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HomeMy WebLinkAbout19450205_SPECIAL30 UrINlXCZS OF TEIE SPECIAL KEETIICG OP TEE EDIXA VIIXAGE CO~~CIE, XEBRUARY 5% 1945 KELD IN VILLAGE HKLS AT 8 PoE. A11 members of the counc2.l. yzere presentP, Oscm Gauden, president of Country Club District Service eo., WGE( present. President Todd announced the purpose of the meeting aas for furtkrer consideratian of valuation and rates of Country Club District Service Go. Gaarden stated he had made additianal investment of $477 in plant of %he nrtter company during 1944. He stafed his auditor vould read the Einnesota supreme court decision relating to the szater company and nowld prepare a sEatemenL of the cornpanyts operations in 1944, based on his asswaption of the meming and effect of %he decision on property owed by %he company. and the difference of depreciation when used for nater rates and for depreciation, under the tno rates used by the company mounted to $600 per gear. Gawden said correct valurztian of property omed by the company amounted to $95,651 as of July 13 1944. ~LIBQ should be located in the vicinity of Fifty-second street and Halffax avenue and that such install8tion 170Uld cost from $12,000 to $15,000. Utley suggested Engineer? Snith and Gaarden should inspect a possible site for such pmpe Eotfan that the council go in%o executive session for dfscuxsion 02 matters relating to Country Club District Service Go. was made by T;i3ra;f;P;, seconded by Ukley and carriede Depreciation was discussed as relating to rates It ms brought out that the difference in depreciatfon Gaarden stated another mater Utley offered the Palloming resolutian and moved Z-ts adoptions RESOLUTIOl!T AND ORDER OF VII;ZS;Gl?i COU3JCIL OF TEE VLrnG3 OF mINA I TEEREAS %he recent deoisian of the Supreme Court of Ennesota bears inports.n%ly upon the value of the properky nan being devoted by the Country Club District Service Company %GO the public service in %he Village of Edina and upan %he rates and charges nan being made and collected by safd Company for providing such mater and service, and and charges non being made by said n'tiility are not just and reason- able, and TLEDZXi3AS it appears to the Village Council that the rates . . VHE@EAS the Couhcilhas given due not-iee of iPis metings and its purpose to the Country Club District Service Company and its President, Oscar GaEtrden has appeared and has been heard at tao for- mal meetings and various intermediate meetings and conferences vZth a special committiee, md Y1-S tihe Council has had the a&d of exyert opinion .upon the matter of the valuation of the property awned by the utility., and the all the all mu9 THJEaBOm$ m m FaSOLrn: Io That' the Council hereby finds each and all crf %he frzcts figures set forth on the attaclzed exb5'bf-h to be %rue and adapts same as its findings herein; that upon careful consideration of such findings, embracing the historical co8tS less deprecfation, reproduction CQS~, less depreciation, the finzncial htstory and athm m1emn-k fac%s, the Council hereby determines the fair present value crf %he properties OR ormed b$ the Country Club District Semiae Company 2nd devoted to tihe publlc service, including an adequate all.avance far norking ezapital, to he the BUM af Fifty ThousanG Dollaxs [~50,080e00)0 ... . The Council fareher finds that an annual return of six per cent (6%) on the faSr value a2 the properEy of %he Country Club Distric€ Service Company, used and Useful, in supplying mate2 service in the Billage af Xdina 2s fair, teaxana%Pe and adequate, I91 The Oouncfl fwthep finds %ha% %he sum af Five Thousaad . Bollam ($5,OaO,OO) is st fair and adequate allawance as andax- nork- ing capital to meet curreaC aperating expenses and maintain necessary invenkmies af meters, office supplies, equipmen%, e%c. IV TEzat the Pates and charges now being made for wa-k-e~ ana water service by the utility to the village residents are nr9.i; just and reasonable, and that in the interest of the public should be revised dommrd, I That propes provision far adequate depreciation resemes , all proper apera%ing expenseo and. far ir; six per cent (6%) net retrxm on the fair pFesent 'value of the Service Company*s proper€y will be fairly provided for by an annual yield of $16,560.00, based on an average yew* s sales through approximately 900 meters presently Connected. VI ThaB the abesve requfrements will be produced through the followi~ rate schedule which is hereby adopted and mhich the Compasly is hemby ordemd and directed to place into effect and Qa chwge and ta collect: R&rn scmm A. A semice charge of 60 cents per meter per month, 02 $1.80 per quarter, shall be made in lieu of any athet minimum chaxge 13, A mter chege, as indicated by meters, shall be msde at the rate of 9Q cent& Fer: 108 cubic feet. Item B will be subject to a discom* of ten pep cent (10%) fop paymen6 ~iithin %en days after billing date. C. ?%.at said sate change shall be effective as of Jranuapy 1, 1940 and that the Service Company 2s hereby ordered and 'directed to pefund -bo each and all of its customers, the difference be%meen actual colls&ians and the amom% %hat =auld have been and that viithout regard to such refunds, or any delay In the making of same, QP to any controvepsies ar disputes that may arise by reasan of the reiiroactive provisions of %his pate, the Village ,@otzncil, without miver af its right %a claim said reflands ts be made to its customers, hereby orders and directs that the above rates be placed in effeet farthwia, and that all charges made for water and semices furnished aftep January 1, 1945, shall be com- puted; billed. and colleeted a% sa,id new rates, (Attached Exhibgt 1 EXHIBIT A 1) , colleated had the above rates aefiually been in effecf an that date; ' The miginal construction cos_t of the entire water ~zorka system in %he Village of Edina, used and The narmsel repmdaction cost of %he entire property The value of the en%ire pPoperty as af Jwuwry lr 1944, based on wiginal cos% leas depreciadiian is useful as af Januezg 1, 1944, mas $1619345.03 2) 3) woald be $153,50Ot08 $150,969.35 The value of the entire propes-tig, as of January Xp 1944, based an noPra&l* kepro8u6%ior-cpsf* lese-det.: precia=nn is The total original mnstruction cost of improve- nerzts ad extensions built by the ffounkry Club . Bistrrict Service Coupany, subsequene to 1935 has been The normal reproductian cast of the improvements and ex-bensions described in Item 5 rrotrld be The value of this property (Item 5) as of January I, 1944, ’based on original cost less depreciation is The value af this praperty (Item 5) as of January lo 1944, based on reproduction cost less depreciation is The unamortized portion of the invesknent by the C.C.D.S. Coo in property built sub- sequent to 1935 is (Ilia 5 less acarued depreciation reservks from Service 00 audita) Of lihe above mount %ontributians in aid of constructionIt have accounted fot The ne€ investuent of the CoC.DoSo Coo fn property built subsequen-ti to 1935 ia Preferred stack af the Ct.C.D.So Co. vas issued to Thorpe Erose Coo for the pmported purchase af propepty built prior to 1936 by Thorpe Bras, the validity of xhich is not admitted by the Village of Edina, to €he extent af Earnings and accrued depreciation reserveso realized by the O.C.DoS. Coo since 1936, by virtue of said company having improperly capitalized property belawing eo the Village, and by virtue of delays in court and other proceedings necessary to a propep detemin- tion af ocnemship and fair values have been excessive, when measured by fair and proper returns, by more than Of the above sum (Item 13) the excessive amounts reelfzed since instSgation of the 1940 litigation amounts to appraxililately -, - c 3 ._ .