PRE-COUNCIL MEETING

MAY 29, 1997
(Subject to Approval)

The Common Council of the City of West Lafayette, Indiana met in the Council Chambers at City Hall on May 29, 1997 at the hour of 4:30 p.m.

Mayor Margerum called the meeting to order. Clerk-Treasurer Rhodes called the roll:

PRESENT: Bossung, Braile, Parker, Shamo, Sparby, Vernon

ABSENT: Palmer

Also present were City Attorney Bauman, City Engineer Snyder, WWTU Director Darter, Fire Chief Ford, Deputy Police Chief Marvin, Police Captain Leroux, Street Commissioner Downy, Development Director Andrew, and Parks Superintendent Payne.

The agenda for the June 2, 1997 Common Council meeting was reviewed.

Mayor Margerum said the Council had requested additional information on the wastewater rates. Councilor Sparby has put in Ordinance No. 16-97 to eliminate the proposed increased wastewater rates. Therefore, the meeting will be a little out of order. The utility consultant, Gary Malone, from Umbaugh and Associates, has come to present information to the Council. Mayor Margerum said last year the consultants were asked to do a rate study for the City based on the two proposed upgrades for the plant. That is, the expansion of the wastewater plant, and the second phase, the lift station and the intercessor. Therefore, they reviewed the financial condition of the utility and then made recommendations for a rate increase. At that time, the Council asked that we do this in two steps. Last year there was an increase of 12.5% and then the proposed increase for this year is 11.1%. This ordinance (Ordinance No. 16-97) is to eliminate, as she understands, the second portion of that which was agreed to last year. Therefore, the consultant was asked to provide us with information as to what that would mean.

Mayor Margerum introduced Gary Malone from Umbaugh and Associates.

Mayor Margerum said there was also additional information requested from Mr. Darter, the Superintendent of WWTU, concerning wet weather facilities and proposed actual spending for capital budgeting.

Mr. Malone said since they last met, he had been asked to provide additional calculations as to some other options the City might have with respect to the wastewater rates. He said they have completed these calculations and are here to report back the results. As a starting point, he said he thought it would be good to take a moment for a brief review as to the current proposal on the rates that the Council has already enacted.

Mr. Malone said the current ordinance provides for an 11.1% rate increase effective July 1997. With that rate increase, it would bring revenues to $4.6 M through the year 2000. It looks as though to provide sufficient revenues to pay for the wet weather facility, that the City would be looking at an additional 14% increase in rates to be effective in January of the year 2001. They are having to look quite a ways into the future. They are having to make some assumptions as they make the calculations. It looks today if they stuck with the 11.1% rate increase to be effective in July of 1997, there would still be another 14% rate increase to be effective for the year 2001. Those rates would be sufficient to pay for the principal and interest payments on the outstanding bond issue, as well as the two new bond issues both for the upcoming project and for the wet weather facility. It would also provide revenues for replacement allowances for equipment, which is a requirement of the SRF, and to fund capital improvements that the utility superintendent has set forth. This would also allow the City to do a couple of other things such as beginning to use the surplus balance. With this approach, the $2.3 M could be used to go ahead and prefund the debt service reserve, both the current bond and the new ones to be adopted. There is a requirement that one year's principal and interest payments be set aside as a reserve. Although this can be funded over a five year period, there will also be an opportunity to fund it out of funds on hand if the City chooses to do so. This would leave about $283,000.00 to help complete the funding of the upcoming project in 1998. All remaining surplus funds, whatever those funds may be, could then be applied to the wet weather facility in the year 2000. Therefore, whatever surplus has been accumulated, all those moneys could then be used to reduce the amount that has to be borrowed in the future. So by the end of the year 2000, according to this schedule, all those surplus funds would then be utilized.

Mr. Malone said he has added one additional calculation to this schedule, and it is debt service coverage. This measures the amount of operating revenues that remain after paying operating expenses. So it is these revenues plus these expenses that are available to service debt, or in other words, to make payments to SRF. SRF requires that the debt service coverage ratio be at least equal to 125%. The debt service coverage is measured over that five year period, and we can see that there is in fact sufficient coverage for the debt over that five years with the rate ordinance already enacted. What this means to rate payers is that the volumetric rate is scheduled to increase from $2.42 to $2.69/1,000 gallons effective July of 1997 and would likely increase to over $3.00 just prior to year 2,001. The minimum charge would increase from $7.26/month to $8.07/month under the current ordinance. It would likely increase again to $9.20 to complete the funding of all upcoming projects. The average bill for 5,000 gallons/month at present is $12.10/month. This would increase to $13.45/month. The increase scheduled in December of the year 2000 would increase that bill to about $15.33/month.

Next discussed was Option B, which projects what might happen if the increase in rates is repealed as scheduled for July 1997. If this were to happen, the operating revenues would be expected to amount to about $4.15 M/year through the year 2000. With this level of rates, there would be sufficient funds to pay the operating costs, to pay the principal and interest on the bonds, to pay or fund the replacement allowance that is required by SRF, to fund capital improvements that are projected by Director Darter, and to begin funding the debt service reserves on a pay as you go basis over five year period. There would not be sufficient funds to prefund the debt service reserve. Therefore, the City would want to spread that funding over a five year period with this option. With respect to the funds available for capital projects, there would still be sufficient funds to help supplement the costs of the North River Road lift station of $283,00. There would be no funds remaining that could be applied to the wet weather facilities. That means instead of borrowing $2.7 M for the wet weather facility, the City would really be looking at borrowing almost $3.9 M for the wet weather facilities. In this case, by the end of the year 2000, the excess surplus funds would be virtually depleted.

Mr. Malone said beginning in the year 2001, to provide for the funding of the wet weather facility, the City would then be faced with a 33% rate increase effective late in the year 2000 to be applied to bills in the year 2001. One of the concerns he has with this option is with respect to the debt service coverage. Debt service coverage by the year 2000 dips below 125%. Because of that, it is possible that SRF might require these rates become effective in 1999 to be charged to bills in the year 2000 instead of pushing back one extra year as shown in the schedule. Another concern he has is that the amount of deficits by the year 2000 exceed the amount of money available to pay debt service. Therefore, if the City were to repeal the ordinance and do nothing further, the City is not in a position to demonstrate to SRF that there are sufficient rates to make the payments on this $8 M loan. If this ordinance is to be repealed, Mr. Malone said the wise thing to do would be to couple it with an increase of 33% scheduled for the beginning of the year 2001 because the City needs to be in a position to demonstrate to SRF that there are sufficient funds available to make the principal and interest on the bond issue. If the upcoming rate increase is deferred and rates increase by 33% at the end of the year 2000, the volumetric rate would increase from $2.42/1,000 gallons to $3.22/1,000 gallons of flow. The minimum charge would raise from $7.26/month to a minimum of $9.66/month. A bill for 5,000 gallons would increase from $12.10/month to about $16.10/month or, in other words, about $4.00/month. These two options are really the two extremes: one is to continue on the present course and the second extreme is to do nothing at this point and time.

Mr. Malone said a third option might be to go ahead and continue the phase-in process that has already begun. There are many ways that this could be accomplished. One of these ways might be to increase rates by 5% in July of 1997, 5% in July of 1999 and leave about 18.5% additional increase needed by the year 2001. This would have a little more of a smoothing effect with the rates and would still provide sufficient moneys for the operating, repayment of principal and interests on bonds, provide for the funding of replacement allowance, and for other capital improvements. It would require that the debt service reserve be funded on a pay as you go basis. Instead of funding this up front, the City would be in a position to consider funding this over a five year period as presently authorized by the ordinance. This approach would still enable $283,000.00 for the North River Road lift station and still provide an excess of $1 M for the wet weather facility. At the same time, by the end of the year 2000, the City would have, in essence, exhausted that surplus at that point and time. The other advantage of an in-between method would be that the debt service coverage ratios remain above 125% during each of those time periods. This creates a schedule of rates that are likely to be accepted by SRF. What this would mean to individual rate payers is that the volumetric rate would increase from $2.42 today to $2.54 in July of 1997, to $2.67 in July of 1999, and increasing to $3.16 approximately in the year 2000. The minimum bill would increase from $7.26/month to $7.62 effective in July of 1997, a little over $8.00 in July of 1999, and almost $9.50 cents by the year 2000. A monthly bill for 5,000 gallons would grow from $12.10 to $12.70 effective July of 1997. It would increase to $13.35 in July of 1999 and approximately $15.80 by the year 2000.

