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06-18-1979 - Regular j' u o A"'~~n ' "~~l/' " ~.., f'i~ 'f.1'~~ . 'wJ/(~l~ is':''}:'' ,1/ {!p1IJ: '<!." .., t, "', ."1 ....... Q &;.J ".""'i!1 ti... ~j' (~t ~. &;, ,;. CITY OF EDGEWATER CITY COUNCIL REGULAR MEETING June 18, 1979 Mayor Robert H. Christy called the regular meeting of the City Council to order at 7:00 P.M. in the Edgewater Community Center. ROLL CALL Mayor Robert H. Christy Councilman Louis J. Rotundo Councilman David C. Ledbetter Councilman Walter B. Sikes Councilman Neil J. Asting City Attorney Judson Woods, Jr. City Clerk Richard L. Weser Police Chief Earl Baugh INVOCATION Present Present Present Excused Present Present Present Present There was a silent invocation. SALUTE TO FLAG APPROVAL OF MINUTES Councilman Ledbetter made a motion that the Council aoorove the minutes of the reaular Council meetina of June 11, 1979. Councilman Rotundo seconded the motion. Upon roll call the motion CARRIED 4-0. BILLS AND ACCOUNTS Councilman Asting made a motion that the Council approve the bills for payment. Councilman Rotundo seconded the motion. Upon roll call the motion CARRIED 3-1. Councilman Ledbetter voted NO because he did not receive a copy of the bills in time to check them. PRESENTATION Mayor Christy said that Mr. Brent Millikan, C.P.A. would present the results of a special audit of the Water and Wastewater Funds. Mr. Millikan told the Council that his firm had been engaged to evaluate the reasonableness of records and transactions for the Water and Waste- water accounts. The procedure, as agreed upon in the engagement letter of February 5, 1979, was as follows: a. To review the water and sewer revenue and operating fund purchases ~ made in excess of $2,000 from October 1, 1977 to January 31, 1979 ~ to determine if these expenditures were in compliance with the City Charter, the Ordinances, and the Resolutions. b. To review the water and sewer revenue and operating fund's accounts payable as of Sept. 30, 1978 and January 31, 1979, to verify that these expenditures were properly charged to the proper reporting period. c. To review the interfund transactions in the water and sewer system revenue and operating fund and examine these transactions to verify they were recorded properly from Oct. 1, 1977, through Sept. 30, 1978. o o d. To select a vendor and test a sample of these invoices to determine if the City's purchasing procedures resulted in the City buying at the best rates. Copies of the Special Restricted Report dated May 24, 1979 were given to the Council. Mr. Millikan said that a representative of May, Zima, Mr. John Vodenicker, was also present at this meeting and had requested a copy of this report. Councilman Asting made a motion that copies of all material presented at this meeting to the Council also be given to Mr. Vodenicker. Councilman Rotundo seconded the motion. Upon roll call the motion CARRIED 4-0. Mr. Millikan continued with his report. A review of his findings were as follows: (Complete report and exhibits are attached to original minutes) 1. Trust Funrls. Mr. Millikan's firm found that the City did not report in its annual financial statements for the year ending Sept. 30, 1978, the assets, liabilities, reserves, fund balances and related transactions of the general employee retirement plan and the police employee retirement plan trust funds. The recommendation was that the general and police retirement plans should be accounted for as a trust fund. The Council members were given a copy of Exhibit A as documentation for recommendation concerning Trust Funds. Exhibit A concerned accounting for trust funds as stated in Governmental Accounting, Auditing and Financial Reporting procedure information. Exhibit A also contained statements from both fund accounts as to the balance of the fund 9/30/78. Councilman Asting asked if the City had paid for auditing charge? Mr. Millikan said that this was related to a charge from Banker's Life. Mayor Christy asked what the police retirement fund had to do with the Water and Wastewater funds? Mr. Millikan said that this became involved when they were checking out the trust funds. (Exhibit B statements from Banker's Life). Councilman Asting said that we were talking about $22,000 worth of assets that were not reported in our audit report. Mr. Millikan said that they were not reported in the 77-78 auditor's report. He has the responsibility to bring this to the Council's attention. Mr. Vodenicker said that this information was not available when the audit was made. There is a note in the financial statement declaring that the City does have a police and general pension plan and the vested benefits that we confirmed with Banker's Life have been disclosed in the financial statements. The next item on the report concerns interfund transactions. Adequate supporting documentation was not available for some transactions with the general fund, according to the Millikan report. The recommendation was that the City should consider the feasibility of prenumbered invoices which contain, at a minimum, the date of authorization, description of work performed, date work was performed, method used in calculating the charge. The Council was also given a copy of Exhibit C showing some of the transactions that were not clearly substantiated. The next item on the report concerned Workmen's Compansation and the erroneous reimbursement of funds from water and sewer to general for an insurance premium. The recommendation was to more carefully review interfund allocations. Exhibit D, supporting documents for this transaction was given to the Council members. The next item on the report concerned Accounts Payable. The report stated that some accounts payable were not recorded in the City's Sept. 30, 1978 financial statement. Exhibit D was given to the Council. 2 Q o The next item concerned closing procedures. The report stated that the City did not perform the posting of the audit adjustments or the closing of the general ledger in the water and sewer fund for the fiscal year ending Sept. 30, 1978. The recommendation was that all audit adjustments should be posted into the City's permanent accounting records for the year ended. Exhibit F was given to the Council. The next item was telephone toll charges. The report cited examples of phone calls, charged to the City, made from outside lines. One example was a call to the Tampa Bay Buccaneers. The recommendation was that long distance phone calls from outside lines be reviewed. Mayor Christy asked what department made the call to Tampa? Mr. Millikan said that it was from the Fire Department. was given to the Council. Exhibit G The next item was the formal expense report. The report stated that the City does not have a formal expense report for employees or officials that adequately documents reimbursements for business related expenses. The recommendation was that these formal expense reports be used so that there is sufficient evidence corraborating these expenses. Exhibit H was given to the Council. The next item was violations of the City Charter. The report stated that a number of purchase orders were not in compliance with Sec. 44 and Sec. 45 of the City Charter. Also a number of purchase orders were also not in compliance with Sec. 46 of the charter. The recommendation was that all purchase orders be signed by the purchasing agent and that at least an estimated cost amount be on the purchase orders if the actual cost is not available to provide some budgetary control. Exhibit I was given to the Council. The next item was the City Code of Ordinances. The report stated that in reviewing purchases in excess of $2,000, they found three purchases that did not meet the criteria of Ord. 981. The recommendation was that all City employees responsible for entering into formal purchase contracts with vendors be provided with a copy of Ord. 981 and be required to make all purchases in compliance with the City Code of Ordinances. Mr. Millikan also noted that the City made numerous purchases of like- kind materials from the same vendor within a short period of time that were less than $2,000 each. By use of this method of purchasing the City was unable to plan the purchases in a manner to obtain the best and/or lowest possible price for the materials. The next item was receiving reports. The report stated that there were a number of receiving reports that did not contain signatures to verify that the materials had been delivered to the City. The recommendation was that the City require all personnel responsible for authorizing the receipt of goods to sign and date these reports on the day of delivery. Exhibit J was given to the Council. Per the Council's request, the special audit also tested a sample of two selected vendors to determine if the City's purchasing procedure resulted in the City buying at the best rates. Mr. Millikan said that this check was not sufficient to constitute an examination made in accordance with accepted auditing standards and he would not express an opinion on the specific accounts. Page 8 of the report showed comparison of actual prices paid to current prices. .Mr. Millikan briefly recapped his report for the Council. Mayor Christy asked if any of the Councilmen had any questions. 3 o o There were no questions from the Councilmen. Councilman Asting said that he thought they could see why he requested this audit. He had selected Brent Millikan because they had been selected by the C.P.A. consultation service, sponsored by the Florida Institute of C.P.A.'s, from independent firms who have established reputations for solid knowledge in government accounting and auditing area. Mr. Vodenicker pointed out that this had been an audit confined to only one section of the City's financing and should not reasonably be compared to an audit of the entire City's financial transactions. He asked the Council to consider May, Zima's management letter which called attention to discrepancies in the City's financial system and made recommendations for correcting them. Mayor Christy said that he would like some time to study this quantity of information the Council had been given this evening and discuss this more thoroughly at another meeting. This is the first the Council has heard the full report and they have not had time to read it all. Councilman Asting made a motion that the City Council terminate the services of May, Zima and Co. and employ the firm of Brent Millikan to conduct the audit of the City records for the fiscal year ending Sept. 30, 1979. Councilman Ledbetter seconded the motion. Upon roll call the motion CARRIED 3-1. Mayor Christy voted NO. The City Attorney said that the contract with May, Zima wi~l have to be broken ~y resolution and the new auditing firm hired by resolution. Councilman Asting made a motion that the Council authorize the City Attorney to draw up a resolution terminating the contract with ~1ay, Zima and employing Brent Millikan for the remainder of the year as the City's auditors. Councilman Ledbetter seconded the motion. Mr. Vodenicker said that May, Zima had worked for the City for over 6 years. He could not see any examples of irresponsibility on the part of May, Zima in any of the material presented to the Council tonight. He ag~in mentioned the management letter. The City had already been made aware of most of the discrepancies mentioned tonight and had taken steps to correct many of them. The automation of the system allows more time to be spent on the control functions. May, Zima had offered to show their records of the City to Brent Millikan but he had declined the offer. This report should not be considered an indictment of May, Zima and he hoped this was not the rationale for terminating their contract one year before it was due to be renegotiated. Councilman Asting said that he realized this was a limited audit and he wondered what would have happened if they had had a complete audit. There were a lot of discrepancies brought out in this audit, isn't it possible that if a complete audit had been done there would have been additional ones? (The tape is not clear at this point). Upon roll call the motion for a resolution CARRIED 3-1. Mayor Christy voted NO. A brief recess was called. COMMUNICATIONS The City Clerk read a letter from the Zoning Board recommending that the Council consider amending Ord. 880 to add two (2) parking spaces on the same lot for each dwelling unit in the R-4 duplex and multi-family zoning district. Councilman Ledbetter made a motion that the Council grant this recommendation and amend the ordinance. Councilman Asting seconded the motion. Upon roll call the motion CARRIED 4-0. 4 o o The City Attorney said that it would be necessary to hold a Public Hearing and he would get together wi,th the City Clerk to set up a date for the Public Hearing. The City Clerk read a letter from the Zoning Board concerning two story homes east of Riverside Drive. The Zoning Board recommended that if the Council wished to change the regulation, they consider making two story homes east of Riverside Drive a Special Exception upon the recommendation of the Zoning Board. The City Attorney said that Special Exceptions are taken care of by the Board of Adjustment under Ord. 830. Mr. Siciliano of the Zoning Board said that this Special Exception would refer to multiple lots which would be subdivisions and that the Zoning Board made recommendations in regard to subdivisions. The City Attorney said that Ord. 880 takes precedence over the Subdivision Ordinance. Mr. Mackie, Chairman of the Zoning Board, said that he also believed that the Zoning Board handled all recommendations concerning subdivisions. There was further discussion on this subject. The City Attorney said that he would like to clarify this with the Zoning Board and requested that this recommendation be tabled until he has had a chance to get together with the Board. The City Clerk read a letter from the Board of Governors recommending certain changes in the Community Center to improve the acoustics. Councilman Rotundo made a motion that the Council refer this letter to the City Engineer for his opinion and cost estimate. Councilman Ledbetter seconded the motion. Upon roll call the motion CARRIED 4-0. COORDINATORS REPORTS Councilman Rotundo No report. Councilman Ledbetter said that there had obviously been a mixup on putting a street light at Mary and Alice. The new light is within 1241 of an existing light and is not necessary in this location. Councilman Asting said that he was responsible for making up the list. He also added a few places that had requested street lights quite some time ago. Councilman Ledbetter said that this light should be moved to another place where it would be more useful. Chief Baugh requested a list of pole numbers so that he could check out where these lights would be most helpful. Mayor Christy said that the Chief would get the list and could make another survey for recommendation as to where the street lights would be most effective. Councilman Asting said that he had received calls concerning the possibility that beach tolls would be raised. He felt that the citizens of Edgewater should not be discriminated against since we do so much business in New Smyrna. He does not feel that we should tell New Smyrna what they should do in relation to the Beach but he does feel that Edgewater citizens should not be asked to pay an increased fee to use the beach. There was some discussion about the possible raise in beach tolls. Mayor Christy said that possibly the City should notify New Smyrna Beach how Edgewater feels about this. Councilman Asting said he preferred to use diplomacy and wait to see what final action New Smyrna Beach may take. 5 o o Councilman Asting called attention to a newspaper article that stated the position of Clerk/Administrator as being the same as City Manager. He read the duties of City Manager, as stated in the charter, and said that none of these duties would be part of the position of City Clerk/Administrator. He read the resolution appointing Mr. Weser as City Clerk/Administrator and also the resolution declaring that the City Clerk/Administrator would set the agenda and be responsible for gathering material or doing research necessary on material for presenta- tion to the Council. The Mayor'sposition is a part time job and his only powers are those confirmed by the Council. The position of City Clerk/Administrator can in no way be described as that of a City Manager. Councilman Asting asked the Council IS permission to be absent from Council meetings of June 25, July 2, 9, and 16th. There were no objec- tions from the Council members. City Attorney Judson Woods No report. City Clerk Richard L. Weser told the Council that Miss Lillian Diaz who had accepted the position of City Planner called early this morning to say that she had changed her mind and decided to take a position with the city of Phoenix. Mr. Weser told the Council that he had gone over the Briley, Wild bills with Briley Wild's comptroller and the bills that had been questioned were corrected. The City will be reimbursed $500. He also told the Council that Briley, Wild had been informed that in the future all requests for services from Briley, Wild will be processed through the City Engineer. There will be a form filled out, a copy will be sent to Briley, Wild and a copy to the City Clerk for financial processing. RESOLUTIONS The City Attorney read Resolution No. 79-R-63. A RESOLUTUION APPOINTING RICHARD WESER AS CITY CLERK/ADMINISTRATOR OF THE CITY OF EDGEWATER, FLORIDA: PROVIDING THAT HE SHALL PERFORM ALL DUTIES AS REQUIRED OF HIM BY THE CODE OF ORDINANCES OF THE CITY OF EDGEWATER, FLORIDA, AND ALL STATE AND FEDERAL LAWS; PROVIDING THAT HE SHALL PERFORM SUCH ADDITIONAL DUTIES AS MAY BE SPECIFICALLY ASSIGNED TO HIM BY THE EDGEWATER CITY COUNCIL; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. Councilman Ledbetter made a motion to reject this resolution. Councilman Asting seconded the motion. Upon roll call the motion CARRIED 4-0. The City Attorney read Resolution No. 79-R-64. A RESOLUTION REQUIRING THE CITY CLERK/ADMINISTRATOR TO PREPARE THE AGENDA FOR EACH REGULAR COUNCIL MEETING: REQUIRING THAT ALL ITEMS TO BE BROUGHT BEFORE THE CITY COUNCIL AT THE REGULAR COUNCIL MEETING SHALL BE DELIVERED TO THE CITY CLERK/ADMINISTRATOR PRIOR TO NOON ON FRIDAY PRECEEDING THE MONDAY NIGHT COUNCIL MEETING; PROVIDING FURTHER THAT ALL MATTERS TO BE BROUGHT BEFORE THE CITY COUNCIL REQUIRING RESEARCH AND/OR PREPARATION BY CITY PERSONNEL SHALL BE DIRECTED TO THE CITY CLERK/ADMINISTRATOR. Councilman Rotundo made a motion to delete the word Administrator in the resolution and acceot the resolution. Councilman Ledbetter seconded the motion. Upon roll call the motion CARRIED 4-0. Councilman Asting made a motion to delete the word Administrator from Resolution No. 79-R-63 and accept the resolution. Councilman Ledbetter seconded the motion. Upon roll call the motion CARRIED 4-0. 6 o o The City Attorney read Resolution No. 79-R-62. A RESOLUTION APPOINTING RAY TROIAN TO THE EDGEWATER ZONING BOARD TO REPLACE JOHN GROSS, SR., WHO HAS RESIGNED DUE TO HEALTH REASONS; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. Councilman Rotundo made a motion to adopt this resolution. Councilman Asting seconded the motion. Upon roll call the motion CARRIED 4-0. The City Attorney read Resolutio~ No. 79-R-65. A RESOLUTION APPOINTING KENNETH DEGROOT AS THE DIRECTOR OF PUBLIC WORKS/ CITY ENGINEER OF THE CITY OF EDGEWATER, FLORIDA, SETTING FORTH HIS RESPONSIBILITIES AND AUTHORITY; PROVIDING FOR A SEVEN (7%) PER CENT INCREASE IN HIS ANNUAL RATE OF PAY; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. Councilman Asting made a motion to adopt this Resolution. Councilman Rotundo seconded the motion. Upon roll call the motion CARRIED 4-0. ORDINANCES The City Attorney read Ordinance No. \79-0-20. (First reading) AN ORDINANCE PROHIBITING THE DISPOSAL OF HARMFUL, OBSTRUCTIVE AND OTHER DANGEROUS MATERIALS INCLUDING INDUSTRIAL WASTES AS DEFINED HEREIN; SETTING FORTH STANDARDS FOR DISPOSAL OF INDUSTRIAL WASTE; THE RIGHT OF REFUSAL OF THE CITY TO ACCEPT SUCH DISPOSAL; SETTING FORTH PENALTIES FOR VIOLATION THEREOF; REPEALING ALL RESOLUTIONS OR ORDINANCES IN CONFLICT HEREWITH AND PROVIDING"AN EFFECTIVE DATE. Councilman Asting made a motion to adopt this Ordinance. Councilman Rotundo seconded the motion. Upon roll call the motion CARRIED 4-0. The City Attorney read Ordinance No. 79-0-21. (First reading) AN ORDINANCE AMENDING SECTION 606.00 OF THE CODE OF ORDINANCES OF THE CITY OF EDGEWATER, FLORIDA, BY CHANGING THE B-1, CENTRAL BUSINESS DISTRICT, TO B-3 HIGHWAY SERVICE DISTRICT; BY ADDING THOSE PERMITTED USES PREVIOUSLY EXISTING IN THE B-1, CENTRAL BUSINESS DISTRICT, AS ADDITIONAL PERMITTED USES IN THE B-3 HIGHWAY SERVICE DISTRICT: DEFINING THE T E R ~1 S II F RAN CHI SE" AND II NEW AUT 0 MOB I LED E ALE R S ", R E PEA LI N GAL L ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. Councilman Ledbetter made a motion that the Council adopt this Ordinance. Councilman Asting seconded the motion. Upon roll call the motion CARRIED 4-0. The City Attorney read Ordinance No. 79-R-22. (First reading) AN ORDINANCE CREATING A TRUCK ROUTE IN THE CITY OF EDGEWATER, FLORIDA EXTENDING THE LE~IGTH OF MANGO TREE DRIVE FROM PARK AVENUE TO 16TH STREET, EAST ON 16TH STREET TO HIBISCUS, SOUTH TO INDIAN RIVER BOULEVARD (SR-442) PROVIDING THAT SIGNS SHALL BE PLACED AT APPROPRIATE SPOTS ALONG MANGO TREE DRIVE, 16TH STREET AND HIBISCUS DESIGNATING THE TRUCK ROUTE; DESIGNATING THE INDIVIDUAL RESPONSIBLE FOR THE PLACEMENT OF SAID SIGNS PROVIDING THAT THE SPEED LIMIT ALONG SAID TRUCK ROUTE SHALL NOT BE IN EXCESS OF THIRTY (30) MILES PER HOUR; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. Councilman Rotundo made a motion that the Council adopt this Ordinance. Councilman Asting seconded the motion. Upon roll call the motion CARRIED 4-0. Councilman Rotundo asked if the order of business could be changed to discuss the home occupational license listed under Old Business. The Council agreed. I~EVJ BUSINESS The Council considered an application for Home Occupational License by Jay Canova to use his home for telephone purposes in connection with a house painting business. 7 . .. o o OLD BUSINESS School Lease: Councilman Ledbetter made a motion that the Council authorize the Mayor to execute the lease agreement between the City and the Volusia County School Board for a recreation area. Councilman Asting seconded the motion. Upon roll call the motion CARRIED 4-0. Report on Paving Equipment: The City Engineer gave the Council a favorable report on the paving equipment he had checked out in Orlando this past week. Councilman Asting made a motion that the City Clerk check into the City's funds to find out if we have the money to purchase this equipment or how we might obtain the money or make arrangements to purchase this equipment. Councilman Ledbetter seconded the motion. Upon roll call the motion CARRIED 4-0. Councilman Asting asked the City Clerk if there were funds to purchase the air conditioner for the new water plant office. Mr. Weser said that funds were available. Councilman Ledbetter made a motion to adjourn the meeting. Councilman Rotundo seconded the motion. The meeting was adjourned. Minutes submitted by: Nancy Blazi ~ ~ 7rfs-1S. I) - f!ik- 'A' ~ . councilman~ J..y l-&J A TTES~~flflY4 ~) City C'lJ~ Approved this:J..~ day of June, 1979. ~~ Mayor 8