Minutes 09/25/1984 - Laserfiche WebLink

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September 28, 1984 84-368 The following letter from the City Manager was presented: "As you are aware, we are under Federal mandate to upgrade the Pinners Point Sewage Treat merit Plant. We have had extensive dialogue on this topic and have provided you with staff reports and briefings addressing possible alternatives. Even though the scope of plausible alternatives has been quite limited, we have continued to pursue this matter as you requested. One of the alternatives that we have pursued is the possibility of selling or transferrin the treatment plant to Hampton Roads Sanitation District (HRSD). The HRSD study of this optiol in 1973 concluded that acquisition of the Portsmouth facilities by HRSD, "...would be more of a liability than an asset." Nevertheless, I have approached Jim Borberg, Executive Manager of HRSD, concerning this possiblity, andcon September 17th, I discussed this subject with him more extensively. At my invitation, he visited my office and met with Roy Cherry, Jim Spacek, and me. As~a result of this meeting, Mr. Borberg agreed that if requested by Portsmouth, we would recommend to our respective governing bodies that this alternative be reviewed again, and from the standpoint of HRSD, that it be based on a broader perspective than previmusly considered. We are greatly encouraged about this possibility; however, there are substantial obstacle that would need to be resolved in order for this option to result in a successful outcome, and time is becoming a very limiting factor. To pursue this alternative, both HRSD and PortsmouthI will need to have more information than is p~esenZly available. If we request further study, Mr, Borberg has agreed to recommend to his Commissioners that he~be authorized to have a study done to review the engineering alternatives of HRSD's taking over our sewage treatment as well as the economic implications for HRSD. To purse this option, we would also need a study to be done which would investigate the economic impact on us. Even with all the inherent caveats, I believe this option should be pursued and recommend that the Council authorize me to have ou~ necessary study done and request HRSD also to study the mat~er. I have discussed this matter with the Municipal Finance Commission and they have endorsed this recommendation. If Council so authorizes, it is my intention to have our independent auditors conduct this study. Pre- liminary discussion with them indicates that it can be completed for less than $10,000 and, consequently, we can authorize them to proceed without the delay of competitive procurement. As this alternative is pursued, my objective will continue to be threefold: 1) to insure the lowest possible utility rates for our citizens; 2) to minimize the cost of operations and maintenance in the Public Utilities Fund; and, 3) protect the rate of return in the General Fund which is derived from our public utilities. I recommend that you authorize me to pursue this alternative further and to proceed with the~%e~ar~ study." Motion of Mr. Beamer and seconded by Mrs. Webb, that authorization be granted for the City Manager to pursue a study which would determine the economic impact of the sale of the City's sewage treatment system to HRSD, and was adopted by unanimous vote. Cnu~cilman Beamer requested the City Manager to investigate the~mm~al sign on the buildin located at the corner of High and Effingham Streets. On motion meeting adjourned. APPROVED - ~.~I~ City Clerk