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07-12-1984 - Special I ~ ~ \ u UI CITY COUNCIL OF EDGEWATER SPECIAL MEETING JULY 12, 1984 MINUTES Mayor David Ledbetter called the Special Meeting to order at 2:00 PM in the Community Center~ ROLL CALL Mayor David Ledbetter Councilman Melbourne Wargo Councilwoman Gigi Bennington Councilman Neil Asting Present Present Present Pr~sent Councilman Jack Spencer City Attorney Jose' Alvarez City Clerk Connie Kinsey Excused Excused Present Also present were Mr. Terry Wadsworth, Util ities Superintendent, Mr. Earl Copeland, Publ ic Works Superintendent, and Mr. Mike Tenney, Publ ic Works Supervisor. , Mayor Ledbetter stated the meeting was to review the util ity rates, impact fees, and refuse rates. Mr. Wadsworth said he saw no problem with the existing water rates carrying over to fiscal 1985 as revenues should be sufficient to fund the operations. He noted that he didn't have a report from Conkl in, Porter and Holmes Engineers of an alternative to pursue to expand capacity and treatment but the money they have now from impact fees won't be sufficient to cover expenses that will be incurred. He noted that the last report was done about two years ago by Briley, Wild and they'd recommended then that the City go $650. for water and $689. for sewer on the impact fees. He added that the rates were doubled last year from $200. to $400., and any rate increase with impact fees will not affect current homeowners, only the builders and developers. Mr. Wadsworth recommended that since the the master plan is going to be done by Conkl in, Porter and Holmes that would generate an impact fee schedule perhaps they could go to $500. for water and $500. for sewer for now and when the report is complete, they can evaluate it and make an adjustment if desired. Councilman Asting asked when an increase would be effective and Mr. Wadsworth recommended October 1st for the new fiscal year. He added that the sewer fund will be used up with the pilot system. Councilman Asting asked how that project is progressing and Mr. Wadsworth said they1re waiting for the pumps to arrive from Germany, and then it will only three weeks to a month for the project. There was a discussion as to the availabil ity of spare parts. Councilman Asting questioned why a German-made pump is being used and Mr. Wadsworth stated that it meets the specifications and the majority are made overseas. There was a discussion as to what would be generated in revenues if the fe6were to be raised to $500., based on current growth. Councilwoman Bennington stated that she felt growth should pay for itself and would favor an increase if present homeowners won't be affected. Mr. Wadsworth agreed with her statement and added that the report from Conkl in, Porter and Holmes will provide the justification for this increase. Councilwoman Bennington asked when the study will be ready and Mr. Wadsworth said the master water and sewer plan will be six to eight months and it could be into FY 1986. Mayor Ledbetter asked if the engineering study for the project would override the impact fees and Mr. Wadsworth repl ied that it will be a washout probably. Walter Gross, from the audience, asked the figure for the report so he'd know what it will cost the City. Mr. Wadsworth repl ied that the reports are separate, one is a prel iminary-ofthe water plant and the other is a master water and sewer plan for serving the entire area and improvements in the future. He added that 90 days is for the alternative for the water and sewer but they don't have a cost yet as they're awaiting the City Attorney's review of the amendment. Mr. Gross asked if it's to the City's advantage to annex land as it always seems to raise the rates for those who are already here. Mayor Ledbetter pointed out that anyone outside the City 1 imits is charged 125% on the rates. Mayor Ledbetter questioned why the amendment on the Conkl in, Porter and Holmes agreement stated it would start immediately and Mr. Wadsworth repl ied he thought it was because Council had indicated a will ingness to get a study on water expansion. , Q u Councilwoman Bennington questioned why the recommendation for the raise is only $100. and Mr. Wadsworth repl ied that he wants to see what is proposed by Conkl in, Porter and Holmes as they may not need a significant increase. Mr. Wadsworth noted that some cities charge higher wastewater impact fees than water. There was a discussion about the rates that are now charged and availabil ity to all of Florida Shores Councilman Wargo questioned if a front foot assessment could be charged in addition to~e impact fee and Mayor Ledbetter pointed out that this would be in violation of Ordinance 400 since it was a revenue sharing bond instead of front foot assessment. There was a review of the connection charges and meter deposits. Frank Opal, from the audience, stated that the prime rate will continue to go up and he suggested they charge the maximum impact fee now and forget the master plan as it will cost a fortune. Councilwoman Bennington moved to raise the impact fee for water to $650. and sewer to $689. effective October 1, 1984. Councilman Wargo seconded the motion. Motion CARRIED 4-0. Frank Opal, from the audience, said they raise the impact fees throughout the country to cover costs of schools. Councilwoman Bennington noted that it's a national trend to put impact fees on just about anything. The Council then reviewed the refuse rates. City Clerk Kinsey noted that with the current refuse rates there will be a possible deficit this year of $25,000. She noted that they have transport, trash, and garbage truck problems. Councilwoman Bennington asked what the rate increase was last year and City Clerk Kinsey repl ied it was 50c a month, and in the Fall when people return from the north, they'll need another truck to run the routes all the time. Councilman Asting pointed out that the tractor theylre using now to haul trash is using a gallon of oil a day. Councilman Asting asked how much a 50c raise would generate and City Clerk Kinsey said it would be about $2,200. a month and that wouldnlt cover the deficit. Walter Gross, from the audience, asked about the tractor the City uses now and Mr. Copeland said it's a 1972 model and the City paid $13,000. for it in 1981. Mr. Gross asked the cost to rebuild the engine and Mr. Copeland said he had an estimate of $3,000. but they'll need it for the work for a week or more. John Siburn, from the audience, asked about the 50c reserve equipment fund and City Clerk Kinsey stated that there's about $53,000. in the fund now. Councilman Asting noted that they need a garbage pick up truck and a tractor to haul it to Tomoka. Mr. Gross stated that they don't need a new tractor if it can be rebuilt for $3,000. Councilman Wargo pointed out that the City can1t burn and will have to haul make arrangements for it and they can't keep up with the trash volume now. added that they need a tractor and trailer reserve or alternate for haul ing bage in case the tractor is down and held rather buy than pay rent. trash or He the gar- Mayor Ledbetter asked what modifications have to be made with another tractor for use with this trailer and Mr. Tenney said it's the wet system. Mr. Copeland pointed out that so far this year they've made 171 trips to Tomoka at a price of $13,680., and they haven't seen any slack off this summer 1 ike they usually do. Mr. Gross stated the more people that come into the area, the more it costs people to 1 ive. Councilwoman Bennington asked what alternative they had and City Clerk Kinsey said farming out the garbage and trash. Mayor Ledbetter noted that it was a mess when they tried that before. Mayor Ledbetter suggested they go through the Federal Revenue Sharing money and draw it back out and assign it to purchase of this equipment. -2- Council Special Meeting Minutes July 12, 1984 .. , i~: '-J '-' \ 1 I \ Mr. Tenney pointed out that the price of a new tractor would be about $50,000. and a used tractor would be about $25,000. if one can be located. He noted that it's hard to find a tandem axle tractor, and added that a used tractor will give you 3 to 40 years and a new one will give you 10 years. Councilwoman Bennington said that some of the problems now are from buying used equipment. There was a review of the various amounts in the Federal Revenue Sharing budget that could possibly be reallocated to these purchases. Mayor Ledbetter suggested the City Clerk research the funds in Federal Revenue Sharing and bring it back to Council at a later date. Councilwoman Bennington said she1d 1 ike to see some figures about the amount needed to raise rates to break even on the operations. City Clerk Kinsey said she could have the figures ready for the budget sessions. Mr. Tenney noted that they will need a spare truck for garbage and Mr. Copeland added that disposing of trash also has to be considered. Councilwoman Bennington asked what New Smryna Beach does with their trash and Mr. Copeland replied that they take it to Tomoka. Mr. Copeland stated that the tractor that hauls the refuse to Daytona Beach may break down at any time. Councilman Wargo suggested they go out on bid right away and Councilwoman Bennington suggested bringing this up on Monday. Walter Gross, from the audience, asked if the other unit was on the tractor and trailer or if it had to be put on. Mr. Tenney said it costs $1,500. to $2,000. for the unit and Mr. Copeland added that you buy the unit and specifiy that it be put on. Mr. Gross said the Ford dealer, in Deland has good tractors and Mr. Copeland noted that they have single axle. Councilman Asting moved that between now and Monday night they have Mr. Copeland pre- pare specifications for the equipment needed. Councilwoman Bennington seconded the motion. Motion CARRIED 4-0. Councilwoman Bennington moved to instruct the City Clerk, with Earl Copeland, to get figures together for Council to know the minimum amount they need to break even for operational costs, in conjunction with the budget. Councilman Wargo seconded the motion. Mayor Ledbetter said held 1 ike a report from the City auditors included in with the projected rate increases. John Wharton, from the audience, said they always broke even before and now it isn1t. Mayor Ledbetter asked if commercial accounts are carrying their own weight for the amount of refuse they generate. Mr. Copeland said they pay commercial rates which are higher but there are no big pickups. Mayor Ledbetter stated that people with home occupational 1 icences should pay the same for garbage as any other business in town. Motion CARRIED 4-0. Minutes submitted by: Councilman Asting moved to adjourn the Special Meeting. Councilwoman Bennington seconded the motion. Meeting was adjourned at 3:00 P.M. GlJ t fA~ MAYOR - ~ ~~ U tfw (J C/~4../ c7 tI-0 I Lura Sue Koser .~~ ~-2;; COUNCILMAN - ZONE THRE~ v / "pt:;;.'. ~ COUNC I LMA~ - ZONE [pUR. ,1984. o~ -3- Council Special Meeting Minutes July 12, 1984