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Min 07/23/1990 516 Wichita Falls , Texas Memorial Auditorium Building July 23, 1990 Item 1 The City Council of the City of Wichita Falls, Texas, met in called session on the above date in the Council Room of the Memorial Auditorium Building at 10:30 o'clock a.m. , with the following members present. Michael Lam Mayor David Farabee - Charles Thomas - �' Angus Thompson - Councilors Paul Hughes - J. W. Martin - Don Kirkham - James Berzina City Manager Jeanie Martin Asst. City Attorney Wilma J. Thomas City Clerk Item 2 ORDINANCE NO. 48-90 ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF CITY OF WICHITA FALLS, TEXAS WATER AND SEWER SUBORDINATE LIEN REVENUE BONDS, SERIES 1990-A; CITY OF WICHITA FALLS, TEXAS WATER AND SEWER SUBORDINATE LIEN REVENUE BONDS, SERIES 1990-B; AND CITY OF WICHITA FALLS, TEXAS WATER AND SEWER SUBORDINATE LIEN REVENUE BONDS, SERIES 1990-C; THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT; AND AUTHORIZING OTHER MATTERS RELATED THERETO Moved by Councilor Thompson that Ordinance No. 48-90 be passed. Motion seconded by Councilor Hughes. Jerry Gross explained that efficiency standards have become increasingly higher for the waste water sewer treatment plant. This plant cannot meet these standards, and a project has been undertaken to make it come up to standards. There is a major trunk line at Midwestern Parkway and Hamilton which flows full in dry weather, and overflows during wet weather. We are under adminis- trative order to find a new interceptor line between this and the waste water treatment plant. Mayor Lam noted that we are having to update this by 1992. Murphy Davis presented information on financing this treatment plant. The Texas Water Development Board has a financing arm that they are suggesting be used for this project. They are providing an interest rate appreciably lower than the market rate. The initial financing to meet the EPA guidelines was done at one hundred percent through the Texas Water Development Board at 5.5 percent. The B Series of 1 .49 million is at 7.72 percent, and the C Series of $540,000 is at 7.17 percent, to accomplish the additional funding. This is being done under a separate program which is an attractive financing. He explained that the AA rating cost is passed on to the City. The integrity of the City's rating will not be affected. We will be making much more on the net interest rate than we will be paying out. These bonds will go directly to the Texas Water Development Board, and the City will pay their portion out of these bonds. Rick Porter, of McCall , Parkhurst, stated that in 1986, the City refunded its outstanding refunding bonds. He explained what the ordinance authorizes. After all bonds are approved, the Attorney General will be escrowed by NCNB Dallas. Some federal money and some state money will be used to finance this project. After this is done, they may come back and ask for authorization for another escrow agreement. This will only affect Series A and B. Series C will still stay in an escrow agreement. The Water Development Board has agreed to give the City 60 days advance notice before they sell these bonds to the general public. 517 Item 2, Cont'd William Young, 1018 Widows Lane, asked about repercussions if we fail to meet these EPA regulations. Mr. Gross explained that we are under administra- tive order, and fines are in the six digits if not adhered to. Mr. Berzina noted that fines are known to be $10,000 to $20,000 per day. Murphy Davis explained that it has taken us one and one-half years to get to this point. The City can really control its destiny by doing this. Councilor Thomas commented that most of the questions being asked concern the sewer charges on the water bill . Mr. Berzina stated that a rate study is being done now which should come back to the Council this summer. He believes there will be increases in the water and sewer rates. Councilor Thomas noted that this is being mandated to us. We are saving two and one-half million dollars more than if we tested the local market, or could not get this rate. Councilor Martin noted that we are showing the citizens that we are saving money, rather than spending it. Councilor Hughes addressed the turn around time, stating there are no hang- ups that he can see. We are looking ahead for the citizens. Mayor Lam commented that in the construction industry, they understand this. Councilor Kirkham commended the staff for the excellent work they have done in securing 24 million dollars. Murphy Davis addressed the 60-day notice. Mr. Porter explained it will allow the Council to do some good planning. Mayor Lam thanked the staff, along with Mr. Davis and Mr. Porter, for their diligence in this matter. Mr. Davis explained that it will help the City by placing it in a preemptive manner, rather than a reactive manner. It should have some kind of ancillary impact on getting industries to come to the City. The motion carried by the following vote. Ayes: Mayor Lam, Councilors Farabee, Thomas , Thompson, Hughes, Martin, and Kirkham Nays : None Item 3 ORDINANCE NO. 49-90 ORDINANCE NAMING REPLACEMENT ALTERNATE JUDGE FOR AUGUST 11 , 1990, CITY ELECTION Moved by Councilor Martin that Ordinance No. 49-90 be passed. Motion seconded by Councilor Hughes, and carried by the following vote. Ayes: Mayor Lam, Councilors Farabee, Thomas, Thompson, Hughes, Martin, and Kirkham Nays: None Item 4 RESOLUTION NO. 134-90 RESOLUTION APPROVING AMENDMENT TO WATER PURCHASE CONTRACT WITH WICHITA VALLEY WATER SUPPLY CORPORATION Moved by Councilor Kirkham that Resolution No. 134-90 be passed. Motion seconded by Councilor Martin. 1 1 518 Item 4, Cont'd Jerry Gross explained the negotiations with Wichita Valley Water Supply Corporation. He explained that Wichita Valley could only be reviewed at a minimum of five-year increments. Six years ago they began discussing with them some changes which need to be made to change them to the same schedule as other contractors. The Texas Water Development Board reviewed their rates on May 3, 1989, by the filing of a petition with them. They have ultimately arrived at what is being presented today. Through discussions with the Corporation, and at the Commission level in Austin, they have arrived at the same rates, methodology and conditions as other entities. Wichita Valley also asks for a refund back to May 3, 1989. Councilor Martin addressed Section 2.0 (e) of the contract. Mr. Gross explained the difference in contract treatment of the customers who purchase raw and treated water. Mr. Berzina recapped that Wichita Valley opted to take the five year plan, and they went back for a rate adjustment. We are now able to bring them into the same situation as other users, except Archer City. Jeanie Martin, Assistant City Attorney, stated she believes Wichita Valley would be entitled to an adjustment from the day they filed the petition. The motion carried by the following vote. Ayes: Mayor Lam, Councilors Farabee, Thomas, Thompson, Hughes, Martin, and Kirkham Nays: None The City Council adjourned at 11 :25 a.m. PASSED AND APPROVED this c/ day of e ,1990. Michael Lam, Mayor ATTEST: Wilma J. Tho as, CMC/AAE City Clerk t.: