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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 Page Three 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 , 7 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.