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03-07-1984 - Special/Workshop . ;. Q Q CITY COUNCIL OF EDGEWATER SPECIAL MEETING & WORKSHOP MARCH 7, 1984 MINUTES Mayor David Ledbetter called the Special Meeting and Workshop to order at 1 :OOPM in the Community Center. Mayor Ledbetter stated that the purpose of the meeting was to discuss the Wastewater grant application. ROLL CALL Mayor David Ledbetter Councilman Melbourne Wargo Councilwoman Gigi Bennington Councilman Neil Asting Present Present Present Present Councilman Jack Spencer City Attorney Jose' Alvarez City Clerk Connie Kinsey Police Chief Ed Overman Present Excused Present Excused Also present were Mr. Frank Marshall, part-time City -Engineer, Mr. Alex Kish from the auditing firm of Brent, Millikan and Company, and Mr. Terry Wadsworth, Utilities Super- intendent. Mr. Marshall explained that this is a one-time shot of money provided for small communities and comes from a change in accounting procedure that created an excess of money of about $45,000,000. He said the money is for communities smaller than 35,000 population and each community can apply for up to $3,000,000. in grant money and it's a 55% program where the State pays the 55% and the City must pay the other 45%. He noted that the smaller communities will not be competing against the larger communities. He said he's gone to seminars on this and has prepared an application but needs some input from Council to finalize the application. He stated that if the grant is awarded the planning is done at the community level, such as preparing documents and everything leading up to telling the engineers the type of facilities they need designed. He said when the money is received, they have to certify that they satisfied all the requirements and use the money to design and construct the facilities. He noted that the money is awarded on a priority basis and you can get extra points for such things as eliminating a pollution source, or alleviating a public health hazard such as the septic tank pollutions or an overloaded lift station. He said using innovative technology and resource conservation is also good for extra points and that Edgewater qualifies for some of this on each project. Mr. Marshall said if the grant is awarded, the City has to pay for and complete Step I, facilities planning requirements, which are spelled out as the engineer's assessments and the actual planning itself. He said they then have to document the financial capability of the system and the law reads that there has to be sufficient revenue from the water system so that they're self-supporting of a user charge. He added that New Smyrna Beach did this when they got an EPA grant. He said the City will have to go through a public hearing process to figure out a way to get the other 45% of the money for the projects. Mr. Marshall said he reviewed the needs of Edgewater and came up with four basic categories for the project. Councilman Spencer asked about the timing of this since it's a long term situation except that the initial form has to be in on March 15th and the request for inclusion. Mayor Ledbetter said they can apply for the grant but the basic question is where they're going to use it. Councilman Asting questioned if the total amount was $3,000,000. Mr. Marshall said yes and the City has to pay 45% but the $3,000,000. is the State's share, or.55%. Councilman Asting asked the City's responsibility for input for planning. Mr. Marshall said the City has to bear that cost but relative to the rest of the project, it's not a significant cost, and consists of submitting the schedule and making sure the documentation is taken care of. Councilman Asting asked if they're thinking of the Florida Shores area as a point for pollution and Mr. Marshall said yes, but they may not give them the points as they're the ones who make the determination. Mr. Marshall pointed out that after applying for the grant, they can be notified within sixty days that they've been awarded the grant and they have until April 30, 1985 to accomplish the planning activities and that's the target date. Councilman Asting asked if there's a deadline date for the money to be expended and Mr. Marshall said no, they can use the money over a two or three year period to do the project. o o Councilwoman Bennington asked if they have to have the matching funds immediately or can the City show how they anticipate getting the funds. Mr. Marshall said the money must be in hand or have a definite program for having that money. Councilman Spencer pointed out that if it's a bond issue, they must have had a referendum. Mr. Alex Kish said the Farmer's Home Administration will need a commitment from the State first if the City is anticipating using them. Councilwoman Bennington asked if they'd accept a letter from the State that it's based on getting funding. Mr. Marshall said he thought so and they're aware that smaller communities have problems. Councilman Asting asked if they'd ask for the entire amount of $3,000,000. and Mr. Marshall said he came up with a list of projects that came up to that amount and he had to define a project and assign a cost to it, which is an estimate. Councilwoman Bennington asked if the costs are going to be checked and Mr. Marshall said yes and they'11 lower the cost if they don't agree with our figures. Mr. Kish asked Mr. Marshall if the application is subject to review and Mr. Marshall said no, but the impact study is. Mr. Marshall said he came up with four segments on a project and first is the pilot low pressure sewer system to see how it works in Florida Shores. He pointed out that the cost of gravity systems is extremely high and the LPSS is lower, and he thought the City could get furnds for this. He added that this would be innovative technology and would be eliminating a health hazard. Councilwoman Bennington asked if that was funds for the low pressure sewer system after the pilot and Mr. Marshall said yes and from what he looked at, the pilot study is not to determine feasibility but cost. Councilwoman Bennington pointed out that they would also work out problems to see if they want it. Mr. Marshall said that's why it would be innovative technology. Councilwoman Bennington asked if they are awarded the grant for the low pressure sewer system and then decide that's not the sytem they want, would the funds be available for something else. Mr. Marshall said they'd still have the funds for the rest but he didn't know if they'd let them consider an alternative. Mr. Kish noted that there's an amendment process for some and you have to go through public hearings, but they prefer to give the City the money and just want to be sure they're doing the right thing with the money. Mr. Marshall said the cost for the homes in Florida Shores that they estimate for 1-1-87 would be about $3,600,000. including planning and designing and construction. He said all of the Florida Shores area would be over $3,000,000. so he changed it to three-fourths of Florida Shores, and pointed out that some sections wouldn't be developed for some time. He said that during the planning process, they would determine the priority areas. Councilman Asting asked if the cost of lift stations was included and Mr. Marshall said yes. Mr. Marshall said the second project is a lift station to serve Florida Shores and a development to the west and south. He pointed out that the 201 Plan called for three lift stations in the Edgewater service area between 1986 and 1988, but he didn't feel the need for the ones south and west yet, so he only included one in Florida Shores. Mayor Ledbetter noted that Indian Harbor Estates is in the County. Mr. Marshall said it's not for those people but is halfway between and the 201 Plan didn't look at the City limits when they did the project, and the 201 was done in 1977. He added that if they're going to have growth south or west, they need a rraster lift station and they are rehabilitating one now and that will be at its maximum capacity. Councilwoman Bennington asked if it has to go in before the low pressure sewer system and Mr. Marshall said yes, but it's a separate item but if they did get funds for the lift station and not the low pressure sewer system, they'll change the scope for a smaller area. Mr. Marshall pointed out that the State likes the cities to use the facility plan and they're talking about an 800 GPM lift station which would be the ultimate capacity and the cost is about $685,000. for a lift station and one force main. He said it's larger than any around here. Councilman Spencer asked if that's the total cost and Mr. Marshall said that's for construction, design, and planning. -2- Council Special Meeting & Workshop Minutes March 7, 1984 ~ o o Mr. Marshall said the third segment is improvement to the treatment plant to upgrade it and the flow equalization and grit removal mechanism so they don't wear out the pump. He said FEC will have a large impact on itand they'll need it if they get the lift station. Mayor Ledbetter asked the present capacity and Mr. Marshall said it's about half a million. Mayor Ledbetter asked the total capacity on line if every house in Edgewater was tied into the system and Mr. Wadsworth said the one master lift station is 1.5 GPD. Mayor Ledbetter asked about revamping the master plan and Mr. Wadsworth said they'd have to. Mr. Marshall said they figured going from .5 to capacity would be another three or four years before they have to increase the treat- ment capacity and the lift station won't be pumping that amount for fifteen years. Mayor Ledbetter asked what percentage they're up to at the plant now and Mr. Wadsworth said it's about 72%. Mayor Ledbetter pointed out that if they add another thousand people in the industrial park the plant will be obsolete. Mr. Wadsworth said the plant design is for 10,000 people. Mr. Marshall noted that putting in the flow equalization will increase the life of the plant and they'll be required to make these improvements even if they don't put in the low pressure sewer system or lift station in Florida Shores. Mr. Marshall said the cost for the flow equalization and grit removal is $275,000. and he doesn't think it will increase the capacity of the plant but will help meet the standards needed. Mr. Marshall said the last segment is the infiltration inflow program and noted that D.E.R. always says they need to do something about that. It added that this is scheduled by the 201 Plan also. He said that Briley, Wild had done a study on this but some systems have come on line since then so the study needs to be looked at again, but using the Briley, Wild analysis, he figured $394,000. for the entire project. Councilman Asting asked if they budgeted money for rehabilitation and Mr. Wadsworth said there's about $47,000. in Wastewater to go toward it. Mr. Marshall corrected his estimate to be $433,000. Councilman Asting asked if the $47,000. could be deducted from that figure and Mr. Marshall said yes, it could be part of the City.s 45%. Councilman Asting asked about rehabilitation of lift stations and Mr. Wadsworth said no, they wouldn't be eligible. Mr. Marshall pointed out that using the Utilities labor force and the money, they could buy some necessary equipment. Mayor Ledbetter said some of the water is caused by parking lots in subdivisions and shopping centers which cause a large inflow. Mr. Wadsworth agreed that it's the storm- water in the gutters running in. Councilman Asting asked about the effect of the low pressure sewer system when it replaces present septic tanks. Mr. Wadsworth said the present septic tanks will have to be pumped out and inspected and that's part of the project. Councilman Asting asked if they need a lift station for the pilot program and Mr. Wadsworth said no, and that.s why they put it in the area that they did. Councilman Asting asked if the cost was $92,000. Mr. Wadsworth said a good portion was paid for engineering fees and they have $65,000. to go ahead. Councilman Asting asked if that money could be part of the City's 45%. Mr. Marshall said yes. Mr. Wadsworth said it's a small amount and a one-time budgeted amount. Mr. Marshall said the total for all four segments is $4,900,000. with 55% from the State and 45% from the City. He said it was easy to determine the cost of three but he had to keep it below $3,000,000. Councilwoman Bennington asked if the City will have to do items 2, 3, and 4 and Mr. Marshall said yes. Councilwoman Bennington asked if it would be to their benefit to include the other three if they go for the low pressure sewer system. Mr. Marshall said he could make up the application for anything Council asks, but he considered these four to be the ones he felt they had the most chance of getting money for. He said they may not have another opportunity to obtain funds for the low pressure sewer system. Councilwoman Bennington asked if they should cut down to just half of Florida Shores instead of three-fourths, and Mr. Marshall said they could but he'd suggest they go for as much as they can because he didn't know when funds would be available for this again. -3- Council Special Meeting & Workshop Minutes March 7, 1984 o o Councilwoman Bennington asked how the City could get the matching funds. Mr. Kish said held talked to Farmers' Home and they'd be willing to go 50% and the City is eligible for financing with them but they have to get the statistical things as to cost. He added that they wouldn't issue a commitment until there was something in writing that the City will follow through. Mayor Ledbetter asked the total commit- ments under the loans now on the system. Mr. Kish reviewed the amounts on the 1977-78 series and the A & B bonds. Mayor Ledbetter said this would have to go to a referendum from the people and asked if they'd be locked into if they apply, or could they get out of it if the people decided not to go for it. Mr. Kish said he thought the City could get out of it up to the closing, and they should have the people vote first but there'd be that cost involved. Mr. Marshall said they'd be put on a list and given a priority and if the money isn't used, then they go to the next person on the list. Councilman Spencer said they'd have to re-app1y. Mayor Ledbetter said he didn't see anything wrong with applying for the grant but he didn't want to obligate the people. Mr. Marshall said he thought they could get out of it. Mr. Kish said he didn't think they'd be committed until closing but there could be some costs involved. Councilman Asting asked the time table and how soon they'd be getting the money. Mr. Marshall said it could be sixty to one-hundred and twenty days. Councilman Spencer said the money could come in November. Mr. Marshall said it wouldn't be that soon because they have to satisfy step one by April 30, 1985 and then they receive money for design and construction. He added that when they look at it to see that it meets the requirements, it gives them a period of time to get the FHA loan and would have the commitment from the State. He said they could submit that and then have nine months to a year to get the money. Councilman Asting suggested this be put on with the elections in November. Mr. Marshall agreed and said the only thing they're committed to now is to proceed with the planning activities and that's an expenditure but they'd have to start before the November referendum to do the planning activities. Councilwoman Bennington suggested that everything be ready pending the outcome of the referendum. Mr. Kish pointed out that to get a commitment from the State, they have to show 45% and to go to FHA they need the referendum. Councilman Asting asked if the City could get a provisional commitment from FHA. Mr. Kish said they indicated to him that they will not issue any commitment until it's certain that the City has the funds. Councilwoman Bennington said that perhaps the State could send a letter. Mr. Kish said they should be able to work a contingency in the contract that shows what it's subject to. Councilman Wargo asked about water and meeting its capacity, as if they go into a commitment on sewer and have trouble with water, what could they do. Mr. Marshall said three of these improvements need to be done and they will exceed the density of septic tanks in Florida Shores and stop building there. He added that they'll have to expand the water and wastewater systems as growth continues, but there's money available now for wastewater. He noted that FHA is a possible funding source for the water plant. Mr. Kish said FHA will probably tie in both as long as the utility system shows the strength to pay it back. Mr. Marshall said they could go to referendum and use the portion needed for water and use what's left over for wastewater and both items could be tied together on the same referendum. 'Councilman Asting asked about the capital improvements fund. Mr. Wadsworth said there's about $200,000. there. Councilwoman Bennington said all this is based on growth in Florida Shores and they're also committed to developments in water. Mr. Wadsworth said subdivisions and FEC are involved. Councilwoman Bennington said estimates are that growth in the next ten years will be in the coastal communities and Mr. Marshall agreed. Councilwoman Bennington asked why do~'t~epeople that are forcing them to spend the money pay for it with a special taxing district or higher impact fees. Mr. Marshall agreed that's a funding altern- ative. Councilwoman Bennington pointed out that people in Florida Shores need so much v/ith streets and sewers and she didn't think people already living here should pay for the growth in Florida Shores. Mr. Marshall said they could go to front foot assessments on the low pressure sewer system. Councilman Asting said he'd be opposed to establishing a special tax district in Florida Shores. -4- Council Special Meeting & Workshop Minutes March 7, 1984 o o Councilman Wargo pointed out that if the people are expected to pay $1~800. per unit they should know what it's all about and let them decide and know what the priorities have to be and how they're going to pay for it. He added that communicable diseases could be involved here. Councilwoman Bennington said if a large percentage of people in a new growth area say they aren't going to pay the $1 ~800.~ then the remainder of the City suffers. She added that they need to know how they anticipate paying for it and what benefit it is to them personally. Councilman Wargo said the requirements of DER and EPA have to be stated. Mayor Ledbetter said the people in Florida Shores pay their 10% of the utility tax along with other people and that's pledged to the system within the older part of town, ,and he felt they paid their fair share. Councilman Asting agreed that Florida Shores' tax money has gone into utilities in the older part of Edgewater. Mayor Ledbetter said they could go on revenue sharing or front foot assessment and they'd gone on revenue sharing before. Councilman Wargo pointed out that the people using it pay it off and that's the way it has to be. Councilwoman Bennington asked Mr. Marshall for an estimate of houses for 1987 and Mr. Marshall said it would be about 2~225 residences in Florida Shores with 2.5 people per residence. He added that he thinks that figure might be low. There was a discussion about how these figures were attained. Councilwoman Bennington said they need to look at the fairest way to put the system in without overtaxing any part of the population. Councilman Wargo said they need to point out to the people that they may have to pay a part of this cost. Mr. Marshall said it should be about $500. per residence. Councilman Wargo again pointed out that they need to look at water also. Councilman Asting said he thinks Mr. Marshall should go ahead and apply for the grant money and he felt it covered everything and he was willing to go along with that without making any changes. Mr. Marshall noted that one of the strings attached to the program is having the sewer rates pay for the cost of the operation and maintenance of the system. He said they have to do that before they get any money~ and they are still subsidizing the rates with the utility tax and the collection system would have to pay for 0 & M. Mr. Kish said he wanted to get with Mr. Marshall regarding revenue as FHA looks at user fees and not connections for any bonds. Mayor Ledbetter pointed out that Ordinance 400 is pledged revenue to that bond issue and is locked in and can't be changed to general funds. Mr. Kish said he thought it could be debt service and they want to measure the system to compare it with someone else's and they don't want the City dependent on the revenue as it should be paying for itself. He added that there is a coverage amount to be maintained for thirty-six months or get written consent from the bonding authorities~ and these bonds are not registered. There was a discussion on the thirty-six month requirement and how the use of utility money in the general fund would lower the tax base. Councilman Spencer said he felt the user fee should cover the particular service as tt's more fair to do it that way and people can conserve their water and control their own costs. Mr. Kish said it would take three years to free this up and he needs further information from the State if development fees fall into this and if so~ the system would pay for its cost. He said the ability to pay debt is good but the calculation made excluded the utility service tax. Mr. Marshall said he'd check this out. Mr. Kish said they take all statements of revenue coming in and that can be used to pay debt service and operating expenses are exclusive of depreciation but they have ample funds to cover debt service. Mr. Marshall said he'd research this but he felt the connection fees couldn't be used. Mr. Kish said he felt they could still answer it yes~ even if not. Councilman Wargo said he felt the development fees are still too cheap here. Mr. Kish pointed out that rates change and are adjusted quarterly for FHA and they're now at 9.50 but as of'March 31st, they'll be adjusted again. He added that's an alternative source and they have a good chance of getting it. Councilman Spencer said the State has a bond program and there's a private bond market. He said if it's $1 ~800. per house and they ask the users to pay $500. of that, the City could pay a percentage and he felt the system will be beneficial. Mr. Kish said they can take the entire amount and tell property owners that they will participate in the remaining 45% and they could then take the special assessments and payoff the bonds rather than running them the entire time. Councilman Spencer asked if the City is in a good position financially and Mr. Kish said yes. -5- Council Special Meeting & Workshop Minutes March 7, 1984 .- o o Councilman Asting pointed out that some parts of Edgewater still don't have sewers and this is for Florida Shores. Mr. Marshall agreed but said he didn't have enough time to identify all areas. He added that gravity systems are usually less expensive than low pressure sewer systems but in Florida Shores they have a drainage system with a high water table and an extensive area. Councilman Asting asked if they want to apply any of that money to sewers in old Edgewater and Mr. Marshall said he doesn't have enough information. Councilman Spencer asked if this is one application with four parts and Mr. Marshall said yes. Councilwoman Bennington questioned how this would be affected if Proposition One passes. Mr. Kish said they'll have to go to the voters. Councilman Wargo pointed out that they'll have to anyway. Councilwoman Bennington said they'll have several items on the November election and putting these items on the same ballot will tend to confuse people. Mr. Kish said he feels Proposition One will end up in the courts, and added that it will provide for meeting any legal debt service requirements. Mayor Ledbetter said that this could be a referendum on the primary in Edgewater. Mr. Kish pointed out that the question is if the people want the improvement and if they're willing to pay the $400. or $500. for this, and they have to keep in mind that 55% is being funded from a grant. Mayor Ledbetter noted that before when the referendum was held, only property owners voted and now everybody registered can vote. Councilman Spencer said that some people have already had septic tank problems but others feel differently. Mr. Marshall said he could talk to groups when it comes down to the voting so they can be fully informed. Councilwoman Bennington agreed that's a good idea as wrong information is a problem. City Clerk Kinsey suggested a flyer to get the general information out. Councilman Asting moved to authorize Frank Marshall, the City Engineer, to go ahead with the preparation of the grant application and submit it. Councilwoman Bennington said based on the information he gave them, she seconded the motion. Motion CARRIED 5-0. Councilman Spencer thanked Frank Marshall and Terry Wadsworth for the time and effort spent on this project. He added that there are 355 cities eligible to apply so there's no assurance that they'll get it. Councilman Asting suggested calling State represent- atives. Mr. Marshall agreed that wouldn't hurt the project. Councilman Asting suggested that citizens write letters also. There was a short discussion between Mr. Kish and Councilman Spencer regarding annexa- tion and how it would affect the tax base for the City. Councilman Spencer moved to adjourn. Councilman Asting and Councilwoman Bennington seconded simultaneously. Meeting was adjourned at 2:44 PM. Minutes submitted by: ~ C UN~I~ ~N - ZONE TWO ln4910~ COUNCILMA~./ ZONE TH EE ~~~~,v COUNCI~ AN - ZON FOUR ~ V ATTEST: - -~~~ CIIY CLERK APpr~ thi s /? -L?- day of q)jft~~ M YOR v 'V -6- Council Special Meeting & Workshop Minutes March 7, 1984