Loading...
02-28-05 vMINUTES ~,.,, REGULAR CITY COMMISSION MEETING FEBRUARY 28, 2005 CITY HALL, 800 SEMINOLE ROAD Attendance IN ATTENDANCE: Mayor John Meserve City Manager Jim Hanson Mayor Pro Tem Richard Beaver City Clerk Donna L. Bussey Commissioner Paul B. Parsons City Attorney Alan C. Jensen Commissioner Sylvia N. Simmons Commissioner J. Dezmond Waters III Call to Order/Pledge Mayor Meserve called the meeting to order at 7:15 p.m. The Invocation given by Mayor Meserve was followed by the Pledge of Allegiance to the Flag. Approval of Minutes 1. Approval of the Minutes of the Regular Meeting of February 14, 2005 Commissioner Simmons requested that a clarification be made on Page 7, Item D, Paragraph 2. She stated that she questioned "inefficient" decorative lighting and asked that the minutes be amended accordingly. Motion: Approve the Minutes of the Regular MeetinE of February 14, 2005 as amended. Moved by Waters, seconded by Parsons Votes: Aye: 5-Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Courtesy of the Floor 2. Courtesy of the Floor to Visitors A. Report from GAI Consulting regarding Mayport Road median project Rick Carper, Public Works Director, asked Ron Hoogland, Project Manager with GAI Consultants, Inc., to give an update on the Mayport Road Median Project. Mr. Hoogland presented a report on the project, including background information, current status, and projections for the future of the work being done. The report is attached and made part of this official record ~'~" as Attachment A. He noted that funding for the project is being provided by the City of Atlantic Beach, City of Jacksonville, and Florida Department of Transportation. Mr. Hoogland outlined the preliminary cost estimates February 28, 2005 REGULAR COMMISSION MEETING PaEe 2 and the preliminary project schedule, with an estimated completion to be by October 2007. Commissioner Parsons expressed that he and other citizens had concerns that the final design did not contain enough turn lanes. Mr. Hoogland explained that the plan was based on FDOT standards and they consider many factors that contribute to traffic flow. Commissioner Waters spoke in favor of the preparation and planning that led up to this project. B. Merrill Lynch Pension Investment Performance Report for the year ended December 31, 2004 Nelson VanLiere, Finance Director, introduced Mr. Michael Callaway, Senior Vice President of Merrill Lynch, Jacksonville Florida, to give a brief performance report of the City's pension fund investments. Mr. Callaway reviewed a handout distributed to the Commission and provided explanation regarding the management and returns of the investments. His report is attached and made part of this official record as Attachment B. He explained the difference between the investments of the Police Pension assets versus the General Employee Pension assets. Mr. Callaway provided a general analysis of the City's portfolio and its average return rates and variability as compared to other public pension funds evaluated by his company. Mayor Meserve asked for a projection of the City's return rates over the next ten years. Mr. Callaway provided an educated guess of 9 to 9.5% rate of return for the future and explained the factors involved in forecasting long term return rates. Commissioner Waters asked for information regarding the percentages of employee contributions versus interest contribution. Mr. Callaway provided explanation of the different types of contributions. Commissioner Waters asked if the City should have done anything differently based on the results in the report. Mr. Callaway responded that the results in the report are products of the City following his company's guidelines and recommendations and therefore are viewed as correct and as anticipated. Mayor Meserve commended Mr. Callaway on the good work done by his company. Greg West of 57 19th Street stated he would save his comments for the public hearing on Item 8A. Jane Wytzka of 352 2"d Street spoke regarding the relationship between trees in the city and residential `3-story boxes' being built in the City. Ms. Wytzka expressed concern over the amount of reckless tree trimming being February 28, 2005 REGULAR COMMISSION MEETING Page 3 done by residents and the detrimental effects to other vegetation in the neighboring areas. She believed that Atlantic Beach has the most lax tree ordinance in the beaches area and that not enough tree replanting is occurring in the City. Ms. Wytska also suggested that property owners should be required to replace and replant trees within a year of removing any trees. She commented that people are cutting down trees for fear of the limbs causing damage to their houses during the hurricanes and believed the validity of this issue needs to be reviewed. She voiced concern over new `boxes' being built which lead to lots of concrete and a lack of trees in the area. Ms. Wytzka believed that an ordinance should be passed to require graduated rooflines and to prohibit box-type structures and lots less than 50 feet in width because they are unattractive. DeJean Melancon of 675 Beach Avenue spoke on behalf of Friends of Atlantic Beach regarding Item #8B. He notified the Commission that the school had started their renovation project and their schedule is to have it completed by the end of March. Mr. Melancon expressed appreciation for any assistance that the Commission could offer them. Bill Paulk of 338 2"d Street wanted to know the status of the condemned building located at the southwest corner of 2"d Street and East Coast Drive. He noted that the building caught fire and was condemned over a year ago ~" and has become an eyesore and a hazard. Mr. Paulk inquired what could be done to accelerate the process of cleaning up the site. Mayor Meserve responded that the City would look into the situation and come back with a report to Mr. Paulk and to the Commission. Jamie Fletcher of 340 Garden Lane addressed the Commission regarding the proposed revisions to the Tree Ordinance on the meeting's agenda. Mr. Fletcher expressed that the tree canopy is the foundation for the charm and character of the City. He believed that the City's current system, which includes the Tree Board and incorporating the correct values in the decision making process, works well. Mr. Fletcher encouraged the Commission to stay with the same system and postpone any amendments to the ordinance until the Tree Board and the citizens have the opportunity to review the proposals and participate in a City workshop. He strongly recommended the City study and receive community input through workshops regarding the desired character of Atlantic Beach. Unfinished Business 3. Unfinished Business from Previous Meeting from Previous Meeting A. City Manager's Follow-up Report ~ City Manager Jim Hanson gave afollow-up report on comments from a citizen, Dover Albertson, at the last Commission meeting. City Manager Hanson stated that Mr. Albertson had complained about the charges for utilities he used for cleaning his nine rental units in between occupants. City Manager Hanson confirmed that Mr. Albertson had correctly quoted February 28, 2005 REGULAR COMMISSION MEETING Page 4 the City's charges for deposits, reconnect fees and the garbage service. City Manager Hanson explained that City staff believed the reconnect and garbage service fees are both appropriate charges for the services provided. He stated that the City is willing to work with the deposit issue in order to make things a bit easier on landlords. City Manager Hanson reported that the City's policy allows a landlord to submit only one deposit and then to call the City whenever a tenant moves out in order to put the service in the landlord's name. He stated that many landlords use this process and find it helpful. City Manager stated that, if desired, the ordinances which specify charges could be changed by the Commission, but noted that the staff recommends that the current ordinances are reasonable and should remain in place. Commissioner Parsons asked for clarification on returning the deposits to the landlords. City Manager responded that the City can refund the deposits if desired, but most landlords prefer to keep the deposit on file for their next reconnection. Consent Agenda 4. Consent Agenda A. Acknowledge receipt of Monthly Financial Report for January 2005 (City Manager) B. Award contract for Stormwater Line Jetting, Cleaning & Televising to Florida Pipe Tech (0405-11) (City Manager) C. Award contract for Concrete Repairs for Public Works and Public Utilities to United Services Connection (Bid No. 0405-6) (City Manager) D. Acceptance of Water and Sewer Infrastructure in the Paradise Oaks Subdivision for City Ownership and Maintenance (City Manager) Commissioner Beaver requested that Items B and C be removed from the Consent Agenda for discussion. Motion: To approve Consent Agenda Items A and D as presented There was no discussion. Moved by Parsons, seconded by Beaver Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Commissioner Beaver inquired about the large differences in the price quotes given for Bid #0405-11 in Item B and also asked for confirmation that the lowest bidder is capable of providing the services appropriately. Rick Carper, Director of Public Works, responded that the lowest bidder is February 28, 2005 REGULAR COMMISSION MEETING Paee 5 the current contract holder and has been providing services to the City for the last three years. Mr. Carper also responded that the large difference in the price quotes is a result of the businesses being located farther from the City. Motion: To award contract for Stormwater Line Jettine, Cleaning & TelevisinE to Pipe Tech as presented in Consent Item B Moved by Waters, seconded by Beaver Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Commissioner Beaver asked for the lineal footage cost of last year's contract for Item C. Rick Carper, Director of Public Works, provided the prices for last year's service on the City's concrete repairs. Commissioner Beaver suggested it would be a nice gesture to recognize Robert Lawrence for his long-term service and support to the City over the years. Commissioner Waters questioned why the City was accepting the higher bid for this contract. Mr. Carper responded that the lower bidder could not ~` provide the current documentation for insurance coverage. Mr. Carper also commented that the prices being accepted for the bid are only marginally greater than what the City is currently paying for the service and are much less than the increase in the current cost of concrete. Motion: To award contract for Concrete Repairs for Public Works and Public Utilities to United Services Connection as presented in Consent Item C Moved by Beaver, seconded by Parsons Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Committee Reports 5. Committee Reports None. Action on Resolutions 6. Action on Resolutions None. Action on Ordinances 7. Action on Ordinances A. Ordinance No. 80-OS-71, Introduction and First Reading ^~ AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, ARTICLE II, DELETING ARTICLE II, SECTION 22-28 (2), WATER SERVICE FOR FIRE PROTECTION PURPOSED; ARTICLE II, AMENDING SECTION 22-30, PRIVATE FIRE PROTECTION SERVICE; TO February 28, 2005 REGULAR COMMISSION MEETING Paee 6 PROVIDE FOR SEVERABILITY; TO PROVIDE FOR AN EFFECTIVE DATE. Mayor Meserve read the ordinance by title only. There was no discussion on the first reading. Motion: To approve Ordinance No. 80-OS-71 on first reading Moved by Waters, seconded by Parsons Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Miscellaneous Business 8. Miscellaneous Business A. Request by John Fiege for aUse-by-Exception (UBE-2005-02) to allow an established martial arts studio to relocate to an existing commercial building within the Commercial Limited (CL) Zoning District and located at 1221 Mayport Road (City Manager) Motion: To approve request by John Fie~e for aUse-bv-Exception CUBE-2005-OZ) to allow an established martial arts studio to relocate to an existing commercial building located at 1221 Mayport Road Sonya Doerr, Planning and Zoning Director, gave background information on the request and presented slides showing the new location. She stated that the Community Development Board recommended approval of the Use- by-Exception at their meeting last week. Ms. Doerr explained that the request is from a well known, long established business to relocate to a larger facility less than half a block from their current location. Mayor Meserve opened the floor for a public hearing on the item. Mr. Greg West of 57 19th Street spoke as Mr. Fiege's attorney on the lease negotiations for the new location and as an instructor at the facility. Mr. West presented two points for consideration in support of approving the Use-by-Exception. Mr. West first noted that the change in location is very minimal, only two buildings north of the current location. He also noted that the facility is not only a martial arts studio, but also the only judo studio in the county. Mr. West stated that judo is an Olympic sport and the studio is an asset to the community because it draws children and adults from surrounding counties to participate in this activity. Mr. West encouraged the City to support Mr. Fiege's studio. There being no other public comments, Mayor Meserve closed the public hearing and brought the item before the Commission for discussion. February 28, 2005 REGULAR COMMISSION MEETING Page 7 ~- Commissioner Parsons inquired the name of the business in question. Mr. Fiege replied that it is called Gentle Way Judo. Commissioner Parsons commended Mr. Fiege on his business operation and encouraged him to continue his good work. Commissioner Simmons spoke highly of judo as a good activity for people of all ages and stated she is glad to see there is a studio located in the City. Moved by Beaver, seconded by Parsons Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED B. Request from Friends of Atlantic Beach Elementary for funding from the City of Atlantic Beach for Landscaping Renovation in front of the school (City Manager) Motion: To approve request from Friends of Atlantic Beach Elementarv for funding for Landscaping Renovation in front of the school Moved by Beaver, seconded by Waters Mayor Meserve explained that the request is to provide assistance with establishing water service on the school's property and also with the cost of one date palm being planted on the grounds. The Mayor estimated the City's total cost to be approximately $5000 and recommended providing this support to the school. Commissioner Beaver questioned putting an actual cost on establishing the water service due to the fact that it would be an in-house project. He suggested amending the motion to providing a 2" irrigation meter and the cost of one of the date palms with the cost of the palm not to exceed $3500 as listed. Amended Motion: To approve request from Friends of Atlantic Beach Elementarv for funding for Landscaping Renovation in front of the school, specifically for the cost of one date palm, not to exceed $3500, and to install a 2" irrigation meter at no cost Commissioner Waters discussed the idea of including a live oak tree from the City. Commissioner Beaver stated that the size of the live oak selected for the school is not the same as the trees planted by the City. Mayor Meserve stated that this motion is a good start at creating a partnership with the local school in the City and would like to see even more involvement in the future. The Mayor stated the school provides great education and this is a good plan to give the school an attractive landscape. February 28, 2005 REGULAR COMMISSION MEETING Page 8 He also suggested consideration of other possible opportunities to assist the school with parking and park areas. Moved by Beaver, seconded by Simmons Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED C. Policy Options to Encourage Septic Tank Owners to Convert to the Public Sewer System (City Manager) City Manager Jim Hanson gave the background on this item and noted that some of the recommendations had since been altered as a result of staff discussions held. The City Manager stated that he has brought the altered recommendations before the Commission for their discussion tonight. After highlighting each recommendation as presented in his staff report, the City Manager referred the Commission to a copy of the Revised Policy given to them. The staff report and revised policy are attached and made part of this official record as Attachment C. He also noted that if the Commission decided to place a cap on the maximum allowable Code Enforcement fines, that action would have to be passed as an ordinance. The City Manager stated that the rest of the policy could be adopted as an amendment to the resolution. Mayor Meserve recapped the recommendations. Commissioner Parsons asked if placing a cap on the Code Enforcement fines would be necessary. Commissioner Simmons clarified that he was referring to the Code Enforcement fine cap and not the loan cap. Commissioner Parsons stated that the policy brought to the Commission by the staff appeared suitable without adding a cap to the Code Enforcement fines. Motion: To accept the policy options for septic tank conversion as presented, excluding the option of placing a cap on Code Enforcement fines. Discussion ensued. Commissioner Waters asked if a property owner could use the loan to fund installation of both City water and sewer services. The City Manager responded that would be a good option for the owner and the City, but would probably need a minor amendment to include both services under the loan. Discussion of the appropriate language to use followed. Commissioner Beaver questioned the rationale behind lowering the interest rate from 7% to 4%. City Manager responded that the 4% rate would be sufficient to cover the costs incurred by adopting the policy. Commissioner Beaver suggested that the City offer refinancing at the new rate to any property owners still paying the original 7% loan rate. Mayor Meserve suggested that the issue be reviewed on a larger scale before being brought back before the Commission. February 28, 2005 REGULAR COMMISSION MEETING Paee 9 City Manager Hanson confirmed that the City will disseminate the policy information as accepted to the general public and to the citizens still eligible for the conversion process. Moved by Parsons, seconded by Beaver Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED D. Regulation of the Location and Use of Private Skateboard Ramps on Residential Lots (City Manager) City Manager Hanson gave the background on the issues discussed regarding private skateboard ramps on residential lots. He noted that the main concerns addressed by the Commission were the condition of the ramps and the time of their use. The City Manager asked Sonya Doerr, Director of Planning and Zoning, to provide follow-up on these issues. Ms. Doerr informed the Commission that her research revealed that other communities did not appear to regulate the skateboard ramps differently than they regulate accessory structures. She noted that St. Johns County ~^ was one example of a community which restricts the time of use and requires security precautions for the ramps. Ms. Doerr referred the Commission to their copy of the proposed language for addressing the time of use and giving the Code Enforcement officer the authority to act if the condition of the structures becomes too deteriorated. Commissioner Parsons inquired into the specifics of the security precautions established by St. Johns County. Ms. Doerr reported that the County requires the ramps to be surrounded by the same security fencing as they require for swimming pools. Commissioner Parsons asked for clarification on the required location for the ramps. Ms. Doerr responded that the new language would prohibit the ramps from being located in the front yards or the street side yards on a corner lot. Commissioner Parsons agreed that the examples of the skateboard ramps being presented are too excessive to be located in the front yards but would be fine if moved to the back yards. He spoke in favor of supporting the language proposed for regulating the ramps. Commissioner Beaver believed the City should not eliminate skateboard activity in residents' yards, but agreed that the structures needed some sort of regulation regarding location and time. He believed the language proposed allows today's youth to enjoy their skateboard activities but also allows the City to protect the neighbors and neighborhoods from any excessive disturbances. Commissioner Beaver spoke in favor of the proposed regulations. February 28, 2005 REGULAR COMMISSION MEETING Paee 10 ~- Commissioner Waters and Commissioner Simmons spoke in favor of adjusting the language to limit time of use between 9:OOam and 9:OOpm, as opposed to the suggested time frame of 9:OOam to 10:00pm. Mayor Meserve noted that the item would be brought back as an ordinance and the wording could be discussed further at that time if desired. Ms. Doerr stated she would bring the draft back to the Commission for further discussion at the next meeting. E. Scope of Services and Fee Proposal for Engineering Services for Design of Drainage Improvements for the Ocean and 13th Street to East Coast Drive and 12th Street (City Manager) City Manager Jim Hanson reported that Rick Carper, Director of Public Works, had pursued negotiations with the top ranked firm for the Drainage Improvements project and now the staff is asking for authorization to proceed with the proposal as presented. Commissioner Beaver spoke in favor of moving forward with the project. ~" Commissioner Waters inquired about sidewalk placement when relocating utilities. Mr. Carper responded that the project involves re-piping an existing system and that sidewalks are already in place on certain sides of the area in discussion.. Commissioner Parsons inquired if the project would affect 15`h Street. Mr. Carper responded that some minor benefits would be seen on 14`h and 15`h streets. Moved by Beaver, seconded by Parsons Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED F. Amendment to Maintenance Agreement and Contract with the Florida Department of Transportation (City Manager) City Manager Hanson informed the Commission that this amendment would add the maintenance of the pond on Mayport Road to the City's agreement with the FDOT. He explained the background and location of the pond and described the amendment as similar to a previous addition of a pond farther south on Mayport Road. February 28, 200.5 REGULAR COMMISSION MEETING Paee 11 Motion: To approve amendment to Maintenance Agreement and Contract with Florida Department of Transportation Commissioner Simmons commented that spending $3738 extra to maintain a drainage ditch between a gas station and a motel on Mayport Road seemed to be excessive. She believed there are many other things on which the City could spend the money. Mayor Meserve responded that if the pond was left for the DOT to maintain, the result would not meet City of Atlantic Beach standards and it would become an eyesore. He also suggested working with the owner of the hotel to help make the pond a more attractive area. Commissioner Waters clarified that the money spent would be towards beautification of the City and would enable the City to maintain the area more often than the minimum DOT standard requirements. Moved by Parsons, seconded by Beaver Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED G. Proposed Revisions to the Tree Ordinance (City Manager) City Manager Hanson reviewed his staff report that gives the background on the Tree Ordinance changes submitted last summer. He also commented that his report addresses recent requests from the Commission to consider additional regulations that require permits for removing trees on private property. He noted that currently there are exclusions for private property occupied by single-family residential structures. The City Manager also noted that attached to his report is a survey of the other beaches' tree regulations and their workloads created from issuing tree permits. He mentioned that the issue of community character needs to be addressed in relation to the tree ordinance. City Manager Hanson presented the two options of amending the tree ordinance to require trees be put in front yards of large houses or implementing a City plan to replant trees on the right of way. He asked the Commission to give the City direction for approaching these issues. Commissioner Simmons commented that there is a long and growing list of issues involved with this item and believed a workshop is necessary to bring together input from the Commissioners, the Tree Board, the citizens, and experts to help guide the process. She suggested that the Tree Board could collect and review the requests and complaints received in preparation for a workshop. Commissioner Waters commented that the process is moving too slowly for the citizens concerned with the issue. He recommended moving in the same February 28, 2005 REGULAR COMMISSION MEETING Page 12 direction as the other beaches in order to safeguard trees that are on private property. Commissioner Waters stated the city is not moving fast enough on creating ambience and tree preservation and feels that the direction given to staff tonight needs to have a time frame deadline placed with it and needs to be a thorough plan. Mayor Meserve voiced concerns with moving too fast when making decisions that involve people's property rights. He noted that there are a large number of old trees in Atlantic Beach and the City could be in trouble if damage was done on personal property due to a citizen not being approved by the City to trim or cut down a tree. He spoke in favor of approaching the issue in a systematic way and of getting public input before making the decisions. Commissioner Waters stated that the tree canopy creates a protective covering and makes trees less vulnerable to damage during high winds. He commented that the character of the city is changing on a daily basis and that currently it does not appear to be heading in the right direction. Commissioner Waters believed that the laws and regulations need to be more effective in order to achieve the desired results in a timely fashion. Commissioner Parsons believed that requiring permits to remove limbs or ~" trees would allow the City to make decisions based on the citizen's situation and would encourage the citizens to give more thought to their decisions to cut or trim a tree. He also agreed with Commissioner Waters that the City should move quickly with this issue. Mayor Meserve noted the main community character issues to be addressed are the size and character of houses on small lots, the tree canopy, and parking. The Mayor proposed ranking the issues and tackling each one at a time within a year's timeframe. Commissioner Simmons believed that all the issues could and should be addressed at the same time due to their relation with each other. She noted that she attended asmart-growth conference recently which recommended utilizing charrettes as an efficient means to accomplish goals in an intense, short time period. Commissioner Beaver agreed with the idea of holding a workshop meeting and expressed the importance of reforesting the community when cutting down trees. Mayor Meserve summarized the discussion by stating the consensus of the Commission is to promptly move forward through a charrette or workshop process and include communication with the consultant. February 28, 2005 REGULAR COMMISSION MEETING Page 13 ~' City Manager 9. City Manager A. City Manager's Report City Manager Hanson commented on each item of his written report which is attached and made part of this official record as Attachment D. Atlantic Boulevard Medians After the City Manager discussed the decision to improve the appearance of the medians by replacing the Aztec grass, Rick Carper, Director of Public Works, showed a sample of the recommended alternative flowering bush, lorapdelum, to the Commission. Mr. Carper discussed the qualities of the plant and the nature of experimenting with the plant in the Town Center area. Superbowl Costs The City Manager reported the total costs charged to the budget and explained that the majority of those costs were due to overtime and benefits paid to employees working during the event. He reported that other costs were related to printing maps, renting port-a-lets, and contributing to the cost of the Beaches Trolley. City Manager Hanson noted that in the end the City spent less than budgeted for the Super Bowl. TMDL Meetings City Manager Hanson gave a report on the last meeting held with the beaches representatives and the FDEP executive committee and stakeholders group regarding wastewater standards for nitrogen levels in the St. Johns River. He informed the Commission on the ways that nitrogen levels are related to pollution in the river. The City Manager reported that the cost to retrofit wastewater plants in order to meet the necessary reduction in the discharge of nitrogen would be very expensive for the City. He commented on the philosophies, science, and arguments regarding the plan. City Manager Hanson reported that the three beaches communities are working together to propose to the FDEP that, due to being located at the river's mouth, the beaches do not contribute to the river pollution in the same degree as other cities located further upstream. He informed the Commission that a testing company and an attorney have been hired to help the beaches monitor and research the case. Reports/Requests 10. Reports and/or requests from City Commissioners and City ?.~ City Commissioners Attorney City Attorney February 28, 2005 REGULAR COMMISSION MEETING Paee 14 Commissioner Beaver • Discussed along-standing Code Enforcement violation situation at 457 Sailfish Drive that he would like to see resolved. He referred to pictures given to the Commission to illustrate the problem at the site. Commissioner Beaver stated that the City needs to find a way to stop the situation since the administration of Code Enforcement notices and fines for the past 8 years has not been sufficient to resolve the issue. Alex Sherrer, Code Enforcement Officer, reported the details of the situation to the Commission and the efforts already taken by Code Enforcement in attempts to receive compliance from the property owner. City Manager Hanson suggested researching provisions used by other cities for similar situations and asking the City Attorney what other options are available to the City for handling this situation. City Attorney Alan Jensen advised that there does not appear to be any criminal violation for the police to handle and therefore the only recourse for the City is through Code Enforcement. He also advised that, due to state laws, a foreclosure can not be filed because ~'' it is homestead property. Commissioner Simmons • Also commented on the Sailfish property and discussed a phone call she received from a concerned citizen regarding the site. • Noted that the new signs installed at two gas stations on Mayport Road look good and make a great difference in the aesthetics of the area. • Discussed a phone call she received inquiring further into the situation with the news racks located throughout the City. She asked if there is a way that the City can regulate the size, placement or uniform appearance of the items. Sonya Doerr, Director of Planning and Zoning, responded that the issue is very complicated and many local governments have lost money trying to regulate the issue. • Informed the Commission on complaints she received regarding the dumpster located at Al's Pizza. She stated that there is no drain located under the dumpster and this causes rain or water used to wash the dumpster to flow down the driveway and sit in the gutter. • Reported complaints are being received regarding weekend work being done without proper permitting. • Stressed that the community character process needs to begin soon, before the summer begins. She also reiterated the need to involve the community with the decision-making. February 28, 2005 REGULAR COMMISSION MEETING Page 15 r Adjournment There being no further di adjourned at 10:00 p.m. ATTEST: ~~ Donna L. Bussey City Clerk declared the meeting Mayor/Presiding Officer ATTACHMENT A FEBRUARY 28, 2005 COMMISSION MEETING Status of Proposed Median Project on Mayport Road ~~"~~ (SR A1A) `} r,fr~r gaf consultants Existing Typical Section ~~~r 4 t ~ rl j I: ,t.: .ems 11.(Y YtlYn felt Tun lrr. s-11A' a Z-llb' TmM lrW ~~~~ I ~~~ ~ r, ,. ~•: EEIGIINfa1YP~GAL BELiION Mnp~cVn VIM J~fT s~~r . gef consultants 1 ~.,. ~` ~ ni ~~~' project Funding ~~ ~ ~ ,.. COAB, COJ and FDOT are contributing funds for the construction of the project. Cost for installing landscaped median - by COAB and COJ. Cost for Asphalt resurfacing and miscellaneous improvements for entire road limits (7~' Street to Naval Station) - by FDOT. y g®~ COf15UltdllYS z ~iwvrr~ Project Budgets (Identified By Entities) ~ k2t, y pass consultan6 Preliminary Cost Estimate For Median within i, COAB Limits COAB - $539,000.00 (Medians) FDOT - $6,162,000.00 (Resurtacing and Signals) Design (2004/2005) - $600,000.00 Right-of-Way for Signals (2005/06) - $360,000.00 Construction (2006/07) - $ 5,202,000.00 COJ -Town Center Fund Construction - $828,000 Design - $145,000.00 Description Amount Median Construction $294,000 Landscaping $247,000 Subtotal $541,000 Engineering Design/Construction Administration (contribution based on 15% of median construction value) $81,000 Total $622,000 ran ~: gai consultants 3 /~`~ /;.,~ I _,', ' Preliminary Project Schedule `~~~~ ~" Description Duration/ Days Begin Dates End Dates COAB/COJ/FDOT Agreements 5/2005 Concept Design (Median plantings/Public involvement) 100 06/2005 09/2005 Final Design 265 09/2005 05/2006 Contractor Selection/Procurement/MP 120 06/2006 10/2006 Construction 300 11/2006 10/2007 y 5~a1 consultants COAB/COJ discussing inter-local Agreement COJ/COAB/FDOT to initiate NTP on design gai consultants 4 ~. ~~ „e y gai r_onsuit~nts ATTACHMENT B FEBRUARY 28, 2005 COMMISSION MEETING O O ~ ~ O •N f V ~_ w a~ a ° m (~ ~ ~ N r ~ ~ _ ~+ ~ ~ M ~ Q ~ W ~ N r m ° N ~ ~ ~ 'n . i . o O N ~ ~ ~ M N O Q ~ C c_ N i~/ N ~ a U N tcu0 ~ ti ~ ~ ~ ~ ` A N ~ t ~ ~ > ~ V 3 p f II > J , Y U J a~.+ (,~ lC •~ L L Q 1 ~ Z C C 0 ,^ , YI ~ c c o .. ~ y FN N ~ ~ ~ 0 ~ N O O O N ~ O r y O T .£ ~ N D. ` ~A ~ ~ N ~ ~ L_ f0 ~ to V ; 3 N ~ N C N O ~ ~ O. ~ N UD ~C~pp ~ O E d U U C C d ~p ~ 21 O C L Q _O N j V L ~ C ~ O "' y~ O O J O Q N C W ~p O C y ~.:. ~ ~ d Q R ~ d d' U .+ ~ '' »... ,~.+ !' ~ ''' ~ .. ~ C ~ L .~-~ ~ ~ C O ~ C ~ ~ ~ ~ t!) h ~' ~ O ~ ~' a E w t~ ~+ ~ N {~ C N O ~ (Q U ~ ', m U ~'`~ ,~w cp Q c m 0 s H `~~s `~~ ~? ~~ ~D~ ~~, `Q~ t~ t~ ~~ tQ ~~ a~ rn c~ a .Ci C n.~ ~~ i~ w 0 0 0 0 0 0 0 0 0 o ~n o ~n °o ,°n n co cfl ~j ~ ~ r 0 U ~ w N U c-- f0 a O O ~ 7 ~ 1J ~ 64 ,~.. U; pJ~ 1 4 E i4 .~ ~~ Q .... a+.~ Q~/~~ ~V~~/y V/ t C LL C O .N ~^~`` ^W W T O a W R L C r~ V L U (p N m U _~ Q 0 O ~ r o a ~ o o ~n ~ ~ ~ cn H ~ ui ~ O ~_ N N ~ L (~ (c~ ~ G ov ~o ~ ~~ 0 0 a~ ~o o ~ a~ ~ O C ~ O ~ m N EA >o '= M Q M L ~S N C (h N [6 ~ U~4 O 0 N r M L ~c C U N N C N L {Q~ L N N d ,~ V w.~ w~ ~` M r I' L. I' ~/~ LL ' '!! .,~ ~ ~ 'il"r LL 5.. ~? C ~ C (~ ': ~ ` ~ N .... ~ Ri ' >, m '; O ~ a ._ E ~ w ~ ', ~ ~~ t~ ', N ~ '' L (~ U ~ '' m S2 v .~.~ C {J) cQ Y AID \° O } O N N O tt ~ d' ~ N O I` ~ ~}' M M } ~ ~ ~ ~ M C`7 C'M } CO I~ M M ~ O ~ ~ ~ ~ ~ } ~ d' N N ~ ~ ~ } d; ti N ~ ~ ~ ~ M 0p ~ Cfl Cfl CO LL b c~ co rn d co cd cfl O CO O ~ O N O O O ~ O Cfl O ~ O N O O • ~ .'~ ~ ~ ~ a~ C~ a~ ~ m ~ ~ m U C (O Q a~ c~ a O 0 N T M L .Q N ~+ ~ ..~1 ~ ~_ ~ M C y .~ r LL 0 • .~ ~ N ~ _ ~ _ N `~~. N N ~ ~ A O ;~ '~°+ a ~ ti LLJ (~ ~ Q~ ~ N _ ~/ ~ L ,~ '' U ~ ~ (~ m ~ U Q +~ F.. Q C \° 0 0 O a• U r/> N•~ ~ ~ =s ~' o~ w 0 a c 0 H n U o ~ ~ 0 J n~a~ pow y N N O N `- c 0 c~ N ~ ~ ~ a c0 O C r CCU ~_ Y N M ~ N O 00 t` O ~ '~ M N ~ O m m m a O O N r M L Q~ U rr N ~„~ N .D C "'r ~ •w L (~ ~ N O ~ /ya O CO .~.+ N .~ V 's+ V V a a V O .N S_ `~ N N _O a I W f~ Q~ I ~ m U .~ C ', (~ ', a-.+ Q M N N m (6 d ~ ~ ~ ~ (~. tn~~ ~+ O p (IJ L C C p W ~ ~ L N L N L L L ~I Z Z~~ IN M Z M~ a~ ~ M } Z M N dam' O ~ Z ~ a~ I ~ a~ ~ L_ In ~ ~ qq (~ (O C cd `~ ,... Q ` 3 M ~' E o ~ ~ '~ r~ I I ~ »-~ I o l o I X ~ (n (+~ o c ('~ o o m cv I ch '~ c J o ~ O O ~ O a O O O ~ ~ N a O O O Q. H N N p H U L L ~ L L ~ O O ~ L_ fn (n V ~ Q) L +~+ L ~ ~ Q) N •C N O ~ d ~ "O C ~ ~ O C _W ~ Q~ ~ W ~y ~ ~1 ~l ~ y--~ y-+ ~l ~ ~1 'sue U ~ Ln c ~ L(~ ( ..) ~+ ~ U c ~ ll~ ~ In ~ ~ c ~ In O I- X W ~ X W w X W ~ ~ L.L a ~ 3 O U C ~I ~ ~ ~ > O U a~ ~ c o Q a> o v~ ~ O O 'a U ~ U ~ O ~ O c ~ ~ ~ \° ~ c ... o O O > >, O N O ~ooY~ •.. - c co _ ~ p a o ~- ~ _ ~ o . a .~ ~~.o~~ ~ ~oQ o ~ y ~ ~ o ~,OO~p ~~~ N ~ o ~~~ Eon ~o ~a w ~ d ~ .~ ~QO ~ C j ~~ cn~ _ N ~ •~ N p- ~, ~~ ~a~.= co .S ~ 0 0 fq L7Ua , N Op Q,~ ~ C7 W (~ W ii m (n ATTACHMENT C ` FEBRUARY 28, 2005 COMMISSION MEETING CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Policy Options to Encourage Septic Tank Owners to Convert to the Public Sewer System SUBMITTED BY: Jim Hanson, ' DATE: February 17, 2005 BACKGROUND: A staff report was recently submitted to the City Commission outlining various options to amend the current policy to further encourage septic tank owners to convert to the public sewer system in a timely fashion. At that time, the Commission expressed an interest in several of the proposed policy options including guidance to amend those options before fmal approval. The Commission's direction was discussed with the city staff and this report is to present revised options that hopefully will meet the Commission's desires. Raise the cap of the loan amount; The Commission agreed that the present ~'^ $3,000 cap for loans should be increased to $5,000. Staff recommends that the cap be increased to $7,000 to allow for the increase in costs from contractors making the sewer conversions. Lower the interest rate; The City Commission agreed that the old 7% interest rate is too high for the current market and should be lowered. A discussion followed about an interest rate that would float based upon the market conditions. However, after review with staff it became apparent that we do not have the sophisticated capability to calculate floating interest rates on our accounts receivable system and would recommend instead that a basic rate be set at 4%. The current prime rate is 5.25% and the current federal funds rate is 2.25%. The 4% rate should cover the city's administrative cost in handling these loans and recover lost interest. Utility Cut Offs for Non-Payment; The Commission expressed an interest in separating the loans from the utility billing system so that customers would not be cut off for non-payment. To do this would require that separate bills be sent out to each customer increasing our administrative cost. Staff recommends giving the customer a choice of two loan options. The first would be a loan based on their utility bill with a 4% interest rate. These would be cut off for non-payment of either the loan amount or the regular utility charges. A lien would be placed on the house, but there would be no foreclosure for non-payment. The second option the AGENDA ITEM #8C FEBRUARY 28, 2005 customer would have would be loan secured only through a lien on their house with a 5% interest rate on a separate bill. Maximum Penalty; The subject of establishing an enforcement mechanism through the Code Enforcement Board with a fine that would be slightly above the estimated monthly cost a customer would have to install a septic tank and pay the sewer bill was recommended. Using a hypothetical customer with a $5,000 loan and a 5% interest for 10 years, the loan repayment would be $53.30 per month. Assuming the same customer would use an average of 7,000 gallons of water, their sewer bill would be $29.40 per month. The total of the two would be $82.70. If the Commission chose to establish a maximum fine that could be levied by the Code Enforcement Board of $150 per month, then it could accomplish the purpose of the discussion on January 24tH Maximum on Compoundin~Concerning the compounding issue, the maximum amount due for a loan for the same customer for $5,000 at a 4% interest rate would total to $7,454 over 10 years if no payments were made at all. If the value of the customer's house began at $150,000 and compounded at only 3% over the same 10-year period, then it would escalate in price to $201,587. While the loan would increase by $2,454 ($7,454 less the original loan amount of $5,000) the house would increase ~" by $51,587. Given the 4% interest rate, there does not appear to be a need to cap the amount to be compounded because the value of the house will go up faster than the loan. Other incentives; CDBG funds are budgeted in the current year in the amount of $40,000 for assistance for income eligible families. A substantial portion of the CDBG funds for FY OS-06 will also be allocated to septic to sewer conversions, although there is some question about how much money will be available after the federal budget is adopted. Once the final financing and enforcement incentives are adopted by the City Commission, staff will attempt to contact each of the homeowners that will be up for replacement this year under the current schedule by phone or in person. A strikethrough and underlined version of the policies as proposed above is attached for your review. BUDGET: Budget implications of the various scenarios were outlined in the staff report presented at the January 24, 2005 meeting (copy attached). RECOMMENDATION: The Mayor and Commission should consider if any further amendments to the proposed financing plan should be made. When a final plan is acceptable, then the City Commission should adopt the amendments by AGENDA ITEM #8C FEBRUARY 28, 2005 resolution. Placing a cap on the maximum fines by the Code Enforcement Board will require an ordinance. ATTACHMENTS: (1) Proposed amendments to the financing incentives resolution adopted June 12, 2000 (2) Staff Report on Septic to Sewer Conversion Options presented at the January 24, 2005 Commission Meeting r AGENDA ITEM #8C FEBRUARY 28, 2005 ~~ City of Atlantic Beach, Florida Septic Tank Conversion Assistance Policy Kevised Mandatory Conversion from Private Septic Systems to the Public Sewer System The following information is provided as an outline of the City's policies to accommodate those property owners that are required to convert from a private septic system to the City's public sewer system. These policies may be amended or modified by the City Manager as needed. Property Owners affected will be informed by certified letter, from the City Manager, of the requirement to connect to the public sewer system. If assistance is requested, Property Owners will be advised to contact the Public Works Department, during regular working hours (7:30am to 4:30pm, Monday thru Friday). "I'he Public Works Department can assist in determining what needs to he donc_includin~cost estimates and permits needed. ifi7TrT.rrc7issize ~1,; .. +., nLo +L.o °i Livia, vu+i •~" ,...b .,~ ...., l~ ~ cn +~~ ~ ivriv=v`Pir~'rc-r„ro ~ "ro ~ T'TinTl rmur-P + ..+;„ „l, .Y.L.o „mil R tl~o ~~,-.,..«;~+o .,o ;+~ ci~i'ii.c' °~ci'v'v°~: ~rtr-ae~ting-~srriertaa~ . ~ +~, v o..+., n.,,„o,.~ ..,r,,, ~ « „ ~~„„ ..,eta ~;~_o +~.o r;+., ' ~ mow,,.,..: ...... _ . _ _ .., - ______ .. ---- ---- = - - -o +1, +L. !~'+ •;lv~rri-vii°cr-cm~-iis.Ti~canc~~orircc~ ~'crorr~ ~ .~ For those Property Owners who for any reason would like financial assistance with the conversion, the City is prepared to enter into voluntary assessment agreements to finance the cost of the conversion. "fhe City will also consider the applicant's eligibility for Community Development [31~~ck Gran_t_t~unds f~~r their particular situation. (SEE FINANCING) , .~..g...., AGENDA ITEM #8C FEBRUARY 28, 2005 Conversion from Private Septic System to Public Sewer System Public Assistance Policy The following policies ~il~l- fie- are adopted in conjunction with the City Commission's adoption of Ordinance 80-00-61. All Property Owners required to convert from a private septic system to the City's public sewer system will be notified by certified letter of the program and of its availability t+~+~ i1,.' ,,,".".'~~"~1~-att>~hf~+~+-~• ~t-e~i-n~~~ ~lior to the deadline l~>r their res~L~ti~,~. ~„~-1~=,,,~~-~- 1---- - --t ----- conversion. The City will also make an attempt to contact the property owner directly to discuss the options available to them in an effort to encoura e the property owner to proceed with the elimination of their septic system. 1':x°,`1 L,<, +4,o D,~~o,~, n~i'~Pr~-}}A~2-Efty-~'~l~l-~aSri~JC-i-iriz~v~li-rirr~~pu+cv~ ~2. m., ter..;+,,.ao .,~+L.o „ .,~,;+,~v.ur.+ .....,, .,~ . iaiaa..a.a, ~,~~~~. v~ , ~,y~,il .,,J,a;+; .,1 GO% ,,.1.., ~+,..,+; ~ 1,' 1. 'll la rl + +1, D ..+. µ` ~3. The-P. o,.+ , n::.,e...,ill i.o .e....c+;,.o ,,,,+l,o i.:a 1.+ a ~ >, a +1, v'1:.., ~ j ... .. vv b;< aava+ vi aaiv vial ~arill };aya__t~2.. +:~.,, + oou ,. ~,. .:+4~,1«.,. . +1, 1' +' ..t......,, cv-Pr" .... .,a ~, .....~ uiuv. siic. (}~. No contracting work may proceed without approved permits and no work is to be performed without the payment of all fees. ~'~te-~-i~~~~l-e€€e~~,.:.,,< i c>c~ >~>r~v ~ ~rrrur nn>r >rrv ~ AGENDA ITEM #8C FEBRUARY 28, 2005 ~5. _The Public Works Inspector will he a~ ai lahle to answer any questions for homeowners hefi~re. during and alter construction, provide key inspections, and arrange inspection by the Building Department. ~6. __The Building Department will be responsible for the final inspection. ~7. For Properly Owners who are not on City water, a City water meter is to be installed on the private well and the Property Owner must agree to grant access for reading this meter as a basis for billing sewer services. -1--1-8. The Property Owner will pay $85 for the water meter installation. The meter will remain City property. ~9. The Building Department will be responsible for retaining all documents related to the conversion in the permanent building files as a matter of public record. a_-_:_-11). The final inspection report will be copied to the Finance Department for entry into the Utility Billing system and the Miscellane~~iis IZecei~ able ti~stcm as needed.. 1 1. The Property Owner or Tenant will be charged for sewer service beginning in the following month. AGENDA ITEM #8C FEBRUARY 28, 2005 Conversion from Private Septic System to Public Sewer System Financing Policy For those property owners that want financial assistance, the City will loan the funds to the property owners in the form of a voluntary assessment for those that are required to convert from a private septic system that meet the eli ig bility criteria. ''~~"~~The eligible property owner will possess the following qualifications: The Property Owner must currently be on a private septic system with public sewer available. 2. The Property Owner must either: 1) be an existing City water customer, or, 2) allow a City meter to be installed on the Property Owner's private well as a basis for billing sewer volume at the property owner's expense. 3. The applicant must be the Property Owner. 4. The Property Owner and the tenant must be current on all outstanding amounts owed the City. For those property owners that qualify, the City offers the following 4:1. Application for Assistance: The City will enter into a Voluntary Assessment Agreement with the Property Owner on the basis of an application process. This process is intended to assure that the Property Owner is fully educated on the process and that they agree to the terms and conditions of the assessment. :~?._ __ Amc~unt__ All expenses related to the conversion from a private septic tank to the public sewer system are eligible to be included in the assessment cip tc~ ~7.000.~>i~-c~~~r- • , AGENDA ITEM #8C FEBRUARY 28, 2005 >.__The City will agree to the Voluntary Assessments with the following terms and conditions: ~-:l . _The Property Owner has the option of choosing any length term in g ~6-muntla increments up to 10 years. 2. Interest Rate: The total voluntary assessment will include 5% simple interest compounded monthly. The interest rate will be 4% simple interest compounded monthly if the property owner agrees to have the assessment attached to the utility At the time of application, the applicant will have an option of including the payments due on the utility bill. Selectin tg his option allows the city to bill and collect in the same manner as the current utility bill. This will mean that monthly deadlines are imposed for each payment and late charges and cut-offs for nonpayment will be enforced. As stated above, the City will charge a reduced interest rate of 4% for those that select this option. Payments will be due on the location's water and sewer utility whether or not the property owner is the occupant lneanin~ that landlords and tenants need to address this issue between themselves. For those property owners not willing to agree to monthly payments on the utilitybill, the city will send monthly statements separately with interest accruing at 5% on the monthly outstanding balance. 7 D.,.,.Y.v,,+~ . ,; 11 4,0 ,7„0 . .;*1, +l,o .. ,..o.h., 1.,...,*:.,,, (~`;t.,'~ . ,~+or era ~ r l,;ll , wii°ct13G'~i-vi-nv~tl3~irope~t~7vrixc-i rrttte-vccupcl:~t. Tl,o .,to .~,.~ a~~ ~3. The City will place a lien on the property for the frill amount of the charges with interest tier duration of the outstanding balance. "I'he lien will be required to be paid in full_il~th_e_prg~~crty is sold."l_I~te_c_T~st cif iilin~? the lien will be included in the lien and payable to the City. ti TL.o +.~t.,l V,~l,,,,r.,«., A ~~o~~..,o,~,r . ,; 11 : .,L,.lo '70% ~ ..lo ;,,to,-opt ~iE'r~-=yr'iri-v2-ii6-p~izf9F--pirj=nz „+~ T T„~,.L,o,a„lo,l ., „ram . ,;11 l,a o.,+orl 1,.,.,.o„o,- .,.T;,,r+„-,o„+~ +,. *l,o ., 00 0„+ . ,; 11 ,~oo.a •., L,o o ..t~i_ , AGENDA ITEM #8C FEBRUARY 28, 2005 4 Tl, D o,.r~. n.,..,v,...;ll l,o rv roa +„ ., Go% ~,F+t,o +~.+.~Ll...l.,,,...o ~ ~ a.,.,.., ~,..~. ~~ }--}. _The City Manager, or his designee will be authorized to sign the agreements "(~}(~ A~t-~~~t+~t~ _}}~<~ti~}~t=E}(1k} r AGENDA ITEM #8C FEBRUARY 28, 2005 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Policy Options for Requiring Septic Tank Owners to Convert to the Public Sewer System SUBMITTED BY: Jim Hanso __ DATE: January 14, 2005 BACKGROUND: A short report was made at the January 10~' commission meeting that the five-yeaz timetable for delayed enforcement of the State requirement to connect to the City's sewer system was to expire in May of 2005. You asked to see a list of options to further encourage those owners to convert to the city system. This report is to provide those options and seek guidance from the Commission as to which if any should be prepared for adoption. First,. a brief history of the city's septic to sewer policies is in order because any policy decisions made must consider not only the group of 53 septic tank owners for which the timetable is expiring this yeaz as well as many others that will be in similar situations in future yeazs. Florida State Law requires septic tank owners to connect to a publicly owned sewer system within one yeaz after the availability of that system In 1999, there were 279 septic tank owners with public sewer accessibility in Atlantic Beach. Septic tanks can often create serious environmental concerns, particularly if they aze located in close proximity to shallow wells used .either for irrigation or drinking water. However, the cost to convert from a septic tank to the City sewer system is usually several thousand dollazs and can often impose a major financial impact on property owners. With these factors in mind, and after considerable public discussion, the Mayor and Commission adopted an ordinance in May 2000 delaying the City's enforcement of the state law. Septic tank owners were sepazated into two groups; those with assessments for installation of water and sewer lines that they were currently paying and those without assessments. For those with assessments, the timetable for the delay of enforcement was to be one yeaz after the expiration of their assessment. There were three groups with assessments which expire between December 2006 and November 2011. The second group was those septic tank owners with no assessments. These were given five years to connect (until May 2005). The City Commission also adopted by resolution a set of financial incentives to encourage the septic tank owners to convert to the City's sewer system as soon as possible. These included loans at 7% simple interest with a 10 year maximum term. For the first year of the program, . AGENDA ITEM #8C FEBRUARY 28, 2005 ;~ the maximum amount of the loan was not Gaped, although thereafter there was to $3,000 limit. City staff also offered various assistance to the owners in finding plumbers, getting quotes and otherwise managing the process of conversion. After adoption of the ordinance and resolution, letters were sent to each of the septic tank owners to explain the City's new policies. Follow-up letters have recently been sent to those who aze on the five-yeaz timetable. The program has been very successful so far in reducing the number of septic tanks in use from 279 to 169.. Only 53 of the remaining 169 aze on the five-yeaz schedule, There will be an additional 116 septic tank customers required to convert to City sewer system in future years. There are seven options identified for the financing incentives as well as one recommendation on how to go about enforcing the state law as follows; 1) Do nothing more than the current program which allows for a loan up to $3,000 with a rate of 7%. The average cost for the septic Zo sewer conversion, including the City's tap and impact fees, is usually over $4,000 per household. For this reason, and because ' ' '•the 7% rate is higher than one could currently get on a second "` mortgage, very few of these loans have been made in the last .... 'couple of yeazs. Unless interest rates increase so that the 7% rate becomes more attractive, we could anticipate that not very many people would take this program in the future except those who may have credit problems and cannot obtain other fnnding. There would be relatively little impact on the City's budget. 2) Lower the interest rate; a lower interest rate would encourage more people to use the City's financing program We currently earn about 2% on the City's invested money. An initial 3% interest rate would reasonably be estimated as the City's "cost" for the loans anticipating that there is some administrative costs that should be recovered. Mazket interest rates may go up and the City could take on substantial risk by setting a flat rate of 3%. Setting an indexed rate at either prime +1 % or the City's current rate on investments +1% would be a fair way to lower these rates for both the City and our customers. The "worst case" budget impact to the City would be if all 169 of the remaining septic tank owners were to use the city's loan process and over $500,000 could be loaned out and paid back in monthly installments over ten years. The conversion cost includes the City's sewer impact fee of $1,250 so over $200,000 would immediately be returned for a net out-of- pocket amount of about $300,000. 3) Raise the cap on the loans; If most of the septic tank conversions run in the $4,000 to $6,000 range, then raising the maximum loan to accommodate these higher costs makes good sense. This would. AGENDA ITEM #8C FEBRUARY 28, 2005 probably only be done if the previous option to lower the rate was also implemented. The maximum financial impact of this, using the same 169 customers and a loan amount of $5,000 each would amount to initial loans outstanding of approximately $845,000. After the impact fees described in the last option, the net would be $634,000. The most probable scenazio for the number of loans would be far less. 4) Raise the term .of the loan up from ten years. This is a possible way to minimize the financial impact on the customers. By - spreading the payments out longer, the monthly payment would be lower much the same as the difference between a 15 yeaz and 30 year loan on a house. The financial impact to the City's budget would be similar to the estimates in the previous two options, but .the balance outstanding would run for a longer time. 5) Use CDBG Funds; The City has used block grant funds for eight income eligible owners in the past. Realizing that the five-year timetable for the first group was upcoming, and with many of these living in the CDBG eligible area, the budget this year was set at $40,000 for assistance in this azea. The budget impact is that we ,' . "•have $40,000 less to utilize in other CDBG eligible projects. .~~ 'Loan with Lien on Home; The current financing program requires loans to be paid on monthly installments on the customer's utility bills. This allows for the City to cut off water and sewer service if the bills go unpaid. A different option would be to issue loans with separate payments. Liens could be placed on the homes and the homeowners could be given the option of either making regular payments or making no payments at all until the house is sold. The homeowners could minimise their cost by paying only the regular monthly sewer bill and delaying the loan repayment until the house is sold. The City would have to agree to wait for payment until the property changes hands. In this scenazio, the financial impact in total dollazs could be the same as listed in previous options, but the amount of time that the loans would be outstanding could be much longer. To see that the City does not lose money in the process, and because of the long-term nature of this option, it is suggested that the interest rate be indexed as described in option #2 above. 7) Personal Contacts; Letters have recently been sent to the remaining 53 customers whose timetables expire this May, City staff has only had personal contact with 17 of those. Once the City Commission has made decisions on the final policy changes and enforcement, personal contacts with the remaining owners may be beneficial. Enforcement; Enforcement of City ordinances as set forth in the Code is handled by the Code Enforcement Board which has the AGENDA ITEM #8C FEBRUARY 28, 2005 authority to impose fines of up to $250 per day as long as the violation continues. One philosophy for setting the amount of the fine for failure to convert would be to set fines that equal or slightly exceed the amount that a customer would otherwise pay for the loan from the City plus the cost of the regular sewer service. In this way their penalty for failure to convert would be as much or more than it would cost to connect to the sewer system The Commission could request cooperation from the Board in writing or prepare limits in the enabling ordinance. ,~ BUDGET: Budget implications. of various scenarios have been outlined above. RECOMMENDATION: The Mayor and Commission should consider the various alternatives suggested and instruct staff which of these, or others, you would like to see adopted. Once those instructions have been given, then amendments to the enabling ordinance and/or resolution will be prepared. ATTACHMENT: 1) Ordinance 80-00-61 dated May 22, 2000 .2) Resolution 00-09 adopted June 12, 2000 ATTACHMENT D FEBRUARY 28, 2005 COMMISSION MEETING February 22, 2005 MEMORANDUM TO: The Honorable Mayor and Members of the City Commission FROM: Jim SUBJECT: City Manag~r's Report Electrical Increase from JEA; A staffrepresentative from the JEA has estimated that the additional cost to the City of Atlantic Beach for the most recently approved electric rate increase ~,,.,,, will be $6,163 per month for a total of just under $74,000 per year. This equals to a 14% increase in the city's total power cost. Because this is considerably more than can be absorbed in some of the city's department budgets, increases will be added to the next mid-year budget adjustment ordinance for the Commission's consideration. Atlantic Boulevard Medians; A considerable effort has been made over the last couple of years by city staff and contractors to maintain and improve the looks of the ends of the Atlantic Boulevard medians. Specifically, the lantana and aztec grass have been affected by various parasites and have often not looked as good as desired. In a recent meeting on site with representatives of the city and Trim-All (the city's maintenance contract for the medians) it was decided that an alternative should be tried which should reduce maintenance and improve the looks. In coming weeks, the Aztec grass will be replaced at four of the ends (at the Seminole Road and Sailfish intersections) with lorapdelum; a small, flowering bush. The amount of lantana will also be reduced to an area that is easier to replant. If this new planting scheme is well received, then the other median ends can be similarly upgraded in the coming year.