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HomeMy WebLinkAboutDocumentation_Regular_Tab 06B_04/28/1994 Y _ � ; y � ; VILLAGE OF TEQUESTA Post O(fice Box 3273 • 357 Tequesta Drivc � � Tcyucsta, Flarida 33469-0273 • (407) 575-6200 �- ' � � Fax: (407) 575-6203 s o �� i , �N f(1UM� FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES APRIL 15, 1994 I. CALL TO ORDER AND ROLL CALL . The Finance & Administration Committee of the Village Council held a Committee Meeting on Friday, April 15, 1994 in the Village Hall, 357 Tequesta Drive, Tequesta, Florida. The meeting was called to order at 9:05 A.M. by Chairman Earl L. Collings, with Co-Chairman William E. Burckart in attendance. Staff inembers present were: Village Manager, Thomas G. Bradford; Village Clerk, Joann Manganiello; Bill Rascavelis, Finance Director; Tom Hall, Water System Manager, and Gary Preston, Director of Public Works and Recreation.' Also in attendance was Clark Bennett, of Florida Municipal Advisors, Inc. and Richard Staudinger, Gee & Jenson. II. APPROVAL OF AGENDA The Agenda was approved as submitted. III. REVIEW OF DOVLR DITCH RIP ALTERNATIVE Village Manager Bradford stated that the Finance & Administration Committee had originally asked the Village Manager to meet with the South Indian River Water Control District (SIRWCD) to consider alternatives to the piping of Dover Ditch. SIRWCD gave a cost estimate using the rip-rap � for the embankments. Though there are cost savings using this route, there are higher operational costs. Richard Staudinger, Gee & Jenson, stated that the costs of operating and maintaining a culvert system are much lower. Chairman Collings asked if the rip-rap solution would cure the current problem. Mr. Staudinger answered it would cure the problem for five years only. �>,,, , �i:. � n ; . . Fiaance aad �dministratioa Committee Keetinq Minutas April 15, 1994 Page Z -------------------------- Chairman Collinge asked further if Mr. Staudinger foresees, during the next five years, any changes in drainage pattern of the area that might cause less flow in the Dover Ditch. Mr. Staudinger stated he might foresee more flow, since less outflow occurs. If outflow does occur, he would foresee a static condition. Chairman Collings asked for a maintenance cost analysie for the culvert structure. Mr. Staudinger stated he included two life-cycle cost analyses associated with the culvert structure estimated costs. Maintenance costs for the first 25 years of the culvert system would be very minor in nature si.milar to the first five years of the rip rap section. After 25 years, costs start increasing for the culvert, ending up to be approximately $575,000 at the end of 50 years. The rip-rap sections, over a period of 50 years would cost approximately $3,175,000. A propoeal from C& L Hawthorne & Sons, Inc. to install the rip-rap gave a quote of $284,000 if Hawthorne did the job without public bidding, and $434,000 if the job was done through other means. The $284,000 quote did not include the cost of bonds, or public bidding, etc. The Committee questioned why the proposal was so much less without a Bond. Gary Preston reported that Charles Hawthorne, President of Hawthorne & Sons, Inc. did not want Tequesta to go out to bid for the job, and that Tequesta should accept his proposal without going out to bid. Otherwise, the cost would increase by 50$. His quote of $284,000 was an actual quote. Chairman Collings stated that three different alternatives were initially discussed: 1) rip-rap; 2) the culvert solution; and 3) a totally covered ditch. Mr. Staudinger stated that what is compared in the documentation before the Committee today is the cost of a rip-rap section vs. a boxed culvert, which a complete enclosure. Mr. Bradford stated that Jupiter is preparing firet stages of their Stormwater Utility Plan which will come on line October 1994, with all property owners receiving their assessment starting October 1994. The Jupiter area south of Dover Ditch has essentially no drainage. There is the possibility that Jupiter may recognize that the drainage area in that section must be enhanced and they have no place to put the runoff except in Dover Ditch. Richard $taudinger stated he would not assume that would not occur without some improvements that would be required to be paid for the Jupiter Stormwater Utility. Finaace and Admiaistration Comaaittee Meeting Minutes April 15, 1994 Paqe 3 -------------------------- Mr. Bradford atated that Jupiter specifically has atated they would not be in a position to share maintenance costs at this paint regarding Dover Ditch, but may be in a position to do so after the Stormwater Utility is in place. Chairman Collings inquired that if the rip-rap solution was chosen at this point, would the cost increase to later switch to a covered culvert. Mr. Staudinger answered there would absolutely be an additional cost. If the covered culvert solution was chosen, construction could start November/December '94 with a completion date of April/May '95. Chairman Collings stated he leaned toward the rip-rap solution. Mr. Staudinger cautioned the Committee that if they chose this route, it would be important to set aside maintenance monies. Mr. Bradford stated that if the covered culvert route was chosen, it would give more property to the property owners and generate more tax revenue, but that revenue increase was quite insignificant. However, 90$ of the property owners are not interested in any additional land. Village Manager Bradford felt the covered culvert was the best solution, if it was affordable. - Chairman Collings stated that, on the thesis of doing something right, he would tend toward recommending to the Village Council the two-54" diameter culverts, but knowing the thought patterns of the citizena to live now as cheaply as possible, he leaned more toward the $284,000 bid from Hawthorne & Sons, Inc. Co-Chairman Burckart etated he leaned more toward the rip-rap solution, because of costs, and it ie cheaper for a ten-year period. Since it appears inevitable that Tequesta will have an eventual Stormwater Utility, the future would help the Dover Ditch situation. Therefore, he would almost prefer to revisit the Dover Ditch problem in another year. Gary Preston reminded the Committee that in that year interim the Dover Ditch condition would just grow steadily worse. Residents of the north side of the Ditch have informed the Village that if they start losing their property to erosion, the Village would have a lawsuit on its hands. Mr. Staudinqer alerted the Committee that this would not be a good risk management position for the Villaqe. l�inaace and Admiaistration Committee Meeting Minutes April 15, 1994 Paqe d -------------------------- The Committee recommended that: 1) Direct Gee &,7eneon toward mangrove mitigation, mitigating an acre of land along the Loxahatchee River in the wild and ecenic area to be done in conjunction with the DOT project on Indiantown Road; 2) Use the two 54" twin culvert solution to the Dover Ditch problem, using out-of-pocket monies, and if in the long run Tequesta must, alone, pay for the entire project, 'do a separate Bond issue to finish the project. IV. FINALIZATION OF PROPOSED 1994 BOND ISSUE Village Manager Bradford explained that the 1994 Bond Issue currently consists of three projects: 1) Tequesta Park Improvements ($286,000); 2) Constitution Park Improvements ($408,000); and 3) Tequesta Drive Pathways ($94,000). The total Bond Issue would be $1,435,000, with a 2.12$ increase over the current millage rate. Councilmember Capretta, by written correspondence, asked the Committee to consider adding Country Club Drive improvements (paving of the roadway, entranceway beautification with sign, etc.) to the Bond Issue. Co-Chairman Burckart suggested that, before going to the Village Council for final approval, that local banks (i.e., Barnett Bank, Sun Bank, and First Union) be approached regarding a loan for this amount as opposed to a Bond. Clark Bennett, of Florida Municipal Advisors, Inc., stated that a bank will primarily focus on what the term of the Bond Issue will be. If the Village would stay within a 7-10 year range of maturity, there will be a good response from the bank. Beyond a 7-10 year range of maturity, no bank will give a meaningful response. Chairman Collings queried as to the wisdom of doing a two-tier f inancing plan - i. e., 10 years at a bank, then a 10-year Bond Issue or another bank loan for the balance of the projects. Mr. Bennett stated he did not know what a bank�s appetite would be for that kind of arrangement. He did inform the Committee that the sooner they move on the financing, the better off the Village would be, since the Federal Reserve is again threatening an increase in interest rates. Finaace aad Admiaistration Committee Meetiag Minutas April 15, 1994 Page 5 -------------------------- � Village Manager Bradford reminded the Committee that the same discussion had previously taken place (i.e., bank financing vs. bonding) regarding the fire trucks, the conclusion of which was that the banks were not the best route since that would make the Village subject to variable rates and balloon payments. Village Manager Bradford stated that the costs for the three projects for the Bond Issue are estimated costs and it would be necessary to have hard costs available before going to Bond Issue. Chairman Collings felt the Village should take a shot at assuming what the final costs of the projects would be and move toward the Bond Issue to avoid being faced with higher interest rates. Co-Chairman Burckart concurred. Clark Bennett cautioned the Committee against over-issuing the Bonds, since it would cause the Village a real tax problem, and the Federal Government frowns on over-issuance of bonds. Chairman Collings felt, including Country Club Drive (with minimal landscaping along Country Club Drive ($180,000), trees and the entranceway median separator ($27,ZD0), an overlay on=_ _- what exists today ($95,000), with no curbing) in the Bond Issue, the Bond Issue would be approximately $1,650,000. Village Manager Bradford suggested that the Committee could consider doing the pathway i.mprovement project incrementally through the capital improvement fund as opposed to bonding it. If that was done, Country Club Drive could replace it in the Bond monies. The Committee recommended that: o Costs for Country Club Drive be finalized at the Public Works Committee Meeting of April 26, and place that cost in the Bond Issue; o Subtract Tequesta Drive Pathways out of the Bond monies, and fund the Pathways project through the Capital Improvement Fund. Bill Rascavelis recommended that Florida Municipal Advisors, Inc. be contracted as the Village Financial Advisor. The Committee concurred. � Fiaance aad Admiaistration Comnaittee Meeting Minutes April 15, 1994 Paqe 6 -------------------------- Clark Bennett informed the Committee that it would be necessary for them to engage Bond Counsel to develop the required documents for this Bond Issue. The Committee instructed Mr. Bennett to acquire quotes from three firms for that representation. V. REVIEW OF COMMUNITY SURVEY RESPONSE TO POSSIBLE REC�ULATION OF GARAt3E SALES Village Manager Bradford reported that the Country Club Community Association had approached the Committee previously regarding consideration for further control over garage sales. Some people who live in the Country Club are making a living through the conduct of garage sales on a regular basis. There are also organizations, companies and individuals which do this and get the residents to -hold the garage sale. The Association would like a legal avenue to atop this activity. A community survey regarding the regulation of garage sales in the Village was conducted via the Village Newsletter from which there was little response on which to base a decision. The Committee recommended that the regulati:on remain as is (two garage sales per home per year), and suggested the Homeowners Association's Associations deal with the issue in their own areas. Co-Chainaan Surckart left the meetiaq at 10:45 a.m. VI. CONSIDERATION OF REQUSST TO PROHIBIT PARRING IN THE RIGHT-OF- WAY OR SWALE AREAS OF COUNTRY CLUB DRIVE Village Manager Bradford explained that no parking is currently allowed in the Tequesta Drive swale areas. The Tequesta Country Club Homeowners Association would like to extend those restrictions to Country Club Drive. Chairman Collings recommended an Ordinance be prepared extending the restriction to Country Club Drive. Finance and Admiaistratioa Cominittee Meeting Minutes April 15, 1994 Paqe 7 -- ---------------------- VII. CONII�SITTEE CONSIDERATION AND RECOIrIIKENDATION RELATIVE TO TEQUESTA WATER DEPARTMENT SURCIiARGE Village Manager Bradford explained that it is the Village Attorney's opinion, based upon the Ruling of the Judge in the Jupiter surcharge issue, that Tequesta can proceed with the surcharge, provided that the Village treat all external properties in a non-discriminatory fashion. Currently there is an 8� Village surcharge to Martin County and Palm Beach County, creating approximately $80,000/year of revenue. The legal surcharge allowed by the State Statues is 25�. If that is the amount chosen by the Village Council, it will generate approximately $240,000 of revenue per year. Chairman Collings suggested doing a 25$ surcharge, with a two- stage increase (7-8$ increase the first year; 7-8$ increase the following year). VIII. CONSIDERATION OF DEVELOPERS AGREEMENT TO EFFECT RACIAL BALANCE IN PUBI�IC SCHOOLS Village Manager Bradford explained that Councilmember Schauer is the Village Council Representative to the North County Education Committee, with Village Clerk Joann Manganiello being the Staff li.sison to that Committee. Jupiter is preparing a Developers Agreement which would require all developers to do certain activities in regard to advertising for their development to encourage minorities to consider that development community. Councilmember Schauer has asked that the Village Council consider a Developers Agreement for the Village of Tequesta which would do the same thing. One problem noted by the Village Manager is that, though the Village has reference in its Statutes to Developers Agreements, there is no dictate in the Statutes mandated that such be done. Therefore, even if the Village Council does not agree with the enactment of a Developers Agreement, that Ordinance should be amended to address that issue. Chairman Collings felt a pattern should be set to address a Developers Agreement on a project-by-project basis, but not , made universal. The Committee recommended that the Ordinance be amended giving the Village Council the power to impose a Developers Agreement if they so desire, in order to establish the objective of racial balance. 4 4 Finance and Admiaistration Ca�umittee Meeting Miautes April 15, 1994 Paqe 8 -------------------------- IR. CONII�IUNIGATIONS FROM CITIZENS Wade ariest felt the Country Club Drive traffic issue has been blown out of proportion, since the traffic study recently completed for the Joint Meeting which was held showed that the real traffic problem was in Jupiter. He felt: 1) improvements to Country Club Drive roadway to make it smoother will only encourage more and faster traffic; and 2) Country Club Drive is nnt a dangerous situation and that the Village Council should strongly reconsider the expenditure for Country Club Drive improvements. Pat Rloiber stated that she objected to the restrictions regarding the issue of parking in the swale areas, since many people do not have enough parking space in their driveways for all of the cars in the family. She felt the restriction should at least allow for some kind of exception such as when a family is having a party. Village Manager Bradford stated that police are told to use discretion when considering someone who has parked in a swale area. %I. ADJOURNMENT There being no further business before the Committee, the meeting was adjourned at 9:40 A.M. • Respectfully submitted, \��� 'v �� Fran Bitters Recording Secretary ATTEST: Joann Manganiello Village Clerk DATE APPROVED: