Loading...
HomeMy WebLinkAboutMinutes_Special Meeting_02/27/1997C~ G i iE vP ~-' GFs VILLAGE OF TEQUESTA Post Office }3os 3273 3~~' Tequesta Drip e r ~ o` Tequesta, Florida 33 f69-02?3 (>CI ) 57>-6?00 ~ ~* ~ 4o P~tx: (~61) ~~~-(203 F,OCH CO ty VILLAGE OF TEQUESTA VILLAGE COUNCIL SPECIAL MEETING MINUTES FEBRUARY 27, 1997 • • I. GALL TO ORDER AND ROLL CALL The Tequesta Village Council held a special meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Thursday, February 27, 1997. The meeting was called to order at 7:11 P.M. by Mayor Ron T. Mackail. A roll call was taken by Betty Laur, Recording Secretary. Councilmembers present were: Mayor Ron T. Mackail, Vice Mayor Elizabeth A. Schauer, Joseph N. Capretta, and Carl C. Hansen. Also in attendance were: Village Manager Thomas G. Bradford, Village Attorney John C. Randolph, Attorney Scott G. Hawkins, and Village Clerk Joann Manganiello. Councilmember Michael R. Meder was absent from the meeting. In attendance representing the Town of Jupiter were: Mayor Golonka, Vice Mayor Daniels, Councilor Henderson, and Councilor McCarthy. Councilor Amero was absent from the meeting. Also in attendance were Jupiter Town Manager Evett and Town Attorney Al Malefatto. III. APPROVAL OF AGENDA Vice Mayor Schauer made a submitted. Councilmember vote on the motion was: motion to approve the Agenda as Hansen seconded the motion. The Ron T. Mackail Elizabeth A. Schauer Joseph N. Capretta Carl C. Hansen - for - for - for - for i;~•~ ~~~i~-<< ~'npc-~ • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 2 The motion was therefore passed and adopted and the Agenda was approved as submitted. III COMMUNICATIONS FROM CITIZENS (NON-AGENDA ITEMS) There were no communications from citizens. IV. DISCUSSION WITH THE TOWN COUNCIL OF JUPITER PURSUANT TO F.S. 164.103(2) REGARDING JANUARY 30, 1997, LETTER FROM TOWN OF JUPITER INDICATING INTENT TO FILE SUIT CHALLENGING TEQUESTA'S AUTHORITY TO CONSTRUCT WATER TREATMENT FACILITIES Mayor Mackail explained for the benefit of the public that Jupiter was alleging that the Village of Tequesta must receive Jupiter`s permission in order for the Village to • construct a reverse osmosis plant. Accordingly, pursuant to F.S. 164.103(2), Tequesta had called this evening's meeting to comply with the law in an effort to amicably resolve this dispute. Mayor Mackail requested any suggestions from Jupiter to amicably resolve the dispute. Mayor Golonka stated that it was her understanding that Jupiter was required under F.S. 164.103(2) to attend this meeting, that Attorney Malefatto would explain the Town's position, and any comments from Tequesta would be welcomed. Town of Jupiter Attorney Malefatto explained that Jupiter was open to resolving this matter and presented the Town's legal position: F.S. 180.06 requires one municipality to obtain consent from another if that municipality intends to duplicate service of a municipal utility, such as providing water, in an area already serviced by the other utility. Attorney Malefatto commented that Jupiter provides water to Tequesta and that pursuant to the statute, Tequesta should have sought Jupiter's consent before proceeding with steps aimed towards construction of the proposed reverse osmosis water plant which Jupiter learned of when Tequesta filed for a DEP permit, and an RFP had gone out for bonding to pay for the plant. Jupiter was therefore moving in the direction of seeking to enjoin construction of the plant. Jupiter • opposed construction of the plant because it was Jupiter's belief that construction of this plant was intended to provide a method to circumvent the water bulk sale agreement • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 3 existing between the communities and which is in dispute in ongoing litigation. Attorney Malefatto commented that it was Jupiter's wish to resolve this issue, and that they strongly believed this issue to be tied in with the rate case, so that making progress towards resolving one case would allow the other to be resolved. Jupiter had researched the need for a reverse osmosis plant in Tequesta and had concluded that there was no justification for its construction based on future growth projections. Attorney Malefatto invited information from Tequesta regarding the need for the plant, where projected growth was, and what areas could not be served by Jupiter which were not presently being served by Jupiter. Mayor Mackail reaffirmed that Village officials were present to listen to comments from Jupiter in regard to an amicable resolution to the issue. Mayor Golonka responded that she found that odd since the municipalities were in their • present positions because of existing