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417 need for this Commission at all. Councilman Granger opposed this suggestion. Motion carried. (MINUTE ORDER #67-7) Report of Sign Committee Councilman Keckley, Chairman of Sign Committee, advised County Sign Ordinance still had not been adopted and therefore could not be checked as to its aspects on political signs as had been requested by Council; report to be made as soon as available. Councilman Rosselli moved to accept report of the Sign Committee, seconded by Councilman Bury and carried. (MINUTE ORDER #67-8) Councilman Bury moved to adopt RESOLUTION NO. 5240 APPROVING RENTAL RATE SCHEDULE FOR CITY OWNED WATER FACILITIES IN JOINT SERVICE AREA, FRIENDLY ACRES; AND AUTHO- RIZING THE CITY CLERK -TREASURER -COLLECTOR TO COLLECT SAID RENTS. Staff report stated Council had previously adopted Master Plan for Friendly Acres Water System and authorized Staff to prepare rental charges for the use of City -owned lines, Notice of Intention of this proposed action having been mailed to Mr. Clyde Henry. City Attorney advised a response had been since received from Mr. Henry's attorneys, and that he was present, or at least represented at this meeting. Ijr. H. B. Anderson, stating he was an employee of the Friendly Acres Water Company, referred to the communi- cation which had been submitted from Company's legal counsel. City Clerk was directed to read communication submitted from Mr. Henry's attor- neys. Communication in part stated since "Friendly Acres Water Company holds a 'constitutional franchise', these facilities which have been added to their extended services from time to time become part of the service which they have dedicated under their 'constitutional franchise' and this was done in considera- tion of the extension of their services... that they took position City cannot come in at this late date, after having obtained the benefit from the extension of the lines, with payment by those requesting the same, to change the contractual arrangements heretofore made...and would have to be taken up with the Public Utilities Commission." (For full text See City Clerk's File - Friendly Acres Water System) City Attorney advised he was not aware of contractual arrangements referred to, and of it being possible for approval of PUC, but that if Council adopted rate schedule as proposed, first billing not proposed until end of a 30 -day period which would give Staff ample time to review contractual arrangements with Mr. Henry and his attorneys. Auditor -Accountant reviewed rental rate schedule proposed and basis from which it was derived. Councilman Henderson asked if City Attorney recommended Council proceeding with action proposed, and was advised he did recommend adoption of the rate schedule. Motion carried on roll call vote., Councilman Rosselli moved to adopt ORDINANCE NO. 1286 ESTABLISHING SALARIES FOR EMPLOYEES OF THE CITY OF REDWOOD CITY; AND, REPEALING SECTIONS 1 THROUGH 46 OF ORDINANCE NO. 1232, seconded by Councilman Keckley and carried on roll call vote.