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HomeMy WebLinkAbout1978 03 28 City Council Workshop Minutes . . . .- . . 77-78-23 Workshop Session - Water Company Purchase Mayor Piland - Present Deputy Mayor Daniel - Present Councilman Craven - Present Councilman Logan - Present Councilman Pellerin - Present Councilman Sabatini - Present Attorney Massey - Present Dr. Dietz of Clark, Dietz and Associates, City Engineer, spoke to the council on the purchase of the North Orlando Water and Sewer Company. This is a Real Estate owned utility Company as opposed to a privately owned company. Some federal grants may be available to help us, especially in regard to the Safe Drinking Act. Purchase should be made through negotiations rather than by book value. Engineering to bring us up to a negotiation point will cost between $4,000 to $5,000. Some extra fees may be needed farther on in the purchasing process to cover population and growth estimates. Final engineering fees would be influenced by the type of financing. The price paid for the utility should reflect the status five years from now of the 201 project, and any repairs that would be needed to meet E.P.A. standards. Bonds interest would be between 5% and 6 1/2%. Councilman Sabatini said he felt that the longer we wait the more that it will cost. There will be no better time to buy then now. Dr. Dietz said that the utility Company people seemed ready to sell. They currently have 1648 hook-ups and the City receives about $12,000 in franchise and $12,000 in utility tax from North Orlando Water and Sewer Company. Mayor Piland pointed out that for the same service some citizens are paying 21.45 a month from North Orlando Water and Sewer, and some are paying 9.55 from Seminole Utility. This item will be scheduled for the next council meeting, Tuesday, April 4, 1~118.' Under the Mayor's Office, there was discussion on the sewer tax and the 1% extra utility tax that Seminole Utility customers have been paying since the first of the year. Florida Statute Chapter 166 was refered to in reference to the illegal taxation. Attorney Massey said that he was not aware last year that the taxation was illegal. Arrangements will have to be made in order to refund the money to the citizens. . . . ~ . . . '. . 77-78-23 Page 2 Councilman Logan said that the Tuscawilla Unit VII was brought before the P & Z Board at their last meeting. It is ready to come before the Council April 4, 1978. The Woods was also discussed and will be scheduled for the next workshop. R;:f:lY~~ Jean A. Halstead Ast. City Clerk