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Regular City Council Meeting <br />June 16, 2003 <br />Page 10 <br /> <br />service you want. Do you want the entity to do the billing, maintenance and <br />repair of the lines, operate the water plant or operate the sewer plant. Attorney <br />Schenk said that you want to get proposals on the level of service that you are <br />expecting. Keep in mind that the companies prepare these RFPs as a reality in <br />the prospect of making a contractual award. City Attorney Schenk said he was <br />suggesting that they not get a proposal from OMI. He thought it would be <br />prudent for the city to create their own based on the experience of other cities as <br />well as suggestions from some of the entities that have privatized. Mr. Schenk <br />said in it is important to have input from this Council as to what kinds of service <br />they want to privatize. <br /> <br />Mr. Stowe advised that it does not hurt to look at options and they have done <br />RFPs for privatizing O&M operations before; but if the city does this, give your <br />staff an opportunity to compete. They need to have the opportunity to bid also. <br />He said if you look at the City's 4 ½% debt that they can issue at and you look <br />at the fact that you do not pay 35% federal income taxes and for these people to <br />able to make that debt cost is around 6 ½% to 7% and their return on equity is <br />about 10% to 12%, and to cover the taxes and find $500,000.00, he can't wait to <br />read those proposals. <br /> <br />Councilman Bell said they are willing to come to us and say they can do that and <br />if they can, where is our cut? This item was placed on the agenda before Mr. <br />Campbell was allowed to come forward and address the item brought up by Mr. <br />Plata and his committee. <br /> <br />Mayor Fendley announced that the City Council would move forward to Item No. <br />3.B (1), staff reports; Agenda Item No. 3.B. (2); and Agenda Item No. 3.B. (3) <br />other related information. <br /> <br />Gene Anderson, Director of Finance, came stating that he had some information <br />that would be considered historical that would give council some perspective. <br />Mr. Anderson said he went back and extracted some data of a cool weather <br />month (March) and a hot weather month (August) to try to put the size of our <br />water bill in perspective because of anyone sitting around the coffee shop or any <br /> <br /> <br />