City Council

City of Marco Island Florida 51 Bald Eagle Drive Marco Island, Florida cityofmarcoisland.com Meeting Minutes - Final Monday, April 13, 2015 1:00 PM Community Meeting Room City Council Chairman: Larry Sacher City Council: Joe Batte, Bob Brown, Ken Honecker, Larry Honig, Amadeo R. Petricca, and Victor Rios City Manager: Roger Hernstadt City Clerk: Laura Litzan - City Attorney: Alan Gabriel City Council Meeting Minutes - Final April 13, 2015 SPECIAL CALLED MEETING Workshop on Utility Revenue Requirements - Rates and Assessments 1. Call to Order 2. Roll Call Present: 7- Councilor Batte, Vice-Chair Brown, Councilor Honecker, Councilor Honig, Councilor Petricca, Chairman Sacher and Councilor Rios Absent: 0 Also Present Roger T. Hernstadt, City Manager Laura Litzan, City Clerk Alan L. Gabriel, City Attorney Guillermo Polanco, Director of Finance Jeff Poteet, General Manager, Water & Sewer Justin Martin, Senior Project Manager, Water & Sewer Sandra Schildhorn, Administrative Assistant Citizens and Visitors 3. Business Jeff Poteet, General Manager of the Water & Sewer Department and Guillermo Polanco, Director of Finance, provided a presentation of the following subjects for discussion: ►Water & Sewer Infrastructure Status Summary ►Water & Sewer Five-Year Capital Improvement Plan (CIP) Priority Projects ►Five-Year Projection ►Drinking Water Usage and Wastewater Treatment Demand by Customer Type ►Service by Customer Type Demand / Fee Considerations ►Other Revenue Considerations ►Utility Service Availability Assessment Following a lengthy discussion, Council directed staff to prepare a model of a utility rate structure for water and wastewater utilizing input provided by Council, for presentation at a Special-Called meeting on May 4, 2015 at 1:00 p.m. City of Marco Island Florida Page 1 City Council Meeting Minutes - Final April 13, 2015 4. Citizen Comments Mr. David Rasmussen, 1495 Caxambas Court, commented that reuse water for home owners needs to be discussed because there are water issues across the country and the inevitability of a drought in the future. He reported that County water and sewage capacity is going to increase as a result of planned infrastructure along Route 951, and suggested considering utilizing that infrastructure, rather than remaining a self-contained entity. He also remarked that the capital structure will not stay at the same price due to inflation. Mr. Herb Krutisch, President of Key Marco Home Owners Association, stated that the vacant lot sewer assessment is not in agreement with the contract Key Marco has with Marco Island Utilities. Mr. Gene Siegel, 380 Gumbo Limbo Lane, suggested considering the formation of a municipal authority to run the Utility, and remarked that properties already on sewer did not receive a special benefit, as did properties in the STRP Program. Mr. Craig Woodward, 606 Bald Eagle Drive, spoke in support of the Burton model that was based upon cost to serve and he is of the opinion that everyone paying the same water rate ignores that different classes have different demands. Dr. Jay Santiago, 378 Bald Eagle Drive, endorses a simple rate structure where everyone pays the same rate for water usage. Mr. Lou Rana, 341 Hideaway Circle, encouraged Council to first have staff identify capital requirements needed over the next five to ten years, and then determine how to pay for it. Mr. Al Diaz, 1289 Fruitland Avenue, recommended adding a few categories to the spreadsheets that were missing from the spreadsheets used in today’s presentation that will allow the plugging in of numbers so as to determine the percentage of what the impact would be to residential and condos. He believes in being fair and equitable regarding gallons of usage, but his definition of fair and equitable is debt being shared by condos, commercial, and residential according to percentage of usage by each group, as well as debt in regard to plant capacity/infrastructure. He also spoke about reserves, stating that we need to find a fair and equitable number because people don’t want to pay for debt that is thirty years down the road. 5. Adjournment The meeting adjourned at 3:40 p.m. ____________________________________ Larry Sacher, Council Chairman ATTEST: ____________________________________ Laura Litzan, City Clerk PREPARED BY: ____________________________________ Sandra Schildhorn, Administrative Assistant City of Marco Island Florida Page 2