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CCMtg07-07-08MinLONGWOOD CITY COMMISSION Longwood City Commission Chambers 175 West Warren Avenue Longwood, Florida MINUTES JULY 7, 2008 7:00 P.M. Present: Mayor Brian D. Sackett Deputy Mayor H.G. "Butch" Bundy, Jr. Commissioner John C. Maingot Commissioner Dan Anderson (left the meeting at 8:42 p.m.) Commissioner Mike Holt Teresa S. Roper, City Attorney John J. Drago, City Administrator Sarah M. Mires, City Clerk Tom Smith, Division Manager of StreetslFleet Richard Kornbluh, Division Manager of Utilities Ryan Spinella, Executive Assistant Carol Rogers, Director of Financial Services Laurie Mooney, Fire Chief Tom Jackson, Police Chief 1. CALL TO ORDER. Mayor Sackett called the meeting to order at 7:00 p.m. 2. A moment of SILENT MEDITATION was followed by the PLEDGE OF ALLEGIANCE. - 3. COMMUNITY ANNOUNCEMENTS. Ms. Minis read the following announcements: A. Family Movie Night will beheld on Thursday, July 10 and 17, 2008 beginning at 7:00 p.m., Longwood Community Building, 200 West Warren Avenue. B. Senior Matinee will be held on Wednesday, July 16, 2008 from 1:30 p.m. unti13:30 p.m., Longwood Community Building, 200 West Warren Avenue. This month's feature is Fool's Gold C. Florida Music tivill be held on Friday, July 18, 2008 from 6:00 p.m. unti19:30 p.m., Longwood Community Building, 200 West Warren Avenue. D. Why is my pet so itchy? I don't see fleas! will be held on Saturday, July 19, 2008, Longwood Community Building, 200 West Warren Avenue. CC 07-07-08/173 E. Bonsai Day-Class will be held on Saturday, July 19, 2008 from 1:00 p.m. unti14:00 p.m., Longwood Community Building, 200 West Warren Avenue. The cost is $30 and includes all tools, supplies, and instruction. F. A Blue Grass Pickin' will be held on Saturday, July 19, 2008 from 7:00 p.m. unti110:00 p.m., Longwood Community Building, 200 West Warren Avenue. G. Hypertension Management will be held on Monday, July 21, 2008 from 11:00 a.m. until 1:00 p.m., Longwood Community Building, 200 West Warren Avenue. 4. RECOGNITIONS. A. District #5 Presentation of the Business Person of the Month Award for July 2008 to Chad Register, General Manager of Papa John's International, Inc. located at 182 West State Road 434, Suite 1012. Mayor Sackett read a brief biography on Chad Register, General Manager of Papa John's International, Inc. and presented him with the Business Person of the Month Plaque for July 200.8. Photographs were then taken. B. Proclaiming the month of July 2008 as "Recreation and Parks Month." Mayor Sackett read a Proclamation proclaiming the month of July 2008 as "Recreation and Parks Month." He then presented the Proclamation to Mr. Drago and photographs were then taken. 5. BOARD APPOINTMENTS. None. 6. PUBLIC INPUT. A. Public Participation. Warren Brown, 100 Canada Avenue, Altamonte Springs, said September 13, 2008 Opening Day would be Babe Ruth's 20~' Anniversary. He invited the Mayor and City Commissioners, and the Parks and Recreation Department to join in the festivities. He stated Babe Ruth Baseball has an outstanding advanced program for tournament participation following the regular league play. The first step is District participation. They have been successful in placing five teams in the District competition. He announced the 9 year olds, in the 12 and under Division, won the State Championship this weekend. He introduced the leadership for the team, Paul Sostre and Robert Scott. Paul Sostre, 207 Bennett Street, Winter Springs, introduced the members of the championship team. Photographs were taken of the team and the City Commission. CC 07-07-08/174 Mr. Brown said it was going to cost $11,000 to $12,000 to travel and play in the tournament being held in West Virginia and any monetary help would be greatly appreciated. He presented to each of the Commissioners the official Longwood Babe Ruth Tournament Hat. Colleen Christian, 1065 Ridge Street, said they have had a visible increase of Police patrol since the last Commission meeting and it has helped diminish the speeding traffic through the area. She stated the awareness still needs to be there, as they still fly through the area when there is no Police presence. She said when the plans move forward for paving, speed impediments need to be considered in this area. David Nieves, 1091 Ridge Street, said the Police assistance over the last three weeks has been helpful. He stated this has given his family a sense of security knowing the Police have been in the area. He said they still have traffic issues and some of the employees across the street are still acting reckless when the Police leave. He affirmed they continue have issues from Land Rover and White Sands. He approached the Land Rover business through the realtor and inquired if they were going to paint the fence across from his house. The realtor said he doubts the owner wanted to repaint. He said he has heard issues that they were in an Industrial Zone -- and questioned if this was in City limits. He said their homes are not zoned Industrial and they are in the City of Longwood. He stated perhaps they needed to determine who tivas responsible to address these issues. Scott Christian, 1065 Ridge Street, thanked the Police Department for what they have done and there has been a great difference in the speeding. He lives across the street from White Sands, and it was open with a wall on each side of the driveway that has not been finished. He inquired if there were Codes that prohibit a business like this from being open. He stated there was no deterrent from crime. He said he hoped the Police presence would continue, so they can stay where they are now and feel safe. 7. CITY ADMINISTRATOR'SREPORT. Mr. Drago said if the Commission desired, he would have the Police Chief give an update regarding Ridge Street and their concerns. Chief Jackson said he and Lt. Cohen went to the area the day following the June 16, 2008 Commission meeting. He spoke with Ms. Christian on June 1.7th and advised her they would do their best to resolve their concerns. He stated over the next 21 days they had an area patrol that concluded today at 3:00 p.m. He gave a brief summary of the activity by the Police Department during this time. He said, .µ in addition, they did a 48 hour traffic study to measure the traffic and speed count. During this time period 227 vehicles passed this location, and a portion of this count was Police cars traveling to do the survey. He reported on the speed of the vehicles and the maximum speed observed was 37 miles per hour. He affirmed CC 07-07-08/175 they would continue to monitor this area. He said Land Rover moving out should cut down on the amount of traffic in the area. He advised there was a development in the near future for the property at the end of Ridge and State Road 434, and the concern regarding traffic calming devices and traffic control would be paramount. He said this was an unimproved roadway and it was unique in that some of the property to the east was incorporated and some was unincorporated. Property to the west was Commercial and light Industrial. He stated the wall they spoke about was a concrete wall at White Sands. He said in 2005 they complied with many of the City's Code issues. He advised they were researching whether they have the ability to require a gate or visual obstruction. He said the back wall to Land Rover was unsightly and they probably would not invest money for improvement since they were selling the business. He advised when the road is improved, there will be curbing and this tivill help limit access. He stated they would be back in the area with unmarked cars to monitor speeding. Deputy Mayor Bundy said, until a few years ago, commercial businesses were not required to put up a wall. He stated if they come in for a site plan for additional work, then the City could have them come into frill compliance. He said Land Rover had moved; and if the business coming in does any modifications, they will be required to come in with a site plan. Chief Jackson said when the road is paved, driveway access will be limited and there will be some grass maintained on the shoulder of the road. Deputy Mayor Bundy said they may want to consider more of a barrier during the design stage and additional traffic calming. He stated if it was inconvenient for the trucks to get in and out, perhaps they would start accessing from Highway 17-92. Chief Jackson clarified the only access for White Sands was from Ridge. He reiterated they would continue to monitor the area. 8. MAYOR AND COMMISSIONERS' REPORT. District #4. Deputy Mayor Bundy extended appreciation to City staff, the City Clerk, and the City Administrator for the job they did in making sure Board members and staff was informed during the illness and of the passing of Mr. Bob Lomax. He said he appreciated that all of the Commissioners attended. District #5. Mayor Sackett said Mr. Lomax would be greatly missed. He thanked Deputy Mayor Bundy for such a positive environment and his involvement in this situation. He stated Mr. Lomax's leadership was very valuable, and his position on the Codes Enforcement Board will be on the next Agenda. Mayor Sackett reported he had brought up at a prior meeting the nomination of Commissioner Maingot as Mayor of the Year. He said this needs documentation of concurrence from the Commission to move this forward. ~~ CC 07-07-08/176 Deputy Mayor Bundy moved to move forward to nominate Commissioner Maingot for Mayor of the Year. Seconded by Commissioner Anderson