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HomeMy WebLinkAbout06072006 Special SPECIAL CITY COUNCIL MEETING AGENDA JUNE 7,2006 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. SPECIAL MEETING ITEMS: (City Manager Memo 7/1/06, CATF 5/31/06 Draft Minutes) A. Collier Creek Update B. Sidewalk Improvements C. Recommendation for Community Development Block Grant Project 5. ADJOURN HEARING ASSISTANCE HEADPHONES ARE AVAILABLE IN THE COUNCIL CHAMBERS FOR ALL GOVERNMENT MEETINGS. Regular City Council Meetings are Scheduled for Live Broadcast on Comcast Channel 25 ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANY MA ITER CONSIDERED A T THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MA Y NEED TO ENSURE THA T A VERBA TIM 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.) IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS IN ADVANCE OF THIS MEETING. TO: FROM: RE: DATE: Members of the Sebasti AI Minner, City Mana r COLLIER CREEK D Thursday, June 1, 2006 RELATED IMPACTS At the Special Meeting Scheduled for Wednesday, June 7, 2006, Mayor McCollum requested that staff report on funding possibilities for sidewalk construction. The main purpose of this request is to rapidly increase the amount of sidewalks being constructed in the community. In reporting on sidewalk financial ramifications, it is imperative to review and update the Council on another important project - The Collier Creek Canal. To date, this project has huge financial implications and cost estimates to complete the project are growing. Its financial ramifications on the Stormwater Fund are consequential and can very likely "spill-over" into other special revenues effecting funding for other projects. It is impossible to discuss other capital improvement projects, without first reviewing the history, status and current situation of the Collier Creek Canal Project. BACKGROUND - AS IT APPEARS Long before my appointment to the City Manager position, and before many of you were elected to Council, the Community made a goal to convert the community's swale and ditch system into curb and gutter. This is a great goal and has the potential to change the face of Sebastian, as we know it. This goal also has many unknown consequences and financial ramifications that have never been fully examined because of this project's magnitude. Nonetheless, the City set out to achieve this goal and understood that a first step in constructing curb and gutter was to find places to create stormwater retention. Enter the Collier Creek Canal Project. In early design schemes of the project, the City focused on dredging the canal. Quickly this discussion led to the realization that in dredging the canal, the walls would need to be addressed. In succession, the discussion turned to what type of wall replacement (Le. - sod, rip-rap, walls). Then in the midst of discussion the City Manager changed and the Council changed. By early summer 2005, much had changed while the Council was in the process of concluding that the Collier Creek Walls were the responsibility of the City to maintain. Then came the very hard decision to replace the existing walls with rip-rap for environmental, financial and other considerations. After this debate, the project went into design phase and room was made in the existing Series 2003 bond proceeds to allocate $3.5 million for construction. This allocation came at the cost of deleting or reducing other projects. NEW COST CONSIDERATIONS The above background is a very cursory outline of events that transpired from late 2002 till Fall 2005. Since Fall 2005, the Collier Creek Canal Project has been managed by staff and our hired engineering consultants CDM to essentially design and permit the project. In addition, analyses have transpired concerning sanitary sewer construction, curb and gutter, the swale question, and more recently a new five-year Capital Improvement Plan. This new CIP highlights project priorities such as a new Community Center ($3.5 Million), Municipal Garage ($1.5M), increased construction of Sidewalks ($1.0M), the potential renovation of Easy Street ($2.5M) and others. As these considerations transpired, concern about the potential of escalating costs associated with the Collier Creek Canal Project arose. This concern led to my directing City Engineer Dave Fisher, to "freshen-up" the projected cost estimate. In fulfilling this request, Mr. Fisher contacted a potential contractor with similar construction experience to provide the data. The resulting estimate revealed construction costs (replacing existing walls with rip-rap side slopes) to be approximately $2 million, with dredging costs to be between $2.4 - $4.3 million. In total, the project could range from $4.4 - $6.3 million placing