Monday City Council meeting could finalize PERC negotiations

May 02, 2008
Santa Paula City Council

The City Council will meet Monday to consider finalizing the contract for the new wastewater treatment plant and try to catch up with some old business.

By Peggy KellySanta Paula TimesThe City Council will meet Monday to consider finalizing the contract for the new wastewater treatment plant and try to catch up with some old business.The Council, acting as Redevelopment Agency Directors, will meet at 6:15 p.m. for a closed session to discuss a property negotiation before reconvening in open session at 6:30 p.m.The Council meeting - which will be televised live on Time Warner Cable Channel 10 and replayed later - will feature several presentations before the Council decides on various Consent Calendar issues.Business includes the Fiscal Impact Analysis of the proposed Limoneira Co. East Area 1 project and the Council will be asked to adopt a resolution in support of the development’s Measure G to be decided by voters in June.City co-sponsorship of the Citrus Classic Balloon Festival and a report on budget preparation, Council goals and priority projects are also agenized.Finalization of the contract between the city and PERC will be considered by the Council, which in recent weeks has been sparring over the deal.
The cost-conscious Council will have had time to study a Council debated letter submitted by PERC at the April 28 special meeting that details potential cost savings and impacts to the start of construction if alternative financing - municipal bonds - is sought.PERC’s letter noted that its smaller footprint design creates 5 acres of available land that can either be sold or utilized by the city for alternate uses and that the city can commit sewer funds toward plant capital costs to reduce the amount of financing included in the capital charge.As a result of PERC offering to expand the facility from 3.4 million gallons a day to 4.2 MGD at no additional cost to the city, PERC suggested that the city utilize “this excess capacity to negotiate and raise funds from development in advance of developers requiring such capacity...”PERC notes that developers “might have an interest in buying capacity at a discount to the current development impact fees charged by the city.”Although looking at savings, PERC’s letter does warn that if the city veers away from letting Alinda finance the project it “will result in a higher pricing structure” for the design/build of the project and could delay in the commencement of construction.City Hall is located at 970 E. Ventura St.



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