07-29-1991 - Public Information & Discussion Meeting
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CITY COUNCIL OF EDGEWATER
PUBLIC INFORMATION AND DISCUSSION MEETING
JULY 29, 1991
MINUTES
Mayor Tanya Wessler called to order the Public Information and Discussion Meeting
on the Florida Shores Improvement Area Special Assessment Program at 6:00 p.m.
in the Community Center.
ROLL CALL
Mayor Tanya Wessler
Councilman Kirk Jones
Councilperson Louise Martin
Councilperson NoraJane Gillespie
Councilman Michael Hays
Interim City Attorney Nikki Clayton
Acting City Manager Fred Munoz
City Clerk Susan Wadsworth
Police Chief Lawrence Schumaker
Present
Present
Present
Present
Present
Present
Present
Present
Present
Ron Ferland, of Dyer, Riddle, Mills & Precourt, the Cityls Consulting Engineers,
restated the presentation held given on July 15, 1991, on the wastewater
collection system, wastewater treatment plant expansion, and reclaimed water
facilities that will be put in throughout the assessment district.
Mr. Ferland stated the State Revolving Fund audit is required by the State every
year to be sure itls used appropriately and within constraints of the project.
He added it can be part of the City.s general audit but has to be looked at and
must be certified by the auditor to the State.
Ms. Clayton pointed out the special assessment district was drawn to encompass
only the area where the collection system will be built. Mr. Ferland agreed.
Mr. Ferland stated the assessment rate will be adjusted to the interest rate at
the time of borrowing and now it's about 4.19%. He noted a 20 year payment with
4% discount for early payment in November would be an annual payment of $99.71
per equivalent lot for the collection system.
Mr. Ferland stated the wastewater treatment plant component would be $350 per
equivalent parcel and over 20 years with 4% early payment at 5-1/2% would be
$30.50 per year per equivalent parcel. He pointed out this applies to developed
and undeveloped lots. He explained the $350 would equate to impact fees in
concept and the impact fee pays for treatment plant capacity and this is in lieu
of paying the impact fee. He noted the impact fee for wastewater now is $1,425
and impact fees should be recognized as being a funding contribution of the
existing customers because they've contributed those impact fees.
Mr. Ferland pointed out the approximate $650 septic tank abandonment and $2-300
for lateral hook ups to your homes are costs to be borne by the homeowners.
He stated these assessments will be added to your Volusia County tax bill and
will show up as a line item along with schools, and the County, etc., and if you
pay escrow, that amount would be going up.
Mr. Ferland explained there are four construction phases associated with the
program and they tried to allow more local contractors to participate in this
construction rather than just one big project that only large contractors can
bid. He added they also want to have an opportunity to find out what problems
are associated with the project before they bid the next phase to fine tune
documents. He stated phase 1 assessment will start in tax year 1992, which is
November, 1992 through April, 1993, and phase 1 construction would begin in
October, 1991 and be complete October, 1992, and everyone hooked on during that
period.
Mayor Wessler called a recess at 6:35 p.m. and called the meeting back to order
at 6:42 p.m.
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Mayor Wessler introduced Ms. Krista Storey, the new City Attorney who will be
coming on board soon.
Mayor Wessler stated Councilperson Gillespie handed her a suggestion on how to
handle public participation, with each person speaking once until all who wish
to speak get a chance, 3 or 5 minute time limit per person, and 5 minute breaks
on the hour. Councilperson Gillespie stated Mr. Hastings called her about this.
Councilman Jones agreed so everyone has a chance to speak as it wouldn't be fair
to allow anyone to speak 2 or 3 times before the rest speak once. All Council
members indicated concurrence.
Mayor Wessler introduced Dan Allen of Dyer, Riddle, Mills & Precourt, and stated
he will be here for the August 3rd workshop. She requested public input.
Bill Smith, 2629 Victory Palm, stated he keeps hearing the sewer system is an
upgrade and not a new plant. Councilperson Gillespie replied that's correct,
according to the minutes. Councilman Hays explained Mike Billick asked him if
it was a new sewer plant and his response was that itls basically a new sewer
plant but there are some areas that wilJ be refurbished and that will be used
as a holding tank. Mr. Smith stated Mr. Ferland said itls $350 for the new
sewer plant and those outside the assessment area will only pay user fees and
he didnlt hear anything about those in Florida Shores paying user fees. He said
it's not fa i r to pay $350 and other peop 1 e pay on ly user fees. He asked if
Council felt that's fair. Councilperson Gillespie stated no, Councilman Hays
stated he's not convinced it's fair, and Mayor Wessler, Councilman Jones, and
Councilperson Martin indicated they think it's fair.
Rav Shambora, 1915 Juniper, stated he's been on sewer for 24 years and got an
assessment charge. Mayor Wessler clarified if hels on sewer now, he won't be
charged. Mr. Ferland explained some parcels were billed in error and if it's
not in the district, it should be excluded, and people that were billed that have
sewer should notify the City Clerk and that assessment will be removed. Mr.
Shambora stated the base figure may change if he and others were included. Mr.
Ferland agreed. Mr. Shambora stated he's on water restriction and the level
is higher than when he moved here. He said this new program will use water on
th i s side of 95 and some shou 1 d be go i ng back over to recharge the water.
Councilperson Gillespie noted thatls one of the proposals.
Henrv Dardinski, 2704 Sabal Palm, stated if Council passes an ordinance assessing
property owners in Florida Shores for a sewer collection system based on front
footage the ordinance will be deemed invalid and unconstitutional and not to be
enforced. He reviewed the authorities regarding affecting rights and the method
of pro rating special assessments. He asked what benefits will be derived by
Florida Shores property owners. He said benefits contemplated by a municipality
for an improvement must be equally spread to all persons required to pay the
improvement. He referred to road paving assessments and asked if that method
is fair and equitable in assessing a sewer system. He showed on an easel an
example of a duplex with the home on either side of an 80 foot lot. He said the
benefit to be derived will be disposal of 6,000 gallons of wastewater per month
and under the present system each homeowner will be assessed $1,143 for each 40
foot lot so a combined parcel with a duplex will be required to give 12,000
gallons with an assessment of $2,286. He pointed out a quadruplex with two
families on either side will have to get rid of 24,000 gallons but will only be
assessed $2,286 because it's on an 80 foot lot. He asked if that's fair and
equitable. Mr. Dardinski pointed out if someone has 3 lots he's assessed $3,429
but is still getting rid of only 6,000 gallons of wastewater and it will penalize
someone who has extra lots. He added someone on a corner lot needs a set back
of 30 feet from each street but will be assessed on the 40 foot for each lot.
He stated the question isn't front footage but the benefit being derived, such
as getting rid of 6,000 gallons per month. He cited another case that was
resolved against a municipality. He stated the system will be composed of 12
lift stations and piping and the depth will vary from 4 to 8 feet. He said the
cost of the collection system should be apportioned and/or pro rated on the basis
of special assessment of $1,425 per equivalent parcel.
Mr. Dardinksi stated Dyer, Riddle has done a good job but theylre using the front
footage system of assessing people for the sewer system and it's not fair or
equ i tab 1 e and they can go back to the drawi ng board and come back wi th an
analysis on another way for the property to be assessed.
2 Council Public Information Meeting
July 29, 1991
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Mrs. Scalese, 2316 Tamarind, asked what happens with the balance owed if someone
sells their home. Councilperson Gillespie replied it's a property lien that
has to be settled at the time of sale and it has to be paid off at closing unless
you write it up when you sell. Mayor Wessler stated you have to pay it and the
property that doesn't have a sewer will go up in value and you'll get your money
back. Councilperson Gillespie noted that anyone with a paving lien is expected
to settle at closing. Councilman Jones stated it1s negotiable. Mrs. Scalese
asked if it's a lien on your house. Councilperson Gillespie replied yes.
Andv Anderson, 1730 Pine Tree, asked if the balance can be paid in 5 years if
a piece of property is sold even though someone goes for the 20 years. Mayor
Wessler replied yes. Mr. Anderson asked if it can be at any time. Councilperson
Gillespie replied yes, with no penalty for early payment.
George Ewing, 2923 Royal Palm, asked for clarification on the notice of
assessment. He said the notice says the assessment will be collected by the
Volusia County Tax Appraiser and failure to pay will result in tax certificates
which may result in loss of title. He asked if Volusia County agreed to collect
this tax. Mayor Wessler replied Mr. Munoz talked with the County and they've
agreed to do it but unless Council did something at the last meeting (when she
wasn't present) it wasn't decided. Councilman Hays explained they'd discussed
that briefly but it's still undecided and some feel it would be a better
mechanism for the County and some feel the City should do it. Mr. Ewing stated
this doesn't have Volusia County's okay. Mr. Munoz pointed out Chapter 197
provides authority for the City to go to the County to place a non-ad valorem
assessment on the bill and they have to do it per the Statutes if we meet the
requirements. He explained we don't have a dollar amount on the cost yet but
the County has to do it and they'd prefer not to because it's more administrative
work for them. Councilman Jones noted we're waiting to see what they'll charge
and if we want to go that route. There was further discussion regarding the
contacts with the County regarding the billing. Mr. Ewing asked if it would be
on the water bill or annually if done by the City. Mr. Ferland pointed out it
cannot be part of the water bill because undeveloped would have to be billed.
