10-05-94 v . CITY OF ATLANTIC BEACH
SPECIAL CALLED MEETING
6:00 PM, October 5, 1994
AGENDA
Call to order
1 . Authorize staff to solicit proposals for the services of a
financial advisor to recommend regarding options for funding
capital improvement projects
2. Authorize purchase of service pins for retiring employees
3. Any other business
Adjournment
MINUTES OF SPECIAL CALLED MEETING OF ATLANTIC BEACH CITY COMMISSION
HELD IN CITY HALL AT 6:00 PM ON WEDNESDAY, OCTOBER 5, 1994.
Present: Lyman T. Fletcher, Mayor
Suzanne Shaughnessy
J. Dezmond Waters, III, and
Robert G. Weiss, Commissioners
And: Kim D. Leinbach, City Manager
James R. Jarboe, Deputy City Manager
Ann Meuse, Finance Director
Maureen King, City Clerk
The meeting was called to order by Mayor Fletcher.
1 . Authorize staff to solicit proposals for the services of a
financial advisor to recommend regarding options for funding
capital improvement projects
Jim Jarboe distributed an overview of Capital Outlay Financing
Needs for a five-year period, along with estimated costs, totaling
approximately $20 million, copy of which is attached hereto and
made a part hereof. He felt it would be in the city' s best
interests to hire a financial advisor who could assess the needs so
the city could move ahead with any necessary borrowing while the
rates are still low. He felt it would be best to continue to
lease/purchase equipment as the city had done in the past. - He
indicated that even if the City Manager was authorized to seek
proposals from financial advisors, the City Commission would make
the decision regarding hiring the financial advisor and also would
decide which projects should be undertaken.
Discussion ensued and the Mayor noted that the Section H bonds
would be paid off next year and funds would than be available for
paving. To assist the City Commission, he suggested that projects
be listed individually, in priority order, with costs and
descriptions, and if possible, to have this information for the
next commission planning session. Commissioner Shaughnessy also
asked that staff provide information regarding how the projects
would be funded if the city did not borrow the money.
In further discussion it was felt advertisements should be placed
in the Wall Street Journal and Atlanta Constitution as well as the
local newspapers. It was felt the advisor should be someone who
had knowledge of the national market and who would be unbiased
regarding any action the city might take.
Commissioner Shaughnessy moved to accept the recommendation of
staff and authorize Requests for Proposals (RFP's) for a financial
advisor and instruct staff to prepare an estimated cost and source
of revenue to pay for such advisor, and further instruct staff to
Page Two
Minutes - Special Called Meeting
October 5, 1994
prepare a preliminary inventory of proposed capital improvement
projects. The motion was seconded by Commissioner Weiss.
Commissioner Waters expressed concern at the estimated cost of the
proposed projects. He indicated he was not aware that the picture
was so bleak. Following further discussion, the question was
called and the motion carried on a 3 - 1 vote with Commissioner
Waters noting nay.
2. Authorize purchase of service pins for retiring employees
The Mayor indicated he felt the city should recognize the four
employees who were retiring, two of whom had been with the city for
more than twenty-five years. He suggested that the service pins
which had been requested in the budget might be appropriate.
In further discussion it was pointed out the vendor now required
that the initial order be for at least thirty-five items, bringing
the initial order to over $2, 000.00. which was felt to be
excessive. Commissioner Weiss indicated he felt the pins were a
good idea but he felt the cost should be no more than $75 . 00 each.
Following further discussion, it was suggested that staff prepare
resolutions and shop for suitable gifts for the retirees, to be
presented at the commission meeting on October 24, 1994.
Commissioner Weiss moved to develop a method of recognizing
employees for service to Atlantic Beach. The motion was seconded
by Commissioner Shaughnessy and was unanimously approved.
3. Any other business
Mayor Fletcher reported the plans and specifications for the
activity building in Jack Russell Park were complete and had been
forwarded to the Parks & Recreation Advisory Board for review, and
the project should be ready to bid out in the near future.
Commissioner Shaughnessy indicated she had a problem with 6:00 PM
meetings. Discussion ensued regarding the number of commission
meetings which had been held and it was consensus that the
commission should try to have fewer and more productive meetings.
Following further discussion it was decided to have planning/
workshop meetings on the first and third Monday of each month and
if Special Called Meetings were required, to try to schedule those
meetings, also, on the first and third Monday of the month.
Commissioner Weiss suggested that an effort be made to start
meetings on time and end them, if possible, by 10: 00 or 10: 30 PM.
r
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Minutes - Special Called Meeting
October 5, 1994
There being no further business to come before the City Commission,
the Mayor declared the meeting adjourned at 7:30 PM.
Awi
/ Lyman T. F etcher
Mayor/Presiding Officer
ATTES T:
102 ,
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Maur n King
City ClGrk
• CAPITAL OUTLAY FINANCING NEEDS
OVERVIEW: When the City elected a limited financing plan for water
and sewer projects based on a twelve-year term, all of the needed projects
could not be funded. In addition, other proposed projects such as the
Beach Ave. Project, have become a problem and will continue to become
more serious the longer they are delayed. The present water and sewer
revenue may allow for estimated borrowing of an additional $2,000,000 if
the existing loan is not refinanced. The City's needs over the next 5 years
for water & sewer will greatly exceed that amount by approx. $8,000,000.
Also, large general government needs such as refinancing of City Hall and
paving streets need to be considered if the City decides to borrow funds.
These issues need to be addressed by next year.
Borrowing funds for large scale projects is a difficult process at best. It
takes considerable knowledge and expertise. Our Finance Director has
recommended that we should consider hiring a Financial Advisor. The
Advisor would work closely with her staff in evaluating the City's options
for the City's capital funding needs as stated in the Fy 94/95 Budget.
STAFF RECOMMENDATION: Authorize the City Manager to advertise
for a financial advisor through an RFP process. Final selection of the
Financial Advisor shall rest with the City Commission. No increases in
rates or taxes will be considered as part of the proposed recommended
financing program.
ESTIMATED FINANCING NEED FOR FIVE YEARS: Each of the
subject area below use separate pledges for loans because of their different
revenue sources. Other capital needs such as equipment and possible park
development are needed over the next five years. Other methods of
funding such as leasing for equipment and grants for parks will be
considered for these needs.
Available Additional
FY 94/95 Needed Total
Water and Sewer 6,464,854* 10,715,000 17,179,854
Street Paving 765,000 765,000**
Storm Water 120,000 1,964,000 2,065,000
City Hall Refinancing 700,000 700,000
* Includes borrowing $2,000,000
** $252,000 additional than previously est.