HomeMy WebLinkAbout77 0705 minPLAINVIEW CITY COUNCIL SPECIAL MEETING
July 5, 1977
CITY COUNCIL MINUTES
Holiday Inn Meeting Room
ll:O0 A. M.
The City Council of the City of Plainview met in a special session at ll:O0 a.m.,
in the Meeting Room of the Holiday Inn Motel with Mayor J. Robert Wayland presiding and
the following Councilmen present: Jeane Browning-Place One; Medlin Carpenter-Place Two;
Lloyd Woods-Place Three; Tom Almon-Place Four; Wm. SoRelle-Place Five.
Also present were City Staff: Marshall Pharr-City Manager, Bruce Byron-Administrative
Assistant, Joe Sharp-City Attorney and Wm. Hogge-Director of Public Works.
Also present were the following visitors: Gary Ott-Plainview Daily Herald, Ray Rampy-
ERA, INCORPORATED, Karson Bivens-FnHA, J.B. Wheeler-Hale County State Bank and Charles
Bechtold.
The luncheon meeting opened with a presentation by J.B. Wheeler-President of the Hale
County State Bank who detailed the reasons for their inability to finance ERA, Inc. in their
project to build a 'Sewage Treatment Plant for the City of Plainview. Mr. Wheeler
explained that because of the financial structure of the company with debts exceeding
assets, there was no liquidaty with which to guarantee the 10% of the 1.6 million dollar
loan that will be required~tbat was not guaranteed by FnHA. In addition, the bank could
not assume a loan that it did not have a first lien, Since the City of Plainview was
guaranteed first lien on all property of any value in this program, the bank would have no
guarantee for the unsecured part of the lo.an.
Ray Rampy spoke saying that he wanted the City to relinquish ownership of the Plant site,
so that they would have something with which the bank could have a lien on in order to
provide financing for the project.
Joe Sharp said that he would not recommend any changes to the contract.
There followed a thirty minute discussion of various alternatives that would allow
~- the City to maintain it's current contractual position with ERA, Inc. and still allow a
situation that would be financa, ble. The City Council therefore agreed to give ERA, Inc.
90 days in which to obtain financing. The end date for this being 1 October 1977.
July 5, 1977
ll:O0 A. M.
CITY COUNCIL MINUTES
Joe Sharp recommended that we prepare the necessary documents so that at the end of
this period, if necessary, the city would be able to advertise for proposals allowing the
City to contract with a farmer to build a pipeline and use the water for irrigation. It was
stated by Medlin Carpenter and Jeane Browning that this was our only feasible alternative
if a contract could not be financed with ERA, Inc.
There being no further business, the meeting was adjourned.
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