HomeMy WebLinkAbout00005 MINUTES OF (3)MINUTES OF
$10,000.00 yearly payment made by the paper mill and the years of a high consumption of
water by the Government. An effective redgotion in water rates to all townereaidents was
made in January, 1940•frcm $3.05 to $2.50 per month. A true percentage of increase in
water consumption would be slightly higher than the percentage shown. Most of this
increase in revenues has been due to the steady growth of the Crown Zellerbaoh Mill and
its increased employment, thus giving Port Townsend a steady increase of permanent re-
sidents.
The signing of a long term Water contract with Crown Zellerbaoh and their policy
of expansion to meet the market has pretty well expressed their policy as to future
expansion. This growth together with the steady growth of the Pacific Northwest should
make any financing plan, based on the 1955 income, feassable. Anticipated income should
not be calculated in bond financing but rather should be used to make the bonds more
marketable and for future expansion of the system.
Analysis of our useable income shows there to be available each year $71,685.00;
of this $25,000,00 must go for maintenance and other fixed costs thus leaving $460865.00
for capitol outlay; of this amount $15,000.00 has been obligated for the replacement of
the supply line thus leaving $31865.00 that can be paid each year on bond retirement.
Bonding companies require that the useable income for bond requiement shall be
1.4 times the amount it takes to service the bonds. Due tothe terns of the contract
concerning the payment of the $15 000.00 for the supply line and due to the fact this
money is for capital outlay, the 615,000.00 can be used for part of the cushion required
by the bonding companies.
The following is a comparison of the average yearly amortization costs for a
$526,000.00 bond issue based on a 3.15% interest rate for periods of 20,25 and 30 years.
These figures are averages as in the calculation for cupons there are variables.
On Some issues none of the principal is repaid the first or second year.and the interest
rate will vary during the life of the issues. In this issue it would be just as well to
start paying on the principal the first year.
20 yrs. 25 yra. 30 yrs,
Total Interest $173,974.50 $207,112.50 $256,819.50
Amount of Bonds b26 000.00 526 000.00 526 000.00
Total repaid $� $� $
Average Amount per year 34,998.73 29,324.50 26,093.98
Coverage rake 11,14 '1:4 1,4
Coverage required $ 48,998.22 $ 41,054.30 $ 369531.57
From these calculations it would appear that either a twenty-five year or a thirty
year would be feaseable.
With a five year recall clause in the issue, vary likely there would be little
differemse in the saleability of the bonds or the interest rates for the 25 or 30 year
issue. Consultation with bonding houses and finance people would deberAine this.
To proceed -with the sale of these bonds, authority should be given by resolution to
the proper officers to contact the bonding house and to hire Preston, Thorgrimson and
Horowitz to make up the proper resolutions and pass on the legality of the issue.
Yours vary truly,
Keith F. Jones
City Engineer
ESTIMATE FOR REPLACING PIPE LINES
CITY OF PORT TOWNSEND Port Townsend, Wash.
May 1, 1956
Replace 16^ Pi e- 17726 LF
Cost of Pipe 77ED x_ 000 52,768.58
Digging & Laying 7726 x 1.75 - 130520.50
Valves & Fittings 2,900.00
Corporations 125 x 35.00- 4,375.00 $73,564.06
Replace 12^ Pipe = 18491 IF
Cost of Pipe 8491 x 4.02 - 34,133.82
Digging & Laying 8491 x 1.40 - 11,887.40
Valves & Fittings 4,500.00
Corporations & Services 150 x '35.00 - 5,250.00 0550771.22
Replace 10^ Pipe- t60B5 IF
Cost of Pipe 6085 z 3.09 - 18,802.65 -
Digging & Laying 6085 x 1.30 - 7,910.50
Valves & Fittings 2,400.00
Corporations & Services 104 x 85.00 - 31640.00 132,953.15
Replace 8^ Pipe - 110,925
Cost of Pipe 10,925 x 2.25 - 24,581.25
Digging & Laying 10,925 x 1.25 - 13,656.25
Valves & Fittings 2,400,00
Corporations & Services 194 x 40.00 7,760.00 $48,397.50
Replace 6^ Pipe- 15,739
Cost of Pipe 15,739 x 1.58 - 24,867.62
Digging & Laying 15,739 x 1.15 - 189099.85
Valves & Fittings L.S. " ' 2,500.00
Corporations & Services 280 x• 40400 - 11',200.00 $56',667.47
Replace 4^ Pipe -
Cost of Pipe 61,564 x•'3:03 - 63;410.92
Digging & Laying 61,664 x" 1.00 - 61'564.00
Valves and Fittings 5:400.00
Corporations & Services 18095 x 37.00•- 40,515.00 $170,889.92
Total $438,243.34
111
�11
N
N
ya u
I
I
�r
)! 3
.
