It was moved by Commissioner Vogt, and seconded by Commissioner Hudson, to excuse Commissioner Terry from the Piqua City Commission Work Session of August 16, 2007. Voice vote, Aye: Vogt, Hudson, Patrizio, and Barhorst. Nay: None. Motion carried unanimously.

Ft. Piqua Hotel Project - Cindy Holtzapple, Finance Director

Presentation by City Manager Enderle and on the City of Piqua issuance and sale of not to exceed $2,400,000 Economic Bond Series 2007 to provide funds for a portion of the costs of an Economic Development Project in the City and declaring an Emergency

Cynthia Holtzapple, Finance Director, explained the need for the emergency ordinance to purchase revenue bonds to complete the Ft. Piqua Hotel Project. The City must make the second half loan of $4,300,000 to the Ft. Piqua Hotel Project. There will shortly be available $1,900,000 from grants and donations so the reason for the issuance of bonds is to pay for the remaining $2,400,000.

Commissioner Vogt asked several questions regarding the funding of the bonds.

Mayor Hudson asked if there have been any major problems so far on the project?

Tom Zechman, Public Works Director, explained the various problems they have encountered so far in the Ft Piqua Hotel Project.

Cynthia Holtzapple explained in order to move forward, we are requesting that we place the $2,400,000 bond ordinance on the next agenda. We need to pass this ordinance at the commission meeting on August 20, 2007, by declaring an emergency and waiving the three reading rule. This will allow for the funds to be available near the end of September when the project funding is required.

Wastewater Proposal - Tom Zechman, Public Works Director

Public Works Director Tom Zechman presented an amendment to Section 51.46 and 51.61 of the Piqua Code, relating to wastewater permit application fees and schedule of charges and fees.

City Manager Enderle gave a brief overview of the need for the wastewater fee increases, citing the EPA 's requirement that the city address the occasional sanitary sewer overflows that occur during wet weather causing the system to discharge a portion of the diluted flow directly to the Great Miami River.
Mr. Zechman stated the last increase in wastewater fees occurred in 1994 and the last major improvement occurred in 1988.

Mr. Zechman explained what tap in fees are and how they are established.

Mr. Zechman explained the wastewater system is facing a major expenditure ($6,000,000) in 2008 and a second major improvement project ($8,000,000) in 2012. The system will need to borrow funds for these projects. The EPA has a funding source by which the city may borrow with a favorable interest rate of 3.25%. The proposed increase in fees is designed to allow the system to continue to provide excellent service to the customer while keeping the city in compliance with federal regulations, in this case, unfunded federal regulations.

Law Director, Stacy Wall, arrived at 4:25 P.M.

There was a discussion of the funding balances, and the City Manager stated he would look at it to see if there is anything else that can be done.

Several other concerns were discussed concerning the wastewater fee increases.

Water Proposal - Tom Zechman, Public Works Director

Public Works Director Tm Zechman presented an amendment to Sections 53.01 and 53.07 of the Piqua Code, relating to Water rates and new service

Mr. Zechman stated the water rates will be increased over the next three years, and are in two different categories- water usage fees and tap in fees.

Mr. Zechman explained the water system is facing a major expenditure ($6,400,000) in 2009 and additional ongoing maintenance and upgrades. The system will need to borrow funds for these projects. The EPA has a funding source by which the city may borrow with favorable interest rates that we intend to utilize. The proposed increase in fees is designed to allow the system to continue to provide excellent service to the customer, upgrade an old but well maintained plant and continue to provide good, safe water to the community in compliance with federal regulations.

There was discussion of various ideas and questions concerning the water rate increase proposal.

Moved by Commissioner Vogt, seconded by Commissioner Patrizio, to adjourn from the Piqua City Commission Work Session at 5:06 P.M. Voice vote, Aye: Hudson, Vogt, Patrizio, and Barhorst. Nay: None. Motion carried unanimously.

_____________________________
THOMAS D. HUDSON, MAYOR

PASSED: ________________________

ATTEST: _________________________
REBECCA J. COOL
CLERK OF COMMISSION