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HomeMy WebLinkAboutBudget/Finance Committee Minutes 01.10.1983M I N U T E S Combined Budget/Finance and . Public Utilities COMMITTEE DATE January 10, 1983 TIME 5:00_p.m. PLACE OF MEETING City Hall A. Members present: Chairman Duane Behm & Lonnie Kellogg Rob Harris, Paul Gjefle, Don Cahill, Sue Carter, Bob Gauthier, Chip Watts, A er r is on ac mann B. Other's present: Marvin Carter, Joe. Bradley A quorum (3 or more) present the following action was taken by the committee: This meeting was held to discuss the Summons received January 8, 1983, regarding a complaint filed by Metro Broadcasting, Inc. (George Fox - Village Subdivision) about the $500.00 sewer hook--up fee. Joe Bradley I wanted to show-you-the suit which has been brought by Fox -- Village Subdivision. Basically, he is just claiming that the City doesn't have any statutory power to charge this $500 fee. He is the only one involved, so he is asking for a refund of only what has been paid in. Even if he won this case it doesn't automatically mean that everything else would have to be refunded. Just on the contingency that this .$15,000 may have to get paid pack to him, you might want to start consider- ing how this will effect the sewer plant and what changes in the rates might have to be made.. I don't know.what our chances of winning this are right now, but what he is asking is the $15,000 back and not have to pay any in the future, and we couldn't enforce this against anybody in the future if he wins. So we won't have any more money coming in, but what is in there wouldn't have to be refunded, because the other people who have paid didn't bring suit. So that may effect the plans you have for the sewer plant. So I suggest that you bring this to the attention of HKM, because maybe they are going to have to revise their rate projections on the contingency that Fox wins on this suit. He hasn't, right now,, asked for an injunction preventing collection of the fee while the suit is going on, so I think we can still collect it if he wants to get something hooked up. But, I notice he asked.that question towards the end (Interrogatory No. 8): Please state whether or not the City of Laurel will continue to require the payment of a $500.00 fee prior to allowing the con- struction of improvements on each of the lots of Village Subdi- vision, First Filing. We will probably answer yes to that.' So as it stands I don't see anything that prevents us from collecting it right now, because he hasn't asked the court to prevent it. There was discussion about the City of Laurel establishing the hook-up fee before sewer utilities came under the PSC. page 2 January 10, 1983 • Joe Bradley They may have wanted us to file it even though it would have automatically been approved. If that's the only thing wrong, then we can file it. We might have to refund his $15,000, but we can file it now. Lonnie Kellogg If it goes to court and we have to return the 15,000 can these other people come back on us then - Cherry Hills II, etc.? Joe Bradley It depends on the statute of limitations of how long ago they paid.it. They could, unless it's been too long since they paid it. There is also a question if we even have to refund this. I think this could be considered like a tax, and if you ask for taxes back you usually have to pay them under protest. They haven't been doing that under this situation. But I can't say for sure right now if this applies to this situation. It's an argument we can make. A question was asked, "When do we go to court?" We are given 20 days to file our answer and once we file our answer, then you send interrogatories back and forth. I think even if he were to ask for a court date now I think it would be 4 to 5 months. This kind of case is usually decided without a trial. It's usually just a summary judgement and the court looks at the law-and decides whether we have the power to do this or not. Because there is no dispute on the facts here. We know we have an ordinance, and we have been charging it, and they are not disputing that. So there isn't anything for a judge to decide at a trial. Discussion. The clerk reported that he was in contact with PSC and requested that they send. us a copy of what we have on file with them. The clerk presented a copy of Ordinance No. 598 passed September 19, 1972, setting the hook-up fee at $200.00; Resolution No. 1628 passed August 2, 1977, changing the hook-up fee to $500, etc.; and Ordinance No. 650 adopting a revision and codification of the ordinances of the City of Laurel, passed June 20, 1978. In 1977 the legislature tried putting the sewer utilities under the PSC, but it was defeated. However, the 1979 legislature was successful in doing this, and the effective date was possibly October 1, 1979. Discussion. Joe Bradley I did want to mention something else, and this is . particularly for the Budget/Finance Committee. It's hard for me to do this. I know I heard you, Albert, say that you don't want to get a lawyer involved in anything because they just want to take everything in your pocket. Maybe that's what this is going to sound like, but usually in a situation like this where the City is sued, or the County, they contract with outside counsel to represent them. page 3 January 10, 1983 It's not usually part of the City Attorney's duties to defend suits against the Council. The City Attorney advises the Council and prosecutes violations of the ordinances. But suit defenses are different and it's not usually part of the duties. I could do it, but I would have to bill you for time involved. It's your choice. The other one in town, Larry Herman, might be a good choice to consider because he was around when this was passed and he might have more knowledge about it. For any other lawyer you get, we would have to set our own agreement for what- ever services would be charged. And.I could always work with him and you wouldn't pay me any extra. So that's one thing you should consider. Discussion. Motion by Lonnie Kellogg to recommend that the City of Laurel hire Larry Herman as counsel for this suit, seconded by Bob Gauthier. Carried by a vote of the Budget/Finance Committee. Discussion. Duane Behm will contact Larry Herman regarding the fee, etc. Discussion. Meeting adjourned at 5:45 p.m. pectfully submitted, Donald L. Hackmann City Clerk 0