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07-15-1991 - Regular .. '-" 'otettIl CITY COUNCIL OF EDGEWATER REGULAR MEETING JULY 15, 1991 MINUTES CALL TO ORDER Vice Mayor Louise Martin called the meeting to order at 7:00 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 Excused Present Present Present Present Present Present Present Present INVOCATION. PLEDGE OF ALLEGIANCE Reverend Harvey Hardin, retired Methodist minister, delivered the invocation. There was a pledge of allegiance to the Flag. APPROVAL OF MINUTES None transcribed. CITIZEN COMMENTS John Finch, Umbrella Tree Drive, stated he retired to Edgewater and he thought prices and taxes were right but now he's received a statement for $5,112 for his 4 lots. He stated his house is built in the middle and nothing else can be built around it, and it1s only one sewer line. He said he feels he1s being singled out on this and would like something done. Councilman Jones suggested they go over this at 7:30 when they meet on the assessments and answer his questions. Vice Mayor Martin asked if there were comments on the present agenda and there were none. Res. 91-R-42 Amendina and Restatina Res. 90-R-35 reaardina the improvements to the water and sewer system of the City: authorizina the refinancina of BAN's. Series 1990. previously issued: providina for issuance of $15.000.000. Series 1991. water and sewer revenue bonds: providina for the riahts of the bondholders: and providina for such other necessary and appropriate matters in connection therewith (Continued from July 12. 1991. special Council meetina) Vice Mayor Martin read the Resolution. RES. 91-R-42 - A RESOLUTION AMENDING AND RESTATING RESOLUTION NO. 90-R-35, ADOPTED ON JUNE 7, 1990, ENTITLED; "A RESOLUTION AUTHORIZING THE ACQUISITION AND CONSTRUCTION OF EXTENSIONS AND IMPROVEMENTS TO THE WATER AND SEWER SYSTEM OF THE CITY OF EDGEWATER, FLORIDA, AND THE REFINANCING OF CERTAIN OUTSTANDING DEBT OF THE CITY; PROVIDING FOR THE ISSUANCE OF NOT EXCEEDING $15,000,000 WATER AND SEWER REVENUE BONDS, SERIES 1990 AND NOT EXCEEDING $4,700,000 WATER AND SEWER REVENUE BOND ANTICIPATION NOTES, SERIES 1990, TO FINANCE THE COST OF SUCH PROJECT AND REFINANCING; PROVIDING FOR THE PAYMENT THEREOF; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF THE BONDS AND NOTES; MAKING CERTAIN OTHER COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; REPEALING PRIOR AUTHORITY TO ISSUE BONDS; DESIGNATING THE NOTES AS A QUALIFIED TAX-EXEMPT OBLIGATION; PROVIDING FOR NEGOTIATED SALE OF THE NOTES TO SUN BANK, NATIONAL ASSOCIATION UPON TERMS SPECIFIED HEREIN; AND PROVIDING AND EFFECTIVE DATEn; SO AS TO ADD TERMS REQUIRED BY THE BOND INSURANCE COMPANY; PROVIDING AN EFFECTIVE DATE. Ms. Clayton recognized Mr. Dan Livermore, the City's bond counsel, and suggested Council have a short presentation about the conditions of this amendment and restating. Dan Livermore, with Livermore, Klein, and Lott, Jacksonville, stated he's bond counsel on this bond issue and prepared the resolution. He explained about 98% is restated from the resolution passed last year when they did the notes. He said there were two things they wanted to do with this resolution, one was to change the series description because time has gone by and they'd hoped it would be sold in 1990, therefore called 1990, but since we're into 1991 it's common for the series to designate the year and it was changed to 1991. He pointed out it was an editing change and not real substance. '-' ...., Res. 91-R-42 (Continued) Mr. Livermore explained the bond insurance company had certain requirements that are tailored for each individual issue and they couldn't write them in until it was decided. He said those terms are mostly added in the back at the end concerning bond insurance. He noted there are others scattered in the resolution and for ease in future references they should have it all in one document instead of 10 pages of amendments because they'll be referring to it for 20 years. Councilperson Gillespie requested an explanation of C.(I). on page 31 and if they will be adding seven funds and if they'll add to the three enterprise funds. Mr. Livermore explained that for accounting purposes they can keep the funds and the concept is to segregate the money within the funds and the bond insurance company would require you maintain each of these funds in a separate bank account so you'll have four bank accounts. Councilperson Gillespie stated we have three enterpri se funds, one for water, one for sewer, and one for operations. She asked how they will affect this. Mr. Munoz explained we have three enterprise funds, water and sewer, refuse, and stormwater, and within the water and sewer fund we have the water department and field operations in the sewer department and they're maintained separately for accounting purposes but it's not a separate fund. Mr. Livermore explained you could still have the same fund but wi 11 have four separate bank accounts, one for each. Counc il person Gillespie stated sections 102 and 103 contain the sinking fund and it was removed from the Charter but the duty of Council to sit as trustees is in the Charter. She asked if they 1 re supposed to look it over once a year. Mr. Livermore pointed out they have that duty in this resolution also. Councilperson Gillespie asked Ms. Clayton to restate the reason it has to be water and sewer bonds together. Councilman Hays noted he listened to the tapes. Ms. Clayton explained years ago Florida Shores had wells and septic tanks and then they created a water system and the water utilities became water and sewer utilities and over the years from the 40ls and 50's when they used to dispose of the wastewater in the River and streams they found in the 50's and 60's they were having impact on the streams and they began to chlorinate the wastewater. She added then they went to secondary treatment and the water system became water and sewer systems and became more technical and scientific to protect the water and environment. She said to build the first sewer system they got the revenue from the water systems and could take care of the investment required to put the sewer pipes in the ground. She continued that over time they had to find sources besides the wastewater sources to cover increasing and unforseen costs and it became an operating reality in this State that you wanted to keep the water and wastewater systems as a combined utility because they serve one function and provide potable water and provide for safety and protection of your wastewater. She pointed out there is not a meter that will stay functional to measure wastewater and it's easier to maintain the water meter and calculate what the wastewater will be based on water usage. She said Edgewater wants to upgrade their water system and this resolution has the wording of water and wastewater because it's a combined system but the bond issue is for the purpose of funding water improvements solely and exclusively and you'll get to the wastewater program by borrowing funds through the State Revolving Fund program and a grant from the State which will be part of the discussions after this meeting in the public information session. She again said this resolution refers to the water and wastewater system and it's a combined utility but the money you I re borrowi ng under th i s reso 1 ut i on is for the purpose of water improvements. She suggested they hear from Mr. Ferland or Mr. Wadsworth on plans of improvements that will be built with this money. Councilperson Gillespie said she wanted the public to hear this and this doesn't hinder making adjustments and making the City as a board of equalization on August 6. Ms. Clayton noted this is a separate component. Mr. Livermore stated wastewater improvements include more than just improvements in Florida Shores, there are others such as the wastewater plant, and only the Florida Shores portion will be special assessed to the residents of Florida Shores, and the rest is supposed to be financed from the State loan but it will be repaid not only from the special assessment but from a junior pledge of these same revenues as special assessments are not contemplated to be large enough to payoff all the loan but only that portion fairly attributed to Florida Shores. Ms. Clayton noted it1s a second mortgage concept with a first mortgage on the water improvements and second is the pledge back to SRF. 2 Council Regular Meeting July 15, 1991 '-' ...." Res. 91-R-42 (Continued) Mr. Livermore stated on page 9 they added a new finding to describe the portion of the project that's for new users and paragraph G goes through calculations to determine only the water impact fees can be pledged and of this bond issue 47,1% wi 11 be used to finance future capacity with the new water treatment facilities and the other 52.9% is to be used to supply water to existing customers and for several other purposes such as retirement of the old debt with the $4.7 notes and part to refinance the old debt. Councilman Hays asked if the assessment is in the bonds, then there's no problem with any adjustment in the system in the assessment after approval of the resolution. Ms. Clayton replied the equalization. Mr. Livermore stated special assessment is not pledged for these bonds and it's from the State and this is a borrowing from the public and the second borrowing would be from the State in August when the special assessment would be. Councilman Hays stated page 37, paragraph ilL II , refers to no free service and asked if that affects the different rate structures. Ms. Clayton explained you can have different classes such as commercial and residential and you have to charge every resident on the same diameter pipe and you can't have preference between the same type of users but between classes and categories you can have different rates. Councilman Hays asked if it's one meter for each. Mr. Munoz explained they get a 50 cent discount after the first unit because the City only has to read one meter. Councilman Hays asked if they'll have to look for that. Ms. Clayton replied it will be multi-family and single family. Mr. Livermore explained it's to make sure you don't give anyone free service. Councilperson Gillespie stated Ms. Clayton talked to her about the presently assigned engineers or an equivalent engineering firm. Ms. Clayton explained an engineering firm is required for the security of the bond holder and now that's Dyer, Riddle by contract and the definition of consulting engineers who must perform certain functions under the bond resolution for the comfort of the bond holders can be Dyer, Riddle or equivalent engineering firm of background and experience. She noted that's on page 5. Councilman Jones asked if they want to call the next meeting to order and postpone this. Ms. Clayton suggested they wait because the people here will benefit from the next meeting. David Thornton, Raymond James & Associates, stated Stan Livengood had a conflict and he'll represent the Financial Advisors. He distributed a pricing book and explained the City got a triple A, triple A rating because of the bond insurers. He noted the premium paid for bond insurance was about $140,000 but they wouldn't get the bond insurance they did and the interest rate on the market would have been much higher than what they did get. He pointed out the premium is far offset by the interest savings. Council person Gillespie said she's pleased and it's much better than she thought. Mr. Thornton briefly stated the 30-year bond issue is until 2013 and interest is 7.018% which includes the original issue discount and underwriting discounts that come out at closing but you have to pay them back later. He said the closing date is expected to be August 1, 1991. He said section 2 is the sources an uses of funds with $12,580,000 and they have the uses of funds and what is paid for various items. Ms. Clayton asked if there's any benefit to the City by obtaining some credit such as surety bond to cover the reserve account. Mr. Thornton explained debt service reserve fund is to make the bond issue a better risk and the insurer asked for it and they take one year and you have to put it in escrow and it's paying off interest. He said sometimes instead of funding this they pay a larger bond insurance premium and eliminate that but often with a larger issue they won't let you do that and capitalized interest is built into the issue. He said cost of issuance is bond counsel and bond discount is number 3. He said the underwriting risk is A. G. Edwards' who committed to this underwriting and agreed to these interest rates and they'll hold them good. He noted they only had 40-50% of the bonds sold, and after they committed, interest rates could go up and they'd take a loss. He added if they hadn't committed to that then the City would take the risk. He pointed out A. G. Edwards agreed to hold the bonds over the week-end which is a gesture of good faith on their part. He reviewed other expenses. Ms. Clayton asked if he feels this is a fair range for issuers such as the City to find. Mr. Thornton replied yes, the management fees are conservative and what they paid underwriters is very good. Ms. Clayton asked 3 Council Regular Meeting July 15, 1991 '-' 'WI Res. 91-R-42 (Continued) if he felt he could get the best deal with the underwriters. Mr. Thornton replied yes, he thinks they did a very good job. He explained they had