Mr. Malone said while communities struggle with not having enough money, this City's struggle is really having too much money which is really a good position to be in. It is far better than the other alternatives. He said what is outlined in each of these three alternatives is how to utilize the surplus balances. He said there are only three ways to use those moneys.

One way might be to go ahead and prefund the reserves that are required by the bond ordinance. If bonds were to be issued on the open market it would not be uncommon to fund it with bond proceeds. He said this is not allowed with the SRF, but with other types of bond issues it is. Therefore, the market place is accustomed to seeing reserves funded up front.

The second alternative is using funds on hand to fund capital improvements. If we pay cash for improvements, we are better off than having to borrow for it. So the more that we use funds on hand to pay for improvements means the less money we have to borrow in the future.

Mr. Malone said the third thing we can do is to pass the surplus revenue funds back to ratepayers by having rates that really aren't sufficient to cover the costs. These are really the only three things we can do with the surplus balance.

He said in Option A, the surplus balance has been divided between prefunding reserves and funding capital improvements. This requires the continuation of the scheduled increase in rates of the 11.1% in July of 1997 with no further increases until December of the year 2000. The cumulative effect of all those increases is about a 27% increase in user fees compared to where the rates are today.

In Option B if we were to not change rates, we are going to need those surplus balances to meet other revenue needs. There will still be $283,000.00 to reduce the need to borrow for capital improvements. This method will result in about a 33% rate increase near the end of the year 2000.

The third option would be to split the use of these surplus funds between the funding of capital improvements and allowing some subsidization of existing rates. This method would resolve in a 5% increase effective in July of 1997, a 5% increase effective in July 1999, and an 18.5% increase effective in the year 2000. The cumulative effect of these options would result in about a 30% increase in rates over and above where the rates are today.

Mayor Margerum asked what would be an appropriate balance to maintain for a plant of our size just in case there is a sewer collapse or a major flood that would take out parts that would have to be replaced. Mr. Malone said unfortunately trying to determine how much money is needed to keep for emergencies is hard to determine until the emergency happens, but, as a rule of thumb, it would be prudent to keep at least one year's appreciation on hand for those types of expenditures which is about $250,000.00. If this is coupled with all of the other requirements to have adequate funding or operating accounts to meet the requirements of the bond and interest account, the sinking funds, and the reserves for equipment replacement allowance, they are estimating that at the end of last year there should have been a balance maintained of about $3 M. The excess funds they are talking about are funds over and above that reasonable level.

Mayor Margerum asked if there were any questions. She said Mr. Malone had spend a great deal of time trying to provide us with an array of options.

Councilor Sparby said it is very hard when this is presented to respond right away. She said she noticed Mr. Malone changed the debt service for the $9,950,000.00 SRF loan from April 7th to July 1st, and it is the same loan and does not match the amortization schedule that was provided on April 7th, nor do the April 7th figures match the amortization schedule. Mr. Malone apologized for not pointing that out as he went through the schedules. He said the requirement of funds for 1997 is shown at $1,315,000.00. That amount needs to be sufficient to pay the interest that is scheduled to be paid during the year 1997. It needs to be sufficient to pay for one-half of the principal scheduled in 1997 because the principal payments are due in July of each year. Therefore, half of the 1997 payment had to be collected in 1996. This payment also needs to be sufficient to pay for one-half of the payment in July of 1998. He said the schedule that was provided on April 7, 1997 was incorrect and that is why this schedule is shown as being revised, and that was the change that was made to correct that payment. In 1997, the City would need to generate one-half of the $740,000.00 principal payment due in July of 1997 because there is only six months during that time period to generate those revenues. The other half of the payment had to be generated in 1996. Also during 1998, there will be a need to generate one-half of the $765,000.00 payment because half of that payment really needs to be generated in 1997 to have sufficient funds by mid- year of 1998 to make that payment. So, the requirement for 1997 includes one-half the principal during each of these two years and also needs to include the interest due in July of 1997 and in January of 1998.

Councilor Sparby said she thinks it is a little misleading because Mr. Malone is saying that this is a cash flow, but yet he is accruing. Mr. Malone said the reason he has to do that is because the payments were scheduled in mid-year, but, she is absolutely right, it is very confusing which is one of the reasons he made a mistake the first time he did it.

Councilor Parker asked how much the wet weather treatment facility is going to cost. Mr. Malone said at present it is estimated at $3.88 M.

Councilor Parker said in the differences in each of these projections from June 12, 1996 to April 7, 1997 to May 29, 1997, he is seeing a difference in the proposed SRF loan, although it is still the same length of time. He asked if the difference in the amount of money the City is going to borrow is how much cash we have on hand and put into the project. Mr. Malone said the difference between the 1996 estimates and the April 1997 estimates result from the fact that the cost of that project has increased. He has asked the engineers to update that cost, and he doesn't recall exactly what the cost was back in 1996, but it is a little higher today.

Councilor Parker asked if the difference between April 7, 1997 and May 29, 1997 is a difference of $500,000 or there about because we will not have cash on hand. Mr. Malone said it reflects the differences in the amount of cash on hand that is available to pay for that process.

Councilor Vernon passed out Umbaugh and Associates reports from 1996 and 1997. She said she tried to compare what they were doing from last year's report to this year's report, and she sees a very large discrepancy in the Capital Improvement Program. She said if we look at 1997, we are looking at approximately $3 M, and when she looks at the Capital Improvement Plan for 1997, it is $3.9 M. So we are looking at a difference of $900,000 for our capital improvement program.

Councilor Vernon asked why there is such a desparity in numbers. Mr. Malone said the greatest reason is because the Capital Improvement Program has been updated since last year. They have asked Director Darter to provide them with a new Capital Improvement Plan to cover the next three years, 1997 through 1999. They have made an assumption that this would continue at that level during the years 2000 and 2001. With the capital improvement program that was last provided, they were estimating improvements in the range of $400,000 to $500,000 during 1999 and the year 2000. Mr. Malone said it might be appropriate for Director Darter to make some comments as to why the change in the capital improvements.

Director Darter said the biggest change is the miscellaneous equipment replacement, and this is the replacement of all equipment that is not covered under the SRF program such as computers, furniture, vehicles, back hoes, etc. He said taking the life and value of all those, and generally they are on a ten year life, they divided by ten and came up with the $90,000 figure. Whereas before, they were not looking at the total equipment replacement for all equipment that is not listed in the SRF issue.

Councilor Sparby asked if the government has passed regulations for the wet weather facilities. Director Darter said the facility plan has not yet been approved but should be within the next 30 days. The long-term control plan will more than likely be included in their permit which will then stipulate that it is indeed part of the permit, and it will need to be implemented.

Councilor Sparby asked Director Darter if he knew when we would be required to have the wet weather facility. Director Darter said generally when they give a permit they give you 36 months.

Councilor Sparby asked how Lafayette got by with their non-compliance. Director Darter said she would have to ask Lafayette. He said he believes they went in for a variance. Mayor Margerum said Lafayette has had a five year variance, and she believes they are getting ready to move into that direction.

Mayor Margerum said she thinks in terms of the wet weather facilities, there was a schedule that showed when those approvals would come. Right now cities over 100,000 must have a plan for wet weather facilities. It is part of the Clean Water Act, but it will come about as we renew our permits. When Lafayette gets their permit renewed, they will have to have all those things included. We have done the decholorination and the nitrification as part of the upgrade of the plant we are doing right now which is required. By the time you design and go out for bids it is very close to being able to design and construct something in a 36 month period. Our permit is up for renewal in 1998.

WWTU Director Darter said they will start writing it as soon as they get through this 30 day comment period with the facility plan. They will start incorporating the facility plan as part of the permit in Attachment A.

Mayor Margerum said the wet weather facilities are to treat the combined sewer overflows and there has been a lot of discussion recently about when the overflow goes into the river untreated when there is a storm. We have always been proactive in terms of meeting our environmental requirements before we have to, and it is important for the good of the environment and the quality of the Wabash River that we have an obligation to do that as soon as possible.

Councilor Sparby said she thinks one of the things the Council put in place last year was an annual review of the rates. Given the fact we are sitting on such a large surplus, and will have the opportunity to review them again next spring, it would be prudent on our part not to increase rates at this time and to evaluate them on a year to year basis as we decided to do. With the projection of June of 1996, our surplus at the end of 1997 is projected to be $171,000.00.

Mayor Margerum said she thinks Mr. Malone had just given a run down of what would happen, and if this is what you want to do you should tell citizens that they would be getting a 33% increase then by the year 2000.

Councilor Sparby said they didn't know that for sure, and the way the figures change every time we meet it is hard telling what it will be.

