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Home My WebLink About08181993 City of Sebastian POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 [] FAX (407) 589-5570 AGENDA SEBASTIAN CITY COUNCIL SPECIAL MEETING WEDNF~DAY, AUGUST 18, 1993 - 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. PURPOSE: General Development Utilities, Inc. - Water and Sewer Rate Increase Request Hearing 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 93.183 4. PUBLIC HEARING - General Development Utilltles, Inc. - Water and Sewer Rate Increase Request (City Clerk/Acting City Manager Transmittal dated 8/12/93, Rachlln & Cohen Report) 5. 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.) GENERAL DEVELOPMENT UTILITIES, INC. WATER AND SEWER RATE INCREASE REQUEST PUBLIC HEARING SIGNUP SHEET AUGUST 18, 1993 SPECIAL CITY COUNCIL MEETING ADDEsS: : ADDRESS : SS : x~DRESS : NAME ESS NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : 3 NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : 5 NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : 6 NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : NAME : ADDRESS : City of Sebastian POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 [] FAX (407) 589-5570 MINUTES SEBASTIAN CITY COUNCIL SPECIAL MEETING WEDNESDAY, AUGUST 18, 1993 - 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. PURPOSE: Geaeral Develowt Utilities. Inc. - Water and Sewer Rate Increase Request Hearing . Mayor Powell called the Special Meeting to order at 7:00 p.m. 2. The Pledge of Allegiance was recited. 3. ROL~ CALL Present: Mayor Lonnie Powell Vice Mayor Frank Oberbeck Mrs. Carolyn Corum Mrs. Norma Damp Absent: Mr. Robert Freeland (excused) Also Present: City Clerk/Acting City Manager, Kathryn O'Halloran Finance Director, Marilyn Swichkow City Attorney, Charles Nash Utilities Director, Richard Votapka Deputy City Clerk, Sally Maio Special City Council Meeting GDU Rate Hearing August 18, 1993 Page Two 93.183 And: Lisa Layne, CPA, P.A. - Rachlin & Cohen Bill Suratt, Camp, Dresser & McKee Charles Fancher, President - General Development Utilities Richard Melson, Esquire - Hopping, Boyd, Green and Sams Buddy Betschart, General Development Utilities Mayor Powell announced that this meeting will be video broadcast on Saturday, August 21, 1993 at 8:00 a.m. PUBLIC HEARIN~ - General Development Utilities, Inc. - Water and Sewer Rate Increase Request (City Clerk/Actlng City Manager Transmittal dated 8/12/93, Rachlin & Cohen Report) Mayor Powell opened the public hearing at 7:02 p.m. The City Attorney advised the city Council as to proper procedures to follow and criteria to consider. He recommended that members of the public be heard first, then allow GDU to make a presentation, and then take staff input with all parties placed under oath. The following members of the public were sworn in by the City Attorney and addressed City Council: Edward J. Miquelon, 275 Zane Avenue; Lucille Held, 202 SW Columbus Avenue; Daniel A. McCusker, 222 Mensh Avenue; Grace Clark, 111 Indian Avenue; Thomas J. Black, 146 Capri Avenue; John Revello, 429 Georgian Boulevard; A1 Vilardi, 445 Georgia Boulevard; and Sal Neglia, 461 Georgia Boulevard. Attorney Richard Melson, Hopping, Boyd, Green and Sams, representing General Development Utilities, submitted the GDU rate case filing as Exhibit #1, said GDU is willing to accept the rates as recommended in the August 9, 1993 Rachlin & Cohen report, and requested that affidavits of Deborah D. Swain and John Guastella be entered in the record as Exhibit $2 and Exhibit $3. He asked that Charles Fancher be sworn in to address City Council and respond to public concerns. 2 Special city Council Meeting GDU Rate Hearing August 18, 1993 Page Three Charles Fancher, Jr., 2601 South Bayshore Drive, Miami, was sworn in, addressed concerns expressed by the public and said that GDU will accept the Rachlin & Cohen figures. TAPE I - SIDE II (7:50 p.m.) Mr. Oberbeck was excused from 7:50 p.m. to 7:52 p.m. Richard Melson requested that an August 13, 1993 letter from Charles Fancher, Jr. to the city of Sebastian relative to the THM matter be entered as Exhibit #4. The City Attorney requested that Lisa Layne, Rachlin & Cohen, address City Council. Lisa Layne, Rachlin & Cohen, 1320 South Dixie Highway, Coral Gables, Florida, was sworn in by the City Attorney and at his request, offered a brief background on her profession and education. She explained her engagement by the City of Sebastian and the process used in analyzing the rate increase request, detailed the adjustments made to GDU's rate case, and said GDU has agreed to the recommended rates. A lengthy City Council discussion followed. The City Attorney inquired whether Attorney Melson or any members of the public had any objection to City Council conferring with staff members. Attorney Melson stated that so long as it is just an interpretation of the report and does not go beyond the report in terms of an explanation, discussion with staff would be fine. He said if staff had any new ideas they be brought to the table. The City Attorney noted, for the record, no objections were heard from the public. TAPE II - SIDE I (8:37 p.m.) City Council discussion continued. Mayor Powell called recess at 8:43 p.m. and reconvened the meeting at 8:59 p.m. Ail members were present. Special City Council Meeting GDU Rate Hearing August 18, 1993 Page Four City Council discussion continued. The City Attorney requested that the Rachlin & Cohen report and a letter from Attorney Melson to Attorney Nash dated August 12, 1993 be entered into the record as Exhibits #5 and #6. Buddy Betschart, 2055 Skyline Drive, Vero Beach, Florida, upon being sworn in by the City Attorney, responded to City Council concerns about GDU's stance on mandatory hook-up, based upon a 1987 opinion from the previous City Attorney, Thomas Palmer. A lengthy discussion, primarily touching on the THM issue, mandatory connection requirements, utility system expansion, and debt service followed. city Attorney advised City Council that if the City Council denied this request it would go to the court system, and said before the City considers reducing or eliminating its franchise fees or utility taxes it needs to first look at any pledges made for some of the city's revenue bonds. TAPE II - SIDE II (9:42 p.m.) Discussion continued on reduction of rates by expansion of the system. Upon being sworn in by the City Attorney, Bill Suratt, Associate Engineer, Camp, Dresser & McKee, 660 Beachland Boulevard, Vero Beach, addressed City Council on facility capacity. Discussion of mandatory connection and expansion into Unit 17 continued. The City Attorney said the City Council has thirty days in which to make a decision and advised that the City Clerk contact Councilmember Freeland to review this meeting tape to enable him to participate in deliberation. Attorney Melson requested that a decision be made tonight unless the record is kept open and experts are brought back. 4 Special city Council Meeting GDU Rate Hearing August 18, 1993 Page Five The City Attorney said the public hearing can be closed and the decision made at another time, although he cautioned City Council against any discussion with anyone with the exception of report clarifications from staff. He said Council could not receive any additional information or evidence unless it it decided to keep the record open to receive written evidence. He said any action of city Council is subject to court review. He said the issue of mandatory hook-up and the opinion of the previous Attorney is not relevant to the rate increase case and should not be entered into the record. Mayor Powell closed the public hearing at 10:18 p.m. MOTION by Corum/ I make a motion that Council closes this public hearing for thirty days and then come back, deliberate and make a decision. The City Attorney advised that City Council deliberate prior to the thirty days so that he may draft the appropriate order and resolution authorizing the entry of the order. Mrs. Corum added "to set it for September 1, 1993". Ail City Council members concurred with the date. ROLL CALL: Mr. Oberbeck - aye Mrs. Corum - aye Mrs. Damp - aye Mr. Freeland - absent Mayor Powell - aye MOTION CARRIED 4-0 (Freeland - absent) Being no further business, Mayor Powell adjourned the meeting at 10:20 p.m. Special city Council Meeting GDU Rate Hearing August 18, 1993 Page Six Approved at the ~~~ ~ Kathryn Mi '0 ,~alloran, CMC\AAE City Clerk , 1993, City Council Meet ing ~ ~Onn~e R. P,o~ll~, ~Iayor 6 Special City Council Meeting September 15, 1993 Page Four 93.183 MOTION by Oberbeck/Corum I would move that we accept the resignation of Mr. Robb McClary as city Manager effective August 25th, and enter into the settlement agreement, authorize the Acting City Manager, Attorney and Finance to enter into the settlement agreement. The Acting City Manager noted that the agreement is as presented to city Council with paragraphs 11 and 12 stricken. ROLL CALL: Mrs. Damp - aye Mr. Freeland - aye Mayor Powell - aye Mr. Oberbeck - aye Mrs. Corum - aye MOTION CARRIED 5-0 The Finance Director requested that the proposed purchase of the Julian property be added to this agenda. MOTION by Oberbeck/Corum I would move that we add the item as presented by the city Finance Manager to the agenda as item 5 C. ROLL CALL: Mr. Freeland - aye Mayor Powell - aye Mr. Oberbeck - aye Mrs. Corum - aye Mrs. Damp - aye MOTION CARRIED 5-0 Ratify 8/18/93 Special Meeting Motion Re: GDU Rate Increas~ E~tension (City Cler~ Transmittal dated 9/9/93 w/. attachment) MOTION by Corum/Oberbeck I make a motion that council closes this public hearing for thirty days and then come back and deliberate and make a decision and then set it for September 1, 1993. 4 Special City Council Meeting September 15, 1993 Page Five 93.261 ROLL CALL: Mayor Powell - aye Mr. Oberbeck - aye Mrs. Corum - aye Mrs. Damp - aye Mr. Freeland - aye MOTION CARRIED 5-0 Discussion on methods to recruit management was scheduled for the October workshop. C. Julian Property The city Attorney reported on the directive from First Union Bank that it needs a definitive agreement with the city by September 28, 1993 or it will proceed with foreclosure and requested direction from City council. City Council discussion followed. MOTION by Oberbeck/Corum i would move that we authorize staff to continue negotiations with First Union Bank with regard to the Julian property. ROLL CALL: Mr. Oberbeck - aye Mrs. Corum - aye Mrs. Damp - aye Mr. Freeland - aye Mayor Powell - nay MOTION CARRIED 4-1 (Powell - nay) ® Mayor Powell adjourned the Special Meeting at 9:20 p.m. Approved at the Meeting. , 1993, city Council Lonnie R. Powell, Mayor Kathryn M. O'Halloran, CMC/AAE City Clerk GENERAL DEVELOPMENT UTILITIES, INC. RATE INCREASE REQUEST APPLICATION - LIST OF EXHIBITS Exhibits Submitted ~ the Record 8/18/93 EXHIBIT #1 - GDU, Inc. - Sebastian Highlands Division - City of Sebastian Rate Case - Test Year Ending 12/31/91 EXHIBIT #2 - Affidavit of Deborah D. Swain EXHIBIT #3 - Affidavit of John F. Guastella EXHIBIT #4 - 8/13/93 Letter from Charles Fancher to Kathryn O'Halloran re: THMs EXHIBIT ~5 - Rachlin & Cohen, Certified Public Accountants - Report dated 8/9/93 EXHIBIT #6 - 8/12/93 Letter from Attorney Robert Melson to Attorney Charles Nash re: Rate Increase Exhibits Submitted Into the Record 9/1~93 (see 9/1/93 minutes) EXHIBIT - Affidavit of Deborah D. Swain Ail exhibits are a part of the Genera/ Development Ut~litiesRate Increase Re~e$~ file located in the City Clerk's vault - Category WATER AND SEWER - Subcategory General Development Utilities City Council Workshop September 1, 1993 Page Five Richard Melson, Hopping, Boyd, Green and Sams, representing General Development Utilities, stated that GDU-disagrees with the City Attorney's recommendation to consider the GDU rate application incomplete, stated it is GDU's position that GDU owns the lift stations and not the city, questioned what impact the ownership of the lift stations would have on the rates application, and presented an affidavit from Debbie Swayne. The city Attorney advised that city Council determine that additional evidence can be submitted and then take the position of accepting evidence from anyone. TAPE I - SIDE ii (7:50 p.m.) Mr. Melson said the affidavit is an analysis of the difference that would occur if the lift stations were not included in the rate application. He asked that the City Council review this material and make a decision on rates by the September 17, 1993 deadline. A1 Vilardi, 445 Georgia Boulevard, Sebastian, objected to using a hearing officer, and suggested the rate deliberation be postponed for thirty days while acquisition negotiations are conducted. The city Attorney inquired whether GDU would concur with postponing rate deliberation for thirty days. Mr. Melson said it is not appropriate for GDU to concur with that recommendation at this time, however, it could be looked at subsequent to the 180 hearing, based on how the hearing goes. Charles Fancher, President, General Development Utilities, through Attorney Richard Melson, then concurred with the thirty day extension to October 1, 1993. It was the consensus of City Council not to take any further action on this item or item 10 A at this time. 9. CITY F, ANAGER I~ATTERS 93.054 The Director of Community Development/Acting city Manager reported on the mechanical engineers' reports relative to the police station air quality problem and recommended a $1900 hot gas by-pass valve system. 5