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10-25-04 vMINUTES REGULAR CITY COMMISSION MEETING OCTOBER 25, 2004 CITY HALL, 800 SEMINOLE ROAD Attendance IN ATTENDANCE: Mayor John Meserve City Manager Jim Hanson Mayor Pro Tem Richard Beaver City Clerk Donna L. Bussey Commissioner Paul B. Parsons City Attorney Alan C. Jensen Commissioner Sylvia N. Simmons Commissioner J. Dezmond Waters III Call to Order/Pledge Mayor Meserve called the meeting to order at 7:15 p.m. The Invocation given by the Mayor, was followed by the Pledge of Allegiance to the Flag. Approval of Minutes 1. Approval of the Minutes of the Regular Meeting of October 11, 2004 Motion: Annrove Minutes of the Regular Meeting of October 11.2004 ~,,, as presented. Moved by Meserve, seconded by Waters Votes: Aye: 5-Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Courtesy of the Floor 2. Courtesy of the Floor to Visitors Alan Potter of 374 2"d Street spoke in opposition to the hiring of consultants in connection with refunding bonds. Mr. Potter asked the City Commission to not hire the consultants under Items 8C&D. Bill Brinton of 1301 Riverplace Blvd., Ste 1500, Jacksonville explained the City of Jacksonville zero-tolerance for litter amendment and answered questions from the Commissioners. He expressed concern that litter has become a serious problem and was surprised to hear that there maybe opposition to the ordinance from the beaches. Sally Clemens of 1638 Park Terrace West requested that the citizens be informed of the city's finance reports for revenues and expenditures on a monthly or quarterly basis. October 25, 2004 REGULAR COMMISSION MEETING Pace 2 ~" J.P. Marchioli of 414 Sherry Drive commented that he and his next-door neighbor experienced a sewage backup into their homes and that was caused by a blockage two lines come together and tie in to the main sewer line. Mr. Marchioli expressed his solutions for the litter problem and supported the statement of Mr. Potter. GAI Consulting Report A. GAI Consulting Report Regarding FDOT's Response to the Regarding FDOT's Mayport Road Median Project. Response to the Mayport Road Median Ron Hoogland, P.E. with GAI Consulting Engineer for the project, updated Project. the Commissioners on the plans to construct the medians on Mayport Road between Atlantic Boulevard and Dutton Island Road, and provided a progress status report, which included the FDOT proposed alternative and possible future alternate. The project funding, estimated cost and construction schedule were also reviewed. A copy of the report is attached and made part of this official record as Attachment A. Mr. Hoogland pointed out several issues, which would need to be worked out with City of Atlantic Beach, the City of Jacksonville and the FDOT before the project could begin. It was explained that the FDOT may require a design variance in order to plant trees in the median due to their requirement that trees be planted six- feet from the edge of the travel lane. A question and answer session followed the presentation. Motion: Accept the proposed plan with the twelve-foot medians and request a design variance to allow tree planting in the medians. Moved by Simmons, seconded by Beaver Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Unfinished Business 3. Unfinished Business from Previous Meeting from Previous Meeting A. City Manager's Follow-up Report The City Manager stated that he would save his comments for Item 9. (See Item 9A) Consent Agenda 4. Consent Agenda October 25, 2004 REGULAR COMMISSION MEETING Pace 3 ~'~' Commissioner Simmons requested that Agenda Item 4B be removed from the Consent Agenda for discussion and Commissioner Waters requested that Agenda Item A be removed for the Consent Agenda for discussion. C. Extend the Landscape Maintenance Annual Contract for Utilities and Public Works Bid No. 0304-5 (City Manager) D. Extend the contract on Annual Professional Land Surveying (City Manager) Motion: Accept Consent Agenda Items C and D as presented. There was no discussion. Moved by Waters, seconded by Simmons Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED A. Acknowledge receipt of Utility Sales Report for September (City Manager) Commissioner Waters commented that compared to September of 2003 the percentage of loss had decreased and inquired as to whether or not it was temporary. City Manager Hanson responded that it was a temporary situation and explained the different variables that affect sales. The Utility Sales Report was received and acknowledged as presented. B. Approve designated streets for the Tree Planting Program (City Manager) Commissioner Simmons requested that the project of planting oak trees at the first block of Beach Avenue between the Sea Turtle parking lot and Beach Avenue be completed and reported that a citizen has agreed to water the trees until they become established. Commissioner Waters reported that Hibiscus Street may need to be added to the list for tree planting in a couple of years and that a number of street signs were missing on the street. Motion: Approve the list of designated streets as presented and add the first block of Beach Avenue to the list. (A copy of the Staff Report listing October 25, 2004 REGULAR COMMISSION MEETING Paee 4 ~/" the approved trees is attached and made part of this official record as Attachment B) Moved by Simmons, seconded by Beaver Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Committee Reports 5. Committee Reports A. Pension Board Report for Police and General Employee Pension Plans Pension Administrator/Finance Director VanLiere updated the Commissioners on the new members of the board and explained that the primary role of the Pension Board was to manage the funds' assets. He reported that over the last year, the assets had grown due to internal investments, contributions from the city, less benefits being paid out, and lower expenses related to administering the pension plan. ~' Mr. VanLiere gave a brief overview of the reports provided. A copy of his report is attached and made part of this official record as Attachment C. He requested that the City Commission determine which reports they would prefer to receive and the frequency. Discussion ensued. It was the consensus of the Commissioners that a report showing the September 30, 2004 figures would be provided, and they would decide at that time if additional reporting throughout the year was desired. Action on Resolutions 6. Action on Resolutions There was no action on Resolutions. Action on Ordinances 7. Action on Ordinances A. Ordinance No. 20-04-67 Public Hearing and Final Reading ORDINANCE N0.20-04-67 AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2004 AND ENDING SEPTEMBER 30, 2005 The Mayor read the ordinance by title only. Motion: Approve Ordinance No. 20-04-67 on Gnal reading. October 25, 2004 REGULAR COMMISSION MEETING Page 5 Mayor Meserve explained that the ordinance would roll over unexpended funds from the previous budget and allocate them toward FY 2004/2005 budget. Mayor Meserve opened the floor for a public hearing. No one spoke and he closed the public hearing. There was no discussion. Moved by Beaver, seconded by Waters Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED B. Ordinance No. 20-04-68 Introduction and First Reading ORDINANCE NO. 20-04-68 AMENDING THE OPERATING BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2003 AND ENDING SEPTEMBER 30, 2004 ~"'' The Mayor read the ordinance by title only. Motion: Approve Ordinance No. 20-04-68 on first reading. Mayor Meserve explained that the ordinance was required for a budget amendment and would allow funds to be moved around into the correct accounts. It was announced that the public hearing and final reading of the ordinance would be November 8, 2004. Moved by Beaver, seconded by Waters Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED Miscellaneous Business 8. Miscellaneous Business A. Request from Won Yoo Chun for a waiver from the sign regulations to allow for the complete face replacement on an existing nonconforming sign located at 1480 Mayport Road (City Manager) October 25, 2004 REGULAR COMMISSION MEETING Pa e 6 '" Mr. Yoo Chun Won, owner of 1480 Mayport Road, presented his request for the waiver and indicated that the sign structures would not be changed and that no additional signs would be added if the waiver was granted. Mayor Meserve noted that the same issue had come up before and that he expected more requests to come in because of the recent storms that had blown signs down. Motion: Deny the request for a waiver from the sign regulations for the property located at 1480 Mayport Road. Commissioner Beaver pointed out that as every sign needed to be replaced, it would have to conform to the eight-foot height limit. Commissioner Simmons expressed her support of the stricter sign regulations and emphasized the need to adhere to them. Moved by Beaver, seconded by Waters Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED B. Proposed Revision of St. Johns River Water Management District Rule 40C-2 (City Manager) City Manager Jim Hanson explained there was a proposal to change the lawn watering rules that would require citizens to water only two days a week. He indicated that a hearing would be held to receive comments from the cities and counties. Discussion ensued. It was the consensus of the Commissioners that two days of week for watering was not enough and believed that the new water rates would promote conservation. Commissioner Beaver advised the Commissioners that he would represent the city at the meeting later in the week and express their concerns. C. Authorize City Manager to hire Livermore, Freeman and McWilliams for bond counsel for the purpose of refunding the Utility Revenue Bonds, Series 1996 (City Manager) Sylvia Dunlap, Financial Advisor with Dunlap & Associates, gave a brief overview of the bond rates and indicated that the city could save a significant amount by refunding the bonds. She recommended that the city ~., move forward with the refunding before the rates go up. October 25, 2004 REGULAR COMMISSION MEETING Paee 7 ~ Jack McWilliams, Bond Counsel with Livermore, Freeman and McWilliams, answered questions from the Commission and explained the fees, schedules and reports. Motion: Authorize City Manager to hire Livermore, Freeman and McWilliams for bond counsel for the purpose of refunding the Utility Revenue Bonds, Series 1996. Moved by Beaver, seconded by Simmons Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED D. Authorize City Manager to hire A.G. Edwards as the Senior Manager and J.P. Morgan as Co-Manager for Underwriting Services for the Purpose of Refunding the Utility Revenue Bonds, Series 1996 (City Manager) City Manager Hanson explained that an underwriter was necessary when selling bonds and the companies were fully qualified and came highly recommended. /~ Sylvia Dunlap, Financial Advisor with Dunlap & Associates, answered questions from the Commission and explained the reason for two separate managers was to have a good distribution of capabilities in both retail and institutional. Jack McWilliams, Bond Counsel with Livermore, Freeman and McWilliams, explained municipal bond law, federal tax law, advance refunding and current refunding and how they related to the city's debt. Motion: Authorize City Manager to hire A.G. Edwards as the Senior Manager and J.P. Morgan as Co-Manager for Underwriting Services for the Purpose of Refunding the Utility Revenue Bonds, Series 1996. Moved by Beaver, seconded by Waters Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED E. Extend the contract for Security Improvements to Access Limited to include additional areas for an additional $149,266 (City Manager) October 25, 2004 REGULAR COMMISSION MEETING Paee 8 ~` Motion: Extend the contract for security improvements to Access Limited at a cost of $149,266.00 to add the following areas: Water Plant 4, Wastewater Plants 1 and 2, Public Works, Adele Grape and City Hall buildings. Moved by Parsons, seconded by Simmons Votes: Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED F. Discussion and related action on the City Manager's Compensation (Mayor) Mayor Meserve recommended a 5% pay increase for the City Manager. Discussion of the City Manager's performance ensued.. Motion: Approve a 5% pay increase for City Manager Jim Hanson. Moved by Meserve, seconded by Waters Votes: `~ Aye: 5 -Beaver, Parsons, Simmons, Waters, Meserve Nay: 0 MOTION CARRIED City Manager 9. City Manager A. City Manager's Report City Manager Hanson reported on the following items: Beach Renourishment • Advised that federal funding for beach renourishment had been approved. Skate Park • Reported the city received only one bid in the amount of $315,000 for the Skate Park, which was $175,000 over budget. It was recommended that the project be rebid without fencing, sidewalk and landscaping in order to get additional bids and stay within the budget. Board Training October 25, 2004 REGULAR COMMISSION MEETING Pa e 9 ~ • Advised that the Community Development Board Training on key legal issues relating to zoning and land use was scheduled for November 16`h from 6-8 pm in the Commission Chambers, and invited the City Commission to attend. He reported that training on Parlimentary Procedure had not been set up. Shade Meeting • City Manager Hanson reminded the Commissioners that a Shade Meeting to discuss the Police Union contract was scheduled for November 8`h at 6:00 pm. Proposed Litter Amendment • City Manager Hanson commented on the Proposed Litter Amendment. Microphones • Reported that adjustments were made to the microphones to lengthen the stand, which should eliminate the need to lean over to be heard. Reports/Requests 10. Reports and/or requests from City Commissioners and City ~` City Commissioners Attorney City Attorney Commissioner Beaver • Reiterated that he would represent the city at the meeting for the Proposed Revision of St. Johns River Management District Rule 40C-2. Commissioner Parsons • Commented on the beach being pounded at high tide and expressed his desire to have the beach scraping. • Commented on the seaweed debris and inquired if the city had a special fund for beach cleanup. City Manager Hanson indicated that the city had a beach cleaning service that removed litter from the beach, but because state regulations prohibit the removal of vegetative material, the seaweed would typically be covered with sand. Mr. Hanson indicated he expected more money might be needed because of the recent storms but it had not been requested. Commissioner Waters October 25, 2004 REGULAR COMMISSION MEETING Paee 10 • Briefly commented on the Litter Amendment • Reported that he had read atwo-page article in the The Charlotte Observer on Skateboard Parks and suggested that it might be used as a reference for additional bidders. • Inquired if the city owned the Aquatic Gardens Pond. City Attorney Alan Jensen responded that the city did not own the property, but was in the process of foreclosing on a lien on the property and indicated the amount maybe amended to include charges for more clean up. Mayor Meserve • Emphasized the importance of moving forward with beach renourishment. Commissioner Waters commented that he also might attend the meeting for the Proposed Revision of St. Johns River Management District Rule 40C-2. ~/-"' Adjournment There being no further discussi , th Mayor declared the meeting adjourned at 9:43 p.m. Jo rve, Mayor/Presiding Officer ATTEST: . ~~ ~Z-r12Q- ~ Donna L. Bussey >' Municipal Clerk Progress on Proposed Median Installation on Mayport Road ~ , . (SR AlA) Project lotion and Umits w. ,,:..M,2, ;~C~i% Introduction ~,____w_....,._.... Qty of Atlantic Beach plans to rnnstruct medians on Mayport Road within their limits (Atlantic Boulevard to Dutton Island Road). Status presented to Commission in August 21104 Trams Study Report, July 2004 (MPO [rafFic projections support Proposal) Proposed Roadway Typi~l sections with emphasis on the reduction of lanes from 6 to 4 Wnes to provide tNCycie lanes In atldilion m medians (Note: the 3 Sections proposetl were a combinatlan of this trrtenq C.censinadon with FOOT on propc5ed road;rray typical sup~'ed by trattic study ~, y~., ~`~~ Existing Typical Section -~"~ ~ ,__~ ~_ .. , i 3 . ,.. _, ~f._.