Mayor Margerum said that is what happens when all kinds of construction and requirements continue to go up and aren't less. Construction costs don't go down, they go up. There is some prudence in trying to move ahead as quickly as possible. These are 3% loans, and it is important to utilize that kind of loan, and be able to provide these increases at a much lower rate.

Councilor Sparby said when they met in June, the June 12, 1996 report projected that the 1997 ending surplus was supposed to be $171,000, and now it is over $2 M. She said when they made the decision last year to scale it in, we were looking at an ending surplus of $200,000 and now we're saying it is going to be over $2 M. She said it seems ludicrous to try and get citizens to swallow this kind of an increase especially with the transient community we have. Mayor Margerum said there are some people who feel it is important to maintain a balance and to prefund debt. She said the philosophy is whether you prefund debt, or whether you just want to wait until it comes and have a large increase. I think that is your choice.

Councilor Sparby said the course she would opt for would be to review it next year and see where we stand.

Councilor Shamo said at the very least wouldn't they want to go with a 5% increase which will still be within a one year period increasing over 22% to 23%. Councilor Sparby responded maybe. Councilor Shamo said he thinks that is harder to swallow than 11% and 14%, and it would be more beneficial to at least keep the increases below 15% over the course of any year.

Councilor Sparby asked Councilor Shamo if he was comfortable going to the students, the transient members of the community, and tell them we're going to increase the sewer rates even though we've got $2.3 M dollar surplus at the end of 1996. Councilor Shamo said that in the end by the year 2001 it would be worth it.

Councilor Sparby said they won't be here and won't care.

Mayor Margerum said somebody else has paid for the present plant, and she thinks each group of taxpayers pays for the cost of services provided right now, but also if they have a concern about the future do contribute just as we contribute to school taxes when we don't have kids there. She said we are providing for future needs by prefunding some of our future debt.

Councilor Parker said we have discussed in several places what is the cumulative effect of putting in a rate now and over a period of years. He asked Mr. Malone if he had figured in the growth factor, because we are a growing community and obviously will have more people paying four or five years from now. He asked when you figure the cumulative effect, is that growth figured in these. Mr. Malone said no, they have not made any projection of growth.

Councilor Parker asked if at this time when he speaks accumulative effect, if he is assuming that for practical purposes that our growth is stopping right now as far as the figures here show. Obviously we will have a larger accumulative effect because we will be growing in this community, and there will be more people coming on line, but that is not reflected in the figures. Mr. Malone said that is correct; they are trying to be very conservative.

Councilor Parker said when they are looking at projected cash flows, they are really going with the assumption of today's on-line people and not necessarily with whatever other people we have come in for the next three to four years. Mr. Malone said that is correct, and if you chose to phase in rates and to review the rates periodically as you were phasing them in, the study can be adjusted to whatever the actual results are at that point and time.

Councilor Parker said we would have natural upturning of the projected cash flow simply because we would have more people coming on-line. We will have a larger cash flow than what these will show right now.

City Attorney Bauman and Mr. Malone said not necessarily.

Councilor Parker asked if we would have less.

Mr. Malone said we don't know.

City Attorney Bauman said there are some development grounds still within the City that would be served and that additional houses would be built on, but Purdue University has been reducing the flow to the system as they continue to separate some of their old facilities. He said this may well balance out or even overcome any increase in the number of houses connected.

Mr. Malone said as a matter of fact, last year they had estimated that the revenues for 1996 would have been $4.124 M and in fact they were only $3.9 M. So there was a $233,000 shortfall in revenues from what had been budgeted.

Councilor Parker asked if this could be contributed to Purdue. Mr. Malone said half of it is.

Councilor Parker asked if we expect that again. City Attorney Bauman said as they continue to do development projects, what they typically will do, in connection with those, is additional separation work. When they do that then they are sending less flow to the system, and they don't pay for what they don't send to the system. That is a continuing process on their part.

Councilor Bossung asked if the same rate increase affects the University as it affects the average household. Mayor Margerum said yes, and half of the total cost will be University cost because they are half the flow. City Attorney Bauman said historically that has declined slightly as they have reduced flows to the system.

Councilor Vernon asked in regards to the capital improvement program, who approves the list of those projects. Mayor Margerum said that we don't have an official approval with the Board of Works, but she reviews it with Mike (Darter) and he looks at the capital improvement program as it is needed.

Councilor Vernon asked if there shouldn't be some type of a formal approval process if we are looking at such a vast change of dollars and a variance of $900,000. Shouldn't that list somewhere be approved by some body? Mayor Margerum said the budget is approved by the Board of Works. There isn't a separate capital improvement budget, but the Board of Works approves the budget each year presented by Director Darter.

Councilor Vernon asked if he submits a list of capital improvement projects within that budget and that amount of money is there. Mayor Margerum said yes, and a large share of it has been for the disconnection program. She said these are all estimates because there is no way to know how many people will disconnect and what the costs will be, but it has been a pretty good estimate.

Councilor Vernon asked if she looked back in the 1997 budget, if she would see a capital improvement program that has been approved for $770,000. Mayor Margerum said no, this is an estimate of over a period of time what that capital improvement will be, and each year Director Darter decides how much equipment he needs to buy for what particular thing. This amount is an estimate of what it is going to cost over a five year period. So some year it might be $720,000, and the next year $850,000.

Councilor Vernon said she thought she heard Mayor Margerum say that it is in Director Darter's budget for the money for capital improvements and that it is approved. WWTU Director Darter said he does submit this to the Mayor, but he doesn't know if we have a formal Board of Works approval on the particular programs. When you go to lift station improvements, that is the SCADA system for those lift stations. Go to facility improvements, that is to bring more automation into the facility on the SCADA system that is currently there. He cannot say whether it's going to be $100,000 or $150,000 until they go in and get a little closer estimate. The best estimate he can give at the start of the season is $100,000. If you go into collection system improvements, it will be $50,000. He has one project now, where there are three others on the board, that is turned in at $46,000. It could go well over the $50,000 he has estimated that it will cost to do the collection system improvements.

City Attorney Bauman said the $46,000 is for a sewer in a residential neighborhood and based on inspection, may be in danger of collapsing. You fix them when they need fixed rather than on averaging the dollars out each year. If it's not fixed it collapses, and to dig up the entire street at a depth of twenty feet it is going to cost more than $46,000.

Director Darter said there is a list of specific items for each one of these things, but estimates are made at that point and time.

Councilor Bossung said in 1996 there was an estimated dollar amount. He asked Director Darter if they were above or below or close to that estimate. Director Darter said they are at about a 75% level with those moneys and generally most of the money that wasn't spent or because they were at that level is because they did not address collection system improvements such as a sewer liner job and digging and rebuilding of a sewer. More attention was given to disconnect and lift station improvements and facility improvements.

Mayor Margerum asked if they had all received the memorandum from WWTU Director Darter. Clerk Treasurer Rhodes said she did not receive one. Director Darter said the Council did. Clerk-Treasurer Rhodes said she was one of the people who asked the questions at the Council Meeting. Mayor Margerum gave Clerk-Treasurer Rhodes a copy of the memorandum.

Councilor Vernon asked then if the answer to her question is that the dollars that are designated for a capital improvement plan are not reviewed by the Board of Works. Mayor Margerum said no, they are reviewed by her, and we all look at them, including the engineer.

Councilor Vernon asked if they are not officially reviewed by an official body. City Attorney Bauman said the expenditures are reviewed. Mayor Margerum said that the expenditures are reviewed as they are made. Mayor Margerum said these are the estimates of what Director Darter thinks he is going to spend, but if it is a matter of bidding it, of course, comes through the Board of Works.

Councilor Vernon asked if when they are looking at the capital improvement plan and the combined sewer improvements as they're increasing through the years, if this is being based on water quality standards that there is no draft to right now. Director Darter said as to collection system improvements and the Capital Improvement Program, no, he is talking about an existing infrastructure that deteriorates.

Councilor Vernon asked in reference to the water quality standards, do we have a draft at this time.

Director Darter said that she may be getting some items confused here. The collection system improvements are in the Capital Improvement Program. Wet weather treatment and water quality fall under the NDPES permit which are a separate issue altogether.

Councilor Vernon said she understood, that she had set this aside and was on something else.

Councilor Vernon asked if they were putting all of their eggs into this basket, in that the draft is not even written at this time for the wet weather facility as far as what regulations we have to follow. Director Darter said there are, but they have not gotten the environmental assessment back, and they will address portables, solids that will settle out, and chlorination of that effluent.

Councilor Vernon said then there is a draft. Director Darter said the environmental assessment just came in the mail today, and there is a 30 day comment period..

