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03.21.2023 - City Council MinutesCity of Clermont MINUTES CITY COUNCIL WORKSHOP March 21, 2023 CALL TO ORDER The City Council met in a workshop session on Tuesday, March 21, 2023 in the Clermont City Council Chambers. The workshop was called to order at 6:30 pm with the following Council Members present: Mayor Murry, Council Members Pines, Gonzalez, and Purvis. Not Present: Council Member Entsuah Other City officials present were City Manager Bulthuis, City Attorney Mantzaris, and Deputy City Clerk Wisniewski. OPENING COMMENTS Mayor Murry stated that the workshop is to provide an overview of the impact fee study and the extraordinary circumstances necessitating the need to exceed the phase -in limitations for possible increases in police, fire, water and sewer and parks and recreation impact fees. The workshop will be the first of two workshops held to comply with the requirements of Florida Statute. The workshops will provide the City Council and the public an opportunity to review the justification of extraordinary circumstances necessitating the need to exceed the phase -in limitations for police, fire, water and sewer and parks and recreation impact fees. City Manager Bulthuis explained that the city hired Raftelis to perform a study on impact fees for new development. In order to change impact fees, the city has to hold two workshops and two public hearings. If Council finds there to be extraordinary circumstances then the city can adopt the rates at the higher level instantly rather than phase them in over years. The Police Department, Fire Department and Wastewater Department will provide an explanation of meeting the definition of extraordinary circumstance. AGENDA ITEM Police, Fire, Water and Sewer; and Parks and Recreation Impact Fee Development Services Director Henschel gave an overview of development happening around the city. He spoke about upcoming developments, future developments and developments that have been approved in the past that are not finished. Wellness Way will bring in 19,000 homes once fully developed, the remainder of the city is about 8,000 homes to be developed. Fire Chief Ezell gave an overview of their 5 year Capital Improvement Plan. The Interlocal Service Boundary Area agreement that the department has with Lake County makes the service area more than just inside the city limits. Chief Ezell spoke on the challenges that require the extraordinary circumstances such as fire trucks taking longer to build, price increases and construction costs have doubled. Police Chief Broadway provided an overview of police zones prior to the annexation of Wellness Way and then including the Wellness Way area which adds two new zones. With adding two zones, there will be a need for four new officers which includes uniforms and vehicles. There will also be a need for additional supervisors to maintain additional officers. 1 City of Clermont MINUTES CITY COUNCIL WORKSHOP March 21, 2023 With the anticipated growth, there will be a need for thirty (30) additional officers within the next few years. Chief Broadway stated the reasons for extraordinary circumstances which includes: vehicles that cost $65,000 to $70,000 fully equipped, mobile command post, training facility and substation to provide service to all areas of the city. Public Services Director Brunson gave the history of the wastewater treatment plant. He spoke about the sewer service area and an overview of the boundary for wastewater service area. Mr. Brunson reviewed the wastewater treatment plant project and expansion. The bid for the project was $19,000,000.00 in 2017 to $48,000,000.00 in 2022 for construction. The project will take thirty (30) months to complete and will be fully operational in 2026. City Manager Bulthuis provided statistics on the number of annexations approved over the years. In the last three years, the City Council approved a couple hundred annexations. In the five years prior, Council approved 7,000 homes. There was discussion regarding the water capacity and the number has risen year over year due to the growing population. Murry Hamilton, Vice President of Raftelis, introduced himself and explained the study his company preformed. Raftelis updated the fee studies in 2008, 2014 and were retained last year to update the current study. Impact fees are paid by new development, redevelopment and expansions. Impact fee rates may not be adjusted more than once every four years. Mr. Hamilton spoke about the legal considerations, including the Florida Impact Fee Act and new limitations on increasing impact fees. Cities should be doing an impact fee study every four years. There was discussion on impact fee criteria, the methodology of fee calculation and extraordinary circumstances. Mr. Hamilton reviewed the current and proposed impact fees for water, wastewater, police, fire and parks and recreation. The recommendation after the rate study was done is to adopt the proposed impact fees, review fees every four years and provide 90 days between the city's approval and effective date. City Manager Bulthuis stated that the next workshop will be on April 18. The rates will go into effect 90 days after approval, which would be in August. Discussion ensued regarding when the impact fees being charged when getting a building permit. City Attorney Mantzaris stated this is a legislative action, findings are made based on the information presented. This will be presented to Council by ordinance which will contain findings of extraordinary circumstances. There is a new impact fee bill pending in legislature. Council questioned how the city would be affected if someone were to challenge the city's reasoning for extraordinary circumstances. Mr. Mantzaris explained that the fees are adopted by ordinance so someone could challenge the ordinance to the City Council. There would be no change in the fees increasing, it would change the timeframe that the fees can be increased, if someone challenged and won. 2 City of Clermont MINUTES CITY COUNCIL WORKSHOP March 21, 2023 Council Member Purvis left the workshop at 8:05pm. Mayor Murry opened public hearing. Otis Taylor, 3686 Caladesi Rd — spoke in support of the increase. Arthur Padoan, 4079 Greystone Dr. - spoke in support of the increase stating developers need to pay their fair share. Mayor Murry closed the public hearing. CLOSING COMMENTS Deputy City Manager Davidoff thanked Raftelis and the team working on this study. City Manager Bulthuis stated that staff is looking for direction from Council to move forward with extraordinary circumstances. The consensus from Council is to continue to move forward on this path with raising the impact fees. City Manager Bulthuis brought up HB 1331, water and sewer that was discussed at the previous council meeting. Mr. Mantzaris explained that the bill passed committee, appears that a city can still transfer money from the water and sewer fund to the general fund. The bill has changed from the initial presentation, the formula used for transfer rate is the same formula the Public Service Commission uses. The maximum amount a city can take from water and sewer to transfer to the general fund would be between 10% and 10.5%. The companion bill in the senate was removed from the committee it was in which will slow down the process of this bill. If the bill passes, the change would take effect immediately. This is the third year a bill like this has been up for consideration. City Manager Bulthuis made Council aware that the budget process will start around June for this year. They discussed the required ethics training for council members. City Attorney Mantzaris spoke about a bill that will affect the financial reporting for Council and the City Manager. ADJOURN: With no further comments, this workshop adjourned at 8:28 pm. APPROVED: " MIR " Tim Murry, Ma r ATTEST,' Tracy Ackroyd Howe, MMC City Clerk 3