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HomeMy WebLinkAbout1990 04 23 City Commission Regular Minutes . . . 89-90-14 REGULAR MEETING CITY COMMISSION CITY OF WINTER SPRINGS APRIL 23, 1990 The Regular Meeting of the City Commission of the City of Winter Springs, Florida, was called to order by Mayor Leanne M. Grove at 7:30 p.m. Roll Call: Mayor Leanne M. Grove, present Deputy Mayor Cindy Kaehler, present City Manager Richard Rozansky, present City Attorney Tom Lang, present Commissioners: Arthur Hoffmann, present Philip A. Kulbes, present William A. Jacobs, present Paul P. Partyka, absent For the invocation Deputy Mayor Kaehler asked for a moment of silent prayer. The pledge of allegiance to the flag was led by Commissioner Philip A. Kulbes. Motion was made by Commissioner Kulbes to approve the minutes of April 9, 1990. Seconded by Commissioner Hoffmann. Discussion. Vote on the motion: Commissioner Kaehler, aye; Commissioner Hoffmann, aye; Commissioner Kulbes, aye; Commissioner Jacobs, aye; motion carried. Public Comment: Mr. Pat Smith, Chelsea Woods, Tuscawilla-Retention Pond Problems: Mr. Smith, Seneca Boulevard, spoke about his property erosion problem and distributed a handout to the Commission regarding this problem. This will be on the Agenda for the next meeting. Carole Gonzalez, Saranac Drive and Jeanette Korn, Saranac Drive, spoke about their problem in getting the Developer to plant trees in the rear of their property. This item will also be discussed at the next meeting. Mayor Grove called a recess at 8:10 p.m. and called the meeting back to order at 8:20 p.m. General Agenda Seminole Utilities Acquisition: Attorney Sundstrom explained that Terry Zaudtke, CPA, Stanley Cohen, Rachlin & Cohen, and John Jenkins of his firm were all here last week and gave a general status report and a concensus of the Commission was to proceed towards closing on the acquisition of the assets of Seminole Utility and the financing of that acquisition. Mr. Cohen explained he has given the Commission a breakdown of the monies that were spent. He said he is recommending a 30 year fixed rate bond with 5 year interest only, no amortization in the first 5 years. Mr. Gary Akers, Southeast Municipal Bonds, presented a 30 year proposal to the Commission. Mayor Grove called a recess at 9:15 p.m. so that Mr. Cohen could compare the two proposals, and called the meeting back to order at 9:30 p.m. . . . Regular Meeting, City Commission, April 23, 1990 Page 2 89-90-14 Mr. Cohen said the total debt service on the Southeastern proposal would be $32,264,000. Total debt service from D.L.J. is $31,846,000 which would indicate that D.L.J's proposal is a $418,000 savings over the term for the benefit of the City. Attorney Lang asked the "team" if they have reviewed the preliminary official statement that the Commission will be asked to approve this evening, and is it correct. Attorney Sundstrom spoke about the provision on mandatory connections and Mr. Cohen spoke about the security for the 1990 bonds. He said there has to be a delineation that the rates and charges do not include connection fees. Attorney Lang said any approval of the preliminary official statement will be subject to making those two changes. Attorney Lang asked what is happening with the futures, so that the Commission under- stands what they are approving and what the transaction is with regard to future payments. Mr. Cohen explained when the system achieves the threshhold level of approximately 5,025 equivalent residential connections in the water division and about 300 less in the sewer division, at that point in time, the projections indicate that the revenue in the system should be totally self-sustaining. The sellers will have met their commitment to the revenue stream and at that point, up to a maximum of 7272 units, the City will payout of the connection fees received for those additional units approximately 2,050 units, the sum of $2,000 per unit, and that money will be funded solely from connection fees and any earnings thereon. Attorney Lang asked if there is anything that can be deducted from those future payments. Mr. Cohen said in the event we need that additional digester at a cost of approximately $500,000, that money will come out of the future payments to the seller. Attorney Lang asked if there is a developer agreement with the seller at this point or any related entity to the seller? Mr. Cohen said yes and Attorney Sundstrom explained the developer agreement provides that the City will assure to the developer 1100 additional customer connections from October of last year at no cost, but that the developer will guarantee to the City that those 1100 connections will come on and produce revenue. He said to that extent the developers agreement and the futures agreement are absolutely interrelated. Additionally the developer has, a right to purchase another 400 units of capacity reserved pursuant to that agreement upon the payment of all of the customary rates, fees and charges. Attorney Lang summarized they have 1100 connections they are going to get at this point without further payment to the City, but in turn, we do not owe them anything in the way of those futures payment for those connections. Attorney Sundstrom said that is correct. Attorney Lang asked the futures payments that are going to have to be paid only go to connections that are made in the currently defined service area for what we are calling the east system. Attorney Sundstrom said that is correct. . . . Regular Meeting, City Commission, April 23, 1990 Page 3 89-90-14 Attorney Lang said after this transaction closes we will have absolute control of this Utility, is that correct. Attorney Sundstrom answered that is correct, subject of course to the customary regulations that come with the ownership of any utility. Attorney Lang said you have reviewed the rates that are being presented tonight by resolution and those are the rates that need to be in effect in order to meet the revenue projections that Mr. Cohen has brought to this Commission? Mr. Cohen answered yes, and we are satisfied that they will produce the requisite revenues. Attorney Lang asked if anyone knew of any known environmental hazards that we are inheriting by buying this utility that have not been disclosed to the City Commission? Attorney Sundstrom answered no, he has inquired as to the engineer and we are receiving certificates from the sellers as to the statement of known defects. Attorney Lang asked if there is anything else that needs to be done in order to give you a comfort level at this closing such that you can release your opinions to the City? Attorney Sundstrom explained there was nothing else at the Commission level. He said we will probably be back before the Commission one more time with a lot of clean up things and an informational session. Resolution No. 638, authorizing the issuance of not exceeding $12,300,000 Water & Sewer Revenue Bonds Series 1990: Attorney Lang read Resolution No. 638 by title only. Motion was made by Commissioner Hoffmann to approve Resolution No. 638. Seconded by Commissioner Kaehler. Discussion. Mayor Grove read the statement from Commissioner Partyka as follows: I have asked the Mayor to read this statement on the acquisition of Seminole Utility Company because I am in Cinncinati attending week long business meetings at corporate headquarters. Here is my statement: I have attended meetings and workshops and, finally, read all the documents presented at today's Commission Meeting. Based on the information presented and given to me, plus the recommendations given by our consultants; Rachlin & Cohen; Conklin, Porter & Holmes and Rose, Sundstrom and Bentley. . . "namely that the price that will be paid by the City is fair and the acquisition is in the best interest of the City and its citizens". I support theResolution that the City issue $12,300,000 Revenue Bonds to be applied to acquire the Seminole Utility Company. It would not benefit the City or its citizens to prolong or jeopardize the acquisition of this Company and risk a trial that will incur additional legal and other related costs. Paul P. partyka, City Commissioner. Vote on the motion: Commissioner Hoffmann, aye; Commissioner Kulbes, aye; Commissioner Jacobs, aye; Commissioner Kaehler, aye; motion carried. . Regular Meeting, City Commission, April 23, 1990 Page 4 89-90-14 Resolution No. 639, authorizing the negotiated sale of $12,300,000 of Winter Springs, Florida, Water & Sewer Revenue Bonds, Series 1990, awarding the sale thereof to Donaldson, Lufkin & Jenrette Securities Corporation: Attorney Lang read Resolution No. 639 by title only. Motion was made by Commissioner Kulbes to adopt Resolution No. 639. Seconded by Commissioner Kaehler. Discussion. Vote on the motion: Commissioner Kulbes, aye; Commissioner Jacobs, aye; Commissioner Kaehler, aye; Commissioner Hoffmann, aye; motion carried. Resolution No. 640, authorizing and approving the closing on the acquisition of the assets of Seminole Utility Company: Attorney Lang read Resolution No. 640 by title only. Motion was made by Commissioner Hoffmann to adopt Resolution No. 640. Seconded by Commissioner Kaehler. Discussion. Vote on the motion: Commissioner Jacobs, aye; Commissioner Kaehler, aye; Commissioner Hoffmann, aye; Commissioner Kulbes, aye; motion carried. Resolution No. 641, establishing water and sewer rates and fees for Winter Springs Water and Sewer East system: Attorney Lang read Resolution No. 641 by title only. Commissioner Hoffmann said for the record, this is one of the three step increases that goes from now until October 1991. . Motion was made by Commissioner Kaehler to adopt Resolution No. 641. Seconded by Commissioner Hoffmann. Discussion. Vote on the motion: Commissioner Kaehler, aye; Commissioner Hoffmann, aye; Commissioner Kulbes, aye; Commissioner Jacobs, aye; motion carried. Emergency Ordinance No. 484, an emergency ordinance of the City of Winter Springs, Florida, acknowledging the acquisition of the City's east system from Seminole Utility Company and establishing water and sewer user charges and other related charges and fees for said east system; providing severability, conflicts and an effective date: Motion was made by Commissioner Jacobs to add Emergency Ord. No. 484 to the Agenda. Seconded by Commissioner Kulbes. Discussion. Vote on the motion: Commissioner Hoffmann, aye; Commissioner Kulbes, aye; Commissioner Jacobs, aye; Commissioner Kaehler, aye; motion carried. Attorney Lang read Ord. No. 484 by title only. Motion was made by Commissioner Kaehler to adopt Emergency Ordinance No. 484. Seconded by Commissioner Kulbes. Discussion. Vote on the motion: Commissioner Kulbes, aye; Commissioner Jacobs, aye; Commissioner Kaehler, aye; Commissioner Hoffmann, aye; motion carried. Motion was made by Commissioner Jacobs to add Ordinance No. 485 to the Agenda for first reading. Seconded by Commissioner Kulbes. Discussion. Vote on the motion: Commissioner Jacobs, aye; Commissioner Kaehler, aye; Commissioner Hoffmann, aye; . Commissioner Kulbes, aye; motion carried. Regular Meeting, City Commission, April 23, 1990 Page 5 89-90-14 . Motion was made by Commissioner Jacobs to read Ord. No. 485 by title only on first reading. Seconded by Commissioner Kulbes. Discussion. Vote on the motion: Commissioner Jacobs, aye; Commissioner Kaehler, aye; Commissioner Hoffmann, aye; Commissioner Kulbes, aye; motion carried. Attorney Lang read Ordinance No. 485 by title only on first reading as follows: An Ordinance of the City of Winter Springs, Florida, acknowledging the acquisition of the City's east system from Seminole Utility Company and establishing water and sewer user charges and other related charges and fees for said east system; providing severability, conflicts and an effective date. Mayor Grove called a recess at 10:05 p.m. and called the meeting back to order at 10:25 p.m. Bentley Club (Formerly Bentley Green Phases II & III) - Modification of approved Final Engineering to reduce the density from 66 units to 41 units (project located on west side of Greenbriar Lane between Winter Springs Boulevard and Northern Way): Motion was made by Commissioner Jacobs for approval of Bentley Club modification of final engineering subject to the engineer's letter of April 6, 1990. Seconded by Commissioner Kulbes. Discussion. Vote on the motion: Commissioner Hoffmann, aye; Commissioner Kulbes, aye; Commissioner Jacobs, aye; Commissioner Kaehler, aye; motion carried. . Arbor Glenn (Parcel 90) - Approval of Plat and Covenants: Glen Eagle Units III & IV - Approval of Plat: Motion was made by Commissioner Kulbes for the approval of plat and covenants for Arbor Glenn and also that the plat of Glen Eagle be approved for recordation. Seconded by Commissioner Jacobs. Discussion. Vote on the motion: Commissioner Kulbes, aye; Commissioner Jacobs, aye; Commissioner Kaehler, aye; Commissioner Hoffmann, aye; motion carried. City Manager Richard Rozansky: Monthly reports have been distributed. Commission Seat IV - William A. Jacobs: Commissioner Jacobs spoke about Mr. Akers' proposal. Commission Seat I - Cindy Kaehler: Commissioner Kaehler asked the Attorney to have the impact fee ordinance for police and fire for the next meeting. She also spoke about a call she received about refunding for having your animals spayed or neutered. One of the local veterinarians is not paying his tag fees and as a result the County is not issuing this individual any tags. Attorney Parker is going to check with Public Safety Department of Seminole County. . Commission Seat II - Arthur Hoffmann: The Workshop Meeting that was scheduled for April 30th was cancelled by the Mayor. Commissioner Hoffmann reported he attended a Channel 24round-table discussion dealing with four different issues for the 1990's. It will be televised next Monday, April 30th, 8:00 p.m. He also spoke about the Seminole County Social Studies Fair he attended at Seminole Community College with Commissioner Kulbes. . Regular Meeting, City Commission, April 23, 1990 Page 6 89-90-14 Commissioner Hoffmann spoke about the districting ordinance the Attorney is working on. The Attorney will be checking with the Seminole County Supervisor of Elections and also the State regarding the census figures. Commission Seat III - Philip A. Kulbes: No report. Mayor's Office: No action was taken on Resolution No. 637. On the Bicycle Coordination Program Manager Rozansky suggested this be discussed at the budget sessions. Meeting was adjourned 10:50 p.m. Respectfully submitted, ~;;~ Mary T. Norton, City Clerk Approved: . ~. .