and carried by a unanimous roll call vote. Mayor Sackett reported he had a meeting with the Florida Department of Transportation and they commended our staff for doing a great job. He said things were moving in the right direction. Mayor Sackett said in driving through the City he noticed the "No Parking" signs in various areas. He stated these look unfriendly and inquired why we have so many of these signs. Chief Jackson advised the signs are placed in compliance with State Statutes. He explained how they should be aligned. He provided several examples of situations where problems had been encountered. Mr. Drago advised there is a swale on one side of some of the streets with no parking and curbing on the other side for parking. He said if they did not have the "No Parking" signs there would be more parking with damage to the s~vales. Mayor Sackett suggested Deputy Mayor Bundy provide a report at the next --- meeting regarding the County Commission meeting he attended on the development near his subdivision. He also asked for an update at the next meeting regarding the Pic'n Save property and the purchase of the property by Reiter Park. District #1. Commissioner Maingot referenced the memorandum from Mr. Drago dated July 2, 2008 regarding the Dix Lathrop property. He said this was perfectly handled by the City Administrator and he concurred with the waiving of the sewer connection fee. He thanked Chief Jackson and the Police Department for their efforts at Ridge and Talmo. District #2. Commissioner Anderson inquired if they were bringing up an Ordinance to allow the City to require the maintenance of approved site plans once the property is developed. Mr. Drago said he would check with Mr. Sizemore regarding this matter. Deputy Mayor Bundy said they do prohibit businesses from outdoor storage unless it is screened. He stated this might be an area they can enforce. Commissioner Maingot suggested Mr. Sizemore check into when White Sand . built the wall. They originally had a hedge prior to the wall being built. He said he believed a gate was also involved in this issue. Commissioner Anderson congratulated the City Clerk on her graduation. He also thanked Mr. Spinella for the communication that he put together. CC 07-07-08/177 Commissioner Anderson suggested a letter be sent to Senator Constantine thanking him for being an advocate and congratulating him for receiving the 2008 Home Rule Award from the Florida League of Cities. It was the consensus of the Commission to send.a letter to Senator Constantine. Commissioner Anderson said they received an electronic mail from Mr. Warren Brown regarding having a defibrillator at Candyland Park. He suggested exploring the possibility of having a defibrillator placed there. District #3. Commissioner Holt said there vas a lot of training involved with the AED. He stated with our response time and the Fire Department being located so close, he would suggest not utilizing the fiords in this manner. Commissioner Holt said most of the vehicles were going the speed limit at Ridge and Talmo. He said you always have those who will speed. He said the City was doing a great job to help the people in this area. 9. CONSENT AGENDA. A. Approve Minutes of the June 16, 2008 Regular Meeting. B. Finance Division of the Financial Services Department recommends payment of approved and estimated bills for July 2008. C. The Community Development Division of the Community Services Department recommends the City Commission approve an agreement between the City of Longwood and the First Pentecostal Church of Longwood to establish a special assessment for the construction of a parking area on Orange Avenue and authorize the City Administrator to sign the agreement. Commissioner Holt moved to approve the Consent Agenda as submitted. Seconded by Commissioner Maingot. Discussion was held regarding Item 9 C. Motion carried by a unanimous roll call vote. 10. PUBLIC HEARINGS. A. The Finance Division of the Financial Services Department recommends the City Commission read by title only and adopt Ordinance No. 08-1871 which amends the Fiscal Year 07/08 Budget. Ms. Roper announced having proof of publication for Items 10 A and 10 B. She then read Ordinance No. 08-1871 by title only. Mayor Sackett opened the public hearing. No one spoke in favor or in opposition to the Ordinance. CC 07-07-08/178 Commissioner Maingot moved to close the public hearing. Seconded by Deputy Mayor Bundy and carried by a unanimous voice vote. Commissioner Maingot moved to adopt Ordinance No. 08-1871, Item 10 A, as presented. Seconded by Commissioner Anderson and carried by a unanimous roll call vote. B. The Community Development Division of the Community Services Department recommends the City Commission read by title only and adopt Ordinance No. 08-1866 for a Small Scale Comprehensive Plan Amendment (SPA 01-08) (Future Land Use Map) from City Public/Institutional (PI) to City Neighborhood Mixed Use (NMU), for City otivned properties located on Church and Warren Avenue. Ms. Roper advised this was a quasi judicial hearing and if there was no one present to speak for or against the item, it could be treated as a regular Public Hearing. Ms. Roper read Ordinance No. 08-1866 by title only. Mayor Sackett opened the public hearing. No one spoke in favor or in opposition to the Ordinance. Commissioner Maingot moved to close the public hearing. Seconded by Commissioner Holt and carried by a unanimous voice vote. Commissioner Maingot moved to approve Ordinance No. 08-1866, as presented, Item 10 B. Seconded by Commissioner Holt and carried by a four/one roll call vote with Deputy Mayor Bundy voting nay. 11. REGULAR BUSINESS. A. City Clerk recommends the City Commission review the information provided by Orange County and Seminole County regarding a Code of Ethics, and give staff the direction deemed appropriate. Mayor Sackett said he and Deputy Mayor Bundy had previously asked for this item to be brought forward as an Agenda Item. He thanked the City Clerk for gathering the information. Deputy Mayor Bundy moved to table this to the next Commission meeting. Seconded by Commissioner Maingot and carried by a unanimous roll call vote. CC 07-07-08/179 B. Commissioner Dan Anderson recommends the City Commission read by title only and adopt Resolution No. OS-1194 supporting the initiation of a Lyman High School recycling program as proposed by the Seminole County Association of Student Councils and directing the City Administrator and appropriate City Staff to work with the Association and Lyman High School to establish a recycling program. Ms. Roper read Resolution No. 08-1194 by title only. Commissioner Anderson moved to adopt Resolution 08-1194. Seconded by Commissioner Maingot. Commissioner Anderson said this came up at two different CALNO meetings. He explained the School Board has the high school students leading the desire to have a recycling program at each of the high schools. He explained the benefits and minuses of the Resolution. He felt it would be appropriate for the City to express their support that this is a worth- while endeavor. He said Mr. Dolan has stated the bins cost $6.50 and the schools need 10-12 bins per school. He stated in Longwood there would not be an exclusive franchise for this service. Mr. Drago advised the School Board has exclusive contract rights with Waste Management. He said the School Board could send out a proposal for recycling and let everyone compete. Commissioner Anderson said part of the discussion was for the students to take responsibility for the containers and make sure they have been collected and placed in a centralized location for pickup. He stated he saw multiple dimensions in this, but it would be the School Board's responsibility to provide financing. Deputy Mayor Bundy said there was no funding; the City vas lending a voice. He said if they were going to be responsible for the collection, perhaps they could haul it to the recyclers and collect for it. Commissioner Anderson agreed this could be part of a fiscal stewardship. Mayor Sackett suggested the Resolution be amended to state, "A Resolution supporting the initiation of a Lyman High School Recycling Program as proposed by the Seminole County Association of Student Councils" he said to end it there and for $65-$100 to buy their recycle bins and let them run the program. Commissioner Anderson said he tivould support contributing the bins. Deputy Mayor Bundy said he didn't have a problem with staff helping to coordinate the effort. He stated to help develop and implement the CC 07-07-08/180 program part of the portion could be purchasing of $100 worth of recycle bins. Commissioner Holt said he would feel more comfortable to have a representative from Lyman High School educate them on what it will take to make this program successful. Commissioner Maingot said this was okay for the short term. He said hauling the recyclables was a profitable business. The students are passionate in the beginning, but soon lose interest. He stated along-term plan needs to be in place. Deputy Mayor Bundy said this Resolution was for help and support in the development and implementation of the Recycling Program. How to handle it and how to contract was not up to the City, and the City would have no control over this. Motion carried by a four/one roll call vote with Commissioner Holt voting nay. Commissioner Anderson left at this point of the meeting. C. The Finance Division of the Financial Services Department recommends the City Commission read by title only, set July 21, 2008 as the public hearing date, and approve the first reading of Ordinance No. 08-1870 which amends the Fiscal Year 07/08 Budget. Ms. Roper read Ordinance No. 08-1870 by title only. Mr. Drago advised the revenue source was from the cost recovery of non- residents in accidents where they are found at fault. He stated in the new budget it will be identified as revenue. Deputy Mayor Bundy moved to approve the first reading of Ordinance No. 08-1870 and set July 21, 2008 as the public hearing date. Seconded by Commissioner Maingot and carried by a unanimous roll call vote with Commissioner Anderson absent. D. The City Clerk recommends the City Commission adopt Resolution No. 08-1191, authorizing the ballot language for the proposed Charter amendments, as authorized by Ordinance No. 08-1861 and Ordinance No. 08-1868, to place the questions on the ballot for the November 4, 2008 General Election. w. Ms. Roper read Resolution No. 08-1191 by title only. CC 07-07-08/181 Deputy Mayor Bundy moved to adopt Resolution No. 08-1191. Seconded by Commissioner Maingot and carried by a unanimous roll call vote with Commissioner Anderson absent. E. City Administrator requests the City Commission discuss the placement of an additional driveway access to the rear of the property located at 791 North Wayman Street. Mr. Drago referenced the attached letters and said the property owner has been requesting a driveway access. One of the Associates in the City Attorney's Office suggested the matter be placed on the Agenda. He advised the property owner was aware the matter would be brought up, but he is not present. He reviewed the Policy and requested direction from the Commission regarding this matter. Ms. Roper advised the property owner asked for the matter to be placed on the Agenda for the Commission to consider whether or not to re-entertain their previous decision not to allow the variance. Mayor Sackett inquired if the property owner was asking for a change specific to his property, Ms. Roper responded in the affirmative. She said his argument was that when this first came about there was nothing to prevent him from having side access: Deputy Mayor Bundy said if someone lives on a corner lot, it is a more valuable piece of property, partly because of multiple accesses. He suggested perhaps they should have the Policy placed on an Agenda for discussion. He stated they have dealt with this issue with other people. He would like to see the Policy modified so there is an application process. He said the gate would need to swing in or be a lateral slide gate. He stated the Police Department should sign off on there being no public safety issues. There would have to be specific criteria and requirements. Deputy Mayor Bundy moved to table to the first meeting in August and at that time concurrently address modifying the Policy. Seconded by Commissioner Maingot and carried by a three/one/zero roll call vote with Commissioner Holt voting nay and Commissioner Anderson absent. The Commission recessed at 9:02 p.m. and reconvened at 9:07 p.m. F. City Administrator recommends the City Commission hear a presentation by Barnes, Ferland and Associates relative to the City's Consumptive Use Permit modification and the attainment of an alternative water supply and give staff the direction deemed appropriate. CC 07-07-08/182 Mr. Drago said some time ago they went through the water plan and all of the Cities contributed to it, coming up with a set of comprehensive recommendations. He said they were in the process of applying for a Consumptive Use Permit {CUP) and the Water Management District will require the City to obtain some alternative water supplies. He stated the City has been attending meetings at the Yankee Lake Water Plant at the County and there are some other water plant projects going on. He said in discussions with the Water Management District some other information came to light which the City has explored with the City of Winter Springs. He stated this presentation will provide more information regarding this. He said it.looks more attractive from a cost perspective and an operational perspective. He stated in part of the presentation they will be looking at alternative water supplies and discuss the feasibility of partnering with Winter Springs. Kristin Rombeck. Project Manager with Barnes, Ferland and Associates, said there was an Agenda Item a couple of months back for additional services associated with the CUP Project, particularly relating to assistance for modification to the permit. She advised the rules had changed during the permitting process. One of the main results of the rule changes was the creation of the Central Florida Coordination Area, and the n City of Longwood is within this area. She stated the rules were established by three Water Management Districts to develop consistent regulatory framework for regional water resource management. The new rules were put into effect February 2008. She said the first part of the rule was placing a limit on the groundwater allocation setting the horizon to the year 2013. They also established the requirement that you must participate in an alternative water supply project to meet any incremental demands beyond the 2013- allocation. A third requirement is the implementation of aggressive water conservation initiatives. She reviewed the background of Longwood's CUP and said compliance reports were due at 5, 10, and 15 years. She said the City's current permit has a significant allocation reduction in the year 2013 which is of concern and one of the reason's for going forth with the modification. She stated one of the reasons the allocation vas dropped was because during the permit process in 2002, the Water Management Districts had not completed their study and the development of the accumulative regional model. Dan Allen, Senior Vice President with Barnes, Ferland and Associates, said the Water Management District was trying to be consistent with the idea of there being a water shortage sometime around 2013. He stated there were many permits issued with a reduction in 2013. He said when they did the Central Florida Caution Area; they had better modeling techniques available and said they could go past 2013 with the present °°- allocations. Ms. Rombeck reviewed the Compliance Reporting Requirements. She advised that items a-c were satisfied by the City's participation in the CC 07-07-08/183 Seminole County Water Supply Plan. She said items d-f was tied to this permit modification. She stated at the time of the original application, the Yankee Lake Project looked as a viable option, but that is no longer the case. She said the modification was in process and it has not been approved yet. She stated there was one more submittal for July 11, 2008. She reviewed the ground projections and said they needed to look for alternative water supplies. She said they reviewed the potable water usage and they targeted irrigation for City facilities. Deputy Mayor Bundy inquired where they obtained the numbers for the population projection. Ms. Rombeck said they worked with the Planning Department and the Seminole County Property Appraiser contacts to review the vacant residential and commercial properties. They looked at what was left to be developed and they did a projection. The St. John's River Water Management District also had a consultant do a projection. She said they compromised to come up with these population numbers. She stated the number of connections and the number of people per household is also looked into as well. She affirmed they allowed her to use the higher number for the projections and this provides for a little more room with growth. Mr. Allen said it may be a little conservative on the front end. However, they are giving the City the allocation through the 2013 period. Anything after that period will have to be obtained from ariother source. Ms. Rombeck said the City has three options: Yankee Lake Project, State Road 46 Project, and the Winter Springs/Lake Jessup Project. She stated the third project is a very small surface water treatment plant. The plant is already designed and permitted. She said it uses surface water from Lake Jessup and the participants at this time are Oviedo and Winter Springs. She reviewed the other projects and the participants. She stated a fourth option is the Sanford Tri-Party Co-op involving Sanford, Lake Mary, and Seminole County. She said Winter Springs looked into this option, but they felt it was too costly. She reviewed the service areas. She said that Winter Springs, Oviedo, and Casselberry have plans and are working on agreements to interconnect all of their potable water systems. This is being done to offset transmission costs and make use of existing pipes. They are going to do the same with their reclaimed systems. She reviewed the distance for each project in regards to routing of pipes to Candyland Park. At this time, they are targeting servicing City facilities with reclaimed water. She reviewed the benefits of the Winter Springs/Lake Jessup Project. She reviewed costs for the treatment of potable versus reclaimed water and the transmission costs for the various options. She advised the most economical option is the Winter Springs/Lake Jessup Project. --~ Commissioner Holt inquired what would be at Candyland Park. CC 07-07-08/184 Mr. Allen said the City would have to add storage and pumping for the facility. Ms. Rombeck advised there were some mixing issues with ground water and potable water. She said this was one of the cost savings of choosing the reclaimed option. She stated for Candyland Park it would be in the City's best interest to do a ground storage tank and a high service pumping arrangement. If the City did choose to start a reclaimed water utility in the future, they would already have the facility in place. Deputy Mayor Bundy inquired how large of a ground storage facility would they need and what would the cost be. Ms. Rombeck said half a million gallon tank would be in the order of $400,000. Deputy Mayor Bundy said they had limited space at Candyland Park. Commissioner Holt moved to extend the meeting. Seconded by Commissioner Maingot and carried by a unanimous voice vote with Commission Anderson absent. Mr. Allen said at this point they were trying to compare alternatives as to what is the best alternative to pursue. Ms. Rombeck said to keep in mind they have a 20 year permit and what they are getting ready to submit is enough work to justify a new 20 year permit. She reiterated the most viable project was the Winter Springs/Lake Jessup Project. She advised to keep conservation of water in mind. She said a lot of utilities choose to do water restriction enforcement as part of their conservation initiatives. She stated charging higher rates for more usage initiates conservation. She said the recommended action would be to pull out of the Yankee Lake Project and authorize the City Administrator to pursue negotiations with Winter Springs for participation in the Winter Springs/Lake Jessup Reclaimed Augmentation Project. The Project schedule better conforms to the City's needs. She reviewed recommended actions such as updating the conservation ordinance. Discussion was held regarding how to pull out of the Yankee Lake Project. Commissioner Maingot said the City had a natural out with OUC having pulled out of the project. He stated the City was going to partner with OUC and now the cost for transmission is too high. Deputy Mayor Bundy said they needed to have a dialogue and handle this in a professional manner. CC 07-07-08/185 Mr. Drago said with the Yankee Lake Project, Seminole County was going to require all water to be purchased from the County and the wells would be secondary. He told them this would be cost prohibitive for the City. Deputy Mayor Bundy said the process of handling this properly was important. Mayor Sackett said he understands the Commission is agreeable to following these recommendations. However, they need to go through the process correctly, in a professional manner. He asked Mr. Drago what he would recommend for the next step. Mr. Drago said he would suggest starting with the recommended actions as presented. He stated he would set up a meeting with the County Administrator and explain the situation. G. City Administrator recommends the City Commission hear a presentation by PMG Associates, Inc. relative to the City's proposed water and sewer rate increase and give staff the direction deemed appropriate. Mr. Drago said the Agenda Item has tvvo rate tables. One is the table as ""~ proposed by Mr. Gonot and the Commission asked for a review of the volume users relative to increasing some of the rates. He stated the second table is provided and Mr. Gonot will explain some of the issues. Steve Gonot, PMG Associates, said he was here approximately eight months ago with a presentation on the utility rates. He stated he was here to focus on the water rates. He stated when they reviewed the water rates in 2000, they projected the rates for five years and they are now in the eighth year. He said they tried to condense some of the numbers after the comments and reviewing the minutes from the previous presentation. The most important overall affect is that they have to pass a rational nexus test to justify the rates. He affirmed the previous presentation said the City needed to have a conservation rate plan. He advised the rates currently in effect are not a conservation rate. He declared the Commission needs to act and the rates being presented address the rates for the cost of water plus maintenance and provide funding to address capital improvements for water and wastewater. He said the City only has 30% of the water users on the wastewater plan. The City's policy is to expand that and this allows for the expansion. He stated he was here to answer any questions. Deputy Mayor Bundy inquired what had been changed. Mr. Gonot said they looked at the high volume users, such as the hospital, and lowered those rates. CC 07-07-08/186 Deputy Mayor Bundy said the discussion involving the hospital was to look at what their usages were, whether the major use was irrigation or for need. He stated they were also looking at adjustments to allow for the more water