Council person Gi llespie noted if they bi 11 undeveloped for stormwater, that would
be the same thing. Mr. Ferland stated it won't be part of the water bill and
whether the City or County collects, the requirements of the lien and a tax
certificate still holds true and the City has to do it. Mr. Ewing asked if the
decision on who will collect and whether monthly or annually should be decided
before it's voted on. Mayor Wessler replied yes, but not tonight, it will be
next Tuesday night. Councilperson Gillespie explained they go back to sitting
as a Council after the Board of Equalization.
Mr. Ewing stated citizens should know that regardless of how it's collected, if
they don't pay this assessment, they'll lose their homes and many people won't
be able to afford this assessment. He asked that they get the assessment down
to around $1,425.
Mayor Wessler stated she's received a number of calls about the petition Mr.
Oardinski is passing around and it's been a scare tactic which is a poor way of
getting a petition signed. Councilperson Gillespie stated she had 27 calls about
taxes being raised by Fred Munoz. Mayor Wessler said that's the truth.
Councilperson Gillespie said no, it's not necessary to raise it. Mayor Wessler
suggested they get someone else if they don't believe what Mr. Munoz says.
Councilperson Gillespie said no, they shouldn't scare people. Mr. Ewing
suggested Mayor Wessler get out and talk to the people. Mayor Wessler noted
she's been doing that. Mr. Ewing stated he knows what people are talking about
because he's been going out with a petition. Mayor Wessler noted he's judging
her again before he's talked with her. Mr. Ewing stated helll talk about
anything he wants to regarding taxpayers. Mayor Wessler stated he's calling
her a liar and he doesn't have a right to do that.
Ron Sparks, 2211 Willow Oak, asked if it1s cheaper to do it in phases. Mayor
Wessler replied no, but part of the reason is to get more competitive bids.
Councilperson Gillespie noted they came in 16% ahead on the water by phasing by
bidding. Mr. Sparks asked how the cost of hook ups to the house are to be
determined. Councilperson Gillespie replied that's his responsibility and he
can put the line in himself, that's why the price varies. Mr. Ferland stated
it's approximately $350 for installation of the lateral to the home to the point
of sewer connection to dig the line and get it around the house and then about
3 Council Public Information Meeting
July 29, 1991
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Ron Sparks (Continued) $300 or so to pump out the septic tank and fill it with
clean sand according to regulations. He added you can dig the ditch and lay this
line to the house to save that money. Councilperson Gillespie stated it's $120
to pump it out and that can reduce the cost.
Mr. Sparks asked why residents of Florida Shores are being the only ones assessed
for the new wastewater treatment plant if it's to be used on a 50/50 basis by
the other res i dents. Mayor Wess 1 er rep 1 i ed everyone in the City is payi ng
through user fees and Florida Shores residents are being charged the $350 like
an impact fee but it1s a special assessment. She explained in Shangri-La,
Wildwood, Meadow Lake, and Pe 1 i can Cove a contractor puts in the co 11 ect i on
system in that subdivision and when he builds a house he pays an impact fee to
get a portion of the wastewater treatment plant. She added it's $1,425 and after
he pays that, he adds it to the cost of the house so those people paid in the
house price. She compared the price of a home in Meadow Lake to Florida Shores
and noted Florida Shores is getting off relatively cheap with $350. Councilperson
Gillespie pointed out Florida Shores is not a subdivision. Mayor Wessler stated
to re-charge people is not fair and she didnlt pay anything for sewer.
Councilperson Gillespie said she paid water and stormwater and has paid 87% of
theirs. Mr. Sparks stated he doesn't buy the logic of their argument.
Mercedes Hoffman, 208 Lee Drive, agreed with Mayor Wessler. She said in 1962
she came to Florida and then retired in 1964 and bought a lot with the selling
point being water, sewer, and a paved road. She added she built a house in 1967
and moved to Edgewater permanently and then in 1980 she bought a lot in Silver
Ridge with the same selling points used and they paid the price because it was
their choice. She compared prices for lots in the 60ls and the poor conditions
of the lots at that time. She referred to shoddy workmanship of builders and
the building inspector's responsibilities and her contact with former legislator
Bill Chappell with the builders in question leaving town. She said people say
they helped her pay for this but she bought 2 lots when they were still up North,
so how could they have helped her. She stated if the situation were reversed
and old Edgewater had to have sewers, she wonders if the Florida Shores people
would band together and say 1I1et1s help old Edgewater put their sewers inll. She
said she thinks not, and she's against old Edgewater baling out their sewers.
Bill Kirkwood, 3016 Queen Palm, asked that the verbal presentation be put in
writing because there have been so many figures thrown out and they need to know
the bottom line as each one seems to be reduced. He said he heard people who
already have sewer were included in the amortization of the assessment which
could affect the figures. Mr. Ferland explained he's not sure the number of
equivalent lots and equivalent parcels are included but it wouldnlt be
considerably higher if so because there are less than 50 equivalent parcels and
100-150 equivalent lots and it's mostly in the area West of the railroad tracks
on Juniper and Kumquat and it won't change the assessment amount significantly.
Mr. Kirkwood again asked to have the estimate in writing. Mayor Wessler
explained the estimate is as high as it can go and they cannot be specific until
they go out for bid and the equalization hearing is held. Mr. Kirkwood stated
a petitioner did not threaten him with a possibility of losing his house and he
told the petitioner he wouldn't sign anything until he hears what's presented.
He said there's concern with the $497. Mr. Ferland explained it's $267 user fees
as a monthly bill based on 6,000 gallons of water consumption and that fee will
be lower if you use less, and the remainder is the fixed amount of a yearly base
and conceptually it will be on a tax bill. Mr. Kirkwood stated some have been
told about losing their house because of unpaid bills and it can go to tax lien
if part of the tax bill isn't paid and they can't take away from that
possibility. He said $497 of user fees or special assessment is about $40 a
month and some property owners will have a difficult time with that so they need
to look at how they're going to help some people, such as program eligibility
for free meals in the school. Mayor Wessler noted thatls Councilman Hays' pet
project. Councilman Hays said he personally brought this up and talked with Mr.
Ferland and Mr. Munoz about it and if they used the mechanism of collecting this
themselves, they could individually evaluate these situations. He pointed out
there's a big difference between those that will not pay and those that cannot
pay but they're not looking to put someone on the street if they cannot pay and
the County won't have the heart we'll have in collecting this. Mr. Kirkwood
stated Indian River Elementary School isn't a rich school, it's just the new
school and he has no problem paying his fair share but doesnlt want to be hit.
He said it seems Council's done a lot of work and he appreciates it.
4 Council Public Information Meeting
July 29, 1991
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Ben Waaner, 3036 Travelers Palm, stated he's been approached to sign the
petitions but has talked with the Mayor and some Councilmembers about the
problems they've been facing and he feels this is fair and equitable and the
Counc i l' s done a good job. He sa i d he' 11 pay it up front when he gets the
assessment and they should get the sewers in and quit listening to people who
want to get something for nothing.
Ben Vasquez, stated he represents Mrs. Bessie Trombetta, 2807 Needle Palm. Mayor
Wessler asked that the record show Mr. Vasquez does not live in the City. Mr.
Vasquez stated he's not a resident but there's nothing in the Constitution that
he cannot express any misrepresentations and he's notified the Department of
Justice and made charges against this entire Council. He stated the question
is whether this is legal and it doesn't matter what the people want or whether
they can afford to pay because he knows the political system and he's sure some
of their pimps are around here supporting them tonight. Mayor Wessler advised
Mr. Vasquez that if he makes one more comment like that he'll be asked to leave.
Mr. Vasquez stated he'll be glad to leave this City and if this is a legal
program, why doesn't the Council go to court and get a declaratory action to say
if it's legal. He said they're bypassing Florida Statutes and there are many
things happening that people should consider and one is it's important to know
they may and will lose their homes if they don't pay their liens. He said the
County has to pick it up as the City Manager stated and it's in the Statutes and
there are no exceptions in the law. He said they've misrepresented that things
he said publicly or put out were misleading but it's never gone to court to prove
him wrong. Councilperson Martin asked Mr. Vasquez to stop coming here with scare
tactics on a problem they've been working studiously on. Mr. Vasquez said he
didn't come here for her to reprimand him. Councilperson Martin stated he does
not represent Edgewater. Mayor Wessler asked that every time he comes, Mr.
Vasquez is to be removed by the Chief. Councilman Jones stated Mr. Vasquez has
been around a long time and he referred to an issue made when he was running
for Council that it was illegal because he was a New Smyrna Beach firefighter.
He said he doesn't appreciate his taking things out of context and anytime they
try to do something Mr. Vasquez has something negative to say. Chief Schumaker
escorted Mr. Vasquez from the building.
Robert Bonney, Meadow Lake, stated some people in Florida Shores have presented
the facts right and something has to be done about Florida Shores as it should
have been shut up years ago.
Councilperson Gillespie stated she asked the City Attorney about parks and she
pointed out it's fair with the neighborhood parks. She said one of the questions
that came up was there are 7 City parks in Florida Shores and the cost of
sewering and servicing with effluent as well as water has been borne and shifted
out to homeowners and resident of Florida Shores. She noted now Whistle Stop
Park is on septic and would need to have an adjustment but neighborhood parks
she felt were fine for cost of their project. She said this is something that
needs to be considered and she'd mentioned it to Don Berryhill and he asked what
percentage of the parks are used by Florida Shores and she's never asked where
people are from, they're just Edgewater residents. She said she also asked Mr.
Berryhill when we could go to bid and he said we could go to bid for the sewer
plant any time because if the bids would arrive before the loans are signed
they'd give us a letter of intent and there was no problem. Mr. Ferland asked
if she's received the letter of intent. Councilperson Gillespie replied no, Mr.
Berryhill said it was up to Mr. Ferland because of the Federal loan papers he
was filling out for the grant. Mr. Ferland stated the technical review hasn't
been completed and until they receive the letter, they don't want to go out for
bids. Councilperson Gillespie noted Mr. Ferland did 57 pages of special
questions not anticipated just to get the grant.
Jake Lodico, 302 N. Riverside, stated this meeting reminds him of North and South
Korea. He said he considers everyone to be his friends unless they're mean and
contemptible and if they are, he walks away and avoids them. He said he served
8 years on City Council and as Vice Mayor and Mayor and coordinator of Streets
and he never knew Florida Shores was not Edgewater. He said Florida Shores didn't
pay for sewer and nobody paid for putting pipe lines in. He referred to a
meeting with a New Smyrna Beach Commissioner and a former Police car bought. He
said he spent a lot of time in Florida Shores and the engineer put pipes through
the center of the canals and when it rained, it flooded the streets. He said the
City paid for stop signs and pipes and started putting sewers in and the rest
of the City shouldn't pay for this because they've paid it the last 30 years.
5 Council Public Information Meeting
July 29, 1991
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Mayor Wessler asked Mr. Munoz for his input on the utility tax research he did.
Mr. Munoz stated on October 1, 1988, the utility service tax went into the
General Fund but during the period from FY-65/66 through September 30, 1988,
$3,403,929 was collected. He said if they assume 50% of that amount came from
Florida Shores, that would be $1,701,965, and assuming that subsidy that Florida
Shores was making to the water and sewer fund went to both utilities, water
utility that they were connected to, and the sewer, which they were not connected
to, they feel they have some credit due them. He said this is the big issue as
far as utility tax and the basis of their claim that they paid for the sewer
system in the rest of the City, then they're looking at $850,000 that can be
attributed to Florida Shores residents subsidizing the sewer portion of the water
and sewer fund. He said assuming 3,400 homes in Florida Shores as of now that
comes to an approximate credit of $250 per household. He noted some people have
been here less than two years and did not contribute to the tax because it ended
October 1, 1988 when it was placed in the General Fund where it should have been
all along. He pointed out it's not illegal to do it the way they did but it's
good sense to put it in General Fund because the water and sewer fund should be
self-supporting from user rates. He said in recognition that there was an
element of credit due Florida Shores, that was the driving force behind taking
the $2 million dollar grant which has been stated belongs to the City, and if
you assume 50% of the people live in Florida Shores and 50% lives outside of it,
then you'd anticipate $1 million dollars would be allocated to Florida Shores
and another million to the other residents. He added to meet that inequity we
said to apply that additional million dollars to the assessment cost in Florida
Shores. He stated he was not attempting to use scare tactics when he said next
year he budgeted $819,000 to utility service tax and with a rolled back rate of
4.3215 millage for this coming year, if you remove such a large amount of money
it has to be made up somewhere and the most logical place to make it up would
be ad valorem which would have to go up about 59% or from 4.3215 millage rate
to 7.02. He said it was argued they could find savings of $819,000 and therefore
the millage rate would not have to be increased and if that is true, which he
doubts, then held think the better purpose would be to reduce the general fund
operation by $819,000, keep the utility service tax of $819,000, and lower the
millage rate by 60% to about 2 mills instead of 4.3215. He noted he'd passed
out copies for the public which shows the calculations and the monies collected
for the utility service tax. He stated the maximum credit would be $250 per
residence and they thought they were meeting that inequity by putting the full
grant to the Florida Shores assessment area.
Elizabeth Eiss, 3103 Travelers Palm, asked if everything's included in assess-
ments with hook ups and all. Mayor Wessler replied the pipe from your house to
the road and abandoning the septic tank is the owner1s responsibility and hook
up fees have to be decided by Council unless it was decided last week while she
was out of town, and it's $150. Ms. Eiss stated she has 3 lots and is on the
corner where they're talking about the runoffs and she asked the thoughts on
that. Mayor Wessler asked if a duplex is assessed for one or two wastewater
impacts. Mr. Ferland replied a duplex will be assessed two equivalent parcels
or two wastewater treatment plant capacities. He said there's confusion about
when you put the collection line in, what is the benefit, and the benefit of the
sewer line is not capacity but collection, getting sewer from point A to point
B. He said a duplex has two families and their front footage for pavement would
be the same as a single family residence with 80 foot of frontage and the assess-
ment they have is broken down into two categories. He explained if you have a
single family residence on 2 lots or 4 lots it doesn't matter as you get the
same assessment for capacity, that is 1 wastewater treatment plant capacity, or
1 wastewater treatment plant equivalent residential unit. He said that was $540
and now will be $350. He said regardless of the number of lots you have, the
front footage method is the prevalent method of assessment for collection systems
throughout the State as well as the country and it's quoted in the Statutes.
He said it's front footage or some other method as deemed appropriate by the
local governmental body and that's because front footage has a strong legal
precedence and is the predominant method of assessment. He said the concept of
front footage assessment is to get from point A to point B you have to pass by
somebody.s piece of property, and the proportionate benefit of the proportionate
share of the cost is related to the amount of feet of somebody's property you
have to pass by in a collection system, and the collection system assessment by
number of equivalent lots is based on how many 40 foot increments you have to
go by to get from point A to point B. He stated the wastewater treatment
assessment is based on if you have contiguous or adjacent lots they are assuming
you'll only have one residence on them and you only pay one wastewater treatment
6 Council Public Information Meeting
Ju ly 29, 1991
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Elizabeth Eiss (Continued) and one treatment plant capacity assessment. Mrs.
Eiss said her property is on the proposed list to have the drainage canal on and
she wants to put a fence up and there's a footage requirement on where you can
put the fence. She said if she's going to have a drainage canal there, her fence
should be able to go to the end of the property to have full yardage. Mayor
Wessler stated that's s special exception Council would have to make and she
personally doesn't see a problem with it. Councilperson Gillespie suggested
she talk with City Engineer Gates Castle.
Giai Benninaton, 121 Virginia Street, stated they've heard 50% of the wastewater
treatment plant is going to the unsewered section of Edgewater and 50% to sewered
section but rates that were just put into effect are affecting sewered people
now and they're paying the higher rates now for upgrading of our present sewer
treatment plant. Mr. Ferland agreed. Mrs. Bennington stated they're paying
higher rates for what it will cost to improve the existing plant and the capacity
is not needed if the unsewered areas don't go on sewers, so why should they pay
for something they don't need. She said it's because the unsewered portion needs
to go on sewers the plant has to be expanded by 50% and people now on sewer are
paying their fair share in improvements and upgrade of the sewer treatment plant.
Councilman Hays stated several people have made that point to him and he sees
the point and another is in the presently sewered part of the City a large
portion of the infrastructure is going to need some serious upgrading and
changes. Utilities Director Terry Wadsworth agreed. Councilman Hays asked if
that's what these rates are addressing. Mr. Wadsworth replied it's included in
the R&R maintenance. Councilperson Gillespie asked if they'd increased almost
double for R&R what Mr. Ferland had recommended because of the age of the lines
and now at capacity they're putting out 2 million gallons this week and the
meters cou 1 dn I t go any higher wi th the stormwater. Mr. Wadsworth agreed,
pointing out there's a difference between repair and maintenance and renewal and
replacement as far as the bond and our indebtedness go. Councilperson Gillespie
stated they're trying to help the old part of the City. Mr. Wadsworth agreed.
Councilperson Gillespie said at the same time and equal to what they're trying
to provide to the other section of the City unsewered.
Henry Dardinski stated he wants to correct the misconception Mrs. Bennington left
and even if they didn't have Florida Shores, by 1995 the City's being mandated
to stop disposing of wastewater to the River and that's why they have to upgrade
the plant, not because of Florida Shores.
Councilman Hays stated as policy makers of the governing body they've reached
the point to make a policy decision on how to finance this wastewater portion
of the CIP. He said United Taxpayers of Edgewater proposed the use of utility
service tax and that leaves them with three options: increase ad valorem,
decrease general budget, or combination of the two to include rates and such.
He said they should make a decision so the Consultants, the Engineers, and people
in the City will know what direction they're going. Ms. Clayton stated this is
a public information session, not regularly called, and he can suggest points
for discussion and decision for future meetings. Councilman Hays suggested they
hold a special meeting to address that issue and the issue of a funding source
for the wastewater treatment being from the utility service tax. He said they
need to resolve that because it's the bone of contention and they need to have
the meeting before next Monday. Ms. Clayton suggested if they want to have a
special meeting it could be Saturday in conjunction with the public information
session and he can suggest things for future agendas and schedule new meetings.
Councilman Hays said a lot of people in United Taxpayers have worked on this and
he believes they're working hard and their intentions are good and Council needs
to consider if that's a workable, viable solution. He said this seems to be the
big issue and the other fairness issue has been addressed and they've all worked
hard at looking at all the areas and it comes down to whether they do it by
assessment or use internal monies. Mayor Wessler said the workshop is at 2 and
it could be set up then. No Council member objected. Councilperson Gillespie
asked to also discuss the issue about parks, such as Whistle Stop and the cost.
Mayor Wessler said any decisions to be made can be made Saturday. Councilperson
Gillespie asked if they can make a decision at the workshop on Saturday. Mayor
Wessler replied they'll call a special meeting after the workshop.
7 Council Public Information Meeting
July 29, 1991
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Council person Gillespie asked if they can address the issue Mrs. Bennington
mentioned to her in the audience that up until May of last year the 120 homes
outside the special assessment area were to be included in the CIP and we're now
in the process of sewering those at a cost of $1,425 with $150 hook up. She
added she has no problem if they pay the same as Florida Shores and whatever they
end up with, they have to handle those 120 homes that were originally in the CIP
and were removed. Mayor Wessler agreed they could do all those on Saturday.
Councilperson Gillespie stated there1s the problem Mr. Wadsworth is working on
with abandonment of septic tanks in the rest of the City and they're going to
force this on Florida Shores residents and she has no problem with that other
than some houses have not been abandoned. Mayor Wessler said they'll force this
upon them.
Councilperson Martin asked if it's too soon to discuss how to handle payments
either through the City or the tax district. Mr. Munoz said helll call the
County again but they haven1t given a cost estimate and he'd asked for a worst
case cost such as with a head count. Mayor Wessler said they'll just call it
any decisions that need to be made with regard to the CIP. Councilperson
Gillespie pointed out they have the board of equalization on Tuesday and they'll
be making corrections and adjustments after that and they don1t want the public
to get the idea Council1s cutting them off at the pass. Mayor Wessler explained
these are housekeeping items. Ms. Clayton agreed it1s housekeeping and it1s
things they can take action on at a meeting that's been properly noticed and
advertised. She said it can have a catch all phrase of any other matters related
to CIP funding, financing arrangements, security offers for State Revolving
Funds, whether you have the City or County collect, and those kinds of issues
can be put on the agenda so people will know you1re going to discuss them. She
clarified it won't make a lot of difference in terms of charitable dealings with
those with difficulty in paying whether the City or County collects because the
most appropriate method of deal ing with charitable pay cases is going to be
setting up a special fund that is comprehended within rates. She said if they're
going to make allowances for those that cannot afford to pay the special assess-
ment based on some objective criteria that people would have to meet just like
they qualify for welfare, then they need to set that up as part of the rate
setting base and not in any other fashion. She said if they try to deduct a
house from the assessment then they'll cause areca 1 cu 1 at i on of a 11 other
assessments. She added they need to leave every house on the rolls that1s being
benefited and then provide for hardship cases and their payment in another way,
generally out of rates. Councilperson Gillespie asked if that can be done by
ordinance to the rate study. Ms. Clayton replied yes. Mr. Ferland pointed out
they'll have to fund an insurance program out of the General Fund and they can
get the money from rates but can I t fund it directly from rates because it
constitutes a free service. He added the ordinance shouldn1t say rates are to
fund this insurance program, it1s funded from General Fund, and they can get the
money from rates with transfer from general government but can't make the direct
tie. Councilperson Gillespie said there would be no direct correlation. Mr.
Ferland agreed. Councilman Hays asked if they can get a figure on how many
residents they're talking about, with historical data, such as 10 can't pay, or
100. Mr. Ferland suggested they could research past tax certificates for people
in Florida Shores who didn't pay their taxes. Ms. Clayton suggested they could
call other jurisdictions of similar size and similar assessment programs because
you'll have a bell curve.
Mr. Ferland asked if Councilman Hays was talking about the wastewater treatment
plant being funded by utility service tax, and is it just the plant or the total
program with the collection system included. Councilman Hays replied the waste-
water treatment program, the $350. Mr. Ferland stated the debt service increase
would be $163,000 a year to the rate base if you take the Florida Shores waste-
water treatment assessment of $350 and fund it using utility service taxes for
just that portion of the program. He added the collection system program would
still be under special assessment front footage basis and those numbers would
remain at $1,143 per equivalent lot. Councilperson Gillespie said they'll have
special assessment, no matter what.
Councilperson Gillespie stated Mr. Ferland and Mr. Munoz have given them figures
and they have figures UTE worked with and feel are feasible but Mr. Ferland and
Mr. Munoz feel are not and they want to break them out as to why not.
a Council Public Information Meeting
July 29, 1991
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Mr. Ferland pointed out he doesn't judge feasibility, they can do it either way,
but they need to know which way to go to make the loan agreement and what was
said tonight doesn't jive totally with what UTE is saying. He asked if they're
talking about a variation and a third alternative. Councilman Hays said from
looking at UTE's proposal it seems the major portion is utility service tax moved
in as a means of payment and that seems to be the big issue of where the bulk
of this money would come from and the other part being impact fee or assessment.
He said Mr. Ferland needs to know which way to go and to be sure Council has
reached a point of one accord and moving in that direction because they keep
changing lanes.
Councilperson Gillespie asked that Mr. Ferland explain that people in the old
part of town started paying the new rate increase for sewer in June and what
the difference is in the time they started paying the increase based on 6,000
gallons to the exact date that phase 1 people will come on line and will pick
up that same rate. She asked what they're prepaying before the first phase 1
people are coming on line toward the plant as that's another bone of contention.
Mr. Ferland said he will not be at the meeting on Saturday and Dan Allen will
take his place and they I 11 have that number then. He exp 1 a i ned it I s the
contribution to the rate stabilization fund and then the incremental rate revenue
is what they're paying. Councilman Hays said that's the memo dated July 25th
with the subject UTE wastewater funding program. Mr. Ferland agreed. Councilman
Hays said he referenced Mr. Ferland's comment on the last page with the summary.
Mr. Ferland agreed.
Councilman Jones said they've all looked at ways and options for people who
cannot afford the assessment and who really qualify for subsidizing because they
want to make sure they don't put anyone out of a home. He added if someone
legitimately does qualify, they'll try to find something equitable to help them
survive this crisis. He said once this is past, the next big step is the streets
need to be paved and you can't see the sewers but you have to drive over bumpy
streets.
Councilman Jones said there's a small crisis as the Senior League All Stars won
the District 5 championship and are heading to Key West to a State tournament
and we have 7 young people, 14-15 year olds, that belong to Edgewater. He read
the names of those from Edgewater. He pointed out it doesn't happen very often
that a team in our area gets to go and represent this area for a State champion-
ship. He said New Smyrna Beach contributed $500 and there are two boys in the
County on this team and he thinks the County is going to contribute. He explained
he received a call and they asked for help but he doesn't know if it can be done
now since this is a public information meeting. Councilperson Gillespie asked
if they could give the money to them Monday night. Mayor Wessler noted they
leave Thursday and she's asked Ms. Clayton about it and she said we could get
a consensus. Ms. Clayton clarified they can discuss the matter and schedule it
for the agenda for formal confirmation of any consensus action and you have
authority to spend money up to a certain amount without formal action.
Councilperson Gillespie said it's from Council's budget. Councilman Jones noted
they saved $12,000 when they took themselves off the insurance. He added New
Smyrna Beach had 6 and contr i buted $500 and we have 7 so $500 wou 1 d be
appropriate. Counci lman Gi llespie said it I S a great idea. There was brief
discussion regarding the team's other efforts to raise funds. Mayor Wessler said
the only problem she has is it's called New Smyrna Beach Senior League All Stars
and a lady she talked with suggested it be called New Smyrna Beach-Edgewater
Senior All Stars if we contribute. No Council member objected.
Council person Gillespie moved to adjourn. Councilperson Martin seconded the
motion. Meeting adjourned at 8:23 p.m.
Minutes submitted by:
Lura Sue Koser
9 Council Public Information Meeting
July 29, 1991
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10 Council Public Information Meeting
July 29, 1991