HomeMy WebLinkAbout03-24-1993 Special CITY COUNCIL
SPECIAL MEETING
March 24 , 1993
A Special Meeting of the Cape Canaveral City Council was held on
March 24 , 1993 , at the City Hall Annex, 111 Polk Avenue, Cape
Canaveral, Florida. The meeting was called to order at 6: 03 P.M.
by Mayor Salamone.
ROLL CALL:
Mayor Joy Salamone Present
Mayor Pro Tem John Porter Present
Councilmember Robert Abbott Present (Late)
Councilmember Joan Calvert Present
Councilmember Rocky Randels Present
City Manager Bennett Boucher Present
Deputy City Clerk (Acting) Sharon Hoover Present
BUSINESS:
1. Discussion & Motion Re: Funding options for
Wastewater/Wetlands Project.
Mr. Boucher presented Council with several different financing
options including the State revolving loan fund, conventional
financing or a combination of the methods. He stated that since
Council had selected a team to accomplish the wastewater/wetlands
project, it would be important that the decision be made on which
method of financing would be used for the project.
Mr. Boucher stated that the State revolving loan fund was very
attractive since there would be a 3% discount below market if state
funds were granted. He explained that the application process for
the state funds would be a very cumbersome and expensive process.
He explained that there was a point system by which the state
evaluated applicants and that the deadline for applying for 1994
funds would be June 1, 1993 .
Mr. Boucher advised that the State required engineering studies
that would guarantee the facilities would last for the twenty year
life of the loan. The required engineering reports would cost
approximately $485, 000. An additional processing fee of 3 . 5% of the
loan would also be required to apply for the funds.
Mr. Abbott arrived at the meeting at this time.
Council asked if the same engineering study would be required for
conventional funding. Mr. Gerald Hartman, Hartman & Associates,
advised that the study required by the State would be much more
comprehensive than the study required for conventional funding. He
stated that his firm would be able to complete the necessary
engineering study by the June 1, 1993 deadline. He advised that
the studies required for conventional funding would cost
approximately $10, 000 to $20, 000 .
Mr. Boucher emphasized that the State funds were not guaranteed
even if the City met all the necessary criteria by the deadline.
It would be possible to have the engineering studies completed and
not be eligible for funds. He stated however, that based on
conversations he has had with the appropriate agencies, he felt
that the City had a very good chance of being awarded the funds.
Mrs. Calvert asked if the State money would be awarded in a lump
sum or as needed. Mr. Boucher stated that the money would be
allocated on a draw basis and interest paid only on the amount
received.
City of Cape Canaveral, Florida
City Council Special Meeting
March 24 , 1993
Page 2
Mr. Boucher stated that the financial figures presented to Council
were based on a 5% interest rate which was felt to be a worst-case
scenario.
Don Arabian stated that the only decision necessary for Council to
make at this point would be whether to finance with State funds or
to finance with conventional funding. He stated that if the
Council decided to proceed with State funding that the permitting
process should begin immediately.
Mayor Salamone stated that she felt it would be advantageous for
Council to give further consideration to this very important
decision and asked Council to continue the discussion in a special
session Thursday, March 25, 1993 at 7 : 30 P.M. Council concurred.
The meeting adjourned at 7 : 25 P.M.
Approved this 6th day of April , 1993 .
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•y C' Salamone, MAYOR
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Sharon A. Hoover, Deputy City Clerk (Acting)