Mayor Margerum said the Clean Water Act sets the standards and cities over 100,000 people are already having to abide by these, so there is a good indication of what those standards will be. Mayor Margerum said that the trend is certainly clear. She has gone to several national meetings, at which they discussed at length what the exact requirements are for these major cities, and they are quite expensive.

Clerk-Treasurer Rhodes said she had asked several questions at the last Council meeting. She understands that information was prepared but that apparently she was not on the distribution list. She said one of the questions she asked Mr. Malone had to do with an assessment of the cost in regards to the support for the West Lafayette Regional Sewer District which is being absorbed into the City. Although the City had a maintenance responsibility to some extent, it is fair to say that the intensity of effort in that area has certainly not been as high as other areas in the City for such a long period of time.

Clerk-Treasurer Rhodes said her question was what is the looking forward estimate of cost of resources that we would be spending in that area. She imagines that Mr. Darter has included that in his capital plan. Director Darter said that would be proportional as to what kind of activity is put in the City property. Clerk-Treasurer Rhodes said that then it has not been addressed. Director Darter said that as far as actual dollars spent, no. Clerk-Treasurer Rhodes asked what was the estimate of that proportion that would be spent in the area. Director Darter said it will be in proportion and that they will spend an "x" number of dollars.

Clerk-Treasurer Rhodes asked if it was based on sewer miles or sewer feet. She said that you are saying I've given you the total picture and I'm asking what proportion. Director Darter said there will be a little more activity in that area because of some of the surcharge conditions that they had previously seen. One of the issues that will be seen this year is a contract to seal eleven manholes out there. They will then address looking at another pipeline that will possibly be dug up, repaired, replaced, or slip lined. They have a $46,000 estimate on slip lining a sewer in the City. So they will look at the priority of where they are getting the most infiltration and try to eliminate the surcharge condition that we see on that lift station.

Clerk-Treasurer Rhodes said one of the other questions she asked has already been addressed several times which is the time line at which we have to meet wet weather CSO control standards. She said she thinks in the interest of discussion the situation has been a bit simplified. She said the state is rewriting the water quality standards. It is occurring in this time frame, and it's not clear they will be done even at the end of the year

Clerk-Treasurer Rhodes said that also impinging on what the NDPES parameters may be is rewriting of the Clean Water Act. It does not look like that is going to be done certainly not early in the fall. We could only hope it would be done by the end of the year and that would cause a rewrite at the state level. There are also other priorities that have to do with the sewage. There is a question of the river allocation for ammonia. Staley and Lilly have been meeting with IDEM, and IDEM will be involving the cities. So there will be other priorities as well. There is also a need to take a very realistic look at the time frame at which IDEM are going to be writing permits and probably fast track, from when you start, is six months. That is fast given their backlog and given the regulatory requirements for review and response. Therefore, we are looking into 1998 sometime and probably certainly not early 1998.

Clerk-Treasurer Rhodes said she thinks NDPES permit standards may be changed, and they may be looking for a longer length permit issuance that may change what point you want to get locked into with the State. She said she is just commenting that there are a lot of things that are going to be changing over the next year. It is very difficult to foresee precisely the kind of project we're going to need until they see the language in the draft permit. She said she thinks a reasonable person would agree with that, and she thinks they all feel they should be aware that they are a ways away from seeing that draft language.

Mayor Margerum said she doesn't think it is a question of whether you are concerned about the quality of the Wabash in terms of being proactive. We certainly know that one of the major things they're going to require is the removal of the first flush, the solids, and floatables. That is part of what the wet weather facilities are. We ought to be taking a proactive stand. From the time table Mike furnished you it looks that funds would need to be available by August of 1999 in order to receive that wet weather treatment bid.

Clerk-Treasurer Rhodes said she appreciates the Mayor's comments and she knows she knows she has long been interested in environmental issues. This is not a matter of who cares more about the environment. It is doing the right thing and being prudent by doing the right thing and knowing exactly what is going to meet the requirements. She said she thinks this is a reasonable approach and does not necessarily characterize it as being reactive or not doing the right thing.

Councilor Braile said we know the problem exists, however, and not to pretend it doesn't and wait until someone else gives you a law. We know what needs to be done. Clerk-Treasurer Rhodes said the process of drafting a permit and coming to an agreement is not simply an edict issued on high and the City in fact retained an environmental consulting firm and engaged in a rather lengthy process of negotiating their last permit.

Clerk-Treasurer Rhodes said the permits do not just pop out and that's it. There is a discussion that occurs. Councilor Braile said she understands that but in the meantime when the river is high, we are putting unacceptable materials into the river, and she doesn't think this should be ignored.

Clerk-Treasurer Rhodes said she is not suggesting we do nothing and that she thinks it is reasonable to do the right thing, when we have a better picture what that is. Councilor Braile said in the meantime there are a number of citizens flushing toilets which cannot be ignored. The amount of sewage cannot be controlled as much as we would like to micromanage everything else about this issue. Clerk-Treasurer Rhodes said she is not suggesting we ignore it.

Councilor Shamo said the difference they are talking about is the difference of legal standards, and the Mayor is talking about ethical standards. If we look at the river it is obviously in need of some improvement. We know we are to do something, and we don't know exactly what the letter of the law will be about that. The question is are we going to be proactive and say let's plan on this whether or not the legal standards require that we have the exact description of what we are going to have. Are we going to do something that we think will be effective to the community. We should plan for something that would be proactive rather than trying to figure out what the bare minimums will be and say okay let's sit back on it and wait and see what they are going to require us to do exactly and then feed in exactly to that. And not just say something that we need to say or we have to do it because the government says we have to.

Clerk-Treasurer Rhodes said she appreciated the comments made by Councilor Braile and Councilor Shamo, but she thinks in discussing these complex issues, when you're discussing pros and cons and the pace of making permanent decisions, that it is not a case of deciding to do nothing, doing the bare minimum. There may be a disagreement on what the visibility is looking ahead and of what point you lock in. She respects their opinions and they are appropriate, but what she is talking about is not doing the bare minimum or turning away. There is certainly a whole range of opinions about that.

Councilor Shamo asked what it was Clerk-Treasurer Rhodes was implying. Clerk-Treasurer Rhodes said she has said probably all that she wished to comment at this time. Councilor Shamo said they are well aware that they are making estimates today.

Clerk-Treasurer Rhodes said she has expressed herself and doesn't know that she needs to repeat herself anymore.

Councilor Shamo said that perhaps he missed Clerk-Treasurer Rhodes' point, but he is wondering that by saying that these haven't been drafted yet, what she is saying beyond the fact that we're making estimates. Clerk-Treasurer Rhodes said she didn't believe that given the changes that may occur in water quality level standards at the two levels, federal and state, and the time frame to actually draft a permit and see the new permit requirements which may involve a whole look at the permanent terms of watershed management, that while they're looking at this project, she wouldn't imagine the City wanting to get locked into this particular solution right now.

Mayor Margerum said we are not getting locked into a solution but setting aside some dollars which are an estimate. This is not saying that this is what is going to be the final engineering, but at the present time this is the best knowledge they have that this is what it's going to cost. Mayor Margerum said when it gets to the details it will be incorporated into the engineering, but she can guarantee it won't be less because it never is.

Councilor Shamo said his point is that no matter what happens, even if it's 33% or 25% , if we wait until the year 2000 he thinks that is excessive.

Councilor Sparby said they are not talking of waiting until the year 2000. She said in place there are requirements to review the rate annually, and that is what they're doing now . We will go through this again next year.

Councilor Shamo said he thinks we should take a reasonable increase now to avoid having an excessive increase later. Councilor Sparby asked if he knew what the reasonable rate increase was to have been last year. It was 25%.

Councilor Shamo said he is basically talking about wanting to avoid the 33% by going with something like the 5%, 11%, or maybe coming up with something like an 8%, or a balance in between that is going to be somewhere around a dollar. That would not be noticeable by most. I know for most people that would not be excessive by any means, and this would allow later on having to pay excessive prices due to debt that could be paid off earlier.

Councilor Sparby said the more prudent approach would be to wait until we have a better idea of what the wet weather facility requirements will be, and then there can hopefully be a better decision next year.

Councilor Shamo asked how much the difference is between the prediction and actuality. Councilor Sparby said we do not know.

Councilor Shamo asked what if it is even worse than predicted. Councilor Sparby said that is a gamble we take.

Councilor Shamo said he would like to make a reasonable attempt to avoid taking that gamble by just increasing it maybe by 5% which is not an excessive increase. The average family takes 5,000 gallons. If we increase to 5% that's only increasing on a monthly basis 60 cents. I don't think that is unreasonable to ask, if we just used that. Then that just avoids us having to take such a gamble when it comes down the line, as opposed to having no increase and then taking a 33% later or maybe greater or less. We can obviously vary this year by year. I understand that. I want to avoid taking this gamble by having them reschedule increases. I think 60 cents is reasonable by far.

Mr. Malone said if they remember back a year, the ending surplus number had already excluded the funding of the reserves for both the $19.5 M loan and the $8 M loan, so it is not really comparing apples to apples. He said he wanted to pull those out separately so the Council could have better control on making a judgment as to whether or not to fund those reserves. He said they had made a presumption on their own part in the last study, and already set those moneys aside so those two numbers are not comparable.

Councilor Braile thanked Mr. Malone for his estimates, and said his analysis was very helpful.

Mayor Margerum thanked Mr. Malone for coming to give the presentation.

Public Relations

Mayor Margerum said there has been discussion going on concerning the Levee. She said they have had conversations with the arts groups concerning their interest. Mayor Margerum said there is money in the consulting balance that would allow them to put together with money the arts groups will raise to do a feasibility study for looking at an arts complex on the levy. She said they also have an opportunity then to take an option. Mayor Margerum said there isn't an additional appropriation or transfer of funds needed because the money is in the appropriate funds but on the other hand the money, when appropriated, was talked about for other things.

Mayor Margerum introduced Doug Gutridge, President of the Board of the Greater Lafayette Museum. Mr. Gutridge introduced Gretchen Mary (Executive Director, Museum), Suzie Coles (Vice President of Board, Museum), and Susan Kissinger (Executive Director of Civic Theater).

Mr. Gutridge presented a resolution adopted by the Board of the Greater Lafayette Museum. The resolution reads as follows:

Be it resolved on this 27th day of May 1997 that the Board of Directors of the Greater Lafayette Museum of Art endorsed the concept of a collaborative fund drive with Civic Theater, Greater Lafayette Museum of Arts, and the Tippecanoe Arts Federation towards the purchase and development of the former Sears property in West Lafayette, Indiana, for the construction of the new community arts center.

Mr. Gutridge said at this time, their Board believes this would be a very good potential project at the Sears property. He said it would be a collaborative effort from the arts community to put in place a facility that could house various arts organizations. He said prior to going on further than that, they do believe their needs to be a study so that it is clearly understood what the space needs would be and other aspects of the viability of such a project.

Susan Kissinger (Executive Director of Civic Theater) said the Civic Theater Board has been discussing a collaborative effort for probably a couple of years with the arts groups. So in August of 1996 they passed a resolution and in April of 1997 they discussed it once again and then again at the May board meeting. Ms. Kissinger read a resolution from the Civic Theater Board and it reads as follows:

It was the consensus of the Board that the Civic Theater would continue to be an enthusiastic part of the exploratory efforts for a cross cultural center.

Ms. Kissinger said they need a larger facility with adequate storage space for costumes and scenery. She said they also discussed the great potential to work collaboratively with the art museum.

Gretchen Mary (Executive Director, Greater Lafayette Museum) said she wanted to add that a group of corporate leaders in the Greater Lafayette area have been exploring this issue as well, and one of the things they have let them know is that the corporate community as well as the foundation community would look much more favorably on a

collaborative campaign rather than all the organizations coming at them for various capital campaign projects. She said they have been very supportive of a collaborative effort particularly on behalf of the Sears effort.

Mayor Margerum said this has been fairly recent, and there is money in the consulting budget. She said they are willing to go together with the arts groups in doing a feasibly study, and she wanted to bring that to the attention of the Council. Mayor Margerum said this is the first step to a feasibility and doesn't mean that the City is going to build it. They just want to work with the arts group.

Director Andrew said he did want to mention the City does have $15,000 to do this, and in the Department of Development budget. They are also looking at the Community Foundation providing money for a survey of this sort.

Councilor Sparby asked how much Lafayette and Tippecanoe County were contributing. Director Andrew said they are not.

Councilor Sparby asked why they were not if this is a community project. Director Andrew said they had not been approached.

Councilor Sparby asked if they were planning to approach them. Director Andrew said they may be approached later, but right now they are just looking at the Community Foundation.

Mr. Gutridge said they would not rule out approaching Lafayette and Tippecanoe County, but at this point it was their understanding since it is the Sears property in the City of West Lafayette that the appropriate first step would be to address with the City of West Lafayette.

Councilor Parker asked if they knew how much the feasibility study would cost in total, and if they had someone chosen to do the study. Mr. Gutridge said no, but they have projected $30,000 and a grant has been written by the Tippecanoe Arts Federation and presented to the Community Foundation. He said they are waiting for a response from them for $15,000 of the $30,000.

Redevelopment Commissioner Jim Fenn (300 Wilshire) said he thinks this is a wonderful idea and proper use for the property which would be a benefit to everyone. He is on the Commission of Economic Redevelopment and is probably one that is going to maybe make a vote of whether to taken an option to purchase and put up the money. His question for the Council members and Mayor would be if they had another developer or another group come forth and have a use for this property, if they are prepared to put up the same amount of money for them to do a feasibility study also.

Councilor Shamo asked if he meant for a commercial effort. Mr. Fenn said for commercial or noncommercial. One of the things that has been stressed was that we did not want to lose this property from the tax base. If it goes to the arts group, this would be money that is lost from the tax base. It would be close to $55,000 that the citizens of this community would be asked to pick up. One of the major ramifications would be if someone else does come forward. It could be profit or nonprofit, because the whole time they have been pushing a high rise office building so why not give them a feasibility study also. He asked if the City is prepared to put out the money for a feasibility study prior to knowing what the tests are, and if it is even going to be possible to build something down there.

Mayor Margerum said the art groups have joined with the City to do a feasibility study to look at what their resources are. The Sears property may not be the place that they would be talking about, but maybe in an adjacent area.

Mayor Margerum said this is the first step in many possibilities, and when they get the environmental study back, they have been told there are going to be many people interested in that property. So they wanted to make sure, within this discussion, that an arts presence is very important to that location. The art groups need to know what would be the cost for them as opposed to having a developer come in and build something they would rent. The purpose of this is to have the information available as to what the arts groups costs are going to be and whether or not it is feasible for them. Once they make a decision they would look for a developer. She thinks it is very important that we maintain a presence on the Levee, otherwise it could go to a variety of things that would not be very compatible.

Councilor Parker asked if there would not be an option taken until after the feasibility study is done. Mayor Margerum said she didn't know, but she thinks we would need to do that before then. As soon as we find out what the environmental study report is, we need to take an option. Councilor Parker asked if she then would want to take an option before the feasibility study is done. Mayor Margerum said yes, they need to be done at the same time because there is no way to have any say in what is down there unless there is an option on the property.

Mr. Fenn said if another group came before the City, he didn't see how they could turn them down without paying for part of the feasibility study. Councilor Shamo said he thinks the commercial organizations can be treated differently than the community organizations.

Councilor Parker said these arts groups will be commercial in certain aspects. Mayor Margerum said they can probably tell you that they are nonprofit, and that it is an entirely different sort of thing and a community-based organization than a commercial.

Jess Scheele (625 Ridgewood) said she has a concern about the tax base as well and about economic development for private parties. She said her concern is about taking $60,000 out of the City tax base that we presently have. Ms. Scheele said she thought it would be wonderful to have the arts community down there, at least as part of the project but with them being nonprofit she didn't know what kind of money they would bring in to make up for the tax base they're losing. It's like a five point basketball turn around play. We don't get the points and yet we're letting the other team get it. What I am saying is that we are losing taxes, and I do know whether we are going to end up subsidizing the arts groups as well in the form of I don't know what. You are talking about buying it, so it isn't rent.

Mayor Margerum said part of doing this in a public venue is that everyone is jumping way, way ahead. What they we want to do with them is to do a feasibility study. It may not be the appropriate place for an arts facility. What they were saying sounds like they would like to buy it. I think it is a Sears area, not a particular site.

Mr. Gutridge said he does not believe the arts community at this time has any misgivings or misunderstandings about what this would potentially be. He said it is not that they would take over the entire Sears site because they do not have need for that much property. The facilities, as we estimate what that might be, would not be nearly as large as the Sears building. As we've talked, we see it as a property that could be developed with an arts presence as well as a commercial presence that would be a tax base.

Ms. Sheele said she mentions this because their taxes went up 27% last year and fortunately only 3% this year, but, that is still 30% in two years. We are doing so much development that she is wondering what the plan is for future development as well.

Mayor Margerum said a lot of cities have seen that arts bring people into the City and then that brings additional development. She hopes it may also be seen as a magnet. The Levee is certainly a redevelopment area. It is not as if we are taking a thriving business off of the tax roles. There are more opportunities to have additional development within the area. Everyone that has looked at it agrees that when you get something in the central area that will spawn additional development.

Councilor Vernon asked if the City is prepared to fund someone else's feasibility study if they ask, or are we going to develop a check list of criteria for determining whether to fund certain feasibility studies. City Attorney Bauman said in significant part the City has done that. Part of what Mike Higbee was hired to do was the feasibility work on various types of retail, office, or mixed-use redevelopment of that site. Director Andrew said they would do their own study. We have already been doing some of that kind of [unintelligible] in terms of promoting redevelopment.

Councilor Vernon asked what if we get a specific group that comes in here. Director Andrew said that they will do their own; they won't take ours. What we are doing is in our own best interest in getting some handle on what will fit. If you have someone coming in they're going to do their own study. They will have a private consultant to do it.

Councilor Vernon said they may hire their own consultant but what if they want the City to come in and help fund the feasibility study. Director Andrew said that has already been done to our satisfaction. That could be part of a negotiated process as part of the purchase price, our underwriting it. That could be our donation or our contribution to their coming. That is not something that we would get into. As Bob has pointed out, we have already done that to our satisfaction.

Councilor Sparby asked if they were planning to purchase the option out of EDIT funds. Mayor Margerum said yes.

Councilor Sparby then asked if they would then not go in front of the Redevelopment Commission. Director Andrew said no, they will talk to the Redevelopment Commission about that. We have discussed this from time to time with them. The option is there; the money is there to purchase.

Councilor Sparby asked if the decision will be made by the Board of Works. Director Andrew said part of the reason they are here tonight is to involve you in the dialogue so that everyone understands where they are headed and all have a chance to provide their input on the project. He thinks the Council's opinion on this is very important.

Councilor Bossung asked for clarification if there would or would not be an option taken by whatever body is going to do this until after the core sample studies are returned Mayor Margerum said there is a question of timing. If the study is very favorable and it looks good, there is a chance that someone will come in with a minimal or some kind of development that isn't compatible with the kind of vision we have had. It might be prudent to go ahead and set the option based on a clean . . .

City Attorney Bauman said if an option is taken on this basis, it is not unusual in a commercial setting, as there is a contingency that certain things have to be okay in terms of the future development. This would include a satisfactory environmental. If there was, there would be a contingency covering the environmental. Director Andrew said if the environmental assessment comes back relatively clean, the price would potentially go up.

Councilor Bossung said he doesn't think any developer with common sense would touch that until the studies are done, but we want to jump in without common sense it sounds like.

City Attorney Bauman said other developers have talked to them and had options at various points but they included various contingencies including the environmental study. That's a common commercial practice.

Councilor Sparby asked if this option is going to cost $100,000. Mayor Margerum said they were not sure yet.

Councilor Sparby asked if it would be an annual option. Director Andrew said no, it would be for a period of time and that would be it. You would have a six, eight, nine month, or a year duration depending on what you negotiate.

Councilor Sparby said so let's say you have a 6 month option for $100,000. Director Andrew said he doesn't think we could do it in 6 months. Councilor Sparby said let's say a 9 month option for $100,000 and then we want to extend it. Are we talking then another $100,000? Director Andrew said no.

Councilor Sparby asked if that is definitely no. Director Andrew said that he can't say definitely no but at the end of that time period, you need to have some idea of where you are headed, whether you are throwing good money after bad or

not. And that is the reason we would hope by 9 months to have a developer in place and would hope to have the feasibility study back to [unintelligible] a design that would work. But no action is an action.

Councilor Vernon said that on May 19, 1997 after a Personnel Committee this was discussed. At that time, she had asked Mayor Margerum if no option would be made until after all the environmental studies were back, and Mayor Margerum said definitely yes, that is what would happen. She asked Mayor Margerum what has changed in a week and a half that now she says we would go ahead and do an option. Mayor Margerum said she did not say they would go with an option, but we would be looking. At that time, she said it is a question of whether you wait to do it exactly when you get it back or if there is an indication that it's okay, and we would go ahead and do it. I think we would need to be pretty sure that it is okay before we would go ahead and do it.

Councilor Vernon asked if that would before the check was given. Director Andrew said yes, since there are two groups of lawyers and that's a minimum of a month.

Councilor Vernon asked if he estimated that it would be two weeks before we get the environmental back. The Mayor said it would be hopefully two to three weeks.

Director Andrew said to do an option would take a minimum of a month, probably two months, by the time there is language acceptable to both parties. So we would have that information before the option negotiation was actually completed.

Councilor Braile said it may be appropriate at this time to focus on the strategic plan update, and one of the points is that the City will encourage and facilitate quality Levee redevelopment.

Councilor Sparby said she did not think we were disputing that, but it is a matter of whether to commit dollars before the environmental is back or not.

Councilor Braile said in this case, and in our last situation, we were talking about budget issues in regards to looking at possible changes in legislation. In this case we are working on an urgency that if the City is going to have a presence on the Levee, then we do need to make moves.

Councilor Sparby said the decision is not ours to make regardless. It is ours to support but not to make.

Councilor Braile said she supports the strategic plan that was formed by the citizens of the City, and this is one of the focus points. She thinks it is exciting to have this group of people that have come together. It is an exciting possibility.

Mr. Fenn said this is a great idea, but going back to his original question, if he is the YWCA and we determine on our Board that we need a new building. I come to the Mayor and this Council and say we are a nonprofit organization. We understand that the Sears property is going to be controlled by the City. We might be interested in building there but we need to do a feasibility study. Will I get the same consideration that the arts group has gotten here? That is where his concern is, as he can see this happening. We need to be upfront. I don't care what you say. We need to have an answer, yes or no. And somebody needs to have enough guts to say yes or no.

Mayor Margerum said there is a group that is here now who wants to discuss this, and if the YWCA comes in they can discuss the same thing.

Director Andrew said they are also a 501(c). Mayor Margerum said they are also a nonprofit group and we would look at any proposal they had. We are trying to do this in an open process to show where all the possibilities are, and this is certainly not something the City has done in the past. She thinks we can move ahead. You can think of all kinds of what if's and maybe's and what about this and what about that and do nothing, or we can move ahead.

Councilor Bossung said unless he is misinterpreting Mr. Fenn's question of this group, it was whether there are EDIT moneys available for any nonprofit organization that would request it, or would it be a one time shot for this group. Mayor Margerum said she thinks this is a one time shot for this group to see what the feasibility study is.

Councilor Bossung asked if this was Mr. Fenn's question.

Mayor Margerum said if another group comes in and this doesn't work, and the YM and the YW decide they want to do something then we can look at that.

Councilor Bossung said so you are willing to take more EDIT money to let another nonprofit group... Mayor Margerum said you can set up all kinds of straw men. I think at the present time I am proposing that we do it with the arts group and if another group comes along, we will evaluate it.

Councilor Parker said since the Redevelopment Commission has been doing all the work in that area, he would at least like this to go through them before the City funds either an option or a feasibility plan. The feasibility plan is the first step in a good fund drive, but there is also another group that has been operating here within the City, the Redevelopment Commission. They have been working on it the longest and he would like to hear what they have to say.

Mr. Fenn said that is why he is here, because he is on the committee and will have to make a major decision about it and the first time he had heard about it was when he picked up the paper this morning. No one here has contacted him about or discussed it with him. Mayor Margerum said it has just occurred and that is why.

Mr. Fenn said somebody gave that information to the newspaper. It would be nice if this would be given to the Commission members who have to make these decision. Mayor Margerum said all these bodies are open and they made a public decision. We had just met one week earlier, and we weren't that far along. We are just bringing it to you.

Councilor Sparby said she knew at the last Council meeting. She was told it was coming.

Mayor Margerum said that the meeting they had with the arts group was about two weeks ago.

Councilor Parker asked if it was on May 16, 1997. The Mayor said yes.

Unfinished Business

Ordinance No. 9-97 An Ordinance Amending Ordinance No. 6-97 (Amended), an Ordinance Fixing the Bi-weekly Salaries of Appointed Officials, Employees and Members of the Police and Fire Departments of the City of West Lafayette, Indiana for the Year 1997. (Prepared by the Clerk-Treasurer)

The ordinance was accepted without comment.

