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HomeMy WebLinkAbout06-26-80066'70 Minutes of a public hearing of the Pulaski Town Council, held June 2b, 1980 at 7:00 P. M. in the Council Chambers in the Municipal Building. There were present: Mayor Raymond F. Ratcliffe, presiding. Councilmen: Blair B. Brockmeyer, Andrew L. Graham, Jr. C. E. Boyd, Jr., Robert M. Wallace, John A. Johnston, Arthur L. Meadows, William A. House, James M. Neblett, Jr. Also present: H, R. Coake, Assistant Town Manager Gladys R.,Dalton, Clerk Garnett S. Moore, Town Attorney Roger A. Williams, Finance Director Visitors: Jane Graham, Dee Lindsey, J. R. Schrader and Barbara Walters of the news media Pauline G. Mitchell and Alma S. Holston, Councilwomen-elect Approximately 15 citizens The invocation was given by Councilman Boyd. Mayor Ratcliffe welcomed the visitors and advised that the purpose of the public hearing, as advertised in the local newspaper, was for the PUBLIC HEARING TO determination of a method of financing the Peppers Ferry Regional Waste- DETERMINE METHOD OF water Treatment Facility and possibly raising the present sewer rate, and FINANCING PEPPERS FRY. as we go along, if anyone has a point they wish to discuss we will allow PLANT time for that. Mayor Ratcliffe advised that the Town of Pulaski has been mandated by the State of Virginia to upgrade its Sewerage Treatment Plant and sanitary sewer system. The Town Council has been studying this since 1973 in an effort to find a solution to the problem which would be approved STATEMENT by the State Health Department. He stated we have now come up with four BY MAYOR RATCLIFFE different proposals prepared by the Council and members of the staff to finance a portion of the selected alternate, which plans or proposals were carried in the Southwest Times in order that the public would study them. Tonight we will make a recommendation on a plan which we believe will be in the best interest of the citizens of Pula ski . Mayor Ratcliffe stated the last time the Council held a meeting on this matter there was considerable concern about how the senior citizens or citizens on fixed income would be affected by any increase in sewer rates, and no one from the commerce or industry appeared at that time. With this in mind we believe you will agree that the plan we recommend will be to that group of individuals' benefit. 06671 June 2~7, 1980 Mayor Ratcliffe stated the present sewer rate for individuals PLAN FOR FINANCING REGIONAL TREATMENT PLANT and industry is $3.50 for the first 3,000 gallons. Our Plan is to double this base rate which would increase the minimum sewer rate to $7.00 and at the same time, as of July 1, 1980, the Town will remove the $1.00 water and $1.00 sewer surcharge which was enforced some two years ago to meet the Town's share in its ARC Grant for the Infiltration/Inflow Project. The result would be an increase of $1.50 in your base sewer rate, because the dollar surcharges will be removed as of July 1, 1980. Plan III, which the Council recommends and which Mr. Coake will explain further to you, will give us a years experience and allow us to get the engineering costs paid, and pay as we go for the first year. Another plan would be a small increase for the second year and it might be possible to pay for the Two Million Dollar plant without having a bond referendum which would result in the Town having to pay a high rate of interest. Mayor Ratcliffe stated it was the desire of the Council to proceed on a "pay as we go" basis, and he hoped the citizens would cooperate with the Council on this Plan. He stated the commercial and industrial people would get the same $2.00 surcharge relief on their bill as an individual and any increase would also apply to them. Assistant Town Manager Coake gave the following Method III Plan METHOD III which has been recommended by the Council: BY COAKE -METHOD III Increase sewer fees 100% in combination with Bond Referendum and Revenue Sharing ($500,000 Bond referendum and $370,000 Revenue Sharing). The collection of funds are projected to be completed when the higher cost of operation and maintenance of the Regional Facilities will be applied. Payment for the Bond referendum would be over a 20 year period. Existing C.