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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 City .