Greeley Daily Tribune from Greeley, Colorado on March 5, 1976 · Page 1
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Greeley Daily Tribune from Greeley, Colorado · Page 1

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Greeley, Colorado
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Friday, March 5, 1976
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Water board recommends higher tap fees Bv JOHN StfKI Mirvtrn KT_ _ _ . _ · _ . . ^^^ ^ ByJOIINSEELMEYER Tribune Staff Writer Major increases in water lap fees but no increases in quarterly service charges - were recommended by Greeley Water and Sewer Board Thursday. Under (he proposal which goes to city council March 16, the cost of a three- quarter-incii water tap would be increased to 5555, compared with 1175 presently. Other lap feos would be increased by a similar proportion. A four-inch tap, for example, would be increased to $15,750 from the present level of $5,000. No sewer rate increases recommended by the board. Earlier this year, city officials said a 30 per cent increase in water rates and a 20 per cent increase in sewer rates would be necessary to fund improvements in the city's system and to finance operating and maintenance. City Manager Pete Morrell said Thursday rate increases may still be needed, but not now. He called for the water and sewer board to examine rates on an annual basis. Morrell said sewer rates will be examined later this year, after the federal Environmental Protection Agency (EPA) has examined the city's plans for a major new sewage treatment facility. After those plans are complete, Morrell said, city officials will have a clearer idea of their revenue needs to finance construction. At that time, he said, rates can be more realistically adjusted. · The proposal for tap fees to provide new revenue for the water department is based in the philosophy that since new growth causes the need for new facilities, the new taps should carry more of the city's financial load. Using a somewhat complex financial formula, city officials determined thai i3-2i)ths of the city's waterworks ex- Nosey sniffer Boo Boo, an English bulldog who lives in Zanesvillc, Ohio, noses up lo a hunch of new spring arrivals. He loves to sniff flowers and has been known to eat a tender bloom now and then. AP Wirephoto) Firm won't sell Weld supplies By RON TOLLEFSON Tribune Staff Writer A $200,00fl-plus bid package for furnishing the new county services building, which had caused dispute and some 3-2 votes among the county commissioners last week over accepting non-low bids, arose again Monday as a Denver firm refused to do business with the county. Kistler Kwill of Denver, selected as winning bidder last week by the commissioners on three smaller items in the 15-contract package, notified the commissioners that county order for these items would not be accepted. In a letter, Kwill official M. Perry Molcomb charged his firm had been low bidder on seven of the 15 contracts -- and that a lump-sum bid of the firm on 14 of the 15 contracts, at $154,633, was "appreciably lower" than the bids accepted. Those 14 bids accepted by the commissioners had totaled $160,984. Commissioners June Steinmark and Norman Carlson dissented, in 3-2 votes, on four items in the bid competition in which higher-bidding Greeley firms were chosen over Denver bidders. In his letter, Holcomb also charged that an $11,908 winning bid of Nelson's Inside the Tribune (36pages.2sections) Abby 16 Hospital 6 Agri-news 25 Markets 34 Classified 27-34 Obituaries r, Comics 26 Sports 22-25 Crossword 26 Theater 19-21 F.dilorial 4 TV log 26 Heloisc 17 Weather c, Horoscope I I Wm'spgs. 14-17 Today's press run: 19,701 If you have not received your Saturday Tribune by 8 a.m., call 352-0211. Office Supply, Greeley, had been changed from a partial-bid $9,728amount read at the bid opening. Holcomb also charged the $11,908 bid did not cover all the items called for in original specifications. Kwill had bid $13,758. Commissioner Glenn Billings and Mrs. Steinmark later said one type of file originally in the standards had been dropped from specifications for this item. In past bid competitions there has been some dispute among the commissioners over language of the new charter. Charter states local Weld bidders will be given preference when bids "are competitive in price and quality." Some commissioners have interpreted that as granting broad allowances to accepting other-than-low local bids. In his letter, Kolcomb added, "We can understand the principal of "Local Interest Preference' invoked by Ihe commissioners. However, if (his condition is in effect it should be made part of the bid documents. "When bidders are invited to submit bids, conditions and specifications contained in the bid documents should apply equally lo all invited bidders and awards should be made to the lowest bidder meeting the conditions and specificalions." After noting Ihe contract refusal from Kwill, the commissioners awarded the former Kwill items to the next lowest bidder in each case: ashtrays- wastebaskcls, Desks Inc., Denver, $1,446; art work, Desks Inc., $1,204; f u r t h e r art work, Bachman's Inc.. Greeley. $569. Revised total for the services building Today's chuckle 1 Committee chairman- "We slarled with two alternate plans of action and now we have narrowed them down to eight." furnishings comes to $225,967. Absolute low bids on the 15 contracts had totaled $214,529, some $11,400 less. In other action, the commissioners: --Accepted the $6,053 bid of Bachman's, low of two bidders, for Health Department office furniture. -Accepted