~..,o,- Foote Fee First mi nimum) 0-3000 Gal. $ 3.50 Next 20,000 .40 Next 200,000 ~: .35 Next 777,000 " .30 Over 1,000,000 " .25 1) 100% increase over existing fee. 2) 157% increase over existing fee. Councilman Johnston Stated the Town is trying to avoid paying on the bond issue and operating expenses of the plant at the same time, and, therefore, this method is being recommended by the Council. 19801 19842 Proposed Proposed Fee Fee $ 7.00 $ 8.99/1000 Gal. .80 1 .03 " .70 .90 " .60 .77 " .50 .64 " 0 ~ 6'72 June 26, 1980 Mayor Ratcliffe advised that the monies we collect on the sewer will be used for that and no other puspose. Tad Steger was the only town citizen with a complaint about the proprosal from the commercial or industrial users. There were several citizens asking questions concerning the operation of the Regional Facility. Mayor Ratcliffe stated if no one else wished to speak on the matter, the public hearing was closed and Council would continue its business. He asked Mr. Coake to read the ordinance, which had been prepared for Council's consideration, which would remove the $2.00 water and sewer charges. Councilman House moved that the matter of considering the ordinance to remove the $2.00 surcharges for water and sewer imposed because of the I&I Project, be placed on the agenda for consideration. Motion was seconded by Councilman Brockmeyer, and carried on the following vote: Andrew L. Graham, Jr. - Aye William A. House - Aye REMOVAL OF Blair B. Brockmeyer - Aye C. E. Boyd, Jr. - Aye $2.00 Surcharge Robert M. Wallace - Aye Arthur L. Meadows - Aye PLACED ON John A. Johnston - Aye James M.Neblett, Jr. - Aye AGENDA Assistant Town Manager Coake read an ordinance to amend Section 29-14.1 and 29-15.3, and to re-enact as Section 29-14.2 and 29-15.4 as ORDINANCE amended, establishing water rates and charges. ADOPTED ESTABLISHING Councilman House moved tha adoption of the Ordinance, as read, WATER CHARGES to become eff ective on July 1, 1980. Motion was seconded by Councilman Neblett, and carried on the following vote: Andrew L. .Graham, Jr. - Aye William A. House - Aye Blair B. Brockmeyer - Aye C. E.Boyd, Jr. - Aye Robert M. Wallace - Aye Arthur L. Meadows - Aye John A. Johnston - Aye James M.Neblett, Jr. - Aye AN ORDINANCE TO AMEND SEC TIONS 29-14.1 and 29-15.3, AND TO RE-ENACT AS SECTIONS 29-14.2 and 29-15.4 AS AMENDED, OF THE CODE OF THE TOWN OF PULASKI, VIRGINIA, ESTABLISHING WATER RATES AND CHARGES BE IT ORDAINED by the Council of the Town of Pulaski, Virginia, meeting in Special Session on this 26th day of June, 1980, that Section 29-14.1 and 29-15.3 be, and they are hereby amended and re-enacted as follows: Section 29-14.2 Charges for Water Service Generally. (a) Consumers other than those subject to the privisi:ons of Section 29-15.1 within the corporate limits of the Town shall pay for water purchased from the Town at the following rate: First: 3,000 gallons Minimum $3.50 Next 20,000 " 0.40 cents per 1000 gals. Next 200,000 " 0.35 cents per 1000 gals. Next 777,000 " 0.30 cents per 1000 gals. Over 1,000,000 " 0.25 cents per 1000 gals. 06673 June 26, 1980 (b) Consumers in the same category as sub-section (a) above, but are outside the corporate limits who purchase water directly from the Town shall pay for the water at the following rate: First 3,000 Gals. minimum $5.25 Next 20,000 " 0.60 cents per 1000 gals. Next 200,000 " 0.522 cents per 1000 gals. Next 777,000 " 0.452 cents per 1000 gals. Over 1,000,000 " 0.372 cents per 1000 gals. Section 29-15.4 Water Rates for multi-family dwelling units and trailer or mobile home parks, commercial and business buildings .The following policy is hereby established for rates and billing WATER RATE procedures for multi-family units, trailers or mobile homes, commercial and business buildings where water used is measured by only one meter ORDINANCE and the entire amount due is billed to and paid by the owner or others for all the facilities contained within the multi-family unit, trailer, or CONTINUED mobile home park, commercial and business buildings. (a) Meters - new construction Owners, lessees of buildings, and all persons or coroporations, constructing and operating multi-family housing units, trailers or mobile home parks, commercial and business buildings, after the effective date of this ordinance, shall have the option to install separate water meters for each unit or other separate facility therein or for each trailer or mobile home within a park, and pay the water charge applicable to single-dwelling units, od if they prefer, they may install .one water meter for the multi-family units, trailer or mobile home park, commercial and business buildings, and pay water rates as established by this section for multi-family units, etc. (b) Meters - Existing construction Owners, lessees, builders, person, persons or corporations, who now own or operate multi-family housing units, trailers or mobile home parks, commercial and business buildings and pay all the water charges therefor through one master meter shall elect within one (1) year from the effective. date of this ordinance, by notice in writing to the Town Manager, whether they will continue to use one master meter and pay the rate herein established for payment of water measured by such meter or install separate meters for each unit, facility, trailer or mobile home, commercial or business building and be billed and pay charges applicable to single dwelling units for each such unit. (c) Cost basis of separate meters installed In the event consumers ref erred to in sub-sections (a) and (b) above who now own or operate multi-family housing units, trailers, commercial or business buildings, etc., elect to install separate meters for each such unit or facility, the Town shall charge them the actual cost for said meter and labor, if any, which charge shall not exceed the charge for Town connections as set out in Section 29-9 of this Article. (d) Rates for master meter charges - within Town Consumers within the corporate limits who elect to use one meter, shall pay water charges for multi-family housing units, trailers and mobile homes in a park, commercial and business buildings, as follows: Miminum rates for the first 3,000 gallons or any part thereof used by a unit shall be $3.50 for the first unit, and $2.00 for each unit thereafter. I Total Rate to be paid shall be determined as follows: June 26, 19so OF,674 Step No. 1: The total number of gallons of water for the period measured by the master meter shall be determined. If the total number of gallons does not exceed the total number of units (together with other separately measured facilities within the building or park), multiplied by the 3,000 gallons (Minimum), apply only the minimum rate to each unit. Step No. 2: (a) If the total number of gallons calculated in Step No. 1 exceeds the total naumber of units (multiplied by 3,000 gallons), apply the minimum rate for the first 3,000 gallons, plus the additional rates on the number of gallons of water used in each bracket determined at the rate and in the manner provided in 2 (b). The total water charge due for the period, minimum plus the additional, amount from each bracket shall be set out and billed as one statement. (b) Additional rates of gallons used above 3,000 gallons to consumers inside of Town corporate limits Rates to be applied on the number of gallons above the minimum of 3,000 gallons per unit shall be as follows: Divide the total number of gallons used between 3,001 gallons and 23,000 gallons, by the number of units and multiply each 1,000 gallons or part thereof by .40 cents. Divide the total number of gallons used between 23,001 WATER RATE gallons and 223,000 gallons, by the number of units and multiply each 1,000 gallons or part thereof by .35 cents. ORDINANCE Divide the total number of gallons used between 223,001 gallons and 1,003,000 gallons, by the number of units and CONTINUED multiply each 1,000 gallons or part thereof by .30 cents. Over 1,003,000 gallons divided by number of units and multiplied by .25 cents per 1,000 gallons or part thereof. (c) Rates applicable outside corporate limits Consumers or water users outside the corporate limits shall pay water charges for multi-family