03-17-2003 - Workshop
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CITY COUNCIL OF EDGEWATER
WORKSHOP
MARCH 17, 2003
6:00 P.M.
COMMUNITY CENTER
MINUTES
CALL TO ORDER
Mayor Schmidt called the Workshop to order at 6:00 p.m. in the
Community Center.
ROLL CALL
Mayor Donald Schmidt
Councilman James Brown
Councilman Myron Hammond
Councilwoman Harriet Rhodes
Councilwoman Judith Lichter
City Manager Kenneth Hooper
City Clerk Susan Wadsworth
Paralegal Robin Matusick
Present
Present
Present
Present
Present
Present
Present
Present
PLEDGE OF ALLEGIANCE
There was a pledge of allegiance to the Flag.
MEE TING PURPOSE
The purpose of the meeting was to talk about the possible
acquisition of the Terra Mar utilities.
Mayor Schmidt asked for an update from City Clerk Wadsworth
regarding what she had set up for the Volusia League of Cities
dinner, which she did at this time.
City Clerk Wadsworth asked for direction on which one of the
buildings the Council would like to hold the dinner at and
direction on how they want her to go about the caterers.
Councilwoman Lichter feels Edgewater Landings would make a good
impression. She doesn't think the Fire-Rescue Association
building will accommodate the crowd they have.
It was the consensus of Council to go with Edgewater Landings.
The Council had a brief discussion regarding some suggestions for
entertainment.
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City Manager Hooper made a presentation regarding the Terra Mar
utilities. (Attached) He spoke of buying a service area that
has an existing boundary of 40+ acres of undeveloped property and
there are two or three individuals that can purchase this
additional acreage and Tim Howard has a contract and wants to put
single family homes adjacent to it. He informed Council of the
financial analysis he completed and it hinging on the fact that
there is new and additional customers to be able to come into the
service area that would make this financially feasible. He then
spoke of the cost being $750,000 being paid over a seven year
period.
City Manager Hooper spoke of what has been done to date to
determine what it would take to make the system work and the cost
being approximately $250,000 to repair the existing system.
City Manager Hooper spoke of hooking the residents up to the City
water and County sewer systems.
City Manager Hooper informed Council of a meeting he and Mr.
Wadsworth had on February 26th with the residents of Terra Mar.
A couple hundred people showed extreme interest. He stated he
proposed to the residents that this would come back to Council
for some discussion as to whether they are going to proceed.
City Manager Hooper then informed Council what would be done if
they decide to proceed.
City Manager Hooper spoke of this being accomplished with an
assessment program by the Terra Mar residents in the amount of
between $1,000 and $2,000.
City Manager Hooper then went over what he feels are advantages
and disadvantages to the City and the residents. He briefly went
over the listing of rates that would be charged. (Attached)
City Manager Hooper asked for direction from Council on what they
want staff to do next before they spend any money.
There was then a question and answer session between Council,
City Manager Hooper and Environmental Services Director Terry
Wadsworth.
Mayor Schmidt asked to hear from the residents.
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Council Workshop
March 17, 2003
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The following citizens spoke:
Carol Suraeon, Indian River Drive
Cheri Barnhart, 108 Ash street
Florence Rose, 98 River Park Boulevard
Edward Haven, 121 Oak street
Claudia Hansen, 149 Indian River Drive
Grace Ruaaerio, 4332 Whiting Way
Evelvn Flvnn, 135 Pine street
Milton Kern, 4374 Whiting Way
steve Caldwell, 152 Indian River Drive
City Manager Hooper agreed to get more information to questions
asked if they proceed to the public hearing. He explained the
assessment is to repair the existing system. He then mentioned
there being some confusion regarding people having to pay
connection fees or impact fees. The recommendation from staff is
to proceed and City Manager Hooper requested the Council direct
them to do that. They will continue and negotiate a Purchase &
Sale Agreement that would be brought back before the Council.
They will then schedule the two public hearings.
It was the consensus of Council to proceed.
ADJOURNMENT
There being no further business to discuss, the Workshop
adjourned at 6:55 p.m.
Minutes submitted by:
Lisa Bloomer
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Council Workshop
March 17, 2003
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WORK SESSION
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ACQUISITION OF TERRA MAR VILLAGE
Background:
Terra Mar Village is a private water and wastewater utility under the jurisdiction of the Public
Service Commission (PSC). The utility provides water and sewer service to approximately 257
existing customers and has the ability to service approximately 250 additional units within the
approved service area. The utility is owned by Frank J. Uddo.
Mr. Uddo approached the City to determine if the City was interested in the purchase of the private
utility. The City has reviewed recent water and sewer rate tariff reports filed with the PSC,
engineering reports performed by Frank Marshall PE for V olusia County and conducted a city-staff
inspection (TV video) of the system. The purchase price is $750,000 to be paid over a seven (7) year
period. The City would pay the purchase price from revenue of the existing 257 customers, impact
fees of new connections and revenue from approximately 200 new customers within the service area.
The purchase price would be paid solely by the customers of Terra Mar and there would be no
subsidy by other City customers or residents.
The existing utility system is divided into two (2) phases. The older section is in need of major
repairs to the wastewater collection and transmission system. The existing two (2) liftstations will
need upgrading to pump to the County's wastewater treatment plant. The cost of repairs is estimated
to be approximately $250,000.
The City's plan for Terra Mar utilities would be the immediate removal of the existing water
treatment plant and existing wastewater treatment plant. The existing potable wells would be
abandoned. The existing customers would be connected to the City's potable water system and the
County's wastewater treatment system.
A meeting of the residents was conducted at the Terra Mar Clubhouse on February 26,2003. The
presentation included a clear description of the expected change in monthly rates, improved water
quality and the possibility of an assessment up to $2,000 per unit to pay for the cost of upgrading and
repairing the existing collection, transmission and distribution system. The residents in attendance
strongly favored having the item placed on the City Council Agenda for further discussion and public
input.
Advantages - The City
1. Expands the City's customer base by adding 257 existing customers and
increases the City's service area to add up to 200 additional customers.
2. Consistent with the City's long-range annexation plans to provide urban
services along US 1 to Aerial Road.
3. Provides a tool to the City to complete long-term joint planning area
agreement with Volusia County.
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( Risks - The City
1. Small chance that revenue projections and expenses are not accurate.
2. New development in southern growth area may be slowed and affected by
poor economy, war or other issues.
3. System is old and may have other problems such as plumbing to homes,
meters are outdated, plumbing fixtures within homes may have problem with
higher water pressure.
Advantages - Terra Mar Residents
1. Lower rates - up to 50% depending on amount of consumption.
2. Better water service and enhanced water quality.
3. Hydrants to be added into service area.
4. Increased resale value of property.
5. Reliable water and sewer system.
Recommendation:
Consensus of City Council to direct staff to complete the negotiation of a draft purchase sale
agreement, schedule required public hearings and develop payment schedule for assessment of
existing owners.
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frlE CITY OF EDcQWATER
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POST OFFICE BOX 100-EDGEWATER, FLORIDA 32132-0100
26, 2003
Dear Terra Mar Resident:
Provided here for your review and consideration are some water
usage'scenarios with the billing amount that would result if the
City of Edgewater were to provide water and sewer service to the
residents of Terra Mar 'and bill at the out-of-City rate for these
services.' The following have the 25% surcharge added in.
Base Rate ~ No Usage
Water
$10.,00
Sewer
$110 94
,Total Minimum Bill
$21. 94
For 2,000 gallons of waterqse
Water
$13.13
Sewer,
$11. 94
Total Bill,
$25.07
Water
$21.38,
Water
$29.63
Water'
$39.38
Water
$49.13
Sewer
$43.74
Total Bill
$ 92.87 '
The average water use in ,the City of Edgewater.isapproximately
5, 000' .gal'lonsper month per single' family home. If you know your
exact usage, you should be able to compute your ex~ctbill from
the following tab~e, be sure to add the 25% surcharge onto the
total:
Water
Base Rate (0)
1000,- 2000
2001 - 6000
6001 - +
$8.00
1. 25/thou
3.30/thou
3.90/thou
Sewer
Base Rate 0 ~ 2000
2001 +
$9.55
3.18/thou