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MINUTES OF THE UPPER STILLHOUSE CREEK SEWER SERVICE COMMITTEE November 24, 1987 The Committee for the Upper Stillhouse Creek Sewer Service met November 24, 1987, 5:15 P. M., City Council Room, City Hall. Chairman Curtis Fendley called the meeting to order with the following members present: Councilman Eric Clifford, and Councilman Bill Bone. Also present was City Manager, Michael E. Malone, City Engineer, Earl Smith, Director of Finance, W. E. Anderson, and City Clerk, Mattie Cunningham. Chairman Fendley announced that the first item on the agenda was discussion and recommendation concerning sanitary sewer improvements in Upper Stillhouse Creek drainage area, bonds or warrants. City Manager Malone presented a memo from City Attorney Haynes regarding financing for Water and Sewer Reconstruction and extension as follows: "I visited with Mr. Bob Day of Rauscher Pierce Refsnes, Inc., who has acted as financial advisor and bond placement agent for the City of Paris for many years, and with Peter Tart of McCall, Parkhurst& Horton, who has acted as bond counsel for the City of Paris for many years, and have reached the following conclusions: 1. That the minimum water and sewer bond issue is $2,000,000.00, due to the fact that below $2,000,000.00 insurance coverage would not be available and your rate would not be the best obtainable. 2. The maximum amount should be $5,000,000.00 due to the fact that when it is exceeded, there is more stringent arbitrage penalties and if you exceed $10,000,000.00 the issue will lose its attractiveness to bank purchasers. 3. The amount of the issue should not exceed the amount that you plan to expend within a 3 year period unless it is necessary in order to get above the $2,000,000.00 minimum. 4. The water and sewer rate study should consider additional levels of financing so that the rate may be adjusted if additional levels of financing are required." Discussion was had regarding continuous repairs to our sewer system plus the need for new and additional sewer systems. Councilman Clifford stated that if we do not continue with the Stillhouse Creek Project we will end up with two or three lift station to maintain which will be pumped up to Loop 286 to a 12 inch line which is already loaded, and we will be back where we are now. That if the Upper Stillhouse Creek Project is built we would be adding to our present system, and leaving some of the existing system which is adequate for sometime if we do not continue to add to it. This might be a good time to go ahead and make arrangement for extensive repairs along with adding a new system.