the project $1.0 - $2.8 million over the allocated budget of $3.5 million. This is considerable and brought to your attention because when considering additional projects, the current estimate of the Collier Creek has the potential to affect projects outside the Stormwater Fund. THE CURB AND GUTTER QUESTION - WHY WE STARTED THE PROJECT Going forward with the Collier Creek Canal Project in a prudent financial fashion brings many questions. First and foremost is to consider the original reason for the project - Does dredging the canal in preparation for curb and gutter need to be completed at this time? Understanding more fully the financial consequences of this portion of the project, the Community must re-visit the curb and gutter question. On a basic level, the cost associated with this improvement could easily exceed $50 million. In making a capital investment of this magnitude, huge unforeseen issues must be examined to ensure the proper execution of such an undertaking. Some of these considerations would be (1) the effect of curb and gutter on the current septic tanks/drain field systems; (2) stormwater runoff treatment capacity, behind the Collier Creek Canal retention; (3) addressing the function/effect of the ditches; and (4) long range environmental implications for construction of city-wide sanitary sewer system. These bullet points frankly address the question - Can it be done? Before construction or even design takes place on a curb and gutter system, these preliminary concerns need to be addressed. Finding answers to these considerations cannot be done with existing staff. There are easily thousands of dollars in research that must take place to begin moving forward on the curb and gutter question. Therefore, should the City stay committed to the curb and gutter goal, we must reexamine our new CIP strategy. This commitment will cause the elimination or delay of the very projects we will address Wednesday night such as sidewalks, community center and the like. Further, I would remind you of the reports City Engineer Dave Fisher has provided. In those reports, we must garner what Sebastian is - A swale and ditch community. Changing that will take an enormous financial commitment that will include substantial tax and stormwater fee increases. In summation, if we are to stick with a strategy to achieve this assumed goal, our effort must be focused to moving Collier Creek Canal Project in the direction it currently heads and change our CIP to include the thousands of dollars necessary to begin preliminary engineering reports on those vital, unanswered curb and gutter questions. Hence the new question, "Why dredge the Collier Creek Canal now?" If this project's scope can be reduced to repairing the walls, dredging for construction only, and addressing associated environmental mitigation, the project can be kept in its $3.5 million allocation, minimizing its impact on other capital projects outside the stormwater fund. COLLIER CREEK OPTIONS The Collier Creek Canal project is now potentially in a state of transition. It has been designed as a dredged retention canal with rip-rap side slopes. It has received an initial reviewing from staff level engineers at the St. Johns River Water Management District (SJRWMD). Should the scope change to keep the project in current allocations, SJRWMD will playa major role in that decision. The project options at this time are: 1. Continue the Course - This option moves forward as planned. Remember the financial implications. To absorb overruns (1) other capital projects outside the stormwater fund must be delayed/canceled; and/or, (2) additional debt must be issued causing the need for a stormwater fee increase to cover the cost of the additional debt payments. Briefly, if $2 million additional dollars were needed, the debt payment would increase by approximately $271,000 annually (10 years at 6.5%) requiring an increase in the stormwater fee by approximately $1.50 per month. The current rate is $4.00 per month. Another avenue to increase the allocation for this option is to cancel the Twin Ditch project. This is not recommended (see Twin Ditch update below). 2. Reduce Dredging and Address wall failure with mixed use of current walls and Rip/Rap - After an initial review meeting with SJRWMD staff on Wednesday, May 31, 2006, it was determined that as designed, the project does not meet the requirements for wading bird habitat. To address this issue, which will reduce mitigation costs, a design change is being considered which will leave in place some existing walls, add rip-rap in major sections of the canal, dredge in specific areas, and provide areas for wading bird habitat for mitigation credit. Costs on this proposal are still unknown. However, this option should be less than "Continuing the Course". 3. "Maintenance Project" - Under SJRWMD regulations, maintenance projects are considered exempt from SJRWMD permitting. Therefore, should the entire scope be changed to "maintenance" the project could focus on repairing and replacing walls and dredge very minimally, as associated with construction. Potentially, this could reduce the total project cost to the allocated figure of $3.5 million. However, SJRWMD will play an instrumental role in this option and their advice and input must be addressed. There is also the potential that SJRWM will not consider any action taken, as maintenance and any work wouid require their approval prior to dredging. If this option's "win" scenarios occur, the need for a modification to series 2003 bond covenants may need to be addressed (although this should not be a major stumbling block). Any of the above options will need SJRWMD approval. Further before changing the parameters of the project can even be considered, as mentioned in Options #2 and #3, SJRWMD must address our "no dredging" question. Until that answer is received my recommendation is other capital projects, even ones outside the stormwater fund, must be delayed because of Collier Creek cost implications. Immediately, staff will be working with SJRWMD to answer this important question so we can advise Council accordingly. It is my goal to have this question addressed by consultants and SJRMWD by early to late July. DON'T FORGET - TWIN DITCHES As part of the original stormwater master plan, Twin Ditches is also a consideration. That project is scheduled to remove the "center ridge", easelrepair the severity of the side slopes, and construct a new headwall. Estimated cost and allocated funds in the Series 2003 issue for this project are on target with the adjusted budget at approximately $1.1 million. This project is now designed and permitted and I have authorized the project to be let for bid. Of course, this project will return to your consideration for award of the construction contract. Should bids return unfavorably, action can be taken to avoid budgetary short falls. Nonetheless, at this stage it is important to seek marketplace costs and to move forward on an improvement that has been promised for a long time. However, while not recommended, this money is available as a funding source for potential Collier Creek Canal overruns. THE "SPILL-OVER EFFECT" With the aforementioned implications looming, other capital improvement financial considerations should be addressed. Therefore, provided are cost estimates for the (1) Sidewalk; (2) Municipal Garage; (3) Community Center; and, (4) Easy Street Renovation projects; which was the purpose of the Wednesday, June 7, 2006 Special Meeting. Remember, however, that the funding sources mentioned for the following projects may be changed, reduced, amended or unavailable should the Collier Creek Project overrun its Stormwater Fund Allocation of $3.5 million. Moreover, the specific projects may also need to be re-ranked, canceled, delayed or changed based on effects from Collier Creek should it overrun its fund allocation. With that being placed in the record, below is an initial financial plan for immediate accomplishment of the following tasks. 1. Sidewalk Project for FY 06-07 - $1,000,000 can be made available for the construction of sidewalks in Fiscal Year 2006-07 and the design phase for the project could start immediately. Conceptual estimated costs are $30.00 per L.F. providing a source to complete approximately 33,333 L.F. in areas to be determined upon commencement of design phase. The recommended funding source for this project is: FUNDING SOURCE Local Option Gas Tax - FY 04 Allocation Local Option Gas Tax - FY 05-06 Revenue DST Pro'ect FY 06 Fund Balance TOTAL AVAILABLE FUNDS AMOUNT $130,000 $150,000 $720,000 $1,000,000 2. Municipal Garage for FY 06-07 and into FY 07-08 - Should the Council wish to pursue the relocation of the garage from the 512 Triangle to the Airport, a rough construction estimate is $1,500,000. The funding source would be projected DST revenue to come next fiscal year. Considering our current DST obligation and conservative projections indicate that each year the City has $1.3 million in unallocated DST revenue. 3. Community Center For FY 06-07 - Should a 15,000 square foot, hurricane hardened, multipurpose community center be constructed, commercial cost estimates are approximately $225 per S.F., bringing a total cost estimate to $3.375 million (for budgeting purpose this figure has been rounded up to $3.5M). AMOUNT $1,000,000 $2,500,000 $3,500,000 Other mixtures of cash and debt financing can be created to make purchasing alternatives fit into cash flow considerations. While DST would be a primary source for large capital improvement projects, below is a "snap shot" of the financial effects of these projects on DST revenue projects: OPTION #1- CASH AND SOME FINANCING DST OBLIGATIONS AMOUNT City Hall Debt Payment (Retires FY 18) Equipment Lease (Retires FY 08) Emergency Equipment Purchases Community Center Debt Payment TOTAL ENCUMBRANCE FLAT LINE DST REVENUE PROJECTION DST REVENUE SURPLUS $1,100,000 155,000 400,000 275,000 $1,930,000 $2,500,000 $570,000 I OPTION #2 - DEBT FINANCING - LEAVING RESERVE UNSPENT DST OBLIGATIONS AMOUNT City Hall Debt Payment (Retires FY 18) Equipment Lease (Retires FY 08) Emergency Equipment Purchases Finance Total Communitv Center and Garaae ($5M) TOTAL ENCUMBRANCE FLAT LINE DST REVENUE PROJECTION DST REVENUE SURPLUS "Note debt estimates are based on 10 year financing at 6.5% interest. $1,100,000 155,000 400,000 660,000 $2,315,000 $2,500,000 $185,000 I The charts above show conservative revenue and expense estimates of available DST revenue without catastrophically encumbering DST cash flows; but it is tight. What the above plan does show are the unspent DST revenue (except for required reserves of approximately $250,000). Currently there is $1,000,000 in available DST revenue and our estimate is that this figure will climb to $1,720,000 by September 30,2006. Hence the options above show that $720,000 of this revenue can be earmarked for sidewalks and $1,000,000 plus additional FY 07 monies would be used for the Garage. 4. Easy Street - The Easy Street Project has budgetary issues already, especially considering the state of other stormwater funds. Should the other primary projects of Collier Creek and Twin Ditches move forward and grant funding not be received, Easy Street will need to rely on (1) other non-stormwater revenues; (2) scaling back/cancellation of the project; and, (3) stormwater utility fee increases in the $1 - $2 range per month. FUNDING SOURCE AMOUNT CDBG Block Grant Stormwater Reserve (Total Use) TOTAL AVAILABLE FUNDS TOTAL PROJECT ESTIMATE PROJECT SHORTFALL $700,000 1,000,000 $1,700,000 $2,500,000 ($800,000) l IMMEDATE RECOMMENDATION There is much to consider with the capital projects ahead. This memo is written to provide an overall financial and operational approach to the goals that the Council has enumerated. While these goals are attainable, caution is the conservative recommended approach. Other considerations may be made by priority ranking the projects and spreading out the expenses over the next several years. Remember too unforeseen expenses, hurricane related disaster reserve requirements, other emergency expenditures, and the historical City Hall renovation (soon to be underway). The immediate recommendation is that Council should move slowly while staff negotiates with SJRWMD on the dredging question and design modifications to the Collier Creek Canal project. It is vital that this project stay within its allocation of $3.5 million to minimize it effects outside the stormwater fund. This delay should only be temporary (in the 4-6 week range), while more information from SJRWMD and design scenarios can be contemplated. Subsequently, you will be kept informed of developments and a good, sound financial plan can be formulated to move forward with these important capital improvement projects. HOME OF PELICAN ISLAND D~4J:,. CITIZENS ADVISORY TASK FORCE (CATF) MINUTES WEDNESDAY, MAY 31, 2006 - 6:00 pm CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FL 32958 1. Mr. White called the meeting to order at 6:00 p.m. 2. The Pledge of Allegiance was recited. 3. Roll Call Members Present: Brad White Linda Desanctis Adrina Davis Bruce Zingman Members Absent: Cory Richter (unexcused) Staff Present: City Manager, AI Minner City Clerk, Sally Maio 4. Appoint Chairman and Vice Chairman Mr. Zingman nominated Ms. DeSanctis and being no other nominations, Ms. DeSanctis was appointed Chair. Ms. DeSanctis nominated Mr. Davis but he declined the nomination. Mr. Davis nominated Mr. White and, upon a vote, Mr. White was appointed Vice- Chair. 5. Approval of 5/24/06 Minutes On MOTION by Mr. White and SECOND by Ms. DeSanctis, the May 24, 2006 minutes were approved on a roll call of 4-0. CA TF Meeting Minutes May 31,2006 Page Two 6. Discussion of the Potential Proiects The City Manager apologized for not being able to attend the last meeting due to collective bargaining scheduling conflicts, and attempted to alleviate any confusion about the committee's role and the CDBG process. Mr. Minner explained: o Community Development Block Grants have many applications and the City is seeking a grant related to financial redevelopment issues o Guidelines that have to be followed to benefit low to moderate income areas o Specific public input procedures that must be followed by the CA TF (Citizen Advisory Task Force) and City Council o The role of the CA TF to review potential projects, receive input and make a recommendation to City Council on the most appropriate project o 2nd public hearing before City Council scheduled for June 28 o Role of Jordan and Associates offering gratis consulting services to begin the CDBG process in hopes of being awarded the RFP for consulting services if the City is approved for the grant Mr. Minner said though staff recommends the Easy Street project, he provided a list of other projects staff feels are potentially eligible for consideration by the Task Force for grant funding (see list attached), and reviewed the list. He said the purpose of the funding would be to improve the area and not to denigrate an area by labeling it blighted. He said one of the criteria for a CDBG is improvement of infrastructure and that is the goal of this funding recommendation. He said staff has spent most of its time on Easy Street, a road in pretty bad shape and which serves many people in the community, however, if the Task Force chooses another project, staff will switch gears. Don Pescher, 261 Easy Street, Sebastian for four years, and Community Coach driver who used Easy Street for the past nine years, cited the poor condition of the narrow road and drainage problems, and encouraged the use of Miami curbing particularly at the intersections and into the corners of adjacent streets which flood. The City Manager said staff will look into reorganizing how the CA TF functions and perhaps Council can review potential projects earlier in the year, and maybe CA TF can have two or three meetings per year to review and make recommendations to Council. Mr. Davis said need for improvements to Easy Street comes up all the time and suggested the committee recommend the project. 2 CA TF Meeting Minutes May 31, 2006 Page Three 7. Recommendation Discussion took place regarding attempts to complete the LMI survey by getting in touch with the last nine of the twelve residents on Easy Street whom staff and Jordan and Associates had been unable to contact (see list attached). Mr. Minner advised he had been advised that if the residences are deemed to be vacant they may not have to be counted, however, there is potential that we may not meet the 51 %. He said if CA TF chooses Easy Street, there is an initial estimate of $2.5 M for Easy Street engineering and construction, including sidewalks, miami curb and gutter, revitalizing the roadbed, rebuilding the roadbed and surfacing. He said $1 M has been identified as available to do this project and with the grant would bring it up to $1. 7M, which would still leave us with a slight shortfall. Mr. Davis recommended going with the Easy Street improvement project. Mr. Zingman said Easy Street is so narrow that two SUVs cannot pass one another at the intersection of Main Street, and said this grant would be a great way to go. It was noted that the LMI is based on residency not ownership. Mr. White said it would have been nice to have more information to review before, but Easy Street improvement is something needed and something we should do. On MOTION by Mr. Davis, and SECOND by Mr. Zingman, the committee agreed to recommend Easy Street on a roll call vote of 4-0. 8. Being no further business, Chairperson DeSanctis adjourned the Meeting at 6:40 p.m. Linda DeSanctis, Chairperson Prepared by: Sally A. Maio, MMC, City Clerk 3 j 2 0.. N \'! <0 o o N CIl ..!:It. 0>0 co .- (\") :: Q) >- Q) ~.,\g 03:2 c'..cU) 2 >,.!Q ~ (9 co LL 0> "O"Oc ~~'>'> CIl::lCllCll U)f-Oa.. Q) ~ N E: ~ .... (!) .... u E.. Q) ... ...... oc::....c '- C1l 0 ::l LLCI)I-CI) (!) ~ ~ 0.. C1l... ~C1l... ..... C1l C1l 0'; e ....CI).... Q)UlCl)'- EUlC1l~ -O.lc:Ul 113 '- 113 0 c..U..JLL en ~ ..J ~ W Cl en <( w 0:: <( Z Z <( ~ ::!) J: () en "0 o t ~ ~UC1l,-g C::C..c.2Ul 1130=0= :2:U(!)C(!) 'C1l > 'i: C '- lI:l Cl c:: w :t: Q. Ul 'i: '- lI:l J: - o :t: o Ul .... C1l C1l c:: C1l lI:l '- ..J Ci5 lI:l.... I >-u Ul ~ ..c 'i: g..!2> :a ..JJ:J: C1l E o (,) .E ~ "C "C ~ o .. '- C1l ~ o ..J EASY STREET CDBG SURVEY STATUS AS OF MAY 31, 2006 Street Address 410 Easy Street 419 Easy Street 431 Easy Street Street Address 109 Easy Street 118 Easy Street 173 Easy Street 238 Easy Street 332 Easy Street 355 Easy Street 385 Easy Str~et 407 Easy Street 495 Easy Street Name No name Chris Golden Rentz O'Donald Larry Waldis James Hockenbury Frank Jankowski No name Rudy Commorata Survey Completed Yes Yes Yes Phone Number No phone number 772-388-8730 772-956-8877 - disconnected 772:..589-3556 - disconnected 772-633-2254 - disconnected No phone number 772-589-7584 No phone number 772-388-5007 Survey Completed No No No No No No No No . No