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1966 02 081069 COUNCIL MEETING REGULAR SESSION -8:00 P.M.-City Hall February 8,1966 The City Council met in regular session with the meeting called to order by Mayor Stadshaug.Councilmen present were:Gordon Ebbert,Monte Holm,Otto Skaug,Jack Eng,Forrest Hardin,and John Jones. The minutes of the last regular Council meeting of January 25, 1966,were approved by the Council as written. BILLS were audited by the Council.Motion by Hardin,seconded by Eng,that the bills be approved and warrants written. Motion carried. CURRENT EXPENSE -Total Amount Paid $5,255.56 EQUIPMENT RENTAL -Total Amount Paid 4,090.33 LIBRARY -Total Amount Paid 900.13 PARK AND RECREATION -Total Amount Paid 948.09 STREET -Total Amount Paid 4,267.07 WATER AND SEWER -Total Amount Paid 5,104.15 SANITATION -Total Amount Paid 4,754.9 5 TOTAL $25,320.28 SPECIAL BILLS The following special bills were read: ARTERIAL STREET Walt Alloway Release of retainage Marina Drive railroad crossing construction $137.65 Motion by Holm,seconded by Skaug,that the special bill from the Arterial Street Fund be paid.Motion carried. 1965 WATER AND SFWER BOND CONSTRUCTION FUND Floyd O.Swenson Monthly construction estimate #5 $27,078.92 Motion by Hardin,seconded by Jones,that the special bill from the 1965 Water and Sewer Bond Construction Fund be paid.Motion carried. Warrants No.10,444 through 10,507 for $52,536.85 have been approved for payment this 8th day of February,1966. RECOGNITION OF BOY SCOUT PARTICIPATION Mayor Stadshaug welcomed the members of the various Boy Scout Troops in the area to the meeting.As part of the observance of National Boy Scout Week members of the Troops participated in city government for the day.Mayor Stadshaug introduced the acting Mayor,Councilmen,and department heads. BID AWARD -SEWER RODDER p.\I A letter from Public Works Director Pat Nevins recommending V that the only bid received from Flexible Pipe Tool Company of Spokane be accepted,was read.Mr.Nevins explained to the Council that this piece of equipment is being used in several communities in the area and that the service has been more than adequate.The purchase of this equipment was provided for in the 1966 Budget and it was noted that the bid was $730.69 below the engineer's estimate,as well as below the amount budgeted. February 8, 1966 1070 Motion by Hardin,seconded by Ebbert,that the bid of Flexible Tool Company of Spokane of $4,302.17 for a sewer rodder be accepted.Motion carried. ORDINANCE -PROVIDING TAX ON PETROLEUM HEATING FUELS -1ST READING An ordinance amending Section 5 of Ordinance No.153 as amended by Ordinance No. 388, 420 and 541 which ordinance is entitled "An ordinance relating to and providing for a license or occupation tax upon certain businesses,occupa tions,pursuits and privileges,fixing the amount of license or occupation tax therefor,providing for the collection thereof and providing penalties for the violation of this act" by providing for the licensing or taxing of petroleum fuels for use in combustion devices other than motor vehicles, was read. City Manager Chester L.Waggener,explained to the Council that in order to put the utilities on a comparative tax structure a 3%tax on oil dealers has been suggested.At the present time the city utilities,telephone,TV cable, electric company, and the natural gas company are paying a 5%utility tax.The 3% has been proposed because of the 2% differential in the state tax on utilities. Mr.Marshall Burress representing the independent oil dealers appeared.He explained to the Council that in the past sev eral years this issue has come up in a number of communities throughout the state. He felt that as only six have adopted a tax on the oil dealers,that most communities saw little value in the proposal.Mr.Burress went on to say that the oil dealers do not consider their product as a utility and therefore the utility tax would be unfair and discriminatory. Mr.Burress read a portion of a letter directed to the Council- men of College Place explaining that the oil dealers are not protected by covenants,there are no franchises or mono polies.It further stated that the dealers operate as small businessmen who must remain competitive because they have no monopolies. Mr.Burress pointed out that heat is not a luxury,but a necessity and should not be classified in a luxury category. The oil dealers according to Mr.Burress pay the same taxes as a utility plus a business and occupation tax and a city business license and therefore feel that they are paying their fair share.He again stressed that they sell a commodity and therefore should not be classed as a utility. Mr.John C. T.Conte,Jr.,Secretary of Cascade Natural Gas, pointed out to the Council that College Place has seen fit to pass a utility tax on the oil dealers.He went on to say that the proposed tax would not be on the dealers but would be borne by the consumer. Mr.Burress pointed out that the oil dealers are not guar anteed a return.He further stated that the Council in College Place is taking a second look at their tax on oil dealers and a petition for revision has been presented. He further felt that this tax would encourage fringe area development in our city. In order to keep from having to pay the tax businesses would locate just outside the city limits. Mr.Larry Peterson,representing the PUD,stated that he felt that the tax on heating energies is a fair one. 1071 February 8,1966 Mr.Conte pointed out that Moses Lake is in the top ten with the 5%utility tax.He indicated that in Yakima a limit has been placed on the amount of tax which can be billed to any one customer in one month.In this manner each business would know the maximum amount they would be expected to pay for that period.He suggested that if the city forsees a problem of this nature in the future, that it should consider setting a limitation on the amount of tax to be paid by any individual business in Moses Lake. Mr.Joe Fisher of Basin Oil Company felt that any business having a franchise in Moses Lake should pay a good healthy tax,but again pointed out that no one oil dealer has a franchise. Mr.Jim Abrams of Abrams Distributing asked if it was felt that the additional tax burden put on the oil dealers, the total income derived and the policing it would involve, would make the tax worthwhile.He also pointed out that the small businessmen do not have accounting machines and systems which would enable them to make these additional charges on city customers only without increased time and labor involved in doing the work by hand. Mr.Ebbert inquired how much it would cost the businessman per month to add this additional tax to their city billings. Mr.Burress indicated that for his firm he felt it would mean an additional $100.00 per month for the costs involved in billing the 3%tax. Mr.Conte pointed out to the Council and members of the audience that no utility is guaranteed a profit,but they are regulated by the Utilities Commission and if their margin of profit is too high they are forced to reduce their rates. Mr.Burress reiterated his previous statement about the tax being unfair and discriminatory.He also felt that the oil dealers should have been contacted individually on this item and they had not been. Motion by Holm,seconded by Skaug,that the Council not adopt the ordinance. Mr.Jones pointed out to Mr.Burress that over a month ago this ordinance was presented to the Council for its first reading.At that time it was tabled so that two councilmen who were absent could be made aware of the situation and to enable the oil dealers affected by the ordinance an opportunity to be heard. It was asked what the total income to the city from this tax would be. Mr.Burress indicated that his calculation put the figure at around $5,000 per year. Mr.Waggener pointed out that the city is supporting an initia tive for a share of the state sales tax.He questioned the feasibility of this move if every available source of income in the city has not been explored. Mr.Hardin stated that he did not feel that he wanted to make a decision on the matter at this meeting and he felt he would have to vote "no"on the motion on the floor if the question was called for. Mr.Jones concurred with Mr.Hardin. Motion by Skaug,seconded by Ebbert,to table the matter for further study on the part of the Council. Motion carried. February 8, 1966 1072 RESOLUTION NO.388 -PRESENTATION AND RESOLUTION FOR ALLOCATION OF AN ADDITIONAL POSITION IN THE WATER AND SEWER DIVISION A letter from Pat Nevins Public Works Director explaining the need for an additional man in the Water and Sewer Division was read. /d/o Mr.Nevins explained that with the original commitment to Pronto to treat wastes he felt that his present staff would be able to handle the load.However,since the initial out put expected from Pronto has doubled he feels justification for the hiring of an additional maintenance man. d that the original contract with eatment of 190 tons of waste product taking in 350 tons per day.The plant r a city of 50,000 at the present time imately 28,000 was anticipated.Mr. at a letter has been sent to Pronto ity feels that the original contract included a billing for additional nal monthly billing of $1,760 in an ly $7,800.The additional amount dditional labor,chemicals and so on. dditional maintenance man would be s to Pronto. Mr.Waggener indicate Pronto was for the tr and the plant is now is treating sewage fo when a load of approx Waggener indicated th indicating that the c is void.The letter costs above the origi amount of approximate covered the cost of a The salary for this a covered in the charge Motion by Ebbert,seconded by Holm,to adopt the resolution providing for additional maintenance help in the Water and Sewer Department.Motion carried. Mr.Hardin indicated that he had been told that the plant would be doing much less processing from May to July.He wanted to know if this would enable the treatment plant time to get up. Mr.Waggener indicated that the sewage treatment plant would be over its capacity and that increased production would start again in July. Meeting adjourned. ATTEST: vU<Ja^IA Sandra K.Deese City Clerk *u Harold Mayor