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02-09-1982 Supporting Documents® CITY 0P C1,KRAfONT MINUTES rchruary 9, 1,982 A Regular Meeting of the City Council of Lite City of Clermont was held on February 9, 1982 in Lite Council. Chambcrn. The mceting was called to order by Mayor Hoskinson, with Lite following Councilmen in attendance: Michael Conley, Robert Pool, Dennis 'rhOman, and Hal Turville, Other City Officials present were City Manager Forbes and City Clerk Roznr. The Invocation was offered by CouncLl.mnn 'rhoman, followed by repeating of: the Pledge of Allegiance by all. present, MINUTES A motion was made by Councilman Pool, seconded by Councilman Conley and unanimously carried that the Minutes of the January 26, 1982 meeting be approved as presented. CITY MANAGER'S REPORT PENSION PLAN Officials of the Set Sank will be meeting in the City Manager's office at 3:30 p.m. on Wednesday to review the City's Pension Plan. All Councilmen are invited to attend. SENIOR CITIZENS' COMMITTEE City Manager Forbes reported that the Senior Citizens' Committee will be distributing questionnaires throughout the City for input on senior citizen needs and requests. WORKSHOP MEETING City Manager Forbes stated that there is a possibility that the Landspreading Project will be the topic of discussion rather than the. Capital improvements Plan at the workshop to be held February 18, at 6:30 p.m. Parks and Recreation short and long-range plans will be discussed at the Capital Improvements Workshop. MAYOR'S REPORT KEEP CLERMONT GLITTER CLEAN MONTHS PROCLAMATION Mayor Hoskinson read a proclamation concerning litter control and beauti- fication of the City, and proclaimed the months of March and April 1982, "Keep Clermont Glitter Clean Months." CLERMONT MASONS LODGE 226 FLAG PRESENTATION Representatives of the Clermont Masons Lodge appeared before Council to present to the City a United States flag that was flown over the nation's Capitol. These men made the official presentation to the Mayor. DRIVEWAY REQUEST ON CITY RIGHT-OF-WAY: FIRST FEDERAL SAVINGS & LOAN John Tubb and Brandon Cory, representatives of the bank, and Nick Jones, archictect were present requesting that the First Federal Savings and Loan be allowed to construct a driveway on what is presently the Disston Avenue right-of-way. Mr. Jones explained that this drive would provide access to customers onto Almond Street. After extensive discussion regard- ing the closing of Disston Avenue from Highway 50 to Almond Street or allow the bank to pave a driveway on the Disston right-of-way, a motion was made by Councilman Thomas that an ordinance be prepared for the closing of Disston Avenue, allowing for City utility easements. The motion died for lack of a second. i S ms� CITY OF CLRRMONT MINUTES Febranry 9, :1,982 Pngo 2 DRIVEWAY REIgUEST CON'L'D. 82-20 A MOTION WAS 'rDEN MAIZE BY COUNCILMAN 11001, AND SECONDED BY COUNCILMAN TURVI.LLE, TIIA'I' A WRITTEN AGREEMENT BE I'REPARI-D P1IOV[DTNC 'flin 11111E FT. wr FFDFRAL SAVINGS AND LOAN ASSOCTATION BE ALLOWED '110 PAVE A PUBT,LI: DRIVEWAY ON THE DT.SSTON AVENUE R[CHT-OF-WAY, TO MAINTAIN THE DRIVEWAY, AND PROVIDING FOR C[TY U'I"ILI'1'Y EASEMENTS. 'fhe motion passed on n 3-2 Vote all follows: Coanell:nati Turville, aya; COUlte111nna 'Thomas, tiny; Councilman Conley, aye; Mayor 11oslcinson, tiny; and Counei'.Lmnn Pool, aye. SOU'fll LAKE ART LEAGUE Mr. Paul Hnlstead and Mrs. Ruby 11anlcs Abel appeared before Council requesting financial assistance of the C1Ly in order to further promote 82-21 the teaching of art design. After extensive discussion, A MOTION WAS MADE BY COUNCILMAN CONLEY SECONDED BY COUNCILMAN THOMAS AND UNANIMOUSLY CARRTCD T11A'L' THE CITY DONATE TO 'rnE SOUTH TAKE ART 1,13AGUE, $300 To 13I3 USED SPECIFICALLY FOR 'fill, INSTRUCTION OF NEW ARTTST'S. FIRE STATION DOOR City Manager Forbes explained that Public Works Director Smythe Iles contacted several companies for quotes and recommendations on the Fire Door at the Public Safety Building. Of the prices he was quoted, the low was $1900 for replacing the damaged sections or replacing the door with a steel door for a price of $2900. A lower quote was obtained by mail to the City Manager's office and recommended for negotiation. After dis- 82-22 cussion, A MOTION WAS MADE BY COUNCILMAN CONLEY, SECONDED BY COUNCILMAN POOL AND UNANIMOUSLY CARRIED THAT THE CITY MANAGER BE AUTHORIZED TO NEGOTIATE A PRICE FOR THE REPLACEMENT OF THE DOOR WITH OVERHEAD DOOR COMPANY. ORDINANCE NO. 223-C City Manager Forbes stated that since the ordinance was drafted, the Police Chief has recommended that other amendments be made within the same chapter and suggested that the ordinance be tabled until those amendments could be 82-23 made. A MOTION WAS MADE BY COUNCILMAN THOMAS, SECONDED BY COUNCILMAN CONLEY BID AWARD: RE -ROOFING JAYCEE BEACH 11OUSE AND HIGHLANDER HUT City Manager Forbes stated that performance references have been checked, and bids can now be awarded. A MOTION WAS MADE BY COUNCILMAN CONLEY SECONDED BY COUNCILMAN THOMAS AND UNANIMOUSLY CARRIED THAT THE LOW BIDDERS BE AWARDED AS FOLLOWS: Smith Roofing Highlander Hut $2850 Queen Roofing Jaycee Beach house $3200 COMMITTEE FORMATION Mr. Phil Searles commended the Council for the formation of a Senior Citizens' Committee and suggested that a Youth Oriented Committee be formed. ames M. Boslcinson, Mayor Mena to: City Council From: City Manager Subject: Abatement of Nuisances Date: January 20, 1982 Enclosed is Ordinance No. 220-C which repeals Chapter 11, Section 11-11 (attached) from our Municipal Code. Section 11-11 was adopted in 1928 and requires nuisance complaints to be presented to the Municipal Court. Since cities in Florida no longer have Municipal Courts, this section is no longer enforceable, and the City Attorney has recommended that it be repealed. Violations such as nuisances can now be brought before the City Code Enforcement Hoard for review and there is no longer any need for an Abatement of Nuisances Section in our Code. Respectfully, CITY OF =-RMDNT George D. Forbes City Manager Attachmr_nt GDF;jb r t t � � t 1 r �} Mumo for City Council From: city Manager Subject: Weekly MOnK) Date: February 18, 19B2 CYSTIC FIBROSIS BIKL•'-A1HON. Attached is a letter from 70 m uml hike-a-thon for Cystic Fibrosis Cunninyharn regarding the aaround Lake Wl.nona. This event it, scheduled for Saturday, March 14th, 1982 from 1. to 4:00 p.m. If there is no Council objection, our Public Works Director will insure that the streets are properly barricaded. We have had no problems with this event in the past. LEGISLATIVE BULIETIN. The Legislative Bulletin from the League of Cities is attached for your review. This bulletin discusses the bills now before the Florida state Legislature and gives special emphasis on the Sales Tax proposal. ASBESTOS - CEMENT WATER PIPE. Enclosed is a letter and article submitted by Donald Diddams concerning the use of asbestos - cement pipe (A.C. pipe). .. ._.. .r) The City is presently installing this type of pipe for our water system improvements. The City Engineer thoroughly researched the safety of this pipe before we decided to use it in our City. In response to Mr. Diddam's letter; we have conducted an exhaustive investigation of research reports on this matter and received letters from the Federal Environmental Protection Agency, State DER, and numerous State regulatory agencies that all repeat the same advice as follows: A. Asbestos is one element present in various amounts in all natural water systems. B. Numerous research studies have shown that there is NO LINK between the use of A.C. pipe and public health problems. C. Research report_; have also shown that asbestos in drinking water is not a cancer hazard. Breathing asbestos is a hazard; but drinking it has no adverse effects. D. All water pipes corrode with age, but one of the strongest reasons for using A.C. pipe is that it is a highly corrosion resistant pipe. A letter from the State DER states that: ..."The general order of increasing health risk for nonagressive water would be asbestos cement less than cement- lined, less than polyvinyl chloride, vinyl coated, epoxy coated, other resin base coated, with coal tar coated the greatest..." Continued on Page -2- Page -2- Weokly Mcrae February 10, 19132 E. Virtually all States recommend the true, of A.C. pipe as long as the water supply in not aggressive (corrosive) to the point - of nhorLening 11.11)v life. The City of Clermont does not have aggressive water. Enclosed is a paper entitled "A/C Pips! - Question:; and Answers" that further explains this matter and is very interesting. PUBLIC WORKS. This week the Public Works Departmont has been street patching and getting the ball fields ready for league play. They have also been helping the Lake Correctional Institute (LCI) by hauling plywood from Orlando to LCI for Superintendent Staggers. UTILITIES. A long time employee of. the Utility Department, Leo Creech, will be retiring from the City on March 31st, 1982 for health reasons. Leo has been our Water Department Supervisor for many years and we will miss him. This week the Water Department has been flushing mains and locating lines for our pipe contractor. ECONOMIC COMMENTS. The "Economic Comments" Newsletter from the Sun Bank is attached. The newsletter states that the most encouraging factor in the current economic outlook is the slowing of_the ..rate of inflation. Respectfully, CITY OF CLERMON'T i George D. Forbes City Manager Attachments: GDF/jmb RECEIVEPFE9,;1 7:;1982 Cystic Fibrosis Foundation February 1.0, 1982 City of Clermont 1 Westgate Plaza Clermont, FL 32711 j Attn: George Forbes Dear Mr. Forbes, We have scheduled our 1982 Cystic Fibrosis Bike-A-Thon for Sunday --- March 14th, from 1-4p.m. Our workers have chosen the same path within . I� the city and enclosed a copy that is attached that we used last year. All intersections will be manned by the Cystic Fibrosis workers, all riders or their parents where under age, will sign release of liability and the bright orange cones will be placed at each intersection. r„ We will appreciate you placing this before the Clermont City Council as soon as possible so we can begin to advertise the route. L? Thank you for your cooperation. Sincerely, I'! p o A. L'unningham South Lake Chairman JAC/lw la of � WIsI IICAL'11 .WNOIO ^ALASIIOLL" F ! r O » AUN COLA AVL Jn ,� MINNLOLA AVLNU[ e, ^ a STNCCT r 10 �iIq0 III AT 'day„` DC fOTo st 10 0, N Al 71 5 an �`• !• • G1' , SR00ME ST O l d e I S IT LDI� ` �I twp1ALA LANL man 75 JD a so a I i „f' kw�T ` ,t11rI e}PP. 16 �.• 0T r `a �k'4 I ' r. �fr i"(� �} �.� � '+1 6TNUT �• Ci11[6'T a I tre.5f rs ry �, eM[neivr ti. ti I e"� to t� 40 urlt T {1 Y a 1, t I LINOfN CST / f[yyy)+4Z�r Orr 1 Lswaeo�r ST wAONOLIP f a IPfn'+ ctN FFF `-�, nkr �n wAYNOLIA: sT 901110 Ji cn.nnw a, a n.o n,n ( Lwn el 'J m.m .nyn... uunnrw« ' u c.,n. Dr aH xru T wm..^^si ion. u.e — asdm ni ioJ.wo..d� ;; xr ou. o-o .nn si ,nr wura se d«ien w« I.K. a9. ,.K — �. vp o '. si�� -J �• e..cm a }J d.•.lon ar r J_.uJ «o D� m you - �_L C L ERM 9bun A« lL 1r•L q,L Dn+Ar. Dr ion- ONT 0/TY C/AI/j 6..m.n er xJ. uJ L.u« drw .,S d,d�.9� ron, u•u, n.r Eui sr au .r eau muaa:n Dr ies e.0 ugnum A. �.. Iwo Grdl^ d FL E«r W. anm Dr r1M ro ' 1 n .J Grrv3 Si In w Ed1^°°° L.Mi et `.� [m.r.id L... ai i�"L wn D , Mu•ninY Di1 ' n. Gn4 >t ' xJ n G }L an.vv 9� �II Nn. Yi � MO Cn«ur St a00 .00 L 10, I600 1500 IA 1600 i200 ��00 ro0u 900 eoo f00 boo G H A 6 0 E F F OFFICIAL PUBLICATION OF THE FLORIDA LEAGUE OF CITIES A`Q'A GRAM 0 February 12, 1982 Vol. IX, No. 7 P,n. no. 1151, T.nbhnlul, I'lmmha .12302.17a7 WAN NIW It SA It'' „f tar Monde "f r:iort, hie. t Y �l d7 l �"ri'Fzstal'r RECEIVEDM�1 5 19B2 udbir. REPRGSr:NTATIVEScanbr rent d a1 till, C,ipliol Message Center during the Leµldative Session, Make your call penondo•person and your call will be n'nunrdasfunnas possible. rEI.r,PIIONE (91b1)222.2438 Clureul 'Lulus of any bill can be obtained by dialing hdbGee: I•11nn.3a2.1827 Ilelwcr1 8;110 a.m. and 5;00 p.m, or at the League office tnibbee: 1 80011.12.811'2 Ihwveen 90),l.nl. and 5:00 pan, SALES TAX — A series of develupnlents during the past week may have a significant effect on [lie '-ties lax Issue — however, at this writing, it appears the position of the Senate, House and Governor remain basically unchanged. First, the Reagan budget announcement created somewhat of .1 i0r as the inglact of federal "swaps" and "trade-offs" were analyzed, Further, the Governor appeared to be Lonsiderlmg a lull one -cent following in interview ill) Tampa at ;tit annual Governor's Day luncheon. lie indicated he may consider a 51h cent if the Slate Revenue CsIllmuing Conference came up will) a shortfall of growth revenues for the stets budget. On February 11, the Revenue Estimating Group announced that state revenues will be reduced an additional 175 million ill 1982 and 250 million in 1983. Following the conference report, Governor Graham proposed four areas of taxation for further sturdy: 1) An increase in the state corporate profits tax; 2) Tax increases tin alcohol and tobacco; 3) Eliminate some sales tax exemptions; 4) A yrcent increase in sties 1•lx for the state to coincide with his previous proposal for a %•cent local option tax. Apparently, because of the state shortfall, there is increasing Pressure to look to an Increase in the state sales tax. These new events will undoubtedly "muddy the waters" as it relates to the League position for a one -cent state-wide increase with substantial property lax relief. We have been in regular contact with the introducers of our bill (Senator Stuart and Representative Dyer) to determine the impact tit these events till our proposal. There ,Ipi-lis to be some sofivoi lg of the .III Yalorcol takes, however, this position has not been measured at this little. The House and Senate have scheduled sales tax issues for further disucssion this week, but the committee procedure that will be followed is not clear. We anticipate the House Committee may propose a "committee bill" incorporating the elements of the various bills filed by individual Legislators but we have not seen anything of this nature as yet. The Senate apparently will schedule three bills: the '/,-cent Local Option; the One -Cent State-wide Local Government Property Tax Relief Bill; and a One -Cent State-wide School Property Tax Reduction Bill. Again, however, we most anticipate that the stale revenue shortfall will undoubtedly he a highly visible issue in these discussions. The State Association of County Commissioners continue to support a %rcent local option. We have been In constant contact with the Governor's Office, and although he now recognizes a greater state need, he continues to support the Wcent local option for local governments. We still do not sec any significant legislative support for this yrcent local option proposal. The Governor has been contacting maytxs throughout the state to secure support for his program with some success, Unfortunately, without increasing legislative support (which we do not see at this time) his proposal has little chance of passage, The media also has generally supported a one cent proposal and not the ",-cent program. AS THE PRESSURE BUILDS FOR ADDITIONAL STATE SPENDING BECAUSE OF BUDGET SHORTFALLS, IT BECOMES IMPERATIVE THAT THE CITY POSITIONS BE INCREASINGLY STRENGTHENED. ANY SALES TAX PROPOSALS MUST PROVIDE SUBSTANTIAL REVENUES TO LOCAL GOVERNMENTS OR WE WILL FACE MUCH HIGHER PROPERTY TAXES IN OCTOBER. AN ALL OUT EFFORT BY LOCAL OFFICIALS AND OTHER LOCAL INTEREST GROUPS MUST BE MADE IF WE ARE TO RECEIVE AN EQUITABLE SHARE OF ANY SALES TAX LEVY. URGE YOUR LEGISLATORS TO PROVIDE FOR LOCAL GOVERNMENTS FIRST AND NOT TO REDUCE ANY LOCAL ALLOCATIONS TO COMPENSATE FOR ESTIMATED SHORTFALLS. NEXT WEEK WILL BE A CRITICAL TIME AND SUCH ACTIONS MUST BETAKEN IMMEDIATI F.Y. (R. Siuig) HOMESTEAD EXEMPTION —Senate Joint Resolution 41 (Langley) has passed the Searle Rules and Calendar Committee. It is a proposed Constitutional amendment that would require homeowners to pay property taxes on the second $5,000 worth of their property regardless of homestead exemption. The bill will now go to the full Senate where it will take a three -fifths vole to be approved. The same Ihreafifths vote would be required in the House to put this proposed Constitutional amendment on the ballot this fall. The proposed amendment would not apply to homeowners who are 65 years old and older. Should this go on the ballot and be adopted by the voters, the owner of a home assessed at $5,000 would remain totally exempt and the owner of a home assessed at $10,000 would pay tax (in $5,000 of value. (M. Sittig) HOMESTEAD EXEMPTION — SB 136 (Maxwell) increase the amount of exempt assessed valuation for any apartment of a home for the aged which meets certain specifications to conform with the current homestead exemption law. This bill passed the Senate 38 — 0 and its companion HB 253 (Wetherell) has passed the Ad Valorem Tax and Local Government Subcommittee of the House Finance and Taxation Committee. It will probably be heard by the full committee this week. The fiscal impact of the bill is listed as "indeterminate." POLICE OFFICERS' DISABILITY — HB 45 (J.H. Smith) requires that any heart disease or hypertension of any law enforcement officer resulting in total or partial disability or death shall be presumed to have been accidental and to have been suffered in the line of duty unless the contrary can be shown by competent evidence. This bill passed out of the Retirement Subcommittee of the House Committee on Retirement, Personnel and Collective Bargaining and was heard by the full committee last week. However, after Ienghthy debate, it was temporarily passed over until it could be determined what the cost to local governments would be. If you have any information, please call the members of this committee and the League _ office. This would be a very expensive mandate on local government. (M. Sittig) - LEGISLATIVE: BULLITEN ,,, Pagel POLICE RECORDS - Senate Dill 164 (Tobiason) passed the Senate 34 - 1 tills week and would require most police disciplinary records to be exempt from the State's Public Records Law. Basically, the bill would exempt Information gathered by police Internal Investigators from the State's Public Records Law If probably cause panels" or Internal affairs Investigators do not find cause it) follow up the Complaints. Its companion, I louse lull 291 (C, Hagler) has passed the HOu SC m Comittee on Governmental Operations, (C, Mullis) OCCUPATIONAL LICL'SNE5- III1878 (Crawford) exempts vending; machines from paying on occupational license tax. The l House Comm lttcc on Community Affairs heard extensive testimony on this bill an(It I ien referred It to the Local Coverntnent ! Review Subconumlmee for It study. The comp:udoo bill Is Sil 801 (1enderson) and has been referred to the Senate s Committee on Economic, Community and Consumer Affairs. (M. Sittig) OFFICIAL LANGUAGE OF fill, STATE - IIB a47 (Melby) provided that all official goverunent publications, records, contracts, Imticcs, ,nCthhlcs, etc., shall be conducted in the English Language. After lengthy controversial debate, the bill was substantially amended and a commince substitute for 1111 3,17 was passed by a (louse Governmental Operations Subcommittee that says that English shall be the Official Lalguage of the State. It also says that all meetings of any board or commission at which official acts are to be taken shall be asnduded in the English I,lnguage. The specific mandates on municipalities has been removed. (M. Sittig) r MOWING VEIIICLES - fill 145 (Allen, A.E. Johnson) requires all vehicle Owners that have been towed to receive official notlncation of such by mail within three days. Tile House Transportation Conanince amended lire bill (by request from )�2epresentathe Allen) to clarify that the notification must come from the person or firm representing the towing company gent not the law enforcement agency requesting the low. (M, Sittig) SEWAGE TREATMENT ACT - Hl1 806 (I'ajdq Drown) csWblishes the Pollution Control and Sewage Treatment Act and attempts to replace Federal 201 hods that were used for sewage treatment plant construction, The bill Is scheduled to be heard by the House Committee on Natural Resources this week and you are urged to ask your numbers to support tills bill. There are currently over one-half billion dollars of sewage treatmet plant needs in this State per year. Federal EPA and State DER requirements have substantially Increased the cost of treating sewage and the State should help local governments fund these programs. The companion bill in the Senate is SB 557 (Votim), and it is now In the Appropriation Committee, (M, Sittig) SUNCOM - The House Governmental Operations Committee passed Proposed Committee Dill 11 which would authorize municipal utilization of the State Conununiction System (SUNCOM). The bill was amended to provide :hat the connecting municipality would be responsible for all of the front end costs associated with connection to tit system. Tile bill will be assigned a number and then be placed on the House calendar, (R. Coker) WIRE TRANSFER - The Cabinet has adopted Proposed Rule 12.10 by the Department of Revenue. This rule authorizes wire deposits of State Revenue Sharing Funds to counties and municipalities in designated bank accounts upon written request. The procedure for requesting wire transfer of Revenue Sharing Funds, as established by the rule, is rather lengthy and copies are available from the League office. If you should have any questions or would like to receive a copy of the rule, please contact Robert Coker of the League staff. The Ad Valorem Tax and Local Government Subcommittee of the House Finance and Taxation Committee passed HD 177 (Moore). The bill would authorize, by statute, this wire transfer of state revenue sharing to local governments. (R. Coker) _. APPRENTICES - The (louse Commerce Cununince passed HB 194 (M000re) which would repeal Section 446.101, Florida Statutes, which requires all contractors to hire apprentices on publit -irks projects. The hill will now go to the House calendar, (R. Coker) SECURITY FOR PUBLIC DEPOSITS ACT - The house Commerce Committee passed I'CB 82.11. This bill would add a new section to the Security for Public Deposits Act. If any federal law nr regulation should prohibit a depository from entering into the contingent liability agreement, th.nt institution would be required to deposit collateral equal in value to 110%of its uninsured public deposits, (11. Coker) LAW ENFORCEMENT - The (louse Criminal Justice Committee deleated 1113 6,14 which would have created a local law enforcement trust fund consisting of funds created by a one -percent increase in the corporate income tax. The trust fund was to provide assistance to local law enforcement agencies in comb.ning Pau I crimes as reported by the Florida Department of Law Enforcement. (R. Coker) CERTIFICATION OF BUILDING INSPECTORS - The Senate Economic Community and Consumer Affairs Committee passed SB 165 (Henderson). The bill mandates the establishment of a certification program for determining the competency of all building code administration and inspection personnel in Florida. No one was grandfathered in. The bill will now be referred to the Appropriations Committee. Its companion HB 117 (Brown) has passed the House Community Affairs Committee and it is now in the House Appropriations Committee. (R. Coker) SALTWATER FISHING REGULATIONS - The Saltwater Fishery Steely and Advisory Council has completed its first year of existence and has made several recommendations to the Florida Lcagislature this year. The House Committee on Natural Resources has passed Proposed Committee Bill 9A (third draft) which pnovides, affective upon the appointment of the Marine Fisheries Commission, 220 local laws and special acts pertaining to saltwater fishing shall be repealed and shall become rules of the Department of Natural Resources. It requires the Marine Fisheries Commission to hold a public hearing in the affected county or counties if they propose changes to these special acts after they become rules. It you are one of the 159 cities with coastline in tills State, the saltwater fishing in your area is probably regulated by one of these special acts or local bills. Often times, these acts address subject areas other than your specifications; bag limits; size limits; protected species; and seasons. Many times, these special acts regulate areas in which recreational and commercial fisherman may hook and net their fish. This may include areas such as caneis within your municipal boundaries. Again, this PCB 9A (third draft) has passed the House Committee on Natural Resources and will probably now go to the House Appropriations Committee. A similar bill by the Senate Committee on Natural Resources No. 895 was temporarily passed over last week because several members of the committee objected to these special acts being automatically repealed and converted to rules of the Department of Natural Resources. They also objected to a provision in the bill which prohibits the Legislature from regulating saltwater fishing by special laws or general laws of local application. You are advised to review the special laws in your area to see if this bill would directly affect your municipality and contact your legislators accordingly. (M. Sittig) RULEMAKING - HB 155 by Representative Allen prohibits the State from adopting, amending, or repealing any rule that would require additional expenditure by local government unless sufficient funds are appropriated by the Legislature. Tile bill passed the Policy Review Subcommittee of the House Committee on Governmental Operations and is scheduled to be heard by the full committee this week. Please urge members of your legislative delegation to support this good bill. There is no companion bill In the Senate at this time. (M, Sittig) UNIFORM MUNICIPAL ELECTION DATES - The House Committee on Elections defeated HB 528 (Weinstock), which would have established the second Tuesday in March as the day for all municipal elections to be held each year. There was a parlimenlary maneuver at the end of the meeting which has technically left the bill pending but it is probably dead for this Session. (M. Sittig) LEGISLATIVE BULLITEN .., I'll go 0 WORTIILFSS C1117CKS — The Senate Economic Conunutdty and Consumer Affairs Cominittec Passed 51) 689 (Trask), Current law (125.010.5 and 106,251 FS) allows counties and municipalities to charge it service fee of up to $5 for the / collection of a worthless check or draft used Ill payntent. This bill would Increase the service charge to $10, or 5•perc n of the ire anuni t of file check, whichever IS greater. 'file companion Is 1,1I3 335 (A. Johnson) wlTcli passeif iii Eff%ia—ey-anti Effectieness Sllbc'ololuIltce, of the I Inuse Goser m nnental Operations Comittee ,snd will now, be considered by the full eolnndttee, (It, Coker) CONSULTANTS COMPETI LIVE NEGOTIATIONS ACT -- The House Transportation C01111nitice this passed IIB 642 which would require the stlhllilssloll (if ;t Price propw,d as well as a technical proposal where tile agency or government Is able to clearly define the ,I ape of work. The bill would ako allow for file n:openinµ of fnrnial negotiations with any 4111C of the three brills A'Ivoed loll linal unl+ider,ltion. This iswe has become quite conrusenial and probably will not be placed on the ealcndal Jul lunsidefatiou by die fill Iluuse moil elnetderable support for the bill has been demonstrate I. Contact Ilse niclolwis of Sour Irgisl.IIkv dviegatirn, ,Ind urge them lot request that Iluuse [fill 6.12 be placed on the Howe Special Order C4landu. (R. Cnkei) PUBLIC Rf.CORMS 1111 6H7 (Itose•n) has lwco reported favorably by the Policy Review Subcommittee of the House Governmental Oiwtalions Cninn,iuce. I his hill exempts from the public records law attorney files and records protected by the auwoes ITirnl pn,16•t;e .Ind te1 old, ill imloanl v claim neµotiatinm. We urµe ynu to support Ibis bill. (C. Mullis) SPIXIAI AYY Sti111 NI S Jill 107 JMeffcI i, on Sp",I:I ()role, (:ahodar in the house, Phis bill ,Upends Chapter 170 totaling In n"'Im ipal inganncnu•nts ,old u',u,rw the prosisioit whrl cby cities may establish a resoIv inµ fund wit hoot ?IF,•� / occesdls of u•Iling hnnd, to make c,glu l ingn'menmllls. (C. Mulb+) SALLS IAk ON 11II1I.R. WORKS I'ItOILCIS 1113 259 (Myer), pnnides.1 ,.des I,lt excloPlinn tut materialsused for Cnnratlnn rinpinyrd by ails cmlmy, nnmicipality, or political sub,inkion in this sine. It pdsa•d the Sale, Tax and General Legislation SlIN-I11ItRdlee of the I Innse Commitlee on I inance and Taxatinn. (C. Mullis) GRAYWAiCR MISI'OSAI Jill 418 (Bldnlley, Batchelor) passed the Iluuse Committee on Health and Rehabilllalive I Service. IIll, I, the snmPanino bill fit SB 41H (Iennings) which directs Illy Departlntnll of Health and Rehabilitative Services /I/ to allow experimental 41,1,111,111,111 III bulkidual graywater diSpos.1I5ystem%(Set• rehitro y .11, 1982 DATAgram). There appears to be little till) o,iliun ill till, bill and it is expected to move rapidly tluuugh the House and Senate- (M. Sittig) EMINEN1 DOAIAINfWATi.It SUPPLY - fill 32.1 (C. Sndth) would-prul11b1LLIm011eLaml cities seeking r) condemul land outside their.buwldallu Jul-wrtc:c5UpJiy_!EllIil they MCI" t t_euusumrlURS,S�.I?P!J111LfE1llll-lflesyalu-s�Iis. lllFeroecttdj5�leiat says that the taking Dias not he awarded by the court Unless tilts ctntumptive use permit has been Issued by the water nlanagenu•Im th,nict. This bill is scheduled for hearing in the Hume Committee on Natural Resources next week and is generating support. Contact ynul Legislators and urge them to oppose this bad ball. Remind your Legislators that in eminent domain Iliuteedings, the land owner receive%a fair return on the propertm y being condemned. If lac feels the steed to go to court, fit, -I itv' most prove that the property is being condemned for a Public purpose and the jury decides the dollar value of the land. Remind then) Ibal the city has to pay fur the attorney's fee ill both Parties regardless of the autconic. This bill is a further enniml of nut Ilnnu• Rule Powers. It, 1 unapanion bill is Sit 8 ib (1'etl•n(n) ,rid it has been referred to the Senate Ec o ninil, ('..tomtit..old ( nn.un,er Affair C.nmm�ill". (M. Sittig) HOUSI. 1(ULI.,IOMNIIi II I BLOCKS AITLAIPT TO INCLUDL I 82 FUNDS FOR WASTLWATER TREATMENT CONSIRII( OON (4LAN1S IN I-MLR(d.N( SSUPPLEMENTAL APPROPRIA11ON BILL The Iluuse Rules Committee ")tell ho 1, rPk In ".It11Ne illy Ie'lliest fill $2 4 hillin i for the EPA 201 I'mgrant. Mcmhos of the Conutittee dirt not feel that the need Jill Illy Innd, lomlimlted .ill enu',gency as raid other le•griests fun funds which were part of the Emergency Supph-111"oa1 \lot inialin I, Bill the hid„ (ndil.ocd (hat (nngn•„ Intdd consider appn,plL,nn;4 haul. Jul Ibe plugraln after it reconvenes on Febricn, 22 ,•I 21 Loy ulli,ials pl.uuliog In attend the NLC Cnope intrl(City Lunference beginning February 27, are Ill gel III nlrrl nth their I ,micles,mr,o and rcgtwo their support for Ili,, 42.4 billion appngnialrun, (I. Sanmdinski) INSTITUTI Of 1.UVI RNMI NI Tlic SUS bnlilui, ill Iwsrl nnnml h sponsoring a sta(I „ulr and lncmr to the held in (M,Imh, M.ulh I I and 12 The purpu,e mt 11•1, lnnlels•nle i, Iu develop a Unnnum nndentamling ill the goals ,and upw.luon,tl ,m ill rue ill the Insulin.• .uul gn'. lunletre, the opportunity In di,. Ill, hill' till' maim ( ing and wchni,al 4si,Ianu• teeth III state and Incal gn„'It"I'vi n, well .1, the service tap.lbditil•+ of ❑nisersilics and eonununily lnllege, ibnmghoml t lie State. The conference I, designeel specifically to bring together officials from govern- ment and nlenlher"s of the academic community that halve in interest in the Institute and w'dlll In participate in Its programs and Projccls.'fhe conference will take place March 11 and 12 at the Howard Iohnson's Florida Center Hotel in Orlando Meetings will begin promptly al 9 a.ln. and will conclude no later than 1:30 p.m. Friday. A block of roots have been set aside for us on the evenings of March 10 and 11. Please call (904)644.3292 or SUN- COM 284.3292, if ynu lived ,illy furth- er information or assislance. IMPORTANTIll POLICE AND FIRE RETIREMENT RULE CHANGES 111TARTMENT OF INSURVA L @UI. F. I IIAI'TER TITLE: Ch.n,l,- 114. Rcl.nimt Ina At,micipal Police Dflu... Rcliu•nuvn I nl.I Fund. RULE TITI I Semi lull I NO. 'I o im rc of Benefit, ❑pan Ion+(r, lu �,Ialr no Slilc and (Dimly Ih9 hru1rnl IRlanlium�, ce........14 I. IleIpfilnrim, ilfC.mpliancRquited 411Iof Cnmpllanc 1, l - 4.14.15; Deagnalinn o! Bcneri ala - 4.14.16; :nfnnnatiml supplied by MuuicipalRics - 4.14.17: Slenn ants If Ili,hlnsemcnr - 4.14.Ix; 1; leedings by I llr UcPan Dien( - 4.1 IA.,. hnewmcilr ill Fools - 4.14.20; Disability ill Line of 1) - 4.14.21; Penton Pla,o of P, cemen and mhv Employees - 4.14.22; 0etcrmh,atian f 11 nests - 4.14.23; Extra Benefits - f-1.1.24; and TenniriAhm of the Plan - 4.14.25. PURPOSE AND EFFECT: To ndnin and pranu,Igale prupnsed new ones Implement' mg Chapter 185, Florida Statute, ' which tnv ides a uniform retirement ,y,loll fill he benefit of Pollee nfficers. A HEARING WILL BE HELD nil I'cbnlary 16, 1982, at 9:30 a.m. In Runm 170, Larson hling, E. Gaines SL, Tallahasscq Florida. Tile ""sun In be cenlactcd regarding the p I., is. olden and eeonnmie Impact state- n,em Is: Marvin 0. Clays ,I Chid ill Muniei• ne Pat PaIF nu-IfILarsannlmFilling, RmmRc208, East G.alncs Street,. Tallahassee, Florid., 32301. DEPARTMLNT OF INSURANCE - RULE CHAPTER TITLE: Chapter 4.54, Fills rillg I,, Municipal Firefighters' Pepsine Trus, Innd. Rill E TL TIES and RULE NO.: y . Public SalctOflieers- 4.14.01; Fnrfcimrc of Be, efil, Upon Transfer In State or State and C(uity Retirement System - 4.54.02; Invesuncnt, -- 4.54.03; Compliance Requir- ed - 4.54.04: Determination of Crnnpllanee - 4.54.05; Deposit or Funds - 4.54.06; Dcslgnetinn If Beneficiary -4.54.07: Infer. talon Supplied by Municipalities - 4.54.08; Statements or nishurscmenis - 4.54.09: Ih'nceci ings by the Department - 4.54.10; Investment of Funds - 4.54.11; Disability In Line if Duty - 4-54.12; Pensinn Plans for Firefighters and other Empinyces - 4-54.13; Determination of Benefits - 4.54.14; Extra Benefits - 4.54,15; and Termination of the Plan - 4.54.16. PURPOSE AND EFFECT: To, adopt ,snd prumulga(c nrnpused new rules Implement. hag Chepicr 175, Florida Sta(ules, which provides a uniform retirement system fur the benefit of firefighters. A HEARING WILL BE HELD on Fcbmary 16, 1982'inet 9:30 a,m, at Roma 170, Larson Building, L. Gais Strcct, Tallahassee, Fior• Ida. The persons to be contacted regarding the proposed rules and economic Impact statement is: Marvin B. Clayton, Chief or M,nllclpal police Officers' and Firefighters' Retirement Funds, Larson Building, Room 208, East Gaines Strcct, Tallahassee, Florida 32301. N� A ji It S(- b"ol Paz el le (7 le- 461 A "Itl 11 ACQUIJU, IZ, ,,c.L -t L a(;" ct xnll-�b nepiace avniestor- pipe, board told ( From Pago 1) 86, Schofield, a Weston resident and aI .1allet In Internal medicine In haled. There, are more than 25,000 Wausau, offered a similar warning, lawsults In the United States related "There Is a significant amount of ar• to Injuries suffered by persons Inhal- gument Against what we are any. Ing fibers, Croft said, . ing," However, there sire no cases In- "I would be guilty of nmlprncllce v(jlving the drinking of water con- If 1 stated we have it gold plated mining fibers, case," Weber nald. "Our's would be a frontier case." Such A case could lake a year to sald)lie hard Weber, town Attorney. try and two to three years it Croft contends whether you Inhale Appealed, lie said. or drink the fibers, they still auto A spokesman fm flu- A C Pqm III"body, circulate through it and Producers Assuaialion, Arlington, create n potential for cancer, p:rrllr, Va , who attending iha musing, this ulariy a lumorous cancer of the lung morning vspi vs.a•d 4upticism W or ubdanlhull cavity dulled Illy t. �rofl'sclalmi solhehiorlla, "The claims that Dr, Craft is Ile has dole research In Wisvomin making I'm highly skapilyd of, w- aver the post two years In which pi,cinhly those concerning asbeslas In dairy cattle sit slaughtering houses the air," said John Welch, public It( - were checked for cancer, Cattle fairs director of the Association. found with mesothellonm were Welch found It difficult to believe traced back to farms, The water that airborne asbestos In Wcsbnn those, some of cattle drunk while on hones Is higher than In fnelurles the form contained asbestos fibers, where asbestos products sire manu. Croft said, factured or handled, as Croft's fl. Croft has found In Weston, fiber In gores would Indicate. the drinking water ranging from a A relationship between Asbestos In half -million to 40 million fibers per drinking water and airborne as. liter of water. bestos fiber "has never been cor. "There have been a significant roborated by any other scientist In number of samples with about 10 the world," Welch said. million fibers per liter," he said. No technical data was presented Asked If he would drink Weston at the meeting which allowed actual water, Croft responded: "1 would deterioratlon of the pipe or that the not drink the water." pipe no longer meets specifications, Croft has also found fibers In air Welch said. of homes hooked to the water sys- "I was dismayed somewhat that tem. Mr. Allen did not provide an uppor• "Hones that were connected to tunity for the industry to present its the water utility had fibers In the position on the safety of its pro. air," he said. Homes with prhaw duct," Welch said. wells had no fiber. The cost of replacing the pipe may The asbestos In the air is a lx less costly than if it utility cos. loaner sued the town for providing greater health hazard than asbesms unsafe water, said Ur. Michael All, in [he drinking water, Croft said. 2211 Sumtnitt Ave.. Schofield, in One to five fibers were found per Weston. cubic centimeter of air to homes. The Orcupalionah Safely And Health Weber conceded that if Ihr lawn Administration has ruled two fibers did nothing, It would he sulnerable per cubic centimeter of air unac- to such a suit. ceptable, Croft said. Town residents can do little m protect themselves front the as - Because of women and children, bestos other than not using the some recommend levels no greater water, Croft said. The town does than Iwo -tenths fiber per cubic cen- provide water that has not cir timeter of air In homes, he said. culated through the mains at the "We think we can show a causal municipal center, Allen said. relationship between fibers in the Filtering the water Is not practl- pipes going Into the drinking water cal because the fibers are so small,. and subsequently, Into the air," Croft said. Weber said. ! Air purification systems, particu. More data needs to be collected larly electro-static systems, could before n declelon can be made reduce the amount of fibers In the whether to sue the manufacturers of air In a home, Croft said. the pipe for damages, Weber said. Croft's research has found no as - lie warned It would not be an easy bestos In the groundwater, soil or case sad there are no assurances the bedrock underneath We tows town would win. Ur. David Jenkins, 2005 liemlock ( NENancy L. \ / ` / S CONTACT: Lewis & Gilman, Inc. v v (215) 568-3775 , �pJA/C Pit-�i-',PtoducersAssociation vi!. r": "; A/C PIPE -- QUESTIONS & ANSWERS 1. What is A/C pipe? A/C pipe is a dense, non-metallic, highly corrosion resistant pipe made of a blend of silica, cement, and asbestos fibers. It is used for carrying drinking water (pressure or water pipe), for the conveyance of sewage (newer pipe), and for drainage (storm drain pipe). 2. How much asbestos is in A/C water pipe? By weight, about 15 per cent. Portland cement and silica (sand) comprise the remaining 85%. 3. Is the pipe lined with asbestos fiber? Absolutely not. The asbestos fibers are not free, but like, reinforcing rods in concrete, they are distributed through and locked_ in the cement binder. 4. What are the health problems associated with asbestos? It is recognized that prolonged or heavy exposure to airborne asbestos can lead to asbestosis, a disease which impairs breathing, increased risk of lung cancer and mesothelioma, a rare cancer of the chest or abdominal cavity. Medical evidence supports the view that, in the absence of smoking, the incidence of lung cancer in asbestos workers would not differ significantly from that in the general public. - 1 - some groups exposed occupationally to respirable asbestos also have shown increases in gastrointestinal (GI) cancers. several studies, particularly the more recent studies involving lower exposure levels, have not clone so. This has lead researchers to conclude that these excesses are dose -related. Calculations comparing ingestion exposure in occupational groups to that likely to occur from ingestion of potable water in A/C pipe systems suggests that the risks to health approach zero. No study has shown that there is cause and effect relation- ship between asbestos in drinking water and disease. 5. Why is asbestos dangerous to inhale but "safe" to ingest? The biological effects of asbestos, like virtually every substance, are related to dose (intensity and duration of exposure) and route of entry into the body. Asbestos is subject to the principle of dose -response. This means that risk of disease decreases with diminishing dose. The incidence of disease in asbestos workers is acknowledged to have resulted from airborne exposures thousands, and in some cases, millions of times greater than those which occur in drinking water. With respect to route of entry, the lung and the gastro- intestinal tract differ dramatically in tissue structure and susceptibility to disease. The lungs, whose function is the exchange of.gases (oxygen and carbon dioxide), are delicate, sensitive organs. The GI tract, whose function is the conveyance r - 2 - �. r - and chemical convornion of food is a tough muscular organ. Extensive medical stud.i.co have shown that the ingestion of asbestos at levels common in drinking water doer; not appear to affect the GI tract or related organs. G. If airborne asbestos is dangerous, how can the industry manufacture the product: safely? The A/C pipe industry has spent millions of dollars developing and installing equipment to control asbestos levels in its factories. Dust abatement, air filtration, waste dis- posal, water treatment, and solids recovery equipment has been designed and put into place. Personal protection equipment and clothing are provided. Regular medical examinations are given. All of these steps insure that operations are carried out within the standards established by regulatory agencies. A/C pipe plants are not only in compliance with government exposure standards, but in most cases are well below permissable levels. 7. Have studies of people exposed to asbestos in drinking water taken into consideration the time lag between exposure and occurrence of disease. Yes. This time lag, called a latency period, is 20-30 years or more for workers exposed to airborne asbestos. A study of municipalities in parts of Canada where asbestos has been mined since the late 1800's, did not reveal excess cancer mortality that could be attributed to asbestos in drinking water supplies. These - 3 - populations bare exposed for a lifetime to as much as 1.3 billion fibers per liter of drinking water. In Connecticut, researchers examined A/C pipe use and cancer incidence data for a 35 year period. The study detected no changes in incidence rates for cancers of the stomach, colon or rectum that could be related to A/C pipe conveying water supplies. 8. Are animal feeding studies meaningful for assessinq the potential hazards of asbestos in drinking water? I: 1 Yes. In such experiments, test animals are fed doses of asbestos significantly in excess of those which a human might ingest in drinking water. Numerous studies of animals with diets containing sub- stantial proportions of asbestos have not demonstrated an increased i risk of cancer. The animal studies support and confirm epidemi- ologic findings that there is no cause and effect association between asbestos in drinking water and disease. 9. I£ other asbestos -containing products have been banned or voluntarily removed from the market, why is A/C pipe safe? In almost every case, asbestos products banned or with- drawn from the market were in a friable state, that is, easily crumbled by hand. I - 4 - Z ,r �1: In A/C pipe, the fibers are locked in a hard durable cement matrix. Even if some fibers should be released into the water during use, it is the judgment of medical authorities that they are not hazardous to health. The results of animal feedings studies and epidemiological studies in areas of naturally - occurring asbestos and where A/C pipe is used extensively, have all failed to establish any cause -effect relationship between ingestion of asbestos and disease. 10. Why can't a substitute fiber be used for asbestos in A/C pipe? At this time there is not a fiber available that can match the performance of asbestos. Although some fibers and some alternate products have been tried in place of asbestos, in just about every case the substitute does not provide equal performance or economic advantages. Also, the health effects of most substitute materials have not been studied. 11. How widely used is A/C pipe? A/C pipe conveys a substantial portion of all drinking water in the United States, in much of Canada, and throughout the rest of the world. Approximately 4600 cities in the United States specify or use A/C pipe in their water systems. Over 300,000 miles of A/C water pipe are in use in the U.S., and about 50,000 miles in Canada. - 5 - Use of A/C pipe is especially widespread in the Southwest Central and Pacific regions of the U.S. In the Southwest Central region (Texas, Louisiana, Arkansas, and Oklahoma), 81 per cent, i or 1,033 cities specify or use A/C pipe. Pacific States such as California, Alaska, Hawaii, Oregon, and Washington use A/C pipe in 973 cities, or 79 per cent of all cities. 12. What other kinds of water pipe are used other than A/C pipe? i In addition to A/C pipe, the major pipes also used are ductile iron pipe and PVC (polyvinyl choloride) pipe. 13. Why would a water utility use A/C pipe instead of another material? Asbestos -cement pipe has proven to be an excellent and durable performer because it has higher resistance to corrosion than metallic pipes. This has been documented in tests conducted by the U.S. Bureau of Standards and the U.S. Bureau of Mines. A/C pipe's superior corrosion resistance results in fewer pipe leaks and breaks and lower operation and maintenance costs for the water utility. In many cases, there also is a substantial cost differential between A/C and competitive pipes. Savings of as much as 20-40 per cent are not uncommon. This reduces the utility's initial investment, associated interest charges and, ultimately, costs to taxpayers. i� - 6 - 14. How do ca anbostos got into drinkinq water? Asbestos is a naturally -occurring mineral found in soil, rock, and water throughout the world. In some areas, naturally - occurring asbestos levels in water reach millions of fibers per liter. This asbestos has been ingested with drinking water since the dawn of time. Where corrosive (aggressive) waters exist, asbestos fibers also may be contributed to water by A/C pipe. However, as long as the cement binder remains intact, the release, if any, of fiber is infinitesimal. It is common practice in the water works industry to chemically treat such aggressive waters to reduce or eliminate their corrosiveness. 15. Do all waters corrode A/C pipe? No, the corrosiveness depends on mineral content, pH factor, and the presence of metallic ions like iron and manganese in the water. The most common types of aggressive water are low hardness or "soft" waters and low pH or "acidic" waters. 16. How do you know if asbestos fibers are in drinkinq water? The only means of measuring fiber levels in drinking water is through use of an electron microscope. This highly sophisticated instrument magnifies the tiny fibers as much as 40,000 times. other methods, such as using turbidity as an indicator of 7 _ naturally -occurring aoboatos or corrosion formulas to "predict" asbestos release from A/C pipe, are neither precise nor accurate- 17. W_hy doesn't the industry just coat the inside of A/C pipe? Coating of A/C pipe has not been warranted, according to all existing research regarding ingestion of asbestos or use of A/C pipe. In addition, many coating materials release residual chemicals which may be potentially hazardous and about which little is known. 18. Can asbestos be filtered out of drinking water? While no evidence exists to support the need for filtration, asbestos can be filtered by treatment with chemicals or by special millipore-type filters. No home filtration devices _S are effective. 8 - iY4,P ef' N f I !YY... STRONG MONETARY GROWTH PUTTING THE PRES5UR9 Q_R The virtual explosion that has recently taken place in the growth rate of the Nation's money supply, M1, has elicited fears of either near term Federal Reserve tightening, or future higher levels of inflation. The result of these fears has been higher interest rates once. more. Since November, M1 has soared upward at a 17.0% annual rate, far above the, Federal Reserve's initial target ramp of 2%r! • 5ii46 fw 1982. These targets Would alluw M1 la grow a total of only $10 • 20 billion this year. Through the week ending January 27. 1982, Mt has already grown a total of $8.9 billion. This expansion in the money supply was first assumed to be caused by seasonal pressures that would soon reverse Ihe-nsolves. However, since no significant turnaround has yet materialized the financial markets continue to be depressed. Some analysts believe that the money supply data contains major technical errors which have resulted in the overstating of recent monetary growth. However, most market participants contend that in any event, the Federal Reserve will have to maintain a firm stance in order to bring the supply of money back in line with its targets. Many are concerned that if the Federal Reserve is forced to tighten further, any chance of a near -term economic recovery will be ended. In addition to the concerns over the monetary aggregates, several other factors have resulted in shurhlerm interest rites being significantly higher than they were one month ago. The prospect of continuing large Federal budget deficits and the resulting huge supply of government securities coming to markat, are chief among these other factors. As the following table shows, the yield curve for U.S. Government securities has chanced dramatically from one month ago. 1I5/82 2,'5!2 Federal Funds 12.90% 15.22'a 3 Mr nth Treasury dill 12.12% 14.19% 6 Month Treasury Bill 13.3496 14.76% 1 Year Treasury Bill 13.76% 14.64% 5 Year Treasury Note 14.29% 14.4796 30 Year Treasury Bond 14.08% 14.37% Of course, as yields on Treasury securities have risen, other market rates have risen correspondingly. The prime rate jumped 3/4% to 16.50%, and the FHA mortgage rate increased to 16.50% from 15,50%. On the other hand, the Discount Window rate, as administered by the Federal Reserve, remains at 12.00% Since Federal funds are now trading consistently over 15.00%, a strong possibility exists that the discount rate will be increased or a surcharge imposed on large borrowers. Neither of these moves would be politically popular, and recently the Federal Reserve February, 1982 successfully avoided such actions by privately warning many large banks that they had overused their borrowing privileges. As a result these banks turned to the Fed funds market putting further upward pressure on the Fed funds rate. THE BRIGHT SPOTS: INFLATION, LEADING INDICATORS AND UNEMPLOYMENT. The most encouraging factor in the current economic outlook is the continued evidence of a slowing in the rate of inflation. All the indices designed to show increases in the general level of prices continue to moderate. The Consumer Price Index rose only 8.9% for all of 1981 versus 12.4% in 1980 and 13.3% in 1979. This was the smallest yearly increase since the 6.8% increase in 1977. The Producer Price Index also posted its lowest yearly rate - of increase since 1977, rising only 7.0% versus 11.8% in 1980. The GNP Deflator rose 9.1% for the year, but increased only 8.4% in the fourth quarter. However, food prices, which were a moderating influence during most of 1981, may jolt the Indices. upward in the next few months as severe winter weather resulted in a 1.6% increase in farm prices during January. The Index of Leading Indicators rose a slight 0.6%in December, the first increase in the index since last July. This slight increase is most likely signalling a slowing in the rate of economic decline, it not an actual reversal, Five of the index's ten indicators contrib- uted to the increase, including a 0,31% increase in building permits and 0.24 % rise in money supply. The average work week registered the largest negative impact. Additionally, the ratio of Coincident to Lagging Indicators, generally perceived as a signal of turning points in economic activity, rose once again to 75.3% from 74.9% in November. The Unemployment Rate in January fell to 8.5% from a revised 8.8% in December and 6.396 in November, Revisions were affect- ed for the past eleven years to reflect 1980 census information. Many economists feel the current employment figures are mis- leading and still expect the unemployment rate to rise to 9.5% or 10.0%, before declining later this year. The lower unemploy- ment rate is due in part to a large, but more than likely, tempo- rary drop in the work force. The number of people actively seeking jobs declined 350,000 in January, and these persons are no longer included in the unemployment rate. The total number of these so called discouraged workers may have grown beyond the record level of 1.2 million set in the fourth quarter. of 1981. It is also possible that severe weather kept many job seekers away from the unemployment offices, and that milder weather will reverse this decline in the work force. nBank Investment Department (305) 237-4380 A SLIGHT TURNAROUND IN HOUSING, WHILE AUTOS REMAIN WEAK The housing statistics scorn to show that this industry may finally be exhibiting signs of a modest recovery from all time record -ws. However, with the recent turnaround in mortgage interest rrtas from the declines of late 1961, this modest recovery may be vary short-lived. Now Home Soles posted their third consecutive monthly increase risfngan additional 10,0%in December, Perhaps more importantly, the unsold Inventory of new homes Is now down to a more manageable 7.2 months supply. Though home sales have rebounded slightly, for all of 1981 they fell 20% to the lowest yearly figure since the survey was first conducted in 1963. Housing Starts and Permits rose 13.3%and 11.6%respectively, in December. The increase in Housing Starts was the first in five months, as November's originally reported Increase of 0.8% was revised to a 0.5% decline, Most of the rise in December Housing Starts was attributable to a substantial (46.70 rise in Starts of units for five or more families. The preliminary estimate for total 1981 Housing Starts is 1,086,000 units, down 15,9% from 1980 and the lowest annual total since 1946. It is also estimated that Housing Permits fell 17.6% in 1981 to a total of 1,190,000 units, the lowest level since 1975. The current position of the auto industry remains weak although recent contract negotiations between the United Auto Workers (UAW) and the large auto makers are encouraging. These negoti- ations, which call for large union concessions, to in turn be passed on to the consumer in the form of lower car prices, may have been somewhat responsible for slow January sales as consumers awaited these lower prices, Once again the large auto makers are offering limited rebate incentives as January domestic sales were at a seasonally adjusted annual rate (SAAR) of 5.3 million units, 18.5% lower than January 1981. Import sales retrain at a 2.2 million unit SAAR, a decline of only 2.0% from last January. The market share for imports has now risen to 31.3% versus a 27.3% market share in January 1981. RECESSIONARY TRENDS CONTINUE IN ORDERS AND PRODUCTION A healthy increase was expected in New Factory Orders for December, based on a preliminary estimate of a 1.6% increase in durable goods orders. However, New Factory Orders rose a very modest 0.2% following a revised 0.6% rise in November and a 5.6% decline in October. Durable goods orders in the final report showed only a 0.3% increase, although orders for November were revised upward to a 2.8% increase versus the originally reported 1.8% increase. Such a weak overall number provides little encour- agement that manufacturing activity will pick up before Spring. Business Inventories continue to rise, jumping 0.7% in both November and October. The Inventory to Sales Ratio now stands at 1.50 months versus 1.48 months in October. Until inventories are more fully under control the outlook is not yet promising for Factory Orders and in turn production. Indeed, Industrial Pro. duction at the Nation's factories plunged 2.1% in December following revised declines of 1.9% and 1.6% in November and Octubrr. For all of 1901, Industrial Produrtlon declined 4,716 following it 14% decline in 1080, Industrial Production Is expec- ted to remain weak for the next few months as manufacturers strive to control burgeoning inventories. The rate of Capacity Utilization in the Nation's factories fell to 72.9% in December, the lowest utilization rate since the 1974 1975 recession. Additionally, total Productivity of U.S. nonfarm businesses for the fourth quarter of 1981 plummeted at a SAAR of 7.6%. This result occurred as output declined 8,4%, while the number of paid hours worked declined only 0.9%. Yet, despite this latest quarterly decline, non -farm productivity for all of 1981 rose 0.9%, following three consecutive years of declines. Both of those factors, a lower utilization rate, and lower productivity serve to increase costs to producers and are signs of the depressed conditions in the manufacturing sector, SUMMARY Overall, the economy seems to be making the first small steps toward recovery from the current recession. The recent improve- ment in the housing industry, the turnaround in Leading Indica• tors, and continued moderation in the rate of inflation are positive signs. However, the continued weakness in the manufac. turing sector, and the strong possibility that the Federal Reserve' may soon be forced to tighten its credit reins, must be weighed against these encouraging signs. With the unemployment rate expected to rise above 9,0% in the next few months the consumer sector should not be expected to be a positive factor in the near future. Indeed, Retail Sales, long expected to lead the recovery, fell 1.11% in January following December's revised 0.2% decline. The growth in the money supply and the resulting actions of the Federal Reserve, along with the budgetary debates on Capitol Hill, will be the keys to the near -term levels of interest rates, and the imminence of the economic recovery. Mcmo to: City Council From: City Manager Subject: Alcoholic Beverages on Public Property Date: January 20, 1982 Attached is ordinance No. 221-C which amends Chapter 3, Section 3-5 of the Municipal Code of ordinances regarding the consumption of alcoholic beverages on public property. Presently Section 3-5 of the Municipal Coss only prohibits drinking alcoholic beverages in public parks and playgroundo. The p-vposed amendment is [mre comprehensive and prohibits the consumption on all public properties. The proposed amendment has been recommended by the Police Chief, and allows the City Council to grant exceptions from this ordinance for special activities in designated facilities. Respectfully, CITY OF CLER40NT George D. Forbes City Manager Attachment GDF;jb