HomeMy WebLinkAboutMinutes 11/08/197143-1
MINUTES OF MEETI -NG
OF CITY COUNCIL
PETALUMA, CALIFORNIA
November,8, 1971
Council.Meeting Adjourned meeting of the Council of the
City of Petaluma was called,to order by
Mayor Putnam at the hour of 5:00-o'clock
p.m.
Attendance Present: Councilmen Brunner, Cavanagh, Jr.,
Clecak,.Daly, Mattei, Perry, -Jr.,
and Mayor,Putnam.
Absent: None.
� Sewer, Project Mr. Ernest * Bodnar ;of Stone and Youngberg, /
Financing Financial Consultants•, appeared before the
Council in response to a request at a Study
Session on October 25, 1971, to provide
additional information relative to finan-
cing City's sewerage project. This
information was compiled and submitted'in
a letter, dated•November.8, 1971, to the
Council. Copy of said. letter submtted,
and filed.' Mr..Bodnar reviewed the -let-
ter in detail which outlined basic data
revisions,.effects of Presidential freeze
order, cash flow requirements, project
timetable consideration,.and feasibility
of.revenue bonds. He also read his letter
of inquiry to the Internal Revenue Service,
and letter of reply from the Internal Re-
venue•Service, dated November 3, 1971,
advising that•'the City may not increase
sewer- service charge rates as long-as
--
Phase I of the Stabilization Program re-
mains in effect - .(until November 12, 1971),
and further stating that until specific
guidelines are announced by the Price
Commission, the price freeze put into
effect on August 15, 1971, will remain
in effect. Letter from the Internal.
Revenue Service submitted and filed.
In conclusion, Mr. Bodnar pointed out that
if. the Council decided,to hold. a General
Obligation Bond_e,lection_in February of.
1972 and same proved unsuccessful, Revenue
Bonds could not be issued in sufficient
time to meet the project timetable. He
added that in the.judgment of the Financial
Consultants, Revenue Bond financing would
not be feasible as long as the City sewer
service charges are frozen at present levels.
Memo, - dated November 8, 1971, from City
Manager Robert Meyer,:proposing the possi-
bility of financing the sewer project by
either the sale -of a maximum of $500,000
in Revenue Bonds or by short -term borrowing
from other City funds and a repayment from
sewer connection fees to these other City
November 8, 1971
Sewer Project funds during,19'72; either case would.re
Financing quire the adding of 14� to the present
(continued) 30�, for bonded indebtedness to pay "off,
the 1.966 General Obligation Bonds, -read
and.filed.. List.of Funds and Amount .
Avail -able October 30,"1971, submitted
by Finance ' Director Gealta and filed.
Mr Meyer requested Council.consideration
to approve Mr. Gealta's suggestion for
handling t °he cash flow; explaining that
it. appears the City may.:have the.$.1,5'97,000
required by the State Water Quality Control
Board on hand by March l,, 1972 without bor-
rowing.
Following considerable discussion,on Mr.,
Meyer's propo.sal'of short -term borrowing
from other City funds, the Council decided
to study the matter for possible,acton at
the 'November 15, 19`71 , meeting. Mayor Put-
nam-requested that the item appear at the
beginning o,f ,the agenda.
Mayors' and- City, Manager Robert Meyer requested those
Councilmen's Council members planning to attend the.
Assn. of Sonoma subject meeting to notify him so that
County - .Meeting. necessary arrangements can be.confirmed.'
Adjournment There.being no.further. business to come
before••the.Council, the meeting ;was ad-
jourfted at 6:10 o'clock p.m.'
Mayor
Attest.:
City Clerk
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