02-12-01 v CITY OF ATLANTIC BEACH
0 CITY COMMISSION MEETING
February 12, 2001
AGENDA
Call to order
Invocation and pledge to the flag
1. Approval of the minutes of the Regular Commission Meeting of January 22, 2001
2. Courtesy of Floor to Visitors:
A. Presentation of Proclamation supporting National Child Passenger Safety Week and
Buckle Up Florida
3. Unfinished Business from Previous Meeting
A. Follow-up report from the regular meeting of January 22, 2001 (City Manager)
4. Consent Agenda:
ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE ROUTINE BY
THE CITY COMMISSION AND WILL BE ENACTED BY ONE MOTION IN THE FORM LISTED
BELOW. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS. IF DISCUSSION IS
fii DESIRED, THAT ITEM WILL BE REMOVED FROM THE CONSENT AGENDA AND WILL BE
CONSIDERED SEPARATELY. SUPPORTING DOCUMENTATION AND STAFF
RECOMMENDATIONS HAVE BEEN PREVIOUSLY SUBMITTED TO THE CITY COMMISSION ON
THESE ITEMS
A. Acknowledge receipt of monthly reports from Occupational License, Public Works,
and Recreation Departments(City Manager)
B. Reject all bids received under Bid No. 0001-9 for Dutton Island improvements and
authorize staff to modify the specifications and rebid the project(City Manager)
C. Approve the purchase of a New Holland Backhoe pursuant to the specifications of Bid
No. 0001-7 at a cost of$46,678.00 including extended warranty, and declare surplus
1986 JCB backhoe and approve trade in against purchase of New Holland (City
Manager)
D. Award contract to Commercial Sheet Metal Systems,Inc.,for steel beam replacement
at the Public Works Building pursuant to the specifications ofBid No.0001-8,at a cost
of$15,500(City Manager)
E. Extend contract with R.L. Lawrence Construction for concrete repairs, for one year
(Bid No. 9899-4)(City Manager)
F. Extend contract with Tom's Asphalt Repairs,Inc.,for asphalt repairs for one year(Bid
No. 9899-11)(City Manager)
G. Extend contract with Leachem Industries for the purchase of polymer for one year(Bid
No. 9899-2) (City Manager)
H. Award contract to SunState Enclosures,Inc. in the amount of$80,578.00 for CDBG
0 housing rehabilitation at six locations pursuant to the specifications of Bid No.0001-4
(City Manager)
Page Two AGENDA February 12, 2001
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I. Authorize the Mayor to sign transmittal form for the Annual Local Government
Financial Report (City Manager)
5. Committee Reports:
A. Kim Armstrong, First Night Steering Committee
6. Action on Resolutions:
A. Resolution No. 01-04
A RESOLUTION HONORING DETECTIVE ROBERT E. JACKSON FOR HIS
TWENTY-FIVE YEARS OF SERVICE AS AN OUTSTANDING POLICE
OFFICER FOR THE CITY OF ATLANTIC BEACH (City Manager)
7. Action on Ordinances:
A. Ordinance No. 80-01-63 - Introduction and First Reading
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA,
AMENDING CHAPTER 22, UTILITIES, ARTICLE I, IN GENERAL, ADDING
SECTION 22-4. AUTHORITY TO ADJUST CHARGES IN APPROPRIATE
CASES; ADDING SECTION 22-5. ACCOUNTS RECEIVABLE WRITE-OFFS,
PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE
8. Miscellaneous Business:
A. Approve Accounts Receivable Collections and Write-offPolicies and Procedures(City
Manager)
B. Action on an application for a Use-by-Exception filed by G.B. & M. Enterprises to
provide cremation services at 157 Levy Road,zoned Industrial Light and Warehousing
(ILW) (City Manager)
C. Approve CDBG budget reallocation and authorize staff to work with the City of
Jacksonville Planning Department to adjust the budget as required (City Manager)
D. Authorize the Mayor to execute Amendment to Memorandum of Agreement with JTA
regarding retention ponds at the intersection of Atlantic Boulevard and Mayport Road
(City Manager)
E. Action on recommendation regarding COLA increase for retirees (City Manager)
F. Authorize Palmer and Cay Consulting Group to conduct a classification and pay study,
and authorize the City Manager to identify a funding source and provide for the same
in a mid-year budget modification(City Manager)
G. Set date for a public hearing on the new zoning ordinance (City Manager)
H. Discussion and possible action on swap of property with WQOP Radio Station on
Atlantic Boulevard (City Manager)
9. City Manager Reports:
10. Reports and/or requests from City Commissioners and City Attorney
Adjournment
Page Three AGENDA February 12, 2001
If any person decides to appeal any decision made by the City Commission with respect to any matter considered at any meeting,
such person may need a record of the proceedings,and,for such purpose,may need to ensure that a verbatim record of the proceedings
is made,which record shall include the testimony and evidence upon which the appeal is to be based.
Any person wishing to speak to the City Commission on any matter at this meeting should submit a request to the City Clerk prior
to the meeting. For your convenience,forms for this purpose are available at the entrance to the Commission Chambers.
Every effort is made to indicate what action the City Commission is expected to take on each agenda item. However,any agenda
subject,regardless of how the matter is stated on the agenda,may be acted upon by the City Commission.
In accordance with the Americans with Disabilities Act and Section 286.26,Florida Statutes,persons with disabilities needing special
accommodation to participate in this meeting should contact the City Clerk by 5:00 PM,Friday,February 9,2001.
✓ v
O O
MINUTES OF THE REGULAR MEETING OF THE ATLANTIC T T
BEACH CITY COMMISSION HELD IN CITY HALL,800 SEMINOLE E E
• ROAD AT 7:15 P.M. ON MONDAY,FEBRUARY 12, 2001 S S
PRESENT: John Meserve, Mayor
Richard Beaver, Mayor Pro Tern
Mike Borno
Theo Mitchelson
Dezmond Waters, Commissioners
AND: James Hanson, City Manager M S
Alan C. Jensen, City Attorney 0 E
Maureen King, City Clerk T c
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COMMISSIONERS
The meeting was called to order by Mayor Meserve at 7:15 p.m. The
Invocation, given by Mayor Meserve was followed by the Pledge of
Allegiance to the Flag.
1. Approval of the minutes of the Regular Meeting held
• January 22, 2001
The minutes were unanimously approved as presented.
2. Courtesy of the floor to visitors:
Craig Burkhart, representing Beaches Habitat,reported concerning
the construction of Habitat homes on Jasmine Street at the site of an old
landfill. Mr. Burkhart reported that water samples taken on the site met
state and federal standards for water quality. He further reported that the
overburden found on the first two lots would be removed to EPA
standards and replaced with fill. Mr. Burkhart indicated it was their
intent to begin with the first two lots and see if it was economically
feasible to continue working with the remaining lots.
Nancy White of 1729 Seminole Road spoke in opposition to the city
purchasing the Pic 'N Save building. She felt the purchase price was to
high and that maintenance and insurance on the building would be too
costly. She felt the Better Jacksonville money the city will receive
would be better spent on infrastructure projects.
Jessica Sale of 2238 Beachcomber, Secretary to the Teen Council,
• spoke in support of the purchase of the Pic 'N Save building as a place to
stage the Teen Council's indoor events.
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Pat Pillmore of 995 Camelia Street suggested that a parking
garage/multi-purpose facility be built at the Pic 'N Save site.
As a former member of the Community Development Board, she
believed the city granted permission for the rental properties on Beach
Avenue by approving their construction and/or renovation.
Presentation of Proclamation supporting National Child Passenger
Safety Week and Buckle Up Florida
Mayor Meserve read the Proclamation in its entirety supporting National
Child Passenger Safety Week and Buckle Up Florida. The proclamation
was given to Chief Thompson who briefly spoke on the importance of
using seat belts and child safety seats to reduce injuries and fatalities in
crashes.
Commissioner Mitchelson suggested that a resolution be drafted
supporting of the use of seat belts and child safety seats and making it a
primary offense against adults not using seat belts. It was the consensus
of the Commission to draft the resolution and send a copy to the Duval
• Legislative Delegation.
3. Unfinished Business from Previous Meeting
A. Follow-up report from the regular meeting of January 22,
2001 (City Manager)
City Manager Hanson commented on the following matters:
Barking Dog Complaints -639 Aquatic Drive
• Recapped the events as listed in his memo and stated that the
Police Department would continue to monitor the situation, but
there was little recourse as long as Mr. Nordby declines to sign
an affidavit attesting to the violation.
Pic 'N Save Property
• Reported that the owners of the property were aware of the
potholes in the parking lot.
Stormwater Drainage Requirements
• Reported concerning a discussion on stormwater drainage at a
previous workshop and indicated that after investigation, he
• believed the city had adequate stormwater drainage regulations for
new subdivisions, but did not have adequate regulations to control
drainage when older structures were being rebuilt or remodeled.
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He stated that he would prepare an ordinance addressing this
matter for the next agenda.
4. Consent Agenda
Commissioners Beaver and Mitchelson requested that Items B and G
respectively, be removed from Consent Agenda for discussion.
A. Acknowledge receipt of monthly reports from Occupational
License, Public Works, and Recreation Departments (City
Manager)
C. Approve the purchase of a New Holland Backhoe pursuant to
the specifications of Bid No. 0001-7 at a cost of$46,678.00
including extended warranty, and declare surplus 1986 JCB
backhoe and approve trade in against purchase of New
Holland (City Manager)
D. Award contract to Commercial Sheet Metal Systems, Inc., for
steel beam replacement at the Public Works Building
• pursuant to the specifications of Bid No. 0001-8, at a cost of
$15,500 (City Manager)
E. Extend contract with R.L. Lawrence Construction for
concrete repairs, for one year(City Manager)
F. Extend contract with Tom's Asphalt Repairs, Inc., for asphalt
repairs for one year(City Manager)
H. Award contract to SunState Enclosures, Inc. in the amount of
$80,578.00 for CDBG housing rehabilitation at six locations
pursuant to the specifications of Bid No. 0001-4 (City
Manager)
I. Authorize the Mayor to sign transmittal form for the Annual
Local Government Financial Report(City Manager) BEAVER X X
BORNO X X
Motion: Approve Consent Agenda Items A, C-F, H and I MITCHELSON X
as recommended. WATERS X
MESERVE X
There was no discussion and the motion carried unanimously.
• B. Reject all bids received under Bid No. 0001-9 for Dutton
Island improvements and authorize staff to modify the
specifications and rebid the project(City Manager)
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Motion: Reject all bids received under Bid No. 0001-9 for BEAVER X X
Dutton Island improvements and authorize staff to modify the BORNO X
specifications and rebid the project. MITCHELSON X
WATERS X X
Commissioner Beaver stated he was disappointed in the design provided MESERVE X
by Landers-Atkins since they were instructed to design the park keeping
in mind a budget of$250,000 for the project. The lowest bid submitted
was $580,260. He felt they had not done their job properly.
City Manager Hanson pointed out several cost estimate errors and
explained that staff will modify the plans to get the costs down. It was
expected that Landers-Atkins would provide additional design work at no
additional cost to the city.
Commissioner Waters inquired as to why the city could not use the
existing water well on the island. Chief Thompson explained that the
history of the well was unknown and the St. Johns River Water
Management District (SJRWMD) required that it be capped.
There was no further discussion and the motion carried unanimously.
• G. Extend contract with Leachem Industries for the purchase of
polymer for one year(City Manager)
Motion: Extend contract with Leachem Industries for the BEAVER X
purchase of polymer for one year. BORNO X x
MITCHELSON X X
WATERS X
Commissioner Mitchelson inquired if there would be any savings if the MESERVE X
city piggybacked on the City of Jacksonville bid for polymer.
Utility Director Kaluzniak explained that polymer used for dewatering
sludge, was an individual thing and the product and price from Leachem
Industries was good. It was further explained that the City of
Jacksonville used a different type of polymer than the City of Atlantic
Beach.
There was no further discussion and the motion carried unanimously.
5. Committee Reports:
A. Kim Armstrong, First Night Steering Committee
• Kim Armstrong, Executive Director of First Night Programs for the city,
stated that she had received a great deal of public interest in the program
and reported that a Board of Directors was in place. Ms. Armstrong
indicated that a meeting for volunteers would be held February 21", the
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paperwork for the 501 (c)(3) plan was nearly completed, and the
fundraiser was being planned for Saturday, May 12th aboard the St. John's
River ferry.
6. Action on Resolutions:
A. Resolution No. 01-04
A RESOLUTION HONORING DETECTIVE ROBERT E.
JACKSON FOR HIS TWENTY-FIVE YEARS OF SERVICE
AS AN OUTSTANDING POLICE OFFICER FOR THE
CITY OF ATLANTIC BEACH (City Manager)
BEAVER X X
Motion: Adopt Resolution No. 01-04 honoring Detective BORNO X
MITCHELSON X X
Robert E. Jackson for twenty-five years of outstanding service WATERS X
to the City of Atlantic Beach. MESERVE X
It was reported that after retiring, Detective Jackson had moved to
Georgia and would not be present. The framed resolution will be
forwarded to him.
• The motion carried unanimously.
7. Action on Ordinances:
A. Ordinance No. 80-01-63 - Introduction and First Reading
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, AMENDING CHAPTER 22, UTILITIES,
ARTICLE I, IN GENERAL, ADDING SECTION 22-4.
AUTHORITY TO ADJUST CHARGES IN APPROPRIATE
CASES; ADDING SECTION 22-5. ACCOUNTS
RECEIVABLE WRITE-OFFS, PROVIDING FOR
SEVERABILITY; PROVIDING AN EFFECTIVE DATE
Mayor Meserve read the ordinance by title only. BEAVER X
BORNO X X
Motion: Approve Ordinance No. 80-01-63 on first reading. MITCHELSON X X
WATERS X
MESERVE X
Commissioner Mitchelson inquired concerning the dollar amounts to be
written-off.
City Manager Hanson briefly explained the procedure and dollar amounts
to be written-off, as recommended by the city's auditors to provide for
write-offs of past due accounts receivable.
IIIThe final reading and public hearing will be held on February 26`h.
There was no discussion and the motion carried unanimously.
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8. Miscellaneous Business:
A. Approve Accounts Receivable Collections and Write-off
Policies and Procedures (City Manager) BEAVER X
BORNO X X
Motion: Approve accounts receivable collections and write-off MITCHELSON I X
policies and procedures. WATERS X
MESERVE X
City Manager Hanson briefly explained the proposed policies and
procedures and stated that the city would be requesting proposals from
collection agencies to aid the city in effectively working accounts in a
timely manner to reduce write-offs.
Commissioner Mitchelson inquired if the procedures included any
provision for adjustments due to water leaks. It was explained that the
computer program had built-in high and low limits and if a leak was
suspected, the customer could be contacted directly or a door hanger
used.
0 There being no further discussion, the motion carried unanimously.
B. Action on an application for a Use-by-Exception filed by G.B.
& M. Enterprises to provide cremation services at 157 Levy
Road,zoned Industrial Light and Warehousing (ILW) (City
Manager)
Motion: Accept the recommendation of the Community BEAVER X
Development Board and approve the use-by-exception filed BORNO X X
by G.B. and M. Enterprises to provide cremation services at MITCHELSON X
157 Levy Road on property zoned Industrial Light WATERS X
MESERVE X
Warehousing (ILW). (Subject to the conditions that the
applicant meet all state regulations associated with cremation
services, that the applicant provide the number of parking spaces
as per Section 24-161(g)(12), and that the applicant meet the
landscaping provisions of Section 24-177).
Commissioner Borno inquired if the motion should include the
stipulations that the exception be granted to the applicant only and for
this location only.
Community Development Director Worley responded that those
410 requirements were implicit in any use-by-exception recommendation
from the Community Development Board and were always part of the
Board's recommendation.
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Amendment to the motion: Include the following additional BEAVER X
conditions: that the exception be granted to the applicant only BORNO X X
and for this location only. MITCHELSON X
WATERS X X
Following brief discussion, the amendment to the motion and main MESERVE X
motion carried unanimously.
C. Approve CDBG budget reallocation and authorize staff to
work with the City of Jacksonville Planning Department to
adjust the budget as required (City Manager)
BEAVER X
Motion: Approve CDBG budget reallocation and authorize BORNO X X
staff to work with the City of Jacksonville Planning MITCHELSON X x
Department to adjust the budget as required. WATERS x
MESERVE x
There being was no discussion and the motion carried unanimously.
D. Authorize the Mayor to execute Amendment to Memorandum
of Agreement with JTA regarding retention ponds at the
intersection of Atlantic Boulevard and Mayport Road (City
• Manager)
Motion: Authorize the Mayor to execute Amendment to BEAVER X X
Memorandum of Agreement with JTA regarding retention BORNO x x
MITCHELSON X
ponds at the intersection of Atlantic Boulevard and Mayport WATERS x
Road. MESERVE X
City Manager Hanson requested that an additional recommendation be
included to amend the boundaries of Tideview Preserve to include the
newest property acquired by the city with the exception of that portion
which would be utilized by JTA for the retention pond.
BEAVER X X
Amendment to the motion: Include the additional land in the BORNO X X
boundaries of Tideview Preserve. WATERSLSON X
WATERS X
MESERVE X
Commissioner Waters requested that the City Manager review the
properties and explain the location of the new retention pond.
Commissioner Waters requested that a revised map showing the new
boundaries of Tideview Preserve be provided for the Commissioners.
City Manager Hanson indicated that he would have a revised map for
them at the next Commission meeting.
There being no further discussion, the motion carried unanimously.
•
E. Action on recommendation regarding COLA increase for
retirees (City Manager)
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Motion: Defer discussion of the COLA increase for retirees toI
be considered during the upcoming budget process. BEAVER X
BORNO X
MITCHELSON X X
City Manager Hanson explained his recommendation as written in his WATERS X X
memo dated February 5, 2001 which is attached and made part of this MESERVE X
official record as Attachment A.
Discussion ensued and Mayor Meserve indicated that he still had some
unanswered questions and felt it would be best to take a measured
approach to the request through the budget process. Commissioner
Borno concurred with following the budget process.
Commissioner Beaver inquired if money was already budgeted for the
increase and City Manager Hanson responded that no money had been
included in the current fiscal year budget for the increase.
There being no further discussion, the motion carried unanimously.
F. Authorize Palmer and Cay Consulting Group to conduct a
classification and pay study, and authorize the City Manager
S
to identify a funding source and provide for the same in a
mid-year budget modification (City Manager)
Motion: Authorize Palmer and Cay Consulting Group to BEAVER X
conduct a classification and pay study, and authorize the City BORNO X X
Manager to identify a funding source and provide for the MITCHELSON X X
WATERS X
same in a mid-year budget modification in the amount of MESERVE X
$7,175 for a total of$15,175 to cover this item.
Commissioner Borno commented that the cost was higher than
anticipated, but the study was needed. Discussion ensued concerning a
funding source for the additional funds. City Manager Hanson indicated
that he had not had a chance to review the budget for a funding source,
but would do so and bring the information back to the Commission for
approval.
City Manager Hanson reported that the study would be completed in 120
days and results should be available for the next fiscal year budget.
There being no further discussion, the motion carried unanimously.
G. Set date for a public hearing on the new zoning ordinance
• (City Manager)
Mayor Meserve commented that several workshops had taken place and a
revised draft of the zoning ordinance reflecting the proposed changes had
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been received. He felt a workshop to further discuss a few issues which
had been brought up, should be held. Mayor Meserve requested that a
summary of the significant changes to the ordinance and a copy of the
draft ordinance be made available to the public before the first public
hearing. After the first public hearing, the Mayor suggested holding
another workshop before the final public hearing.
Discussion ensued and it was agreed to place a display ad in the
newspaper summarizing the proposed changes.
Discussion ensued and it was the consensus of the Commission to hold a
workshop at 5:00 p.m. on Monday, February 26, 2001, at which time the
date for the first public hearing will be set.
Commissioner Beaver requested that the summary be provided as soon as
possible before the workshop.
H. Discussion and possible action on swap of property with
WQOP Radio Station on Atlantic Boulevard (City Manager)
• City Manager Hanson indicated that no action was required on this item
and reported that the radio station had accepted the offer from the JTA
for the property immediately in front of the building. City Manager
Hanson indicated he would continue to monitor this matter.
9. City Manager Reports:
In addition to his written report, City Manager Hanson reported on the
following:
Strategic Planning Sessions
• Reported that the Strategic Planning Sessions had been set for
Monday, March 5th at 5:00 p.m. and Saturday, March 31" at 8:00
a.m. to noon.
Septic Tank Update
• Reported that as of last May there were 275 septic tanks in
Atlantic Beach and since that time, 18 had connected to sewer
without city assistance, 15 had connected with city assistance for
financing, and sewer service was found to be unavailable to 14
• properties.
Air Show Agreement
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• Reported that the final air show agreement had been received and I
the City of Jacksonville would like to have it signed as soon as
possible. He briefly outlined the provisions of the agreement and
stated that little had changed from the draft which was previously
presented. Each beach city will contribute $10,000 sponsorship
money and will have no legal liability for the event. It was further
reported that the three beach cities would be primarily responsible
for police services, crowd and traffic control, parking, and refuse
collection within their respective city limits.
BEAVER I X
Motion: Authorize the Mayor to execute the Interlocal BORNO X X
Agreement for the 2001 Air Show. MITCHELSON X
WATERS X
MESERVE X
The motion carried unanimously.
• Distributed copies of the Annual Audit Report to the
Commissioners.
10. Reports and/or requests from City Commissioners and City
Attorney
IIICommissioner Beaver
Trees - Seminole Road
• Reported that 15 gallon Palatka Holly, Sycamore and Crepe
Myrtles purchased with tree mitigation funds were being planted
on Seminole Road.
Parks and Recreation Board - Beautification Committee
• Reported that he had met with Parks and Recreation Board and
Beautification Committee Members and will present his
recommendations for restructuring these groups at a future
meeting.
Commissioner Borno
• Felt trees located on public rights-of-way should be exempt from
the tree ordinance and the ordinance should be changed to reflect
the same.
Commissioner Mitchelson
• • Stated that instruction/application forms for the Teen Council
Scholarship were available in the City Clerk's office and the
deadline for applying was March 15th.
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• Referenced a copy of the FCC regulations pertaining to
communications antennae and stated he would like to look for
ways to regulate the height of antennae.
Commissioner Waters
• Requested information concerning the number of new septic tanks
installed in the city.
• Referenced a letter received concerning a skateboard accident and
stated he would support locating a skateboarding area in Jack
Russell Park. He reiterated his position to get the skateboarders
involved with setting up the park. He felt skateboarding was
inappropriate in Bull Park.
• Expressed his displeasure with the types of trees being planted on
Seminole Road. He favored Magnolias and Live Oaks which he
felt in time would provide a needed tree canopy.
Mayor Meserve
• • Reported that the skateboarding and safety issues associated with
their use should be addressed as soon as possible.
• Reported on the Join Together Jacksonville Meeting he attended
which provides a program to stop drug and alcohol abuse among
children and teenagers. He was disturbed to learn that drug and
alcohol abuse was higher at the beach than the rest of Duval
County.
There being no further discussion or busine§s to come before the
Commission, the Mayor declared the mee 'rig ad I.urned at 9:15 p.m.
o Me.erve
May•r/l resi•'ng Officer
ATTEST:
• Maureen King
Certified Municipal
ATTACHMENT A
- FEBRUARY 12, 2001 COMMISSION MEETING-
STAFF REPORT
• CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
AGENDA ITEM: Consider Recommendation For Providing COLA Increase To
Retirees
DATE: February 5, 2001
SUBMITTED BY: Jim Hanson . �!
BACKGROUND: In 1981, the City Comm'.sion of Atlantic Beach adopted a
resolution directing the City Manager to "review the City of
Atlantic Beach Pension Plan and Ordinance to make
recommendations concerning any needs for increases in benefits for
members of the retirement program...at three year intervals from
June 1, 1981." The City Commission has since made changes to
improve the benefits of retirees in October of 1987, October 1993
and January 1997.
• In late 1998, a previous City Manager requested that the Pension
Board consider the retiree COLA issue. In July of 1999, the
Pension Board received a report from the actuaries estimating the
cost of various one time COLA increases and automatic COLA
provisions. After consideration of the various options, the Pension
Boards (now split into two separate boards) made a
recommendation to the City Commission last month for a five
percent COLA increase.
DISCUSSION: The Commission's 1981 resolution did not specify any factors for
the City Manager to consider in recommending benefit changes,
although a consideration of affordability at each three year
"window" is implicit. The Atlantic Beach Commission in 1981
probably understood that adopting an automatic COLA provision
for retirees would cost more than the City could afford. Few cities
have such provisions. The 7/99 Actuary Report estimated the cost
of an annual COLA with a max. 2% increase/year to be $155,144
annually and a max three percent COLA at $231,034 annually.
What reasons would the City have for providing a COLA increase
for retirees and can the City afford it? Fairness could be one
• important reason. A possible inducement to recruiting, or
AGENDA ITEM#8E
FEBRUARY 12,2001
• providing a COLA as a reward for employees' past service could
also be reasons.
Is a COLA increase needed to be fair with our employees? The
most direct way to answer this question would be a comparison
with other cities. The report provided in a recent Commission
meeting (also attached to this report) shows that Atlantic Beach's
retirement provisions are better than other cities surveyed
comparing the amount of retiree benefit to the amount the
employee made prior to retiring (multiplier). Also, the amount of
the contribution required from employees is lower in Atlantic
Beach than in other cities compared (2 percent versus 4 percent,
6.45 percent and 6.5 percent).
A one time COLA increase as an inducement to recruiting would
probably have little value. Most new hires are far to focused on
the salary, with little or no consideration given to retirement
benefits. While it may be plausible that an automatic COLA
provision would provide some incentive for employee recruitment,
the possibility of receiving one time COLA increases in the future
will probably do little to attract any recruits. From a business
perspective, an increase in starting salaries may be more urgently
needed as evidenced by the City's recent difficulty in filling vacant
positions. The Pay Plan and Compensation Study is expected to
include recommendations for the Commission to consider in
connection with next year's budget.
This leaves the rationale for giving a COLA as a reward for past
service. Thus, the question of providing a COLA is not a
business decision but a value judgement which would best be made
by the Mayor and Commission.
Can the City afford it? The Pension Fund actuary has estimated
the cost at $8,412/yr for a 30 year period. While retiree benefits
would increase immediately, the City's cost would not increase
until the next fiscal year. However, the long term cost is significant
and my recommendation to the Commission for virtually all items
that have significant long term impact is to reserve judgement until
the time of the annual budget consideration. Then all public
projects/expenditures can be weighed against the cost paid by the
community for those in terms of taxes, utility rates and other fees.
The balancing of all of these interests is usually the single most
important and difficult decision that the Mayor and Commission
• will make in any given year.
AGENDA ITEM#8E
FEBRUARY 12,2001
One possible alternative to waiting for the budget process
• would be to consider the next actuarial evaluation of the
Pension Funds which should be received in March or April. If
this report lowers the City's contribution rate (as a
percentage of payroll dollars), one possible reason for taking
up the issue would be that it would not be an increase over
what the City is already paying.
RECOMMENDATIONS: 1) Delay consideration of the one time retiree COLA until the
upcoming budget process this summer, or
2) The City Commission may consider approving the five percent
one time COLA for retirees if the annual evaluation shows a
reduction in City contribution as a percentage of salary dollars.
ATTACHMENTS: - Pension Comparison Information (Comparing Atlantic Beach
with other cities)
- Letter from Pension Boards dated January 3, 2001
- Pension Funded Ratio (1975 to 1999)
- City Contribution Rate as a Percent of Payroll (1975 to
2000)
- July 15, 1999 report from Brad Armstrong of Gabriel,
• Roeder, Smith and Company
•
AGENDA ITEM#8E
FEBRUARY 12,2001
PENSION COMPARISON INFORMATION
• Atl Beach =
City of Atlantic Bech
Jax Beach = City of Jacksonville Beach
Fern Beach = City of Fernandina Beach
St. Augustine = City of St. Augustine
Neptune Beach. Neptune Beach was not utilized within this comparison as they have a
Defined Contribution Plan and not a Defined Benefit Plan.
Jacksonville. The City of Jacksonville was not utilized as the City of Jacksonville
does not participate within the Social Security program.
The Benefit Formula determines the employees retirement benefit and consists of multiplying the
employee's Final Average Salary (FAS) times the employee's Years of Creditable Service (YOS)
- times a multiplier. The multiplier utilized by different Cities is indicated below.
GENERAL EMPLOYEES: Atl Jax Fern St.
Beach Beach Beach Augustine
COLA Provision: No No No No
COLAs Provided: 2* 0 0* 1
. Retirement age (Notel): 60 60 55 60
Years of service (Note 1): 5 5 25 10
Mutiplier: 2.85% 2.50% 2.75% 2.50%**
Employee Contribution: 2.00% 6.45% 6.50% 4.00%
City Contribution: 11.24% 0.00% 7.90% 7.15%
* Currently considering providing COLA to retirees.
** Benefit multiplier reduces to 2% at Social Security eligibility, i.e., age 65.
POLICE EMPLOYEES: Atl Jax Fern St.
Beach Beach Beach Augustine
COLA Provision: No No No Yes
COLAs Provided: 2* 0 0* 7***
Retirement age (Note 1): 50 55 Any 52
Years of service (Note 1): 20 30 25 25
Mutiplier: 3.00% 3.00% 2.75% 2.50%**
Employee Contribution: 1.00% 6.45% 6.90% 4.00%
City Contribution: 10.33% 6.00% 3.80% 2.50
* Currently considering providing COLA to retirees.
** Benefit multiplier reduces to 2% at Social Security eligibility, i.e., age 65.
• *** Will receive up to a 3% COLA if City contribution rates do not increase.
NOTE 1. Most common retirement option listed. Other retirement options may be available
including early retirement with reduced benefits or a DROP plan.
AGENDA ITEM#8E
FEBRUARY 12,2001
,-, 1_,;-'•V*-- CITY OF ATLANTIC BEACH
ill
, �? r 800 SEMINOLE ROAD
i= �;�, ATLANTIC BEACH, FLORIDA 32233-5445
�a11
TELEPHONE: (904) 247-5800
- -.- �. J FAX (904) 247-5805
j � SUNCOM: 852-5800
' ' http://ci.atlantic-beach.fi us
x?
January 3, 2001
MEMORANDUM
TO: Honorable Mayor and City Commissioners
SUBJECT: Cost of Living Adjustment (COLA) for Retirees
• The Police and General Employee Pension Boards respectively request that the City Commission
approve a one-time cost-of-living adjustment (COLA) of five percent (5%) for all City retirees
and beneficiaries to be effective January 2001.
City retirees are not provided with a Cost of Living Adjustment (COLA) except on a exception
basis as approved by the City Commission. The last COLA received was a three percent (3%)
COLA on January 1, 1997 which was "a one-time cost-of-living adjustment" provided to all
retirees and beneficiaries who retired prior to January 1, 1997. Since the City's pension plans
were established in September 1975, retirees have received two COLAs (a 3% COLA in 1997 and
a 12.5% COLA in 1987) and one re-computation of retirement pay in 1993 based upon a change
to the retirement multiplier.
Based upon an actuarial evaluation completed by Gabriel, Roeder, Smith & Company, the
adoption of this proposal would require an additional City contribution of 0.18% of salary
($4,032 annually) for General employees and 0.43% of salary ($4,380 annually) for Police Officer
employees.
Sincerely,
/' /
. oe 14•PIM...iiiiiilAti
• On. • Anderson Tim To end
Chairperson, Cha • rson,
Police Pension Board General Employee Pension Board
A(;J NDA ITEM#8E
FEBRUARY 12,2001
41110 PENSION PLAN
FUNDED R.A.TIO
09/30/99 80.2 % funded ratio for General Employees' Plan.
83.0 % funded ratio for Police Employees' Plan.
State mandated separate pension plan accountability.
09/30/98 77.9 % funded ratio.
Fire Pension assets transferred to City of Jacksonville.
10/01/97 -- Police union employees contribution rate changed from 2.315% to 1.00%.
09/30/97 80.2 % funded ratio.
If excess gains were not deferred over five years, the Funded Ratio would be
87.0%.
01/01/97 -- 3% one-time COLA provided to retirees.
10/01/96 -- Police union employees contribution rate changed from 4.815% to 2.315%.
09/30/96 78.6 % funded ratio.
09/30/95 77.0 % funded ratio.
The 09/30/95 report adopted an increased member termination assumption.
09/30/94 75.1 % funded ratio.
State mandated, for future actuarial valuations, use of mortality rates not less
than those of the 1983 Group Annuity Mortality Table. Implementation of this
mandate increased the contribution requirement and decreased the funded
• percent as the mortality rates in the 1983 table were lower than in the table
being utilized.
09/30/93 83.4 % funded ratio.
Benefits were changed, effective October 25, 1993, as follows:
1) General benefit factor increased from 2.25% to 2.85% for active and
retired members and some vested terminated members (from 2.0% to
2.85% for the remaining vested terminated members).
2) Police/Fire benefit factors changed from 2.4% to 3.0% for active and
retired members and some vested terminated members (from 2.0% to 3.0%
for the remaining vested terminated members).
3) Voluntary retirement for Police was changed to any age with 25 or more
years of credited service or at age 50 with 20 or more years of credited
service. Previous eligibility was age 55 with 20 or more years of credited
service. Eligibility at age 60 with 5 years of credited service remained
unchanged.
4) Police/Fire eligibility requirement for disability in the line of duty changed
from 5 years to 0 years.
5) Retired General employee had their retired pay re-computed with the
2.85% factor.
6) Retired Police employees had their retired pay re-computed with the 3.00%
factor.
7) General employee contribution rate increased from 1% to 2%.
• 8) Police union employee contribution rate increased from 1% to 4.815%
Reference Ord. Nr. 58-93-19A
09/30/92 95.1 % funded ratio.
09/30/91 91.1 % funded ratio.
09/30/90 96.2 % funded ratio.
t1VL'111tH 11 LJY1 fiat
FEBRUARY 12,2001
09/30/89 104.3 % funded ratio.
• 09/30/88 98.5 % funded ratio.
10/26/87 -- Changed vesting from 10 years to 5 years.
Benefit factor for General changed from 2% to 2.25%.
Benefit factor for Police changed from 2% to 2.40%.
Police member contributions shall be no less than 1%.
General member contributions shall be no less than 1%
Note: Retirees were provided with the 12.5% COLA and did not have their
retirement pay re-computed with the increased factors.
Reference Ord Nr. 5 8-87-8
10/26/87 -- One time 12.5 % COLA provided to all retirees October 1, 1987.
Reference Ord Nr. 58-87-9.
09/30/87 99.5 % funded ratio.
09/30/86 113.3 % funded ratio.
09/30/85 109.9 % funded ratio.
09/30/84 Not available
09/30/83 101.1 % funded ratio.
09/30/82 96.1 % funded ratio.
09/30/81 82.2 % funded ratio.
09/30/80 68.4 % funded ratio.
09/30/79 66.9 % funded ratio.
09/30/78 60.2 % funded ratio.
• 09/30/77 44.7 % funded ratio.
09/30/76 26.5 % funded ratio.
09/30/75 12.4 % funded ratio.
Initial Plan
Benefit factor of 2% for Police and 2% for General.
There were no employee contributions to the plan.
WP//gaff/MyFiles//Pensiod/Funded-Ratio-Changes
•
AGENDA ITEM#8E
FEBRUARY 12,2001
• PENSION PLAN
CITY CONTRIBUTION RATE
AS A PERCENT OF PAYROLL
GENERAL POLICE
10/01/00 11.24 % 10.330 %
10/01/99 11.58 % 10.193 %
10/01/98 11.94 % 10.575 %
10/01/97 11.99 % 11.445 %
10/01/96 11.12 % 7.595 %
10/01/95 10.85 % 14.945 %
10/01/94 9.57 % 11.315 %
10/01/93 9.02 % 10.4.60 %
10/01/92 9.27 % 11.150 %
10/01/91 9.89 % 12.770 %
10/01/90 Unavailable Unavailable
10/01/89 9.20 % 11.550 %
• 10/01/88 9.69 % 10.320
10/01/87 9.24 % 8.360 %
10/01/86 Unavailable Unavailable
10/01/85 Unavailable Unavailable
10/01/84 Unavailable Unavailable
10/01/83 Unavailable Unavailable
10/01/82 9.91 % 7.610 %
10/01/81 Unavailable Unavailable
10/01/80 Unavailable Unavailable
10/01/79 Unavailable Unavailable
10/01/78 Unavailable Unavailable
10/01/77 Unavailable Unavailable
10/01/76 Unavailable Unavailable
10/01/75 Initial Plan
•
AGENDA ITEM#8E
FEBRUARY 12,2001
CITY OF ATLANTIC BEACH EMPLOYEES RETIREMENT SYSTEM •
• GENERAL-POLICE-FIRE MEMBERS .
PROPOSALS UNDER CONSIDERATION
SUBMITTED TO: The Board of Trustees
DATE: July 15, 1999
SUBMITTED BY: Brad L. Armstrong,ASA,EA
Gabriel, Roeder, Smith& Company
BACKGROUND
This report contains the results of supplemental actuarial valuations requested to determine the costs
associated with changes under consideration for all General and Police members and Fire retired
members and beneficiaries. The proposed changes for Proposal 1 and 2 were valued to be funded
• . entirely by additional city contributions and for Proposal 3 were valued to be funded entirely by
additional member contributions.
Except as other wise noted, valuation data, methods and assumptions were the same as those used for
the annual actuarial valuation as of September 30, 1998. Increases in unfunded actuarial accrued
liability were amortized as level percent of payroll over 30 years. The member data as of
September 30, 1998 can be summarized as follows:
General Police
No. of active members 68 23
Annual payroll $2,067,310 $940,002
Averages - age 44.9 years 36.1 years
- service 7.5 years 7.9 years
- pay $ 30,402 $ 40,870
General Police Fire
No. of retired members/beneficiaries 23 8 7
Annual pensions $174,013 $158,270 $71,058
• Averages
- age on 9/30/1998 65.5 years 54.8 years 63.2 years
- age at retirement 59.9 years 49.7 years 58.2 years
- annual benefit $ 7,568 $ 19,784 • . $10,151
AGENDA ITEM#8E
FEBRUARY 12,2001
EXPLANATION OF TERMS
4110 The term "Normal Cost" in this report refers to the on-going cost of providing the changes for each
year of credited service. This cost continues for the working life of current and future active members,
if they are to be included in this change.
•
The term "UAAL" (unfunded actuarial accrued liability) in this report refers.to the temporary cost of
providing the changes to each year of service already rendered by active members as of September 30,
1998. This cost is scheduled to continue for 30 years.
The amounts shown are the level percents of payroll applicable to all current and future active
members present during the amortization period. All items cover death and disability (where
applicable) benefits paid from the pension fund, including post-retirement survivor benefits, if
applicable age, duration and service requirements are met.
The cost of applying the changes to Fire employees transferred to Jacksonville is NOT included.
gio . VALUATION RESULTS
Proposal lA — Provide a 3% ad-hoc COLA for current retired members and beneficiaries. For
example, a $100/month pension would become a $103/month pension.
Adoption of this proposal would require an additional City contribution of:
Percent of Payroll FY 99/00 Dollars
General Police Fire General Police Fire
Normal Cost 0.00% 0.00% $ 0 $ 0 $ 0
UAAL 0.11 0.26 2,464 2,648 1,042
Total 0.11% 0.26% N.A. $2,464 $2,648 $1,042
Proposal 1B — ,Provide a 5% ad-hoc COLA for current.retired members and beneficiaries. For
example, a$100/month pension would become a$105/month pension.
Adoption of this proposal would require an additional City contribution of:
Percent of Payroll FY 99/00 Dollars
General Police Fire General Police Fire
Normal Cost 0.00% 0.00% $ 0 $ 0 $ 0
UAAL 0.18 0.43 4,032 4,380 1,824
Total 0.18% 0.43% N.A. $4,032 $4,380 $1,824
AGENDA ITEM#8E
FEBRUARY 12,2001
4110 Proposal 2A —Provide a COLA provision utilizing a standard CPI, which is not to exceed 2%. This
provision applies to General and Police members only.
Adoption of this proposal would require an additional City contribution of: •
Percent of Payroll FY 99/00 Dollars
General* Police General* Police
Normal Cost 1.73% 3.13% $38,755, $31,882
UAAL Active 1.24 1.98 27,778 20,168
UAAL Inactive 0.10 0.06 2,240 611
UAAL Retired 0.70 . 1.77 15,681 18,029
Total 3.77% 6.94% $84,454 $70,690
* These results are not additive to those presented in Proposal 3.
Proposal 2B — Provide a provision utilizing a standard CPI, which is not to exceed 3%. For the
0 • purpose of this study, we are assuming 2.8%. This provision applies to General and Police members
only.
Adoption of this proposal would require an additional City contribution of:
Percent of Payroll FY 99/00 Dollars
General* Police General* Police
Normal Cost 2.57% 4.68% $ 57,573 $ 47,671
UAAL Active 1.83 2.96 40,995 30,151
UAAL Inactive 0.16 0.08 3,584 • 815
UAAL Retired 1.05 2.65 23,522 26 ,993
Total 5.61% 10.37% $125,674 $105,630
* These results are not additive to those presented in Proposal 3.
III
AGENDA ITEM#8E
FEBRUARY 12,2001
•
Proposal 3 — Change the normal retirement eligibility condition for General members from age 60
with 5 or more years of service to age 55 with 5 or more years of service or any age with 25 or more
years of service. Change the deferred retirement commencement age from age 60 to age 55. This
reflects the change in normal retirement eligibility.
Adoption of this proposal would require additional member contribution of:
• Percent of Payroll FY 99100 Dollars
General* General*
Normal Cost 2.12% $47,492
UAAL 1.29 28,898
Total 3.41% $76,390
* These results are not additive to those presented in Proposal 2.
COMM1ENT: The additional contribution rate needed to support this proposal is sensitive to the
41,
utilization of retirement rates for the proposed retirement conditions. The cost shown above would
increase (decrease) if utilization (retirement) rates were higher (lower) than assumed. Please refer to
the next page for these rates.
0
AGENDA ITEM E
•
FEBRUARY 12,2#8001
1110 Increases in unfunded actuarial accrued liability were amortized as level percents of payroll over 30
years.
The preceding calculations were based on the same member data, methods, and assumptions used in
the September 30, 1998 annual actuarial valuation except as follows:
The retirement pattern used in Proposal 1 was adjusted to reflect utilization of provisions allowing
General members to retire at age 55 with 5 years of service or at any age with 25 years of service. The
patterns used were as follows:
25 & Out 55 & 5
Service at Percent of Eligible Retirement Percent of Eligible
Retirement Persons Retiring Ages Persons Retiring
25 15% 55 15%
26 10 56 10
27 10 57 10
28 10 58 10
29 10 59 10
30 . 10 60 15
31 10 61 8
32 10 62 15
33 10 63 9
34 10 64 15
35 100 65 90
66 30
67 40
68 50
69 60
70 100
Note: An actuarial impact statement and cost estimate, in the format required pursuant to Chapter 112,
Florida Statutes, must be submitted to the Department of Administration, Division of Retirement, State
of Florida, prior to final action adopting a change to the Ordinance.
•
•