Minutes - 1994 - City Council - 08/16/1994 - Regular EAGLE CITY COUNCIL
EAGLE SEWER BOARD
SPECIAL JOINT MEETING
AUGUST 16, 1994
Subject: City of Eagle and
supply in the City
Those in attendance:
Eagle Sewer District Plans for Water
Mayor Steve Guerber
Eagle City Council:
$~wer Board Members:
Chuck Ferguson.
Public: Bob DeShazo,
Rick Yzaguirre, Stan Bastian, Morgan Masner
Jim Arden, Jim Hill, Jim Gruber, Milt Rose,
Pauline Hinman, Mary Berent, Steve Bradbury,
Dennis Baker, Dan Torfin, Jim Heath.
Discussion included the proposed sale of Eagle Water Co. Members
of the Sewer District said at the onset $1,300,000, later
discussed, was not an offer but just a starting point.
JUB conducted a study in which all assets and liabilities,
including new developments gifted to Eagle Water Co., and value on
depreciation, were taken into consideration. Figures were
discussed which included $2,200,000 in December, 1992 and
$3,700,000 in May of 1993. It was also stated that the PUC can
evaluate the cost from the revenue it generates. Some members did
not feel this method was accurate.
There was a general agreement that judging from the estimate of the
purchase price the rate base would likely triple.
The City owns Lexington and Treasure Valley water systems at this
time and through a recent agreement will be contracting with
General Waterworks to manage the system. The City is in the
position to accept dedications of other systems and contract
similarly. Island Woods Subdivision, Redwood Creek Subdivision as
well as other subdivisions may be City owned.
The general consensuses was that any efforts toward securing Eagle
Water Co. should be abandoned at this time. Any move toward that
end would require the vote of the people, which is unlikely since
the rates would go up, as is estimated tonight. The City and Sewer
District have spent funds on ettorney fees and engineering reports
and do not feel more funds should be allocated toward further
efforts to buy out this company.
Bob DeShazo said his company is solid. He has a new well and will
be drilling another new well or perhaps two new wells later this
~e~r. He borrowed $80,000 from Max and Richard Boesiger to build
~ well and has paid that sum back. The total cost of that well was
$250,000. The newest well runs 2,500 gallons per minute. Any
studies regarding supply of water prior to that well are no longer
valid. Mr. DeShazo said his annual report has not been filed this
year.
The meeting adjourned at 8:15 p.m.