paying for almost 70% of the North Plant capacity and were using
Somewhere between 10 and 15% of that capacity. HWU had a charge that
was very unrealistic, so we amended the agreement whereby we were both
going to place methods of Testing between the City and HWU and see
just what the inflow and infiltration amounted to. This is now in the
works. Once we knew how much this amounted to we would know how much
of the plant we were using and we could then arrive at a percentage.
This was all worked out in an agreement. In the interim we agreed to
work on EDU's i.e., how many does each party have and pay on that
basis. This however, has not been done yet.
After all of this, we still found that we had a sewer ban on the North
Plant. HWU worked, jointly, with the State Board of Wealth and they
told us to build an interceptor and run part of what you have through
your new plant. HWU also took all of Village Farms off the North Plant
and put it on the HWU plant. (some 100 additional users) That is where
it sets today.
The complaint that we have is that of the 1088 or 1548 units we have
never been afforded any capacity at all from the City of Carmel. Even
for the package plant we put in, we have never received our 450 units.
~his was the nature of a letter written to Mayor Pickett prior to his
leaving office and since that time we have written a letter merely to
discuss and hopefully not get back into litigation. This in essence,
is what exists between Carmel and Hamilton Western Utilities.
City Council Meeting June 2, 1980
Page Four
Jim Dougherty, Utilities Manager, stated he agreed with the
majority of the statements but some would require a great deal
of discussion.
Mr. Garretson stated he was not sure what was being asked of
the City. Mr. Kunz answered that they wanted capacity, money,
or an alternative. Mr. Garretson said he felt there was a
potential liability here and would probably be better not to
voice any personal opinions. Mr. Walker suggested we sit in
executive session and discuss the situation after we have had
time to review the documents.
Financing for Rangeline Road & Other Projects - Mayor Reiman
distributed petition forms to Councilmem bers pertaining to
the needs of the City for a bond. Mayor Reiman stated if the
City was to begin the works of a bond, petitions needed to be
signed, followed by an ordinance. George Gavit and McCullough
& Associates along with city Attorney are working with the
Mayor's office on this matter. A cover letter (attached to
these minutes) shows the 3 major issues involved; the widening
of Rangeline Road South, a new fire station in the E section of
Carmel, and land acquisition for future City facilities. (i.e.
a new main fire station.) Mayor Reiman went on to say if the
City can acquire the bond the percentage rate would be about 8
to 9%, maybe lower. The target date to finish up is October.
Dave Coots, atty, 11592 Westfield Blvd., Carmel, reported that
the Riverview Hospital Board, at their meeting last Thursday
passed unanimously the joint petition of Carmel Clay to adopt
the proposed plan for paramedic service to (5) five
participating townships, which joint petition carries with it
a 3 cent per $100 of assessed valuation to fund the deficit
not made up by user charges. The County Commissioners adopted
this plan with a recommendation to the County Council that an
ordinance be drawn to draw the tax levy adopt the proposed
plan and obtain the approval of the State Board of Tax
Commissioners to raise the additional levy.
Mr. Johnson brought an item before the Council, and after
discussion Mr. Garretson made a motion to add the item to the
agenda. Motion was seconded by Mr. Fleming. The motion failed
with Councilmembers McMullen, Garretson and Johnson voting
aye; Councilmembers Walker, Fleming and Shepherd voting nay.
It takes a unanimous vote to add an item to the agenda.
John Hensel, Clay Twp. Trustee, reported he would be leaving
Wednesday to pick up the new fire truck for the Township.
There being no further business to come before the meeting,
the same was duly adjourAned at 9:15 P.M.
Approved:
Attest: