The Key West Citizen

Water Board Sets Budget

Florida Keys Aqueduct Commission adopted a new budget, for the year, opened pump bids on the new Stock Island station, and on member Joe Sirugo's recommendation put a $1,000 limit on expense items that may be bought without board approval.

The commission also met with its attorney, Bill Neblett, to draft a reply to a "show cause" order questioning its authority, issued by Monroe County Circuit Court on request of the taxpayers' association.

Commissioners said their answer will be ready in about 10 days.

The new budget, totaling $1,070,712.50, is the same budget that got preliminary approval in June. It is $190,712.50 higher than this year's.

The limit on manager Ernest Ramsey's spending authority, proposed by Sirugo, was passed by a 3-2 vote, with commission chairman William Arnold and member W. O. Parrish agreeing. Sirugo originally suggested a $500 limit, but Ramsey pointed out that "a new cylinder head for a pump that goes out can cost over $500."

Members M. E. Rosam and Ray Schoneck opposed the move: "We hired the man to manage; why put strings on his hands?" Rosam asked.

"Now, before he can go out and order pipe to replenish his inventory, he's got to come to us, get our approval, advertise for bids, set the date for a meeting and it all takes time.

"There is only $60,000 in the budget for supplies and repairs, anyway."

Sirugo said he wasn't trying to handicap anyone: "In the past," he said, "Mr. Ramsey has even bought fill without getting bids."

Ramsey said that he had always called for per-yard prices on any fill. Sirugo argued that "somebody told me that they could have delivered it cheaper, and they were never called."

In other action today, the aqueduct commission:

1. Deferred action for further investigation on a request from Joe Pearlman that the commission furnish water to Key Haven, a new subdivision he is developing on Raccoon Key. Ramsey pointed out the area has a potential of 728 lots, and needs a six-inch line, "but it would cost us $5,000 to run one there. We could give him a two-inch line but we might have to tear it up and rebuild it, if the area grows."

2. Authorized Ramsey to buy 16-inch cast iron pipe from low bidder U.S. Pipe and Foundry Co. at $6.91 per foot, to run from the new Stock Island booster pumping station into Key West;

3. Authorized Ramsey to call for bids on foundations for two 500,000-gallon storage tanks at Marathon. The tanks, Ramsey said, are on the way here now.

4. Referred a low bid of $28,295 for the two diesel-driven pumps needed at the new Stock Island booster station to the commission's consulting engineers, Rader and Associates, for study. Shelley Tractor and Equipment Co. was the lowest of three bidders.

5. Retained W. T. Anderson of Palm Beach Investment Co. as the commission's financial consultant by a 4-1 vote. Commissioner Joe Sirugo voted no, saying that he was "not happy" with the conditions under which the latest bond issue was sold. "It may not be Anderson's fault," he said, "but how do I know? Perhaps we could get someone who could handle the situation better."

6. Decided to have commission chairman William Arnold vote last, after Sirugo questioned Ramsey's practice of calling off the names in alphabetical order. "Under Roberts' Rules of Order," Sirugo said. "the chairman always votes last."