09-03-91 v •
CITY OF ATLANTIC BEACH
SPECIAL CALLED MEETING OF THE CITY COMMISSION
SEPTEMBER 3, 1991 , 7 : 30 P.M.
Call to order
1 . Resolution to authorize the City Attorney to proceed with
acquisition of easements on Mayport Road
2 . Resolution opposing the election assessments
3 . Discussion and related action regarding FY 1991 /92 budget ,
rates relating to water and sewer , animal control and
miscellaneous
Any other business
Adjournment
MINUTES OF THE SPECIAL MEETING OF THE ATLANTIC BEACH CITY COMMISSION
HELD IN CITY HALL,, 800 SEMINOLE ROAD, AT 7:30 PM ON TUESDAY, SEPTEMBER
3, 1991
The meeting was called to order in the Conference Room at City Hall by
Mayor Gulliford. Present, in addition to the Mayor, were Commissioners
Cook, Edwards, Tucker, and Weldon. Also present were City Manager
Leinbach, City Attorney Jensen and City Clerk King.
1. Resolution No. 91-26
Mayor Gulliford introduced in full, in writing, Resolution No. 91-26: A
RESOLUTION OF THE CITY OF ATLANTIC BEACH, AUTHORIZING ALAN C. JENSEN,
CITY ATTORNEY, TO INITIATE EMINENT DOMAIN PROCEEDINGS IN ORDER TO
ACQUIRE IN THE NAME OF THE CITY OF ATLANTIC BEACH CERTAIN EASEMENTS
NEEDED FOR PUBLIC PURPOSES, PROVIDING AN EFFECTIVE DATE (For Sea Gardens
Lift Station)
On motion made by Commissioner Cook, seconded by Commissioner Tucker,
Resolution No. 91-26 was unanimously approved.
2. Resolution No. 91-27
Mayor Gulliford introduced in full, in writing, Resolution No. 91-27: A
RESOLUTION OF THE CITY OF ATLANTIC BEACH OPPOSING THE IMPOSITION OF AN
ELECTION ASSESSMENT ON CANDIDATES FOR MUNICIPAL OFFICE, PROVIDING AN
EFFECTIVE DATE.
On motion made by Commissioner Cook, seconded by Commissioner Tucker,
Resolution No. 91-27 was unanimously approved.
Any other business:
(a) Chief Thompson provided a schedule of fees which must be paid by
pet owners before animals impounded by the City of Jacksonville could be
released. He said Atlantic Beach charged no fees to compensate for
expenses involved with caring for impounded animals and suggested the
City Commission may wish to adopt a similar fee schedule. Commissioner
Weldon moved to agree to impose charges as introduced, and direct the
City Attorney to draft the appropriate ordinance. The motion was
seconded by Commissioner Cook and was unanimously approved.
(b) Mayor Gulliford reported he had received a letter from Great Lakes
Dredge & Dock Company, the company presently working on the beach
renourishment in Atlantic Beach, advising that Federal money was
available to extend the renourishment further to the north. Since their
price had included a $500,000 mobilization cost, this work could be
undertaken now and save future mobilization costs.
Commissioner Weldon moved to direct the City Manager to contact Richard
Bonner and request that the project be extended north to Hanna Park.
The motion was seconded by Commissioner Tucker and was unanimously
approved.
PAGE TWO
MINUTES OF SPECIAL MEETING
SEPTEMBER 3, 1991
(c) Joseph Davis, 892 Bonita Road; Richard Johnson, 857 Bonita Road;
and Emory Thorpe, 845 Bonita Road, appeared before the City Commission
and complained of low water pressure at their homes. After discussion
of the problem, Public Works Director Kosoy was directed to check into
the matter to see if it was a distribution problem and advise Mr. Davis
accordingly.
3. Discussion and related action regarding FY 1991/92 budget and
report from the utility rate review committee.
Mike Burton of Burton and Associates, the city's financial advisor,
presented a detailed water and sewer rate study analysis, dated
September 3, 1991. He also presented a brief summary of the analysis
illustrating the proposed percentage rate increases which would be
required through FY 1995/96 under each of two proposed plans. A copy of
the summary is attached hereto and made a part hereof. The committee
recommended adjusting the out of city rate from 1 .5 to 1 .25 times the
city rate and increasing the city water and sewer rates and hiring an
engineer of record to develop a master water and sewer plan for the
city.
Plan 1 would be financed through interfund loans and rate increases.
The projected increases to an average residential water and sewer bill
over a five year period were illustrated. Plan 2 proposed combining the
systems and would require refunding of the current bonds and a smaller
rate increase than that proposed in Plan 1 . Mr. Burton cautioned the
city about not raising enough revenue and being in technical default on
the bonds.
A list of capital improvement projects which was included in the report
was discussed a length. Committee Member Alan Potter felt it was
premature to plan to borrow money to undertake some of the projects
before the need and the desirability had been determined. He felt the
projects listed were good and may become necessary in the future, but
they did not address the immediate needs of the present citizens of
Atlantic Beach, Buccaneer and Oak Harbor.
(At 8:40 PM the Mayor declared a short recess and the meeting moved to
the Commission Chambers.)
Alan Potter agreed that Atlantic Beach water rates were too low and
supported the rate increase and felt a 20% increase would be a more
reasonable figure. He also suggested a small sewer rate increase. He
supported the reduction of the Buccaneer rate from 1.5 to 1 .25 times the
city rate. This water rate increase would result in an additional
$288,000 revenue.
Mr. Potter also felt the surplus cash from the Buccaneer system could be
used to pay the $900,000 Oak Harbor bonds and eliminate the technical
default. He said this would use only unobligated Buccaneer funds and
would set Atlantic Beach's "fiscal house" in order. He also supported
PAGE THREE
MINUTES OF SPECIAL MEETING
SEPTEMBER 3, 1991
the recommendation to hire an engineer of record to help develop a five
year water and sewer master plan and assist with permitting, etc.
However, he suggested this engineer not be responsible for any design
work.
Finance Director Harry Royal said the proposed budget had been based on
a projected 59% increase in water rates and 20% increase in sewer rates.
Mayor Gulliford summarized that there seemed to be a consensus to go
with a combined system in the future; there needed to be a water and
sewer rate increase this year; the out of city rate needed to be reduced
from 1.5 to 1 .25; and an engineer of record needed to be retained to
oversee and develop a five-year capital improvement plan and to maintain
it annually. He felt it was impossible to proceed with the budget
process until the amount of rate increases had been decided.
Mr. Burton pointed out additional revenues of $116,650 would be needed
for operation and maintenance in the water department and additional
revenues of $187,200 would be required for the sewer department in the
next fiscal year. After further discussion regarding the current sewer
rates it was determined an increase of $5.20 per customer would be
required. Mayor Gulliford suggested the financial advisor adjust the
rates to bring the city into compliance with the covenants of the bonds
and adjust water rates to cover the operating shortfall.
Commissioner Tucker moved to increase the water rates in order to cover
the operating shortfall of $116,650, and increase the sewer rates to
cover the $187,200 to bring the city into compliance with covenants on
the bonds. The motion was seconded by Commissioner Weldon and passed
unanimously.
Commissioner Weldon moved to reduce the out of city rates from 1.5 to
1.25 times the city rate and direct the City Manager to obtain proposals
in accordance with the provisions of the Consultants Competitive
Negotiation Act, for an engineer to study the entire system and make
recommendations for improvements, and that the name of that engineer be
brought to the City Commission for final approval. The motion was
seconded by Commissioner Edwards and was unanimously approved.
After further discussion, Commissioner Weldon moved to terminate the
rate study committee, with grateful thanks for a job splendidly done.
The motion was seconded by Commissioner Edwards and passed on a 3 - 2
vote with Mayor Gulliford and Commissioner Cook casting the dissenting
votes.
Mr. Burton said he would draft a new rate schedule to reflect the
increases which had been approved. This rate schedule would be
presented to the City Commission for final approval and would then be
incorporated into the city code.
PAGE FOUR
MINUTES
SEPTEMBER 3, 1991
Enterprise Funds - Water
Public Works Director Bob Kosoy said the portable generator (Code 4400)
which had been requested was needed for emergency situations such as
hurricanes. Discussion ensued and Mr. Kosoy agreed to contact vendors
of this equipment and see if one of them would agree to reserve a
generator to be used in emergencies by the city.
Mr. Kosoy reported he had proposed to build a new storage building (Code
6200) with the cost to be shared by Water and Sewer. Discussion ensued
and the Mayor felt since the building would be located within a locked
area, it may be possible to use something other than a steel building.
After discussion, no changes were made.
Tim Townsend explained the hydro stop materials (6400) were needed in
order to comply with the DER Consent Agreement. He said the pipe boring
machine was also required to reduce the cost involved with asphalt cuts
when laying pipe under streets. Commissioner Weldon moved to restore
the pipe boring machine at $8,000 and hydro stop materials at $12,000 to
the Water Department budget. After further discussion the question was
called and the motion carried unanimously.
Sewer: Tim Townsend explained the need for the #6 tank aeration
diffuser (6300) . Harry McNally explained that the city plant also
handled the sludge for the Buccaneer plant and he felt the city could be
reimbursed from the Buccaneer account for this work, thus providing
budget for the aeration diffuser. After considerable discussion of the
matter, Commissioner Weldon moved to restore the #6 tank aerator
diffuser to the Sewer Department budget. Commissioner Tucker seconded
the motion which carried on a 4 - 1 vote with Mayor Gulliford voting
nay.
Tim Townsend also explained the railing at the sewer plant was very old
and violated safety standards. During various safety inspections
Bio-Environmental Services had notified the city of this deficiency.
After brief discussion Commissioner Edwards moved to restore this safety
railing to the Sewer Department budget. The motion was seconded by
Commissioner Weldon and carried unanimously.
Bob Kosoy pointed out an amount of $27,500 (Code 4600) which could be
deleted from Sewer Renewal and Replacement.
Tim Townsend said he had budgeted $110,000 for wetwell rehabilitation
and reminded the City Commission of the failure of the original wetwell
coatings. The wetwells were subsequently recoated and this coating had
also failed. An additional $100,000 would be needed to replace sludge
tiles. Discussion ensued and since this was a major expenditure it was
agreed to postpone a decision on this matter until the next meeting, at
which time the City Manager and Finance Department were asked to make a
recommendation as to what funds would be used for this work.
PAGE FIVE
MINUTES
SEPTEMBER 3, 1991
Discussion ensued regarding responsibility for the failure of the
wetwell coatings and Commissioner Cook moved to direct the City Attorney
to check into the matter and see whether the city had any recourse with
either the contractor or manufacturer. The motion was seconded by
Commissioner Tucker and carried unanimously.
Chief Thompson reported the 911 emergency system would pay the City of
Atlantic Beach $28,000 in the next fiscal year to defray the cost of
operating the system. He said Communications Supervisor, Jeanie Brown,
had been working with the 911 committee and deserved much of the credit
for this assistance.
A further budget workshop was scheduled for September 12, 1991 at 7:30
PM, following which the Mayor declared the meeting adjourned at 11:00
PM.
(1111I. Ali
A
William I. Gullifor. 77.
Mayor/Presiding Ofl
ATTES T:
57 ke-c-6-1.4.1-s---1
Maureen King, Cityclerk 0
r\\`'
EXECUTIVE SUMMARY
Burton & Associates
CITY OF ATLANTICBEACH
WATER AND SEWER RATE STUDY
RECOMMENDATIONS
1. SELECT ALTERNATIVE 2 - COMBINED SYSTEM.
2. ADJUST OUT OF CITY SURCHARGE FROM 1.5 TO 1.25 TIMES THE CITY RATE.
3. AUTHORIZE CITY MANAGER TO PROCEED WITH A BOND ISSUE AS DESCRIBED IN ALTERNATIVE 2,
SUBJECT TO ADJUSTMENT OF THE CAPITAL IMPROVEMENT PROGRAM BASED UPON INPUT FROM
THE WATER AND SEWER RATE COMMITTEE AND THE IMPACT OF SUCH ADJUSTMENT TO THE
BOND ISSUE SIZING AND RESULTANT RATE REVENUE INCREASE REQUIRED.
4. ADOPT SPECIFIC RATES AND CHARGES TO SUPPORT ALTERNATIVE 2 (AS ADJUSTED RE: CAPITAL
IMPROVEMENT PROGRAM MODIFICATIONS DISCUSSED IN RECOMMENDATION 3) PRIOR TO THE
ISSUANCE OF BONDS
5. HIRE AN ENGINEER OF RECORD FOR THE WATER AND SEWER SYSTEM TO ANNUALLY UPDATE
THE CITY'S FIVE YEAR WATER AND SEWER CAPITAL IMPROVEMENT PROGRAM. THIS ENGINEER
WOULD BE EXCLUDED FROM BIDDING ON PROJECTS IDENTIFIED IN THE CAPITAL IMPROVEMENT
PROGRAM.
1
SOURCE: BURTON&ASSOCIATES 09/03/91
CITY OF ATLANTIC BEACH WATER AND SEWER RATE COMMITTEE
CITY OF ATLANTICBEACH
WATER AND SEWER RATE STUDY
RATE PLAN ALTERNATIVES SUMMARY
ALTERNATIVE 1 - INTERFUND LOAN PROGRAM
RATE PLAN: CURRENT 1991-92 1992-93 1993-94 1994-95 1995-96
PERCENT INCREASE IN TOTAL WATER AND SEWER REVENUE REQUIRED N/A 2754% 10.70% 2.65% ` 2136% 0.00%
AVERAGE RESIDENTIAL WATER AND SEWER BILL(QUARTERLY) $90 $115 $127 $130 $158 S158
ALTERNATIVE 2 - COMBINED SYSTEM
RATE PLAN: CURRENT 1991-92 1992-93 1993-94 1994-95 1995-96
PERCENT INCREASE INTCrTAL WATER AND SEWER REVENUE REQUIRED N/A 13.74% 5.93% 4.06% 3.99% 2.37%
AVERAGE RESIDENTIAL WATER AND SEWER BILL(QUARTERLY) $90 $102 $108 $113 $117 $120
BOND SUMMARY(ESTIMATES):
PRINCIPLE AMOUNT $6,656,224
BOND FUNDED PROJECT AMOUNT $2,306,951
REFUNDING COST $4,630,082
ASSUMED INTEREST RATE 7.50%
TERM IN YEARS 20
ANNUAL DEBT SERVICE $652,924
TOTAL CURRENT ANNUAL DEBT SERVICE $626,501
NOTE: BOTH ALTERNATIVES ABOVE INCLUDE A REDUCTION OF THE OUTSIDE OF CITY SURCHARGE FROM 1.5 TO 1.25 TIMES THE CITY
RATE.
SOURCE:BURTON &ASSOCIATES 09/03/91