* $119 ,841 0 00 $ 62,581.00 $ 21,i300.00 G 11,000.00 Eotion t-o adopt the resolution vas on rollcall there mere fire ayes and no nays, Vyat-b, aye; Hjv-tihorne, aye; Todd, I Vyate offelred the follaning resolufiion and moved fts adoption: apppoves and endorses S. 3F. 274 and He Po 241 ppoviding for the division of recefpts from gross eamiags taxes wikh counties and municipalities. RESOL=, that the Pillage Council of the Village of Edlna hereby RI~SCIL~, FUXEZEXt, that the Council earnestly commends these bilk .E;o the Hon, Archie Eiller and the Eon, George R. TJatchan, Senatop and Respr es‘enta”c;fve respectively, for their favorable consideratian. Eotian %o adopt %he resolution Ras se on rollcall $here cere fTve ayes Elnd no nays, as Vyatt, aye; Hawthorne, aye’; Todd, opted, Villson, aye; / 33 L Eation to adjourn was, made .by Haxtharne, seconded by Vi11soaZ and camied. ZmS OF THE REGULAR 3Bm3TG 03' THE: BDINA VfmGX COUITCZL EEGD IT$ %fUXGE HAIX AT 8 PoIE";. FEBRUStY 12, 1945 Bow membep.s of the ca-rancil were present: Utley, Villson, Vyatt Etnd &&home Vystfi presided. HEnu%es af €he regular" cssuncil meeking held Sanuary 8, 1945, and the regular council rneekine; held January 22% 2945, mere read and approved, I Bids =ere received on a tractor and Loader in accordance with published advertisements. Bidders were VilLiem ZjEegler Coo, offerdng equipment at cos% of $2,250, and Thorman I?. Rosholt Co., offering equipment at COB% of $2,373.77, vtTLE%h aptianal equipment at cas6 of $95.45, Eofiion to refer %he bids tcr th? village manager for tabulafiiorz. was made by Villson, seconded by UtLey and earried, . Kation €a approve. and alloa the fallonring bills was made by Villson, seconded by Utleg and carried': General Fund - Rame Claim No. AmOMnt Young Fuel Company 2766 8 69.90 Uthur Pet ersen 2767 488 25 Xi1 ler-Daui s Company 2769 21.09 Eirine sota Fir e Equipment Co a 2720 5.20 Snap-On Tools Gorp oratian - 2771 SP.00 Orfei and Eariani 27 72 10.00 Joyce Insurance, Inc. 2773. 75. 00 Phil fl, Smith 27 74 50 000 Blackburn, Xickels & Smith, Ine. 2775 17.50 Chaill Grocery 2776 2.00 Einnezpolis Gas Eight Company 21'27 112.00 Dahlbepg Bras Inc. 2768 46.86 Borey's Shell Station 27 78 66.25 Xorthwest ern Terminal eorrrpany 27 8Q 14.52 Firestone Service Stores 2781 3.15 I Einneapolis Blueprinking Go . 27 79 8.07 Hilding I>&l I 2782 J 10.00 D-ki Lubri cants Company 2783 42.66 Linde-Air Producks Company 2784 16-69 Phillips 'Petrolem Co. 21 85 15.05 A. VI Tisde1 2786 5.85 Edi na Eardwwe Company 2'288 4061 Gardlmdl s 2789 7-88 Northtxest ern Bell Telephone Coo ' 2'690 38.95 V~I. He Zisgler Company, Incr 2995 3.69 Ed. Harx5.s Servfce Staeion 27 96 83.25 No~.€hern States Power Company 2298 677.80 StaZe of Xiinnesota, 2800 3.4 . 00 * Bud Brooks Fare Oil Statim 280 3 97.57 General True% & Equipmen% Go. 2804 3,098.00 Don J. XcCleZlan 2833 12.00 Geo. T. Shilsan 28 34 8075 $5,157.54 I Subarban Hennepin Coanty Relief Bd. I 2197 Poor Fun5 $129 20 ,129 020 J.S.B. #i puna Park Xaohine Company 2787 8 13.52 Edina mdmmi 2788 . 50 Galand' ~t 2789 12.62 PTorthwesterri Bell Telephone Coo * 2790 50 CraYre Company 27 92 25. 11 (Continued 0x1 Page 34)