CITY OF EUREKA SPRINGS 499

SPECIALCOUNCIL MEETING MINUTES

March 22, 1999

The March 22nd, 1999 meeting was called to order at 7 p.m. Mayor Beau Satori

presided over the meeting, which was held in the jury room of the Western District

Courthouse. The subject of the meeting was wastewater rates.

PRESENT: Mayor Satori, and Alderpersons Jeffrey, Stoppel, Schrader, Sumpter, and Freeland. Alderwoman Taylor was absent.

ALSO PRESENT: L.J. Smole, Ed Leswig, Diane Murphy, Tom Laub, and Clerk Lee.

PLEDGE OF ALLEGIANCE: Ms. Dickens led in the Pledge of Allegiance.

Alderman Sumpter made the motion to place Ordinance #1808 on its first reading in its

entirety. Alderman Freeland seconded

The City Clerk was asked to try to get the public hearing notice in for April 6, 1999. It was past the deadline, but some were of the impression that it still could go in the March 25th issue. It has to be in a special legal format but it can be put in a box and put in a display ad. It is intended to speak to just wastewater rates.

Mr. Laub said that the Council can go ahead and read the ordinance as long as it is not passed before the public hearing is held. He had prepared all of the paperwork, including the Notice of Public Hearing. It was filled out to be held on April 6, 1999 at 7

p.m.

They then began the discussion for wastewater rates. The rates now are $5.00 per two thousand gallons. Alderman Jeffrey said that the last time this was discussed, they were trying to implement a $1.50 increase. The way it was decided to do that was to add 75 cents to the first price for the two thousand gallons. Then they spread the $1 .70 on the next two categories. On that basis, the $5.00 was changed to $6.50; the $2.15 was changed to $3.85 and the $3.00 to $4.70. The City is now wanting to increase it $1.60, instead of $1.50. All that is needed isto add 10 cents to each price. Since the City has reduced the amount of work that will be donb, they will not need a two step increase. Mayor Satori said weren’t those numbers determined by the percentage of the population that uses two thousand gallons. Diane Murphy said they were also determined by the amount of water that would be sewered over a year’s time. Then the dollar amount needed to repay the bond issue and how much money would be needed to generate that in a year’s time were factored in. She said she thought Mr. Jeffrey was right on the money. The last time they decided on $3.35 on each 1000, or $6.70, and then $3.85 and then to $4.70. Mr. Jeffrey suggested adding a dime to each price, and that would put it where it needed to be.

Diane Murphy said she thought the bond would be for twenty years.

Ms. Dickens said it is important to keep these raises current. If they are kept current the raises won’t need to be so large.

Ms. Murphy said it is essential that the customer doesn’t get a mind set that we are doing a rate increase so that we don’t have to have another one. Statewide, our City falls into the bottom 25% of rates.

Ms. Dickens said the State is concerned about the City not looking ahead for growth.

Alderman Sumpter said he has not had any really negative calls against the increase. Alderman Schrader raised the question of the sewering of the unsewered areas, and the development of a new location and system.

Alderman Jeffrey said it would be a whole separate set of economics to add people to the system. What is being discussed now is going to be paid for by the people who are using the system now.

Alderman Freeland read the State Law governing the municipal sewage systems. It said that each year the rates that are charged are to be sufficient for the payment of the proper and reasonable expense of operation, repair, replacement, and maintenance of the works, and for the payment of such funds to be paid into a sinking fund.

Ms. Dickens said she had been trying to tell the Council that rates cannot be increased every eight or ten years. They must keep up with the needs of the City.

Ms. Murphy said our infrastructure is depreciating hundreds of thousands of dollars every year. It shows up in the annual reports, but not in the cash flow. The City has not raised the rates for eleven years.

Mr. Schrader said the engineering costs may be higher, and the City may come up short because costs go up each year.

Alderman Stoppel said he thought it was time to vote.

Mayor Satori said he thought the City should modify the amount a little above what has been discussed to that the rates won’t have to go up again right away. Alderman Jeffrey said that he thinks the rates are all right. Hopefully, the contingencies that have been built into the engineering plan will allow that the City won’t have to come up with an increase at all for a while.

The council filled in the blanks $6.70, $3.95, and $4.80.

