No preview available
HomeMy WebLinkAbout1981-12-16 - City Commission Workshop Meeting Minutesr F531`k r N0RTHV/VEST 88.H AVENUE: TAMARACo FLORIDA ::3;3:32`I TEL.EPH(; NE (:3015) 722-4900 December 8, 1981 Please be advised that the City Council will hold a Workshop Meeting on Wednesday, December 16, 1981 at 10:00 A.M. in the West Conference Room at City Hall 5811 N. W. 88th Avenue, Tamarac, Florida The Purpose of the Workshop Meeting is to discuss the Revised Water and Sewer Rates for Clubhouses. The City Council may discuss such other items as may come before it. The Public is invited to attend. Carol A. Evans, Asst. City C er Pursuant to Chapter 80-105 of Florida Law, Senate Bill No. 368: If a person decides to appeal any decision made by the City Council with respect to any matter considered at such meeting or hearing, he will need a record the proceedings and for such Purpose, he may need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is to be based. /lc 12/8/81 CITY OF TAMARAC, FLORIDA CITY COUNCIL WORKSHOP MEETING DECEMBER 16, 1981 CALL TO ORDER: Mayor Falck called the meeting to order at 10:00 A.M. Wednesday, December 16, 1981, in the West Conference Room at City Ball. ROLL CALL: PRE_SENT:•Mayor Walter W. Falck Vice Mayor Irving M. Disraelly Councilman Philip B. Kravitz Councilman Irving Zemel Councilwoman Helen Massaro ALSO PRESENT: City manager, Laura Z. Stuurmans Finance Director, Steve Wood Mayor Falck read the official notice of the workshop meeting which was for the purpose of discussing the Revised Water and Sewer Rates for Clubhouses. The City Manager read the Resolution by title because there were people present representing Tamarac South. She said since the largest utility _ that is being dealt with is the one on the west, the City has not addressed by Resolution a change on the east side. She said Council may want to consider this point today in their discussions. Messrs. Finck, Dunne, Davis and Willrich addressed the problems the south section has with the water meters. Mr. Wood was asked to explain about the cap. Mr. Wood explained that the Resolution reads that for a single family the allowed disposal charge would be up to 8,000 gallons per -month -so. -they are billed for two months by monthly basis. Anything used for sewer above 16,000 gallons would not be charged for. All meters in the south area are water and sewer meters; there are none that are just water or any that are just irrigation meters. however, if only 14,000 or 15,000 gallons are psed, you will only be billed for this amount. If you go over 16,000 gallons you will not be billed for more than 16,000. Mr. Wood suggested putting in a separate meter just for the pool and the residents questioned how they would go about this. They were told to contact Frank Cahill from Utilities East to get this moving. There will be a charge for the installation of this meter. The residents said they felt this would solve their problems. The City Manager said concerning the west, Council called this meeting to further discuss the initial review that was prepared by the Finance Director on November 30 and there have been subsequent memos issued by the Finance Director concerning this. There have been changes and this does have an impact as it relates to sewer on the Minimum Service Availability Charge beyond the 5/8" meter. Steve Wood said this might have been detected at the last meeting according to the minutes; it was brought up that there was no charge for a 2" meter. Temporary Resolution #2097 treats all meters regardless of size, under Section D of this Resolution, as 5/8" meters. There are many meters for clubhouses and homeowner's associations that are not 5/8" meters, therefore, there are other revenues that would be lost to the Citv. Thy Finance Director said that this Resolution was not intended to do that but that is the way it reads as it is written right now. C/W Massaro asked if it was determined what the losses would be. l - 12/16/81 /pm I1r. Wood answered that the losses in revenue amount to $21,799.20 if it is enacted the way it is currently written. V/M Disraelly asked if this is in addition to the $25,000 that was found in shortage before. Mr. Wood said it is; the total would be close to $50,000 for sewer revenues that would be lost and about $10,666.20 for water revenues. V/M Disraelly said the minutes of the November 30 meeting reflect that this was discussed. Mr. Wood said in order to incur the $21,799.20 loss the mailing service charge per meter size as it currently exists in the rate structure would need to be put in. The Monthly Minimum Service Availability Charge is by meter sizes. VA4 Disraelly asked if the meter size would off -set the additional $21,799.20. Per. Wood said it would if the current Minimum Service Availability Charge being paid on those meters based on the Commercial Minimum Service Availability Charge for that size meter were enacted; it would negate the $21,799.20 loss. Now, under single family residential, because they did not have any large meters for Minimum Service Availability Charge is $6.20 per month because these meters have a lot of consumption on them, there is the additional revenue. Many use 1-1/2" meters and some use 2" meters but very few use 5/8" meters. Most residences in Tamarac either have 5/8" or 1" meters. V/M Disraelly said that in multiple family homes they have a sewer charge based on the number of units in that building. Mr. Wood said the club- house is billed separately. For example, if it had 100 units it would be about $435,00 per month; per 100 units as the Minimum Service Avail- ability Charge. The clubhouses ,as Temporary Resolution #2097 reads, would pay $6.20 per month; this would be condominiums as well because the recreation facility of a condominium would also be a homeowner association recreation facility. C/W Massaro said there should be some discussion on the cap for the sewer. Mayor Falck asked about the makeup of the loss and how this was planned. The Finance Director said if Temporary Resolution #2097 were enacted and changed Section D to put in meter sizes for homeowners associations, then the City would be.back to a point where there would be a loss of only $14,414.40 for sewer revenues and $10,666.20 for water revenues. Then the City would be back to the $24,000 loss rather than the $50,000 loss. C/W Massaro asked if the City is ready to absorb a $14,000 loss in waste water revenue. Mr. Wood said each cap constitutes approximately $2,000 in reduction of loss. He said the cap is to limit the amount of the loss. Mayor Falck asked what is it that the City can live with without modifi- cation of the rates? Mr. Wood said the $50,000 loss is probably immaterial financially to the utility in the short term, there would be no immediate impact on rates by passing this Resolution as currently written. lie said he is not sure what the long term effect will be. The City Manager said that staff --wise they can not propose a loss of any figure, the amount should be addressed legislatively as staff indicated. Even as much as $50,000 is immaterial but the obligations under the indenture have to make everyone aware of the fact that we should be prudent in the review. This a1.tP,rrati_-,rp Wi i-h th- -ALn may he a Suggestion. She said she wanted to redirect the Council's attention to the fact that this Resolution is sponsored by CIM Kravitz. Staffs i.nnii.t i_s nnl�z advisory at this point. C/11 Kravitz said that,as sponsor of this Resolution he feels Council is going into the concept of the loss ,which is important but not for this Resolution. Fie said if the clubhouses are entitled to'a reduction of rates this is the primary factor. He said the City should give these people residential rates just as FP & L did, and if the structure of rates for water have to be revised, they should be. Ile said he received a memo from the Finance Director dated December 4 in connection with Resolution #2097 and he read the following: - 2 - 12/16/81 /pm "This approximate $25,000 loss is not material to the total estimated revenue derived from single-family, multi -family and commercial water/ waste water. As a. matter of fact, it is only 6/10 of 1%. 1 do not, in my opinion, feel that if this Resolution were adopted it will have any short term impact on the rates for Utilities west". C/w Massaro said the magic word is "short --term". She said she would like to know what the effect will be for long term. She said no one addresses the fact that any time FP & L wants to they can add an extra charge and manipulate the bills however they want. The City cannot do this. She impressed that they certainly agree consideration must be given. Mayor Falck asked for the definition of "short-term". Tyr. wood said certainly not for the balance of this fiscal year. There was a planned rate increase in 1983 and the $25,000 loss would probably not bring about a rate increase before the anticipated rate -increase anyway. V/M Disraelly asked if a change were made, would they have to get approval from the Assistant Consulting Engineer to make sure there is nothing in the bond indenture that is involved? He said Council would have to have a statement from the Consulting Engineer before they can make any rate changes because he has approved the rate changes before and is responsible for the bond investor_ to the bond holders. Therefore, the Council should. not take any formal action until a report is received from him and he makes aodetermination. Mayor Falck said at the time that this information is submitted to the Consulting Engineer, the different opinions that have been included here should be referred to him for his observations and recommendations. At this point, Mayor Falck opened the meeting to the people present. Alan Bernstein said there is a principle involved. Speaking for the President's Council, it has been the feeling that making an adjustment may be necessary to -compensate for the loss in revenue, but this should be a separate question. florally these clubhouses should be charged the residential rate and they feel the action should be taken now. He said in March a majority of the clubhouses in Tamarac compiled a summary of their bills for a period of one year. fie said these do not relate to the figures of the Finance Director at all. Fie, therefore, proposed that when an action is taken to revise the rates that the utility prepare a summary of every clubhouse involved, exactly what the size meters are, and exactly how much they paid month by month. This information should come from the utility. He said .they will probably discover wrong -size meters, high bills because of leaks, etc. Another resident said no one wants the utilities to take a loss of money and if necessary the rates should be.revised. fie said FP & L was ordered by the State of Florida Public Service Commission to readjust their rates. He referred to a state statute that was passed February 8, 1978 by the Department of Revenue that condominiums and cooperatives would not pay state tax, there was a ruling at that time and he read from a letter: "Homeowners Associations were exactly in the same category and should be granted the residential exemption from the utility tax ---which was done. Morally they are entitled to the residential rate and this should be granted, if it is necessary to revise the rates for the future then tnis should be done". Mr. Davis said he agrees that recreation facilities of sectional club- houses should be treated as a residential classification in all rate structures there are divisions even within the residential classification. A Resolution has been submitted which apparently treats recreation facilities like one -family homes; makes no provision for size of meters, makes no provision for the amount of water consumed. This matter has been pending for a long time but this is no reason to do things in haste - 3 - 12/16/81 /pm and erroneously. He would much rather see this done correctly. Mayor Falck said this item will be resolved at the January 13 Council meeting. V/M Disraelly said that the average monthly usage of these meters is 40,000 gallons. Ile said if you are going to use some number, if should be based on how many people are going to use this recreation_ facility. Ray Munitz said at no time has any member of Council opposed the concept Tape of having the clubhouses pay the residential rates. Since Council is 2 in favor of the idea, it then becomes a question as to what effect the financial numbers make on the overall rate structure of Tamarac Utilities. Alan Bernstein said a good deal of the problem exists bec aVoe of pods plumbing by the builders originally. lie read a one-year analysis of Sections 12 and 16: Month 1980 Islarch April (leak) May June July August (leak) September October November December 1981.January February Section 12 37,000 gallons 25,000 " 9,000 " 8,000 " 10,000 " no amount recorded 9,000 gallons 13,000 " 9,000 " minimum 8,000 " 6,000 Section 16 Total Bill was 33,000 gallons the same 25,000 If 30,000 If 36,000 It 32,000 if 21,000 If 40,000 " 34,000 " 43,000 " 49,000 " 152,000 If (leak) 33,000 it Mr. Bernstein went on to say that in Section 16, a single meter is used for the swimming pool and clubhouse;.and this is the same situation that exists in many areas In Section 12 there is one 5/8" meter serving the clubhouse and one 1-1/2" meter which is being used for the swimming pool and irrigation. This "average" of 40,000 gallons per month is an erroneous figure. Mayor Falck said necessary information will be accumulated between now and January 13 meeting. Residents from Tamarac South referred to their utility bills being raised about 50%. Mayor Falck explained that several residents who travel up north for the summer complained about a "base rate" because they are not home a few months out of the year and this would be unfair. However, because of this the rate changes would effect all. There was no further discussion, the meeting was adjourned at 11:15.a.m. ASSISTA14T CITY CLERK This public document was promulgated at a cost of $ or 1, $ ,/ per copy, to inform the general public and public officers and employees about recent opinions and considerations by the City Council of the City of Tamarac. - 4 - 12/16/81 /pm