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HomeMy WebLinkAbout04011992 City of Sebastian POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 [] FAX (407) 589-5570 AGENDA SEBASTIAN CITY COUNCIL WORKSHOP MEETING WEDNESDAY, APRIL 1, 1992 - 7:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA ALL PROPOSED ORDINANCES AND INFORMATION ON ITEMS BELOW MAY BE INSPECTED IN THE OFFICE OF THE CITY CLERK, CITY HALL, 1225 MAIN STREET, SEBASTIAN, FLORIDA. 1. CALL TO ORDER /.69~ 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL ~~ 4. AGENDA MODIFICATIONS ~AND/OR DELETIONS) 5. PROCLAMATIONS/ANNOUNCEMENTS Proclamation - American Library Week - April 5 - [1, 1992 Proclamation - "Yes You Can Buy a Home in Indian River County" Month - April 6. PUBLIC INPUT ON AGENDA ITEMS Please Note: Anyone wishing to speak is asked to go to the podium and state his/her name and address for the record prior to addressing the Council. CONSENT AGENDA - Ail ~tems on the consent agenda are considered to be routine and w~ll be enacted by one motion. There will be no separate d~scussion of consent agenda items unless a member of City Council so requests; ~n which event, the ~tem will be removed and acted upon separately. 92. 108 ~. A. 92. 109 / B. Award Bid for Asphalt Tack Tank and Emulsion Distributor - Neal Manufacturing - $10,855 (Staff Recommendation dated 3/24/92, Bid Tabulation, City Engineer Memo dated 3/25/92) Approve Fee Waiver for United Church of Sebastian Site Plan Application and Building Permit Fees - Refund $350 Paid (Staff Recommendation dated 3/24/92, Cointepoix Letter dated 3/23/92) 92.110 C. Waive Bid Procedure - Sole Source Vendor - Golf Course - Twenty-Two Tons 15-0-15 Fertilizer - Vigoro Industries of Ft. Pierce - $7,656 (Staff Recommendation dated 3/26/92, GC Superintendent Memo dated 3/25/92) 8. WORKSHOP ITEMS 92.021/ 91.045 Jim Davis, Indian River County Public Works Director - County Road 512 Twin Pairs (City Manager Letter dated 3/4/92, CR 512 Connector Road Plans) 92.111/ 91.071 Water and Wastewater (City Manager Recommendation dated 3/26/92, Cloud Letter dated 2/12/92, Hartman Letter dated 1/27/92, Section 180.301 FS, Cloud Letter dated 3/23/92 w/ proposed contract, Hartman Letter dated 2/21/92, R-92-10, Projected Budget Utilities Director) 92.112 Purchasing Procedures and CaPitalization of Fixed Assets - Direct Staff to Amend Standard Operating Procedures (Staff Recommendation dated 3/3/92, SOP Extracts and Recommended Changes) 9. MAYOR AND CITY COUNCIL MATTERS A. Mr. Frank Oberbeck B. Mrs. Carolyn Corum C. Dr. Peter R. Holyk D. Mr. George G. Read E. Mayor Lonnie R. Powell 10. 11. 12. 13. CITY ATTORNEY MATTERS CITY MANAGER MATTERS INTRODUCTION OF BUSINESS BY THE PUBLIC (Which is Not Otherwise on the Agenda - By Resolution No. R-89-30 Limit of Ten Minutes for Each Speaker) ADJOURN ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE BY THE CITY COUNCIL WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING (OR HEARING) WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE HEARD. (286.0105 F.S.) 3 City of Sebastian POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 [] FAX (407) 589-5570 Tack Tank and Emulsion Distributor Approved for Submittal By' City Manager ~[ Agenda No. Dept. Origin Date Submitted For Agenda of Exhibits: ~ o -92 0o-~4 C).4-0i-92 Bid Tabulation Form Eckis Memo ~ated: 3-2B-92 EX. EN~.URE REQUIRED: $10,856. AMOUNT BUDGETED: $9,300. '0 - APPR. PRzATION REQUIRED: Two Bids were received in the City Clerk's office on Tuesday, March 24, 1992 for an Asphalt. Tack Tank and Emulsion Distributor. One bid was from Neal manufacturing for $10,~55. and the other from L. B. Smith for $4,950. After reviewing the bids, the bid from L. B. Smith, in my opinion does not meet the advertised specifications ~ich is ~%y there is a serious difference in the bids. I, therefore, reco~nend approval of the bid to Neal Manufacturing. Move to approve Nea! Manufacturit~g~s bid for purchase of an Asphalt. Tack Tank and Emulsion Distributor in the amount of $!0,855.00. City of Sebastian POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 D FAX (407) 589-5570 BID TABULATION CITY OF o-BASTiAN BIDS DUE March 24, 1992, 2.-00 ~jM. CONTRACTOR/VENDOR ITEM ~ L.B. Smith, Inc. Neal Manufacturing Co Tack Tank Road repair, work $ 4,950. Tack Tank Road repair, work $10,855. NO OTHER BIDS WERE RECEIVED. City of Sebastian POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 r~ FAX (407) 589-5570 MEMORANDUM DATE- March ~ 1992 TO: FROM: Robert S. McClary City Manager Daniel C. Eckis, P.~ City Engineer/Public Hr, ks Director RE: Asphalt Tack Distributor. - Bids received Two bids were received for the Tack Distributor, one was L.B. Smith Inc with a bid , - p, zce of $4,950. the other, company was Neal Manufacturing Company Inc at $10,855. Upon review of the specifications provided by L. B. Smith, it was determined that, their proposed model L250 Tack Tank did not meet, the design specifications that were prepared for the tack distributor. The following is a list of differences between what was spec°d and what was provided: SPECIFICATION We had requested a skid mount tack distributor that could be mounted on a truck with PTO Pump drives to be provided by the vendor.. OFFERED They had provided a trailer mounted tack tank with a 5 HP Briggs and Stratton Engine. We had requested that the material be capable of being recirculated through the system and to keep it agitated. We had requested a 200 LB propane gas tank. We had requested an electronically controlled failsafe solid state ignition to provide 350,000 to 450,000 BTU's Their, specification did not indicate this. They had provided one 20 LB fuel tank. They did not indicate a solid state ignition and provide two 54,000 BTU burners. The temperature gauge was requested to be between 0 and 5(!0 degrees. Their gauge was only 0 to SO0 de~:rees. We had r. eqt~ested the pumping system be a two inch material pump equipped with high temperature seals and viable speeds adjustable both forward and reverse from zero to fifty gallons per- minute. Their bid did not. indioa%e that this was included. Therefore, because of the differences between the written specifications and what. L.B. Smith had provided~ we were unable to recommend the contract to L.B. Smith which appears to be low bidder. City of Sebastian POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 [] FAX (407) 589-5570 SUBJECT: FEE WAIVER FROM THE UNITED CHURCH OF SEBASTIAN Approved For Submittal By: City Manager Agenda Number: Dept. Origin: Com,munity Development For Agenda Of: 04108/92 Exhibits: Letter dated 03/23/92 from Renee A. Cointepoix EXPENDITURE REQUIRED: AMOUNT BUDGETED: APPROPRIATION REQUIRED: SUMMARY STATEMENT The United Church of Sebastian has requested fee waivers for their site plan and building permits through the City of Sebastian. The City Council has traditionally waived fees for all churches within the City. RECQ, MMEN.DED ACTION Move to approve the fee waiver for The United Church of Sebastian for their site plan application and building permit fees and to refund the $350.00 site plan fee paid by the church. Thomas I~ C~lladay Pastor THE UNITED CHURCH OF SEBASTIAN United Church of Christ A Union of The Congregational Chri~tian Church and The Evangelical and I~formed Church 1069 Main Street o Sebastian, Florida 32958 ° (407) $88-0461 City of Sebastian 1225 Main Street Sebastian, Florida 32958 March 23, 1992 To the Honor~le Members of the City ~uncil: Several members of the Building Committee of The ~ited ~urch of ~bastian attended the Planni~ and Zoning Board Meeting on the eveni~ of March 19th. ~ring the progress of the meeti~, members of the Board stated that it was the poli~ of the ~ of Sebastian to waive Buil~ ~rmit Fees ~r churches. ~ are respectfully submitting our paid statement in the amount of $350.00 paid to the ~ ~r Buil~ Permits, and ask that Members of the ~unail consi~r returning said amount to our church. ~ would also like to commend all members of the Planni~ and Zoni~ Committee ~r their courtesy to all attending. Respect~llysubmitte~ Ren~e A. Oointepoix Clerk The United ~ureh of Sebastian 1069 Main Street Sebastian, Florida 32958 CITY OF SEBASTIAN BUILDING DEPARTMENT RECEIPT Name/~ -~, / / ~"~/ Payment n Cash Date :~,~ ~.'/. 9 ~ Method ,~Check # ,/"! ,/.. AMOUNT PAID Radon Fee 208200 Prepaid License Renewal 223200 ~ Building Permit 322100 Reinspection Fee 322100 Electrical Permit 322200 Plumbing Permit 322200 , , Model Home 322400 Side Swale Culvert 322750 Contractor's License Application Fee 323100 C~)mractor's License Renewal 323200 Block Exam (Gainesville) 323400 ! Block Exam (Sebastian Site) 323400 i Other Licenses & Permits 329000 .- Abandonment of Easement 341110 i Pre-Application 341210 ' I-1 Minor 341220 .- . _.. ~...~ ! Site Plan Approval ~, Major 341230 ,-" ~. '- Planned Unit Development 341235 Conceptual r-I or Preliminary [] Plat 341240 Preliminary l'-J. o~-Fi,nal [] Model Home APplicati~' .... 341700 [ .J TOTAL PAID ~ Signature / ~ White - Finance Pink - Applicant Gold - Building City of Sebastian POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 r~ FAX (407) 589-5570 SUBJECT: Waiver of Bidding Procedure for Fertilizer Purchase Approved For Submittal By: City Manager Agenda No. Dept. Origin Date Submitted For Agenda of Exhibits: Finance (LWN) 03-26-92 o4-ol-oR ..... Memo from GCS EXPENDITURE AMOUNT APPROPRIATION REQUIRED: $ 7,656.00 BUDGETED: $ 30,000.00 REQUIRED: SUMMAR~ STATEMENT The Golf Course Superintendent requests a waiver of the bidding procedure on the purchase of twenty two (22) tons of 15-0-15 fertilizer with I.B.D.U. Par-Ex Professional Products is the only company licensed to market I.B.D.U. in the United States. The area distributor is Vigoro Industries, of Ft. Pierce and the cost of twenty two (22} tons of 15-0-15 fertilizer is $7,656.00 and adequate funds are budgeted in the Golf Course Fund. Pursuant to city code section 2- 64 {j), "The City Council may waive the bidding procedure as bids shall not be, required for items that are available as a matter of commercial reasonableness from one source only". RECOMMENDED ,ACTION Move to grant a waiver of bidding procedure and authorize the purchase of twenty two (22) tons of 15-0-15 fertilizer with I.B.D.U. from Vigoro Industries of Ft. Pierce, in the amount of $7,656.00. City of Sebastian POST OFFICE BOX 780127 D SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 FAX 407-589-5570 25, I u, ouZd .{Lke '~o waLve ,L]~e bLddLng, paocedu~e {o~ company ~tc~na~d ~o ma~ke~ I.B.D.U. Ln ~ke U.S.~. lkLa ka~ ~n documented Ln paevLoua fer~L2L~e~ pua- ckaaea. VL~oao ]ndua~L~a Ln-F~. ~Lea~e La ~e ~n purckaa~ wLll b~ $7,656.00. I{ you kav~ ~ueatLona abou~ ~AL~, pieaae con~ac~ me. G: IIO SUBJECT: City of Sebastian POST OFFICE BOX 780127 O SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 s FAX (407) 589-5570 County Road 512 Twin Pairs Approved for Submittal By: City Manager ~ Agenda No. Dept. Origin Date Submitted 03-03-92 For Agenda of 04-01-92 Exhibits: City Manager Letter dated 3-4-92 and 512 connector road plans prepared by Kimball/Llyod EXPENDITURE REQUIRED: AMOUNT BUDGETED: APPROPRIATION REQUIRED: SUMMARY Jim Davis, Public Works Director for Indian River County will be making an informative presentation of the eastern portion of the proposed twin pairs alignment. Staff has met with Indian River County and their consultants and have tentative!¥ agreed to the concept outlined in the City Manager's letter dated March 4, 1992 tc Indian River County. No action is required. We request that City Council review the enclosed documents and resolve any questions that they may have with respect to the proposed al ignment. City of Sebastian POST OFFICE BOX 780127 D SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 [3 FAX (407) 589-5570 March 3, 1992 Mr. James W. Davis P.E. Indian River County 1840 25th Street Vero Beach, F1 32960 Re: CR-512 Dear Jim: Thank you for the recent meetings between city and County staffs on February 14th and February 27th to discuss Indian River County's plans for CR-512. While the City Council has not reviewed any of the following items, except the necessity for traffic signals at Fleming and Barber, I offer the following representative comments from City staff: We agree that the construction of High Street between the two legs of the Twin Pairs is a logical traffic corridor and would accomplish several things. One, the commercial area to the South of existing CR-512 is accessible by High Street. Old Dixie Highway has a limited right-of-way and Louisiana Avenue does not extend South of CR-512. If High Street is improved then Louisiana Avenue would not interconnect the two legs and would dead-end into a cul- de-sac to the North. Additionally, Veterans Memorial Way could then be extended to the West to intersect with ~he proposed Westbound leg. This would also allow an improved intersection with Temple Avenue. The practical effect of constructing High Street would be its continuation on to Louisiana Avenue to the North. City staff concurs that South Wimbrow should be extended to connect the two legs of the Twin Pairs and further extended North to intersect with Temple Avenue. This will help meet a City goal of providing two points of access to subdivisions within the City. This link is also identified in the City Comprehensive Plan. CR-512 Page 2 Stormwater run-off from the proposed Westbound leg West of Fleming Street will discharge into what is known as the "Wentworth ditch". While the city will work with the County for the discharge of stormwater into this city owned ditch, we ask your cooperation and assistance in improving the ditch to accommodate the additional stormwater. As you know, large portions of this existing drainage ditch are not properly aligned and City staff feels it would be most appropriate to reconstruct the ditch to handle the additional capacity and to effect a proper alignment at the same time. Although the first phase of construction of CR-512 will not include the intersections with Barber Street and Fleming Street, we ask you to immediately install traffic signals at these two locations. We would hope that the installations of traffic signals at these two locations would be compatible with