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HomeMy WebLinkAboutWater Board - Minutes - 11/09/1966NoWer 9, 1966 • MINUTES OF THE MEETING OF THE WATER BOARD Held November 9, 1966, at 3:30 o'clock P.M. in the Council Chambers. Present: President Ward Fischer, Vice _:President Frank Ghent, Secretary John Bartel and Board Members Mayor Harvey Johnson, Owen Moore, Dugan Wilkinson and Fred Feit. Also present were City Manager Tom Coffey, Assistant City Attorney Arthur March, Jr., City Engineer Roy Bingham and Superintendent of Water Eddie Hilgenberg. The meeting was opened by President Ward Fischer requesting an explanation from the City Attorney on the use of funds received from the Water Works of the City as covered by Ordinance No. 16, 1965. The following letter was presented: October 27, 1966 • The Water Board of the City of Fort Collins Fort Collins, Colorado Gentlemen: You have requested an opinion of this office regarding the status of revenues from the bond issue created by Ordinance No. 16 of 1965, and the status of certain funds which may be received from the Federal Government under a grant in connection with the expan- sion of the water works system of the City of Fort Collins. You have further requested an opinion regarding ear marking of revenues from the water works system. By Ordinance No. 16, 1965, the City of Fort Collins created a bats issu a in the aggregate amount of $3,200,000.00. This bond issue was created for the purpose.of financing additions and improve- ments to the United States of America for a Federal Grant in connection with the expansion of the City's water works system. This grant as applied for is in theamount of approximately $1.5 million. It is my understanding that you desire to know for what purpose the funds arising out of the: bond issue and the Federal grant may be expended. The terms of any Federal Grant will require that the money received from the same be expended directly for • the project upon iihich the application for the grant was based. Accordingly, it appears clear that these monies cannot be used for any other purpose. Ordinance No. 16, 1965, which created the bond issue above referred to provided in Section 12 that the bond Rroceeds could be used aly for the purpose of financing the 'project" and for no other purpose whatsoever. The project in this ordinance is defined as thh construction and otherwise 4vember 9, 1966 acquiring extensions, additions andimprovements to the municipal • water works system and everything necessary or incidental thereto including the acquisition of additional sources of water. Under the terms of this ordinance these monies cannot be used for any, purpose other than that defined above. It should be noted, of course, that this is considerably broader than the termsof any Federal Grant that anything vtich reasonably benefits the water system could probably be placed within the definition of the "project" under this ordinance. In view of the above, it would appear that if the total amount of all monies received from the Federal Grant and the bonds is not used in someconnection with th3 improvement and betterment of the water works system, any excess amount should be used for the purposed calling the bonds issued pursuant to Ordinance No. 16, 1965. It is my understanding that you also desire an opinion regarding the use which may be made of monies received in connection with the o peration of the water works system of the city. Such earn- ings can be divided into two categories. Under the provisions of Ordinance No. 18, 1965, charges for the use of water from the City's water works system are established. In addition, Sections 62 through 65 of this ordinance provide Vr the plant investment fee for persons obtaining initial service from the City water works system or from persons changing the type of service. Nothing in Ordinance No. 18, 1965, in any way, indicates any limitation of the purpose for which such funds so received can be expended. In Ordinance No.- 16., 1965, which is the bond • ordinance, however, Sections 17 and 18 do provide limitations on the purposes for which t1r funds received for :use of the system may be spent. This limitation does not apply to the plant invest- ment fees. These Sections provide that all such revenues shall be set aside in an account to be known as the Fort Collins Water Works System Revenue Fund. From such account payments are to be made first to the operation and maintenance -expenses, secondly, for the purpose of refunding the various bond issues now in existence, third, for the purpose of meeting any payments due on furtheror additional bond issues and finally_ any surplus May be used for any lawful purpose authorized by the City Council. Accordingly, even this limitation is applicable only to soemuch of these revenues as it needs to meet these specific items. In addition to the above, Sections:8-14 through 8-17 of the Code of Ordinances of the City of Fort Collins, Colorado, 1958, as amended, created a fund for the purpose of paying the principal of any bonds issued by the City of Fort Collins to extend and improve the water utility of the