Fort Walton Beach Council minutes — 08-13-1964 Special — reading text

142 MINUTES OF SPECIAL MEETING OF CITY COUNCIL OF FORT WALTON BEACH, FLORIDA August 13, 1964 I A special meeting of City Council, City of Fort Walton Beach, Florida, was held at City Hall on August 13, 1964 , at 9: 00 A. M. with the following members present: Mayor Pro Tem C. H. Long Councilman S. L. Rogers Councilman Fred Tolbert Councilman C. H. Rigdon Councilman H. H. Carnathan Councilman Jimmy Ready Councilman Joe Guidry and City Manager, City Clerk- Finance Director. In addition the following builders were present: Al Destin, Bill Lord, Henry Martin, Mr. McClellan, Ronald Blake, Wayne Patton, and Horace Higdon of the Commonwealth Corporation. Mayor Pro Tem Long opened the meeting and stated it was called to discuss the possibility of raising the sewer tapping fee from $ 225. 00 to $ 300. 00 for expanding the present sewer plant and for constructing a new plant for the newly annexed areas near the Golf Course. Manager explained that there was overload on existing plant due to infiltration in the older sections and the growing population, plus the annexation of some 600 building lots, and the possibility of a high school and junior college in the section near the golf course. He explained that the Public Works Committee had recommended the raising of the fee as a means of acquiring the financing to do this expansion - the extra monies over a period of time would help take up the slack. He stated further that Council had not passed on the committee recommendation until this meeting could be held to talk the matter over with the builders. I Mayor Pro Tem Long asked if any of the builders present anything to say on the matter. had 143 Al Destin said he had hurriedly obtained some of the fees from other cities naming Valparaiso sewer tapping fee $ 25. 00, Crestview $ 60. 00, and Tallahassee $ 25. 00 for water and sewer, Pensacola $ 100. 00 for sewer and $ 5QPO for water. He said he realized these were not all fair comparisons, but he felt there should be some other way of financing this need. He mentioned valuations of lots given by VA and FHA. He said they already had the evaluations and if the cost were to go up now, builders would stand a loss. Mayor Pro Tem Long asked what the cost for sewer tapping to the City was. Manager reported the cost to be $ 225. 00 to 300. 00. Councilman Ready questioned the water tapping fee, asking for the actual cost to the City. Answer was $ l85. 00 and 191. 00 to serve a lot with water. Mr. Destin stated that the VA Handbook gives the national average for a sewer tap as $ 30. 00. There was much discussion about the fact that if costs were raised, builders would possibly, not be able to get VA and FHA to raise evaluations of building lots when getting committments and would therefore stand to loose money. Mr. Lord said he had just experienced a similar situation in Mary Esther and had not been able to get VA to recogpize the raise in tapping fees. Mr. Ronald Blake stated that he sat in on the recent meeting with FHA Director Howard Thompkins and Mr. Revels of FHA and after the meeting, he asked them again if they would recognize this additional cost and both assured him that they would. He said if costs were raised, and City notified both agencies by letter, he believed they would recognize the increase. He urged Council to make a decision and said he was in favor of whatever it took to get the job done. He mentioned that he had worked in other cities where the tax rate was much higher and had noticed that people were not prone to retire in areas where taxes are high. He said that Bill Lynn, president of the Builders Association could not be present but that he was in favor of the higher tap fee if that is what it took to get the job done.  144 Mr. Henry Martin stated his agreement with the raise. Wayne Patton said he felt that was the only answer. He said the sewer tap in Eau Gallie and Cape Canaveral was much higher. Mr. Lord asked that FHA and VA be contacted to go on record that they would recognize this increase in fees. I City Manager reiterated that FHA Director Thompkins had been over twice within the past thirty days and had said they would recognize. He suggested letting both agencies know by letter of the increase to make it a matter of record what the fees are. The possibleeffective date was discussed. Manager reported that there were some cases where assessment rolls had already been set up and agreements made in which the old fees would be effective, i. e., Bayou Woods 2nd, Bayou Woods 1st, Vesta 4th, and Santasia 5th. He suggested that if council put this into effect immediate" he could proceed with immediate expansion work. He suggested that if Council put this into effect immediately, he could proceed with immediate expansion work. Mr. Lord said he and Mr. Strachan were just ready to make arrangements on Santa Rosa SiD and asked where they would stand on the fees? Manager reported that no agreements on financing had been made on this subdivision. Mr. Rogers commented that every possibility ought to be, explored. He felt the $ 225. 00 tap fee was plenty, asking if there were. any way to re- finance to obtain funds for the needed expansion . Manager reported that general obligation bond issue would take a great deal of time and refinancing of ourstanding sewer certificate would not be good fiscal policy because of expiration dates on certificates, which would cause City to have to to pay premium to recall same. Mr. Rigdon cODmlented that he felt $75. 00 wouldn' t " break" the builders. Mr. Martin said that Mr. McClellan had had wide experience in estimating for FHA and VA allover the Southeast. I Mr. to McClellan said that in most cities, builders are required install sewer and upon completion, dedicate system to the municipality, paying a small tap- on fee. He said that when term " sewer tap fee" is used, generally means installation 145 of entire sewer He said he felt FHA and VA would system. not recognize fees such, as that what they did do when appraising property is to consider costs of the installa- tion of sewer system for land in question and that is put into evaluation. He said he felt no builder wanted to go into putting in sewer systems and felt they were fortunate in this area to have this job taken out of their hands. He said the $ 300. 00 fee was reasonable. Mr. Ready commented that he would like to settle water and sewer tap at present time. Mr. Carnathan said that when the water tap fee was mentioned in Council, he was the one who suggested that it be put in Finance Committee and his reason was that he wanted to see first if FHA and VA were going to recognize it too. Mr. City Clerk- Finance Director, added that the total Evans, assessment in Vesta 4th ( portion now under constructiDn) is approximately $ 50, 000. 00 and the total cost to the City will be in excess of $ 80, 000. 00. There was a general discussion of the difficulties in getting the agencies to raise the property evaluations in this area. Mr. Lord said the Builders Association had been working on this for three months and had no success. Mr. Lord and Mr. Strachan asked Council to indicate how Santa Rosa S/ D fees would be handled. He said they were ready to go and if Council raised fees in this meeting, they would be caught. Councilman Rigdon moved that sewer tap be raised to $ 300. 00 and water tap be raised to $ 150. 00 ( minimum 3/ 4"). Motion seconded by Councilman Ready. Councilman Carnathan amended motion that City immediately advise VA and FHA of the tapping fees for water and sewer asking for written comments from them as to whether or not they will recognize them. Amendment seconded by Councilman Rogers. Amend- ment and second were withdrawn. Vote to original motion was aye unanimously. Councilman Carnathan moved that City Manager immediately contact FHA and VA asking them if they would in writing give the City comments on this additional cost. Motion seconded by Councilman Ready, and the vote was aye unanimously.  146 Mr. Carnathan commented that if the City, Realtors, and Builders could get together with these agencies, perhaps a concerted effort might get evaluations raised. In other business, Manager reported that HD- ll dozer needed repairs and estimate from Ballard was $ 2, 100. 00. Council I authorized repairs to this dozer at a cost not to exceed 2, 100. 00 on motion by Councilman Rogers, seconded by Councilman Guidry. Finance Director asked Council to be considering the fact that the City charges $ 7. 50 per foot for streets and as a courtesy had been clearing and grubbing streets, and if subdivider were required to do this clearing, City' s con- struction cost would be reduced and more in line with the 7. 50 charged. Meeting adjourned at 1: 00 A. M. APPROVED: f)()~1& y I~ /' MAYOR:~/~~ ATTEST: elr-L IJ. d?- o- A I