HomeMy WebLinkAboutMinutes_Regular_06/27/1978MINUTES OF THE MEETING OF THE COUNCIL
• OF THE VILLAGE OF TEQUESTA, FLORIDA
JUNE 27, 1978
A meeting of the Village Council was held on Tuesday,
June 27, 1978 at 7:30 P.M., in the Village Hall, 357 Tequesta Drive,
Tequesta, Florida. Council.members present were Brown, Mapes, Yoder
and Ryan. Cook had advised she would not be in attendance. Also
present were Robert Harp, Village Manager and John C. Randolph,
Village Attorney. The Village Clerk was absent due to illness. The
meeting was opened with Prayer and the Pledge of Allegiance to the Flag
by Mayor Brown.
Mayor Brown advised of the Council Workshop Meeting on the
Village Comprehensive Plan to be held at 4:00 P.M., Thursday, .July 6,
1978 in the Village Hall.
The agenda was amended by deletion of item 3a until the
July 11, 1978 meeting so that the Police Chief could be in attendance
and Ryan asked that 3a be the question on the Police Mutual Aid
Agreement.
The minutes of the June 13, 1978 Council Meeting were
• received as submitted and the Council indicated their desire to have
all minutes of meetings to be written in a similar comprehensive
manner. The Village Manager's Report was received as submitted and
questions about several of the items were answered. The Financial
Report of the General Fund for May 1978 was received as submitted as
was the Water Department Financial Statement for May 1978.
Mary Finnegan, Field Coordinator, showed a short informational
film on cystic fibrosis and presented a brochure for distribution to
the public.
The next item on the agenda for consideration was discussion
of giving consent to assignment of Bulk Sale Water Agreement. Present,
representing the Town of Jupiter, were J. Skrandel, Town Attorney,
C. Burgess, Town Manager, H. Gildan, H. Osterman and T. Elia. The
Village Attorney reviewed the .June 19, 1978 Council Workshop Meeting
with various representatives of the Town of Jupiter. He reviewed the
importance of Exhibit "B" to the amending agreement to provide the base
period (August 1977 through January 1978) cost data upon which any
future requests by the Town of Jupiter for increases in the bulk rate
charges from $0.60 per 1,000 gallons would be based. He also advised
that the Town of Jupiter was agreeable to amending the original agreement
to allow the Village to request additional capacity in increments of a
minimum of 50,000 gallons per day instead of. 1,000,000 gallons per day.
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• A copy of the language for this proposed change had been submitted to
the Village Council June 22, 1978 as had Exhibit "B". Yoder recommended
that .Judson Freeman and W. B. Sydow take a hard look at the Exhibit "B",
considering shrinkage, etc. and to determine what accounts, allocations,
etc. are a part of the account numbers and amounts on Exhibit "B". He
said these must be looked into in depth before agreeing to assignment
of the agreement to Jupiter and investigated with a fine tooth comb.
Mayor Brown asked the Village Attorney to review the entire
amending agreement. The Village Attorney said item No. 1 indicated that
the Town of Jupiter will completely, fully and adequately perform the
agreement, as clarified, in the place of Tri-Southern Utilities Company,
Inc. Item No. 2 indicates the Village gives its consent to the assign-
ment of the agreement by Tri-Southern Utilities Company, Inc. to the
Town of Jupiter.. Amended paragraph 5 provides for the Jupiter Town
Commission to he the rate review board and the Town of Jupiter has
advised they must be the rate setting authority under municipal owner-
ship. The Village Attorney read the amended paragraph 5 - Rates - and
noted it clarifies the existing paragraph 5 language and sets out that
any requests for rate increases, Town of Jupiter must present a
comparison between the cost of bulk sale service furnished during the
first six (6) month period of the agreement as shown on "Exhibit 2"
with a like six (6) month period of service immediately preceding
Town of Jupiter's application for a rate increase, and such comparison
shall identify and compare the cost of power, chemicals and labor.
The language in the paragraph further states that the parties recognize
• that debt service costs, once established, are generally non-variable
and that the capital cost of providing service to the limits of
2,000,000 gallons per day have been established and are non-variable.
The term of the agreement is clarified to commence April 1, 1978, the
date the Town of Jupiter assumed the Tri-Southern water system, for. a
period of twenty-nine (29) years and three (3) months.
Paragraph 9 - Increased Services - entitles the Village to
request additional capacity in increments of at 1_east 50,000 gallons
a day instead of 1,000,000 gallons per day. The Town of Jupiter shall
provide the capacity at a point in time when the aggregate requests for
additional capacity within the utility's entire service area reaches a
level which provides to the utility, in its sole judgment, the economic
feasibility required i.n order to justify its proposed expansion of
water supply and treatment facilities. Paragraphs B, C and D are
quoted in their entirety from the original agreement.
Amended paragraph 10 provides that the agreement shall not
hereafter be assigned by either party without the prior written consent
of the other party, which consent shall not be unreasonably withheld.
Paragraph 13 amended to provide notice to the Town of Jupiter instead of
Tri-Southern Utilities Company, Inc. The Village Attorney was asked if
the Village would continue to obtain service at 50,000 gallons per day
additional and he said the paragraph could be amended by language to
provide f.or continuing service. The matter of the cost to the Village
• of additional water. in 50,000 GPD increments was discussed and Osterman
said it would be when the increment was met anal limits to costs as set
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• forth in the original agreement, current requirements, including but not
limited to the requirements to pay connection or equivalent capacity
charges, but no such charges are applicable for the 2,000,000 GPD
represented by the agreement. He further stated the reduction in the
increments is better for the Village.
Yoder asked what the document is. The Village Attorney
explained it includes all matters of concern to the Village discussed
at various previous meetings and serves as a basis for discussion.
Gildan said the instrument followed discussions at the last Workshop
Meeting on the matter. He said the revisions are to provide a document
which can best serve both municipalities. He said the immediate
problem is the matter of the three (3) factors affecting rates to
Tequesta, not including interest (debt service). The Town of Jupiter
has applied to Municipal Bond Insurance Association for insurance for
their issue in order to obtain the lowest possible interest rate. He
presented a copy of the June 26, 1978 letter from MBIA indicating final
approval for the insurance could be given if the consent of assignment
of the bulk sale water service agreement would be given. He also
presented a copy of the June 27, 1978 letter from Southeastern Municipal
Bonds, Inc. to Osterman advising they are in a position to purchase the
Jupiter Water Revenue Bonds, Series 1976A subject to receiving MBIA
insurance and that the municipal bond market is deteriorating and any
delay could cause financial damage to both parties by virtue of increased
interest costs. Gildan said Jupiter expects to get 6.5% interest rate
with MBIA insurance but would probably be at least a point higher if
• not insured. Gildan said the deadline for consent of assignment of
the agreement is Thursday, June 29, 1978 and that Jupiter is trying to
keep every users rates down. Gildan further stated he feels the amend-
ing document best protects all parties. He further stated the original
agreement protected the Village of Tequesta's interests. He said that
interest costs, referred to in Exhibit 2 is not a factor if MBIA
insurance is obtained. The figures in the exhibit were compiled from
information submitted to the Public Service Commission and are for
determining a relative basis on which future rate considerations are
to be judged. He questioned whether anyone gains or loses if consent
for assignment is not given and feels that if consent is not given,
there will be a negative difference for all and guarantees a rate
increase to everyone if the assignment is not made. The Village can
obtain plant capacity automatically. He said he feels the water
system and the consumers need to have assignment of the agreement for
their best interests.
Yoder said he thought the $0.60 per 1,000 gallon rate included
costs to the Village for up to 2,000,000 gallons per day and Gildan
said it does. Yoder asked why rates to the Village would go up when
someone purchased Tri-Southern and Gildan said the amending agreement
removes the question of interest costs and it is not a factor to
effect rates. Yoder stated he wants the Village of Tequesta's various
consultants and staff to look at the amending document and Exhibit 2.
• Osterman said it is important to get interest as a norm.
He read the statement on Exhibit "B" pertaining to interest. He
advised the Public Service Commission controls cost of interest for a
private utility since their borrowing i.s on a scale of sliding interest
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• rates. Municipal borrowing is done at one rate for each issue. The
Exhibit 2 is based upon a 6.5% interest rate for Town of Jupiter Water
Revenue Certificates. He stated that Exhibit "B" should include a
statement for clarity that the base costs referred to are only appli-
cable to source of supply expenses, pumping expenses and treatment
expenses. He stated that shrinkage of line loss would occur before
it gets to the customers meter. Osterman read the June 26, 1978 and
June 27, 1978 letters from MBT_A and Southeastern Municipal Bonds, Inc.
and reiterated the June 29, 1978 deadline for consent to assignment.
Brown asked the status of the classification of the accounts
and accounting system by the Town of Jupiter. Elia advised that the old
account numbers used by Tri-Southern had been changed to Jupiter's account
numbers. Tri-Southern, as a private utility, had to use the Public
Service Commission system of accounts but the municipal accounting
classification must be conformed to under municipal ownership. Brown
stated that the Tri-Southern accounting was under the purview of the
Public Service Commission but what agency would be responsible under
municipal ownership. Elia advised that the municipal independent
auditor would closely review this during the required annual audit.
Osterman advised that the accounts and dollars in Exhibit "B" were
not so important as the fact that they establish a historical foundation
for future comparison. Yoder said he wants Gee & Jenson representatives
to look at the information because it needs the review of specialty
personnel. Brown asked the Vi]_lage Attorney what he believes the
• situation would be if Judson Freeman was in attendance tonight, and
the Village Attorney stated he would confirm that he would have no
major objections if Exhibit "B" could be confirmed. Brown asked if
the Village was going to have some people with competence to review.
The Village Attorney suggested perhaps the Village auditor, Sydow of
Gee & Jenson and others could be used to review the exhibit.
Osterman said the ideal basis for comparison would be to use
only one item, such as power, but this is not possible. Yoder again
stated the need for identifying the accounts and amounts and Elia said
this could he readily done. Yoder said he wanted to be able to relate
the $0.60 rate costs back to Jupiter.
Gildan called Council's attention to the fact that any increase
in the rate to Tequesta by the Town of Jupiter would affect the Jupiter
residents north of the Loxahatchee River who are in the Village water
system. He again stated he believed the original agreement was good
with proper. built-in safeguards and still trying to arrive at reasonable
consent from the Village to obtain lowest possible interest rate for
Jupiter Revenue Certificates with MBIA insurance. He again stated time
is a very important factor now. Yoder said he has a problem with
amended paragraph 5 which sets up Town of .Tupiter Commission as a rate
review board for establishing rates to the Village. Brown said a
Public Service Commission decision could be appealed through the courts
and so could any increase in rates by Jupiter. Gildan said from
experience, the Public Service Commission is not always necessarily on
• the side of the consumer and believed the Village would be far better
off with the amended agreement. There are only three (3) factors to be
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concerned with under the agreement. He said he did not believe the
Public Service Commission would be a savior for the Village. Yoder
commented that Jupiter's original financial consultant for the purchase
of Tri-Southern had stated rates for .Jupiter users could be lowered
and Tequesta's rate increased. He was further concerned about Jupiter
Mayor's remarks in regard to water system funds being used to help
defray the cost of a new town hall and that rates to Tequesta might
be increased to accomplish this. Yoder said the consumer problem
could be resolved by either side but wondered about Judson Freeman's
ideas. The Village Attorney said the Village has several options in
regard to the matter (1) give consent to the assignment subject to the
terms of the original agreement; (2) clarify or amend the agreement
pursuant to the terms of the amending document being discussed; (3)
stand on the first option given by Judson Freeman for Jupiter to
establish a rate review board. The Village Attorney said this was
in conflict with Town of Jupiter; delay or not consenting to assign-
ment could jeopardize rates for the entire Jupiter system; and the
fact that Jupiter. had written to the Village in regard to liability to
the Village if consent was determined to be unreasonably withheld.
These factors would have to be considered if the Village Council desires
to hold with Judson Freeman's original rate review board. The Village
Attorney stated he believes the amending document has certain advantages
to the Village. Brown asked the Village Attorney, "what do you
recommend?" The Village Attorney said he recommended approving the
amending agreement discussed tonight and the verification by Village's
representatives and personnel of Exhibit 2. Ryan asked why Jupiter
• would not accept Judson Freeman's rate review board. Osterman said
most bond resolutions require the issuing government to establish rates.
He said the wholesale rate was set two years ago and is more valid
today than when the rate was set. Yoder asked what would have happened
if the Village had not underwritten part of the costs and what happens
financially when the Village gets 2,000,000 GPD of water. Osterman
said there would be no variation since the Jupiter system is on a
sound, effective operating structure and rate making basis. He again
discussed Exhibit "B", suggesting it be noted to indicate expense items
are for source of supply, pumping and treatment expense and that the
statement in regard to interest costs be retained on the exhibit.
Brown said Jupiter does not want a rate review board established
since there is a possibility that they might have, in the future, other
bulk sale water purchases. Osterman said this might require multiple
review boards. The Village Attorney said the agreement should include
language that the increased allotments granted to the Village cannot be
removed. He further stated if the Village Council agrees to the assign-
ment pursuant to the amended agreement, the rate review board problem
would be settled now and if the Council agrees to assignment of the
original agreement, the matter of the rate review board would be
settled at a later date when Jupiter requested an increase in the rate
to the Village.
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• Mapes moved, seconded by Ryan that the Village of Tequesta
give its consent to assignment of the agreement between the Village of
Tequesta and Tri-Southern Utilities Company, Inc., from Tri-Southern
Utilities Company, Inc. to the Town of Jupiter, subject to the terms
of the amending agreement discussed tonight, subject to the verification
of Exhibit 2 including a chart of all accounts which make up the costs
included in the exhibit. The verification is to be conducted by the
Village's CPA's, a representative of Gee & Jenson and the Village
Manager. The vote on the motion was:
Mapes For
Ryan For.
Brown For
Yoder Against
and the consent for the assignment was therefore approved 3-l. Town of
Jupiter Attorney Skrandel stressed the importance of having the consent
for assignment in time for a June 29, 1978 meeting of the Jupiter Town
Commission. The Village Manager is to arrange to have the verification
performed, preferably on Wednesday, June 28, 1978 if the Village's
representatives can be available to perform the verification. Mayor
Brown recessed the meeting at 9:20 P.M.
Mayor Brown reconvened the meeting at 9:27 P.M. Eugene A.
Caputo, Assistant Director and Jack Horniman, Director of Comprehensive
Planning for the Area Planning Board of Palm Beach County appeared
• before the meeting to discuss possible areas of activity which a Village
Comprehensive Planning Consultant or Advisor should or could become
involved with. Caputo said he had some question concerning a May
letter and June letter he had received from the Village in regard to
planning and wondered if he was here to discuss the scope of services
for an agreement the Village had requested in the May letter for
bringing the Village`s plan into compliance with the Local Government
Comprehensive Planning Act of 1975. The Village Manager advised the
Village had not as yet been contacted concerning the agreement and the
appearance tonight was for the purpose of discussing possible areas
of activity for a Village Comprehensive Planning Consultant or Advisor.
Brown referred to Giba's suggestion that the Village Council appoint one
person to be a liason between the Village and the Area Planning Board
of Palm Beach County to provide for the completion of the Village's
Comprehensive Plan. The Village Manager said the proposed contract for
services w=ith APB was to bring the plan up to date and into conformance.
Yoder said he thought the services were to take the existing elements
for the three plans and put them into one document. Brown said he felt
it to be necessary to hire a consultant to work with the Village and
Area Planning Board to complete the Comprehensive Plan. Horniman
advised the Council and Consultants must make sure that all elements
of the Plan conform to the requirements of the Act. The Council must
provide for a review and up-date of the elements and this can be
included in the scope of services to be provided by the Area Planning
Board. Giba, Chairman of North Area TAC and the Village's representative,
• advised and explained to the Village Council what is required to he
done to meet the July 1, 1979 deadline for plan approval by all agencies.
6-27-78 - 7
Yoder questioned the need For a Village representative and Area Planning
Board both. Caputo reminded Council of the Area Planning Boards policy
that they could not make zoning, etc. recommendations to the Council.
Brown said the Area Planning Board does not have staff to assist the
various communities generally with their planning but needed the input
of the local community. Caputo said inputs must come from the Village's
representative and suggested the proposed action was due to volunteer
committees not working now. Caputo reminded the Council, verified by
the Village Attorney, that it was the Area Planning Board's policy to
bow out once a community hires a consultant. The Village Attorney said
he did not think this was a problem since the Village was only asking
for assistance in bringing the plan to completion. Horniman said a lot
of municipalities are now asking the Area Planning Board for assistance
with the deadline for plan submission rapidly approaching, overburdening
their staff now, which might cause a reduction in their services to the
various municipalities.
Giba said the Village needs someone to do the things listed
as possible areas of activity and to provide Council input to the Area
Planning Board for the technical production of the Plan and believes the
dealine could be met. About five months time is required for final
adoption of the Village Plan. Yoder asked how the Area Planning Board
would allocate their costs for service and was advised it would be based
upon a written scope of services to be provided. The Village Attorney
said an agreement with the Area Planning Board setting forth the scope
of services was necessary first and hiring of a Planning Consultant or
• Advisor should come later. The Area Planning Board representatives
were advised of the 4:00 P.M., July 6, 1978 Council Workshop Meeting
on the Village's Comprehensive Plan and were requested to bring a draft
of proposed scope of services to the meeting and to provide general
guidelines for a Planning Consultant or Advisor and what type of person
to look for.
Connie Cannon and Judith Campbell advised the Council of their
dissatisfaction with the Beacon Street Improvement project, particularly
in relation to the use of Bitter Blue sod instead of Bahia sod on their
properties. Cannon said her property was a mess, the driveway was too
deep, the bank was gouged too sharply and edges of driveway meeting the
road were not right. The Village Attorney said that engineering changes
that had to be done to the properties would not allow the property to
be returned to its original. condition. The Village Manager advised he
had reviewed the various letters to the property owners and could only
find the provisions as set forth in the easement documents. D. M. Shepherd
said the specifications called for Bitter Blue sod because it was a matt
grass good for use in swales. He said he would look at the installed
Bitter Blue sod areas and at Cannon driveway. Yoder asked if ENCON would use
different types of grass in swale areas and Shepherd said probably since
they would have to return the Swale areas to their original condition.
Campbell said her concern was with the grass. Ryan said the Village
should provide for the replacement of the grass with Bahia. Brown
asked Shepherd for cost of this and Shepherd said $700-800. estimated.
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6-27-78 - 8
• Brown suggested the Council look at the properties and that callers
Denton and Schlusemeyer, had advised they believed the work was good
and were pleased with their properties. Shepherd was requested to
fully review the situation and provide the Council with costs for
changing sod and any other changes for consideration at the July 11,
1978 Council Meeting.
Ryan asked about insurance coverages under the proposed Police
Mutual Aid Agreement and was advised the Village's insurance carrier
could see no problems and in fact, was the same carrier for the other
two municipalities.
The Village Attorney briefly reviewed the proposed ordinance
providing for disposition of abandoned, etc. property in the Village
and of the reason for such an ordinance and how it would be implemented.
The Village Manager suggested changing "Registered Mail" to "Certified
Mail" on Page 3, Section 4 and this was agreed upon. The Village Manager
advised that publication of the notice of second reading had been made
June 17, 1978 and proof of publication had been received. The Village
Attorney gave second reading by title only to the ordinance. Mapes
moved, seconded by Ryan that the ordinance be adopted on second reading.
The vote on the motion was:
Mapes For
Ryan For
Yoder For
• Brown For
and the motion therefore passed. The first reading having been approved
June 13, 1978, Ordinance No. 263 was hereby adopted on second reading.
Yoder moved, seconded by Ryan that the budgeted amount of
$600. to the Jupiter-Tequesta Community Civic Council be made to the
Jupiter-Tequesta Jaycees for Fourth of July fireworks. The vote on
the motion was:
Yoder For
Ryan For
Brown For
Mapes For
and the motion therefore passed.
Yoder moved, seconded by Ryan that the Water Department
Budget Revisions submitted to the Village Council by the Village Manager's
June 9, 1978 memorandum be approved. The vote on the motion was:
Yoder For
Ryan For
Mapes For
Brown For
and the budget amendments were therefore approved. (copy of amended
budget attached to these minutes)
h-27-78 - 9
Ryan moved, seconded by Mapes that the General Fund Budget
Revisions submitted to the Village Council by the Village Manager's
memorandums dated ,7une 12, 1978 and June 23, 1978, with revised pages
2 and 3, be approved. The vote on the motion was:
Ryan For
Mapes For
Brown For
Yoder For
and the General Fund Budget Revisions were therefore approved. (copy
of amended budget attached to these minutes).
The Village Manager's June 23, 1978 memorandum advising of
the one (1) bid received from Bert B. Boldt, General Contractor, Delray
Beach, in the amount of $3,022. for construction of a bicycle path/
sidewalk and barrier curbs on El Portal Drive was discussed. Mapes
moved, seconded by Yoder that the bid of Bert B. Boldt, General
Contractor, in the amount of $3,022. be accepted. The vote on the
motion was:
Mapes For
Yoder For
Brown For
Ryan For
. and the motion therefore passed.
There being no further business, the meeting was adjourned
at 11:13 P.M.
Respectfully submitted,
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_o ert Harp
Village Manager
RH:jf.
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