housing units, trailers and mobile homes in a park, commercial and business where owners or others elect to use one meter, as follows: Apply Step No. 1 and No. 2 above to outside users with the exception that the minimum rate for 3,000 gallons for the first unit shall be $5.25, and $3.00 for each unit thereafter. (d) Apply the same formula established in Step No. 2 (b) above to determine the number of thousand gallons in each bracket. The rate to be charged in each of'the four brackets shall be as follows: Rates for gallons used above the 3,000 gallons for each unit: Divide the total number by the number of units, part thereof by .60 cen Divide the total number by the number of units, part thereof by .52-1/2 of gallons between 3,001 and 23,000 and multiply each 1,000 gallons or ts. of gallons between 23,001 and 223,000 and multiply each 1,000 gallons or cents. Divide the total number of gallons between 223,001 and 1,003,000 by the number of units, and multiply each 1,000 gallons or part thereof by .45-L/2 cents. Over 1,003,000 gallons divided by number of units and multiplied by .37-1/2 cents per 1,000 gallons or part thereof. 066 ~5 June 26, 1980 There shall be mailed to each water customer a statement of the amount due from such customer for water service during the billing period, including delinquent bills, penalties or fees, if any, Billing for water at the meter rate shall be by the month in accordance with the consumption of water for the preceding month. This ordinance shall become effective on July 1, 1980 for water used after July 1, 1980, for which consumer is billed in August, 1980, and thereafter shall be charged at the rate herein provided. Councilman Graham stated that each Councilman has worked on this proposed Method III and was familiar with it and he felt it was time for Council to adopt the ordinance to provide for a new sewer rate for financing the Peppers Ferry Regional Wastewater Treatment Facilities. Mr. Graham moved that action be taken on the proposed Method III for financing the Regional Facilities and adopt the ordinance. ORDINANCE Motion was seconded by Councilman Wallace. ADOPTED FOR There was discussion relative to postponing action on the NEW SEWER RATE ordinance until the public had more time to consider it. It was FOR FINANCING finally concluded that the point was well taken in most cases and that PEPPERS FRY. is the reason for public hearing; however, two public hearings had PLANT been held on this matter, but in this instance it is not legally required. The following vote was taken: Andrew L. Graham, Jr. - Aye Blair B. Brockmeyer - Aye Robert M. Wallace - Aye John A. Johnston - Aye William A. House - Aye C. E. Boyd, Jr. - Aye Arthur L. Meadows - Aye James M.Neblett, Jr.- Aye AN ORDINANCE to amend Sec. 29-44, Article III, Chapter 29 of .the Pulaski Town Code, and re-enact as Sec. 29-44.1 to provide a new Sewer Rate Charge; a portion thereof to be set aside for costs of sewerage project for sewer disposal by the Peppers Ferry Regional Wastewater Treatment Plant BE IT ORDAINED by the Council of the Town of Pulaski, Virginia, meeting in special session on this 26th day of June, 1980, that Section 29-44 be, and it is hereby amended and re-enacted as follows: Sec. 29-44.1 - Sewer service charge. (a) After the calculation of each water charge, whether the charge be based on a meter reading or on a flat rate basis, or on users within or without the corporate limits of the Town, there shall be calculated and charged a sum equal to two hundred per cent of such metered or flat rate water charge, which sum is hereby established and fixed as a sewer service charge, one-half thereof to be set aside and used by the Town for design, construction, and other costs of sewerage facilities in connection with the Peppers Ferry Regional Wastewater Treatment Plant and other costs and ex- penses for sewerage disposal facilities. 0 This ordinance shall become effective upon passage. June 26, 1980 oss~s At 8:30 P. M. Councilman House moved that Council adjourn. Motion was seconded by Councilman Neblett, and carried. APPROVED: IIr 1 L~~ 1 ~~ rz> ~ . Mayor. Ratc if e ATTEST: Clerk of ouncil