CITY ANTICIPATES HANCOCK II's POSSIBLE EFFECT ON SEWER WORK

The Cape Girardeau City Council will have to make a decision at its Sept. 6 meeting to keep a $25 million sewer improvement program from springing a leak.

The council, during Monday night's study session, was presented with various options in anticipation of Hancock II being placed on the November ballot.

Mark Grimm, representing the law firm of Gilmore and Bell, outlined the options.

If Hancock II is placed on the ballot and passes, projects such as the $25 million sewer improvement extension program, which is financed by revenue bonds from a one-quarter sales tax, would have to be amended to designate where the money is going.

The options include:

-- Waiting to see if Hancock II is certified for the Nov. 8 ballot.

-- Refinancing the project at the end of the year in anticipation of Hancock II getting on the ballot and passing.

-- Putting the sewer improvement project up for another vote before the November election.

Mayor Al Spradling III, said, "I think we should think about refinancing the project now to prevent any construction from stopping. The sewer improvement program passed 70-30 by the people. So we know it's a project the people want. Why waste any time when there has already been some work along Henderson and College."

Grimm noted that refinancing the project to comply with Hancock II would cost $50,000. Putting the issue to another vote would cost just $5,000.

"I know $50,000 is a lot of money, and certainly a lot more than it would cost for a second vote, but work stoppage alone would cost $50,000 in terms of lost time in construction and inflation," said City Manager J. Ronald Fischer.

Added Grimm, "If you would choose to go with refinancing the project, we would recommend that you wait until the end of the year to do so because even if Hancock II gets on the ballot, you would have 30 days to act."

Citizens voted to extend the existing tax for 20 years to provide the debt payments on state revolving loand fund money that would be used to relieve sewer problems in the city.

The city's master sewer plan, prepared in 1991, identified the separation of combined sewer lines and construction of sewer relief and trunk lines needed to serve the existing city limits as tthe principal five- and 10-year priorities.

The project would accomplish combined sewer separation in older parts of Cape Giardeau such as Sloan Creek, Main Street, the Fort D area, College and Henderson, and Walnut and Henderson drainage basins.

One of the primary objectives is to eliminate combined sewer flows and associated problems by separating stormwater flows from the sanitary sewer flows.