1995-06-27 Special Meeting60Z
CITY OF OKEECHOBEE
SPECIAL MEETING OF CITY COUNCIL
SUMMARY OF COUNCIL ACTION
A. Call Special Meeting to order on June 27, 1995 at 7:00 p.m
B. Mayor and Council Attendance:
Mayor James E. Kirk
Councilmember Noel A. Chandler
Councilmember Michael G. O'Connor
Councilmember Robert Oliver
Councilmember Dowling R. Watford, Jr.
Staff Attendance:
City Attorney John R. Cook
City Administrator John J. Drago
City Clerk Bonnie S. Thomas
Deputy Clerk S. Lane Gamiotea
Mayor Kirk called the Special Meeting to order on June 27, 1995 at 7:02 P.M.
Clerk Thomas called the roll:
Present
Present
Present
Present
Present
Present
Present
Present
Present
REQUEST FOR THE ADDITION, DEFERRAL OR WITHDRAWAL III Mayor Kirk asked if there were any requests for the addition, deferral or withdrawal of
OF ITEMS ON TODAY'S AGENDA. items on today's agenda. There were none.
C. NEW BUSINESS
1. Discuss the Utility Authority - Mayor Kirk. IIIdiscussionMayor Kirk yielded the floor to Attorney Mike Minton of Dean, Mead and Minton to begin
concerning the Master Transfer Agreement for the Utility Authority.
Attorney Minton explained he and his staff had met with the Board of County
Commissioners and they voted five to zero to approve the intent of the Master Transfer
Agreement and to an up -front one time $3 million payment to the City.
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PAGE 1 OF 3
C. NEW BUSINESS
1. Discuss the Utility Authority.
JUNE 27, 1995 SPECIAL MEETING - PAGE 2 OF 3
Okeechobee Beach Water Association (OBWA) also met with Attorney Minton's staff
today and they also voted five to zero to approve the intent of the Master Transfer
Agreement and an up -front one time $3 million payment to the City.
Gerry Hartman of Hartman and Associates addressed the Council concerning the
discrepancies between his report and PMG and Associates report of the worth of the
City's utility system. Following lengthy discussion between Council, Mr. Hartman and Mr.
Gonot, Mr. Hartman explained to the Council that when the final transfer of all items is
complete there will be a "true up" cycle and if there is more money in the system than
what is listed in his report the City gets to keep it. If there is less money the City has
to pay more.
Councilmember Oliver moved to approve the Master Transfer Agreement and a $3
million cash out; seconded by Councilmember Chandler.
Councilmember Watford questioned if OBWA had to also do this? Currently that is not
how the Master Transfer Agreement is set up. Councilmember Watford was very
concerned about this issue and suggested that wording be added to the Master Transfer
Agreement protecting the City because if the City has to come up with additional monies
then so should OBWA if assets are lower at the time of closing. Mr. Hartman is to take
care of this with a letter analyzing this issue.
Discussion ensued. City Attorney Cook advised that the Master Transfer Agreement
should not be approved, but the intent of the Agreement to allow Mr. Minton and his
staff to move forward and set the public hearings to then adopt the Master Transfer
Agreement.
Councilmember Chandler removed his second to the motion. Councilmember Oliver
removed his motion from the floor.
vA
C. NEW BUSINESS
1. Discuss the Utility Authority.
Adjournment - Mayor Kirk.
PLEASE TAKE NOTICE AND BE ADVISED that if a person decides to appeal any decision made by
the City Council with respect to any matter considered at this meeting, he/she may need to insure that
a verbatim record of the proceeding is made, which record includes s 'mony and evidence upon
which the appeal is to be based. A tape recording of this meetin is on fil in the City Clerk's Office.
A i
James E. Kirk, Nfayor
ATTEST:
242
onnie S. Thomas, CMC, City Clerk
JUNE 27, 1995 - SPECIAL MEETING - PAGE 3 OF 3
Councilmember Oliver moved to approve the intent of the Master Transfer Agreement.
a $3 million up -front "cash out" payment and "true up" cash at the end; seconded by
Councilmember Chandler.
Mayor Kirk stated he needed to comment on an item before the vote was taken. He
then publicly apologized to County Administrator George Long for his behavior at the
last Council meeting concerning the gas tax issue. He further stated that he had met
with Mr. Long and apologized to him in person and wanted to also do it publicly.
Vote on motion is as follows:
KIRK
CHANDLER
O'CONNOR
OLIVER
WATFORD
MOTION CARRIED.
The Public Hearing to adopt the Master Transfer Agreement is set for July 11, 1996 at
6:00 p.m.
There being no further items on the agenda, Mayor Kirk adjourned the meeting at 8:55
p.m.
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ECONOMIC, MARKETING AND MANAGEMEN f CONSU4TANTS
Jane 22, 1995
Michael Minton
Dean, Mead & Minton
1903 South 25 Street
Suite 200
Fort Pierce, Florida 34947
VIA: FAX
Pursuant to your memorandum of June 21, 1995, I ha a included the
following information which will provide Hartman & kssociates.with
the opportunity to properly analyze our report on the value of the
_- City of Okeechobee Utility System. It must be noted that all of
this information is already in their possession. I will address
each question as posed.
1. Schedule of &swats:
The Balance Sheet from the Audited Financial
September 30, 1994 shows the Fixed Assets net 4
The Depreciation Report included in the Ha;
Exhibit 1, and incorrectly identified as an
lists the depreciation amount and the complet,
Work -In -Progress is found in the notes to tl
1994 Financial statements.
2. Schedule of work in progress:
work -In -Progress is found in Exhibit B. All
obtained from the City Finance Department.
3. The $485,296 in the Budget:
tatements dated
f depreciation.
tman report as
Asset Listing,
d Fixed Assets.
a September 30,
formation was
This figure was not used since it is immaterial. Budgets are
not official financial statements and cannot relied upon for
valuation purposes. We did not use this amount in our
analysis, nor should have the Hartman report.
Any cash receipts or payments relating to th operations is
found in the 536 accounts. These account balances are found
in Exhibit C, titled the Fund Position Report.
A. Xxoprovement & Replacement Fund balances:
All fund balances are found in the Fund osition Report
(Exhibit C). The report submitted was for April 30, 1995.
Additionally the report for September 30, 1994, is included as
Exhibit G. The net effect of the additions or subtractions
can be made by comparing the two numbers.
3880 N. W. 2ND COURT - DEERFIELD BEACH, FLORIDA 30442 - (305) 427-5010
S.
6.
7.
i
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Revenue rand balance
The Operating Revenue Fund is the one referre
536. The Exhibits C and G show the figures
9/30/94 respectively! There has been a subst
in this fund over the seven months of this fi:
have projected activity for the remaining five
fiscal year.
Li$tiaQ of "All Othe Asset$"s
All Other Assets includes prepaid expense
amortized over time.. The figures in this
unamortized amounts.!
I
Difference of Principal Payments:
We did not use the 11993 Financial Statemer
inappropriate to do 6o. The Exhibit D list
payment amount. However, I have since le
schedule used only included the 1992 Series.
the previous issues ere not included. The p
amount for Fy 1994/1995 is actually $310,00
should be deducted from the Long -Term Debt li
the September 30, 19,J4 Balance Sheet.
3 to as Account
.or 4/30/95 and
intial increase
cal year and we
months of this
items that are
column are the
is since it is
s the principal
earned that the
Principal from
incipal payment
0. This figure
ne item found in
The result: :`o£' his �ction ;: 9 . that;.,h6w-- cot omK1.ine off the
va uat oi�, forJ:the:;Cit .e,.of. Okeechobee'TUtrlity System hould..b�
.inc;zdA-9*&q59$1°85 �00 4
I hope that the above information answers your questions. If you
have any additional quest ons, please call on me.
very truly yours,
PUG Associates, Inc.
�hili M Gonot
vice Pre ident
cc: John Drago
Marco Rocca
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Men r,r..cS rL9011Pw A4064.I)a7
DEAN, MEAD b MINTON
^TronNcY% AND C01JN1S9L0118 AT L~
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June 21, 1995
VIA TZL3FU AND RBGMAR X IL
Philip M. Gonot
Vice President
PXG ASBOCIJ1T88, Ilgc .
388o N.W. Znd Court
Deerfield Beech, Ft. 33449
(a0» a04•7700
(-Os) •Oi-rroo
rAt f-011 as.a•yery
Re: Okeechobee Utility Authority/City of Okeechobee
Utilities
Dear Mr. Gonot,
Now that we have had an opportunity to review your
"Port, which wO.g issued last evening to we
the City Council, have a nuanber of questions and platters would like to discuss
not
we
with you and to receive your. backup matwe erials which included with your report. attached is a list from erco Rocca
Of Hartman � Ansociotaa, Inc. Please forward the re acted
materials as soon as possible, preferably by Friday, June d
2995, via fax or Femoral le,
With one copy to my office and
23,
oae to Rartmen >� AssoGjatea, Inc., attention Marco R oca.
Thank you.
cc:' Mnpor James Kirk
City banager John orago
Jack Coker
Kim Love
Mike Rocca
Kennetb C. Crooks, Xgq.
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exWneerS. hvarogtologists, surveyors A manqcmcut con;at
MEMORANDUM
TO: Michael hf nton, Esquire
FROM: Marvo H. Rocca A�
DATE: June 21, 1995
3UBnCT: Vdantion Rcpori Prepart o by PMG A.esoclatos, Inc.
c.
FIAT >�94120.01
4AKW 44L
yA �CIMW�Q.ei.
The Valuation Report prcpamd by PMG Associates, Inc. lacks certain d taped data required for
us to fully understand the results shown. The following infurmatiun Would be helpfltl:
1. Schodulo of assets with their original value and accumulated
2. ggheduie of work in pro ess_ including a listing of Rending aourc s showing the transfers
to and payments from etch individual account.
3. Schedule showing where the 3485,296 identified in the 536 Budg t is coming Bom (which
cash aocount(s)).
4. Itemized schedule showing the begintiuig balance (suppo ed), transfers in and
expenditurss from the Improvement Xc Replueement Fund.
S. Itemized schoduie showing the beginning balance (supported), transfers in and
expenditures from the Revenue Funds (51,023,000).
6. lasting of what comprises the "All Other Assets",
7. Why is there a diffcirnce between the principal payments shown in tho tlscal year 1993
Gent ral ftrpose Financial Statement; and that shown an PMG'S Schedules i and 27
End of Memorandum
MiiR/kh/C3/Mittton 1 Q.mhr
101 BAST FIN? STREIT • SUITS 1000 • 01MAND0. ri 32001
TCLLI'itONE (407) e39•591S • FAX (407) a39•s799