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11-02-1987 - Regular c ~ CITY COUNCIL OF EDGEWATER REGULAR MEETING NOVEMBER 2, 1987 MINUTES CALL TO ORDER Mayor Baugh called the meeting to order at 7:00 P.M. in the Community Center. ROLL CALL Mayor Earl Baugh Councilman Louis Rotundo Councilman Russell Prater Councilman Neil Asting Councilman David Mitchum Present Present Present Present Present City Attorney Jose' Alvarez Arrived Later City Clerk Connie Martinez Excused Chief Lawrence Schumaker Present Deputy City Clerk Susan Wadsworth Present INVOCATION, SALUTE TO THE FLAG Rev. Dr. Tee delivered the invocation. There was a salute to the Flag. Mayor Baugh requested a motion to go from the regular Council meeting to the Public Hearing. Councilman Prater so moved. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. PUBLIC HEARINGS - SECOND & FINAL READINGS & ACTION: Ord. 87-0-22 Amending Sect. 715.02, Site Plan Approval, providing for foundation permit, tree removal permit or land clearing permit after site plan approval - Deputy City Clerk Wadsworth read this Ordinance. ORD. 87-0-22 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AMENDING APPENDIX A, ZONING, SECTION 715.02 "SITE PLAN APPROVAL", OF THE CODE OF ORDINANCES OF THE CITY OF EDGEWATER, FLORIDA, BY PROVIDING FOR SITE PLAN APPROVAL PRIOR TO THE ISSUANCE OF A BUILDING PERMIT, A FOUNDATION PERMIT, A TREE REMOVAL PERMIT OR A LAND CLEARING PERMIT; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. Mayor Baugh asked for input from the audience. There were no comments. Ord. 87-0-23 Amending Sect. 602 by eliminating schools as special exceptions in R-l,R-1A,R-1B,R-2,R-2A, and R-2B - Mayor Baugh read this Ordinance. ORD.87-0-23- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AMENDING SECTION 602.0l(c)"R-l SINGLE-FAMILY RESIDENTIAL DISTRICT"; SECTION 602.02(c) "R-1A SINGLE-FAMILY RESIDENTIAL DISTRICT"; SECTION 602.03(c)"R-1B SINGLE-FAMILY RESIDENTIAL DISTRICT"; SECTION 602.04(c)"R-2 SINGLE-FAMILY RESIDENTIAL DISTRICT"; SECTION 602.04.l(c) "R-2A SINGLE-FAMILY RESIDENTIAL DISTRICT"; SECTION 602.04.2(c) "R-2B SINGLE-FAMILY RESIDENTIAL DISTRICT" OF THE CODE OF ORDINANCES OF THE CITY OF EDGEWATER, FLORIDA, BY ELIMINATING SCHOOLS AS A SPECIAL EXCEPTION IN R-l;R-1A; R-1B;R-2;R-2A; AND R-2B; CONTAINING A REPEALER PROVISION; A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. Mayor Baugh asked for input from the audience and there were no comments. Mayor Baugh asked for Council comments and there were none. Ord. 87-0-24 Amending Sect. 715.06, Site Plan Expiration, by providing for one only 6-month extension - Mayor Baugh read this Ordinance. ORD. 87-0-24 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AMENDING APPENDIX A, ZONING, SECTION 715.06, "SITE PLAN EXPIRATION", BY PROVIDING FOR A ONE TIME ONLY SIX (6) MONTH EXTENSION OF A SITE PLAN APPROVAL; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. Mayor Baugh asked for input from the audience and there were no comments. Mayor Baugh then asked for Council comments and there were none. Mayor Baugh requested a motion to go from the Public Hearing back to the regular meeting. Councilman Rotundo so moved. Councilman Prater seconded the motion. Motion CARRIED 5-0. Ord. 87-0-22 - Councilman Asting moved they adopt the Ordinance. Councilman Prater seconded the motion. Motion CARRIED 5-0. Ord. 87-0-23 - Councilman Rotundo moved they adopt Ordinance 87-0-23. Councilman Asting seconded the motion. Motion CARRIED 5-0. Ord. 87-0-24 - Councilman Prater moved they adopt Ordinance 87-0-24. Councilman Mitchum seconded the motion. Motion CARRIED 5-0. o o APPROVAL OF MINUTES Excerpt of minutes of October 5, 1987 - Mayor Baugh requested Council comments on this excerpt. Councilman Asting referred Council to the two pages of verbatim excerpts. Deputy City Clerk Wadsworth read the verbatim sections regarding the resignation of the Public Works Superintendent from the October 5th and September 21st meetings. Councilman Mitchum stated that Councilman Asting had said that he (Councilman Mitchum) had made a motion not to accept the resignation but his motion was to send the letter. Councilman Asting read a portion of the minutes and noted that he was under the impression that was the motion. Mayor Baugh noted that the resignation was not accepted and the minutes are there and it doesn't seem there is anything more to be done and he'll let it stand at that. Regular Meeting of October 19, 1987 - Councilman Prater moved they approve the minutes of October 19, 1987. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. BILLS AND ACCOUNTS Councilman Rotundo moved they pay these bills. Councilman Prater seconded the motion. Motion CARRIED 5-0. MISCELLANEOUS Irene Mackie, 1602 S. Riverside Dr., stated she feels the copies made for Mr. Klein should be paid for because it involved the time of the City employees and the paper used. She said she would have to pay 25~ a copy if she wanted it and everyone should pay the same. She stated the petition is not part of City business and it was by the citizens of Edgewaterp and she heard 40 copies were made. City Attorney Alvarez arrived at this time, 7:22 P.M. Mayor Baugh agreed that Mr. Klein got a copy of the petition after he'd asked for it and Council agreed he could have it but he also recommends that Mr. Klein be charged the same price as anyone else coming into City Hall to get copies. Councilman Mitchum so moved. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. John Scherz, Egret Court, said he's not against giving people raises, but they should be kept at the present cap and not go further until merit raises of all types are looked at more. He questioned why the Chairman of the Merit Board isn't present when a question comes up regarding the board. Mayor Baugh explained this was discussed at two separate meetings and at the first meeting it was tabled and at the next meeting the Council went five steps with a recommendation that a longevity plan be worked on by the Merit Board. COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES City Council Reports - Mayor Baugh stated they need to appoint a Vice Mayor and an Acting Mayor and he recommended Council appoint Councilman Prater for Vice Mayor. Councilman Asting nominated Councilman Mitchum for Vice Mayor. Councilman Mitchum nominated Councilman Prater for Vice Mayor. Roll call on Councilman Prater for Vice Mayor CARRIED 4-1. Councilman Asting voted NO. Councilman Asting asked Councilman Mitchum why he refused the nomination for Vice Mayor and Councilman Mitchum replied that he did not refuse it but made another recommendation. Councilman Prater nominated Councilman Mitchum for Acting Mayor. There were no other nominations. Roll call on Councilman Mitchum for Acting Mayor CARRIED 4-1. Councilman Asting voted NO. Mayor Baugh requested a motion to have the Attorney draw up the necessary resolution for the appointments. Councilman Prater so moved. Councilman Mitchum seconded the motion. Motion CARRIED 4-1. Councilman Asting voted NO. Mayor Baugh stated he and the City Attorney and Bill Sundstrom discussed the CIP plan at length and he asked them to be here. He noted that it's item 9.B. on the agenda under Unfinished Business but one man has to catch a plane. He asked Council to move the CIP up to this time. There was no objection from Council members. -2- Council Regular Meeting Minutes November 2, 1987 o o UNFINISHED BUSINESS Status of Capital Improvement Program and selection of underwriters - Mr. Bill Sundstrom stated that on October 2nd Council voted to reprioritize the CIP program and abolish the individuals on the programs at that time and bring it back for a fresh start. He said he received a letter from the Mayor indicating the team involved him, working under the direction of the City Attorney, and all responses would be to the Mayor who would. be the sounding board for the Council. He said they had a series of meetings and discussions and reviewed the engineering analysis and their prioritizing analysis as to the elements of the CIP, including those that can be put off and those that should be looked at immediately, with time tables. He reviewed some of the elements. He stated that at the Mayor's request, he was instructed to send a letter out to various investments bankers, banks and financial advisors, and bond counsel. He said he sent out requests for proposals to several maj or Florida banks with experience in that area, and others, but they're not making a recommen- dation on that issue but to determine that the CIP is still an important element of this Council, to prioritize that it must be dealt with now, to look at the financial markets, and to hear the report and recommendation that each Council member received from his firm concerning a financial advisor and potential investment banker for the City. He said his firm delivered to Council a recommendation to select A. G. Edwards & Sons as its financial advisor or investment banker in this transaction. Mr. Sundstrom stated that A. G. Edwards was the only full service organization to respond to the request for proposals. He noted they received a response from Sun Trust Securities, a wholly owned subsidiary of Sun Banks National Association, but they were seeking a position as financial advisor only and their fee would range from $20,000 and up. He said he polled the other institutions by telephone and found that due to the condition of the financial market, they were not interested in quoting. He referred to the recent closing of the bond department of Solomon Brothers, the biggest tax exempt bond dealer in the world. He said they've had recent experience with A. G. Edwards and they have a growing interest in the Florida market. He added that he's very pleased with their creativity and willingness to work to build a niche in this field. Councilman Asting asked how many queries were sent out and Mr. Sundstrom replied five. Councilman Asting asked if that is for investment bankers and Mr. Sundstrom replied yes/investment advisors. Mr. Sundstrom said the traditional method is for the invest- ment banker to provide financial advisory services if they're a full service organi- zation and if they're selected as investment bankers, they'd carry that out. Councilman Asting stated that the two investment bankers that responded were Ehrlich Bober & Co., which has no office in Florida, and A. G. Edwards was the only investment banker that was queried, because the Barnett Bank, the Sun Bank, and Florida National Bank could not participate in serving as underwriters on revenue issues. He asked if he's heard of the Stiegal Act and Mr. Sundstrom replied yes, it's the Glass Diegal Act and it was an Act of Congress. Councilman Asting said it's a Federal Act that prohibits banks such as Barnett, Sun, and Florida National from participating in a bond issue. Mr. Sundstrom replied that's not correct and the following night he has a meeting with Barnett Bank of Fort Myers on two offerings. Councilman Asting pointed out that Mr. Sundstrom did not query any of the big investment bankers that are active in Florida such as Smith Barnery and Merrill Lynch, and he thinks for the benefit of the City, all these investment bankers that participate in Florida bond issues should be contacted and their proposals submitted to Council. He then moved that they have the City Finance Officer, using a list furnished by New Smyrna Beach Utilities Commission and the list of of all the investment bankers and the questions to be asked of the investment bankers, be prepared by the City administration and sent to contact these firms to get their proposals. He stated the queries were very nebulous and they only have one investment banker, A. G. Edwards, out of the 10 queries sent out, or five because the others were underwriting counsel. Councilman Rotundo seconded the motion. Mayor Baugh stated his reasons for not being for it. Councilman Asting stated that the Mayor should not have indicated this until others had an opportunity to speak, and asked why they didn't include firms such as Paine Webber, Merrill Lynch and many others. Mr. Sundstrom replied that after discussions with the City Attorney, he advised they could put together a list of hundreds that can perform this function. Councilman Asting stated they want the best proposal they can possibly get because it will cost the people of Edgewater money. Mr. Sundstrom stated that inquiries were made of people who would work the hardest to put together the best deal for the people. -3- Council Regular Meeting Minutes November 2, 1987 o o UNFINISHED BUSINESS (Continued) Status of Capital Improvement Program and selection of underwriters (Continued) - Mr. Sundstrom stated that about a year ago he was contacted by the City Attorney and Mr. Hartman about how this could be put together, and time is critical now. Councilman Asting stated a few days will make no difference. Mr. Sundstrom replied that the advice given him by the Mayor was that they need to get going. Mayor Baugh read an excerpt of the minutes of the October 1st meeting regarding Councilman Mitchum's motion to go forward with it, and he sent the letter for him to do the inquiry to the best people who can make the best deal with the best financing for the City. Mr. Sundstrom stated he was charged with making a recommendation to Council of who could do the best job for the City in that time frame, and he's worked with all these organizations, or many like them, and it depends on the situation and how hard they're willing to work, and that was why he invited A. G. Edwards here. Councilman Asting pointed out that A. G. Edwards has an office in Florida but the home office is outside the state, and they should get proposals from other' firms that are active in the State of Florida. He added that they should reconstitute the Finance Committee to include the original set up they had before. He referred to the recent Orange City bond issue concluded and the cost for a 2.3 million_ dollar loan exceeded 16% of the issue. Mayor Baugh pointed out that he doesn't know Orange City's figures but they had to buy utilities and we're expanding what we have. Councilman Asting stated that the same team that handled Orange City's bond issue is now handling Edgewater's and the cost was more than double of any bond issue that New Smyrna Beach has had. Councilman Mitchum pointed out that they spent $173,000. over the last two years for a one-man engineering firm of Marshall Engineers and didn't solicit proposals and just gave him the work. The motion to contact other firms to get proposals DID NOT CARRY 2-3. Councilman Mitchum, Mayor Baugh, and Councilman Prater voted NO. Councilman Asting stated that the people of Edgewater are about to be ripped off. Mayor Baugh said maybe the people are going to get a good deal. Councilman Asting stated that he has a copy of the phone bill for September for calls made by the City Attorney to A. G. Edwards and Bill Sundstrom. Mr. Sundstrom called a point of personal privilege and Mayor Baugh agreed. Mr. Sundstrom said he's aware of the source of what's happening and certain members of that team are involved in this team, at Council'spleasure.He stated that was one of the most creative and best jobs ever done for that community and it involved threatened legal action and a condemnation action. He reviewed the various actions and meetings that took place. He noted that they achieved tax exempt investment grade financing through Sun Bank at a rate of interest of less than 6% for a City that has never borrowed tax exempt monies of that nature. He said comparing that action to a refunding is not fair. He pointed out that the City Attorney talked to him so much because he was working on this. He added that any allegation that anything but the best trans- action took place is resented and not true. He noted that the City Council had commended them. Councilman Asting asked if the City Attorney made calls for Orange City and charged them to Edgewater's phone bill. City Attorney Alvarez replied that he's appalled that Councilman Asting would ask that question, and he's arguing the same argument that certain auditors are spreading through Volusia County, and he didn't have the professional courtesy to contact him before spreading these false rumors. He said he has a direct line paid by the City of Orange City to call throughout the country and that's what his secretary uses. He advised Councilman Asting to have proof of what he's talking about. He asked why on May 5th the people he's pushing so hard for sent a letter to a certain banking firm without the approval or the authorization or knowledge of this Council, even before the Finance Committee was put together. Councilman Asting stated that he's not sponsoring anyone and he did this research on his own. City Attorney Alvarez referred to Councilman Asting's prior motion to use the man from New Smyrna who was a Commission Controller. Councilman Asting stated that all the man wanted to do was offer his advice if Council asked for it and he was doing it at no charge. -4- Council Regular Meeting Minutes November 2, 1987 o o UNFINISHED BUSINESS (Continued) Status of Capital Improvement Program and selection of underwriters (Continued) - Councilman Asting asked Mayor Baugh why he was willing to accept the proposal. that Mr. Sundstrom received. Mayor Baugh replied that he spoke with Mr. Sundstrom and both believe it's the best deal they can get for the citizens. There was continued discussion between Mayor Baugh and Councilman Asting regarding contacting investment bankers. Don Ohler, Orange City, stated he dealt with Bill Sundstrom and A. G. Edwards for over a year and he would personally highly recommend them to engage in any endeavor that would help the City financially to achieve the water and sewer program. He said the allegation of charges first came to Orange City from the east side of the county, but the people who made the accusations didn't know everything about what took place, such as the court fees, the condemnation of the water company and various other things. He said they need to know what was in the contract regarding the costs. He referred to the litigation involved with the Orange City Water Company, and it took a firm such as Bill Sundstrom's and A. G. Edwards to achieve what they did. Fred Pauzar, Southeastern Area Director of Investment Banking for A. G. Edwards & Sons, stated that Councilman Asting cast a bad light on his firm without intending to do so. He said the fees made by A. G. Edwards for Orange City with the issuance of 2.3 million dollars in bonds were $11,500, which included selling bonds, management fees, underwriting risk and clearing of all those bond transactions. He added that it's ~ of 1%. He said if there's another deal in this State which was done on a more aggressive basis than that, he'll rebate the difference to the city. Councilman Asting stated he doesn't cast any light on the firm but the point is they should go out and get other proposals and the City should solicit them to see what they can get in costs from them. He added that Mr. Sundstrom's letter only listed two bankers and the other one is not located in Florida so there's only one bid they're going to act on. Mr. Pauzar explained there are two types of offerings of tax exempt bonds and one is negotiated underwriting and the other is a competitive sealed bid offering. He added that if they want the competitve sealed bid, they prepare pre- cisely the financing they want and set a sell date for the bonds and it's firm regard- less of conditions and the lowest bid received will be awarded those bonds, whether they want to go ahead with the transaction or not. He said they also will have to pay as they go for all the financial advisory services rendered and he'd be happy to work on that basis because it's extremely profitable. He said there's confusion between a competitive issue that locks the City into a potentially dangerous guaranteed offering of debt or a negotiator underwriting where a price that is bid is not the factor. He said until the final date when the City signs on the bond purchase agree- ment, they owe nothing. Councilman Asting pointed out that will happen if they get other proposals. Mr. Pauzar said the fee is up to Council to decide because when they come to the bond purchase agreement, Council will decide how they should protect the people, and Council will decide how much to pay them, and if Council doesn't like the fee, they don't sign the bond purchase agreement and it has cost nothing. Mr. Pauzar distributed to Council the initial review or analysis of the situation in the City and what the City proposes to do. Councilman Asting stated that he just wants to see more proposals. Mr. Pauzar said he doesn't object to proposals or the competitive process. He stated that there's a time table in the report that shows the commencing of the process of financing this week due to some changes in the tax laws that, if not acted on, could cost the City $65,000. He reviewed the Internal Revenue Code of 1986 which says that if the city goes to borrow money, they must expend all the money within six months, or spend 95% of it in a year, or issue five million dollars or less in a given calendar year of tax exempt debt. He noted then anything that is made from investing the proceeds of the bond offering in higher yielding investments has to be given back to the federal treasury. Mr. Pauzar suggested that the City go ahead with a five million dollar financing to be completed by the close of 1987. He noted there's a time table in section 3 which indicates how to get the financing completed. He pointed out this could be too agressive and cannot be met. He noted they will borrow at one rate and reinvest it and keep the difference until the money is actually used for the project. -5- Council Regular Meeting Minutes November 2, 1987 o o UNFINISHED BUSINESS (Continued) - Status of Capital Improvement Program and selection of underwriters (Continued) - Mr. Pauzar stated that the alternative is to do all the financing in a given calendar year to make a lot of money for the underwriters up front on that first bond issue and have to spend all of it in the six months. He pointed out that if a city wants to spend all that money in six months on a capital improvement project, it's very likely to make a wrong turn. He suggested a first phase financing be done and they'll deliver a product by the end of December, and if Council isn't satisfied with the product, they don't sign it. He added that he'll accept the risk. Mr. Pauzar stated they're the 6th largest firm in the country and have been in this state for 30 years. He said they have a regional public finance office in Florida and they have seven people committed to pricing and gauging the market on tax exempt municipal bonds in this state. He added that they're the largest syndicator of indepen- dent tax exempt municipal bond trust units of municipal funds in the U.S. and they were the strongest retailer of AAA municipal bonds in Florida last year. He stated they'll guarantee Council will be satisfied with the product, or if not, Council can walk away from it. Councilman Asting again stated that he wants to go out for proposals from other bankers. Mr. Pauzar stated they won't be able to take advantage of the arbitrage rebate exemption which they estimate to be $65,000, and that will be the cost for the delay. Mayor Baugh requested some background on their company. Mr. Pauzar reviewed the recent pullout of firms. He stated that over the last 100 years they have never borrowed money and have operated from equity capital, which is over one quarter of a million dollars now. He said if the City agrees to pay a reasonable fee and sign an agreement, they'll give the City a cashier's check for the entire issue and go out and sell the bonds and take the risk. He added that Bill Sundstrom has been general counsel for other projects and they've worked with Dyer, Riddle, Mills and Precourt. He said he takes responsibility for the calls from the City Attorney who may not have been at his phone. Mr. Pauzar stated they should hire a firm on a happy, they fire them and have no obligation. is not the only firm offering those services. Mr. Pauzar thanked Council for their time and said if selected, they'll do everything they can. contingency basis and if Council isn't Councilman Asting pointed out theirs Gerry Hartman, Dyer, Riddle, Mills & Precourt, stated that Council always tries to maintain the lowest cost for the citizens. He reviewed the 1985 situation and what was done about the THM level. He pointed out that they reinvested the money from the low interest short term loan made and the $17,000 or $18,000 is providing a large percentage of the fees charged in designing. He reviewed his prior experience with bond issues since 1981, and the problems with septic tank leakage, bacteria contamin- aton and viruses. He noted that they submitted to DER for grant monies to help and they're willing to do something. He said the schedule put together by A. G. Edwards is very ambitious and it should have been started 2 or 3 weeks ago. He pointed out that refinancing under that 5 million dollars makes $200,000, $300,000, or $400,000 in the 3 to 4 years which will be when they build. He added that he's an independent engineer and he feels the City may be missing an opportunity to gain a return on the tax free financing this year. He added that public health, safety and welfare is very important. Councilman Asting pointed out that the bond issue will have to go on a ballot because Councilman Mitchum made a motion that it be done. He added that he feels the finance team they had before should be reconstituted and they should participate in the handling of the bond issue. Mayor Baugh asked Mr. Hartman about the New Smyrna Beach bond issues. Mr. Hartman replied that he certified one and reviewed the other. Mayor Baugh asked if he feels A. G. Edwards set up a plan that's better or comparable to theirs. Mr. Hartman replied their track record is excellent, and he reviewed the details of the New Smyrna Beach project. Burke Saunders, A. G. Edwards, stated they're cognizant of the needs to have the financing done in a timely fashion, and they know the needs for flexibility in the program. He added that the bond documents and finance program will be one that will not cause problems in the future and they won't have to refinance. He said they know the need to keep them informed at each step in the program and they'll come to Council to ask for direction. Councilman Asting asked if he works for A. G. Edwards and Mr. Saunders replied that he's Vice-President of A. G. Edwards. -6- Council Regular Meeting Minutes November 2, 1987 . ; o o UNFINISHED BUSINESS (Continued) - Status of Capital Improvement Program and selection of underwriters (Continued) - Councilman Asting stated that the people of Edgewater should be aware that two thirds of the Council voted not to solicit other proposals. Mayor Baugh explained the reason was they feel they have one of the finest groups available for the financing. Mayor Baugh stated they heard from A. G. Edwards, the engineer, and Bill Sundstrom that this should be the company the City will work with in the bonding project. He asked Council's pleasure to accept or reject A. G. Edwards as the underwriters for the CIP. Councilman Asting stated they don't have to reject them, but get other proposals. Councilman Mitchum asked the Mayor s recommendation. Mayor Baugh recommended they take A. G. Edwards as the underwriters for the CIP and investment. He added that the citizens are in need because they can't flush toilets on a rainy day, and they can provide a service the people will be happy with and it means money. Councilman Mitchum moved they accept A. G. Edwards as the underwriters. Councilman Prater seconded the motion. Motion CARRIED 3-2. Councilmen Asting and Rotundo voted NO. COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued from page 2) City Attorney Reports - Mayor Baugh noted that regarding the road impact fee, the other three cities involved have gone on to appeal this. City Attorney Alvarez said he received notice of appeal signed by the Attorney for Ormond Beach, and the council in Orange City voted unanimously to appeal and he's requesting assistance. Mayor Baugh recommended the City of Edgewater still fight the County on the road impact fees and they go along with the other three cities to appeal. Councilman Rotundo so moved. Councilman Mitchum seconded the motion. Motion CARRIED 5-0. City Clerk Reports - Deputy City Clerk Wadsworth read the October 23rd memo from City Clerk/Administrator Martinez which stated a motion would be necessary to authorize payment of $100 per month to Civil Defense Director Vic Vandergrifft. Councilman Prater moved they grant this request. Councilman Asting seconded the motion. Motion CARRIED 5-0. Recreation Director/Buildings & Grounds Maintenance Superintendent's recommendation on bids for two tennis courts at Roberts Road Park - Deputy City Clerk Wadsworth read the October 27th memo from David Garrett, recommending the bid be accepted from Varsity Courts, Inc. in the amount of $59,875.00. She noted that there were 19 bids sent out and 7 came back and this is the low bid. Councilman Asting moved they accept the recommendation of the Parks and Recreation Director and award the bid to the lowest bidder. Councilman Rotundo seconded the motion. Councilman Prater asked if this is a budgeted item and if it's from impact fees. Mayor Baugh replied right. Motion CARRIED 5-0. Councilman Mitchum asked the status of the artifacts. Jack Corder, Assistant Recreation Director/Buildings & Grounds Maintenance Superintendent, stated they called the State Archives, and they investigated and said the findings were very slim and are allover the state so they gave permission to proceed and a letter is forthcoming. Mayor Baugh added that City Clerk Martinez said they were about 500 years old but are not in a . condition to use them and they said to continue with the park. He noted that the location will be placed on the historical map. Councilman Asting requested a 5-minute recess. Mayor Baugh recessed the meeting at 8:38 P.M. Mayor Baugh called the meeting back to order at 8:48 P.M. Administrative Fire Chief's request to go out for bids for 15 sets of bunker gear - Mike Cunningham, 3430 Vista Palm, Equipment Officer for EVFD, stated they received an offer on this gear of $398 a set. Mayor Baugh asked if there's a guarantee and Mr. Cunningham replied it's according to use. Mayor Baugh explained the reason for the request for 15 sets compared to the previous request for 30 sets. Mr. Cunningham agreed the new sets will be used for the main responders, and noted there are 37 members now. Mayor Baugh noted they have to go out for bids for this. Councilman Asting moved to grant the request to go out for bids for 15 sets of fire fighting equipment. Councilman Prater seconded the motion. Motion CARRIED 5-0. -7- Council Regular Meeting Minutes November 2, 1987 o o COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) - Merit Board's recommendation to extend merit scale through alphabet and to award increase to those off scale if evaluation warranted it re: effective date - Mayor Baugh stated that at the last meeting they increased by five steps and asked that the Merit Board work on the longevity plan. He noted they'd recommended October 1st for the effective date. Councilman Prater moved they accept the recommendation of October 1, 1987. Councilman Asting seconded the motion. Motion CARRIED 5-0. Planning and Zoning Board - recommendation to annex five parcels abutting South Ridgewood Avenue - Deputy City Clerk Wadsworth read the October 15th memo from the Planning and Zoning Board which recommended annexation of five parcels. Attorney Rick Karl, 150 Magnolia, Daytona Beach, stated he represents American Pioneer Savings Bank which is one of the properties requesting annexation. City Attorney Alvarez pointed out this is just annexation and there will be no changes in zoning and they won't have to get involved with the Growth Management Commission. Attorney Karl stated that they don't need rezoning. City Attorney Alvarez asked if he sees any problems with contiguity and compactness and Attorney Karl replied no. Councilman Prater moved they accept the Planning and Zoning Board's recommendation. Councilman Rotundo seconded the motion. Councilman Mitchum asked if this property is surrounded by City property and Mayor Baugh replied yes and Radnor is on the North, and it's a part of what's adjacent to City property. City Attorney Alvarez agreed. Councilman Mitchum asked about Ugly Duckling and Mayor Baugh replied it's not in the City. Councilman Mitchum asked if the annexation was a unanimous vote and Mayor Baugh replied yes. Councilman Mitchum asked if all members were present. City Attorney Alvarez replied that Mr. Klein was absent. Motion CARRIED 4-1. Councilman Mitchum voted NO. Attorney Karl asked if the ordinance first reading will be at the next meeting and City Attorney Alvarez replied that's usually how it's done. Mayor Baugh requested they authorize the Attorney to draw up the necessary papers for this request on annexation. Councilman Prater so moved. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. Mayor Baugh then requested they move item 8.B. regarding the award of bid up to this point. No Council member expressed an objection. ORDINANCES AND RESOLUTIONS Res. 87-R-46 Award of bid for Library construction - Mayor Baugh read this Resolution. RES. 87-R-46 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AUTHORIZING THE BID AWARD OF THE CONSTRUCTION OF THE LIBRARY TO THE SWAIN COMPANY, AS PER THE RECOMMENDATION OF DANA SMITH, THE PROJECT'S ARCHITECT AND AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXECUTE AN AGREEMENT WITH "THE SWAIN COMPANY"; ACCORDINGLY, THIS RESOLUTION IS SUBJECT TO THE CITY'S RECEIVING THE SIGNED "PUBLIC LIBRARY CONSTRUCTION AGREEMENT" FROM TALLAHASSEE; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND MAKING THIS RESOLUTION EFFECTIVE NOVEMBER 22, 1987 OR UPON THE RECEIPT OF THE SIGNED "PUBLIC LIBRARY CONSTRUCTION AGREEMENT" FROM TALLAHASSEE, WHICHEVER OCCURS FIRST. He stated that the Agreement was received on Thursday. Councilman Prater moved they adopt Resolution 87-R-46. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) - Planning and Zoning Board - request to have all ordinances or resolutions recommended by Board returned to them for review and approval prior to submittal to Council - Coucnilman Asting moved they accept the recommendation of the Planning and Zoning Board. Councilman Prater seconded the motion. Motion CARRIED 5-0. City Attorney Alvarez pointed out there will be a delay with this procedure to get information back to the Council. -8- Council Regular Meeting Minutes November 2, 1987 o o COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) - Building Trades Regulatory and Appeals Board - recommendation to appoint John Ciaffoni - Deputy City Clerk Wadsworth read the memo from the Board recommending the appointment of John Ciaffoni, who was the Board's alternate choice in March of 1987. Councilman Asting moved to appoint John Ciaffoni. Councilman Prater seconded the motion. Motion CARRIED 5-0. Building Trades Regulatory and Appeals Board - recommendation to adopt 1987 National Electrical Code - Councilman Rotundo moved they adopt this Code. Councilman Prater seconded the motion. Motion CARRIED 5-0. COMMUNICATIONS Edgewater Citizens for Needy Baskets' request for donation and permission to allow live mules with smurfmobile - Deputy City Clerk Wadsworth read the October 28th letter from Vic Vandergrifft, President; Barbara Patterson, Secretary; and Rena Green, Treasurer. Mr. Vandergrifft distributed copies of the tentative schedule. Councilman Asting moved they approve the request. Councilman Mitchum seconded the motion. Motion CARRIED 5-0. Ms. Patterson stated that last year they fed 68 families and they hope to have 75 this year, or more. She noted this is the second year. ORDINANCES AND RESOLUTIONS Ord. 87-0-26 Rezoning 416-418 West Park Avenue from R-3 to I-I - Mayor Baugh read this Ordinance. ORD. 87-0-26 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGE- WATER, FLORIDA, ADOPTED PURSUANT TO FLORIDA STATUTE l66.04l(c)(1) AND SECTION 1100. OF THE CODE OF ORDINANCES OF THE CITY OF EDGEWATER, REZONING 416/418 WEST PARK AVENUE FROM R-3 TO I-I, EXCLUDING THE CITY OWNED PROPERTY; DIRECTING THE CITY CLERK TO ADVER- TISE THIS ORDINANCE AS PROVIDED BY LAW; AMENDING THE OFFICIAL MAP OF THE CITY OF EDGEWATER ACCORDINGLY; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND PRO- VIDING FOR AN EFFECTIVE DATE. Councilman Asting moved they approve the Ordinance. Councilman Prater seconded the motion. Motion CARRIED 5-0. Res. 87-R-46 Award of bid for Library construction - This item was handled earlier on the agenda. (See page 8 of these minutes). Res. 87-R-47 Authorizing appropriate officials to execute agreement with Insituform Southeast, Inc. for Flagler Ave. sewer system rehabilitation - Mayor Baugh read this Resolution. RES. 87-R-47 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AUTHORIZING THE APPROPRIATE OFFICIALS OF THE CITY OF EDGEWATER TO EXECUTE AN AGREEMENT WITH "INSITUFORM SOUTHEAST, INC." FOR THE FLAGLER AVENUE SEWER REHABILITATION; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND PROVIDING FOR AN EFFECTIVE DATE. Councilman Prater moved they adopt Resolution 87-R-47. Councilman Asting seconded the motion. Motion CARRIED 5-0. Res. 87-R-48 Authorizing appropriate officials to execute agreement with Griner's/ A-One Pipeline Services, Inc. for South Riverside Drive sewer system rehabilitation - Mayor Baugh read this Resolution. RES. 87-R-48 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AUTHORIZING THE APPROPRIATE OFFICIALS OF THE CITY OF EDGEWATER TO EXECUTE AN AGREEMENT WITH "GRINER'S/A-ONE PIPELINE SERVICES, INC." FOR THE SOUTH RIVERSIDE DRIVE REHABILITATION; REPEALING ALL RESOLUTIONS IN CONFLICT HERE- WITH AND PROVIDING FOR AN EFFECTIVE DATE. Councilman Asting moved they adopt the Resolution. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. Res. 87-R-49 Authorizing appropriate officials to execute agreement with "The Lake Doctors, Inc." for weed control at Queen Palm Lake - Mayor Baugh read this Resolution. RES. 87-R-49 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AUTHORIZING THE APPROPRIATE OFFICIALS OF THE CITY OF EDGEWATER TO EXECUTE AN AGREEMENT WITH "THE LAKE DOCTORS, INC." FOR WEED CONTROL AT QUEEN PALM LAKE; REPEALING ALL RESO- LUTIONS IN CONFLICT HEREWITH AND PROVIDING FOR AN EFFECTIVE DATE. Councilman Asting moved they adopt the Resolution. Councilman Prater seconded the motion. Motion CARRIED 5-0. -9- Council Regular Meeting Minutes November 2, 1987 o o UNFINISHED BUSINESS School Board's reply re: road constructed across the ball field - Mayor Baugh stated they received a letter from the School Board and he asked for Council's comments. He stated there's a road going across the ballfield that he doesn't think should be there. He referred to the meeting he attended with Mr. Nadal, Dave Garrett, and Dr. Smith. He said he understood the road was to go around the end of the ball park and he questioned it when he found out it went across the ball park. He said they referred to a letter from Dave Garrett which verified that the road could cut across the football field and this letter was written the day after he called the School Board to stop the construction of the road across the field . He pointed out they're still having problems with the road and he gets calls that they can't use the soccer field, and asking when it's going to be moved. He stated that it's up to Council if they want to let this letter stand as is or write back to them. Councilman Mitchum said he doesn't think they should let it stand as is and they have a problem with the road going across the soccer field. He added that they need to write back and don't need to let it drop. He pointed out they have a lease and it's for the athletic departments of the children in the City. Mayor Baugh suggested that he and the City Attorney meet with Dr. Smith to discuss the issue of where the road is and come to some conclusion of what can be done. Councilman Mitchum so moved. Councilman Prater seconded the motion. Motion CARRIED 5-0. Mayor Baugh asked Deputy City Clerk Wadsworth to set up a meeting with Dr. Smith in his office in the afternoon. City Attorney Alvarez suggested it be coordinated with his office. Mayor Baugh stated that they'll bring back a reply of what they found out to the next Council meeting. Status of Capital Improvement Program and selection of underwriters - This item was handled earlier on the agenda. (See pages 3,4,5,6 and 7 of these minutes). Referendum/Petition - City Attorney Alvarez stated that Council is mandated by State law to submit the petition to the voters. He said the State Statutes is very clear and once the Council receives the petition, it shall go to the voters, either at the next regular election or a special election. He said the next election is March 6th for the primary election, and the question is how soon Council wants to hold the election. He noted that in 1983 this City received a petition similar to this to do away with the City Manager form of government from the Charter, and now they have the reverse and it's reinstituting provisions of the Charter which gave the Council the power by ordinance to hire a manager and establish the duties of the City Manager and the relationship to Council. He said they have to decide if it's a strong type of City Manager that can hardly be interferred with or one answerable to the Council and thus to the people. He referred to how.people get frustrated with irresponsiveness. He said the petition wants the City Manager to be subject to two-year recall and it will discourage a lot of applicants. He noted it also makes for a lot of political pressures. He noted that the alternatives available would be every two years the people voice their opinion of whether the person should be retained in office, similar to how justices are done, and if the Manager receives a vote not to be retained, it will not be an automatic dismissal but starting a process for a public hearing. He pointed out the basis of the termination must be misfeasance, malfeasance, or non- feasance of office and not at the whim of a political group. He noted that the people will be able to participate in this process. He noted that Council may want to explore something else and he needs Council's input and direction. City Attorney Alvarez said he talked to Katherine Odham and a special election will cost about $4,000. Deputy City Clerk Wadsworth asked if that includes the three extra precincts and City Attorney Alvarez replied yes. City Attorney Alvarez said sharing the cost with the County and State on the March primary will be about $2,000. City Attorney Alvarez stated that Council has discretion to carry out the basic sub- stance requirements of the petition as to whether they have a City Manager and one that is answerable to the people. He pointed out that some elected Mayors who are heads of the government, administratively speaking, can function as a City Manager. Mayor Baugh asked if that would be answerable to Council with input from citizens. City Attorney Alvarez replied that citizen input would come through answering yes to the issue of to be retained or not, and if it's not, then through public hearing will ascertain the problems. Mayor Baugh noted that's what it's been in the past and it's through the Merit Board or a board that has a right to appeal. -10- Council Regular Meeting Minutes November 2, 1987 ~ '.. . . o o UNFINISHED BUSINESS (Continued) - Referendum/Petition (Continued) - City Attorney Alvarez noted that they might politicize the administration more than they want to. He said they might want to isolate the administration from political pressure, but they don't want one to be too independent. Mayor Baugh said his concern is to answer to Council rather than to the citizens, or Council would have no control. City Attorney Alvarez pointed out that Council will be the ultimate judge of whether he retains office or not. He referred to how a charge would get to that point. Mayor Baugh said they need authorization to draw up the papers and decide when they want a special election and to get on the ballot the items they need to put on. City Attorney Alvarez stated that they can go to the voters with two questions, allowing Council to proceed by ordinance as they have in the past, and others agree that has more flexibility for Council, and they can then determine the relationship with the City Manager or City Administrator. He said the other alternative is to go ahead and place the actual Charter change to the voters. Mayor Baugh asked if the Charter can be changed to say they shall or shall not have the City Manager and by ordinance define the duties and responsibilities. City Attorney Alvaez replied that he's inclined to that approach because it provides a lot of flexibility. He read section 9.A. which allowed the appointment or removal of City Manager and which pre- scribed compensation, duties and powers. Mayor Baugh said the ordinance can define that the people will have the right to come forward, and now they have to acceptor reject it as part of the Charter. Councilman Rotundo asked if they have to accept the petition as is now and City Attorney Alvarez replied that State Statutes require it be put to a vote, but they have a choice as to when, within a reasonable time. He added that as long as they don't change the substance, they can have certain procedures to carry out that substance and they aren't amending the petition. Councilman Rotundo said he doesn't agree to review every two years. City Attorney Alvarez clarified that if the voters make a decision, they'll work around it without changing it, but to make it a practical matter. He pointed out that the two parts of the petition are very clear as to whether or not there will be a City Manager and whether or not it will answerable to the people, and if they answer yes, they will have room to maneuver. Mayor Baugh said the question is if they want a special election as soon as possible which will take about 60 days, or wait until March. He noted the people want it as soon as possible. Councilman Mitchum agreed that all indications are they want it as soon as possible. Mayor Baugh noted it will cost more money but that's what the people want. Councilman Rotundo asked if they can wait until the CIP is on the referendum. Councilman Asting agreed they should put both items on the ballot. Mayor Baugh asked if the cost will be changed and City Attorney Alvarez replied it might change the character of the election, and he's heard the more questions asked, the more chances the voters will vote no because it's too overwhelming. He pointed out the CIP questions will be varied. He added it's a good idea if there aren't too many questions, but they shouldn't cloud the issues. He added that the CIP defining will take about 45 days. Councilman Rotundo moved they have a special election March 6th. Councilman Asting seconded the motion. Motion CARRIED 5-0. Mayor Baugh asked if there are any other items they want the City Attorney to draw up. He then asked Council to put on the ballot that the Department Heads in the City of Edgewater must live in the corporate limits. He said a lot of people have called him and he'd like to see that included. Councilman Prater pointed out it's on the petition for City Manager. City Attorney Alvarez reviewed the petition language. Mayor Baugh said he wants it to read that all Department Heads that work in the City live in the corporate limits. Councilman Asting left the meeting briefly. Councilman Prater moved they add that to the ordinance if it's all right with the Attorney, subject to the Attorney's investigating and finding out it's all right to do so. Councilman Mitchum seconded the motion. Councilman Asting returned to the meeting at this time. Motion CARRIED 3-2. Councilmen Asting and Rotundo voted NO. Councilman Asting stated he voted no because they may be passing up a better qualified person that doesn't live in the City. -11- Council Regular Meeting Minutes November 2, 1987 ,. '.. J .. . o Q NEW BUSINESS There was no New Business brought up at this meeting. ADJOURN Mayor Baugh requested a motion to adjourn. Councilman Prater so moved. Councilman Mitchum seconded the motion. Meeting was adjourned at 9:48 P.M. Minutes submitted by: Lura Sue Koser 51-- { ~5 ~ if 1f= ~ -:::> ATTEST: C;:d~ CITY CLERK Approved this 16th day of }w/~~ COUNCIL. - to E TH~/../ ~~l/ 4~ CO CILMAN - ZONE FOUR ~~. November ,1982-. MAY{o=!/- -12- Council Regular Meeting Minutes November 2, 1987