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05-05-1974 - Workshop .. . .'w' "WI Workshop Meetina of the City of Edgewater Requ1ar Meeting Held tl: a y 5, 1 9 7 4 The Pegu1ar Meeting of the Workshop of the City of Edgewater, Florida was called to order May 5, 1974 by Mayor David C. Severance. BILLS & ACCOUNTS GENERAL FUND City of Edgewater Southern Bell Florida Power & Light E d 9 e w ate r t~ 0 tor s Ci ty Auto Mac Smith Penta1s New Smyrna Builders New Smyrna Commercial Printers Dvli 0 h tis Petty Cash Industrai1 Marine J 0 s e p hE. t~ e a v e r Lamar Uniforms Magnolia Motor Com~any Co. Florida Fire and Safety South Atlantic Fire Eauioment 11 at t y · s T ran s m i s s ion ' , Fobert H. Christy Deland Chrysler Public Gas /lce Hard\'l/are Goodyear Service Store Smyrna Jluto D~versified Electronics Florida Contrete Pipe L a \'J ton B rot her s vI i 11 i am s He 1 din 9 Industrial Office Outfitters Gasoline Alley Standard Oil Southern Paint William Ricke1man John J, Ziers Xerox Corp. 40.60 279.58 1,368.22 38.76 231.66 1 G .32 132.87 37.75 3.11 1::;.96 60.50 325.24 886.66 52.46 9.90 52.40 425.66 14.40 20.00 21 . 12 14.58 157.13 10.60 608.09 9.66 316.25 91 .30 99.44 68.30 2,666.94 15.79 16.83 53.84 111.12 -----g, 273:04 \.! ATE R & S E \.) E R City of Edgewater Petty Cash Southern Bell Florida Power & Liaht City Auto . Public Gas Hall Machine Works Dobbs Electric Motors New Smyrna Commercial Printers Smokey's Automotive Executive Rent A Car Economy Electric 15.90 15.69 42.84 803.59 1. 68 17 . 16 41. 90 165.00 93.52 21.22 239.80 156.55 -1- '-' ......, vJicks Lumber Orlando Armature Ace Hardware Kurt & Mathison Chemical Equipment Service Badger t~eter Economy Electric Rllstate Fipe New Smyrna Plumbing Hughes Supply Economy Electric Sav on Utitity Briley Wild and Assoc. 54.23 32.40 10.46 48.27 58.50 307.52 265.00 3,527.32 32.74- 607.51 1,165.00 56.03 230.67 Mayor Severance stated that he would turn the floor over to Mr. Fernandez from Briley Wild and Assoc. Mr. Fernandez stated that there are a couple of modifications that need to 81 made at the water plant now, in order to impoove the ~Hliit~IRix quaninity of water and the workability of the palnt. He stated that we need to get some replacement parts for a voltage transmitter and receiving portions of this meter, approximately $500.00. He stated that the City has a Bryant pump that has been sitting out there for quite some period.B You need someone to come in and make the installation. This will reduce the time it takes to back wash or clean your softeners and will increase the amount of water. The final thing that we need right now on the Water Plant is to get an electrical check made. He stated that the plant was designed so that two wells would be on, and there is only one well on. The City needs to have Economy Electric come back in and check and see if this is occuring and if it is they can adjust the relay so that the plant will function as designed. He stated that if we have another pump, it will increase the loading on your two softoners, you can put more water throuqh each softener than you are right now and they are designed to carry more water. With additional raw water being delivered to " the plant, you can push it through the filter staff and you will get more water through the system. Another storage tank would be desirable. Mr. Fernandez stated that the softener is suppose to be backwashed every 85,000 gallons, to reduce the number of times that you have to backwash each day, it will run 105,000 to 110,000 gallons. He stated that there is a decision that needs to be as to how the City plans to go as far as increasing the water capasity of the City. There are two alturnatives , the first one would be to construct a one and a half MGD water plant with a . spiroactor and valveless filters, water softener and rapid sand filters, the cost of this would be between $180,000 to $200,000. This would improve your water quality and take the solids out of it and give you new equipment and replace most of your 17 year old equipment and it complies with the State Board of Health requirements. The other alternative is to go with the old plan, the old plan can be brought to a 1.1 MGB Capasity, it can not be expanded beyond that without adding tilters and softeners. You would need to bring in WI a new~water line at a cost of $100,000 and plan piping modifications and rentivation of electrical equipment. . - J". '-' ~ If we built a brand new plant, the cost per thousand gallons would be $133.00 vs the rentivation of the old plant including a new raw water line, would be $169.00 per thousand gallons. The new plant give you the add~d advantage of having filtration and all new equipment. This should be the City Commissions decision. The expansion t~B of the" old plant, the water qualitj will be the same as it wa~ a year ago. He stated that he would w ~resent this in a written proposal. Mayor Severance stated that his personal opinion was to lean towards the new plant. He then gave the floor to Mr. Cunninqham from May, 7ima and Co. Mr. Cunninoham1s presentation is attached to th.se minutes. The Council and Mr. Cunnin9ham discussed this proposal in full. Mayor Severance stated that Monday night the Council will probably make a motion for a new water plant. CO f'1 f1 U f I I CAT ION S The City Clerk read a letter from First Fetleral Savings and Loan reqyestina permission to place a temporaty structure B in Edgewater, to be used as a branch office for the association. The City Clerk teen read a letter from the Zonino and Planning Board recommendin9 that the Council grant the First Federal Savinos And Loan permission for thQS structure. Mayor Severance stated that this letter will be put on the agenda for appropriate action Monday Nioht at the Council Meetino. There will be either a motion to accept or reject this. The City Clerk read a letter from the Zoning and Planning Board requesting that the City not require the architect stamp on residential house plans. They also recommend that all commercial and industrial building plans for construction in the City be submitted to the Building Code Board, these should be drawh on a scale of not less than 1/4 inch eouals 1 foot., and specifications be incluaed with the plans. City Attorney Weaver stated that we should pass this letter on to the County Inspectors Mayor Severance stated that we should put this onthe adenda. Counci1aman Bevel stated that the Council passed a motion using the word moritorium. He stated that he feels that we made a poor choice of wores there. r~ayor Severance stated that we us-ed the word moritorium, our intent is not actually a moritorium, but to set up steps that they would have to do to 00 through the Zonina & Plannina Board toY certify that where they want to put this commercial - and industrial building is in a commercial, industrial zoned area. The City Clerk stated that the estimate for new drapes for the Community Center comes to $269.30. Mayor Severance instructed the City Clerk to go ahead and tell Mr. Garlick to 00 ahead and initiate this, and to get estimates on the staae curtains. The City Clerk read a letter from the Volusia League of Municipalites stating that there will be a meeting in Deland. They are askinq how many will attend. -3- '- .. 'wf. ..., Mayor Severance stated that this letter is just a metter of information, and that ti it doesn't need to be rut on the aaenda. City Clerk stated that the ari con~itioner is worn out in the youth room in the Community Center. Mayor Severance stated that we will have Brown's Arr Conditioning check this. The City Clerk stated that the Council wantdd to know how much it would cost to have liohts run cut to the City Dump. She said that it would take two poles ilayor Severance stated that he went to a meeting, the ElOld discussion came came in reqard to a south east Volusia landfill.There is a section of land that the County is looking at that Edqe\'/oter could use. The Council dlilscussed this matter in full. Mayor Severance stated that he will give the emblem and slogan to the City Clerk. If any of the Councilmen can find an artist that will give us a rough out of it. Mayor Severance stated that we want to make the Ctiy aware of weather such as tornadoes. He stated that he has a letter that he is ooina to leave in each of the Councilmens d~aws. On the 25th" of each month there will be a drill to allert the City as to how the alarm will sound. Mayor Severance stated that he went around looking at street li~hts locations. He will get a map and mark them and give a copy to each councilman. This Meetina was adjourned by Mayor David C. Severanc. '-" 1. ., CI1Y OF EDGEWATER, FLORIDA WATER JlND SEWER RATE ADJUSll'ENTS ."",., '-' ....", flag. zima & Co. CERTIFIED PUBLIC ACCOUNTANTS To the Mayor and City Council City of Edgewater, Florida WATER AND SEWER REPORT Pursuant to your request, we have examined the customers' accounts, the revenues and expenditures, the rate structure, the ordinance governing the bonds issued, the amount of water produced and the amount of revenue which can be generated from revised rates for the Water and Sewer Department for the City of Edgewater, Florida. Our review of the revenues and expenditures for the Water and Sewer System for the past five years reflect that the operating revenues have not been sufficient to meet operating expenses and debt service requirements. The following tabulation reflects the operating income from the system, the operating expenses, the debt service requirements and the amount which must be supplemented by the utilities service taxes. FISCAL YEAR ENDING 1969 Operating revenues Operating expenses Excess of operating revenues over operating expenses Debt service requirements Operating and debt service deficit Income from utilities service taxes $ 113,659 49,776 $ 63,883 105,292 $ (41,409) 32,322 $ (9,087) 6,828 $ (2.259) Deficit before other income Other income Excess of expenses over revenues "'-" FISCAL YEAR ENDING 1970 Operating revenues Operating expenses Excess of operating revenues over operating expenses Debt service requirements Operating and debt service deficit Income from utilities service taxes Deficit before other income Other income Excess of revenues over expenses FISCAL YEAR ENDING 1971 Operating revenues Operating expenses Excess of operating revenues over operating expenses Debt service requirements Operating and debt service deficit Income from uti1itie~ service taxes Balance before other income Other income Excess of revenues over expenses FISCAL YEAR ENDING 1972 Operating revenues Operating expenses Excess of operating revenues over operating expenses Debt service requirements Operating and debt service deficit Income from utilities service taxes Balance before other income Other income Excess of revenues over expenses ..."" $ 118,898 47,044 $ 71,854 111,947 (40,093) 35,984 (4,109) 8,927 4.818 $ $ $ $ 131,002 54,091 $ 76,911 112,535 (35,624) 40,469 4,845 8,359 13 . 204 $ $ $ $ 136,829 53,100 $ 83,729 110,914 $ (27,185) 45,584 $ 18,399 8,750 $ 27.149 .:L "-" ..."", FISCAL YEAR ENDING 1973 Operating revenues Operating expenses Excess of operating revenues over operating expenses Debt service requirements Operating and debt service deficit Income from utilities service taxes $ 141,258 72,341 $ 68,917 114,820 $ (45,903) 51,264 $ 5,361 5,679 $ 11.040 Balance before other income Other income Excess of revenues over expenses It should be noted that the operating revenues have not been enough at any time to meet the bond ordinance requirements for additional financing. It should further be noted that no provision for depreciation has been applied to the above computations and good business dictates that provisions should be made for the wearing out and for the replacement of such equipment. The present rate for water service for a single unit is $2.50 for a minimum of 3,000 gallons, plus .$.45 for each additional 1,000 gallons, and for a multi-unit the charge is $2.50 for a minimum of 3,000 gallons, plus $.55 for each additional 1,000 gallons. Our examination reflected that the revenues for water service were derived as follows: From single unit services From multi-unit services 84.08 % 15.92 100.00 % From single unit services: GALLONS CONSUMED PERCENTAGE OF REVENUE For consumers using 3,000 gallons or less For consumers using 4,000/5,000 gallons For consumers using 6,000/7,000 gallons For consumers using 8,000/10,000 gallons 30.46 % 18.00 13 .16 13.54 ~ ~ ...." For consumers using 11,000/15,000 gallons For consumers using 16,000/25,000 gallons For consumers using 26,000/34,000 gallons For consumers using 35,000 gallons or over 9.85 6.39 2.19 6.41 100.00 % From multi-unit services: PERCENTAGE OF GALLONS CONSUMED REVENUE For consumers using 3,000 gallons or less 4.67 i. For consumers using 4,000/5,000 gallons' 5.04 For consumers using 6,000/7,000 gallons 3.88 For consumers using 8,000/10,000 gallons 5.71 For consumers using 11,000/15,000 gallons 7.76 For consumers using 16,000/25,000 gallons 11. 52 For consumers using 26,000/34,000 gallons 7.76 For consumers using 35,000 gallons or over 53.66 100.00 % For total services: PERCENTAGE OF GALLONS CONSUMED REVENUE For consumers using 3,000 gallons or less 26.35 i. For consumers using 4,000/5,000 gallons 15.93 For consumers using 6,000/7,000 gallons 11.68 For consumers using 8,000/10,000 gallons 12.29 For consumers using 11,000/15,000 gallons 9.52 For consumers using 16,000/25,000 gallons 7.21 For consumers using 26,000/34,000 gallons 3.08 For consumers using 35,000 gallons or over 13 . 94 100.00 i. Our examination revealed that of the total single unit customers, the per- centage and gallons consumed by number of customers is reflected below: PERCENTAGE OF CUSTONERS GALLONS CONSUMED 3,000 gallons or less 4,000/5,000 gallons 6,000/7,000 gallons 8,000/10,000 gallons 11,000/15,000 gallons 16,000/25,000 gallons 26,000/34,000 gallons 35,000 gallons or over 46.45 i. 21. 82 12.41 10.09 5.59 2.51 .58 .55 100.00 % 4- '-" ..." The percentage and gallons consumed by number of customers for multi-unit service is shown below: PERCENTAGE OF CUSTOMERS GALLONS CONSUMED 3,000 gallons or less 4,000/5,000 gallons 6,000/7,000 gallons 8,000/10,000 gallons 11,000/15,000 gallons 16,000/25,000 gallons 26,000/34,000 gallons 35,000 gallons or over 21. 27 % 17.31 9.99 11.28 11.18 11.08 5.24 12.65 100.00 % The percentage and gallons consumed by number of customers for all services is shown below: PERCENTAGE OF CUSTOMERS GALLONS CONSUMED 3,000 gallons or less 4,000/5,000 gallons ~,000/7,000 gallons 8,000/10,000 gallons 11,000/15,000 gallons 16,000/25,000 gallons 26,000/34,000 gallons 35,000 gallons o~ over 44.94 % 21.55 12.26 10.16 5.92 3.02 .86 1.29 100.00 % The above tabulations reflect that 84.08% of the City's revenue for water and , \ sewer service is derived from single unit service customers and 15.92% from multi-unit service. Also, the above tabulations reflect that 66.25% of the City's total revenue from the sale of water is derived from customers using 10,000 gallons or less. The above tabulations reflect that 88.91% of the total customers use 10,000 or less gallons of water. Based upon our examination of the records and the rate currently in effect, it is our estimate that the City will derive approximately $72,000 from the sale of water for the fiscal period October 1, 1973 to September 30, 1974. .5 ~ ...." . In order to generate additional revenues and to more evenly distribute the cost of service to the consumers, it is our recommendation that the water rates be adjusted as follows: 1. The minimum or base of 3,000 gallons be adjusted to 2,000 gallons. 2. The minimum charge for 2,000 gallons be $2.75 instead of $2.50 for the 3,000 gallons currently in effect. 3. The charge for each additional 1,000 gallons consumed be $.55 per 1,000 gallons instead of the $.45 and $.55 in effect. The proposed rate structure would reflect the following consumption and charges: 2,000 gallon minimum $ 2.75 3,000 gallons $ 3.30 4,000 gallons $ 3.85 5,000 gallons $ 4.40 6,000 gallons $ 4.95 7,000 gallons $ 5.50 8,000 gallons $ 6.05 9,000 gallons $ 6.60 10,000 gallons $ 7.15 etc. We further recommend that the City adopt a policy of connection fees to the system as has been done by most other municipalities in the State of Florida. It is our recommendation that the City charge a connection fee of $200 per unit for each unit connected to the system. An example of what we are recommending \ for connection fees would be: For a single dwelling unit Duplex Triplex 10-unit condominium ~telJi - In accordance with the description unit as provided in the Southern Building $ 200.00 $ 400.00 $ 600.00 $2,000.00 of a plumbing Code. In addition to the connection fee, we recommend that the City adjust the current tap fees as follows: For: 3/4" tap 1" tap 1 1/4" tap 1 1/2" tap 2" and up tap - Labor and material + $ $ $ $ 20% 125.00 200.00 245.00 350.00 ~ ~ ..." '. . Based upon our review of the records of the City of Edgewater, we estimate that the recommended adjustments and new policies will generate additional water revenue in the approximate amount of $]1.000. The City has several different methods of determining the charges for sewer service at the present time. It is our recommendation that this variety of charges be eliminated and that the sewer charge be based upon the amount of water used by each consumer, and that the sewer charges be 100% of the water charges. If a consumer uses 5,000 gallons of water, his water charges would be $4.40; the consumer would pay the same amount for sewer service. Our examination revealed that some customers were using several thousands of gallons of water, however, the same customer was paying a very small sewer charge. Our recommendation is based on the theory that each customer pay a fair share for service required. We further recommend that the City adopt a policy of a connection charge for sewer service and that the connection charge be $150 per unit. Single dwelling $ 150.00: Duplex $ 300.00 / 10-unit condominium $1,500.00 Motels - Charge in accordance with description of a plumbing unit per the Southern Plumbing Code. Based upon our examination of the records of the City, we estimate the revenues from sewer service at the current rates to be approximately $67,000 for the period 1973/1974. It is our estimate that the revised billing method and the adoption of the connection ch~rge policy will provide the City with approximately $20,000 r _ additional revenues. , \ 7 'W' ...." ~ e. .. ~ The following tabulation reflects the estimated annual revenues for water and sewer services with the revised rates and adopted policies: WATER SERVICES Water sales $ 91 , 600 Connection charges 12,600 Tap fees 7,500 Hydrant rental 5,200 $ 116.900 SEWER SERVICES Sewer charges Connection charges $ 77 , 900 9,000 $ 86.900 It is our recommendation that the person charged with the responsibility of granting permission to connecting consumers determine that connection to the system is reasonable under the City's connection policies. By this we mean that the City will not have t~ incur any unusual cost in providing the service. Should such cost be necessary, it is our recommendation that the consumer bear the cost. We further recommend that the City discontinue the policy of refundables to consumers who bear the cost of line extensions or any unusual cost incurred in connection with the furnishing of water and sewer service. \ ~