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06-16-86 v AGENDA CITY OF ATLANTIC BEACH SPECIAL CALLED MEETING JUNE 16, 1986 Call to Order 1. Appearance by representatives of Jax Utilities Management to discuss with the City Commission possible extension of contract for operation of the Buccaneer Water and Sewer District 2. Committee report from Commissioner John Morris relative to recommendations on the hose drying tower in the proposed Public Safety building 3. Action by the City Commission to approve budget amendments 4. Any other business Adjournment MINUTES OF THE SPECIAL CALLED MEETING OF THE ATLANTIC BEACH CITY COMMISSION HELD AT CITY HALL ON MONDAY, JUNE 16, 1986 AT 7 :15 P.M. Mayor Howell called the special meeting to order at 7 :15 p.m. for the purpose of considering certain matters in connection with the operating contract between Jax Utilities Management and the City of Atlantic Beach for operation of the Buccaneer Water and Sewer District; Committee reports on the design of a new Public Safety Building , and any other matters needing action. Those present were Mayor William S. Howell, Commissioners Robert B. Cook, Sr. , Glenn A. Edwards, William I. Gulliford, Jr. , and John W. Morris, Jr. ; City Manager Richard C. Fellows, Acting City Attorney John Dickerson, and City Clerk Adelaide R. Tucker. Mr. H. R. James, President of Jax Utilities Management, Inc. and his associates offered for discussion their proposed 86/87 budget. Items discussed in detail were: the fact that Buccaneer Sewer & Water District had 910 current active customers, they had 608 cut-offs. The possibility of increasing the cost of $15.00 for cut-on and cut-off fees was proposed by Commissioner Morris. No action taken. Mr. James commented they had approximately $5,000 in bad debts which was a little over 1% and was a very good performance in the utility business. Overall the budget increased from $273,500 to $328,320 or $54,820. Of the increase $22,500 was electricity and $10,100 was insurance. Mr. James was asked what insurance coverage he had projected for $18,100. He replied that covered general liability, vehicles, workmen's comp. , and an umbrella policy, which was an extension of the general liability policy. Last year they had an umbrella policy of $5,000,000. but had reduced it this year to $2,000,000 to reduce some of the costs. The coverage was on Buccaneer with the City of Atlantic Beach as co-insured. Mr. James offered the suggestion of asking JEA to transfer the bills into the name of The City of Atlantic Beach and simply mailed to them. Since the city is the owner of the system, they probably should not be paying the 5% tax. Commissioner Gulliford asked how they felt about the future relative to the projected numbers that were established for five years down the road. Mr. James said probably the projected numbers were reasonably accurate. They were just a little premature, but he said within two years they would be on track with the projected growth. Mayor Howell asked if the city should arrive at an agreement with Oak Harbor to bulk treat their sewage and perhaps master metered water also, would it have any affect on their contract or require some mid-term negotiations. Mr. James said yes, it definitely would change numbers and the total cost of the operation would go up making a definite budget increase. Commissioner Gulliford asked if they would give the city a specific bid on the impact of Oak Harbor and their subsequent cost increase at some point in mid-term. The subject of Oak Harbor was discussed in detail. PAGE TWO MINUTES JUNE 16, 1986 Following discussion, it was agreed Mr. James will prepare a proposal on the increase as soon as possible. Mayor Howell expressed concern over the fact the contract presently did not provide for services to Oak Harbor. Commissioner Gulliford expressed the opinion the contract should so state, if it did not already, that the contract between Jax Utilities and the City of Atlantic Beach covered that service area known as Buccaneer Sewer & Water District. Then if the city should take in other areas, negotiations would have to be held. Commissioner Morris objected to "within the confines" as what would happen if the city asked Jax Utilities to take in 50 or 60 customers in North Atlantic Beach. Mayor Howell explained than number of additional customers was in the projected growth. Commissioner Gulliford moved to award the contract for operation of the Buccaneer Water and Sewer District to Jax Utilities for another year. Also ask that we address the electrical billing situation and if possible, allow the city to pay the actual electric bills and thereby save the sales tax. If so, Jax Utilities will back out the budgeted $70,500 and the city will pay the actual electric bills. Commissioner Morris seconded the motion. Mayor Howell asked if anyone would care to make a substitute motion to give Jax Utilities the Atlantic Beach system to operate. The substitute was not offered. Under discussion before the vote on the original motion, Commissioner Gulliford stated he would like to see a little more track record before considering an award to operate the Atlantic Beach system. Secondly, he was not sure the timing would be appropriate with all the expansion of our system and the renovation, etc. He felt we should stabilize our system and then maybe pursue that option. Mayor Howell suggested they consider looking at it by fiscal 1987/88. Following discussion, the question was called and the motion carried unanimously. 2. Committee report from Commissioner John Morris relative to recommendations on the hose drying tower in the proposed Public Safety Building. Commissioner Morris reported the Committee met at 10:00 a.m. on Friday, May 30, 1986 in the City Council Chambers. Present were himself, Mayor Howell, and City Manager Fellows. Chief Royal was absent. After a thorough discussion of the pros and cons of drying versus not drying hose, and where to locate the tower the committee recommended unanimously the hose tower stay and will be moved slightly west. Commissioner Gulliford moved for the Committee's report and recommendations be approved and that Gee & Jenson be authorized to proceed with the final design. The motion was seconded by Commissioner Morris and carried unanimously. PAGE THREE MINUTES JUNE 16, 1986 3. Action by the City Commission to approve budget amendments Before presenting Resolution 86-10, Mayor Howell inquired about budget adjust- ment in the Sewer Department - deducting $13,622 from a municipal loan and putting it into equipment when we do not have a municipal loan. He asked how they could spend money they did not have. Mr. Fellows explained they were using the city's funds from Capital Improvements not used last year, and the budget adjustment was only a paper transfer. Mr. Royal explained that was the way the original budget was set up. $35,000 was budgeted for a tractor based on obtain- ing a municipal loan. That was one of the things they financed. He was merely taking it away from the General Fund and placing it in the Sewer Account. Mr. Fellows said one of the reasons the loan had not gone through was the interest structure. Mayor Howell said the loan could be finalized within the next two weeks. Mayor Howell presented in full, in writing, proposed Resolution 86-10, a Resolution transferring certain monies between funds. Commissioner Gulliford moved for passage of Resolution 86-10. The motion was seconded by Commissioner Cook and carried unanimously. Mayor Howell advised the Commission of receipt of a letter from JEA relative to the frequency of the outages occurring in Atlantic Beach as the result of salt spray intrusion. Jacksonville Electric Authority advised that after extensive research, it was determined the best alternative would be to reinsulate the overhead system, utilizing a specially designed insulator manufactured for that specific purpose. The project was completed on April 11, 1986 at a total cost to the JEA of $159,567.00. Mayor Howell said if there were no objections, he was going to hold the Public Hearing on the dog ordinance first on the agenda. There were no objections from the Commission. He also advised he was preparing information for Public Hearings to be called, perhaps three or four, on annexation such as legal questions, bonding questions, and what affect various things were going to have. He felt the Commission should let everyone in the city know, and those residents that would be coming in, know what they can expect. There being no other business to come before the Commiss'.n, the Mayor declared the meeting adjourned. .i- , i Liam s. H well Mayor/Presiding Officer ATTEST: Adelaide R. Tucker City Clerk RESOLUTION NO. 86-10 A RESOLUTION TRANSFERRING CERTAIN MONIES BETWEEN FUNDS WHEREAS, the City Charter of the City of Atlantic Beach requires that the City Commission approve all budgetary increases and transfers from one fund to another, and WHEREAS, the nature of budgetary systems and those day to day decisions affecting such budgetary systems require adjustment from time to time, NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Atlantic Beach, that the attached Budget Adjustment No. 86-5 be approved for the 1985-1986 Budget. Adopted by the City Commission, June 16, 1986 * * * * * * * * * * * * / William S. H.well, Mayor, Presiding Officer Approved as to Form and Correctness: P � • / C aude L. Mullis, City Attorney CERTIFICIT!OPf I certify this ta be a true and correct • copy of the record in my office. ATTEST: WITIJESSETII my hand and official sect of the City of Atlantic Beach, Florida, this the day of 19 , Adelaide R. Tucker, City Clerk City Clerk .•Jj,; CITY OF •LI i .; r� Fe4 c( — 7wzcct u 716 OCEAN BOULEVARD P.O.BOX 26 1. ATLANTIC BEACH,FLORIDA 32233 i �► M�� ;� TELEPHONE(904)249-2395 June 16, 1986 Attached are corrected budget adjustments. Please substitute these for the ones in your agenda packet. Harry E. Royal BUDGET ADJUSTMENT B/A NUMBER: 86-5 Date: 6-16-86 FUND: General Fund USE SEPARATE FORMS FOR EACH FUND AMOUNTS MUST BE IN WHOLE DOLLARS ACCOUNT ACCOUNT TITLE EXPENDITURE REVENUE ADD DEDUCT DEDUCT ADD 01-384- 1001 Municipal Loan 13,622 01-541-6400 Equipment 13,622 EXPLANATION: To transfer budget authority to sewer department for tractor to be used in sludge operations INITIATED BY Richard C. Fellows DATE: 6-16-86 COMMISSION ACTION REQUIRED: Yes DATE RECEIVED: BUDGET ADJUSTMENT B/A NUMBER: 86-5 Date: 6- 16-86 FUND: 41 USE SEPARATE FORMS FOR EACH FUND AMOUNTS MUST BE IN WHOLE DOLLARS • RETAINED 'EARNINGS ACCOUNT ACCOUNT TITLE EXPENDITURE NaMMXMAX ADD DEDUCT DEDUCT ADD 41-596-6316 Improvements other than building 53,000 41-596-6319 Improvements other than building 122,000 41-596-6317 Improvements other than building 173,000 41-596-6318 Improvements other than building 82,000 41-272-03 Ret. Earn. - Cap. Imp. 256,000 41-272-04 Ret. Earn. - Unrestricted 174,000 EXPLANATION: To increase budgetary authority for DER and EPA projects (Pumping stations, outfall line, new and existing plant improvements) due to mroe of projects being completed in current fiscal year than prior INITIATED BY Richard C. Fellows DATE: June 16, 1986 COMMISSION ACTION REQUIRED: Yes DATE RECEIVED: BUDGE!" Al)J US I ILNT IS/A NUMBER: ' 86-5 __- pate: 6-16-86 • FUND: General Fund uSE SEPARATE FORMS FOR EACH FUND AMOUNTS MUST BE IN WHOLE DOLLARS ACCOUNT ACCOUNT TITLE ' EXPENDITURE REVENUE • ADD DEDUCT DEDUCT ADD • 01-512-1200 Salaries • 2,000 01-511-2100 FICA 143 01-512-2200 Pensions • 280 01=517-1200 Salaries 800 01-517-2100 FICA 60 01-510-4900 Other current charges 3,283 • • • • • • EXPLANATION: To provide- budget for salary increase for City Manager and City Clerk • retroactive to their anniversary dates • • [NITIATED BY Richard C. Fellows DATE: 6-16-86 =MISSION ACTION REQUIRED: YeS DATE RECEIVED: BUDGET ADJUSTMENT Il/A NUMBER: 86-5 • Datc: 6-16-86 FUND: USE SEPARATE FORMS FOR EACH FUND • AMOUNTS MUST BE IN WHOLE DOLLARS • • EXPENDITURE REVENUE • ACCOUNT ` ,.� ACCOUNT TITLE � 'i:. ADD DEDUCT DEDUCT ADD 13-596-31001 Professional Service 12,000 { 13-596-6316 Improvements other than Building 267,000 13-569-6319 Improvements other than Building 154,000 13-334-1000' DER Grant • 433,000 • • • • EXPLANATION: To increase budgetary authority for DER projects (Pumping station replacement and outfall line) due to more of projects being completed in current fiscal year rather than prior fiscal year [NITIATED BY Richard C. Fellows DATE: June 16, 1986 , ;OIIMISSION ACTION REQUIRED: Yes DATE RECEIVED: BUDGE! ADJUSTMENT I1/A NUMBER: g��---- hate: 6-16-86 FUND: EPA Grant USE SEPARATE FORMS FOR EACH FUND • AMOUNTS MUST BE IN WHOLE DOLLARS ACCOUNT - I ACCOUNT TITLE L . I EXPENDITURE REVENUE • ADD DEDUCT DEDUCT ADD • 14-596-3100 Professional Services 8,000 14-5966300 Improvements other than Building • 100,000 14-596-6300 Improvements other than building 108,000 14-'331-3100 EPA Grant 216,000 • • • EXPLANATION: • To increase budgetary authority for EPA projects (new plant improvements and existing plant modifications) due to more of projects being completed in current fiscal year rather than prior fiscal year [NITIATED BY Richard C. Fellows DATE: 6-16-86 =MISSION ACTION REQUIRED: YeS • DATE RECEIVED: