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Amended Agenda Packet V3- March 10, 2014 1 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING March 10, 2014 - 6:30 PM AMENDED AGENDA Call to order Invocation and pledge to the flag 1. A. Approve the minutes of the Regular Commission meeting of February 10, 2014. B. Approve the minutes of the Commission Workshop of January 27, 2014. C. Approve the minutes of the Beaches Habitat for Humanity Community Meeting of January 22, 2014. 2. Courtesy of Floor to Visitors A. Presentation from Purvis Gray regarding the Audited Financial Statement of FY2012-2013. 3. Unfinished Business from Previous Meetings A. City Manager’s Follow-up Report. 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 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 the Building Department Monthly Activity Report, Code Enforcement Report, List of New Business Taxes, Financial Report and Utility Sales Report for January 2014. **B. Accept the FY 2012-2013 Audit Report. C. Award Bid for East Coast Drive Drainage and Streetscape Improvements to J.B. Coxwell Contracting and authorize the City Manager to execute the contract documents on the City’s behalf (Bid No. 14-1213-12R). D. Extend the contract for small asphalt paving repairs with Tom’s Asphalt Repairs, Inc. for one year at the current prices. E. Approve the Interlocal Agreement Amendment for the Distribution of 911 Funds for Call-Taker Salaries and authorize for the Mayor and City Manager to sign the paperwork. 5. Committee Reports A. Actuarial Valuation Reports for General Employees’ Retirement System for Fiscal Year ending September 30, 2013. B. Actuarial Valuation Reports for Police Employees’ Retirement System for Fiscal Year ending September 30, 2013. 6. Action on Resolutions Amended ***A. ATTACHMENT E-6, RESOLUTION NO. 14-03 FOR ASSISTANCE 2014 UNDER THE FLORIDA INLAND NAVIGAION DISTRICT WATERWAYS ASSISTANCE PROGRAM. 2 7. Action on Ordinances Amended ***A. ORDINANCE NO. 90-14-221, Public Hearing and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, DUVAL COUNTY, FLORIDA, REZONING PARCEL IDENTIFICATION NUMBER 177649-0000 FROM COMMERCIAL LIMITED (CL) AND RESIDENTIAL MULTI-FAMILY (RG-M) TO A SPECIAL PLANNED AREA (SPA) AS PERMITTED BY SECTIONS 24-116 THROUGH 24-126 OF THE CODE OF ORDINANCES TO ALLOW A MAXIMUM OF EIGHTY (80) RESIDENTIAL UNITS, PROVIDING FOR SPECIAL CONDITIONS; PROVIDING FINDINGS OF FACT; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE AND RECORDING. B. ORDINANCE NO. 90-14-222, Introduction and First Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 24, ARTICLE III, DIVISION 4, SECTION 24-84 OF THE CODE OF ORDINANCES, LAND DEVELOPMENT REGULATIONS, TO REPEAL CONDITIONS OF LOTS EXTENDING BETWEEN BEACH AVENUE AND OCEAN BOULEVARD; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. 8. Miscellaneous Business A. Public Hearing- Request for Use-by-Exception (UBEX-13-00100077) to allow for a drive-thru service lane associated with a restaurant (Panera Bread) within the Commercial General (CG) Zoning District and located at 1021 Atlantic Boulevard. B. Tree Ordinance Revisions. C. Sign Code Amortization Update. D. Request for a Waiver from City Code Section 19-7 Driveway Limitations to Allow a Circular Driveway on a Lot with Less Than 100 Foot Frontage (149 Oceanwalk Dr. S.) E. Robert Street Ditch – Approval of Design Proposal. F. Rose Park Improvements – Dog Park Completion. G. Options for City Sanitation Contract. H. Donner Park Baseball Field Improvements CDBG 2014. I. Public Works Building Canopy Replacement. **J. Engineering Design of Stormwater Improvements for the Saltair Neighborhood (RFP #14-02). **K. Engineering Design of Stormwater Improvements for the Seminole Road South of City Hall (RFP #14-03). L. Crosswalk Enhancements. M. Police Department Annual Report for 2013. 9. City Manager A. City Manager’s Report. 10. Reports and/or requests from City Commissioners and City Attorney 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 3 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, the City Commission may act upon any agenda subject, regardless of how the matter is stated on the agenda. 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, March 7, 2014. * Item 6A was added prior to the Workshop. ** Attachments were amended prior to the Workshop as follows: 4B- Added the backup material to the electronic packet only. 8J- Revised Staff Report 8K- Revised Staff Report *** Attachments were amended following the 2/24/14 Special Called Meeting and Workshop as follows: 6A- Revised Staff Report and Resolution to reflect changes from 2/24/14 Workshop. 7A- Back as 1st Reading with additional documentation. MINUTES *REGULAR CITY COMMISSION MEETING February 10, 2014 IN ATTENDANCE: Mayor Carolyn Woods Mayor Pro Tern Mark Beckenbach Commissioner Jonathan Daugherty Commissioner Jimmy Hill Commissioner Maria Mark Call to Order/Pledge: CITY HALL, 800 SEMINOLE ROAD City Manager Nelson Van Liere City Attorney Richard Komando City Clerk Donna Bartle Recording Secretary Nancy E. Bailey AGENDA ITEM# lA MARCH 10, 2014 Mayor Woods called the meeting to order at 6:30p.m. Commissioner Mark gave the Invocation, followed by the Pledge of Allegiance to the Flag. Item 2 was taken out of sequence and acted on at this time. 2. Courtesy of Floor to Visitors A. Presentation of Congressional Youth Award. Jackie Smith, District Director for Congressman Ander Crenshaw, explained the Congressional Youth Award, stating it is the highest award given by the United States Congress to youths between the ages of 14- 23. Cathy Christensen, Director of Education Programs for Beaches Habitat for Humanity, introduced the youths, Eric, Trevon, and Jeremiah, who have earned the Congressional Youth Award, explaining each of their accomplishments. Susan Goebertus, Coordinator of the Tutoring Program at Donner and Jordan Centers of Beaches Habitat for Humanity, then introduced Sabrina, Jessica, and Destiny, who have earned the Congressional Youth Award, explaining each of their accomplishments. Chief Classey congratulated each of the youth and thanked them for all they have done. Photos were taken with the Mayor and Chief Classey and the recipients were given a standing ovation. Mayor Woods opened the Courtesy of the Floor to Visitors. Mayor Woods welcomed the audience and explained the process for public comments. Ron Shockley, 1170 Linkside Ct. E., spoke in opposition of the Human Rights Ordinance (HRO). Bonnie Kleinik, 8835 Old Plank Road, spoke in opposition of the HRO. Jackie Sutherland, 11034 Santa Fe St. N., Jacksonville, spoke in opposition of the HRO. Raymond Johnson, 3036 Stratton Lane, Jacksonville, spoke in opposition of the HRO and the Resolution supporting the Competitive Workforce Act. He presented a King James Bible to Commissioner Daugherty. James Eddy, 222 Lawton Avenue, Jacksonville, spoke in support of the HRO. Nicholas de Villiers, 4510 Attleboro St., Jacksonville, spoke in support of the Resolution supporting the Competitive Workforce Act and the HRO. Glenn Clingenpeel, 11 Quail Lane, Jacksonville Beach, spoke in opposition of the HRO. AGENDA ITEM# 1A MARCH 10, 2014 February 10,2014 REGULAR COMMISSION MEETING Tom Minette, 1206 N. Laura St., Jacksonville, spoke in support of the HRO and the Resolution. Larry Paulk, 55 Fairway Lane, Jacksonville Beach, spoke in opposition of the HRO. Steve Haerter, 106 19th AvenueS., Jacksonville Beach, spoke in support of the Resolution and HRO. He also spoke in favor of the Beaches Habitat project. Linda Huffman, 50116th AvenueS., Jacksonville Beach, spoke in support of the HRO. Page2 Mike Whalen, 1401 Mayport Road, addressed the Commission regarding Habitat stating he supports their original intent but he is opposed to the project at 201 Mayport Road, explaining his reasons. John Louis Meeks, Jr., 5350 Arlington Expressway, Jacksonville, spoke in support of the Resolution. Philip Stephan, 1862 Evans Drive, Jacksonville Beach, spoke in opposition of 201 Mayport Road, but stated he believes Habitat is a great organization for single family homes. William Bryant, 4336 Coquina Drive, spoke in opposition of the HRO. Jean Shepard, 1661 Beach Ave., spoke in support of both the local HRO and the State Ordinance. Victor Eskew, 13695 Covington Creek Drive, Jacksonville, spoke in opposition of the HRO. Gary Chartrand, 139 Ponte Vedra Blvd., spoke in support of the HRO. Judy Sheklin, 1985 Brista De Mar Circle, spoke in support of the HRO. Thomas Serwatka, 1431 Riverplace Blvd., spoke in support of the HRO. Ken Caudle, 1474 Marshview Ct., spoke in support of the Resolution and also addressed the bike path, asking how security measures will be put in place regarding parking, etc. Mayor Woods asked that he call her. Peyton Hopkins, 957 13th Ave. S., spoke in support of the HRO. Mitch Reeves, 1663 Sea Oats Drive, stated the Commissioners were elected by the citizens of Atlantic Beach and they are who they should be listening to. He further addressed the Greenway Bike Path. He also commended the police officers for their work in the community. Dan Merkan, 3159 College Street, Jacksonville, spoke in support of the Resolution and the HRO. Bill Renfroe, 9834 Buncome Rd., Jacksonville, spoke in opposition of the HRO. Paul Hinder, 1604 Coquina Place, spoke in opposition of the development at 201 Mayport Road. Kevin Walker, 12499 Hunt Cliff Lane, spoke in opposition of the HRO. William Renfroe, 9834 Buncome Rd., Jacksonville, spoke in opposition of the HRO. AGENDA ITEM# IA MARCH 10, 2014 February 10,2014 REGULAR COMMISSION MEETING Page3 Rosan Larizza, 721 Neptune Lane, spoke in suppmi of the HRO and the Resolution. Linda Banister, 2324 Foxhaven Dr. E., Jacksonville, spoke in support of the HRO and the Resolution. Karen Hawkins, 1475 Laurel Way, addressed the Marsh Plan stating it will damage their neighborhood. Bob Mark, 1148 Linkside Drive, spoke in support of the HRO. Sabrina Wheeler, 2392 Covington Creek Circle E., spoke in opposition of the HRO. Michael Sheklin, 1985 Brista De Mar Circle, spoke in support of the HRO. Ana Shepard, 41 Coral St., spoke in support of the HRO. Meredith Frisch, 620 Beach Avenue, spoke in support of the HRO. Johnny Sparks, 2020 Lake View Court, addressed the Commission stating the ruling is out of their hands unless they just take a moral vote. Wells Todd, 1761 Sea Oats Dr., spoke in support ofthe HRO. No one else from the audience spoke, so Mayor Woods closed the Courtesy of the Floor to Visitors. Mayor Woods recessed the meeting at 7:55p.m. She reconvened the meeting at 7:59p.m. 1. A. B. C. D. E. Approve the minutes of the Regular Commission meeting of December 9, 2013. Approve the minutes of the Regular Commission meeting of January 13, 2014. Approve the minutes of the Special Called Meeting of December 16, 2013. Approve the minutes of the Commission Workshop of December 16, 2013. Approve the minutes of the Town Hall meeting of January 11, 2014. Mayor Woods asked if there were any corrections to the above minutes. City Attorney Rich Komando asked to amend the January 13 minutes stating, at the top of page 16, the indication of the motion to direct staff to propose ordinance amending Section 24-84 (c) requiring through lots along Beach A venue and Ocean Boulevard to have front yards face Ocean, he believes that because of the possibility for misinterpretation, he would recommend that it be read, direct staff to draft proposed ordinance repealing Section 24-84 (c) which requires through lots along Beach A venue and Ocean Boulevard to have front yards face Ocean Boulevard. He stated he believes that was the direction of the Commission. Motion: Amend the minutes according to the City Attorney's recommendation. Moved by Daugherty, Seconded by Beckenbach February 10, 2014 REGULAR COMMISSION MEETING Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED AGENDA ITEM# 1A MARCH 10, 2014 Page 4 There were no other corrections so Mayor Woods stated the remaining minutes will stand as submitted. 2. Courtesy of Floor to Visitors This item was taken out of sequence and acted on earlier in the meeting. 3. Unfinished Business from Previous Meetings A. City Manager's Follow-up Report. City Manager Van Liere stated the only follow-up items are those that have been added to the agenda so he has no report other than that. 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 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 the Building Department Monthly Activity Report, Code Enforcement Report, List ofNew Business Taxes, Financial Report and Utility Sales Report for December 2013. B. Declare this list of property as surplus so that the items on it may be disposed of in the most beneficial way to the City. Mayor Woods read the Consent Agenda. Motion: Approve Consent Agenda Items A & B as read. Moved by Daugherty, Seconded by Mark Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED 5. Committee Reports None. 6. Action on Resolutions A. RESOLUTION NO. 14-02 February 10, 2014 REGULAR COMMISSION MEETING AGENDA ITEM# lA MARCH 10, 2014 PageS A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA, SUPPORTING THE PROPOSED "FLORIDA COMPETITIVE WORKFORCE ACT," PROVIDING AN EFFECTIVE DATE. Mayor Woods read Resolution No. 14-02 by title. Motion: Approve Resolution No. 14-02 as read. Moved by Mark, Seconded by Beckenbach Commissioner Hill asked if this was the same ordinance they saw at the workshop, or was it modified, because he doesn't believe they can vote on it if it was modified. Mayor Woods stated this is a resolution to support the State legislature taking up the Florida Competitive Workforce Act. She stated they discussed this at the workshop. Commissioner Mark reiterated the resolution was presented at the workshop and consensus of the Commission was to put it on this agenda for approval. She stated this is the resolution, not the ordinance, supporting the Senate and House Bills that will be presented at the upcoming legislative session. She stated both bills were submitted to the Commission by the City Attorney via email. Commissioner Hill stated it isn't him that wants to see it, it is the public they represent and he would like to workshop it. Commissioner Daugherty stated it is public record and it is on the internet. Commissioner Mark stated it was workshopped at the workshop. Commissioner Hill stated he specifically asked that they take a neutral stance on it and ask that the State handle the issue; he didn't personally want to endorse verbatim the language the State has in front of it; he wanted to endorse the concept of the State handling it. Commissioner Mark explained the resolution was to support the Senate and House bills; the resolution was presented at the workshop in the draft form that was submitted by the City Attorney; the Commission discussed it at the workshop; there was a consensus at the workshop to move forward on putting it on tonight's meeting agenda. She stated it is only supporting the bills as submitted via the Senate and the House. Commissioner Hill asked the City Attorney if it could be workshopped because of the nature of it; it isn't that he wants to pick the State's ordinance apart, it is that he wants the public to have full disclosure as to what our Board is doing. Commissioner Beckenbach stated the City Attorney did send the Commission the information in order for them to review it and if they did not review it at that time he doesn't know if there would be a need for another workshop on it and if there was a need for another workshop he believes they could go ahead and work through it today and then have a special meeting in order to vote on it. Commissioner Hill stated his intent was just to make sure they have full public disclosure on this particular issue because it is of such an interesting nature to everybody that he would like it to get every possibility to be seen. Commissioner Beckenbach stated they discussed .this and they had a limited time because this was going to be brought up in March before they would have another workshop so, therefore, it would not be sent out until after the vote was taken and they wanted to do it before. He stated he believes there was a consensus on that. Mayor Woods stated that is why it is on tonight's agenda. Commissioner Hill stated he spoke in favor of sending it to the State to resolve it at the workshop and he agrees; he stated he just didn't know at the time that it would come back 100% endorsing. He stated it was his understanding they were sending the State a message that they need them to handle this non-local issue and resolve it. He stated he didn't want to be in favor or against; he doesn't want to take a side at a City level, because they don't have the resources to do that legally. Commissioner Mark reiterated what they are doing with this Resolution is, as a Commission, they are saying that they support the Senate and House bills with regard to the Competitive Workforce Act and that is all they are stating. She stated they are not stating about enforcement, the Human Right Ordinance and anything to do with that; all they are saying is that they support the bills that are introducing the Competitive Workforce Act via the Senate and House in this upcoming legislative session. She stated that session starts March 4 so they wanted this resolution passed so it could be submitted to the respective committees. Commissioner Hill asked if there was an opportunity to change the language slightly tonight and vote on it. He stated he would February 10, 2014 REGULAR COMMISSION MEETING AGENDA ITEM# lA MARCH 10,2014 Page6 like to make an amendment to it. He stated he would like it to represent the numbers in the vote and record for the record how the vote went. Motion: Amend to reflect the votes in the language. Moved by Hill Motion failed for lack of a second. Mayor Woods called for the vote on the Resolution. Votes: Aye: 4-Beckenbach, Daugherty, Mark, Woods Nay: 1-Hill MOTION CARRIED 7. Action on Ordinances A. ORDINANCE NO. 80-14-84, Public Hearing and Final Reading AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, ARTICLE I, SECTION 22-4 AUTHORITY TO ADillST OR WAIVE CHARGES IN APPROPRIATE CASES, (E) ADJUSTMENT FOR LEAKS ON CONSUMER'S SIDE OF METER, AND (F), ADillSTMENT FOR FILLING SWIMMING POOL; PROVIDING FOR SEVERABILITY AND PROVIDING FOR AN EFFECTIVE DATE. Mayor Woods read Ordinance No. 80-14-84 by title. Motion: Approve Ordinance No. 80-14-84 as read. Moved by Mark, Seconded by Beckenbach Commissioner Daugherty asked if there are inside leaks, i.e. toilets, is that still water that has to be treated in our sewer system. Mr. Van Liere stated if it goes through the toilet it is. Commissioner Daugherty stated so there is still a cost to the City even though it is faulty equipment on their end. Mr. VanLiere stated that was correct. Commissioner Daugherty asked what proof does someone need to provide. Mr. Van Liere state they get receipts for plumbing repairs through a plumber or receipt for the materials they bought to repair it themselves. He stated they would then adjust their rate down to the second tiered rate instead of the first tier, but this will allow them to go down to the first tier rate. Mayor Woods opened the Public Hearing. No one from the audience spoke so the Mayor closed the Public Hearing. Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED 8. Miscellaneous Business A. Report on the Central Florida Water Initiative (CFWI). February 10,2014 REGULAR COMMISSION MEETING AGENDA ITEM# lA MARCH 10, 2014 Page 7 Mayor Woods explained that Public Utilities Director Donna Kaluzniak gave her report on this at the workshop and asked her if she wanted to report on this further. Ms. Kaluzniak stated she attended the Public Water Supply Plan Workshop the District held last Thursday. She stated it didn't affect anything with our previous ordinance. She stated some people spoke against taking water fi:om the river and there were comments from JEA asking the District to look at where they overestimated some of the demand in this area. B. Recreational Vehicles in Front Yards. Commissioner Mark asked if there was a deadline given as to when Commissioners Daugherty and Hill would come back with some kind of proposal on this. Mayor Woods stated she believes it was open-ended. (Further discussion on this item occurred later during Item 9A.) C. Paperless Agenda Project Update. Mayor Woods stated she and Commissioner Mark reported at the workshop their progress on going paperless and everyone decided to join them. D. FY 2013-2014 Resurfacing Project. Motion: Authorize the City Manager to approve Purchase Orders up to the budget amount and allow staff to 'piggy-back' on existing large scale contracts for resurfacing as allowed by the City's Purchasing Code 2-336(6). Moved by Mark, Seconded by Beckenbach Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED E. Modification to Marsh Multipurpose Path Design and Permitting Scope. Motion: Authorize staff to execute the contract for Design and Permitting of the Marsh Multipurpose Path as modified. Moved by Daugherty, Seconded by Mark Votes: Aye: 5-Beckenbach, Daugherty, Hill, Mark, Woods Nay: 0 MOTION CARRIED 9. City Manager A. City Manager's Report. City Manager Van Liere stated there was a recommendation to take no action on vehicles in front yards and asked if that is what the plan is. Mayor Woods stated her understanding from the workshop was that Commissioners Daugherty and Hill would continue to brainstorm and if they came up with a proposal to bring forward they would. Commissioner Daugherty asked when the moratorium expires. Building and February 10, 2014 REGULAR COMMISSION MEETING AGENDA ITEM# 1A MARCH 10,2014 Page 8 Zoning Director Mike Griffin stated it expires tomorrow, February 11. He stated it would be proper to give them a notice so they understand what they have to do and give them additional time to comply before they actually take them to the Code Enforcement Board, since it has been an issue for about four months now. Mr. VanLiere reported on the upcoming projects that will be on the next Commission meeting. He reported on the meeting he and Mayor Woods had with the Town Center Merchant's Association on their recently completed parking study. 10. Reports and/or requests from City Commissioners and City Attorney Commissioner Daugherty • Stated he is upset that people are using Christianity as a voice of hate. He hopes they can focus on what is right and not on what their own personal beliefs are. He stated all this rhetoric is strengthening his resolve to do something. Commissioner Beckenbach • Asked if there are any meetings the Mayor has gone to that she can report on. Mayor Woods stated, since they last met, she attended the Town Center meeting on parking. She stated she was pleased with the way they are taking responsibility for the issue and doing what they can to solve this problem. She further stated she is no longer speaking at the Beaches Chamber luncheon but will be attending and is speaking to the NE Florida Realtors Association this Thursday morning. Commissioner Beckenbach stated he appreciates that she gives the Commission a schedule of where she is going and when she is doing something and also asked that when there is something that is relatively important that she is attending that she ask for consensus from the Commission. Mayor Woods stated if and when she talks to people she is very specific that she is one vote and everything comes before the Commission. • Asked the City Manager about the tipping fees. Mayor Woods stated she went to a conference today at City Hall regarding the Rockefeller Foundation, which is sponsoring 100 resilient cities and Jacksonville has been chosen as one of the first. She explained what a resilient city is. She stated she mentioned this because, while she was there, Karen Boling mentioned that she was working with the Mayor to come up with a proposal for us. • Regarding the Human Rights Ordinance, he stated he understands we are looking at the ordinance to be presented at a later time. City Attorney Komando stated he is working on that as quickly as he can. He stated he is putting together a spectrum of what the available options are and at that point he will solicit some direction from the Commission as far as drafting an ordinance. Commissioner Beckenbach stated the reason he is asking for this is because he doesn't want to have another hour and a half conversation about the HRO at every single Commission meeting or workshop unless they are going to talk about it. He stated he would like to state when they are going to speak on it so they don't have people coming over and over to speak to us saying the exact same thing. Commissioner Mark • Stated she has spoken with City Attorney Komando and they are hoping to have something at the next workshop that the Commission can look at to craft as their proposed ordinance. She stated there is a lot of research because he is taking into consideration all the interest groups' comments that have been made. • She stated she has been keeping a tally of people who speak and has kept a separate one for residents and non-residents who spoke tonight and there were 7 Atlantic Beach residents for the Ordinance and 2 against. February 10, 2014 REGULAR COMMISSION MEETING AGENDA ITEM# IA MARCH 10, 2014 Page 9 • She commented on the Habitat development stating she is glad the six young adults who were being honored tonight were raised in the Habitat housing, under their guidance, and have achieved this great award. She stated she is glad they weren't here to hear some of the disparaging comments about Habitat and the development. She stated it is a neighborhood revitalization development. She stated what better way can you build community than if you have a like minded environment where they are all working toward the same thing, to break that cycle of poverty. She stated that is what Habitat is about and it really bums her to sit here and listen to the naysayers who start out saying they love Habitat, they support Habitat, it's not about Habitat, but. She stated that to her is just being hypocritical. She stated she was very proud of these six young adults. She stated go to any other neighborhood and see how many have achieved that award. She stated she believes Habitat is a great organization from top to bottom and hopes the Commission is just as supportive of that development. City Clerk Bartle • Stated Commissioner Beckenbach had requested that they make a change to the agenda packet and they have defined the bookmarks a little better and plan to continue doing that and hopes it helps them to navigate easier to the pages within the packet. Commissioner Hill • Stated he also really supports Habitat and believes it is very dismissive to say that anyone who says that and goes on and talks poorly about this project doesn't have a valid concern. He stated he genuinely does and it is not in line with the way he believes the public should be treated to dismiss their concerns. He stated he believes it is actually a very bad way to govern and he is a little embanassed for his fellow Commissioner for dismissing the public's genuine concern and probably won't put up with it without rebutting every time. • Stated this process they are involved in as a Commission has become so completely derailed with issues that are not in our scope and he has genuine concerns whether this City is on track or derailed. He stated he has specific concerns that they are consuming the bulk of their resources through their attorney and staff with issues that are of a national or state level. He stated he would like to define what their role is. He stated he finds himself changing his view completely because of the tactics and the strategies of the HRO and the way it is clearly orchestrated and designed to do this is wonisome to him as a Board member elected by the citizens of Atlantic Beach. He stated because the language is absolute garbage and not passable he can't support it and then to be chastised as if he is somehow bigoted toward it is troublesome. He stated this whole process is about as skewed as he has ever seen anything. He stated he would like to get us back on track and get some direction for our community, handle the issues that are before us but make sure going forward they define their roles. He stated if they are going to be implementing societal change through Atlantic Beach's five Commission board then they need more of them because these issues are not for us and if we think they are, how pompous of us to think this is our issue. He stated he believes it is wrong for them to handle it and they have done a disservice to their citizens by bogging in on this issue. He stated he would like to have a comprehensive discussion on what their role is at some point in the very near future. Mayor Woods • Will be bringing forward the Charter review process and that may be a topic they can take up. • Related to comments tonight about the Marsh Master Plan, what they have done is funded the design process and there have been no decisions made about a ped path along the marsh. She stated there is some surveying and research that needs to be done. She stated the group they have hired will be involving the public and her next newsletter that comes out is discussing this topic. February 10, 2014 REGULAR COMMISSION MEETING AGENDA ITEM# 1A M~Ctl 10, 2014 Page 10 • Stated she is continuing her ride-alongs with the police officers and encouraged all Commissioners to do the same. Commissioner Daugherty • Reported there is a housing development going in behind Terry's General Store which he believes will affect the Mayport Corridor positively. Adjournment There being no further business to come before the Commission, Mayor Woods declared the meeting adjoumed at 8:47p.m. ATTEST: Donna L. Bartle, CMC City Clerk Carolyn Woods Mayor/Presiding Officer *A Workshop was held on January 27, 2014 for the purpose of discussing these items. Please refer to the Workshop Minutes for the previous discussion. AGENDA ITEM# IB MARCH 10, 2014 MINUTES OF THE WORKSHOP OF ATLANTIC BEACH CITY COMMISSION HELD IN THE COMMISSION CHAMBER ON JANUARY 27, 2014 City Commission Members present: Mayor Carolyn Woods Mayor Pro Tern Mark Beckenbach Commissioner Jonathan Daugherty Commissioner Jimmy Hill Commissioner Maria Mark Staff present: Nelson Van Liere, City Manager Richard Komando, City Attorney Donna Bartle, City Clerk Nancy Bailey, Recording Secretary Call to order. The meeting, which was held for the purpose of discussing the agenda items for the Commission Meeting of February 10, 2014, was called to order at 6:30p.m. by Mayor Woods. She welcomed the audience and explained the process for public comments. She stated speakers would be allowed 2 minutes. 1. Presentation by former Jacksonville Human Rights Commission Board Member, Dr. Sol Brotman, regarding complaint process/enforcement. Dr. Sol Brotman summarized his background and stated the opinions he expresses tonight are his own and may not reflect the opinion of the Jacksonville Human Rights Commission or any other governmental entity. He also explained when and why the Human Rights Commission was formed. He distributed a handout highlighting areas of complaints that may be investigated by the Jacksonville Human Rights Commission, summarizing each and explaining the staff model of intake, investigation and mediation. He further explained the citizens and privatized models. He answered questions from the Commission. 2. Courtesy of Floor to Visitors Mayor Woods opened the Courtesy of the Floor to Visitors. Raymond Johnson, 3036 Stratton Lane, spoke in opposition to the Human Rights Ordinance. He distributed a DVD entitled "Agenda" to the Commission. Mike Whalen, 1420 Mayport Road, spoke in opposition to the development at 201 Mayport Road. Richard Salkin, 336 Sunrise Circle, Neptune Beach, stated he supports the Human Rights Ordinance. Judy Urback, 1625 Felch Avenue, spoke in support ofthe Human Rights Ordinance. Tricia Russell, 8720 CR 13 N ., St. Augustine, spoke in support of the Human Rights Ordinance. AGENDA ITEM# lB MARCH 10, 2014 Minutes -City Commission Workshop Page2 January 27,2014 Cindy Watson, 111 Trout River Terrace, Jacksonville, spoke ill support of the Human Rights Ordinance. Steve Haerter, 106 19th Ave. S., Jacksonville Beach, addressed the Beaches Habitat presentation, stating it was informative and detailed, and also spoke in support of the Human Rights Ordinance. Kevin Walker, 12499 Hunt Cliff Lane, Jacksonville, spoke in opposition to the Human Rights Ordinance. Victor Eskew, 13695 Covington Creek Drive, Jacksonville, spoke in opposition to the Human Rights Ordinance. Marcus Stanley, 1025 Snug Harbor Ct., spoke in opposition to the Human Rights Ordinance. James Eddy, 222 Lawton Ave., Jacl{Sonville, spoke in support of the Human Rights Ordinance. Larry Paulk, 5 Fairway Lane, Jacksonville Beach, spoke in opposition to the Human Rights Ordinance. Carlos Dawson, 5252 Clapboard Creek Dr., Jacksonville, spoke in opposition to the Human Rights Ordinance. Peyton Hopkins, 957 13th Ave. S., Jacksonville Beach, spoke ill support of the Human Rights Ordinance. Sharon Krause, 4845 Plymouth St., Jacksonville, spoke m opposition to the Human Rights Ordinance. Tom Minette, 1206 N. Laura St., spoke in support of the Human Rights Ordinance. Maryann Dyal, 1765 Seminole Rd., spoke in support of the Human Rights Ordinance. Helen Urban, 543 Pelican Key, spoke in support of the Human Rights Ordinance. Laura Lane, 7228 Clinton St., Jacksonville, spoke in support of the Human Rights Ordinance. Michelle Knight, 1494 Linkside Dr., spoke in support of the Human Rights Ordinance. Paul Gunsaulies, 780 Begonia Street, spoke regarding the boats in yards and asked that they consider modifying the ordinance. Sally Clemens, 1638 Park Terrace West, stated they need to consider how they will enforce the Human Rights Ordinance. No one else from the audience spoke so Mayor Woods closed the Courtesy ofthe Floor to Visitors. Mayor Woods adjourned the meeting at 7:27p.m. She reconvened the meeting at 7:33p.m. Minutes -City Commission Workshop Page3 AGENDA ITEM# JB MARCH 10,2014 January 27,2014 3. *Discussion of Agenda Items on February 10,2014 Commission Meeting: 1. A. B. C. D. E. Approve the minutes of the Regular Commission meeting of December 9, 2013. Approve the minutes of the Regular Commission meeting of January 13, 2014. Approve the minutes of the Special Called Meeting of December 16, 2013. Approve the minutes of the Commission Workshop of December 16, 2013. Approve the minutes of the Town Hall meeting of January 11, 2014. There was no discussion on these items. 2. Courtesy of Floor to Visitors A. Presentation of Congressional Youth Award. There was no discussion on this item. 3. Unfinished Business from Previous Meetings A. City Manager's Follow-up Report. City Manager VanLiere reported the groundbreaking ceremony for Atlantic Beach Country Club will be this Friday with overflow parking at Johansen Parle He reported that they are still trying to get together with Jacksonville to schedule a meeting on the Interlocal Service Boundary Agreement. Reported the tippage issue is still up in the air and they are waiting to see what Neptune Beach's proposal was from Jacksonville. He stated they also need to discuss bidding out a contract to renew it or just renewing with Waste Services, if they come in with an appropriate proposal. He stated service levels, price, term and tippage are all still up in the air. Commissioner Beckenbach asked that he expand on tippage. Mr. Van Liere stated they had met with Neptune Beach and discussed the deal with Jacksonville and how that may/may not be acceptable to Atlantic Beach. He stated Neptune Beach wanted a different hauler and different method of collection for us in that deal and they are currently waiting to see what specific deal they are offering Neptune Beach, but Atlantic Beach has to work out their own as well. Discussion ensued. Reported that the RFPs for City Attorney and City Manager are out. Reported the Rose Park punch list will use up the remaining money that was allocated for the park and the dog park will have to be funded with additional monies. He stated he received an itemized list from Public Works and the amount is approximately $3 7,000 to complete the fencing, sod, water, gates and signage and he needs direction whether he needs to put this on a future meeting as a budget ordinance. Discussion ensued. Commissioner Daugherty stated he wants this added as a budget amendment. Further discussion ensued. Commissioner Beckenbach asked how far along they are on the gazebo being put in Bull Park. Mr. Carper stated it is sitting on his desk for action but he has not taken any yet. Commissioner Beckenbach asked if it was correct that they had $40K for that. Mr. Carper stated that was correct. Commissioner Beckenbach asked if they wanted to move that to next year and move the $37K, would that be acceptable to Public Works. Mr. Carper stated they would do what the Minutes-City Commission Workshop Page4 AGENDA ITEM# 1 B MARCH 10, 2014 January 27, 2014 Commission tells them to do. He stated to finish one park versus going ahead and doing something like that would be better. Commissioner Mark asked if that $40K was actually in the budget for the gazebo. Commissioner Beckenbach stated yes. Commissioner Daugherty asked if they could direct staff to do that without doing a budget modification. Mayor Woods stated they would still do a budget modification but it would just be reallocating the funds already in the budget. Commissioner Mark stated she would agree to that. Mayor Woods stated since they are discussing it tonight it wouldn't be on the January 2ih agenda, but on the next one. Mr. VanLiere stated it would be on the next workshop for the following meeting to just reappropriate the project money from the gazebo to dog park. Commissioner Daugherty stated if he asked for this to be on this agenda, why wasn't it. Mr. VanLiere stated he wasn't completely sure that was what they meant. Mayor Woods stated he didn't get consensus. Commissioner Beckenbach asked if there was consensus to go ahead and move forward with moving that out of the gazebo into the dog park. Mayor Woods stated right, he is going to prepare that budget. Commissioner Beckenbach asked again if they have consensus here. Mayor Woods stated yes. It was the consensus of the Commission to prepare a budget modification to reappropriate the money from the gazebo for Bull Park to the dog park. Mr. VanLiere stated that the Commission previously approved the staff recommendation to award the Marsh Master Plan design to Hanson and to give them the approval to begin if they gave us a proposal within the budget. He reported that their proposal was almost twice the budget, so going forward on that without further input from the Commission would not be the right thing to do. He stated staff can be directed to reduce the scope so it comes within our budget; or the Commission can direct staff to find the money to fund their proposal; or they can go to the second firm and try to negotiate a better deal. Public Works Director Rick Carper reported on the options. He stated Hanson has come back to staff with a second proposal that has the ability to go in for $147K and give us the preliminary design, which is what we need to determine the actual final path; the environmental permits to do the entire path; and only give us complete final design for the segment from Levy Road to Dutton Island Road. He stated that is the route that has no ownership issues. He stated his recommendation is to build that segment of the path which would allow them to meet the FIND grant deadlines for that section. Mayor Woods pointed out that they had a group of citizens who live in two cul-de-sacs that were not happy about the thought of having public access and parking and the City has committed to them that they be involved in the discussions of the final route of this path. She asked if part of those funds will cover interaction with the community. Mr. Carper stated that is part of the Phase 1 portion of the project and they have committed to the Hidden Paradise Homeowners Association that they will meet with them directly. Discussion ensued. Mayor Woods suggested the City consider getting a professional grant writing team. Further discussion ensued. Mr. Carper reiterated the options: tell the consultant to proceed with Phase 1, the preliminary design and public outreach and path selection, only; or tell him to do Phase 1, 2, and 3A; or stop, go back and start over and discuss in the pre-budget workshops. Mayor Woods stated the Commission should get with Mr. Carper and Mr. Van Liere before the next meeting. Mr. VanLiere reported on an email asking about the Seminole Road Streetscape drainage project. He stated we had a budget of $490K and Mr. Carper's estimate is now about $750K. Mr. Carper explained the status of the project, stating proposals are due February 7. He explained the number that was in the CDM storm water master plan for the cost of the Seminole Road drainage project was $650K. He stated the number he put in his stormwater capital improvement plan was $250K, which was the number budgeted for stormwater improvements this year. He stated he doesn't believe we will have the money to build it and he is proposing that they go ahead and do the design this fiscal year and have a better cost Minutes -City Commission Workshop Page 5 AGENDA ITEM# 1B MARCH 10,2014 January 27, 2014 estimate by the time budgets come together so we can then budget the actual amount for construction in the next fiscal year. Commissioner Beckenbach asked if the Master Plan and conservation easement was recorded for Atlantic Beach Country Club yet. Mr. Van Liere stated he would find out. Commissioner Beckenbach also asked if the RFP for the architect for the police building has gone out. Mr. Van Liere stated it is out. Discussion ensued. Mayor Woods asked that Mr. VanLiere have a more detailed report at the next meeting. Commissioner Hill asked about the erosion issue around the culvert, and can they do an emergency repair. Mr. Carper stated he was not in the office most of the day but will check to see what has been done on it. Item 8A was taken out of sequence and acted on at this time. A. Report on the Central Florida Water Initiative (CFWl). Public Utilities Director Donna Kaluzniak gave a report on the Central Florida Water Initiative. She also stated that the two items on the Resolution passed in 2008 that were requested to be done have been completed. She introduced Geoffrey Sample of the Office of Communications and Intergovernmental Affairs who elaborated on the water withdrawal and stated there will be a public meeting to give a presentation and answer questions on January 30, from 5-7 p.m. at the St. Johns County Administration Building in St. Augustine and also on February 6, from 5-7 p.m. at Jacksonville Council Chambers. He answered questions from the Commission. At the request of Commissioner Beckenbach, Ms. Kaluzniak also gave a report on the reuse water project stating it will take a year to complete the whole project but they will have them watered by April 30. 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 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 the Building Department Monthly Activity Report, Code Enforcement Report, List of New Business Taxes, Financial Report and Utility Sales Report for December 2013. B. Declare this list of property as surplus so that the items on it may be disposed of in the most beneficial way to the City. Commissioner Daugherty asked about the vehicles on the surplus list. Mr. Van Liere explained the vehicles that go on the beach rust very quickly. Minutes-City Commission Workshop Page 6 5. Committee Reports None. 6. Action on Resolutions None. 7. Action on Ordinances A. ORDINANCE NO. 80-14-84, Public Hearing and Final Reading AGENDA ITEM# lB MARCH 10, 2014 January 27, 2014 AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, ARTICLE I, SECTION 22-4 AUTHORITY TO ADJUST OR WAIVE CHARGES IN APPROPRIATE CASES, (E) ADIDSTMENT FOR LEAKS ON CONSUMER'S SIDE OF METER, AND (F), ADJUSTMENT FOR FILLING SWIMMING POOL; PROVIDING FOR SEVERABILITY AND PROVIDING FOR AN EFFECTIVE DATE. There was no discussion on this item. 8. Miscellaneous Business A. Report on the Central Florida Water Initiative (CFWI). This item was taken out of sequence and acted on earlier in the meeting. B. Recreational Vehicles in Front Yards. Commissioner Daugherty showed a slide of an example lot, stating he proposed a change to make this fair to the entire City, which he distributed to the Commission. He stated, under (b )(2) he wanted to remove "front lot line" and add "street, but not within the right-of-way". Mike Griffin explained the differences of distances from the pavement to the property lines. Discussion ensued. Mr. Carper explained the difference really isn't where the street is in the right-of-way; both Commissioner Daugherty's street and Begonia have a 50' right-of-way. He stated the primary difference is the width of the street. He explained that Begonia Street is one of the streets in the City's stormwater master plan where they are going to go in and do a drainage project sometime in the next five years and because the width of the pavement is 14-16', he expects that street to get wider. He stated, therefore, a boat he could put there today, he may not be able to put there if they make this change. He stated the difference between the lots is not the pavement or right-of-way width, it is where the house is on the lot and, in Commissioner Daugherty's case, his house is farther away from the right-of-way line. Further discussion ensued. Mr. Griffin stated staff's recommendation is to uphold the Community Development Board's recommendation. Discussion ensued. Commissioner Mark asked City Attorney Komando what the City could do to come to a compromise on this. Mr. Komando stated he has not heard any solution that doesn't create a similar inequity on the other side. After further discussion, Mayor Woods stated what they have heard from the City Attorney is that so far none of the solutions create equity. She stated they should keep thinking about it and keep bringing it back and when they get something that everyone can agree on that does not create another inequity, then they have it. Commissioner Beckenbach suggested they put it up for a Charter change so the entire City can determine whether they want to have boats and trailers and RVs in the front of their yards. Mayor Woods stated that is a valid idea and Commissioners Daugherty and Hill will keep trying to come up with a solution that won't cause anymore inequitabilities Minutes-City Commission Workshop Page7 AGENDA ITEM# lB MARCH 10,2014 January 27, 2014 and they will keep moving forward because they do live in a water community and a lot of people do have boats. Commissioner Daugherty asked the City Attorney if they can create a provision in which people can apply for exceptions, because currently they can't. Mayor Woods asked that he get with the City Attorney outside of the meeting to discuss that. Mr. Komando stated that would test our requirements on variances so they would need to talk about it differently. C. Paperless Agenda Project Update. Keith Randich summarized his staff report. He asked Commissioner Mark and Mayor Woods to report on their experience using the iPads. Commissioner Mark stated she is now going paperless and she likes it; it was an easy transition and encouraged the others to try it. Mayor Woods stated she really likes it also. She stated she thought it was to be used so they would not have anything on their personal devices so she has been trying to do things with it that it wasn't set up to do. She stated it takes fantastic pictures but getting a PowerPoint off of it is a real struggle. She stated if the consensus is that they are trying to get all of the City business off their personal devices that they go to a smaller laptop instead, which would have more options. She stated she does love the iPad, the keyboard, the case and is learning how to put all the notes on it since she has not used it before. She stated the question is what do they want it to do for them and then they can answer which path they go down. Discussion ensued. Mr. Randich stated he doesn't believe it is necessary that all the Commissioners go with the same solution. He stated in the beginning this was to be a paper saving device specifically for the agendas and based on that requirement that was what led staff to pick the iPad device for this evaluation. He stated once they got going, both Commissioner Mark and Mayor Woods found other uses for the device but Mayor Woods exceeded the functionality of the iPad. He stated there are dozens of different selections they could choose for devices but from a support standpoint, as far as City staff goes, he believes they would like to minimize the number of options because of a training standpoint. He answered questions from the Commission. Mayor Woods asked the Commissioners what device they would like and what they would want it to do for them and what is the goal for them as a group. Commissioner Hill stated the iPad is perfect for what he needs it for. Commissioner Daugherty stated he is fine with the iPad. Commissioner Beckenbach stated he is easy. Discussion ensued. D. FY 2013-2014 Resurfacing Project. Rick Carper summarized his staff report on the resurfacing projects for the coming year. He stated he proposes to piggy back on either the City of Jacksonville's or St. Johns County's annual resurfacing contract, whichever is most advantageous. 9. City Manager A. City Manager's Report. Mr. VanLiere reported January 1, 2015 is the deadline for the signs to come into compliance with the sign ordinance. He stated letters will be sent to those affected. Discussion ensued. A question arose about whether the Kangaroo station had gotten a permit for their new sign and Mr. Griffin stated he would check on that. Further discussion ensued and Mayor Woods asked the City Attorney for his insight on the sign ordinance. Mr. Komando stated he has had no experience with the expiration of a deadline but has worked on a moratorium with another client while they were rewriting their sign ordinance. He stated there is a case law that does address what governments can do as far as forcing Minutes-City Commission Workshop Page 8 AGENDA ITEM# 1B MARCH 10,2014 January 27, 2014 commercial businesses to redo their signs and he has a note to himself to look into it. Commissioner Hill stated he believes they will put a big burden on a lot of our businesses and really need to look at it. He stated some of these are large expensive signs and just the demo on them would be a big deal. He stated he believes they need to think about where we are economically and where our businesses are. Mayor Woods stated she would be interested in that case law. Commissioner Mark stated the changes to the sign ordinance have been in effect for how long. Mr. Griffin stated since 2002. Commissioner Mark stated they were given ten years to comply. Mr. Griffin stated our sign code is similar to Neptune Beach and the Jacksonville overlay district along Mayport Road, with 8' maximum freestanding signs and 1 s.f. for every lineal foot of frontage. Mayor Woods stated we do need to keep watching this and she looks forward to a report at the next meeting. 10. Reports and/or requests from City Commissioners and City Attorney Commissioner Daugherty announced that a Pan era is being built in front of LA Fitness. Commissioner Beckenbach stated whenever the Mayor speaks to a particular group, that is not ceremonial, it should have to be acknowledged by the Commission and they are supposed to give the Mayor the opportunity to go. He stated it is not that the Mayor just goes, it is that the Commission gives her the okay to go. Mayor Woods clarified that if she is to go speak before a group the Commission wants her to let them know and get permission to go. Commissioner Beckenbach stated the Commission would also hear what transpired from that meeting because she is the liaison for the Commission. Commissioner Beckenbach stated he wants to make this more formal so they will do this on a regular basis. Commissioner Mark stated in order to continue moving forward on the Human Rights Ordinance, she would propose that they direct the City Attorney to draft an ordinance for the HRO and explore enforcement options. She stated the other request would be for the Commission to adopt a resolution supporting the House and Senate bills for workforce equality and also contact, either as a Commission or individually, the representatives in our District who are on the Committees the bills are going before, expressing our support of that Workforce Equality Bill. Discussion ensued. Mr. Komando stated the House Bill has been referred to three different committees, the Senate Bill has been referred to four and it is the seventh year it has been filed; it has never been heard in committee yet. He stated Representative Saunders indicated it is gaining traction and stated this was the first year there has been bi-partisan support. He stated that doesn't mean it is going to pass; actually Representative Saunders comment was that he believed it would be a win if it was heard in one committee. Further discussion ensued. Mayor Woods asked Commissioner Mark to reiterate her questions. Commissioner Mark stated (1) Have Mr. Komando start looking at language to draft the HRO and look at the different enforcement mechanisms that we have talked about and some he may find in his research, including the comments made about possible lawsuits; and (2) submit a resolution supporting both bills. Discussion ensued about when to put the resolution on the agenda. It was the consensus of the Commission to add the resolution supporting the bills to the February 10 meeting. Commissioner Mark stated her third item was contacting our local representatives who are on these various committees. Mayor Woods stated they would make sure they got a copy of the resolution and direct staff to write a letter for the Commission to sign and send. Commissioner Hill stated he understood they would also explore putting this to the community for a vote. Mayor Woods stated that will come up as they start discussing the ordinance, which won't be for a month or two. She stated they don't have referendums all the time and this may very well be one they may want to do that with. She stated they could do it on the election Minutes-City Commission Workshop Page9 AGENDA ITEM# 1B MARCH 10,2014 January 27, 2014 cycle this summer. City Clerk Bartle stated you usually have to start this months in advance to have it on their ballot. She stated the Commission can initiate it but that will take two readings and you have to get the ballot title approved. Otherwise, it is very expensive to have a separate election outside of theirs. Commissioner Mark asked if this would fall under the City Attorney's retainer. Mr. Komando stated it is part of their retainer. He stated he would need direction fi:om the Commission as to what exactly they are proposing but he can handle it. Mayor Woods asked if they want staff to look at the election cycle so when they have a discussion about whether to go to a referendum or not they know what the timeframe is. Commissioner Mark stated she doesn't want to delay this two or three years. Mayor Woods stated that is one more thing they would like Mr. Komando to look at. Commissioner Hill stated his only direction for the referendum would be to frame the question as nonbiased as possible so the citizens can decide this monumental issue. Commissioner Mark reported Council President Gulliford is holding a meeting on river dredging at 1:30 tomorrow at Jacksonville City Hall. Commissioner Mark stated she will not be at the groundbreaking on January 31 due to a previous commitment. Commissioner Beckenbach complimented the Commission on how they handled themselves today as far as the conversation. He stated he enjoyed the debate but also felt they were all civil to one another. Commissioner Mark stated there was an article in the "Times Union" editorial section yesterday by Diane Catlin talking about debate and how you can have a civil debate and how important it is that you can have a lively debate but when it's done you get up, shake hands and you are still friends. Mayor Woods stated you can do that when you don't have personal attacks and accusations. Adjournment There being no further discussion by the City Commission, Mayor Woods declared the meeting adjourned at 10: 11 p.m. Donna L. Bartle, CMC City Clerk Carolyn Woods Mayor *Formal action (if needed) will be taken at the Commission Meeting of February 10,2014. Attendance: Minutes of the Beaches Habitat for Humanity Community Meeting Jordan Community Center January 22, 2014 Mark Beckenbach, Mayor Pro Tern Jonathan Daugherty, Commissioner Jimmy Hill, Commissioner Maria Mark, Commissioner Community Members, Beaches Habitat Staff and Board (22 total) The meeting began at 6:35PM. AGENDA ITEM# 1C MARCH 10,2014 The purpose of the meeting was to answer questions and provide information regarding the property development at 201 Mayport Road. No decisions were made, but Beaches Habitat for Humanity agreed to consider some of the suggestions presented by the community. The meeting ended at 8:30PM. Submitted by Donna K. Rex, President, Beaches Habitat for Humanity Mark Beckenbach, Mayor Pro Tern CODE ENFORCEMENT MONTHLY ACTIVITY JANUARY 2014 I i I VIOLATIONS ! FURTHER ACTION I CASE TYPES COMPLAINTS CORRECTED REQUIRED OPEN CASES I YTD 2013 YTD 2014 I I FENCES 0 0 0 6 COMPLAINTS 73 22 PUBLIC NUISANCE JUNK AND DEBRIS I 0 ! 0 i 0 0 I OUTSIDE STORAGE 3 1 2 22 I OVERGROWN 1 1 0 20 STAGNANT WATER 0 0 0 I 1 I ! i I SIGN VIOLATIONS I i I ILLEGAL SIGNS 2 2 0 5 STRUCTURE NO PERMITS-STOP WORK 0 0 I 0 : 6 I I i I PROPERTY MAINTENANCE 5 0 5 88 I DILAPIDATED STRUCTURE 1 0 1 2 TRASH I I i TRASH VIOLATIONS 3 1 2 3 i I VEHICLES I ILLEGAL PKG/STORAGE 1 0 i 1 14 I JUNK/INOPERABLE 4 I 1 3 5 I I ZONING ILLEGAL USES 0 I 0 I 0 i 6 OVERCROWDING 0 i 0 0 0 I 0 0 0 0 > DOG DINING ~gj BUSINESS TAX RECEIPT 2 1 1 8 ;;::~Z nv SEWER CONNECTIONS 0 0 0 1 ::c> -0 I 0 0 2 ->-J OTHER i Pm t->:S:: i :::::~ TOTALS I 22 7 15 189 I ~~ > PREPARED 2/14/14, 8:05:54 City of Atlantic Beach PROGRAM OL122L LIC jf 14-00007931 14-00007936 14-00007938 14-00007925 14-00007926 14-00007942 BUSINESS NAME BUSINESS ADDRESS ARIEFF CONSULTTNG, 309 MAGNOLIA ST INC. ATLANTIC BEACH:;'FL 32233 CEM HOME IMPROVEMENTS, 601 STURDIVANT AVE ATLANTIC BEACH FL 32233 COMMUNITY TITLE LLC 60 OCEAN BLVD UNIT 10 ATLANTIC BEACH FL 32233 DAVID PORTER ROGERS 345 6TH ST ATLANTIC BEACH FL 32233 DAVID PORTER ROGERS 345 6TH ST ATLANTIC BEACH FL 32233 LYNCH CYCLES, LLC 1400 MAYPORT RD ATLANTIC BEACH FL 32233 LLC LICENSE ACTIVITY REPORT BY BUSINESS NAME AGENDA ITEM# 4A MARCH 10,2014 NEW LICENSES FOR YEAR: 2014 BETWEEN: 01/01/14 TO 01/31/14 DEPT: ALL DEPARTMENTS CLASS: ALL CLASSES ISSUED TYPE CLASSIFICATION BUS PHONE jf 1/23/14 NEW CONSULTANT, NOT OTHERWISE CLASSIFIED 904-685-8234 1/24/14 NEW MISC. SERVICE ESTABLISHMENT, NOT LIS 904-704-8153 1/31/14 NEW TITLE COMPANY 904-465-2208 1/23/14 NEW REAL ESTATE BROKER 904-247-7077 1/23/14 NEW REAL ESTATE AGENCY 904-247-7077 1/31/14 NEW MOTORCYCLE REPAIR 904-249-2436 14-00007930 RENTERS REFERENCE SERVICES, IN 1/23/14 NEW MISC. SERVICE ESTABLISHMENT, NOT LIS 904-800-2288 380 AHERN ST ATLANTIC BEACH FL 32233 14-00007923 SAESOLVED:: LLC 1/23/14 NEW SOFTWARE PROGRAMS,WRITING OF 615 PARADISE CT 904-874-2879 ATLANTIC BEACH FL 32233 14-00007940 SIMPLY COASTAL CHIC 363 ATLANTIC BLVD UNIT 07 1/31/14 NEW MISCELLANEOUS SALES, OTHER THAN LIST 904-372-4614 ATLANTIC BEACH FL 32233 14-00007934 THE LAW FIRM OF FREDERICK R. S 1/23/14 NEW ATTORNEY FIRM/CORPORATION 625 ATLANTIC BLVD ATLANTIC BEACH FL 32233 14-00007935 THE LAW FIRM OF FREDERICK R. S 1/23/14 NEW ATTORNEY 625 ATLANTIC BLVD ATLANTIC BEACH FL 32233 904-853-6268 904-:-853-6268 14-00007924 THE YELLOW ROSE @ ATLANTIC BEA 1/23/14 NEW MISCELLANEOUS SALES, OTHER THAN LIST 1079 ATLANTIC BLVD UNIT 5 904-509-7020 ATLANTIC BEACH FL-32233 14-00007929 VINTAGE BARBER SHOP LLC 1021 ATLANTIC BLVD ATLANTIC BEACH FL 32233 GRAND TOTALS --------------NEW LICENSES AC: 12 pp: 1 IN: 0 VO: 0 PG: 0 "BR: 0 OB: 0 UC: 0 LIC: 13 1/23/14 NEW BARBER 904-303-5864 AGENDA ITEM# 4A MARCH 10,2014 City of Atlantic Beach FINANCIAL REPORT January 2014 Cash Balances Prior Current Dollar Percent Fund(s) 12/31/13 01/31/14 Change Change General $ 8,736,385 $ 8,698,244 $ (38, 141) -0.44% Tree Replacement 6,493 6,493 0.00% Convention Development Tax 78,444 82,149 3,705 4.72% Local Option Gas Tax 89,478 112,159 22,681 25.35% Better Jax 1/2 Cent Sales Tax 376,666 331,680 (44,985) -11.94% Police Training, Forfeiture, Grants, etc. 122,708 116,209 (6,500) -5.30% Community Development Block & ARRA Grants (849) (952) (103) 0.00% Debt Service #DIV/0! Capital Projects 2,837,722 2,835,483 (2,240) -0.08% Utility 4,995,548 5,176,099 180,551 3.61% Sanitation 707,838 704,730 (3, 1 09) -0.44% Building Code Enforcement 151,338 148,875 (2.463) -1.63% Storm Water 1,609,663 1,649,010 39,347 2.44% Pension -Police 81,934 71,855 (10,079) -12.30% Pension -General 100,571 120,476 19,905 19.79% Total $ 19,893,941 $ 20,052,511 $ 158,570 0.80% Total Restricted Cash 7,590,792 Total Unrestricted Cash $12,461,719 Cash and Investments Annual Prior Current Dollar Percent Account Yield 12/31/13 01/31/14 Change Change Bank of America -Depository $ 5,103,326 $ 3,237,808 $ (1 ,865,519) -36.55% Guggenheim Floating Rate A 3.93% • 2,886,896 3,654,393 767,497 26.59% Hartford Floating Rate Bond A 3.44% 2,510,202 2,516,296 6,093 100.00% lnvesco Floating Rate A 4.81% . 2,874,575 3,642,234 767,659 26.71% Main Stay Short Term Duration High Yield A 2.86% 2,510,609 2,513,098 2,488 0.10% Legg Mason WA Cash Reserve Fund 1,777 1,777 0.00% First Trust Short Duration High Income A 3.38% 2,000,590 2,000,590 100.00% Putnam Diversified Inc. 4.31% * 2,006,370 1,238,268 (768, 1 02) -38.28% Alliance Limited Duration High Income A 2.53% . 1,996,690 1,244,550 (752,140) -37.67% MSSB Money Market/Cash 0.00% SBA -Florida Prime 345 348 3 0.87% Cash on Hand 3,150 3,150 0.00% Subtotal $ 19,893,941 $ 20,052,511 $ 158,569 0.80% Police Pension Investments $ 7,911,554 $ 7,834,758 $ (76,796) -0.97% General Pension Investments 14,426,699 14,2561991 {169,708} -1.18% Subtotal $ 22,338,253 $ 22,091,749 $ (246,504) -1.10% Total $ 42,232,194 $ 42,144,259 $ (87,935) -0.21% • Denotes the 30 day SEC Yield Anualized AGENDA ITEM# 4A MARCH 10,2014 City of Atlantic Beach FINANCIAL REPORT January 2014 Revenues Annual YTD -33.00% YTD Dollar Fund I (Footnote) Estimate of Estimate Actual Variance General (1) $ 10,931,117 $ 3,643,706 $ 5,919,775 $ 2,276,070 Convention Development Tax 80,300 26,767 38,833 12,066 Local Option Gas Tax 421,009 140,336 141,345 1,009 Better Jax 1/2 Ct Sales Tax 694,870 231,623 228,568 (3,055) Police Training, Forfeiture & Grants, etc. 110,041 36,680 22,418 (14,262) Grants 75,000 25,000 7,641 (17,359) Capital Projects (2) 495,000 165,000 139,151 (25,849) Utility 8,611,203 2,870,401 2,784,066 (86,335) Sanitation 1,789,000 596,333 605,000 8,667 Building Code Enforcement (3) 281,550 93,850 126,204 32,354 Storm Water 1,155,000 385,000 405,952 20,952 Pension-Police (4) 1,329,681 443,227 482,668 39,441 Pension-General (4) Total $ 2,190,980 730,327 28,164,751 $ 9,388,250 $ Analysis of Major Variances (Variances >$25,000 AND 10.00%) 813,162 82,835 11,714,784 $ 2,326,533 In general, the major variances are created when the actual funds received-to-date are different from the percentage of the budget elapsed-to-date. They are as follows: (1) The positive variance in the General Fund is mostly due to the timing of property tax receipts. The bulk of the receipts come in November and December. (2) The city has not received expected grant monies from the State of Florida nor the City of Jacksonville; therefore there is a negative variance in Capital Projects. (3) Building Code Enforcement permit activity is running above projected revenues, similar to surrounding jurisdictions and counties. (4) The $39,441 and $82,835 positive variances in the Pension Fund-Police and Pension Fund-General, respectively, resulted from changes in market values of the investments of more than the anticipated amount. Percent Variance 62.47% 45.08% 0.72% -1.32% -38.88% -69.44% -15.67% -3.01% 1.45% 34.47% 5.44% 8.90% 11.34% 24.78% City of Atlantic Beach FINANCIAL REPORT January 2014 Expenses Annual YTD -33.00% YTD Dollar Department I (Footnote) Estimate of Estimate Actual Variance Governing Body $ 42,933 $ 14,311 $ 13,680 $ 631 City Administration 2,647,727 882,576 849,402 33,174 General Government (1) 640,370 213,457 309,942 (96,485) Planning and Building (2) 434,709 144,903 114,765 30,138 Public Safety (3) 5,692,612 1,897,537 1,313,705 583,832 Recreation and Special Events 396,901 132,300 128,264 4,037 Public Works (4) 7,877,621 2,625,874 1,777,023 848,851 Public Utilities 10,793,308 3,597,769 3,488,968 108,802 Pension -Police 751,628 250,543 262,014 (11,472) Pension -General (5) 852,850 284,283 344,099 {59,816} Total $ 30,130,659 10,043,553 8,601,861 $1,441,692 Annual YTD-33.00% YTD Dollar Resource Allocation Estimate of Estimate Actual Variance Personnel Services (1 ,3) $ 9,541,493 $ 3,180,498 $ 2,912,931 $ 267,567 Operating Expenses (1-4) 10,726,368 3,575,456 2,953,863 621,593 Capital Outlay (1,4) 5,785,010 1,928,337 463,995 1,464,342 Debt Service (2,4) 2,448,768 816,256 1,728,064 (911 ,808) Transfers Total $ 1,629,020 543,007 30,130,659 $ 10,043,553 $ Analysis of Major Variances (Variances >$25,000 AND 10.00%) 543 008 8,601,861 $ 1,441,693 In general, the major variances are a result of timing differences created between the percentage of budget elapsed-to-date and actual expenditures. They are as follows: (1) The negative variance in General Government resulted from the budget for insurance premiums, other than health, and debt service being prorated over twelve months when budgeted, but expensed when paid -insurance in October and SunTrust '99 debt payoff in December. (2) The positive variance in Planning and Building resulted from a vacant position for a Redevelopment and Zoning Coordinator. The position has been vacant since the beginning of the fiscal year. (3) The positive variance in Public Safety was partially due to the budget proration practice mentioned above -Fire contract with COJ is billed quarterly in arrears (approximately $260,000 in January); and, lifeguard expenditures will appear seasonally during April-September. The remaining variance is due to turnover/unfilled positions in the Police Patrol and Crime Suppression divisions. (4) The variance in the Public Works Department was due to: project activity budgeted that has not been started/completed -see Project Activity schedule; only three payments recorded to the trash hauler and fleet maintenance provider (October payments for September activity were recorded in FY13 for year-end cut-off); Storm Water Fund debt payments were expensed in October when paid, but prorated for budget purposes; and minimal expenses have been incurred towards the Parks Master Plan consultant or the resurfacing/street paving program. (5) The negative variance in Pension -General resulted from a doubling from three to six DROP participants with higher benefits. AGENDA ITEM# 4A MARCH 10, 2014 Percent Variance 4.41% 3.76% -45.20% 20.80% 30.77% 3.05% 32.33% 3.02% -4.58% -21.04% 14.35% Percent Variance 8.41% 17.38% 75.94% -111.71% 0.00% 14.35% AGENDA ITEM# 4A City of Atlantic Beach MARCH 10, 2014 FINANCIAL REPORT January 2014 Project Activity -Current Year Activity Only Project YTD YTD Project Name Number Budget Actual Balance Status Public Safety: Kennel Improvements PS1401 40,000 40,000 s Life Guard Building Improvements PS1402 6,000 6,000 s $ 46,000 $ ~ 46,000 Public Utilities: Reclaim Water Plant PU0805 1,352,858 41,389 1,311,469 I Replace the Water Main on Pine Street PU1304 53,199 26,042 27,158 I Replace 4" Water Main at Wonderwood and Finegan PU1305 82,567 11,783 70,784 I PT Repair at Lift Station C PU1306 10,280 10,280 B Repair 24" Effluent Force Main PU1308 5,260 5,260 0 E Repair 12" Force Main PU1309 3,363 3,363 0 E Water Plant #2 Tank Rehabilitation PU1401 125,000 125,000 E Water Plant #2 Rehabilitation GST PU1402 100,000 100,000 A AC Main Sea Oats PU1403 390,000 390,000 E lnline Valve Installations PU1404 50,000 50,000 E Manhole Replace Saturiba PU1405 86,000 86,000 A Sewer Rehabilitation Saturiba PU1406 27,264 27,264 E Donner Subd Sewer Upgrade PU1407 155,000 155,000 E Effluent Outfall Replacement PU1408 300,000 300,000 E Effluent Pump at WWTP PU1409 50,000 50,000 I Subtotal $2,790,791 $ 87,836 $ 2,702,955 Parks Maintenance: Marsh Master Plan Signs PM1301 625 625 c Rose Park Development PM1302 197,357 190,699 6,658 I Russell Park Tennis Courts 1-2 PM1401 100,000 100,000 s Bull Park Gazebo PM1402 40,000 40,000 s Donner Park Ball field Improvements PM1403 75,000 103 74,897 A Electric Gate at Dutton Island Park PM1404 8,000 I Marsh Project Pedestrian Path PW1408 150,000 150,000 E March Overlook and Kayak Launch PW1409 295,000 295,000 E Marsh Preserve Path PHZ-1 PW1410 40,000 30,998 9,002 I Subtotal $ 905,982 $ 222,425 $ 675,557 Public Works: Dutton Isle Road Sidewalks PW1301 65,263 849 64,414 A East Coast Drive Drainage Improvements PW1306 319,D46 319,046 A East Coast Drive Improvements PW1401 79,000 79,000 A Fountain PW1402 7,500 7,500 E Welcome Sign PW1403 11,000 1,750 9,250 E Robert Street Ditch PW1404 50,000 50,000 I Sidewalk and Curbs PW1405 25,000 25,000 I Salt Air Drainage and Sidewalk Improvements PW1406 380,000 380,000 A Seminole Road Improvements PW1407 490,000 490,000 A Subtotal $1,426,809 $ 2,599 $ 1,424,210 Total $5,169,582 $ 312,860 $ 4,848,722 Status Key A -Bid/RFP Advertised I -Project In-progress B -Bid Awarded N -Complete/Non-Capital C -Project Completed R-Re-budget Next Fiscal Year OR Re-Evaluated D -Design Completed S -Staff Researching DE -Deferred X -Project Cancelled E -Design Phase DRAFT FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT CITY OF ATLANTIC BEACH, FLORIDA SEPTEMBER 30, 2013 AGENDA ITEM# 48 MARCH 10, 2014 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT CITY OF ATLANTIC BEACH, FLORIDA SEPTEMBER 30, 2013 TABLE OF CONTENTS Independent Auditors’ Report ..................................................................................................................... i-iii Management’s Discussion and Analysis.................................................................................................. iv-xiii Basic Financial Statements Government-wide Financial Statements Statement of Net Position.......................................................................................................................... 1 Statement of Activities .............................................................................................................................. 2 Fund Financial Statements Balance Sheet - Governmental Funds....................................................................................................... 3 Reconciliation ofBalance Sheet of Governmental Funds to the Statement of Net Position....................................................................................................................... 4 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds............................................................................................................ 5 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................................................... 6 Statement of Net Position - Proprietary Funds...................................................................................... 7-8 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds.............................................................................................................................. 9-10 Statement of Cash Flows - Proprietary Funds...................................................................................11-13 Statement ofNet Position - Fiduciary Funds..........................................................................................14 Statement of Changes inNet Position - Fiduciary Funds.......................................................................15 Notes to Financial Statements ........................................................................................................ 16-38 Required Supplementary Information Schedules of Pension Funding Progress.......................................................................................................39 Schedules of Contributions from Employer and Other Contributing Entities.................................................................................................................................................40-41 Other Postemployment Benefits Plan - Schedule of Funding Progress......................................................42 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund.....................................................................................................43-44 Note to Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund.........................................................................................45 Supplementary Information Combining Balance Sheet - Nonmajor Governmental Funds................................................................46-47 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds.........................................................................48-49 Combining Statement of Net Position- Fiduciary Funds.............................................................................50 Combining Statement ofChanges in Net Position- Fiduciary Funds..........................................................51 DRAFT FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT CITY OF ATLANTIC BEACH, FLORIDA SEPTEMBER 30, 2013 TABLE OF CONTENTS (Concluded) Supplementary Information (Concluded) Historical Revenues and Expenses...............................................................................................................52 Schedules of Net Revenues in Accordance with Bond Resolutions - Enterprise Funds (Water and Sewer)................................................................................53 Other Bond Covenant Disclosures...............................................................................................................54 Other Statistical Information Major Utility Customers............................................................................................................................... 55 Summary of Water Usage............................................................................................................................. 56 Summary of Wastewater Treatment - Atlantic Beach Sewer Division.................................................................................................................................................... 57 Summary of Wastewater Treatment - Outside City Sewer Division.......................................................... 58 AdditionalElements of Report Prepared in AccordanceWith Government Auditing Standards,Issued by the Comptroller General of the United States; the Rules of the Auditor General of the State of Florida;and Other Contract Requirements Schedule of Expenditures of Federal Awards and State Financial Assistance Projects........................................................................................................................59-60 Note to Schedule of Expenditures of Federal Awards and State Financial Assistance Projects.............................................................................................................61 Schedule of Source and Expenditure of the City Grant Funds...............................................................62 Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements Performed in Accordance with Government Auditing Standards .......................................................................................... 63-64 Management Letter............................................................................................................................ 65-66 DRAFT INDEPENDENT AUDITORS’ REPORT DRAFT i INDEPENDENT AUDITORS’ REPORT Honorable Mayor, City Commissioners and Interim City Manager Atlantic Beach, Florida We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atlantic Beach, Florida, (the City), as of and for the year ended September 30, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. The prior year summarized comparative information has been derived from the City’s 2012 financial statements and, in our report dated April 10, 2013, we expressed unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. DRAFT ii Honorable Mayor, City Commissioners and Interim City Manager Atlantic Beach, Florida INDEPENDENT AUDITORS’ REPORT (Continued) Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2013, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other requiredinformation on pages iv–xiii and 39–45be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, andother knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The supplementary information on pages 46- 54, the other statistical section on pages 55-58, and the schedule of expenditures of grant funds per the City of Jacksonville’s Ordinance Code Chapter 118.202(e)are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal and state awards, is presented for the purpose of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Chapter 10.550, Rules of the Auditor General and is also not a requiredpart of the financial statements. The supplementary information,schedule of federal and state awards, and schedule of expenditures of grant funds per the City of Jacksonville’s Ordinance Code Chapter 118.202(e)are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information and schedule of federal and state awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The other statistical section has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. DRAFT iii Honorable Mayor, City Commissioners and Interim City Manager Atlantic Beach, Florida INDEPENDENT AUDITORS’ REPORT (Concluded) Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have issued our report dated _______ on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. ______________ Gainesville, Florida DRAFT iv CITY OF ATLANTIC BEACH, FLORIDA MANAGEMENT’S DISCUSSION ANDANALYSIS SEPTEMBER 30, 2013 As management of the City of Atlantic Beach, Florida(the City),we offer readers of our financial statements this narrative overview and analysis for the fiscal year ended September 30, 2013. Overview of the Financial Statements This management’s discussion and analysis is intended to serve as an introduction to theCity’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains othersupplementary information in addition to the basic financial statements themselves. The purpose of each of the three components of the basic financialstatements is described below. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a privatesector business. They include the Statement of Net Position and the Statement of Activities. The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Net positionisreported as one of three categories: invested in capital assets - net of related debt; restricted; or unrestricted. Restricted net position is further classified as either net position restricted by enabling legislation or net position that isotherwise restricted. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues, referred to as “governmental activities,” from other functions that are intended to recover all or a significant portion of their costs through user fees and charges, referred to as “business-type activities.” The governmental activities of the City include public safety, road maintenance and construction, parks and recreation,conservation and resource management, physical environment (i.e., infrastructure), debt, and general government, which include administration and other support functions. The business-type activities of the City include the utility, comprised of the water and sewer systems, the stormwater system, the sanitation service and the building code enforcement enterprise fund. The government-wide financial statements can be found on pages 1 - 2 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be categorized into either governmental funds, proprietary funds, or fiduciary funds. DRAFT v CITY OF ATLANTIC BEACH, FLORIDA MANAGEMENT’S DISCUSSION ANDANALYSIS SEPTEMBER 30, 2013 (Continued) Fund Financial Statements (Concluded) Ŷ Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of available resources, as well as on balances of available resources at the end of the fiscal year.Such information may be useful in evaluating a City’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Reconciliations are provided between the Governmental Funds Balance Sheet and the Statement of Net Position and the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances and Statement of Activities to facilitate this comparison between governmental funds and governmental activities. The City maintains fourteenindividual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, which is considered to be a major fund. Data from the other thirteengovernmental funds are combined into a single, aggregated presentation called Nonmajor Governmental Funds. Fund data for these nonmajor governmental funds is provided in the form of combining statements. These combining statements can be found on pages 46 – 49 of this report. The City adopts an annual appropriated budget for all funds but is only required to present a budget comparison for its General Fund. The Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund budgetary comparison schedule and notes on pages 43 - 45of this report has been provided to demonstrate compliance with this budget. Ŷ Proprietary Funds The City maintains only one type of proprietary fund and that is enterprise funds. The enterprise funds are used to account for the activities of the water and sewer (utility), stormwater, building code enforcement and sanitation activities. The proprietary fund financial statements provide the same type of information as the government- wide financial statements, only in more detail. Separate information of the utility, stormwater, sanitation and building code enforcement activities can be found in the basic proprietary fund financial statements on pages 7 - 13 of this report. Ŷ Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the City (i.e., pension beneficiaries). Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 14 - 15 of this report. Notes to Financial Statements The notes to financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes begin on page 16 of this report. DRAFT vi CITY OF ATLANTIC BEACH, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2013 (Continued) Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits to its employees and a budgetarycomparison schedule for the General Fund. Required supplementary information can be found beginning on page 39of this report. Government-wide Financial Analysis Net position may serve over time as a useful indicator of a City’s financial position. Ascan be seen in the summarized table below of this analysis, the City’s assets exceeded liabilities by $74,678,000 at the close of the fiscal year ended September 30, 2013. By far the largest portion of the City’s net position, $58,038,000 (78%), reflectsits investment in capital assets (i.e., land, buildings, equipment, and infrastructure), less any related, outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A portion of the City’s net position, $5,434,000 (7%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $11,205,000, (15%), is used to meet the government’s ongoing obligations to citizens and creditors. City of Atlantic Beach’s Net Position September 30, 2013and 2012 (In Thousands) GovernmentalBusiness-type ActivitiesActivitiesTotals 201320122013201220132012 Current and other assets$10,853$10,350$9,235$9,457$20,088$19,807 Capital assets 39,41139,78641,08042,41380,49182,199 Total Assets 50,26450,13650,31551,870100,579102,006 Long-term liabilities outstanding57437821,56722,65622,14123,034 Other liabilities8361,1772,9243,7463,7604,923 Total Liabilities 1,4101,55524,49126,40225,90127,957 Net Position: Invested in capital assets, net of related debt39,34239,64918,69718,29158,03957,940 Restricted3,6563,4141,7781,7125,4345,126 Unrestricted5,8565,5185,3495,46511,20510,983 Total Net Position $48,854$48,581$25,824$25,468$74,678$74,049 DRAFT vii CITY OF ATLANTIC BEACH, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2013 (Continued) As illustrated in the scheduleon page vi, the City was able to report positive balances in all categories of net position, both forthe government as a whole, as well as for its separate governmental and business- type activities. The same situation held true for the prior fiscal year. City of Atlantic Beach’s Change in Net Position For the Years Ended September 30, 2013and 2012 (InThousands) Governmental Business-type Activities Activities Totals 201320122013201220132012 Revenues: Program Revenues: Charges for services$1,837$1,714$11,071$10,860$12,908$12,574 Operating grantsand contributions61062700610627 Capital grants and contributions130736279165409901 General Revenues: Property taxes 3,8443,961 0 03,8443,961 Sales taxes 1,1561,080 0 01,1561,080 Business and utility taxes 1,1971,124 0 01,1971,124 State revenue sharing 283279 0 0283279 Discretionary sales surtax 684648 0 0684648 Investment Earnings(Loss)(201)345(146)248(347)593 Miscellaneous 403 32 0 0403 32 Total Revenues 9,94310,54611,20411,27321,14721,819 Expenses: General government1,9721,846001,9721,846 Public safety5,1405,489005,1405,489 Road maintenance and construction1,8811,937001,8811,937 Parks and recreation1,2891,376001,2891,376 Interest/Fiscal Chargeson long- term debt360036 Utility007,3267,6697,3267,669 Stormwater001,1431,1661,1431,166 Sanitation001,5031,5501,5031,550 Building code enforcement00261270261270 Total Expenses 10,28510,65410,23310,65520,51821,309 Transfers 615315(615)(315)00 Change in net position 273207356303629510 Net position-Beginning 48,58148,37425,46825,16574,04973,539 Net position-Ending $48,854$48,581$25,824$25,468$74,678$74,049 DRAFT viii CITY OF ATLANTIC BEACH, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2013 (Continued) Fund Financial Analysis As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Following is a summary of fund activity financial information for the fiscal year, rounded to the nearest thousand dollars: Ŷ Governmental Funds At the end of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $10,212,000, an increase of $724,000 in comparison with the prior year. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassignedfund balance was $3,446,000, which equated to32% of total General Fund expenditures, without transfers out. The net result of various revenue and expense items resulted in an increase to the City’s General Fund of $333,000or 5% during the current fiscal.This increase primarily resulted from revenues being less thanbudgetedby $12,000,whileexpenses were $557,000less than budget for a net positive variance of $545,000. The General Fund revenues were close to the budgeted amountin total and increased from 2012 by $58,000.Revenues from earningson City investments was the largest item lower than expected, but was partially offset by code enforcement fines and property sales that generated $130,000, active collections of past due business tax receipts of $27,000, unanticipated sales tax revenueof $44,000, and receipts from the settlement of the Estates of Atlantic Beach lawsuitof $27,000.The expenditures of the General Fund were lower than expected, mostly from capital project monies not being spentand unfilled positions. There were budget surpluses throughout all departments of the General Fund,the largest being Public Safetywith a positive variance of $145,000. Nonmajor governmental funds consisting of special revenue funds,the debt service fund, and the capital projects fundhave a combined fund balance of $3,634,000. Of this fund balance, $73,000 is restrictedas a debt service reserveand $3,214,000 is restrictedfor capital projects. The net increase in fund balance after transfers in nonmajor governmental funds was $391,000. Ŷ Proprietary Funds The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Net positionin the proprietary funds increased $356,000during the fiscal year.In fiscal year 2013,a stormwaterrate adjustment of $1.50per ERU was implemented to help cover the cost of the stormwater system maintenance and to allow more Gas Tax proceeds to go towards street paving. Operating expenses, including depreciation, decreased $687,000. After non- operating revenues and expenses are added, the incomewas$700,000before transfersand capital contributions. After capital contributions and net transfers of $270,000 and $615,000, respectively, the total change in net position was $356,000. The subsidyby the Local Option Gas Tax Fund to the Stormwater Fund to support its operating expenses was suspended this fiscal year, as a result of increased revenues from the ERU rate increases of $1.50 and $1.89 in fiscal year 2013 and 2012, respectively. The $8.39per ERU rate is approximately 82%, compared to 64% for the prior year,of the total operating expenses of $1,042,000 needed to fully fund the operation with charges for service. During fiscal year 2013, the Sanitation Fund netted an increase innet position of $13,000, after contributing $268,000 to the General Fund. The unrestricted net position of the enterprise funds amounted to $5,349,000 at the end of fiscal year 2013. The total decreasein unrestricted net position of $116,000 from 2012was primarily due to recognition of the loan origination fee expense associated with the State Revolving Loan for the TMDL sewer project. DRAFT ix CITY OF ATLANTIC BEACH, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2013 General FundBudgetary Highlights The $329,000 increase in the original budgeted revenues and the final amended budgetstemmed from the Riverbranch Foundation contribution for acquisition of marsh property near Dutton Island Road. The expense budget included a $583,000 increase in appropriations, and a $5,000increasein transfers. The portion of the increase in appropriations for the encumbrances rolling forward from 2012was $57,000. Net Budget The overall net difference from the final budgeted revenues and adjusted final budgeted expenses was a deficit of $227,000. The actual increase in fund balance was $309,000. This resulted in a $535,000 excess variance above what was budgeted in the General Fund. Capital Assets and Debt Administration Capital AssetsʊThe City’s investment in capital assets, net of related depreciation, for its governmental and business-type activities as of September 30, 2013, amounted to $80,491,000. This investment in capital assets includes land, land improvements, land easements, buildings and infrastructure improvements, equipment, and construction in progress. The total change in the City’s capital assets, net of related depreciation, for the current fiscal year was a decrease of $375,000 (1%) for governmental activities and adecreaseof $1,332,000 (3%) for business- type activities. Capital asset events during the current fiscal year included the following: Governmental Activities Land increased $329,000 for themarsh preserve acquired through the Riverbranch Foundation contribution. Buildings,net of accumulated depreciation,decreased by $114,000through annual depreciation of the capital assets. Intangible Assets reflected a net decrease of $19,000. This asset category includes land easements and computer software. A $10,000 acquisition of enhanced computer software enabling citizen access to City documents through a web link to the record retention software was offset by a decrease in asset value of $29,000 attributed to depreciation. Improvements Other Than Buildings reflected a net decrease of $588,000. This represented a capital asset increase of $84,000, offset by depreciation of $672,000.Acquisitions this year included: installation of sidewalks on Dutton Island Road and West 9th Street; improved lighting in the parking lot servicing City Hall and Russell Park; directional road signs for Tideviews and Dutton Island Preserves; and, providing enhanced irrigation controls by zone for the medians on Atlantic Boulevard. DRAFT x CITY OF ATLANTIC BEACH, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2013 (Continued) Governmental Activities (Concluded) Equipment assets reflected a net decrease of $80,000. This net decrease was comprised of assets acquired for a value of $251,000, offset by disposed assets with a net book value of $7,000 and depreciation of $324,000. Asset acquisitions of note in this category were: the grant-funded storm shutters for City Hall and surveillance equipment for the Police Department; areplacement copier for City Hall; laptop replacements for police officers; cable fiber extensions to enhance communications between City locations; new vans for the painter and building maintenance workersand other City fleet vehicles identified for replacement during the budget process; and, a small boat for park rangers to assist with maintenance of the marsh parks. Construction in progress increased $101,000 as project costs were incurred for Rose Park design and development, and designwork on the Marsh Master Plan that is not yet complete. Business-type Activities Buildings and Intangible Assets reflected a net decrease in asset value of $69,000 from depreciation. Improvements Other Than Buildings reflected a net decrease of $1,416,000. This represented a capital asset increase of $733,000, offset by depreciation of $2,149,000. Utility projects completed in this category included: water main work on 12th street and on Ocean Boulevard; recoating of the elevated water storage tanks at WTP # 1 and 2; outfall interconnectivity; and, sewer-related cured- in-placepipe improvements. Equipment assets reflected a netincreaseof $83,000. This net increasewas comprised of assets acquired for a value of $181,000, offset by a $1,000 disposal of a computer and $98,000 of depreciation. Some of the assets acquired in this category were:a sludge truck; a generator for the Schooners Bay lift station; three 30-yardroll-on/off containers;and, areplacement chlorinator. Construction in progress increased by$70,000. All of the water main projects in the $116,000 balance from the prior fiscal year were completed and put into service. The remaining balance of $185,000in construction in progress at September 30, 2013represents engineering design and permitting costs associated with the reclaimed water plantprojectand water main replacements on Pine Street and near Finnegan Elementary School. DRAFT xi CITY OF ATLANTIC BEACH, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2013 (Continued) City of Atlantic Beach’s Capital Assets (Net of Depreciation) (In Thousands) GovernmentalBusiness-type ActivitiesActivitiesTotals 201320122013201220132012 Land $10,363$10,034$1,656$1,656$12,019$11,690 Intangibles 2241215215237256 Buildings 2,7512,865941632,8453,028 Improvements-Other25,27825,86638,52839,94463,80665,810 Equipment 8969764023181,2981,294 Construction in Progress101 4185116286120 Total $39,411$39,786$41,080$42,412$80,491$82,198 Additional information on the City’s capital assets can be found in Note 5 on pages 27-28 of this report. Long-term Debt At the end of the 2013 fiscal year, the City had total bonded debt outstanding of $22,628,000. This amount was comprised of debt secured solely by specified revenue sources. A detailed listing of the City’s debt can be found in the table below. City of Atlantic Beach’s Outstanding Debt September 30, 2013 (In Thousands) GovernmentalBusiness-type ActivitiesActivitiesTotals Utility System Revenue Bonds, Series 2004$0$13,238$13,238 Utility System Revenue Bonds, Series 2010A-1 0 807 807 Utility System Revenue Bonds, Series 2010B 0 601 601 SunTrust Revenue Refunding Bonds, Series 1999 69 86 155 F.D.E.P. State Revolving Funds Loan, 2010 0 691 691 F.D.E.P. State Revolving Funds Loan, 2009 0 7,136 7,136 Total $69 $22,559 $22,628 The City has been able to pay for ongoing capital projects related to governmental activities since borrowing funds in 1989 (refunded in 1999 to take advantage of reduced interest rates). Therefore, it has a high capacity for additional debt, if needed. The only Governmental Activity Debt outstanding will be fully paid off in the first quarter of fiscal year 2014. Debt service coverage calculations can be found on page 53. Additional information on the City’s long- term debt can be found in Note 6 on pages 28 – 31 of this report. DRAFT xii CITY OF ATLANTIC BEACH, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2013 (Continued) Economic and Budgetary Highlights The City has experienced the same economic downturn as other cities across the country in recent years. Most of the City’s major revenue sources have declined. While news stories indicate that the economy is starting to rebound, there is no indication of additional revenues from any of the major sources. Projections forrevenues remain essentially flat. Even though costs in some areas are expected to increase, no increase in rates were budgeted for 2014. The 25% contingency levels set by the City Commission are continuing to be maintained. Service levels have been maintained at essentially the same levels to those before the recession. Major adjustments to support theseservice levels included fewer capital projects than in past years, increased storm water fees, the elimination of capital projects from the General Fund, pension reform and health care restructuring, and increased efficiency in water and sewer operations.Some strategic planning and budgetary highlights the City expect to address in 2014 and into the future are highlighted below. Revenue Highlights: Ŷ The 2013 taxable property values are about 0.5% higherthan the 2012 values.The City Commission voted to use the same rate of 3.3285 mills, instead of the roll-back rate of 3.3156%. The purpose for adopting the millage rate of 3.3285 was to maintain a level of ad valorem tax revenue sufficient to maintain adequate funding for the existing level of services at the estimated cost and to continue to maintain the City’s infrastructure. With the slight increase of 0.39% over the roll-back rate, tax collections are budgeted to be almost the same in 2013 as they were in 2012.The finalgross taxable property value was $1,206,595,653.Ad valorem taxes are estimated to represent about 35%of the General Fund revenues for 2013. Ŷ State-shared revenues ended the year with a 5.03% increasefrom 2012.From 2012 to 2013, the combination of General Fund sales taxesand revenue sharing collectionsincreased $75,000. The projection for 2014 exhibits a trend thatslightly increases these revenues by $32,000.These two sources account for about 14.63% of the General Fund revenues. Ŷ The City modified its investment policy during the year to include corporate bond mutual funds to the portfolio. This policy change was made to enhance the fixed income, short duration mutual fund strategyand attempt to “de-risk” the portfolio, due to the volatility of the treasury market. As of September 30, 2013, the City had approximately $14,000,000invested. The investment earning loss for the year was $347,000, compared to a $593,000 gain the prior year. Over the past three years, the City has recognized an overall investment earnings gain of $595,000.With the current investment strategy, the City anticipates the loss for 2013 will be recouped in 2014. Ŷ In Fiscal Year 2013, the City increasedthe storm water rates by $1.50 from $6.89 to $8.39 per ERU. This increase generated an additional $171,000 in revenues.As a result of rate increases in 2012 and 2013,the City was able to discontinue the transfer from the Gas Tax Fund to cover a portion of its operating budget. These rate increases will only generate about half of what isneeded to fully fund the Storm Water Utility with its own rates. Each dollar increase represents about $100,000 in additional revenues.Without further rate increases, the utility continues to receive an annual transfer from the Half Cent Sales Tax Fund, $252,000 in 2013 and a budgeted $285,000 in 2014.There are no water or sewer rate increases included in the 2014 budget. DRAFT BASIC FINANCIAL STATEMENTS These basic financial statements contain Government-wide Financial Statements, Fund Financial Statements,and Notes to Financial Statements. DRAFT See accompanying notes. 