HomeMy WebLinkAboutMinutes_Special Meeting_06/23/1994VILLAGE OF TEQUESTA
Post Office Box 3273 357 Tequesta Drive
Tequesta, Florida 33469-0273 (407) 575-6200
Fax: (407) 575-6203
VILLAGE OF TEQUESTA
VILLAGE COUNCIL
SPECIAL MEETING MINUTES
JUNE 23, 1994
I. CALL TO ORDER AND ROLL CALL
The Tequesta Village Council held a Special Meeting at the
Village Hall, 357 Tequesta Drive, Tequesta, Florida, on
Thursday, June 23, 1994. The meeting was called to order at
7:04 P.M. by Mayor Ron T. Mackail. A roll call was taken by
Betty Laur, the Recording Secretary. Council members
present were: Mayor Ron T. Mackail, Vice Mayor William E.
Burckart, Earl L. Collings, and Joseph N. Capretta. Also in
attendance were: Village Manager Thomas G. Bradford,
Attorney Scott Hawkins sitting in for Village Attorney John
C. Randolph, Village Clerk Joann Manganiello, and Department
Heads. Absent was Council member Elizabeth A. Schauer.
II. APPROVAL OF AGENDA
o Mayor Mackail asked to add an item under Item V Wellfield
Protection Ordinance.
Vice Mayor Burckart moved to approve the Agenda as amended.
Councilmember Collings seconded the motion. The vote on the
motion was:
Ron T. Mackail - for
William E. Burckart - for
Earl L. Collings - for
Joseph N. Capretta - for
The motion was therefore passed and adopted and the Agenda
was approved as amended.
III. RESOLUTION NO. 16-93/94 - AUTHORIZING THE ISSUANCE OF THE
VILLAGE'S IMPROVEMENT REVENUE REFUNDING BOND, SERIES 1994,
IN THE AGGREGATE PRINCIPAL AMOUNT OF $1,365,000; PRESCRIBING
THE FORM, TERMS AND DETAILS OF SUCH BOND; MAKING CERTAIN
OTHER COVENANTS AND AGREffi~ENTS IN CONNECTION WITH THE
ISSUANCE OF SUCH BOND; SPECIFYING THE USE OF THE PROCEEDS OF
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June 23, 1994
Page 2
SUCH BOND AND THE SECURITY FOR THE PAYMENT THEREOF; AWARDING
SUCH BOND TO JUPITER/TEQUESTA NATIONAL BANK BY NEGOTIATED
SALE; PLEDGING ALL FRANCHISE FEES AND OCCUPATIONAL LICENSE
FEES OF THE VILLAGE AS SECURITY FOR SUCH BOND; DESIGNATING
THE BOND AS A °QUALIFIED TAX-EXEMP'P OBLIGATION^ WITHIN THE
MEANING OF SECTION 265 (B) (3 ) OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED; HARING CERTAIN OTHER COVENANTS AND
CONTAINING CERTAIN OTHER PROVISIONS; PROVIDING AN EFFECTIVE
DATE; AND FOR OTHER PURPOSES. (Staff Recommends Approval)
Finance Director Bill Kascavelis explained that 1979
outstanding bonds of $580,000 would be called (plus a 3$
premium for a total of $613,640), and replaced with a new
bond at a Iower interest rate issued by the successful
bidder, Jupiter-Tequesta National Bank. The new $1,365,000
bond issue would provide funds of $311,000 for Tequesta Park
improvements, $408,000 for Constitution Park improvements,
$172,000 to pave Country Club Drive, and provide a few
thousand dollars extra. Finance Director Kascavelis stated
the cost of issuance was less since the normal requirement
of one year debt service reserve and underwriter fees had
been eliminated.
Mark Raymond, of Moyle, Flanigan, Katz, FitzGerald &
Sheehan, P.A., retained by the Village to assist as Bond
Counsel for this financing, called attention to Section 4,
of the resolution where figures had been changed to reflect
the true amount of proceeds. In answer to a question by
Councilmember Collings, Mr. Raymond explained that General
Obligation bonds issued in the State of Florida with a
maturity of more than one year normally would be repaid by
ad valorem taxes and would require a referendum; however,
this is a Special Obligation using franchise fees and
occupational license fees for repayment, therefore a
referendum is not required. In response to other questions
by Councilmember Collings, Mr. Raymond explained that if by
improper uses of bond proceeds the interest on the bonds
became taxable, the bank had the option to increase the
interest rate to prime; and that 35~ is the current maximum
marginal rate of income taxation on corporations. If this
rate would be made higher by law, the bank would accept a
lower tax-exempt rate and receive the same after-tax
proceeds. In response to Councilmember Capretta's question,
Mr. Raymond stated the entire proceeds would be disbursed at
closing.
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Special Meeting Minutes
June 23, 1994
Page 3
Hal Hutchison of Camiela Circle, stated he felt the total
cost of the bond, approximately 2.2 million over 15 years,
should be advertised to the village taxpayers. He stated he
felt the Council had found a way around the normal
referendum requirement similar to the way the School Board
was financing their buildings. He stated every resident
should have the option to vote whether to tax themselves.
Finance Director Kascavelis answered that Mr. Hutchison was
including the interest over the 15-year life of the bond,
and that no one would loan money for nothing. He stated the
interest rate on the outstanding 1979 issue was 8.4% and the
interest rate on the new issue would be 6.15%, thereby
saving taxpayer money. Mayor Mackail stated that taxpayers
would also have the benefit of improved parks from this bond
issue.
Councilmember Collings moved to approve Resolution No. 16-
93/94. Vice Mayor Burckart seconded the motion. Attorney
`" Hawkins read Resolution No. 15-93/94 by title only. The
vote on the motion was:
Ron T. Mackail - for
William E. Burckart - for
Earl L. Collings - for
Joseph N. Capretta - for
The motion was therefore passed and adopted.
IV. ORDINANCE - FIRST READING - AMENDING THE VILLAGE CODE OF
ORDINANCES AT CHAPTER 11, LICENSES, AMENDING SECTION 11-19,
SUPPORTING AFFIDAVITS REQUIRED; AMENDING SECTION 11-20,
TRANSFERABILITY; FEE; AMENDING SECTION 11-21, LICENSE NOT
IMMUNITY FROM PROSECUTIONS OF VIOLATION; DELETING SECTION
11-22 RELATING TO MASTER-SERVANT RELATIONSHIPS; AMENDING
SECTION 11-25, UNLAWFUL TO ENGAGE IN TRADE OR BUSINESS
WITHOUT LICENSE OR WITH LICENSE ON FALSE STATEMENTS,
DELINQUENCY FEES; AMENDING SECTION 11-26.1, REGISTRATION
REQUIRED; AMENDING SECTION 11-27, ENUMERATION OF LICENSE
TAXES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF
ORDINANCES IN CONFLICT; PROVIDING FOR CODIFICATION;
PROVIDING AN EFFECTIVE DATE. (Staff Recommends Approval)
Village Manager Bradford stated in the 1993 legislative
session the State legislature passed a bill which authorized
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June 23, 1994
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an amendment to the occupational license structure within
counties and municipalities of the State of Florida and
allowed an increase in occupational license fees for the
first time in several years. In order to increase fees
municipalities were required to create an Equity Study
Commission consisting of businesspersons within the
community to consider the amendment of occupational
licenses. The Village Council adopted a resolution creating
an Equity Study Commission and subsequently appointed Ed
Nelson, John Giba and Mac Goodner to be on the Commission
which had reviewed the current occupational license rates of
Tequesta and compared them to the other communities in the
study area. This ordinance would increase fees in
accordance with the recommendations made by the Equity Study
Commission.
Scott D. Ladd, Building Official, reported the Equity Study
Commission had amended numerous categories in the service
~"° classifications by adding definitions to make the license
categories more easily understood and to give each category
a definition at its heading before listing the fee
structure. Mr. Ladd reported 41 categories increased an
average amount of 790; 8 categories were higher than 79~; 33
categories were lower than 79$; and the total was in
compliance with the State mandate of a 10~ cap. The State
mandate had included changing the mailing date of renewal
notices from September 1 to August 1, giving a 2-month
window before the October 1 beginning fiscal license year.
A registration fee was added for persons coming into
Tequesta to work who did not have a place of business in the
Village. In response to Councilmember Capretta's question,
Mr. Ladd responded that annual occupational fee revenue was
approximately $70-72,000; Mr. Bradford responded annual
franchise fee revenue was approximately $230,000; and the
increased occupational license fees would bring in
approximately $10,000 more annually. Vice Mayor Burckart
opposed increasing the occupational license fees, stating he
felt this would send a message to businesses reinforcing
what they already feel about Tequesta being hard to deal
with, and would make it more difficult to attract businesses
to come into the Village, and that the increase in fees was
so small it would not be worth alienating the businesses.
After discussion comparing the current occupational license
:,. fees to surrounding municipalities and a report by Mr.
