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HomeMy WebLinkAboutMinutes_Special Meeting_06/22/1979 u MINUTES OF THE SPECIAL MEETING OF THE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA June 22, 1979 A Special Council Meeting of the Village of Tequesta, was held at 3:00 P.M. on Friday, June 22, 1979 in the Village Hall, 357 Tequesta Drive, Tequesta, Florida. Councilmembers present were Brown, Mapes and Yoder. Councilmembers Cook and Ryan were out of town. Also present were Robert Harp, Village Manager and Cyrese Colbert, Village Clerk. The Village Attorney, John C. Randolph was in court and could not attend. Brown announced that notice of this meeting had been sent to each Councilmember, it had been posted on the Bulletin Board and that the local newspaper had been notified by telephone and by mail of the meeting. He also announced that since two members of the Council were not present any vote the Council would take on a subject had to be unanimous in compliance with the Village Charter. • Brown told the audience that the Village Manager, Village Council and Village Financial Consultants have been working diligently on the problem of financing of the drainage project since the Village found out about SB 3B, which is Florida's Proposition X13. The Village Manager told Council that around 2:39 P.M. this day, Dan Brown, attorney for the Department of Revenue for the State of Florida, called him and informed the Village Manager that the Governor's office said the Village must presently have a contract signed and must have entered into a contract by June 1, 1979. If the Village had not done so by June 1, 1979 its millage could not exceed the limited amount of 1050 of the 197 tax year. Since the Village of Tequesta had entered into a contract with Gee & Jenson to go out to bide. on the drainage improvement in Tequesta before June 1, 1979 and since the Village of Tequesta authorized its Bond Counsel to issue a Bond Resolution before June 1, 1979, State Respresentative 11Doct' Myers has resubmitted the Village's stand to the Governor, but the Village Manager said he had not received an answer as of yet. The Village Manager reviewed with Council his memorandum dated June 21, 1979. The memorandum gave a list of various Water Department Accounts and money amounts that are available in each account. There is a balance available of $219,2$0.40 06-z2-79 -oz in the Retained Earnings Fund, $95,300.3$ in the Certificate Redemption Fund, $14,010.26 in the Water Main Relocation Construction • Fund and $379,$49.5$ in the 1976 Water Construction Fund. In another memorandum, dated June 22, 1979 the Villa e Manager advised an anticipated sum of approximately $15,59 from Federal Revenue Sharing Funds for Entitlement Period 10 (October 1, 1979 - September 30, 19$0) which could be used for the purpose of the drainage improvement project. The Village I~fanager had discussed the use of the Water Department funds with Robert 0. Freeman, of Freeman, Watson, Richardson, et al. Bond Couasel for the Village and they saw no problem with the funds being used as long as sufficient funds were retained in the construction funds to make final payments. The Village Manager felt there was one problem with the transfer of funds, that problem being the loss of interest from the funds to the Water Department. Yoder said that when the Village repaid the Water Department it could also pap the interest lost. In the Capital Improvement Fund there is presently $205,$71.65 and in the Renewal and Replacement Funds there is $25,300.62. Mapes told Council of an idea he had for obtaining the necessary funds to finance the drainage program. Mapes stated that the recommended first priority drainage and street resurfacing improvement • program required approximately $900,000. The Village has available approximately $219,000. in the Water Department Retained Earnings Account~nd a contribution of $3,700. from Palm Beach County which totals approximately $439,000. He told Council that the State allows a Municipality to charge up to a rate of 10~ utility tax on power, telephone, gas and water bills. The annual principal and interest payment on $500,000, net proceed Bond Issue is $60,000. If the Village increased its utility taxe~e- 7,~o it would receive ~' approximately $4$,000~'~>'~ The existing debt for t~~xcise evenue Bond =~l..~so~o~~.be....o~f.#' and the Villagee~~~--~" have available an additional $13,000. for a total of $61,D00 ~crr--t~e-°~woT-am}.~his could be used to~ ,ga3F--o-f~ the debt service of the $500, 000. net proceed I s,,~, - t!'c;'f<Jz-. Brown told the people that this is a very easy avenue to go without going to the voters, but for the record, he wanted this utility tax increase on a temporary basis just to carry us over until this situation of SB-3B ends. He said he was in favor of Mapes suggestion. Joe B. Wise, Vice-President, William R. Hough & Co., said he saw no problem as far-as the revenue available, but if SB-3B is extended past the June, 19$0 date then there could be a problem. Carl Huskey, Vice-President, William R. Hough 8c Co., said he saw no problem with the funding and that the Bond Issue will take about 3~ to 4~ months before the Village will receive any C'iC;t ~'.ii'.i t;.:1.~;~1t7nc-z ~ ~~1~i , ~%l l_' i~Y"Or,. Lr~ri C'~°± i 'L1i1d.... ~E1^ COUnC7..l C7-1C-7~' J.,.'4per year in additional Income, per Council 07-10-79 -~ -~~~'~~ is now fully funded per Council 07-10-79 fry=~~~-,= next year ~ per Council 07-10-79 -. ~ 06-22-79 -03 money. NIr. Huskey said the Village could accept the bids now and borrow the money from the Water Department until such time as the • Bond Tssue has been validated. Yoder asked l~Zr. Huskey if he had any objections about taking the Water Department Construction Funds that are in that account? S~1r. Huskey told Yoder there may be some- thing where the Water Department will need to spend money on at a later date. John ~~cKune, Gee 8c Jenson, told the Village Manager (over the phone) that he would like to see the money remain in the Water Department Fund but if any thing major had to be done to the Water System the Village would have to go to a Bond Issue anyway. Mapes moved, "that the utility tax will be increased sufficiently to cover an amount of money to pay the principal and interest on an annual basis for a $500,000. net proceed Bond issue minus the amount of money that we have been putting into the Sinking Fund which is now fully funded". Yoder seconded and vote on the motion was: Brown -for Mapes -for Yoder -for and therefore the motion was passed and adopted. Mapes moved, "that we borrow Q-&~aixLecLEarn'~.frs~m~hs_ filV~tBT~' ~epartmErit°' ~- i{ ; fl©0 : - ~'t,~- arse-~ 3~r ~a-y~.~g- ~a€Qf- - ~.o~utra.r tcu'.s., • for drainage improvements, in the bids that will be discussed later". Yoder seconded and vote on the motion was: Brown -for NTapes -for Yoder -for and therefore the motion was passed and adopted. Mapes moved, "to authorize William R. Hough & Company to go to work on the Bond Issue giving us the net proceed of $500,000." Yoder seconded and vote on the motion was: Brown -for Mapes -for Yoder -for and therefore the motion was passed and adopted. Mapes moved, "that the borrowed funds from the Water Department Retained Earnings Fund in the amount of $219,000. should be returned to the Water Department either by this Council or some future Council as soon as funds are available". Yoder seconded and vote on the motion was: Brown -for r~7ape s -for Yoder -for and therefore the motion was passed and adopted. ;hange to .....up to $219,000. from the Water De artment retained earninggs account for use in paying Contractor .....per Council 07-10-79 ~~ 06-22-79 -04 John Wise, Gee & Jenson, informed Council that on P~1ay 25, 1979 bids were received at the Village Hall for the Dover Road • Drainage Improvements. Only one bid was received. This bid was submitted by Dickerson, Inc., in the amount of $102,611.0 with a completion time of 90 days. Gee & Jenson recommended that the Village award the Dover Road Area Drainage Improvement contract to Dickerson, Inc. and that a motion be made with the intent to award. Yoder moved, "that we accept the bid of Dickerson, Inc. to proceed with the improvements for Dover Road". Mapes seconded and vote on the motion was: Brown -for Mapes -for Yoder -for and therefore the motion was passed and adopted. Mr. Wise told the people in the audience that the contractor for Dover Road will probably start as soon as all the necessary paper work is completed and the contract is signed. The next item on the agenda was the negotiated price for Country Club Drive drainage and resurfacing project. Mr. John Wise told Council that on May 16, 1979 bids were received which involved the paving between the ENCON work on Country Club Drive. Gee & Jenson advised Council to reject the bids and they did. After the bids were received on the Dover Road area and the bid from Dickerson, Inc. was in line with the Engineers bid estimate, Gee & Jenson then • negotiated with Dickerson for the Country Club Drive project. On June 14, 1979 Dickerson, Inc. sent a letter to Gee & Jenson with a revised proposal attached, for the Country Club Drive Project. but Gee 8c Jenson had been advised by Village Counsel not to make a recommendation to the Council. Council tabled this item until the Village Attorney had a chance to arrive at the meeting. h'Ir. John Wise, Gee & Jenson, read his letter to the Vi11a ge, dated Jung 22, 1979. He advised Council that on June 19, 1979 bids were received in the Village Hall for the Tequesta Country Club Community drainage improvements. Only two bids were received. They were Dickerson, Inc. in the amount of $256,105. for Phase I and $19,$60. for Phase II. The other bid received was from W. Jackson ~ Sons Const. Co. in the amount of $265,970. for $15$,570. for Phase II. PUTT. Wise said that they have met with both Dickerson, Inc. and W. Jackson 8c Sons Const. Co. and both of the companies do fine work with high ratings. They asked both companies if they were fimilar with golf course project and W. Jackson 8c Sons have a man on staff that works with golf course prsi jects. Brown asked Mr. Wise what happened to American Underground Construction Co. They had talked with Bill Wagner, Golf Course Maintenance Supervisor and N1r. Wagner was very impressed with them. 1~Ir. Clark Krueger, Gee 8c Jenson told Brown that he had talked with the American Underground people and they had told him that their earth work people backed out of doing the job at the last minute. Therefore the company decided against bidding the job. ' ' ~ ' 06-22-79 -05 Yoder felt he would take Gee & Jensonts recommendation for the company that would do the most expeditious job no matter what the • cost difference is. Mapes moved, "that we accept the bid for the Country Club area drainage program of W. Jackson & Sons Construction Co. and that Gee 8c Jenson be instructed to move forward as fast as humanly possible". Yoder seconded and vote on the motion was: Brown -for NSapes -for Yoder -for and therefore the motion was passed and adopted. Yoder told Council he wanted to make sure the agreement between the Village of Tequesta and the Country Club is fair to the Village, because he is on Council to protect the Village. Council discussed the fact that the Agreement between the Village and the Country Club still has not been finalized. The Council recessed the meeting until the Village Manager talked to the Village Attorney over the phone to get the Attorneyts opinion on the negotiated price for Country Club Drive. After the meeting was again called to order the Village Manager announced to Council, it was the Attorneyts opinion that the Village should resubmit the bids. After hearing the announcement Yoder moved, "that we accept the negotiated bid of Dickerson Inc. to complete the drainage and road paving far the Country Club Drive area for the amount of $99,961.60". Mapes seconded and vote on the motion was: Brown -for Mapes -for Yoder -far and therefore the motion was passed and adopted. Yoder explained that this was solely his business judgment. Mapes moved, "that we pledge enough funds from the dater Department, on a temporary basis, to cover the cost of the contract that was approved today until such time as other funding is available'?. °1'oder seconded and vote on the motion was: Brown -for Mapes -for Yoder -for and therefore the motion was passed and adopted. The Village Manager told Council the Village Attorney had advised he would have another draft of the Agreement between the Village and the Country Club ready for the June 26, 1979 Council Pwleeting, 06-22-79 -ob Mapes moved, 'Tthat we adjourn", Yoder seconded the motion and the motion was passed and adopted. The meeting was adjourned at 5:23 P.M.