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06-11-90 v MINUTES OF THE MEETING OF THE COMMITTEE OF THE WHOLE OF ATLANTIC BEACH CITY COMMISSION HELD AT 5:00 PM ON MONDAY, JUNE 11, 1990, AT CITY HALL, ATLANTIC BEACH The meeting was called to order by Mayor Gulliford. Present in addition to the Mayor, were Commissioners Cook, Edwards, Tucker and Weldon. Also present were City Manager Leinbach, Finance Director Royal, and City Clerk King. The meeting was held for the purpose of interviewing representatives from the top four firms which had submitted proposals in connection with the city's search for a financial advisor. The four firms represented were: Barnett Bank Burton and Associates/A.G.Edwards & Sons, Inc. Evensen Dodge, Inc. Public Financial Management, Inc. Eugene P. Cahalan, Executive Vice President and Director of Capital Markets, introduced the other members of the Barnett team, Attorney Peter Baumgaertner and Coleman Cordell who had worked with the City of Jacksonville and the Jacksonville Electric Authority. Mr. Cordell said they were located in Jacksonville and felt their close proximity would be advantageous to the city. He said they would work with the City Commission to develop a plan and identify the sources of revenues. They would make suggestions and recommendations regarding refinancing existing debts and financing of future projects. He said they would also work with the city on insurance and they have many financial advisors on their staff who would be helpful with bidding procedures, evaluation of bids and bond closings. They would also be available on a daily basis to answer routine questions on finance. Mr. Cahalan said he had about ten years experience in the finance business and had expertise in the areas of water and sewer and pooled loan financings. He briefly reviewed the city's existing debt and said the largest existing debt was in the area of water and sewer and he understood additional work was needed in that area and they would work with the city to develop a philosophy regarding bonding. They would help the city to examine and evaluate all the options available, including a master lease, refinancing, and bonding. Mr. Cahalan also reviewed the fees quoted and said they would expect to attend City Commission meetings without fee. He said there would be certain work which would have to be done to review the city's current financial standing and this would be included in the initial proposal. The City Manager asked if they had worked with the State Bond Program, and Mr. Cordell said he had worked with the state but that most of his experience was in transportation and discussion ensued regarding a master lease and the rates the city might anticipate. Page Two Minutes of Meeting of Committee of the Whole June 11, 1990 Mike Burton, President of Burton and Associates, introduced his project team, James Gallahon, Vice President of A.G. Edwards, and Cynthia Griffin. He pointed out that Burton & Associates is located in Jacksonville Beach but had teamed with a large national firm, A.G. Edwards & Sons, which had been in existence over a century, and he felt this team would provide excellent service to the city. Mr. Burton said he had a significant amount of experience in water and sewer work and had conducted probably twenty water and sewer rate studies and related financial management programs. Mr. Gallahon had been a water and sewer rate analyst for the Public Service Commission and has participated in over twenty water and sewer financings and was very experienced in municipal financings. Ms. Griffin had also been involved with impact fee studies and the development of funding sources policies and funding plans. Mr. Burton said their approach would consist of four phases, namely: 1. Conduct a Financial Review - to thoroughly understand the existing financial situation and identify alternative financial management programs to meet the city's objectives. 2. Evaluate Alternative Financial Options - identify special state loans or special funds which may be available. 3. Assist with Bond Funding, and 4. Conduct a Utility Rate Study - Mr. Burton said they have an automated system which develops rates for the current year, and projects rate increases necessary for a five and ten year financial management plan. Mr. Burton said James Gollahon would be the person who would be involved with any bonding issues. Mr. Gollahon said they closely follow the financial markets and would get the lowest possible interest rates for the city. Mr. Burton said he felt they were the best candidates for selection as the Financial Advisor because of their water and sewer rate making experience with state of the art computer modeling techniques and their significant financial advisory services experience. He said A.G. Edwards' knowledge of the financial market would also be an advantage. They would endeavor to get a good understanding of the goals and objectives of the city and would develop a program to meet those needs. Mr. Gollahon explained that A.G. Edwards provided underwriting as well as financial advisory services but that they would not provide both these services to a client at the same time. John Dye, of Evensen Dodge, Inc. introduced himself and said he, along with Craig Dunlap, who was not in attendance, would be the individuals responsible for handling the city's business. He said Evensen Dodge had Page Three Minutes of Meeting of Committee of the Whole June 11, 1990 been in business since 1922, is involved solely as financial advisors. They are headquartered in the mid-west but maintain a branch office in Orlando. He briefly outlined the city's financial commitments as he understood them and said that while they would be willing to assist with advice regarding the phasing in of rate increases, he recommended that any rate studies be undertaken by a consulting engineer. He briefly summarized their experience with other municipalities and said they had analyzed the Gulf Breeze financing plan. In response to a question from Commissioner Weldon, Mr. Dye said a refinancing and consolidation of some of Atlantic Beach's debts could be beneficial for the city; however, there would probably be penalties which, in the case of the Gulf Breeze loan, could be substantial. Considerable discussion ensued regarding the Gulf Breeze program and the Section H improvements following which Mr. Dye recommended the city develop a policy regarding financing and rate adjustments. Charles Rosenthal from the firm of Public Financial Management, Inc., introduced Lavon Wisher, the other member of the PFM Team. Ms. Wisher said PFM is an independent financial advisory firm solely involved with financial management. She said PFM was established in 1975 but in this short period of time has become the largest independent financial advisory firm in the nation with offices in Orlando and Fort Myers. She enumerated three services they provide for their clients, namely, financial planning, transaction management and investment management. She said the success of the firm has been largely due to their ability to work with clients to insure the successful development and implementation of all components of the capital planning process. She summarized some of the successes they have had for clients such as Port St. Lucie, Clay County, Monroe County, Alachua County, Ft. Lauderdale, New Port Richey, Delray Beach, and St. Lucie County. She said they would provide a written plan, would help develop policies and would assist in the implementation of the Comprehensive Plan. Mr. Rosenthal said they had been very successful in the implementation of special assessments for roads, solid waste, drainage and water and sewer. He said they had worked with Lee County and are currently working with St. Johns County on consolidation of utility systems which had been very effective in lowering the cost of capital. PFM was also the Financial Advisor for Port St. Lucie in their issuance of revenue bonds which were secured by storm drainage assessments. He also explained some of the benefits of lease transactions. In response to a question from Finance Director Royal, Mr. Rosenthal explained a 6320 Corporation was a single purpose, non-profit corporation which is often used in building public facilities. Mayor Gulliford inquired whether PFM conducts rate studies and Mr. Rosenthal Page Four Minutes of Meeting of Committee of the Whole June 11, 1990 stated they do not do the studies, but can perform rate analysis based on certain assumptions and projections. Considerable discussion then ensued relative to the Gulf Breeze Program and the PFM representatives said they try to advise their client of the disadvantages as well as the advantages of any particular program. Mayor Gulliford said the selection of Financial Advisor was on the agenda and would be discussed at the regular Commission meeting at 7:15 PM that evening, but that he did not know if a selection would be made. There being no further discussion, the Mayor declared the meeting adjourned at 6:55 PM. Maureen King, City Clem CITY OF ATLANTIC BEACH REGULAR MEETING MONDAY, JUNE 11, 1990 AGENDA Call to order Invocation and pledge to the flag 1. Approval of the minutes of the regular meeting of May 29, 1990 2. Recognition of visitors: 3. Action on Ordinances: A. Introduction and first reading of Ordinance #45-90-8 amending Chapter 20, Article III, Section 20-52 to clarify requirement for licensing; creating section 20-52A to provide for inspections; amending section 20-54 providing additional penalties for delinquencies; amending section 20-59, schedule of fees (Maureen King, City Clerk) 4. New Business: A. Increasing Change Order No. 2 in the amount of $1586.05 relative to Section H - deletion of pavement on W. 9th St. from Camellia St. to Jasmine St. B. Decrease Change Order No. 3 in the amount of $12,452.76 relative to Section H - deletion of pavement and redesign of water and sewer at Stock St. south of 6th St. C. Decrease Change Order No. 4 in the amount of $1,570.63 relative to Section H - Hibiscus St. cul-de-sac south of W. 9th St. shortened by approximately 2 lots D. Increase Change Order #5 in the amount of $2,666 relative to Section H - remove and relocate existing 8" water line on Orchid Street from West 3rd St. to W. 4th St. E. Decrease Change Order #6 in the amount of #67,945.45 relative to Section H - deletion of pavement on Camellia St. and Jasmine St. from West Plaza St. to West 14th St. F. Increase Change Order No. 7 in the amount of $1,370 relative to Section H - addition of water and sewer services of W 1st St. G. Decrease Change Order No. 8 in the amount of $6,300 relative to Section H - removal of concrete ballast H. No change in Change Order No. 10 in the amount of $0.00 relative to Section H - paving, drainage, water & sewer I. Increase Change Order #11 in the amount of $39,223.25 relative to Section H - general plan revisions J. Decrease Change Order No. 12 in the amount of $836.50 relative to Section H - paving, drainage, water & sewer K. Approval of engineering in the Buccaneer System for water main extensions and a tie in of Atlantic Beach water system (Acting Public Services Director Harry McNally) L. Discussion and related action relative to Financial Advisor M. Discussion and related action establishing salary for Public Services Director N. Discussion and related action establishing salary for Community Development Director 0. Action by the City Commission to clarify Uses by Exception (Maureen King, City Clerk) 5. City Manager reports and/or correspondence: 6. Mayor to call on City Commissioners, City Attorney and City Clerk: Adjournment NOTE: Information will be supplied by Project Manager William Howell in connection with Change Orders listed on this agenda. MINUTES OF THE REGULAR MEETING OF THE ATLANTIC BEACH CITY COM- MISSION HELD IN CITY HALL AT 7:15 PM ON MONDAY, JUNE 11, 1990 V V O O PRESENT: William I. Gulliford, Jr. , Mayor T T Robert B. Cook, Sr. E E Glenn A. Edwards D D Adelaide R. Tucker, and John W. Weldon, Commissioners M S AND: Kim D. Leinbach, City Manager 0 E Alan C. Jensen, City Attorney T C Maureen King, City Clerk I 0 Y NAME OF ONEN COMMRS. N D S 0 The meeting was called to order by Mayor Gulliford. The invocation, offered by Commissioner Cook, was followed by the pledge to the flag. 1. Approval of the minutes of the regular meeting of May 29, 1990 Cook x Motion: Approve minutes of the regular meeting of May 29, Edwards x x 1990 Tucker x x Weldon x No discussion before the vote. The motion carried unanimously. Gulliford x 2. Recognition of visitors Ruth Gregg, 905 Sailfish Drive, requested the installation of speed bumps on the west end of Sailfish Drive. The City Manager and Police Chief were asked to check into this and report back at the next Commission meeting. * * * * * * * * * * * * * John B. Chandler, 2025 Beach Avenue, addressed the Commission regarding the proposed renumbering of certain street addresses within the city. He said he felt the inconvenience would be greater than the benefits of such renumbering and requested they be allowed to retain the current street numbers on Beach Avenue. Kathleen Russell, 2117 Beach Avenue, thanked the Fire Department for their help in a recent emergency situation at her home. She said her husband had been stung by a Portuguese Man-of-War while participating in a triathalon on the beach and medical attention was urgently needed. She urged the city to make sure medical facilities were available on future city sanctioned sporting events. She felt consistency of street numbering would be helpful in such emergency situations. City staff were directed to install small block numbers and directional arrows on street name signs. The City Manager said a report on the proposed renumbering is being prepared and would be forwarded to the City Commission when complete and the Mayor asked - that residents receive appropriate notification before any renumbering takes place. PAGE TWO V V MINUTES NAME OF JUNE 11, 1990 COMMRS. MSYN Jack Grider, 1969 Beach Avenue, requested the installation of speed bumps on Beach Avenue between 18th and 19th Streets. This was also referred to Chief Thompson. * * * * * * * * * * * * * Helen Chandler, 2025 Beach Avenue, asked for additional one-way signs at the north end of Beach Avenue and the City Manager was directed to look into this. * * * * * * * * * * * * * Agenda Items 4 A - J, Change Orders on the Section H improvement project, were placed on a Consent Agenda and acted upon at this time. Consent Agenda: A. Change Order No. 2: Deletion of pavement on West Ninth Street from Camelia Street to Jasmine Street, representing a net increase of $1,586.05 B. Change Order No. 3: Deletion of pavement and redesign of water and sewer at Stock Street south of Sixth Street, representing a net decrease of $12,452.76 C. Change Order No. 4: Hibiscus Street cul-de-sac south of West Ninth Street shortened by approximately two lots, representing a net decrease of $1,570.63 D. Change Order No. 5: Removal and relocation of existing 8" water line on Orchid Street from West Third Street to West Fourth Street, representing a net increase of $2,666.00 E. Change Order No. 6: Deletion of pavement on Camelia Street and Jasmine Street from West Plaza to West Fourteenth Street, representing a net decrease of $67,945.45 F. Change Order No. 7: Addition of water and sewer services off West First Street, representing a net increase of $1,370.00 G. Change Order No. 8: Decrease in depth of wetwell for lift station No. 2, representing a net decrease of $6,300.00 H. Change Order No. 10: Redesign a portion of Jasmine Street, representing no change in contract cost I. Change Order No. 11: General plan revisions, representing a net increase of $39,223.25 J. Change Order No. 12: Miscellaneous corrections to contract drawings, representing a net decrease of $836.50 PAGE THREE V V MINUTES NAME OF JUNE 11, 1990 COMMRS. MSYN Cook x Edwards x x Motion: Approve passage of Consent Agenda Tucker x Weldon x x In discussion before the vote, Commissioner Edwards confirmed that Gulliford x the change orders would result in an overall net savings of $44,259.91, but William S. Howell, Project Manager, said there would be additional change orders. The question was called and the motion carried unanimously. 3. Action on Ordinances: A. ORDINANCE NO. 45-90-8 - First Reading AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC BEACH, AMENDING CHAPTER 20, ARTICLE III, SECTION 20-52 TO CLARIFY REQUIREMENT FOR LICENSING; CREATING SECTION 20-52A TO PROVIDE FOR INSPECTIONS; AMENDING SECTION 20-54 PROVIDING ADDITIONAL PENALTIES FOR DELINQUENCIES; AMENDING SECTION 20-59, SCHEDULE OF FEES; PROVIDING AN EFFECTIVE DATE Mayor Gulliford presented in full, in writing, Ordinance No. 45-90-8 on first reading Cook x x Edwards x Motion: Approve passage of Ordinance No. 45-90-8 on first Tucker x x reading and set for public hearing June 25, 1990 Weldon x Gulliford x No discussion before the vote. The motion carried unanimously. 4. New Business: (Items A through J were acted upon in Consent Agenda) K. Approval of engineering in the Buccaneer System for water main extensions and a tie in of Atlantic Beach water system Harry McNally, Interim Public Services Director, requested approval for Gee & Jenson to provide engineering services for the intertie between the Buccaneer and Atlantic Beach water systems. He said this would enable service to be provided to all areas of the city in the event any one section experienced a breakdown. He said a portion of this project involved a number of commercial projects on Mayport Road which currently receive water through the Buccaneer Trailer Park had requested to connect to the city system. The project also called for a water main extension along Gavagan Road from Mayport Elementary School to the intersection with Old Mayport Road. Mr. McNally said this had been budgeted in the current fiscal year and he would like to move ahead with the project. He said the Gavagan Road water main extension could be completed by city staff but he recommended contracting out the work on Mayport Road. PAGE FOUR V V MINUTES NAME OF JUNE 11, 1990 COMMRS. MSYN Motion: Authorize execution of agreement with Gee & Jenson Cook x for engineering services in connection with Edwards x x Buccaneer Water Main Improvement Project, at a cost Tucker x not to exceed those quoted in agreement dated June Weldon x x 7, 1990, and authorize city staff to proceed with Gulliford x work as stipulated No discussion before the vote. The motion carried unanimously. L. Discussion and related action relative to Financial Advisor The Mayor asked if the Commission felt ready to make a decision relative to selection of a Financial Advisor and after brief discussion regarding the procedures for selection, fees quoted, and locations of the firms involved, it was the general consensus the Finance Director should prepare a spread sheet itemizing the information on each of the companies for the next meeting, at which time a decision would be made. M. Discussion and related action establishing a salary for a Public Services Director N. Discussion and related action establishing a salary for a Community Development Director The City Manager reported the areas of responsibilities and requirements for both positions had been considerably increased. He said he would like to hire Robert Kosoy as Public Services Director. He said Mr. Kosoy has been a registered engineer for twelve years and is certified in the State of Florida. The City Manager proposed a salary of $50,000.00 for that position. The City Manager said he would like to hire Tom Bowles as Community Development Director. Mr. Bowles has eighteen years experience in county government is hoping to receive his engineer registration shortly and his interest is in planning. He recommended a starting salary of $35,000.00 for Mr. Bowles. Motion: Accept the recommendation of the City Manager and Cook x authorize the hire of Robert Kosoy as Public Edwards x Services Director at an annual salary of $50,000.00 Tucker x x and the hire of Tom Bowles as Community Development Weldon x x Director at an annual salary of $35,000.00 Gulliford x In discussion before the vote Commissioner Edwards inquired to what degree the hiring of an engineer would eliminate the need for the services of consulting engineers. The Mayor explained it was hoped an engineer on staff would be helpful in providing a review of the engineering services being provided to the city and it was hoped professional fees would as a result, be significantly reduced. The City Manager explained the Community Development Director would be responsible for planning and administration of the Community PAGE FIVE V V MINUTES NAME OF JUNE 11, 1990 COMMAS. MSYN Development Block Grant and would be responsible for ensuring concurrence with the Comprehensive Plan. The City manager pointed out the city could probably dispense with the consultant on the Community Development Block Grant and, with the proper staff, could administer the program in-house. Commissioner Weldon requested that future requests for outside engineering assistance be carefully considered. There being no further discussion, the question was called and the motion carried unanimously. 0. Action by the City Commission to clarify Uses by Exception The City Clerk said when granting Uses by Exception in the past the City Commission had, on occasion, been specific in granting the exception to the applicant personally and on other occasions specified that the exception would run with the land. She asked for clarification regarding how the exception was supposed to run when the City Commission had not specified how the exception was granted. After brief discussion the Mayor said he felt the city code was not clear and that an amendment would be appropriate. In the meantime he asked the wishes of the City Commission: Cook x x Motion: Until such time as the city code is amended, all Edwards x exceptions shall be granted to the applicant, Tucker x x unless specified otherwise Weldon x Gulliford x In discussion before the vote, the City Attorney was directed to draft an amendment and report back to the City Commission. The question was called and the motion carried unanimously. 5. City Manager reports and/or correspondence: The City Manager reported CH2M Hill had prepared a draft ordinance for the Stormwater Management Utility and said he would pass this along to the City Attorney for his review. After brief discussion it was decided to defer action on this until the new Public Services Director is on board. Commissioner Edwards reported Representative Crady and Senator Bankhead had been instrumental in the recent action to amend the approved uses for bed tax funds. Mayor Gulliford reported: in recent discussions regarding the status of the old Garage Approach Road it was decided to contact the property owners in an effort to have each dedicate enough property to the city for a 40-foot public right-of-way. He said there was only a 25 foot right-of-way at the entrance to the street and he suggested the City Attorney draft the appropriate document to allow each property owner to deed to the city a 12 1/2 foot right-of-way which could then be dedicated as a 25 foot public PAGE SIX V V MINUTES NAME OF JUNE 11, 1990 COMMRS. MSYN residential alley. He was hopeful this would resolve the problem. - the Beaches Solid Waste Committee would hold its first meeting at the Jacksonville Beaches Community Center at 7:30 PM on Thursday, June 14, 1990. - he had received a petition from Oceanwalk residents requesting sidewalks and/or bike paths and suggested that they should be notified that the city is working on this. — he had received notification regarding a state grant funds in the amount of $15,701 .66 were available to be used for recycling in accordance with conditions as specified. He asked the City Manager to follow up on this. There being no further business to come before the City Commission, the Mayor declared the meeting adjourned at 8:20 PM. A JL i // Wi liam I. Gullif. es Mayor ATTES T: Maureen King, City Clerk ,;.