Ihe $6,010 bid of Halls Signs Inc., low of three bidders, for aluminum road sign blanks. pension project financed through a $7.5 million bond issue in 1*74 is needed to service new growth. New growth must thus provide $396,789 worth of revenue annually in order to pay its own way. A memo prepared by Morrell also notes that $250,000 annually is needed to maintain the city's financial position in bond markets or to provide revenue for possible capital improvements. Using those two figures, Morrell wrote: "Since $396,789 per year is presently needed for new growth to pay its share of the debt service on the now existing facilities and since the city needs at least $250,000 per year to insure the integrity of its water system, the staff deems it logical that new growth should pay the $250,000." The projected revenue figures are based on 450 new taps per year, the average over the past six years. If that figure isn't met, Morrell said, quarterly service charges may be increased. He said the new tap fees are similar to those charged by surrounding cities. Longmont charges $475 for a three- quarter-inch tap, while Boulder charges $850. Fort Collins charges $750. Morrell said studies are needed of the city's water distribution system in order to learn where water pressure is low and where pipes are outmoded. At Ihe same lime, he said, the city should study the feasibility of covering its 23rd Avenue storage reservoirs. Any major construction would necessarily be funded through a bund issue, Morrell said, and that's why the city must be able to meet the requirements of bonding companies. The additional $250,000 annually is needed for that purpose, he said. If bonds weren't sold, he said. Ihe $250.000 annually would build up a water fund surplus which could be used lo finance improvements without a bond issue. ANDTHE GREELEY REPUBLICAN Original Scripl Written by Horace Greeley in 1871 Weekly Tribune Established 1870 VOL. 68, NO. 115 GREELEY, COLORAD080631 FRIDAY, MARCH 5, 1976 Bond refunding studied By JOHN SEELMEYER Tribune Stiff Writer With a possible savings of at least $136,000 at stake, Greeley officials are examining the possibility of refunding three sewer bond issues totaling $2.% million. If it's carried out, the refunding would also benefit local banks which are holding more than $2 million worth of low-paying city bonds. The bonds were purchased by the banks in 1972 and 1975 to finance construction of the east sewage treatment lagoons and the north trunk sewer lines. The bonds pay six per cent interest, the maximum allowed by city charter, but well under that paid on comparable hands at the (imp they w*rp *nld The banks told city officials they purchased the bonds as a public service and asked that the issues be refunded at the earliest possible dates. All commercial banks In the city -with the exception of Weld Colorado Bank, which didn't exist at the time -joined to purchase tl.005 million worth of bonds in 1972. Greeley National, Kirst of Greeley and United Bank purchased $1 million worth of bonds last year. Gary Crabtree of Bosworth, Sullivan and Co., the city's fiscal agent, Wednesday proposed a formula for refinancing the bond issues. Basically, Crabtree's plan calls for the city to sell a new bond Issue. Proceeds from the sale would be'invested in U.S. government securities which pay a higher interest rate than paid by the city on its bonds. The new city bonds would pay somewhat less than six per cent interest, while government securities last week were paying between seven and 7.75 per cent for relatively long-term issues. U.S. Internal Revenue Service regulations allow the city to keep part of the profit it would realize on the "spread" between the bor.t! interest p;M and the interest received on government issues. Bosworth, Sullivan and Co. would take its fee from the part of the spread the IRS doesn't allow the dly'lo keep, Crabtree said. Crabtree said his proposal has several beneficial aspects for the city. First, he said, refunding would Involve a smaller amount of principal borrowed for a shorter number of years than presently involved in the three issues. That means the city can probably gel a better interest rate. Secondly, Crabtree said, refinancing the three issues in a single package would give city officials an opportunity to establish a different repayment schedule if they wish. The present schedule for the three issues calls for annual payments of about $300,000 through 1989. After that time, the payments decline yearly through 1992. Refunding would allow the city to complete "housecleaning" in its financing, particularly regarding the 1972 issue. Those bonds are unrated, second-lien bonds which are less desirable than the A-rate, first-lien bonds iuvoKcJ. ill ilit: uilicl I M U iaaues. The finance committee of city council ' expressed interest in-the proposal"aflrt asked the full council to examine i!. The proposal was also sdiedultd to be presented to (he cily's water board Thursday aflernoon. Crablree said it's possible the refunding plan could extend (o the city's waler bonds, but it's possible refunding of (hose bonds would be more (roubli'somc because of IRS rules. Democrats head for Greeley Some 500 Democratic Party delegates from across the state are slated to converge on the University of Northern Colorado University center Friday evening through Sunday for a state-wide party issues conference. Sessions, open to the public as well as delegates, are scheduled to include remarks from three U.S. Senators, Gov. Richard Lamm, state legislators Including Greeley Sen. Jim Kadlecek, Ally. Gen. J. D. MacFarlane