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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: