05-18-1987 - Regular
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CITY COUNCIL OF EDGEWATER
REGULAR MEETING
MAY 18, 1987
MINUTES
CALL TO ORDER
Mayor Baugh called the regular 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
Present
Present
Present
Present
Councilman David Mitchum
City Attorney Jose' Alvarez
City Clerk Connie Martinez
Chief Lawrence Schumaker
Present
Present
Present
Present
Also present were: Mr. Gerald Hartman and Mr. Ron Ferland of Dyer, Riddle, Mills
& Precourt, Inc.; Mr. Alex Kish of Brent Millikan & Co.; and Mrs. Karen Rickelman,
Finance Officer.
INVOCATION, SALUTE TO THE FLAG
Father James Biegler, St. Paul's Episcopal Church, delivered the invocation.
There was a salute to the Flag.
PROCLAMATIONS - RECIPIENTS OF EXCELLENCE AWARDS - GAYLE GALLETTA, CHARLA "SPARKY"
GRIFFY, AND ROBERT LEE - Mayor Baugh read the proclamations and presented them to
Robert Lee who was in the audience.
APPROVAL OF MINUTES
Special Meeting of March 11, 1987 recessed to April 27, 1987 - Councilman Prater
moved to approve the minutes of March 11, 1987. Councilman Mitchum seconded the
motion. Motion CARRIED 5-0.
Regular Meeting of May 4, 1987 - Councilman Rotundo moved to accept these minutes.
Councilman Asting seconded the motion. Motion CARRIED 5-0.
Mayor Baugh suggested that the one item under #7 on the agenda be brought up to
this point due a lengthy discussion expected on a later item on the agenda.
There were no objections from Council.
COMMUNICATIONS
Kathleen Kane, President, Friends of Pets re: function of organization -
Kathleen Kane, President of Friends of Pets, explained they are not a part of the
Humane Society but they do communicate with them and work well with them. She
stated this is a volunteer, non-profit organization dedicated to reducing the
misery and suffering of unwanted animals by controlling their indiscriminate
breeding. She pointed out that in Edgewater they spayed or neutered 83 cats and
dogs, in New Smyrna Beach there were 63, and Oak Hill had 10, for a total of about
155 animals. She said they have about 3 fund raising activities a year and the
money goes to the vets in town for neutering and spaying. She noted that Edge-
water has 481 licensed dogs. She added that if there's 500 dogs and cats running
loose, they could pay to have somebody for one week for $200 to give the City
almost $2,000 in the coffers. She praised the job Rhonda Sihler is doing and
added that she needs help. She asked Council if they're aware of the organization
and Mayor Baugh replied he's a member. Mrs. Kane said they have 159 members.
Mayor Baugh thanked her for all the work the organization is doing for the City.
BILLS AND ACCOUNTS
Councilman Rotundo moved to pay these bills. Councilman Prater seconded the
motion. Mayor Baugh questioned the number of days requested for the Chief to
attend a conference in Tallahassee, and felt it should be 4 rather than the 5
because registration is on Sunday, and there's no business for that day.
Chief Schumaker explained that his original request had been for 4 nights but
because the conference is held in Pensacola and the distance involved, he'd like
to go up the night before, but if it's a problem he'll still go and will pay it
himself. There was discussion about the distance and amount of time needed to
drive. Motion CARRIED 4-1. Mayor Baugh voted NO.
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MISCELLANEOUS
There was no audience miscellaneous at this meeting.
COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES
City Council Reports - Councilman Asting referred to a letter Council
received regarding land west of the city which was offered and he moved that
the Parks and Recreation Director make an evaluation and give recommendations
as to his findings to Council. Councilman Rotundo seconded the motion.
Councilman Mitchum suggested they leave it alone until they can discuss it
and present it on the agenda. Mayor Baugh explained the motion is to give it
to David Garrett and bring it back to Council. Councilman Prater asked if
that's a part of his job as Parks and Recreation Director. Councilman Asting
said it's being offered as a recreational complex and his evaluation would
be to the Council. Motion CARRIED 4-1. Councilman Mitchum voted NO.
Mayor Baugh stated they received letters from Spruce Creek Elementary students
regarding Mr. and Mrs. Swain. He asked Mr. Pat DiLeva to report on the situation.
Mr. Pat DiLeva, Assistant Code Enforcement Officer/Safety Inspector, reviewed
the past inspections of the property and passed around pictures of how it looked
at his initial inspection. He said the Animal Control Officer was also working
on the case and she went with him to the site. He explained that when he got
a written complaint he notified the Swains on 4-24-87 that they were bothering
the neighbors. He added that he couldn't bring it to the Code Board meeting
because of the time element, and in the interim time, they cleaned up the area.
He said he went with Mr. Fischer and took more pictures of the same area and the
improvement was incredible. He said grass was planted and there was a beautiful
fence around it, and he didn't feel there's a violation of 5-7. He said he
called the complainant and told him the action he had taken, but he didn't send
the Swains a compliance in case they bring something in tomorrow that he'd have
to stop them, but they have an extension until the next Code Board meeting at the
end of the month. He added that they hope to have some property by that time.
He passed around to Council the current pictures he'd taken, and pointed out
that nobody else lives next door to the Swains as the Petersons do. He read
Rhonda Sihler's statement into the record that she found no violation of Ordinance
5-7. Mayor Baugh advised the audience that the Council was not trying to get
rid of anyone and the situation is between the Code Enforcement Officer and
the Swains. He added that the letters ask for money but he doesn't have money to
give them.
City Attorney Reports -
City Attorney Alvarez had no report at this time.
Capital Improvement Project Chairman's report re: decision on funding options -
City Attorney Alvarez stated the C.I.P. team met last Monday and there were two
major developments: 1) the possible options for funding of the project, and
they'll ask Council for a decision in this respect, and 2) a Finance Committee
was formed consisting of Karen Rickelman, Finance Officer; Alex Kish, City
Auditor; Mr. Pagan, Utilities Commission of New Smyrna Beach; Bill Sundstrom,
and himself. Councilman Mitchum asked the purpose of this committee. City
Attorney Alvarez replied that Mr. Kish feels the committee will interview and
vote on the selection of the bond counsel and underwriters. Councilman Mitchum
asked if the committee will select the bond counselor underwriters. Mr. Alex
Kish replied they'd review for qualifications and would trim them down to the
top 3 or 5 firms and then it will be Council's decision to select a financial
advisor, investment banker, underwriter, and bond counsel.
Councilman Mitchum stated he has a problem with Mr. Pagan and he moved that Mr.
Pagan be taken off and our Mayor be put on this committee to represent Council
and they can bring back a recommendation. He pointed out Mr. Pagan is a volunteer
but he has a problem with an outside source giving them a recommendation on a
20 million dollar project. Councilman Prater seconded the motion. Councilman
Rotundo stated they aren't here to select a committee, and Councilman Mitchum
pointed out the committee was already selected and he wants to exclude Mr. Pagan.
Councilman Asting noted that Mr. Pagan has considerable expertise in floating
bonds and is offering his services as an advisor, but Council doesn't have to
take his advice. Motion CARRIED 4-1. Councilman Asting voted NO.
-2- Council Regular Meeting Minutes
May 18, 1987
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COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) -
Capital Improvement Project Chairman's report re: decision on funding options
(Continued) -
Mr. Gerald Hartman, Vice President of Dyer, Riddle, Mills & Precourt, Inc.,
stated they were asked to look at various alternatives for cost recovery of
this C.I.P. and to look at how it could be funded. He said they looked at the
tax aspect and based on a preliminary analysis, they found that a tax increase
does not generate that much money. He recommended Council's consideration of
leaving the tax option available as a secondary or future pledge for additional
public works projects, but not to use it as a primary pledge.
Mr. Hartman said they looked at a $650 assessment in Florida Shores for the
sanitary sewer program and a 41% increase City-wide. He added another approach
would be to recover the entire capital needs back from impact fees and from
assessments without a City-wide rate increase.
Mr. Hartman stated the other option will be about $1,000 as alternative B for the
sewer assessment in Florida Shores and 10% wastewater rate increase. He added
that the water rates will not be impacted.
Mr. Hartman reviewed the booklet "Finance Committee Status Briefing" which he'd
distributed to Council at this meeting. He read the figures in Section 1,
pointing out alternative #1 would be a $650 assessment with a 41% rate increase,
and alternative #2 is a $1,000 assessment with a 10% rate increase. He noted that
the water and sewer rates are among the lowest in the State and one of the lowest
in the area and the 10% rate increase is needed.
Mr. Hartman then reviewed the projected revenues. He said the assumption is that
they do the entire Florida Shores project as one project and go out and start
building. He added that the growth projections are if the straight line extension
continues.
Mr. Hartman said the net capital balance in 1990 is 1.9 million and one year's
principle and interest reserve is there, and the next year's payment is fully
funded at the beginning of the year. He stated the program they investigated will
work, is implementable, and fundable. He noted that possibly by 1996 or 2000 they
may have sufficient funds to look at another type of indebtedness instrument and
perhaps pave streets throughout the City. He pointed out they're just doing the
critical improvements now. He said they won't realize significant revenue until
it's built and service to customers is available.
Mr. Hartman then reviewed the second fold out sheet in the booklet and noted that
due to the fact they get revenues in a different manner, it generates a different
net capital balance.
Mr. Hartman stated that A versus B alternatives are complete and are equal, and
there's no bias to one alternative or another, financially or from a facilities
standpoint.
Mr. Hartman then read from the schedule of Future Activities on Section 4, which
outlined the time frame for the various occurrences. He stated they expect to get
a determination on the grant funds in June or July and these figures are run
without the grant funds so there could be a reduction. He noted that in February,
1988, they will start construction.
Mr. Hartman asked Council to make a selection of the A or B alternative with
assessments of $650 or $988 and give them direction on what approach will be
more applicable. Councilman Mitchum questioned if they should make a decision
at this meeting. Mr. Hartman replied it's for direction to go through the financial
strategy, but it can be changed at the next meeting, and they can do it two ways
as they did it for this meeting.
Councilman Mitchum asked if he has a recommendation and Mr. Hartman replied yes,
a cost recovery situation, and he'd choose the $988 alternative.
-3- Council Regular Meeting Minutes
May 18, 1987
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COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued)
Capital Improvement Project Chairman's report re: decision on funding options
(Continued) -
Councilman Mitchum said he has a problem with just rece~v~ng a report and making
a decision based on looking at a piece of paper. He moved to TABLE this until
the next meeting. Mr. Hartman said he has no problem with that and he can run
these on the computer. Mayor Baugh asked the cost to the City to go on both tracks
and Mr. Hartman replied it will be about $700. Councilman Mitchum suggested they
leave it alone until Council directs them. Councilman Prater seconded the motion.
Motion DID NOT CARRY 2-3. Councilman Rotundo, Councilman Asting, and Mayor Baugh
voted NO.
Mayor Baugh pointed out to Councilman Mitchum that the April 21st report had this
information on page 7 and 8.
Mayor Baugh asked why he prefers one alternative over another and Mr. Hartman
replied the assessment brings back that cost and doesn't spread it City-wide.
He added that he believes in a cure recovery system. He explained the unique utility
system of the City with pledged utility tax which has been paid for years by
residents throughout the City, and the $650 spreads the same burden over the whole
City. He noted the utility taxes projected for 1987 is $408,000 and total sewer
revenue is only $244,000. He pointed out that the utility tax is on telephone and
electricity, etc., and everyone pays that. He stated the cure recovery system
will be the $988.
Mayor Baugh asked what other alternatives are available and Mr. Hartman replied
they looked at taxation and millage, but it didn't work because the millage is
fairly high here and the 10% based on 1986 figures would only support 1 million in
bonds. He added it can be a secondary pledge, but they aren't recommending taxation.
Mayor Baugh asked if there's any other way of dividing this and Mr. Hartman replied
they could spread it between the 10% and 41% and $650 and $1,000. Mayor Baugh
requested they work that out for Council to see the comparisons, and asked the time
frame to do this. Mr. Hartman replied they could do it the following day.
Councilman Mitchum asked the cost and Mr. Hartman replied it's about $150 for
each run.
Councilman Mitchum stated the assessment went from $650 on the original report to
making a choice of $988, and the other report doesn't show this. Mr. Hartman
explained he was asked by Council to look at the impact for both approaches.
He added they aren't making decisions for the City, but are taking their directions
and using their best professional judgement and advising them, plus doing it in
the most cost effective method. He noted the financial institutions won't care
how they do it, but the residents will care. He suggested it could be a blend.
Mayor Baugh again said he'd like to see figures in between and Mr. Hartman asked
if they want a 20, 25, and 30 range. Mayor Baugh agreed. Mr. Ron Ferland of
Dyer, Riddle, Mills & Precourt, Inc., agreed that would be no problem. Mr. Hartman
advised they'd hand deliver it to the City the next day. There were no objections
from Council. Mayor Baugh then requested a motion to authorize the engineers to
bring those figures to consider at a later meeting. Councilman Prater so moved.
Councilman Mitchum seconded the motion. Councilman Mitchum said they're not going
to vote on it and Mayor Baugh agreed. Motion CARRIED 5-0.
Mr. Hartman then referred to page three regarding a citizen information program.
He said they need to fully educate the citizens and need authorization for the City
Manager to implement this program. Mayor Baugh asked for a motion to have the
City Clerk go out and get this information, adding that the City Clerk had already
talked with someone about it. City Clerk Martinez agreed that's correct. Councilman
Mitchum asked if the City Attorney knows about this. City Attorney Alvarez replied
the City Administrator spoke to a very good company and they discussed it and the
expenditure is less than $2,000 and a purchase order has been signed. City Clerk
Martinez noted it was signed by the City Attorney and her.
Mr. Hartman then reviewed the value engineering program, explaining they will
look at all the programs to see if they can pare down the total capital costs in
any way to find some money. He said they'll talk to Mr. Ferrara about trying to
get lower figures for storm water, and any cost savings will reduce the impact.
He added that the insurance company requires this.
-4- Council Regular Meeting Minutes
May 18, 1987
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COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) -
Capital Improvement Project Chairman's report re: decision on funding options
(Continued) -
Mr. Hartman asked that Council consider authorizing a value engineering on this
project, which is a cost effectiveness on the projects and a second review.
Mayor Baugh asked if the City Attorney has a problem with that and City Attorney
Alvarez replied no. Mayor Baugh asked the cost and Mr. Hartman replied they
reivew all the projects and certify the projects, and they didn't do the pre-
liminary engineering on stormwater so they will talk with the engineer who did
and make sure it's cost effective. Councilman Mitchum asked for a cost figure and
Mr. Hartman replied it will be about $10,000 for this type of project. City
Attorney Alvarez noted they're the engineers on the project and they have to sign
or it goes nowhere. Mr. Hartman pointed out they usually can save capital dollars
to more than pay back for the second review, and he reviewed some of the others
he'd done. Councilman Mitchum asked if they can cut some fat. Mr. Hartman explained
this is because they didn't do it all, and in his opinion, they can cut it and that's
why he's bringing it to them. Councilman Mitchum moved on his recommendation
that they accept it. Councilman Prater seconded the motion, and asked if this
needs to be done at this meeting. Councilman Mitchum agreed to withdraw his motion
if he wants more information and Councilman Prater said he'd feel better about it.
Councilman Mitchum withdrew his motion and Councilman Prater withdrew his second.
Councilman Mitchum asked they bring something on paper that will explain what
they're doing when they bring the other information the next day.
Mr. Hartman reminded Council that the financial market does poorly later in the
year and it could be a problem if they get too far behind schedule.
Mr. Hartman then reviewed item 2 on page two regarding the 201 Plan Amendment.
He said this would be about $5,000 and is for the grant funding program. He
said they've requested the 201 Plan be amended to update it to include service to
Florida Shores for eligibility. He asked for approval of this item which is due
June 1st. Mayor Baugh asked the amount of grant funds and Mr. Hartman replied it's
1 million to 2 million and they've prepared the application and it's in. Councilman
Mitchum asked if they won't have a chance for a grant if it's not in by June 1st.
Mr. Ron Ferland replied they'll be bypassed for this fiscal year if it's not in and
put on next year's list, and these were previously authorized with the grant
schedule. Mr. Hartman agreed this is just to formalize it. Councilman Asting
asked the cost for the application and Mr. Hartman replied it's $5,000 for the 201
Plan Amendment and the Plan was done in 1978. He added it's a federal wastewater
construction grant plan and they won't distribute funds unless the ~lan is approved
and theflan for this area hasn't been revised. City Attorney Alvarez explained
the investment is $5,000 for the grant. Councilman Asting moved to authorize the
engineers to go ahead with this. Councilman Mitchum seconded the motion. Motion
CARRIED 4-1. Councilman Rotundo voted NO.
Mr. Hartman said they'll provide additional information on the two items and ask
for consideration at the next meeting, and they'll do items 3 and 4.
Citizen Code Enforcement Board's recommendation that Delores Cucanich and Paul
Biggerstaff be reappointed - Councilman Asting so moved. Councilman Mitchum
seconded the motion. Motion CARRIED 5-0.
COMMUNICATIONS
This item was moved up to an earlier point on the agenda. See page 1 of these
minutes.
-5- Council Regular Meeting Minutes
May 18, 1987
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ORDINANCES AND RESOLUTIONS
Ord. 87-0-12 Emergency ordinance amending Chapter 14, Art.III, by re-establishing
a Local Planning Agency in conformity with Florida Statutes 163.3174 - City Attorney
Alvarez read this Ordinance. ORD. 87-0-12 - AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF EDGEWATER, FLORIDA, AMENDING CHAPTER 14, ARTICLE III, OF THE CODE OF
ORDINANCES OF THE CITY OF EDGEWATER, BY REESTABLISHING AND DESIGNATING A LOCAL
PLANNING AGENCY IN CONFORMITY WITH FLORIDA STATUTES 163.3174, PROVIDING FOR
AUTHORITY, DUTIES AND RESPONSIBILITIES, DECLARING THIS ORDINANCE TO BE AN EMERGENCY
ORDINANCE FOR THE PURPOSES OF FLA. STATUTE SECTION 166.041, DISPENSING WITH THE
REQUIREMENT OF TWO SEPARATE READINGS BY A FOUR FIFTHS VOTE OF THE CITY COUNCIL;
CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND PROVIDING FOR AN
APPROPRIATE DATE. Mayor Baugh explained they have to have this to proceed with
the project. City Attorney Alvarez added they have deadlines to be met, and he
read a portion of the sections regarding the reason for the emergency. Councilman
Asting moved to adopt the Ordinance on an emergency basis. Councilman Mitchum
seconded the motion. Motion CARRIED 5-0. Second roll call CARRIED 5-0.
UNFINISHED BUSINESS
There was no Unfinished Business brought up at this meeting.
NEW BUSINESS
There was no New Business brought up at this meeting.
ADJOURN
Mayor Baugh requested a motion to adjourn. Councilman Asting so moved. Councilman
Mitchum seconded the motion. Meeting was adjourned at 8:45 P.M.
Minutes submitted by:
Lura Sue Koser
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-6- Council Regular Meeting Minutes
May 18, 1987