04-22-1991 - Special
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CITY COUNCIL OF EDGEWATER
SPECIAL MEETING
APRIL 22, 1991
MINUTES
Mayor Wessler called the Special 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
Present
Present
Present
Present
Present
Present
Present
Present
Present
Recommendation of selection committee to approve ranking of top 4 firms for
surveying services for Riverwalk Project and for administration to begin contract
negotiations with top ranked firm of Sliger and Associates - Council person
Gillespie moved they accept the recommendation of the committee. Councilman
Jones seconded the motion. Motion CARRIED 5-0.
First reading of Ord. 91-0-2 Providing scheduled increases in water and waste-
water rates for the next five years beginning June 1. 1991. through October 1.
1994: increase in wastewater impact fee from $1.000.00 to $1.425.00 per
equivalent residential unit: increase in customer deoosits from $30.00 for
combined services to $45.00 each (Total $90.00 combined utility services)
applicable to new residential customers. and non-residential customers to be two
times average monthly bill (Rewritten from Ord. 90-0-40) - Utilities Director
Terry Wadsworth reviewed the history of the water plant since he has been with
the City with the expansion construction completed in 1986. He stated the City's
in a position where they designed a 5 MGD treatment plant and it's been permitted
by DER, they've done test wells and got the Consumptive use permit from DER, and
development orders from the County and they're ready to go ahead with
construction but they're waiting for the rate increases, which are the driving
forces, to go to the money market to see how they'll fund it all.
Mr. Wadsworth stated in 1985-86 they got a letter from the State to look into
correcting the problem with septic tank leachate going into the canals and they
had a report by Frank Marshall. He pointed out we went more stringent and it's
an advanced treatment plant to discharge to the River. He noted legislation
protects the Indian River Lagoon and the City has to consider reuse. He added
the treatment plant is designed at 2.5 MGD reuse ready with design and permitted
by DER. He said they have loan monies from the State over the last few years
that includes collection systems for unsewered portions of the City and they1re
up for a $2 million dollar grant. He stated rates are to enable them to
consummate that agreement with DER and lock into funds to proceed with the
project.
Mr. Ron Ferland, Project Manager, Dyer, Riddle, Mills & Precourt, Inc. stated
they've adjusted figures due to the fact that the purchase of the Indian River
Utilities system had been included in the funding and rate program hasn't
occurred and they didn't initiate construction as planned and it set everything
back. He said the adjusted construction schedule of the program is to start in
October, 1991, and the source of program funds has been modified as in 1990 the
major port i on was to be by spec i a 1 assessment revenue bonds and since then
they've been allocated funding for the wastewater system from the State grant
and low interest State revolving funds. He stated the series revenue bonds to
fund the water system improvements at an interest rate of 7.3% with 30 year
repayment and water user charges to be pledged for the borrowing. He explained
they have $6.22 million SRF for the wastewater for 1990 and the small communities
trust fund of $2 million allocated to wastewater and series 1991 SRF is $6.7
million and series 1992 SRF is $12.669 million. He pointed out they downsized
the revenue bond to about $13,111,000 to bring the water rate increase from 10%
to 8-1/2% per year.
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First readina of Ord. 91-0-2 (Continued)
Mr. Ferland stated the distribution system improvements within Florida Shores
with 6" lines to be funded by utility or water rates and continue to be
constructed on a yearly basis with a case accounting or force accounting system.
He noted it wi 11 take longer to complete than with the CIP but it wi 11 be
continuing the method in Florida Shores. He pointed out it's only the 6" lines
with fire hydrants along the East-West streets to be done by Utilities staff on
a yearly basis based on what they allocate in their yearly budget.
Mr. Ferland stated the impact fee is recommended at $1,425 for wastewater and
water to remain $1,000 using the replacement cost method for these figures.
Mr. Ferland pointed out customer deposits would only be for new customers and
not for currently existing customers and it's recommended to be $45 per customer
for water and $45 for wastewater, a total of $90. He stated customer deposits
are refunded at the end of their service and is not kept by the City.
Mr. Ferland reviewed the debt service figures. He displayed large charts of
proposed rate increases with comparisons to Volusia County and area cities.
He pointed out Edgewater has the lowest wastewater bill and the combined bill
with the proposed rates will still be lowest. He noted if they don't proceed
with the special assessment program they'll jeopardize the State Revolving Funds
plus the grant money allocated to the City. He stated the special assessment
lump sum can be paid up front or over a 20 year period at 4-1/2% interest.
Mayor Wessler called a recess at 7:42 p.m. and called the meeting back to order
at 7:50 p.m.
John Suaar, Shangri-La, stated he's in favor of increased rates but he's out of
town 6 months a year and $35-$40 a month is a large impact when you don't use
water or sewer and don't have garbage picked up. He questioned paying for
something you don't receive. Mayor Wessler explained the ordinance that allows
this. Mr. Munoz explained availability of service. Mayor Wessler suggested in
the future Counci 1 may want to look at what other cities have to pay for
reconnect ion fees.
Georae Linde, 2628 Unity Tree, asked the population figure they're planning for
with the expansions. Mr. Ferland noted it's until the year 2005. Mr. Munoz
replied 27,000. Mr. Linde stated other cities along the coast are extending
their wellfields further to the West. He referred to lack of water pressure when
he lived in Ponce Inlet. He suggested they have close restricted growth. Mayor
Wessler explained the City's been talking with County representatives and trying
to work in close harmony on utility projects to move into joint ventures of water
and wastewater needs. She added there's a water cooperative and all cities will
use it. Mr. Linde stated Ormond Beach has water plants near Seville.
Rav Anderson, 1905 Riverside Drive, stated anytime you get a house with water
or sewer you've made money no matter how much you spend for it as the value will
go up. He added it's a very small amount with $7.00 a month difference in 5
years period and he doesn't think that's too hard to handle, unless there are
hidden costs. He asked what this will cost if they don't pass it. Mr. Ferland
explained if they lose access to low interest funds they can look at an
additional $5 million in borrowing and Mr. Stan Livengood said present value of
low interest loan is $15 million. Mr. Ferland further explained there's a
special assessment in addition to this rate increase that equates for two 40x120
lots in Florida Shores for the collection system would be $2,280, or $15 a
month, and wastewater treatment would be $600, or $4.20 a month, He pointed out
they have responsibility for funding the lateral to get from the home to the
street where the sewer is and to abandon the septic tank by pumping it out,
punching it, and filling with sand, which is estimated at $600. Mr. Anderson
stated held rather pay it now than 2 years from now.
Al Keaton, 3019 Kumquat, stated held given an article from the North to the
previous City Manager about a town with 139 people that after 10 years got their
sewer system at a cost of $13,500 a family. He added they won't make everyone
happy so they should do what's best for the City.
2
Council Special Meeting
April 22, 1991
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First readina of Ord. 91-0-2 (Continued)
Dominick Fazzone, 302 Paradise Lane, stated he's attended 99% of the meetings
since the CIP started and he knows it's hard to pay more money in fees or taxes
but each person on Council last October, along with him, said the CIP was the
number one problem and they had to do something about it. He said theylve shown
courage the last 3-4 months and promised the people theyld take care of the CIP
and tonightls the opportunity to do that. He said he feels whatls been presented
is very good as a capital improvements program and they took some of the fat out
of it. He referred to the decrease in rates since last October. He asked
Council to vote yes on this ordinance for people here today and in the future.
John Stearns, owner of Aqua Park Swimming Pool, stated they've been here 16 years
and are at a point they'd like to expand and build an enclosed pool and if there
were a building moratorium placed, it would end that. He noted the City's talked
about building a pool but that takes time and he's ready to do this and it will
benefit the entire City. He expressed hope theylll pass the vote and he can go
forward and offer something for them.
Phillip Fona, property owner in Edgewater, stated he's in favor of this ordinance
and feels it's imperative that the City improve their infrastructures. He
reviewed projected populations from a VCOG report. He noted this ordinance is
a good first step towards concurrency and the facility they have now is marginal
in providing capacity and demand and future demand won't be met. He stated hels
a developer and if he would have to put these facilities in, held have to pass
the cost on in the finished product. He stated affordable housing is an
important concern and these improvements will help in future developments and
savings could be passed to the citizens. He said he supports passing the
ordinance and believes the benefits from the capital improvements program far
exceed the cost.
John Murphv, Persimmon Place, refereed to when he lived in Staten Island and
asked why they have to pay for new projects when they're on fixed incomes. He
said he has to pay maintenance each month and uses about 4,000 gallons of water
and twice as much for sewer. He said people putting in new development can put
in their own package plants and referred to a New York project. He suggested
they get more help from federal agencies.
Roaer Watkins 2730 Mango, stated it's pay now or pay later and the federal
government will corne in and say you'll put in a system and it will corne from the
general fund or something and there will be mandated infrastructures. He said
if they put in infrastructures and open up the place they'll let new growth pay
a large percentage of it and will decrease the amount existing taxpayers have
to pay. He referred to the size of his family and said held rather pay it now
instead of later. He stated in the future if they have a chance to annex or
stimulate growth they should do it.
David Molnar, Travelers Palm, asked if all Edgewater will pay these fees, whether
in Edgewater or Florida Shores, as they donlt want a separation. Councilperson
Gillespie replied everyone. Mayor Wessler stated everyone in the City pays the
water and sewer rate increases. Mr. Molnar questioned why they'd have to pay
a connection fee for a new project. Mayor Wessler explained Council will have
public hearings on it. Mr. Molnar stated the property owner's responsible for
the line from the street to the house. There was discussion regarding the sewer
pipe requirements and protective traps.
Cathy Findt, 2910 Vista Palm, stated she lives on a paved street and asked if
they'll take up the road and repave it when they put pipe in. Councilperson
Gillespie replied yes. Ms. Findt asked where, Mayor Wessler replied the center.
With no further input, Mayor Wessler closed citizen comments.
Ord. 91-0-2 - Mayor Wessler read the ordinance. ORD. 91-0-2 - AN ORDINANCE OF
THE CITY COUNC I L OF THE CITY OF EDGEWA TER, FLOR I DA, AMEND I NG CHAPTER 19,
UTILITIES AND SERVICES OF THE CODE OF ORDINANCES OF THE CITY OF EDGEWATER, BY
PROVIDING FOR SCHEDULED INCREASES IN WATER RATES EACH YEAR FOR THE NEXT FIVE
YEARS BEGINNING JUNE 1, 1991 THROUGH OCTOBER 1, 1994; SCHEDULED INCREASES IN
WASTEWATER RATES FOR THE NEXT FIVE YEARS BEGINNING WITH JUNE 1, 1991 THROUGH
OCTOBER 1, 1994; INCREASE IN WASTEWATER SYSTEM IMPACT FEE FROM ONE THOUSAND
($1,000.00) DOLLARS TO ONE THOUSAND FOUR HUNDRED AND TWENTY FIVE ($1,425.00)
DOLLARS, PER EQUIVALENT RESIDENTIAL UNIT; INCREASE IN CUSTOMER DEPOSITS FROM
3 Council Special Meeting
April 22, 1991
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First readinq of Ord. 91-0-2 (Continued)
THIRTY ($30.00) DOLLARS FOR COMBINED SERVICES TO FORTY-FIVE ($45.00) DOLLARS EACH
(TOTAL NINETY ($90.00) DOLLARS) FOR COMBINED UTILITY SERVICES) APPLICABLE TO NEW
RESIDENTIAL CUSTOMERS, AND FOR NON-RESIDENTIAL CUSTOMERS DEPOSIT TO BE TWO TIMES
AVERAGE MONTHLY BILL; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND
PROVIDING FOR AN EFFECTIVE DATE. Councilman Jones moved they approve 91-0-2.
Councilperson Martin seconded the motion. Councilperson Gillespie stated she
brought this off the table as she promised Tallahassee she would and she favors
its passage. She said she talked to Don Berryhill and he's glad they're doing
this but the assessment is what enables them to secure the State Revolving Funds.
She reviewed portions of her conversation with DER. She asked why they didn't
make the impact fee for water at $1,425 as was stated in the beginning. Mr.
Ferland explained the 1990 report shows development of the water impact fee and
was $1,000. Councilperson Gillespie asked if this is adequate for expansion of
the stem for a new person coming on 1 ine. Mr. Ferland explained the $1,000
covers the ERU capacity and replacement cost of treatment and primary
transmission and wellfield cost for each 250 GPD, which is one ERU.
Councilperson Gillespie questioned the 8-1/2% which goes to 11.1% with the 65
cents. She also questioned if the more you use the less it is would be a good
conservation method. Mr. Ferland explained the 8-1/2% is for the average
customer using 6,000 gallons but they'll pay $2.19 per thousand regardless of
how much they use and they're paying the same unit cost as the smaller user.
Councilperson Gillespie said she uses 3,000 gallons per month.
Councilman Hays stated he had an opportunity prior to the meeting to go over many
of his questions with Mr. Ferland and Mr. Munoz. He added it's a very
complicated financial matter and it's as fair as can be. He pointed out they
have mechanisms if they see it's not equitable and fair so they can adjust it.
He said if the volume of building increases more than projected then by these
impact fees they can decrease or hold down projected rate increases. Mr. Ferland
agreed, adding they can put that into the escrow account. Councilman Hays stated
by going on with this and encouraging that development they can see growth and
development pay for itself, which was his concern. He said regarding a base fee
when ij~~sJ1Q~here 6 months of a year was discussed and it costs a certain amount
to beraDl~-maintain and provide these services to anyone whether they use it
or not. He again stated there are mechanisms in this to adjust it equitably.
Councilperson Martin stated she spoke with Mr. Berryhill at DER and he reminded
her of the importance of demonstrating the abil ity of paying back the State
Revolving Fund loan. She noted if you go to a bank and apply for a loan they'll
look at it to see if you'll be able to pay it back and it's the same thing with
the City and State and federal government. She stated the increased rates are
necessary for bonding and to indicae to DER that we'll be able to pay them
because some cities had to make a choice whether to pay them or the bonding and
we don't want to be put in that position.
Councilman Jones said he feels with the State's help and the 4-1/2%, which is
a very good percentage, they're looking at the future and he hopes they have the
community behind them in the direction they're taking. He pointed out they'll
have a better quality water, more quantity, and they'll try to stop dumping
effluent in the River. He said he feels itls a good plan and they should
progress forward.
Motion to approve Ordinance 91-0-2 CARRIED 5-0.
Mayor Wessler thanked the audience for showing their belief in them and expressed
her appreciation for their interest in the community. Councilperson Gillespie
stated Tallahassee said the financial picture looks excellent because of their
enthusiasm and interest in the City and learning the ins and outs of government.
Norman Billups presented a pin to Mayor Wessler.
Stan Livenqood, Financial Advisor, Raymond James & Associates, stated outstanding
is a $4.7 million BAN secured primarily be a pledge of the City of proceeds of
bonds to be issued and this BAN bears interest at 6-3/4%. He said it's owned
by Sun Bank and maturity is June 3 this year. He noted it's possible the bond
issue could be carried out in the 6 weeks between now and June 3rd and proceeds
be on hand to repay the $4.7 million but getting into the market in that rushed
schedule isn't advisable. He said he called Sun Bank and they're willing to
extend the maturity of the BAN as much as 90 days with the same terms and
4 Council Special Meeting
April 22, 1991
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Stan Livenaood (Continued)
conditions. He said a 2-page resolution with essentially no cost involved except
$1,000 will be required. He pointed out 6-3/4% is not the current market, it's
less than that, possibly 6% for short term BANis, but paying an additional 3/4%
for 90 days is less than $9,000 in cost compared to seeking competitive bids.
He recommended Council authorize having the resolution before Council at the next
regularly scheduled meeting. He noted it extends the maturity date of the BAN
and gives the City the right to repay prior to that date. He requested Council
authorize staff and City Attorney, bond counsel, financial advisor, and under-
writer get this bond issue put together to be on the market in a timely fashion.
Councilperson Gillespie asked if theylre including the repayment of $4.7 of the
BAN on what they're going out to bond on. Mr. Livengood replied yes. Council-
person Gillespie stated that should reduce when they figure the State Revolving
Funds. Mr. Livengood explained all that was taken into account. Councilperson
Gillespie asked how much is on hand of that $4.7 million. Mr. Livengood replied
about 1/2 million and slightly over $300,000 is required on interest in June.
Councilperson Gillespie stated that was included in Terry Wadsworth's budget.
Mr. Munoz agreed the money is in the budget. Councilperson Gillespie stated
Terry Wadsworthls budget is enterprise money and what they don1t borrow they
don't pay back and she requested to keep it to a minimum.
Mayor Wessler stated theylll direct City staff to go forward with everything Mr.
Livengood said and have the resolution on the May 6th agenda.
Status of discussions with Count v
Mayor Wessler stated they have a Water Cooperative in the County and they had
lunch here with Mrs. Martin and Mrs. Gillespie attending and she got a lot of
praise from Clay Henderson for the steps of progress in Edgewater. She said
she1s very pleased with Council on what happened at this meeting.
Councilperson Gillespie said they're getting real cooperation from the County
and she and Mr. Fazzone serve on boards and are getting recognition. She said
they have a sidewalk on Roberts Road that's County road impact fees at work and
Mr. Perry Barrett assisted in getting the right of way. She said Park Avenue
is their big project now. Councilman Jones said swimming at Menard-May is
important. Councilman Hays asked if the Water Cooperative will assist. Mayor
Wessler said they1re not close to that, they're just trying to get the West side
of the County involved.
Mayor Wessler suggested a motion to adjourn. Councilman Jones so moved.
Councilperson Gillespie seconded the motion. Meeting adjourned at 8:47 p.m.
Minutes submitted by:
Lura Sue Koser
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ATTEST:
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this' day of
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Council Special Meting
April 22, 1991
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18-Aor-91
CITY OF EDGEWATER - PROPOSED RATE INCREASES
Water System
Minimum
Existing Monthly Bill FY-91 FY-92 FY-93
$5.85 Per meter $6.50 $7.20 $7.90
$2.05 Volume charge $2 . 1 9 $2.34 $2.51
in excess of
2,000 gallons
FY-94
FY-95
$8.55
$9.3':
$2.73
$2.9:::-
Wastewater
Minimum
Existing Monthly Bill FY-91 FY-92 FY-93
$7.25 Per meter $8 . 1 I) $8.65 $9.05
$2.60 Volume charge $2.65 $2.79 $2.99
in excess of
2,000 gallons
FY-94
FY-95
$9.55
$9.5=
$3 . 18
$3 . 1 E
Each fiscal year runs from October 1 through September 30. Rate
increases will be effective on October 1 of each fiscal year except
for FY-91 which will be effective June 1, 1991.
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CITY OF EDGEWATER - PROPOSED RATE INCREASES #2
22-Apr-91
Increased Water Rates - Typical 6,000 Ga lIon Cus tomel-
**Annual**
Minimum **Annual** Cummulative
2,000 Base 4,000 Ga 1. To ta 1 % Change Cost Change Cost Change
Existing $5.85 $8.20 $14.05 N/A N/A N/A
FY-91 $6.50 $8.76 $15.26 8.6% 104.84 104.84
FY-92 $7.20 $9.36 $16.56 8.5% $15.60 $20.44
FY-93 $7.90 $10.04 $17.94 8.3% $16.56 1037.00
FY-94 $8.55 $10.92 $19.47 8.5% $18.36 $55.36
FY-95 $9.30 $ 11 .84 $21 . 14 8.6% $20.()4 $75.40
Ovet- S2 months
Increased Wastewatel- Rates - Typical 6,000 Ga 1 Ion Cus tomel-
**Annual**
Minimum **Annual.. Cummulative
2,000 Base 4,000 Gal. Total % Change Cos.t Change Cost Change
Existing $7.25 $10.40 $17.65 N/A N/A N/A
FY-91 $8 . 10 $10.60 $18.70 5.9% $4.20 $4.20
FY-92 $8.65 $11. 16 $19.81 5.9% $1.3.32 $17.52
FY-93 $9.05 $ 1 1 .96 $2 1 . (I 1 6.1% $14.40 $31 . 92
FY-94 $9.55 $12.72 $22.27 6.0% $15.12 $47.04
FY-95 $9.55 $12.72 $22.27 0.0% $0.00 $47.04
Ovet- S2 months
FY-91 Annual Cost Change is only for four months (Jun91-Sep91) for both
Water and Wastewatel-.
A comparison of the present rates to the proposed rates through September
30, 1995 result in the following total increase.
Water Services
$231.76
Wastewater Services
$181.32
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C E R T I F I CAT ION 0 F P 0 S TIN G
I, Susan J. Wadsworth, City Clerk of the City of Edgewater,
Florida, do hereby certify this 21st day of May
1991, I posted on the bulletin boards of the Edgewater City Hall,
the Edgewater Community Center and the Edgewater Public Library,
copies of the following:
Minutes
REGULAR COUNCIL MEETING - APRIL 15, 1991
Resolution
,
91-R-22
91-R-23
Ordinances
91-0-3
IN WITNESS WHEREOF, I have hereunto set my hand and seal of this
city of Edgewater, Florida, this 21ST day of Mav
1991
SEAL