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Wednesday, June 21976 Page 3 Continued from page 1 . i ' -'J I M Up ? ' ft fS I!- '!! A backers of the new facility claim this is one of the lowest rates in the state and that the $750 fee (ud from $350) for new connections will pay the lion's share of the bond debt. Public Meeting At a public meeting held last Wednesday night at Park High, approximately 35 people listened to and directed questions at the sewer board, the bonding agent and the project engineer. Dick "Christensen of the Burrows and Smith bonding agency told the audien-ce,"Whenever audien-ce,"Whenever a municipal entity undertakes a large-scale large-scale project, it either has the money, which is very seldom, or it borrows through the sale of bonds." Christensen said his company considered revenue bonds? ("general obligation bondi combination-of 4he two and even the creation of a special improvement district to finance the sewer system. General obligation bonds were found to be best suited for the needs of the district, ho said. After explaining that revenue bonds are guaranteed, guaran-teed, by the revenues generated by the project and that G.O. bonds are secured by the taxing power of the district, Christensen declared G.O. bonds to be "cheaper" and "more flexible." He added that G.O. bonds can be sold without the "strings and requirements" inherent to revenue bonds. The bonding agent said the sale of revenue bonds would mean a $6.75 monthly service charge as opposed to the $5.00 charge anticipated under G.O. bonds, Growth projections used in formulating the financing of the district were called "conservative" by Christensen. He said there is no intent to levy any taxes to service the debt and that revenues accruing to the district should be more than sufficient to pay the interest and principal on the bonds. "Can't Avoid Costs" If the bond election is defeated, Park City will still be faced with additional sewer costs, Christensen asserted. He said the existing treatment plant is over InaHoH anrl that no federal funds would be available to remedy the situation. If the city did manage to finance expansion, it would probably require, higher : monthly service charges than the proposed system, he added. "The sewer district does not solve everybody's problems... but is seems to be the best package than can be put together today," Christian observed. He noted that other regional treatment projects are charging from $7.00 to $9.00 per month for service. Terms The $1.1 million bond debt would be repaid over a 25-year 25-year period at an estimated seven and a quarter percent interest rate. The actual rate will be determined by competitive bidding at the time of the bond sale. Foroier Park City Coun-cilwoman Coun-cilwoman Mary Lehmer Sower Bond Decision This Tuesday Bond agency representative Dick Chris noted that the interest rate for special improvement district bonds was raised after their sale and said there is no guarantee that the rates for the sewer bonds will not be higher than seven and a quarter percent. She added that this could mean higher monthly charges. "If we're way off on the interest rate, this could be a problem, "Christensen answered, an-swered, "but we've handled many of these bond issues and I don't think we're far off." :; Obligations The district would have three major obligations for the allocation of revenues. The first priority would be the operation and maintenance main-tenance of the sewer system. This has been calculated at $70,000 annually. i Revenues- in-excess- ok the: -M .and G expenses would than be used to pay the bond' indebtedness in-debtedness incurred by Park City eleven years ago to upgrade its sewer system at that time. The payment of principale and interest as the bonds become due would be the third major priority. - Incompatible? - Mrs. Lehmer also raised questions as to the possibility of damage to the main sewer line due to shifting soil along the proposed route. She referred to statements made in this vein by Summit County Planner Max Greenhalgh. Project engineer Larry Bledsole of Call Engineering said construction would be more difficult and costly due to soil conditions but thats it's a problem that "can be licked." , He added that the extra expense that will be incurred due to soil conditions have been built into cost projections. projec-tions. No Overruns When asked whether operating and maintenance expenses might not exceed projections, sewer board member Judge James Kilby responded, "We don't expect cost overruns like the Bl bomber. I think we've done a better job than the Pentagon." Pen-tagon." ,": . v Saying the absence of error can never be guaranteed, Kilby added, "Basically, we've done our homework." ' Regarding the $70,000 annual operating and maintenance figure, the judge said he felt confident it is correct. "We've , gone , over it a thousand times." Also concerning operating costs, Christensen noted that, a five percent inflation factor was included in the yearly estimates. What Percent? Local realtor Harry Reed asked what percent of the district's sewer fees are expected to come from Park City. - . .,v .- ... County Commissioner, and sewer board member Mel Flinders responded . that initally more than 90 percent would be paid by Park City residents but that the system was . being provided to Snyderville due to anticipated an-ticipated growth in that area, area. x Reed then inquired as to lensen why two members of the five- man board are from the Snyderville area. Flinders replied that composition of the board was agreed to by the Park City Council in office at the time of the district's inception. Penalties Former Park City mayor John Price asked what penalties the EPA could exact from the city for operating a substandard treatment plan t . The existing city plant does not meet EPA requirements but that agency has not been : pressuring the city due to its involvement in the Snyderville Snyder-ville District. Bledsole told the audience that the maximum penalty is $10,000 per day. He added that in Jackson Hole, Wyo., the state imposed a building - moratorium until a new facility- - was constructed to replace a substandard .plant. Price also mentioned that civil penalties might be sought by downstream users of water earring substandard effluent. Kilby said a civil suit in , Michigan dealing with such a situation is "being watched very carefully", and he predicted damages will be awarded to the downstream .users. Flinders added that the Weber-Davis water authority has been keeping close tabs on Park . City's water quality and sewer district progress. i Capacity . Engineer Bledsole explained ex-plained that the treatment plant lines have been designed to handle a maximum population of 30,000 people and that the plant itself has been designed in two stages. The first stage would be capable of handling 15,000 users and if the second stage is . needed it would double that capacity. Only the first stage would be financed by the bond issue. New Connections One hundred new sewer connections per year have .been projected by the district. When asked what the consequences would be if the county zoned land so the anticipated developments could not occur, Kilby responded that the "puffing" of real estate projections has been eliminated and that if a developemnt such as the one proposed for the Hi-Ute Ranch (which would entail 3,000 connections) came to be,-the sewer district would be in an extremely secure position. Switch It was originally intended that the district be financed through revenue bonds but a switch to G.O. bonds was . made on the advice of Burrows and Smith. Conceding that the change had caused considerable concern Flinders said,"It's still a palatable situation." "We don't want it to be said that we talked one thing and did another," he added. Again stressing that new connection' fees would account ac-count for the majority of the facility's cost, Flinders said the treatment plant would insure the continuance of "high land values." Addressing himself to increased service charge complaints, the commissioner com-missioner asserted that one new sewer system in Utahjs "talking about $15 to $20 a month service fees." Apprehension ' Park City Councilman and sewer board member Jack Green said he was originally apprehensive over another , bond issue but that after considering the alternatives he has concluded that "we have none." Green said $8-$10 a month , service fees are probable if. the city expands its present system and he then asked the audience to support the bond election. Kilby said that "untold hours" have been spent on the sewer project and that everyone will vote "according "ac-cording to their own par- " ticular circimstance." Burnis Watts, Park City' Planning Commission chairman and board member, mem-ber, cited the availability of EPA funds and the burden to be carried by new construction. con-struction. "We're back on the road to progress and the sewer district is another step in that direction," Watts said. "It's ; the right thing to do." i f Voting ' Voting will take place Tuesday, June 8, from 7 a.m. to 8 p.m. in the. Memorial Building and is open to all registered voters within the sewer district. , . ..''I' ll Art Festival Committee Grants Concessions Local restaurant and bar principals heading up the Art Festival's food and beverage committee have limited Art Festival concessions to seven local non-profit organizations: the Park City Volunteer Fire Department, Benevolent & Protective Order of Elks, Park City High School Booster Club, Park City Ski Club, St. Mary's Catholic Church, Park City Community Church and the Park City Rugby Team. Announcements were previously made to all local non-profit groups interested in participating in this year's annual event. Locations for concessions and fast food menus during the Aug. 14-15 event will be determined so as not to conflict with established Main Street restaurants and taverns and allow festival goers a pleasing variety of fast foods and cool refreshments, refresh-ments, according to Festival manager Joan Seman. "Low rates are a big reason we're the largest homeinsurer. Dutthere are more..?' Low rates wouldn't mean much without our first-class first-class service. Drop by, or give me a call. Tom Llgare Silver King Bank 649-9161 649-8441 Like a good neighbor, State farm is there. SMTI lM llllUMNCI STATE FARM FIRE AND CASUALTY COMPANY Home Office: Bloomington, Illinois I Crime At Crescent , Ridge Park City Police Chief Thayle Lund reported Monday that officers investigated in-vestigated 17 criminal trespasses in Cresent Ridge condominiums Thursday morning. In every case, doors to the units had been pried open, and amazingly, in every case nothing was found to be missing. : The trepasser, identified as a male, was discovered by maids entering one of the .condominiums. The man 'yelled, at the maids, the maids ran and the man escaped before police arrived on the scene. 1 Q 1m fi II ' 111 BH In Park City it'sThe nn Ml 3vir. -jnj. . zvsn I if i " i' u I I l i ki w if i r ' rv - -..J -J' .J . liouiwrtl 1 r II II II ii 11 nJ Performances Friday, Saturday & Sunday COVER CHARGE ALL THREE NIGHTS $1.00 Sunday Pitchers of Beer $ 1 .00 Coming Juno 18th & 19th doing Two Shows Nightly MOSE ALLISON C'e$t Bon Entertainment Lounge on the second floor at the C'est Bon Hotel, Park City. 5 V2-k3Cal tor Reservations sar k Y i mi TO We're Open Again Eat Outdoors on our Remodeled Patio Breakfast served until 2:00 p.m. Reasonable lunches and family dinners. Featuring the best omelettes this side of Poison Creek. 317 Main Street APPEARING THIS WEEK The C'est Bon Entertainment Lounge proudly presents the return of Tift Wbsir Uwv WirnimgDdirs welcome to ADOLPH'S WHITE HAUS RESTAURANT 3RD ANNUAL OPENING PARTY Juno 4th 1 976 o 7:30 p.m. oComo and have Fun MENU ASSORTED SALADS Tosses Green, Tomato, Fresh Fruit, Cucumber your choice of dressing SPECIALITY OF THE HOUSE "ROSETTI dl MANZO LA STRADA" served with buttered noodles and assorted fresh vegetables DESSERT "SPUMAdl CIOCCOLATETOBLERONE" MINCLUDING "TUTTI VINO DEL LA CASA MIA YOU CAN DRIN.K!!! BILL OF FARE $7.75 per person ALL ITEMS SERVED AT TABLE PLUS TAX AND GRATUITY 649-8660 Free Shuttle Service Park aub.. Ham unv . . ri : 1 . MENT 649-8284 BE l! as?