the four-laning in the future. The new Food Lion will soon be completed in Chessers Gap and the demands on the intersection of Fleming and CR-512 will be great. The intersection of Barber and CR-512 is frequently the scene of stalled traffic and minor accidents. We believe the signalization of these two intersections cannot and should not wait until the four- laning due to the fact that existing traffic movement and operations warrants the signalization. The capacity expansion to four lanes is now planned to terminate at a point West of Roseland Road and East of the Sebastian River. With the development of the North County High School on CR-510 plus the continuing development of Vero Lake Estates, we ask you to evaluate and plan for the four lane extension to the intersection of CR-512 and CR-510. Again, I must add a disclaimer that the above represents the Sebastian City staff preliminary review of.the above items (except for the signalization at Barber and Fleming) and that these items have not yet been reviewed by the Sebastian City Council. However, we hope to workshop these items with the Council in the near future. Sincerely, Robert . McClary City Manager cc: W. E. Cony·rs, Mayor and Sebastian City Council Daniel C. Eckis, P.E. Bruce Cooper Earl L. Petty, Jr. City of Sebastian POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 D FAX (407) 589-5570 SUBJECT= Water & Wastewater Approved For Submittal By: City Manager ) ) Dept. of Origin= city Manager ) ) Date Submitted 03/26/92 ) ) ) For Agenda Of= 04/01/92 ) ) Exhibits= )- Cloud Letter Dated, 02/12/92 )- Hartman Ltr. dated 01/27/92 )- Section 180.301 FS )- Cloud Ltr. dated 03/23/92 with ) proposed contract )- Hartman Ltr. dated 02/21/92 )- Resolution R-92-10 )- Projected Budget Utilities Director SUMMARY STATEMENT Indian River County and the City have completed negotiations of an inter-local agreement to terminate the IRC Water & Sewer Francise, return the City's rights under the GDU Francises, and to work together in providing water and wastewater services to the City. Upon execution of the agreement, the City will have one year to establish a utilities department and provide retail service to customers who may connect to existing County lines. The IRC Agreement will also mean that the city can pursue the acquisition of the General Development Utilities Water & Wastewater facilities within the City. To effect the acquisition of the GDU facilities, the City must first meet the requirements of Section 180.301 Florida Statutes. I have solicited proposals from our special legal counsel and engineer for the research, analysis and documentation for this phase of work. Thomas A. Cloud Esq.estimates the legal expenses to be between $20,000 and $25,000. Hartman & Associates would have an upper limit of $19,400 for the engineering analysis involved. For your information, I have outlined the legal and engineering services both approved and proposed for City water and sewer. 1. Feasibility $10,000 $10,000 $ 20,000 2. IC Negotiations 30,000 17,500 47,500 3. Sec. 180.301 FS Hearing 25,000 19,400 44,400 TOTALS $65,000 $46,900 $111,900 Additionally, the City Council should review related items of establishing an initial utilities department staff and consideration of a resolution which would authorize the reimbursement of certain expenditures with the proceeds of future tax exempt bonds which may be used for financing. RECOMMENDED ACTION Review the following water and sewer utility matters: Inter-local agreement between Indian River County and the City. Engagement letter with Thomas Cloud for preparation of the 180.301 FS Hearing. Letter of engagement with Hartman & Associates for preparation of the 180.301 FS Hearing Briefing Documents. Resolution which would authorize the reimbursement of certain expenditures with the proceeds of tax exempt bonds which may be used for financing. 5. Establish initial utilities department staff. GORDON H. HARRIS RICHARD M. ROBINSON PAMELA O. PRICE CHARLES w. SELL PRO~EB~ONAL A~$OC~AT~ON ATTORNEYS AT LAW SUITE 1200 SOUTHEAST BANK BUILDING 2OI EAST PINE POST OFFICE BOX FAX (407) GLASS BANK BUILDING BO-~, NORTH ORLANDO AVENUE POST OFFICE BOX 320?B? Coco.& ]3~.&c]~, F~. e~93,,-o7s7 TELEPHONE (~07) 7~3-~1~ ~A~ (407) ~-~7 WRI'rER'$ DIRECT DIAL PLEASE REPLY TO: Orlando February 12, 1992 DEBORAH S. HERNANOEZ PAUL S. OUINN, JR. DAVID L. SCHICK ORLANDO L. I:VORA SUSAN 0. TASSI:"LL ANTHONY J- COTTER JOHN B, SHOEMAKER MARK S. WALKER MALCOLM R. KIRSCHENBAUM Mr. Robb McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida 32978 RE: Next Phase of Work Dear Robb: As we discussed last week, the next phase of work in this matter will involve research analysis in preparation of any ordinance regarding rate regulation and CIAC, together with the preparation of the preliminary resolution before the first Chapter 180.301 hearing. We are also getting close to exceeding the $30,000 allocated for the negotiations between Indian River County and the City of Sebastian. Therefore, for completion of the negotiations and completion of the next phase as outlined above, I estimate it will take between $20,000 and $25,000. Please call me if you have any questions on this matter. Thomas A. Cloud, Esquire) GRAY, HARRIS & ROBINSON/P.A. TAC:jlm III/ 7/ engineers, hydrogeologists, surveyors & management consultants January 27, 1992 I-IAI ~92-023.00 Mr. Robert S. McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida 32978-0127 Subject: Chapter 180.301 Hearing, Briefing Document and Ordinance Assistance Dear Mr. McClary: This letter constitutes Hartman & Associates, Inc.'s (I-IAI's) proposal to serve the City of Sebastian with regard to the preparation and investigations necessary for the first of a two-part 180.301 Hearing regarding the public purpose and public interest of the potential acquisition of General Development Utilities, Inc. (GDL0. Also, HAl will provide a 180.301 Briefing Document and provide technical assistance for related ordinances on behalf of the City as a consultant to the City. More specifically, the studies and investigations relative to GDU include the following: 1. The most recent available income and expense statement for the utility. The most recent available balance sheet for the utility listing assets and liabilities, and clearly showing the amount of contributions-in-aid-of-construction and accumulated depreciation thereon. 3. Statement of the existing rate base of the utility. 201 EAST PINE STREET · SUITE 1000 · ORLANDO, FL 32801 ~ fl~ TELEPHONE (407) 839-3955 ° FAX (407) 839-3790 PRINCIPALS: JAMES E. CHRISTOPHER · CHARLES W. DRAKE · GERALD C. HARTMAN · MARK l. LUKE · MARK A. RYNNING · HAROLD E. SCHMIDT, JR. Mr. Robert S. McClary January 27, 1992 Page 2 4. A review of the physical condition of the utilities being purchased. 5. A typical purchase and sale, terms and conditions example. 6. The general impacts of the purchase on existing utility customers, both positive and negative. 7. A summary of any additional investments required for the utility system. 8. A summary listing of the alternatives to the purchase and the potential general impact upon utility customers if the purchase is not made. 9. The management options available to the City to provide and maintain high-quality and cost-effective utility service. 10. A statement of public purpose. We will be prepared to present our findings of the 180.301 program within ten (10) weeks of the notice to proceed. The total up-set limit for our engineering and management consulting services will be $197,00.00. We will invoice the City in accordance with our hourly rate schedule attached as Exhibit "A". The primary project team members will be Mr. Harold E. Schmidt, Jr., P.E., Mr. Robert J. Ori, M.B.A., C.P.A., myself and support staff. Mr. Robert S. McClary January 27, 1992 Page 3 We appreciate the opportunity to serve the City of Sebastian on this important project. ACCEPTED BY: Very truly yours, Hartman & Associat~2vI~ G~iCald C. ~rtman, P.E. Vice President City of Sebastian Attest Authorized Signature Approved as to form: Date Signature Date GCH/ch P4/McClary.gch HARTMAN & ASSOCIATES, INC. HOURLY RATE SCHEDULE G. C. Hartman Partners/Principals Division Managers/Heads (Engineer VIH) Engineer va (P.E.) Engineer VI (P.E.) Engineer V Engineer IV Engineer HI Engineer I/II Senior Scientist Project Manager Senior Engineer Inspector Engineer Inspector Senior Planner/Designer Hydrogeologist Junior Hydrogeologist Staff Planner Planning Technician Computer Time Engineering Technician IV Engineering Technician HI Engineering Technician II Engineering Technician I Draftsperson HI Draftsperson Ii Draftsperson I Graphics Manager Graphics Technician Graphics Draffsperson Secretarial Support Reproduction/Courier Support Senior Accountant Accounting Support $90.00 $85.00 $75.00 $65.00 $60.00 $55.00 $5O.00 $45.00 $40.00 $55.00 $55.OO $45.00 $42.00 $46.00 $46.0O $37.00 $40.O0 $34.00 $32.00 $45.00 $40.00 $35.00 $30.00 $30.00 $27.50 $25.00 ~5.00 $35.00 $27.50 $25.00 $21.00 $52.50 $34.00 GCH/ch A-1/Seb. AtC C-1 Ch. '180 MUNICIPAL PUBLIC WORKS F.$, 1991 180.301' Purchase or sale of water or sewer utility' by munlclpalily.--No municlpalily may purchase pr sell a water or sewer utility that p, rovides service Io the public Ior, compensalion, until the ~overning body ol the munlc- ipalily has held a public hearing on Ihe purchase or sale and made a delermination that the purchase or sale is in the public inlerest. In delermining il the purchase or sale is in the public interest, the' municipalily shall con- sider, al a minimum, ihe following:.' (1) The most recent available income and expense slatement for ihe utility; .... . (2) The mosl recent available balance sheel Ior Ihe utility, lisllng' assel.s ~hd liabilities and clearly showing the amount bi contributlons-.in-aid-of-conslruction and the acc[JmUlated depreclallon Ihereon; (3) A statement 9t the existing rate base of Ihe utilily tor regulatory purposes; (4) The physical coddllion of the ulilily lacililles being purchased or §old; (5) The reasonableness of the purchase or sales price and termsj '(6)' The Impacts ol the purchase or sale on ulility customers, both poslllve and negative; ' (7~ ' Any additional Investment required and the abil- ity and willidgness ol the purchaser to make that inv(~st- ment~ whether the purchaser is the municipality or the enlity ~chasing Ihe.u!ility Irom the munlclpalily: (8) The allernalives lo II~e purcl'~ase or sa~e and Ilie polential impact on utility cuslomers il the purchase 0i sale is not made; and (9) The abillly ol the purchaser Io provide and main- rain hlgh-qualily and cost-ellective utilily service, whether Ihe purchaser is ihe municipality or the entity purchasing Ihe utility Irom the municipality. The mUnicipalily shall prepare a s. lalemenl showing Ilhal · Ihe purchase or sale Is in the public interest,, including a summary ct the purchaser's experience in water and sewer Utilily operation and a showing ol linanclal abililY to provide.lhe service, whelher the purchaser Is-lhe - municipality or the entily purchasing Ihe utility Irom Ihe municipality, GRAY, H~$ & ROBZNSON ~ROF'£BSIONAL ASSOCIATION ATTORNIrY$ AT LAW SUITE: I~'OO BOUTH£AST BANK BUILDING 201 EAST PINI' 5TRI!~ET TELEPHON; (407) e~-eeeo FAX (~O7) Z~-6~90 GLA-~5 BANK I~UILDING 505 NORTH ORLANDO AV£NUI[ PO~,T OFF~CE BOX 3~0757 FAX (40~) 783-2~97 WRITIrR'B DIRE:CT DIAL PL£A$£ R£PLY TO: Orlando March 23, 1992 VIA OVERNIGHT MAIL Mr. Charles P. Vitunac Indian River County Attorney 1840 25th Street Vero Beach, Florida 32960 Interlocal Utilities Agreement between Indian River County, Florida and City of Sebastian, Florida Dear Charles: I have been informed that a meeting took place between the City and County last Friday, March 20, 1992 and have been instructed to make certain changes in the draft of the Interlocal Utilities Agreement as outlined below. Therefore, enclosed you will find four originals of the above referenced Agreement, lacking only the exhibits. The changes that have been made to the Agreement involve the following: (1) The date in paragraph 2, page 6 has been changed from "March 1, 1992" to "May 1, 1992," (2) As noted in my previous letter to you of January 13, 1992, the fourth line of paragraph 7.2 has been changed to read "Class II customers" rather than "Class I customers," and (3) I have modified paragraph 7.3 on page 9 to provide that the City is responsible for the operation, maintenance, and replacement of the master meters. I also changed the use of the terminology that appears in only part of this paragraph (and not in the rest of the Agreement). For some reason that escapes me now, the terms "provider" and "purchaser" are used in the first part of paragraph 7.3. Mr. Charles P. Vitunac March 23, 1992 Page 2 I believe it would be better and more consistent to change the word "provider" to "County" and the word "purchaser" to the word "City." It is my understanding that the rates were discussed at the meeting. Even though the City staff does not completely agree with the methodology or the numbers that were proposed by the County for the rate, both parties did agree to present and recommend the rate schedule to their respective decision makers which was discussed at the meeting. I assume you will send copies of this proposed rate schedule to Robb McClary and Gerry Hartman at the earliest possible time. It is also my understanding that you will preparing all three exhibits for the Agreement, which include: A complete copy (including all exhibits) of the Park Place Agreement as Exhibit "A," (2) The map to be used as Exhibit "B," (3) The rate exhibit for the bulk rate to be included as Exhibit "C." Once you have attached exhibits to the four originals, it is my understanding that they will introduced for approval and execution by the Board of County Commissioners. Upon execution of all four originals, please deliver all four originals to Robb McClary for submittal to the City Council. Upon execution, two of the originals will be returned to you directly. TAC:jlm 40107-1 Enclosures: If you have any questions regarding this matter, please don't hesitate to call on me. ~ your.s~ ~u'~, ~.s~u~e GRAY, HARRIS & ROB~, P.A. Four original Interlocal Utilities Agreement cc.' Robb McClary Gerald C. Hartman INTERLOCAL UTILITIES AGREEMENT BETWEEN INDIAN RIVER COUNTY, FLORIDA AND CiTY OF SEBASTIAN, FLORIDA Prepared by: Thomas A. Cloud, Esquire Gray, Harris & Robinson, P.A. 201 East Pine Street Suite 1200 Orlando, Florida 32801 (407) 843-8880 INTERLOCAL UTILITIES AGREEMENT BETWEEN INDIAN RIVER COUNTY, FLORIDA AND CITY OF SEBASTIAN, FLORIDA THIS AGREEMENT, made this __day of , 1991, by and between INDIAN RIVER COUNTY, a political subdivision of the State of Florida, the address of which is 1840 25th Street, Veto Beach, Florida 32960 (hereafter COUNTY) and the CITY OF SEBASTIAN, a municipal corporation of the State of Florida, the address of which is Post Office Box 127, Sebastian, Florida 32978 (hereafter CITY), and its successors and/or assigns, W I T N E S S E T H: That for and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the COUNTY and the CITY agree as follows: PRELIMINARY FINDINGS 1. AGREED FACTS. The following are true statements: 1.1. The CITY granted a water franchise to General Development Utilities, Inc. (GDU) in CITY Ordinance 0-81-8 and granted a sewer franchise to GDU in CITY Ordinance O-81-9 (col- lectively the GDU franchises) to allow GDU to operate and main- rain a water distribution and a wastewater collection and dis- posal system within a portion of the CITY. 1.2. On January 14, 1987, by CITY Resolution R-87-6, the CITY gave the COUNTY a 30-year exclusive franchise for the provision of water and wastewater services within the rest of the City. 1.3. An interlocal agreement entered into between the CITY and COUNTY and effective February 3, 1987, required the CITY to assist the COUNTY in assessing property owners for the construction of collection systems in the City limits. 1.4. At construction financing for a wastewater plant and main lines, the COUNTY issued revenue bonds in the amount of $6,075,000 on October 15, 1989. Part of the security for the re- payment of these bonds was the revenue from impact fee assess- ments for reserved connections within the City. 1.5. The COUNTY has constructed a wastewater treatment plant, major collection lines, and certain force mains from the plant through the unincorporated area into the City and beyond and was ready to provide service for CITY customers on or about March 5, 1991. 1.6. Approximately CITY equivalent residential units are now receiving wastewater service from these facilities. 1.7. On December 12, 1990, the CITY and COUNTY entered into and executed an assignment whereby the CITY transferred to the COUNT~, and the COUNTY accepted, all of the CITY's right, 3 title, and interest in the GDU franchises, except the right to receive any and all franchise revenues and fees owed under the GDU franchises, and except the right to regulate rates and charges being charged and collected pursuant to the GDU fran- chises. 1.8. The CITY on or about February 27, 1991, deter- mined that it would be in the CiTY's best interest to consider a revocation or cancellation of the franchise given to the COUNTY in paragraph 1.2 and perhaps provide its own water and wastewater service. 1.9. On March 5, 1991, the COUNTY unanimously agreed to relinquish its franchise rights within the CITY if that was what the CITY wished. 1.10. On March 13, 1991, the COUNTY sent a letter to the CITY offering to relinquish its franchise rights. 1.11. On April 5, 1991, the CITY conditionally accepted the COUNTY's offer, subject to completion of the neces- sary documents containing terms and conditions acceptable to both parties so that agreements, ordinances, and resolutions may be rescinded in such a manner as to not impact third parties. 1.12. On March 27, 1991, the CITY hired a utility con- sultant to prepare a feasibility study concerning whether the CITY should provide its own water and wastewater systems. 1.13. The feasibility study prepared by the CITY's consultants was presented to the CITY on June 26, 1991, and recommended that the CITY go ahead with its own utility service. 1.14. Based on the announced intention of the CITY to develop its own utility systems, on or about August 6, 1991, COUNTY cancelled plans for expanding the COUNTY's North County Wastewater Treatment Plant. 1.15. The CITY is taking the necessary steps to regain all of its rights under the GDU franchises in order to potentially acquire GDU's water and wastewater systems to enable the CITY to develop a City-wide water and wastewater utility. Modification of the COUNTY's franchise is also a necessary prerequisite to the CITY's development of its own water and wastewater system. 1.16. The COUNTY has agreed to cooperate with the CITY as long as the interests of the COUNTY utility system, the bond holders, and the CITY customers who have reserved capacity in the system are all protected. 1.17. The COUNTY and CITY staff members have met on several occasions to work out interim plans to effect the separa- tion of the utility systems and have recommended the provisions of this agreement as an acceptable way to satisfy the concerns of all parties. EXISTING AGREEM~..NT$ 2. CANCE?J~TION O~ ¢OUNTY.~RANCHISE. Effective May 1, 1992 (the "Cancellation Date"), the parties hereby agree to and do cancel the existing franchise and all of the rights granted to the COUNTY by the CITY under CITY Resolutions R-87-6 and R-87-7, and under the Intergovernmental Agreement between the CITY and the COUNTY which was effective February 3, 1987. 3. CONTIN~ANCE.....QF PRESENT SERVICE. Up to and until the Cancellation Date, the COUNTY will allow available permanent capacity of the COUNTY system to be purchased by customers within the City limits pursuant to the terms of the existing franchise. On and after that date the COUNTY will sell available permanent capacity for connections within the City only to the CITY itself, which may in turn make this capacity available to customers within the City. 4. REAS$IGNMF....NT OF RIGHTS T0~URCHASE~GDU FACILITIES. The assignment by the CITY to the COUNTY by CITY Resolution R-90-55 of all right, title, and interest in GDU's franchises given in CITY Ordinances 0-81-8 and O-81-9 are hereby reassigned to the CITY effective the date of this agreement. That Agreement between the CITY and COUNTY entered into on December 12, 1990, is hereby terminated. The parties agree that one of the effects of this termination and reassignment is, among other things, to allow the CITY to exercise its option to purchase the GDU facilities and provide water and wastewater service in the territory covered by the GDU franchises. 5. OTHER AGRESMENTS. During the term of the COUNTY's franchise in the CITY an agreement was entered into with Park Place which created rights and obligations in the County. This agreement and all exhibits thereto is attached to and incorporated in this Agreement as Exhibit "A." The COUNTY assigns and the CITY assumes all COUNTY's rights, duties, and obligations under this agreement effective upon the Cancellation Date. The COUNTY agrees that the CITY's and its customers' obligation to pay impact fees under this agreement attached as Exhibit "A" shall be the same as the Seller under this Agreement. The COUNTY agrees to assist the CITY in any litigation with respect to the agreement attached as Exhibit "A." NEW UTILITY AGREEMENTS 6. DEFINITION~. 6.1. Glass I..~.nits - units in the CITY which are connected to or which have reserved capacity in the COUNTY waste- water system before the Cancellation Date and which have a collection system available to them, even if the physical connection to the unit has not been made. 6.2. Class II Units - Units within the CITY which have reserved capacity in the COUNTY wastewater system before the Cancellation Date but which do not have a collection system available. 6.3. Qlass..~II Units - Units within the CITY other than Class I and II Units. 6.4. Tr~atmen~ - The treatment, transmission, and related effluent disposal of wastewater. 6.5. UtilitY.Service - shall be used to include rate setting, customer connections, meter installation, meter reading, billing, bill collection, customer relations, customer com- plaints, collection system construction, related repair work, and all other necessary, customary, and convenient activities per- formed by a utility company other than the treatment of waste- water. Utility service shall not include repair and maintenance of the COUNTY's lines, force mains, or pump stations shown on Exhibit "B", as amended from time to time. These shall be the responsibility of the COUNTY. 7. SERVICE AGRE~NT. 7.1. Effective on the Cancellation. Date but except as modified by paragraph 7.5 hereof, the COUNTY will cease to be the utility service provider within the City and will become instead only the treatment, transmission, and effluent disposal (hereinafter "treatment") provider for all wastewater generated for all Class I and II Units and for the number of Class III Units for which the CITY has purchased or does purchase permanent capacity in a COUNT~wastewater treatment plant. 7.2. Effective on the Cancellation Date the CITY shall become the utility service provider for all classes of customers within the City limits and shall, as part of this duty, provide collection systems for Class II customers in a manner such that the interests of the Class II customers will not have been harmed by the revocation of the COUNTY franchise. The COUNTY agrees to develop a nondiscriminatory, cost-of-service rate to be charged to the CITY for treatment of the wastewater which rate shall take into account the fact that the CITY is the utility service provider for all classes of units within the CITY. The rate and components which make up this rate are depicted in Exhibit "C" attached to and incorporated in this Agreement. The CITY reserves the right to become a wastewater treatment provider also for any or all units within the CITY subject only to the rights of the COUNTY as described in paragraph 8. 7.3. Upon installation and acceptance, the metering equipment shall become the property of the COUNT~, but the CIT~ shall be responsible for the operation, maintenance, and replace- ment of the meter. The COUNTY shall read the meter for billing purposes. The metering equipment shall meet the standards of the American Water Works Association ("AWWA") for accuracy, which is plus or minus three percent (3%). The CiTY may request an accuracy test by the provider without charge once during any twelve (12) month period. The CiTY may witness the test. Additional testing may be requested by the purchaser at the COUNTY's established cost for such tests. Copies of the test results will be provided to the purchaser within thirty (30) days of the test. There will be no charge for tests that discover an inaccurate meter. If an inaccurate meter is found, as defined by the AWWA, bill adjustments will be made for one-half (1/2) of the preceding period since the last accuracy test. In any event, the CITY shall continue to pay bills, whether disputed or not, until any dispute is resolved. Following the period set forth in paragraph 7.5 hereof, the requirement for the CITY to install a sewer meter at a COUNT~ pumping station shall not arise at said pumping station until the CITY expands a gravity collection system to be connected to that pumping station of adequate size to warrant installation of an appropriately sized sewer meter to be mutually agreed upon by the CITY and COUNTY based upon industry standards and engineering standards. Until any such installation, billing for sewage flows through that pump station shall be based upon metered water consumption of each individual customer. 7.4. As a bulk customer of the C0UNTY wastewater system, CITY understands that it will have to comply with COUNT~ policies on the quality of wastewater put into the COUNTY system and other customer reasonable, technical standards adopted by the COUNTY countywide. 7.5. COUNT~ shall provide any of the services included within the term "Utility Service," which it can legally perform, 10 on behalf of the CITY, for up to one (1) year from the Cancellation Date. The costs for the services to be charged by COUNTY to CITY will be the COUNTY's retail rates. The CITY shall have the option of earlier terminating this arrangement and assuming responsibility for utility services at any time during the one (1) year period by sending written notice to the COUNTY giving the COUNTY thirty (30) days' advance notice. Upon termination of the COUNTY's provision of utility services hereunder or the end of the one (1) year period, whichever first occurs, the COUNTY shall not charge said retail rates, but rather shall charge the bulk rates referred to in Exhibit "C" hereof. 8. TRANSFER OF. UNITS. The COUNTY agrees that on the request of the CITY it will transfer to the CITY for treatment purposes also Class I and Class II Units and any Class III Units for which permanent capacity has been bought, whenever the COUNTY has a COUNTY customer available to purchase the capacity used or reserved by the units which are requested to be transferred. The COUNTY will use good faith efforts to procure a replacement cus- tomer for the capacity, and, upon receipt by the COUNTY of the COUNTY impact fee current at that time from the new customer, the COUNTY shall remit to the CITY the impact fee originally paid by the customer who is to be transferred to the CITY. This sum of money may be used by the CITY to finance the City operated replacement capacity needed to provide wastewater treatment for that transferred unit. Units so transferred shall not be charged an additional capacity impact fee by the CITY. 11 9. T...RANSFER OF COLLECTION SYSTEMS. The COUNTY and the CITY both acknowledge that certain collection systems may be dis- connected from the COUNTY system entirely, transferred to the CITY without charge for the collection facilities, and reconnected to a new CITY system, said reconnection to be at CITY's expense, when all units on the system to be reconnected are City customers, either by transfer or otherwise. The COUNTY will cooperate in making these transfers. 10. CITY. PUR~HA~.~ OF...CAPACI~ iN COUNTY PLANT. COUNTY agrees to sell capacity to the CITY under standard COUNTY poli- cies and rates. The present COUNTY policy is to expand waste- water treatment plant facilities when financially and technologi- cally feasible, and when consistent with the Utility Master Plan, provided that reservations are committed which will fund the expansion. Part of the reservation includes the requirement to pay the COUNTY monthly base facility charges. 11. DISCLAIM~.R OF THI~ PARTY..BENEFICI.ARIES. This agree- ment is solely for the benefit of the formal parties herein and no right or cause of action shall accrue upon or by reason hereof, to or for the benefit of any third party not a formal party hereto. Nothing in this agreement expressed or implied is intended or shall be construed to confer upon or give any person or corporation other than the parties hereto any right, remedy, or claim under or by reason of this agreement or any provisions or conditions hereof; and all of the provisions, representations, covenants, and conditions herein contained shall inure to the sole benefit of and shall be binding upon the parties hereto and their respective representatives, successors, and assigns. 12. DELINOUENT FEES, CHARGES, AND ASSESSMENTS. With respect to customers who have previously purchased capacity from the COUNTY but have not yet connected (Class II customers), the CITY is not required to guarantee or make payment of COUNTY impact fees, base facility charges or assessments in lieu of impact fees due but not yet paid by the customer. However, if the said customer does not pay any such assessments, fees and charges, the COUNTY may keep any impact fees, charges or assessments paid and the individual customer cannot receive service from either the CITY or the COUNTY unless all delinquent assessments, fees, and charges are paid to the COUNTY. Under these circumstances, the CITY shall be able to charge an additional impact fee charges, and assessments to the customer but shall not provide service until all delinquent fees, assessments, and charges are paid by said customer to the COUNTY. 13. TERM OF AGREEMENT. The agreement shall be in effect for 30 years. The termination of agreements, resolutions, and ordinances specified in paragraphs 2 and 4 hereof shall not be affected by termination of this Agreement. IN WITNESS WHEREOF, COUNTY and CITY have entered into this 13 agreement on the date first above written. Attest: INDIAN RIVER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS Jeffrey K. Barton, Clerk Richard N. Bird, Chairman Attest: CITY OF SEBASTIAN, FLORIDA Clerk Mayor Attachments: Exhibits "A, .... B," and "C" 77/29:318/5 14 HARTMAN & ASSOCIATES, INC. engineers, hydrogeologists, surveyors & management consultants February 21, 1992 HAI//91-174.00 Mr. James Chanceller County Administrator Indian River County 1840 25th Street' Vero Beach, Florida 32960 Subject: . Bulk Wastewater Rate - City of Sebastian Dear Mr. Chanceller: We have .received a copy of the Bulk Wastewatex Rate Study prepared by CH2MI-Iill for the County regarding wholesale wastewater service to the City of Sebastian. Based on our review, we have some reservations regarding the derivation of the wholesale rate and the relationship of the level of the rate when compared to the County's retail rate. One concern we have deals with the allocation of costs among the expense classifications (e.g., collection, treatment, etc.). There was really nothing mentioned in the CI-I2MHill Study regarding the basis for the allocation among the expense categories and we never received any of the operating and capital budgets we had earlier requested, It would be helpful to us to receive these documents. This would also assist us in the identification of total costs and the reconciliation of such costs to the tables in the CH2~ Report (i.e., differences in cost figures reflected in the tables included in the Appendix of the Report It also appears that the calculation of the rate did not take into account other available revenues such as interest income on operating and debt service funds. We would appreciate that a, breakdown of interest income by fund balance, as well as other operating revenues allocable to the wastewater system, be provided to us. Another question we have regarding the analysis deals with the allocation of administrative costs reflected in the operating expense listing reflected in the report. We feel that it is inappropriate to allocate these costs based on total operating expenses, since several of the items have no relationship to such costs. For example, the cost of electricity, purchased sewer expenses, and bad debt expenses have no relationship to travel or uniforms. Additionally, other administrative charges are not even reflected on the detail tables reflected in the study. Thus, it would be beneficial if the County would provide more detail for the determination of the allocation, including plant account balances, detailed listing of salaries and wages, and descriptions of the expenses by department. 201 EAST PINE STREET · SUITE 1000 · OP&ANDO, FL 32801 TELEPHONE (407) 839-3955 · FAX (407) 839-3790 PRINCIPALS: JAMES E. CHRISTOPHER · CHARLES W. DRAKE · GERALD C. HARTMAN · MARK I. LUKE * MARK A. RYNNING · HAROLD E. SCHMIDT. JR. ~Mr. James Chanceller February 21, 1992 Page 2 The report also stated that a certain amount of debt service associated with the collection system was allocable to the bulk wastewater rate. Second, only the transmission facilities from the point of delivery to the County's system from the City's facilities to the wastewater treatment plant facilities, which are jointly used, should be reflected in the rate for service. It appears that the full cost of these facilities have been allocated to the City. it would therefore be helpful if the County provided copies of all Official Statements, Bond Resolutions, etc., relative to the financing of these facilities, so an accurate assessment of cost can be determined. We already stated that the plant account balances would be helpful (this should be by plant account type). Finally, .is unclear to us how the billing costs are allocated; i.e., is the rate applied on a per meter basis (one account due to master meter), or per residential connection. Also, there is no delineation of costs for our review. For example, if bad debt expenses are included in this charge, it would not be appropriate for the City to incur such a cost. As you can sec,'Mr. Chanceller, we have several questions regarding, the Bulk Wastewater Rate being offered by the County, some of which are briefly discussed above. As a result of our questions and concerns, we would like to meet with the County and its consultants at the · earliest convenience to discuss these issues. This would probably be beneficial since we may be able to avoid a lot of expense to both the City and County regarding detailed analyses of this rate. As previously mentioned, we feel that the rate differential between the County and the City for the recognition of bulk service is not reflective of the industry based on the conditions of service, as shown below for a few comparable utilities Percent of Bulk Rate To Retail Rate (*~ Altamonte Springs City of Melbourne City of St. Petersburg Volusia County 