1995 JT ADJ MIN APR 10 - Laserfiche WebLink

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Fulp's query of how much money, cash assets, is in the Enterprise development fund, Finance Director Vega answered "Zero." Mayor Fulp said the information conformed with previous reports. He said Regional Board wanted implementation thus a moratorium had been imposed because the City presently lacked the money to implement any plans. He stated that the City Council as a body must address a Cease and Desist Moratorium. Councilmember Hutton identified $10,603,000 as the worth of the facility and asked Fiance Director Vega about the $10 million first identified by her. She responded that the amount represented retained earnings. She explained the zero balance was a result of revenues not meeting expenditures. She said the audit of 6/30/94 identified sewer utilities assets as accounts receivables at $467,863; capacity rights at $7,300,000 and property, plant and equipment at $12,710,404. City Manager Martinez said that when the City took over from OMI there were $500,000 realized in savings which were a one-time revenue and presently, there is a gap. Councilmember Sandoval asked about options available such as the opportunity to make a final presentation or the opportunity to make an appeal. He recalled approving the first tier of rate increase which was $12.50. Councilmember Beltran indicated that a $12.50 increase was enacted 5/18/93 by Resolution R-34-93. Manager Lavin remarked that the $12.50 was in place to qualify the RIX plan for a state revolving fund. Discussion ensued regarding the proposed rate increases; LEMNA versus conventional system; costs for LEMNA and capacity. Concerns were expressed regarding a LEMNA contract. City Attorney Biggs advised that the City has a contract that will charge $35,000 for design costs plus incidentals and close out costs. She indicated that the City has not moved forward on LEMNA. Mayor Fulp said that the instant contract falls under the Green Book where there is a contract followed by a letter to proceed. Manager Lavin informed the contract signed but the letter to proceed had not been issued. Councilmember Sandoval recounted that history is on the side of Colton and Grand Terrace as Councilmembers have gone to extreme lengths to maintain water, electric and sewer rates to an absolute minimum. The City's rates continued to be the lowest and now it is a matter of passing too little, too late. He wondered what type of costs were related to the plant and to capital improvements to keep the system functioning. Motion by Councilmember Sandoval to increase sewer rates from $12.50 to $18.50 and the public hearing be fixed for the May 2, 1995 meeting; to appeal recommendation by the Regional Board and to ask staff with Utilities Commission to explore viable alternatives, within 45 days, to include a study of SARI and the full potential of an interceptor waste system. Mayor Fulp asked that language be added to require that a 4