City Commission Workshop Meeting

APPROVED:3/3/2016 City Hall City of Eustis, Florida 10 North Grove Street Post Office Drawer 68 Eustis, FL 32727-0068 Meeting Minutes - Final* City Commission Workshop Thursday, February 11, 2016 5:30PM City Hall CALL TO ORDER: Mayor Holland - 5:30 p.m. ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE I. Workshop Item #1 16027 lnterlocal Service Boundary Agreement Ron Neibert, City Manager, explained the benefits of having an interlocal service boundary agreement (ISBA). He reviewed staff's proposal that the City create a fire service ISBA which would provide for an integrated dispatching system for fire service which would ensure that the closest unit would respond to emergencies regardless of the jurisdictional boundaries. He reviewed the proposed areas to be included to the northwest and east of the existing City limits. He explained the City currently only responds to areas outside the City if there is a request for mutual aid. He then reviewed the financial impact stating each agency would reimburse the responding agency $100 per medical call and $500 per fire call; except there would be no charge for responding to calls in other municipalities only for responses in unincorporated areas. II. Commission Discussion The Commission questioned what would happen if the closest responding agency was not available with Mr. Neibert explaining that all vehicles would be equipped with GPS locators which would be tied into the County dispatching system. He further explained that the system will identify which unit is closest and call it to respond. The Commission asked the term of the agreement and whether or not the City service would then become part of the County. Mr. Neibert responded that the term of the agreement would be 20 years and that all equipment and staffing would remain part of the City. He then reviewed the estimated financial impact to the City. He estimated the City would reimburse the County $37,900 per year, while the County would reimburse the City an estimated $26,500 per year for a net cost to the City of $11 ,400 per year. He explained that those figures are worst case numbers based on calls over the past three years. He added that at no time during the course of normal operations would all City resources be responding outside the City limits. Mr. Neibert then explained the ISBA would also allow the City to do non-contiguous annexations. He stated that annexed property must be located within the ISBA and Joint Planning Area boundaries. He explained the reason for the proposed 20-year term is that the statutory provision allowing non-contiguous annexations requires at least a 20-year agreement. He then reviewed the proposed map stating the ISBA boundaries would also become the Joint Planning Area boundaries giving the City the authority to make land use decisions in that area and allowing the non-contiguous annexations. Mr. Neibert discussed the growth possibilities in the proposed area noting that the City cuffently provides water, sanitary sewer and reclaimed water services to areas within the proposed ISBA boundaries. He added that the City also owns 200 acres of sprayfield property for which the City has received some proposals. He stated City staff has been communicating with several developers considering investment in the ISBA area and has an offer to sell the sprayfield property which will be brought to the Commission for consideration. City of Eustis, Florida Page 1 Printed on 211612016 City Commission Workshop Meeting Minutes - Final February 11,2016 Mr. Neibert then discussed the limitations to growth in the area. He explained that the eastern wastewater plant currently has a treatment capacity of 300,000 gallons per day with a current usage of 125,000 gallons per day. The additional 175,000 in capacity has already been contractually committed to existing developments in the area. He further explained that the City already will have to spend $700,000 to make necessary plant upgrades to remain in compliance and maintain the current capacity as well as spend an additional $1 ,000,000 in FY2016/17 to maintain that capacity. He proposed that the City expand the plant to a total of 1. 3 million gallons per day for a total cost of $6.5 million. He explained that the City could use $550,000 for the design engineering and stated the expansion would support an additional3,400 units of development. Mr. Neibert reviewed the possible funding for the plant expansion as follows: 1) A legislative grant of $2,500,000 which the City has already applied for; 2) Sale of the sprayfield properly for at least $1,500,000; 3) Application for a St. John's grant of $1 ,000,000; 4) Existing impact fees in the amount of $800,000 and 5) Unallocated capital funds in the amount of $700,000 for a total of $6,500,000. Mr. Neibert stated that, if the Commission were to approve the contract to begin design work, it would take six to nine months to do the design work which would provide sufficient time prior to committing to construction to insure the funding is in place. He recommended that the authorization for the eastern plant design be presented to the Commission February 18th, with the presentation of the ISBA agreement in March and then the authorization for the sale of the sprayfield properly. The Commission questioned when the City would know about the grants with Mr. Neibert indicating sometime in the summer. He noted the non-contiguous annexations would generate additional revenues to the City in ad valorem taxes and utility fees. The Commission discussed the proposal noting the following items: 1) The need to increase the City's tax base to reduce poverty; 2) The need to maintain control of the City's services; 3) Whether or not the City would need to construct an additional fire or police substation; 4) Additional City revenues from growth that would help fund any additional services as well as help lower the overall millage rate; 5) The possibility of additional commercial development; 6) The Lake County EMS RFP for a study for fire and ambulance service; 7) The possibility of Station 27 being shared by Mount Dora and Eustis; 8) Loss of commercial development to other cities; and 9) Whether or not the County service would be as good as the City's. Mike Swanson, Fire Chief, explained the primary difference between the City and County is that the City runs two vehicles for a medical emergency. III. Public Input Ke vin Jenness addressed the Commission regarding the proposal. He asked about the possible non-contiguous annexations, questioned the possible response from adjoining municipalities and confirmed that the blue area to the west in the area of Grand Island would be eligible for future annexation. The Commission and Mr. Neibert explained the non-contiguous annexations would have to be voluntary and could only occur if the ISBA is approved. IV. Commission Direction CONSENSUS: It was a consensus of the Commission to have staff bring back for consideration the ISBA agreement and the eastern wastewater plant expansion. V. Workshop Item #2 16028 Consideration of issuance of a Request for Proposal (RFP) for leasing of the City-owned building located at 200 N. Bay Street City of Eustis, Florida Page2 Printed on 211612016 City Commission Workshop Meeting Minutes - Final February 11 , 2016 Tom Carrino, Economic Development Director, explained the City has received a number of inquiries regarding the City property at 200 N. Bay St. He commented on the current use of the property as a City employee fitness center and for event storage. He stated the building is approximately 1,500 sq. ft. with a Central Business District future land use designation and Urban Center design district designation. He noted the property was previously used as a restaurant and a retail shop. He stated that realistic rent for the property is between $1 ,100 and $1 ,300 per month depending on the investment in the property. He noted recent improvements to the streetscape. He commented on the evaluation criteria including the monthly rent, amount of investment and best mix of use. He stated staff's recommendation to issue a Request for Proposal. VI. Commission Discussion The Commission asked if another restaurant went into the space if the impact fees would be grandfathered with Mr. Carrino explaining research would have to be done to determine the number of fixtures there previously to determine the amount of credit. The Commission asked about a location for the fitness center for the employees with Mr. Neibert responding there is space available in the existing senior center that could be utilized. The Commission asked about how the RFP would be promoted with Mr. Carrino explaining it is not a traditional RFP He suggested placing advertisements and sending out the information to local real estate professionals. He indicated staff would work with Purchasing to insure the request was properly publicized to as many people as possible. VII. Public Input Kevin Jenness stated the proposal was a good idea but cautioned that it could be perceived it was putting the City in direct competition with other commercia/landlords with Mr. Neibert assuring him that the tenant would be paying full property taxes. Mr. Jenness commented on the desirability of the location and encouraged the Commission to not lease it for too low an amount. Sean Jenness commented on the long term versus short term benefits. He suggested dividing the property and using part as a visitor's information center and the other side for a restaurant/retail space. He expressed support for the parking remaining public. VIII. Commission Direction CONSENSUS: It was a consensus of the Commission for staff to proceed with the RFP as long as space was provided elsewhere for the employee fitness center and for the RFP to be well publicized. IX. Adjournment-6:10p.m. MICHAEL L. HOLLAND City Clerk Mayor/Commissioner *These minutes reflect the actions taken and portions of the discussion during the meeting. To review the enti re discussion concerning any agenda item, go to www.eustis.org and click on the video for the meeting in question. A DVD of the entire meeting or CD of the entire audio recording or verbatim transcript of the meeting can be obtained from the office of the City Clerk for a fee. City of Eustis, Florida Page3 Printed on 2116/2016