Agenda Item 7B AGENDA ITEM it 7B
MAY 13,2013
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Additional item to include in Bud:et Amending Ordinance 20-13-123
SUBMITTED BY Jim Hanson �, u I Mat,
1j
DATE: April 30,2013
STRATEGIC PLAN LINK: None
BACKGROUND: The City Commission authorized foreclosure on several lots that had large
code enforcement liens at the regular meeting of July 23,2012. This included a
house at 765 Sabalo Road. At the time,code enforcement liens related to lack
of maintenance on the property equaled$30,150.
Since then,the property has remained vacant and the only maintenance done
was by contractors working for the City to resolve tall grass and raccoon
complaints from the neighbors.
City Attorney Alan Jensen has pursued foreclosure on this property through the
court system and has reached an agreement with the property owner for signing
over their rights to the property for an amount of$4,000. There are no
outstanding liens on the property other than that held by the City of Atlantic
Beach. However,back taxes are owed on the property totaling$8,366. When
combined with other miscellaneous costs related to the closing,the City will
need a total of$13,040.00 to obtain clear title. The City would plan to sell the
property after acquisition to an owner who would either rehabilitate the
existing house or build a new one. The assessed value of the property is
$101,555.
This cost should be added to the first reading of the budget amendment 20-13-
123 for two reasons. First, it is better for the community to get the property
cleaned up and someone living there sooner than later.There have been
numerous complaints over the years about this house. Second,the City of
Atlantic Beach has continuing expenses to cut the weeds and keep the property
clean.
BUDGET: This project would add$13,040 to the General Fund for land acquisition.
However, it is anticipated that the future sale of the property would bring in
considerably more than that amount.
RECOMMENDATION: Include the cost for the closing on the property at 765 Sabalo Road in budget
amendment 20-13-123.
AGENDA ITEM#7B
MAY 13,2013
ALAN C.JENSEN
Attorney at Law
935 North Third Street
Jacksonville Beach,Florida 32250
Mailing Address: Telephone:(904)246-2500
Post Office Box 50457 Facsimile:(904)246-9960(call first)
Jacksonville Beach,FL 32240 E-Mail:Alan@AJensenLaw.com
April 24,2013
VIA E-MAIL ONLY
James R.Hanson,City Manager
City of Atlantic Beach
800 Seminole Road
Atlantic Beach, FL 32233
RE: Atlantic Beach v. Dedman
765 Sabalo Road
Dear Jim:
The following checks are necessary regarding the closing in the above matter,to-wit:
Randy Dedman and
Vanessa Dedman $4,000.00 (purchase price)
Tax Collector $8,366.44 (outstanding ad valorem taxes: $6,530.53 (2009)and
$1,895.91 (2012))
Clerk of Court $ 98.50 (record deed$18.50;doc stamps$70.00;
record Release of Lien$10.00)
Old Republic Title $ 575.00 (title insurance policy)
Please contact me with any questions.
Very t y yours,
Nov
. SEN
ACJ/sky
Cc: Nelson VanLiere,Finance Director
AGENDA ITEM II 713
MAY 13,2013
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Budget Ordinance#20-13-123
AN ORDINANCE AMENDING THE OPERATING BUDGET
FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR
FISCAL YEAR BEGINNING OCTOBER 1, 2012 AND
ENDING SEPTEMBER 30, 2013, AND PROVIDING AN
EFFECTIVE DATE.
SUBMITTED BY: Nelson Van. Liere, Finance Director ., __
DATE: April 12, 2013 May 6, 2013
STRATEGIC PLAN LINK: Union Negotiations
BACKGROUND: At the conclusion of union negotiations for both unions and the
subsequent decisions on pay related budget items, the City proposes to amend the 2013
operating budget to fund the following items:
1. A 1% raise to all employees. The budget ordinance adds $29,924 to fund all raises and
the payroll taxes that are associated with it. For union employees, the funds represent a
partial year amount.
2. The Police employees buy-down to 680 hours of leave for$38,366.
3. The General employee buy-down to 680 hours of leave for$64,372
4. The City match for the transfer of Employee contributions to the defined contribution
plan of$66,638.
5. A small $429 decrease in the employee contributions to the General Employee
Retirement System representing the reduction for those employees no longer contributing
off-set by an increase of 1%by those that are remaining,
6. Additional legal fees for union negotiations of$32,300.
7. Creation of the General Employee Defined Contribution Plan with the initial contribution
of$66,638.
8. Add $13,040 to fund the acquisition of 765 Sabalo Road through the foreclosure process
as a result of code enforcement fines and unpaid taxes.
9. Add ,5 000 to the General Fund Bud_et to donate to the Cit _of Jacksonville Beach
Fireworks display_
BUDGET: The above items increase the total operating budget expenses by$2-34,1-7-1-
$249,21 1. The City had already included in the budget $129,748 for leave cash-ins of which
$49,815 has already been used. This left $79,933 available to off-set the items proposed
above. Therefore the net increase to the City's expense budget is $151.238, $169,278.
RECOMMENDATION:Approve Ordinance#20-13-123
ATTACHMENTS: Schedule A Pay and Leave Detail
REVIEWED BY CITY MA
AGENDA ITEM i#7B
MAY 13,2013
ORDINANCE NO.20-13-123
AN ORDINANCE AMENDING THE OPERATING BUDGET
FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR
FISCAL YEAR BEGINNING OCTOBER 1, 2012 AND
ENDING SEPTEMBER 30, 2013, AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Charter of the City of Atlantic Beach requires that the City
Commission approve all budgetary increases and transfers at the fund level, and
WHEREAS,the nature of budgetary systems and those day-to-day decisions affecting
such budgetary systems require adjustments from time-to-time, and
WHEREAS, the City adopted the original budget for 2013 without including funds for
employee raises due to pending union negotiations at the time. Those raises are included in this
amendment totaling$29,924 city-wide, and
WH EREAS,this proposed ordinance funds the City negotiated buy-down of personal
leave balances to a maximum of 680 hours in conjunction with eliminating the ability for
employees to cash in unused personal leave in the future. This buy-down was not budgeted, but
was partially off-set by the unused budget that was approved for the employee selected cash-in
program. The original budget for cash-ins of$129,748,less the City mandated buy-down to 680
hours of$102,739 and less the December budgeted cash-ins of$49,815 leaves a budget shortfall
of$22,806 city-wide, and
WHEREAS,the City hired a labor attorney to assist the City Manager with labor
negotiations that was not budgeted. This proposed ordinance adds an additional $32,300 to the
General Fund legal budget, and
WHEREAS, the City has also agreed to transfer the employee contributions to date of
those employees not vested in the General Employee Retirement System defined benefit plan
into a defined contribution plan with interest together with a 100% City match as a way of
closing the Defined Benefit plan to all unvested employees hired after September 2008 and
future general employees. This proposed ordinance includes $66,638 for that purpose. The
ordinance also includes a small change in the employee contributions to the Defined Benefit plan
as a result of the employees being removed from that system, and
WHEREAS, this proposed ordinance creates a budget for the revenues and expenses of
the new trust fund to reflect the initial deposit of the City's matched contributions,but not
include at this time a budget for the City's match of employee contributions made between
implementation and the end of the year. This will be addressed with the year end adjustment due
to the inability to predict participation at this time,and
WHEREAS the Cit Commission has authorized foreclosure on a residential .rosert
located at 765 Sabalo Road for unpaid code enforcement fines and propert t�qs.. A settlement
was reached re!uirin_ the Cit to sa the owner ',4000 alon_ with the taxes and miscellaneous
fees to
acquire the pro erty for a total of$13,040, and
WHEREAS the Cit Commission has a geed to assist with the funding of the
Jacksonville Beach Fourth of July fireworks display by donating$5,000.
AGENDA arm#7C4
MAY t3.2013
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON
BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that;
I. The Fiscal Year 201212013 Budget to he amended as follows:
—GENERAL FUND—
Expenses:
Salary and Benefits of all departments per attached Schedule A $98,312
City Administration
Legal Division
Professional Services 32,300
Non-Departmental
Land Purchase 13 040
Jacksonville Beach fireworks display 5,000
Transfer to General Employee Profit Sharing Plan- match 66.638
Total Expenses: -4-19-7450 $21.5,290
Fund Balance O3 $215,290
PUBLIC UTILITIES—WATER AND SEWER UTILITY FUNDS COMBINED
Expenses.
Salary and Benefits of all departments per attached Schedule A $13,878
Fund Balance: (13,878)
SANITATION FUND
Expenses:
Salary and Benefits per attached Schedule A ($280)
Fund Balance: $280
BUILDING CODE ENFORCEMENT FUND
Expenses:
Salary and Benefits per attached Schedule A $3,125
Fund Balance: ($3,125)
STORM WATER UTILITY FUND
Expenses:
Salary and Benefits per attached Schedule A $4,325
Fund Balance: ($4,325)
AGENDA ITEM#7B
MAY 13,2013
GENERAL EMPLOYEE RETIREMENT TRUST FUND
Revenues:
Employee Contributions—Those leaving the system ($7,906)
Employee Contributions—Those to pay 1%more $7,477
Total Revenues ($429)
Expenses:
Pension Contribution Refunds—Transferred to 401 $66,638
Fund Balance ($67,067)
GENERAL EMPLOYEE DEFINED CONTRIBUTION PLAN
Revenues:
Contributions from City $66,638
Fund Balance $66,638
2. This ordinance shall take effect immediately upon its adoption.
Passed by the City Commission on first reading this day of 2013.
Passed by the City Commission on second and final reading this day of 2013.
Mike Borno
Mayor/Presiding Officer
Approved as to form and correctness: ATTEST:
Alan C. Jensen, Esquire Donna L. Bartle, CMC
City Attorney City Clerk