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HomeMy WebLinkAboutMinutes_Workshop_07/14/1998 F Tf yP ~ Gf~~ ` ~ ~ VILLAGE OF TEQUESTA Post Office Box 3273 3~? Tequesta llri~~e ~~~ o Tequesta, Flo~icLi 33-i69-023 (><1) ~?~-62fN) 4° Fax: (>61) 7?~-C 203 F ph CC t1 VILLAGE OF TEQUESTA VILLAGE COUNCIL WORKSHOP MEETING MINUTES JULY 14, 1998 I. CALL TO ORDER AND ROLL CALL The Tequesta Village Council held a workshop meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Tuesday, July 14, 1998. The meeting was called to order at 5:31 P.M. by Mayor Elizabeth A. Schauer. A roll call was taken by Betty Laur, Recording Secretary. Councilmembers present were: Mayor Elizabeth A. Schauer, vice Mayor Carl C. Hansen, Joseph N. Capretta, and Ron T. Mackail. Also in attendance were: Village Manager Thomas G. Bradford, Village Clerk Joann Manganiello, and Department Heads. Councilmember Alexander W. Cameron was absent from the meeting due to illness. II. APPROVAL OF AGENDA vice Mayor Hansen made a motion to approve the Agenda as submitted. Couacilmember Mackail seconded the motioa. The vote on the motion was: Elizabeth A. Schauer - for Carl C. Hansen - for Joseph N. Capretta - for Ron T. Mackail - for • The motion was therefore passed and adopted and the Ageada Kec7rled Pu[~er • VILLAGE COUNCIL ~PORKSHOP MEETING MINUTES JULY 14, 1998 PAGE 2 ------------------------------------------ was approved as submitted. III. COMD~[7NICATIONS FROM CITIZENS (NON-AGENDA ITE12S) There were no communications from citizens. IV. REVIE~P OF PROPOSED FY 1998-1999 BUDGETS A) Nater Eaterprise Fuad Village Manager Bradford announced that total operating expenses, $2,329,640, were down 6.9g because ENCON and the Town of Jupiter lawsuit expenses had been adjusted since both--in a worst case scenario--should be over by January 1, 1999; therefore, legal expenses were cut to three months. Debt service for the 1998 Series Bond was $394,740, up from $204,870 in FY 98, which the Village Manager explained would increase next year to $525,000 because the payments were on a graduated step up basis and next year the full amount would be reached. Village Manager Bradford commented that the reverse osmosis facility was already underway; however, the bulk of the construction activity would occur during the next fiscal year. Proposed expenditures of the water Department were $5,010,000 for all projects and capital equipment for FY99. A new Plant Operator Trainee was proposed to be hired in July 1999, who would perform technical work such as maintaining technical equipment, calibrating lab instruments, performing electrical service on wells, and would be cross-trained as a plant operator. Tom Hall, water Department Manager, explained that one more person might be needed the following year depending on system demand and flaws. Village Manager Bradford explained that each month Mr. Hall would receive monthly requests for payment from the contractor along with proper • documentation. Mr. Hall would provide a report each month on all projects that constituted the reverse • VILLAGE COUNCIL WORKSHOP NESTING MINUTES ~7ULY 14 , 19 9 8 PAGE 3 ------------------------------------------ osmosis facility, containing a pert chart and a schedule, which the Village Council would receive attached to the Village Manager's report on priorities. Village Manager Bradford referred the village Councilmembers to page 38 of the handout document for an analysis of the debt service, and explained that the new bond issue required a debt service ratio of 1.2. The analysis revealed a 2.01 ratio, significantly above the requirement. The Village Manager explained that if the ratio dropped to under 1.2, then rates must be raised in order to provide sufficient funds. Village Manager Bradford predicted that next year, even with increased debt service plus a 5~ increase in operating expense, the ratio would remain above 1.2. village Manager Bradford explained that in October, 1998, water rates would rise by 4$ as per the Ordinance adopted in the Fall of 1997 to generate rates • to pay this debt service. The Ordinance also provided the ability to raise rates per CPI to cover costs applicable to the water Department annually thereafter. village Manager Bradford explained that Consultant Robert Ori was currently working on altering the step rate conservation program so residents could use more water before reaching the threshold level where the rate increased. Mr. Bradford commented that water sales were down due to the El Nino rains during the Fall of 1997 through the beginning of 1998, because when it rains the residents do not use Tequesta water for irrigation. Mr. Ori was looking at whether the Village could change the commodity rate or steps to change conservation patterns. village Manager Bradford explained that ten years ago the village had established the step rates to delay having to build a RO plant until the cost of that technology came down. This had happened, and the step rate program had altered the conservation patterns. The Village now no longer needed to tell residents to conserve water, except to meet SFWNID requirements. Tom Hall commented that in • the past, gallons per capita still increased even after a rate increase. Vice Mayor Hansen inquired whether the VILLAGE COUNCIL WORKSHOP DIETING MINOTES JULY 14, 1998 PAGE 4 ------------------------------------------ environmental aspect of not encouraging conservation should be ignored, to which Mr. Hall responded that the step rate program should be altered, not abolished, and that the Village still needed to encourage conservation, but also to sell water, and the situation would continue to be monitored. Mr. Hall explained that the Village's Comprehensive Plan specifically states the Village was to achieve and maintain 175 gallons per capita; and if that amount was exceeded then a lot of other things would be mandated that would cut back water sales. Mayor Schauer pointed out that the new developments would increase water sales because of the increased population, to which Mr. Hall responded that would not increase the per capita consumption. Councilmember Capretta commented that the Village had forced residents into using wells, and they would not change much. Village Manager Bradford reported the Village was working on selling water to areas in Palm Beach and Martin Counties which did not have water service, that Commissioner Janet Gettig would be contacted before moving forward in Martin County, and that research was being conducted into whether grant money for such projects was available. The village Manager reported there were 190 connections available in Martin County alone. Vice Mayor Hansen questioned whether the Village's wells were in danger of salt water intrusion, to which Mr. Hall responded that the salt water intrusion experienced during the 1970~s had been due to poor management practices of rotation and overpumping, which had taxed the supply; and that current intrusion was in the southern portion of the peninsula, while Tequesta's wells were located in the northern end. Mr. Hall explained that the Village had not studied the impact on Tequesta's system of possible salt water intrusion. Councilmember Capretta reported he had heard from a • member of one of the Boards of Directors of Turtle Creek that people in Turtle Creek West blamed Tequesta wells VILLAGE COTTNCIL NORRS8OP FETING aSINUTSS JULY 14, 199$ PAGE 5 ------------------------------------------ for their wells going dry. Mr. Hall responded the Village had monitored for several months after installation of the Village well in Turtle Creek and there had been no impact whatsoever. Village Manager Bradford explained that before permits for Village wells could be obtained the village had been required to provide over $30,000 worth of computer modeling to prove there was enough water in the peninsula for the Village wells. A small crescent-moon shaped area of available water had been found, and that was where the Village's three wells had been placed--one at the entrance to Turtle Creek, one inside Turtle Creek, and one past the new wall and sign. 1.1 MGD had been permitted by SFWMD for the three wells, which had later been cut back to 900,000 GPD. Village Manager Bradford explained that a Dames & Moore report showed that through the loss of • recharge from septic tanks that the aquifer could be affected, by anywhere from 15~ to 20g reduction in recharge to the aquifer, and that ENCON had always been concerned that there be enough fresh water in the aquifer but now wanted to install sewers which could reduce the supply, and that was what the current battle was all about. Mr. Hall commented that salt water intrusion had been a limiting factor in the depth of the village wells. During comments and questions from the Village Council, Vice Mayor Hansen questioned whether $525,000 would be the maximum debt service payment, to which Village Manager Bradford responded that figure would fluctuate by one to two thousand dollars per year. Councilmember Capretta commented that in looking at a profit margin, revenue less expenses less debt service must be sufficient to absorb overheads and maintain a profit; and he did not want to someday learn that Water Department revenues were insufficient to do this. village Manager Bradford explained that applicable operational costs of the Water Department were $175,000 for administrative • management; $75,000 transferred to the Capital Improvement Fund, $140,000 transferred to the General . VILLAGE COUNCIL WORKSHOP DIETING MINDTES JULY 14, 1998 PAGE 6 ------------------------------------------ Fund through surcharge revenues from the unincorporated areas; and $10,000 in contributions to the arts groups. Mr. Bradford commented that management understood there were overhead costs that must be covered by the Water Department and that the Village also wanted to accrue money for projects, and advised that money held as reserves could be spent by the Village Council for any lawful purposes. In response to Councilmember Mackail's question of the amount held in surplus because of the Jupiter lawsuit, Village Manager Bradford responded it was between $1.6 and $1.8 million and if the lawsuit was won by the Village they would have the right under Ordinance to take expenses, including legal expenses, off the top and then provide the rest as rebates to the citizens. Councilmember Capretta suggested the need for ideas for different methods of returning the funds to • residents so that the Village would get the most political clout, and stated that more should be done than just mailing a check. Councilmember Capretta expressed an idea of having a big party at Constitution Park with money in barrels so that residents could pull out handfuls of bills. Village Manager Bradford commented he was working on ways to let residents donate their shares to Village projects in lieu of getting it back. After further discussion, Mayor Schauer commented that a lot of people were looking forward to getting that money back. B) Refuse and Recycling Fund Village Manager Bradford explained that refuse and recycling fund costs appeared on property tax bills as a non ad valorem assessment and represented costs for collection by Nichols Sanitation of refuse, recycling materials, and yard waste. The Village Manager commented that the amount of the contract would increase 1.4~ effective October 1, 1998; however, the rate to residents • would not be raised because the fund balance was sufficient to cover the annual cost. Mr. Bradford • VILLAGE COUNCIL 6PORRSHOP DIETING MINUTES JULY 14, 1998 PAGE 7 explained this was the final year of the contract with Nichols, and it was time to consider what the Village Council wanted to do for collection services. Choices were to renew the agreement with Nichols Sanitation, to bid out, or to piggyback the SWA contract won by BFI Industries, which would save 20~ for both the Village and commercial customers. Since BFI Industries was the new franchisee in the unincorporated areas, the Village would have the opportunity to monitor their performance for approximately three months before a decision must be made regarding the Village contract. Discussion ensued regarding performance of different companies. Village Manager Bradford stated that by the first week in January 1999, Public Works and Recreation Director Gary Preston had to know the Village Council's decision because of the time required to go out for bids, and to possibly hire a • consultant, etc. Village Manager Bradford explained that Nichols Sanitation wanted the Village contract. Mayor Schauer commented she had had many complaints over the past two years from residents regarding trash and garbage not being picked up and yard waste not picked up. The Village Manager commented Jupiter had negotiated a contract with Nichols at rates so low the company had had to cut back on their personnel, and that this was an industry-wide problem. During discussion of this matter, Mayor Schauer commented that Nichols might match the price the Village could get by piggybacking the SWA contract, and that something must be done for commercial customers. Village Manager Bradford explained that Nichols had already announced they could not give Tequesta the same rate as Jupiter. Jupiter's service was exactly the same as that provided to Tequesta except pickup days were different and they were getting the service at a lower rate. Councilmember Mackail commented that North Palm Beach had their own refuse collection program, to which Village Manager Bradford responded Tequesta had never considered that as a possibility • because of the potential problems. Vice Mayor Hansen commented on the changes in the industry over the past • VILLAGE COUNCIL gPORRSSOP MELTING MINUTES JULY 14, 1998 PAGE 8 ------------------------------------------ few years. C) Stormwater Utility Enterprise Fund Village Manager Bradford reported that the proposed annual assessment set at the June Village Council meeting was $6.20 per month per equivalent residential unit, or $74.40 annually, which was a 10~ increase as recommended by the Village Council acting in their capacity as the Stormwater Utility Board. Village Manager Bradford explained that the total expenditure budget was $279,810, with revenues of $282,340; and that revenues reflected a $24,500 General Fund subsidy requested by the Village Council. This subsidy would continue for another two years. Mr. Bradford explained that at the south end of • the Country Club in the Golfview Fairway Drive area, Stormwater Utility Director Al Oslund was going to try to do two projects at the end of next fiscal year so that the funds from both fiscal years could be used. Stormwater Utility Director Oslund reported FEMA had provided $95,000 for the Tequesta Drive Diversion Project, and that he had requested an additional $500,000 from FII~ for the piping in the Country Club. Mr. Oslund stated that there was a good possibility the Village would receive those funds, which would mean more of the pipe work could be done. The Village Manager commented that just with the $95,000 grant more of the pipe work could be accomplished sooner than was previously anticipated. Mayor Schauer commented that the weight of Jupiter trucks had ruined the grass along Seabrook Road in the Tequesta right-of-way. Mr. Preston explained that Ranger Construction had also been in that same area doing work for the Village, and repairs had not been made because in • two years the village planned to rebuild that area, and there was presently no irrigation. Mr. Preston assured • VILLAGE COUNCIL WORKSHOP FETING MINOTES JULY 14, 1998 PAGE 9 ------------------------------------------ the Mayor that sand from the damaged areas would not wash into Dover Ditch. During further conversation, Mr. Oslund explained that the main purpose of the larger pipe going north-south on Tequesta Drive near the intersection with Riverside Drive was to release water away from Dover Ditch. Mr. Oslund explained that increasing pipe size from 36" to 48" doubled capacity. Mr. Oslund stated Tequesta would meet all required deadlines to obtain the money necessary for the pipe work. Village Manager Bradford commented that at the last meeting Councilmember Capretta and Councilmember Mackail had requested a forecast for the future, which he had prepared. The Village Manager reviewed the forecast provided in spreadsheet format, and explained that on Property Values Past and Projected for Three Years, actual data of taxes received for the past six • years including FY99 had been used. Calculated over this time period, the average was 2.55; therefore, in future years staff could anticipate about a 2.55 increase in revenue from an existing tax rate. Village Manager Bradford explained that the future average would be a little different because of the new projects. For the year 2000 the same increase in the value of existing construction as was received this year was used with Sterling House Two added, resulting in a dollar change increase of $13 million which provided only a 3.2~ increase in taxable value for FY 2000. In 2001, Lighthouse Cove would be added at an approximate value of $20 million; therefore, another $15 million was added for increase in the value of existing construction plus $20 million for Lighthouse Cove since there is no homestead exemption on apartments; resulting in an 8.3~ increase for FY 2001. Village Manager Bradford commented Director of Community Development Scott D. Ladd had reported Lighthouse Cove had not yet pulled their permits, so that the Village Manager considered it impossible for Lighthouse Cove to be substantially complete by January 1, 2000. In response to concern expressed by Mayor Schauer about the permits not having been pulled, Village Manager Bradford • explained that Mr. Ladd was in daily contact with Dayco representatives and they were working toward that action. VILLAGE COUNCIL ~PORRS8OP MEETING MINUTES JiTLY 14 , 19 9 8 PAGE 10 ------------------------------------------ Mayor Schauer reported at the Sterling House Two groundbreaking ceremony the previous Monday, she had heard that the owners of The Crossing anticipated opening within two years. Village Manager Bradford responded he had not included The Crossings in his calculations for FY 2002 because he had no idea of its worth, and had only used the average of 2.55~k for that year. Village Manager Bradford explained that at the bottom of the spreadsheet where the dollar increase of ad valorem revenue was shown, these amounts would only be true if the assumed scenarios came true. The second page, Ad Valorem Revenues Past and Projected, reflected the history from FY 94 through FY 95 which showed an average increase of 6.9~ annually for non-ad valorem revenues, or all revenues other than property taxes. The third page covered expenditure history based on adopted budgets, and revealed a 5.5~ increase in expenditures per year average, which was projected out • three years. Village Manager Bradford then explained that the results of the first three spread sheets indicated a 5.7$ tax increase would be needed to generate the $147,000 the Village needed in order to do all of the building projects, and that the increases in tax rates shown were in addition to whatever the Village Council decided to do about the capital projects. Village Manager Bradford explained that with a tax increase of 2.7$ each year for three years it was believed that all of the capital projects and operating expenses would be covered; however, this was an estimate. The advantage to borrowing all funds needed at one time was discussed. It was pointed out that this would mean a savings to the village. Councilmember Capretta stated he favored a low tax increase each year rather than having to have a huge increase later. Vice Mayor Hansen suggested that this had been a good year for Tequesta, with good news from the courts and the appraiser s office, and that new projects would add to the tax base, and recommended celebrating this year by instituting only a 1~k tax increase. Councilmember Mackail favored a tax increase in order to bring to fruition for the community the vision of • public facilities and a cultural and civic downtown. Village Manager Bradford commented the Fire Department must have new VILLAGE COUNCIL OPORKSHOP MEETING MINUTES JIILY 14, 1998 PAGE 11 living quarters, which would cost $750,000; $590,000 was needed to convert the existing City Hall building for the Police Department; the cost to renovate the downtown would be $1.5 million, and the cost of a new village Hall would be $1.5 million whether it was located downtown or next door. The Village Manager pointed out that the Village Council needed to decide if they wanted to do all the projects and if they did, then decide whether they wanted the bond people to get all of the money, which would be cheaper for the Village. Village Manager Bradford advised that no decision had to be made regarding a millage rate until the July 23 village Council meeting, and that historically a higher rate than anticipated was set initially since the rate could be reduced later but could not be increased. Discussion ensued regarding Lighthouse Gallery participation in the downtown plan. Councilmember Mackail commented he did not want to speculate with the Gallery, but wanted to know whether they would be either on board or not. Village Manager Bradford explained that negotiations were continuing with the Gallery, and reminded the Village Council that the project did not require Lighthouse Gallery's participation to go forward, but their participation would make the project better. The Village Manager explained that Lighthouse Gallery now wanted double the amount of land that had been offered to them, and reported that the project was proceeding and that he had signed authorizations to have the appraisals done. Councilmember Mackail suggested going to a 2~ tax increase initially, which could be reduced later. Councilmember Capretta suggested a 2~ or 2-1/2~ increase in order to be sure the Village would have enough money. Mayor Schauer requested that 2-1/2~S be placed on the agenda for the July 23, 1998 Village Council meeting, which could always be reduced; and that by September the Village Council would have more numbers and could then make a final decision. Village Clerk Manganiello reported that the Gallery had expressed concern that the amount of land shown to them on the initial plan • would not be enough to provide sufficient parking, and that she had done a comparison with the Norton Art Gallery in West • VILLAGE COUNCIL ~PORRS8OP MEETING MINUTES JULY 14, 1998 PAGE 12 ------------------------------------------ Palm Beach which was sorely short on parking space and shared adjacent on-street parking. She had found that parking at the Norton functioned beautifully and advised the Village Council that she would report the comparison to Lighthouse Gallery, and perhaps they would reconsider the amount of land they desired. Another point that had been raised by Lighthouse Gallery was that they wanted to build a one-story building because of problems they preceived with moving art around in a two-story building; however, it would only be a matter of installing proper elevators, etc., to eliminate those concerns. Councilmember Capretta expressed concern that no plan had been put forth by Lighthouse Gallery to raise money. Councilmember Mackail stated the Lighthouse Gallery had three years to exercise their option, but the village could not wait three years and needed to know whether they intended to exercise their option. Mayor Schauer commented the Gallery's position was that all their boardmembers were not here in the summer and could not meet to discuss this until the Fall. Village Manager Bradford reported that he believed one of the members of the Lighthouse Gallery Board of Directors was planning to front the $433,000 necessary to buy the land. village Manager Bradford stated it might come down to the village Council having to make a decision before it was known whether Lighthouse Gallery would participate. Vice Mayor Hansen commented that Lighthouse Gallery Director Margaret Inserra had advised she was out of the decision making process and the Board of Directors was handling it, some of whom had had experience with cultural facilities in New York and other areas, and that the main problem was parking. Councilmember Mackail commented a Board meeting could be convened in 2-1/2 hours through today's technology. Village Manager Bradford commented that the Gallery's Board should be able to make a decision within six weeks, when all approvals were anticipated. Mayor Schauer requested that the initial tax increase be 2.5~, with which other Councilmembers expressed agreement. • • VILLAGE COUNCIL iRORRSHOP MEETING MINQTES J[TLY 14 , 19 9 8 PAGE 13 ------------------------------------------ V . ADJOURNMENT vice Mayor Hansen moved that the meeting be adjourned. Councilmember Mackail seconded the motion. The vote on the motion was: Elizabeth A. Schauer - for Carl C. Hansen - for Joseph N. Capretta - for. Ron T. Mackail - for The motion was therefore passed and adopted and the meeting was adjourned at 7:07 P.M. . Respectfully submitted, Betty Laur Recording Secretary ATTEST: ~-...~ Joann Manganie o Village Clerk DATE APPROVED: - - •