HomeMy WebLinkAbout10-07-1932 Minutes385
CITY CO1MIt CRALM'21_�S
Adjourned Session _ October 7th, 1932.
(MUNICIPAL POWER PLANT SESSION)
ROLL CALL: Pursuant to agreement, the city council met in an adjourned
session with lda.yor b1cGee presiding and all members of the council present, for,
the purpose of hearing proposal to be submitted by the Utilityes Co. Inc. covering
a. municpal light plant and to complete such other business as might be brought before
the council.
READING OF 1,ZINUfES DISPENSED I`gITH, ETC. 11otion made by IVirth, seconded
by Burns, that the regular order of business be dispensed with; motion carried.
MUNMCIPAL POWER PLANT: Idessrs. Leon B. Jones and A. C. Fries being in
attendance were invited to submit their proposition to the city a-nd 1r. Jones made
a verbal presentation of their proposition, in addition to a written one. In his
statement, Mr. Jones made the following statements in regard to a diesel electric
power plant: They had made a survey of the power situation in the city of RXEMaux
Pasco and their proposition contemplated a diesel electric system with -acquisition
of the distributing system now owned by the P. P. & L. Co. thru proper condemnation
proceedings, by exercise of the rights of eminent domain. He claimed that while the
light.and power bill of the entire city for 1931 was approximately x$''93,000., the
city could manufacture the same amount of power for about %3,000. Even with some-
what reduced revenues, a. municipal plant.would show profits of at least $40,000. per
year, which would be sufficient to retire a bond issue covering the plant in a
period of 14 years. Revenue bonds would be issued to cover the cost of the entire
plant; these bonds being payable only from the revenue of the plant and not to be
in any way general obligation xxt or any part payable from taxes. Hestated that
about 700 other cities now hard diesel-electric operated light plants and of this number
76 cities did not levy any taxes but paid the running expenses of the city from earnings
of their plants. The figures they submitted were based on there not being any increase
in the population of Pasco, blit these figures show that at the end of 14 years, the
bonds would all be paid off and the city would have a. cashb reserve of about ;,P,85,000.
on hand, in addition to which, two per cent of the earnings of the plant would have been
paid each year into the city's general fund, to offset a. loss on the tax rolls from
the P. P. & L. Co. properties being withdrawn. He stressed the fact.that the P. P. & L.
Co. showed an investment of $596. per customer, which was very good as compared to the
national average of $?626. and several power companies which had investments of over
$1000. per customer; under their proposition, P:Ir. Jones said a plant could be operated
at a cost of $300. per customer. He called attention to the fact that while it cost
the P.P.& L. Co. less than one cent per MVM to produce electricity, still they were
charging citizens of Pasco 81 cents per KVIH.
THEIR IRITTEN PROPOSAL. ',VAS SUBI:IITTED, which showed that they would build the
plant and finance it at a cost of $296,000., with $300,000. as the outside cost of the
plant, plant to be modern in every way, bonds tox be retired in 14,years, being
serial bonds and when l,.,st bonds were retired, the city would have a cash reserve of
;'95,000. on Viand.
In enlarging on their proposition, Mr. Jones stated that they had aa.n unusual
combination in their company, technical, legal and.'financial and the city would have
aid from a.11 three departments; while their company had been incorporated only this year,
their technical men had a great deal of experience in building diesel electric units
previously; they have outstanding legal men associated with their company and are wellt
prepared to finance any proposition.
BOND: He stated that their company would be willing to guarantee their
proposition with any kind or nature of bondhich the city council would ask for;
that they stand ready to furnish any kind o guarantees also which the council might
desire as to ±k�gxfinancial, technical an(legal work they might be asked to do.
In submitting the proposition to the council, they were trying to sell the
council the idea of installing a municipal plant a.nd all that they asked, was that they
be given an opportunity to submit a further proposition to the council in competition
with any other builders of diesel electric plants.
He quoted figures showing that the P. P. & L. Co. paid total taxes in the
county of „12, 765., on an assessed valuation of about 1?240,000., of which, aboi.it y')1.37,000.
was in the city of Pasco, the substation being ass valued at $106,400., leaving
h Llance of their xic±,Yxxg±k:ixx:..3,.xxx!7±X plant within the city valued at about $30,000.
B. B. HORRIGAN being present was asked by the mayor if he desired to say
anything and he called attention to the effect �,jhich a municipal plant might have on
irrigation districts in the vicinity df Pasco; hiTr. Jones suggested that under the
Power District Bill, the settlers on irrigated tracts could form a district and have
their own power plant, which his company would furnish on the same basis as they would
one for the city.
I!ir. R. H. Skill being present, also addressed the council, presenting
arguments against a plant.
REFE-HRED TO SPECIAL COTHMITTEE' : Motion was made by O'Herin, seconded by
Skinnell, that the matter of changing from a private system to a public utitlity system
o,)erated by the city, be turned over to a special committee for investication and that
the city attorney use his best efforts to prepare an ordinance with the purpose in view
of submitting the proposition to the people of Pasco at the general city election, and
that he have the ordinance prepared for an adjourned meeting of the city council to be
Ilel.d Friday, October 14th; roll.. call showed u.nanimou;, vote for the motion.
POST OFFICE TO ATTACH IG 11L BOY TO LIGHT POST TE1,1PORARMY: Postmaster '";f. R.
Cox asked permiftion from the council to attach a mail box to light pole in front of the
post office temporarily until a post could be secured for the purpose and for permission
to cut thru the sidewalk to erect such post. after informatl discussion by the council
the necessary permission was granted.
ANNULLING GAS FRANCHISE: Ordinance Igo. MX 399.being an ordinanco
repealing ordinances granting franchises, etc. to R. E. Combs and others, for construction
of ga.s distribution system in Pasco was read; motion made by Anderson, seconded by
Burns, that Ordinance No. 399 be declared to have had its first reading, carried on
roll call without dissent. Motion made by Ha.ylett, seconded by Anderson, that Ordinance
Ido. 399 be given its second reading by title only; carried; read by title.
Motion made by Ha.ylett, seconded by Anderson, that Ordinance No. 399 be
declared to have had its second reading; carried on roll call unanimously.
386
Adjourned Session _ October 7th, 1932.
CHANGE IN FIRE HYDRANT RENTAL: Ordinance No. 400, changing ra.to of fire hydrant yenta.]_
from 3.00 to 4'1.00 per month was read; motion made by O'Herin, seconded by Ha.ylett that
Ordinance No. 400 be declared to have had its first reading; motion carried without dissent
on roll call. Motion made by Anderson, seconded by O'Herin, that Ordinance No. 400
be given its second reading by title only; carried and ordinance was read by title.
Motion made by O'Herin, seconded by Haylett, that Ordinance No. 400 be declared to have had
second rea.ding;. motion carried.
ORDINANCE PROVIDING FOR BOND ISSUE FOR UNEId4PIOYI11ENT RELIEF: Ordinance No. 401 was
read, this ordinance providing for a bond issue of i$10,000. for unemployment relief, money
to be spent in improving streets and alleys, etc. Motion made by O'Herin, seconded by
Anderson, that Ordinance No. 401 be declared to have had its first reading; motion carried
unanimously on roll call.
Motion made by O'Herin, seconded by Ha.ylett, that Ordinance Ido. 401 be read by title
only; motion carried.; ordinance rea.d by title. Motion made by Anderson, seconded by
Burns, that Ordinance No. 401, be declared to have had its second reading; motion
carried without dissent on roll call.
LICETISE APPLICATIONS 'yiERE READ from Joe Sheley for hotel; P. P. Fitzpatrick
for soft drinks and 1drs. P. P. Fitzpatrick for second hand store; motioq made by Burns
and seconded by Anderson, that license be granted; motion carried.
ADJOURN11E4VT:• Motion made by Haylett, seconded by Anderson, that the meeting
adjourn until 8 P11, Friday, October 14th; carried.
ATTEST: Kayor
C r
it
d approved the/Z-1
da 1932
Passed an pp y of
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