67.3% 67.7% 47.1% 86.2% Mr. James Chanceller February 21, 1992 Page 3 We appreciate your efforts in working with the City on this matter and look forward to heating from you soon. Very truly yours, Hartman & ~ssociates, Inc. Robert J. Ori Manager of Rates and Finance R/O/ch C9/Chan¢lr.rjo Robert McClary, City Manager, City of Sebastian Michael L. Hudkins, Finance Director, City of Sebastian Thomas A. Cloud, Esquire, Gray, Harris & Robinson, P.A. Gerald C. Hartman, HAI RESOLUTION NO.: It-92-10 A RESOLUTION OF THE CITY OF SEBAST'r~ TNDIAN RI'VER COUNTY· FLORIDA~ ~OUNCING THaT THE C1'TY 'rNTENDS TO REIMBURSE CERTAIN EXPENDITURES WITH TB:E PROCEED~ OF TAX EXEMPT BONDS; ;]L~D PROVIDING AN EFFECTIVE DATE. NHEREA~, the City of Sebastian, a Florida municipal corporation (the "City"), is considering the acquisition of certain water and sewer facilities currently owned by General Development Utilities, Inc. ~ and, WHEREAS, the City desires to incur certain engineering and other costs in connection therewith, and eventually to reimburse itself from bond proceeds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, that: Seotion...~. STATEMENT OF ~NTENT. The City hereby states its intent to incur certain expenditures in connection with a possible acquisition of an existing water and sewer utility and to reimburse itself for such expenditure with the future issuance of tax-exempt bonds. Section....2. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. The foregoing Resolution was moved for adoption by Councilman . The motion was seconded by Councilman .......... , and, upon being put to a vote, the vote was as follows: Mayor Vice-Mayor Frank Oberbeck Councilman Peter R. Holyk Councilman Councilman George G. Reid The Mayor thereupon declared this Resolution duly passed and adopted this day of , 1992. CITY OF SEBASTIAN, FLORIDA By: ATTEST: , Mayor Kathryn M. O'Halloran, CMC/AAE City Clerk (Seal) Approved as to Form and Content: Charles Ian Nash, city Attorney 2 Projected Budget Utilities Director Personnel: Director's Salary Secretary's Salary FICA Retirement Health Insurance Worker's Compensation Total personnel costs General Services: Travel & Per Diem Supplies: Office Supplies Small office equipment Trade supplies Total supplies Educational costs: Books and Publications Dues and Subscriptions Meetings and seminars Total educational costs $43,290 $15,267 $4,480 $2,928 $4,335 $9,955 $1,200 $1,000 $1,000 $500 $500 $1,200 $80,254 $1,000 $3,200 $2,200 Total $86,654I Page 1 City of Sebastian POST OFFICE BOX 780127 r~ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 [] FAX (407) 589-5570 SUBJECT: Purchasing Procedures Approved for Submittal By: City Manager ) ) Dept. Origin Finance (MLH) ) ) Date Submitted: 03-03-92 ) ) For Agenda Of 04-01-92 ) (workshop) ) Exhibits: Extracts from S.O.P.'s, ) recommended changes to $.O.P. 's ) Exp~nditur~ Amount Appropriation Required: -0- Budgeted: Required: SUMMARY STATEMENT In 1984 personnel administration and job description practices and procedures were formally documented in the Standard Operating Procedures of the City of Sebastian. Although adopted in 1984, these practices evolved from as early as the 70's. The threshold level for purchases requiring purchase orders by Department Heads has been $100 for several years, perhaps as much as two decades. Additionally, the threshold for capitalization of a purchase as an asset was $100. At a consumer price index of 6% (the average rate of inflation for the last 20 years), the present value of a dollar will be less than half of what it was 12 years previously. The impact is that Department Heads have no authority to make even small supply-type expenditures approved in their budgets, if those items exceed $100, and this proves extremely frustrating and debilitating in their efforts to provide efficient service to the public and other departments. Raising the threshold level for purchase orders to $250 will adjust for inflation, the purchase threshold allowed department heads nearly two decades ago and assist them in efficient operations of their departments. Chapter 10-400 of the Rules of The Auditor General for the State of Florida indicates the threshold of capitalization of assets to be $500 for the State of Florida. For the above reasons concerning inflation, and the guidance offered by the Auditor General's STANDARD OPERATING PROCEDURES Recommended Changes Article F. - Purchasing Department heads are authorized to purchase budgeted materials and services up to $250.00. Purchase orders are utilized for all items exceeding $250.00 and all inventoriable items, regardless of cost. purch~tSe Or~ter Policy - All purchase orders are initiated by the Department Head in the form of a purchase requisition signed by the Department Head and forwarded to the Finance Department to verify budget authority, approval, and preparation of the Purchase Order. The Finance Director forwards the completed purchase order to the City Manager for final approval. Assistant Department Heads may perform the purchasing functions in the absence of the Department Heads. Article C. - Fixed Assets 2. Fixed assets are fixtures and other tangible personal property of a nonconsumable nature, the value of which is f~ve hundred ($500) dollars or more, and the normal expected life of which is one year or more. This may also include items of a unique nature. § 2-2 SEBASTIAN CODE the charter, this Code of Ordinances and by the Florida S~.atutes, as presently constituted or hereafter amended. (Code 1970, § 2-1; Ord. No. 0-80-12, § 1, 5-12-80) Sec. 2-3. City engineer. The office of city engineer shall be held by a person who is a registered engineer in the state. The city engineer shall be ap- pointed by the city manager. (Code 1970, § 2.2; Ord. No. 0-88-04, § 1, 2-10-88) Sec. 24. Personnel procedures. (a) Adopted by referenc& The Standard Operating Procedures [for Personnel Administration and Job Descriptions,] attached to Ordinance No. 0-84-16, are hereby adopt~l by reference and made a part of this Code of Ordinances. These rules supersede the rules enacted on December 10, 1979. Three (3) complete copies of these rules shall be kept by the city clerk for public inspection. (b) Amendments to be made by resolution. Any amendment, including additions, deletions and modifications, to be made to the Standard Operating Procedures For Personnel Aami-/stra- tion and Job Descriptions of the city shall be by the resolution of the city council. (Ord. No. 0-79-5(1), § 1, 12-10-79; Ord. No. 0-84- 16, § 1, 9-12.84; Ord. No. 0.89-22, § 1, 12.13-89) Editor's note--At ~he discretion of the editor, § 1, of OrcL No. 0-79-5(1), enacted Dec. 10, 1979, has been codified as § 2-4. Said provisions did not express|y amend the Code. Copies of the personnel procedures above-adopted are available for inspection in the oi~ce of the city clerk as are the following amendments to the personnel procedures: Ord. No. Date 79-5(2) 1-11.84 0.88.5 2-10-88 Subject Fair employment practices (ex'f, ended to handicappe~l) Transfers mayor's duties to city manager Cross reference--Employee benefits, § 2-23 et seq. Supp. No. 20 128