Fort Walton Beach Council minutes — 01-26-2010 special — reading text

71 MINUTES OF THE SPECIAL COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA JANUARY 26, 2010 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, January 26, 2010, at 5: 00 p. m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes, Virgil Miller, Dennis Reeves ( arrived at 5: 50 pm), Bill Garvie, Bobby Nabors, Bill Patterson, and Dick Rynearson Also Present: Robert Mearns, City Manager; Helen Spencer, City Clerk; Toni Craig, City Attorney; Department Directors and Media CALL TO ORDER The Mayor called the meeting to order and welcomed everyone. He requested anyone who wished to address Council to approach the podium after being recognized, then state his or her name and address for the record. PLEDGE The Mayor led in the Pledge of Allegiance. APPROVAL OF AGENDA Mr. Garvie moved to approve the agenda as the business of the day. Mr. Rynearson seconded motion and it carried unanimously with Holmes, Miller, Garvie, Nabors, Patterson, and Rynearson in favor (Reeves absent). PURPOSE OF MEETING The Mayor explained the purpose of the meeting is for a presentation and discussion of the utility rate study findings and recommendations. He noted no action would be taken this evening, and that Council would vote on the issue at a future meeting. PRESENTATION OF UTILITY RATE STUDY FINDINGS /RECOMMENDATIONS Michael Beedie, City Engineer, advised that at the August 11, 2009 meeting, Council approved a rate study to address revenue sufficiency and the capital needs that must be addressed due to the City's aging infrastructure. Mr. Beedie continued that the City has entered into an Interlocal Agreement with Okaloosa County to treat the City's wastewater because of the high cost of renovating the City's current treatment plant, the lease of the spray fields was unknown, and the effect on any bond issues because of the current status of the economy. Mr. Beedie noted the proposed rate increases will provide additional revenue needed in the City' s current fiscal year. Mike Rocca from the firm of Brown & Caldwell was present to give a presentation on the company's findings and Don Berryhill of Angie Brewer & Associates was present to answer any questions regarding SRF funding. Mr. Rocca presented the company's findings to the Council and discussed such items as a rate structure that is appropriate for the City, revenue sufficiency, and providing for capital improvements. Mr. Rocca explained that rate increases are designed so that the low -level users,customers that use 2000 gallons of water or less per month, will experience less of an impact than the high -end users, thereby encouraging conservation and providing for just and equitable rates. 72 Special Council Meeting 1/ 26/ 10 RATE STUDY PRESENTATION ( CONT) Mr. Rocca' s presentation included discussion of billing events per rate increase by customer class; explained the increase of typical bills for a customer; CIP sources and uses; and typical bill comparisons with neighboring municipalities. Mr. Rocca concluded that the firm' s preliminary recommendation is to adopt the proposed rate adjustments included in the study for fiscal year 2009/ 10 beginning April 1, 2010; to adopt the schedule of proposed rate adjustments included in the study for fiscal year 2010/ 11 through 2013/ 14 with effective dates of October 1, 2010 and October 1 of each succeeding year thereafter; have City Staff manage a CIP funding program that incorporates the use of long term debt to supplement reserve fund expenditures; and to reevaluate the water and wastewater rates periodically or whenever significant changes occur in the cost, debt service or method of delivery of utility services. The Mayor asked if there was any public input. Mike Roche expressed his feeling that this is a bad time to consider increases due to the economy, with job losses, a down turn in job revenues, and foreclosures. Brian Phillipson, 814 Linda Drive, Mary Esther, said the citizens are getting squeezed from all sides and this is another 20% increase on the water bill, and asked Council to be serious about considering raising rates. The Mayor stated he and Council take the budget very seriously, they understand the issues, and are not `glib' about this issue. Christine McPherson received clarification that the study cost $ 49, 500 and was financed through the City's Utility Fund, which comes from water usage and is an enterprise fund. Ms. McPherson was also informed that the use of well water consumption by residents is not a part of the study, and that the entire study will be available on the City's web site. Kabe Woods, 240 Brooks Street, received clarification that the increases are needed for operational expenses because of the City's Interlocal Agreement with the County to treat the City' s wastewater. The City Manager advised the next step is for the City to provide a copy of the resolution to each rate payer, which will be included in their water bill. He continued the resolution will be read and voted on at the March 9 City Council meeting, and that residents are invited to contact Council between now and March 9 with questions they might have. ADJOURNMENT There being no further business, the meeting adjourned at 5: 58 pm. AIML APPROVED: MAYOR: Ala ATTE T: L tl i C Y CLERK Ive