City. These Sections provide that all of the revenue from the water department except such as may be required to meet current operating costs as determined by the annual appropriation budget, including all depreciation and obsolescense funds, were to be paid into this fund. So much of the monies in this fund as were necessary to retire bonds issued by the City for the water department were to be paid out of this • fund and the balance at the end of each year was to be paid into the fund created by Sections 8-10 through 8-13 of the Code of Ordinances. These Sections provide for the creation of a fund // 1 • IF ember 9, 1966 for making extensions and improvements, enlargements and better- ments of the water utility and further provide that the monies in • such fund are to be expended for the purpose of making such exten- sions, improvements, enlargements and betterments to the utilities in the division of water as may be provided in the annual budget adopted by the City Council. It would appear that since Ordinance No. 16, 1965, is a more recent ordinance of the City Council this ordinance would control insofar as there is any conflict with Sections 8-10 through 8-17 of the Code of Ordinances. However, after the necessary funds have been paid out to meet those speci- fied in Ordinance No. 16, 1965, it would appear that any balance remaining would be controlled by the provisions Sections 8-10 through 8-17 of the Code of Ordinances. Therefore, so long as these ordinances are in effect revenues from the water works system are ear marked for the improvement of the water works system only. In spite of this, the City Council could repeal these ordinances or change them at any time by adoption of another ordinance. The only means by which such funds could be permanently ear marked without being subject to change by any particular City Council would be through an amendment to the City Charter. In the event the above does not answer all of the questions to which you desire an answer, we would be pleased to„submit any additional opinion you may request. Respectfully submitted, • /s/ Arthur E. March, Jr. Assistant City Attorney After discussion, all present were agreeable that the ordinance as drawn would protect the revenues and none could be used for any other purpose without Council approval by ordinance. The matter of the Water Board's functions be made a part of the Charter of the City was again brought before the mem- bers by the President. After considerable discussion, motion was made by lace President Frank Ghent, seconded by member Fred Feit, that the City Attorney be instructed tok..draw a proper type of amendment to become a section,of the Charter. This amendment to be studied by the Water Board prior to referral to the City Council for final passage and placing on the ballot to be voted on at the next election by the registered citizens of Fort Collins. The President put the motion which was unanimously adopted. • ember 9, 1966 The City Manager stated that the City's water and sewer improvement program was at a stand still due to a delay in the granting of the funds from the Federal Government aadCthat he had located water filters that would filter upward to 21� Million gallons that could be purchased at not more than $10,000.00. The installation of these filters before next years heavy demand would eliminate purchasing water from the out lying districts. Motion was made by Member Owen Moore, seconded by Member Dugan Wilkinson, that it recommend to the City Council to purchase and install these filters in the new filter plant location on a temporary basis until such time permanent filtration san be built into the new filter plant. The President put the motion which was unanimously adopted. There were a number of comments and some discussion on the construction of the proposed "Narrows Reservoir". It was the consensus of the Water Board that the City of Fort Collins should join with the other cities in protesting the construction of this reservoir. This matter was refereed to the City Attorney to pre- pare a report of the City's view and legal aspects in regard to advantages or disadvantages in storing water i n this part of the state. At the Council meeting of November 3, 1966, a letter had been received from the Northern Colorado Conservancy District regarding the annual meeting to be held in Loveland on Friday, December 9, 1966. Motion was made by member Owen Moore and seconded by Fred Feit that the Mayor, City Manager and the President of the Water Board represent the City at this meeting. The President put the motion which was unanimously adopted. Nowber 9, 1966 • President Ward Fischer stated John Elliott would like to meet with the City of Fort Collins to discuss the sale of Western Slope Water he has for sale. It seems the sale of this water is not feasible for any of the other interested Citys to purchase, due the proving of the use of the Northern Colorado Water Conser- vancy District's tunnels. The Board recommended this meeting and would repont to the Council the results. With nothing more to be brought up at this time, the Board adjourned. Secretary i