09-06-1995 - Special
.....
"WI'
CITY COUNCIL OF EDGEWATER
SPECIAL MEETING
SEPTEMBER 6, 1995
7:00 P.M.
COMMUNITY CENTER
MINUTES
CALL TO ORDER:
Mayor Hayman called the Special Meeting to order at 7:00 p.m. in
the community Center. He explained the reasons for the meeting.
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
Lieutenant William Britain
Present
Present
Present
Present
Present
Present
Present
Present
Excused
Present
Mayor Hayman stated they received a request from a citizen that
represents an exception to the policy that has been outlined by
the Council in the resolution that pertains to policy, procedure
and debate for the Council. They have been asked if a member who
addresses the Council desires to rebut remarks made by Councilor
other members addressing the council, if he or she could have
permission to rebut comments or remarks. He explained to the
citizen it is an exception to policy and rule, however, under the
provisions of the policies and rules, if three or more members of
Council agree to it, they could do it.
Councilman Hays believes that would instigate some terminal
public debate on the issues tonight. He doesn't feel it is in
everyone's best interest for us to begin a debate between the
people in the audience.
There was no motion to waive the rules. The standing rules shall
apply, there will be no debate and no rebuttal.
Mayor Hayman explained the procedure for the meeting.
Hold public hearing on proposed millaqe rate of 7.10107 and Res.
95-R-15 Adoptinq tentative FY-1995/96 city budqet
Mayor Hayman read Res. 95-R-15.
Mayor Hayman opened the public hearing.
city Manager McMahon presented an overview of the budget. He
commented on the overall property values in Edgewater decreasing
on existing properties by approximately 3%.
city Manager McMahon presented figures for the general fund,
annual debt service, water & sewer fund, refuse fund, stormwater
fund, self-insurance fund. The total operating budget is
$14,065,476 which has been reduced approximately 4% over the
current existing budget from the current year.
City Manager McMahon stated he was proud to present this budget
because it took a lot of work effort on behalf of the Finance
Director, City Department Heads, city staff and the City Council.
City Manager McMahon commented on this being a maintenance
budget, not a budget that expands services or expands anything
that is included in the budget.
......
..."
"
city Manager McMahon commented on the pay for performance program
included in the budget. The maximum, in terms of percentage, is
3%.
There was a five-minute recess at this time due to complications
with city Manager McMahon.
Finance Director Fred Munoz made a presentation and referred to a
chart to help the citizens understand the spread of taxes and
where their tax dollars are going.
Mr. Munoz commented on the financing for the road improvement
program and the millage rate.
city Manager McMahon trusted the people that were going to make
constructive criticism have taken the time to try to understand
the problems their community faces. The City is required, by
law, to produce a recommended budget, to give the best economic
balance it can for the services provided.
city Manager McMahon commented on the minimal complaints he has
received since he started working here.
city Manager McMahon commented on the road improvement program
and the bonds involved with the program.
COUNCIL COMMENTS
There were no Council comments at this time.
CITIZEN COMMENTS
The following citizens commented:
Patrick Palmier, 617 Mooring Lane
Judith Lichter, 826 Navigators Way
Dominick Capria, 606 Topside Circle
Juanita Bender, 2929 Royal Palm Drive
Bill Forest, 8 Harris Circle
Jim Sowers, 2831 Travelers Palm Drive
George Ewing, 2923 Royal Palm Drive
Jimmy Newell, 2450 S. Ridgewood Ave.
Irving Wadsworth, Edgewater Landing
City Attorney Storey explained the Council needed to do their
deliberations and make any comments in reference to the proposed
millage rate and the roll back rate which must be announced
before the close of the public hearing.
Mayor Hayman stated they are required to announce during the
public hearing the millage rate which is 7.10107 or 19.73%
overall increase in excess of the roll back rate.
Mayor Hayman listed the following figures: general fund
$6,241,935, water & sewer fund $5,687,611, refuse fund
$1,190,985, stormwater fund $815,945, self-insurance fund
$129,000 which produces a tentative City operating budget total
of $14,065,476.
Mayor Hayman closed the public hearing.
Councilman Hays commented on the savings from the
roads not being realized until the paving project
He commented on the quality of life in Edgewater.
entire City will benefit from these improvements.
population increases and services increase, taxes
to increase.
grading of
is complete.
He feels the
As long as the
are also going
Page -2-
Council Special Meeting
september 6, 1995
....
....,
Councilman Mitchum commented on what makes this city a community
and the 1/3, 1/3, 1/3 concept. He commented on money spent for
drainage improvements. He feels we need to be a community and we
have, in our actions over the past, made this a community.
Councilman Hatfield stated he has always seen the paving done
with the same formula. He spoke about having to pay the increase
and he will still be on an unpaved roads. He stated it is going
to be difficult to pay these increases but this is the price that
has to be paid to see the City grow properly.
Councilwoman Martin stated from the beginning she has wanted the
city to become one City and work together. She feels they need
to pull together to see this project through and get on with it.
Mayor Hayman stated he would try to meet the citizens needs for
"rebuttal" and to make sure all the citizens thoughts were folded
into the conclusive remarks as the deliberation and decision are
made. He stated they were asked by the constituents to look into
the cost of the Road Improvement Program. Mr. Ewing seems to
think there may be some discrepancies.
Mayor Hayman commented on the benefits of paving Florida Shore~
He further commented on the stormwater improvement program and
the need for it in Florida Shores.
Mayor Hayman commented on the mandate involved with no longer
being able to dump stormwater or effluent into the river.
Mayor Hayman commented on citizen input and the need for
communication.
Mr. Munoz reviewed the figures of the Road Improvement Program.
City Manager McMahon concluded his remarks for the evening.
Councilman Hays made a motion to approve Res. 95-R-15, second by
Councilwoman Martin. The motion CARRIED 5-0.
Mayor Hayman stated there would be another public hearing on
September 11, 1995 at 7 p.m. in the Community Center where they
will take further suggestions and comments from the public
regarding the millage rate and the budget.
There was a five-minute recess at this time.
Res. 95-R-16 Authorizinq Mavor to siqn utility relocation
agreement with Florida Department of Transportation
utilities Director Terry Wadsworth made a presentation regarding
a project on u.S. #1 from Orange Avenue to the North city limits.
They will be milling the road from curb to curb, doing away with
parking lanes on both sides and creating a bicycle path. He
commented on utilities needed to be relocated due to not being
allowed in the four foot free zone from the curb.
Mr. Wadsworth stated he is asking the Mayor to sign the agreement
saying we will relocate the utilities at city expense. Right
now, FPL is objecting to moving the power poles. If they don't
move the poles, there will be very little cost involved.
Mayor Hayman read Res. 95-R-16.
Mayor Hayman questioned the possibility of relocating a water
line. Mr. Wadsworth explained in further discussions with DOT's
consultant that is probably not a realistic move on this so the
price will be considerably less. It will mainly be hydrant
relocation, valve and manhole adjustments.
Page -3-
Council special Meeting
September 6, 1995
k
~:'
~
~
1
~'
~
.....
..."
Councilman Hays asked if the representative from DOT, when he was
at a meeting, mentioned this part of the project. City Manager
McMahon stated no he did not. This is in addition to what he
discussed.
Tom Kane, 2130 S. Riverside Drive, asked what advantage is it to
the City that they move u.s. #1 to where the parking lanes are
taken away. City Manager McMahon commented on safety being a
factor.
Mr. Kane questioned the business people that use u.s. #1 for
parking. City Manager McMahon informed Mr. Kane they have been
advised of that.
Councilman Hays commented on the positives and benefits of this
project.
Mr. Kane questioned if the hydrants are on City property. Mr.
Wadsworth stated they are in the DOT right-of-way.
City Manager McMahon commented on the hydrants being too close to
traffic. If safety standards are not followed, you are subjected
to severe liability risks.
Councilman Mitchum made a motion to approve Res. 95-R-16, second
by Councilman Hays. The motion CARRIED 5-0.
city Manager's report, discussion and proposals
81 Report on Volusia County wholesale rate for water line
servinq Southeast Volusia County
~ Proposal for policy reqarding wholesale water rates
Ql Recommendation to void inter local agreement between
Volusia County and city of Edqewater
Ql Recommendation to consider constructinq a parallel
water line to Southeast Volusia County as related to
expansion of customer water services
City Manager McMahon presented the status of the wholesale water
rate discussions with Volusia County. He commented on a
conference call he had with the County Manager, Asst. County
Manager, County utilities Director, County utilities Engineer and
County Councilwoman Lynne Plaskett.
City Manager McMahon commented on a wasted meeting with County
staff which resulted in nothing but a challenge to the rate that
we had for reasons we did not consider fair and equitable.
city Manager McMahon stated he could not compromise the
principles of good economics and business for this City in the
interest of the County.
City Manager McMahon stated Mr. Arrington suggested mediation
which City Manager McMahon could not recommend. It appears they
are at impasse.
city Manager McMahon stated this City has lost in revenue in
excess of $11,000 a month for the procrastination of resolving
this problem.
i.
i:i
~
~.
f'....
,'j
~:
I
City Manager McMahon asked Council to, by policy, adopt a
wholesale rate of $4.20 per 1,000 gallons no matter who buys
wholesale, apply the appropriate state statutes which allow us to
charge the full retail rate with the appropriate 25% surcharge
and a $1,000 impact fee, and to authorize City Manager McMahon to
make an offer to purchase from the County rather than construct a
new parallel line, which would serve the same purpose, their
segment of that water line that goes from Boston Whaler to Ariel
Road.
Page -4-
Council Special Meeting
September 6, 1995
"'W'
..."
city Manager McMahon stated if the County agrees, he would also
like Council to allow him to draft a contractual agreement that
would allow the city to repay them over the same deal they
offered the city to begin with which is to give it to us at 6.5%
interest over that period of time and that we spread repaYments
to them proportionately over a twenty year time frame.
city Manager McMahon asked Council to accept his recommendation
to provide a distribution system to Cory Estates and any other
place in the County that wants this.
city Manager McMahon commented on the revenue that would be
generated from additional water connections.
~i
~
city Manager McMahon recommended Council adopt his suggestions as
policy.
councilman Hays commented on the need for good potable water and
the environmental need.
'".
.</
f
i'
~
~
Councilman Hays commented on this being a way of bringing revenue
into the city. He thought all was going well with the County.
He feels the County has stalled too long. There is a financial
impact on us because this has not been done yet.
Councilman Hays doesn't understand why they can't get cooperation
and why they have reached this point.
Councilman Hays feels it is important that st. John's become
aware of what is going on here, what the city is trying to do and
the obstacles being placed in the way.
Councilman Hays spoke about people contacting him that live
between here and Oak Hill that want the water.
Councilman Hays mentioned the wholesale rate of $4.25 per 1,000
gallons.
City Manager McMahon stated if for any reason, they sell it to
the County or anyone, he asked that they never enter into an
interlocal agreement for this type of thing. He feels it is
foolish. He feels they should have a contractual binding
agreement.
~.
~..
~
h
~.:
~
Councilman Hays agreed with City Manager McMahon's suggestion on
the rate, but he feels the rate should be a minimum of $4.25 per
1,000 gallons.
city Manager McMahon recommended they have no less than a binding
five-year contract.
Councilman Hays feels it is reasonable to have the five-year
contract, but he doesn't think it would be smart to have 30-day
notice if we are going to expend the money to do this.
Mayor Hayman commented on a meeting with Acting County Manager
and Mr. Hayduck and the need for an action plan that would
produce an agreement. They walked out of there with an agreement
of what they had to do which they did. The County staff had a
problem meeting their obligations on it. He commented on the
County looking at $3.00 per 1,000 gallons instead of the $4.20
that was agreed upon.
Mayor Hayman expressed concern about the County staff taking too
long to make a decision. He commented on this costing the
taxpayers $11,000 a month.
Page -5-
Council Special Meeting
September 6, 1995
.....
"'WI'
Mayor Hayman commented on this being a real challenge and as far
as he is concerned the new County Manager has struck out. This
should not have happened.
';~{
Mayor Hayman feels it is very tragic that the government process
has failed the citizens of Southeast Volusia who so desperately
need good quality water.
~
~.
*
l
City Manager McMahon stated Lynne Plaskett is the only person at
the County level that has worked so hard to make this a reality
for everybody. He commended and complimented her for that.
County Councilwoman Lynne Plaskett stated she has tried very hard
to work with County staff, City Manager McMahon, and Mr.
Wadsworth. She is having difficulty understanding the County
staff's position.
Ms. Plaskett commented on mediation. She feels the problem with
Larry suggesting mediation was not the mediation itself but who
he recommended to do the mediation. The suggestion was made that
it be with VCARD or the Growth Management Commission. That
response was not a very positive response.
Ms. Plaskett stated the most important thing is to provide water
to the people that need potable water. There are desperate
people outside the City limits that need good drinking water.
Ms. Plaskett commented on County Manager Larry Arrington.
Ms. Plaskett asked City Manager McMahon not to set a policy
tonight in haste. She asked him to consider an independent
person who has extensive experience with municipal and county
utility rates to be a mediator and to help resolve this issue.
She suggested Alex Kish.
Ms. Plaskett stated they need to turn this into a win-win
situation. If this does not present fair and equitable rates to
either parties, then she asked the city to do what they feel they
have to do. As the County Council representative, she requested
this last effort to bring the County and the City to some sort of
agreement.
City Manager McMahon asked the Council to hear from the
consultant that was paid to do the original study, Rick
Fernandez.
Ms. Plaskett suggested Alex Kish sit in with the City Engineer
and the County Engineer and mediate to see what is really fair.
Councilman Hays asked what is in this for Alex Kish. Ms.
Plaskett stated nothing, she is just making a suggestion. She
and Mr. Wadsworth spoke about who in the private sector is
qualified, has done utility rates and has worked with the County
and municipalities and Mr. Kish came to mind. She is suggesting
a person such as him, not him in particular. She is asking for a
last effort to bring it to closure.
Councilman Mitchum stated he is not opposed to a mediator if we
were at that point. He stated if they were going to have a
mediator, he would want someone that doesn't know anybody or
anything that is going on. He is not willing to go below $4.20
per 1,000 gallons.
Councilman Mitchum stated a mediator is not another chance. If
Ms. Plaskett can get $4.20 per 1,000 then he will give that
chance. If we are getting a mediator to offer $3.50, save your
breath.
Page -6-
Council Special Meeting
September 6, 1995
"
,{:'
.......
~~
'"\.
...
..""
city Manager McMahon stated mediation would also take time at the
cost of $11,000. Councilman Mitchum stated not to mention the
cost of the mediator.
Ms. Plaskett stated she will inform the County Council at their
meeting that Edgewater is willing to move forward and establish
this policy. This issue needs to be resolved.
Ms. Plaskett asked Mr. Fernandez if it was true that he and the
County Engineer from Jacksonville have not sat down and talked
because maybe that needs to be done.
Mr. Fernandez, Quentin Hampton Associates, commented on several
meetings he and Mr. Wadsworth have had with Larry Hayduck and
other utility consultants for the County.
Mr. Fernandez stated the biggest difficulty between the two rates
has to do with the treatment of debt service. The County's Rate
Consultant has proposed that the County's debt service be based
upon the ultimate capacity of your system.
Councilman Mitchum stated we are assuming they are going to pass
those savings on to the people but there is no indication that
they are going to pass those savings on to anybody but subsidize
other County ventures which are not good investments.
Mr. Fernandez stated there is one difficulty with owning the
pipeline south of Boston Whaler. The City does not own the
distribution systems that are currently serving the existing
water customer base down there. The transmission main is one
thing but the distribution system is the other. We have to own
both to be able to implement the program that City Manager
McMahon talked about with the expanded customer base. There is
no sense owning the southern pipeline without owning the
distribution system.
city Manager McMahon stated if they and/or Oak Hill are willing
to make agreements with the City to buy that water, which they
could learn before they purchased the pipeline, they wouldn't be
out any money at all. Mr. Fernandez stated the County owns the
distribution systems right now and that puts them in the position
that they can control what the source of water is coming into
that distribution system.
Councilman Hays stated he doesn't understand why the County is
balking at this. We are offering the County water cheaper than
what they could do it themselves. We are going to the County and
offering them something and they still want more. Councilman
Hatfield stated they want more for less.
City Manager McMahon asked Mr. Fernandez if $4.20 is a reasonable
and equitable rate to charge the County for wholesale. Mr.
Fernandez stated yes sir. It was established as a method of
meeting their needs. One of their biggest concerns was impact
fees. They wanted to keep the impact fees from that service
area. They were going to make a profit off of the retail user
charge plus they were going to be collecting those connection
fees in that portion of the service area.
Councilwoman Martin asked if there is any reason why they can't
go ahead and sell the water and if the County wants to jump in
later we can make some adjustments.
Councilman Mitchum stated he has no problems going with City
Manager McMahon's recommendation based on Lynne being able to do
something.
Page -7-
Council special Meeting
September 6, 1995
r:!
:',(::
~:y
~
f,
t
,
~
~
~
-
.~
~
~
City Manager McMahon suggested if the Council is truly supportive
of these recommendations that they adopt a policy. He feels the
water rate needs to be adopted regardless of what happens with
the County Council but if the rest make sense to adopt them
subject to Lynne not being able to come back with a contractual
agreement from the County for the $4.20 per thousand.
Councilman Mitchum agreed to City Manager McMahon's suggestions.
Mayor Hayman stated Mr. Fernandez announced he was uninformed of
the County Engineer's position. He became concerned when he
realized they were getting close to tonight's meeting and they
still didn't know the County's position. Mayor HaYman stated he
contacted Larry Arrington and discussed this issue. Mr.
Arrington gave him assurances that they would work on it and do
the best they could for us.
Mayor Hayman requested a copy of the County Engineer's
recommendation. He contacted Mr. Fernandez to see if he knew
what the other point of view and recommendation was and he
didn't. Mr. Fernandez informed Mayor Hayman he had numerous
unsuccessful attempts to contact Mr. Arrington.
Mayor Hayman stated someone has got to impress upon County staff
that when you are burning up $11,000 a month and their Engineer
will not drive 97 miles to sit in a room with the city Engineer
and staff there is something wrong.
Mayor Hayman thanked Ms. Plaskett for what she is trying to do
but it is too late. It is time for the City to earn their pay.
Ms. Plaskett stated the other alternative is that if Council
insisted on this policy that she would go the County Council and
say this is what Edgewater is going to do and find out what the
County Council wants to do. She has no problem doing that. This
may expedite everything. She questioned if Council still wants
her to go before the County Council.
Mayor Hayman stated he would like to see the Council decide on a
policy and outline the policy issues that City Manager McMahon
has asked Council to address. The last thing he wants to do is
decide on what the Council would like Ms. Plaskett to tell the
County Council. He would like her to tell them what Edgewater is
going to do unless they are willing to come to Edgewater and sit
in the Council Chambers at a special meeting to decide the issue.
Councilman Hays commented on a conversation he had with County
Councilman Phil Giorno who had no idea of the County's position.
He questioned how much communication was lost.
city Manager McMahon recommended the Council set a base rate of
$4.20 per thousand gallons and allow Lynne to go back to the
County as a commitment that if they are willing to accept that
rate we will work out the details of the contract. If they are
not, then the alternative is the policy they spoke about tonight
and give her one week to get back to Council. He would like to
put what he has in more formal typed writing and he also has a
point he needs to clear up with City Attorney Storey.
Councilman Hatfield asked if they can go ahead with this.
Mayor Hayman clarified City Manager McMahon's request and asked
if he would like this to be conditional for five years with a
surcharge of 25%. City Manager McMahon stated the $4.20 would
include the surcharge.
Page -8-
Council Special Meeting
september 6, 1995
.
~
t
.....
."",
Mayor Hayman stated assuming this is a successful motion, then we
would also ask this to be drafted and presented by Ms. Plaskett
to the County Council telling them this is what we are proposing
and if they are so inclined, they can come here and negotiate it.
They would have one week to consider that. If they refuse to
accept that then we pursue the other alternative which is market
ourselves. If they don't want to do that, we will negotiate the
purchase of the hardware from Boston Whaler south.
Councilman Hatfield so moved, second by Councilman Hays. The
motion CARRIED 5-0.
Councilman Hatfield stated let the water wars begin.
Councilman Hays and Councilman Mitchum thanked Ms. Plaskett for
being at the meeting.
ADJOURNMENT
There being no further business to discuss, a motion was made by
Councilman Hatfield to adjourn, second by Councilman Mitchum.
The meeting adjourned at 9:55 p.m.
Minutes submitted by:
Lisa Kruckmeyer
Page -9-
Council special Meeting
September 6, 1995