1 GovernmentalBusiness-type 2012 ActivitiesActivitiesTotalsTotals Assets Equity in Pooled Cash and Investments 9,656,124$5,506,238$15,162,362$15,079,991$ Receivables - Net 116,693615,699732,392621,379 Due from Other Governments871,1510871,1511,054,659 Inventories26,09862,87688,97480,249 Notes Receivable - Current76015,75916,51911,469 Restricted Assets: Equity in Pooled Cash and Cash Equivalents 02,544,2072,544,2072,649,289 Capital Assets: Land10,363,0021,656,01812,019,02011,690,355 Buildings 4,491,6594,356,3848,848,0438,848,043 Improvements Other Than Buildings 38,839,86377,061,749115,901,612115,084,536 Equipment 3,367,9252,023,4855,391,4105,029,576 Intangibles - Easements and Computer Software 341,079244,709585,788575,293 (Accumulated Depreciation and Amortization)(18,093,554)(44,447,284)(62,540,838)(59,149,598) Construction in Progress 101,062184,671285,733120,020 Prepaid Items 180,849181,147361,99634,871 Notes Receivable - Noncurrent 1,520 133,446 134,96685,306 Unamortized Loan Costs 0175,913175,913190,405 Total Assets 50,264,23150,315,017100,579,248102,005,843 Liabilities Accounts Payable and Other Current Liabilities622,010438,0351,060,0451,258,057 Construction Retainages Payable000385,117 Due to Other Governments 09,384 9,3847,141 Deferred Revenue 7,302182,444 189,746238,476Deposits9,9160 9,9168,090 Compensated Absences - Current195,57681,499 277,075596,000 Accrued Interest Payable9710 9711,917 Payable from Restricted Assets: Current Portion of Bonds Payable 01,050,992 1,050,9921,012,767 Current Portion of Loan Payable 0164,475 164,475457,492 Accrued Interest Payable 0423,372 423,372439,420 Customer Deposits 0573,879 573,879518,653 Noncurrent Liabilities: Due Within One Year 69,203 069,20367,712 Due in More Than One Year 021,343,633 21,343,63322,525,649 Compensated Absences - Noncurrent 369,224179,590 548,814292,426 Other Postemployment Benefits Obligation 135,72644,072 179,798148,363 Total Liabilities 1,409,92824,491,37525,901,30327,957,280 Net Position Net Investment in Captial Assets 39,341,83318,696,54558,038,37857,939,888 Restricted for: Renewal and Replacement 0500,000500,000500,000 Debt Service 73,1131,201,0621,274,1751,249,208 Public Safety 167,967 0167,967178,300 Road Maintenance and Construction 92,254 092,254123,526 Parks and Recreation 0 0 0 1,194 Other Capital Projects 3,214,166 03,214,1662,982,216 Other Purposes 108,741 0108,74152,732 Building Code Enforcement 076,92176,92138,463 Unrestricted 5,856,2295,349,114 11,205,34310,983,036 Total Net Position 48,854,303$25,823,642$74,677,945$74,048,563$ CITY OF ATLANTIC BEACH, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2013, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2012 2013 DRAFT Se e a c c o m p a n y i n g n o t e s . 2 Oper a t i n g Ca pit a l Ch a r ges f o r G r a n t s a n d G r a n t s a n d G o v e r n m e n t a l B u s i n e s s - t yp e2012 Fu n c t i o n s / P r o g r a m s Ex p e n s e s S e r v i c e s C o n t r i b u t i o n s C o n t r i b u t io n s A c t i v i t i e s A c t i v i t i e s T o t a l s T o t a l s Pr i m a r y G o v e r n m e n t Go v e r n m e n t a l A c t i v i t i e s : Ge n e r a l G o v e r n m e n t 1 , 9 7 1 , 6 8 3 $ 8 5 0 , 1 8 7 $0 $ 1 4 , 7 3 9 $ (1, 1 0 6 , 7 5 7 )$0 $ (1,106,757)$(820,733)$ Pu b l i c S a f e t y 5, 1 3 9 , 7 3 0 8 0 3 , 7 5 2 80 , 0 7 3 2 , 7 8 6 (4, 2 5 3 , 1 1 9 ) 0(4,253,119)(4,668,887) Ro a d M a i n t e n a n c e a n d Co n s t r u c t i o n 1 , 8 8 1 , 2 6 0 1 1 5 , 5 0 1 5 3 0 , 1 0 4 2 2 , 2 9 1 (1, 2 1 3 , 3 6 4 ) 0(1,213,364)(1,296,742) Pa r k s a n d R e c r e a t i o n 1, 2 8 9 , 1 3 4 6 7 , 6 2 9 0 9 0 , 3 8 0 (1, 1 3 1 , 1 2 5 ) 0(1,131,125)(1,064,934) Ph ysi c a l E n v i r o n m e n t 0 0 0 0 0 00277,183 Co n s e r v a t i o n a n d R e s o u r c e Ma n a gem e n t 0 0 0 0 0 002,106 In t e r e s t / F i s c a l C h a r ges o n Lo n g-t e r m D e b t 3, 3 7 0 0 0 0 (3, 3 7 0 ) 0(3,370)(6,201) To t a l G o v e r n m e n t a l A c t i v i t i e s 10 , 2 8 5 , 1 7 7 1 , 8 3 7 , 0 6 9 6 1 0 , 1 7 7 1 3 0 , 1 9 6 (7, 7 0 7 , 7 3 5 ) 0(7,707,735)(7,578,208) Bu s i n e s s - t yp e A c t i v i t i e s : Ut i l i t y 7, 3 2 5 , 2 5 1 8 , 1 4 6 , 9 8 8 0 2 7 9 , 2 0 8 0 1 , 1 0 0 , 9 4 5 1 , 1 0 0 , 9 4 5 6 2 4 , 8 8 8 St o r m w a t e r 1, 1 4 3 , 2 0 4 8 5 4 , 8 1 2 0 0 0 (28 8 , 3 9 2 )(288,392)(482,700) Sa n i t a t i o n 1, 5 0 3 , 6 3 5 1 , 7 9 8 , 5 1 2 0 0 0 2 9 4 , 8 7 7 2 9 4 , 8 7 7 2 1 4 , 7 4 1 Bu i l d i n g C o d e E n f o r c e m e n t 26 0 , 8 8 5 2 7 0 , 4 1 5 0 0 0 9, 5 3 0 9,53013,140 To t a l B u s i n e s s - t yp e A c t i v i t i e s 10 , 2 3 2 , 9 7 5 1 1 , 0 7 0 , 7 2 7 0 27 9 , 2 0 8 0 1 , 1 1 6 , 9 6 0 1 , 1 1 6 , 9 6 0 3 7 0 , 0 6 9 To t a l P r i m a r y G o v e r n m e n t 20 , 5 1 8 , 1 5 2 $ 1 2 , 9 0 7 , 7 9 6 $ 6 1 0 , 1 7 7 $ 4 0 9 , 4 0 4 $ (7, 7 0 7 , 7 3 5 ) 1, 1 1 6 , 9 6 0 (6,590,775)(7,208,139) Ge n e r a l R e v e n u e s Pr o per t y T a x e s 3, 8 4 3 , 7 5 5 0 3 , 8 4 3 , 7 5 5 3 , 9 6 1 , 3 9 5 Sa l e s T a x e s 1, 1 5 6 , 1 2 9 0 1 , 1 5 6 , 1 2 9 1 , 0 8 0 , 0 0 6 Bu s i n e s s a n d U t i l i t y T a x e s 1, 1 9 7 , 3 3 7 0 1 , 1 9 7 , 3 3 7 1 , 1 2 4 , 1 5 1 St a t e R e v e n u e S h a r i n g 28 3 , 1 2 1 0283,121278,547 Di s c r e t i o n a r y S a l e s S u r t a x 68 4 , 1 8 7 0 6 8 4 , 1 8 7 6 4 8 , 2 5 8 In v e s t m e n t E a r n i n gs (Lo s s ) (20 1 , 3 2 7 )( 14 6 , 1 1 4 )(347,441)593,067 Mi s c e l l a n e o u s 40 3 , 0 6 9 0 4 0 3 , 0 6 9 3 2 , 1 3 1 Ga i n o n S a l e o f F i x e d A s s e t s 0 0 0 0 Tr a n s f e r s 61 4 , 7 5 8 ( 6 1 4 , 7 5 8 ) 00 To t a l G e n e r a l R e v e n u e s , S pec i a l I t e m , an d T r a n s f e r s 7, 9 8 1 , 0 2 9 (76 0 , 8 7 2 )7,220,1577,717,555 Ch a n g e i n N e t A s s e t s 27 3 , 2 9 4 3 5 6 , 0 8 8 6 2 9 , 3 8 2 5 0 9 , 4 1 6 Ne t P o s i t i o n , B e g i n n i n g o f Y e a r 48 , 5 8 1 , 0 0 9 2 5 , 4 6 7 , 5 5 4 7 4 , 0 4 8 , 5 6 3 7 3 , 5 3 9 , 1 4 7 Ne t P o s i t i o n , E n d o f Y e a r 48 , 8 5 4 , 3 0 3 $ 25 , 8 2 3 , 6 4 2 $ 74,677,945$74,048,563$ CI T Y O F A T L A N T I C B E A C H , F L O R I D A ST A T E M E N T O F A C T I V I T I E S FO R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 3 , WI T H C O M P A R A T I V E T O T A L S F O R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 2 Pr i m a r y G o v e r n m e n t 20 1 3 Pr o g r a m R e v e n u e s N e t ( E x p e n s e ) R e v e n u e a n d C h a n g e s i n N e t A s s e t s DR A F T See accompanying notes. 3 NonmajorTotals GovernmentalGovernmental2012 GeneralFundsFundsTotals Assets Equity in Pooled Cash and Investments6,178,222$3,477,902$9,656,124$9,214,353$ Receivables - Net 116,693 0116,6937,523 Due from Other Funds 9,097 0 9,097213,265 Due from Other Governments 641,289229,862871,1511,054,659 Inventories 26,098 026,09835,566 Notes Receivable - Current 760 0 760 760 Prepaid Items 178,578 0178,57834,871 Notes Receivable - Noncurrent 1,520 0 1,5202,280 Total Assets 7,152,2573,707,76410,860,02110,563,277 Liabilities and Fund Balances Liabilities Accounts Payable and Accrued Liabilities 564,52357,487622,010662,115 Due to Other Funds 0 9,097 9,097213,265 Deposits 2,750 7,166 9,9168,090 Deferred Revenue 7,302 0 7,302192,090 Total Liabilities 574,57573,750648,3251,075,560 Fund Balances Nonspendable: Inventories 26,098 026,09835,566 Prepaids 178,578 0178,57834,871 Restricted for: Public Safety 28,720139,247167,967178,300 Road Maintenance and Construction 092,25492,254123,526 Parks and Recreation 0 0 01,194 Debt Service Reserve 073,11373,11375,350 Other Capital Projects 03,214,1663,214,1662,982,216 Other Purposes 0108,741108,74152,732 Committed to: Conservation and Resource Management 0 6,493 6,4936,493 Assigned to: Re-establishment of Fire Department 300,000 0300,000300,000 Operating Reserves 2,598,195 02,598,1952,619,256 Unassigned 3,446,091 03,446,0913,078,213 Total Fund Balances 6,577,6823,634,01410,211,6969,487,717 Total Liabilities and Fund Balances 7,152,257$3,707,764$10,860,021$10,563,277$ 2013 CITY OF ATLANTIC BEACH, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2013, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2012 DRAFT See accompanying notes. 4 Total Fund Balances of Governmental Funds 10,211,696$9,487,717$ Amounts Reported for Governmental Activities in the Statement of Net Assets are Different Because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds: Total Capital Assets 57,504,590$56,803,027$ (Accumulated Depreciation)(18,093,554)(17,016,814) 39,411,036 39,786,213 Nonexchange receivables that do not provide current financial resources and, therefore, are not reported revenues in the funds.0 156,857 Long-term liabilities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. Interest on long-term debt is not accrued in the governmental funds, but rather is recognized as an expenditure when due. Certain prepayments are not current financial resources, and are not reported in the funds. All liabilities both current and long-term, are reported in the statement of net position. Long-term liabilities (assets) at year-end consist of: Revenue Bonds Payable 69,203 136,915 Compensated Absences 564,800 598,925 Net Pension Asset (2,271)0 Other Postemployment Benefits Obligation 135,726 112,021 Accrued Interest Payable 971 1,917 (768,429)(849,778) Total Net Position of Governmental Activities 48,854,303$48,581,009$ 2013 2012 CITY OF ATLANTIC BEACH, FLORIDA RECONCILIATION OF BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2013, WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2012 DRAFT See accompanying notes. 5 NonmajorTotals GovernmentalGovernmental2012 GeneralFunds Funds Totals Revenues Property Taxes 3,843,755$0$3,843,755$3,961,395$ Nonproperty Taxes 1,197,3361,197,7092,395,0452,277,222 Permits, Fees and Special Assessments 830,708 0830,708858,634 Intergovernmental Revenues 1,567,425275,1121,842,5372,079,732 Fines and Forfeitures 224,75830,355255,113118,181 Charges for Services 725,294 310725,604707,835 Investment Earnings (Loss)(128,430)(72,897)(201,327)345,009 Miscellaneous Revenues 409,135 0409,13543,770 Interfund Charges 1,435,569 01,435,5691,556,765 Total Revenues 10,105,5501,430,58911,536,13911,948,543 Expenditures Current: General Government 2,877,855 02,877,8552,983,158 Public Safety 4,841,216110,1044,951,3204,849,156 Road Maintenance and Construction 1,420,481305,6071,726,0881,792,000 Parks and Recreation 1,031,424 01,031,4241,128,617 Debt Service: Principal 067,71267,71263,684 Interest and Other 0 4,316 4,316 7,100 Capital Outlay 546,352221,851768,203833,587 (Total Expenditures)(10,717,328)(709,590)(11,426,918)(11,657,302) (Deficiency) Excess of Revenues (Under) Over Expenditures (611,778)720,999109,221291,241 Other Financing Sources (Uses) Transfers in 975,45471,0001,046,4541,404,982 Transfers (out)(31,000)(400,696)(431,696)(915,934) Sale of General Fixed Assets 0 0 025,649 Total Other Financing (Uses)944,454(329,696)614,758514,697 Net Change in Fund Balances 332,676391,303723,979805,938 Fund Balances, Beginning of Year 6,245,0063,242,7119,487,7178,681,779 Fund Balances, End of Year 6,577,682$3,634,014$10,211,696$9,487,717$ 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012 CITY OF ATLANTIC BEACH, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2013, DRAFT See accompanying notes. 6 Net Change in Fund Balances - Total Governmental Funds 723,979$805,938$ Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Governmental funds report capital purchases as expenditures. However, in the statement of activities, the cost of those assets is depreciated over their estimated useful lives and reported as depreciation expense: Expenditures for Capital Assets 768,203$833,588$ (Current Year Depreciation)(1,139,045)(1,145,847) (370,842)(312,259) Certain nonexchange revenues reported in the statement of activities are not considered current financial resources and, therefore, are not reported as revenue in the governmental funds.(156,857)153,927 Certain nonexchange revenues reported in the governmental funds are not reported in the statement of activities due to the revenues being earned in prior years.0 0 Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets.67,712 63,684 Governmental funds report sale of general fixed assets as financial resources. The gain or loss on disposal of general fixed assets is not reflected in the governmental funds: Proceeds from Sale of General Fixed Assets (Loss)0 (25,649) or Gain on Disposal of General Fixed Assets (4,335)(362,498) (4,335)(388,147) Some expenses/revenues reported in the statement of activities do not require the use of or provide current financial resources and, therefore, are not reported as expenditures in governmental funds: Transfer of Capital Assets 0 (173,922) Debt Interest Expense 946 899 Compensated Absences 34,125 89,485 Net Pension Asset 2,271 0 Other Postemployment Benefits Obligation (23,705)(33,189)13,637 (116,727) Change in Net Position - Governmental Activities 273,294$206,416$ CITY OF ATLANTIC BEACH, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 2013 2012 TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2013, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012 DRAFT Se e a c c o m p a n y i n g n o t e s . 7 Bu i l d i n g C o d e 2012 Ut i l i t y S t o r m w a t e r S a n i t a t i o n E n f o r c e m e n t T o t a l s T o t a l s As s e t s Cu r r e n t A s s e t s : Eq u i t y i n P o o l e d C a s h a n d I n v e s t m e n t s 3, 2 6 5 , 4 3 7 $ 1, 4 4 5 , 7 4 8 $ 67 9 , 4 6 0 $ 11 5 , 5 9 3 $ 5, 5 0 6 , 2 3 8 $ 5,865,638$ Ac c o u n t s R e c e i v a b l e - N e t 50 8 , 7 0 7 4 0 , 2 4 2 6 6 , 7 5 0 0 6 1 5 , 6 9 9 6 1 3 , 8 5 6 Due f rom O ther G overnments 00 0 0 0 0 Inventories 62,8760 0 0 6 2,87644,683 No t e s R e c e i v a b l e - C u r r e n t 15 , 7 5 90 0 0 1 5,75910,709 Pr e p a i d I t e m s 15 5 , 7 2 3 2 5 , 4 2 4 0 0 1 8 1 , 1 4 7 0 Re s t r i c t e d A s s e t s : Eq u i t y i n P o o l e d C a s h a n d C a s h E q u i v a l e n t s 2, 3 7 3 , 5 0 8 1 7 0 , 6 9 9 0 0 2 , 5 4 4 , 2 0 7 2 , 6 4 9 , 2 8 9 Ca p i t a l A s s e t s : La n d 74 9 , 4 9 9 9 0 6 , 5 1 9 0 0 1 , 6 5 6 , 0 1 8 1 , 6 5 6 , 0 1 8 Bu i l d i n g s 4, 3 5 6 , 3 8 4 0 0 0 4 , 3 5 6 , 3 8 4 4 , 3 5 6 , 3 8 4 Im p r o v e m e n t s O t h e r T h a n B u i l d i n g s 60 , 8 6 0 , 2 0 3 1 6 , 2 0 1 , 5 4 6 0 0 7 7 , 0 6 1 , 7 4 9 7 6 , 3 2 8 , 8 4 2 Eq u i p m e n t 1, 5 4 7 , 1 2 5 2 5 3 , 4 8 3 18 5 , 3 7 7 3 7 , 5 0 0 2 , 0 2 3 , 4 8 5 1 , 8 4 3 , 1 6 1 In t a n g i b l e s - E a s e m e n t s a n d C o m p u t e r S o f t w a r e 22 6 , 3 9 4 00 18 , 3 1 5 2 4 4 , 7 0 9 2 4 4 , 7 0 9 (A c c u m u l a t e d D e p r e c i a t i o n a n d A m o r t i z a t i o n ) ( 36 , 4 9 6 , 9 9 8 ) ( 7 , 7 1 9 , 3 6 9 ) ( 1 7 5 , 1 0 2 ) ( 55 , 8 1 5 ) ( 4 4 , 4 4 7 , 2 8 4 ) ( 4 2 , 1 3 2 , 7 8 4 ) Co n s t r u c t i o n i n P r o g r e s s 13 7 , 8 1 7 4 6 , 8 5 4 0 0 1 8 4 , 6 7 1 1 1 5 , 6 8 2 No t e s R e c e i v a b l e - N o n c u r r e n t 13 3 , 4 4 60 0 0 13 3 , 4 4 6 8 3 , 0 2 6 Un a m o r t i z e d L o a n C o s t s 15 3 , 6 3 6 2 2 , 2 7 7 0 0 1 7 5 , 9 1 3 1 9 0 , 4 0 5 To t a l A s s e t s 38 , 0 4 9 , 5 1 6 $ 11 , 3 9 3 , 4 2 3 $ 75 6 , 4 8 5 $ 11 5 , 5 9 3 $ 50 , 3 1 5 , 0 1 7 $ 51,869,618$ 20 1 3 WI T H C O M P A R A T I V E T O T A L S F O R S E P T E M B E R 3 0 , 2 0 1 2 CI T Y O F A T L A N T I C B E A C H , F L O R I D A ST A T E M E N T O F N E T P O S I T I O N PR O P R I E T A R Y F U N D S SE P T E M B E R 3 0 , 2 0 1 3 , Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d s DR A F T Se e a c c o m p a n y i n g n o t e s . 8 Bu i l d i n g C o d e 2012 Ut i l i t y S t o r m w a t e r S a n i t a t i o n E n f o r c e m e n t T o t a l s T o t a l s Li a b i l i t i e s Cu r r e n t L i a b i l i t i e s P a y a b l e f r o m C u r r e n t As s e t s : Ac c o u n t s P a yab l e a n d O t h e r C u rr e n t L i a b il i t i e s 29 5 , 0 7 9 $ 3 2 , 3 8 3 $ 1 0 4 , 2 2 8 $ 6 , 3 4 5 $ 4 3 8 , 0 3 5 $ 5 9 5 , 9 4 2 $ Construction R e t a i n a g e s P a y a b l e 0 0 0 0 0 385,117 Du e t o O t h e r G o v e r n m e n t s 6 , 9 2 6 0 0 2 , 4 5 8 9 , 3 8 4 7 , 1 4 1 De f e r r e d R e v e n u e 9 1 , 2 2 5 2 8 , 8 5 5 6 2 , 3 6 4 0 1 8 2 , 4 4 4 2 0 3 , 2 4 3 Co m p e n s a t e d A b s e n c e s - C u r r e n t 7 2 , 0 6 9 1 , 6 9 7 0 7 , 7 3 3 8 1 , 4 9 9 1 2 6 , 0 0 0 Cu r r e n t L i a b i l i t i e s P a y a b l e f r o m R e s t r i c t e d As s e t s : Cu r r e n t P o r t i o n o f B o n d s P a ya b l e 92 3 , 1 1 4 1 2 7 , 8 7 8 0 0 1 , 0 5 0 , 9 9 2 1 , 0 1 2 , 7 6 7 Cu r r e n t P o r t i o n o f L o a n s P a y a b l e 16 4 , 4 7 5 0 0 0 1 6 4 , 4 7 5 4 5 7 , 4 9 2 Ac c r u e d I n t e r e s t P a y a b l e 38 0 , 5 5 1 4 2 , 8 2 1 0 0 4 2 3 , 3 7 2 4 3 9 , 4 2 0 Cu s t o m e r D e p o s i t s 57 3 , 8 7 9 0 0 0 5 7 3 , 8 7 9 5 1 8 , 6 5 3 No n c u r r e n t L i a b i l i t i e s : Du e i n M o r e T h a n O n e Y e a r 19 , 5 3 6 , 8 9 7 1 , 8 0 6 , 7 3 6 0 0 2 1 , 3 4 3 , 6 3 3 2 2 , 4 5 6 , 4 4 6 Co m p e n s a t e d A b s e n c e s - N o n c u r r e n t 16 2 , 5 2 9 82 7 0 1 6 , 2 3 4 1 7 9 , 5 9 0 1 6 3 , 5 0 1 Ot h e r P o s t e m p l o y m e n t B e n e f i t s O b l i g a t i o n 29 , 3 1 4 8, 8 5 6 0 5, 9 0 2 4 4 , 0 7 2 3 6 , 3 4 2 To t a l L i a b i l i t i e s 22 , 2 3 6 , 0 5 8 2 , 0 5 0 , 0 5 3 1 6 6 , 5 9 2 3 8 , 6 7 2 2 4 , 4 9 1 , 3 7 5 2 6 , 4 0 2 , 0 6 4 Ne t P o s i t i o n Ne t I n v e s t m e n t i n C a p i t a l A s s e ts 10 , 9 0 9 , 5 7 4 7 , 7 7 6 , 6 9 6 1 0 , 2 7 5 0 1 8 , 6 9 6 , 5 4 5 1 8 , 2 9 0 , 5 9 0 Re s t r i c t e d f o r : Re n e w a l a n d R e p l a c e m e n t 50 0 , 0 0 0 0 0 0 5 0 0 , 0 0 0 5 0 0 , 0 0 0 De b t S e r v i c e 1, 0 7 3 , 1 8 4 1 2 7 , 8 7 8 0 0 1 , 2 0 1 , 0 6 2 1 , 1 7 3 , 8 5 8 Other C apital P rojects 00 0 0 0 0 Bu i l d i n g C o d e E n f o r c e m e n t 0 0 0 7 6 , 9 2 1 7 6 , 9 2 1 3 8 , 4 6 3 Un r e s t r i c t e d 3, 3 3 0 , 7 0 0 1 , 4 3 8 , 79 6 5 7 9 , 6 1 8 0 5 , 3 4 9 , 1 1 4 5 , 4 6 4 , 6 4 3 To t a l N e t P o s i t i o n 15 , 8 1 3 , 4 5 8 $ 9, 3 4 3 , 3 7 0 $ 58 9 , 8 9 3 $ 76 , 9 2 1 $ 25 , 8 2 3 , 6 4 2 $ 25,467,554$ Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d s (C o n c l u d e d ) SE P T E M B E R 3 0 , 2 0 1 3 , WI T H C O M P A R A T I V E T O T A L S F O R S E P T E M B E R 3 0 , 2 0 1 2 20 1 3 ST A T E M E N T O F N E T P O S I T I O N PR O P R I E T A R Y F U N D S CI T Y O F A T L A N T I C B E A C H , F L O R I D A DR A F T Se e a c c o m p a n y i n g n o t e s . 9 Bu i l d i n g C o d e 2012 Ut i l i t y St o r m w a t e r S a n i t a t i o n E n f o r c e m e n t T o t a l s T o t a l s Oper a t i n g R e v e n u e s Ch a r ges f o r S e r v i c e s : Cu s t o m e r C h a r ges 7, 9 5 1 , 8 7 6 $ 85 4 , 8 1 2 $ 1, 7 4 6 , 0 8 5 $ 27 0 , 4 1 5 $ 10 , 8 2 3 , 1 8 8 $ 10,777,484$ Fr a n c h i s e P e r m i t s 0 0 3, 0 0 0 0 3,0007,500 Mi s c e l l a n e o u s R e v e n u e s 19 5 , 1 1 2 0 0 0 1 9 5 , 1 1 2 4 8 , 9 5 5 To t a l O per a t i n g R e v e n u e s 8, 1 4 6 , 9 8 8 8 5 4 , 8 1 2 1 , 7 4 9 , 0 8 5 2 7 0 , 4 1 5 1 1 , 0 2 1 , 3 0 0 1 0 , 8 3 3 , 9 3 9 Op e r a t i n g E x p e n s e s Pe r s o n a l S e r v i c e s 1 , 7 6 1 , 8 0 6 20 6 , 5 4 8 1 8 , 1 8 6 2 2 0 , 4 5 8 2 , 2 0 6 , 9 9 8 2 , 2 6 6 , 0 8 7 Co n t r a c t u a l S e r v i c e s 6 5 4 , 6 0 0 1 3 4 , 07 4 1 , 3 0 4 , 3 3 9 1 , 2 6 2 2 , 0 9 4 , 2 7 5 2 , 2 9 9 , 6 6 8 Su pp li e s 33 3 , 3 8 7 2 5 , 4 0 9 0 3, 7 9 0 3 6 2 , 5 8 6 3 5 6 , 4 8 8 Re pai r s a n d M a i n t e n a n c e 10 1 , 9 2 9 1 8 , 4 0 2 6, 4 3 5 7, 0 1 4 1 3 3 , 7 8 0 1 5 7 , 6 7 7 Ut i l i t i e s 38 2 , 69 4 0 0 0 3 8 2 , 6 9 4 6 2 9 , 1 8 5 De pre c i a t i o n 1, 8 3 7 , 3 1 1 4 6 3 , 4 7 3 15 , 2 2 0 70 2 , 3 1 6 , 0 7 4 2 , 3 5 6 , 9 6 5 In t e r gov e r n m e n t a l C h a r ges 98 2 , 2 9 2 1 6 6 , 5 9 5 1 6 2 , 6 1 8 2 3 , 3 6 9 1 , 3 3 4 , 8 7 4 1 , 4 4 2 , 1 7 7 Ot h e r E x pen s e s 21 3 , 7 1 0 2 7 , 1 7 3 (3, 1 6 3 ) 4, 9 2 2 2 4 2 , 6 4 2 2 5 2 , 3 9 9 (T o t a l O p e r a t i n g E x p e n s e s ) (6 , 2 6 7 , 7 2 9 ) ( 1 , 0 4 1 , 6 7 4 ) ( 1 , 5 0 3 , 6 3 5 ) ( 2 6 0 , 8 8 5 ) ( 9 , 0 7 3 , 9 2 3 ) ( 9 , 7 6 0 , 6 4 6 ) Op e r a t i n g I n c o m e ( L o s s ) 1, 8 7 9 , 2 5 9 ( 1 8 6 , 8 6 2 ) 2 4 5 , 4 5 0 9, 5 3 0 1 , 9 4 7 , 3 7 7 1 , 0 7 3 , 2 9 3 No n o p e r a t i n g R e v e n u e s ( E x p e n s e s ) Co n n e c t i o n C h a r ges 8,5300 0 0 8 ,5307,064 Fr a n c h i s e F e e s 0 0 4 9 , 4 2 7 0 4 9 , 4 2 7 2 5 , 6 8 1 In t e r gov e r n m e n t a l R e v e n u e (Ex pen s e ) 00 0 0 0 0 In v e s t m e n t E a r n i n gs (Lo s s )( 97 , 2 9 4 )( 32 , 6 9 7 )( 13 , 9 8 1 )( 2, 1 4 2 )(146,114)248,057 In t e r e s t E x pen s e (89 6 , 5 7 1 )( 99 , 6 2 8 ) 00 (996,199)(881,739) Ga i n (Lo s s ) o n D i s posal o f F ixed A ssets 1 ,6010 0 0 1 ,6012,077 Am o r t i z a t i o n o f L o a n C o s t s (16 2 , 5 5 2 )( 1, 9 0 2 ) 00 (164,454)(14,654) To t a l N o n o p e r a t i n g Re v e n u e s ( E x p e n s e s ) (1 , 1 4 6 , 2 8 6 ) ( 1 3 4 , 2 2 7 ) 3 5 , 4 4 6 ( 2 ,1 4 2 ) ( 1 , 2 4 7 , 2 0 9 ) ( 6 1 3 , 5 1 4 ) FO R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 3 , CI T Y O F A T L A N T I C B E A C H , F L O R I D A ST A T E M E N T O F R E V E N U E S , E X P E N S E S , A N D CH A N G E S I N N E T P O S I T I O N PR O P R I E T A R Y F U N D S 20 1 3 Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d s WI T H C O M P A R A T I V E T O T A L S F O R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 2 DR A F T Se e a c c o m p a n y i n g n o t e s . 