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City Commission Workshop

Regular Meeting

Deltona, FL · September 28, 2020

AgendaMinutes

Minutes

City of Deltona 2345 Providence Blvd. Deltona, FL 32725 Minutes City Commission Workshop Monday, September 28, 2020 5:30 PM Deltona Commission Chambers In an effort to reduce the possibility of exposure of residents to the COVID-19 (Coronavirus) we have limited public seating inside the Commission Chambers and are practicing social distancing with the City Commission, staff and residents. 1. CALL TO ORDER: The meeting was called to order at 5:30 p.m. by Mayor Herzberg. 2. ROLL CALL – CITY CLERK: Present: 4 - Mayor Herzberg Commissioner Avila-Vazquez Commissioner King Commissioner McCool 3. PLEDGE TO THE FLAG: Mayor Herzberg led everyone in the pledge to the flag. 4. BUSINESS: A. Discussion - Resolution No. 2020-56, supporting the extension of Rhode Island Rd, from Veterans Memorial Parkway to N. Normandy Blvd. and a full Interstate 4 interchange at the Rhode Island Rd. crossing of Interstate 4 - Ron A. Paradise, Interim Deputy City Manager/Director of Planning and Development Services (386) 878-8610. Interim Deputy City Manager Ron Paradise asked the Commission for discussion on a long term project involving the extension of the Rhode Island Road corridor from Veterans Memorial Parkway to North Normandy Boulevard. Mr. Paradise stated that the I4 Beyond the Ultimate project had this connection to the Interstate through a series of slip ramps and that project is on hold right now. The goal is to initiate support locally for the interchange and to enlist help from Volusia County and Orange City, bring in Transportation Planning Organization (TPO) and set up a meeting with the Florida Department of Transportation District 5 before the resolution is formally approved by the Commission. He stated that the project is significant and may take 10 years to complete and will have to be a team effort City of Deltona Page 1 Printed on 12/11/2020 City Commission Workshop Minutes September 28, 2020 requiring financial involvement from the State and Federal government. The Commission and staff discussed future traffic needs, money, interest in the project, discussions regarding the project, meeting with District 5, needing more information, interim improvements, a joint resolution with Volusia County, exit ramp versus a slip ramp, Amazon truck traffic, possible impact on other cities, future land use in Orange City, impact fees, involve/meet with all cities involved. Mayor Herzberg's direction to Interim City Manager Dr. Marc Antonie Cooper, meet with district 5 and TPO to see what they say, bring reports to the Commission for a workshop with information such as a time frame, cost to the City, maps showing what I4 Beyond Ultimate was considering, the areas impacted, and changes for an on off ramp. B. Discussion regarding Deltona Water finances and outstanding debt - Camille Hooper, Finance Director (386) 878-8552, and John Peters, Public Works Director, (386) 878-8973. Strategic Goals: Fiscal Issues: Maintain current fiscal stability, maximize alternative funding sources; Infrastructure: Focus on the expansion of commercial utilities to make Deltona a more sustainable community; and Internal and External Communication: Provide consistent and effective communication that promotes economic development and service delivery Public Works Director John Peters introduced Brian Mantz with GovRates, Inc. Mr. Mantz presented a Powerpoint on Water and Wastewater Rate Study. He spoke about Water and Wastewater Utility Overview, Primary Objectives of Current Rate Study, Revenue Requirements, Major Cost Factors Affecting Water and Sewer Utility System, Projected Need for Revenue Adjustments Assuming Refunding of Utility's Series 2013 and 2014 Bonds with "30-Year Stretch", Projected Financial Position Should Enable Utility to Accomplish Multiple Key Objectives, Financial Risks of not Adjusting Rates, Rate Structure Recommendations, Comparison of Monthly Charges, Rate Comparison Not a "Report Card" on How Well Utility is Performing, Water and Wastewater Impact Fees, Rate Indexing Adjustment Clause and Requested Council Action. Mayor Herzberg asked Mr. Peters to clarify why is this being brought up and what is the necessity for it and Mr. Peters answered the Deltona Water is running out of money and the impact of that is that it cannot afford to replace the meters. He spoke about future savings based on meter replacement, bond debt, future needs, wastewater plant capacity and base rates. The Commission, Staff and Mr. Mantz discussed base rate charges, consumption, reduction in staff and water plants, remote operation, redoing the 2013-2014 bond, impact City of Deltona Page 2 Printed on 12/11/2020 City Commission Workshop Minutes September 28, 2020 fee changes, future indexing, creating a more solvent and stable water sewer fund, timeline for repaying debt, benefits to refinancing, outside of City surcharges, repercussions of not implementing rate increases, going into receivership, increase in new homes, zero usage reads, cost increases, using the ENR (Engineering News-Record) index and the use of Fund (SRF) State Revolving to help pay for meter replacement. Finance Director Camille Hooper gave a Powerpoint presentation on Refunding Opportunities for the City's Outstanding Utility System Debt. She presented a Summary of the City's Outstanding Utility Debt, Refunding Options, (Option 1 - Refunding All Callable Bonds and Providing for level DS savings) (Option 2 - Refunding All Bonds and Extending the Final Maturity to October 1, 2050), Debt Service Savings Summary, Aggregate Debt Service Comparison and The Financing Team Role with Bond Financing. Mayor Herzberg stated for clarification, option one will give you $750,000 a year cash on hand and option two will give you $2 million a year, Ms. Hooper added until 2039. Interim City Manager Dr. Cooper added the City would use that to expand the utility and that would help pay the additional cost further down the line. The Commission and staff discussed the pros and cons of both options, new meters, staffing, and Capital Recovery Fees (Impact fees). Interim City Manager Dr. Cooper stated that he is looking for consensus on which option the Commission prefers and Mayor Herzberg asked the Commissioners their option preference. After discussion the Commission concurred to move forward with option 2. Mayor Herzberg asked what is the timeline to get this set and Ms. Hooper answered 30 to 60 days. Commissioner King asked Mr. Peters when will the resident rates start to show a significant reduction in rates and Mr. Peters answered it will not happen within the next 3 years, the main goal right now is to get to a stable financial situation. 5. PUBLIC COMMENTS: Time permitted, public comments shall be limited to items on the agenda and shall not exceed two minutes. Please be courteous and respectful of the views of others. Personal attacks on Commission members, City staff or members of the public are not allowed, and will be ruled out of order by the Mayor. Elbert Bryan, 1625 Joyner Drive, Deltona, spoke about the extension on Rhode Island, trucks and impact fees. David Sosa, 931 Hemford, Deltona, spoke about page 18 water rate study increase. 6. CITY MANAGER COMMENTS: City of Deltona Page 3 Printed on 12/11/2020 City Commission Workshop Minutes September 28, 2020 7. ADJOURNMENT: There being no further business, the meeting adjourned at 7:43 p.m. ______________________________ Elizabeth Keys, Deputy City Clerk City of Deltona Page 4 Printed on 12/11/2020

Agenda

City of Deltona 2345 Providence Blvd. Deltona, FL 32725 Agenda City Commission Workshop Mayor Heidi K. Herzberg Vice Mayor Victor Ramos Commissioner Maritza Avila-Vazquez Commissioner Anita Bradford Commissioner Loren King Commissioner Dana McCool Commissioner Chris Nabicht Monday, September 28, 2020 5:30 PM Deltona Commission Chambers In an effort to reduce the possibility of exposure of residents to the COVID-19 (Coronavirus) we have limited public seating inside the Commission Chambers and are practicing social distancing with the City Commission, staff and residents. Background: ***NOTE*** The City Commission is dedicated to working hard and keeping our city moving forward, and a top priority during the COVID-19 pandemic is to help maintain the health of our employees and residents. Another top priority is being able to maintain public participation in our City meetings. Following CDC Guidelines, we have limited public seating inside the Commission Chambers and are practicing social distancing with the City Commissioners, staff and residents. Though there are restrictions when it comes to public gatherings, we are dedicated to making sure those who would like to make their voice heard are able to. Please note your public comments can be submitted via one of the following mediums no later than 3:00 p.m. on September 25, 2020 to ensure they are available for the Commissioners to review prior to the meeting. · eComment o Click the “Agenda & Minutes” icon on the homepage; o Chose the meeting you want to comment on and click on “eComment” in the last column; and o Go to the item and click on the speech balloon marked “Comment” to make your comment. o To view all comments made on an item chose the speech balloon to the left. · Visit the “Request To Speak” page of the website at <https://www.deltonafl.gov/city-commission/webforms/request-s peak> o Under the Commission Meetings tab City of Deltona Page 1 Printed on 9/23/2020 City Commission Workshop Agenda September 28, 2020 o Fill out the “Request To Speak” form - which will be submitted. · Email: cityclerkdept@deltonafl.gov <mailto:cityclerkdept@deltonafl.gov> · Fax: 386-878-8501 All submitted comments will become part of the official City record, and be attached to the meeting minutes. This is a fluid situation and as procedures change, we will be sure to update you. Attachments: Instructions for eComment 1. CALL TO ORDER: 2. ROLL CALL – CITY CLERK: 3. PLEDGE TO THE FLAG: 4. BUSINESS: A. Discussion - Resolution No. 2020-56, supporting the extension of Rhode Island Rd, from Veterans Memorial Parkway to N. Normandy Blvd. and a full Interstate 4 interchange at the Rhode Island Rd. crossing of Interstate 4 - Ron A. Paradise, Interim Deputy City Manager/Director of Planning and Development Services (386) 878-8610. Background: The 1.4 million square foot Amazon Fulfillment Center has opened and the facility is gearing up for training, logistic and delivery activities. Commuter and freight traffic will incrementally increase progressing towards the holidays. In addition, an application has been made to rezone another approximately 130 acres just east of Amazon to accommodate over 2 million square feet of distribution and industrial space. This project is known locally as Portland Industrial Park. There have been improvements made to the local roadway network as a result of Amazon. In addition, there will be further improvements associated with the Portland Industrial Park project. The West Volusia roadway network, including City roads, with strategic improvements, have the capacity to support Amazon and other existing and planned projects. However, based on City and West Volusia growth trends, a long term approach to transportation improvements is essential. The preliminary Traffic Impact Analysis (TIA) prepared for the Portland Industrial Park reviewed the impact an extended Rhode Island Rd. and full Interstate 4 interchange would have on future traffic conditions. The result is the aforementioned improvements would greatly improve mobility within the West Volusia area, including Deltona. City of Deltona Page 2 Printed on 9/23/2020 City Commission Workshop Agenda September 28, 2020 Objectives of the Rhode Island Rd. improvements and a new Interstate 4 interchange are as follows: 1) Serve as a reliever for the Saxon and SR 472 interchanges; 2) Provide a more direct access to Interstate 4 for existing and proposed freight traffic; and 3) Create even greater opportunity for expanded economic activity within the City and West Volusia. Realizing the above objectives will improve mobility within the West Volusia area and increase safety for the travelling public. The Rhode Island Rd. extension and a slip ramp type of interchange was proposed at Rhode Island as part of the I-4 Beyond the Ultimate project. However, the slip ramp represented a limited access arrangement intended to serve only proposed managed use/toll lanes. Therefore, the proposal for the Rhode Island Rd. extension and a full interchange is conceptually consistent with certain elements of the I-4 Beyond the Ultimate design in West Volusia. With regard to the I-4 Beyond the Ultimate in Volusia County, the project appears to be on hold based on funding challenges and changing priorities at the State level. Notwithstanding the uncertainty associated with the Volusia segment of the I-4 Beyond the Ultimate project, West Volusia and the City still need interstate oriented improvements. The Rhode Island Rd. extension and related Interstate 4 interchange represent significant transportation improvements and these improvements are beyond any one local government or private developer to undertake. Partnerships need to be created locally between Deltona, the County, the River to Sea TPO, and neighboring municipalities with the goal of enlisting the support and assistance from the State of Florida the Federal Government. The attached draft resolution of support is the first step in creating partnerships to eventually realize these needed transportation improvements. There is an expectation other local governments like the County will also pass resolutions of support of the Rhode Island extension and a full Interstate 4 interchange. The next step would be to engage State and Federal agencies like FDOT and the Federal Highway Administration. Close coordination with State and Federal policy makers will also be needed. Attachments: Interchange Resolution City of Deltona Page 3 Printed on 9/23/2020 City Commission Workshop Agenda September 28, 2020 B. Discussion regarding Deltona Water finances and outstanding debt - Camille Hooper, Finance Director (386) 878-8552, and John Peters, Public Works Director, (386) 878-8973. Strategic Goals: Fiscal Issues: Maintain current fiscal stability, maximize alternative funding sources; Infrastructure: Focus on the expansion of commercial utilities to make Deltona a more sustainable community; and Internal and External Communication: Provide consistent and effective communication that promotes economic development and service delivery Background: Workshop to review and discuss financial issues and goals related to Deltona Water, including outstanding debt, debt ratings, and fee structures. Discuss options and priorities. 5. PUBLIC COMMENTS: Time permitted, public comments shall be limited to items on the agenda and shall not exceed two minutes. Please be courteous and respectful of the views of others. Personal attacks on Commission members, City staff or members of the public are not allowed, and will be ruled out of order by the Mayor. 6. CITY MANAGER COMMENTS: 7. ADJOURNMENT: NOTE: If any person decides to appeal any decision made by the City Commission with respect to any matter considered at this meeting or hearing, he/she will need a record of the proceedings, and for such purpose he/she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based (F.S. 286.0105). Individuals with disabilities needing assistance to participate in any of these proceedings should contact the City Clerk, Joyce Raftery 48 hours in advance of the meeting date and time at (386) 878-8500. City of Deltona Page 4 Printed on 9/23/2020

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