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10-30-1984 Workshop Meeting e e CITY OF CLERMONT MINUTES WORKSHOP MEETING October 30, 1984 A Workshop Meeting of the City Council of the City of Clermont was held Tuesday, October 30, 1984 in the City Hall Conference Room. The Meeting was called to order by Mayor Beals at 7:10 p.m. with the following Council Members in attendance: Council Member Cole, Council Member Turville, Council Member Henry, and Mayor Pro Tem Pool. City Manager Forbes and City Attorney Baird also were present. AGREEMENT FOR BOAT DOCK The City Manager explained that a problem existed at 625 Lakeshore. Mr. Terry Brent, owner of this property, was not keeping current with a $100,000 property damage/liability policy co-insuring the City for a boat dock he maintains on City property, and required by his lease agreement. The City Manager read a letter which he requested permission to have the City Attorney send to Mr. Brent, requiring him to obtain the proper insurance policies within 30 days or the City will enter and retake possession of the boat dock and tear it down. It was explained that Mr. Brent had assumed the lease in order to maintain the boat dock on Lake Winona. It was the consensus of the Council to have Mr. Baird send the letter. FIRE PROTECTION City Council Members discussed a mutual fire protection agreement with the County which would allow the City to be protected if its Fire Department responded to fires outside the City Limits. The Council Members discussed the pros and cons of responding to fires outside of the corporate limits, and whether the City should sign such an agreement at this time. It was the consensus of the Council to put this item on the November 13th Council agenda. The consensus was that the agreement would be adopted at that time. However, a cover letter would be sent to the County explaining that although the City was signing the agreement, it was doing so to cover the City during cases of mutual aid; and that the City had not yet adopted an official policy covering properties outside of the cor- porate limits. Mr. Forbes further explained that Fire Chief Smythe would be meeting with members of the Groveland, Minneola, and South Lake Fire Districts in order to determine what areas could possibly be covered and the amount of revenue the City would receive for the service. Once this information is obtained, the City can make a final policy decision on this matter. EXPANSION OF THE WASTE TREATMENT PLANT The Council Members discussed in great detail the City's attempt to negotiate the purchase of approximately sixty acres of property adjoining its present sprayfield site. The City Manager gave a detailed account of his conversations with the property owner who believes that the appraisal was done at the worst possible time and contains many errors. Financing for the waste treatment plant and the property purchase requirements of the Federal EPA were discussed in great detail. . e CITY OF CLERMONT MINUTES WORKSHOP MEETING October 30, 1984 Page -2- It was the consensus of the Council that it was very important for the City to determine as soon as possible the owner's final intention regarding selling the property. Council Member Pool and the City Manager were directed to meet with the City's appraiser and the property owner to negotiate an agreement for the purchase of the property. UNIVERSAL TANK It was discussed that the City had sent Universal Tank's bond attorneys a letter on July 31, 1984 requesting a minimum settlement of $27,500 to repaint the City's 500,000 gallon water tank. It was further discussed and agreed by Council that the company's counter offer of $6,000 was not adequate, and that the City should make them a counter offer of $25,000. It also was the consensus of the Council that if the City cannot negotiate an agreement with Universal Tank, it should seek arbitration as discussed in the contracts. The City Attorney was directed to review the laws concerning arbitration and report back to Council. RATE ORDINANCE The City Manager gave each Council Member a copy of the User Charge System as approved by the State Department of Environmental Regulation. As required by the State, the new rates will go into effect upon com- pletion of the waste treatment plant expansion. Mr. Forbes also handed out the original Ordinance l66-M which was appoved by Council and sent to the State, and pointed out some minor changes the State has required for the the variable rate section of the ordinance. The ordinance will have to be adopted by the City but will not take effect until late 1986. It was the consensus of the Council that the ordinance should be formally adopted early next year. CITY BONDS City Manager Forbes discussed and requested Council approval to pay off two sets of bonds as follows: 1. The City Attorney prepare a resolution, as required by the bond covenants, to pay the City's 1970 Water & Sewer Revenue Bonds with the proceeds of the 1973 Refunding Bond Issue as prescribed in the 1973 Bond Ordinance. The 1973 Issue re- financed the City's 1970 Water & Sewer Revenue Bonds, and it was explained that all funds required for the payoff were in the City's Sinking Fund. When the payoff is completed, all remaining funds will be transferred to the 1973 Sinking Fund. It was the consensus of Council to have the City Attorney draft the required documents to payoff this bond issue. 2. The City Manager explained that the City was now in a position to request to payoff the 1982 Water & Sewer Revenue Issue for the City's sprayfield in the amount of $700,000 at an interest rate of 11.375%. It is the in- tent of the City to payoff this bond issue, and instead bond an issue of $885,900 at an interest rate of lO.50% for the expansion of the waste treatment plant. The money to payoff the $700,000 bond, plus interest, would come from the following sources: $400,000 from the Capital Improvement Fund and $300,000, plus the interest to date, would come from General Fund Reserves. e e CITY OF CLERMONT MINUTES WORKSHOP MEETING October 30, 1984 Page -3- Considering the worst possible set of circumstances, the Council wanted to know what would happen if there was some problem with the bond issue for the treatment plant expansion or the City was required to put money in escrow for the purchase of the land. Mr. Forbes explained that $400,000 could be obtained by using $100,000 from each of the following funds: Utility Benefit Fund, Capital Improvement Fund, Water and Sewer Reserves, and the General Fund. It was explained that in the long run, the City would save well over one million dollars by paying off the $700,000 bond issue for the land spreading project. This bond issue was at an interest rate of 11.375% over a period of 40 years. Whereas, bonds for the treatment plant expansion were at 10.5% for 30 years. Paying off the land- spreading bonds at this time would save the City approximately $100,000 in bond payments per year. It also was pointed out that the real savings would be approximately $30,000 per year since you would lose $700,000 in money that presently was being invested at 10%. However, the total package was an extremely important cost savings. It was the consensus of Council that both of the bond issues should be paid off, and this matter should be brought before Council at the next meeting. CHANGE ORDERS # 6 & 7 FOR THE LANDSPREADING PROJECT. City Manager Forbes explained that the largest item on Change Order #7 was $10,060.55 for the removal of check valves and the installation of electric valves. It was explained that the Utility Director pre- fered mechanical valves instead of electric, but that the City Engineer had strongly recommended electric valves for the system because the City would most likely lose its warranty if anything but electric valves were installed. In addition, they could not guarantee that mechanical valves would work. Mr. Forbes further explained that he had talked to the contractor and got the price for this item reduced by $500. All of the items on Change Order #7 were discussed in detail with all items and prices being checked carefully by the City Manager and City Engineer. It was the consensus of the Council that Change Orders #6 and #7 be put on the agenda of the next Council Meeting for approval. WATER LINE REPLACEMENTS As an item of interest, City Manager Forbes passed out a letter dated October 25, 1984, which will go to citizens who live north of Almond Street and east of Bloxam Avenue regarding reconnecting their homes to new water lines. There being no futher e meeting adjourned at 9:00 p.m. 13.13 BEALS, MAYOR ATTEST: . ~.u-rA.t.. J WA E SAUNDERS, CITY CLERK