Loading...
12-11-1975 - Public Hearing r . -, ~ " ~ \.) .,. . CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA PUBLIC HEARING DECEMBER 11, 1975 ~..~ r.fj}i (;:A >~. i,j.<.'1l' t~. ,t ~ \';' ~l~\ tv.~ '.,; \ -1};..ll U3l '11:. \,~ ~I~i;., '''j ~~ "\ '15:.' ..,..,. ... '''~i;.~'''''' Mayor Armstrong called the Public Hearing to order, December 11, 1975 at 7:30 P.M. ROLL CALL: Mayor Dana T. Armstrong Councilwoman Ryta F. Webber Councilman William H. Cairnie Councilman Walter B. Sikes Councilman Calvin R. Dietz City Manager N. Dale Bryant City Attorney Joseph E. Weaver City Clerk Sue Blackwell Acting Chief Norman Mc Call Present Present Present Present Present Present Present Present Present The City Clerk read the notice which was published in the paper explaining the purpose of this Public Hearing. Mayor Armstrong stated that we are going to discuss the pro and con feelings in regard to a rate increase. He read from Ordinance 400 stating that the City Council has the right to hold a Pub1ic Hearing for a rate increase, it they feel it is necessary. He stated that the proposed increase is 2,000 gallons to be $2.90 and each additional 1,000 gallon would be 63~ per thousand. Tape 1 Side A 5 min. Mrs. Leo Turner spoke to the Council, stating that with infla- tion the way it is she doesn't know how we can bear such a debt. She asked Mr. Fernandez what his plant offers the people in Florida Shores? Mr. Fernandez stated that the plant offers additional water and sewer capacity for all the citizens of Edgewater. Mrs. Turner went on further stating that she implores the Council people to follow Mr. Armstrong's plan, which he discussed at a citizens meeting. She asked the Mayor to explain this to the Council. Mayor Armstrong stated that he has not had the opportunity to discuss this with the Council. He stated that h~ spoke with Dr. Kelly of the County and a meeting will be set up with Mr. Briggs for the purpose of deriving a plan through 201 Federal Plan whereby the Federal Government will pay 75% of the plan, of the construction. He stated that we will be notified when to meet with these people. Councilman Sikes stated that Mr. Eldridge said that the reason we have not been eligible for any grants was that our water rates were too low. Mr. Fernandez stated that the grant is under Public Law 90-500 and is the same grant that Daytona Beach has been waiting for for three years, and New Smyrna Beach has been waiting for for many years, and they have gone back to the planning stages. Mrs. Turner stated that she is in favor of the County doing this. She spoke about the interest that we will pay after the first two years. She asked where is the money going to come from? Tape 1 Side A 25 min. Tape 1 Side B . , o Q Councilman Dietz stated that the fact is that the first two years, the first year we wont pay anything until we get the money, the second year we will only pay on the portion that we receive, the third year we will pay the interest only, in 1978 when the job is complete, we will start paying on the principal, which will add together with the interest to bring it up to $53,000.00. He stated that figures that were presented to us were run through computers and they ask for l5~ increase on the water and 8~ in- crease on 1,000 gallons from 55 to 63 and 100% of that figure for the sewer which will be more than adequate to pay this. He stated that we are not asking for a lot of money we are talking about 30~ more a month, basically. This will pay this figure off over a period of 40 years, this has nothing to do with the cost of labor, inflation or these type of things. Mrs. Turner pointed out that Mr. Fernandez told us that our capacity is adequate, our quality is poor, and this can be updated. Councilman Dietz read a letter from the Department of Environ- mental Regulations, dated December 2, 1975. He stated that this letter was received in the City of Edgewater by Mrs. Webber, Briley Wild and Greg Camp. He said that he didn't know why Mrs. Webber didn't turn this over prior to this. Councilwoman Webber stated that she received this letter the same time everybody else did. Councilman Dietz went on reading the letter, which goes back to 1971, stating the history of the sewer plant~ In 1971 a permit was issued for a .42 trickling filter facility. In 1972 we received a notice based on inability to provide secondary treatment level, and this should be corrected by Jan. of 1973. In November of 1972 a permit was issued for alterations to the plant, and this permit was extended to June 1975. Mr. Fernandez explained this further; and he stated that if you do not build a new plant, that construction permit will be invalidated and you will have to have an operators permit, which you mayor may not get. He stated that he understands that there is a review of the plant operating data going on in the Orlando office at present. Councilman Dietz continued reading the letter. Briley Wild issued a certification of completion of that job. In May of 1975 a permit was issued to expand the facility from .42 million gallons a day to 1. million gallons a day. He read that no application for a permit tor operating the existing facility has been received, although the plant is operating without a valid permit and construction was completed a year ago, and your monthly operating reports indicate that no reserve capacity exists presently. He added uhat if we go out and get an inde- pendent laboratory and get their opinion possibly they will give us a permit to operate this plant, but no expansion will be allowed. If the City's plans require expansion for the next three or four years steps must be taken to somehow provide that treatment capacity, and this can be done by exploring the option opened to you with your consultant, and in the mean time the per- mit will be held in abeyance until the City updates its status, or tie in with New Smyrna Beach regional facility at the very latest of July 1, 1979. -2- u o Tape 1 Side B 5 min. Mrs. 'Turner stated that Mr. Fernandez said that the new sewer and water plant has a one year quaranty and it will probably last for ten years, but we are going to be paying for it for forty years and we haven't finished for the last plant that he put in and it only lasted seventeen not twenty-five. Councilman Dietz explained that what was said was that there will probably be no major trouble for approximately ten years. Mr. Walter Gross asked if the well we are going to sink is going to reduce the water level of the wells we have now when we start to pump in the new well? Mr. Fernandez stated that all the existing wells will be able to pump at their current rate. Councilman Sikes stated that we raised our rates last July based on the recommendation from our auditing firm in order to take care of the payment of the $700,000 loan in addition to paying 10 min. off the present indebtedness that we have. This put us in the position to apply for a loan. This increase will take care of normal operation expenses, plus the amortizing of the old in- debtedness and the new indebtedness ($900,000 loan) if the nor- mal expenses in operating will remain the same, and we know that this will not happen, but the additional hook ups is where we will get the additional revenue coming in. He stated that F.H.A. would not make any loan if they didn't feel that we could pay them back. Paul Walls stated that he would like to comment that he doesn't feel that the City needs the expense, however he wonders if the people would vote no if they didn't have a fire hydrant within 1200 feet of their house and the fire department hooked up to a hydrant and couldn't get enough pressure. We have to make a move somewhere so that the people could be served for what they are paying for. Mr. Fredericks asked if the water and sewer departments are making a profit now? Councilman Cairnie answered no, and explained that our sales and income in the departments are about $43,000 short. Mr. Christy spoke to the Council about this, stating that it is going to cost him more for the water, but he is trying to get some water he can drink. He stated that we are ~ot going to make a profit if we have to keep buying new equipment for the system we have now. The longer we wait the more its going to cost. There was more discussion in regard to the communications that have been received from the Department of Environmental Regula- tions. Mayor Armstrong recessed this Public Hearing. -3-