~.~}_, I I ~.+.....+.....+ I .. ~; ~, ~. , ®aneu..r® y ATTACHMENT A OCTOBER 25, 2004 COMMISSION MTG, 1 -~~~, Progress Status FDOT Traffic Study Review Cortlmenh Proposed improvements must maintain Corridor Traffic Capacity Would not support funding roadway improvements that may need rfl be reversed Real traffic data will not be available untU the Worderwood Connector is fully completed (Current traffic models used to pm7ect future traffic are not accurate 100% of the time) FDOT is concerned that final leg of the Wonderwood C:onnectar is not fully funded Naval Station provided concurrence. FDOT contritwtlng state funds to roadway corridor Gry of Jacksonville working to provide LAP (Local Agenty Project Support) y _,. FDOT Rejected Typical Section _. r--- L - -.-...........J . ~.. ~~:~° ~. ~~~ .e.cmr~m FDOT Proposed Alternative FDOT will allow median Inst-allatlon Inside the e~dstlng 6- lanes roadway sectlon landsoped median will replace the existlng Two-way Left Turn Lane (TWLTL). Trees In median may require design vadances due to requirement for 6 ft from edge of travel lane Landsoped median to provide access management Road sectlon will not include exclusive bicycle lanes. FDOT proposal considers a future interim redtxYlon in lanes y 2 i i __ y FDOT Possible Future ARernate Intedm reduction of exlstlng 6-lanes m 4lanes bV re-striping of outside Wne Would require new trartlc data that supports asepmble rapadry fdlowfng the completron of Wonderwood Connector to Monument Road Monttodng of traffic mndltlons will be necessary This allows the addltlon of bicycle lanes Albws the reversal of lane reducion at a minimum mst y p: FDOT Possible Future ARernate r k ~_._.___- r" r; ~ m ~ jr ,,,_., ~ ~._ ,. ~_ ..., r«~.~. ~...~.e.,. !~ .~ i~ J ~uoirw~.u ~v~uA Urewrle `= 3 ~~ , Project Funding, Cost and Schedule Project Funding (COAB, FOOT, CO7) COAB - $539,000.00 (Medians) FOOT - $6,162,000.00 (Resurfadng and Signals) Design (2004/2005) - #600,000.00 Right-of-Way far Signals (2005)12006) -;360,000.00 Constructlon (2006/2007) - $ 5,202,000.00 CO] - $850,000.00 (Medians) y ~~~ Project Funding, Cost and Schedule Projec[ Cost COAB Estmated Construdion - $530,000.00 partldpatlng Design/ CEI Estimated at 15% - $80,000.00 y ~:~, Project Funding, Cost and Schedule Dreii.nin~n. GhPrh dP -._..._...._.... Desaiptpn Duratlon/ Days Begin Daocs End Dates GO116/ C07/ FOOT ColrrrlN an Pr•i.ot ar • FatNn.nd 11/22/1009 hdlnlnvy D.dOn 106 1/II2006 4/16(1005 piulOWOn 100 x/17(2006 9/21/2005 Cantr.cnr w.cllea/ woau.m.nel Niv 170 5M/7ms 1/21/2006 B,,, au 1/22/2006 u/lu2oo6 Non: Pnlimin.ry id~Wula.hows wro.cvtiw Mys br dbcurlon. Fundln0.ppraprl.tlar .nd.N.dulaa n 6. mporAbrl b.uN.on COAO/ CO]/ FOOT 4 Pending Issues COAB to confirm acceptance of FDOT recommendations CO] to confirm aWlity to Indude COAB segment in LAP agreement with FDOT COAB/COJ/FDOT to confirm scope of work and schedules CO] and FDOT to negotlate LAP Agreement Questions ? 5 ATTACHMENT B OCTOBER 25, 2004 COMMISSION MTG. r CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Approve designated streets for the Tree Planting Program SUBMITTED BY: Timmy Johnson, Parks & Recreation Director DATE: October 15, 2004 BACKGROUND: The City implemented a tree planting program in 2002 to assist with the beauty and tree canopy of the City. We installed over 500 trees on the right-of--way areas and parks throughout the City over the past 2 years. This year we would like to designate the following streets for planting: • Jordan Street -Oaks and Hollies • Russell Park -Oaks and Hollies • Plaza Road -Oaks and Hollies • Selva Marina Drive -Oaks • Veteran's Memorial Park -Oaks and Hollies • West 13`~ & 14~` Street from 1Vlayport Road to Orchid -Oaks and Hollies • West 4~' Street to 11 `~' Street from Mayport Road to Rose -Oaks and Hollies • Donner Park -Oaks BUDGET: Funds for this program are in account number 001-6025-541-3400. RECOMMENDATION: Approve designated streets for the Tree Planting Program ATTACHMENTS: none REVIEWED BY CITY MANAGE ATTACHMENT 4C OCTOBER 25, 2004 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Extension of Landscape Maintenance Annual Contract for Utilities and Public Works Bid No. 0304-5 SUBMITTED BY: Donna Kaluzniak, Utility Direct DATE: October 14, 2004 BACKGROUND: On November 14, 2003, bids were opened for the City annual contract for Landscape Maintenance for Utilities and Public Works. The low bidder was A Native Sun Landscaping. They successfully met all bid requirements. A Native Sun's personnel have the required background, knowledge, experience and equipment. The fees charged by A Native Sun Landscaping have been very reasonable and competitive. City has spoken to A Native Sun Landscaping regarding an extension of their current contract for one year at the current rates and they have agreed. As per Bid No. 0304-5: "The City reserves the right to renew the contract for two additional one-year periods pending a mutual agreement between the City, ~~'' and the vendor, and a review of the contract performance by vendor for the previous year." The vendor has agreed to renew his contract, and staff has been pleased with the performance of this contractor. BUDGET: Funding is included in the Water and Sewer Funds and in Public Works Funds in the amount of $50,400 under account numbers 400-5502-533-3400and 410-5508-535-3400, 001-5002- 541-3400 and 001-5001-541-3400. RECOMMENDATION: Extend the Landscape Maintenance Contract for Utilities and Public Works for an additional year at the current prices. ATTACHMENTS: 1. Letter of agreement to extend contract from A Native Sun Landscaping. REVIEWED BY CITY MANAGER: t FROM FAX N0. 00T-14-2004 THU 11:19 A11 ATL. BCH. PUBLIC WORKS _ Jun_ 05 2003 09:58RM P'. FAX N0. 904 247 5843 ----P. 01/01 1?F.pAiCTb16av7 OF P U 13LtC ~ wOWtS 1200 SANUPtPGII; LA. I ! ATLAN't1C 8lQAC'H, PU)!~ Ip~A 112]].4318 pAX:.(90t) Z<li 58.13 S1tNCtNd: A!d 5834 http:Jlwwwd.a-liwx boi~ci I•y~ October 14, 2004 FAX: 247-9040 Mr. BtYan McAliswr A Native Sun Landscapu~ ILE: Lkooneion of Bid N'o. 0304,5 Dear Mr. McAlister: As ynu are aware. the annual contract wills, the City of Ada >tio t3each !or Land t' epee Maintenance for Utilities aed Public WorJ~ gtpirts Novgr bcr 30, 2004. 'We vn ubd Ike to oxtend the conttbct for another year at the curt+ent prices, if this is acecptabic L ~ yon i company. tl'accxptahle, 0lease sign below,ead roturq to me October 15, 2004, so 1 can Art;~:at+e a staff report for tho Clty (:omtnission. We look forward to recoQUnending that we continue our co. utrwt with your Gaon p any. Sincevnly, i~" "~'~. Donna Kalua»ak Utility D{rector w NATIVR fiUN LAND.4CAPING AGREES TO R.XTF.1 ID THR CONTRA( T WITN THE CITY OF ATLAN77C 111tACH AT THE Pl t1CES SItBM17T1~'11 II•I BID N0.0304-5 FOR A•N AbDITIONAL YEAR EFFE( TiViC DLCEMHEFI 1N 2004. to tS 6~ B ~~ Uato ATTACHMENT 4C OCTOBER 25, 2004 ATTACHMENT C OCTOBER 25, 2004 COMMISSION MTG. r CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Pension Board Report for Police and General Employee Pension Plans DATE: October 19, 2004 SUBMITTED BY: Nelson Van Liere Pension Plan Administrator BACKGROUND: Semi-Annually, the Pension Boards are to report to the City Commission on recent activities. Attached to this report is a Summary of the Annual Actuarial Reports from Gabriel, Roeder, Smith & Company for both plans. Also provided is an Investment Policy Compliance Checklist for each plan prepared by Merrill Lynch as of September 30, 2004. BUDGET: No Impact RECOMMENDATION: To accept the Pension Board Reports ATTACHMENTS: 1. City of Atlantic Beach General Employee Retirement System Summary Annual Report 2. City of Atlantic Beach Police Employee Retirement System Summary Annual Report 3. Merrill Lynch June 30, 2004 Investment Policy Checklist- Police Pension 4. Merrill Lynch June 30, 2004 Investment Policy Checklist- General Pension REVIEWED BY CITY MANAGER G '~`7 ATTACHMENT 5A OCTOBER 25, 2004 City of Atlantic Beach General Employee Retirement System Summary Annual Report The City of Atlantic Beach General Employee Retirement System is a defined benefit pension plan administered by a Board of Trustees. It was created by Chapter 99-1, Florida Statutes from City Ordinance No. 58-75-4 and its amendments. It is intended to comply with Chapter 112, F.S. The plan year ends on September 30, and records are maintained on a plan year basis. The Board of Trustees is the Retirement System Administrator. The following individuals are members of the Board of Trustees: Timothy Townsend Chair J. Tom Wells Chair Pro-Tem Tony F. Downing Secretary Harry E. McNally Member Anne E. Minor Member The Board of Trustees is the agent for the service of legal process. Their address is: Atlantic Beach City Hall 800 Seminole Atlantic Beach, Florida 32233 A description of the benefits of the Retirement System and the sources of funding are attached. Claims for benefits should be filed with the Board of Trustees at the Human Resources Department. If a claim is denied, you will be notified and informed of the procedure to request a hearing before the Board of Trustees. Claim denials are generally limited to failure to meet the eligibility requirements for a benefit. As of September 30, 2003 there were 30 retired participants receiving annual benefits of $260,391 from the Retirement System. Active members totaled 84 with an annual payroll of $2,856,303. There were also 11 vested terminated members eligible for future benefits. City of Atlantic Beach General Employee Retirement _ 1 _ System ATTACHMENT SA OCTOBER 25, 2004 r l~ The City contributed $315,106 during the 2002-2003 fiscal year. The taxpayer contribution rates for the fiscal year, expressed as percents of payroll were as follows: Contribution for Normal Cost and Administrative Expenses FS 112.64(5) Compliance Unfunded Actuarial Accrued Liabilities City Contribution r Rate Employee Contribution Rate Total Percents of Active Member.Payroll 9.17% 0.10 2.54 11.81% 2.00% 13.81% The September 30, 2003 actuarial report indicated that the actuarial accrued liability under Governmental Accounting Standard No. 25 was 72.7% funded. Contributions to the System during the year were equal to or greater than the actuarially determined amount needed to comply with the provisions of Chapter 112, Florida Statutes. The actuary concluded that the contribution requirement is sufficient to meet the system's level percent-of-payroll funding objective, presuming continued receipt of contribution requirements when due. A copy of the annual audit report is available for inspection in the Finance Department. City of Atlantic Beach General Employee Retirement _2_ System ATTACHMENT SA OCTOBER 25, 2004 Summary of Benefit Provisions ~"` (September 30, 2003) Normal Retirement (no reduction factor for age): Eligibility -Age 60 with 5 or more years of service. Annual Pension -Total eligible City service times 2.85% of final average compensation. Total pension cannot exceed 100% of final average compensation. The normal form of pension is payable for life. Optional forms are available on an actuarial equivalent basis. Type of Final Average Salary -One-sixtieth (1/60) of the aggregate amount of compensation paid a member during the period of sixty (60) consecutive months of the member's credited service in which the aggregate amount of compensation paid is greatest. The sixty (60) months of credited service must be contained within the member's last one hundred twenty (120) months of credited service. If a member has less than sixty (60) months of credited service, final average compensation means the aggregate amount of compensation paid the member divided by the member's months of credited service. Early Retirement: Eligibility -Age 55 with 5 or more years of service. Annual Pension -Computed as a normal retirement pension with an actuarially equivalent reduction per year by which the member's age at retirement precedes the member's age 60. DROP (Deferred Retirement Option Plan): Eligibility -Age 55 with 5 or more years of service. - Members may continue employment for a maximum of 5 years. - Member contributions cease. - Actuarial equivalent reduction for entering the DROP prior to age 60. - DROP accounts will be self directed for investment purposes. - DROP members are not eligible for a Pension Plan death or disability benefits. Deferred Retirement (vested benefit): Eligibility - 5 or more years of service. Pension begins at normal retirement eligibility. Annual Pension -Computed as a normal retirement pension but based upon service and final average salary at time of termination of employment. Disability Retirement: Eligibility - 5 or more continuous years of service. Annual Pension -Computed as a normal retirement pension. Death Before Retirement: Eligibility - 5 or more years of service. Annual Pension -Computed as a normal retirement pension. ('ih~ nf~,dNnntir Ronrh (:onornl Fmnlrnmo Rotiromo»t.Cvctom _'j- ATTACHMENT SA OCTOBER 25, 200# Member Contributions: 2.0% of salary If you terminate employment and receive a refund of your own contributions, you forfeit any rights to future benefits from the Retirement System. The taxable portion (money contributed on a pre-tax basis) of any refund you receive is subject to an automatic 20% withholding for federal income tax purposes, and a possible 10% excise tax. These taxes can be avoided, however, if you roll the taxable portion over to an Individual Retirement Account (IRA) or another qualified employer plan. This rollover will result in no tax being due until you begin withdrawing funds from the IRA or other qualified employer plan. The rollover of the distribution, however, MUST be made directly by the Plan to your chosen IRA or other qualified employer plan. City Contributions: Actuarially determined amounts which are sufficient to cover the requirements of the funding objective. Overall Contributions: Following are the overall contribution rates for 2002, 2003 and 2004: Effective C~ Employee Total 10/01 /2002 11.81 % 2.00% 13.81 10/01/2003 12.72% 2.00% 14.72% 10/01/2004 15.02% 2.00% 17.02% Forfeiture of Retirement Benefits: Retirement benefits granted by the Retirement System are subject to forfeiture if an employee is convicted of an offense specified in Section 112.3173, Florida Statutes, pursuant to the procedures set forth in the cited statute. Claims Procedure: Claims for benefits should be filed with the Board of Trustees at the Human Resources Department. If a claim is denied, you will be notified and informed of the procedure to request a hearing before the Board of Trustees. The preceding summary briefly describes the principal benefits of the Retirement System. Said summary is not binding and should not be relied upon in any action concerning your participation in the System or benefit thereunder. Detailed benefit conditions and limitations are contained in the Pension Ordinance which established the System. Interpretations of the Ordinance are made by the Board of Trustees. The Ordinance and Board interpretations govern the operation of the System and should be consulted before you take any action concerning your participation or benefits. Copies are available at the Human Resources Department. ('ih~ of Ailn»tir Ron~h (~'onnrnl Fmnlrn~on Rotiromani .Cvetnm _a_ ATTACHMENT SA OCTOBER 25, 2004 Accounting Information Submitted for Valuation Revenues and Expenditures Revenues: a. Member Contributions b. City Contribution Total Contributions c. Investment income: 1. Interest and Dividends 2. Gain(loss) on investments 3. Investment expenses Total Investment Income d. Total revenues Expenditures: a. Refunds of member contributions b. Benefit payments c. Administrative expenses d. Total expenditures Net Income: Total revenues minus total expenditures September 30, 2003 September 30, 2002 $ 59,712 $ 57,505 315,106 288,070 374,818 345,575 5,838 15,076 531,784 (310,243) (42,525) (49,615) 495,097 (344,782) 869,915 793 7,511 14,720 264,634 254,472 0 0 $ 272,145 $ 269,192 $ 597,770 $(268,399) Summary of Assets (Market Value) September 30, 2003 September 30, 2002 Cash and equivalents $ 19,519 $ 16,140 Receivables none none Short term investment funds 26,701 2,381 U.S. Government Securities none none Bonds government none none corporate none none mutual fund 2,344,866 2,210,808 Stocks common none none preferred none none mutual fund 3,067,773 2,627,942 Payables (12,036) (8,218) Total assets $ 5,446,823 $ 4,849,053 ('ihi nf~.4tlnr~tir Ronrh (:onornl Fmnlmioo Rotiromonl.Cvctom _~_ ATTACHMENT SA OCTOBER 25, 2004 City of Atlantic Beach Police Officers' Retirement System Summary Annual Report The City of Atlantic Beach Police Officers' Retirement System is a defined benefit pension plan administered by a Board of Trustees. It was created by Chapter 99-1, Florida Statutes from City Ordinance No. 58-75-4 and its amendments. It is intended to comply with Chapters 112 and 185, F.S. The plan year ends on September 30, and records are maintained on a plan year basis. The Board of Trustees is the Retirement System Administrator. The following individuals are members of the Board of Trustees: Henry Bartle B. Dale Hatfield Tony F. Downing Harry E. McNally Richard T. Downes Chair Chair Pro-Tem Secretary Member Member The Board of Trustees is the agent for the service of legal process. Their address is: Atlantic Beach City Hall 800 Seminole Atlantic Beach, Florida 32233 A description of the benefits of the Retirement System and the sources of funding are attached. Claims for benefits should be filed with the Board of Trustees at the Human Resources Department. If a claim is denied, you will be notified and informed of the procedure to request a hearing before the Board of Trustees. Claim denials are generally limited to failure to meet the eligibility requirements for a benefit. As of September 30, 2003 there were 11 retired participants receiving annual benefits of $235,310 from the Retirement System. Active members totaled 22 with an annual payroll of $1,129,034. There were also 4 vested terminated members eligible for future benefits. City ofAtlantic Beach Police Officers' RetirementSystem -1- ATTACHMENT SA OCTOBER 25, 2004 The City contributed $155,752 and $88,641 was received under the provisions of Chapter 185, F.S., during the 2002-2003 fiscal year. The additional premium tax revenue under Chapter 99-1, Laws of Florida, as of September 30, 2003 was $33,782. The taxpayer contribution rates for the fiscal year, expressed as percents of payroll were as follows: Contribution for Normal Cost and Administrative Expenses Temporary full funding credit Unfunded Actuarial Accrued Liabilities Total Percents of Active Member Payroll 14.81% 0.26 2.98 18.05% The September 30, 2003 actuarial report indicated that the actuarial accrued liability under Governmental Accounting Standard No. 25 was 73.1 % funded. Contributions to the System during the year were equal to or greater than the actuarially determined amount needed to comply with the provisions of Chapter 112, Florida Statutes. The actuary concluded that the contribution requirement is sufficient to meet the system's level percent-of-payroll funding objective, presuming continued receipt of contribution requirements when due. A copy of the annual audit report is available for inspection in the Human Resources Department. City ofAtlantic Beach Police O~cers' Retirement System Board of Trustees -2- ATTACHMENT 5A Summary of benefit Provisi©ns OCTOBER 25, zoo4 ~.. (September 30, 2003) Normal Retirement (No reduction factor for age): Eligibility Any age with 25 years of service or age 50 with 20 or more years of service or age 60 with 5 or more years of service. Annual Pension Total service times 3.00% of final average salary. Total pension cannot exceed 100% of final average compensation. The normal form of pension is payable for life. Optional forms are available on an actuarial equivalent basis. Type of Final Average Salary One-sixtieth (1 /60) of the aggregate amount of compensation paid a member during the period of sixty (60) months of the member's credited service in which the aggregate amount of compensation paid is greatest. The sixty (60) months of credited service must be contained within the member's last one hundred twenty (120) months of credited service. If a member has less than sixty (60) months of credited service, final average compensation means the aggregate amount of compensation paid the member divided by the member's months of credited service. Early Retirement: Eligibility -Age 50 with 5 or more years of service. Annual Pension -Computed as a normal retirement pension with an actuarially equivalent reduction per year by which the member's age at retirement precedes the member's normal retirement age. DROP (Deferred Retirement Option Plan): Eligibility -Age 55 with 5 or more years of service. -Members may continue employment for a maximum of 5 years. -Member contributions cease. -Actuarial equivalent reduction for entering the DROP prior to normal retirement age. -DROP accounts will be self directed for investment purposes. -DROP members are not eligible for death or disability benefits. Deferred Retirement (Vested Benefit): Eligibility - 5 or more years of service. Pension begins at normal retirement eligibility. Annual Pension -Computed as a normal retirement pension but based upon service and final average salary at time of termination of employment. Disability Retirement: Eligibility - 5 or more continuous years of service. Service requirement waived for member if disability is incurred in the line of duty. Annual Pension -Computed as a normal retirement pension. Minimum benefit is 42% of final average salary for members if disability is incurred in the line of duty. !'iiiv of Atlnnti~ Ronrh Pnliro n~rorc' Rotiromont .wctom _~_ ATTACHMENT SA Death Before Retirement: OCTOBER 25, 2004 Eligibility - 5 or more years of service. Annual Pension -Computed as a normal retirement pension. Member Contributions: Police Bargaining Unit: 1.000% of salary Police -Other: 4.815% of salary If you terminate employment and receive a refund of your own contributions, you forfeit any rights to future benefits from the Retirement System. The taxable portion (money contributed on a pre-tax basis) of any refund you receive is subject to an automatic 20% withholding for federal income tax purposes, and a possible 10% excise tax. These taxes can be avoided, however, if you roll the taxable portion over to an Individual Retirement Account (IRA) of another qualified employer plan. This rollover will result in no tax being due until you begin withdrawing funds from the IRA of other qualified employer plan. The rollover of the distribution, however, MUST be made directly by the Plan to your chosen IRA or other qualified employer plan. Premium Tax Monies: A distribution of casualty insurance premium tax monies collected by the State pursuant to Chapter 185 Florida Statutes. City Contributions: Actuarially determined amounts which together with Chapter 185 monies are sufficient to cover the requirements of the funding objective. Overall Contributions: Following are the overall contribution rates for 2002, 2003 and 2004: Union Effective C~ Sec 185 Employee Total 10/01/2002 12.44% 5.61% 1.00% 19.96%* 10/01/2003 13.31% 5.43% 1.00% 20.65%* 10/01/2004 17.05% 7.26% 1.00% 26.33%* * Totals also include the non-union employee contribution rate of 4.815%. Forfeiture of Retirement Benefits: Retirement benefits granted by the Retirement System are subject to forfeiture if an employee is convicted of an offense specified in Sections 112.3173 and 185.185, Florida Statutes, pursuant to procedures set forth in the cited statutes. CLAIMS PROCEDURE: Claims for benefits should be filed with the Board of Trustees at the Human Resources Department. If a claim is denied, you will be notified and informed of the procedure to request a hearing before the Board of Trustees. The preceding summary briefly describes the principal benefits of the Retirement System. Said summary is not binding and should not be relied upon in any action concerning your participation in the System of benefit thereunder. Detailed benefit conditions and limitations are contained in the Pension Ordinance which established the System. Interpretations of the Ordinance are made by the Board of Trustees. The Ordinance and Board interpretations govern the operation of the System and should not be consulted before you take any action concerning your participation or benefits. Copies are available at the Human Resources Department. /'ihi nfAtlnnNi~ Ronnh Pnlina n~norc' Ralirnmo»t.Cvctom _d,_ ATTACHMENT SA OCTOBER 25, 2004 Accounting Information Submitted for [valuation Revenues and Expenditures Revenues: September 30, 2003 September 30, 2002 a. Member Contributions $ 24,283 $ 24,076 b. C ity Contribution 155,752 154,523 c. Premium taxes from State 88,641 85,719 Total Contributions 268,676 264,318 d. Investment income 1. Interest and dividends 2,732 7,271 2. Gain (loss) on investments 377,307 (227,068) 3. Investment expenses (34,705) (39,982) Total Investment Income 345,334 (259,779) e. Total revenues 614,010 4,539 Expenditures: a. Refunds ofinember contributions 551 2,581 b. Benefit payments 220,258 205,164 c. Administrative expenses 0 p d. Total expenditures $ 220,809 $ 207,745 Net Income: Total revenues minus total expenditures $ 393,201 $ (203,206) Summary of Assets (Market Value) Cash and equivalents Receivables Short term investment funds U.S. government securities Bonds government corporate mutual fund Stocks common preferred mutual fund Payables Total assets none none none 1,708,037 none none 1,911,063 (10,623) $ 4,004,235 ('ih~ of 4tlnnti~ Ranch Pn7iro n~~nrc' Rotiromon/ .Cvctom September30, 2003 September 30, 2002 $ 22,389 $ - none none 100 2,557 none none none 1,785,672 none none 2,204,685 (8,611) $ 3,611,034 _5_ ATTACHMENT SA OCTOBER 25, 2004 3 ~. r .... 3 i I i Y a Al fL~ (D cn ~ c ~ o a Cn ~ o ~ x ~ m i u 0 ~N to m ~ ~ ° 00 ° ~ °-~ ~ ~ 3 ° o~ - o D° ~ = ~ CD ~ .... ~ ° ~ O ~ n ~ ~ O CD O CD O. ~ ~ G ` O ~ C >v ~ 0 ~_ 0 a ~~ r~ n O CJ1 o ~ C7 CD •J rn cn r m ~ ~• ~, ... ~ ~ ~ ~ Q ~ can ~ O .~ ~ ~ ~ o ~' o 0 o m ~' ° o ~ ~ O p X N. ~ ~ CD C7 Q.. v ~ n CD CD C CD ~ (xj CD Ul CD ~ o ~ C O n (D ~ o ~_ ~ ~ CD ~ S X m X ~ X O ~ U1 A ~ ~ ~ O cn. X ~p (J7 ~ O ~ c7 C O N c) Cn A ¢ j ~ Cfl A c~ ~ `~, ~ ~ ~ ~ ~ cD ~ ~ N ~ Q ~ cD Q ~ ~ ~ ~ N Q- p '_'~ ~ ~ ~ `y ~ m~m lY aV m~ \Y `V ~ y O ^C` `V ~ ~ O • T V ~ p ~ T V O O• W ~ ~ T y T `y ° ~ (D ~ W ~ W ~ Q O o ~ ~ ? --« ~_ W \ I W ~ fp W o . X I O I ~ I p 3 I I W ~ ~ W Ul 'O W W N `< --• O ~ (`~D ~ ~ ~ ~ W ~ ~ ~ N S ~ ~ ~ ^. ~ (D CD X I C~7t A A N Z ~ y ~ ~ O ~ Z (D O p ~ ~ W N f~D ,p W W a o_~ ~ ~ Q. ~ CI1 N Z w cfl vii m m Z ~ O n ~ s (n fR O J N N D A~ ~. n fv n fD CD O Q. C ''N '~ '~ T V Q. CD n ^ ATTACHMENT SA OCTOBER 25, 2004 r 3 ... ~... ... cn w c -n ~ o m ~ ~ ° o ~ ~ ° i v 0 ' ~-~~ wo m ~ ~ ~ 00 :. ~ m ~ ~~3 o ~ m °-_o D~ ~ ~ o ~ o ~ o n CS (D ~ O . (D .+ (D O ~ ~ `G O O o C ~ .~ ~ 0 ~_ 0 t < ~o -~ ~ ~ -n ~o m rn U' ~' ~m m ~ m cn ~ ~ ~ c . ~ uoi ~.~ o m ~ w ~ ~ Q- ~ cs fA ? 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