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HomeMy WebLinkAboutDocumentation_Regular_Tab 7A_12/12/1996 A , ,,, Ira A , (:: VILLAGE OF TEQUESTA ► . _ Post Office Box 3273 357 Tequesta Drive „"', Tequesta,Florida 33469-0273 • (407) 575-6200 ;_;:r �� ��� Fax: (407)575-6203p GOUM1 ' VILLAGE OF TEQUESTA REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 I. CALL TO ORDER AND ROLL CALL The Tequesta Redevelopment - Committee held a regularly scheduled meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Wednesday, November 13, 1996. The meeting was called to order at 9: 00 A.M. by Chairman Joseph Capretta. A roll call was taken by Betty Laur, the Recording Secretary. In attendance were: Chairman Joseph Capretta, and Committeemembers Carl C. Hansen and Mayor Ron T . Mackail. Village Staff present were: Village Manager Thomas G. Bradford, Village Clerk Joann Manganiello, and Department Heads. II. APPROVAL OF AGENDA • Committeemember Mackail made a motion to approve the Agenda as submitted. Committeemember Hansen seconded the motion. The vote on the motion was: Joseph N. Capretta - for Carl C. Hansen - for Ron T. Mackail - for The motion was therefore passed and adopted and the Agenda was approved as submitted. R cvck'd P:7j'c'r i REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 2 III. COMMUNICATIONS FROM CITIZENS There were no communications from citizens. IV. REVIEW OF VILLAGE'S FACILITIES MASTER PLAN 1) Conceptual Site Plans 2) Space Needs 3) Cost Estimates Village Clerk Manganiello reported that data requested at the last meeting had been prepared, and that during review of the conceptual site plans staff had revisited space needs and had been able to reduce square footage by approximately 8, 300 square feet, for a new total of approximately 29, 000 square feet. Mayor Mackail questioned whether the outside size of the building was being reduced or whether the 8, 300 square feet were still included for future utilization. Ms. Manganiello responded that the biggest reduction was in space for the Police Department, since direction had been to leave the existing City Hall building intact, Approximately 4200 square feet of the Fire Rescue facilities was used for apparatus bays. The plan for the Village Hall had been reduced by making offices smaller and sharing space, and each department to be housed there had been allowed some extra space for future expansion. Chairman Capretta commented that the intent of Mayor Mackail' s comment had been to determine whether the entire square footage would be utilized shortly after occupying the buildings, or whether there were unoccupied areas included for future expansion. Village Manager Bradford responded that with the reduction in square footage, there was now approximately one extra office per function. Chairman Capretta pointed out that the revised plans would not quite double present capacity. Ms. Manganiello explained that the new Council chamber would be exactly the same size as the present chamber, however, an additional multiuse room had been provided for other meetings. Committeemember Hansen cautioned that in comparing square footage for the new facility to the present facility, it should be remembered that there were no storage spaces, employee rooms, etc. , in the present facility; and that another 25% would be needed REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 3 to meet those needs. Mayor Mackail pointed out that it would be cheaper to include extra space initially and not finish that space until it was needed. Chairman Capretta suggested three concepts: 1. Build the amount of space needed in the foreseeable future with one extra office per function - to meet needs for 3 to 5 years. 2 . Build big enough for ten years. 3 . Middle Approach: Build to, meet needs for the next couple of years with one side constructed with no electrical, heating, cooling, or plumbing elements to make it easily expandable. Chairman Capretta commented that since the Village staff would probably grow no more than 10% that he did not believe a large amount of space would be needed in the future, however, the expandable wall concept would meet that need if it became a reality. Committeemember Hansen commented that financial growth of the Village had been historically conservative and that not much was projected up to the year 2006, so that space needs should not increase much up to that point. Chairman Capretta commented that the Village was now a full service municipality by virtue of having their own police, fire rescue, and ambulance services and that if there were no more new functions which planned for the next five years that the proposed plan built with one expandable side 'should be adequate. Chairman Capretta commented that there would be three to four years before an actual decision must be made for the location - of the new Village Hall. Committeemember Hansen explained that was one reason 'he liked the incremental approach, and that at the present time concentration could be on fire and police facilities. Mayor Mackail pointed out that eight years ago a study had indicated the Police department needed 10, 000 square feet which included a shooting range, and the office space actually needed today was 4, 900. REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 4 V. REVIEW OF PERT CHART FOR MASTER PLAN FACILITIES PHASING, TAX BASE AND REVENUE GROWTH CHART(S) , AND INCREMENTAL FINANCING OPTIONS Village Clerk Manganiello explained that estimated time to completion was 20 months for Village Hall; 16 months for Fire Rescue, and approximately 13 months for Police. Committeemember Hansen questioned whether it would. be possible to do construction of the Police and Fire Rescue facilities simultaneously so that they could both be completed within 18 to 20 months. Village Clerk Manganiello responded that the two projects could run concurrently and that the problems which would need to be worked out would involve relocation, since the firefighters were housed in temporary quarters which would have to be relocated somewhere close to the apparatus, and the police would have to move out into portable or off-site rental space. The biggest problem would be maintaining . the dispatch communications. Chairman Capretta proposed development of a detailed plan whereby a department would be scheduled to move into space in the existing facilities as soon as it was vacated. Village Manager Bradford explained that Fire Rescue would move into the space vacated by Finance and Water departments. Chairman Capretta suggested that the Building Department could be moved into the downtown rental space along with Administration to provide more space for personnel to move into, and a completely integrated Public Safety plan could be developed so that Fire Rescue and Police facilities could be developed concurrently. Chairman Capretta also suggested that rental space might be obtained across the street from the present Village Hall to be used as Council chambers during renovation of the existing facilities. Committeemember Hansen questioned whether there were any authorities who would demand full and working police or fire rescue departments housed in certain types of facilities during the planned construction process. Village Manager Bradford responded that the National Fire. Prevention Association (NFPA) and the Insurance Services Organization (ISO) were the agencies. involved with Fire and he did not believe there were any which would require a certain number of square feet .to house the department during construction. REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 5 Village Manager Bradford commented that in the future, any additional services provided by the Village would be mandated by outside sources. The Village Manager cited as an example that the State of Florida had mandated recycling so that now every municipality had a recycling function which no one had anticipated ten years ago. Village Manager Bradford commented that future facilities demands would come from the federal, state, or county governments; or from annexation. Mayor Mackail suggested that Palm Beach County be evicted from the fire station since the Village owned the land, which would solve the problem for Fire Rescue immediately. Village Manager Bradford explained that Palm Beach County could not be evicted, and their lease did not expire until the year 2007. Village Manager Bradford discussed the present Village Hall facility, and commented that the Council chamber function must be maintained, although it could be moved off-site; everything must be removed from the hallways to meet Code and would be housed in some of the vacated space. The Village Manager explained that the present administrative offices would not need very much renovation in order to be occupied by the Police Department, which would also use the space as offices. The rear building would also not need many changes to accommodate use by the Fire Department. The Village Manager Bradford agreed that moving the Building Department downtown along with the Administrative offices would be a good ideas long as extra space was available in the downtown building and as long as the Village could afford the additional rent. Village Manager Bradford stated that architects could not be secured to develop a design for the existing Village Hall site until financing was obtained, since all the money must be borrowed, and the total cost under the current plan would be $4, 138, 670. Village Manager Bradford stated he was not happy with the cost for Fire Rescue, and referred to conceptual site plan A-1, in which the current bay and garage area incorporated the present free-standing building under one roof system. Mr. Bradford commented that the roof and truss system must be tremendously expensive, and was curious to find out the cost if the back building were left exactly as is to be used strictly for offices and training, the existing garage were torn down, and a new basic structure was built to house all REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 6 equipment, storage, and living area. Chairman Capretta indicated from his experience with the clubhouse at. Tequesta Country Club that renovation costs could be more than to tear down existing facilities and rebuild. The Village Manager reviewed the estimated costs for each scenario included in the handout. Chairman Capretta discussed affordability for a phased-in plan which would also be phased financially, and stated that the amount of debt the Village could afford must be calculated. Village Manager Bradford responded that without any additional debt and assuming existing property appreciated approximately 1- 1/2% per year, factoring in all construction projects currently in progress and the average of eight new homes built in Tequesta annually at a cost of approximately $150, 000 each, plus expenditures forecast to rise at 3% to equal inflation, the result would be slight surpluses during 1998, 1999, and 2000. Beginning in 2001, taxes would have to be raised. Chairman Capretta speculated that when Tequesta Oaks was finished the additional residents patronizing businesses might trigger more desire to build in the downtown area, and Mr. Van Brock might build the 200 units he had been talking about, so that the tax base could be higher than currently anticipated. Village Manager Bradford commented that the Village would be very hard pressed to keep expenditures below inflation. Village Manager Bradford explained that if the Village went into debt, there were two choices, i.e. , revenue bonds or general obligation bonds which would require a vote by the residents. Financing the total cost with 30-year bonds at 6% would require raising taxes 13%. Village Manager Bradford pointed out that the utility tax could be raised from 9% to 10%, which would provide $55, 000 to $60, 000 annually, or 1/3 of the debt service. The Village Manager suggested another option, which would be to refinance the existing debt from the current 15-year amortization of $140, 000 per year to a 30-year amortization and include new debt, which would lessen the impact. By rolling only the fire station debt in with existing debt, only an additional $50, 000 to $75, 000 per year would be needed for debt service above what taxpayers were currently REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 7 . paying, or the utility tax could be raised to 10%, which would provide funds for Fire Rescue; and as other development happened then the other facilities improvements could be financed. Mayor Mackail commented that Mr. Kascavelis had provided the bell curve he had requested which indicated clearly that funds were not available and that the only way to pay for new facilities was through a financing technique. Village Manager Bradford reminded the Committee that the Water Department would be paying for half the lease for downtown office space, and they would also pay their proportionate share of the cost for the new Village hall, which would actually reduce the 13% tax increase to 7% or 8%. Village Manager Bradford explained that if a $5 million bond issue was needed and the Water department' s share was $2.5 million, then in a referendum the voters would only be asked to approve $2.5 million. The other $2.5 million would be issued as a revenue bond for the Water Department. Village Manager Bradford explained that when the Jupiter water issue was finished and the Village issued bonds for reverse osmosis that enough could be included then for the Water Department' s new facilities. That would take care of half the problem and that cost would be borne by 15, 000 customers instead of 4, 500. Mayor Mackail commented that based on information from Finance Director Kascavelis, the break even point would be in 3 to 4 years. Chairman Capretta discussed cost of living versus cost of government, and commented that perhaps taxes should be raised the amount of the cost of government instead of the cost of living (5% instead of 3%) in order to break even. Mayor Mackail pointed out that the Village had gone without a tax increase for five years, and all increases had been absorbed by the General Fund. Village Manager Bradford commented that a serious problem existed in Palm Beach County in that most of the people in northern Palm Beach County were anti-growth, and a large portion of were retirees who assumed that their costs would not rise after retirement. Mr. Bradford commented that government costs always continued to rise. Committeemember Hansen referred to an article in Florida Cities magazine which had stated that Florida was the most anti-tax state and the most anti-government state, and that Florida public officials would just have to combat that position. REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 8 Chairman Capretta requested that the Village Manager formulate a plan of how to get enough money to hire an architect to develop a master plan with phased implementation and completion of the first phase, moving as many personnel as possible and moving the Council chambers across the street. Chairman Capretta speculated that voters would be in favor of improved Public Safety facilities, and suggested that presentations could be made by Councilmembers to educate the residents as to the need for facilities and to obtain input. Chairman Capretta suggested that focus groups be formed to provide input and that those groups should be asked what they would be willing to pay for facilities. Committeemember Hansen commented that approximately one- third of his entire tax bill was for the Village of Tequesta so that if the 13% increase were divided proportionally, the total increase to his tax bill would be approximately 4%, if everything else remained the same. Mayor Mackail recommended that the Village Manager obtain a line of credit so that it would be in place when needed. Mr. Bradford reported that he had not pursued a line of credit because the Finance Director had advised that the Village could pay for reverse osmosis engineering. Mayor Mackail commented that the line of credit would cost the Village nothing unless they used it. Mr. Bradford commented that he would probably avoid a referendum since he had no faith that the residents would approve new facilities. Mayor Mackail commented that citizen input was needed and that the Village Council must conduct a sales job by inviting certain portions of the Village to come to presentations on different dates until the whole Village had been reached, rather than just trying to communicate through the newsletter. Mayor Mackail stated his preference to obtain all the money at once since the market was good, and explained that spreading repayment over 30 years the debt service would have less impact. Committeemember Hansen questioned whether it was realistic to only do the fire rescue facility in the first phase, or whether it would be smarter to include both police and fire rescue concurrently. Village Manager Bradford commented that alternative could be considered and if the fire rescue cost could be reduced then REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 9 doing both together might be affordable. When Committeemember Hansen questioned how much a referendum would delay the project, Village Clerk Manganiello responded that the delay would be at least six months. Village Manager Bradford stated that it would be possible to do both police and fire rescue without a referendum. Chairman Capretta stated that constructing both police and fire rescue concurrently without a referendum was the answer, and requested that the Village Manager work out the cost to move everyone out of the back building, rent a Village Hall across the street, hire an engineer to develop a master plan with reduced Fire Rescue cost, and refinance existing debt, with implementation to take place over the next two years. Mayor Mackail agreed, and requested that the Village Manager also look into the availability of a line of credit and get that into place so that funds would be available if needed for preliminary startup costs or to hire the engineer to develop a master plan. The only thing not taken care of under this scenario would be the Village Hall, allowing time to consider future developments. Committeemember Hansen agreed, stating that he preferred the police and fire rescue be done concurrently. Village Manager Bradford suggested that the Recreation Center might be used for Council meetings. Mayor Mackail commented that could be made a part of the agreement with YMCA, since they would not be using the building at night. Village Manager Bradford reported that a collapsible stage could be obtained for use at Council meetings. Mayor Mackail requested that • the actual impact on taxpayers be researched, considering the increase in utility tax, Water. Department paying for half, and refinancing the existing bond over 30 years. Village Manager Bradford commented that the rental cost for relocating the Building Department must also be considered. Chairman Capretta stated that the Village Manager was authorized to research the details and to report back to the Committee. Chairman Capretta commented that the Village had been. operating without tax increases while facilities had deteriorated, and the public was not aware of the extent of deterioration. Chairman Capretta stated that a decision must be made how to handle the problem, and that the public REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 10 could be told the alternatives and see if they came up with any other ideas. A presentation could be developed which would show the financial condition of the Village and the projected picture. Village Manager Bradford commented that he favored giving the public general information, but that too many details would worry people. Committeemember Hansen commented that he had been hoping that the visioning process could be a part of the presentation with the idea that the residents were owners of the Village and new facilities would be an improvement to the Village of which they could be proud. Mayor Mackail suggested that the Village Manager be directed to think about an approach similar to that used with annexation since the community had voted overwhelmingly for Fire Rescue, and if people really understood the need for improving facilities they would be in favor. Positive communication with residents by the Mayor and Council, Police and Fire department members would help residents understand the situation, and meetings could be held one night a week until all portions of the Village had attended. Village Manager Bradford stated he liked the visioning idea, and the presentation could begin by presenting facts regarding current financial situation and infrastructure, and asking the residents where they wanted to go from that point. Chairman Capretta suggested bringing up positive things: new construction developments, Ordinance 377 improvements, road and drainage improvements and expose them to the idea of future Bridge Road improvements, a new Village Hall, and also the negative of the run-down condition of facilities because of no tax increases for several years, moving into rental facilities, and the idea of raising taxes in accordance with cost of government. The residents could then be asked to provide ideas, and would probably support improvements to -Public Safety facilities. In response to Committeemember Hansen' s question regarding timing, Village Manager Bradford advised that a tax increase of less than 3% would take care of all of Public Safety; and the worst case scenario to complete a design for Police and Fire would be five months, so that if everything came in at a reasonable cost the project could start during the summer of 1997; and if the Committee approved the move to rental facilities at today' s meeting, the move would be accomplished by December 15, 1996. Village Clerk Manganiello was directed to confer with Harriet Smith, REDEVELOPMENT COMMITTEE • MEETING MINUTES NOVEMBER 13, 1996 PAGE 11 manager of Tequesta Corporate Center and Realtor for the property, to determine if there would be additional space available for the Building Department. Village Manager Bradford commented that he would determine whether there were funds in the Department of Community Development Fund to pay for the rental space. Chairman Capretta advised that whether a referendum was intended or not that the public should be informed and their input obtained at meetings, and suggested that Village Councilmembers go to Homeowners Associations and other small groups who were unable to attend the meetings held at the Village Hall. VI. REVIEW OF RENTAL SPACE OFF-SITE COSTS AND START-UP COSTS, TEQUESTA CORPORATE CENTER, 250 TEQUESTA DRIVE and VII. CONSIDERATION OF MEMORANDUM OF UNDERSTANDING WITH FIRST UNITED BANK, 250 TEQUESTA DRIVE Village Clerk Manganiello reported that the Village proposed to rent two suites, one at 1689 and the other at 1425 square feet. Rental cost per square foot in one suite would be $12 .50 plus $3.00 Common Area Maintenance cost; the other suite would be $11.50 per square foot plus $3.00 CAM, making the respective cost $15.50 and $14 .50 per month. A 3-year lease agreement was proposed which would allow three months free rent during the first year. Each subsequent year the rental cost would increase by the CPI, capped at 4% . The Village would be responsible for payment of electricity and interior cleaning of the offices. First year rent, electric, and cleaning with the 3 months free rent would total $46, 542.39. Anticipated start-up costs total $18, 479.50. Total of the first year and start-up costs equaled $65, 021.89, which would be split between the General Fund and the Water Enterprise Fund. Village Clerk Manganiello reported that the Finance Director had advised that sufficient funds were available. Village Clerk Manganiello commented that an agreement was under consideration by First United Bank to make provisions for customers to pay their water bills at the drive-in window or inside the bank lobby by cash or check. Chairman Capretta commented that this should bring new customers to the bank, and that this agreement should be reached at the REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 12 same time as the lease agreement. Village Manager Bradford explained that financing for any of the other improvements was not dependent upon the move into this rental space, since if nothing else was done this would benefit the space problem, and as soon as the move was made the Police department would move into the vacated offices and remove all items from the hallways which were in violation of Code. Chairman Capretta commented that the first problem of employee satisfaction and efficient operating services would be solved, and an opportunity would be available to work on the rest of the improvements. After completion of Phase II, which would be the Public Safety facility, facilities would be in good shape. Then options regarding a new Village Hall could be considered. Chairman • Capretta stated he liked the idea of tearing down the back building, and a good one could probably be designed and constructed for less money than it would cost to renovate. VIII. CONSIDERATION OF MEMORANDUM TO ENTER INTO A LEASE AND RECEIPT FOR DEPOSIT AGREEMENT FOR ADMINISTRATIVE OFFICE SPACE Committeemember Mackail made a motion to recommend to the full .Village Council at their November 14, 1996 meeting approval of the consideration of the Memorandum of Understanding to enter into a lease agreement with the Tequesta Corporate Center. Committeemember Hansen seconded the motion. The vote on the motion was: Joseph N. Capretta - for Carl C. Hansen - for Ron T. Mackail - for The motion was therefore passed and adopted. IX. ANY OTHER MATTERS During discussion of improvements which had resulted from Ordinance 377, Mayor Mackail reported that residents had i REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 13 commented that not enough landscaping improvements were being made. Village Manager Bradford commented that one could see the improvements on the section of Tequesta Drive immediately off U.S. One on the north side of the street. Committeemember Hansen reported that progress was being made and half the properties required to. add landscaping should be completed within 3-4 months, and at the next Special Master Hearing that a couple of people who had not responded would be scheduled for hearing. Mayor Mackail commented that the turning point from a psychological viewpoint would be when improvements were made to the shopping center on the other side of Tequesta Drive. Bill Quigley, 79 Holly Circle, stated he supported getting information to the citizens, since he would like to know all alternatives of cost and funding. Mr. Quigley commented that he thought the action being taken was good, and although he might not like all of it, he believed that the decision of getting the information to the people was a good one and the Village should proceed. VI. ADJOURNMENT Committeemember Hansen made a motion to adjourn the meeting. Committeemember Mackail seconded the motion. The vote on the motion was: Joseph N. Capretta - for Carl C. Hansen - for Ron T. Mackail - for The motion was therefore passed and adopted, and the meeting was adjourned at 10:52 A.M. Respectfully submitted, 4 1 C54-c(-4(A-/ Betty our Recording Secretary REDEVELOPMENT COMMITTEE MEETING MINUTES NOVEMBER 13, 1996 PAGE 14 ATTEST: 1 Joann Manganiello Village Clerk DATE APPROVED: