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06-28-04 v""' MINUTES REGULAR CITY COMMISSION MEETING JUNE 28, 2004 CITY HALL, 800 SEMINOLE ROAD Attendance IN ATTENDANCE: Mayor John Meserve City Manager Jim Hanson Commissioner Paul B. Parsons City Clerk King Commissioner Sylvia N. Simmons City Attorney Alan C. Jensen Commissioner J. Dezmond Waters III ABSENT: Mayor Pro Tem Beaver Call to Order/Pledge Mayor Meserve called the meeting to order at 7:15 p.m. The Invocation given by Commissioner Waters, which included a memorial tribute to former City Attorney Claude Mullis, was followed by The Pledge of Allegiance to the Flag. Approval of Minutes 1. Approval of the Minutes of the Regular Meeting of June 14, 2004 Motion: Approve Minutes of the Regular Meeting of June 14, 2004 as presented. Moved by Parsons, seconded by Waters Votes: Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Courtesy of the Floor 2. Courtesy of the Floor to Visitors Dorothy Kerber of 365 1St Street spoke in favor of revisions to the City Code that would address clear sight distance at street intersections (Item 8C) and supported some type of parking for the residents who live at street ends (Item 8J). Alan Potter of 374 2"`~ Street provided infornlation concerning water and sewer rate increases since 1994, and spoke in opposition to the city's practice of transferring funds from the water and sewer fund to the general fund. Mr. Potter believed the Commissioners should have left last year's millage rate as it was, and favored an increase in ad valorem taxes over the proposed utility rate increases (Item 8B). June 28, 2004 REGULAR COMMISSION MEETING Page 2 J.P. Marchioli of 414 Sherry Drive agreed with Mr. Potter's comments. He indicated that he was happy to see the problem at 5th Street and Sherry Drive had been resolved and commented that the improvements looked good. Jane Wytzka of 352 2°d Street commented on the following items: (1) Thanked the Public Safety Director for installing the stop sign at East Coast Drive and 1St Street and noted that traffic had slowed down considerably since its installation, (2) Believed that the intersection of Ahern Street and East Coast Drive was dangerous and needed stop signs, (3) Believed the construction site located in the 300 block of 2°`~ Street should be more closely monitored by the city since there was sand in the street, trash and a port-o-let located on city right-of--way at the site, and (4) Stated that mosquitoes had become bothersome, and commended the city's mosquito control contractor for going door-to-door looking for standing water. Stephen Kuti of 1132 Linkside Drive proposed that in order to obtain citywide representation from the Commission, the Mayor assign each Commissioner a precinct for one year and rotate between the precincts on an annual basis. He believed this form of representation would provide a better method of communication with constituents and allow each Commissioner to become familiar with the needs of the entire community. Eric Gunther of 35 10th Street stated that he lived at the Island Club Condominiums (Item 8J). Mr. Gunther summarized the condominium owners' on-going parking problems, and presented an owner supported plan to lease ten of the public parking spaces from the city for $300 per unit, per year. Dennis Rosa and Carolyn Ettlinger, President of the Oceanside Rotary Club, presented the city a check for $60,000 from their fundraising efforts for construction of the skate park in Jack Russell Park. (In the fall of 2003, the Rotary Club in celebration of the 100th Anniversary of Rotary, undertook the fundraising of $50,000 in exchange for the Rotary Club receiving recognition for the project and assurance the city would assume all liability for the park). Mr. Rosa reported that the Rotary Club had also received $500 in in-kind contributions for the park. On behalf of all of the Commissioners, the Mayor thanked the Oceanside Rotary Members for their generosity and support of the project. Carl Edwards of 174 East Coast Drive stated that he hoped the stop sign installed on East Coast Drive at 1St Street remained in place and suggested that stop bars be painted on the street to draw attention to the stop sign. June 28, 2004 REGULAR COMMISSION MEETING Page 3 Bob Curry of 65 10th Street, who also lives at the Island Club Condominiums, echoed the comments of Mr. Gunther and stated there would be 100% participation of the residents. He indicated that they were working with a printer to make "resident" parking hangers for their car mirrors and had spoken with a towing company relative to towing illegally parked cars. Unfinished Business 3. Unfinished Business from Previous Meeting from Previous Meeting A. City Manager's Follow-Up Report City Manager Hanson commented on each item of his written report. A copy of the report is attached and made part of this official record as Attachment A. City Manager Hanson stated that in addition. to his comments in the written report regarding the l Ot" Street Parking issue, he had received verbal communication from an appraiser, placing a $275 per month rental value on each parking space. He noted, however, that the proposed oceanfront parking area was not a buildable lot, and the monthly rental value should be discounted to reflect this fact. B. Appointments to fill vacancies on two Pension Boards Mayor Meserve indicated that he wished to appoint Richard T. Downes to the Police Pension Board and Anne E. Minor to the General Employee Pension Board to fill the unexpired term of Edward Lipscomb who served on both boards. Motion: Approve the appointment of Richard T. Downes to the Police Pension Board and Anne E. Minor to the General Employee Pension Board. Moved by Waters, seconded by Parsons Votes: Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 0 Item 8J was taken out of sequence and acted on at this time. Parking for the 10th J. Discussion and related action in connection with parking for the Street Condominiums condominiums at 10th Street (Commissioner Parsons) Commissioner Parsons stated that he had received a letter from Bob Currie and John Smith, residents of the Island Club Condominiums, requesting that the Commission consider leasing to the residents ten parking spaces at the June 28, 2004 REGULAR COMMISSION MEETING Pa e 4 west end of the public parking area adjacent to the condominium property, for $300 per space, per year for a period often years. He further explained that the residents would provide mirror hangers denoting "resident parking" and were willing to also mark the parking spaces. He noted that a towing company had been contacted relative to towing cars illegally parked in the leased spaces. Commissioner Parsons stated that he supported the owners' request and pointed out that the lease agreements would provide the city $3,000 per year in revenues, but he was not in favor of the granting aten-year lease. Commissioner Waters suggested the possibility of selling the ten spaces. He believed ten spaces could be developed elsewhere to compensate for the loss of parking spaces at 10`h Street. He indicated that he could accept either the lease or sale of the parking spaces. Motion: Approve the lease of ten public parking spaces to condominium owners for $300 per space per year, work out a time frame for the lease, including increases for inflation, and bring back a draft lease agreement for Commission review at the next Commission Meeting. Mayor Meserve expressed concern that a precedent would be set if the Commissioners chose to lease public property. He also believed other issues should be considered before entering into a lease agreement, such as how a change of condominium ownership would be handled and who would be liable if a vehicle was damaged by the towing company. The Mayor reminded the Commissioners that in the past, the city was advised that federal funding for the beach renourishment program could be withheld if adequate parking was not provided for ocean access. City Attorney Jensen expressed concern regarding establishing a precedent and asked the Commissioners to consider whether the situation in question was so unique that it would not establish a precedent for anyone else. He asked them to consider how they could lease the parking spaces to the Island Club Condominiums and not grant the same request for others. He believed that if the parking spaces were leased, the Commissioners should only consider ashort-term lease in case any unanticipated problems arose, and indicated that successive owners could be bound to the lease agreement. Discussion ensued. Commissioner Parsons believed the Island Club Condominiums parking situation was unique. He favored entering into a one-year lease agreement with the property owners at $300 per unit per year, and require 100% participation. June 28, 2004 REGULAR COMMISSION MEETING Paee 5 ""~ Commissioner Waters believed ten spaces could be developed at 16th Street to compensate for the lost spaces at 10th Street and indicated his preference for a permanent solution to the problem. Moved by Simmons, seconded by Parsons Votes: Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 0 - MOTION CARRIED Consent Agenda 4. Consent Agenda A. Reject all bids received under Bid No. 0304-10 for CDBG drainage improvements at George and Dudley Streets, and authorize staff to rebid the project using a revised plan (City Manager) Motion: Approve Consent Agenda Item A as presented. Moved by Waters, seconded by Parsons Votes: ~ Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Committee Reports 5. Committee Reports None. Resolutions 6. Action on Resolutions: None. Ordinances 7. Action on Ordinances A. Ordinance No. 95-04-88 Public Hearing & Final Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, REWRITING IN ITS ENTIRETY CHAPTER 12, NUISANCES, OF THE CODE OF ORDINANCES, AND PROVIDING AN EFFECTIVE DATE Mayor Meserve read the ordinance by title only. Motion: Defer final reading of Ordinance No. 95-04-88 to the July 26, - 2004 Commission Meeting. June 28, 2004 REGULAR COMMISSION MEETING Page 6 Commissioner Waters stated he wanted the deferral in order to correct several scrivener's errors he noted in the ordinance. Mayor Meserve opened the floor for a public hearing. No one spoke for or against the ordinance and the Mayor closed the public hearing. Moved by Parsons, seconded by Waters Votes: Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED B. Ordinance No. 90-04-185 Public Hearing & Final Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, COUNTY OF DUVAL, STATE OF FLORIDA, AMENDING ORDINANCE NO. 90-01-172, CHAPTER 24, ZONING SUBDIVISION AND LAND DEVELOPMENT REGULATIONS, INCLUDING ALL AMENDMENTS THERETO, TO ADD NEW SECTION 24-172, BOATS AND WATERCRAFT, PROVIDING FOR RECORDATION AND PROVIDING AN EFFECTIVE DATE The Mayor read the ordinance by title only. Motion: Approve Ordinance No. 90-04-185 on final reading Mayor Meserve opened the floor for a public hearing. No one spoke for or against the ordinance. The Mayor closed the public hearing. Commissioner Simmons referenced an e-mail she received from Maureen Shaughnessy and inquired if Section 24-172(a) of the ordinance would impact the development of Johnston Island. Community Development Director Doerr responded that it would not have any impact since the Intent Section was an existing policy in the original Comprehensive Plan and EAR based amendments. Ms. Doerr stated that if a project was developed with a marina or any facility that allowed boats, the developer would have to go through state required permitting. Commissioner Waters referenced subsection (c) entitled "Docking and Anchoring Restrictions." He thought the title should be changed to "Docking and Live-aboard Restrictions." He also inquired if that limitation would affect the proposed Johnston Island development. Community Development Director Doerr responded that the restrictions would apply to marinas. She explained the development of Johnston Island as it was now being proposed, did not include provisions for boats where people could permanently live aboard. June 28, 2004 REGULAR COMMISSION MEETING Pa e 7 Mayor Meserve inquired if it was the city's intent to limit live-aboards at a properly permitted marina. Discussion ensued. Mayor Meserve suggested that language be included excepting a properly permitted marina from the restriction. City Attorney Jensen stated that the Commission should consider that if the development of a marina should occur within the city limits of Atlantic Beach, they would have to apply for a waiver from that provision of the ordinance. Ms. Doerr stated that a stipulation providing for a waiver was included. She pointed out that construction of a marina was one of the most restrictive types of development, with many state laws affecting its permitting process. It was the consensus of the Commission to change the title of subsection (c) to "Live-aboard Watercraft Restrictions." Moved by Waters, seconded by Simmons Votes: Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Miscellaneous Business 8. Miscellaneous Business Authorize City A. Authorize the City Manager to sign the Letter of agreement and Manager to Sign Letter Cooperation between the Three Beach Cities on the Florida of Agreement Department of Environmental Protection Total Maximum Daily Load (TMDL) Issue (City Manager) Motion: Authorize the City Manager to sign the Letter of Agreement and Cooperation between the Three Beach Cities on the Florida Department of Environmental Protection Total Maximum Daily Load (TMDL) issue. Utility Director Kaluzniak explained that the state had approved the city's TMDL, which means the amount of pounds of nutrients the river can handle. She indicated that the research was done based on a complex model performed by the St. Johns River Water Management District (SJRWMD) and the Army Corps. of Engineers. She reported that the model looked at the lower St. Johns River as a whole unit and now the SJRWMD was in an implementation process to figure out how everyone discharging into the river will fit in and still meet the TMDL. Ms. Kaluzniak indicated that the issue of discharging nutrients came up in the mid-eighties, and at that time the DEP informed the beach cities that the Intracoastal waterway was too sensitive to the amount of nitrogen being discharged and in 1987 the three beach cities spent several million dollars and constructed a ten mile combined effluent force main with individual June 28, 2004 REGULAR COMMISSION MEETING Page 8 pumping stations. She felt the cities should have been given credit for taking that action to put the effluent at the mouth of the river where there is a large amount of flushing with a minimal impact on the river. Ms. Kaluzniak stated that the three cities had met and determined that engineering and legal assistance maybe required to prove that the cities have no impact on the quality of the river water, and to ensure that they are not unfairly burdened with a requirement already met by installing the outfall at the mouth of the river. A copy of the Utility Director's Staff Report is attached and made part of this official record as Attachment B. A question and answer session followed. Commissioner Waters inquired if influence of the upstream effluent was considered. Ms. Kaluzniak responded that it was considered. She explained that the river was divided into the upper, middle and lower basins with different TMDL's associated with each basin. Commissioner Simmons inquired concerning the city's placement as part of the river's basin and thought the beaches cities could not be discharging much nitrogen into the river. She believed the DEP should identify and target the sources of the nitrogen. Ms. Kaluzniak indicated that the DEP decided that everyone should "share the pain" equally, instead of trying to determine the individual sources. Commissioner Simmons also inquired if there were any guarantees that spending the city's share of $74,000 for the study would not be a waste of money. Ms. Kaluzniak stated that while there were no guarantees, the three cities were hoping that Task 1 in the proposal for services from Allied Technology and Management would prove that the effluent from the beaches cities had little impact on the amount of nitrogen in the river water. Moved by Parsons, seconded by Waters Votes: Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Receive Water/Sewer B. Receive report relative to water and