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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 . 0--ji a •y C' Salamone, MAYOR ATTEST: ,��+�c, �I��Vrh►� i Sharon A. Hoover, Deputy City Clerk (Acting)