1991-05-07 Regular MeetingV1 uy U1 VnL;UuliU uCC
C I T Y C O U N C I L M E E T I N G
May 7, 1991 - 7:00 P.M.
SUMMARY OF COUNCIL ACTION
A. Call meeting to order.
B. Invocation offered by Pastor Dale Tweedalel;
Pledge of Allegiance led by Mayor Kirk,
C. Mayor and Council attendance:
COUNCILMEMBERSIACTION
Mayor Kirk called the meeting to order at 7:00 P.M.
Invocation by Pastor Dale Tweedale;
Mayor Kirk led the Pledge of Allegiance.
Page 1 o6 14
Mayor James "Jim" Kirk
Present
X
Councilmember R.R. "Nick" Collins
Present
X
Councilmember Danny Entry
Present
X
Councilmember Jerry E. Walker
Present
X
Councilman Dowling R. Watford, Jr.
Present
x
Staff attendance:
City Attorney John R. Cook
Presen'
X
City Administrator John J. Drage
Present
X
City Clerk Bonnie S. Thomas
Present
X
City Deputy Clerk S. Lane Earnest
Present
X
D. Motion to dispense with reading and
approve the Summary of Council Action
for the regular meeting for April 16,
1991.
Cour.cilmember'Collins made a motion to dispense with reading and
approve the Summary of Council action for the regular meeting of
April 16, 1991; seconded by Councilmember Entry.
KIRK
X
COLLINS X
ENTRY X
WALKER X
WATFORD X
MOTION CARRIED.
7, 1991 - Requ2a4 Meetinq - Page 2 o6 14
0
E. Motion to approve the Warrant Registers
for the month of April, 1991:
General Fund ...... $106,434.60
Public Utilities..$176,725.13
REQUEST FOR THE ADDITION; DEFERRAL OR
WiTHDRP,WAL OF '_TEMS ON TODAY'S AGENDA.
F. NEW BUSINESS
1. Motion to appoint Ruth Ellen Smith as
the new executive secretary - City
Administrator.
COUNCHMEMBERS/ACT ION
Councilmember Watford made a motion tc approve tl-_e ,:arrant
registers for the mont— . of March, ' 991 , General Fund $129; 049.82
and Pubic Utilities $'i?,604.89 and the warrant registers for
April, 1992, General Fund 5106,434.60 and Public Utilities
$176,725.13; seconded by Councilmember Collins.
KIRK
COLLINS
ENTRY
WALKER
WATFORD
MOTION CARRIED.
None.
Councilmember Col 'ins made a motion to appoint Ruth Ellen Smith
as the new executive secretary (assigned to the Administrator);
seconded by Councilmember Entry.
KIRK
COLLINS
ENTRY
WALKER
WATFORD
MOTION CARRIED.
Administrator Drago introduced Mrs. Smith to the Council. Mayor
Kirk extended a welcome from the Council.
2. Motion to award the purchase of a tracto Councilmember Collins made a motion to award the purchase of a
to Ford New Holland of Tucker, Georgia i tractor to Ford New Holland of Tucker, Georgia in the amount of
the amount of $11,519.00 - Director of $11,519.00; seconded by Councilmember Entry.
Public Works (Exhibit 1).
VOTE
YES 1 NO
X
X
X
X
X
X
X
X
X
X
May 7, 1991 - RequZan Meet'ng - Page 3 ab 14
F. NEW BUSINESS CONTINUED
2. Continued . . . .
3. Motion to approve a partial pay request
to Sharp Construction in the amount of
$82,446.36 - Interim Director of Public
Utilities (Exhibit 2).
4. Motion to approve the closing of 3rd
Street between North and South Park
Streets beginning at 6:00 P.M. on May
17, 1991 - Mr. Larry Lanier (Exhibit 3).
COUNCILMEMBERS/ACTION
Vote on motion as follows:
KIRK
COLLINS
ENTRY
WALKER
WAT.FORD
MOTION CARRIED.
Director Elders explained in a memo to the Council that the bid
#PW-1-00-04-91 was for a tractor and a mower, however he had not
been able to inspect the lowest bid mower and was requesting it
be postponed. The tractor went to the second lowest bid as
opposed to the lowest due to the fact the lowest did not meet
minimum specifications.
Councilmember Entry made a motion to approve a partial pay request
(number six) to Sharp Construction in the amount of $82,446.30
(for the remedial work); seconded by Councilmember Collins.
KIRK
COLLINS
ENTRY
WALKER
WATFORD
MOTION CARRIED.
