CAPE VOTERS APPROVE TRIO OF UTILITY ISSUES

By a margin of more than three to one, Cape Girardeau voters Tuesday approved new 20-year electric and gas franchises for Union Electric and the city's purchase of the water system from the utility company.

By a vote of 6,164 to 1,837 (77-23 percent) and 5,904 to 1,638 (78-22 percent) voters overwhelmingly approved new 20-year gas and electric franchises respectively for Union Electric.

By a slightly slimmer margin, residents voted 6,282 to 1,885 (76-24 percent) in favor of the city's issuance of $11.8 million in revenue bonds to purchase the water system from Union Electric.

Assistant City Manager Al Stoverink called the election results a "pleasant" surprise.

"It was better than expected in terms of voter turnout," Stoverink said. "It was a very high turnout for an issues-only election with no candidates.

"I thought it was a very good response from people who were well-informed of the issue and voted for these utility issues."

A total of 8,418 ballots were cast in the city's 16 wards, which is 49 percent of the city's 17,317 registered voters.

Stoverink said he was confident the city measures would pass but didn't expect the measure of approval would be quite as high as it turned out.

"I thought 75 percent was absolutely the best we could hope for," he said. "To get 77 percent or better was a pleasant surprise."

Stoverink said he's confident the voters made a wise decision to approve the franchises and the water-system purchase.

"I'm real happy for the community," he said. "I want to commend those people who took the initiative to inform themselves about the issues and went out and voted.

"The city also owes a debt of gratitude to the people who went out and did the work to let the voters know what the issues were."

Stoverink also praised city staff members who donated their time to give nearly 50 programs on the proposals to various civic groups.

"I think that was a key part of informing the public of a complex set of issues," he said. "It's important for the people to see the facts and have the opportunity to ask questions."

The council will hold a special meeting next week to officially recognize the results and grant the utility franchises. Stoverink said the city also will begin the "transitional process" of acquiring the water system.

Once the council approves the contract for the purchase of the water system, Stoverink said all that will remain to make the transaction complete is to iron out formal transfer of the properties involved.

"Those agreements are essentially complete," he said.

Union Electric then will file within 60 days a request for the Missouri Public Service Commission's approval of the transfer.

"We hope to begin selling bonds in the first quarter of the new year, and we hope to actually be in operations by spring of the year," Stoverink said.

He said approval of the three measures will provide a key link to orderly growth and development in the city.

The new franchises include much more detailed and complete provisions than the old agreements that expired more than two years ago.

Some of the new provisions in the gas and electric franchises include warranties on street repairs when utility work damages city streets; a 10-percent discount on the city's street light bill; the city's right of first purchase should Union Electric sell the electric or gas systems; a termination procedure should Union Electric breach the terms of the franchise; and a provision that allows the city to compete with Union Electric with its own electric and gas business.

Also, by purchasing the water system, Stoverink said that the city will be able to provide control over long-range planning for the system's development.

During the past few years the city has pursued efforts for comprehensive, long-range infrastructure planning. Master street, sewer and solid waste plans now can be combined with a master water plan to better coordinate development.

"This is a very positive thing for the city and the residents with regard to planning for future development of the community," Stoverink said. "It's really a major step forward for the growth and development of the city."