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<br />503 <br /> <br />TUESDAY <br /> <br />DECEMBER 23, 1980 <br /> <br />,- <br /> <br />of William Overman and Associates were selected, respectively, <br />by the City and County to arbitrate a capacity reallocation <br />problem which arose as a result of a provision in the City- <br />County contract which states that when either party exceeds <br />its capacity it could call on the other party to reallocate <br />the capacity. When the City exceeded its 4 MGD capacity, the <br />City called on the County to relinquish part of the County's <br />2 MGD unused capacity and the County refused. <br /> <br />The arbitrators recommended that the City and County drop the reallocation <br />question and immediately proceed with joint interim improvements <br />recommended by Wiley & Wilson's study and thereby provide temporary <br />relief for both parties, and that long-range improvements to increase <br />plant capacity be authorized and completed as soon as possible with the <br />cost shared proportionately between the City and County according to <br />provisions of the contract. <br /> <br />Council voted to accept the arbitrators recommendations and Bob Grant <br />advised Don Edmonds in a letter dated November 24, 1980, that "we <br />concur with their recommendations". <br /> <br />Based on what appeared to be concurrence by all parties to the <br />recommendations of the arbitrators, Council voted, on December 9th <br />to: <br />(I) Accept Wiley & Wilson's proposed interim improvements <br />to expand the plant capacity and eliminate the odor <br />problem; and <br />(2) To proceed with the long-term improvement study. <br /> <br />The City Manager was charged with the responsibility of planning how <br />the City was to pay its share, and he submitted his report tonight. <br /> <br />And now, after all this, we find that County officials feel that <br />joint sewer improvements should be tied into a package with water. <br /> <br />The consultants have priced the interim improvements at $l.l million <br />and the long-term improvements at $3.7 million. The prices are <br />based on December I rates and the consultants advise that every <br />month these prices will appreciate at about l%, about $48,000 per <br />month--close to $60a,000 per year. <br /> <br />Additionally, we have an odor problem and a capacity problem, both <br />of which need to be corrected immediately. <br /> <br />In my opinion, we have three alternatives to get this issue back <br />on track: <br />(I) Reopen the arbitration procedure on the basis that <br />the County appears to be reneging on the arbitration <br />results, and push the point that the City's immediate <br />capacity needs should be satisfied under the provisions <br />of the joint contract. <br />