•
i
I
MINUTES OF REGULAR SESSION OF MAY 15TH, 1956. CONTINUED.
Fire Hydrants. 130750.00
Salle Tax- 3 1/3% 14 606.35
Engineer & Financing, 10%'& Contingencies43�824.33
Street Repair L.S. 15,000.00 $87,180.98
Grand Total $525,424.32
Bond T $526,000.00
The above Communication was referred to the Water Committee.
BIDS FOR COMPREHENSIVE INSURANCE COVERAGE
As this was the time and place set for opening the bids•for Comprehensive Insurance
coverage for the City, Bids were opened as follows:
Farmers Insurance Group $ 975.90
It was moved by Councilman Mueller and seconded by Councilman Sullivan that the
Farmer's Insurance Group bid be accepted. Upon roll call vote all seven Councilmen
present voted in the affirmative and motion carried.
BIDS FOR EAST DAM AND ROAD RELOCATION AT LORD'S LAKE
As this was the time and place set for the opening of the bids for the East Dam and
Road Relocation at Lord's take , bids were opened as follows:
Halvorson, Call M.., Ino. ................... $1820072,00
Portland, Ore,
Joe Avery ' 0...........................$ 98,230.75
Bremerton, Wash.
Cotton Engineering & Shipbuilding Corp.......$ 92,476.00
Port Townsend, Wash.
Louis Elterich Coo ............. 9.......... ,.$114.139.40
Port Angeles, Wash.
It was moved by Councilman Mueller* and seconded by Councilman Steve that the bid
be awarded to the Cotton Engineering and Shipbuilding Corp. The motion was withdrawn at
the request of the City Engineer that the bids needed further sjudy and the bids were
turned over to the City Engineer, dissociates and the Water Committee for further study.
CATHODIC PROTECTION BID LET
The bids for the Contract for Cathodic Protection of the City Water line, opened
at the last regular session of the Council and entered in the minutes thereof had been
under study by the City Engineer and the Water Committee and it was moved by Councilman
Siebenbaum and seconded by Councilman Lindsey that the Bid of Rhodes Electric Co.,
Silverdale, Washington being the lowebt and best for the City, that that bid be accepted.
Upon roll call vote all seven Councilmen present voted in the affirmative and notion
carried.
UNSUCCESSFUL BIDDERS CERTIFIED CHECKS RETURNED
It was moved by Councilman Mueller and seconded by Councilman Siebenbaum that the
certified checks of the unsuoessful bidders`be returned. Upon roll call vote all seven
Councilmen present voted in the affirmative and motion carried.
UNFINNISHED AND NEW BUSINESS
City Attorney Stevens informed the Council that a nww ordinance concerning Peddlers
and solicitors would be ready far presentation to the Council within the next 30 days.
Councilman Siebenbaum Chairman of the Water Committee informed the Council that
Plane ana Specifications for for the North Dan at Lords Lake were ready and moved that
the City issue a call for bids on the North Dam Contract. The motion was seconded by
Councilman Sullivan and upon roll call vote all seven Councilmen present voted in the
affirmative and motion carried.
After a little discussion of the City publishing their application for Water rights
of the Dosewallips River, it was moved by Councilman Slebenbaum and seconded by Council-
man Steve that the City Clerk write aletter of protest to the, State of Washington
Supervisor of Hydraulics objecting to P.U.D. N. 1, filing their amended application for
Water rights to the Hosewillips River. Upon roll call vote all seven Councilman. present
voted in the affirmative and motion carried.
ADJOURNMENT
As there was no further business to come before the Council'at this time it was
moved by Councilman Steve and seconded by Councilman Siebenbaum that the meeting adjourn.
Motion carried.
ayDr `T
ATTEST
r
i