Ms Dickenson mention a date needs to be in the ordinance when rates would start. Ms. Murphy said the date is from the first of the month but covers a period from ~~~~~(missing portion)

500 CITY OF EUREKA SPRINGS

SPECIAL COUNCIL MEETING MINUTES

March 22,1999

Ms. Murphy said that every effort is made to contact people when they are delinquent. Only people who do not respond at all are shut off. There are several organizations who will help people with this problem, one of which is Flint St. Fellowship. The problem is that if they don’t know that someone needs help, they cannot help. The case in question was, in fact, not delinquent a few days. They were delinquent three months, and had not at any time contacted the water office to discuss the problem. The other side of the question was that when certain people called to question the policy, they did not ask the same questions as they asked the Fayetteville office, so that all of the facts were never revealed.

Ms. Murphy explained how the shut-off list is created. On the 20th of the month, a list is generated of all past due balances. That list is then measured by two criteria. The first criteria is if the balance that is owed is greater than the deposit that they have on hand, then they are subject to shut-off. If it is less, than the deposit is applied. The second criteria is if there is a curent balance and a past due balance. Whether it is more than the deposit or not, it is subject to shut-off. The people to whom Alderman Schrader was referring had only that month reached the deposit amount. Their account was 90 days old, not 10 days late. Once the City identifies all of the people who are subject to shutoff, every effort is made to contact them. It is not always possible to contact everyone, but every effort is made and a log is kept on the contacts and what is said.

A list of sixty people is almost always reduced to 10 or less.

Alderman Schrader said it would have been useful to post this information on the internet. Ms. Murphy said it is not always wise to post unsolicited information. She was not asked, so she did not respond.

Mayor Satori said he had checked into the policy and he did not post it either. Alderman Sumpter made the motion to amend the motion to approve Ordinance No.

1808 to include the alteration of 15 days to 20 days and the word due date to billing date. Alderman Schrader seconded. Alderman Stoppel said this is not the time to change this kind of thing. These kinds of changes should be discussed before it is time to vote on the ordinance. The vote was 2/3/0, motion failed. Alderman Sumpter and Alderman Schrader voted yes, the rest voted no.

The vote on the motion to approve Ordinance No. 1808 was 5/0/0, approved.

Alderman Stoppel made the motion to read Resolution No. 456, and Alderman Jeffrey seconded. All were in favor, 5/0/0.

Mayor Satori read the Resolution in its entirety. His observation was that Ms. Dickens title is City Administrative Assistant.

Alderman Jeffrey made the motion to approve, and Alderman Sumpter seconded. All were in favor, 5/0/0.

Alderman Stoppel made the motion to adjourn. The motion died for lack of a second.

Alderman Schrader made the motion to read Resolution No. 457. Alderman Stoppel seconded.

Tom Laub, City Attorney, said he wanted to add Exhibit A, to describe the four projects that the City will be doing.

The vote to place Ordinance #1 808 on its first reading was 5/0/0. Ms. Dickens read the ordinance in its entirety.

Mayor Satori said it neided to be amended to read per 1,000 gallons after the figures

$3.95 and $4.80.

There was a long discussion about how many days were allowed before the 10% is

added to the bill. It is 25 days until it is shut off.

Alderman Schrader mentioned that the City needed to humanize shut-offs. He went into detail as to how the City shuts the water off for people who do not have the money to pay the bill. He said that the City has been in the position of culling off people with not enough money to pay for drinking water. He cited the family with a disabled member, whose water was shut oft recently, and how it showed up on the internet and the person from another state sent money to pay the bill.

He said that Fayetteville, has a better way. They send letters, make phone calls and if all else fails, a person goes out to see what the problem is, and advise the family where they can get help. The fact is that their policy is a lot more humanitarian.

CITY OF EUREKA SPRINGS

SPECIAL COUNCIL MEETING MINUTES

March 22,1999

Alderman Freeland spoke against passing Resolution No. 457 at that time. He said he would rather wait for the Public Hearing before voting on it.

Alderman Schrader said the City has made no commitment to do the four things that will make up Exhibit A.

There was quite a long discussion as to whether the resolution should be read and passed at that meeting. The vote to read was 0/5/0.

The Council will bring this up at a later date.

Alderman Stoppel made the motion to adjourn. Alderman Sumpter seconded. All were in favor, 5/0/0. The meeting was adjourned at 8:40 p.m.

APPROVE: ___

ATTEST: