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09-28-2009 - Regular CITY COUNCIL OF EDGEWATER REGULAR MEETING SEPTEMBER 28, 2009 6:00 P.M. COUNCIL CHAMBERS MINUTES 1.CALL TO ORDER Mayor Thomas called the Regular Meeting to order at 6:00 p.m. in the Council Chambers. ROLL CALL Mayor Michael Thomas Present Councilwoman Debra Rogers Present Councilwoman Gigi Bennington Present Councilwoman Harriet Rhodes Present Councilman Ted Cooper Present City Manager Tracey Barlow Present City Clerk Bonnie Wenzel Present City Attorney Carolyn Ansay Present INVOCATION, PLEDGE OF ALLEGIANCE There was a silent invocation and pledge of allegiance to the Flag. 2.APPROVAL OF MINUTES There were no minutes to be approved at this time. 3.PRESENTATIONS/PROCLAMATIONS/PLAQUES/CERTIFICATES/DON ATIONS There were no Presentations at this time. 4.CITIZEN COMMENTS There were no Citizen Comments at this time. 5.APPROVAL OR CHANGES/MODIFICATIONS TO THE AGENDA Mayor Thomas announced that they would be pulling Item 10B from the agenda and moving Item 10A to before Item 8E. Page 1 of 24 Council Regular Meeting September 28, 2009 6.CITY COUNCIL REPORTS Councilwoman Rhodes had nothing at this time. Councilman Cooper read his report into the record. (Attached) Mayor Thomas read a letter into the record from the Acting Executive Director of WAV notifying them of WAV being terminated as of September 30, 2009. Mayor Thomas presented a report on the Volusia League of Cities dinner at the Yacht Club in New Smyrna. Councilwoman Rogers had nothing at this time. Councilwoman Bennington had nothing at this time. 7.CONSENT AGENDA A.Agreement to piggyback bid of the City of Oviedo for Carbon Dioxide at the Water Treatment Plant B.Approval to use Carmeuse Lime & Stone for the purchase of Quicklime, Allied Universal Corporation for the purchase of Sodium Hypochlorite and JCI Jones Chemicals Inc. for the purchase of Chlorine Gas Cylinders C.Health/Dental/Life and LTD insurance renewal premium in the amount of $1,917,866 for the period of October 1, 2009 to September 30, 2010 D.Approval of Lines of Coverage Insurance Premiums for the period of October 1, 2009 to October 1, 2010 City Manager Barlow made a staff presentation regarding the items on the Consent Agenda. Councilwoman Bennington moved to approve the Consent Agenda, second by Councilwoman Rhodes . The MOTION CARRIED 5-0 . 8.PUBLIC HEARINGS, ORDINANCES AND RESOLUTIONS Page 2 of 24 Council Regular Meeting September 28, 2009 nd 2 Reading, Ordinance No. 2009-O-06 A. - Amendment to the Land Development Code, Article V (Site Design Criteria) and Article XI (Concurrency Management System); adopting the Metropolitan Planning Organization’s (MPO) Traffic Impact Analysis City Attorney Ansay read Ord. 2009-O-06 into the record. City Manager Barlow made a staff presentation. Due to there being no comments, Mayor Thomas opened and closed the public hearing and entertained a motion. Councilman Cooper moved to adopt Ordinance 2009-O-06, second by Councilwoman Bennington . The MOTION CARRIED 5-0 . SA-0904 B. – Ian McCaskill, agent for Horizon Events LLC, requesting a Special Activity Permit for the Jam for America event with outdoor music to be located at the southeast corner of I-95 and S.R.442 on October 17, 2009 City Manager Barlow made a staff presentation. Ramera Garrett , Horizon Events, commented on the Jam for America event. Councilman Cooper commented on Horizon Events hiring personnel from the Police Department and Fire Department and they are covering all the expenses. They are also doing all of the clean up and trash removal at no expense to the City. Councilman Cooper commented on a rumor if they are successful that there might be future events and they make it part of the City’s fireworks fund and donate some money back to them constantly make that contribution so their citizens will have the fireworks every year. Ms. Garrett informed him he was 100% correct on all of his assessments. Councilwoman Rhodes commented on the reasons why she felt it was a great idea. Page 3 of 24 Council Regular Meeting September 28, 2009 Councilman Cooper made a motion to approve the special activities permit to allow Ian McCaskill to hold the Jam for America event with outdoor music on October 17, 2009 based on staff’s recommendations . Councilman Cooper then suggested they could handle the sign coming up under Item 10C on the agenda. Mayor Thomas asked Council if they wanted to go ahead and do that. It was the consensus of Council to handle Item 10C at this time. Mayor Thomas confirmed Councilman Cooper was asking to approve Item 10C with Item 8B. Councilman Cooper informed him that was correct. City Manager Barlow wanted a separate motion and vote on the special activity permit and then they could move right into Item 10C. Councilman Cooper restated the motion, second by Councilwoman Rogers . The MOTION CARRIED 5-0 . Councilwoman Rhodes asked Ms. Garrett if they had a rain date. Ms. Garrett informed her with outdoor shows there are no rain dates. 10C. Approval of a sign permit for the Jam for America Special Event to be held on October 17, 2009 on property located at the southeast corner of I-95 and S.R.442 City Manager Barlow made a staff presentation. Councilman Cooper made a motion to approve the sign permit from Silkco LLC for the Jam for America Special Activity, with the signs being permitted from September 29, 2009 through October 18, 2009 with the stipulation that the location(s) and design of the signs be approved by the Development Services Director, second by Councilwoman Rogers . The MOTION CARRIED 5-0 . Resolution No. 2009-R-26 C. – Creating a Comprehensive Economic Development Strategy Page 4 of 24 Council Regular Meeting September 28, 2009 (CEDS) by establishing a Planning Organization and Strategy Committee City Attorney Ansay read Resolution 2009-R-26 into the record. City Manager Barlow made a staff presentation. He recognized Mr. Bob McIntosh for being extremely instrumental in putting all of this together and doing a lot of the research and the recruiting for the individuals as well. Mayor Thomas asked how this aligns with their visioning. City Manager Barlow explained this is all part of it. This will help support how they get there on the economic development strategy side of it. He spoke of the economic development strategy identifying the need for economic development within the community and the amenities they have here so they know which markets to go out and attract. Councilwoman Rhodes asked what it does to the Economic Development Board. City Manager Barlow informed her how it would help support the Board. Councilman Cooper stated it now is going to recognize revenue generating areas that may be put together in consortiums that will get revenue for the City and put groups together that can get things done without the red tape of governments. City Manager Barlow pointed out it also identifies areas where they can pursue grants and makes them eligible for grants where they may not have been eligible in the past. He also spoke of catching the attention with our neighboring communities. Mayor Thomas asked for citizen comments. The following citizen spoke: Danny Young , 1870 Victory Palm Drive, Director of Environmental Services for Zev Cohen, 1840 S. Airpark Road, felt it was great to see the City of Edgewater getting ahead and looking at their economic strategies. He served on the Economic Development Board several years ago. He suggested as they look at the strategy planning that they consider the professional component of this, not just Page 5 of 24 Council Regular Meeting September 28, 2009 retail along U.S. #1 and not just contractors and using local contractors but using local professionals as part of the strategy. He commented on the list of Planning Consultants that will be involved with putting the strategy together looking like primarily Orlando firms that have a lot of budget and size for flare and presentations. Local firms that have all the same experience and knowledge that maybe a 40-person size firm, don’t necessarily have the flare but what they have is the knowledge of those firms plus they have the local knowledge in addition to that. The more the local businesses receive local work or have the opportunity to be involved in that local work, the more employees they employ locally and the more their employees eat at local restaurants and stop at the local gas station rather than going to the headquarter offices that may be elsewhere. Mr. Young commented on if this is something where there is some need for someone from the professional consulting, they were talking about identifying individuals to help out, he would be glad to help in any way he could as he has in the past. Councilman Cooper stated part of the confusion of putting together a plan of this nature, when Mr. Young saw some of the people listed and the large Orlando firms, as Mr. McIntosh was looking into this they had to go with larger firms of that nature for the acquisitions of some of this money and their credibility and who they worked with in the past to help them get that. But Mr. McIntosh has also steered them that when it comes to the hiring stage for work being done and the expertise being done they are going to pull it out of Edgewater every time they can. They put a lot of thought into that. Due to there being no further comments, Mayor Thomas entertained a motion. Councilman Cooper moved to approve Resolution 2009-R-26, second by Councilwoman Bennington . The MOTION CARRIED 5-0 . Resolution No. 2009-R-24 D. – Enacting the “Increase Reclaim Customer Initiative” Page 6 of 24 Council Regular Meeting September 28, 2009 City Attorney Ansay read Resolution 2009-R-24 into the record. City Manager Barlow made a staff presentation. Councilman Cooper stated the $1,100 has limited them throughout the years to sell the reuse and yet they have been flushing it so they pay for it twice. They pay to make it reuse and then they pay to flush it so why not sell it to the customers. Councilman Cooper asked about the flexibility of financing it and if City Manager Barlow was going to model a specific plan or work with each homeowner. City Manager Barlow informed him their recommendation is a minimum $200 up front deposit and then they will let them make payments on the rest over the next twelve months. If they want to pay it off earlier, they will do that. Councilman Cooper informed the public this is where they have the infrastructure already in place. Councilwoman Bennington referred to Section 2 of the Resolution where it stated the period will being 10/1/09 and terminate on 9/30/10 unless Council authorizes an additional time period. She asked if City Manager Barlow would bring it back to them prior to this so they can decide whether they want to continue it or will he bring it up during budget time if it is successful. City Manager Barlow explained they could keep this independent and keep renewing it or the next year when they refresh their fees and rates, if it is a successful program and they want to permanently address it as this then they can do that. He wouldn’t recommend this because of impact fees. More than likely they will bring it up around the time they do the rates. They may go back to the impact fees and just adjust the consumption rates permanently. He agreed to bring it back. Due to there being no further comments, Mayor Thomas entertained a motion. Councilman Cooper made a motion to adopt Resolution 2009-R- 24, enacting the “Increase Reclaim Customer Initiative”, second by Councilwoman Rhodes . The MOTION CARRIED 5-0 . Page 7 of 24 Council Regular Meeting September 28, 2009 Mayor Thomas then went to item 10A. 10A. Amendment 3 to State Revolving Fund Loan Agreements CS120794020 and CS120794030 Finance Director McKinney made a staff presentation. He commented on the pros and cons of the State Revolving Fund. He spoke of the con being extending their debt for four years. Councilwoman Rhodes asked how much money with the con. Finance Director McKinney informed her on the surface, $1,196,812.44. That is the additional interest expense over the additional four years. He then commented on what the refinancing of the SRF debt does. He spoke of refinancing the 1991 and 1993 Revenue Bonds, which are over 5%, some at 6%, and they can refinance them as of last Thursday at the current rate of 4.3%. That 4.3% over the next 13 years, our interest savings on that alone would be $2.2 million. Now that their rates are in line with their operating expenditures they can refinance that debt. Finance Director McKinney then commented on discussing at the workshops that they were going to have to loan money for the next year from the General Fund to Water & Sewer. They also discussed that next year and potentially the year after that it could be worse and the General Fund wouldn’t be able to loan any money to Water & Sewer. They don’t have to borrow any money in the near future to make solvent Water & Sewer. Finance Director McKinney explained without this SRF refinance, in the next three years they would have to borrow almost $2.4 million, which would be new debt. If he used that same 4.3% interest rate, the City couldn’t begin to repay this debt legitimately until 2013. They would have almost an eight-year repayment on this, which would be $436,000 in interest expense. Finance Director McKinney then commented on being able to adhere to all of our debt covenants. He spoke of being in jeopardy of not being able to make their debt covenants on 9/30/09 without this. Finance Director McKinney informed Council the balance sheet didn’t change and he wasn’t increasing debt at all. Page 8 of 24 Council Regular Meeting September 28, 2009 They still have the same amount of debt due to the SRF as yesterday. He wasn’t increasing the balance sheet, their liabilities at all. The biggest pro was that they don’t have to loan any money from the General Fund reserve to the Water & Sewer Department and their reserves are maintained at 16% of the General Fund budget. Councilman Cooper stated where they had a little bit of an excess from their 15% minimum in their reserves, where they were looking to add that excess money into the budget so they could keep their ad valorem rate lower, at this stage of the game they won’t have to do that with this refinance. Councilman Cooper stated with the 45% reduction in the debt service, does it now put them profitable? They were looking at a huge $300,000 program when they were looking at the budget. Will this put them almost even? City Manager Barlow stated the debt is still there. They are just smoothing some of those costs out. This reduces the reliability of having to transfer money from the General Fund and Enterprise to make it balanced. Finance Director McKinney explained of the $10 million budget, $4.5 million goes out in debt service. Councilman Cooper confirmed indirectly where they had the excess in the General Reserve, which they were going to loan money to the Department, they have two new avenues to reduce this debt even though they have extended an interest only loan so they could actually chop it off as they went along because there will be a lot more money available. When they talk about taking money out of the R & R Fund they know that the Utilities Department needs a lot of that money right away. Ms. Dewees has said major things have to be repaired and fixed so it is great they found a way to get some money in there to help with that because they got hit a couple of times this past year. He spoke of Council’s concerns regarding the other seven mixers. They have now put money in the budget that if that had to be replaced that is an unbudgeted source available. City Manager Barlow commented on their strategy to reduce those annual obligations and spread them out and save that money. Every refinance they have done they have made sure there is no penalty for early pay off. Councilwoman Rhodes stated it doesn’t get rid of the underlying problem, which is the fact that the cost for the Page 9 of 24 Council Regular Meeting September 28, 2009 use of it is not being charged to the customer. They know based on the debt we have now that almost every year there is something. There is some big-ticket item. There is maintenance. There is repair. They can’t go on selling people water for more than it costs the City to give them the water. She spoke of mitigating the problem for the time being but the problem not being solved. City Manager Barlow commented on this being their next area of big focus. They solved the issues and concerns on solid waste and the stormwater. This is the last big nut they have to crack. This gets them through this year as they continue to micro manage and focus on and address those big problems going forward. Councilman Cooper commented on this dropping the operational cost by a huge number and gets them closer to profitability and also allows them to not have to put a huge hike through at an economic time when it would be a major strain on the community. The important thing now is to be frugal and utilize their reserves to cover the problem. He also commented on paying the debt down with their reserve. They have a very good opportunity in the next three years. City Manager Barlow stated he is motivated because the water rates and ad valorem taxes all factor on trying to attract economic development. Due to there being no further comments, Mayor Thomas entertained a motion. Councilman Cooper moved to authorize the Mayor to execute the Loan Agreements and Promissory Notes for Amendment 3 for CS120794020 and CS120794030, second by Councilwoman Bennington . The MOTION CARRIED 5-0 . Resolution No. 2009-R-22 E. – Approve the Final Millage Rates for Fiscal Year 2009/2010 City Attorney Ansay read Resolution 2009-R-22 into the record. Finance Director McKinney informed Council two weeks ago he came before Council with a tentative millage rate of 6.49, which was the rate that was advertised. With all of the changes, he was there to propose a final millage of 6.4. Page 10 of 24 Council Regular Meeting September 28, 2009 There was a discussion regarding being able to maintain the reserves at 16% of the operating budget due to not having to pay $500,000 to the Water & Sewer Fund and the reserves not showing up in the budget. There was a brief discussion regarding the 15% requirement in the Charter to have in reserves. Mayor Thomas asked about using the additional 1% and how much it was. City Manager Barlow mentioned recalculating this by going down to 15%. Councilwoman Rhodes would like to lower the ad valorem tax rate by the money they don’t have to lend the Water Department. She didn’t see why they couldn’t do that. As long as the reserves meet the Charter, that was all she was concerned with. City Manager Barlow stated so they want them to go back to the drawing board and work the numbers and they could probably do that as they move through the agenda. Before they do that he wanted to talk about another option. If they were all about reducing the millage, another opportunity to reduce the millage rate by .0368 based on the salary option for the lower paid employees. Initially when they talked about that it was $28,000 from the General Fund that affects the millage. He spoke with the labor organizations and a majority of them weren’t favorable for that. They want fair across the board. If they wanted to take that off the table then they could reduce the millage further with that. Councilman Cooper questioned if the labor organizations wanted a flat 2% raise across the board or if they wanted to take the $28,000 and divide it between everybody. City Manager Barlow informed him they wanted the $28,000 divided between everybody. Councilwoman Rogers commented on having a motive of trying to provide raises to the lower paid employees to get them to reasonable rates so they are attracting the right types of candidates. Mayor Thomas stated he needed a consensus on Councilwoman Rhodes’ comments on reducing the millage rate by the amount of money that they don’t have to loan the water company from the General Fund. City Manager Barlow stated and take the reserves back to 15%. Councilwoman Rhodes confirmed that was right. Page 11 of 24 Council Regular Meeting September 28, 2009 Councilwoman Rogers stated at the last meeting the reserves were at 16.7% so they are taking it to 15% and then with the .386 they shouldn’t have any reason why they can’t bring the millage down to six. Mayor Thomas needed a consensus on the employees benefits raise that they voted for the lower end. City Manager Barlow informed him that equates to 0.386 mills. Councilwoman Rhodes stated if Council insisted and said that was what they wanted to happen with that money. She says no money for anybody. In the spirit of compromise she was willing to go along with that because she sees the future benefit of raising the lower level. City Manager Barlow informed her it would be a breach of contract if they insisted. Councilwoman Rogers stated that was presented to them as an option during the budget so now they are told it is a breach of contract. City Attorney Ansay informed her it’s a breach of contract because they rejected it. It was the consensus of Council to pull the raises. City Manager Barlow suggested they go through the agenda and take a break and then he could finish up during the break with John and come back with a final millage. Councilman Cooper confirmed that they were going to pull the 2% offer to the lower end employees and they were going to go to no raise at all for anybody. Several Councilmembers informed him that was the consensus. Councilman Cooper agreed. City Manager Barlow reminded Mayor Thomas to take a break at the end so he could confer with staff before they came back to the millage. Councilwoman Rhodes mentioned having to skip the next item too. Resolution No. 2009-R-23 F. – Approve the Final Budget for Fiscal Year 2009/2010 and authorize the City Manager to procure all budgeted items under $50,000 This item was to be discussed after the break. Page 12 of 24 Council Regular Meeting September 28, 2009 9.BOARD APPOINTMENTS Economic Development Board A. – Mayor’s appointment due to the resignation of Patricia Reid Mayor Thomas nominated Chris Balmer. Councilwoman Rhodes made a motion to approve the Mayor’s nomination of Chris Balmer to the Economic Development Board, second by Councilwoman Bennington . The MOTION CARRIED 5-0 . Economic Development Board B. – Councilwoman Rogers’ appointment due to the resignation of John Nelson Councilwoman Rogers made a motion to appoint William Weatherall to fill the position on the Economic Development Board, second by Councilwoman Bennington . The MOTION CARRIED 5-0 . 10.OTHER BUSINESS A.Amendment 3 to State Revolving Fund Loan Agreements CS120794020 and CS120794030 This item was discussed earlier on the agenda. B.Joseph Landers requesting to remove one 56” Historic Live Oak and one 38” Historic Live Oak from property located at 2630 Mango Tree Drive (This item was continued from the September 14, 2009 meeting) This item was pulled from the agenda. C.Approval of a sign permit for the Jam for America Special Event to be held on October 17, 2009 on property located at the southeast corner of I-95 and S.R.442 This item was handled earlier on the agenda. Page 13 of 24 Council Regular Meeting September 28, 2009 D.Elizabeth Windle, requesting a reduction or waiver of Code Enforcement fines for property located at 307 N. Ridgewood Avenue City Manager Barlow made a staff presentation. Mr. Lear informed Council the out of pocket expenses came to $354.83. Councilwoman Rhodes stated since the objective was compliance and they got that, she doesn’t see why they should have to pay anymore than what taxpayers have already spent. Councilwoman Bennington agreed, especially since it wasn’t their fault. Councilman Cooper stated it sounded like it would be compatible to him. Due to there being no further comments, Mayor Thomas entertained a motion. Councilwoman Bennington moved that they reduce the fine to $354.83, second by Councilwoman Rhodes . The MOTION CARRIED 5-0 . E.Direction to the City Manager regarding two petitions submitted by William Glaser City Manager Barlow made a staff presentation. Councilwoman Rhodes asked if there was any background on this where any other Council or Board prior to this, back at this time period, had anything to say about this. City Manager Barlow informed her no. He thought Mr. Glaser had addressed the Council on numerous issues and this being one of those from years in the past. He thought at that time they did try to increase watering or box scraping the road and they talked about some different traffic calming. Councilwoman Rhodes stated most of the people that signed the petition was because of the dust and that has been solved. She would think they would need a newer or more relevant petition. She wasn’t willing to expend police resources and taxpayer dollars if it is just Mr. Glaser. Page 14 of 24 Council Regular Meeting September 28, 2009 If the neighbors also feel that way she would be happy to do it. City Manager Barlow commented on remaining reasonably responsive to Mr. Glaser on some of the other issues that have occurred there. He spoke of his complaint regarding the City utility trucks and garbage trucks utilizing the streets and Ms. Dewees has tried to disperse those and share those with other streets throughout the neighborhood. He thought that had been addressed. Bill Glaser , 1703 Needle Palm Drive, stated one of the petitions that was attached was from 1977, where they were requesting relief from the dust but they were also requesting a stop sign be placed on the street to try and slow the traffic down. They also submitted a petition in 1984 asking for the same thing, a stop sign on the street. Councilwoman Rhodes asked Mr. Glaser if he took the petition to Council at that time. Mr. Glaser informed her they were submitted to the City Council. Councilwoman Rhodes asked if he knew if they did anything. Mr. Glaser informed her the reason he was submitting them to this Council was because they never did anything. Mr. Glaser stated they submitted one in 1984 asking for the stop sign. The Police Chief at the time went out and sat on the street at 10:30 a.m. and said he didn’t see a problem with the traffic on the street and he gave them all the normal platitudes that cities use when they don’t want to do something. Mr. Glaser commented on counting cars on his street as well as submitting the counts to the City. He talked to two different City Managers as well as different Councils with the same complaints. He referred to the City trucks using the street as a truck route. Nobody would do anything about it. Mr. Glaser then commented on some research he has done where he looked at traffic calming, which is the big thing now. He stated the question was could they use stop signs as traffic calming measures? The big theory is, according to the Municipal Traffic Code that everybody in the country has adopted, is no they can’t use stop signs as traffic calming devices. He then spoke of studies that have been done. He found a lot of the studies that were done were Page 15 of 24 Council Regular Meeting September 28, 2009 hypothetical studies. They never put a stop sign in and watched how people reacted to that stop sign. Mr. Glaser stated at the Visioning Workshop they had some of the Council exhibited an interest in traffic calming. He believed it was City Manager Barlow and Councilwoman Bennington. Mr. Glaser asked Council if somebody could please look at the situation. They have a three block long residential street that has 600 cars a day on it, which are through folks passing. Councilwoman Rhodes asked if he could prove that. Mayor Thomas disclosed he sat on his road in the morning and in the evening for two-hour blocks. He didn’t see a problem. Where he has seen a problem is Willow oak Drive and Silver Palm Drive. Mr. Glaser stated Mayor Thomas asked the City Manager to have a neutral, third party traffic check done on the Mayor’s street and Mr. Glaser’s street. They had a City employee, for two days, sitting in his pick up truck with the air conditioning running counting cars. He said he counted 100 cars on Mayor Thomas’ street and 300 cars on Mr. Glaser’s street between 7:30 a.m. and 3:00 p.m. Mayor Thomas stated they did Mr. Glaser’s on Friday and Mayor Thomas’ on Monday after they had that weeklong rain. He thinks that affected the count. Councilwoman Rhodes had a problem with spending taxpayer dollars. She wants to spend the least amount of dollars to solve Mr. Glaser’s problem if there is a problem. Mayor Thomas thinks Willow Oak and Silver Palm need to be looked at. Councilwoman Rhodes didn’t think they should be spending money on any of it right now. They don’t have any money. This is three blocks. If it affected most of the city she would be on board with everybody chipping in and paying for it. Mayor Thomas felt they needed some type of volunteer program. Councilwoman Rhodes suggested they find a volunteer CAPS officer to count the cars. Page 16 of 24 Council Regular Meeting September 28, 2009 Mr. Glaser further commented on having more traffic between the hours of 3:00 p.m. and 7:00 p.m. Councilwoman Bennington stated if they start doing this for Mr. Glaser they would have to start doing it for anybody that says they have too many cars on their streets. Councilwoman Rhodes questioned who decides how many is too many. Mr. Glaser stated this whole thing came about, resubmitting the petition, because somebody made Park Avenue a three way stop and after the construction was over across the street, the City Manager asked Council if they wanted to leave that as a three way stop. Councilwoman Bennington wanted to see it as a three way stop. The rest of the Council apparently shook their heads in consensus and said yes, to leave it as a three way stop. Councilwoman Bennington stated she said they needed a three way stop because they are violating their own parking ordinance by allowing cars to back out on that street. That is why she said it should be a three way stop. Mr. Glaser stated it wasn’t in the minutes he was saying what was in the minutes. Mr. Glaser commented on the State being like lawyers and doctors. The traffic engineers come up with this language all their own to keep them confused. Instead of saying what are the criteria for a stop sign they say what is the warrants for a stop sign. He asked Council if they had warrants when they decided to put the stop sign there and make it a three way stop. If they can do that, why can’t they do it for other folks? Councilwoman Bennington stated Mr. Glaser just said the stop sign study didn’t work. She asked Mr. Glaser if they would like a stop sign. Mr. Glaser stated they would like something. There are traffic-calming things that can be done. Councilwoman Bennington stated there is no way they can restrict that traffic without making his street a one-way street. She asked Mr. Glaser if that was what he wanted. Mr. Glaser informed her no. She asked him how he was going to restrict traffic. Page 17 of 24 Council Regular Meeting September 28, 2009 Mayor Thomas informed Mr. Glaser he had more than three minutes. Mr. Glaser stated he thought if they were on the agenda they could talk like the developers that come in and they talk for hours. thth Councilwoman Rhodes stated this is probably the 10 or 12 time they have heard it so they are not unfamiliar with it. Councilman Cooper stated he had documentation in front of him that was thirty some odd years old. He would be willing to bet half the people that signed them no longer live there. The main issue was dust. The streets have been paved so the dust issue is no more. He asked Mr. Glaser if he wanted a street sign at the end of Needle Palm th Drive. Mr. Glaser informed him at 17 Street and Needle Palm Drive. Councilman Cooper asked if they had any documentation that would support Mr. Glaser’s case. City Manager Barlow informed him no. Councilwoman Rhodes asked if they have looked. City Manager Barlow informed her they had and they had not found anything to substantiate his request. Councilwoman Rhodes hoped this puts it to rest and informed Mr. Glaser they disagree with him. Councilwoman Bennington stated they aren’t going to put a th stop sign at 17 Street. City Manager Barlow agreed to continue to evaluate it. Councilwoman Rhodes felt it needed to be evaluated along with all the other streets. There was a fifteen-minute recess at this time. The meeting recessed at 7:28 p.m. and reconvened at 7:45 p.m. Mayor Thomas referred back to Item 8E. 8E. Resolution No. 2009-R-22 – Approve the Final Millage Rates for Fiscal Year 2009/2010 Finance Director McKinney provided an explanation of loaning money from the General Fund to Water & Sewer, which technically does not reduce their reserves because he still Page 18 of 24 Council Regular Meeting September 28, 2009 has out there that asset because he has a receivable on the books still showing it. Finance Director McKinney commented on the reserves going from 16.7% to 16% because of other expenditure increases. He further explained if he takes the reserve from 16% to 15% that would reduce our reserves $110,331.00. He spoke of taking away the 2% raises, which was $28,760. The change in millage if they take away $139,058 would go from 6.4 to 6.22. If a homeowner has an assessed taxable value of $100,000 that would reduce their taxes $18 a year to go from 6.4 to 6.22. Councilwoman Rhodes stated at their last meeting they were lending the Water Department $386,000 out of the general Fund. She didn’t understand at that time that that money would be coming from their reserves. She asked if that money would be coming from their reserves. Finance Director McKinney informed her yes. Councilwoman Rhodes stated what she understood last time that that money could be lent to the Water Department and our reserves would still maintain our Charter at at least 15%. She asked if she was incorrect in that assumption? Finance Director McKinney stated he would have a receivable on the General Fund books and that receivable is an asset. Whether it’s cash or an investment, a receivable is still an asset. At the end of the day assets minus liabilities tells him what the fund balance is. His fund balance didn’t change. Councilwoman Rhodes understood what he was saying. Finance Director McKinney apologized for not clarifying the loan portion earlier. Councilman Cooper commented on the worker’s compensation drastically being reduced. They had 16.7% in the reserve and it went to 16%. If they saved money, why did they lose .7% in the General Fund? Finance Director McKinney commented on what occurred from the tentative budget to the final budget. Councilwoman Rhodes stated so now they are at 15% and a millage rate of 6.22. Finance Director McKinney stated the reserve is at 15% and no raises for anybody. City Manager Barlow stated they are bare bones. Page 19 of 24 Council Regular Meeting September 28, 2009 Councilwoman Bennington stated for that $18 a year, she knows they want to get this down but she gets real nervous when their reserve gets. Councilwoman Rhodes stated they are meeting their Charter and the reserves are for an emergency. Councilman Cooper asked Finance Director McKinney on his confidence level on hitting the 15% reserve or increasing that in the next year’s fiscal business. They should be there right? City Manager Barlow cautioned him. As they talk about next year. They know this year’s tough. All projections are next year is going to be tougher. The 16% is some of that to put aside to work them towards next year as they try to do some other things throughout the year. Councilwoman Rhodes stated next year they will still have the 15% reserves and they can make their budget accordingly. Councilwoman Bennington stated but they may have to draw from that in order to keep the City functioning. Councilman Cooper questioned what the millage would be if the only the 2% raise were removed. Finance Director McKinney informed him 6.36. Councilwoman Rhodes stated the only problem she has with that is at this point in time there are just too many people in the community where $18 makes a difference. Finance Director McKinney commented on if they reduced it to 6.36 it would reduce it $4.00. Councilwoman Rhodes disagreed. She wasn’t going to vote for it. She would vote for 6.22. Councilwoman Bennington stated their interest is to protect the whole City and even though that two or three dollars may hit a few individuals, they can’t look at that. They have to look at the best interest of the City as a whole. She feels by cutting it down to the bare bones and knowing what is coming next year, she doesn’t think that is in the best interest of the City. Councilwoman Rhodes stated so many people in the City are desperate. Every little bit helps. She wasn’t willing to put any more on the taxpayers than they already are. Page 20 of 24 Council Regular Meeting September 28, 2009 Councilwoman Rogers stated at the last meeting she voted no on the budget and on the millage because she wanted it to at least stay where they were at. She feels they should be dealing with some cuts now because they are going to have serious issues next year. She feels they are putting it off. If they get down to 6.22 tonight that is better than 6.49 but it still isn’t low enough. They have a Finance Director now that she is applauding all the efforts he has made on the refinancing and saving the City interest and redoing the debt on the Water & Sewer and he is trying to manage a mess. She still feels they needed to cut some positions because their budget is still too high. She knows her colleagues don’t feel the same way but she feels next year is going to be worse. Councilwoman Rhodes stated they might be forced to next year and as long as they can keep people working, that’s what she wants to do and she wants to do it at the lowest rate possible and right now that is 6.22. Mayor Thomas asked for a recommendation from City Manager Barlow and how he felt. City Manager Barlow recommended 6.22, which brings them to the 15%. The Charter recommends they will maintain 15% to 25% and they are at the basement and he didn’t know how they could get there if they need it. Mayor Thomas asked City Manager Barlow if he felt comfortable working with the 6.22. City Manager Barlow informed him he works at the will of the Council and he will make that happen if they land on the 6.22. He couldn’t guarantee that they would maintain all the positions and level of service throughout the year but he would do his best to do that. Before they violate the Charter, he will reduce services and/or staff if they have to. Mayor Thomas asked City Manager Barlow if they went with 6.36 would he think they would be in jeopardy of losing any positions or jeopardy. City Manager Barlow stated 6.36 gives them a little more breathing room and helps them going into next year as they continue to look for other strategies to extrapolate efficiencies throughout the year. Page 21 of 24 Council Regular Meeting September 28, 2009 Councilwoman Rhodes stated that money is for an emergency and if such emergency arose that they needed to use some of it in case of an emergency, then they have the ability to do that. City Attorney Ansay stated the way the Charter reads it says the City is required to maintain. Maintain means always have. Maintain reserves that are a minimum 15% and go up to 25%. Theoretically if they have down to the penny 15% an argument could be made if they took out $5 they are now in violation of the Charter because they would no longer be maintaining 15% of the General Fund. The point of the reserves is to be there in the event of a catastrophe. At a minimum she would advise them if they ever had to dip into those reserves they would need to find a way to immediately pull money from other sources and would potentially be looking at millage rate increases the following year. They would have to immediately do everything in their power to come back into compliance with the Charter. It has the word maintain and says 15% is the floor. Mayor Thomas asked how long 15% in the reserves would operate the City. Finance Director McKinney informed him approximately 60 days and that is only General Fund. City Manager Barlow stated that is normal operations. Finance Director McKinney explained if something happened the only two funds that could maintain operations today is the General Fund and Refuse. Due to there being no further comments, Mayor Thomas opened and closed the public hearing and entertained a motion. Councilwoman Bennington moved to approve 6.36, second by Councilman Cooper . Finance Director McKinney read the TRIM statement, which is required by law. The MOTION CARRIED 3-2. Councilwoman Rhodes and Councilwoman Rogers voted NO. 8F. Resolution No. 2009-R-23 – Approve the Final Budget for Fiscal Year 2009/2010 and authorize the City Manager to procure all budgeted items under $50,000 Page 22 of 24 Council Regular Meeting September 28, 2009 City Attorney Ansay read Resolution 2009-R-23 into the record. Finance Director McKinney made a staff presentation. The total operating budget was $40,157,650.00. Mayor Thomas asked how much that was reduced from last year. Finance Director McKinney informed him not quite $2 million reduced from last year. Councilman Cooper questioned if the City Manager procuring all budgeted items under $50,000 was always there. City Manager Barlow informed him last year it was. It is in their purchasing policy as well. Due to there being no comments, Mayor Thomas opened and closed the public hearing and entertained a motion. Councilman Cooper moved to approve the Final Budget for Fiscal Year 2009/2010 and authorize the City Manager to procure all budgeted items under $50,000, second by Councilwoman Bennington . The MOTION CARRIED 4-1. Councilwoman Rogers voted NO . 11.OFFICER REPORTS A.City Clerk City Clerk Wenzel had nothing at this time. B.City Attorney City Attorney Ansay had nothing at this time. C.City Manager City Manager Barlow estimated a reduction from last year’s General Fund only expenditures being $1,811,757.00. Councilman Cooper asked the dollar value of the 1% difference between the 15% and 16%. Finance Director McKinney informed him $110,000. 12.CITIZEN COMMENTS There were no Citizen Comments at this time. Page 23 of 24 Council Regular Meeting September 28, 2009 13.ADJOURNMENT There being no further business to discuss, Councilwoman Bennington moved to adjourn. The meeting adjourned at 8:17 p.m. Minutes submitted by: Lisa Bloomer Attest: APPROVED: City of Edgewater, Florida ___________________________ Bonnie Wenzel, City Clerk Michael L. Thomas, Mayor Page 24 of 24 Council Regular Meeting September 28, 2009 CITY OF EDGEWATEF RECEIVED 9/28/09 Council Meeting: Ted Cooper Dist. #4 Report MPO Meeting held 9/22/09: Major topic of discussion was the stimulus AC i projects. New Smyrna Beach due to a low bid forfeited $305,000 and from this sum $57,000 was offered to Port Orange for a project they could not afford. Mayor Green was taking it before his Council on that very night. The modeling plan on street repair was adopted by all members and the director felt each city would comply. It is on our agenda later tonight. YMCA; financial report was submitted with a plus of some $3,700.00. Herman Mitchell and his team have been operating with less staff and lack of one director. The excess work has been picked up by present employees. In an effort to expand involvement in the community the YMCA has added two new members to the board, Tom Mowery, and Eugene Sheldon. The Strong Kids Campaign has raised $16,000 so far and well on their way to reach the goal of $21,000. All contributions gladly accepted. More importantly just join the YMCA. Jack Grasty, newly elected incumbent and appointed Vice Mayor of New Smyrna Beach, reported that his council would not approve any monetary support the Southeast Volusia YMCA. NSB has many members that belong and a high percentage of the after school program for children, comes from NSB, which is mostly a charitable program by the YMCA. The Board was offended by the gesture and opted to send a delegation to meet with NSB Council. Mr. Grasty reported that the council's opinion was, "you elected to build it in Edgewater, why should we support it". There still is some Capital Reserves left from the Edgewater Power Boats donation of a year ago, $4,000 will be used to replace the glass doors. Upgrading the phone system and replacing the burned out lights in the gym will cost $2,466, this will come from the operating reserves. WAV Board: I attended that last meeting of the WAV as requested by the Mayor, most of the meeting was somber in nature and the time was spent settling up financial affairs. The city of Edgewater will be receiving their fair share of the account balance in two payments once shortly after Sept. 3oth and the balance a few months later once all accounts have been satisfied. A list of equipment and supplies was submitted to the city clerk for a bidding process on any items board members might be able to use. After the cities have been heard from the balance of goods will be offered to the public. A list is available in the City Clerk's Office.