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09-11-1995 - Special .... .""", CITY COUNCIL OF EDGEWATER SPECIAL MEETING/PUBLIC HEARING SEPTEMBER 11, 1995 7:00 P.M. COMMUNITY CENTER MINUTES CALL TO ORDER: Mayor Hayman called the Special Meeting/Public Hearing to order at 7:00 p.m. in the Community Center. ROLL CALL: Mayor Jack Hayman Councilman Danny Hatfield Councilwoman Louise Martin Councilman Michael Hays Councilman David Mitchum City Attorney Krista Storey City Manager George McMahon City Clerk Susan Wadsworth Police Chief Lawrence Schumaker Present Present Present Present Present Present Present Present Present Mayor Hayman stated they have a request to consider waiving the three-minute rule and replace it with a six minute rule. Councilman Hays stated he has no problem with letting someone finish a thought or a position. He feels it is important to have a reasonable period of time and that everyone get a chance to speak. If there are twenty or a hundred people that have the same position and there is one person that wants to express that for the group and it takes six or eight minutes to do that, he doesn't have a problem with that. within reason, he has no problem with granting extra time and left it up to the Mayor's discretion. Mayor Hayman stated he has no problem with using six minutes. The Council wants everyone to have a chance to express their feelings, anxieties, and frustrations. Mayor Hayman commented on this being an important issue. If there is a way that we can encourage public participation early on in the budget cycle, he wished someone would share that with him. At the last two hearings is when the public really suddenly becomes involved. He regrets that greatly. Mayor Hayman stated they would pledge to do their very best and be as tolerant as possible to allow the citizens to express their feelings. Mayor Hayman commented on the items on the agenda. Mayor Hayman asked that during the public hearing, they consider Res. 95-R-17 which adopts the millage rate and 95-R-18 which is the final FY 95-96 City budget concurrently. They will discuss both because they are interrelated but they would vote separately for each of the resolutions. There were no objections from Council. Hold public hearinq on millaqe rate of 7.10107 and 1995/96 budqet Mayor Hayman presented background information submitted by staff. Staff's recommendation is that the Council consider adoption of Res. 95-R-17 adopting a millage rate of 7.10107 mills per $1,000 assessment valuation which is 19.73% increase over the roll back rate. Mayor Hayman opened the public hearing. Mayor Hayman read Res. 95-R-17. ~ ..", Mayor Hayman read Res. 95-R-18. city Manager McMahon presented a brief discussion of the budget and the decrease in the proposed millage rate. He commented on the considerable amount of concern expressed regarding who is going to pay for the Florida Shores Road Improvement Project. city Manager McMahon spoke about the September 6, 1995 Special Meeting regarding the figures that were presented. The following people spoke during the public hearing: Dominic Capria, 606 Topside Circle Wynetta Bender, 2929 Royal Palm Drive Pat Palmier, 617 Mooring Lane Edward Burger, 324 Schooner Ave Patrick Adkins, 2324 willow Oak Drive George Ewing, 2923 Royal Palm Drive George VanNess, 743 Navigators Way Ginny Gande, 600 Topside Circle Dick Bradley, 521 Starboard Ave Dick Jones, 1530 Sabal Palm Drive Ed Keenan, 1905 pine Tree Drive Tim Curren, 702 W. Park Ave Dominick Fazzone, 302 Paradise Lane Wendy Dippel, 750 Navigators Way Galen McClain, 3119 Queen Palm Drive James Montgomery, 1901 S. Riverside Drive There was a five-minute recess at this time. The following people continued to speak during the public hearing: Irving Bosworth, 605 Mooring Lane Edward Burger, 324 Schooner Ave Finance Director Fred Munoz commented on the Road Improvement Program financial plan and the administrative and borrowing costs. city Manager McMahon commented on the construction cost funding. Mr. Munoz further commented on borrowing costs. city Manager McMahon commented on what the City has done being unique. Mr. Munoz commented on the possible savings from road scraping and if those end up being a real savings, that could reduce the amount by $386,000 in future years. city Manager McMahon commented on the small reduction in the Stormwater portion of the Public Works Department budget. ~ \1 City Manager McMahon encouraged the citizens to be educated in where the money goes. Councilman Mitchum asked Mr. Munoz what the actual cost for the paving is and what the actual cost is for stormwater improvements. Mr. Munoz presented the figure. There was a brief discussion regarding some costs that were avoided. city Manager McMahon commented on the numerous articles in the City newsletter regarding the Road Improvement Project. Page -2- Council Special Meeting september 11, 1995 'W' .."" Mr. Munoz commented on the underwriters not being happy with the City due to the City trying to reduce the cost as much as possible. Mr. Munoz stated the total road project cost is $11,088,981. The drainage portion of that is $4,061,019. The total project cost being $15,150,000. Mr. Munoz explained the total amount of $1,350,000 did not have to be borrowed due to being paid in advance through the taxes last year. Mr. Munoz stated the net borrowing for the road was $9,338,382 and for the drainage the amount was $3,861,019. The total borrowing is $13,199,401. This general information will be provided in the next newsletter as we have done in previous newsletters. Councilman Mitchum addressed being asked why he has never been to Edgewater Landing. Until Thursday evening when he was invited by Mr. Palmier he had never been invited to Edgewater Landing. Councilman Mitchum went on to clarify some misrepresentations regarding the $3 stormwater fee and the savings from the road paving being used to help pay the city's share of the paving not being correct. Councilman Mitchum commented on Mr. Ewing's comments regarding a couple hundred thousand dollars a year savings from scraping the roads. Obviously that is not the case now and there won't be anything realized until the paving is done. Councilman Mitchum briefly commented on changes that have been made in the program since the beginning but the one thing that has stayed consistent is Mr. McMahon's statement that we are going to have to raise taxes. Councilman Mitchum feels Edgewater Landing is a beautiful community. Councilman Mitchum stated they do control what is going to be done tonight but keep in mind we do not control the assessments. Councilman Mitchum commented on Florida Shores providing 45% of the taxable value of this City which in turn is 45% of the ad valorem tax that is in the general operating budget of the City. Councilman Mitchum commented on the utility tax, up until a few years ago, being used to subsidize the sewer rates of the entire City of which Florida Shores didn't even have a sewer. It was subsidizing the other part of the City. Florida Shores had no say so in that matter. That was finally cleared up and was an injustice that was straightened out. He feels the previous Council, when the sewers started, more than adequately made up for that injustice by taking the $2 million grant and putting it toward the sewer program. He feels that is fair and equitable. Councilman Mitchum commented on the average age in Edgewater being 37 and Edgewater being a nice retirement community. There are sections of it that are strictly retirement but there are also large sections that are young hard working people. Councilman Mitchum stated the Council has to make decisions based on what is best for the community. He feels what the citizens are saying is they want him to make a decision on what is best for Edgewater Landing. Page -3- I ~ 'I Council special Meeting September 11, 1995 I I I' ~ ~ Councilman Hatfield commented on the Council being elected to represent everyone in the City. He spoke about comments regarding the uniqueness of Edgewater Landing. Councilman Hatfield commented on living on a dirt road that is not going to get paved. He then spoke about comments made about Council giving themselves a raise. He clarified they can vote the next Council a raise but they are not able to give themselves a raise. Councilman Hatfield commented on this being a done deal. He spoke about this project being discussed when Councilman Mitchum was the Mayor. Councilman Hays feels it is unfortunate that some people aren't willing to listen to both sides of the issue. There was a two-minute recess at this time. i r Councilwoman Martin reminded the citizens when she was elected in 1990, the sewer system was on the agenda. The paving program was also included. She commented on a meeting where the Community Center was packed with people who didn't want the paving included. Every year the project is not done, it increases by $1 or $2 million. This is something that needs to be done in order to complete the City. Councilwoman Martin commented on the City only getting 21% of the taxes collected by the County. She further commented on industry bringing tax money which would alleviate some of the taxation on the people. Councilwoman Martin stated she is sorry that some of the citizens don't want to help one part of the City come to completion. Councilwoman Martin stated once the paving is completed, they should have smooth sailing but this job has to be done. t 1 Mayor Hayman commented on the Save Our Homes legislation. The tax burden is passed on to more expensive properties. The greatest tax burden under the present amendment to the State Constitution is borne by business and industry. If the legislation is changed, the citizens will probably see this Council, or the next Council, take appropriate action to posture the community so the citizens will have a favorable return. Mayor Hayman stated what really has disturbed him is the assertion that he and his colleagues have repeatedly been invited to address the members of Edgewater Landing and they have ignored that. That is not the case and he regrets that misunderstanding and feeling. Mayor Hayman stated the City Manager, City Attorney, Department Heads and the Council have always taken a position to welcome and respond to any request from any group of citizens to meet with them on their turf at any time. They need only ask. Mayor Hayman commented on efforts made by the Road Paving Advisory Committee. t , Mayor Hayman commented on the city survey and there being a clear indication that the citizens of Edgewater supported the notion of getting rid of the shell roads. Mayor Hayman explained reasons why the paving is needed. Page -4- Council special Meeting September 11, 1995 ~ ~ Mayor Hayman believes the single most important thing he can do for his city is to pave 48.5 miles of road and put stormwater in the entire area of Florida Shores so we can meet the state and federal mandates of stormwater management, we can improve the health conditions of the community and we can take Edgewater out of a back woods bedroom community and we can make Edgewater being in the 21st century something to be proud of and something that increases the property values and enhances the ad valorem tax base of this community. ~ t i Mayor Hayman supports the vigorous approach to the sale of our water and our enterprise funds so the money can be used to defray taxes. Mayor Hayman stated he may finish this term and never be seen again but he will walk away knowing he made a tough choice. Councilman Hays stated one of the first things he learned and one of the promises he always made was to never vote on an issue with the thought of being re-elected but what was sincerely what he thought was the best thing to do. Councilman Hays commented on residential versus commercial tax dollars. He feels as long as the population increases, the demand and need for public services will increase. He feels it is imperative to attract the right industry. One thing that is imperative to attracting these industries is having a City that is attractable. t I I Councilman Hays commented on a road improvement survey and at that time, the vast majority of the people wanting this done. The vast majority of people he has spoken to still want this done. He feels it is important to represent the whole city. Councilman Hays also commented on not being invited to Edgewater Landing. Councilman Hays was disappointed that the people who made some comments saw fit to leave before Council had a chance to make their comments. Councilman Hays commented on the people in Edgewater Landing having a price to pay but it being a decision they made. He commented on double taxing. Councilman Mitchum stated some of the citizens of Edgewater Landing have already paid but one of the problems the city is dealing with is a section of the City that was taken into this city by a previous Council a long time ago. He feels it should have been addressed a long time ago and one of the reasons development fees are paid now is so this never occurs again. Mayor Hayman closed the public hearing. 1 Action on Res. 95-R-17 Adoptinq millaqe rate Councilwoman Martin made a motion to approve Res. 95-R-17, second by councilman Hays. The motion CARRIED 5-0. Action on Res. 95-R-18 Adoptinq final FY 1995/96 citv budqet Councilman Mitchum made a motion to approve Res. 95-R-18, second by Councilman Hays. The motion CARRIED 5-0. Councilman Hays stated if indeed any action they ever took was because they were worried about re-elections, he and Councilman Mitchum had the perfect opportunity to vote no. Page -5- Council Special Meeting September 11, 1995 ..... ~ Res. 95-R-19 Expressinq support for Florida Coastal Clean Up Day set for September 16, 1995 ~ f i Mayor Hayman read Res. 95-R-19. Councilman Mitchum made a motion to approve Res. 95-R-19, second by Councilman Hatfield. The motion CARRIED 5-0. Authorization to offer to purchase from Volusia County approximately 6/10ths mile of water line south of city's water line from Boston Whaler to Terra Mar Villaqe, or to construct same seqment if County refuses to sell or respond to offer - Addendum to Aqenda Mayor Hayman read a memo from City Manager McMahon regarding the above matter. Due to City Manager McMahon being incapacitated, Mayor Hayman suggested tabling or continuing this until the next meeting on September 18, 1995. Councilman Mitchum made a motion to table this, second by Councilwoman Martin. The motion CARRIED 5-0. ADJOURNMENT I ~ f :j I There being no further business to discuss, Councilman Hays moved to adjourn. The meeting adjourned at 9:30 p.m. Mayor Hayman explained due to City Manager McMahon's return, it is imperative to reconvene the meeting. The meeting reconvened at 9:45 p.m. ROLL CALL: Mayor Jack Hayman Councilman Danny Hatfield Councilwoman Louise Martin Councilman Michael Hays Councilman David Mitchum City Attorney Krista Storey City Manager George McMahon City Clerk Susan Wadsworth Police Chief Lawrence Schumaker Present Present Present Present Present Present Present Present Present f Authorization to offer to purchase from Volusia County approximately 6/10ths mile of water line south of city's water line from Boston Whaler to Terra Mar Villaqe, or to construct same seqment if County refuses to sell or respond to the offer. Councilman Mitchum made a motion to remove this item from the table, second by Councilman Hays. There were no objections. city Manager McMahon commented on the urgency of getting this matter taken care of. city Manager McMahon feels it is in the City's best interest to authorize the construction of a water line as quickly as possible south of Boston Whaler to Ariel Road and explained his reasons for this. City Manager McMahon stated the County is going to reject the 6- 1/2% interest over the next 20 years because they want to hold onto the control of that water south of us for many reasons. Page -6- I Council Special Meeting September 11, 1995 ~'" " ; , .... ...., city Manager McMahon stated if the city follows through with providing a line for service to at least Terra Mar and eventually to Ariel Road, they will potentially be able to serve Terra Mar, act as a backup for Hacienda Del Rio, infill with all properties north of there, and provide immediate water to the people that want it. city Manager McMahon referred to a memo from utilities Director Terry Wadsworth dated September 5, 1995 regarding the water demands south of Boston Whaler. City Manager McMahon commented on infill areas that elect not to annex into the City having to go to the County and form a taxing district or an assessment district and get the County to administrate that. ,i, :~; t City Manager McMahon explained the City can provide that money through its water impact fees because it is extension of services and we can provide it for distribution systems and require them to sign a note with the City for their obligations for their prorated proportions. That money would be prorated out on a monthly water bill and if it is not paid the water will be turned off. City Manager McMahon informed the Council that the County Council met Thursday and elected not to go with the $4.20 per 1,000 gallons, therefore, the second option was triggered which Council agreed to, which is to construct the water line. City Manager McMahon commented on some of the reasons why the County Council chose not to go with the $4.20 per 1,000 gallons. City Manager McMahon stated if the Council chose to sell the water for less than $4.20 it would be an injustice to the residents in Edgewater. City Manager McMahon stated if the Council elects to go along with this, they will collect $11,000 in lost money just on the surface. i l City Manager McMahon asked Council to authorize him to proceed with constructing the water line. They can have the complete line to Ariel Road, if they so elect, by the first of the year. If the County is willing to cooperate, they can offer to sell us the water line at least to Terra Mar and we can immediately serve them water. Councilman Hays feels they need to proceed with this as soon as possible. It has been delayed far too long by County staff. He asked City Manager or staff to contact the City of Oak Hill and see if they have any interest in what we are doing. Councilman Hays feels the County must be operating without a conscience to not even consider the environmental impact of what these package plants and shallow wells are doing. Councilman Hays suggested contacting the environmental groups regarding the Mosquito Lagoon Estuary and have them lobby on our behalf. Councilman Hays made a motion to go ahead, second by Councilman Mitchum. , ~, ~ " ! Mayor Hayman commented on the stretch of line in our service area. That is an area we can service now. The only thing you need is a distribution system. Beyond our service area, there is no distribution system because there is one in place called Terra Mar and we could plug right into that. He feels this is the prudent thing to do. Page -7- Council Special Meeting September 11, 1995 -., .."." Mayor Hayman feels in order to take care of the citizens in our service area, they must first come up with a financial plan which tells the citizens what the rates are going to be for residential, business, commercial, and wholesale. The wholesale rate has been agreed upon but the rates need to be decided for the others. ~ , J Mayor Hayman stated he is requiring Mr. McMahon and staff to come back as soon as possible, hopefully the next meeting, and explain what the rates are and the options the public will have so the people in the area we want to service can understand how they are going to pay for the distribution system. Mayor Hayman asked what they will do if they don't have 100% participation on a street and how will that be handled. Mayor Hayman stated he supports what they want to do but all the work is not done yet. He further commented on the hold up. Mayor Hayman stated before he will vote to put a line next to a line that can be purchased, he wants rates in his hands. He doesn't want to say yes to purchase a pipe when there is a pipe already there with water in it charged and ready to go. Mayor Hayman encouraged the Council to start communicating with their counterparts of the County Council. Mayor Hayman stated they need to elevate the level of discussion, debate and discourse to the level it should be. ~j"." ':.<' , ;'1 City Manager stated they have two decisions to make. One is absolutely critical depending on the data that needs to be produced as far as infill for the retail customers that we would have exclusive of the non-wholesale area. The other is service the wholesale areas. City Manager McMahon commented about the wholesale water rate of $4.20 being a reasonable rate. city Manager McMahon suggested the County residents down in that part of the County begin to question their people very seriously about why they are charging $6.50 to $7.00 per 1,000 gallons and a much higher minimum charge than what we are charging. City Manager McMahon agreed to come back at the October 2nd meeting with the detail on the water rates. city Manager McMahon recommended Council authorize staff to move quickly with the construction of a wholesale water line which will eventually go to Oak Hill. Councilman Hatfield asked the legal ramifications since we have an agreement at this point with the County. Are we declaring that agreement null and void going into the water wars. , I I I city Attorney storey stated our position would be the County did not act in good faith in completing the requirements of that agreement. Councilman Mitchum moved to take City Manager McMahon's recommendation as presented tonight. His motion is to include both recommendations. Second by Councilwoman Martin. The motion CARRIED 5-0. Page -8- Council Special Meeting September 11, 1995 ... ....", ADJOURNMENT I I i , There being no further business to discuss, Councilman Hatfield moved to adjourn, second by Councilman Hays. The meeting adjourned at 10:07 p.m. Minutes submitted by: Lisa Kruckmeyer I ~'.'.....,..,...,., " I , ! I ~II ':'::'i , ;. f I Page -9- ! ~'.:... ~, f, i'" I I Council Special Meeting September 11, 1995