sewer rate restructuring Rate Restructuring and authorize staff to draft an ordinance to adopt revised rates Report & Authorize in accordance with the Burton and Associates report and with Staff to Draft an the requirements of the St. Johns River Water Management Ordinance to Adopt Districts (City Manager) Revised Rates Mayor Meserve commented that the city was required to meet the requirements of the SJRWMD relative to adopting a water conserving rate structure and pointed out that the funds taken from the water/sewer revenues for the general fund came from the surcharge paid by out of city customers. June 28, 2004 REGULAR COMMISSION MEETING Pa e 9 City Manager Hanson explained the Burton and Associates report concerning the propused restructuring of the water and sewer rates. He pointed out that there would not be a phase-in of the amended rates as originally proposed and the new rate structure was no longer revenue neutral to the city. The new rates would generate about $380,000 in additional revenue, which would allow the city to meet its bond coverage ratio for the next year. Copies of the staff report and the report from Burton and Associates are attached and made part of this official record as Attachment C. Commissioner Waters commented that he would like to have the rate increase tied to the backflow prevention requirements. Commissioner Parsons felt the city was being penalized for conserving by now having to raise the rates to make up for the shortfall. It was the consensus of the Commission to authorize staff to draft an ordinance to adopt the revised rates for first reading and public hearing on July 12tH . Clear Sight Distance C. Provide direction to staff regarding revisions to the City Code to address clear sight distance at street intersections and for sidewalks (City Manager) City Manager Hanson explained that the FDOT standards for sight distance were used to determine what could be allowed in a site triangle. Community Development Director Doerr displayed a diagram illustrating the site triangle and indicated that measurements would have to be taken to define clear sight distance. City Manager Hanson pointed out that several revisions would have to be made to different sections of the city code to define how clear sight distance can be maintained at street intersections and along property boundaries that adjoin streets. The draft of the proposed fence and wall regulations was discussed. Commissioner Parsons inquired concerning the wall on the Warnock property at 1 S` Street and East Coast Drive. Mayor Meserve responded that the City Attorney had advised that it would be problematic if anything was done other than leaving the stop signs up where they are. Ms. Doerr pointed out that the current ordinance did not address obstructions and hazards within the site triangle and the proposed ordinance would allow the Public Safety Director to address those hazards. It was the consensus of the Commission that staff draft an ordinance June 28, 2004 REGULAR COMMISSION MEETING Paee 10 revising all sections of the City Code relevant to clear sight distance at street intersections acid for sidewalks and bring back the ordinance for first reading on July 12`". It was requested that a complete report explaining each change to the code be included with the ordinance. Authorize Staff to Draft D. Authorize staff to draft an ordinance to amend the City Code to an Ordinance to eliminate the payment of interest on customer deposits (City Eliminate Payment of Manager) Interest on Customer Deposits Motion: Authorize staff to draft an ordinance to amend the City Code to eliminate the payment of interest on customer deposits. There was no discussion. Moved by Waters, seconded by Simmons Votes: Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 0 - MOTION CARRIED Approve Increase in the E. Approve increase in the existing contract with GAI Consulting Existing GAI Contract to an amount not to exceed $79,500 in order to provide inspection services through this fiscal year (City Manager) Motion: Approve increase in the existing contract with GAI Consulting to an amount not to exceed $79,500 in order to provide inspection services through this fiscal year. There was no discussion. Moved by Waters, seconded by Parsons Votes: Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 0 - MOTION CARRIED Award a Contract to F. Award a contract to CDM for grant application preparation CDM for Grant services for Hopkins Creek Stormwater Regional Detention Application Preparation Facility in the amount of $11,989.00 (City Manager) Services Motion: Award a contract to CDM for grant application preparation services for Hopkins Creek Stormwater Regional Detention Facility in the amount of $11,989.00. Commissioner Parsons inquired if there had been any flooding in the Aquatic Gardens area during the recent heavy rainstorms. Public Works June 28, 2004 REGULAR COMMISSION MEETING Pa a 11 Director Carper responded that there was no major flooding. Commissioner Parsons reported flooding between East Coast Drive and Ocean Boulevard at 15th Street. Moved by Waters, seconded by Simmons Votes: Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 0 - MOTION CARRIED Authorize the City G. Authorize the City Manager to enter into a contract with Purvis Manager to enter into a Gray & Company for audit services for afour-year period at a Contract with Purvis cost totaling $158,000 plus related services costs if needed, per Gray & Company for the Request for Proposals specifications, with an option to renew Audit Services for an additional two years if mutually agreed upon (City Manager) Motion: Authorize the City Manager to enter into a contract with „'""' Purvis Gray & Company for audit services for afour-year period at a cost totalinE $158,000 plus related services costs if needed, per the Request for Proposals specifications, with an option to renew for an additional two years if mutually agreed upon. There was no discussion. Commissioner Waters commented that Purvis Gray and Company previously provided audit services for the city and he had always been satisfied with their work. Moved by Waters, seconded by Parsons Votes: Aye: 4 -Parsons, Simmons, Meserve Nay: 0 - MOTION CARRIED Selection of a Voting H. Select a Voting Delegate for the Florida League of Cities Annual Delegate Conference (Commissioners Simmons & Waters attending) (City Manager) Motion: Designate Commissioner Dezmond Waters as the city's voting delegate to the Annual Florida League of Cities Conference. There was no discussion. Moved by Simmons, seconded by Meserve Votes: Aye: 4 -Parsons, Simmons, Waters, Meserve Nay: 1 -Waters MOTION CARRIED June 28, 2004 REGULAR COMMISSION MEETING Pa a 12 Appointment to the I. Appointment to the Tree Board to replace Susan Grube Tree Board Motion: Appoint Elizabeth Green to fill the unexpired term of Susan Grube on the Tree Board. Commissioner Parsons inquired if new Board Members received information concerning the duties of the Tree Board. City Clerk King responded that they received a packet of information concerning their powers/duties. Moved by Meserve, seconded by Waters Votes: Aye: 4 -Parsons, Simmons, Meserve Nay: 0 - MOTION CARRIED "'" Parking for the 10th J. Discussion and related action in connection with parking for the Street Condominiums condominiums at 10~h Street (Commissioner Parsons) Item 8J was taken out of sequence and acted on after Item 3. Unfinished Business from Previous Meetings. 9. City Manager City Manager's Report A. City Manager's Report City Manager Hanson summarized his written report, which is attached and made part of this official record as Attachment D. Beach Renourishment After hearing the report on Beach Renourishment, it was the consensus of the Commissioners that a letter, signed by the Mayor and City Commissioners, be sent to our Senators urging them to support beach renourishment funding. Shade Meeting City Manager Hanson reported that a Shade Meeting to discuss collective bargaining issues had been tentatively scheduled for 5:00 p.m. on July 26th Financial Disclosure Reports City Clerk King reminded the Commissioners that their Financial Disclosure Reports were due by the end of the month. June 28, 2004 REGULAR COMMISSION MEETING Page 13 Reports/Requests 10. Reports andlor requests from City Commissioners and City City Commissioners Attorney City Attorney Commissioner Simmons • Inquired concerning the status of beautification project for the five- points area. Public Works Director Carper responded that he would make his report on the project at the next meeting. Commissioner Parsons • Presented the Mayor with a Historic Preservation Award from the City of Jacksonville Historic Preservation Commission in recognition of the city's support of the Beaches Area Historical Society's project to identify historic buildings and homes at the beaches. Commissioner Waters • Inquired if the hiring of an Attorney was included in the approval of Item 8A. City Manager Hanson confirmed that an attorney was included. • Confirmed that Johnston Island was on the next agenda. Mayor Meserve The Mayor, as the beaches liaison to the Super Bowl Committee, commented on the following items: • Expressed concerns relative to security for the event and stated he would be meeting with Jacksonville Mayor Peyton to discuss the security plan. • Expressed concern for who will be paying for transportation to events at the beach, such as the Air Show, and stated that he would also discuss the beaches cities' responsibilities with Mayor Peyton. • Stated there was one month remaining to sanction events for the Super Bowl. The Mayor indicated he would report back to the Commission after his meeting with Mayor Peyton. June 28, 2004 REGULAR COMMISSION MEETING Pa a 14 """~'. Adjournment There being no further discussion, the Mayor declared the meeting adjourned at 9:30 p.m. ~ ~ ATTEST: Maureen King Certified Municipa lerk ""~' Mayor/Presiding Officer AT'I' ~C]EIi~IENT A JUNE 23, 2004 June 21, 2004 MEMORANDUM TO: The Honorable Mayor and Members of the City Commission FROM: Jim Hanso Crty anag~3"' SUBJECT: Follow-u eport Visibility Comalaint; Intersection of 11th Street and Seminole Road; Concerns were raised at the last commission meeting that some of the trees planted by the City in the last yeaz were blocking the visibility of motorists at the intersection of Seminole Rd and 11th St.. David Thompson checked this complaint out and agreed that while the trees do pose a minor visibility problem, there is sufficient room for cars at this intersection to move ahead of the stop baz to safely get a better view of oncoming traffic. With this in mind, city staff has been asked to coordinate the planting of future trees in the vicinity of intersections with new proposed regulations that will be presented to the Commission on 6/28/04. These are a result of the discussions over construction of walls, pazking and other site impediments that caused for the four way stop at the intersection of 1 ~ Street and East Coast. Fish Refuse on the Beach; A question was raised at the last meeting about the legality of leaving refuse from fish cleaning on the beach. Leaving these materials is unlawful under the City Code. Two code sections relating to this are as follows: 12-1(b)(1) It is unlawful for any person to cause or allow any animal carcass or any filth or substance to be collected, deposited, or to remain in any place to the detriment to the public health. 5-4 It shall be unlawful for any person to leave any paper, glass, cans, food, fish, crab, cigarette butts, or other type of refuse upon the beach in the city. City lifeguazds are being educated as to these provisions of the City Code. 10th Street Parking; Residents of the 10th Street condominium complex adjacent to the beach have approached the City Commission on several occasions requesting that several public parking spaces be restricted for their private use. Most recently, I recommended that the city update its previous estimates as to the value of the places for possible rental to the 10th Street owners. A local appraisal firm has been contracted to prepaze this estimate. The work has taken several weeks, and some of the 10th Street owners have expressed frustration in the delay in completion, but the appraiser has committed to the completion of the report prior to the commission meeting. If the appraisal is received prior to the June 28th meeting, then a report will be made as to the value at that time. ATT'ACHI~IENT B JUNE 23, 2004 ,.. CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Consultant Services to Represent the Beach Cities Regazding Total Maximum Daily Load (TMDL) for Nitrogen in the St. Johns River SUBMITTED BY: Donna Kaluzniak, Utility Director DATE: June 21, 2004 BACKGROUND: The Department of Environmental Protection (DEP) recently enacted a Total Maximum Daily Load (TMDL) for nutrients (nitrogen) in the lower St. Johns River. A TMDL represents the total loading of a constituent in pounds that can be added to the river without causing impairment of the water body. DEP is now in the process of allocating nitrogen reduction requirements among point sources (outfalls) along the river, which could result in a requirement for the beach cities to upgrade their wastewater treatment processes, possibly costing millions of dollazs. DEP has concerns that the beaches' effiuent is causing problems in the azea of the Dames Point Bridge due to tidal influences. In 1987, DEP required the 3 beach cities, which were discharging to the Intracoastal Waterway, to either reduce nutrients by upgrading the treatment plants or develop other options for their discharge. Consultants were hired, and the best option for the beach cities, as approved by DEP, EPA, and other agencies was to construct a combined force main to dischazge the effiuent at the mouth of the river. Because of the huge flows at this location, EPA noted that our effiuent would have no adverse impact to the river and plant upgrades would not be needed. The beaches spent many millions of dollars and finished construction of the 10-mile combined effiuent force main and individual pumping stations in 1987. The beach cities agree with the focus to improve the health of the river, and are committed to doing our part. However, staff from all three cities have met and determined that engineering and legal assistance may be required to ensure the beaches are not unfairly burdened with a requirement that has akeady been fulfilled by relocating our outfall location. Jacksonville Beach has requested proposals from their continuing contract engineer, Applied Technology & Management for modeling work to determine the actual impact of the cities' effiuent on the river. This firm has several yeazs experience working with DEP's very complex model for the TMDL for the Lower St. Johns River. The total cost of engineering is $76,000, of which Atlantic Beach's shaze (based on design plant flows) would be $34,200. Jacksonville Beach's City Attorney recommended the cities request a proposal from Lewis, Longman & Walker, a firm with extensive environmental experience. The estimated legal costs $88,000, with Atlantic Beach's shaze being $39,600. A 15% contingency is also requested. AGENDA ITEM #8A JUNE 28, 2004 ,,., BUDGET: Funds for work during the current fiscal year are available in the Sewer Fund in account number 410-5508-535-3100. This includes Atlantic Beach's share of Task 1 for the engineering contract in the amount of $5,625, and FY041ega1 work in the amount of $8,100 for Atlantic Beach. Funds in the amount of $32,862 for engineering and $36,225 for legal fees (which includes the 15% contingency) will need to be included in the FY05 budget. RECOMMENDATION: Authorize the City Manager to sign the Letter of Agreement and Cooperation Between the 3 Beach Cities on the FDEP Total Maximum Daily Load (TMDL) Issue. ATTACHMENTS: 1. Letter of Agreement and Cooperation Between the 3 Beach Cities on the FDEP Total Maximum Daily Load (TMDL) Issue. 2. Proposal from Applied Technology & Management 3. Proposal from Lewis, Longman and Walker, P.A., Attorneys at Law REVIEWED BY CITY MANAGER: AGENDA ITEM #8A JUNE 28, 2004 LETTER OF AGREEMENT AND COOPERATION BETWEEN THE 3 BEACH CITIES On the FDEP Total Maximum Daily Load (TMDL) Issue It is agreed that 1) a law firm with environmental experience be retained to represent the Beach Cities concerning the TMDL reduction allocation issue, and 2) an environmental engineering firm be retained to run scenario evaluations with the complex computer-modeling suite to determine the impact of the Beach Cities' combined outfall effluent on river water quality. Jacksonville Beach agrees to administer the consulting work on behalf of the 3 Beach Cities. The Jacksonville Beach City Manager or his designated representative, the Jacksonville Beach Public Works Director, will administer the consultant agreements for this cooperative effort. Jacksonville Beach has a continuing engineering service contract with Applied Technology & Management (ATM). ATMprovides expert environmental, water resources, and coastal engineering & science services. This firm has excellent experience over the past three (3) years utilizing and verifying this particulaz computer-modeling suite developed by the Saint Johns River Water Management District. The Jacksonville Beach City Attorney recommends retaining the services of Lewis, Longman, and Walker, P.A., Attorneys at Law, to represent the Beach Cities on the TMDL issue. The firm of Lewis, Longman, and Walker has a great deal of experience in Environmental and Land Use Law. This firm and ATM have worked together in the past and have an excellent relationship. The consultant costs are to be shared in the same manner as done for the Outfall Effluent Copper Modeling & Mixing Zone Study. Consultant invoices for completed work will be processed by Jacksonville Beach, with Neptune Beach and Atlantic Beach reimbursing Jacksonville Beach. The estimated consultant costs aze shown below with the cost sharing percentages. (Copies of consultant a reements / roposals are available se azately.) Treatment Plant Location Design Flow % Total Engineer Firm Law Firm TOTALS** (MGD) Design Flow Estimated Cost* Estimated Costs* Jacksonville Beach (1 plant) 4.5 41.3% $31,388 $36,344 $67,732 Neptune Beach (1 plant) 1.5 13.7% $10,412 $12,056 $22,468 Atlantic Beach (2 plants) 4.9 45% $34,200 $39,600 $73,800 TOTALS 10.9 100% $76,000 $88,000 $164,000 ~.onuacnta~ arrangements with each term will be separate. A 15% contingency is also recommended. ** For FY2004 (thru September 40, 2004), Neptune Beach and Atlantic Beach will be responsible for their percentages of the TOTAL Estimated Costs up to $12,500 for the Engineer Firm and $18,000 for the Law Firm. Neptune Beach and Atlantic Beach will be responsible for their percentages of the remaining TOTAL Estimated Costs plus a 15% contingency during FY 2005 (October 1, 2004, through September 30, 2005). AGREED: Jim Hanson, City Manager City of Atlantic Beach Date: Jim Jarboe, City Manager City of Neptune Beach Date: George Forbes, City Manager City of Jacksonville Beach Date: .ature 04/14/1999 16:59 904-247-6117 JAX BCH PUBLIC WORKS AGENDA ITEM#8A JUNE 28, 2004 ,A.~'PLiED 'I'.ECHNOLgGY ANA MANAGEMENT PROPOSAL FOR CONSULTING SERVICES BEACH COMMUNITY COMBZN'ED EFFLUENT TMDL IV~ODELrN'G .A,ND EVAZ.UATION' SuBMZxT~D To: A~rLnNTTC Bsnc.H NEPTUNE HEA(;H JtLCKSnNVILLfi Bfi!!CH J~,~ i o, zooa 04/14/1999 16:59 904-247-6117 JAX BCH PUBLIC WORKS AGENDA ITEM#8A JUNE 28, 2004 PR.OPOS.A.T, FOR C4NSU~.TI~G SERVICES 7'MDZ, MODELING A.Nb EVALUA,~';(C+N INTRODUCTION 7hc three coastak cou~mutrities in Jacksonville share a common wastewatat autfaIi that releases into the St Jokers River near its inoersection with the innacoastal Watctway, about 2.5 ttriles upsttcam of the nver'9 pCap tetmittus. A =ecezat TMbL developed £or the Lower St Johns River pctfotmed by the sJRW1ma set a specific loading reduction critetia for'I'vtal Nittogeb ir, the marine portiotr of the tkver. Subsequent to the TMDL being adopted by the FDEP, the iniuat proposed allocation of Total Nitrogen roductiotts indicates that Beaches conarntwnitics may be expected to decrease their cotnbiz~ed efQucnt Total Nitrogen load to the liver by 30"/o m comply vvitb the 'I'11~DI„ This proposal seeks to evaluate the findings of the TMDL to detere the specific impacts of the efQuexat on the gvatez quality in the rivcz and m relate chose impacts to other sources in the area. The assessxxacnt will also include the predkctcd impacts of the efQuetxt on the dissolved oxygen {D.O_) sag in the rivet upstream of the out£st1J, atoustd the Fulton Cut/Aamcs Poinx arcs. This area lras beets motcd in the TMAL documentation as a point of cosacern. The followiztg scopt of sczvkccs outIitles azt approach m ct aluare the actual, irxtpact of the combined dtschatgc, as indicated by the FbEP acccptod modeling suite, on the marine sectivzt of the St. Johns River. This proposal is based vin cozrvctsatiows with Mr. 'Ib Ed^vvards, P.L. and knowledge gained doting three years o£ baorr;itotizag and evaluating the Lowct St. Johns River TMUL citvclopmcrtt. This scope of work is preliminary acrd cart be modified as needed to zzaect specific requirements of nc~ beaches communities. APPROACH Applied 'I'cckrztology & Management, Ine, (,A.TIv~ has been working with vaxiaus stakeholders throughout the lower basin for aver three years to assure that the TMDL was developed using the best science in an appropriate tnazrtacr_ These efforts entailed reviewing in detail all throe catztplcx components of the TMDL nnodclitig effort -- fil UC hgdxodynauuc modeling, PLSM e~rtzmal load modeling, and CE~QUAL-IC.M water quality modcyng. PAGE 2 OP 5 04/14/1999 16:59 904-247-6117 JAX BCH PUBLIC WORKS AGENDA ITEA'I #8A JUNE 28, 2004 As part o£ our review work and interactions with the SJRWMD sad FDBP, we have monitored their model ralibra~tior-s through tb~e process of udliziog this ~ornodeligg suite otn oust computer al'uPutcnt to ass'ut cepcaability atad attorney. The latest icsodiScations to these models rcrrtain loaded on ouz computers and we curccntly have the capability m pecfoan sceaauo evaluations with minimal ramp-up einae. To evaluate the eatcat and impacts of the combine treated wastewatzzr discharge, we pcoposc to perform the three tasks listed below. Completion of these asks will provide the beach comtnuaities with detailed iafortaatioa regarding the impact of the combined discharge on the river with respect to Chlatophyll-a (Chl-a) and D.O. and help define a course of action that can be usod ro justify an alternative TMDL allocation approach m the FDEP. Close coordination between the agzndcs and the beaches oon~munitics wiII be a necessity to assure that all pattie6 are awaze of e~oxts being maade to zcvise az-d cefuae the proposod TI~II7L allocndon. To help facilitate this coocdinatioa, ATM will meet with tine Beach Cotnnx~uxudes on a atontbJ,y basis to pzovidc updates and insight iaro the preliminary findings of the proposed tasks. We will also commit ro attend the monthly TMDL Stakeholder and TMDL Ezccutivc Committee meetings throughout this process to present ia£otmadozx as needed and remain p1tlteat with the ongoing evolution of the TMDL allocation. TASH l -CIRCULATION AND TRANSPORT ATM will use the calibraoed EFDC hydrodynamic model applicadon developed by the SJRWMD for the TMDL to isolate the traaspocc sad fate of the combined effiuent The rotal extent znd concentttitioa of the egluetit plutxae wA]. be tdsluated to detacminc wliekher it evex teethed the Fulton Cut/Darnes Poiuat area and if so, at what coacentradort and ugdcz what conditions. This is a t~eladvtly simple application and dots not involve the full water quality model. A conservative tracer will be utilized within fiFDC to track the distribution and concentration of the effluent over time. The average and ma:irnum wncerttrations (or constituent dilutions) in the Fulton Cut/panacea Point a~e4 evip, be dctexAUiued and coznpnzed to the critical D.O. sags that the agencies are attempting ro alleviate through implementation of the TMDL. PAGH3OF5 04/14/1999 16: 59 904-247-6117 JAX BCH PUBLIC WORKS AGENDA ITEM #8A JUNE 28, 2004 TASK 2 -TOTAL NITROGEN AND HOD If there is an itxlicatioa that the courbir~ed eEflueat reaches the Ftiiton Cut/Dams Point at:ea is a auffi©cat concenteatioa and at apPropriabe times to warrant further study the full, calibfrated hydtodpnamics, external load, and water quality model system used to csmblish the TMDI, will, be ustd to evaluate the impacts of the efftueAt. The model system will be used to track the Total Nitsvgeu and the BAD for the outfall and to isolaa the specific influence of the rffiuant in the river. The magrritudc of the Total Nitrogen and BOD signals in relation to other sources in the river will also be evaluated. TASS J - D.O. AND D.O. DEFICIT ANALYSIS The final msk is to detamitx the specific impact of the combined effluer-t ozr the D.O, iw the river is general and die D.O, sag irr the Fulton Cut/Daares Poouat area an paxticuL•tr. The results of the Task 2 modeling will be used ro detcrmirrc the specific irtkluc~acc of the c~EElucat oa Chl-a az~d subsequently, the D.O. is the river is terms of the D.O. deficit (.e, the additional D•O, loss ix- the aver due to the pardculaz c£~Quent source). The evaluation wiIl be dose by comparing two scenarios, one with sad oac without the combined effiumtn The results will also be evaluated speaficaIlq in the area of the zaoted D.O. sag. TASH d - REPOR? PREPARATION A deseripdon of cacti of the modeing tasks, assumptions made, analysis results, sad coaclusioas will be docuurentcd sad included ixr a $rral report The report will alsa include quaotitaa~r sad qualitative graphical example m support the conclusions presenoed. ATM will assist in meetings with the FDfiP sad SJAVDNID u necessary to present the results of this modeling and evaluation effoiZ. Pncx; 4 of 5 04/14/1999 16:59 904-247-6117 JAX BCH PUBLIC WORKS AGENDA ITEM #8A JUNE 28, 2004 P1t0888sIONAL FEE ESTxA~IATH 9IJMMARV rs<a~ s~ Eit Est3maitea Fees 1 Carcalaticw and Traaap~trc ;12,500 Z Total Nitmgeu 9.ad BOD $24,500 3 D,O, amd I.).C.-. Det3cit Aaalps~la ;26,OOb 4 1te~roct Pzepxtntitxi ;13,500 Total 2?ees Na to Exceed ~'J(,,500 Pn<cE 5 of 5 j 19:42 904-247-6117 ~5-' b'a 1b;:S'1 NKUI'1"LCW1S L01'igm3ti Mffl1K~T i Jax BcH PuBLic WORKS AGENDA ITEM #8A yi04-rsr-;7ti1 i-DSG rd JUNE 28, 2004 ~EWIS, LON~MAN ~11VA'L~R, p.A. ATTORNEYS AT LAW ~r„~ "X~'alpmg Slea~a F~otleta's Fubtro"~ 9ltBNNA M. DURDEN, ESQUIRE 9428 Baynuadowr Road 5uita 63S larkwrivtlTe, FL 32236 (904) 7S7-2020 •Fax (904) 737-SZZI Contact Pentonr RUTH CARR~V Dau: Jung 15, 2004 TEY~COPY COV~Yi S1~ET Client/Ms<Gu No. 375-002 ?o; WILUaM T. `TY" EDWARDSi 7olescopy Numbex: Telecopy Numbcr: Telescopy Numbtr; Telecopy Nurnbar: Subject: Pa4cs: ~ 247-lf117 Mcssagc: S!8 AT7ACWED DRAFT ENGAGEMENT LETTER, pLE,ASE REVIEW AND ADV13E. THE S~PORMATtON CONTAnVED W 'C11<l4'tBLJBLbF'Y -e~SSAQ$ )~ ATTOAN$Y/CLI2NT PRyVI1.8filiD AND UONF~108PftiAC. INAORMATION lNTE[JDIiD ONLY FOit T19E U$ OP THE i~1DIVIDIJAG O>A l~VT1I'Y NADQA ABOVE ~ THe? 1tEADER O! T1i11 Z+~ESSA~ 1'S AIOT TH6 d~l'1<?lDF.b RFI2PIB7'Tf', YOU ARE KFRB9Y Np7tFQ:p Tt1AT ANY Dl98L~tWA'i'fON. D{f11tIBVf70N OA COrYIIiG OP TliiS OOAQNlRQ1GTiON IS S7RIC2LY lltOH1B1T1rD. Q' YOU F{AY8 JtBCSNED TKq 00-~lMUNICATtDN IN laRR04, PLEASe3 OrlMHLNw7'SY•Y N07'WY U.t iY '11GC.tTpONi<, AHD eRirt'CIItN T~i1t ORIOiNAL ~SS~4B 1'O CS ATZ1i~ A1YO'VB-AUURaS~ VU TN8 POdTAL SERYIC6, THANK YOU. ' 1! probl~u wIA bumni~dm occur, plnu oil (90~~ 7ST.~020- tACKSONViI.TB (ftSO) 212~tr3 ~ TALLAI!1ASS$8 (J63) 6/O~Ot~O -'oV'YS7PAi.M tHACii 19:42 964-247-6117 JAX BCH PUBLIC WORKS AGENDA ITEM #8A i /~- ,ow 1tS: J1 rnu~~,-Lpwi~ ,,u:,yurau walxr, ~r~`- r ~r -_•cc.., ~ ~~~ ~ ~ JUNE 28, 2004 R~pRy Ta; !,1 CKSONVlILE ]un~ 15, 2004 VIA FACSIMILE - Z47-6117 ~ ~ ~~'r WiliiatTt T, '7y" L'dwscde, P.E. ~~ Director of Publio Wark9 City of Jacksonville Heath 1460-A Sheucr Avonuo, 2n° Floor Jackaonv111c $cadt, FL 32250 RB: Legal Representation of Three Beach Cities -TMDL Requirements Dear Mr. Edwards: On behalf of the law firm of Lewis, Loagrnan & 'w'alker, P.A., thank you for the opportunity to work with y~ and your consultants on the above rcfcrtraced charter. 1'he following ropresettu the tortes and conditions of t+epreaentattion by tht bltm on this matter: 1, Spl~zoea. Lewib, Longman & Walker, P.A, will pc+ovide advice and repmaentation to the City of JacksonYillc $caoh, City of Neptune Heath, and City oP Adandc Beach, regarding the establishment of new outfall requirements associated with T1VmLa for the St. Johnr River fvr the Beach Cities' coatbincd sewage treatment facility, Wayne Flowers and I will be the ahareholdaa in charge of this matter and will be primarily rospoa9iblc for providing ~,,,,, and auporviaing ~a legal services required We will be rosponaible for ensuring that this matter is staffed is n mannor Adequate and appropriate to tho trquirements of the representation. At this tune, I anticipate that Melissa Grrosa Arnold and Maggie Mooney, Assa^iates in our Finn, will be involved in this mauer. We will use our beat judgment to determine the amount oP limo, who is to perform spooifio tasks and work, and the nature of the scrvioea to bo pecformod in your best intorests. Z. Professional Fees. Way><e and f will be the primary attorneys working on this matter. Our governmental rate is $195.00 an hour. In addition, we may asoign work to other attorneys or paralegals within the office, depending upon who can beat do the work in the most efficient mannor. Tho hourly rate for Associate attorneys ranges from S 160.00 to $1$0.00 per hour, Thsas ratan will be in effect through beaernber 2004 and will bt modified annually thereafter in January of each subsequent year. We will provide you with our new rates along with the Firm's statement of serv3oaa rcndcrod in January of each year. 3• F~4imatcd lcccs~ At your roquest, we have estimated foes through September 30, 2004, to be in the range of $12,000 to $18,000, and far the twelve (12) months thereafter (October 1, 2004 -September 30, 2005) co be in the range of $40,ppp ~ $70,004. As you might imasinc, it is quite .difficult to datsrnaine any such amount. primarily because this type of p~jvct is significantly impacted by issues and actions arising from third parties, "'° 19:42 904-247-6117 /, .. V7 JN ~ JL L'j 1111 VGW 1i V V1!'~NIQI) NainG1 tune 15, ?AQ4 Page 2 JAX BCH PUBLIC WORKS AGENDA ITEn4 #3A ~.,-s ~ ~ r ..L~~ , w.. ~ w JUNE 28, 2004 DRAFT q. Coats and Ex~t~,. The firm charges for costs and oxpcnacs incurred on your behalf for this rcprcaantAtion, Attachment 1 seta forth the moat commonly incu~trcd costs and axponscs. 'Wc may advance theca cone and seek reimburaemgnt in oux billings or we may at our discretion require you to deposit thane coats with us before the costs arc incurrcti. 5. Billine and Pavtnsnt. We will bill you on a monthly basis for professional services ttudered and atpenaaa incurred in coru-oction with this matter. Yvu agree tv pny the amount of each statement in full within twonty (20) days of the billing date. should you question or dispute any it~ema or any atateraent, you agree t4 notify us in writing of any such question or dispute within fifteen (137 Jaya of the billing daus, and we will asaum:e you da not have any ditpt-ip if we do not hear from you itt that titae. 6 j~l~. Yn the event any suit or action is brought to onforce tho providons of this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys' ices and coca inCUned in such proctrdinga, including appeals. We sincerely thank you for choosing our Rrtr- to assist you in thin most importatu matter. If you sgna with the forcjving terms and conditions, plcaso sign in the space provided at the bottom of the lector, return the original to the and retain a copy for your rocords. On behalf of the Fim~, I look Forward to assisting you in this matter. si>v~rcly, Brcnna M. Darden ACCBP2"BD BY: CCi'Y OF JACKSONVILI,$ 8EAC1fI sy: 'I~tler Date; ~ 19:42 904-247-6117 JAX BCH PUBLIC WORKS ,,~:-"15-`b4 1a:;S'L ~HUC--Lewls LongtTiEin wnlxer yb4-r3r-.sLLl AGENDA ITEM #8A ~ -o:ic r~~~ JUNE 28, 2004 June 1S, 2004 Page 3 .. ATT7ilCHPVIBN'F:~~ .. .~ ~;, Coai/Fxpans~ Typlcs-l Charges Computer Research ~ Actwl usage + proportionate shoe of b~tso subscription. Court Rapottesa birect invoice from vettdoz to client or paid fl^om retainer. Delivery Charges Actual ataount invoiced to firm. Mode of delivery basod on need sad economy. Mr~senger Service Acwal amount invoiced to ~ turn, Overnight Express Actual amount invoiced to the firm. Talofacaimik Outgoing; Actual teiephene charge + Sl.?S~page. IncominP: No charge Photocopying Inside copio:; 50.20~pagc Outside services: Actual amount invoiced to farm. Socratarial overtime No oharge Telephoae Charges Actual long distance and cellular charges + proportionate sham of base subscnptiona, Temporary Help Actual amount invoiced to the irm. "Crave!-L.ocal/Sudace Reasonable mileage or actual rental charges. Travel-Out-of--Town Intrastate: Actual oomtnon carrier charges for coach. Inte:at~te: Actual common cariitr charges For business class. MIl~F..w.h.1.1.M1.. ~IM•M•.v.•.~wY••-••••~•.-...... Meals/Aocottttnodtitions: Lowesi ~"~coiporate ~~ _~seasoaal~~~ rate available, reasonable business related meal expenses. Word ~OCCSSIri Other Bxpensw No char e Acwal cast ievotced to the fin:n. In selected cases, these lteme may be directly invoiced from vendor to client. ATTACHMENT C JUNE 28, 2004 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Restructuring of Water and Sewer Rates SUBMITTED BY: Jim Hanso DATE: June 18, 2004 BACKGROUND: Attached for your review is a report from Burton and Associates dated June 11, 2004 concerning the proposed restructuring of water and sewer rates. Burton was originally contracted to make various projections concerning rate options many months ago to implement water-conserving rates required by the State and to make other changes. Earlier reports were presented both to the St. Johns Water Management District (WMD) and to the City Commission. The WMD is requiring Atlantic Beach, as well as other water suppliers, to amend our rates to provide financial incentives for large residential water users to cut back. WMD representatives .., agreed with the last proposal for the residential water rates from Burton, with the stipulation that there be no phase-in so that the impact would be most strongly felt by the larger residential customers with the assumption that they would make larger reductions in their water usage. The City had previously proposed to phase in the implementation of water and sewer rate changes both for residential and commercial customers. Upon receiving word of the WMD's comments on the phase-in of the new rates, several proposals were presented to the Commission. The one most favored was to implement the residential rates immediately while phasing in the commercial rate changes. However, a question was raised about the revenue neutrality of this to the City. While the commercial rates were to be amended by increasing the base charges for water rates to be more in line with those of other cities, the residential rate changes not only had significant increases for the largest residential users, but also had decreases for some of the smallest users. The overall intent was to be "revenue neutral" to the City. Phasing-in one portion of the changes while implementing the others may have caused for a loss to the City during the phase-in period. The attached report from Burton and Associates outlines a proposed water and sewer restructuring that is no longer revenue '"''° neutral to the city. This rate instead is designed to change the AGENDA ITEM #8B JUNE 28, 2004 ~r•• current rate for residential customers as little as possible except to add the increasing blocks for the larger users and to increase revenues for the City. The State Revenue Generation charge, has been eliminated and spread into the base charges for both inside and outside customers. Customers with irrigation meters would have their rates begin at one of the higher blocks to offset the fact that they have two meters. Most inside City customers would experience something between a small decrease up to a 5% increase. The larger customers would have much more significant increases depending on their usage. The elimination of revenue neutrality is recommended due to declining water and sewer revenues. Atlantic Beach has experienced lower water and sewer sales over several years. Staff believes that this is a result of some conservation already taking place as well as the installation and retrofitting of new low flow plumbing fixtures. Also, several of our larger customers have found and repaired major leaks in their systems. There may also be a slight reduction in the accuracy of some of the city's meters, which are becoming older. Most of the meters were replaced at one time in 1996. Older meters sometimes read less volume than what actually passes through them. However, the water production from the plant has also been dropping over several years, which would indicate that most of the reduction in sales is not due to meter accuracy. The City's water and sewer rates have only increased by one and a half percent over the last two and a half years while inflation and other factors have increased costs substantially more. The result of all these factors is that our water and sewer revenues are running below budgeted projections and the City may not meet it's bond coverage ratio this year. The recommended approach by Burton and Associates would generate approximately $380,000 in additional revenue next year for the City. Our preliminary estimates for the upcoming budget indicate that this would allow the City to satisfactorily meet the bond coverage ratio for the next year. The Burton and Associates report does not address the previously proposed amendments to the commercial rates. However, given that the residential restructuring is no longer on a revenue neutral basis, an in depth calculation of the phase in cost is no longer necessary. The commercial rates can be implemented through the phased in process as recommended by the City Commission several months ago. Staff hopes to have an estimate as to how AGENDA ITEM #8B JUNE 28, 2004 much additional revenue this would bring in prior to the next City Commission meeting. BUDGET: Implementing the revised water and sewer rates as outlined in the attached report by Burton and Associates would increase the city's revenues by an estimated $380,000 per year. RECOMMENDATION: That the City Commission receive input from the public on a proposed water and sewer rate restructuring during the two Commission meetings in July and that revised water and sewer rates be adopted in accordance with the Burton and Associates report and with requirements from the WMD. ATTACHMENT: Report from Burton and Associates dated June 11, 2004 AGENDA ITEM #8B JUNE 28, 2004 ~wsx~n~~R~i~~~~ Mr. Nelson Van Liere Director of Finance City of Atlantic Beach 800 Seminole Road Atlantic Beach, Florida 32233 Re: Water and Sewer Rate Study Dear Nelson: We have completed the development of water and sewer rates that will provide sufficient revenues for a test year of FY 2003 and will provide the water conservation incentives required by the St. Johns River Water Management District (SJRWMD) as a condition of the City's Consumptive Use Permit (CUP). Rate Development The rates developed were designed to include as little change as possible from the City's current rate structure with the following exceptions: 1. The current Wastewater State Revenue Generation Charge has been eliminated and the revenue generated from that charge has been spread among the fixed monthly sewer charges of inside City and outside City customers, 2. An inclining block water rate structure has been included to replicate the inclining block water rates of the fifth year of the implementation plan that was submitted to the SJRWMD and suggested by the District as an acceptable rate structure. By using this approach to the development of water and sewer rates, it is estimated that the calculated rates, if they had been in place in FY 2003, would have generated approximately $380,000 of additional revenue, or approximately $5.883 million. Figure 1 at the end of the letter presents a summary of the calculated rates that would have generated this level of rate revenue in FY 2003 with the same billing determinants as FY 2003. Water and Sewer Rates Worksheet We have also developed a Water and Sewer Rates Worksheet (Worksheet) to assist you ,. in developing rates under the structure recommended herein that will provide sufficient Burton & Associates 2902 Isabella Blvd, Suite 20 • Jacksonville Beach, Florida 32250 • Phone (904) 247-0787 • Fax (904) 241-7708 E-mail: mburton@burtonandassociates.com Page 1 AGENDA ITEM #8B JUNE 28, 2004 .., revenues (to be determined by the City) for FY 2005. The Worksheet is attached to this - letter. Figure 2 at the end of this letter shows rates calculated using this Worksheet to generate $6,000,000 in rate revenue, or an additional $496,000 in rate revenue over FY 2003 rate revenue, and assumes a reduction in water usage of 1.50% from FY 2033 to FY 2005. It should be noted that this Figure is shown as an example only. In accordance with our scope of work, Burton & Associates has not determined the FY 2005 water and sewer revenue requirements. However, when the City determines the FY 2005 water and sewer revenue requirements, the attached Worksheet can be used to calculated rates for implementation. Customer Impact The calculated rates were developed to have as little impact upon the City's customers, compared to the current raters, as possible, with the exception of the inclining block rates, which will impact high volume water users. Customer impact graphs are presented in Figures 3 and 4 for the calculated rates in Figure 1 that would generate approximately $380,000 of additional rate revenue than was generated in FY 2003 with the same billing determinants as FY 2003 for inside and outside City 34/ inch meter single family residential customers respectively. Commercial customers will only be affected minimally by the calculated rates by the spreading of the Wastewater State Revenue Generation Charge over all inside and outside ., City customers. This change will slightly lower inside City commercial sewer bills and will slightly raise outside City commercial sewer bills. Bill Freguency Distribution Figures 5 and 6 present a Bill Frequency Distribution and Percent Bills Issued respectively. Figure 5 shows graphically the clustering of bills issued with monthly usage in the range of 0 -about 8,000 with the tailing off of bills issued at levels higher than 8,000 gallons per month. Figure 6 shows the percent of bills issued up to each 1,000 gallon increment of monthly usage. This figure shows that approximately 75% of all bills are issued for usage of less than 10,000 gallons per month. This figure also shows that approximately 90% of all bills issued are for usage less than 14,000 gallons per month, which means that only 10% of the residential customers will experience the higher bills due to the inclining block water rates as shown for usage above 14,000 gallons per month in Figures 3 and 4. It has been a pleasure working with you on this project. We appreciate all of the assistance provided by you, the City Manager and others on City staff who participated in the project. If you have any comments or suggested revisions to this letter report, please let me know and I will make the appropriate changes and re-issue the letter. Burton & Associates 2902 Isabella Blvd, Suite 20 • Jacksonville Beach, Florida 32250 • Phone (904) 247-0787 • Fax (904) 241-7708 E-mail: mburton@burtonandassociates.com Page 2 AGENDA ITEM #8B JUNE 28, 2004 If you have no suggested adjustments, you can consider this our final report. Also, if you have any questions, please do not hesitate to call me or Andy Burnham at (904) 247- 0787. Very truly yours, ~tic~.ael ,~. Bu rtovi Michael E. Burton President MEB/cs Burton & Associates 2902 Isabella Blvd, Suite 20 • Jacksonville Beach, Florida 32250 • Phone (904) 247-0787 • Fax (904) 241-7708 E-mail: mburton@burtonandassociates.com Page 3 AGENDA ITEM #8B JUNE 28, 2004 •- Figure 1 Calculated Water and Sewer Rates that would Generate $5,883,000 in Rate Revenue, or $388,000 more Rate Revenue than was Generated in FY 2003, with the same Billing Determinants as FY 2003. I CALC1/LA7ED WATER RATES FROM MODEt ~ Customer charge 50.00 Base facility charge 56.33 Flow charge Upper Limit Block (t3allonslMo) Residernial Multl-famiiy Cemmercial - Commercial - Hotels Single Unk Muhi-Unit 1 3 5021 5021 5021 5021 5021 2 8 01.74 61.74 51.74 51.74 61.74 3 13 52.04 51.74 51.74 51.74 51.74 4 18 53.06 $1.74 51.74 51.74 51.74 6 91 54.eO 51.74 11.74 51.74 51.74 .Customer charge 50.00 Base faeiligr charge !13.29 Flew-charge UPPer Limit Block {(iallonsANo} Residertial Multi-family Commercial - Commeratsl - Hotels SingltUnit MuItl~lnk i 3 50.46- f6.4d 50.44 50.46 50.44 2 8 53.E 53:@9 53.89 53.E 53:89 3 13 `53.89 S;i:M 53.E 53.E Si:e9 4 18 50.00 , 53.E 53.88 53.89 53.69` i5 91 f0A0 53~ 53.69 f3.~ 53.69`; 6 50.00 50.00 f0A0 50.00 .50:00" Figure 2 Water and Sewer Rates that would Generate $6,000,000 in Rate Revenue or $496,000 more Rate Revenue than was Generated in FY 2003, with water usage Projected at 1.50% less than in FY 2003. F1' 2003 WATER RATES wkh ' strnents Customer charge :0.00 Base facility charge 56.48 Fiow charge Upper Limit Block (GaltonslMo} Residential Multi-family Commercial - Commercial - Hotels Single Unit Multi-Unit 1 3 5022 5022 5022 5022 5022 2 8 51.80 51.80 51.80 51.80 51.80 3 13 52.11 51.80 57.80 51.80 51.80 4 18 53.17 51.80 S1.80 51.80 51.80 5 91 54.76 f1.80 51.80 51.80 51.80 6 50.00 x.00 50.00 50.00 50.00 Customer charge 50.00 Base facility charge 513.66 Flow charge Upper Limk Block tGallonsfMo} Restderttial Multi-family Gommereial - Commercial - Hotels Single Unk Multi-Unk 1 3 60.47 ` 50.47 S0:4T S0.4T ;0.47 2 8 ' 53.82 ` `53.82 53.82 53.82 53.82 3 13 S3.82 53.82 q82 53.82 53.82 4 18 50:00 53:82 53.82 53:82 53.82 5 91 50.00 53.82 53.82 53.82.. 53.82. 6 50.00 50.00 50.00 SOHO 50.00 Burton & Associates 2902 Isabella Blvd, Suite 20 • Jacksonville Beach, Florida 32250 • Phone (904) 247-0787 • Fax (904) 241-7708 E-mail: mburton@burtonandassociates.com Page 4 AGENDA ITEM #8B JiJNE 28, 2004 Figure 4 Impact of Calculated Water and Sewer Rates upon Inside City Residential 3/4 Inch Meter Customers Inside City Residential 3/4" Water and Sewer Customer so% m ao% O ~ 30% C .~ ~ 20% t V 10% ~.+ C d L Deb m a -10% 0 1 2 3 4 s 8 7 8 9 10 11 12 13 14 15 16 17 19 19 20 Usage Figure 5 Impact of Calculated Water and Sewer Rates upon Outside City Residential 3/4 Inch Meter Customers Outside City Residential 3/4" Water and Sewer Customer so^,~ m ao^~ ev 0 F" 30% c .~ = zoeie ea t V 10^~ C i 0°~6 d a -10% 0 1 2 3 4 S 6 7 8 8 10 11 12 13 14 1S 16 17 18 19 20 Usage Burton & Associates 2902 Isabella Blvd, Suite 20 • Jacksonville Beach, Florida 32250 • Phone (904) 247-0787 • Fax (904) 241-7708 E-mail: mburton@burtonandassociates.com Page 5 AGENDA ITEM #8B JUNE 28, 2004 Figure 5 Bill Frequency Distribution Atlantic Beach -Bill Frequency Distribution 8,000 7,000 a y 6,000 N H 5,000 m 4,000 0 ~ 3,000 ~ 2,000 z 1,000 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 Gallons per Month Billed ^ Number of Bills Issued Figure 6 Percent Bills Issued Atlantic Beach--Percentage of Bills Issued 100% 90% ~ , 80°!0 d H . 70% N H ;60% Q'p 50% C 40% w m 30% d 20% a 10% 0% O h ~O -~h ryO tiO ,bO ,bh ~O ~h yO yh ~O ~h ,~O .~h ~O ~O 00 Gallons per MonthBilled -Percent Bills Issued Burton & Associates 2902 Isabella Blvd, Suite 20 • Jacksonville Beach, Florida 32250 • Phone (904) 24?-0787 • Fax (904) 241-7708 E-mail: mburton@burtonandassociates.com Page 6 ATTACHMENT D JUNF. 28, 2004 June 21, 2004 MEMORANDUM TO: The Honorable Mayor and Members of the City Commission FROM: Jim H .nso ity Manager SUBJECT: City Mana is Report Beach Renourishment; Newspapers recently ran a story that the Duval County Beach Renourishment Project had been allocated $750,000 in the House Energy and Water Appropriations Bill. This is clearly short of the five million dollars in construction costs that is needed to make the 2005 renourishment project a reality. However, this funding should be considered "good" news for a couple of reasons. First, there are only a few beach renourishment projects nationwide that received any funding in this appropriations bill. Having the project with some funding in this preliminary bill allows Congressman Crenshaw to work to increase the funding to the full five million dollar request prior to adoption of the final budget. No word has been received to as yet as to the status of similar legislation on the Senate side. Workshop Schedule; The first workshop dealing with the preservation of community character as discussed in our strategic planning sessions has now been scheduled for 5:00 pm on Monday, July 12`h. The meeting will be in the City Commission Chambers. Sandwiches will be served prior to the regular commission meeting scheduled to begin at 7:15 that evening.