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HomeMy WebLinkAboutDocumentation_Regular_Tab 06C_08/12/1999 s � � � . �� '' ��� � VILLAGE OF TEQUESTA � Post Office Box 3273 • 250 Tequesta Drive • Suice 300 ' ,�� a Tequesta, Florida 33469-0273 • (561) 575-6200 �; t Fax: (5G1) 575-G203 a�, c y ,�� co VILLAGE OF TEQUESTA VILLAGE COUl�ICIL �VORK�HOP MEETING MINUTES JULY 13, 1999 I. CALL TO ORDBR AND ROLL CALL The Tequesta Village Cauncil held a workshop meeting at the Viilage Haii, 357 Tequesta Drive, Tequesta, Fiorida, on Tuesday, July 13, 1999. The meeting was called to order at 5:31 P.M. by Ma.yor Ron T. Mackail. �i roii call was taken by Betty Laur, Recording Secreta�y. Councilmembers present were: Mayor R�an T. Mackail, Vice Mayor Carl;C. Hansen, Basil E. Daiack, Joseph N. Capretta, and Elizabeth A. Schauer. Also in atte�dance were: village Manager Thornas G. Bradford, Viilage Cierk Joann Manganiello, and Department Heads. II. APPRO�TAL OF AGENDA Couacilmember Schauer made a motioa to approve the Ageada as svbmitted. Vice Mayor 8ansea seconded the motion. The vote oa the motioa wase Ron T. biackail - for Cari C. Sansea - for Basii S. Daiack - for soseph N. Capretta - £or 8lizabeth A. Schauer - for The motion was therefore passed aad adopted and the Agenda was approved as submitted. VILLAG3� COUNCIL DPO�LKS80P ��ING MIN't)TLS JVLY 13, 1999 PAGB 2 .___.____..�_______.�.______.,.___--..---- xII. Ct)b}�QNICATIONS FR{aM CIT3Z'81�fS (NON ZTSMS) There were no communications from citizens. IV. REVIE9� OF PROPQSSD FY 1999 SIIDG$TS A) �ammuaity Develogmeat Speeial Reveaue �`u�ad 8) �Pster Eaterprise Fuad C) Refuse aad Recycliag Fuad D) Storm�vater iTtiiity Saterprise Fuad Village Manager Bradford explained that all the funds to be reviewed at this meeting were enterprise funds, meaning stand-alone funds made up of fees charged for services. The Village Manager explained that the Community �evelopment Special Revenue Fund anaiysi� began on page 26 of the budget document, and the departnnent was receiving a tremendous amaunt of permit fee revenue as a resuit of ail the new construction in the Vill.age. Village Manager Bradford commented that funds were being accumulated for c�rawing upon in the future as permit revenues decrease and/or during a recession, and pointed out tM.�.t the fund would p�oduce $37,740 in interest during the ne�ct fiscal year. The Vii3age Manager reported Scott D. Ladd, Directar of the Communi�y . Development Department, had recentzy lost the use of a contractual Building �nspector who had taken a full-time position with Cocoa Beach. Mr. Bradford explained that the State of Florida had increased the requirements for inspectors after Hurricane Andrew, making it more difficult to become qualified to be an inspector. Larger cities used specialized inspectors, such as separate individuais for electrical, plumbing, mechanical, etc; while Tequesta needed a multi-qualified individual who could inspect all the trades. Mr. Bradford commented VIL�.AGI� COIINCIL NORRS80P Ms�rxrr� �s�rro+rss JULY 13. 19 9 9 PAGL 3 ----- ..�____.____.. more and more cities were hiring contractual inspectors, and explained that the demand for inspec�ors was now very high. The village Manager announced that Tequesta had made arrangements for the Town of Jupiter to perform Z'equesta's inspections until Mr. Ladd couid find a long- term solution to the problem. Mr. Bradford explained that Planning & Zoning for the village was also included in this fund. Vice Mayor Ha�sen pointed out there was no index for pages 29 and 30, and questioned w1�y ConmYUni�y Development was shown as a function of Public Safety. Village Managez Bradford explained that building inspection services was a public safety function under the accounting cade of the State af �'iorida. Counciimember Capretta commented that major construction would prababl�r only last abaut a year, and someone couid be hired to do inspections for that time periad. Mr. Ladd estimated that major construction would last 3-5 years. Vice Mayor � Hansen cum�nented there wouid be a lot of homes tarn down " and rebuilt, and he believed Mr: Ladd's department would remain busy foliowing the current construction boom. Mr. Ladd commen�ed that certification required for an inspector was the saGme for residentiai and commercial construction. village Manager Bradford called attention to page 4� of the budget document, highlighting the analysis for the Water Enterprise Fund. The Village Manager explained that some time ago the vi].iage Council had passed Ordinance 529 which grovided for automatic increases in water rates based upon the Consumer Price Index. Mr. Bradford reported the worst case figures had been placed in the budget and revenue from the fndex rate increase had not been included because of concern regarding consumption in �elation to rainfall. A 1.8� increase would go into e�fect �ctober i, based upon the CPI. The village Manager explained that rate could possibly drop as a resuit of comparison with details provided by the VILLAC�S COtTNCIL �P4RR380P MEBTING MINUTES JtTLY 13, 1999 PAC3L 4 Bureau of Labor Statistics. village Manager Bradford reported total operating expenses had increased 2g, to $2.56 million, and that this year was th.e last step increase in debt service for the 1998 bond issue, going from approximately $394,OOd to $526,000 per year for the bond payments. The required debt service ratio was 1.2 and was at 2.5i including the increase in the debt service, mhich meant there wou].d be no problems meeting the debt service requirements. village Manager Bradford reported that one of th� ma�or items the Water Department wished to purchase during this fiscal year was a GIS (Geographic �nformation System} platfo�m to graphically display all infrastrueture improvements entered into th� comgu�er program which would allow for better project planning and internal mapping capabi3ities. Cost for the village area only would be $100,000 with Falm Beach Count� to cost share $50,000 so that they could obtain basic data per iot basis for their for property apprai;sal and mapping departments. Village Manager Bradford reported that the Capital Improvement Program`has been updated to reflect projects which the vil�.age needed to undertake, including completion of the reverse osmosis treatment facility and teiemetry system. The �hase I and Phase TI engineering services to design the teiemetry system would be presented to the Village Council �t their next meeting. Proposed expenditure �or the rema.inder of this project was $2.579, anfl hiring the new plant operator which had been planri.ed for the current year had been delayed until after the new Utilities �irector had been hired, and was now planned for eariy next fisca3 ye�r. 'it'illage Managcr Bradford commen�ed Lighthouse Galler� and School of Art had �equested an increase in their long-standing donation from the Viilage from $5,000 to $10,000, which had been included in Aid to Community Organizations in the budget. Counciimember Capretta comnnente8 he did not like allowing apProximatei�r $8�0,000 in surplus funds to remain in the Communit�r Development Department's enterprise fund when VILLA.GE COIINCIL �ORR380P ME�ING MINUT83 JOLY 13, 1999 PAQB 5 .�_�._..�.---.______.__..�__��._ funds were needed in other areas of the Village, and requested the total of excess funds in ali the enterprise funds and a determination of the proper surplus for each fund and that a minimum and maximum amount be established; so that excess funds above the proper level could be utiiized elsewhere. Village Manager Bradford responded that the other enterprise funds were about as 1o�r as th�y couid be, and that balances should be approximately 25� of expenditures. Councilmember Capretta commented the Village had hir�d a new Utilities Director v�ho h�d two jobs, to build a new reverse osmosis plant and handle the stormwater utility projects. Councilmember Capretta commented tha� a business plan for expansion of the water department was needed in order to determine the groper timing and sources of funding, and stated he might have just found the fun.ding source. Councilmember Capretta cautioned that staff not forget about the possibiiity of ea�gansion and to work on that when the new Utilities Director was...on his feet enough to �ndertake this project. Village Manager Bradford ='respanded he would look at trie Cammunity Development = Department�s fund and determine how low it cauld go and still pr4tect �he integrity of the fund. Council.member Schauer que�tioned whether the donation to Lighthouse Gallery cou7.d be made a line item, to which the Village �tar�ager respon�ed that it was already a line item titled Aid to Community Organizations, for which $1i had been budgeted with $10,000 going to Lightho�se Gallery and $1,000 to Jupiter High School Project Graduation. Dur�.ng discussion of procedure foz obtaining the funds for Projec� Graduation, the village i�tanager explained that Jupiter Higl� School could write a letter to him in April of each year requesting th� funds. Councilmember Schauer commented she was going to be on the Jupiter High Scl�ool Advisory Council and would inform the school regarding writing the letter. Village Manager Bradford reported the Village also gave $7,500 annually to JTAA which came frQm the General Fund. Mayor Mackail questioned the $150,000 amount shawn as Jupiter Increase, VILLAG$ COIINCIL �ORR3HOP �BTING MiNt7TL3 JULY 13, 1999 PAQE 6 ----------- --�_._�_..___.__.._�._ which the Village Manager explained was the remainder of the Jupiter rate increase paid during the first quarter of this fiscal year. Mayor Mackail commented that interest income was dropping off, to which Viilage Manager Bradford responded that at the iast check with " the State Soard of Administration the annuai rate of return for idle funds was 4.91�, and had dropped during the prior year. The village anticipated an average of 4.3� during the next fiscal year based on the estimated rate of decline in interest paid by the SBp, over the next year. Vice Mayor Hansen questioned whether the amoun� shown in the water Enterprise Fund was based on rates remaining the same, to which Village Manager Bradford responded that there would be two increases, the automatiC rate increase under the �rdinance passed two years ago allowing automatic increases based on app3.ication of the Consumer Price Index to the Village operations, and that the worst case sc�nario was an 1.8�r increase, which possibly couid be lowered to i� or .�� based on analysis results, and which would be effective October 1. The second increase would be as a result of the report written b� consultant Robert Ori pertaining to charges the village provided for services other than consumption such as meter installations, re-reading meters, testing meters, etc., and Mr. Ori�s recommendation to raise these charges. Viliage Manager Bradfo�d commented that these increases would be presented to the viiiage Councii at either their August or September meeting. Mr. Ori also recommended that the capital connection, or impact fee, be increased from $1,500 per ERC �o $2,i30 per ERC to represent the Village's new cost as reflected by the reverse osmosis plant. Thzs was also described as the cost of reserving capacity. Villa�e Manager Braclford explained that none of these items were in the budget because the Village Council had not seen them yet and the amount of money for commodity charges was not significant. The Village Manager explained that the revenue flow for the Tequesta Water DePartment was very rain sensitive, and it was very VILLAGS COIINCIL �ORK380P �SEBTING MINDT]3S JtTLY 13, 1999 PAGB 7 difficult to make any assumptions as to revenue because the rate of sales varied according to rainfall. Vice Mayor xansen questioned whether expansion of water services into Martin County would incur additional costs. Village Manager Bradford responded that would mean ad�iitionai costs wMich were not in the budget, and charges for the people the Viilage wanted to serve, capital conneEtion fees, and the cost of extending lines to the customers would need to be determined. Counciimember Capretta commented that a business plan was needed. Utilities Director Matthew Marrison explaine�l that staff was in the process of deveioping a plan, and that in this type of operation recouped costs almost immediately. Mayar Mackail commented that the step rate conservation plan had hurt water revenue but had been done because it was the right thing to do, but it might not be the right thing to do now. Village Manager . Bradford commented that in Mr. Ori's report he had stated he wa5 n.ot able to recommend an alteration of the step rate at this time because the current Village computer = system was not able to genera�e the information he - n.eeded, but after the new system was �n operation with 12-18 manths of data, he would be able to tell with some accuracy what aiterations to make to the steps. Viliage Manager Bradford reported Mr. Ori had a fundamental disagreement with the vi11ag2 Council�s idea regarding step rates since he wanted to make the steps more stringent. Councilmember Capretta commented that the village had gone into tl�e step rate program knowing it was not profitable because they felt it was ri�ht to promote conservation and believed they were doing what was desired by South Fiorida Water Management, but Jupiter did nothing and South Florida Water Management had rewarded them for it by granting their permits. Village Manager Bradford commented that there was another reason the step rates had been instituted, which had been Councilmember Capretta�s idea, to deiay going to reverse osmosis as long as possible, and it had worked and had bought the village ten year5. The Village Manager VILLAG$ COUNCIL WORRSHOP �EETIN't3 MiNUTF�S JULY 13, 1999 PAGL 8 cammented that the village's permit with the District said the Village would have a conservation rate structure, and there was flexibility in what was considered conservation. Mr. Bradford stated that some communities had gone to a flat rate across the board like Jupiter, moving from an old system that charged less as consumption became higher. M�yor Maekail questioned the target expansion area for an outlay of $500,000, to which the viilage Manager responded it was mostly Pine Tree Drive and the area narth of County Line Road containing approximately 350 single family homes now using welZ water. Councilmember Capretta commented that was basically expanding in the Village�s own ter�itory, and a business plan was need�d for expansion out of Village territory, and suggested a market survey asking whether people would buy water from the Viilage. village Manager Bradford explained that Jupiter Island's purchase of Hydro Tek in Hobe Sound had effectiveiy cut off Village expansion to the= north, which ii true, would limit . expansion to the 350 homes north of County Line Road. -° �iscussion ensued. Utilities Director Morrison`reported Jupiter island (South Fnd Improvement District) had agreed to ga with Hobe Sound Utility. vice Mayor xansen commented the village was buiiding a reverse osmosis plant with the capability of handling four trains in the future and the business plan should include locations for future wells and their cost. Village Manager Bradford commented the Viilage was waiting to finish the RO plant before going into that expansion. Councilmember Capretta suggested that a projection could be provided regarding water demand if the 350 homes were added and when the water contract with Jupiter ran out. Village Manager Bradford commented that in 20Q3 the viilage franchise to serve Jupiter customers on this side of the river would expire. Mr. Morrison explained staff wa.s looking at a11 options. village r2anager Bradfoxd suggested that to avoid war with Jupiter in 2003 that a swap �or the 900 homes now serviced by the Village could be made for 900 in Martin County in an amicable agreement. Councilmember VTLLAGL COIINCiL oPORR38QP MSETTNt� MINUT�S JVLY 13. 1999 PAGL 9 ����.�_..._�..�---a�M_ Dalack suggested that since it seemed there was no opportunity to expand northward other than within Village territory, the Viilage Council should not concern themselves with expansion. Village Manager Bradford referred to page 49 of the budget docum�nt for the anaiysis reg�.rding the Refu�e and Recycling Enterprise Fund, and expiained costs had bee�. cut as a result of the new 8-ysar contract with Nichols S�.nitation. The Village Manager reported average savings was 31�--single family 39�, multifamily 22�r, and commercial 38�. viiiage Manager Bradford explained that the village's bargain�.ng chip in n,egotiating the new contract had been the 8-year term because the village did not have sufficient voiume with which to bargain, and reported that the level of service was guaranteed for 8 years. The Viilage Council agreed that Nichol� Sanitation had done a great job in providing service to the Viilage. � Village Manager Bradford commented tha.t the Stormwater . Utiiity Enterprise Fund had been created to account for th.e expenditures and revenues of the Stormwater Utility which became operational on October i, 1996, to provide a means for addressing required federal mandates concerning wate� quality as in the National Pollutant Discharge Elimination System (NPDES� permitting program associated with stormwater runoff and for fiood control and associated infrastructure repair and maintenance. Major capital projects proposed were Fai.rview Drive Project $43,630; Golfview Drive Project $50,Q00; Country Club Drive �rainage Extension Project $42,�00; and Bridge Road Drainage Improvements $9�,000. The Village Manager reported collapsing infrastructure needed repair, and pipes under the roadway on Bunker and Golfview needed repiacement, and that 30" concrete pipes wouid be used for replacement. It was also reported that work was in progress on a permit for Cauntry Club Drive �rainage Extension to Tequesta Circle. Mr. Bradford reported VILLAGE COUNCIL �ORRSS�P MST�TiNG MINUTB� JtTLY 13, 1999 PAGE 10 ENC�N had cantracted with a Jupiter company to sewer Tequesta Circle and Golf Ciub Circie, and the Village was trying to get a permit so that village drainage work could be done at the same time. Mr. Morrison reported timing probiems wzth some of the work, but he was trying to tie in the work. Mr. Morrison reported sewering wouid begin in 6-S weeks. village Manager Bradford explained that ENCON was not required to get village approval before beginning work becau�e the Judge had issu�d an order stating they were in compliance with Tequesta's �rdinance 209. Councilmember Cagretta questioned �ahy ENCON did not have to do dewatering on those streets but did have to do dewatering on other streets. �iscussion ensued. village Manager Bradford advised ENCON did not get a dewatering permit and t�ierefore the Village would report them if �hey did dewatering. Councilmember Capretta suggested a letter be written to ENCON requesting the data that led them to the conciusion that dewatering was not needed. The Village i�tanager explained that the proposed annuai assessment was $6.48 per eguivaient residential unit per month o� $77.75 a.nnually, a 4. S� increase as recommended to the �Til7.age Council, and that this cost appeared as a nan-ad valorem assessment on the property tax bill. A 4� discount could be rEali�ed by property owners if paid by December lst. The total budget expenditure was $371,796, with revenue of $371,796 which reflected a$16,656 General Fund subsic�� requested by the Viilage Coun�il. Vice Mayor Hansen questioned why the Pension Fund was in the budget document since i� was accumuiated from money paid by the Village to ernployees over which the village had no control, to which Vi3lage Manager Sradford responded the Village had limited control of the funds and must account for the fund5 in their accounting system to make the authorities happy. Finance Director Holloman expiained that this was a trust fund and the Village was required by State law to include it in their budget to be legaily in compliance, and that bills were paid out of VILLAGE CO'ONCIL �oRxs$ap MEETING ffiINO'PES JDLY 13, 1999 PAGB 11 the fund. The Vice Mayor asked where pension funds came from, to which Viilage Manager Bradford responded they could come from the Village or a third party. Village Manager Bradford reported no one-had retired yet, and that this plan had been instituted for new hires on January i, 1996, whiie older employees remained in the Florida Retirement Plan. The village Manager reported an actuarial study would be coming to the Village Council to look at contribution savings. Councilmember Capretta commented that contributions might need to be reduced. Village Manager Bradford explained that on July 22 the Village Councii would adopt the tentative miZlage rate and the time ar�d place for two budget hearings, September 9 and September 2�, would be announced, village Manager Bradford stated it was his opinian that no increase in the millage rate was needed this year. Ma.yor Mackail recalled the philosaphy a�ear ago had been to increase taxes i-1/2� so that funds could ac_cumulate for a public safety facility and a Viliage hall, and the Village was now very close to having funding avaiiable for those projects without a tax increase. Mayor Mackail questioned whether those projects could be accompiished during this year, to which village Manager Sradford responded details regarding that would be discussed at the Redevelopment Committee meeting schec�uled for July Z5. Discu�sion ensued. �+�tayor Mackail suggested excess funds could be used for facilities projects, to which village Manager Bradford responded the Viliage was very close ta having enough money without using funds surplus. �ouncilmember Capretta expressed. concern that the Village not expend more funds than cou].d be supported by the new construction, and estimated $5 million as the maximum debt'the Village could afford. Counciimember Schauer commented she was not comfortable obtaining proposals from other attorneys as requested by Councilmember Dalack at the last meeting, and was satisfied with the current firm and the level of service VTLLA�S C�UNCZL �aRRSHOP �BTING ffiINCJTSS JVL'Y 13, 1999 PAGL 12 .._.. . ._____�����_�.______.._____ they provided, and would like to stay with that firm. Councilmember Dalack commented there was nothing wrong with comparison shopping. CounciZmember �apretta commented this was not being done with the idea of getting rid af the present firm, with which Mayor Mackail concurred. Councilmember Schauer explained that she had felt that the proposal was to change the firm, which she beiieved would be a slap in the face to Mr. Randolph. village Manager Bradfax�d e�lained that he had called Mr. Randolph to inform him of the request, and had obtained an RFP from Palm Beach Gardens and other information pertaining to this issue. It was expiained that Mr. Ra�.dolph would be submitting a proposal. V . ADJOURI�LN'T v�ce Mayor 8aasea maved that the meetia,g be adjoux7aed. Councilmember nalack �econded the motioa. The vote �a the motion �as: Ron T. �aCkail - far Carl C. 8aasen - for Sasil S. �alack - for Joseph N. Capretta - for i�lfzabeth A. Schauer - for The motion was ther+efore passed aad adopted aad the meetiag was adjou�.ed at 6r45 P.�. Respectfully submitt d, . ���� � Betty L�ur Recording Secret�ry VILLAGL COIINCIL �ORKSSOP MEBTING MINE7TLS JULY 13, 1999 PAGE 13 ATTEST : Joann Manganiello Village Clerk DATL APPRC3VED :