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7-28-14 Special Called Meeting Agenda PacketCITY OF ATLANTIC BEACH CITY COMMISSION AGENDA July 28, 2014 SPECIAL CALLED MEETING AT 6:30PM Call to order 1. Courtesy of the Floor to Visitors 2. Action on Ordinances A. ORDINANCE NO. 80-14-85, Public Hearing and Final Reading AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, CREATING ARTICLE V, RECLAIMED WATER SYSTEM, ADDING SECTION 22-365 CHARGES FOR RECLAIMED WATER SERVICE, PROVIDING FOR AN EFFECTIVE DATE. B. ORDINANCE NO. 80-14-86, Public Hearing and Final Reading AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, ARTICLE II, AMENDING SECTION 22-30, PRIVATE FIRE PROTECTION SERVICE TO PROVIDE METHOD OF MONITORING FIRE LINE USAGE; TO PROVIDE FOR SEVERABILITY; TO PROVIDE FOR AN EFFECTIVE DATE. C. ORDINANCE NO. 20-14-127, Public Hearing and Final Reading AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30,2014, AND PROVIDING AN EFFECTIVE DATE. Adjourn If any person decides to appeal any decision made by the City Commission with respect to any matter considered at any meeting, such person may need a record of the proceedings, and, for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record shall include the testimony and evidence upon which the appeal is to be based. Any person wishing to speak to the City Commission on any matter at this meeting should submit a request to the City Clerk prior to the meeting. For your convenience, forms for this purpose are available at the entrance to the Commission Chambers. Every effort is made to indicate what action the City Commission is expected to take on each agenda item. However, the City Commission may act upon any agenda subject, regardless of how the matter is stated on the agenda. In accordance with the Americans with Disabilities Act and Section 286.26, Florida Statutes, persons with disabilities needing special accommodation to participate in this meeting should contact the City Clerk by 5:00 PM, Friday, July 25, 2014. 1 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM# 2A JULY 28,2014 AGENDA ITEM: Proposed Ordinance 80-14-85 for Establishing Reclaimed Water Rates SUBMITTED BY: Nelson VanLiere, City Manager Donna Kaluzniak, Utility Director DATE: May 29, 2014 (Revised) STRATEGIC PLAN LINK: Golf Course BACKGROUND: The Atlantic Beach Country Club, including the residential development is currently under construction. The City is also constructing the reclaimed water facilities to serve the golf course and new development. The City will be providing reclaimed water to both the golf course and to residences for irrigation. Attached is a summary and proposed Ordinance No. 80-14-85 for Reclaimed Water Rates, which will need to be in place soon. The reuse of reclaimed water has both environmental and regulatory benefits. It offsets the use of potable water, reducing the amount of groundwater pumped from the Floridian Aquifer. At the same time, the Water Management Districts are concerned about Minimum Flows and Levels at area lakes, springs and rivers. Utilities are being encouraged to increase the use of reclaimed water. In the City's case, our Consumptive Use Permit requires the City to provide reclaimed water to the new development and golf course. In addition, the St. Johns River Water Management District provided $442,000 in grant funding towards construction of the Reclaimed Water Facilities project. Per a study by the American Water Works Association, reclaimed water rates are typically set lower than the full cost of service. Potable water is less expensive to produce than reclaimed water, though of higher quality. Charging users the same or more for reclaimed water than for potable water would discourage its use. Therefore, the majority of utilities base their reclaimed rates on a market value that is less than the potable rate. This value also takes into consideration the environmental and regulatory benefits of encouraging the use of reclaimed water. The proposed rates are similar to the current Atlantic Beach water rates in several ways. They both have a base charge and a volume charge based on metered consumption. There are also separate rates for residential and commercial customers. This reclaimed water rate adds a third category; bulk customers. This is similar to the rate for reuse water established by JEA and Clay County. A summary of reclaimed water rates from both of these utilities is attached. For the proposed residential and commercial rates, the base charge per month is based on meter size and is proposed to be the same that the City currently charges for potable water sales. ACENOA ITEM fi2A JULY 28,2014 Per di scu ssion during the May 27, 2014 Commiss ion Workshop, the volume rate is pro posed as a charge of$1.67 p er thousand gall ons. Thi.s is calculated to be 75 percent of the cost o f potable w a ter for an average 12,000 gall on per month irri gatio n customer. (The 12 ,000 gallon per month fi g ure was obtained by averaging the consumption of irrigat ion meters in Selva Lakes and Selva Linkside, which arc most s imilar in s ize and nature to the lots propo sed fo1· th e new development). The proposed bulk rate of$0.30 per thousand ga ll ons is based on the average ofthc Clay Cou nty Utility Authority and JEA rates. These two uti li ties wou ld rep resent the market va l ue for bulk recla imed water in our area. Statewide Comparison According the Fl01ida Department of Enviromnenta l Protection's (DEP's) 20 13 Reuse Inventory, a total of70 utilities in th e state do not charge their reclaimed customers any fee. Of the 133 utilities that cha rge residential customers, the average charge per thousand gallons is $1.15 , with a range of $0.12 to $9.36. The 227 uti lities that c harge bulk rate fees average $0.82 per thou sa nd ga ll o ns, with a range of$0.1 0 to $3.14 BUDGET: A s the 180 homes are constructed, the City will begin receiving water and sewer impact fees as well as rev enues from th e reclaimed water system. Impact fees will total $934,200. Annual revenues from the new re c laimed fees are estimated at $63,000 per year. RECOMMENDATIONS: Place the Ordinance No. 80-14-85 on the June 9, 20 14 meeting for Introducti o n and First Reading. ATTACHMENTS: I. Pro pos ed Ordinance 80-14-85 2. Spreadsheet of Proposed Reclaimed Water Rates 3. Spreadsheet of JEA a nd CCUA Reclaimed Water Rates REVJEWED BY CITY MANAGER: ~t ty"' a.-, e{uy 2 ORDINANCE NO. 80-14-85 AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, CREATING ARTICLE V, RECLAIMED WATER SYSTEM, ADDING SECTION 22-365 CHARGES FOR RECLAIMED WATER SERVICE, PROVIDING FOR AN EFFECTIVE DATE. AGENDA ITEM# 2A JULY 28,2014 WHEREAS, the City is constructing a Reclaimed Water Facility and will be providing reclaimed water service to residential, commercial and bulk customers. NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that; SECTION I. Chapter 22 Utilities, of the Code of Ordinances of the City of Atlantic Beach, Florida is hereby amended to read as follows: Article V, Reclaimed Water System: Sec. 22-365. Charges for reclaimed water service. The reasonable rates, rentals, fees and other charges for the use of the services and facilities of the city reclaimed water system are hereby found and determined to be and are hereby fixed and established as follows: (1) Monthly Reclaimed Water base facility charges for customers inside the City: A monthly reclaimed water base facility charge will be levied upon each connection in accordance with the following: Residential All residential customers $8.97 Reclaimed water base facility charges for the commercial classifications are based upon the meter size and they will become effective as follows: Meter Size in Inches 5/8 or 3/4 $8.97 1 $11.22 1~ $22.43 2 $35.85 3 $71.73 4 $112.08 6 $224.17 8 $358.67 (2) Schedule of reclaimed water volume charges for customers inside the city: AGENDA ITEM # 2A JULY 28,2014 a. Residential and Commercial Units. There are hereby-established volume charges for residential and commercial prope1iies as follow: Residential, Cost per 1,000 gallons Commercial, Cost per 1,000 gallons $1.67 $1.67 b. Schedule of reclaimed water bulk rate charges for large users with minimum meter size of 4-inches. Meter size shall be based a Minimum Adjusted Average Daily Flow of 15% of the "Safe Maximum Operating Capacity" of Class II Turbine Meters as specified in A WWA Standard C701. There is hereby-established a volume charge for all large users: Bulk Rate, Cost per 1,000 gallons $0.30 (3) Customers outside the city. The rates applicable to customers outside of the city shall be one and one-qumier (1.25) times the rates above. SECTION 2. Severability If any section, sentence, clause, or phrase of this ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this ordinance. SECTION 3. Effective Date This Ordinance shall take effect upon its final passage and adoption. Passed by the City Commission on first reading this 91h day of June 2014. Passed by the City Commission on second and final reading this _ Day of ____ 2014. Carolyn Woods Mayor I Presiding Officer Approved as to fmm and conectness: Rich Komando, Esquire City Attorney ATTEST: Donna L. Bmile, CMC City Clerk Proposed Atlantic Beach Reclaimed Water Rates Residential Commercial Base Charge Meter Size, Inches Amount Meter Size, Inches 3/4 $8.97 3/4 1 $8.97 1 1.5 $8.97 1.5 2 $8.97 2 3 $8.97 3 4 6 8 Volume Charges per 1,000 gallons Volume Cost/1000 gallons Volume All kgal $1.67 All kgal Bulk Rate Volume All kgal 5/29/2014 Amount $8.97 $11.22 $22.43 $35.85 $71.73 $112.08 $224.17 $358.67 Cost/1000 gallons $1.67 Cost/1000 gallons $0.30 AGENDA ITEM# 2A JULY 28,2014 JEA Reclaimed Water Rates as of 11/22/12 November-12 Residential Commercial Base Charge: Meter Size Amount Meter Size 3/4" $18.90 3/4" 1" $31.50 1" 1.5" $63.00 1.5" 2" $100.80 2" 3" $201.60 3" 4" 6" 8" Volume Charges per 1,000 gallons Volume Cost/1000 gals. Volume 1-14 kgal $2.60 1-14 kgal > 14 kgal $5.60 > 14 kgal Bulk Rate Volume All kgal* All kgal** Amount $31.50 $63.00 $100.80 $201.60 $315.00 $630.00 $1,008.00 Cost/1000 gals. $3.44 $3.96 Cost/1000 gals. $0.14 $0.28 *Customers who are forgoing groundwater withdrawal from SJRWMD **All other bulk customers Clay County Utility Authority Reclaimed Water Rates as of October-12 Residential Commercial Base Charge: Meter Size Amount Meter Size Amount 3/4" $14.69 3/4" $14.69 1" $36.72 1" $36.72 1.5" $73.45 1.5" $73.45 2" $117.51 2" $117.51 3" $235.03 3" $235.03 4" $367.23 6" $734.46 8" $1,175.14 Volume Charges per 1,000 gallons Volume Cost/1000 Volume Cost/1000 gals. 1-15 kgal $0.57 1-15 kgal $0.57 16-20 kgal $1.13 16-20 kgal $1.13 > 20 kgal $1.70 > 20 kgal $1.70 Wholesale Rate: Volume Cost/1000 gals. All kgal $0.32 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGRNDA ITEM: Detector Checks for Fire Line Metc1ing Proposed Ord inance No. 80-l4-86 SUBMITTED BY: Donna Kalu zniak , Uti lity Direc tor DATE: Ma y 19,20 14 STRATEGIC PLAN LINK: None AGENDA ITEM #2B J ULY28,20 14 BACKGROUND: In 2005, as part of the C ity's Water Los s Prevention Program , staff recommended and the Commi ss ion approved an Ordinance requiring full metering of new fire service lines. Fire service lin es are ind ividual water services that arc used strict ly for tire sprinkler systems o r for private fire hydrants. Typica ll y, they wou ld on ly be used during a fire. or while testing or repairing the fire sprink ler system or hyd rants for proper functi on. Staff was concemed that water loss might be occurring through these lines, which were not required to be metered. However, since enacting the Ordinan ce, staff has not seen any unexplained water usage. In sta ll ation of a fu ll meter on a lire line is very expensive for bu sinesses. These lin es are typically 6-inch cs or more in diameter. The cost of the meter, and constmction of a meter vau lt, bypass lines, etc. ca n cost $14,000 to $20,000. To reduce the burden on businesses, staff would lik e to revise the ordinance to req uire the in stallation of detector check meters on fire lines instead. These are sma ll meters that are insta lled on a bypass on the fire serv ice line. T he meter will regi ster that flow has oecuned, but will not indi cate the full t1ow through the line. The City can monitor whether flow has occUlTed, and require ve rifi cation that th e flow was for a tire or fire lin e test. If verifi cation is not provided, the City can then require the owner to install a full fire lin e meter. BUDGET: The C ity docs not rely on nor anticipate revenue from thi service and therefore there is no budget imp act. RECOMMENDATION: Approve Introd uction and First Reading of Ordinance 80-14-86 req uiring detector check meters on fire serv ice lines instead of full met ers. ATTACHMENTS: 1 .. Ord in ance No. 80-14-86 .. REVIEWED BY CITY MANAGER: 21 t/"a~ ~ ORDINANCE NO. 80-14-86 AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, ARTICLE II, AMENDING SECTION 22-30, PRIVATE FIRE PROTECTION SERVICE TO PROVIDE METHOD OF MONITORING FIRE LINE USAGE; TO PROVIDE FOR SEVERABILITY; TO PROVIDE FOR AN EFFECTIVE DATE. AGENDA ITEM# 2B JULY 28,2014 WHEREAS, the City has encouraged water conservation using several methods to include public education and implementing restructured inclining block water rates, and; WHEREAS, loss of water may occur from unmetered fire lines through leaks, improper connections, or misuse, and; WHEREAS, it is impmtant to be aware of and measure all uses of water to the extent possible, and; WHEREAS, in the current code there is a requirement that fire protection services on new facilities be metered. WHEREAS, use of a detector check meter will be less burdensome on businesses while allowing the City to check for unusual water use through the fire service line. NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that; Section I. Chapter 22 Utilities, of the Code of Ordinances of the City of Atlantic Beach, Florida is hereby amended to read as follows: Sec. 22-30. Private fire protection service. Fire protection service charges shall be billed the monthly water base rate for a %" meter. Fire protection service, either private hydrants or sprinkler systems, shall be installed from the connection to_ the main inward at the expense of the consumer. All such installations shall be made in strict accordance with the rules of the American Insurance Association in force at the date of installation and with such requirements as may be prescribed by the city manager. No taps will be allowed which may be used for other than fire protection purposes, and unless pursuant to special permit from the city manager, there shall be no connection with any other source of water except in case a storage tank or fire pump is installed as a secondary supply for such fire protection. Fire protection services on new facilities shall be metered have a detector check meter installed on the fire line. Customers with existing fire protection services will be required to install a detector check meter on the fire line. No water volume charge shall be made for water used while fighting a fire or testing the fire sprinkler system; however, evidence with documentation of such fire fighting or equipment testing may be required by the AGENDA ITEM # 2B JULY 28,2014 city. Water used for other than fire fighting or testing of the sprinkler system will be charged the normal volume rate and the base charge appropriate for the size of meter, and the city may require the customer to install an appropriately sized meter on the fire service line. SECTION 2. Severability If any section, sentence, clause, or phrase of this ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining pmtions of this ordinance. SECTION 3. Effective Date This Ordinance shall take effect upon its final passage and adoption. Passed by the City Commission on first reading this 9111 day of June 2014. Passed by the City Commission on this second and final reading this __ Day of ___ 2014. Carolyn Woods Mayor I Presiding Officer Approved as to form and conectness: Rich Komando, Esquire City Attorney ATTEST: Donna L. Bartle, CMC City Clerk CITY OF ATLANTIC BEACH CITY C OMMISSION MEETING STAFF REPORT AG EN DA ITEM: Bud get Ord inance# 20·14-1 27 AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2013 AND E NDING SEPTE MBER 30, 2014, AND PROVIDING AN EFFECTIVE DATE. SUBMITTED BY: Nelson Va n Lierc, City Manager -€__ DATE: Jun e 10 , 2014 A GENDA ITEM I# 2C J ULY 28,2014 BACKGROUND: T hi s propo se d ordin ance will acco mp li sh a numb er of bud ge t adju stm ents to address pr ev iously di sc usse d ex penditu res and grant award s th a t were no t includ ed in th e ori gi na l bud ge t: • Debt Se rvice Fund clos ure and transfer unu se d fund s of -$2,5 00 to the Genera l Fund , upon payoff of the 1999 Sun Tru st Re ve nue Refu nd ing Bond ; • Increase d net exp enses of $52,5 00 in th e admin is trati ve divisions of th e Ge nera l F un d for severance pay ments relate d to th e termin atio n of th e prior City Manage r and C ity Atto rn ey and hirin g a search firm to ass ist with a perm a nent replace ments, offse t by th e sav in gs assoc ia ted with th e vacanc y created in th e Fi nanc e Departm ent res ult in g from assigrun e nt of th e Finance Director as the interim City Manager ; • Aid to the Fr iend s of Atlanti c Beac h Elementary (F ABE) of $14 ,65 0 to ass ist with th e res urfac ing o f th e trac k a t the elementary sc hoo l; • Grant award/contrac t adjus tm ents of in crease d net reve nu es for th e CDB G grant of $65,263, red uced reve nues of $5,22 0 fr om the FDEP ADA ped/bike pat h grant award be ca use e ligibl e expenses were less tha n ant icip ated; and , in crease d grant rev enu es of $1 16,25 0 from a FEMA Hazard Mit igati on awar d fo r the Donn er Sub div ision sewer up grad es; • Appro val of a $24 ,000 contrac t for CRA to perform a site feas ibi li ty stud y for a new Po li ce buildin g; • Co ntrac t ex tension approva l with Ad va nced Dis posa l Se rv ices for san it at ion se rvices, e ffec tiv e Ju ne 1, with increased comm ercial tippage charges for the rema ind er of fi sca l year 2014 of $50,000 ; and , • Genera l Employee's Ret irement Pl a n expense increase of $25 0,000 for six employees exe rcisin g their Deferred Retirement Opt ion Pl an (DROP ) benefit opti on a nd a lump - sum dea th bene fit paya bl e to th e empl oyee's es tate. BUDGET : The bud get items above increase revenu es and ex penses $ 179,8 83 and $394,7 45 respect ively, w ith an o vera ll reducti on in fund balances of$214,862. REC OMMENDATION: Approve Ordin ance #2 0-14-127 ATTACHMENTS: Ordi n an ce# 2 0-14 -127 REVIEWED BY CITY MANAGER: -J1 ~ ~ _,7~ ORDINANCE NO. 20-14-127 AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30, 2014, AND PROVIDING AN EFFECTIVE DATE. AGENDA ITEM # 2C JULY 28,2014 WHEREAS, the City Charter of the City of Atlantic Beach requires that the City Commission approve all budgetary increases and transfers at the fund level, and WHEREAS, the nature of budgetary systems and those day-to-day decisions affecting such budgetary systems require adjustments from time-to-time, and WHEREAS, the City paid off the 1999 SunTrust Revenue Refunding Bond and is returning unused funds from the closed out Debt Service Fund to the General Fund, and WHEREAS, the City is amending the Operating Budget to add net funds totaling $52,500 for the increase in expenses in the administrative divisions of the General Fund for the termination and severance payments of the prior City Manager and City Attorney and a search fi1m to assist with replacing the City Manager, offset by a salary reduction associated with a vacancy in the Finance Department as a result of the assignment of the Finance Director as interim City Manager, and WHEREAS, the City has agreed to assist the Friends of Atlantic Beach Elementary (F ABE) with their request for $14,650 of funding to resurface the running track at Atlantic Beach Elementary School, and WHEREAS, various grants were awarded or agreements executed subsequent to adoption of the Original budget, CDBG grant adjustments result in a net increase of revenues of $65,263; the FDEP ADA pedestrian/bike path grant revenues are being reduced $5,220 to reflect a reduction in eligible expense reimbursement; and, Utilities Fund revenues are being increased $116,250 for the Hazard Mitigation grant award from FEMA for the Donner Subdivision sewer upgrades, and WHEREAS, the City has agreed to enter into a contract with CRA to perf01m a site feasibility study for a new Police building, resulting in increased expenses of $24,000, and WHEREAS, the City awarded a contract extension with Advanced Disposal Services (ADS) for sanitation services, effective June 2014, additional funds of $50,000 for four months of commercial tippage are being added to the Sanitation Fund, and WHEREAS, the number of eligible employees that enter the Deferred Retirement Option Program (DROP) or receive retirement benefits each year is unpredictable, six employees exercising the DROP option and a lump-sum death benefit payable to the employee's estate represent an additional $42,000 and $208,000, respectively, needed in the General Employees' Retirement Plan to fund these payments. AGENDA ITEM# 2C JULY 28,2014 NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that; 1. The Fiscal Year 2013/2014 Budget to be amended as follows: Revenues: Transfer from Debt Service Fund Expenses: Administration City Manager Salary -Special Pay Finance Salary Legal Professional Services General Government Professional Services Recreation Administration GENERAL FUND Aid to Government Agencies/Schools Total Expenses: Fund Balance $2,454 $100,000 (80,000) 22,000 10,500 14 650 $67,150 ($64,696) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND Revenues: Federal Grant-CDBG FY 2013-14 Expenses: Parks and Recreation Improvements Donner Ball Field Fund Balance Expenses: Non-Departmental Principal-SunTrust 99 Transfer to General Fund Total Expenses: Fund Balance DEBT SERVICE FUND $66,399 $1,136 $65,263 $5 2 454 $2,459 ($2,459) CAPITAL PROJECTS FUND Expenses: Police Professional Services Fund Balance CAP IMPRV -MARSH MASTER PLAN FUND Revenues: Federal Grant-DEP CM-245-ADA Ped/Bike Trail at Tideviews Preserve Fund Balance AGENDA ITEM # 2C JULY 28, 2014 $24,000 ($24,000) ($5,220) ($5,220) PUBLIC UTILITIES-WATER AND SEWER UTILITY FUNDS COMBINED Revenues: Federal Grant-FEMA(HMGP)-4068-Donner Sub Sewer Upgrades Fund Balance: SANITATION FUND Expenses: Sanitation Other Contract Services -ADS Fund Balance: GENERAL EMPLOYEES' RETIREMENT SYSTEM FUND Expenses: DROP Benefits Lump-Sum Distribution Total Expenses: Fund Balance 2. This ordinance shall take effect immediately upon its adoption. Passed by the City Commission on first reading this __ day of 2014. $116,250 $116,250 $50,000 ($50,000) $42,000 $208,000 $250,000 ($250,000) Passed by the City Commission on second and final reading this __ day of 2014. Carolyn Woods Mayor I Presiding Officer Approved as to form and correctness: Richard Komando, Esquire City Attorney ATTEST: Donna L. Bartle, CMC City Clerk