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05-02-1988 - Regular Recessed to 05-05-1988 (.) u " . . CITY COUNCIL OF EDGEWATER REGULAR MEETING MAY 2, 1988 and recessed to MAY 5, 1988 MINUTES CALL TO ORDER Mayor Baugh called the meeting to order at 7:00 P.M. May 2, 1988, in the Community Center. ROLL CALL Mayor Earl Baugh Councilman Louis Rotundo Councilman Russell Prater Councilman Neil Asting Councilman David Mitchum Present Present Present Excused Present City Attorney Jose'Alvarez Interim City Manager Dennis Kelly Acting City Clerk Susan Wadsworth Chief Lawrence Schumaker Present Present Present Present INVOCATION, SALUTE TO THE FLAG Reverend Harvey Hardin, retired Methodist Minister, delivered the invocation. There was a salute to the Flag. PROCLAMATIONS Project Graduation - Mayor Baugh read the Proclamation for Project Graduation. Red Ribbon Week - Mayor Baugh read the Proclamation for Red Ribbon Week, Just Say No to Drugs. Mayor Baugh thanked the citizens for their support over the week-end with the water problem. Councilman Prater moved that in light of the recent tragedy experienced by Councilman Asting's family due to the passing of Mrs. Asting and out of respect for Councilman Asting and his family during this time of bereavement that this meeting be recessed until Thursday, May 5, 1988, at 6:00 P.M. Councilman Rotundo seconded the motion. Motion CARRIED 4-0. Mayor Baugh instructed all City personnel that wherever there's a flag flying to put it at half mast for a period of two weeks. The meeting was recessed at 7:10 P.M. MAY 5, 1988 Mayor Baugh called the recessed meeting to order at 6:00 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 Interim City Manager Dennis Kelly Acting City Clerk Susan Wadsworth Chief Lawrence Schumaker Present Present Present Present Mayor Baugh requested a motion to go from the regular Council meeting to the Public Hearing. Councilman Prater so moved. Councilman Asting seconded the motion. Motion CARRIED 5-0. PUBLIC HEARING - SECOND & FINAL READING & ACTION: Ord. 88-0-12 Creating reserve area for water and wastewater service, per Fla. Statutes 180.02, as requested and recommended by Local Planning Agency - Mayor Baugh stated this is second and final reading and action. City Attorney Alvarez read this Ordinance. ORD. 88-0-12 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, PURSUANT TO CHAPTER 180, FLORIDA STATUTES, CREATING A RESERVE AREA FOR THE PROVISIONS Of WATER AND WASTEWATER SERVICE FOR THE CITY OF EDGEWATER TO BE KNOWN AS THE GREATER EDGEWATER WATER AND WASTEWATER SERVICE AREA; PROVIDING A LEGAL DESCRIPTION FOR SAID AREA; PROVIDING THAT SAID SERVICE AREA SHALL NOT EXTEND FOR MORE THAN FIVE (5) MILES FROM THE CORPORATE LIMITS FROM THE CITY OF EDGEWATER; PROVIDING FOR WATER AND SEWER AVAILABILITY AND CONNECTIONS AND AVAILA- BILITY CHARGES; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. I' o o PUBLIC HEARING - SECOND & FINAL READING & ACTION: (Continued) - Ord. 88-0-12 (Cont'd) - Mayor Baugh asked for input from the audience and there was none. He asked for Council input and there was none. He requested a motion to adjourn the Public Hearing and go back into the regular Council meeting. Councilman Mitchum so moved. Councilman Asting seconded the motion. Motion CARRIED 5-0. Ord. 88-0-12 - Councilman Mitchum moved they adopt 88-0-12. Councilman Prater seconded the motion. Motion CARRIED 5-0. APPROVAL OF MINUTES Special Meeting of January 28, 1988 (recessed) - Councilman Prater moved they approve the Special Meeting of January 28, 1988. Councilman Mitchum seconded the motion. Motion CARRIED 4-1. Councilman Asting voted NO due to absence. Workshop of April 6, 1988 - Councilman Rotundo moved to approve these minutes. Councilman Prater seconded the motion. Motion CARRIED 5-0. Regular Meeting of April 18, 1988 - Councilman Prater moved they approve the minutes of April 18. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. BILLS AND ACCOUNTS Councilman Rotundo moved to pay these bills. Councilman Prater seconded the motion. Councilman Mitchum questioned the Brent Millikan bill for construction in progress. Karen Rickelman, Finance Officer, stated she thinks it's related to the capital improvement plan financing. Councilman Mitchum stated they're not a member of the finance team or the committee. Mrs. Rickelman said they were originally on the team. Councilman Mitchum questioned the $3,200 charge for CIP when they didn't authorize Brent Millikan to do the work. Mr. Kelly read the items on the invoice, which was broken down into four specific accounts, $1,130 for the audit and $2,125 for self-insurance. Councilman Mitchum questioned the charge for self-insurance. Mr. Kelly continued with a $1,126.25 charge for special assessments and $3,293.75 for capital improvements, for a total of $7,675. Councilman Mitchum questioned who authorized these services as Brent Millikan was hired as accountants and not authorized to work on CIP and self-insurance. Mr. Kelly recommended they pull that bill and take it back to staff and research minutes. Councilman Mitchum requested copies of the invoices and then amended the motion to drop Brent Millikan's invoices until such time as the City Manager brings it back with an explanation of what it is. Councilman Prater seconded the motion. Amended motion CARRIED 5-0. Mayor Baugh questioned a payment to David Jones that should have come back to Council. He suggested they set up a policy for part time employees for reimburse- ment regarding schooling or certification. Mr. Kelly stated he didn't realize it went before Council and he'd treated it asa standard tuition reimbursement. He said he agrees they should clear this policy up in the future to give staff direction. He reviewed the State Statutes mandating certification for the Fire Safety Inspector. He recommended the bill incurred be paid but with the under- standing that a recommended policy will come back to them. Original motion CARRIED 5-0. MISCELLANEOUS Norman Billups, 1860 Pine Tree, the voters determined by a 4 to to the upcoming election. C. E. Clark, 1818 Evergreen, reviewed actions taken by the Code Enforcement Board at the past Thursday's meeting, and reviewed prior times when his neighbor had been brought before the Board. He referred to a fence and shed on the property. Mr. Clark presented a petition to Mayor Baugh with signatures of 100% of the neighbors protesting the condition of the property at 1814 Evergreen. Mr. Kelly cautioned City Council that he's working with Mr. Clark on this problem and is working with the Code Enforcement staff, and they can hear the questions from Mr. Clark, but it is a case pending before the Board and for Council to respond could be interpreted as a violation of Mr. Morris's rights to due process. He encouraged Mr. Clark to present his comments to the Code Enforcement Board, and to give them a copy of the petition. urged Council to support the City Manager as 1 vote they want a City Manager. He referred -2- Council Recessed Regular Meeting Minutes May 5, 1988 o o MISCELLANEOUS (Continued) - Henry Dardinski, 2704 Sabal Palm, offered condolences to Councilman Asting. He then spoke regarding the defense costs for Councilman Rotundo and reviewed the criteria in Massachusetts regarding eligibility for workers compensation benefits being paid when in the scope of employment. He said he doesn't want to be saddled with additional expenses that he doesn't feel are the concerns of the taxpayers when they're looking at a bond issue that will affect the tax situation for all the residents. 'I Frank Opal, Florida Shores, referred to a newspaper article that said City Attorney Alvarez will plead not guilty in the defense of Councilman Rotundo and he asked who authorized him to proceed with such action. City Attorney Alvarez explained that he'll bring this up under City Attorney Reports. Mr. Opal referred to witnesses and depositions taken, and this incident had nothing to do with Council business. City Attorney Alvarez suggested they not comment on the case. Mr. Opal urged Council to reject any action and asked Councilman Rotundo to resign. Joan Strong, 1801 India Palm, asked how much more City money the City Attorney is going to spend on the Montesano case and how much has been spent to date. City Attorney Alvarez replied a report is coming to Council. Bill Klein asked to reserve his remarks for 7.C.l and 7.C.7. Mayor Baugh agreed. C. E. Clark, 1818 Evergreen, asked Mr. Kelly if he gave compliance on that case. Mr. Kelly replied the report came from the inspectors and it will go back to the Code Enforcement Board and they'll continue the fine or bring it down perhaps, but it's their decision. Mr. Clark asked if they're authorized to go on private property to take pictures under some circumstances. Mr. Kelly replied he thinks they can go on private property if they feel it's necessary. Mr. Clark suggested they give Mr. Kelly a vote of confidence. Jake Lodico, 302 N. Riverside Drive, offered sympathy to Councilman Asting. He referred to the recent water incident and stated it could be due to water pressure. He suggested employees should treat the customers right. City Attorney Alvarez pointed out the legal ramifications are not known at this point regarding the water and it's best not to speculate until they have all the facts. Mr. Lodico questioned how he'd know if his pipes are polluted and Mayor Baugh replied they checked all the pipes and should get the report back to see how it got in there. Harold Hardesteraskedfor time deferred to New Business or Unfinished Business. Mayor Baugh asked if he could bring it up at this time and Mr. Hardester replied no. No Council member expressed an objection and Mayor Baugh said he can bring it up under Unfinished Business. COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES City Council Reports - Councilman Asting thanked the kind and generous people of Edgewater who helped him and his family through a very trying period. Councilman Asting stated that Councilman Rotundo is a Councilman at the Council table and also for 24 hours a day and during a catastrophe he would be required to help carry the City through it. He said his time as a Councilman isn't just the time here but for 24 hours a day and 7 days a week and he thinks the City should pay for his defense and he moved to that effect. Councilman Rotundo seconded the motion. Councilman Rotundo stated he filed a form 8.B. Conflict of Interest to the City of Edgewater to appoint an attorney to prove his innocence. City Attorney Alvarez suggested they may want to hear his comments now and Mayor Baugh agreed. City Attorney Alvarez reviewed research of other cases against public officers that would be applicable. He said the principle of law in our State is that a public officer is entitled to a defense at the expense of the public in defending suits on misconduct charges while performing his public duties and while serving a public purpose, and those are the key words. He pointed out the rule applies for pre-payment or post-payment. He added that guilt or innocence played a big role in the case he'd researched. He said since the rationale of the law applied to pre-payment as well as post-payment and they don't know the outcome of the charges, he'd like to request an opinion or do some more research on the specific issues regarding performing public duties and serving the public purpose. He said he planned to accompany Councilman Rotundo to the arraignment the next day, and after that perhaps Councilman Rotundo will hire an attorney. Councilman Rotundo stated he already hired an attorney. -3- Council Recessed Regular_Meeting Minutes May 5, 1988 o Q COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) - City Council Reports (Cont'd) - City Attorney Alvarez stated he could research this further with the Attorney General in Tallahassee, and since the City can pay the money as pre or post- payment, perhaps they'll want to table it until the case is over and they have the benefit of more research and can see the outcome. Councilman Rotundo stated he's bringing his case before Council. Councilman Prater asked that the City Attorney advise them if this vote is legal. City Attorney Alvarez suggested it be tabled and Councilman Rotundo hire an attorney and let it proceed to trial and hear the outcome and he'll research with the Attorney General and they can always reimburse Councilman Rotundo later. Councilman Rotundo agreed. Henry Dardinski stated that continuing with this suit will be more divisive and if Council voted to publicly censure Councilman Rotundo and the two com- plainants dropped their charges, it would be in the City's best interests. Councilman Asting withdrew his motion. Councilman Rotundo withdrew his second. City Attorney Alvarez asked if they want to table it and consider it for future reimbursement when the case is over. John Siburn, Connecticut Avenue, said he has respect for the Council when they're on stage but when they leave the stage they're just anyone and he doesn't see taxpayers paying for his defense when off the stage. Councilman Asting stated they're Councilmen 24 hours a day and he moved to TABLE this matter until a further date. Motion DIED for lack of second. Norman Billups suggested that Councilman Rotundo tender his resignation. Councilman Asting stated that Councilman Rotundo is being judged guilty by certain people in the audience. Councilman Rotundo requested comments from his fellow Councilmen. Mayor Baugh stated that Councilman Mitchum requested a workshop next week to discuss this. City Attorney Alvarez replied no, because Councilman Asting won't be here and it should be full Council. Alice Murphy, 230 N. Riverside, said she has a lot of regard for Councilman Rotundo. She questioned if City Attorney Alvarez's offer of services to Councilman Rotundo might be construed as a bribe. City Attorney Alvarez agreed that's right. Mayor Baugh stated this isn't a public hearing and Council doesn't want to hear the case and it's up to the courts and the attorneys to handle it. City Attorney Alvarez said he didn't know Councilman Rotundo had hired an attorney and they can't tell whether the City is obligated to payor not, so it's wise to research it further and contact the Attorney General's office and the matter can be brought up at a future date. Mayor Baugh stated he received a call about the flag flying at half mast for the Astings. He asked Council for a motion to continue it for two weeks unless they see a reason why they shouldn't. Councilman Mitchum so moved. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. City Attorney Reports - There was no City Attorney Reports at this time. Interim City Manager Reports - Capital Improvement Program - Mr. Kelly pointed out that one project facing the City is the CIP and he's asking for 90 days to continue studying the program. He noted that there are work orders pending from Dyer, Riddle amounting to $170,000 and he can't submit a recommendation on them as he doesn't know that much about the program. Mayor Baugh asked if there has to be a moratorium or just put it on hold and Mr. Kelly replied they can call it whatever they want. There was discussion about bringing it back prior to the 90 days if the research were completed earlier. Councilman Asting asked what would happen to this if the Interim City Manager is accepted at another city where he's applied and Mr. Kelly replied it could be 2 to 3 months more hiring a full time Manager and he'd be in the same circumstances. Councilman Asting stated that his tenure is up June 10th. Mr. Kelly said he wasn't aware of a specific date. Councilman Asting moved to advertise for a permanent City Manager. Mr. Kelly stated he has a recommendation on that later on the agenda. Councilman Asting withdrew his motion. -4- Council Re~essed Regular Meeting Minutes May 5, 1988 o Q COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) Interim City Manager Reports - Capital Improvement Program (Cont'd) - Councilman Prater moved the Council declare a 90-day moratorium on any work or product relative to the C.I.P. pending this review and subsequent report from the City Manager. Councilman Mitchum seconded the motion, noting this will take control of the program and eliminate questions he had on the billing of the CIP program that was not authorized. Mr. Kelly pointed out any items before May 5th that can be justified will be an obligation to Council. Bill Klein, 2910 Needle Palm, referred to his previous appointment on the CIP team and the costs that have been quoted. He pointed out the people have not had a voice in what's being done. Councilman Mitchum stated the CIP booklet had the wide range of projects with prices from 20 million to 55 million but there's been no selection of projects and when they're chosen, it will go to the citizens for a vote. Mr. Klein questioned how bills were issued for $170,000 and $3,200 if nothing was presented to the people. Motion CARRIED 5-0. Interim City Manager Reports - Michael Hilldale's appeal of action taken by Land Development and Regulatory Agency re: crossing 6 ft buffer - Mr. Kelly stated the Land Development and Regulatory Agency met March 29th and voted 7-0 to deny a request from Mr. Hilldale in the 2700 block of Alamanda and the reason was his property isn't in the City limits and the City would have no control over the property when the planting strip is open. He recommended Mr. Hilldale be required, as a condition to cross that buffer strip, to annex into the City, and if he submits the annexation application then be allowed access and regulate the land use of his property. Michael Hilldale, 213 Lone Pine Drive, stated he'd have no problem with annexing if he were allowed access to his property via the City street. Mayor Baugh questioned if the buffer strip would be moved to behind his home or if it would be eliminated. Mr. Hilldale replied he had access behind his propery. Councilman Prater suggested the buffer strip could be moved to the back. There was dis- cussion about the break in the buffer strip and if traffic would use it. Mr. Kelly stated if the property is zoned residential it cannot be used as a thorough- fare and the City could impose the regulations. Mayor Baugh asked if Council wants to accept the recommendation with the condition of annexing. Councilman Mitchum so moved. Councilman Asting seconded the motion. Motion CARRIED 5-0. Interim City Manager Reports - Organizational analysis - Mr. Kelly reviewed the agenda items before Council over the last 15 months and the percentages of time spent on the various departments, boards and miscellaneous items. He then reviewed the personnel analysis which showed the trends from 1982 until 1988 in the various departments. The third item was a cost analysis of the general fund which showed the percent by department for personnel, operation and maintenance, and capital accounts. He recommended they keep in mind State mandates imposed on land use with Planning and Zoning taking a high priority. He recommended they continue pursuing the Planning and Zoning Director's position, and that Finance and Administration be reorganized into three separate departments: A being the office of City Manager; B the office of the City Clerk; and C, Finance Department. He suggested the position of Finance Director be established to be effective October 1, 1988, and to be a part of the budget process this summer. His third recommendation was to establish a Personnel Officer but due to budget limits perhaps this be done when they achieve 130 to 150 people and in the meantime, the personnel officer would be organized under the direction of the the Finance Director. Councilman Mitchum moved they authorize Mr. Kelly to move in this direction for all three recommendations. Councilman Prater seconded the motion. Motion CARRIED 5-0. Interim City Manager Reports - Planning and Zoning Director's position - Mr. Kelly suggested that this position have the maximum salary increased to $32,000 based on his research with Florida League of Cities. He also requested to readvertise the position with the new salary range in the appropriate trade journals. Mayor Baugh asked if he's requesting to raise the upper end of the salary and advertise and Mr. Kelly replied yes. Councilman Prater moved they go along with these recommendations. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. -5- Council Recessed Regular Meeting Minutes May 5, 1988 " o <.) COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) Interim City Manager Reports - Amendment to engagement letter, Brent Millikan & Co. re: auditing services - Mr. Kelly stated this is regarding the March 30th engagement letter and he discussed this with Mr. Millikan regarding attending the meeting and is recommending this entire report be forwarded to the June 6, 1988 meeting because he will be out for the May 16th meeting. Mayor Baugh requested a motion to TABLE this until June 6. Councilman Asting so moved. Councilman Prater seconded the motion. Motion CARRIED 5-0. Mr. Kelly pointed out that regardless of the action on the resolution and engagement letter they won't lose anything by tabling it until the June 6 meeting. Interim City Manager Reports - Recreational impact fee - Mr. Kelly stated that Dan Nolan brought to his attention that he'd paid $1,900 in impact fees and he's looked at the formula to see if there were inequities and if he was treated any differently from anyone else. He reviewed the permits issued from January 1, 1986 through April 26, 1988. He noted the residents in question do not have children and it's felt they don't put a demand on the recreational impact, but the fees and zoning of property go with the property and structure and not the people in it. He said he has no problem with it based on assessed land value but they may need to examine the formula work sheet used to determine the fee and the 3.3 figure per dwelling unit may be high as planning is using 2.45 per unit. He recommended they amend the ordinance to keep the persons per dwelling unit as an equal number to be adjusted each year. He pointed out that the developer can pay the fee during the time when the site is approved until the building permit is drawn which is some inequity as a single house does not have that opportunity because of no site plan. He said the laws should be applicable to everyone and recommended they amend persons per dwelling and also amend it requiring the recreational impact fee be paid at the time the building permit is drawn. He noted how the value would go up with water and sewer and infrastructure. Mayor Baugh asked what figure Florida Power and Light uses for a household and Mr. Kelly replied that 2.45 is taken from the University of Florida Bureau of Business and Economic Research. Mr. Kelly suggested they may want to adopt the annual figure of the University of Florida or decrease the number of persons per dwelling as variable each year, and also change the timing of the payment of the fees at the point of drawing the building permit. Dan Nolan, 2316 Royal Palm, D & L Builders, stated that the fees are not equally shared in relation to other cities such as Daytona Beach, Ormond Beach, or Miami. He said the fee is almost a double taxation to the developer and homeowners. He said Edgewater has the highest millage rate and part of that is used in the recreation department, but it cannot be used to buy land. He suggested they scrutinize the formula and come up with a more equitable formula more in accordance with land values and development in Edgewater. He added there's a flat rate fee established by the County for the roads. He asked Council to allow a meeting with Land Development or Mr. Kelly to come up with an alternative to present to Council. Mr. Kelly sugggested they include Parks and Recreation Board also. Tom Sheridan, called a point of interest, that the ordinance says they will have 5 acres per 1,000 people and they don't have that amount. He asked that they not destroy the impact fee they have. Mel Wargo, Pines Edge Court, suggested they consider the entire building industry and not just one contractor for the meetings as the Association should be invited since they represent them. Mayor Baugh agreed they should be notified. Councilman Asting moved that the Land Development and Regulatory Agency and Parks and Recreation Board meet with the representatives of the contractors of the City and see if they can offer a solution to the problem to the Council. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. -6- Council Recessed_Regular Meeting Minutes May 5, 1988 ~ Q o ~ COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) Interim City Manager Reports - Acting Interim City Manager - May 16 through May 27 - Mr. Kelly stated he'll be going to Army Reserves during this time and is recommending an Acting Interim City Manager. Councilman Prater moved they go ahead with the City Manager's recommendations on #1. Councilman Mitchum seconded the motion. Mr. Kelly read his recommendation #1, and noted his second recommendation was for Susan Wadsworth to function during this two week period but that the duties assigned to her be of a routine nature so that all inquiries are directed to her, but his recommendation is #1. Mayor Baugh stated he has a problem with I.E. regarding answering telephone inquiries, etc.and Susan Wadsworth could do those duties. Councilman Asting asked how many hours per day Mr. Knowles will be working and Mr. Kelly replied he assumed 40 hours a week and 8 hours a day. Councilman Mitchum clarified that Mr. Knowles will receive the salary of Mr. Kelly who would not be paid and Mr. Kelly agreed. Councilman Mitchum pointed out that Mr. Knowles is not costing them anything. Councilman Prater stated that Susan Wadsworth has quite a work load and they should let him do those duties since he has offered to do it and he will be paid for it. Councilman Mitchum noted that Mr. Knowles will probably use Susan Wadsworth in that capacity. Motion DID NOT CARRY 2-3. Councilman Rotundo, Councilman Asting, and Mayor Baugh voted NO. Norman Billups asked if Susan Wadsworth's salary is increased with the additional work load. Mayor Baugh replied she'd act in the function of the City Clerk. Mr. Kelly referred to a strong personality needed for the position and suggested the Police Chief could step in. Councilman Mitchum pointed out the importance of what Mr. Knowles will be doing, and asked Mayor Baugh to explain precisely why he voted against it. Mayor Baugh replied that Susan Wadsworth can answer telephones and move correspondence, answer inquiries, and coordinate staff projects as he feels she's capable of doing it. He added that coordinating staff projects could be added to the recommendation of A,B,C, and D as he has no problem with that. Councilman Prater questioned if it's legal to put two jobs on one person. City Attorney Alvarez replied that Section 10 of the Charter provides the officers and employees of the City shall not hold any other public office, and he'd recommend #1 to avoid any problems with that portion of the Charter. Councilman Rotundo pointed out that this would be as if Mr. Kelly would be going on a 2-week vacation and the next person in line is City Clerk Susan Wadsworth. Mayor Baugh said the only problem he has is in section E and they could make a motion for recommendation #1 and include staff projects. Councilman Mitchum moved that Dennis Kelly's recommendation #1 be followed, with no problems with changing E, but that Councilman Prater as Vice Mayor, since he doesn't hold a full time job, be retained in an administrative form to eliminate any problems they would have with Susan Wadsworth's moving up and holding two jobs. He added that Councilman Prater could handle with Susan Wadsworth the administrative jobs and they could utilitize his experience. Councilman Prater seconded the motion. Motion CARRIED 4-1. Councilman Asting voted NO. City Attorney Alvarez asked to clarify that the Acting Interim City Manager is Pete Knowles and Councilman Mitchum agreed, with Councilman Prater to assist him and Susan Wadsworth. Councilman Rotundo stated he didn't understand it that way. Councilman Mitchum explained his motion. Mayor Baugh stated that Susan Wadsworth will still do daily routines with Councilman Prater coming in and checking it. Councilman Rotundo stated he wanted to change his vote and moved to reconsider the motion. Councilman Asting seconded the motion. Motion CARRIED 3-2. Councilman Prater and Councilman Mitchum voted NO. Second roll call on motion made by Councilman Mitchum CARRIED 3-2. Councilman Rotundo and Councilman Asting voted NO. Mr. Kelly requested a recess at this time before continuing with a last item for action that he'd discussed with each Councilman except Councilman Asting due to his personal situation. Mayor Baugh called a 5-minute recess at 8:30 P.M. He called the meeting back to order at 8:42 P.M. -7- Council Recessed Regular Meeting Minutes May 5, 1988 ., :. o (,) COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) Interim City Manager Reports - Mr. Kelly stated due to a deadline he's asking Council's input on refunding the 1977 and 1978 series bonds. He explained the program available through OBRA. He stated that the letter of intent is due the next day and a check for a good faith deposit is also required. He pointed out they weren't notified by Farmers Home Administration that the City is eligible for the program until he contacted them and they determined we weren't on the list but than later they said we are eligible. He stated it's necessary to conduct a detailed analysis on what savings it would generate, if any, and he proceeded with people he knew in the field due to the time limit. He said he talked with Arch Roberts and Co., William Huff and Company investing, and Leedy Corporation to determine what kind of analysis should be conducted and Arch Roberts and Company was able to get the information back in an expeditious manner. He read his May 5th memo regarding some loans being graduated and referred to an incident in Longboat Key. He added that he was assured by Ms. Rickelman there is money in the water and sewer operating fund. He reviewed option 2 with the conventional bond market and then reviewed option 1 with Gulf Breeze Municipal Bond Pool. He reviewed how the municipal pools are formed and managed, and noted there's a $28,000 savings to the City if they go through the pool program. He pointed out the identical debt service is calculated through 2015 and our current debt series goes to 2019 so the savings will be the last 4 years of the current note. He added that the note is protected by the 10 year call feature which is a standard feature for early pay offs. Mr. Kelly stated that if they opt to go with a letter of intent to Farmers Home Administration on bond notes 77 and 78 series a good faith deposit is required of 5% of the total of $900,000, or $45,000, to accompany the letter. He said then they'd proceed to refund the issue between now and July 11th and they need an investment banker. He added that if they save a dollar or more or break even, they will still be ahead because they have a bond coverage ratio of 4.06. He reviewed how Farmers Home could determine the City doesn't need a 5% subsidized loan from the Federal government and they could say we have to go to conventional market, which even with the discount would lose money. He reviewed how it could affect the CIP financing. He introduced Mr. Arnold Schneider and pointed out he's there on a contributary nature and there will be no charges. Arnold Schneider, Vice President and Office Manager of the Orlando office, Arch Roberts and Co. investment bankers, stated that FmHA is under pressure from Washington to buy back at discount or push them out or graduate them and it would behoove them to get out from under the likelihood of graduation. He reviewed the Gulf Breeze Pool origination and status and noted they have 14 or 15 loans being pursued currently. He pointed out it differs from other municipal pools in that it offers fixed rate financing over 27 years rather than the 10-15 years. He stated he'll leave a written proposal with Mr. Kelly which contains a loan appli- cation form that can be submitted to Gulf Breeze and it takes about 3-4 weeks to get it processed. He added that Edgewater was left off the list of FmHA. He asked Council to retain them to pursue this transaction and he will give references of other municipalites. He stated the proposal cold be a preliminary agreement and Council and the City Attorney will want to review it before they sign anything. Mayor Baugh asked if they have to go out for proposals from these firms. City Attorney Alvarez asked Mr. Kelly if they were going to do that. Mr. Kelly replied his experience is that they don't have to go through competitive bidding for investment banking such as engineers and architects but it's the decision of Council. He added that he'll stand behind Arch Roberts and Co. if Mr. Schneider is the principal. He said they need to know if they have access to the Gulf Breeze Municipal Bond Pool and if they don't have access, the realized savings will be dissipated because they'll have a broker to access the pool. He urged they move expeditiously and waive the negotiating process and select the firm of Arch Roberts and Company to get started with the program. Councilman Mitchum asked the cost for Arch Roberts and Mr. Schneider replied $1,625 is his fee and the rest of his compensation is from Gulf Breeze Pool. He added there's a non residual fee of $3,997 based on insurance criteria and if they choose to add other legal and accounting fees, that will be out of pocket. Councilman Mitchum stated that if it doesn't fly, they aren't out anything and Mr. Schneider agreed that's right and getting them pre-qualified doesn't cost anything and he suggested they initiate the process to get the approval. Mayor Baugh noted they were criticized before for not going out for proposals. -8- Council Recessed Regular Meeting Minutes May 5, 1988 1. , : ~ o o COUNCIL/OFFICERS REPORTS, BOARDS AND COMMITTEES (Continued) Interim City Manager Reports (Cont'd) - City Attorney Alvarez asked how many times they'd done this and Mr. Schneider replied the firm has about 13 under contract and he's representing 5 others under contract and in the process of being completed. City Attorney Alvarez asked how many were secured with RFP's and Mr. Schneider replied all 5 and they beat the competition in all 5. City Attorney Alvarez asked if it's common to hire investment bankers without proposals and Mr. Schneider replied yes, it's not uncommon. Mr. Schneider stated they all have a list and approach the cities. Mayor Baugh asked how long it will take to get proposals from other bankers and Mr. Kelly replied about two weeks. Councilman Mitchum stated they're only talking about $1,625 and Department Heads can spend $2,000. Councilman Asting moved to the effect hat they send out the letter of intent and then from there on the City Manager go for proposals, which he supposedly was doing. Mr. Schneider suggested they file a loan application with Gulf Breeze Pool to save time. Mayor Baugh asked if there's an obligation on the City's part and Mr. Schneider replied no. Councilman Asting agreed that would be a part of his motion. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. Acting City Clerk Reports - Acting City Clerk Wadsworth had no report at this time. Screening Committee's recommendation of four applicants to fill vacancies on Industrial Development Board - Acting City Clerk Wadsworth read the April 15th memo from Committee Secretary Dorothy Garrity advising the recommendation of Danny K. Hatfield, Robert W. Richards, Vincent P. Azzarello Jr., and Guy Hanson. Mayor Baugh requested a motion to approve these. Councilman Mitchum so moved. Councilman Rotundo seconded the motion. Motion CARRIED 5-0. COMMUNICATIONS There were no communications for this meeting. ORDINANCES fu~D RESOLUTIONS Ord. 88-0-13 Amending Chapter 7, Sec. 7-133, sign required on vehicles of sub- contractors identifying name of firm - Mayor Baugh stated this is first reading. City Attorney Alvarez read this Ordinance. ORD. 88-0-13 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AMENDING CHAPTER 7, SECTION 7-133, SIGN REQUIRED ON SERVICE OR INSTALLATION VEHICLE, OF THE CODE OF ORDINANCES OF THE CITY OF EDGEWATER, FLORIDA, BY PROVIDING FOR ALL COMPANY VEHICLES OF SUBCONTRACTORS, INCLUDING DRY WALLERS, PAINTERS, ETC. TO HAVE SIGNS IDENTIFYING THE NAME OF THE FIRM; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. Councilman Prater moved they adopt Ordinance 88-0-13. Councilman Mitchum seconded the motion. Motion CARRIED 5-0. Res. 88-R-2l Appointing four members to Industrial Development Board - City Attorney Alvarez read this Resolution. RES. 88-R-2l- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, APPOINTING FOUR MEMBERS TO THE INDUSTRIAL DEVELOP- MENT BOARD OF THE CITY OF EDGEWATER, PROVIDING FOR A TERM OF OFFICE; PROVIDING FOR POWERS, DUTIES AND RESPONSIBILITIES; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. He read the names and terms of the four members. Councilman Prater moved they adopt Resolution 88-R-2l. Councilman Mitchum seconded the motion. Motion CARRIED 5-0. Res. 88-R-22 Authorizing appropriate officials to execute agreement with Brent Millikan & Co. to perform auditing services for 1988-89 - City Attorney Alvarez read this Resolution. RES. 88-R-22 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, AUTHORIZING THE APPROPRIATE OFFICIALS OF THE CITY OF EDGEWATER, FLORIDA, TO EXECUTE AN AGREEMENT FOR PROFESSIONAL SERVICES WITH BRENT MILLIKAN & CO., P.A., TO PERFORM SERVICES AS CITY AUDITORS TO PREPARE THE 1987-1988 AUDIT FOR THE CITY OF EDGEWATER, FLORIDA; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH, AND PROVIDING AN EFFECTIVE DATE. Councilman Asting moved they adopt the Resolution. Councilman Rotundo seconded the motion. Councilman Mitchum asked if Mr. Kelly had a problem with this. Mr. Kelly replied no, his proposal will not minimize the engagement letter. Motion CARRIED 4-1. Councilman Mitchum voted NO. -9- Council Recessed Regular Meeting Minutes May 5, 1988 1 . ., o UNFINISHED BUSINESS o There was no Unfinished Business brought up at this time. NEW BUSINESS Frank Morris, 1814 Evergreen, asked about the public hearing as item 3 and stated he didn't think it should be passed as it's dangerous. ADJOURN Mayor Baugh requested a motion to adjourn. Councilman Asting so moved. Councilman Prater seconded the motion. Meeting was adjourned at 9:33 P.M. Minutes submitted by: Lura Sue Koser ATTEST: ~I~~ ACTING CITYVCLERK this / ~ day of 98~. -10- -P ~ fY p Council Recessed Regular Meeting Minutes May 5, 1988