A. G. Edwards and William Hough, and A. G. Edwards was senior underwriter and took responsibility for 75% of the bond issue. There was discussion regarding a comparison of Tallahassee's issue to Edgewater's. Council person Gillespie asked if they're being sold in $5,000 lots. Mr. Thornton replied yes. Councilperson Gillespie asked if they'll be classified as a safe investment. Mr. Thornton replied yes, an excellent investment. He pointed out if you have to borrow money, now is the time as they're close to a 12-year low. Councilperson Gillespie stated Ms. Clayton went over her questions with her this afternoon. Ms. Clayton suggested Jim Gollahon speak as he represents the bond holder's interest. Jim Gallahan, A. G. Edwards, Manager and Vice President of Public Finance in Tampa, stated this is a win/win situation after working with the City for two and a half years. He said the financing was well received by the bond insurers and the public and they're within 1/4% of a 12-year low. He added they're looking forward to helping close the issue. Ms. Clayton stated the underwriters were able to obtain an excellent bid for buying the bonds and held it over the week-end to continue the meeting to a regular scheduled meeting so the public could attend at a time that's customary for the meeting to be held and they deserve credit from the City. Councilperson Gillespie stated it was appreciated because they want the public to be aware of every cent that's spent. Ms. Clayton suggested Mr. Ferland or Mr. Wadsworth say what this money will buy. Mr. Terrv A. Wadsworth, Utilities Director, stated this bond issue on the water will improve the quality and quantity of water available and it will allow them to sink 7 new wells near 1-95 and 442 along with the 4 existing wells will give about 5 MG capacity that the plant will treat. He briefly reviewed what the plant will involve along with much needed storage for fire protection. He pointed out if a component goes down, it will be able to still treat 100% of the water and they won't have to blend water. He explained the transmission main wi 11 be 24" and he reviewed locations of those 1 ines and the tie ins. He explained this will provide a higher fire flow and enable City staff in house to expend additional water lines in Florida Shores to meet pressure and demand needs over a period of years. He pointed out that was taken out of the C1P as part of the bond issue and it will be done annually under the 0 & M budget. Ms. Clayton asked if they already received bids. Mr. Wadsworth replied they received bids with wells, plant, and transmission main, and everything has been right on or under budget and they don't have the bids totally tabulated but there's nothing to signify any changes from the low bids. Ms. Clayton stated that means you can accomplish the project within the amount of money intended. Vice Mayor Martin asked for any audience questions. Andv Anderson, Pine Tree Dr i ve, asked who rated these bonds. Ms. Clayton replied Moody and Standards and Poor. Mr. Anderson asked the rate. Ms. Clayton said they assisted with MB1A, the insurance of the bond issue, and qualified for tripe A under Moody and Standards and Poor ratings. Georae Naill, 1604 Royal Palm, United Taxpayers, stated there's no breakout provided to the public as to cost of this and what each recipient of this bond gets. He said one thing questioned of the previous attorneys was what was paid to do the bonds and if the attorney was going to get 1%. He asked if the City Attorney will get that. Ms. Clayton replied she will get her customary hourly fee and not get a percentage. Ben Vasquez stated he represents Bessie Trombetta, 2807 Needle Palm Drive, and resides in New Smyrna Beach. He stated they've conducted 4 years of meetings and this Council has tried to ramrod this program through and this amounts to they're going to mortgage your house for a loan from the State Revolving Fund with no end cap to it. He said the assessment is not complete and it will be in 4 phases and if this goes through then when it gets to Florida Shores in the last phase the people there will be discriminated against and they'll pick up the tab for the entire program whatever's left in the deficit. 4 Council Regular Meeting July 15, 1991 "-' ..."" Ben Vasquez (Continued) Mr. Vasquez stated they've been told Chapter 166 doesn't apply to the special assessment program but it was stated 166 gave the right to go forward with this special assessment and if this is true, he suggested they take it to court and get a declaratory judgement about whether 166 applies to the Florida Shores area. Ms. Clayton stated Mr. Vasquez does not have a good grasp of the fact and the matter before them is related to the bond issue that doesn't affect anyone's home and the security for the water and sewer rate and that's only paid by people that have water and sewer coming to their house and it has no future pledge on anyone's home or taxes. She suggested if he has questions on special assessment that he attend the public information sessions when the consulting engineers will be present to answer questions. She added if it takes 4 years to ramrod, shels not sure that qualifies and theylve given long and hard thought and it was carefully planned. Councilman Hays stated he lives in Florida Shores and they can be assured when they get through the equalization and assessment hearings there will be equity in this and it will be fair. He added he hopes those comments wouldn't sway the residents, as the man is not a resident, and won't sway the resident's confidence that they're not working hard to make it a very fair and equitable process. Councilperson Gillespie moved to accept 91-R-42. Councilman Hays and Councilman Jones seconded the motion simultaneously. Motion CARRIED 4-0. Res. 91-R-43 Awarding $13,580,000 water and sewer revenue bonds, Series 1991, for construction of improvements to the City water system; authorizing the bond purchase contract; fixing the terms and interest rate for the bonds; authorizing the official statement; authorizing necessary and appropriate actions in connection therewith; and cancelling the remaining bond authorization (Continued from July 12. 1991. special Council meeting) - Councilperson Gillespie moved to accept 91-R-43. Councilman Hays seconded the motion. Vice Mayor Martin read the Resolution. RES. 91-R-43 - A RESOLUTION AWARDING $13,580,000 WATER AND SEWER REVENUE BONDS, SERIES 1991, OF THE CITY OF EDGEWATER, FLORIDA; AUTHORIZING EXECUTION AND DELIVERY OF A BOND PURCHASE CONTRACT FOR SUCH BONDS; FIXING THE DATE, DENOMINATIONS, MATURITIES, INTEREST RATES AND REDEMPTION PROVISIONS WITH RESPECT TO SUCH BONDS; AUTHORIZING USE OF AN OFFICIAL STATEMENT IN CONNECTION WITH DISTRIBUTION OF SUCH BONDS AND OTHER ACTION IN CONNECTION WITH THE ISSUANCE AND DELIVERY OF SUCH BONDS; DESIGNATING A PAYING AGENT AND REGISTRAR FOR SUCH BONDS; CANCELLING REMAINING BOND AUTHORIZATION; AND PROVIDING AN EFFECTIVE DATE. Councilperson Gillespie again moved to accept 91-R-43 and Councilman Hays again seconded the motion. Councilperson Gillespie clarified that included in this is the $4.7 million borrowed before with the BANis. Motion CARRIED 4-0. CONSENT AGENDA There were no items on the Consent Agenda. NEW BUSINESS Building Trades Regulatory and Appeals Board request to amend Ord. 90-0-11 to include a charge for subcontractor Registration Cards and change in Competency Card renewal procedure - Council person Gi llespie stated after reviewing the minutes of the Board, she moved to accept the recommendation on 90-0-11. Councilman Jones seconded the motion. Councilman Hays stated he's not clear on the competency cards and how and who determi nes competency. Counc il person Gillespie withdrew her motion and Councilman Jones withdrew his second. Councilperson Gillespie moved to have it put on the next regular meeting agenda. Councilman Jones seconded the motion. Motion CARRIED 4-0. ORDINANCES. PUBLIC HEARINGS. AND RESOLUTIONS First Reading: Ord. 91-0-6 Rezoning 3.18 acres of property at 2120 S. Ridgewood Avenue from B- 5 Planned Shopping Center District to B-3 Highway Service Business District Vice Mayor Martin read the Ordinance. ORD. NO. 91-0-6 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, REZONING 3.18 ACRES OF PROPERTY AT 2120 SOUTH RIDGEWOOD AVENUE FROM B-5 PLANNED SHOPPING CENTER DISTRICT TO B- 3 HIGHWAY SERVICE BUSINESS DISTRICT; DIRECTING THE CITY CLERK TO ADVERTISE THIS ORDINANCE AS PROVIDED BY LAW; AMENDING THE OFFICIAL MAP OF THE CITY OF EDGEWATER ACCORDINGLY; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. Councilperson Gillespie moved to adopt 91-0- 6 from the April agenda and they discussed it at length then. Councilman Hays seconded the motion. Motion CARRIED 4-0. 5 Council Regular Meeting Ju ly 15, 1991 '-' .."., ORDINANCES, PUBLIC HEARINGS, AND RESOLUTIONS (Continued) First Readina: (Continued) Res. 91-R-41 Amendina Res. 91-R-22 by addina a territorial map to the Amended Interlocal Aareement creatina the Volusia City-County Water Supply Cooperative Vice Mayor Martin read the Resolution. RES. NO. 91-R-41 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AMENDING RESOLUTION NO. 91-R-22 BY ADDING A TERRITORIAL MAP TO THE AMENDED AND RESTATED INTERLOCAL AGREEMENT BETWEEN THE CITY OF EDGEWATER, FLORIDA, AND THE VOLUSIA CITY-COUNTY WATER SUPPLY COOPERATIVE; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND PROVIDING FOR AN EFFECTIVE DATE. Councilperson Gi 11espie stated they have some confus ion because they're working on another project at the same time and she'd prefer to move it to the next Council meeting and she so moved. Councilman Jones seconded the motion. Motion CARRIED 4-0. ADDENDUM TO AGENDA (One item) Ord. 91-0-7 Amendina Appendix A, Zonina, Sec. 606.04 (b) to allow churches as permitted use in B-5 Planned Shoppina Center District - Vice Mayor Martin read the Ordinance. ORD. 91-0-7 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AMENDING APPENDIX A, ZONING, SECTION 606.04 (b), B-5 PLANNED SHOPPING CENTER DISTRICT, OF THE CODE OF ORDINANCES OF THE CITY OF EDGEWATER, FLORIDA, BY ALLOWING CHURCHES AS A PERMITTED USE; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. Councilperson Gillespie moved they accept 91-0-7. Councilman Hays seconded the motion. Motion CARRIED 4-0. Second Readina:(Public Hearina) None Unfinished Business There was no Unfinished Business brought up at this meeting. COUNCIL/OFFICERS REPORTS Councilman Hays asked to continue it to after the next meeting. Ms. Clayton suggested a motion to continue the regular meeting until later this evening after the public information meeting is concluded. Councilman Jones moved they postpone the regu 1 ar meet i ng unt il after the pub 1 i c i nformat i on meet i ng and resume then. Councilman Hays seconded the motion. Motion CARRIED 4-0. Vice Mayor Martin called a break at 8:05 p.m. The meeting resumed at 10:35 p.m. Interim City Attorney - Ms. Clayton stated Council has a copy of the contract for Krista Storey and at the last meeting they discussed terms and itls a straightforward implementing contract that outlines a 2 year term. She explained the first would be over 6 months after the November elections in 1992 and thereafter if not terminated with 30 days notice, it's renewable for 2 years. She added the Council has to provide 120 days severance if they want to termi nate, except if it is for cause, then no severance wi 11 be pa i d. She briefly reviewed some of the other benefits such as annual review for merit and cost of living components if these are given to other employees. She noted these terms were approved by Council and Kri sta Storey has agreed to those terms. She said the secretary faxed it and she thought it would be distributed and the Acting Mayor could execute it. Council person Gillespie pointed out they'd made the statement that they want an outside attorney to look over the contract for protection and it doesn't matter who does it. Ms. Clayton asked for a suggestion of who she should send it to. Councilperson Gillespie replied she'd asked Clay Henderson to look it over and he agreed. Other Council members agreed. Ms. Clayton stated she will fax it to Mr. Henderson and will bring it back to the August 5th agenda. Councilperson Gillespie referred to assistance she1s providing to find a house for Ms. Storey. Ms. Clayton noted that Ms. Storey agreed to come to regular meetings of the City Council and she'll suggest to Ms. Storey that she come to the August 5th meeting and some of these public information sessions to familiarize herself with the proceedings. Actina City Manaaer - Mr. Munoz had no report at this time. City Council - Councilman Hays stated they had a workshop this afternoon and one of the items they discussed was effluent return and ways to deal with that and pursuant to their discussions, he moved they remove the effluent return from the assessment. Councilperson Gillespie seconded the motion. Ms. Clayton suggested it might be more appropriate to have a report back. Councilman Hays noted by 6 Council Regular Meeting July 15, 1991 '-' ....." COUNCIL/OFFICERS REPORTS (Continued) City Council (Continued) removing the effluent return from the assessment it would decrease the assessment and they talked about $191. He added they discussed a couple of different options and he didn't want to put that in the motion because they have to work on those. He explained one option was to pay for effluent by rates and another option was an example of $2.00 per month to sewer customers because it's a City-wide plan. He added they need to discuss that and he can withdraw his motion. Ms. Clayton stated in evaluating the component for reuse out of the special assessment and locating it in some other revenue source, do they need a motion now or because Councilman Jones was not present, just an evaluation of those options could be prepared to have a motion and consideration at the August 5th meeting. Mr. Ferland asked about July 29th and Ms. Clayton replied it's for public information. Mr. Ferland stated the assessment for reclaimed water is $190 per equivalent parcel and debt service if you take the reclaimed water assessment component at 1.144 million and putting it in the rate base could increase the debt service load by $88,000 a year. Councilperson Gillespie noted he'd said that's not a problem. Mr. Ferland explained it was said funds were available for other lawful purposes but down the road you may have to go from 6 to 7% increase for reclaimed water seemed to be the big dilemma. He said he doesn't see a problem with jeopardizing the ability to repay the SRF obligation and the sooner he knows about it, the sooner he can do the workshop for user fees instead of assessment. He added there was concern about front footage. Councilperson Gillespie said that was front foot all along. Mr. Ferland said connection cost was a concern and a previous Council included that as part of the assessment. He suggested perhaps they should state the intent to include it or not. He added if they want to do something about the wastewater treatment plant, he can do it. Councilman Jones asked if the effluent they're talking about taking off is tied in with the 4-1/2%. Councilperson Gillespie replied yes. Councilman Jones asked how it will be affected if they go to a different funding source. Mr. Ferland explained as long as the project scope doesn't change, such as changing locations, then instead of assessment revenues to repay, they'll use user fees. Councilman Jones asked if the rest of the City will pay it as user fees and won't get the good deal of the 4-1/2%. Mr. Ferland replied they'll pay 4-1/2% for the total cost but instead of 50% fees and 50% assessment, it will be 100%. He explained there's an effluent disposal cost whether you get rid of it in Florida Shores or Edgewater Landing and it has to be borne by all the customers. Councilman Jones agreed. Mr. Munoz noted the $88,000 in debt service when calculated to 7,000 customers would be $1.05 and the average customer at 6,000 is 17 cents a gallon and rates would have to go up. Councilperson Gillespie noted that considering what they saved in administrative costs with settling the case, it's a drop in the bucket. Vice Mayor Martin asked if Councilman Jones is prepared to vote now. Councilman Jones stated he doesn't want to mess up the low interest loan. Mr. Ferland explained under the special assessment they charge 5-1/2% versus 4-1/2% and the 1% is taken out because they don't have to pay Volusia County to collect for reclaimed water and by putting the 4% discount in the user fees, that 4% disappears also and it's a true cost savings for the users and he thinks it's a good idea to do it this way. Motion CARRIED 4-0. Councilperson Gillespie asked what size upgrade is needed for the effluent. Councilman Hays asked Mr. Munoz to look at information on the water bills and advise the public with a number to call if they have questions on the assessment. Mr. Munoz noted we won't be sending another bill until the 28th but there's a full page ad in the pennysaver being delivered tomorrow. Councilman Hays stated the sign ad hoc committee is meeting tomorrow night at the Library and he thought they'd be back with this a few months back. He said he understood when they reinstated the sign ordinance it was to el iminate hazards or unsafe conditions, such as signs at block intersections or signs nailed up with a piece of string that might fall and hurt someone and he didn't get the impression they'll reinforce it for strict enforcement, pending getting the new sign ordinance. He said he got a few calls and discussed with Mr. Munoz some things on Indian River Boulevard. He said he hopes the sign ad hoc committee gets it back because it's long past due. 7 Council Regular Meeting July 15, 1991 '-' .., COUNCIL/OFFICERS REPORTS (Continued) City Council (Continued) Councilperson Gillespie asked the sizes of the upgrade pipe to continue with the service of 8 to 16 to combine the two services. Mr. Ferland replied there are a couple of different size changes and it1s a combination. Councilperson Gillespie asked if the information can be given to the public and to bring Councilman Jones up to speed about what they did this afternoon. Mr. Ferland said he thought it was a very productive and positive meeting. He explained the master plan map shows pipe lines running through Florida Shores and the one from the wastewater plant to the South end of Florida Shores and ties to the future golf course or some other reuse plans for it and they're talking about upsizing the existing line they bring to Florida Shores to accommodate future growth and future reclaimed water use and amending our plan and tell Tallahassee they'll be upgraded. Councilperson Gillespie noted held mentioned to have effluent service to South of 20th and it would have to be upgraded and the expansion growth pattern is South. Mr. Ferland agreed it's for the area South of Florida Shores, the golf course, or whatever. Councilperson Gillespie asked if he needs that now or can they temporarily hold. Mr. Ferland replied he'll be sure they're capable of upsizing those lines and he'll send a memo to Mr. Munoz by fax regarding the SRF funds and he can transmit it to the Council. Councilperson Gillespie stated she'll send him the notes from comments she1s received at her home. Councilperson Gillespie stated the children at Aqua Park Swim Team, and over half reside in Edgewater and some are from low income families, have raised $400 and need more to participate in swim meets. She stated a gold sponsor is $500, silver is $250, and bronze is $150. She added she1s put in 5 years with her granddaughter and knows it1s beneficial to the community and it's a wonderful activity to her. Councilman Hays asked if there are funds available. Mr. Munoz replied unappropriated funds. Councilperson Gillespie moved they go for gold sponsor for Aqua Park Swim Association. Councilman Hays seconded the motion, adding it's since Mr. Munoz said they have the funds. Motion CARRIED 4-0. Councilperson Gillespie stated Mr. Munoz told them in May they'd have to replace a deep well pump at the Library and it wasn I t a budgeted item. Mr. Munoz explained that will come back as a budget amendment, and under $2,000 they can do it. Councilman Jones asked Mr. Munoz if he's aware of the problem at Wildwood with the Massey property with digging going on and flooding because of the construction. Mr. Munoz replied most of the calls on flooding were from Florida Shores. Councilman Jones stated there is construction going on at the Massey property but that's not in the City and Mr. Overstreet may not be aware of it. He suggested they look at it in the far back corner and check it out. Vice Mayor Martin stated the Miss Edgewater Pageant is being held at the Florida Shores Club House on Saturday night at 7:00 and she was approached that it be a City-wide project to pick Miss Edgewater. She said she'll talk to Jack Corder to include this in our programs and the next one should be in the Community Center. All Council members agreed. Mr. Munoz stated the unemployment compensation claim for Mr. Johnson came back from the State approved and he doesn't know what else to do but there I s an appeal within 20 days. Councilperson Gillespie asked if they can do anything. Councilman Hays asked that it be checked out. Ms. Clayton stated shelll have to research it and see if there are grounds. Counc ilman Hays stated he understood with the separation he got severance and this may be a frivolous suit but he'd like a legal interpretation. QUESTIONS FROM PRESS There were no questions from the press. CITIZEN COMMENTS Dominick Fazzone, 302 Paradise Lane, commended Council for its action tonight and said it can be ongoing what you're doing and he thinks the City will see thanks in the end. Al Keaton, Kumquat Drive, stated there's a bad problem around the Park area on Roberts Road and someone needs to look at that. 8 Council Regular Meeting July 15, 1991 . . . . -- ..""", ADJOURN Councilman Hays moved to adjourn. Councilperson Gillespie seconded the motion. Meeting was adjourned at 11:03 p.m. Minutes submitted by: Lura Sue Koser ..~ (\ ~~~W'!;.~,~~,~. 'I (j , MAYOR.'j ~ ~ ATTEST: J~lx~ CITY CLERK I Approved this 19 day of August , 199~. ~~~\~~ MAYOR 9 Council Regular Meeting July 15, 1991