Armed Forces Day Celebration -Welcome Home Military Troops of
Desert Storm.
Councilmember Entry made a motion to close 3rd Avenue between
North and South Park Streets beginning at 6:00 P.M. on May 17,
1991; seconded by Councilmember Collins.
(The avenues are to be re -opened Saturday night after the
celebration is over.)
VOTE
YES I NO
X
X
X
X
X
X
X
X
X
X
7, 7991 - Reaufan Mee-tina - Paae 4 of 14
F. NEW__BUSINESS CONTINUED
4. Continued
5a. Motion to read by title only, and set
May 21, 1991 as a public hearing date
Ordinance 636 amending Chapter -1 of ch._-
Code of Ordinances - City Attorney
(Exhibit 4).
5b. Motion to approve the first reading of
Ordinance 636.
COUNCILMEMBERS/ACTION
KIRK
�OLLINS
ENTRY
WALKER
WATFORD
MOTION CARRIED.
NOTE: ALSO SEE ITEM NUMBER SIX UNDER COUNCIL REPORTS AND/OR
REQUEST - MOTION FOR 4TH AVENUE TO BE CLOSED ALSO.
Councilmember Watford made a motion to read by title only and set
May 21, 1991 as a public hearing date; Ordinance 636 amending
Chapter = of the Code of Ordinances; seconded by Councilmember
Entry.
KIRK
COLLINS
ENTRY
WALKER
WATFORD
MOTION CARRIED.
Attorney Cook read Ordinance 636 by title only as follows:
"AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING SECTIONS 2-1
AND 2-2 OF THE CODE OF ORDINANCE PROVIDING FOR AN EFFECTIVE
DATE."
Councilmember Collins made a motion to approve the first reading
of Ordinance 636; seconded by Councilmember Entry.
Councilmember Watford made a motion to amend Ordinance 636 by
leaving section one, sub -section two to just strike "all" and
section two first paragraph to remain as is with the word Deputy
Clerk changed to Finance Director, with the following sentence
"one of the two signatures must be by an elected official",
deleting the proposed section two paragraph. Motion died for
lack of second.
VOT E
YES I NO
X
X
X
X
X
X
X
X
X
X
7, 7997 - Reau&n Meet�na - Paae 5 of 14
F. NEW__BUSINESS_CONTINUED
5b. Continued
6. Motion to invite the County Commission,
Department of Environmental Regulation,
South Florida Water Management District,
Williamson Cattle Co./Okeechobee Groves
Co., business community of Okeechobee,
the citizens of Okeechobee and the City
Council to tour the water treatment plans
and the reclaimed water project - Counci�
member Jerry Walker (Exhibit 5).
COUNCILMEMBERS/ACTION
Councilmember Watford requested discussion on the main motion.
"I'd 1 kF tc- suggest we vote against thi- motion; the main
reason is that we need a set of definitions of who signs checks.
By tradition and this has been discussed in the past up here
apparently it was never put in an official motion or in an
of form, in the past it has been understood one signature
on the checks would be an elected official and to me that is
very important. If we pass this ordinance the way it is you
could have two signatures on the checks neither one of whom
would be an elected official and to me that is not the way we
can keep a good eye on our finances and on the money that is
spent, sc 7 would urge you to vote against this motion."
After discussion, vote is as follows:
KIRK
COLLINS
ENTRY
WALKER
WATFORD
MOTION CARRIED.
Councilmember Walker made a motion to invite the County
Commission, Department of Environmental Regulation, South Florida
Water Management District, Williamson Cattle Co./Okeechobee Groves
Co., the business community of Okeechobee, citizens of Okeechobee
and the City Council to tour the Cit,y's wastewater treatment plant
and reclaimed water project; seconded by Councilmember Entry.
Councilmember Watford asked if there was a certain date in mind.
Councilmember Walker answered that Administrator Drago would call
us with that information.
KIRK
COLLINS
ENTRY
WALKER
WATFORD
MOTION CARRIED.
VOVF
YES I W
X
X
X
X
X
X
X
X
X1
7, 1991 - Reautan Mee-tina - Paoe 6 oA 14
F.
NEW BUSINESS CONTINUED
Discuss street sweeping - Councilmember
Watford.
COUNCIX EMBERS/ACTION
Councilmember Watford announced that at one of the previous
meetings. the Council had requested � letter be sent to the
current contractor (L.P. Sanitation) that is providing the
City's street sweeping service, listing some concerns we had and
some problems that had been re -occurring. We got a copy of that
letter at the last meeting. Tonight we have a reply to our
letter. Since then we've experienced some other problems. I
think we are to the point now where something one way or the
other needs to be done.
Mayor Kirk, stated I think we have got a problem here. I have
expressed my displeasure with him (Pat Yancy of L.P. Sanitation)
over the telephone, I think that it is time we do something. We
are paying for a service, if for whatever reason. if they cannot
fulfill their contract I think we should break it and take some
kind of steps to correct this and do it now.
Pat Yancy, representative of L.P. Sanitation, stated they had
taken over the contract from a West Palm Beach division that got
out of the sweeping business. We have had numerous problems
with the sweeper. We have had a representative (from the
company where the sweeper was bought) here in the last two weeks
basically the problem has been with adjusting the broom on the
sweeper. We know there is a problem, we do want to work it out
and finish out our contract.
Following further discussion among Council, staff, Mr. Yancy and
citizens Marvin Wheeler and Wesley Mobley, the Council agreed on
the following:
1. L.P. Sanitation is to give Director Elders a schedule of
the street sweeping;
2. Public Works department is to check each time after
sweeping, checking Park Street immediately after it is swept and
all others the following morning;
3. Director Elders is to send a report to the Council of the
work and its outcome by the next meeting (May 21, 1991).
M
YES I W
F.
7.
0
NEW BUSINESS CONTINUED
Continued . . . .
Discuss the public utilities authority
issue - Councilmember Collins (Exhibit
6).
997 - ReGutan Meeting - Page 7 of 74
COUNCILMEMBERS/ACTION
Councilmember Collins also suggested a letter be sent to L.P.
Sanitation regarding what was decided here tonight.
Administrator Drago answered he would take care of that.
Councilmember Collins opened the discussion of the public
utilities authority by stating "I think basically what the Task
Force wants is Okeechobee City to approve the concept of the idea
of a water board (utility authority)".
Administrator Drago explained that the memo he sent to the
Council would also be sent to the Task Force at the meeting
tomorrow (May 8, 1991). "I believe that it is time, if the
Council so desires, to look at the concept of it. I think it is
time to move in a more positive direction and start to get some
of this information down so that proper decisions can be made.
The first item I think people want to know is does the existing
bonds that are outstanding by the City allow to be paid back by
a separate entity other than the City and the answer is no.
Presently if the City were to give up the system or sell it, the
new entity would have to pay to the City the cost of the bonds
so that the bond holders could be paid off and therefore this
new entity would have to create its own separate debt.
There is a way around it, it looks feasible and practical to
take the 1987 bonds and refund them. If the City were to do
that we would go back to the insurance company and ask for an
amendment to the bonds stating that if another entity were to
take over the City sewer system, that entity would assume the
present debt so that they would not have to create new debt.
If the insurance company says yes to that amendment then the new
entity would have to demonstrate that they have sufficient
revenues to meet the bond test and the bond test is usually one
hundred twenty-five percent of the total revenues. If you were
to transfer the system to the new entity all City pledged
revenues would not go to that entity, so therefore the entity
would have to come up with some additional revenue to add to the
present revenue stream in order to meet the bond test.
VOTE
F.
0
NEW BUSINESS CONTINUED
Continued
COUNM MEMBERS/ACTION
If the
insurance company says no
to the amendment and the City
oun,il
again elects to refund
the 1987
issue then the new
entity
would have to float taxable
bonds in
order to pay off the
issue:
because under Federal
Law, the
City's allowed tc
refinance
cne time and you would
have met
your obligation.
That does not get into the issue of new monies. It becomes a
little more complicated because then you are faced with a water
plant expansion and that would have to create new monies. Given
that situation the new entity would still be faced with making
sure they have enough revenue to meet the bond test in order to
be able to float the bonds.
1 had the City Bond Council at length discuss the bonding
requirements wit:: the insurance company. The insurance
company's answer is that they would bond and insure the
refunding of the 1987 issue and they would insure the new issue
to expand the water plant under the City's name. They would
look at the new money under the new entity as long as they met
the bond test and other financial requirements the insurance
company would need. I will have by the next meeting some
definitive answers as far as how much cost savings you are
looking at by refunding the 1987 issue, I would say if the
figures come in like we anticipate them to come in then the City
Council's going to have to make a decision at the next meeting
to go forward with the refunding in order for it to be done by
July so that hopefully there will be no increase in the debt
service fee.
The second step I would think would have to be to determine
which type of an organization you want. Do you want an elected
board or an appointed board.
The $100,000.00 figure that I put in there for the legal,
financial and engineering studies is a low estimate, the high
estimate would be $150,000.00.
YES
VOTE
Mau 7. 1997 - RonnPnh Moo,t,ion - Pnno 9 n� 14
VCVE
COUNMMEMBBRS/ACTION
YES
W
AB -TNT
F. NEW BUSINESS CONTINUED
8. Continued
I think the second thing the City Council would have to do would
be give me direction to go back to the Utility Task Force Board
saying that the City is willing to put its fair shale in to fund
the legal, financial and engineering studies. I see four
parties rove lved in the share costing, the City, the County,
Beach Water and the Business Council. So you are looking at
$25,000.0C minimum up to $150,000.00 figure. That would give us
a handle: on exactly what the financial picture is with the City
sewer system, Beach Water and what the County has to offer.
I car. tell ,,o,_; that the net book value of the public utilities
system after all debt !.as been subtracted and taking into
consideration everything else is $6,664,193.00, that's what the
Ci ty zystif,m i woi th g�,,:g into the entity. So, if you decided
that you wantec'. it to be equal contributions the County would
have to come up with $6,000,000.00 and Beach Water would have to
come up with $6,000,000.00.
I am also going to ask the Utility Task Force Board to give the
City Council direction; do they stay on the current course of
improving the current water plant and expanding the water system
by going t.c wells. That haS never been determined by the Task
Force.
On page two (of Council packet exhibit number six), when you
enter the contract, unfortunately you are talking consolidation,
you have got employees involved that would require the expertise
of a labor attorney to make sure that the City employees are
treated the way the City Council would want them treated as far
as salaries, pension plans, etc.
The last thing the Council needs to give me direction on if you
approve the concept of the private or public entity you need to
tell me how you want that entity formed. Do you want it formed
where you expect to get paid the net book value of your system
or do you want all three parties to have equal share, so
therefore they have equal voice or if Beach Water only goes in
with two million and the County does not go in with anything
then the City has more members on the board."
7. 7991 - Recu-Pan Mee-tina - Paae 10-oA 14
F. NEW BUSINESSCONTINUED
8. Continued .
COMM MEMBERS/ACTION
Mayor Kirf:
commented a
letter from the Utility
Task Force states
wha. they
are asking fcr is tc approve
the
utility authority
conC t for
study.
i think we are
doing overkill with
everything
that.. we are
discussing. We
could
probably discuss
these much
better in a
workshop. What we
need
to do is give our
approval of
the utility
authority study,
and I
would urge you to
so.
Councilmember Walker made a motion to approve the utility
authority concept for study so we can pursue a comprehensive
solution the problem; seconded by Councilmember Entry.
Co�_mc�.lme„her Watforc ekpressed his concerns by adding the
-ounci ha,_', also received a copy of the letter he wrote to
commissioner Harvey. "I am amazed that we came to this point so
quickly, I thought we were going to try to solve this problem
together. Tf you read their resolution they did not resolve for
a study they resolved for an authority. I do not like
authorities. I do not believe the creation of an authority is
going to get any water out of the spigot any faster that we
would be able to, if we decide that's what we are going to do
and I de not think it is going to get any more sewer capacity
than what we could, if we decided we wanted to."
Administrator Drago added if the Council does not want to
allocate a specific dollar cost for the study then the Council
still has to at least say that you are willing to share the cost
on either a one third or one fourth basis and I still think you
need to give me direction to go back to that Task Force tomorrow
and say how you want that board constructed. Do you expect a
pay back or not.
Councilmember Watford asked, we are not spending any money?
Mayor Kirk answered we are not making a motion to spend money,
that would have to come back to this council.
VOTE
YES I W IAB-TK
m
F.
RM
G.
NEW BUSINESS CONTINUED
Continued . . . .
COUNCIL REPORTS AND/OR REQUESTS:
Councilmember Collins:
COUNCILMEMBERS/ACTION
Following further discussion among Council, Administrator Drago,
County Commissioner Steve Porter and Task Force Boardmember Jack
Coker, vote is as follows:
KIRK
COLLINS
ENTRY
WALKER
WATFORD
MOTION CARRIED.
a) Councilmember Collins asked if he read the article in the
Palm Beach Post correctly with it stating the County is seeking
a grant for one million dollars and eighty percent of it would
be spent in Glades County? County Commissioner Steve Porter
answered that is where the County would get its start from.
b) Councilmember Collins announced he wanted to share
information with the Council that did not settle with him well
after speaking with Mr. Sonny Williamson, South Florida Water
Management Boardmember, who is trying to help Okeechobee get the
million and a half dollars laying the idea mainly on the water
board. "I asked him, if that doesn't ever come to pass, are you
still going to try to help Okeechobee City, nobody's ever helped
Okeechobee City get a penny, on that million and a half and he
did not give me an answer, and that bothers me. I do not think
that million and a half should be held over our heads in any
way, shape or fashion in order to form a water board (utility
authority)".
Councilmember Collins stated upon the request of Mr. Sonny
Williamson, he recommended the Council, Mr. Williamson, Engineer
Dan Willard, Department of Environmental Regulation and South
Florida Water Management meet, review the finished reclaimed
water project and all sign the agreement together.
VOTE
YES I M)
G.
2.
3.
4.
Mau 7 1991 - Re ut n Mee -tin - Pa e 12 oA 14
COUNCILMEMBERS/ACTION
VOTE
YES
NO
AK�NT
COUNCIL_ REPORTS AND/ 0R_ REQUESTS:
Councilmembei Watford:
a) Councilmember Watford announced they had received a letter
from a law firm, assuming it is about the pay plan. (for customers
who have not paid to hook up to the sewer system). They are
saying we cannot de that? Administrator Drago answered, you can
set it up but its going, to have to be done across the board for
everybody.
-
b) Councilmember Watford stated he understood the County was
going to go ahead with their mandatory solid waste disposal
ordinance. Administrator Drago asked if he was questioning
whether or not they could just carte blancly stick the City on
the tax -roll, the answer is no.
r) Councilmember Watford shared with the Council that in the
Wall Street Journal, April 17th issue, there was an article
concerning land clearing of undeveloped land within cities.
Councilmember Watford made a motion to revise the lot clearing
ordinance to delete any undeveloped land. Motion died for lack
of second.
Councilmember Walker:
Councilmember Walker made a motion to hold a workshop on May 13,
1991, Monday at 7:00 P.M. to discuss were we are with public
utilities; seconded by Councilmember Entry.
KIRK
x
COLLINS
x
ENTRY
x
WALKER
x
WATFORD
x
MOTION CARRIED.
Attorney Cook:
Attorney Cook reviewed his letter to the Council. Councilmember
Watford asked were the proposed employee handbook was.
Administrator Drago stated it was in his office. Council
decided to review the proposed handbook before it went to a
labor attorney for review as suggested in Attorney Cook's
letter.
Mau 7. 1991 - ReoufaA Meet4na - Paae 13 of, 14
COUNCILMCMBERS/ACTION
VOTE
--
YES�
AB-TNTG.
COUNCIL REPORTS AND OR REQUESTS:
4. Continued
Addressed in the lettez also, LawEon suit issue. Upon the
recommendation of Attorney Cook the drop the
suit.
5. Mayor Kirk:
Mayor Kirk asked the Council to think about the possibility of
dropping the last part of the agenda (Council Reports and/or
Request) and only discuss agenda items.
Councilmember Collins commented he did not have a problem with
that so long as Administrator Dra i called every Councilmember
when making up the agenda to see if they might have something to
bring up. (place on the agenda)
G 6. Administrator Drago:
Administrator Drago stated the (Armed Forces Day; Welcome Home
Group also requested 4th Avenue between North and South Park
Street be closed at 6:00 A.M. Saturday, May 18, 1991 during the
celebration. Councilmember Entry made a motion to close 4th
Avenue between North and South Park Street, at 6:00 A.M. for the
Welcome Home celebration; seconded by Councilmember Collins.
KIRK
x
COLLINS
x
ENTRY
x
WALKER
x
WATFORD
x
MOTION CARRIED.
Citizen Rennie Berry addressed the Council stating he thought the
Council had made the right decision in approving the utility
authority study.
- Reaa&A Mee.tino - Paoe 14 oA 14
ADJOURNMENT
Mayor Kirk:
NOTICE IS HEREBY GIVEN THAT IF ANY PERSON
SHOULD DECIDE TO APPEAL ANY DECISION MADE
AT THIS MEETING OF THE CITY COUNCIL, SUCH
PERSON WILL NEED TO INSURE THAT A VERBATIM
RECORD OF THE PROCEEDING IS MADE WHICH
INCLUDES THE TESTIMONY AND EVIDENCE UPON
WHICH THE APPEAL IS BASED. A COPY OF THE
RECO G CAN BE OBTAINED IN THE CITY
CL K'S PFFICE.
J m E. Kirk, Mayor
Attest:
Bonnie S. Thomas, City Clerk, CMC
�r r'p,
COUNCILMEMBERS/ACTION
Mayor Kirk adjourned the meeting at 9:20 P.M.
VOTE
YES I W