and State Treasurer Sam Brown. Among the 500 will be 18 Weld Democratic delegates plus 10 alternates. Party spokesmen, however, said all conference sessions will be open to the public on a space-available basis. Conference's start-off keynote address, slated for 7 p.m. Friday at the UNC Center, will involve Sen. Dick Clark of Iowa speaking on "American Foreign Policy in the Post-Vietnam World." A reaction panel and discussion groups are scheduled following the address. At 9 a.m. Saturday, Colorado Natural Resources Director Harris Sherman is scheduled to begin a plenary session on the energy issue with an address on "Energy Policy for Colorado." Group discussions will follow until noon. U.S. Sens. Floyd Haskell and Gary Hart of Colorado are slated to speak on "The Washington Scene" during Saturday's conference luncheon. Afternoon will involve further group discussions. Gov. Richard Lamm is to speak on Air Guard cuts felt here The Colorado Air National Guard's 138th Tactical Control Squadron (CRC) based at the Weld County Municipal Airport east of Greeley wili lose a total of 102 positions under cuts announced in Washington, D.C., Thursday. The Air Force announced the tactical air control reorganization that will eliminate l,020activc duty jobs, 1,534 Air National Guard positions and 56 civilian jobs nationally. Reports indicated (hat 97 ANG jobs and five ANG technicians would be cut from Ihe levels now authorized for the 138th TCS In Greeley. The cuts represent an 18 per cent cut in authorized number of technicians and a 38 per cent cut in the authorized strength of the unit. Although 13Wh TCS commander L(. Col. Clifford Baker has not received the officinl word on the number of positions (o be r-liminaled here, he said wire Weather XOHTIIKRN COLORADO - Clear to parlly cloudy Ihrough Saturday. Slowly warming. Highs today 30s. Lows tonight 10 lo 20. Higlis Saturday 4(S and few low "os. Variable winds 5-15 m.p.h. today and tonight. service figures were consistent with earlier proposals. "We have been told thai the culs will be made, and that we will be affected," Baker said. "But we have received no official word on the number of positions lo be cut." He said that the five technicians, civilians working for the ANG, might have an opportunity to transfer to other jobs within the Guard, "but we have no implementation date at this time." The 138th TCS was authorized 28 technicians and 256 guard members, Baker said. "I doubt if the order will affect anyone in (he unit for at least three months," Baker said. "It will probably take that long before the paperwork comes through. Some of the guard members may go on inactive duty or be transferred to other units." Other changes in Colorado units include a loss of 139 ANG jobs at Buckley Air National Guard Base in Denver, along with a loss of nine technicians. Peterson Field in Colorado Springs will pick up 53 ANG Jobs and. add 13 technicians, according to Air Force figures. Weld gets 6-inch snow blanket A storm system began its trek east late,'. Thursday after leaving more than six.' inches of new snow over most of the county. The storm dropped six inches of snow from Tuesday through Thursday, amounting to .45 inches of precipitation, according to official readings of the University of Northern Colorado weather service. The new moisture was welcomed in the dryland areas of the county where dry conditions and recent high winds brought Ihe threat of erosion damage to the wheat crop there. But reports from around the county indicated that from four to six inches of snow fell without the blowing conditions experienced earlier. "The new moisture should come as a shot in the arm for many of the wheat growers and should help native rangcland throughout most of the county," one official reported. Meanwhile, t h e N a t i o n a l Weather Service is calling for clearing to partly cloudy skies through Saturday, with a gradual warming trend. "The Democratic Program for Colorado" during a Saturday evening banquet beginning about 7. Later in the evening, a slate legislative round table discussion is scheduled, moderated by Rep. Douglas Wayland, Denver. Speakers will include House Speaker Ruben Valdez of Denver, House Majority Leader Bob Leon Kirscht of Pueblo and Sen. Jim Kadlecek of Greeley. At a Sunday morning breakfast session, about 9 a.m., MacFarlane and Brown are scheduled to speak on "The Party's Role in Issues." Delegate action on Democratic policy positions is scheduled for the rest of Sunday morning. The speeches by Sen. Clark Friday evening and Senators Haskell and Hart Saturday noon are to be broadcast live by KUNC-FM (91.5). Gov. Lamm's address will be broadcast by KUNC-FM on a tape-delayed basis at 8 p.m. Saturday, and the Sunday morning remarks of MacFarlane and Brown will be broad cast starting at 9 a.m. Honk Brown boosts corporate tax bill DENVER ( U P I ) - Rep. Jack Me Croskey, D-Denver, pained a step toward guaranteed passage uf his corporate income bill, even t h o u g h debate on the measure in the Colorado House was postponed. M i n o r i t y Republicans, who e a r l i e r look a caucus vote against the bill, backed off their position T h u r s d a y after hearing a presentation by Sen. G'.H. "Hank" Brown, the Senate sponsor of tin; bill. The McCroskey-Hrown measure would exempt the firsl $511.000 of corporation profits from any corporate tax. but increase the tax mi profits above the exemption to six per cent All businesses currently pay a flal five per cent tax. Great Western, grower negotiations break off (story page 25) i

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