BOT-03-26-75 Special MeetingMINu'~'~S OF '~'~ SPECIAL MEETING
OF THE
BOAKD OF TRUS','.:~S, CALOMEL
MARCH 26, 1975
The special Beard meeting was called to order at 6:05 p.m. by President William McFadden
for the purpose of entering into a sales agreement with the Indianapolis Water Co. to
purchase their water plant facility at 106th and Gray Rd. and considering an Ordinance
authorizing payment of Revenue Ben~s to meet the expense of the purchase. Ail Beard
members were present. Town Attorney, Town Manager, Utilities Manager, Town ~neer,
Don McCullough, Fiscal Consultant, representatives from the press and approximately
15 citizens were also present.
President McFadden opened the floor for discussion.
Trustee Beach wanted the people to read the proposed sales agreement. Hr. Dick Dowell,
President of Cool Creek Civic Association, stated he thought the Beard should withhold
decision until new council takes over Ja~,ar,y 1976. President McFadden stated he felt
the Board should make the decision now an~not wa/tuntil the need was desperate.
Trustee McFadden stated with the projections presented to the Board by consulting engineers,
we would need to either buy these facilities or bu/ld new facilities because our present
capacity would net be adequate in two years. He stated the total project purchase would
total approximately $2,000,000.00. We would plak up 300 customers Ind/anapolie services
now. Also, Indianapolis Water Co. wants to use water until Aug., 1976. They will pay
Carmel Utilities $5,000.00 per mo. This would help amortize the cost. We would have to
have a rate increase of 32%. Actual purchase price-$1,200,000.O0.
-- Mr. Don McCullough, Fiscal Consultant, reveiwed the Rate and Financial report his office
had prepared.
Hr. Fred Cunningham questioned the legality of not advertising for public hearing before
the Beard entered into purchase of property.
Several of the people thought the Board should walt.
Tx~tstee Reach moved for a 30 day extension in finalizing the sales agreement to allow the
citizens to be apprised of the situation. Trustee Swift seconded it. The motion
failed 3-2. Trustees Stevens, McFadden an~ Hinehaw casting the nay votes.
Trustee Hinshaw then moved that the Town of Carmel enter into an agreement with Indpls.
Water Co. for the purchase of their Olay Township facilities as per sales ~greement
before us. Trustee McFadden seconded it and it passed 3-2. Trustees Beach and S~iWt
casting the nay votes. Trustee Hinshaw then sutlined his reasons for voting aye as follows:
"I must in all good conscience-for the long range good of the Carmel Commun/tyvote "aye"
for the purchase of the N-mtlton Co. Water Facilities ~drthe following reasons:
1. We are buying a water source-existingwells, pumps, and well fields which according
to reliable projections we must have by 1976-at the latest, 1977.
2. Additional monies will also be necessary for additional softening facilities and
elevated storage facilities whether we purchase this source of water or whether we have
to develop a new well field and construct a new plant.
3. In add/ton to the water source, we are purchasing some existing lines and meters
supplyim~ customers which offers a potential of additional customers and business
expansions which should help pay the indebtedness of the purchase price.
4. Our own town employees h~ve confirmed that in the ~'mmer of 1974, a wet and not too
hot of a year so far as temperatures go, that there were some times when our pumping
capacity did not keep pace with the water consumption.
5. Our consulting engineer, Clyde Williams & Asso. have confirmed projections %hat our
need for water will be real in 1976 at our growth rate based on the past five years.
page 2.
To wait until we are short of water to start building additional facilities could be
disasteroue to the community and with the spiraling cost of construction could cost
us more money then, than now, and thus even a larger percentage increase in water
rates than the 32% it will require at this time. Also the pumping of wells to the
extremes of their capacity reduces the life of a well.
6. Other utilities in the area, Indiana Bell and Public Service also agree with growth
projections.
7. With this contract, a service area for the Carmel Water Co. will be established.
8. Ail cost projections run by ou~ consulting engineers and an independent appraiser
say that we cannot build a facility for the price we are paying for this plaut and to
build one would cost us more dollars to say nothing Of the time involved in searching
for suitable areas and constx-uction time.
9. With this growth of our water facility we offer a potential of better services to
areas which may be comparably annexed into the city.
10. This additional water service buys the city time to determine if future expansion
should be subterranean water or if future expansion should possibly be porification of
river water from White River."
President McFadden read proposed Resolution #32675-1 as follows:
Comes now Carmel, Indian~, by its duly elected Board of Trustees, or a majority l~lereof,
end resolves to enter into that Sale Agreement which is attached hereto end made a part
hereof, for the purpose of purchasing water utility facilities presently o~ned by
Indianapolis Water Co., such being in the best interest Of the Town of Carmel, Indiana,
end such execution of said Agreement being necessary to cons,,mm~te the sale end purchase
of said water utility facilities, all subject to the approval of the necessary gove~-~a~ental
agencies.
Trustee Stevens moved to adopt Resolution as read, Trustee Hinshaw seconded it and it
passed 3-2. Trustees Beach and S~ift casting the nay votes.i
President McFadden then read proposed Ordinance #A-46 authorizing payment of Revenue '
Bonds for extensions and additions to the Carmel, Ind. waterworks exclusively end soley
from the revenues and the receipts of the waterworks of the Town of Ca~mel, Ind. Trustee
McFadden asked for a motion to suspend the rules end pass on the ordinance after the
first reading. Trustee Hinshaw so moved, Trustee McFadden seconded it end it failed
3-2. Trustees Beach, Swift end Stevens voting nay.
President McFadden stated anyone wishing to review the Rate end Financial Re_port prepared
by Fiscal Consultent, could do so by going to Town Manager's office, Clerk'~ office
or the Public Library.
There being no further business, the meeting was adjourned at 8 p.m.
?e~g~ IYou . th, Clerk Treas.~
William D. McFadden, Pres.