Nelson, Chairman of the Equity Study Commission, who stated
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Special Meeting Minutes
June 23, 1994
Page 5
the Commission had operated on the theory that an increase
would be helpful, but looking at the overall picture the
increase would be very small, and much of the Commission's
work had corrected inequities. Mr. Ladd explained the major
inequities that were corrected were the Property Maintenance
category in which the fee had been $40 and was left the same
for businesses with 3 or less employees and increased to $60
for 4 or more employees; and the Retail Merchants category
requirements were changed and a fourth category added to
correct inequities whereby a small retail business had been
paying almost as much as a large corporation such as K-Mart.
Village Manager Bradford commented that taxes would have to
be increased somewhere else if the additional $10,000 from
increasing occupational license fees were not available.
Councilmember Collings suggested that not increasing fees
might provide an incentive to enough businesses to come into
the Village that their license fees would make up the loss.
Vice Mayor Burckart stated the bad publicity by the
~" newspapers would cost more than $10,000. Mr. Ladd reported
by State law an increase could be done next year. Village
Manager Bradford suggested in the future that home
occupations would need to be considered.
Councilmember Collings moved to approve the housekeeping
changes to the Village Code of Ordinances at Chapter 11 as
recommended by the Equity Study Commission and to keep all
rates the same except RM003 and RM004, changing those fees
as recommended by the Equity Study Commission. Vice Mayor
Burckart seconded the motion. The vote on the motion was:
Ron T. Mackail - for
William E. Burckart - for
Earl L. Collings - for
Joseph N. Capretta - for
The motion was therefore passed and adopted and consensus of
the Council was that the Ordinance be changed to reflect the
motion and presented for second reading on July 14, 1994.
V. RESOLUTION NO. 17-93/94 - OPPOSING AND OBJECTING TO THE
BOARD OF COUNTY COMMISSIONERS' PROPOSED AMENDMENT TO THE
UNIFIED LAND DEVELOPMENT CODE, WHICH PROVIDES FOR A PROPOSED
PUBLIC UTILITIES FEE AS A SOURCE OF FUNDING FOR THE COUNTY' S
DEPARTMENT OF ENVIRONMENTAL RESOURCES MANAGEMENT WELLFIELD
PROTECTION WORR; PROVIDING FOR AN EFFECTIVE DATE; AND FOR
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Special Meeting Minutes
June 23, 1994
Page 6
OTHER PURPOSES. (Staff Recommends Approval)
Village Manager Bradford explained that the Wellfield
Protection Ordinance of Palm Beach County was currently
funded through ad valorem property tax revenues received by
the County. To take pressure off property taxes, the County
Commission had created a Wellfield Protection fee and a
public utilities fee where the cost of administering their
Wellfield Protection Ordinance would be passed on to the
utilities, who would then distribute the cost to their
customers. The objection to this system was that the County
would be able to impose greater and greater fees over the
years which would impact the utilities' customers. By
adopting the Resolution the Village would join surrounding
municipalities who have taken similar action to oppose the
County's plan. Mayor Mackail stated the Municipal League
also opposed the County's position.
'" Councilmember Collings moved to approve Resolution No. 17-
93/94 opposing the County. Vice Mayor Capretta seconded the
motion. Attorney Hawkins read Resolution 17-93/94 by title
only. The vote on the motion was:
Ron T. Mackail - for
William E. Burckart - for
Earl L. Collings - for
Joseph N. Capretta - for
The motion was therefore passed and adopted.
VI. ANY OTHER MATTERS
VII. COMMUNICATIONS FROM CITIZENS
Joan Marshall stated she had spoken with a Jupiter Council
Member who had indicated since Section 28 had been approved
that a new east-west road would be proposed with an outlet
onto Island Way. As a resident of Country Club Drive she
felt that would create too much traffic on Country Club
Drive. Village Manager Bradford stated a traffic study had
been performed to review the Section 28 Northfork proposal
impact which indicated 1,000 to 1,200 additional trips per
day could be expected on Country Club Drive. Other points
discussed were that nothing would be known from the State
until possibly January 1st on reducing the level of service
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Special Meeting Minutes
June 23, 1994
Page 7
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for Country Club Drive, and the speed limit might be a
deterrent for people to travel that route.
Mrs. Leigner, TCCCA, voiced concern over hurricane
evacuation routes. Mayor Mackail stated the evacuation
routes that were in the present plan would be followed in
the event of a hurricane.
VI. ADJOURNMENT
Councilmember Collings moved that the meeting be adjourned.
Vice Mayor Burcl~art seconded the motion. The vote on the
motion was:
Ron T. Mackail - for
William E. Burckart - for
Earl L. Callings - for
`""""' Joseph N. Capretta - for
The motion was therefore passed and adopted and the meeting
was adjourned at 8:10 P.M.
Respectfully submitted,
~"
Betty Laur
Recording Secretary
ATTEST:
J ann Mangani to
Village Clerk
DATE APPROVED: