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01-14-1989 - Special/Workshop ....... ..... CITY COUNCIL OF EDGEWATER SPECIAL MEETING AND WORKSHOP JANUARY 14, 1989 MINUTES Mayor Mitchum called the meeting to order at 9:00 A.M. in the Community Center. He stated the purpose was to discuss the capital improvement program for the City of Edgewater. ROLL CALL Mayor David Mitchum Councilman Dan Hatfield Councilwoman Gigi Bennington Councilman Russell Gold Councilman Thomas Fish Present Present Present Present Present City Attorney Jose' Alvarez City Manager William Powers Acting City Clerk Susan Wadsworth Chief Lawrence Schumaker Arrived Later Present Present Present Mr. Powers explained this workshop is to be an update on the capital improvement program and to discuss the bike path on 442 and the repaving program and to request authorization to go out for bids on the resurfacing program for the streets that have been identified. Mayor Mitchum requested amotion to go into the Workshop. Councilwoman Bennington so moved. Councilman Hatfield seconded the motion. Motion CARRIED 5-0. Gerald Hartman, Vice President, Dyer, Riddle, Mills & Precourt, Inc., began a review of a Workshop Briefing Document they had prepared. City Attorney Alvarez arrived at this time, 9:07 A.M. Mr. Hartman pointed out they'd identified the infrastructure needs per prior authorization. He said they need to continue expansion and improvement of the City-wide system to serve the water customers. He said they did a financial market capability and they looked at City-wide improvements and benefits. He said water would be with a revenue bond and the facilities that would benefit only certain streets or blocks can be bond but will be done on an assessment basis so it wouldn't impact the overall program. He pointed out it would be revenue bonds and assessment bonds. He stated they prioritized with a ranking 1 through 8 and recommended projects 1 through 4. He noted that the Park Avenue site is a good site for a storage and repumping station and it would be a 50-year facility for the repumping system. He said they need a new water treatment plant to expand the facility to meet the total City needs. Mr. Hartman pointed out there's a public health situation with septic tanks and drainage to the canal and they want to correct that with infrastructures to take care of the sanitary needs. He pointed out the projects are directly based upon need and they're at the Council's decisions point. Mr. Hartman then reviewed the water flow figures and projections. He pointed out water is based on maximum daily flow and wastewater is average daily flow. He said the existing water treatment plant is 1.4 MGD and the demand is greater than that and they got an interconnect with New Smyrna Beach at a higher cost and that cost could be better invested in capital improvements. He said they're close to their expanded interim water treatment plant capacity of 2.3 MGD. He displayed a chart that showed the existing capacity and that in another year or so they'll run out of capacity. He pointed out they're planning to go to 5MGD in an expandable system that will serve the needs until 2002. He said the treatment plant site and planning is a modular format to go from 5 to 7.5, and ultimately to 10 MGD, and the concrete and steel will last for 50 years. Mr. Hartman then introduced Mr. Ron Ferland, a professional engineer with his firm. ....... .... Mr. Ron Ferland, Division Manager for Environmental Division, reviewed the water improvements list and pointed out they need to expand the western we11fie1d in the area directly east of 1-95 and south of 442. He said they did the preliminary testing and are permitting from St. Johns for the consumptive use permit. He pointed out the western water treatment plant is a 5 MGD system expandable to 10 MGD with the site plan they proposed. He then reviewed the transmission procedure and pipe sizes from the we11- field to the residents. He listed the proposed water distribution system improvements for various areas of the City. He detailed the lime softening system and pointed out that if other technology becomes better in the future then can plug those in and there's plenty of land and flexibility. He stated that they want to locate the western water treatment plant as close to the we11site as possible so they can use the generators to back these wells if necessary and for protective measures insofar as vandalism. Mr. Ferland stated the total we11fie1d expansion would be $1,315,600 for 7-10" wells 200 feet deep and 1.6 miles of raw water pipeline and a 60 acre site. He noted the 60 acre site is a parcel available from a single land- owner and they hope nobody will locate a land development that will cause contamination of the wells. He added that the cost includes engineering and building the we11fie1d and legal and administrative costs for $1.3 million. Mr. Ferland stated the 5 MGD lime softening water treatment plant has a 20 acre site at a cost of $4,557,800. Councilwoman Bennington asked if the 20 acres is in addition to the 60 acres and Mr. Ferland replied yes. Mr. Ferland stated the water transmission mains are $2.4 million. He detailed the costs for the western mains, the miscellaneous distribution system, and the Florida Shores distribution system. He pointed out this will provide the degree of service and reliability for fire protection for Florida Shores. Mr. Ferland stated the total water system capital improvements would be $8,264,000 and these costs are escalated to include the inflation costs with a September, 1989, construction date, and includes engineering, admin- istrative, legal, and contingency costs. Norman Billups asked if treatment plant sludge. industries sometime use and transport it. Councilwoman Bennington asked if this includes a cost analysis for the average household. Mr. Ferland replied they looked at it about a year ago and it was about a 30% rate increase. Mr. Hartman pointed out the City just went through a rate increase but an adjustment will be required. Councilwoman Bennington asked about the comparative cost for the new plant to the present plant. Mr. Hartman agreed it would be more efficient. it would be financially feasible to sell the water Mr. Hartman replied the construction and building it but there's a cost to take it out of the lagoons Mayor Mitchum asked if they could sell water to the South after they expand the water plant. Mr. Hartman replied yes and they could take water outside the corporate limits where they get 1.25% surcharge. Mr. Ferland showed on a map the service areas and the present City limits, and said the 16" line provides back feed and the capacity to go to the South and some of the costs associated with this can be borne by developer contributions. Councilwoman Bennington asked if those outside the City pay for the lines to their area and Mr. Ferland agreed. City Attorney Alvarez asked about the concept of the service area and Chapter 180 and the importance of preserving the reserve area without intervention of other agencies. Mr. Hartman replied it's important to maintain because of the economy scale the City will get and they're now on the State loan program for the 3% subsidized funding for wastewater systems. He added that sometimes developers in the County will dedicate their facilities to another entity and the City staff is currently working to rectify that. He said they have the commitment to give low cost loans subsidized by the government and to maintain lower rates for citizens. -2- Council Special Meeting and Workshop Minutes January 14, 1989 .... ..., Mayor Mitchum asked how far South the reserve area is now and Mr. Ferland replied they went about 5 miles from the City limits. Mr. Hartman noted they have to change the ordinance to reflect changes and the City can delegate that to a private utility. Mayor Mitchum suggested they may want to look at their Southern boundary. Mr. Hartman then showed the wastewater flow projections with the existing capacity and growth rate and those that don't have service. He said City- wide improvements will affect all the customers and those in front of the residents will be on an assessment basis and you'll have equity in service and cost recovery and rates. He pointed out they went through planning, preliminary design, soil borings, determining what roads are paved and not paved, and water conditions, and they have to look at financing and then to design, permitting and construction. Mr. Ferland showed on a graph the Florida Shores transmission system to get the wastewater to a treatment plant, and noted that a local lift station with manifolding transmission main is the most cost effective method and the most reliable. He reviewed how the system would work with a projection of 15 lift stations which are indepen- dently usable. He showed a color coded Florida Shores collection system graph and said when they dig the roads they have to replace them which will be a large part of the cost. Mr. Hartman said when they finish the sewers and restore the shell, they just have to pave it which would reduce the costs for paving and part of the assessment covers the roads. Mr. Ferland pointed out there were City-wide collection system improvements for Florida Shores East, the Thomas Avenue area, and upgrades and rehabili- tations of certain pumping stations. Mr. Ferland stated they have to figure for effluent disposal and they identi- fied four major methods of getting rid of wastewater effluent, with spray irrigation on a land area with a cover crop; wetland irrigation system; or rapid infiltration basins with percolation ponds with only one location available East of 95 and South of Park Avenue; or deep well injection with about a 1,200 foot well at the treatment plant site and pumping water to the saline aquifer. Mr. Ferland showed the cost per gallon with spray irrigation extremely high at $6.70 and deep well injection at $2.29 per gallon. He pointed out that deep well injection is the most cost effective and the Indian River discharge is the second most viable alternative. Mr. Ferland showed the costs for the wastewater system projects as $1,081,000 for the miscellaneous City-wide collection system; $3,235,000 for the waste- water treatment plant expansion; and $2,500,000 for the deep well injection effluent disposal. Mr. Ferland stated the cost for the Florida Shores collection system is $10,864,000. He reviewed the items under this project. Mr. Ferland showed the costs for the wastewater system and collection system projects of $18,345,000. Councilwoman Bennington asked about a back up if the deep well for injection would fail. Mr. Hartman replied they'd maintain the outfall and would have intermittent discharge capabilities. There was discussion about the reliability of these systems. Mr. Ferland stated they'd use the Indian River for back up, Councilwoman Bennington asked if the shell roads would be brought up to par and Mr. Ferland replied yes, like a new shell road to a certain elevation and compaction. Mayor Mitchum questioned if it should be done before the soil cement base and do paving project to offset some of the costs. Mr. Hartman replied yes and they'd work with Mr. Ferrara on that, but from a timing standpoint this would be a good opportunity to have the roads paved. Mr. Ferland pointed out they could go with soil cement or shell rock and it's a design criteria and should be about the same cost. -3- Council Special Meeting and Workshop Minutes January 14, 1989 ~ ..." Mr. Hartman stated that possibly funds could be available from the State as a subsidy for the stormwater utility. He explained the stormwater utility is to provide a means of financing, to alleviate flooding problems as well as pollution problems, with a monthly user charge of about $2.00 per lot. Councilwoman Bennington asked if it includes undeveloped lots and Mr. Hartman replied yes. Mr. Hartman reviewed the goals and objectives of the stormwater utility. Dom Fazzone, 302 Paradise Lane, Shangri-La, asked if the water that will be treated at the western water treatment plant would be better quality than what they have now and Mr. Hartman replied yes. Mr. Fazzone stated that a lot of people are buying their drinking water. Frank Ferguson, Shangr~La, expressed concern with their streets and asked if they'd come under the Thomas Avenue section for wastewater. He referred to the serious flooding problem and they've never been approved or accepted by the City. Mr. Hartman explained that would be under the stormwater utility, and City Engineer Ferrara would talk about paving roads to bring them up to grade. Mr. Ferland explained that wastewater would not be impacted with Shangri-La as they're already serviced. George Ewing, Royal Palm Drive, asked about the 3 phases and where the street cutoffs were. Mr. Hartman explained this is a possible phasing and it's a decision to be made whether to do it all or at logical breaks. Mr. Ferland showed on a map where the proposed breaks would be. Mayor Mitchum called a recess at 10:30 A.M. He called the meeting back to order at 10:41 A.M. Dom Fazzone asked about other items in the previous capital improvement book. Mr. Hartman explained their firm is not in charge of stormwater capital improvements and City Engineer Ferrara will present those. Mr. Fazzone asked if it will be part of the ClP and Mr. Hartman replied that wasn't determined. George Ewing, Royal Palm Drive, asked the price for paving one mile of road and Mr. Ferrara replied it's $40,000 per mile. Norman Billups asked about disposal of sewage sludge. Mr. Hartman explained they digest it and a small quantity is generated but they could compost it and sell it or charge for the application and see what customers they'd get. Mr. Ferland suggested a large agriculatural parcel could be leased by the City and apply the sludge, and a hay crop could be sold to DOT. Mr. Billups asked about the use of parachloride and Mr. Hartman replied it's still being used but the cost is high. Mr. Billups asked about use of floculation with the water treatment plant and Mr. Hartman replied the softeners have flocu- lation units and it's part of the process. Mr. McClain asked about the $40,000 figure for road paving as he'd heard Volusia County paved roads for $6,000 a mile, and their best road would be $32,000. Mayor Mitchum replied that Mr. Ferrara will explain that later. Mr. Hartman recommended the water problem be solved and suggested a capital improvements committee be selected to implement the program facilities and this committee should consider the acquisition of water treatment plant and wellfields. He noted they have to get financing in place and a finance committee should be formed to get the investment banking services. He pointed out they were selected to design and implement the program but the contract only goes through preliminary design and they're requesting they continue into the final design and to consider the stormwater utility to develop the information to come back to Council with an ordinance that establishes it. -4- Council Special Meeting and Workshop Minutes January 14, 1989 .., ...., Gerard Ferrara, City Engineer, stated he'd handle new road construction and drainage. He stated they determined approximately 13 streets need to be paved with a cost to do all the work of about $20,800,000. He noted that it would be a 20' road with 1" asphalt surface with a 6" base and 6" stabilized section under that. He then showed on a map the three major drainage areas. He said Wildwood area, Shangri-La area, and the total of Florida Shores are critical, and Wildwood and Shangri-La would be done first. He suggested that as they do a particular phase, they follow behind with the drainage and paving for that area. He reviewed the solutions to the drainage problems using the various canals and outlets and putting pipes and culverts in to increase the openings to let the water move out. He stated the cost for that work is $11,400,000, and a total for roads and drainage is about $32 million if everything's done in the City limits. Councilwoman Bennington asked if the stormwater utility would pay for drainage and Mr. Ferrara replied no, that's to be done under the ClP on an assessment basis. Mr. Powers noted the stormwater utility would fund that. Councilman Hatfield asked if they'll start the paving of the areas where sewers are already in place and Mr. Ferrara replied they don't have a program for new construction. Councilman Hatfield pointed out that Old County Road, Cheetah, Turgot, and Pearl Street aren't paved. Don Bennington asked about rediverting the stormwater back to the swamp area. Mr. Ferrara replied the swamps fill up to a point that floods people so it would cause more problems and there's no positive outfall. Mr. Bennington stated the State will tell them they have to start dumping stormwater into the River. Mr. Ferrara explained they have to look for additional areas for storage and will discuss it with the State. Mr. Bennington asked if it's filtration or street stormwater runoff. Mr. Ferrara replied it usually falls into ditches and ponds and then flows off and if you hold it back, you'll flood the people to the south of the system and there's an elevation problem with taking it back to the swamp. Norman Billups asked if they increased the size of the culverts under the roads. Mr. Ferrara explained there's no final design on the system and they're looking at all the solutions to see what it will take to get the water through. Mr. Billups spoke about the 18th Street canal culvert sizes. Mr. Ferrara stated they're cleaning the systems and replacing culverts with bigger than what were there, but they have to look at the end of the system where it's dumped. Dom Fazzone asked the cost for roads and Mr. Ferrara replied $20,800,000. Mr. Fazzone asked the costs for stormwater and Mr. Ferrara replied $11,400,000. Mr. Ferrara explained that nothing is planned for streets in Shangri-La but the stormwater will be addressed. Mr. Fazzone asked that cost and Mr. Ferrara replied he didn't have that figure yet. Frank Ferguson, Shangri-La, stated the contractor for Shangri-La didn't get a final inspection. Mr. Ferrara stated they had a final inspection but they haven't approved it. Mr. Ferguson questioned why they allowed those retention ponds and pipe sizes. He said the pipes are filled with dirt and it backs up from the pond area to the circle. Mr. Ferrara said he'd look at it next week to see if it's plugged, but it hasn't been taken over by the City. Mr. Ferguson questioned whose liability it is and if the Association has to get liability insurance. Mr. Ferrara replied the roads and drainage are still under the jurisdiction of the developer. Harry Ryan, Wildwood Subdivision, suggested the City be ready to replace the pipes under Park Avenue out of Wildwood when the County paves Park Avenue. Mr. Ferrara stated he'd write a letter to the County to inform them of our problems. Councilwoman Bennington asked if the $20,800,000 is contractor paving or using our paving equipment. Mr. Ferrara replied it would be contracting it out with asphalt surface, and there would be a savings if the City's manpower is used. -5- Council Special Meeting and Workshop Minutes January 14, 1989 . . ........ ....", Mr. Powers asked for approval of a request to go out for bids for resur- facing that was identified in this year's budget, or it could be done at another meeting. Mayor Mitchum suggested they move the bike path discussion to another meeting and the resurfacing. Councilwoman Bennington stated it's not part of the CIP that was listed on the agenda. Mayor Mitchum noted it was budgeted but not under CIP and it needs to go to another meeting. Mayor Mitchum requested a motion to move from the workshop back to the regular meeting. Councilwoman Bennington so moved. Councilmen Gold, Fish, and Hatfield simultaneously seconded the motion. Motion CARRIED 5-0. Mayor Mitchum suggested they select a committee who will do the leg work and will make recommendations to Council. Mr. Powers explained the committee is usually the Engineer, staff, and member of Council. Councilwoman Bennington moved they establish the Capital Improvements Committee with the Mayor, City Attorney, City Manager, City Engineer, and Utilities Department Head, and to implement this recommendation of the consulting engineers and get this going right away. Mr. Powers suggested it include the Public Works Department Head also. Councilwoman Bennington clarified she meant to say the consulting engineers. Mayor Mitchum suggested when the committee is meeting on certain matters, that Department Head would be appropriate. Councilwoman Benningtonsaid she didnt' see why they'd need Public Works and would leave it as it was. Councilman Hatfield seconded the motion for discussion. Councilman Hatfield then amended the motion to include Public Works when needed and City Engineer when needed because they will be advising Council. Councilwoman Bennington withdrew her motion and Councilman Hatfield withdrew his second. Councilwoman Bennington moved to establish a Capital Improvements Committee consisting of the Mayor, the City Attorney, the Consulting Engineers, the City Engineer when needed, Terry Wadsworth and Public Works when needed, and the City manager. Councilman Hatfield seconded the motion. Motion CARRIED 5-0. Councilwoman Bennington requested they work as a committee and no one or two people going without the committee's authorization. Mayor Mitchum emphasized it would be in unison and not just one person. The Finance Committee was then discussed and Mr. Hartman pointed out it's to get investment banking services. Mayor Mitchum asked if the firm hired would provide financial advisory capacity and Mr. Hartman replied yes. Mayor Mitchum stated they'd select and bring back a recommendation to City Council for the investment banking services and they identified projects and costs and have to decide how to fund that. Councilwoman Bennington moved they establish a Finance Committee made up of the Mayor, City Attorney, City Manager, and Consulting Engineers to establish the proposals for investment banking services for the City to underwrite the bond and the financing of the CIP. Mayor Mitchum stated it will be brought to Council with a recommendation. Councilman Hatfield asked if they'd use the Finance Director when he comes on and Mayor Mitchum suggested they leave it up to the City Manager. Council- man Hatfield seconded the motion for discussion. Councilman Hatfield asked if there's a problem with putting out bond proposals and Mayor Mitchum replied no. Motion CARRIED 5-0. Mayor Mitchum said they're requesting authorization for Dyer, Riddle, Mills & Precourt to develop contracts for the final design permitting phase of the water facilities improvements, wastewater facilities improvements, and to develop the technical information required for implementing a stormwater utility. Councilwoman Bennington so moved. Councilman Hatfield seconded the motion. Councilman Gold asked if they'll go ahead with this before they get financing arranged. Mr. Hartman pointed out these go with the financing, and the design and permitting takes longer from a scheduling standpoint. He showed the time frames on a colored graph. Councilwoman Bennington asked if this is just finalizing the preliminary design and Mr. Hartman agreed. Motion CARRIED 5-0. -6- Council Special Meeting and Workshop Minutes January 14, 1989 ~ ....", City Attorney Alvarez clarified the membership on the CIP Committee as the Mayor, City Manager, City Attorney, and Consulting Engineers, and ex-officio when needed, Director of Public Works and Utilities and City Engineer; and on the Finance Committee are Mayor, City Manager, City Attorney, Consulting Engineers, and ex-officio, the Finance Director whenever available and on board. City Attorney Alvarez requested authorization to bring back to Council some ordinances that are required to facilitate the financing process which would be amendments to the Code and have those ready to go, and also the stormwater utility will require some ordinances and he'd like to proceed to prepare a draft and bring it back to Council as soon as possible, and authorization to defend this lawsuit about a bathroom door falling on a lady's foot. Councilwoman Bennington pointed out this was not on the agenda, and she then so moved, except for the bathroom door. Councilman Fish seconded the motion. Motion CARRIED 5-0. Mayor Mitchum requested a motion to adjourn. Councilman Hatfield so moved. Councilman Fish seconded the motion. Meeting was adjourned at 11:38 A.M. Minutes submitted by: f!~~ ~~ ~ CO MAN ~ I /.. ,,-1: /~~/;J {{. . COUNCILMAN - ZONE THREE ~" I 'M COUN ILMAN - ZONE FOUR ?~ {Jt4J (/ Lura Sue Koser ATTE$,T: ------ ~___.t.<~:_J' Approved this fr) day of tf}:! . ;;i ~~ . -7- Council Special Meeting and Workshop Minutes January 14, 1989