Eutaw City Council approves construction financing for water project; modifies pay for some city employees; plans to update all water bills by January 2017

steele-and-smith

L to R: Mayor Raymond Steele and Mayor Pro Tem Sheila H. Smith.

The Eutaw City Council met on November 22, 2016 for its first full meeting since the election to consider business. All members were present.
LaTasha Johnson moved to amend the agenda to consider election of a Mayor Pro Tem of the Council to serve in the absence of the Mayor. This decision was left over from the Council organizational meeting on November 7, 2016. Johnson then proposed rotating Pro Tem for a year’s term, starting with Sheila H. Smith, representing District 4 and then moving to the other districts in numerical order. This motion was approved and Sheila H. Smith was designated as Mayor Pro Tem.
City Attorney Ken Aycock brought up approval of a contract with Co-Bank, a Denver based agricultural cooperative bank, to provide interim construction financing for the $3.1 million loan and grant water project for the City approved by USDA Rural Development. Co-Bank is providing the financing during construction and USDA RD will pay off the construction loan once the project is completed according to the proposed and designed specifications.

Co-Bank’s interest is based on a commercial banking index rate that changes as interest rates rise but is currently close to 1%, which is a very reasonable rate.
The City Council moved to unanimously approve the construction financing agreement with Co-Bank, which was the last remaining paperwork hurdle before the low bidders can start the project.
Mayor Steele introduced a resolution modifying the pay rates of several positions including City Clerk, Water Clerk, Assistant Police Chief and others. The salary adjustments were approved but not shared with the public. Councilwoman Sheila H. Smith urged that the City Council consider all the police officers for a raise in the future. The Democrat has submitted a written request for the City’s salary schedule for all employees.
The Council approved the purchase of two used vehicles from ALDOT for use by the City’s Public Works Department. The Council paid outstanding bills and claims for September and October 2016.
The Council approved the travel of the City Clerk to a Municipal Training Conference in Florence, Alabama from November 30 to December 2, 2016. The Council also approved the selection of Walter Beck as Assistant Police Chief.
Mayor Steele brought up the issue of filling seats on the Eutaw Housing Authority Board. In the public comment period later in the meeting, James Powell said it was important to fill these positions so that the Eutaw and Greene County Housing Authorities could proceed with discussion of a merger, which HUD is actively pushing and supporting. “The Department of Housing and Urban Development (HUD) wants one unified housing board to work through to improve public housing, including Branch Heights, in the city and the county,” said Powell.
Mayor Steele also brought up the need for a resolution for the City of Eutaw to accept the roads and streets in Branch Heights as a first step to finding the resources to solve the problems in Branch Heights. In response to questions, Steele said, “we need an official resolution to clear up any confusion on who owns these streets; and then we can work to find the resources to fix them. The Council asked Attorney Aycock to prepare a resolution for the next meeting.
The Mayor reported that the City water bills were 5 to 6 months behind and that citizens would soon get a water bill for three months and then in January 2017 a water bill catching up on all past due usage. “We will give residents and businesses grace time to pay these water bills, if time and payment plans are needed. We must get the water billing up to date. We are working diligently to make repairs and fix leaks in the system while waiting for the major new steps, like the digital self-reporting meters, that come with the USDA water project.”
Mr. Babb, City Engineer reported on building permits and progress on the resurfacing of Prairie Avenue from the Courthouse Square to Highway 43.

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