SPECIAL MEETING

November 14, 1962

A special meeting of City Council was held Wednesday, November 14, 1962 at 8:00 P.M. with Mayor Carroll presiding. Councilmen present were Messrs Hayes, Hill, Holpp, Hughes, Mowlds, Turner, Walls and Zartman.

Edward Hegemeyer of the Farmers Bank appeared before City Council to discuss long and short term financing of City improvement requirements. He pointed our that the City could borrow up to $100,000, which sum must be repaid from current revenues, that following approval of the issue of general obligation bonds by a referendum, it could issue bond anticipation notes and thus obtain money prior to actual sale of bonds, and that it could also borrow short term money, pledging repayment from the proceeds of a revenue bond sale. For long term financing he recommended the use of general obligation bonds, with repayment pledged from revenues and supported by the full faith and credit of the City. Issues of this type usually commanded a lower interest rate and less revenue because the coverage feature demanded by revenue bonds was not required. It was recognized that a general obligation bonds issue required the approval of voters at a referendum. The suggestion was made that such a referendum be held pointing out that GO bonds would probably be less expensive to the City, but that if the proposal was defeated it would still be necessary to make sewer and water improvements which would then be financed by issuing revenue bonds.

WATER-GENERAL FOODS

The construction of the General Foods plant on the Hazlettville Road had begun. Their immediate need is for water to be used in construction. This will require the extension of a water main west on the Hazlettville Road. On motion of Mr. Mowlds, seconded by Mr. Hayes, Council directed that engineering of the project be completed and bids obtained, and that application for a Federal grant in aid be filed. Following this, any short term financing that would be required could be arranged.

FEDERAL COURT APPLICATIONS

Council has authorized participation by the City in the Federal program of grants in aid for sewage treatment plant, water and sewer lines and other improvements through the Federal agencies of HEW and CFA. On motion of Mr. Hayes, seconded by Mr. Walls, the Mayor and City Clerk were authorized to sign applications for such grants. Formal resolutions are attached as part of these minutes.

KULJIAN ARBITRATION

Council considered the possibility of employing special legal counsel to represent the City in arbitration proceedings between the Kuljian Corporation and the Cityon matters concerning the McKee Run Generating plant. It was pointed out that the first action of such counsel would be to determine whether they considered the City had a case. On motion of Mr. Mowlds, seconded by Mr. Hayes, the Utility Committee was authorized to employ such legal counsel.

HOSE COMPANY ELECTION

Councilman Walls was appointed to replace Councilman Mowlds in the conduct of the nominating election for Fire Chiefs of the Robbins Hose Company, to be held Monday, November 19, 1962.

Council adjourned at 10:40 P.M.

F. Neylan

City Clerk

All ordinances, orders and resolutions adopted by City Council at its meeting of November 14, 1962 are hereby approved.

                                                                                                                                                            

November 16, 1962                                                                             Crawford J. Carroll Mayor