Ordinance No. 10-97 An Ordinance Amending Ordinance No. 32-96 (Amended), the 1997 Wastewater Treatment Utility Salary Schedule as Submitted by the Board of Public Works and Safety for Approval by the Common Council of the City of West Lafayette, Indiana. (Presented by the Board of Public Works and Safety)

The ordinance was accepted without comment.

Ordinance No. 11-97 An Ordinance to Amend the West Lafayette City Code Chapter 26 Concerning Fees. (Prepared by the City Attorney)

The ordinance was accepted without comment.

New Business

Ordinance No. 12-97 An Ordinance Fixing the Bi-Weekly Salaries of Appointed Officers, Employees and Members of the Police and Fire Departments of the City of West Lafayette, Indiana for the year 1998. (Prepared by the Clerk-Treasurer) Mayor Margerum said this ordinance represents a 3.8% increase for all employees, and for those under $25,000 annually a flat $950. She said there are some changes other than the 3.8%.

Mayor Margerum asked Deputy Police Chief Martin to explain about their department changes in the salary ordinance.

Deputy Chief Marvin said the first change is the deletion of the Captain of Detectives Administrative. He said there has not been a person in that position for several years, but it has been maintained on the ordinance, and at this time they are asking it be deleted.

Deputy Chief Marvin said the next change involves basically changing the names of positions through attrition. This has to do with the criminal investigation division. They need to maintain the Lieutenant of Investigations to manage that division. However, with the other positions, there are currently two Sergeant of Investigations positions and basically one Specialist Investigator position in the salary ordinance, and what they are wanting to do through attrition is basically change the terminology for those positions as those people leave them. They would become either an Investigator First Class, Investigator Second Class, or Investigator Third Class. They are still maintaining the same number of people in that division. They are just changing the terminology. This allows for advancement within the division based upon their performance and expertise as it increases.

Deputy Chief Marvin said they are asking for an increase in the pay for the Patrol Dispatchers. They have a new 911 system that has grown county-wide. It is requiring a lot of training and more work from the officers. West Lafayette is one of the lowest paid agencies as far as Patrol Dispatchers in the area, and they want to make sure they keep the proper quality of people in those positions. The Parking Control Officer will also be changed to Animal Control Officer. The

Special Services Bureau Secretary was given the responsibility of being secretary for the Criminal Investigation Division and the Special Services Bureau. Therefore, she has a lot more work and is serving more people. He was told this was an agreement with the Personnel Committee to increase her pay by $1,400 each year for two years.

Mayor Margerum said this secretary is now serving ten people as opposed to four, and the Secretary in the Special Services Bureau is very critical and has to be someone who is reliable and discreet.

Councilor Sparby said she realizes the Dispatchers need an increase, but to be consistent with what was done last year she thinks this should be deleted at this time and send it to the Personnel Committee.

Mayor Margerum said she thinks this is the time to make changes with the salary ordinance, and she suggests this is passed on first reading and then to review it.

Councilor Bossung said it can be passed on the first reading, and the Personnel Committee will have a meeting before the July Council meeting. At that time, these bodies that want changes should come to the Personnel Committee to make their changes. The Personnel Committee could then make a recommendation to the Council as a whole.

Councilor Vernon said she would rather not take away something that is voted in the first time by taking it to the Personnel Committee and then vote no on the ordinance.

Mayor Margerum said she presents this as a result of the department heads, and she would prefer to have it voted on the first reading and then go to the Personnel Committee.

Councilor Vernon said there is a new position called Code and Financial Assistant. Mayor Margerum said it is a retitling of a position.

Councilor Vernon said there is also a large increase with pay, and she cannot vote on that position when she hasn't even seen a job description. Councilor Vernon also asked if there was a job description on file for the position of Manager of Information Services. Mayor Margerum said it is currently his job.

Councilor Vernon asked if his position is now more Manager of Information Services than a Building Inspector. Mayor Margerum said it is about half and half. Councilor Vernon said if they look at their priorities and looking at the strategic plan and code enforcement, can they take a Building Inspector and give him more responsibilities of Manager of Information Services when they are focusing so much in that area of code enforcement. Mayor Margerum said this position is Building Inspector not code enforcement. It is really dealing with new buildings, and his responsibility is mainly plan review and apartments.

City Engineer Snyder said Craig Kroll has grown with the use of computers in City Hall and as the need for his services has increased, rather than hiring someone, he has been willing to study. There have been some recent emergencies. Mr. Kroll has had to spend time on the computers and we might as well give him the responsibility. He has certainly been under-compensated for his skill in the computer area, but it also occurs that in City Hall he has done wiring, run conduit, and replaced electrical systems for which we did not have to subcontract for. He feels if he is wanted to continue to do that, he should have the title. There are not two people who would come and do these separate jobs for the salary that would be offered.

Councilor Vernon asked if Mr. Kroll had taken formal classes in regards to computer systems. City Engineer Snyder said he has been self-taught.

Mayor Margerum said he took a week course.

City Engineer Snyder said Mr. Kroll puts the computers together as well as troubleshoots the down times. He has been working on the uninterruptible power supply and electronics for the heating and cooling system.

Councilor Sparby said she thinks the proper channel is going through the Personnel Committee, and that the Pre-Council is not spent on this. City Engineer Snyder said it has only been in the past week they have worked in the salary ordinance and he just received his job description yesterday so that is why it was brought up today.

Director Downy asked if the Personnel Committee could meet in the next week or so because he has safety and attendance issues that he would like brought up. Councilor Vernon said the meeting was set for June 30, 1997 because they are looking to get quotes from insurance companies and they wanted to get a long enough period of time to get the quotes but they could schedule a meeting before that time.

Fire Chief Ford explained that in the 1997 budget there were four Lieutenants. One of the Lieutenants will be retiring at the end of this year so it is being dropped down to 3 which will increase the total to 23.

Mayor Margerum said there is an Additional Statement about Street and Sanitation employees who are scheduled to work on Christmas Day and New Years' Day to be compensated at the rate of two and one-half times for hours worked. She said this has been in effect but was not in the salary ordinance.

Councilor Bossung asked if that just involved people who are called in or are there regularly scheduled people to work on those two days. Director Downy said it is just for people who are called in for snow removal or emergency calls.

Parks Superintendent Payne said the changes for the Parks and Recreation involve changing the minimums for the three administrative positions to be the same. The Senior Citizens Program Director is being eliminated after many years of outstanding service from Joe Mahoney who will be retiring in October. They are requesting the position be retitled to Morton Administrative Assistant. This position would run from Tuesday through Saturday as a full-time position. There would be a professional staff person there for six full operating days to help eliminate part-time office assistant positions. There would also be a change to Beautification Program Director from Beautification Director Administrative. For the Maintenance Technician they have requested one additional employee and the maximum has been lowered.

Superintendent Payne passed out a revised list of their parks maintenance properties. The total is approximately 334 acres. He said they do a listing of their work by location code and type of work code. They are now taking care of all the area around the intersection of Tapawingo and State Street trying to make it look nice until the Levee is improved.

Councilor Sparby asked Superintendent Payne if he had looked at just picking up a seasonal employee since a lot of work is seasonal. Superintendent Payne said for the past two years, they had spent a significant amount of money on temporary services because they cannot hire people otherwise, and they only get students from mid-May to mid-August. Most of the work on their fields and grounds is spring and fall. With the barn they have created project space and can do a lot of trail structure assembly. They make all of their signs and do equipment maintenance as well as snow removal.

Councilor Vernon said she would like to make sure that the appropriate departments filter through the Personnel Committee meeting.

Ordinance No. 13-97 An Ordinance to Set the Bi-Weekly Salaries of the Elected Officials, City of West Lafayette, Indiana for the year 1998. (Prepared by the Clerk-Treasurer)

Mayor Margerum said this is a 3.8% increase in the salary of elected officials which is the same as the employees.

Ordinance No. 14-97 Additional Appropriation: An Ordinance to Appropriate Funds that were not Appropriated for in the Annual 1997 Police Department Budget. (Prepared by the Clerk-Treasurer) Deputy Chief Marvin said they are requesting additional appropriations under salaries full time in the amount of $7,200. This is for a large pay out for retirement of an employee and the funds are need to cover it. The part-time salaries are for two crossing guards, one that was added and one that was not on the original list. The office equipment is for a request for laptop computers. These computers will be used with the new computer system and to assist the Police Department and the Clerk's office in automating the parking ticket application. The laptop computers would enable them to issue the parking tickets through the computer system and help in tracking the tickets and all the functions associated with this in the Clerk's office.