litigation, that currently Tequesta had a contract with Jupiter to provide water through the year 2007, and that the contract dispute had been discussed but had not been able to be resolved. Mayor Golonka commented that Jupiter had tried to obtain information as early as 1993-94 from Tequesta as to whether the Village planned to stay with Jupiter, so that, if needed, Jupiter could make plans for a major expansion. Tequesta had asked for more time to consider the matter, but after a point Jupiter had had to make a decision, and had decided to go ahead with water plant expansion based on serving Tequesta as required by the contract and on their projected future growth. Jupiter was concerned that Tequesta would no longer need to purchase water from Jupiter if they constructed the planned reverse osmosis plant. Mayor Golonka also expressed concern that Jupiter residents served by Tequesta on the Tequesta side of the river would be faced with increased rates since an RO process expensive; and the possibility that Jupiter would take those residents back at some future date, which would affect Tequesta's service area. Mayor Golonka commented that there was concern that if Tequesta went ahead with construction of an RO plant that it would affect some Jupiter residents and also the issue of the contract. Mayor Golonka stated that • Jupiter looked upon this meeting as a way to bring all issues together and continue to work to resolve them all. • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 4 Mayor Mackail questioned Village Attorney Randolph as to whether it was proper to discuss the rate issue since that was in litigation. Attorney Randolph advised that the Village could discuss anything they believed would amicably resolve the issue before them tonight--the notice to file suit under Chapter 180, and that discussion regarding pending litigation was not recommended; however, agreement could be made to hold another meeting to discuss those issues and potential resolution of the current lawsuit. Attorney Randolph stated that he believed the issues to be separate. Mayor Mackail invited Jupiter to return to another meeting to discuss the rate issue. Attorney Malefatto commented that there was disagreement over whether there were two separate issues, since Jupiter believed the issue of whether Tequesta should build a reverse osmosis plant was tied to the contract. Vice Mayor Daniels asked why Tequesta saw a need for the plant. • Councilmember Capretta recalled that at the last joint meeting he had pursued only one line of questioning--whether the water rate issue when Jupiter had raised Tequesta's rate 92o--was the only issue, or whether Jupiter had a strategy or other concerns. Councilmember Capretta stated that he had been assured that the rate issue was the only issue of concern, and had been brought about from data provided by Jupiter's consultant. Councilmember Capretta commented that he was very happy to learn tonight that there were other issues, and that he believed there was probably a linkage between issues. Councilmember Capretta stated there was no data that Jupiter could have which in any way would indicate that Tequesta had thought of violating the 30-year contract which had been running for 18 years and had 12 more years to go, and that he did not believe it was an urgent matter for Jupiter to know whether Tequesta planned to stay with Jupiter after 12 more years. Councilmember Capretta stated that Jupiter had built several reverse osmosis plants without obtaining Tequesta's permission, and that Jupiter must know that when usage reached a certain level the Palm Beach County Health Department required that a plan be submitted, which Tequesta was probably in violation of at this time. Councilmember Capretta expressed hope that the • issues could be amicably resolved by discussion. • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 5 Mayor Golonka stated that currently the Town must reserve 2 MGD for Tequesta, and that the Village must pay for 1.5 MGD. Data had shown Tequesta did not always use that 1.5, and therefore was paying more for water than they should, Mayor Golonka indicated that without major redevelopment in Tequesta that the planned 4 MGD RO plant was not needed since the 1.5 MGD from Jupiter was currently not needed, so that Tequesta would have too much water, since she found it hard to believe Tequesta would use 4 MGD plus existing wells plus water from Jupiter. She therefore believed Tequesta would want to sever their tie with Jupiter. Mayor Golonka stated that Tequesta was on record as saying that if they went ahead with the RO plant they would be looking to get off the Jupiter system early, and Jupiter was concerned with losing a major customer. Mayor Golonka stated Jupiter was willing to sit down with Tequesta at another meeting, that they saw the issues tied together, and were looking for facts from Tequesta. Councilmember Capretta stated that price was an issue, and if Tequesta won the lawsuit so that they could purchase water for $1.25 per gallon, that would be greatly different from the huge price proposed by Jupiter with the rate increase. Councilmember Capretta stated that Tequesta had never in any way indicated any intent to violate the 30-year contract. Councilmember Hansen stated that when he became a Councilmember more than two years ago one of the first things he had learned was that the Village needed to do something about an RO plant since more water was needed because no more surficial wells could be drilled; and at that time there was no thought of stopping water from Jupiter, but simply to supply the Village with enough water to meet the expanding number of customers. In June, 1995, the Village had learned that Jupiter was suing to get more money under the contract. Village Manager Bradford explained that Jupiter had misconstrued the facts, that the Village had no intention of violating the contract, and that Tequesta's plan to build a reverse osmosis plant had nothing to do with the rate • dispute. Village Manager Bradford commented that the plant was designed to have a 4 MGD capacity, however, it was to be • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 6 built in trains, with the first train to have a 1 MGD capacity to meet Palm Beach County Health Department requirements and to enable the Village to meet the demand with which they are faced. Village .Manager Bradford explained that the Village had no intent to stop buying water from Jupiter, but did not want to purchase more than 1.5 MGD, since purchasing more would not be cost effective. Village Manager Bradford explained that the only reason for expansion was that the Village was forced to do so by Palm Beach County Health Department, and that the Village would not engage in multi-million dollar bond issues on a frivolous whim. Mayor Golonka asked that Tequesta supply information as to their projected service area, to which Village Manager Bradford responded that information had been provided via a public records request from the Town Attorney. Mayor Golonka commented that correspondence had asked for that information in the spirit of resolving the issue, and the information had not been provided. • Councilmember Capretta commented that Jupiter had not expressed a spirit of cooperation by suddenly doubling the water rate after eighteen years with no prior discussions with Tequesta; and if the lawsuit decision was that the current 30-year contract was valid, then planning could take place for the future. Councilmember Capretta stated that no one could plan regarding capacity and facilities, etc., without knowing a price; and it was feared that other 92% increases could take place in the future; so that in order to meet Palm Beach County Health Department requirements a plan to build a reverse osmosis plant had been submitted. Councilmember Capretta explained that one reverse osmosis train plus existing surficial wells plus the 1.5 MGD from Jupiter was exactly the amount needed by Tequesta. Attorney Malefatto stated that the requested information had been provided by Tequesta as a result of the public records request; however, Jupiter was not convinced that it said what Tequesta said it did, and Jupiter was willing to continue to talk about it. Attorney Malefatto suggested that Palm Beach County Health Department requirements and the water management district regulations could be met through arrangements with Jupiter. Councilmember Capretta explained that plans could not be made with a supplier who • had charged from 65G to $1.25 for eighteen years and then suddenly doubled the price. Attorney Malefatto responded • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 7 that Jupiter's position was they had increased rates in a very rational manner supported by the contract, and that was why the rate issue was in litigation. Councilor Henderson commented that there were Jupiter residents on the Tequesta system who were upset because Tequesta had raised rates by almost doubling them. Councilor Henderson stated that Jupiter charges start at $8.93, while Tequesta charges to Jupiter customers start at $15.80. Jupiter started with 10,000 gallons at $21.63; Tequesta started at $30.20 for the Jupiter Cove Condominium residents. Village Manager Bradford responded that the $15.20 rate included the $7.00 per account increase imposed by Jupiter which was being held in escrow pending outcome of the rate lawsuit. Councilmember Capretta pointed out that the Jupiter escrow charges were listed separately on Tequesta's water bills, and that when Tequesta won the lawsuit it would all be given back. • Mayor Golonka, as a Jupiter customer who received water from Tequesta, agreed that the charge was shown separately on her water bill; but stated that the intent in raising rates was to balance the rate between users, and the major disagreement seemed to be that Jupiter felt Tequesta residents should pay their proportionate share of Jupiter's Renewal and Replacement Account. Mayor Golonka commented that a water bill should consist of (1) the amount paid for water, and (2) the customer's share of what it took to maintain and replace water plant facilities, which Jupiter had never charged Tequesta. Jupiter residents paid that second component through their base facility charge. Tequesta customers also paid a base facility charge imposed by Tequesta, however, Tequesta received that entire amount. Mayor Golonka commented that when Jupiter imposed that charge it was an addition to the Tequesta base facility charge, resulting in some of the extremely high figures mentioned by Councilor Henderson. Mayor Golonka commented that Tequesta did not provide a breakdown on her water bill of the amount of their base facility charge to maintain Tequesta water facilities. Councilmember Capretta commented that although the arguments • presented were good, they had nothing to do with the fact that the two municipalities had a valid 30-year contract • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 8 which both parties had lived up to for eighteen years and Jupiter had no reason to violate it, which was why there was a lawsuit. Mayor Golonka agreed that the previous comments had nothing to do with the rates, and stated that she could not speak for past actions by other Councils who had only raised rates three times in 18 years. Town Attorney Malefatto stated that clearly Jupiter did not share the view presented by Mr. Capretta that there had been a contract violation. Mayor Mackail indicated that the discussion needed to stay focused on the issue which was the purpose of this meeting, and that he would welcome another meeting for discussion of other issues. Attorney Hawkins explained that Chapter 180 provided the basis for this meeting, and that he believed factual basis did not exist to support the legal case presented by Attorney Malefatto. Attorney Hawkins explained that he had examined cases which emphatically stated that • the Statute under which Jupiter was threatening to sue could not be used as a prohibition to the construction of a facility in an adjacent area where the type of encroachment did not exist to which Jupiter alluded. Attorney Hawkins stated that the only overlap identified by Jupiter was the overlap associated with the 30-year bulk agreement, and that Tequesta was not a retail customer, and he did not believe case law would support Jupiter's position. Attorney Hawkins indicated that he believed factually that the record would show there had been consent because of lengthy discussions where the issue of Tequesta constructing a reverse osmosis facility had been brought to Jupiter's attention repeatedly, which had been acknowledged. Attorney Hawkins stated that there was a complete difference of opinion on the law for this case between his opinion and that of Attorney Malefatto, with which Attorney Malefatto agreed. Attorney Malefatto stated that if one aspect of the case could be resolved, then all of it could be settled. Mayor Mackail questioned Tequesta Councilmembers as to whether they believed they were in a position to openly discuss everything at this meeting. Vice Mayor Schauer's response indicated that she believed this meeting was called to discuss only one aspect--Jupiter filing a lawsuit against construction of a RO plant. Vice Mayor Schauer expressed her • opinion that the rate dispute was a totally separate issue; and that when agreement could not be reached during closed • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 9 door sessions, it would not be proper to discuss those matters in an open meeting. Vice Mayor Schauer expressed concern that she was not aware of what information was allowed to be made public when mediation was in process, and would not want to subject the Village to consequences of talking about matters which should not be publicly discussed. Councilmember Hansen commented there had been many issues presented tonight, and although he wished discussion could be held and all issues settled at tonight's meeting, he did not believe it was possible to settle everything at this meeting. Councilmember Hansen stated he did not like Jupiter and Tequesta to be on opposing sides and hoped things could be worked out so that they could become good neighbors; however, he was not prepared to settle all the issues at tonight's meeting. Councilmember Capretta stated that he would like to negotiate, and felt negotiation was possible after hearing comments made at tonight's meeting which indicated Jupiter did have a • strategy and ideas about what they wanted to do. During discussion, Councilmember Capretta commented regarding the suggestion that the Village could have bought more water from Jupiter to meet demand that the Village could not purchase water at an unknown price. Councilmember Capretta suggested the possibility of renegotiating the 30-year contract, and requested that Jupiter come back to present their strategy to the Village. Vice Mayor Daniels requested that in the event of future meetings, Tequesta contact Jupiter earlier to agree on a meeting night so that all of their Councilors and their Town Attorney would be able to attend. Councilor Henderson commented that she had heard comments at this meeting which made her more comfortable that a solution might be agreed upon and indicated that Jupiter had always valued Tequesta as a good customer. Councilor Henderson commented favorably regarding possible renegotiation of the existing contract; and the possibility that Jupiter could supply enough water so that the Village would not need to build an expensive RO plant. Councilor Henderson requested that both Jupiter and Tequesta come up with more definitive statements regarding what each one wanted so that each side's intent would be known, and expressed her willingness to discuss matters to • come to a solution to avoid litigation. Councilor McCarthy stated he had not liked being in dispute with Tequesta and . SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 10 hoped matters could be resolved. Mayor Mackail reported that he, Mayor Golonka, and the attorneys had met and had spent a lot of time and effort without reaching a solution; however, with comments made tonight he was willing to sit down to further discussions so long as the ideas made sense. Village Manager Bradford asked Village Manager Randolph whether future meetings should be in the same format as tonight's meeting or whether private mediation meetings should be held. Mayor Mackail suggested that Jupiter's Town Manager Evett and Village Manager Bradford meet to work out an amicable resolution which could be brought back to the Councils. Village Attorney Randolph agreed that the managers and the attorneys should work out a resolution to be presented to the two Councils, and suggested that each municipality might also want to hold closed-door attorney- client sessions. Mayor Golonka commented that she had been • disappointed that the two sides had been so far apart during mediation, and that both must look at their position and realize they must be flexible and willing to compromise if they hoped to come to resolution of the mediation. Mayor Golonka also stated she had expected a solution or an explanation of tonight's item from Tequesta, and that she needed to study whether the comments made at tonight's meeting answered the questions posed by Attorney Malefatto at the beginning of the meeting. Mayor Golonka stated that Jupiter wished to work with Tequesta, and that originally Jupiter only had been considering the rate issue; however, more issues had been brought up, and she hoped that all issues could all be resolved. Vice Mayor Schauer clarified that the reason Tequesta was building a RO plant was to meet demand, which would be accomplished with one train; and commented that Tequesta had no intention of going to full capacity at this time. The plant was designed so that an additional burden would not have to be placed on the taxpayers when future expansion became necessary. Mayor Golonka stated she was not entirely convinced of a particular time line when other trains would be added to the RO plant, which could increase costs to Jupiter residents on the Tequesta system. Mayor Golonka stated she did not believe all of Jupiter's questions had been answered. Vice • Mayor Daniels stated that he did not believe all their questions had been answered, particularly why there was a • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 2?, 1997 PAGE 11 need for dual systems, why two RO plants should compete for one aquifer, and why two providers were needed in the same region. Vice Mayor Daniels expressed his opinion that two providers were not needed, just the same as two fire departments or two ENCONs were not needed in the same area, that the cheapest price to the customers was the goal, and stated that Jupiter needed to know exactly why Tequesta wanted to build a dual system, Village Manager Bradford responded that Tequesta's position had been stated in that the Village had to build the plant to meet demand and Paim Beach County Health Department requirements. Village Manager Bradford commented that Tequesta's system existed prior to Jupiter's system, so that if there were concerns regarding two systems perhaps Tequesta should take over Jupiter's system. Village Manager Bradford explained that research had indicated that costs to the customer would be less than Jupiter's. Councilmember Capretta explained that the RO plant would be very cost effective; that the plan had . been submitted to meet demand and Health Department requirements; that the Village had not considered buying more water from Jupiter because of the uncertainty of the price; and that Jupiter had never indicated that they wanted Tequesta to stay with them forever as a customer at a reasonable price. Councilmember Capretta questioned why Jupiter was worried about Tequesta as a customer since the Village used such a small amount of the total water supplied by Jupiter. Councilmember Capretta commented that Jupiter's consultant had been telling them only one thing--that there was more money in retail sales than wholesale sales--and wondered why Jupiter was bothering with a bulk customer. Vice Mayor Daniels compared water bills between two homes that he owned, one of which was on the Jupiter system and the other on Tequesta's system. Vice Mayor Daniels reported that the Tequesta bill was much higher and asked why, to which Councilmember Capretta responded that a step system had been instituted in order to conserve water, which made the price for high usage more expensive. Vice Mayor Daniels explained that this was a tiny house which should be in the first step. Village Manager Bradford stated that the reason for the difference was that Tequesta had an inverted rate system while Jupiter did not. Vice Mayor Daniels commented that he was concerned that Tequesta going to an RO plant might mean their water bills would be four times higher than SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 12 Jupiter's instead of three times higher. Village Manager Bradford explained that Tequesta's water system was debt free so that the RO plant debt would not be added to the base rate. Vice Mayor Daniels asked for information concerning future development in Tequesta for which water was needed to justify the building of an RO plant. Councilmember Capretta explained that the Village system would be shut down by the Health Department if the Village did not build the plant. Mayor Mackail commented that the Town and Village managers, attorneys, and water managers should work out a proposal so that the Councils would have concrete information to work from at a future meeting, and that Jupiter's participation was welcomed. Mr. Lawrence Hagen, a Jupiter Cove Condominium resident, 1698 Jupiter Cove Drive, stated that his comments were addressed to the Jupiter Council only. Mr. Hagen suggested that the Jupiter Council should check the Jupiter Charter with the State of Florida, which states that if Jupiter provides utilities to any of its residents, they are to provide them to all residents at the same price. Mr. Hagen commented that bridges could carry water lines to serve the areas now being served by Tequesta, and that Jupiter Cove was paying approximately $1,000 more per month than in the prior year. Mr. Hagen stated he believed Jupiter had left itself wide open for a Federal class action lawsuit based on discrimination because they had discriminated against certain Jupiter residents who were entitled to water at the same price as any other Jupiter resident. Mr. Hagen expressed concern that a Tequesta RO plant might increase their costs further. Mr. Hagen suggested that Jupiter look closely at injustices done under the law. XI. ANY OTHER MATTERS There were no other matters to come before the Village Council. • SPECIAL VILLAGE COUNCIL MEETING MINUTES FEBRUARY 27, 1997 PAGE 13 XI. ADJOURNMENT Councilmember Hansen moved that the meeting be adjourned. Vice Mayor Schauer seconded the motion. The vote on the motion was: Ron T. Mackail - for Elizabeth A. Schauer - for Joseph N. Capretta - for Carl C. Hansen - for the motion was therefore passed and adopted and the meeting was adjourned at 8:40 P.M. Respectfully submitted, 7~/ ~GCrL~ Betty Laur Recording Secretary ATTEST: Jo nn Manganie to Village Clerk DATE APPROVED: