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08-20-1990 - Regular .t .. ~ , CITY COUNCIL OF EDGEWATER REGULAR MEET! NG AUGUST 20, 1990 MINUTES CALL TO ORDER Mayor Mitchum called the meeting to order at 7:00 p.m. in the Community Center. ROLL CALL Mayor David Mitchum Councilman Dan Hatfield Councilmember Gigi Bennington Councilman Russell Gold Councilman Thomas Fish City Attorney Jose' Alvarez City Manager Elly Johnson City Clerk Susan Wadsworth Chief Lawrence Schumaker Present 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 Special Meeting of July 23. 1990 - Councilman Hatfield moved they accept the minutes of July 23rd. Councilmember Bennington seconded the motion. Motion CARRIED 4-0. Councilman Gold abstained from voting because he was not present at that meeting. Regular Meeting of August 6. 1990 - Councilman Fish moved they approve the minutes as being true and correct. Councilman Gold seconded the motion. Motion CARRIED 5-0. Workshop of August 8. 1990 - Councilman Gold moved for approval. Councilman Fish seconded the motion. Motion CARRIED 5-0. CITIZEN COMMENTS Mayor Mitchum advised there's a three-minute rule unless Council wishes otherwise. Frank Roe, 2732 Juniper Drive, commented on the August 15th budget meeting when the Mayor proposed cutting $1,600 from the budget for City employees, and stating senior citizens on fixed incomes have trouble paying taxes and why should the seniors pay for coffee. He didn't recall the Mayor or council expressing concern for the citizens in the last two years. He referred to his earlier recommend- ation to cut their pay from $300 and $400 and Councilman Hatfield had said it didn't amount to enough to make a dent in the budget, but now they're taking coffee away from City employees that according to them will make a dent in the budget. He asked if Council thinks this will affect the citizens. He said they want no more new business and since the other costs are increasing they should impose a hiring freeze until they see how the economy is going. He stated he's 100% in favor of bike paths but $230,000 for Roberts Road is too much to correct the Council's error in allowing the School to be built in that area. He added the Council should have insisted the County or School pay for this bike path and they should use City employees to construct it under the city Engineer's direction. He suggested they use the model on 442. Mayor Mitchum called time and Councilman Gold asked they allow him to continue. Mr. Roe asked if the School will put a bike path on the East side. Mayor Mitchum said they discussed it but he doesn't know. Mr. Roe asked why they're putting in on the West side if they don't know the School's putting it on the East side. He said Florida's tourist trade will be hurt and they need to tighten their belts. He stated they shouldn't be adding so many people to the payrolls, such as Code Enforcement. He said he tried to counsel them and they have one month to partly correct something so they'll have something to run on when they face election. / '-' ..., CONSENT AGENDA Self-Insurance Committeels recommendation to settle claim involvina Citv vehicle at 1705 Hi h Street for 1 346.52. Fire Chiefls recommendation to a rove a ent of 2 500 for Jul 4th fireworks. and Halifax Ford Mercur IS re uest for sale at propertv adjacent to Florida Shores Plaza on Auaust 24, 25, and 26 - Councilman Hatfield moved to close the consent agenda and accept it. Council- member Bennington seconded the motion. Motion CARRIED 5-0. NEW BUSINESS Water and Wastewater Rate Studv as prepared bv Over, Riddle, Mills & Precourt, Inc. - Mr. Ron Ferland, Project Manager of Dyer, Riddle, Mills & Precourt, Inc., introduced Mr. Rob Ori, the manager for rates and finance. Mr. Ori stated the last rate study was about 3 years ago and since that time costs of operations have increased and they're embarking on a major financing program. He pointed out the study has a 5-year projection, 1991 through 1995, and that should be the period of time when all debt is issued. He recommended water rates be increased by 10% per year and the wastewater about 5 to 6% per year for the forecast period. He added it's an average of about 7% for the two together. Mr. Ori stated in 1991 water rates will be increased for 6,000 gallons by $1.46 per month and wastewater will be $.84, for a total of $2.30. He said 70-80% of the customers fall in this range so they can expect an increase of $2.00 or less. He pointed out they compare very favorably to neighboring utilities. He read rates from other areas, noting some of those are increasing their rates also. Mr. Ori said they looked at impact fees and based on assessing facilities with the proposed program they're recommending no change and for wastewater they're recommending an increase to $1,425, or a $425 increase. He said that's based on its being an advanced system and reclaimed water. He noted because of the special assessment program, the ordinance needs to be modified so anyone in Florida Shores that needs to be assessed will not pay the impact fee and new customers will pay the impact fee. Mr. Ori stated customer deposits are currently $30 for water and sewer and based on proposed rates and level of risk assumed by the utilities, he recommended they be $45 for water and $45 for wastewater, for a total of $90 for residential customers. He stated commercial would be the average two months' bill. He said they have 6,000 customers that should be grandfathered in and this would apply only to new customers. He noted Florida Shores residents will have to pay small deposits when they hook up and it's not part of the assessment program. Mr. Ori stated debt service coverage was reviewed and proposed rates should meet requirements of the bond resolution and State Revolving Fund. Councilman Hatfield asked if this will deal with part of the CIP. Mr. Ori replied yes. Councilman Hatfield requested Mr. Stan Livengood's comments. Mr. Stan L ivenQood, Vice President, Raymond James & Associates, the Cityls Financial Advisors, stated he reviewed the proposed water and wastewater study in detail and the bottom line is modest in terms of actual quantity of rate increases required to support the portion of CIP from rates. He said a large source will be levied by special assessments and not by rates. He commented on discussions held held with the consulting engineers, stating he's comfortable that if City Council were to approve and put into effect the 5-year program of rate increases for water and wastewater, it would result in the City's being in a position, prior to completing the special assessment process, to proceed in the financial market to issue up to $15 million in water and sewer revenue bonds that would be applied to retiring the $4.7 million BANis and the bulk of the remaining amount, 8-1/2 million, would fund and allow them to start construction of the water system improvements that are so desperately needed. He pointed out there's a provision in the 1990 bond resolution approved about six months ago that once the City issues bonds pursuant to that 1990 bond resolution, which they haven't done yet, and those bonds are projected to be repaid from monies from th i s program of rate increases, then subsequent Counc il s cannot change their minds and rescind those rate increases. He explained the City loses its ability to change its mind and the Council won't have the option to change it. He stated this is necessary in order that the bonds be marketable and if the City retains the option of not putting into place rate increases for those next few years, it would be likely there wouldn't be revenues to pay those issues. He pointed out it doesn't mean it cannot be amended but bonds secured by water and sewer wouldn't be marketable if there were a cancellation provision. 2 Council Regular Meeting Minutes August 20, 1990 '., . ... ...."" NEW BUSINESS (Continued) Water and Wastewater Rate Study as prepared by Dyer. Riddle. Mills & Precourt. Inc. (Continued) Councilman Fish asked how much growth is in this study. Mr. Ori replied they've looked at the last five years of City growth in Florida Shores and without, and they added about 290 customers and decreased the growth rate. He noted they also looked at Edgewater Landing and talked with people there and they don't have any new development that's not established there. He said they also looked at average use per customer. Councilman Fish asked if it includes the 180 area, such as Hacienda Del Rio. Mr. Ori said they assumed the purchase of Hacienda Del Rio and there's approximately 150 customers with an increase of 8 per month. Councilman Fish asked what would happen if they don't go through with the purchase. Mr. Or i rep 1 i ed it wou 1 d be $30- $40,000 and wou 1 d decrease debt service. Counci lman Fish asked about the $15 mi 11 ion financing for rate increases. Mr. Or i rep 1 i ed debt serv i ce coverage is very high and they're assuming some junior debt and they wouldn't see much of an impact in those terms. He added they have a $50,000 a year contingency to cover any unforeseen circum- stances that would be a source a funds. Councilman Fish stated DCA advised there's a problem and if they placed a building moratorium, then current residents would be responsible for the $15 million. Mr. Ori said they'd have to re-evaluate it if there were a moratorium in Florida Shores. Mayor Mitchum asked if it would be to re-evaluate and raise them. Mr. Ori said Florida Shores is a major growth factor in this study. He added the water system has the highest customer base. Councilmember Bennington said they're locked into this for 5 years at increased rates and if the revenue exceeded the anticipated amounts in 2 years, could they adjust them then. Mr. Ori explained the bond resolution requires they keep those rates unless they amend the resolution and held keep a close eye on that. He pointed out they did a rate stabilization and if they had a good year, that doesn1t mean another of the 5 years wouldn't be lower, and if they get an excess of money, they could defease the bonds. Councilmember Bennington asked if there are 6,000 water customers. Mr. Ori repl ied they estimated on 6,400. Councilmember Bennington expressed concern with the way the economy is. She asked if there will be no increase in water impact fees in the 5 years, or just the first year. Mr. Ori replied that's as of today and they didn't project 5 years into the future and assumed the same fees for the 5 years and no change. He said wastewater with special assessment wouldn't be charged an impact fee. Councilmember Bennington said she didn't know they1d established a special assessment program in Florida Shores. Mr. Johnson stated they did by Council action on how they'd pay for financing for Florida Shores and they made the commitment to the State in the 201 Amendment. Councilmember Bennington agreed, saying they didn't determine what the special assessment will be and seeing they won't pay the impact fees, that's not true. Mr. Ori explained they'll pay the special assessment and you have to change the ordinance so they're not also paying impact fees. Mr. Johnson stated it's so people in Florida Shores wouldn't be hit with all the costs at one time. Councilmember Bennington said they'll have to pay a sewer deposit. Mr. Ori said any customer. Councilmember Bennington said they're not recommending raising the water impact fee and the reason for wastewater is because they're going with special assess- ment. Mr. Ori said cost of sewer is because they're now constructing an advanced wastewater treatment plant and re-use which is above and more costly. He stated $1,400 is very reasonable compared to other cities. Councilmember Bennington asked why they don't increase water impact fees. Mr. Ori said they have to stand the loan and the fee is adequate to cover that. Councilmember Bennington asked if all this could change if they have a building moratorium. Mr. Ori replied yes, because customer growth isn't there that was in the forecast. Councilmember Bennington asked if there's a real bad economy and they don't have construction. Mr. Ori replied it's hard to project that when you look at the last 5 years and he has it decreasing over time. He pointed out conservation of water is also happening. Councilmember Bennington said if they go with the recharge system, some water usage will drop. Mr. Ori agreed, adding most people who don't irrigate now will do so. He noted average use is 5-6,000. He pointed out this is a short term 5-year forecast and farther down the road they'll see an impact and they think people will irrigate that arenlt now. Councilmember Bennington noted people who irrigate now use well water. Mr. Ori agreed. 3 Council Regular Meeting Minutes August 20, 1990 .., ...., NEW BUSINESS (Continued) Water and Wastewater Rate Study as prepared by Dyer. Riddle. Mills & Precourt. Inc. (Continued) Mr. Johnson stated there's no way to forecast the economy and regarding DCA if Council has an adopted program and procedure with the plan as they proposed, it's a possibility there won't be a moratorium placed. He said older septic tanks with bad soil areas are where the pollution is creating a problem and they're looking at it and will work with DCA before they get down to hard core issues. Councilmember Bennington asked minimum amounts they charge now. Mr. Ori said it's for 2,000 gallon usage and he left rate structures as is. Councilmember Bennington said 6,000 gallons will go up $1.46 and wastewater 84 cents, or $2.30 the first year. Mr. Johnson commented on private wells with salt intrusion. Mr. Ori noted they had water restrictions in 1990 and recognized a decrease in use. Mayor Mitchum asked the projected percentage of water reuse. Mr. Ferland replied they projected 30% in Florida Shores in the 201 Plan at $6.00 a month flat rate. Mayor Mitchum asked if theyld decrease it to $4.00 a month if there were 60%. Mr. Ferland agreed, saying they used a comparison figure of $6.00 of other communities. Mayor Mitchum asked the percentages in other communities. Mr. Ferland replied he'll look at it. Councilmember Bennington asked if these rate increases will be used to go for the $15 million bonds for the new water plant, wells, and improvements to the wastewater treatment plant they have to do. Mr. Ori replied yes, it should provide financial security to the bond market. Councilman Hatfield moved they direct the Attorney to prepare the ordinance to implement the changes. Councilmember Bennington seconded for discussion. She said she has a problem with tying the City up for 5 years, and is this the only way they can do it. Mr. Livengood said each year's rate increases will produces revenues and structuring of the $15 million financing is such that the demand will be phased in as the rate increases go into effect. He said tying up the City for that period of time is a plan and there's a need for $15 million of financing and those monies are to be repaid from net revenues from the water and wastewater system and to assure adequate revenues are present in the future that are not generated in revenues today adequate to repay the $15 million. He explained it's a way the burden of repaying this large amount is being phased in on the rate payers over a 5-year period of time. He noted for the magnitude of financing it has worked out as a much smaller impact than held anticipated. Councilmember Bennington asked if the budget they're going to work on is based on these fees. Mr. Johnson replied yes, and whatever rate they adopt will have to be adjusted. Mayor Mitchum stated the water plant is the most important part of the CIP at this point. Mr. Livengood pointed out the 5-year lock up doesn't occur until the City actually issues the bonds and then it becomes binding on the City. He again stated the City could modify or amend that provision out of the 1990 bond reso 1 ut i on but he fee 1 s if that occurs the bonds wou 1 dn 't be marketab 1 e or insurable. Councilmember Bennington asked the next step in dealing with the CIP, especially the water plant, if they adopt this. Mr. Livengood replied the affirmative action to direct the City Attorney to implement these increases would constitute a de facto instruction to the finance team to put together a $15 mi 11 ion financing to bring back to Council, but it should be subject to a separate action of Council. City Attorney Alvarez asked if he's aware of a similar situation with debt financed by a promised commitment that future Councils will implement rate increases. Mr. Livengood replied yes, it's not all that uncommon. City Attorney Alvarez stated the increases don't appear that large, and he asked if they've looked at the worst scenario because held stated they don't now have revenues to issue the $15 million. Mr. Livengood replied yes. City Attorney Alvarez asked when they'll have the revenues. Mr. Livengood replied if all assumptions in the rate study occur as expected and growth in customers and decrease in usage per customer and inflation rates and expenses of operating the water and wastewater systems come through, then at the end of the 5-year period all debt service associated with the CIP that's to be paid from water and sewer rates will have been assimilated in the system and they'll be paying all necessary expenses and costs of operating the two systems and everything will not happen exactly as projected by the engineers and some changes may be material. He said if they generate more revenue he thinks the language in the 1990 resolution would allow the option of cutting back on the 4 Council Regular Meeting Minutes August 20, 1990 ~ ...., NEW BUSINESS (Continued) Water and Wastewater Rate Study as prepared by Dyer. Riddle. Mills & Precourt. Inc. (Continued) rate program. City Attorney Alvarez asked what if they do not, and subsequent Counci ls are faced with inadequate revenues. Mr. Livengood replied there are provisions in every issue called the rate covenant which is on the part of the issuer that1s binding on all subsequent Councils until bonds are retired and it's usual on every bond he's aware of and in the event at any time in the future net revenues aren't adequate to meet payments and to provide for coverage as security of the bond holder, then the issuer will increase rates necessary to provide the agreed upon coverage and make payments. He explained if the City implements a 10% increase and revenues aren't adequate to allow the City to make payments required under the 1990 bond resolution and achieve the minimum coverage. then it's the City's obligation to increase rates further above the 10% such that revenue will be adequate to provide for meeting the agreements. City Attorney Alvarez said they'd increase to whatever amount necessary. Mr. Livengood agreed. Councilmember Bennington said they're accepting this and asking the City Attorney to draw up the ordinance that will come back for first reading and public hearing to get public input. Mayor Mitchum agreed. Motion CARRIED 5-0. Thomas Eo Owens re: Codes and Ordinances of the City of Edqewater - Mayor Mitchum stated this item has been withdrawn. ORDINANCES. PUBLIC HEARINGS. AND RESOLUTIONS First Readinq: Ord. 90-0-32 Amendinq Chapter 13. Personnel. re: Merit Board recommendations shall qO to City Manaqer and City Council - Mayor Mitchum read the ordinance. ORD. 90-0-32 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AMENDING CHAPTER 13, PERSONNEL, SECTION 13-22 (c), "DUTIES AND FUNCTIONS OF THE MERIT BOARD" OF THE CODE OF ORDINANCES OF THE CITY OF EDGEWATER, FLORIDA, BY PROVIDING FOR RECOMMENDATIONS OF THE MERIT BOARD TO GO TO THE CITY MANAGER AND CITY COUNCIL; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. Councilman Gold moved for approval of Ord- inance 90-0-32. Councilman Hatfield seconded the motion. Motion CARRIED 5-0. Ord. 90-0-33 Amendinq Chapter 5. Animals & Fowl. as recommended bv Police Chief and Animal Control Officer - Mayor Mitchum read the Ordinance. Ord 90-0-33 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AMENDING CHAPTER 5, ANIMALS AND FOWL, OF THE CODE OF ORDINANCES OF THE CITY OF EDGEWATER, FLORIDA, BY CHANGING THE NAME OF NEW SMYRNA BEACH-EDGEWATER HUMANE SOCIETY TO SOUTHEAST VOLUSIA HUMANE SOCIETY; BY ADOPTING APPLICABLE STATE LAWS, INCLUDING ALL THOSE CONTAINED IN THE FLORIDA STATE LAWS RELATING TO ANIMALS PUBLISHED BY THE FLORIDA FEDERATION OF HUMANE SOCIETIES, INC.; BY ALLOWING RESTRAINTS TO INCLUDE TRANSPORTATION IN A PICK UP TRUCK; SUBJECT TO VOICE COMMAND; INCLUDING CUSTODIAN UNDER DEFINITION OF OWNER; EXPANDING VICIOUS ANIMAL DEFINITION TO INCLUDE THOSE TRAINED FOR FIGHTING; LICENSING OF CATS; REDUCING REDEMPTION TIME FROM 7 TO 3 DAYS; EXEMPTING AS VICIOUS ANIMAL, ONE WHO BITES IN DEFENSE OF THE OWNER, A TRESPASSER OR ANY OTHER PERSON OR ANIMAL WHICH HAS THREATENED IT; BY SHARING RESPONSIBILITIES BETWEEN THE HEALTH OFFICER OR ANIMAL CONTROL OFFICER; PROHIBITING VACCINATION BEFORE EXPIRATION OF QUARANTINE; REQUIRING VACCINATION OF DOGS AND CATS; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. Councilman Fish moved they adopt 90-0-33. Councilmember Bennington seconded the motion, and asked if this was the Animal Control Officer's request that the ordinance be updated. Councilman Hatfield suggested they send it to the Humane Society since some will require some changes in their rules. Chief Schumaker noted about anything pertaining to the Humane Society is already in place and it's just updating the ordinance from the previous writing. Mr. Johnson said some recommendations came from the Humane Society. Chief Schumaker said they changed it from 7 days to 3 days and they're aware of these changes. Motion CARRIED 5-0. Res. 90-R-48 Callinq for primary election Oct. 2. 1990. and qeneral election Nov. 6. 1990. and desiqnatinq votinq places - Mayor Mitchum read the Resolution. RES. 90-R-48 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, CALLING FOR A PRIMARY ELECTION AND A GENERAL ELECTION FOR MAYOR AND COUNCIL- MEMBERS ZONES 1, 2, 3 AND 4 TO BE HELD IN THE CITY OF EDGEWATER. FLORIDA ON OCTOBER 2, 1990 AND NOVEMBER 6, 1990 RESPECTIVELY; FOR THE PURPOSE OF SELECTING TWO CANDIDATES OF MAYOR AND COUNCIL SEATS FOR ZONES 1,2,3 AND 4 AND FOR THE PURPOSE OF ELECTING A MAYOR AND COUNCIL SEATS FOR ZONES 1,2,3, AND 4; DESIGNATING 5 Council Regular Meeting Minutes August 20, 1990 . . . . .... ...", ORDINANCES. PUBLIC HEARINGS. AND RESOLUTIONS (Continued) F;rst Read;nq: Res. 90-R-48 Call;nq for pr;mary elect;on Oct. 2. 1990. and qeneral elect;on Nov. 6. 1990. and des;qnat;nq vot;nq places (Continued) THE VOTING PLACES FOR SAID ELECTIONS; DIRECTING THE CITY CLERK TO PUBLISH THE RESOLUTION; REPEALING ALL RESOLUTI ONS IN CONFLI CT HEREWITH AND PROV ID I NG FOR AN EFFECTI VE DATE. Counc il man Fish moved they accept 90-R-48. Councilman Gold seconded the motion. Motion CARRIED 5-0. Res. 90-R-49 Cancell;nq reqular meet;nq Sept. 3. 1990. due to Labor Day hol;day and reschedul;nq for Auqust 29. 1990 - Mayor Mitchum read the Resolution. RES. 90-R-49 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, CANCELLING THE REGULARLY SCHEDULED MEETING OF SEPTEMBER 3, 1990 AND RESCHEDULING SAID MEETING OF SEPTEMBER 3, 1990 TO AUGUST 29, 1990; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND PROVIDING FOR AN EFFECTIVE DATE. Councilman Hatfield moved they accept Resolution 90-R-49. Councilmember Bennington seconded the motion. Motion CARRIED 5-0. Second Read;nq:(Publ;c Hear;nq) None UNFINISHED BUSINESS None COUNCIL/OFFICERS REPORTS C;ty Attorney - City Attorney Alvarez had no report at this time. C;ty Manaqer - Mr. Johnson had no report at this time. C;ty Counc;l - Councilmember Bennington stated it's come to her attention over the last couple of weeks that they have a real problem with the sign ordinance and it's full of contradictions and if they enforce it the way it's written it would take 10 full time people. She said because of these reasons, she'd like to move to immediately suspend enforcement of it and send it to the LDRA for review and take necessary action to clear any of these ambiguities up. Council- man Gold seconded the motion. Councilman Hatfield asked if that addresses campaign signs also. Councilmember Bennington said they should immediately suspend it. Mr. Johnson said it's political signs also. Mayor Mitchum agreed. Motion CARRIED 5-0. QUESTIONS FROM PRESS None CITIZEN COMMENTS Norm B;llups, 1860 Pine Tree, said all he hears is Florida Shores assessments and special assessments but what about widows on social security who will be assessed out of their homes. He asked that they look seriously into this. He said he heard there will be a ruling against private wells and he dares them to come on his property and keep him from using his privately drilled well. He asked if they'll charge for water used and put a meter on Fire equipment and charge homeowners for water used in fighting a fire. He said they're reaching out for all they can and it will stop because of a national emergency. Mr. Johnson explained he didn't say they'd be prohibited from private wells and a lot of people will cancel their wells because the wells are in the shallow aquifer but if they don't have problems with salt, then it's no problem. He added there's nothing in the proposal for a charge for a fire truck going to someone's house. Mr. Billups said he didn't put it past the City the way they're reaching for money, such as licensing of cats. Frank Roe, 2732 Juniper Drive, stated when the plan started for financing the $15 million it wouldn't obligate the City for payment of these bonds and if the bonds didn't meet the payments the City wouldn't be liable under this financing plan and now the City's in a noose and they're stuck with increases for 5 years. He asked how much will be left of the $15 million bond issue for the water and sewer plant and the sewer distribution system after they payoff what they owe in order to get these bonds. He said they have septic systems and pipe problems in the old section of Edgewater and he'd asked Council to correct those before they attempted to expand. He asked the Mayor to reply to that. Mayor Mitchum stated he doesn't know of any financing plan where they're not obligated to pay it off and it obligates certain funds. Mr. Roe stated some cities aren't responsible for water and sewer plants and they don't increase their rates. He asked how much of the $15 million will be left. Mr. Ferland stated a small 6 Council Regular Meeting Minutes August 20, 1990 ..' r1' 1 't..".. ...... ~ CITIZEN COMMENTS (Continued Frank Roe (Continued) portion is associated with the wastewater plant but to keep the tax exempt status they have to spend the money they borrow and spend it on the project in a timely manner. Mayor Mitchum pointed out there's no obligation of the general fund and it's a user fee. Mr. Roe said they have to increase the user fees and won't have enough to finance all the things they have to do. He requested they have a workshop on this. He asked what they'll do about the other problems after the $15 million. Mayor Mitchum called time and Mr. Roe did not wish to continue. Georae Ewina, Royal Palm, asked if they're now paying $1,000 for water service. Mr. Ferland replied when they hook up the one time. Mr. Ewing asked if wastewater impact fees not in Florida Shores will be $425. Mr. Ferland replied it's $1,425. Councilman Hatfield explained it's not in the areas of assessment. Mr. Ewing asked if they know the Florida Shores impact fees. Mayor Mitchum said it's part of the special assessment. Mr. Ferland explained the treatment capacity charge, which is the impact fee including effluent disposal, would be $1,028 if paid up front rather than $1,425 just for wastewater and water for new connections. Harrv Jones, 3035 Tamarind, asked if they'll get $15 million or will they pay $15 million, or what will they do with the extra money. Mr. Ferland explained they'll borrow $15 million and that will pay construction costs to build the facilities and they'll pay it back over 15-20 years. Mr. Jones asked the rate. Mr. Ferland replied about 7-1/4% but it depends on when they borrow. Mr. Jones said they'll pay back about $16 million for 15. Mr. Ferland commented he thinks it's more than that. Frank Roe, from the aud i ence, asked to correct a mi sstatement. No Counc il member indicated willingness to hear from him again. ADJOURN. Councilman Fish so moved. Councilman Hatfield seconded the motion. Meeting was adjourned at 8:12 p.m. Minutes submitted by: Lura Sue Koser ,;- ./ .-" ,I]" .,:1 " ~.;:, ,,' , ,i . COUNCILMAN - ZONE FOUR ATTEST: LJ~ CITY CLE~ 7 Council Regular Meeting Minutes August 20, 1990