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10-12-87 v AGENDA CITY OF ATLANTIC BEACH MONDAY, OCTOBER 12, 1987, 7: 15 PM Call to order Invocation and pledge to the flag 1. Approval of the minutes of the regular meeting of September 28, 1987 and special meeting of October 6, 1987 2. Recognition of visitors 3. Discussion on a proposal submitted by the Board of Trustees, Atlantic Beach Pension Fund, regarding changing vesting requirements from ten years to five years 4. Action by the City Commission to authorize the appropriate offi- cials to execute a proposed service agreement between the City and Goodwin Beach Cleaners 5. Committee Reports: A. Report of the Professional Services Evaluation Committee and recommendations relative to the negotiation of a fee with Gee and Jenson for water plant improvements and water main im- provements in the City of Atlantic Beach B. Commissioner Glenn Edwards with a continued discussion rela- tive to committee recommendations relative to the operation for this fiscal year of the Buccaneer Water and Sewer District 6. Action on Resolutions: A. Commissioner Glenn Edwards to introduce Resolution No. 87-37 recognizing Troop 37, Boy Scouts of America on their fiftieth anniversary 7. Action on Ordinances: A. Public hearing and final reading of Ordinance No. 90-87-124 amending the Zoning Ordinance to provide that swimming pools may be located in either yard in a double frontage lot along the Atlantic Ocean B. Introduction of Ordinance No. 57-87-8 amending the Ordinance Code of the City of Atlantic Beach to raise the percentage of average final compensation for policemen and firemen from 2.0% to 2.4% and increasing the percentage of average final compensation for general employees from 2.0% to 2.25% and setting a public hearing for October 26, 1987 C. Introduction of Ordinance No. 57-87-9 providing increased benefits of 122% to current retirees of the existing City of Atlantic Beach Pension Plan to recognize the increase in cost of living due to inflation, and setting of a public hearing for October 26, 1987. 8. Miscellaneous 9. Mayor to call on City Attorney, City Clerk, City Manager and City Commissioners for reports and/or requests Adjournment MINUTES OF THE REGULAR MEETING OF THE ATLANTIC BEACH CITY COMMISSION HELD AT CITY HALL ON OCTOBER 12, 1987 AT 7:15 P.M. OV V O T T PRESENT: William S. Howell, Mayor/Presiding Officer E E Robert B. Cook, Sr. D D Glenn A. Edwards William I. Gulliford, Jr. , M S John W. Morris, Jr. , Commissioners 0 E T C AND: Richard C. Fellows, City Manager I O Y Claude L. Mullis, City Attorney NAME OF ONEN Adelaide R. Tucker, City Clerk COMMRS. N D S 0 The meeting was called to order by Mayor Howell. The invocation, offered by Commissioner Cook, was followed by the pledge to the flag. 1. Approval of the minutes of the Regular Meeting of September 28, 1987 Motion: Minutes of the regular meeting of September 28, 1987 be Cook x x approved as written. Edwards x x Gulliford x Morris x No discussion before the vote. Motion carried unanimously. Howell x * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * �B. Approval of the minutes of the special meeting of October 6, 1987 Cook x Motion: Move to adopt the minutes of the special meeting of Edwards x x October 6, 1987 as submitted. Gulliford x Morris x x No discussion before the vote. Motion carried unanimously. Howell x * * * * * * * * * * ;: * * * * * * * * * * * * * * * * * * * * * 2. Recognition of visitors - None 3. Discussion on a proposal submitted by the Board of Trustees, Atlantic Beach Pension Fund, regarding changing vesting requirements from ten years to five years. City Manager Fellows requested that this item be deferred until the next meeting. Chairman Peter Corbin could not be present to discuss t`le matter with the City Commission due to an unexpected conflict. 4. Action by the City Commission to authorize the appropriate offi- cials to execute a proposed service agreement between the City and Goodwin Beach Cleaners City Manager Fellows stated that he needed the authorization from the Commission and the Mayor to execute the agreement which was approved in this year's budget between the City and Goodwin Beach Cleaners. PAGE TWO V V MINUTES NAME OF OCTOBER 12, 1987 COMMRS. MSYN 4. Goodwin Beach Cleaners - continue Motion: To execute the service agreement between the City and Cook x x Goodwin Beach Cleaners. Edwards x x Gulliford x Morris x Howell x During discussion, Commissioner Cook asked who would make sure that they do the work. Mr. Fellows stated that Claudie Hogans would be in charge of insuring that Goodwin Beach Cleaners perform the work. Bob Braid would back up Mr. Hogans, and the City Manager would check Mr. Braid. Commissioner Gulliford asked if the City could expand the number of garbage containers on the beach relative to the contract. Mr. Fellows stated that would be no problem. Following discussion, the question was called and the motion carried unanimously. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 5. Committee Reports: A. Report of the Professional Services Evaluation Committee and recommendations relative to the negotiation of a fee with Gee and Jenson for water plant improvements and water main improvements in the City of Atlantic Beach 2he City Manager stated the Committee met on Thursday, October 8, 1987, and discussed, at great length with Gee and Jenson, the manner of how the fees would be developed,and what the fees would be. City Attorney Claude Mullis and Committee Member Peter Johnson were both in attendance. Mr. Fellows stated that during the Committee meeting, Mr. Mullis brought up the point that under no circumstances would the fee be developed as a percentage of construction cost, but would be developed on the basis of the payroll, times the regular multiplier of the firm for overhead and profit, and could come in at less than they were proposing in the minutes. The minutes reflected a proposal that the fee would be $87,330. That sum would be the total amount of the fee for all of the projects proposed, including Beach Avenue and Royal Palns water main replacement, but the firm should not be authorized to go fo-- ward except with the approval of the City Manager and as funds became available to accomplish the work. Commissioner Cook asked if Mr. Fellows knew what the multiplier was. Mr. Fellows indicated the multiplier was 2.3 times their actual payroll cost. Mr. Mullis added that if the bids came in over 20%, they would revise the plans at no additional cost. Mr. Mullis also stated that many of the ideas were developed by Mr. Johnson who was extremely knowledgeable in those areas because of his experiences in developing properties. Mr. Mullis further asserted that Mr. Johnson contributed substantially to the negotiations. Motion: Adopt negotiations of fees as outlined in the report Cook x by the Professional Services Evaluation Committee. Edwards x x Gulliford x x Morris x Howell x • • PAGE THREE V V MINUTES NAME OF OCTOBER 12, 1987 COMMRS. MSYN 5.A Committee Report - continued During discussion, Commissioner Cook asked if multiplier times the pay- roll was a standard way of computing their charges. Mr.Mullis stated that they would submit the payroll at the time, and in addition to that, there would be a maximum fee not to exceed what was in the minutes. Mr. Fellows stated that when they submit their hourly payroll, the City will compare it with similar firms to make sure that their salaries are in line. Following discussion, the question was called and the motion carried unanimously. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 5.B Commissioner Glenn Edwards with a continued discussion rela- tive to committee recommendations relative to the operation for this fiscal year of the Buccaneer Water and Sewer District Commissioner Edwards said that in previous Commission meetings the • Committee recommended that the City take over the operations of Buccaneer systems. The discussions at that time were relative to the amount of money the City would lose if it took over the operation. Mr. Edwards stated that the Finance Director said it would be more work for his office to take care of the records, rather than the City losing my money. Commissioner Gulliford asked a question regarding the office Building at the Buccaneer location. Mr.Fellows stated that it was in the proposal to purchase the office building. Mr. Gulliford said that he did not recall the figures being a part of the accounting. Commis- sioner Morris stated that during the discussion,the bottom line figure they submitted to the Commission for consideration included purchasing the building, and that was one reason it made the figure look so slim. The City would save using the City's personnel operating the system versus the Jax Utility personnel operating it. Mr. Gulliford asked if vehicles were also included,and Mr.Morris respond- ed there were two vehicles. Mr. Gulliford asked if the allocation of the $200,000 was amortized. Mr. Morris replied that it would had to have been. Mayor Howell asked who made the report, and Mr. Fellows responded that the Finance Director, Harry Royal, had prepared it. Mr. Fellows asked Mr. Royal if the building at Buccaneer was a one time charge or was it to be amortized over a number of years. Mr. Royal stated that it was a one time payment amortized over 20 years. Mayor Howell asked where the cash was coming from. Mr.Royal replied it would come from the current operating profit. Mayor Howell asked from whom. Mr. Fellows replied from Buccaneer. Mr. Royal stated the operation of Buccaneer would generate the cash. Mr. Morris asked what the bottom line figure would be. Mr. Royal replied $40,000. This would be the net savings after the City purchased the building for cash, and it would all be done within the first year of operation. Mr. Royal said that would not come out of net income. Mr. Gulliford stated that was his point. Was any of the '200,000 Mr. Royal was going to lay out for the purchase of the building incorporated in the accounting to arrive at the $40,000 savings, or was it treated as capital outlay. Mr. Royal said it would be treated as capital outlay, and pointed out that if you don't spend that money • PAGE FOUR V V MINUTES NAME OF OCTOBER 12, 1987 COMMRS. M S Y N 5B. Committee Report on Buccaneer - continue you are saving it. Mr. Royal also said that you would reduce your expendi- tures so the income would be increased by that much. The $200,000 was not coming out of net income. Mr. Gulliford asked Mr. Royal how long the build- ing was depreciated, and the former responded the period would be twenty years. Mayor Howell asked if, on February 1 , 1988,the City let everything stay as it was, would the City have $200,000 in cash sitting in the bank. Mr.Royal replied that it would generate it. Mayor Howell asked how much the City had at this point. Mr. Fellows noted a principle of interest payment of $200,000 to $300,000 had just been paid. Mayor Howell stated there still had to be somewhere in the neighborhood of $200,000 sitting there at this point, uncommitted. Commissioner Gulliford asked if the funds were unrestricted funds, and Mr. Royal replied in the affirmative. Mayor Howell asked if the funds to purchase the trucks were included. Mr Royal stated that it would all be included. Mr. Fellows said that would be expenditures, and added the system was projected to have over one m_l- lion dollars of net income in 1987-88 after all expenses. $700,000 wou_d be restricted. Mr. Royal added that $218,000 would be unrestricted. Con- missioner Gulliford commented that in effect, what the City was going to do was strip all unrestricted funds. [r. Fellows explained the whole idea of getting the building was to keep a completely separate operation, and that all the people who would run it would be out there to keep it completely separate from the City of Atlantic Beach, which was one of the criterion the City wanted to implement. Com- missioner Gulliford said that he was not against the City operating the system at some date, but he would like to see the City go back to what was initally agreed, with the city totally divorced, and a private ent_ty operating the system at least until the debt was retired. Commissioner Gulliford believed there were hidden costs that had not been anticipated. He asked if anyone had obtained an appraisal on the building. Mr.Fellows replied that was being done. Commissioner Gulliford said that anything the City did would be premature until an appraisal was made on the bui_d- ing. Mayor Howell stated that the City did not have to buy the building, that it was not a necessity. He was reminded the City Manager and Staff had advocated, in order to run the system separately, that the facility should be purchased. Commissioner Morris said the collection system is relatively new, and some of it is brand new. If the City was ever going to enjoy operating it, now was the time while it was new. There would not be that much ma_n- tenance involved in operating the system. Mayor Howell believed that Jax Utility had done a good job in operating it, and said that if the City could make $45,000 or $50,000 more than they were making now, why didn't the City do it. Commissioner Gulliford noted the fact that Jax Utility was a private enterprise making money because they were operating our system did not mean the city could duplicate what Jax did, because of a :ertain economy of scale that was involved in the service industry, etc. Commissioner Gulliford re-stated that Jax Utility could operate Buccaneer cheaper than the city, but there was no way of knowing what it would cost for Jax Utility to run the city's system, due to many factors. PAGE FIVE V V MINUTES NAME OF OCTOBER 12, 1987 COMMRS. MSYN • S.B. Committee Report on Buccaneer - continue Commissioner Edwards asked what the city would do with our laboratory if Jax Utility took over. Lengthy discussion on lab work followed. Cook x Motion: City to take over operations of Buccaneer Water & Sewer Edwards x x District effective February 1, 1988. Gulliford x Morris x x During discussion before the vote, Commissioner Edwards stated that Howell x Mayport Naval Station had tried for 10 years to find someone to operate their system for less than they could, but they had not found anyone who could operate it for less. Following discussion, the question was called, and the motion carried with a three to two vote. Commissioners Gulliford and Cook voted nay. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 6. Action on Resolutions - No. 87-37 Commissioner Glenn Edwards introduced Resolution No. 87-37, a Resolution recognizing Troop 37, Boy Scouts of America on their fiftieth anniversary. Motion: Move to adopt Resolution No. 87-37. Cook x x Copy of said Resolution attached hereto and make a part Edwards x x thereof. Gulliford x Morris x _Jo discussion before the vote. Motion carried unanimously. Howell x * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 7. Action on Ordinances: A. Ordinance No. 90-87-124 - Public Hearing and Final Reading AN ORDINANCE AMENDING CHAPTER 24, ARTICLE III, DIVISION 7 , SECTION 24-164, SUBPARAGRAPH 2a TO PROVIDE THAT SWIMMING POOLS MAY BE LOCATED IN EITHER YARD ON A DOUBLE FRONTAGE LOT ALONG THE ATLANTIC OCEAN; PROVIDING AN EFFECTIVE DATE. Mayor Howell presented in full, in writing Ordinance No. 90-87-124 on second and final reading. Said Ordinance was posted in line with Charter requirements. He opened the floor for a Public Hearing and invited comments from the audience. As no one spoke for or against the Ordinance, the Mayor declared the Public Hearing closed. Motion: Passage of Ordinance No. 90-87-124 on second and final Cook x reading. Edwards x x Gulliford x x Morris x No discussion before the vote. Motion carried unanimously. Howell x * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B. Ordinance No. 57-87-8 - First Reading AN ORDINANCE AMENDING CHAPTER 2, ARTICLE VI, DIVISION 3, Section 2-281 TO INCREASE THE PERCENTAGE OF AVERAGE FINAL COMPENSATION FOR ALL MEMBERS OF THE RETIREMENT SYSTEM; ADDING SECTION 2-298, PROVIDING FOR MEMBER CONTRIBUTIONS; PROVIDING AN EFFECTIVE DATE. PAGE SIX V V MINUTES NAME OF OCTOBER 12, 1987 COMMRS. MSYN 7B. continued - Ordinance No. 58-87-8 Mayor Howell presented in full, in writing, Ordinance No. 58-87-8 on first reading. Cook x Motion: Passage of Ordinance No. 58-87-8 on first reading. Edwards x x Gulliford x x Morris x No discussion before the vote. Motion carried unanimously. Mayor Howell x Howell set the Public Hearing for October 26, 1987. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. Ordinance No. 58-87-9 - First Reading AN ORDINANCE PROVIDING FOR A COST OF LIVING INCREASE FOR EXISTING RETIRANTS OF THE ATLANTIC BEACH PENSION SYSTEM; PROVIDING AN EFFECTIVE DATE. Mayor Howell presented in full, in writing, Ordinance No. 58-87-9 on first reading. Motion: Passage of Ordinance No. 58-87-9 on first reading. Cook x Edwards x x Gulliford x x Morris x During discussion, Commissioner Morris asked where the 12.5 percent Howell x figure came from. The City Manager replied that the 12.5 percent figure came from the increase from 2 to 2.25 in the General Employees average final compensation. Mayor Howell stated that anyone who was retired would have had to work 10 years before they would receive the 2.25. Following discussion, the question was called and the motion carried unanimously. Mayor Howell set the Public Hearing for 10/26/87. * * * * * * * * * * * * * * * * * * * * * * * * * * * '* * * * * * 8. Miscellaneous Commissioner Edwards reminded everyone present to attend the Boy Scouts fiftieth anniversary celebration October 18, 1987. City Attorney Mullis suggested we have an appraisal made on the Buccaneer office building before making a decision to purchase. Mayor Howell stared they would have to get into that at the next meeting. The City Clerk requested approval of the Commission for her assistant, Karen Moore to be made Acting City Clerk while she was out of town. Cook x Motion: Appoint Karen Moore as Acting City Clerk during the absence Edwards x x of the City Clerk Tucker. Gulliford x x Morris x No discussion before the vote. Motion carried unanimously. Howell x * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * PAGE SEVEN V V MINUTES NAME OF OCTOBER 12, 1981 COMMRS. MSYN There being no other business to come before the Commission, the Mayor declared the meeting adjourned at 8:05 p.m. f / / 114( illiam S. ell Mayor/Presiding Officer ATTEST: Adelaide R. Tucker,City Clerk by: Karen Moore, Acting Clerk