Captain Leroux said with the new 911 computer system, CAD dispatch, and records management, this is to interface a parking module that will assist in tracking. Currently the process for issuing a parking ticket and then collecting is very lengthy, and they feel by using the County's records management system they can take laptop computers into their vehicle with a printer attached. The officer will enter the parking ticket, print out a label to be placed on the car. The information will be made available to the Clerk-Treasurer's office which will cut down on the duplication of entry. This is a county-wide records management system that Lafayette, Purdue, and Tippecanoe County are involved with. It has two major files consisting of the name file and the vehicle file. So they are not only enhancing their parking system but also creating more entry information into the county-wide system. By doing this, it provides lead information to possibly solve all types of crimes. For example, if Lafayette had a hit and run situation and only had a partial description or partial plate number of the car but have entered it into their report, and one of the West Lafayette officers enters a parking ticket and puts in the description of the car, and it matches the partial information of the car from the hit and run, a warning will pop up.

Councilor Sparby asked if this would automatically go through the dispatchers or would it automatically pop up and alert the officers to be on alert. Captain Leroux said prior to the report being completed, there is a "be on the lookout" section in the CAD dispatch. If a Lafayette dispatcher enters in the partial car information into that section of the CAD then as soon as someone enters in the same description, it will show a warning to the officer. It could be the vehicle the officer is looking for or may not be, but it is good lead information.

Councilor Parker asked how often the laptops would be backed up. Captain Leroux said they hope to download the information after the end of each shift.

Mayor Margerum said she thinks this is very exciting and will be more efficient in the use of the police officers.

Ordinance No. 15-97 An Ordinance to Establish The Cumulative Firefighting Building and Equipment Fund Under IC 36-8-14 et. seq (Submitted by the Mayor)

Mayor Margerum said several years back there was a cumulative fire fighting building and equipment fund, and at that time they had decided to eliminate it in 1994. Since then, the state has been reducing the amount. This ordinance is to reinstate the fund, and will not increase the levy. This would meet some of the wishes of the Fire Chief and concerns expressed about prefunding future fire engines. This does require a public hearing.

Fire Chief Ford said this has been one of his priorities to reestablish this funding. Their current fire truck purchased in 1976 is aging and will need replacing in a few more years. His plans are to develop a committee to start drawing up specifications to replace some of the fire equipment. Two of the trucks they would like to purchase over the next few years are at least $650,000 plus.

Ordinance No. 16-97 An Ordinance to Set Wastewater Treatment Utility Rates. (Submitted by Councilor Sparby)

Ordinance No. 17-97 An Ordinance to Annex Certain Lands to the City of West Lafayette (Emro Marketing). (Prepared by the City Attorney)

City Attorney Bauman said when the City annexed an area of land owned by the Wastl's in 1994, and in a related development, there was an easement between the service station and Wastl for access to the service station. In connection with this road going in, the City Engineer said the easement is not acceptable for traffic to move in that matter. A portion of the Wastl property was deeded to the service station and the entire thing then ended up under the same key number as the portion that was previously part of the Wastl property. In the meantime, the annexation ordinance passed in 1994 and didn't reach the County Auditor until January of 1997. When they received it, the parcel had changed during that intervening period. So there was a discrepancy which needed to be resolved. The Auditor's office showed it as being in the City of West Lafayette when they received it January of this year. When the service station wanted to remodel, the county building official said it was not in the County.

Councilor Sparby asked where the ordinance was for two and a half or three years. Clerk-Treasurer Rhodes said the ordinance was taken by her office to the county building to be recorded, as was the practice. Clerk-Treasurer Rhodes said she was new in office and went to the Recorder's Office and didn't stop in the Auditor's office to get the stamp. The Recorder's office usually will not record an annexation document without the Auditors stamp but for some reason it did. There were two instances where it wasn't caught and should have been, and then the owner of the property had their legal representative come in and combine the 0.52 acre parcel with a .274 acre parcel that had originally been annexed. The company would have had to come anyhow for an annexation because they prefer to get their sewer connection closer rather than further. This will be to the benefit of the property owner and the ultimate project they plan.

The ordinance was accepted without further comment.

Resolution No. 16-97 A Resolution Requesting the Transfer of Funds (Mayor, Clerk-Treasurer, Fire Department). (Prepared by the Clerk-Treasurer)

Councilor Bossung asked for clarification if the Council had finally decided to do transfers by resolution, or if it was just discussed. Clerk-Treasurer Rhodes said the Mayor asked her to prepare the transfers as a resolution. There was not a formal vote but now is a very good time to do that. She could prepare it as an ordinance if he wishes.

Councilor Bossung said if it is by ordinance and one member of the Council is opposed to it, it cannot go up for a second reading the same night. If it is prepared as a resolution everything goes on one night regardless of whether the vote is for or against.

Councilor Bossung asked what the desire is of the Council. Councilor Parker said they had been changing it and doing it as a resolution anyway.

Councilor Sparby asked if there was a motion needed to change this. Clerk-Treasurer Rhodes said there wasn't anything in the Code that requires it.

Councilor Bossung said he just wanted everyone to be aware this was different than it had previously been done.

The resolution was accepted without further comment.

Resolution No. 17-97 A Resolution Ratifying an Interlocal Agreement Between City of West Lafayette Police Department and the Tippecanoe Emergency Management Agency For the Management of the Emergency Sirens for the City of West Lafayette. (Prepared by the City Attorney)

Deputy Chief Marvin said the Tippecanoe Emergency Management Agency would assume the responsibility of maintenance, management, and operation of the emergency sirens which were previously operated and managed by the City.

Mayor Margerum said this is to coordinate the setting off of the sirens in the City. Deputy Police Chief Marvin said they are hoping to get all the sirens in the City operated by radio frequency so they can set up different zones. This would just activate the sirens where there is an emergency rather than the sirens in the whole system. He said this would give better control of the system and better serve the community.

The resolution was accepted without further comment.

Resolution No. 18-97 A Resolution Appropriating the Necessary Funds Resulting from the 1997 Community Development Application of the City of West Lafayette Under Title I of the Housing and Community Development Act of 1974, as Amended. (Submitted by Department of Development)

Mayor Margerum explained this is the budget for Community Development as they have submitted it to HUD as the Advisory Committee recommended it. She said this budget will be submitted with the information and then by July this money will be available.

The resolution was accepted without further comment.

Resolution No. 19-97 A Resolution Fixing Financial Responsibility for Street Lights and Fire Hydrants in Planned Developments Within the City of West Lafayette, Indiana. (Submitted by Councilor Parker)

Councilor Parker said as soon as these are discussed at the Council meeting, he will be tabling them. It is his intention to set up a meeting in the following month with the City Attorney, City Engineer, and some of the people in the planned developments. When a plan developer comes to an area and wants to set up planned development, they set up a list of guidelines and requests and changed the code in different places. They will come to an agreement with the City Engineer and Board of Works. They will eventually come before the City Council and the Council will vote to rezone them as a planned development within the City limits.

Mayor Margerum said the vote goes to the Area Plan Commission and the negotiations take place with the APC. City Attorney Bauman said the City staff will often attend plan reviews and on different occasions input is accepted or rejected.

Councilor Parker said it is often accepted because sets of preliminary plans go to a long list of interested parties. Mayor Margerum said the APC rezones it, and then it comes back to the City Council.

Councilor Parker said this is not a rezoning question. We are asking as a Council that the planned developments first be built as in Resolution No. 19-97. In all future planned developments coming in, we would like to have their street lights in a standard and acceptable manner to the City Engineer and the Board of Works as well as the fire hydrants. As long as the developer owns the property they will be paying for the upkeep on the lights. When they are finished it is then turned over to the homeowners association or the lot owners in the City. This is trying to eliminate taxpayers paying for property taxes going into the general fund that the street lights are paid out of, and then turning around and paying for their own lights out front. He brought this resolution to the APC first and then to the City Engineer. There is always conflict and problems with this coming up. Many of the homeowners have questioned this.

The resolution was accepted without further comment.

Resolution No. 20-97 A Resolution for the City of West Lafayette to Accept Ownership and Maintenance Responsibility for Street Lights and Fire Hydrants in Designated Planned Developments. (Submitted by Councilor Parker)

Councilor Parker said this resolution gives the opportunity to these people in the listed planned developments and maybe more, to come forward and say they would like to put forward a plan to see about having the street lights brought up to standard or what can be done to put them into this program so that their street lights and fire hydrants are brought underneath the City responsibility. Councilor Parker said he intends to have a meeting set up where the important parties can be involved sometime in June.

The resolution was accepted without further comment.

Adjournment:

There being no further business, Councilor Sparby moved to adjourn Motion was seconded by Councilor Parker and the vote was AYE.

Office of the Clerk-TreasurerJudy Rhodes