2006 1214 Regular City Commission Meeting

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Summary Minutes: Regular City Commission Meeting December 14,2006 City of Sunny Isles Beach, Florida through with the undergrounding of the existing utilities, street lighting, water main improvements, and the private electrical service. Vice Mayor Thaler said assuming the project is put through, there is a 63% of the project would be by the public and 37% would be on the private side, and City Manager Szerlag said he is not sure because we first have to define public as there are three: the City of Sunny Isles Beach, the City of North Miami Beach, and FP&L. Vice Mayor Thaler said that this number can be broken down even finer, and City Manager Szerlag said that he can do that, he can determine the funding sources from every project. Mayor Ede1cup said that the document speaks for itself, it takes each item and shows what the split is, if you have done the math on the total, that is an immaterial number, they are separate projects. Vice Mayor Thaler said he wants the numbers listed. Vice Mayor Thaler said that $2.6 Million of this would be up-fronted by the City, and then the City would get it back. City Manager Szerlag said that is correct, we would up-front everything with the funding sources indicated in his memorandum, and then part of the funding would then be sent back $1,009,000.00 to the City of Sunny Isles Beach Special Assessment Fund that will establish at the rate of 5% on the unpaid balance so that it would also be essentially a revenue source. Commissioner Goodman said that you are going out 25-years now, what happens if the people in Atlantic Isle wanted to pay it off and not take the 25-years, and City Manager Szerlag said that there would be no pre-paid penalty, the property owner would have the opportunity to either pay it up front totally, or make payments, or pay it off upon the sale of transferred property, and there is no interest penalty. Mayor Edelcup said that is the one that should be noted most, that if somebody sells their property it is due and payable at the time of sale and the 25-years no longer runs. Commissioner Brezin said that the payments are only applicable to the current owner of the property that can be paid out over the 25-years, and the City Manager said that was correct. Commissioner Goodman said being that the City is going to be the beneficiary of the 5% loan that means the City would be making that much money to offset the fact that we are financing part of deal, the City would be gaining some money from the interest. City Manager Szerlag said essentially the 5% would be like a five-year T-Note for 25-years. City Manager Szerlag said that City Attorney Ottinotjust advised him that the Special Assessment could run with the land upon a sale, and City Attorney Ottinot said correct, that is permitted under the law. Commissioner Goodman asked why are we doing that, it would be like a mortgage if people want to take a mortgage, it seems to him that it would benefit the City if they didn't pay it off because we would be getting the interest, so why would you want to add to say that the people that are buying the property would have to pay it off. Vice Mayor Thaler said that interest rates down the road might be 15% or it might be 20%, and he asked that they go through the changes and have it that it must be paid off if the property is sold. City Manager Szerlag said he would like to have that but that it is up to the City Commission, and Commissioner Brezin said there would be no changes, if the property is sold it remains that it has to be paid, and City Manager Szerlag said he would like to structure it that way. Commissioner Goodman said that he was very pleased that more then 50% of the residents of Atlantic Isle signed the petition to go ahead with it. 17