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12-10-90 v CITY OF ATLANTIC BEACH REGULAR MEETING MONDAY, DECEMBER 10, 1990 AGENDA Call to order Invocation and pledge to the flag 1. Approval of the minutes of the regular meeting of November 26, 1990 2. Recognition of visitors: 3. Old Business: A. General discussion of Beach Avenue water and sewer improvements (Andy May, G&J rep.) 4. Consent Agenda: A. Discussion and related action requesting approval to increase Change Order #1 for the new city hall in the amount of $3,231 (Tom McNett, - Clements, Rumple, Goodwin rep.) B. Discussion and related action relative to the contract with the City of Jacksonville relative to the Community Development Block Grant (Stan Reigger) C. Request to carry over leave to 1991 (Maureen King, City Clerk) 5. Committee Reports: A. Report and recommendation relative to Bid #9091-1 - Renovation of Wastewater Plant and Storage Tank (Commissioner Edwards) B. Report and recommendation relative to Bid #9091-2 - Housing Rehabilitation (Commissioner Weldon) 6. Action on Ordinances: A. Public hearing and final reading of Ordinance #15-90-6 relative to water and sewer revenue bonds (Robert Freeman, City's Bond Counsel - Squire, Sanders and Dempsey) B. Introduction and first reading of Ordinance #95-90-48 relative to adopting a Comprehensive Plan for the City of Atlantic Beach 7. New Business: A. Public hearing relative to Ordinance #80-90-43 regarding Stormwater Management Utility (Jim Scholl, CH2M Hill) B. Public hearing relative to Ordinance #80-90-44 regarding Stormwater Management Utility Fees (Jim Scholl, Ch2M Hill) C. Public hearing for Use by Exception for an alcoholic beverage license for Amoco D. Public hearing for Use by Exception to construct a telephone tower at 251 Levy Road, filed by Peter and Delia Rodriguez E. Public hearing for Use by Exception for automotive/truck service garage at 10-20 Donner Road, filed by Fred Lewis F. Report on DeWees Crossover (Robert Kosoy, Public Services Dir.) 8. City Manager reports and/or correspondence: 9. Mayor to call on City Commissioners, City Attorney and City Clerk: Adjournment MINUTES OF THE REGULAR MEETING OF THE ATLANTIC BEACH CITY COM— MISSION HELD IN CITY HALL AT 7:15 PM ON MONDAY, DECEMBER 10, 1990 V V O O PRESENT: William I. Gulliford, Jr. , Mayor T T Robert B. Cook E E Glenn A. Edwards D D John W. Weldon, Commissioners AND: Kim D. Leinbach, City Manager M S Alan C. Jensen, City Attorney 0 E Maureen King, City Clerk T C I O Y ABSENT: Adelaide R. Tucker (Excused) NAME OF ONEN COMMRS. N D S 0 The meeting was called to order by Mayor Gulliford. The invocation, offered by Commissioner Cook, was followed by the pledge to the flag. 1. Approval of the minutes of the regular meeting of November 26, 1990 Cook x Motion: Approve minutes of the regular meeting of November Edwards x x 26, 1990 Weldon x x Gulliford x In discussion before the vote, Commissioner Weldon requested that his vote on the motion to authorize a half day holiday on Christmas Eve be corrected to reflect agreement with the motion. The question was called and the minutes were approved as corrected. 2. Recognition of visitors: Kathleen Russell, 2117 Beach Avenue, requested permission for guests at a function at her home on December 16, 1990, to park on Twentieth Street and Seminole Road. After brief discussion, approval was granted so long as driveways were not blocked. She also inquired into the status of acquiring deeds for the north end of Beach Avenue and City Attorney Jensen said he would report be prepared to report on this at the meeting of December 13, 1990. Terry Holt, 724 East Coast Drive, complained of bicyclists not wearing reflective clothing or having lights on their bicycles. He also complained of large trucks using East Coast Drive and requested better street lighting. It was pointed out state law requires lights on bicycles at night and the Police Chief said they had worked with children to promote bike safety. The City Manager was requested to look into the possibility of prohibiting trucks on East Coast Drive. Jim Pitts, 8089 Hunters Grove Road, developer for Mallard Cove, Otter Run and Marsh Oaks, said he was planning a fourth project in the Buccaneer District which he projected would be ready to hook up by September 1991. He said he had received a letter from the city in September 1989 which indicated sewer service would be available. Since that time he has been told that capacity is not available. He explained the need for his proposed project and asked whether it PAGE TWO V V MINUTES OF DECEMBER 10, 1990 COMMRS. MSYN would be possible to install a package plant or divert some of the flow from the Buccaneer plant to Atlantic Beach plant. The City Manager explained the package plant at Sea Gardens, which is projected to be on line by June 1991, would help but that additional capacity would be needed. Alan Potter, 374 Second Street, said that with the addition of a surge tank and aeration equipment the capacity of the present tank could be increased to handle in excess of 1.3 MGD. He explained that a surge tank would equalize the flow over a 24-hour period. He felt the addition would be a simple matter and would cost approximately $250,000. Mr. Potter invited city personnel to visit his Blanding or Kingsley plants both of which were successfully using surge tanks. The general consensus was for city personnel to visit Mr. Potter's plants and proceed as quickly as possible. Mayor Gulliford told Mr. Pitts he would try to report back to him on the matter by January 1. Rosalee Bryant, 162 Camelia Street, said residents of Camelia Street, between West First and West Third Streets, had been told they could pay to have culverts instead of swales on their properties in Section H. She indicated three property owners wished to do so and asked permission to pay this amount in installments. Mayor Gulliford said he planned to report later in the evening on a meeting with Section H residents and this matter would be discussed further at that time. 3. Old Business: A. General discussion on proposed Beach Avenue water and sewer improvements Andy May of Gee & Jenson Engineers, reported they had met with city personnel and had finalized cost estimates for the project. The project has been submitted to HRS and DER for permitting review. He presented preliminary assessments of $50.00 per front foot for water, $79.00 per front foot for sewer and $2.00 per front foot for fire protection for the area north of Eighteenth Street. Mr. May explained the assessments were considerably higher than those in the Section H area because of infringement onto the right-of-way by property owners and the resurfacing which would be required. Mayor Gulliford suggested the city consider paying for the repaving and assess the property owners for only the water and sewer lines, as was done in Section H. After further discussion it was the general consensus a special meeting should be scheduled to meet with property owners on this matter. 4. Consent Agenda: A. Approval of Change Order No. 1 representing an increase in the amount of $3,231 in the contract for construction of anew City Hall PAGE THREE V V MINUTES OF DECEMBER 10, 1990 COMMAS. MSYN B. Approval of aunt to Contract No. 5692-3 with the City of Jacksonville relative to C mmnity Development Grant C. Approval for City Clerk to carry over unused leave balance to 1991 With Reference to Iter 4B, Stan Reigger explained this was a continuation of an existing contract and would provide for an additional $98,100.00 of which 80% would go toward rehabilitation of homes. Cook x Edwards x Notion: Approve passage of Consent Agenda Weldon x Gulliford x No discussion before the vote. The motion carried unanimously. 5. Committee Reports: A. Report and recommendation relative to Bid No. 9091-1: Renovation of Wastewater Plant and Storage Tank Commissioner Edwards reported seven bids had been received and upon review of the bids, it was the recommendation of the Awards Committee the bid of Eagle Tank Service of Daytona Beach be accepted. Notion: Accept the bid of Eagle Tank Service of Daytona Cook x Beach for renovation of wastewater plant and water Edwards x x storage tank in the amount of $31,999, in accordance Weldon x x with the specifications of Bid No. 9091-1 Gulliford x In discussion before the vote Commissioner Weldon inquired regarding the large range in prices bid but Commissioner Edwards said he could offer no explanation. The motion carried unanimously. B. Report and recommendation relative to Bid No. 9091-2: Housing rehabilitation Commissioner Weldon reported five bids were received for the rehabilitation of three houses. After review of the bids it was the recommendation the bid of Staco Construction be accepted for the rehabilitation of the Williams home at 25 Donner Road, and the Cross home at 151 Ardella Road, and that the bid of Trump Constructors be accepted for rehabilitation of the Peterson home at 76 Ardella Road. Motion: Accept the bid of Staco Construction in the amount Cook x x of $28,094.00 for rehabilitation of homes at 25 Edwards x Donner Road and 151 Ardella Road, and the bid of Weldon x x Trump Constructors in the amount of $20,350.00 for Gulliford x rehabilitation of a home at 76 Ardella Road No discussion before the vote. The motion carried unanimously. PAGE FOUR V V MINUTES NAME OF DECEMBER 10, 1990 COMMRS. MSYN 6. Action on Ordinances: Ordinance No. 15-90-6 - Public Dearing AN ORDINANCE OF THE CITY OF MANTIC BEACH, FLORIDA, PROVIDING FOR THE REFUNDING OF CERTAIN OUTSTANDING REVENUE OBLIGATIONS OF THE CITY; PROVIDING FOR THE ISSUANCE OF WATER AND SEWER REFUNDING REVENUE BONDS, SERIES 1990, OF THE CITY TO FINANCE THE COST THEREOF; PROVIDING FUR THE PAYMENT OF SUCH BONDS; PROVIDING FOR THE RIGHTS, SECURITY AND REMEDIES OF THE REGISTERED OWNERS OF SUCH BONDS; AND PROVIDING AN EFFECTIVE DATE Mayor Gulliford presented in full, in writing, Ordinance No. 15-90-6 on final reading, said ordinance having been posted in accordance with Charter requirements. He opened the floor for a public hearing and invited comments from the audience. Alan W. Potter, 374 Second Street, Atlantic Beach, spoke in opposition to the proposed refunding and presented in support of that position a memorandum dated December 7, 1990, to the Mayor and City Commission, along with supporting documents totalling 74 pages. Mr. Potter explained at some length his concerns itemized on page two of the memo. Memorandum dated December 7, 1990, is attached hereto and made a part hereof. Mr. Potter questioned whether some of the improvements to the Buccaneer plant, referenced D-13 in the aforementioned documents, were necessary. He also referred to the new money issues proposed for 1991 and 1992 and expressed the opinion the 7,000 utility customers would not be able to bear such a financial burden. He also referred to the proposal to add a new water well in the Buccaneer water distribution system and said that while there may be some small amount of drawdown at the existing wells there was no need for an additional well. Mr. Potter also pointed out that when the city purchased the Buccaneer system, a commitment was made to the citizens that no money from the Atlantic Beach system would ever go to support Buccaneer. For this reason also, he felt the three outstanding bond issues should not be consolidated. Mayor Gulliford expressed concerns about the money the city had spent for studies which were not then utilized. Robert Freeman of Squire, Sanders & Dempsey summarized the proceedings to date regarding the refinancing and outlined the proposed timetable for the refinancing. He said he was unable to respond to Mr. Potter's comments regarding whether certain capital improvements were necessary and Bill Armentrout from Gee & Jenson Engineers, was not in attendance to speak to this. He presented a written response to those points raised by Mr. Potter which related to his area of expertise. Copy of said document is attached hereto and made a part hereof. PAGE FIVE V V MINUTES NAME OF DECEMBER 10, 1990 COMMRS. MSYN Mike Burton said upon review of the city's outstanding debt it had been their recommendation the city refinance the Oak Harbor, Buccaneer, and State of Florida bonds. He said current interest rates were low so it would be to the city's advantage to refinance at this time. It was his opinion that by refinancing and spreading the payments over a thirty year period the refinancing would not, in essence, cost the city anything, and the city would be in a position to meet its debt by levying only a small utility rate increase next year. Mr. Burton presented a utility rate analysis, copy of which is attached hereto. After a full discussion on the matter, Mayor Gulliford suggested the public hearing be continued at the special meeting on Thursday, December 13, 1990. The City Commission concurred in this suggestion. At this time Mayor Gulliford called on Tom McNett of Clements, Rumpel, Goodwin for a status report on the construction of the new City Hall. Mr. McNett reported that it appeared that work on the administration building was on schedule but that the construction of the Commission Chambers was about two months behind schedule. He said the contractor had indicated that he will be able to able to get back on schedule and complete the project on time. Commissioner Weldon inquired why computer cables were being laid between the new buildings and the police station and it was explained that this was planned for future use and that it was more economical to do this work in the construction stage of the building. B. Ordinance No. 95-90-48 - First Reading AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH, ADOPTING A COMPREHENSIVE PLAN IN ACCORDANCE WITH THE PROVISIONS OF CHAPTER 163, PART II, OF THE LAWS OF THE STATE OF FLORIDA, PROVIDING AN EFFECTIVE DATE. Mayor Gulliford introduced Ordinance No. 95-90-48 in full, in writing on first reading. Motion: Approve passage of Ordinance No. 95-90-48 on first Cook x reading and set for public hearing on Thursday, Edwards x x December 13, 1990 Weldon x x Gulliford x No discussion before the vote. The motion carried on a 3 - 1 vote with Commissioner Cook voting nay. Commissioner Edwards reported the Northeast Florida League of Cities has scheduled a meeting on Wednesday, December 12, 1990, regarding Comprehensive Plans and were seeking input regarding aspects or elements of the plans to which the cities are most opposed. He requested the City Commissioners to pass their comments to him before that date. PAGE SIX V V MINUTES NAME OF DECEMBER 10, 1990 COMMRS. MSYN 7. New Business: Ordinance No. 80-90-43 - Public Hearing AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 22, UTILITIES, ADDING NEW ARPICL,E IV TO ESTABLISH A S'IOIMMTER MANAGEMENT UTILITY PROGRAM TO PROVIDE GENERAL PROVISIONS, DEFINE THE CUSTCMER BASE, CREATE AN ENTERPRISE FUND, PROVIDE FOR BILLING AND COLLECTION, DEFINE SEVERABILITY, PROVIDING AN EFFECTIVE DATE Mayor Gulliford presented Ordinance No. 80-90-43 in full, in writing, said ordinance having been posted in accordance with Charter requirements. The Mayor opened the floor for a public hearing and invited comments from the audience. W.J. Ryszykow, 535 Royal Palms Drive, said taxes were being raised from the federal to the local level and felt that an addition charge of even $3.00 per month would be a hardship, especially for people on a fixed income. Deloris Reinikainen inquired whether revenues could be used for other purposes or whether they would be used solely for drainage purposes. Mayor Gulliford explained the revenues would be restricted to drainage related matters only. Others expressing opposition to the matter were Ken Scudder, 388 Eleventh Street, and Della Koenig, 780 Redfin Drive. Alan Potter, 374 Second Street, advised that Florida Statutes Chapter 403 provides that any entity may discharge into the waters of Florida so long as the water being discharged is not of a quality less than that of the receiving stream. He suggested the city start testing water samples in an attempt to verify that the city is not discharging pollutants greater than the receiving stream. If this could be ascertained, it would appear the city would not need to do anything. Mayor Gulliford pointed out that the city needed to develop a master drainage plan and provide better maintenance on drainage ditches. At the Mayor's suggestion, it was agreed to continue the public hearing at the special meeting on Thursday, December 13, 1990. B. Ordinance No. 80-90-44 - Public hearing AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 22, UTILITIES, ADDING UNDER ARTICLE IV A SECTION TO ESTABLISH STORWITER MANAGEMENT UTILITY RATES, TO PROVIDE GENERAL PROVISIONS, DEFINE Fri: CATEGORIES, ESTABLISH A _PIE SCHEDULE,E, SFa' ENFORCEMENT AND PENALTY PROCEDURES, ESTABLISH AN APPEAL PISS, DEFINE SEVERABILITY, AND PROVIDING AN EFFECTIVE DATE Mayor Gulliford presented Ordinance No. 80-90-44 in full, in writing on final reading, said ordinance having been posted in accordance with Charter requirements. The Mayor opened the floor for a public hearing and invited comments from the audience W.J. PAGE SEVEN V V MINU'T'ES NAME OF DECEMBER 10, 1990 COMMRS. MSYN Ryszykow said he wished to confirm that businesses such as Pic N Save would also be required to pay the utility fee and Mayor Gulliford clarified that business would pay the fee but it could be claimed as a business expense. It was agreed to continue the public hearing on this ordinance until Thursday, December 13, 1990. C. Public hearing on a Use by Exception filed by Amoco Oil for the sale of beer and wine at 1211 Mayport Road Mayor Gulliford reported that the Community Development Board had considered the matter and had recommended approval. He opened the floor for a public hearing and invited comments from the audience. Charles Mann, 323 Arlington Road, represented Amoco Oil. He said the company had overlooked a previous zoning change and were seeking the exception to compete with other like businesses in the area. There being no further comments from the audience the Mayor declared the public hearing closed. Motion: Grant approval for use by exception to allow the Cook x x sale of beer and wine at the Armco station at 1211 Edwards x x Mayport Road Weldon x Gulliford x No discussion before the vote. The motion carried unanimously. D. Public hearing on Use by Exception filed by Peter and Delia Rodriguez to construct a telephone tower at 251 Levy Road Mayor Gulliford reported that the Community Development Board had considered the matter and had recommended approval provided approval was also granted by the Navy at Mayport. He opened the floor for a public hearing and invited comments from the audience. David Edwards of the law firm of Mahoney, Adams & Criser spoke on behalf of Peter and Delia Rodriguez and BellSouth Mobility. He said the tower would improve the quality of reception on cellular telephones and felt it would be compatible with other businesses in the area. He also had contacted same of the neighboring residents and had received no objections. Cook x x Motion: Grant Use by Exception to Peter and Delia Rodriguez Edwards x x to construct a telephone tower at 251 Levy Road Weldon x Gulliford x No discussion before the vote. The motion carried unanimously. E. Public hearing on Use by Exception filed by Fred Lewis for automotive repair at 10-20 Donner Road Mayor Gulliford presented the matter to be considered and the City Manager introduced George Worley, new Community Development •Tpnoaddp sng gaaw pInOM sguanpuoup am. JT aas O . uOsaapuv 'ayJ gopguoo og pagoaaTp SPM AOSO. •aY1 •saoanosag Tpang2N go guaur3apdaQ am og aTgpgdaooP aq pInoM subTsap agpuaagIP asagg uoTuTdo sTq sum gI •bulaagloT abpanoosTp 04 St Aq TTpapupg am peTbup oSTp u6Tsap ags •gaaj aaagg Aq saeAossoao ounp agg go uolgoas paxMPas g;-8£ al-14 aaMoT pinoM goTgM sguauq sn[pp pegsabbns go sagogaxs poquasaad Aosox aogoaaiu saoTAaag oTTgnd saanossoao eunp gapaq anuaiw SOOMaa uo gaodag •,3 •ATsnourrupun paTaa2o uolgour aqI •agOA alp aao;aq uoTSSnosTp oN x PaO3TITrO suoTgppualunoaa x x uoPTaM quasaad rum ao ?Q 1.ua doTanaa A -Funww J x sae" q ua r qp '0661 'ET aamaoaa go buTiaau x x xocO an TT qun uoTgdaox-a Aq asn Ogg uo uoTgop aagaa :uoTgoyl -pumas spqmaxp STM uoplaty aauoTssTuuJ pup uoTgau sTq Mazpg3IM Nom aauoTssTuum uoTssnosTp aam an; aaggv •uo gdaoxa Aq osn am. axonaa ao puadsns Apui uoTssTuiuoj Ag-FD au} '£g-tZ uoTgoaS mTM aZXPptODDP uT gpgg quo pagurod oSTP uasuar •ays •gspm apo 'saTpdaa aouTur pup aoupuagulPui uolgpgs aoTAaaS oqnNd :L (q)TTT-ttZ uoTgoaS pup i (saTPdaa aaTTpag aogopag-Turas burpnTouT gou) 'abpapb aoTAaas xonag/aATgourognp puP sasnogaapM TuTui buTpnTour you 'buTSnogaapM pagTurt :6 PuP 8 (0)0TT-tZ Jo Tpnoaddp puaunuooaa og paaa6P ATTpaauab ppq papog guowdoTaAau Aglununuop ags „•paubTsap SPM buTpTTnq am uoTgM aoO osn Aup„ aoj uolgdaoxa Aq osn P pagsanbaa ppq sTMaZ -ay,' ;no paguTod uasuar Aauaoggy* ATID x uopTaM ppog aauuoa OZ-OT x NP0D qp aTpda" aAlgouolxnp aoj uoggdaoxa Aq asn waist :uopoyi •pasoTo buTapaq oTTgnd am paapToap aoAPys am 'aaggpw agg gSuTPbp ao ao; axods asTa auo ou aouTS •uo gdaoxa alp gupab og uoTssTuauop AgT3 am paxsp aq uo gsanb am go no SPM buluozaa JT gnq pauozaa Agaadoad agg anpq og paxsp ppq aq ()BP SIPOA aUOS pTPS ag •paubTsep SPM buTPTTnq eqg goTgq .zoJ sassauTsnq go sadA. am MoTTp you scop buTuoz guaaano agp asnpoaq saowogsno Aupui gsoT ppq ag gnq buTuoz pTo am aapun „g„ TPloaausuop pauoz SPM Pa1P am. pTPS STM •ays -smog buTxaoL buTpapbaa pagsTTgPgsa aq suoTgTpuoo gPgg paxsP 'OATaU Is-MIPS S06 'bba'D ggng •aouaTpnP agg uroaJ sguaunuoo pagTAuT pup buTapag oTTgnd P aoj aooT; am pauado p10;ITTn9 aoAPW •papTAoad aq pInoM saopds burxapd apTsgno aaagg pup SaTolgaA ,To abpao0S aoopgno waag-buoT ou aq pTnoM aaagg gpgg suoTgTpuoo ggTM TpnoaddP papuaunuooaa ppq piP aaggpm STgg paaapTsuoo ppq pa2oH guaurdoTan0Q AgTunuanoD am pagaodaa AOTaOM • zw •A;To agg aoj ao400ITQ N A S LQ S�iL1iYd0� 0 6 6 T '0T H'aflWnII�Q 30 3Y�IXN SaL NIW A A S,HDIS JDVd PAGE NINE V V MINUTES NAME OF DECEMBER 10, 1990 COMMRS. MSYN 8. City Manager reports and/or correspondence: The City Manager reported he was working with the Parks and Recreation Director to develop a master plan for Donner Park. This plan will be presented to the City Commission and Community Development Board at a later date. The City Manager also reported he and Don Ford had been advised by electrical contractors of some ambiguities in the electrical fee structure. Some revisions will be presented to the City Commission for review at a future date. Catmissioner Weldon thanked Alan Potter for the time he had spent compiling the data regarding the city's proposed refinancing and future capital improvements. Mayor Culliford reported on the Christmas tree lighting activities and said the evening was a huge success. Mayor Gulliford presented Resolution No. 90-21 thanking Karen Moore for her contributions to the city during her three years of employment and wishing her good fortune as she moves to Alabama. Cook x x Notion: Approve passage of Resolution No. 90-21 Edwards x x Weldon x No discussion before the vote. The motion carried unanimously. Gulliford x Mayor Gulliford reported on a recent meeting which had been held with Section H residents. He said they had agreed to investigate the possibility of changing the direction of the flow of the drainage ditches on a two block portion of Camelia Street to a southerly direction to the existing retention area or to create a new pond for this purpose. Residents on Camelia Street could then culvert their entire front property line and, in view of the Christmas season, he asked the City Commission to consider deferment of payments. Cook x x Edwards x x Motion: Authorize payments to be deferred until 90 days Weldon x after installation of culverts Gulliford x No discussion before the vote. The motion carried unanimously. There being no further business to come .- ore th- City Commission, the Mayor declared the meeting .djourne• at 10:50 I William Gul if, Mayor/Presiding ATTEST: Maureen King, Cite • ( MEMORANDUM TO: Mayor and City Commission City of Atlantic Beach, Florida FROM: Robert 0. Freemen Squire, Sanders & Dempsey DATE: December 10 , 1990 RE: City of Atlantic Beach, Florida Water and Sewer Refunding Revenue Bonds , Series 1990 Correspondence of Mr. Alan W. Potter, Sr. regarding same We would like to respond to certain concerns and opinions raised by Mr. Alan W. Potter, Sr . in his letter to the City dated December 7 , 1990 . In reference to the numbered statements set forth on page 2 of Mr. Potter ' s letter: 1 . The City is not required under any existing provision of the City' s current bond issues to refund the outstanding debt. The City is permitted to advance refund the outstanding issues if it so desires . 2 . As to whether the debt service is being adequately handled by existing revenues , we defer to the rate study prepared by the City' s financial advisor. The three bond issues outstanding require the City to maintain rates sufficient to operate and maintain the respective systems as well as provide a certain coverage of debt service. The Buccaneer Bond ordinance requires a 110% coverage. The Oak Harbor Bond ordinance requires a 120% coverage. The loan from the State of Florida requires a 133% coverage. The City is required to satisfy each rate test separately for each bond issue. The proposed refunding bond ordinance requires a 110% coverage based on combined net revenues . 3 . As to the existence of "critical issues , " we would defer to the City ' s financial advisor and consulting engineer . From a federal tax law standpoint, the issuance of the refunding bonds in calender year 1990 would prevent loss of the City ' s "small issuer" status for calender 1991 with respect to the payment of arbitrage rebate to the United States Treasury if the City issues additional bonds in 1991 . 4 . Three parity bond issues could be issued under the three separate ordinances to finance improvements to the respective systems . This would involve three separate sets of issuance expenses , tripling the cost to the City. Under the refunding bond ordinance the City could consolidate its bond issuance by issuing one series of bonds to finance improvements for all three systems . 5 . The City would still incur costs associated with the rate study for each of the three systems if the refunded bonds are not issued . 6 . The existing bond issues , as well as the refunding bond ordinance, require rates sufficient for the operation and maintenance of the City' s systems . 7 . No "unjust reward" will be given to any existing bondholder. The payment of the redemption premium on the State Loan is required for redemption on the first allowable call date and is an industry standard which compensates the holder of a bond being redeemed early for the loss of tax exempt interest to the original maturity. There is no premium to be paid the holders of the Buccaneer Bonds or the Oak Harbor Bonds . 8 . The existing bond ordinance does not require the City to issue any additional bonds . The determination of the need for capital improvements and the method of financing such improvements rests with the Commission. 9 . As determined by the City ' s financial advisor, the City would be required to institute a greater rate increase if the existing bonds and covenants related thereto remain in place. In reference to the numbered items on Reference (C) of Mr. Potter' s letter: la. We defer to the City' s Finance Director. lb. See 2 . above. lc. The City would use revenues to pay for the cost of three separate rate studies for the three separate systems . Under the refunding bonds ordinance, only one rate study is necessary. - 2 - • t • ' ,fir..,e. & �y 2a. The proposed principal amount of the refunding bonds will not exceed $5 ,000 ,000 . The actual principal amount issued will be less than $5 ,000 ,000 . 2b. The increase in debt will depend upon the actual amount of bonds issued . Likewise the debt service savings will depend on the interest rates available on the sale date. 2c. The increase in outstanding principal amount will be attributable to the cost of issuance. The increase in principal amount is factored into the debt service savings estimates . 2d . The City should consider the overall savings as well as the advantages (or disadvantages ) of the combined revenue pledge to determine if the refunding is of benefit to the City and its residents . 3a. The "costs of sale" are required to be presented to the Commission prior to sale. The Underwriter is required to disclose his costs . 3b. We have no knowledge as to the financial arrangement of any party other than our firm. 3c. We defer to the City ' s financial advisor regarding these fees . 3d . All costs of issuance are generally paid by the issuer. 3e. Printed bonds will be available for closing barring any unforeseen printing delay. We have no information on what the transfer cost, if any, would be. The Debt Service Reserve Requirement is based on maximum debt service, not outstanding principal amount. 4 . If the refunding bond ordinance is not enacted, the City may have to issue three separate issues of parity bonds in order to finance improvements . The City could issue a subordinate bond issue using the combined surplus revenues . The City' s financial advisor could address the interest rate implications of subordinate issues . 5 . We have not reviewed the referenced document. 6 . We do not understand Mr. Potter ' s concerns . The Oak Harbor Bonds and the Buccaneer Bonds will be redeemed at par on the first allowable redemption date under the existing documents . - 3 - 1 ALAN W . POTTER , SR . 374 Second Street Atlantic Beach , FL 32233 CERTIFIED MAIL RECEIPT NO . P 411 435 618 RETURN RECEIPT REQUESTED December 7 , 1990 City of Atlantic Beach Atlantic Beach City Hall 716 Ocean Boulevard Atlantic Beach , Florida 32233 ATTN: Mr . William Gulliford , Jr. , Mayor - Commissioner Ms Adelaide Tucker, Commissioner Mr. Robert Cook , Commissioner Mr. Glenn Edwards , Commissioner Mr. John Weldon , Commissioner Subject : Proposed $5 , 000 , 000 . 00 City of Atlantic Beach, Florida Water and Sewer Refunding Revenue Bonds , Series 1990 Ref: (A) Resolution No . 90-19 (Adopted November 26 , 1990 ) (B) Ordinance No . 15-90-6 (Introduced November 26 , 1990) (C) Arguments in Opposition to the Refunding Revenue Bonds (Attached) (D) Schedule of Public Documents Reviewed (Attached) Dear Atlantic Beach Commissioners: Your consideration of factual data concerning Subject Bond Issue , referenced Resolution , and referenced Ordinance is respectfully requested . Also , for your consideration , I have set forth in Reference (C) , attached , specific arguments in opposition to the proposed bond issue . Additionally, your review of the several documents listed in reference (D) is requested . i MiiiMIMI i t $ iii City of Atlantic Beach December 7 , 1990 Page 2 ^ A summary of my concerns and opinions is: 11,111 1 . The existing bond issues are "in place" and do not require refunding . i 1 2. Debt service is being adequately handled by existing revenues . ' 1 MIIMMi 3 . No "critical issues" face the utilities systems that warrant hurried , ill-advised refunding . i4 . Parity bonds (or other debentures) can be issued under i — terms of the existing bonds . ' 5 . There are no financial team costs associated with maintaining the existing bonds . 11111 6 . Use of revenues for proper maintenance isin, ermitted • P fact mandated . mmE 7 . No "unjust reward" will be given to any present bond .1 holders . jai8. Adequate time is available to proceed wisely toward future needs . PM 9 . Unwarranted rate increases can be avoided . a iAs a long-term Atlantic Beach resident and citizen , I i � respectfully request that each City Commissioner VOTE TO REJECT (DEFEAT) the proposed $5 , 000 , 000 . 00 City of ill Atlantic Beach , Florida , Water and Sewer Refunding Bonds , Series 1990 . f Your favorable consideration of this submittal will be appreciated . 0 111 Respectfully, 11 1' W. Potter, Sr. AWP/amh • i CITY OF ATLANTIC BEACH ASSUMES: REFUNDING OF EXISTING DEBT IN 12/90 SCHEDULE 1 WATER AND SEWER RATE STUDY NEW MONEY BOND ISSUE IN 1990-91 , REVENUE SUFFICIENCY ANALYSIS NEW MONEY BOND ISSUE IN 1991-92 SOURCE:BURTON&ASSOCIATES NO NEW MONEY BOND ISSUE IN 1992-93 FILE:ATLRATE3 12/10/90 NO NEW MONEY BOND ISSUE IN 1993-94 NO NEW MONEY BOND ISSUE IN 1994-95 HISTORICAL PROJECTED 1985-86 198647 198748 1988-89 1989-90 1990-91 1991/92 1992-93 1993-94 1994-95 REVENUE SUFFICIENCY ANALYSIS: AUDITED AUDITED AUDITED AUDITED ESTIMATED BUDGET PROJECTED PROJECTED PROJECTED PROJECTED OPERATING REVENUES: WATER RATES AND CHARGES $497,122 $558,288 $580,509 $673,689 $645,704 $669,272 $776,804 $928,221 $976,973 $1,048,468 SEWER RATES AND CHARGES 1,181,858 1,385,529 1,469,774 1,711,486 1,695,634 1,713,596 1,988,918 2,376,603 2,501,428 2,684,483 TOTAL OPERATING REVENUES 1,678,980 1,943,817 2,050,283 2,385,175 2,341,338 2,382,868 2,765,721 3,304,824 3,478,401 3,732,951 OPERATING EXPENSES: WATER 483,407 435,597 511,425 491,932 578,798 732,492 744,700 804,840 906,279 980,466 SEWER 734,402 903,833 999,973 1,353,347 1,045,337 1,193,131 1,246,603 1,351,702 1,502,128 1,629,691 TOTAL OPERATING EXPENSES 1,217,809 1,339,429 1,511,397 1,845,278 1,624,134 1,925,623 1,991,303 2,156,542 2,408,407 2,610,157 OPERATING INCOME 461,171 604,388 538,886 539,897 717,204 457,245 774,418 1,148,282 1,069,995 1,122,795 INTEREST INCOME* 239,785 226,319 279,457 394,518 356,080 70,000 • 70,000 70,000 70,000 70,000 NET INCOME AVAILABLE FOR DEBT SERVICE $700,956 $830,707 $818,343 $934,415 $1,073,284 $527,245 $844,418 $1,218,282 $1,139,995 $1,192,795 ANNUAL DEBT SERVICE(MAX ANNUAL FOR FY 1990-91) $554,015 $556,684 $556,417 $629,261 S634,236 $793,852 $1,218,852 $1,218,852 $1,218,852 $1,218,852 COVERAGE 1.27 1.49 1.47 1.48 1.69 0.66 0.69 1.00 0.94 0.98 RATE PLAN: TOTAL ADDITIONAL REVENUE REQUIRED FOR COVERAGE @ 1.10,R&R AND CAPITAL OUTLAY $345,992 $496,319 $122,455 $200,742 $147,943 MINIMUM PERCENTAGE INCREASE IN RATES REQUIRED(ASSUMES RATE PLAN IMPLEMENTED IN PRIOR YEAR) 21.78% 17.95% 3.71% 5.77% 3.96% RATE PLAN (RATE INCREASE SHOWN IN FY 1990/91 MUST BE EFFECTIVE ON FEBRUARY 1, 1991; 21.78% 17.95% 3.71% 5.77%. 3.96% OTHER INCREASES MUST BE EFFECTIVE OCTOBER 1,OF THE FY SHOWN) COVERAGE WITH SYSTEM REVENUES 1.10 1.10 1.10 1.10 1.10 * INTEREST INCOME ADJUSTED IN FY 1990-91 THROUGH FY 1994-95 TO REFLECT REDUCTION OF FUNDS AVAILABLE FOR INVESTMENT AFTER FUNDING OF SYSTEM CAPITAL IMPROVEMENT PROGRAM PROJECTS IN FY 1990-91. • CITY OF ATLANTIC BEACH ASSUMES: NO REFUNDING OF EXISTING DEBT IN 11./90 SCHEDULE 2 WATER AND SEWER RATE STUDY NEW MONEY BOND ISSUE IN 1990-91 . REVENUE SUFFICIENCY ANALYSIS NEW MONEY BOND ISSUE IN 1991-92 SOURCE:BURTON&ASSOCIATES NO NEW MONEY BOND ISSUE IN 1992-93 FILE:ATLRATE3 12/10/90 NO NEW MONEY BOND ISSUE IN 1993-94 NO NEW MONEY BOND ISSUE IN 1994-95 HISTORICAL PROJECTED 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991/92 1992-93 1993-94 1994-95 REVENUE SUFFICIENCY ANALYSIS: AUDITED AUDITED AUDITED AUDITED ESTIMATED BUDGET PROJECTED PROJECTED PROJECTED PROJECTED OPERATING REVENUES: WATER RATES AND CHARGES $497,122 $558,288 $580,509 $673,689 $645,704 $669,272 $858,795 $1,011,481 $1,060,253 $1,131,748 SEWER RATES AND CHARGES 1,181,858 1,385,529 1,469,774 1,711,486 1,695,634 1,713,596 2,198,848 2,589,781 2,714,657 2,897,712 TOTAL OPERATING REVENUES 1,678,980 1,943,817 2,050,283 2,385,175 2,341,338 2,382,868 3,057,643 3,601,261 3,774,910 4,029,461 OPERATING EXPENSES: WATER 483,407 435,597 511,425 491,932 578,798 732,492 744,700 804,840 906,279 980,466 SEWER 734,402 903,833 999,973 1,353,347 1,045,337 1,193,131 1,246,603 1,351,702 1,502,128 1,629,691 TOTAL OPERATING EXPENSES 1,217,809 1,339,429 1,511,397 1,845,278 1,624,134 1,925,623 1,991,303 2,156,542 2,408,407 2,610,157 OPERATING INCOME 461,171 604,388 538,886 539,897 717,204 457,245 1,066,340 1,444,720 1,366,503 1,419,304 INTEREST INCOME* 239,785 226,319 279,457 394,518 356,080 70,000 * 70,000 70,000 70,000 70,000 NET INCOME AVAILABLE FOR DEBT SERVICE $700,956 $830,707 $818,343 $934,415 $1,073,284 $527,245 $1,136,340 $1,514,720 $1,436,503 $1,489,304 ANNUAL DEBT SERVICE(MAX ANNUAL FOR FY 1990-91) S554,015 $556,684 $556,417 $629,261 $634,236 $1,059,236 $1,484,236 $1,484,236 $1,484,236 $1,484,236 COVERAGE 1.27 1.49 1.47 1.48 1.69 0.50 0.77 1.02 0.97 1.00 RATE PLAN: TOTAL ADDITIONAL REVENUE REQUIRED FOR COVERAGE @ 1.10,R&R AND CAPITAL OUTLAY $637,914 $496,319 $117,940 $196,156 $143,356 MINIMUM PERCENTAGE INCREASE IN RATES REQUIRED(ASSUMES RATE PLAN IMPLEMENTED IN PRIOR YEAR) 40.16% 16.23% 3.27% 5.20% 3.56% RATE PLAN (RATE INCREASE SHOWN IN FY 1990/91 MUST BE EFFECTIVE ON FEBRUARY 1, 1991; 40.16% 16.23% 3.27% 5.20% 3.56% OTHER INCREASES MUST BE EFFECTIVE OCTOBER 1,OF THE FY SHOWN) COVERAGE WITH SYSTEM REVENUES 1.10 1.10 1.10 1.10 1.10 * INTEREST INCOME ADJUSTED IN FY 1990-91 THROUGH FY 1994-95 TO REFLECT REDUCTION OF FUNDS AVAILABLE FOR INVESTMENT AFTER FUNDING OF SYSTEM CAPITAL IMPROVEMENT PROGRAM PROJECTS IN FY 1990-91. ALAN W. POTTER , SR . 374 Second Street Atlantic Beach , FL 32233 HAND DELIVERED December 13 , 1990 City of Atlantic Beach Atlantic Beach City Hall 716 Ocean Boulevard Atlantic Beach, Florida 32233 ATTN: Mr . William Gulliford , Jr. , Mayor - Commissioner Ms Adelaide Tucker , Commissioner Mr . Robert Cook , Commissioner Mr . Glenn Edwards , Commissioner Mr. John Weldon , Commissioner Subject : Proposed $5 , 000 , 000 . 00 City of Atlantic Beach , Florida Water and Sewer Refunding Revenue Bonds , Series 1990 Dear Atlantic Beach Commissioners: In behalf of the City of Atlantic Beach , Florida , and , in behalf of the approximately 7 , 000 water and sewer utility customers of systems owned by the City, I have continued my positive efforts of identifying and resolving the physical and the financial difficulties therewith associated . To this end , I am pleased to advise the City Commission of the City of Atlantic Beach , Florida , the following: 1 . I have contacted an authorized representative of the four Buccaneer bond holders and have negotiated the following bond ordinance modification agreement : (a) Effective January 1 , 1991 , the mandated "Bond Reserve" requirement will be reduced from 1 . 25 to 1 . 10 of the current annual debt service . (b) Effective June 1 , 1994 , the interest rate on the then outstanding , unpaid bonds will be reduced from 9 . 00% to 7 . 50% (c) Effective June 1 , 1994 , the then outstanding , unpaid bonds will continue in force through the term of the bonds without prepayment by the City. City of Atlantic Beach December 13 , 1990 Page 2 2 . I have communicated with and obtained a letter of request for service from RANDCOR , INC . for water and sewer service for 200 residential units to be added to the Buccaneer Water and Sewer District Systems . This communication is confirmed by a letter from RANDCOR , INC . dated December 12 , 1990 . The letter establishes a date of March 1 , 1991 , for the payment of $285 , 000 . 00 in utility impact fees and administrative costs . 3 . I have communicated with the American National Bank of Jacksonville , and , I have obtained a letter of interest ( i . e . , a pre-committment letter) to provide a "line of credit" for funding water and sewer system improvements to the Buccaneer System. The amount of the committment I requested is $500 , 000 . 00 . The interest rate on any advanced funds is 7 . 00% This is predicated on tax-exempt municipal ( Buccaneer) Revenue Antic- ipation Notes associated with growth of the Buccaneer Water and Sewer System. The committment is based on the payment of impact fees to reduce principal and the payment of monthly revenues (subject to bond parity requirements) to pay interest on any debt . 4 . I have met with Mr. Bob Kosoy, your City Engineer , Mr . Harry McNally, your Buccaneer Utilities Superintendent and , Mr . Bill Armentrout , your consulting engineer. The significant and positive results are : (a) We are , collectively , in agreement that the improvements and expansion of the utilities is the important first interest of all . (b) We are , collectively, unable to understand or justify the $12 , 600 , 000 . 00 capital assessment schedule that has been prepared , presented and utilized by many persons in the difficult "bond issue" disputes before the City Commission of the City of Atlantic Beach , Florida . ' City of Atlantic Beach December 13 , 1990 Page 3 5 . In my opinion as an Atlantic Beach citizen (additionally justified by my professional experience ) only a few, limited projects are worth considering and accomplishing during the fiscal year ending September 30 , 1991 ; they are : A . Provide a new, 300 , 000 gallon (or larger) surge tank at the Buccaneer Wastewater Treatment Plant . B. Provide a new, 133 , 000 gallon Ground Storage Reservoir at the Buccaneer (Assissi Road ) Water Plant . C . Add either one or two "impeller bowls" to each well turbine ; change motors from 30 h . p . to 10 h .p . ; change motor starters and circuit breakers - all at the Assissi Road Water Plant . D . Provide new upper four feet , roof and aerator house to the existing Assissi Road Water Plant Ground Storage Reservoir . E . Construct a 12-inch (minimum) Sewage Force Main Extension from the "Crossroads-Eastside Sewage Pumping Station" to the Atlantic Beach Wastewater Treatment Plant . F . Investigate , identify and correct the mechanical equipment problems at the Atlantic Beach Wastewater Treatment Plant . (This has been an ongoing problem -- since new construction -- and must be promptly resolved) . G. Repair or replace the rusted , corroded , and deteriorated "upper portions" of each unit of the Buccaneer Wastewater Treatment Plant . On a positive and on-going basis , I am preparing a "standard" Request for Proposals , a " standard" Form of Proposal and a "standard" Form of Agreement to be utilized in the solicitation and selection of Consulting Engineers for any future work . ( Note : I have solicited the willingness to "Substitute" the above standard agreement for the poorly-communicative agreement now existing between the City and Gee & Johnson , Engineers) . City of Atlantic Beach December 13 , 1990 Page 4 Please understand and appreciate that , for the opportunities listed above , NO refinancing of the existing debt of the City of Atlantic Beach , Florida (as to the City , the Buccaneer, or the Oak Harbor Systems) is necessary. Please also understand that the only "costs" may be a loan origination fee of 1 . 0% to 3 . 0% on the American National Bank "Line of Credit" funding . In summary , if confirmed and completed , the above items will be of benefit to the City of Atlantic Beach and will obviate all bond refinancing and bond financing for the ongoing 3 - 10 year period . I appreciate the opportunity to be of service and benefit to my community. The positive net effect-benefit of my most recent efforts in behalf of our community will be : a . Reduced Buccaneer Bond Issue "Debt Reserve . " b . Reduced Buccaneer Interest Rate . c . Utility agreement and impact funding from RANDCOR , INC . d . Interim construction "Line of Credit" at the American National Bank ( i . e . , $500 , 000 . 00 at 7 . 00% ) . e . Clean , concise request for proposal , form of proposal and agreement for engineering services . f . Realistic construction and maintenance program for all of the utility systems of the City of Atlantic Beach , FL Your favorable consideration of the several opportunities herein is respectfully requested . Sincerely, Al W. Potter, Sr. Attach: RANDCOR , INC . letter American National Bank letter (RANDCOR INC.) 1025 ASSISI LANE ATLANTIC BEACH, Fl. 32 233 (904) 249-6447 FAX (904) 249-6605 December 12, 1990 City of Atlantic Beach 716 Ocean Boulevard P.O. Box 25 Atlantic Beach, FL 32233 RE: Wastewater treatment service for Mayport Crossing Apartments Gentlemen: During the last five years, I have developed three multi-family apartment projects totalling 472 units in the Mayport area of the City of Jacksonville, which are served by the Buccaneer Water & Sewer District of the City of Atlantic Beach. Last year, we purchased an additional parcel on Mayport Crossing Boulevard, which is zoned and is now in the process of being permitted to construct an additional 200 units. This project will also require service from the Buccaneer Water & Sewer Dis- trict. Fees and/or a letter of credit totalling $285,000 will be tendered to the City coterminously with the closing of the construction loan on or prior to March 1, 1991. In order to proceed with the necessary permitting and financing requirements, the City and the State of Florida Department of Environmental Regulation (DER) must execute certain documents declaring the future avail- ability of wastewater service at a specific date, which in my case would be September 1, 1991. Hopefully this letter will initiate the City to proceed with the planning, financing, and construction of these future improvements in order for the DER to execute this "dry line" permit as soon as possible. Mayport Crossing Apartments will be funded by a five-year construction/ mini-perm loan from NCNB National Bank of Florida and the proceeds from the sale of Low Income Housing Tax Credits to National Partnership Investments Corporation in Beverly Hills, California. These commitments should be executed within the next 60-75 days. The site for the development is in census tract #139.01, which is classified as a low- to moderate-income area and has been targeted for community redevelopment by the City of Jacksonville. The Mayport Crossing Apartments will not only fill a strong existing need for affordable housing REAL ESTATE DEVELOPMENT AND MANAGEMENT in this area, but will also be an attractive addition to the neighborhood. Hopefully, the City of Atlantic Beach will contribute to this project by increasing the capacity of the Buccaneer Water & Sewer District to meet our requirements. Very truly yours, -- James E. Pitts III JEP/cb Ame W American National Bank of Florida Bank® Post Office Box 10129 Jacksonville, Florida 32247-0129 December 13, 1990 Alan W. Potter, Sr. 6957 Lillian Road Jacksonville, Florida 32211 Re: The City of Atlantic Beach Dear Alan: Based upon our conversation of yesterday, please accept this letter as an "expression of interest" to consider a possible credit extension to the City of Atlantic Beach, Florida. American National Bank is always desirous of quality commercial credit relationships and we would be most interested in reviewing a complete credit request. Thank you again for your interest in American National Bank and also, please be advised that we have already taken into account the tax-free aspect of such a possible credit extension and with a maximum interest rate of 7.00%. I look forward to hearing from you soon. Sincere , • e E. McCorvey ssistant Vice President Commercial Loans cc. A. Curt Cunkle Assistant Vice President Atlantic Beach Office 2031 Hendricks Avenue • 5622 Beach Blvd. • 580 West Eighth St. •9716 San Jose Blvd. • 6615 Arlington Expressway 11683 San Jose Blvd. •9802 Baymeadows Rd. • 5665 Normandy Blvd. • Mayport Naval Station • 1031 Atlantic Blvd.,Atlantic Beach 6030 Fort Caroline Rd. • 7640 103rd St. • 1531-21 Monument Rd. • Lakewood Plaza • 11018-41A St. Augustine Rd. • 1978 Park Avenue,Orange Park Gainesville Offices: 1717 N.W. 13th Street • 7615 N.W. 8th Avenue • 4123 N.W. 16th Blvd.