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HomeMy WebLinkAbout1345 - MINUTES - City Commission MINUTES DANIA BEACH CITY COMMISSION WORKSHOP MEETING J U LY 8, 2002 1. Call to order Mayor Chunn called the meeting to order at 6:00 p.m. 2. Roll Call: Present: Mayor: Robert Chunn Vice-Mayor: Pat Flury (arrived at 6:25 pm) Commissioners: John Bertino C.K. McElyea Bob Mikes City Attorney: Tom Ansbro City Manager: Ivan Pato City Clerk: Charlene Johnson 3. Discussion of Water, Sewer and Stormwater Utility Strategic Planning process. City Manager Pato briefly explained the need to address the infrastructure of the City's utilities in order to prepare for future growth of the City. Mr. Pato explained that the City needed the advice of a professional and introduced Mr. Frederick Bloetscher, P.E., Director of Engineering, Operations and Planning of(PUMPS) Public Utility Management and Planning Services, Inc., who has worked for other cities and is also a resident of Dania Beach. Mr. Pato also explained that Mr. Mike Sheridan, who has recently joined the City as Public Works/Utilities Director, will share his expertise as an engineer and he and Mr. Bloetscher, will work together to accomplish this project. He then said they were here with their findings and their recommendations to the Commission. Mr. Sheridan explained that the presentation relates to the water, sewer and stormwater strategic planning process they would like to implement. He added that Dr. Bloetscher, PhD.in Civil Engineering, comes to the City with a lot of experience and has contributed with his expertise of the City's current utility system. He mentioned his intention to move forward with a strategic plan, which once is prepared, will come back to the Commission for approval. Mr. Sheridan advised that they must first identify the City's current resources, as well as the resources they will need for future upgrades, and mainly how to fund this project. The City's current service area consists of 3 sq. miles of water and sewer customers, which includes residential and some commercial properties and almost 6 sq. miles of stormwater. He advised that the City has 4,500 water customers and 4,500 sewer customers, and 13,000 stormwater customers, with the newly annexed area. The current water plant, which was built in 1953, processes 3 million gallons per day. Raw water is being purchased from Broward County, but some of the wells that the City is currently using will not be available in the future. Mr. Sheridan also said that the MINUTES 1 JULY 8, 2002 WORKSHOP MEETING City has water system connections with Broward County and the Cities of Hollywood and Fort Lauderdale. He further explained the problems that will affect the City, such as the water quality, as the regulatory requirements will cost the City money to ensure water quality. Mr. Sheridan explained that the pictures presented tonight show the present situation with the water treatment plant, which in spite of its age, has been very well maintained. In regards to wastewater treatment, the City has a 20-year partnership agreement with the City of Hollywood, which also serves other municipalities in the area, such as Hallandale and Miramar, as well as our recently annexed area. The City pays Hollywood depending on the meter flow and Mr. Sheridan did not foresee any problems with the current agreement. Mr. Sheridan pointed out that one of his main concerns was the flooding in the southeast area. He added that the City maintains good relationships with the Florida Department of Environmental Protection, the South Florida Water Management District and also with the Broward County Health Department. One of the concerns expressed by the Health Department is that the City does not have water storage capacity. Mr. Sheridan advised that he would like to pursue funding options for the State Revolving Funds and evaluate the impacts on costs for repairs and to proceed with Mr. Bloetcher's contract to implement the planning. The State Revolving Fund, established in 1989, provide loans to cities at low interest rates such as 3.07%, to build water, stormwater and wasterwater systems, including engineering and construction services. To be eligible for the funding, the City will have to submit plans to the Department of Environmental Protection for approval, provide a capital financing plan, and guarantee repayment of the loan. Director Sheridan explained that the advantages of using SRF • funds instead of Bonds is that their interest rates and borrowing fees are less. SRF borrowing time is 20 years and they are a lot more flexible than Bonds, SRF funds are usually associated with higher loans. Mr. Sheridan made a graphical presentation of the time lines involved and added that deadlines are critical and that in order to get SRF funds, the plans must be presented by April 15, 2003, otherwise the City would have to wait until next year. He recommended that staff be allowed to proceed with the strategic planning for the three utilities, come back to the City Commission with contracts for approval, pursue the funding sources and evaluate the impact on the citizens of Dania Beach. Vice Mayor Flury arrived at 6:25 pm. Mayor Chunn suggested that a brief update of the presentation be provided to Vice Mayor Flury. Vice Mayor Flury explained that she is aware of the deficiency in a lot of areas. Vice Mayor Flury was concerned that SRF funding would cost taxpayers more than a Bond program. Commissioner Bertino advised that the agreement with the City of Hollywood is very positive for the City of Dania Beach, and, although Hollywood has tried to get out of the agreement, it should be maintained. Commissioner Bertino pointed out that in regards to the infiltration studies, there may be some money available in the Regional Plan as Federal and State funds can be used for infiltration studies and repairs. Further discussion followed between Commissioner Bertino, Public Works/Utilities Director Sheridan and Dr. Bloetscher in regards to the infiltration issue. Dr. Bloetscher agreed to look at the agreement with the City of MINUTES 2 JULY 8, 2002 WORKSHOP MEETING Hollywood and thought Hollywood uses SRF funds. Dr. Bloetscher also said that there • are some works being done in the lakes in Hollywood and if some of these repairs are successful, there may be an opportunity for the City to participate in some demonstrations that may bring some grants in. Commissioner Bertino suggested using a camera to view the status of the grout repairs that were done many years ago in the water lines. Commissioner Bertino further asked if SRF funds were fixed rates, to which Dr. Bloetscher replied they are. Dr. Bloetscher also explained that a bond issue may be obtained for thirty years and that people will probably pay 6 to 7 % interest and that it moves up and down on a weekly basis. Commissioner Bertino advised that when Federal Highway was built many years ago, they wanted to make sure that they drained it very well and they drained it down into what was called the East Marsh District, which later became the Southeast District for the City of Dania Beach. He further said that when the water comes off Federal Highway, on 2Id Avenue, it flows out of the drains and the system is inadequate. Some time ago the Commission directed Bud Palm, former Public Works/Utilities Director, to try to get the Federal and State governments to pay some money for the impact of water run-off from Federal Highway into our drainage system on the southeast side. Commissioner Bertino added that it would be a shame if some of the pipes in our system would have become blocked on the far east side. He mentioned that we must be very diligent making sure that they do not become blocked and probably that is something their engineers would want to discuss with the City. • Vice Mayor Flury suggested that staff obtain an opinion from the auditors on whether to go with SRF funds or a Bond program. Director Sheridan reported that the City of Dania Beach has one of the lowest water and sewer rates in South Florida in comparison with other neighboring cities. Further discussion followed between Commissioner McElyea, Dr. Bloetscher and Director Sheridan relating to the need for a storage tank, a requirement of the Department of Health, and whether it should be an elevated tank or a ground-level tank. Commissioner McElyea thought the best functional place for a storage tank would be in the southeast area. Mr. Sheridan advised that an elevated storage tank should last 100/150 years, and that he would select a tank company with a very good reputation for maintenance. Commissioner Bertino commented on City's agreement for wastewater treatment and he suggested that the City may want to consider purchasing some excess from Pembroke Pines to meet future needs. Director Sheridan added that the City of Hollywood is looking to expand the regional treatment plant and they are looking for the Large Users Group to absorb that cost. City Manager Pato commented that some of the monies that may be spent could be recovered from the CRA. Mr. Sheridan further said that FDOT has a plan to do some road work and that the City is working with them, the CRA and the LAP (Local Agency Provider) program so the City MINUTES 3 JULY 8, 2002 WORKSHOP MEETING is trying to get all these programs working together in order to take the most advantage Isof it. Once FDOT completes the road work, they are going to have a 5-year moratorium and the City will not be able to cut through any of these roadways. Commissioner Bertino added that FDOT was supposed to put a large stormwater collector system all the way down Sheridan Street with dumping into the intracoastal canal. Former Director Palm was working with FDOT to see if the City could get a tie-in for some of the lateral drainage systems along Sheridan Street. Commissioner Bertino mentioned that connection was sorely needed and asked Director Sheridan to look into the matter as flooding is a problem in the southeast section of the City. Laurence Leeds, Growth Management Director, asked Mr. Sheridan when the work on Federal Highway would need to be completed in order to avoid moratorium. Director Sheridan said that FDOT is looking to start the project in 2003 with completed projected for 2005. Director Leeds concluded that in the context of installing new water/sewer systems, the City has two years to complete the work. Commissioner Bertino stressed the importance of determining the height of the buildings along Federal Highway and other sections of the City to confirm the size of the sewer lines. Further discussion ensued with the City Manager, members of the City Commission and Director Leeds in regards to the CRA Plan. City Manager Pato advised that the CRA Plan would be presented to the County in September. Director Leeds advised that the City is holding two workshops, July 18 and July 20 and that notices have been sent out • to property owners within the CRA area asking them to attend these meetings and present their vision of the downtown. Issues of density and height will also be revisited in terms of the downtown development. Mr. Leeds added that the City must submit the draft plan in September, and the Plan must be approved by the County before December 31, 2002. Vice Mayor Flury clarified with Dr. Bloetscher that the purpose of the contract is to outline his responsibility in the preparation of the strategic utilities plan. Dr. Bloetscher explained that the process will involve himself and staff and once the plan is submitted to the Commission, he will take care of all comments from all State/Federal agencies, and fill out the necessary applications. Director Sheridan advised that the City is very fortunate to have Dr. Bloetscher involved with the plan, as he has completed plans for other cities. Vice Mayor Flury further confirmed with Dr. Bloetscher that he expects a plan to be developed in approximately 60 days, i.e. the end of September and at that time the City will have an idea of what the cost will be. Dr. Bloetscher expected the amount to be $6-$10 million dollars; and that State Revolving Funds are flexible but Bonds are not. City Attorney Ansbro inquired with Dr. Bloetscher whether the Florida League of Cities would have a program for smaller cities for water and sewer improvements. Dr. Bloetscher promised to check with the Florida League. Commissioner Bertino asked Dr. Bloetscher if there were any plans to provide greywater. He further said that Hollywood has an abundance of greywater that they may Obe able to outsource to the City. MINUTES 4 JULY 8, 2002 WORKSHOP MEETING Discussion followed between Commissioner Bertino and Director Sheridan regarding the O possibility of bringing water from Brian Piccolo and treating at the City's water plant. Mr. Sheridan explained that he and Dr. Bloetscher were looking into the possibility of establishing a system that would allow the City to use water at a later date, in case the City ever needed to treat salt water or possibly pumping down chlorinated unpolished water. Dr. Bloetscher explained that other cities such as Hollywood, Hallandale and Davie are already doing a lot of water quality testing and are willing to share their information with Dania Beach. Mr. Sheridan further said that the City of Hollywood has lent some equipment to Dania Beach to work in the lift station and that the good relationship will benefit all the parties involved. 4. Discussion on Harbour Towne Lease. City Manager Pato explained that he submitted a Memo on June 7th to the Commission requesting input on Harbour Towne Lease. Once a consensus is obtained, negotiations can begin with parties from California. Mr. Pato further said that he has only heard from Vice Mayor Flury, who had some comments and suggestions and also Commissioner Bertino who has spent some time discussing the issue with him. He added that before he takes further steps, he would like to hear from the rest of the Commission. Mr. Pato advised that one of the questions raised was whether the gross revenues could be verified and that Harbour Towne is willing to submit copies of revenues on a quarterly basis and to be audited on a yearly basis. Vice Mayor Flury mentioned that the City needs to decide how to verify the revenue • information. Mr. Pato said that the City can look at copies of their subleases and audit their quarterly revenues. Vice Mayor Flury suggested the best way to do this was to send the City's auditors to verify the income and that she would also like to see a map of the site showing what is being leased from the City and what they own. She pointed out that the revenue base needs further review as the City will have to live with it for years to come. City Manager Pato explained that the biggest obstacle with the project is coming to an agreement on the formula. He said that the City can also ask them to provide a list of the improvements that are planned for the future. Director Leeds explained that Harbour Towne plans to expand their buildings towards an upscale marina with more sophisticated types of boats and buildings. He also said that because they are short on parking spaces and they also want some signage along Dania Beach Boulevard, the City is in a good trade position with them. It was the consensus of the Commission to have staff provide a map of Harbour Towne so that they could look at how many acres the City is leasing. City Manager Pato agreed to get the map to the Commission before the end of the week. City Attorney Ansbro explained that a few years ago he spoke with a person who does appraisals for marinas in Florida who is very knowledgeable on the subject. City Attorney Ansbro further said that if the Commission so desires, he could contact the appraiser to find out how much it would cost for his services. MINUTES 5 JULY 8, 2002 WORKSHOP MEETING Vice Mayor Flury pointed out that before another meeting takes place, the base figures • for the site must be verified and an appraisal completed so the City knows exactly what the property is worth, the income, what the City owns and what is owned by Harbour Towne. Growth Management Director Leeds explained that there is an area in the middle that Harbout Towne wants to enclose and expand which would eliminate a row of parking to have a big boat repair/service building and an indoor sophisticated facility that they could charge a higher rent on. Mr. Leeds further mentioned that they must obtain approval from the City regardless of who owns the land, so the City is in a good position from a negotiating stand point. Discussion followed among the Commission, City Manager Pato, Director Leeds and City Attorney Ansbro as to the large amount of money they are receiving and the small amount the City receives as part of the lease. Mr. Leeds further asked City Attorney Ansbro if a lease agreement could be created guaranteeing a percentage for the City for subleases from the principal tenants. Mr. Ansbro said he thought he could legally do that. Vice Mayor Flury suggested that the City ask for $500,000 a year, and maybe they would agree to pay $450,000. Commissioner Bertino mentioned that this is the way it was done in the old lease, but that the marina rentals went so high that the City hardly gets anything now. It was the consensus of the Commission to have City Attorney Ansbro contact the • person to do the appraisal and bring back the information to the Commission at a later date. 5. Adjournment. This meeting adjourned at 8:05 p.m. YBERT H'CHU JR.R-COMMISSIONER CHARLENE JO SON ITY CLERK Respectfu ly submitted by Miriam Nasser, Deputy City Clerk APPROVED: JANUARY 28, 2003 MINUTES 6 JULY 8, 2002 WORKSHOP MEETING