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08-26-98 vMINUTES OF ATLANTIC BEACH CITY COMMISSION BUDGET WORKSHOP HELD IN COMMISSION CHAMBERS AT 7:15 PM ON WEDNESDAY, AUGUST 26, 1998 Commission members present were the Mayor Shaughnessy and Commissioners Beaver, Meserve and Mitchelson. Commissioner Borno was absent. Staff members present were City Manager Jarboe, Finance Director Van Liere, Public Works Director Bob Kosoy, Assistant Public Works Director Donna Kaluzniak, Police Chief John Campbell, Acting Fire Chief Claude Mayo, Community Development Director George Worley, Building Official Don Ford, Human Resources Director George Foster, Recreation Director Timmy Johnson, Atlantic Beach Plant Operator Tim Townsend, Buccaneer Plant Operator Harry McNally, and City Clerk Maureen King. The City Manager presented a summary sheet showing the input which had been received from Commissioners on the suggested betterment projects. Since the Commission input had been received in various forms, he asked the Commissioners to review the material to make sure that staff had correctly interpreted the input which had been received. A brief discussion ensued in which Commissioners presented various philosophies on the budget - Commissioner Meserve: Do not spend reserves. Set aside a certain amount of money to be used for betterment projects and request staff to identify the projects to be undertaken with this money. Commissioner Beaver: Set aside a certain amount of money for a proper level of maintenance and let staff decide the projects. Get back to basics; concentrate on necessary projects and leave luxury items until next year. The Mayor indicated she was not aware that previous budgets had apparently not provided for an adequate level of service until she saw the recent report on defective fire hydrants. It was generally agreed the city should concentrate on providing basic services first, and providing them well. Discussion then ensued regarding the core city project and the City Manager indicated he would like to get on a ten-year cycle for street paving but pointed out that gas tax revenues had been tied up in Section H for several years. Some gas tax funds were now available, and with the delay in the Core City project, some funds which would have been used for that project were now available for maintenance of other streets. It was then decided to review the spreadsheet provided by staff, line by line, and make decisions on each item. A copy of Page 1 of the spreadsheet with the actions of the City Commission is attached hereto as Exhibit A. The City Commission then discussed the projects listed on Page 2 and the Mayor felt that it was not necessary to replace fifty fire hydrants in one year. She preferred, instead, to replace only those fire hydrants which would not be repaired. Commissioner Meserve felt that it would be impossible to undertake all these projects in your year. He suggested that the City Commission approve a set amount of money and let staff come back with a list of projects they felt could be funded and accomplished this year within that budget. Nelson Van Liere pointed out that city Page Two Minutes -Budget Workshop August 26, 1998. staff had estimated a cost of$491,000 (Memorandum dated August 26, 1998, attached) for improvements to the Atlantic Beach water utility, and the City Commission agreed to this amount. The City Manager also pointed out that these projects would be bid out and would be brought back to the City Commission for approval before any funds could be expended. Discussion ensued regarding the capital projects listed on page two and it was pointed out that funds were available to undertake these projects, the grand total of which was $1,496,000. Discussion ensued regarding the possibility of relocating electric utilities to underground, Commissioner Meserve suggested that the conduit be installed during the core city project, and then at such time as JEA wanted to install the new lines, the city would be in a position to move ahead with the conversion to underground. Following further discussion it was the consensus of the City Commission that underground lines should be pursued further. There being no further discussion, the Mayor declared the meeting adjourned at 10:04 PM. Maureen King City Clerk City of Atlan each, Florida Total Meserve Bomo """ Beaver Mitchelson 5.. Management Cost of MGt Totals Points Answerd Yes/No Answered Rank 1-25 Answerd Yes/No Answerd Yes/No Answerd Yes/No Recommendation Raise Millage 25 of a mill 136,017 3 Yes Yes Yes No No Vehicle Swap Savings 20,000 3 Yes,whatever needed No input Yes Yes Yes _ 20,000 Total available Remove YMCA building and build a new one 150,000 2 No Yes,If less than 751t _No,Util more info is rec Yes VC5 Yes 100i 000 _iieaee- Construction of Bull Park excess over budget 151,855 No No No,Orig budget only No No 1'-{ 1O N Town Center Handicapped access deck 15,626 3 Yes Yes Yes,More info No Yes O 15,626 t Saratoga Circle 93,628 4 Yes Yes Yes Yes Yes 1P twvC7o 93,628 Expansion of Town Center from Atlantic Blvd to nC Ahern on E.Coast Drive U CL'£1.-r...( 6)` t/16."00. -10 75,000 1 Yes No No,more info No No 5f oo Dust control projects i+ `'f` yy, Cypress Street 5,253 3 Yes No Yes Yes Yes APPROVeD 5,253 Kestner Road 6,303 3 Yes No Yes Yes Yes t 6,303 Dutton Road 9,951 3 Yes No Yes Yes Yes t 9,951 Gladiola Road 16,020 3 Yes No Yes Yes Yes K 16,020 Carnation Street 5,107 3 Yes No Yes Yes Yes 5,107 Dora Street 12,402 3 Yes No Yes Yes Yes 12,402 Long Range Strategic Plan 30,000 3 Yes No Yes Yes Yes 30,000 Computerized Information Delivery study 10,000 1 _No No Yes No No NO Consultant to perform classification and pay study 10,000 1 Yes No No No No No Consultant to perform insurance review APn of all City coverage 10,000 2 Yes ANoYes,<10,000 No Yes PPPEzkrE,> 10,000 Town Center Median Maintenance 15,000 2 Yes Yes No.cost to high 5k No Yes,Hopeful to share cost 101 ZTQO -weer fie grant writer 31,250 3 No Yes Yes Yes No n2- 0 0V0 Two additional Police Officers 90,000 4 Yes,only one @ 45k _Yes Yes Yes Yes 11 19160116) 90,000 One Additional Animal Control Officer 24,500- 3 Yes Yes Yes No Yes f 24,500 Manpower for additional lifeguard tower - 4,750 4 Yes Yes Yes Yes Yes 4,75 f4 Part Time Admin.support for recreation director 9,000 2 No Yes,full time Yes No No r 2 ull Time Park Ranger 24;50&" 1 No Yes No No Yes N Ofeel7 114 i Kayak for life guards 600 4`Yes Yes,Look at Jet Ski `Yes,Look at Jet Ski Yes,Look at Jet Ski,6k Yes,or donated Jet ski Y 600 Two bicycles and related equipment for police 2,300 3 Yes Yes Yes No Yes,if Donated APPR0v6t> V Fire Department Organizational changes No Impact 1 Not indicated No Yes No Defer Maintenance of Tresca Not Determined 1 No No No Yes No LOW IMaintenance of Dutton j28;o91e 3 No Yes Yes Yes Yea Tti LtµE FAQe 1 ATTACHMENT -BUDGET WORKSHOP AUGUST 26, 1998 dCityofAtleachFlorida IIIP 2 Total Meserve Bomo "'"' Beaver Mitchelson 9, Management Cost of MGt Totals Points Answerd Yes/No Answered Rank 1-25 Answerd Yes/No Answerd Yes/No Answerd Yes/No Recommendation Replace 50 fire hydrants Citywide 125,000 4 Yes,Mgt to set Priority Yes Yea,but not all qty in 99 Yes Yes 125,000 Mayport Road Flyover 50,000 3 for group to a S500k limit 'Yes Yes,Mgt to set Priority for No Yes 50,000 Rept.2"with 6"water main on Club Drive, group to a adteivable time OCEAN TO BEACH) 30,000 1 4 Yes,See Comment above IYes Yes,See Comment above Yes Yes 30,000 Repl.2"with 6"water main on Lewis and Robert 70,000 4 Yes,See Comment above Yes Yes,See Comment above Yes Yes 70,000 Repl.2"with 6"water main on Live Oak Lane 40,000 4 Yes,See Comment above Yes Yes,See Comment above Yes Yes 40,000 Rept.2"with 6"water mains on 13th and Ocean 100,000 4 Yes,See Comment above Yes Yes,See Comment above Yes Yes 100,000 Cavalla Road 6"water main extension 36,000 4 Yes,See Comment above 'Yes Yes,See Comment above Yes Yes 36,000 Install 12"Water Main on Beach Ave,Ocean East Coast Dr.to Loop 1,200,000 2 Yes,See Comment above No Yes,See Comment above No No Install 6"water main on Richardson 40,000 4 Yes,See Comment above Yes Yes,See Comment above Yes Yes 40,000 Plant#2 Water Storage(Ground and Elevated) 1,700,000 2 Yes,See Comment above No Yes,See Comment above No Defer Install 12"Loop Main along Atlantic Blvd. 700,000 2 Yes,See Comment above 'No Yes,See Comment above No Defer fo-rAL Upgrade industrial area 12'water main 350,000' 3'Yes,See Comment above 'No Yes,See Comment above 'Yes Defer 41 1,000 Repair Wetwell at Selva Norte Lift Station 20,000 1 2No No IYes,See Comment above Yes Yes 20,000 Clean and Televise Sewer Lines 30,000 4 Yes Yes Yes,See Comment above Yes Yes 30,000 Master Lift Station/Revise Force Mains 300,000 2 No No Yes,See Comment above Yes Yes 300,000 Replace Sewers on Ocean,Beach and East Coast 350,000 1 No No Yes.See Comment above No No,defer Remodel Lab Building with Equipment 118,000 2 No Yes,less than 50K Yes,See Comment above No No Line 1,000 ft of sewer main at lift stations B and C 150,000 2 No Yes Yes,See Comment above No Yes 150,000 500/Orb 1111k..: a tis_ Abandon Shangn La Lift Station 30,000' 4'Yes I Yes.See Comment above IYes Yes 30,0001 Standby pumps and motors 15,000' 4'Yes Yes,See Comment above Yes Yes 15,0001 Li' • Donner Road Area Improv.(Ardella,Francis,Church)500,000 1 2 NoNo Yes,See Comment above Yes No,Defer to Study ti i Royal Palm Stormwater Improvements 1,500,000 1 No No Yes,See Comment above No No,Defer to Study Replace Acquatic Drive Culvert/Headwalls 50,000 1 No No Yes,See Comment above No Yes 50,000 HL/(L Reshape Ditches(Aquatic Drive to Atlantic Blvd.) 50,000 1 No No Yes,See Comment above No Yes 50,000 1 cz 9 Replace Storm piping on Seminole Road 500,000 1 No No Yes,See Comment above No No 3( Hydraulic Cleaning Truck with Vacuum 200,000 1 No No I Yes,See Comment above No Yes,Reserve Cash for future 200,000 C- I f1 i Pump Station at fleet Landing 1,000,000 2 More Information needed, No Yes,See Commentabove Yes More Information needed, eq G1 Relocate Electric Utilities to underground 400,000 I 2! More to study both I No Yes,See Comment above Yes,assess hook-ups 100,000 to study both 100,000 Comments 6 Add 60,000 to Citywide grounds maintenance 60,000 1 Yes Yes 60,000 1{.)0,bb Z) l f. t., 2!• ,a: - CITY OF 111110 t gt+°ctc geacl ' evuda 800 SEMINOLE ROAD 4 ATLANTIC BEACH, FLORIDA 32233-5445 TELEPHONE(904) 247-5800 FAX (904)247-5805 L,. SUNCODI 852-5800 MEMORANDUM To:Honorable Mayor and City Commissioners iirFrom: Jarboe, City Manager Subject:Final Budget Workshop of August 26,1998 I was very pleased with the progress made in the workshops and would like to express my thanks for the very constructive and decisive direction that was given. This clear indication of the priorities to be included in the budget should help the public hearings proceed smoothly as I believe a consensus has been reached on most the issues. IIIFollowing is a summary of the items to be added to the base budget as discussed in the workshop. Millage Increase of.25 136,017 Vehicle Swap for Saving Funds 20,000 Remove YMCA Building and Build a new one 100,000 Pave Saratoga Circle 93,628 Expansion of Town Center 75,000 Dust Control Projects ( Cypress, Kestner, Dutton, Gladiola, Carnation, Dora) 55,036 Long Range Strategic Plan 30,000 Consultant to review insurance coverage 10,000 Town Center Median Maintenance 10,000 Grant Writer per Contract 20,000 0 Two Additional Police Officers 90,000 One additional Animal Control Officer 24,500 Additional Lifeguard tower with manpower 4,750 1 Part time Administration Support for Recreation Director 9,000 Park Maintenance/Park Ranger to allow funds for a plan to be developed 25,000 Two Bicycles and related equipment for Police Patrol 2,300 Water Utility- Atlantic Beach System Improvements 491,000 Sewer Utility - Atlantic Beach System Improvements 500,000 Sewer Utility- Buccaneer System Improvements 45,000 Storm Water Utility System Improvements 400,000 Attached are three schedules which may help you understand the impact of the decisions made at the workshops. The first schedule is the revised Schedule of Projected Available Cash Balances which reflects the changes made in the final workshop. The changes include reducing the available cash by the added expenses as well as redistributing some reserve balances to shift funds available to the projects as proposed. The second schedule is a Schedule of Changes in Projected Cash Available based on the decisions made at the workshops which shows the affect on the various funds in total. This schedule shows how each fund will change to allow for the proposed added items to be funded. ro osal with Additions is anThethirdschedulecalledCurrentP analysis of the General Fundp Budget as proposed with the changes and explains the funding necessary to balance operating revenues to expenditures. The budget that the Commission will be voting on September 14, 1998 will be the original proposed budget with the changes noted above. Please note that the tax increase is included in these schedules and that if not approved at the Public Hearing without also reducing the proposed expenses, the result will be that the operating ( on-going) revenues will exceed the operating ( on-going) expenses by $111,026 in the General Fund. Although the City has sufficient cash available to fund the proposed expenditures without the increase in revenues, funding operating expenses with cash reserves is not considered to be good budgeting or good cash management and if continued would deplete the City's reserves over time. If you have any questions regarding the tabulation of the results of the workshop or how it impacts the budget please call me and we can discuss them. 2 M City of Atlantic Beach, Florida Revised Schedule of Projected Available Cash Balances All Major Funds FY-1999 25% Operating, Projected Sinking Fund, Total Cash Projected Ending Renewal Projected Designated Cash Cash Reserve Cash Available Restrictions Dutton Any Governmental Purpose General Fund 2,748,284 1,418,333 1,329,951 250,000 1,079,951 Convention Center or Recreation Improvements Convention Dev. Tax 0 N/A 0 0 Core City Street and Road Maintenance/Improvements included Gas Tax 870,000 N/A 870,000 870,000 0 Recreation$91,589/Streets and Roads$28,947 Capital Projects 120,536 N/A 120,536 120,536 Core City Improvements or Transfers to projects Water Utility 1,861,082 950,654 910,428 880,626 29,802 Core City Improvements or Transfers to projects Sewer Utility 3,228,634 1,685,775 1,542,859 1,399,446 143,413 Storm Water Drainage Improvements Storm Water Utility 247,786 247,786 0 0 Utility Expenses or Transfers Sanitation 430,392 269,874 160,518 160,518 Utility Improvements to Water,Sewer or Storm Water Bond Construction 175,115 N/A 175,115 175,115 X681 829 _ _ 572,422 5,109,408 3,400,072 1,709,336 Balances after worksop changes III III f Schedule of Change in Projected Cash Available based on Workshop Input General Fund General Fund Revenues Additional .25 mill of taxes 136,017 General Fund Operating Expenses Savings from Vehicle swap 20,000 Dust Control 55,036) Town Center Maintenance 10,000) Grant Writing Services 20,000) Two Police Officers 90,000) Animal Control Officer 24,500) Life Guard Tower& Guard 4,750) Part Time Parks Admin. Support 9,000) Parks Maintenance/Ranger To allow for a plan 25,000) Two bicycles and related equipment for Police 2,300) Excess Town Center over Convention Tax Available 9,374) Excess of Saratoga paving over available Gas Tax 1,746) Sub-Total of General Fund On Going Expenditures 231,706) General Fund One Time Expenses Long Range Strategic Plan 30,000) Consultant to review insurance coverage 10,000) Sub-Total of General Fund One time Expenses 40,000) IIAdditional Reserve Required for 25% of added items 67,927) Total Change for General Fund Projected Cash Available 203,616) Convention Development Tax Remove YMCA Building and Build a new one 100,000) Expansion of Town Center 65,626) Total Change for Convention Dev. Tax Projected Cash Available 165,626) Gas Tax Total Pave Saratoga Circle 91,882) Water Utility Atlantic Beach Water System Improvements 491,000) Transfer to Storm Water Utility Trans-Out * (200,000) Total Change for Water Utility Projected Cash Available 691,000) Sewer Utility 500,000)Atlantic Beach Sewer System Improvements Buccaneer Sewer System Improvements 45,000) Transfer to Storm Water Utility Trans-Out * (200,000) Total Change for Sewer Utility Projected Cash Available 745,000) Storm Water Utility Transfer from Water and Sewer Utilities Trans- In * 400,000 IIIStorm Water Utility Improvements 400,000) Total Change for Storm Water Utility Projected Cash Available 0 Total Change in Projected Cash Available 1,897,124) Preliminary Projected Cash Available 1,709, 33634 Revised Projected Cash Available 4 Current Proposal with Additions for General fund Proposed General Fund Revenues 5,522,305 Additional Tax Proceeds from .25 mill increase 136,017 Amount of Cash Available needed to Balance the Budget 15,009 5,673,331 Proposed General Fund Expenditures 5,673,331) Revenues and Cash less Expenditures 0 Additional one time expenses to the General Fund Long Term Strategic Plan 30,000 Consulting for City Insurance Coverage 10,000 40,000 If the Commission wants to allow the one time expenditures to be funded by using available cash balances instead of raising taxes the full .25 mill as proposed, the revenues needed from the tax increase would be $111,026 or $24,991 less than the $136,017 as proposed. Current Proposal with Additions and Funding One Time Expenses With Cash Balances Available Proposed General Fund Revenues 5,522,305 Additional Tax Proceeds from .204 mill increase 111,026 Amount of Cash Available needed to Balance the Budget 40,000 5,673,331 Proposed General Fund Expenditures 5,673,331) Revenues and Cash less Expenditures 0 5 CITY OF ATLANTIC BEACH SPECIAL CALLED MEETING 5:00 PM- WEDNESDAY, AUGUST 26, 1998 AGENDA 1.Approval of Proposed Atlantic Beach History 2000 Committee budget, and approval to submit an application for grant funds 2.Clarification of the proposed contract with T.L. Rice, Inc. 3.Any other business Adjournment 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. 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, Tuesday, August 25, 1998. MINUTES OF THE SPECIAL CALLED MEETING OF ATLANTIC BEACH CITY COMMISSION HELD IN CITY HALL, 800 SEMINOLE ROAD, AT 5:00 PM ON WEDNESDAY, AUGUST 26, 1998 Present: Suzanne Shaughnessy, Mayor Richard Beaver, Commissioner John Meserve, Commissioner Theo Mitchelson, Commissioner Also: James Jarboe, City Manager Maureen King, City Clerk Alan Jensen, City Attorney Absent: Mike Borno, Commissioner The meeting was called to order by Mayor Shaughnessy. 1. Approval of Proposed Atlantic Beach History 2000 Committee budget, and approval to submit an application for grant funds Woody Winfree presented a draft of the grant application along with a suggested budget and the Commissioners took a few minutes to review the materials submitted. Discussion ensued and following some suggested minor changes such as including the U.S. Congressional District number,filling in the name of the organization- History 2000 Committee (City of Atlantic Beach), amending target date from December 1999 to November 1999 to allow time for people to acquire the books for Christmas gifts, and also to have the books available for sale at the Tree Lighting in the first week of December. With regard to storage of exhibit materials, Mayor Shaughnessy suggested that committee look into the possibility of storing these materials at the Beaches Historic Society. Discussion ensued regarding whether the budget figures had been increased and Ms. Winfree pointed out that dollar figures had been included for Media One and volunteer hours but the cost to Atlantic Beach remained unchanged at $6,000. Ms. Winfree also pointed that she had previously published a monthly publication and had been involved in budgeting and cost cutting and, in the event the grant was not approved, the project would be tailored to fit the available budget. The Mayor inquired regarding disposition of any surplus funds and Ms. Winfree pointed out there probably would not be any surplus since grant funds would be dispersed quarterly and the last check would be a reimbursement of funds. Commissioner Meserve noted that no revenues from the sale of books had been included in the budget and it was agreed to indicate that revenues would be spent for additional printings. It was also suggested that books be sold at cost to residents of Atlantic Beach. Page Two Minutes of Special Called Meeting August 26, 1998 Ms. Winfree also pointed out that they had received commitments for letters of support from community leaders and it was agreed to also request a letter from Mike Paschall, the President of the Beaches Historic Society and Mayor Delaney. Commissioner Mitchelson moved to approve the proposed Atlantic Beach History 2000 Committee budget, and also approve submission of an application for grant funds as well as authorization for staff to draft a letter of support for inclusion in the grant application to be signed by the Mayor, as well as approve the two pieces of money that were requested in separate units, one of $500 for start up costs and the other of $6,000 to be used for the matching funds for grant application, or if no grant, then for the total amount of the city's budgeted monies for this project. The motion was seconded by Commissioner Beaver. In discussion, it was agreed that this project would be funded from general fund revenues and would be included in the 1998/99 budget. The motion carried unanimously. 2. Clarification of the proposed contract with T.L. Rice, Inc. Mitchelson Commissioner 13 said he felt some confusion arose out of the language of the motion he made at the Special Called Meeting of August 18, 1998, when the City Commission authorized the City Manager to execute a contract with L.T. Rice, Inc. He pointed out that while his motion contained the phrase continuation contract, the subject contract was a new contract and not a continuation of any existing contract. The Mayor submitted a copy of the agreement which was approved by the City Commission on August 18, 1998, a copy of which is attached as Exhibit A, and pointed out that once this contract is signed, all other contracts are null and void. Also, the intent of the City Commission was for a continuation of services, not a continuation contract. Following a brief discussion, Commissioner Mitchelson moved to approve the contract as submitted as Exhibit A,and authorize its signing by either the Mayor or City Manager. The motion was seconded by Commissioner Meserve and carried unanimously. Page Three Minutes of Special Called Meeting August 26, 1998 3. Any other business The Mayor reported that she had spoken with Miles Francis,Executive Director of the JTA, who had indicated that the meeting scheduled for 2:00 PM on Wednesday, September 2, 1998, was a public meeting, and encouraged the Commissioners to attend. There being no further business to come before the City Commission,the Mayor declared the meeting adjourned at 5:40 PM. vdtraducg- k4 4 SUZANNE SHAUG4 SSY Mayor/Presidin•wir cer U ATTEST: MA " EN KING Certified Municipal Clerk AGREEMENT AGREEMENT made and entered into this day of August, 1998, at Atlantic Beach, Duval County, Florida, by and between the CITY OF ATLANTIC BEACH, a Florida municipal corporation, 800 Seminole Road, Atlantic Beach, FL 32233 (hereinafter "City"), and T. L. RICE, INC., a Florida corporation, 7700 N. Kendall Drive, Suite 303, Miami, FL 33156 (hereinafter "Rice"). WHEREAS, the parties previously entered into a Letter of Agreement dated February 9, 1998, a copy of which is attached hereto, and WHEREAS, the parties desire to more fully set forth the nature of the services being provided by Rice to City, the remaining payments due Rice under the original Letter of Agreement, and any additional payments which may be made by City to Rice for services rendered hereunder. NOW THEREFORE, in consideration of the mutual covenants and promises as set forth herein, the payments to be made hereunder, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is AGREED as follows: 1. Rice shall continue his review of certain portions of the City's Core City Stormwater Improvements, and specifically sections SM-A, SM-B, SM-C and SM-E as shown on Attachment A. Said review shall include: a) Drainage calculations, assumptions, modeling and system design of current plans provided by England, Thims & Miller, with particular attention given to proposed pipe sizes and associated review with coupled headwaters and tailwaters. b) Independent assessment of alternate methods of stormwater treatment, including baffle boxes, sandtrap basins, and other pollutant removal devices or methods. c) Thirteen(13)days of work, including document/data collection and review, consultation with City staff, consultation with consultants, consultation with community groups, technical analysis, public meeting/information gathering, report preparation, and attendance at public meetings. d) Environmental impact and issues regarding the Core City Stormwater Improvements, with knowledge and experience gained by Rice as Commander, U.S. Army Corps of Engineer District, Jacksonville, where he lead the federal effort to assist Florida and other areas with projects and planning to enhance flood control, navigation, shore protection, and environmental restoration. 2.City shall pay to Rice for the above services the total sum of $14,630.00, of which the amount of $14,630.00 has already been paid pursuant to the Letter of Agreement previously entered into between the parties. Additional services which Rice may provide to City at City's request shall be compensated at the rate of $150.00 per hour or $1,000.00 per day, whichever is less, plus reasonable and necessary expenses, with a total amount not to exceed 5,000.00. 3. The Letter of Agreement previously entered into between the parties dated February 9, 1998, shall be of no further force or effect, shall be deemed terminated upon the execution of this Agreement, and all future dealings between the parties shall be in accordance with this Agreement. 2 4. This Agreement represents the entire agreement between the parties and there are no other agreements between the parties, oral or otherwise. This Agreement may be altered or amended only in writing signed by both parties hereto. 5. This Agreement shall be construed under and governed by the laws of the State of Florida. Venue for any action under this Agreement shall be in Duval County, Florida, and the prevailing party in any such action shall be entitled to recover reasonable attorney's fees. IN WITNESS WHEREOF, the parties hereto have set their hands and official seals as of the day and year first above written. Signed, sealed and delivered in the presence of: CITY OF ATLANTIC BEACH By Witness print name: James R. Jarboe, City Manager Witness print name: T. L. RICE, INC. By Witness print name: T. L. Rice, President Witness print name: 3