used, the more they would pay. He said they wanted to see a larger spread. Mayor Sackett said the goal was to make the higher end user to decrease their usage in a monetary manner. He inquired what the usage for most homes was. Mr. Gonot said most residential homes were at 10,000 or under. Mayor Sackett asked what would encourage the homeowner to use less. Mr. Gonot advised the rates would because the charge is per 1,000 gallons. He said every 1,000 gallons conserved is a savings. He stated they were adding a 40% increase to the. water bill and this would impact the idea of conservation to the user. Deputy Mayor Bundy said he thought their point was that a 40% increase on the average residential user was more drastic than necessary on the lower end of the scale. Mr. Gonot said the rates were at an overa1140% increase. When looking at the higher end, there are new brackets that tivill provide greater revenue than the 40%. He explained that if the average user was at 11,000 gallons, once they reduce by 1,000 gallons, the models show, with the price elasticity, there will be a reduction. He stated the primary usage was going to be in the residential. He said with their pricing models at the high end, in the 60,000 to 80,000 range, they will generate the appropriate revenue needed to have the overa1140% figures. He stated they would anticipate the 10,000 gallon user to drop to 8,000 gallons. He explained, to offset that, they have put in the higher numbers on the higher end to come up with an overa1140% generation of revenues. Mayor Sackett suggested the subcategory of 0 to 10,000 be increased at 20% and all others at 40% to 45%. Ms. Rogers said in addition to implementing the conservation rates, they also have to increase the base rates. She advised they were not supporting the production. Mr. Gonot said when looking at their models and at the rates from the last time, they found that their projections within Longwood were pretty accurate. Based on their experience, this type of increase has worked. He stated they believe these rates will provide the City the revenue they need and also promote conservation. He said they were using brackets that have CC 07-07-08/187 been used in many municipalities providing the data needed for their projections. Commissioner Holt said the bottom line was that they had to raise the rates and justify the increase. Mr. Gonot said when you look at where Longwood compares with other municipality utility rates the only rate that is lower is Sanlando Utilities. He pointed that Sanlando's rates are the lowest in the State. Longwood's current rate is just above their rate. He stated the proposed rates for 2008, 2009, and 2010 are just higher than the rates for Winter Springs. He said their rates went into effect in 2006. Deputy Mayor Bundy said Sanlando Utilities service some of the Longwood residents. He stated they had the same information presented to them tonight as the prior presentation, with the exception of the very high end. He said they did not want the lower end of the spectrum hit as hard as the heavy users. He inquired where the bulk of their consumption-was. Mr. Gonot said it vas in the initial rate. He stated the vast portion of users was in the first group. Deputy Mayor Bundy said they may have more customers using less than "'~ 10,000 gallons a month, but where does the bulk of the usage of gallons come from. Mr. Gonot advised half of the City's consumption is coming from the lower end, residential usage. He said when they did the revenue projections they anticipate the savings to occur with a reduction at the lower end. However, they did put a higher price on the big users. He stated they would see the actual savings at the residential rate. He said with these rates they will be getting the conservation they are asking for. He declared putting in an additional bracket would not produce any different results. He stated they were trying to make an equitable distribution of the cost to everyone. Commissioner Maingot said he agrees with what was being presented. Commissioner Holt said they have to do something, and this was squeezing the rates as best they could. Mr. Gonot said the bills were going to increase by 40% and this pricing does encourage conservation. Commissioner Holt moved to accept the Previous Rate Proposal. Seconded by Commissioner Maingot and carried by a unanimous roll call vote with Commissioner Anderson absent. CC 07-07-08/188 12. CITY ATTORNEY'S REPORT. No report. 13. CITY CLERK'S REPORT. No report. 14. ADJOURN. Mayor Sackett adjourned the meeting at 10:56 p.m. Brian D. Sackett, Mayor ATTEST: C...._..~---' :~~ Sarah M. Mirus, CMC City Clerk CC 07-07-08/189 This Page Left Blank Intentionally. 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