10 Bu i l d i n g C o d e 2012 Ut i l i t y S t o r m w a t e r S a n i t a t i o n E n f o r c e m e n t T o t a l s T o t a l s In c o m e ( L o s s ) B e f o r e C o n t r i b u t i o n s a n d T r a n s f e r s 73 2 , 9 7 3 $ (3 2 1 , 0 8 9 ) $ 28 0 , 8 9 6 $ 7, 3 8 8 $ 700,168 $ 459,779$ Ca p i t a l C o n t r i b u t i o n s a n d G r a n t s an d T r a n s f e r s Ca p i t a l C o n t r i b u t i o n s a n d G r a n t s 27 0 , 6 7 8 0 0 0 2 7 0 , 6 7 8 1 5 8 , 3 4 7 Tr a n s f e r s i n 0 2 5 2 , 0 0 0 0 3 1 , 0 0 0 2 8 3 , 0 0 0 5 6 4 , 6 9 5 Tr a n s f e r s ( o u t ) (6 2 9 , 8 6 0 ) 0 ( 2 6 7 , 8 9 8 ) 0 ( 8 9 7 , 7 5 8 ) ( 8 7 9 , 8 2 1 ) To t a l C a p i t a l C o n t r i b u t i o n s a n d G r a n t s an d T r a n s f e r s (3 5 9 , 1 8 2 ) 2 5 2 , 0 0 0 ( 2 6 7 , 8 9 8 ) 3 1 , 0 0 0 ( 3 4 4 , 0 8 0 ) ( 1 5 6 , 7 7 9 ) Ch a n g e i n N e t P o s i t i o n 37 3 , 7 9 1 ( 6 9 , 0 8 9 ) 1 2 , 9 9 8 3 8 , 3 8 8 3 5 6 , 0 8 8 3 0 3 , 0 0 0 Ne t P o s i t i o n , B e g i n n i n g o f Y e a r 15 , 4 3 9 , 6 6 7 9 , 4 1 2 , 4 5 9 5 7 6 , 8 9 5 3 8 , 5 3 3 2 5 , 4 6 7 , 5 5 4 2 5 , 1 6 4 , 5 5 4 Ne t P o s i t i o n , E n d o f Y e a r 15 , 8 1 3 , 4 5 8 $ 9, 3 4 3 , 3 7 0 $ 58 9 , 8 9 3 $ 76 , 9 2 1 $ 25 , 8 2 3 , 6 4 2 $ 25,467,554$ 20 1 3 WI T H C O M P A R A T I V E T O T A L S F O R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 2 FO R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 3 , ST A T E M E N T O F R E V E N U E S , E X P E N S E S , A N D CI T Y O F A T L A N T I C B E A C H , F L O R I D A Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d s (C o n c l u d e d ) CH A N G E S I N N E T P O S I T I O N PR O P R I E T A R Y F U N D S DR A F T Se e a c c o m p a n y i n g n o t e s . 11 Bu i l d i n g C o d e 2012 Ut i l i t y S t o r m w a t e r S a n i t a t i o n E n f o r c e m e n t T o t a l s Totals Ca s h F l o w s f r o m O p er a t i n g A c t i v i t i e s Ca s h R e c e i v e d f r o m C u s t o m e r s 7, 9 6 1 , 4 5 8 $ 86 0 , 2 6 5 $ 1, 7 5 3 , 7 6 8 $ 27 0 , 4 1 5 $ 10 , 8 4 5 , 9 0 6 $ 10,947,884$ Ca s h P a i d t o S u p p l i e r s (2 , 4 1 7 , 7 7 5 ) ( 21 0 , 9 7 7 ) ( 1 , 3 0 6 , 8 8 9 ) ( 1 6 , 5 3 3 ) (3 , 9 5 2 , 1 7 4 ) ( 3 , 7 8 7 , 8 4 5 ) Ca s h P a i d t o E m p l o y e e s (1 , 7 8 4 , 0 5 5 ) ( 20 4 , 5 8 1 ) ( 1 8 , 1 8 6 ) ( 2 2 0 , 8 5 8 ) ( 2 , 2 2 7 , 6 8 0 ) ( 2 , 2 5 9 , 9 1 8 ) Ca s h P a i d f o r I n t e r f u n d S e r v i c e s (9 8 2 , 29 2 ) ( 1 6 6 , 5 9 5 ) ( 1 6 2 , 6 1 8 ) ( 2 3 , 36 9 ) ( 1 , 3 3 4 , 8 7 4 ) ( 1 , 4 4 2 , 1 7 7 ) Ne t C a s h P r o v i d e d b y ( U s e d i n ) O p e r a t i n g Ac t i v i t i e s 2, 7 7 7 , 3 3 6 2 7 8 , 1 1 2 2 6 6 , 0 7 5 9, 6 5 5 3 , 3 3 1 , 1 7 8 3 , 4 5 7 , 9 4 4 Ca s h F l o w s f r o m N o n c a p i t a l F i n a n c i n g Ac t i v i t i e s Co n n e c t i o n C h a r g e s 8, 5 3 0 0 49 , 4 2 7 0 57,9577,064 Fr a n c h i s e F e e s 0 0 0 0 025,681 Tr a n s f e r s i n 0 2 5 2 , 0 0 0 0 31 , 0 0 0 2 8 3 , 0 0 0 3 9 0 , 7 7 3 Tr a n s f e r s ( o u t ) (6 2 9 , 8 6 0 ) 0 ( 2 6 7 , 8 9 8 ) 0 ( 8 9 7 , 7 5 8 ) ( 8 7 9 , 8 2 1 ) Ne t C a s h P r o v i d e d b y ( U s e d i n ) N o n c a p i t a l Fi n a n c i n g A c t i v i t i e s (6 2 1 , 3 3 0 ) 2 5 2 , 0 0 0 ( 2 1 8 , 4 7 1 ) 3 1 , 0 0 0 ( 5 5 6 , 8 0 1 ) ( 4 5 6 , 3 0 3 ) Ca p i t a l a n d R e l a t e d F i n a n c i n g A c t i v i t i e s Ca p i t a l G r a n t s 27 0 , 6 7 80 0 0 270,678158,347 Pr o c e e d s f r o m L o a n 0 0 0 0 05,332,349 Fi x e d A s s e t A d d i t i o n s (9 3 1 , 6 7 3 ) (4 6 , 8 5 6 ) ( 4 , 5 0 0 ) 0 ( 9 8 3 , 0 2 9 ) ( 6 , 0 1 7 , 8 2 2 ) Pr i n c i p a l P a y m e n t s o n L o n g - t e r m De b t (1 , 3 4 5 , 9 0 6 ) ( 1 2 3 , 0 3 9 ) 0 0 ( 1 , 4 6 8 , 9 4 5 ) ( 9 8 5 , 9 7 1 ) In t e r e s t P a i d (8 2 3 , 2 3 0 ) ( 8 7 , 7 3 2 ) 0 0 ( 9 1 0 , 9 6 2 ) ( 7 2 9 , 6 0 6 ) Ne t C a s h P r o v i d e d b y ( U s e d i n ) C a p i t a l an d R e l a t e d F i n a n c i n g A c t i v i t i e s (2 , 8 3 0 , 1 3 1 ) ( 2 5 7 , 6 2 7 ) ( 4 , 5 0 0 ) 0 ( 3 , 0 9 2 , 2 5 8 ) ( 2 , 2 4 2 , 7 0 3 ) Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d s CI T Y O F A T L A N T I C B E A C H , F L O R I D A ST A T E M E N T O F C A S H F L O W S PR O P R I E T A R Y F U N D S FO R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 3 , WI T H C O M P A R A T I V E T O T A L S F O R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 2 20 1 3 DR A F T Se e a c c o m p a n y i n g n o t e s . 12 Bu i l d i n g C o d e 2012 Ut i l i t y S t o r m w a t e r S a n i t a t i o n E n f o r c e m e n t T o t a l s T o t a l s Ca s h F l o w s f r o m I n v e s t i n g A c t i v i t i e s Sa l e ( P u r c h a s e ) o f I n v e s t m e n t s 61 5 , 8 7 2 $ (1 7 4 , 2 8 6 ) $ (1 8 , 7 0 8 ) $ (2 8 , 3 5 5 ) $ 394,523 $ (4,477,408)$ In t e r e s t R e c e i v e d (9 7 , 2 9 4 ) ( 3 2 , 69 7 ) ( 1 3 , 9 8 1 ) ( 2 , 6 2 9 ) ( 1 4 6 , 6 0 1 ) 2 4 8 , 8 8 8 Ne t C a s h P r o v i d e d b y ( U s e d i n ) In v e s t i n g A c t i v i t i e s 51 8 , 5 7 8 ( 2 0 6 , 9 8 3 ) ( 3 2 , 6 8 9 ) ( 3 0 , 9 8 4 ) 2 4 7 , 9 2 2 ( 4 , 2 2 8 , 5 2 0 ) Ne t I n c r e a s e ( D e c r e a s e ) i n C a s h a n d Ca s h E q u i v a l e n t s (1 5 5 , 5 4 7 ) 6 5 , 5 0 2 1 0 , 4 1 5 9, 6 7 1 ( 6 9 , 9 5 9 ) ( 3 , 4 6 9 , 5 8 2 ) Ca s h a n d C a s h E q u i v a l e n t s , B e g i n n i n g o f Y e a r 1, 5 3 1 , 1 0 7 3 2 8 , 8 1 3 1 5 5 , 3 3 2 1 8 , 5 2 7 2 , 0 3 3 , 7 7 9 5 , 5 0 3 , 3 6 1 Ca s h a n d C a s h E q u i v a l e n t s , E n d o f Y e a r 1, 3 7 5 , 5 6 0 $ 39 4 , 3 1 5 $ 16 5 , 7 4 7 $ 28 , 1 9 8 $ 1,963,820 $ 2,033,779$ Re c o n c i l i a t i o n o f O p e r a t i n g I n c o m e ( L o s s ) t o Ne t C a s h P r o v i d e d b y ( U s e d i n ) O p e r a t i n g Ac t i v i t i e s Op e r a t i n g I n c o m e ( L o s s ) 1, 8 7 9 , 2 5 9 $ (1 8 6 , 8 6 2 ) $ 24 5 , 4 5 0 $ 9, 5 3 0 $ 1,947,377 $ 1,073,362$ Ad j u s t m e n t s t o R e c o n c i l e O p e r a t i n g In c o m e ( L o s s ) t o N e t C a s h P r o v i d e d b y (U s e d i n ) O p e r a t i n g A c t i v i t i e s : De p r e c i a t i o n 1, 8 3 7 , 3 1 1 4 6 3 , 47 3 1 5 , 2 2 0 70 2 , 3 1 6 , 0 7 4 2 , 3 5 6 , 8 9 6 Ch a n g e i n A s s e t s a n d L i a b i l i t i e s : Ac c o u n t s R e c e i v a b l e (6 7 , 0 0 1 ) 5, 4 2 1 4, 2 6 7 0 ( 5 7 , 3 1 3 ) 7 5 , 0 3 6 In v e n t o r y (1 8 , 1 9 3 ) 0 0 0 ( 1 8 , 1 9 3 ) 1,508 Pr e p a i d s (1 5 5 , 7 2 3 ) ( 2 5 , 4 2 4 ) 0 0 ( 1 8 1 , 1 4 7 ) 0 Co m p e n s a t e d A b s e n c e s (2 7 , 4 0 3 ) 42 2 0 (1 , 4 3 1 ) ( 2 8 , 4 1 2 ) 6,169 OP E B O b l i g a t i o n 5, 1 5 4 1, 5 4 5 0 1, 0 3 1 7,7300 Ac c o u n t s P a y a b l e a n d A c c r u e d L i ab i l i t i e s ( 7 1 3 , 26 2 ) 1 9 , 5 0 5 72 2 45 5 ( 6 9 2 , 5 8 0 ) ( 9 3 , 9 3 6 ) Customer D eposits 55,2260 0 0 5 5,226(796) De f e r r e d R e v e n u e (1 8 , 0 3 2 ) 32 41 6 0 ( 1 7 , 5 8 4 ) 3 9 , 7 0 5 Ne t C a s h P r o v i d e d b y ( U s e d i n ) O p e r a t i n g Ac t i v i t i e s 2, 7 7 7 , 3 3 6 $ 27 8 , 1 1 2 $ 26 6 , 0 7 5 $ 9, 6 5 5 $ 3,331,178 $ 3,457,944$ Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d s CI T Y O F A T L A N T I C B E A C H , F L O R I D A ST A T E M E N T O F C A S H F L O W S PR O P R I E T A R Y F U N D S FO R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 3 , (C o n t i n u e d ) 20 1 3 WI T H C O M P A R A T I V E T O T A L S F O R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 2 DR A F T Se e a c c o m p a n y i n g n o t e s . 13 Bu i l d i n g C o d e 2012 Ut i l i t y S t o r m w a t e r S a n i t a t i o n E n f o r c e m e n t T o t a l s T o t a l s Re c o n c i l i a t i o n o f C a s h a n d C a s h Eq u i v a l e n t s t o B a l a n c e S h e e t Eq u i t y i n P o o l e d C a s h a n d C a s h Eq u i v a l e n t s i n C u r r e n t A s s e t s 3, 2 6 5 , 4 3 7 $ 1, 4 4 5 , 7 4 8 $ 67 9 , 4 6 0 $ 11 5 , 5 9 3 $ 5,506,238 $ 5,865,638$ Re s t r i c t e d E q u i t y i n P o o l e d C a s h an d C a s h E q u i v a l e n t s 2, 3 7 3 , 5 0 8 1 7 0 , 6 9 9 0 0 2 , 5 4 4 , 2 0 7 2 , 6 4 9 , 2 8 9 Eq u i t y i n P o o l e d I n v e s t m e n t s (4 , 2 6 3 , 3 8 5 ) (1 , 2 2 2 , 1 3 2 ) ( 5 1 3 , 7 1 3 ) ( 8 7 , 3 9 5 ) ( 6 , 0 8 6 , 6 2 5 ) ( 6 , 4 8 1 , 1 4 8 ) To t a l C a s h a n d C a s h E q u i v a l e n t s 1, 3 7 5 , 5 6 0 $ 39 4 , 3 1 5 $ 16 5 , 7 4 7 $ 28 , 1 9 8 $ 1,963,820 $ 2,033,779$ No n c a s h A c t i v i t y No n c a s h T r a n s f e r s 0$0$0$0$0 $ (173,922)$ Am o r t i z a t i o n o f B o n d I s s u e C o s t s 12 , 6 4 6 1, 8 4 6 0 0 1 4 , 4 9 2 1 4 , 2 5 4 Am o r t i z a t i o n o f B o n d D i s c o u n t ( P r e m i u m ) 87 , 3 5 0 1 3 , 7 7 6 0 0 1 0 1 , 1 2 6 9 8 , 5 4 1 Am o r t i z a t i o n o f L o s s o n R e f u n d i n g 1, 2 8 2 21 0 0 0 1,4922,444 20 1 3 Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d s WI T H C O M P A R A T I V E T O T A L S F O R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 2 (C o n c l u d e d ) CI T Y O F A T L A N T I C B E A C H , F L O R I D A ST A T E M E N T O F C A S H F L O W S PR O P R I E T A R Y F U N D S FO R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 3 , DR A F T See accompanying notes. 14 2013 2012 Assets Cash and Cash Equivalents 130,743$86,828$ Prepaids 5,830 0 Interest Receivable 34,097 28,197 Investments at Fair Value 21,341,30419,832,927 Total Assets 21,511,97419,947,952 Liabilities Accounts Payable and Accrued Liabilities 900 424 Excess Premium Tax Liability 120,454 120,454 DROP Plan Payable 288,280 198,554 Total Liabilities 409,634 319,432 Total Net Position Held in Trust for Pension Benefits 21,102,340$19,628,520$ -- Pension Trust Funds WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2012 CITY OF ATLANTIC BEACH, FLORIDA STATEMENT OF NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2013, DRAFT See accompanying notes. 15 2013 2012 Additions Contributions: Employer 1,562,327$1,538,619$ Employees 258,156 261,992 State of Florida 91,077 88,795 Total Contributions 1,911,5601,889,406 Net (Decrease) Increase in Fair Value of Investments 729,1682,218,699 Interest and Dividends 420,837 443,921 Miscellaneous Revenue 58,206 0 Total Additions 3,119,7714,552,026 Deductions Refunds of Contributions 118,126 12,751 Benefits 1,381,3881,254,883 Investment Expenses 84,793 103,133 Administrative Expenses 61,644 57,614 Total Deductions 1,645,9511,428,381 Net Increase 1,473,8203,123,645 Net Position, Beginning of Year 19,628,52016,504,875 Net Position, End of Year 21,102,340$19,628,520$ Pension Trust Funds WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012 CITY OF ATLANTIC BEACH, FLORIDA STATEMENT OF CHANGES IN NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2013, DRAFT 16 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 1 - Summary of Significant Accounting Policies The accounting policies of the City of Atlantic Beach, Florida,(the City),conform to accounting principles generally accepted in the United States of America as applicable to governments. The following is a summary of the more significant policies used in the preparation of these financial statements. Reporting Entity The City was incorporated in 1957, under a charter in accordance with the laws of the State of Florida, Florida Statutes Section 57-1126. The City operates under a form of government which comprises an elected City Commission (four Commissioners and a Mayor- Commissioner) and provides, under the administration of an appointed City Manager, the following services: public safety, public works (streets and infrastructure), recreation, sanitation, stormwater, planning, zoning, water and sewer, and general government services. In accordance with the Codification of Governmental and Financial Reporting Standards, the financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable, and other organizations whose exclusions would cause the reporting entity’s financial statements to be misleading or incomplete. The Governmental AccountingStandards Board (GASB) has set forth criteria for consideration in determining financial accountability. These criteria include appointing a majority of an organization’s governing body and:(1) the ability of the City to impose its will on that organization; or, (2) the potential for that organization to provide specific benefits to or impose specific financial burdens on the City. Other considerations are whether the organization is legally separate, whether the City holds the corporate powers of the organization, and whether there is fiscal dependency by the organization on the City. Based upon the application of these criteria, the City has no component units. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment isoffset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Indirect costs are included in the program expense reported for individual functions and activities. Program revenues include: (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or activity; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Taxes and other items not properly included among program revenues are reported instead as general revenues. DRAFT 17 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) Government-wide and Fund Financial Statements (Concluded) Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. As a generalrule, the effect of interfund activity has been eliminated from the government-wide financial statements. The major exception to this general rule ischarges between the City’s water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenuesinclude: (1) charges to customers or applicants for goods, services, or privileges provided; (2) operating grants and contributions; and (3) capital grants and contributions, including special assessments. General revenues include all taxes. Net positionisreported as one of three categories: (1)Net Investment in Capital Assets;(2) Restricted; or (3) Unrestricted. Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within sixty days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, other postemployment benefits,and claims and judgments, are recorded only when payment is due. Taxes, intergovernmental revenue, licenses and permits, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. DRAFT 18 CITY OFATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) Fund Financial Statements (Concluded) The City reports the following major governmental fund: Ŷ The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The City reports the following major proprietary funds: Ŷ The Utility Fund accounts for the activities of the City’s water distribution and sewer collection and treatment systems. Ŷ The Sanitation Fund accounts for the activities of the City’s sanitation system. Ŷ The StormwaterFund accounts for the activities of the City’s stormwater system. Ŷ The Building Code Enforcement Fund accounts for the activities of the City’sBuilding Department. Additionally, the City reports the following fund types: Ŷ Special Revenue Funds—The special revenue funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Ŷ Debt Service Funds—The debt service fund is used to account for the accumulation of resources for, and the payment of, long-term general obligation debt principal, interest and related costs other than obligations payable from the operations of the proprietary funds. Ŷ Capital Projects Funds—The capital projects funds are used to account for the financial resources to be used for the acquisition or construction of major capital facilities and improvement projects (other than those financed by proprietary funds or special revenue funds). Ŷ Pension Trust Funds—These funds account for the activities of the Employees’ Retirement System, which accumulates resources for pension benefit payments to qualified police officers and general employees. Fund Balance Classification Fund Balance is reported in five components –nonspendable, restricted, committed, assigned and unassigned: DRAFT 19 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) Fund Balance Classification (Concluded) Ŷ Nonspendable Fund Balance—amounts that are not in spendable form (such as inventory) or are required to be maintained intact. Ŷ Restricted Fund Balance—amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation. Ŷ Committed Fund Balance—amounts constrained to specific purposes by the City itself, using its highest level of decision-making authority (i.e., ordinance passed by City Commission). To be reported as committed, amounts cannot be used for any other purpose unless the City takes the same highest level action to remove or change the constraint. Ŷ Assigned Fund Balance—amounts the City intends to use for a specific purpose. Intent can be expressed by the City Commission or by an official or body to which the City Commission delegates the authority. Ŷ Unassigned Fund Balance—amounts that are available for any purpose. Positive amounts are reported only in the General Fund. When both restricted and unrestricted resources are available for use, it is the City’s practice to use restricted resources first, then unrestricted resources as they are needed. When unrestricted resources (committed, assigned and unassigned) are available for use in any governmental fund, it is the City’s practice to use committed resources first, then assigned, and then unassigned as needed. The City Commission establishes (and modifies or rescinds) fund balance commitments by passage of an ordinance.This is typically done through adoption and amendment of the budget. A fund balance commitment is further indicated in the budget document as a designation or commitment of the fund. Assigned fund balance is established by City Commission through adoption or amendment of the budget as intended for specific purpose (such as the purchase of fixed assets, construction, debt service, or for other purposes). In the General Fund, the City strives to maintain a fund balance operating reserve to be used for unanticipated emergencies of approximately 25% of the subsequent year’s budgeted General Fund payroll and operating expenditures. Proprietary Funds Proprietary funds distinguish operating revenues and expenses from nonoperatingitems. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. DRAFT 20 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) Budgets General governmental revenueand expenditures accounted for in budgetary funds are controlled by a budgetary accounting system in accordance with various legal requirements which govern the City’s operations. Budgets are monitored at varying levels of classification detail; however,expenditures cannot legally exceed total appropriations at the individual fund level. Budgets are adopted for all governmental funds (general, special revenue, debt service and capital projects). The City Manager is authorized to transfer budgeted amounts within departments within any fund; however, any revisions that increase the total expenditures of any department or fund must be approved by the City Commission. All necessary supplemental appropriations are adopted by the City Commission and are included in the reported budgetary data. The budget presented in the accompanying required supplemental information is prepared in conformity with accounting principles generally accepted in the United States of America. Cash and Investments Except where prohibited, cash resources of the individual funds are combined to form a pool of cash and investments. Investment earnings and losseson the pooled cash and investments aredistributed to the appropriate funds based on the average monthly balance of investments in each fund. Investments are valued at fair market value (see Note 2). For the purposes of the statement of cash flows, the City’s proprietary funds consider cash and cash equivalentsto include cash and investments with an original maturity of three months or less. Receivables Receivables are recorded at their net realizable value. Interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Inventories Inventories consisting principally of expendable materials, supplies and fuel are determined by physical count at the City’s year-end on an annual basis and are valued at the lower of cost (first-in, first-out) or market. On the balance sheet - governmental funds, the inventory balance reported is considered nonspendablefund balance,which indicates that it does not constitute “available spendable resources” even though it is a component of net current assets. The cost of governmental fund-type inventories is recorded as expenditure when consumed. DRAFT 21 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) Restricted Assets Certain enterprise fund assets are required to be segregated from other current assets due to various bond indenture agreements and City ordinances. These assets are legally restricted for specific purposes, such as debt service, new construction,and renewals and replacements. Use of Restricted Funds When both restricted and unrestricted resources are available for usein the City’s enterprise funds, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, drainage improvements, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Property, plant, and equipment with initial, individual costs that equal or exceed $1,000 and estimated useful lives of over one year are recorded as capital assets. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Property, plant and equipment are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and Improvements 10– 40 Improvements OtherThan Buildings 10– 50 Infrastructure 25– 100 Machinery and Equipment 3– 40 Long-term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. DRAFT 22 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) Long-term Obligations (Concluded) In the fund financial statements, governmental fund types recognizebond premiums and discounts, as well as bond issuance costs during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Compensated Absences Accumulated unpaid vacation and sick pay are accrued when incurred in the government-wide and proprietary fund financial statements. Revenue Recognition Utility revenues are reported on the accrual basis in the accompanying financial statements. Grant revenues are recorded using the modified accrual basis in governmental funds and the accrual basis in the proprietary funds.Restricted grant revenues, which are received but not expended, are recorded as deferred revenues. Property Taxes The assessment of all properties and the collection of all propertytaxes are made through the Property Appraiser and Tax Collector of the City of Jacksonville, Florida. General property taxes are recorded as received, in cash, which approximates taxes levied less discounts for the current fiscal year. Taxes are levied on November 1 of each year. All taxes become delinquent on April 1 of the following year. Discounts are allowed for early payment. On or prior to June 1, interest- bearing certificates are sold for all uncollected real property taxes. Unsold certificates are held by the City of Jacksonville, Florida. Interfund Transactions During the course of normal operations, the City has various transactions between funds to construct assets and comply with local ordinances and other legal restrictions. These transactions are reflected as transfers. In addition, certain transfers have been made between systems and accounts of the utility enterprise fund as required by bond covenants. Prior Period Information The financial statements include certain prior year summarized comparative information in total. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the City’s financial statements for the year ended September 30, 2012, from which the summarized information was derived. DRAFT 23 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 1 - Summary of Significant Accounting Policies (Concluded) New Accounting Pronouncements During the year, the City implemented GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements (GASB 62). This standard incorporates into the GASB’s authoritative literature certain accounting and financial reporting guidance included in FASB pronouncements, which does not conflict with or contradict GASB pronouncements, and eliminates the criteria to apply post-November 30, 1989 pronouncements that do not conflict or contradict GASB pronouncements. During the year, the City implemented GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position (GASB 63). This standard establishes a new statement of net position format that reports separately all assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position (which is the residual amount of the other elements). This Statement requires deferred outflows of resources and deferred inflows of resources to be reported separately from assets and liabilities. The financial reporting impact resulting from the implementation of GASB 63 in the City’s financial statements was the renaming of “Net Assets” to “Net Position”, including changing the name of the financial statement from “Statement of Net Assets” to “Statement of Net Position”. Note 2 - Cash and Investments The City maintains a cash and investment pool that is designed for use by all funds, except for those monies which are periodically transferred for pension investment purposes. In addition, investments are separately held and individually accounted for where contractual arrangements and bond covenants provide for and require such arrangements. At September 30, 2013, the carrying amount of cash on hand and on deposit with banks, including interest-bearing deposits was $3,349,896, and the related bank balance was $3,536,473. Monies which are placed on deposit with financial institutions in the form of demand deposit accounts, time deposit accounts, and certificates of deposit are defined as public deposits. All of the City’s public deposits are held in qualified public depositories pursuant to Florida StatutesChapter 280, Florida Security for Public Deposits Act. Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, times the depository’s collateral pledged level. The pledging level may range from 25% to 125% depending upon the depository’s financial condition and establishment period. All collateral must be deposited with an approved financial institution. Any losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. The City elected to adopt a written investment policy as authorized under Florida Statutes. DRAFT 24 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 2 - Cash and Investments (Continued) Under the City’s investment policies, general investments’ activities are authorized to invest in obligations of the U.S. Treasury, demand deposits, U.S. government agency securities, certificates of deposit, U.S. government sponsored enterprises, governmentand corporate fixed income mutual funds, corporate notes and bonds, and local government investment pools. Pension trust funds can invest in the aforementioned and, additionally, authorized investments include domestic and foreign equity securities, domestic and foreign fixed income securities, and cash equivalent securities. Following are the investments, credit ratings, and maturities of the City’s governmental and business-type activities at September 30, 2013: Investment Maturities Investment Credit Fair LessThan 1-5 6-10 Type Rating Value 1 Year Years Years Total Money Market Funds: Citibank, N.A. Bank Deposit Program Unrated $ 1,003,070 $ 1,003,070 $ 0 $ 0 $ 1,003,070 Mutual Funds: Alliance Limited Duration High Income Mutual Fund Unrated 2,857,723 2,857,723 0 0 2,857,723 Guggenheim Floating Rate Strategy Class AUnrated 2,835,127 2,835,127 0 0 2,835,127 Invesco Floating Rate Class AUnrated 2,820,909 2,820,909 0 0 2,820,909 Lord Abbett Floating Rate Income Class A Unrated 1,469,807 1,469,807 0 0 1,469,807 Lord Abbett Short Duration Income Class A Mutual Fund Unrated 1,017,017 1,017,017 0 0 1,017,017 Putnam Diversified Income Trust Class A Unrated 2,483,629 2,483,629 0 0 2,483,629 Florida PRIME A-1 247 247 0 0 247 Fund B Surplus Trust Funds Investment Pool Unrated 98 0 0 98 98 Total $ 14,487,627 $ 14,487,529 $ 0 $ 98 $14,487,627 DRAFT 25 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 2 - Cash and Investments (Continued) Listed below are the investments and maturities in the City’s pension trust funds at September30, 2013: Investment Maturities Investment Fair LessThan 1-5 6-10 MoreThan Type Value* 1 Year Years Years 10Years Total Cash Depositsand Money Markets $ 1,082,227 $ 1,082,227 $ 0 $ 0 $ 0 $ 1,082,227 Common Stocks 12,315,249 12,315,249 0 0 0 12,315,249 Corporate Bonds 6,471,829 253,405 3,357,866 2,860,558 0 6,471,829 Mutual Funds – Fixed Income 426,035 426,035 0 0 0 426,035 Government and GSE Bonds 791,781 0 386,857 223,120 181,804 791,781 ICMA Self Directed 288,280 288,280 0 0 0 288,280 Total $ 21,375,401 $ 14,365,196 $ 3,744,723 $ 3,083,678 $ 181,804 $ 21,375,401 * Fair value balances reported include interest receivable. The total pension investment balances of the City at September 30, 2013, are comprised of the following items: Moody’s Percent Investment Credit of Type Rating Total Corporate Bonds A1 2.08% Corporate Bonds A2 4.34% Corporate Bonds A3 6.23% Corporate Bonds AA2 0.67% Corporate Bonds AA3- 0.75% Corporate Bonds BAA1 5.97% Corporate Bonds BAA2 8.76% Corporate Bonds BAA3 1.48% Government and GSE Bonds AAA 3.70% Mutual Funds – Fixed Income NR 1.99% Stocks NR 57.62% Cash and Money Market NR 5.06% ICMA Self Directed NR 1.35% Restricted cash and investments at September 30, 2013, in the enterprise funds follows: Renewal System Enterprise Customer and Debt Development Funds Deposits Replacement Service Charges Totals Utility Fund $ 582,889 $ 500,000 $ 1,290,619 $ 0 $ 2,373,508 Stormwater Fund $ 0 $ 0 $ 170,699 $ 0 $ 170,699 DRAFT 26 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 2 - Cash and Investments (Concluded) Credit Risk—It is the City’s Police Officers’ Retirement System Trust Funds’ investment policy to, at a minimum, limit 60% of the market value of its investment in fixed income securities to those that meet or exceed a credit rating of “A” by Moody’s or Standard & Poor’s rating services. It is the City’s General Employees’ Retirement System Trust Funds’ investment policy to, at a minimum, limit 45% of the total fixed income portfolio to “investment grade” or higher. Also, no more than 5% (at cost) of the fixed income portfolio total value can be invested in the securities of any single corporate issuer or 15% (at cost) of the plan’s total assets can be invested in foreign securities. Custodial Credit Risk—For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s investment policy does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The Finance Director may execute a third party CustodialSafekeeping Agreement with a commercial bank having trust powers or a trust company which is chartered by the United States government or the State of Florida. All securities purchased and/or collateral obtained by the City shall be properly designated as an asset of the City and held in safekeeping by the trust department or trust company, and no withdrawal of such securities, in whole or in part, shall be made from safekeeping, except by an authorized City staff member. The third party Custodial Safekeeping Agreement shall include letters of authority from the City with details as to responsibilities of parties, notification of security purchases, sales, deliver, repurchase agreements, wire transfers, safekeeping and transaction costs, procedures in case of wire failure or other unforeseen mishaps, including liability of each party. Note 3 - Receivables Receivables, net of the allowance for doubtful accounts at September 30, 2013, consist of the following: Less Total Allowance Accounts Accounts for Doubtful Receivable Fund Receivable Accounts Net General $ 116,693 $ 0 $ 116,693 Utility 521,009 (12,302) 508,707 Stormwater 41,488 (1,246) 40,242 Sanitation 71,909 (5,159) 66,750 Total $ 751,099 $ (18,707) $ 732,392 Included in accounts receivable are $216,363 of water and sewer revenues earned, but not billed as of September 30, 2013. DRAFT 27 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 4 - Notes Receivable It is the City’s policy to allow its water and sewer customers to pay connection fees over an extended period. Following is a summary of the outstanding balance at September 30, 2013: Notes Receivable $ 149,205 (Current Portion)(15,759) Total Notes Receivable - Noncurrent $ 133,446 Note 5 - Capital Assets Capital asset activity for the fiscal year ended September 30, 2013, is as follows: Beginning Ending Balance Increases (Decreases) Balance Governmental Activities Capital Assets Not Being Depreciated: Land$ 10,034,337 $ 328,665 $ 0 $ 10,363,002 Construction in Progress4,338 101,062 (4,338) 101,062 Total Capital Assets Not Being Depreciated10,038,675 429,727 (4,338) 10,464,064 Capital Assets Being Depreciated: Buildings4,491,659 0 0 4,491,659 Intangible Assets330,584 10,495 0 341,079 Improvements Other Than Buildings38,755,694 84,169 0 38,839,863 Machinery and Equipment 3,186,415 251,009 (69,499) 3,367,925 Total Capital Assets Being Depreciated46,764,352 345,673 (69,499) 47,040,526 Less Accumulated Depreciation for: Buildings (1,626,454) (113,771) 0 (1,740,225) Intangible Assets (289,490) (29,631) 0 (319,121) Improvements Other Than Buildings (12,890,254) (671,888) 0 (13,562,142) Machinery and Equipment (2,210,616) (323,755) 62,305 (2,472,066) Total Accumulated Depreciation (17,016,814) (1,139,045) 62,305 (18,093,554) Total Capital Assets Being Depreciated,Net29,747,538 (793,372) (7,194) 28,946,972 Governmental Activities Capital Assets,Net $ 39,786,213 $ (363,645) $ (11,532) $ 39,411,036 DRAFT 28 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 5 - Capital Assets (Concluded) Beginning Ending Balance Increases (Decreases) Balance Business-type Activities Capital Assets Not Being Depreciated: Land $ 1,656,018 $ 0 $ 0 $ 1,656,018 Construction in Progress115,682 184,671 (115,682) 184,671 Total Capital Assets Not Being Depreciated1,771,700 184,671 (115,682) 1,840,689 Capital Assets Being Depreciated: Buildings4,356,384 0 0 4,356,384 Intangible Assets244,709 0 0 244,709 Improvements Other Than Buildings 76,328,842 732,907 0 77,061,749 Machinery and Equipment1,843,161 181,899 (1,575) 2,023,485 Total Capital Assets Being Depreciated 82,773,096 914,806 (1,575) 83,686,327 Less Accumulated Depreciation for: Buildings(4,193,761) (68,890) 0 (4,262,651) Intangible Assets(29,902) (190) 0 (30,092) Improvements Other Than Buildings (36,384,560) (2,148,986) 0 (38,533,546) Machinery and Equipment(1,524,562) (98,008) 1,575 (1,620,995) Total Accumulated Depreciation (42,132,785) (2,316,074) 1,575 (44,447,284) Total Capital Assets Being Depreciated, Net 40,640,311 (1,401,268) 0 39,239,043 Business-type Activities Capital Assets, Net $ 42,412,011 $ (1,216,597) $ (115,682) $ 41,079,732 Depreciation expense was charged to functions/programs as follows: Governmental Activities General Governmental$ 149,875 Public Safety216,916 Road Maintenance and Construction515,512 Parks and Recreation256,742 Total Depreciation Expense - Governmental Activities $ 1,139,045 Business-type Activities Utility$ 1,837,311 Stormwater463,473 Sanitation 15,220 Building Code Enforcement70 Total Depreciation Expense - Business-type Activities $ 2,316,074 Note 6 - Long-term Debt Revenue Bonds and Loans payable are comprised of the following: DRAFT 29 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 6 - Long-term Debt (Continued) Revenue Bonds Payable Utilities System Revenue Refunding Bonds, Series 2004, Payablein Annual Installments of Principal and Semiannual Installmentsof Interest Through October 1, 2025, Bearing Coupon Rates of2.00% to 4.50%, Secured Solely by a Pledge of and Lien on NetWater and Sewer System Revenues and Certain Other Revenuesas Defined in the Bond Ordinances$ 14,420,001 SunTrust Revenue Refunding Bonds, Series 1999, Payable in Annual Installments of Principal and Semiannual Installments of Interest at a Rate of 4.20%; the Note is Secured by the City’s Utility ServiceTaxes 155,661 Utilities System Revenue Bonds, Series 2010A-1, Payable in Annual Installments of Principal and Semiannual Installments of InterestThrough April 1, 2026, Bearing Coupon Rates of 3.59%, SecuredSolely by a Pledge of and Lien on Net Water and Sewer SystemRevenues807,202 Utilities System Revenue Refunding Bonds, Series 2010B, Payable in Annual Installments of Principal and Semiannual Installments of Interest Through April 1, 2026, Bearing Coupon Rates of 3.68%, Secured Solely by a Pledge of and Lien on Net Water and Sewer System Revenues620,504 Loans Payable Florida Department of Environmental Protection,Disbursements and Capitalized Interest for a $773,030State of Florida Revolving Loan #DW160710, Issued to Finance the Construction Costs to Replace a Well atWater Treatment Plant No. 1and a Transmission Main on Ocean Boulevard, Payable in Semiannual Installmentsof Principal and Interest Through November 15, 2030, with Financing Rates of 2.71%, Secured Solely by a Pledge of NetWater and Sewer System Revenues,After Payment of AllYearly Payment Obligations on Account of the Senior RevenueObligations, as Defined in the Loan Agreement 691,426 Florida Department of Environmental Protection, Disbursements, Service Fee and CapitalizedInterest for a Combined $9,368,576State of Florida Revolving Loan #WW160700, Issued to Finance the Construction of Treatment and Transmission Facilities for the Buccaneer WWTP Phaseout Improvements and TMDLCompliance Program WWTP #1, Payable in Semiannual Installments of Principaland Interest Through May 15, 2032, with Financing Rates of 3.14% and 2.88%,Secured Solely by a Pledge of Net Water and Sewer System Revenues, After Payment of All Yearly Payment Obligations on Account of the Senior Revenue Obligations, as Defined in the Loan Agreement7,135,656 Total Revenue Bondsand Loans Payable 23,830,450 (Unamortized Discount) (123,564) (Unamortized Refunding Loss) (1,078,583) Total Long-term Debt, Net $ 22,628,303 DRAFT 30 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 6 - Long-term Debt (Continued) The annual requirements to amortize all revenue bonds and loans payable outstanding at September 30, 2013, are as follows: Governmental Activities Business-type Activities Year Ending Long-term Debt Long-term Debt September 30 Principal Interest Total Principal Interest Total 2014 $ 69,203 $ 1,457 $ 70,660 $ 1,219,361 $ 869,052 $ 2,088,413 2015 0 0 0 1,322,556 824,791 2,147,347 2016 0 0 0 1,369,127 777,243 2,146,370 2017 0 0 0 1,421,065 726,747 2,147,812 2018 0 0 0 1,468,290 673,204 2,141,494 Thereafter 0 0 0 16,960,848 3,424,811 20,385,659 Total $ 69,203 $ 1,457 $ 70,660 $ 23,761,247 $ 7,295,848 $31,057,095 Interest and amortization incurred during the year ended September 30, 2013, was $4,316 in the debt service fund and $996,199 in the enterprise funds. Of the amount incurred in the enterprise funds, no interest was capitalized. The City is also required to maintain certain debt service coverage ratios in accordance with bond resolutions. As of September 30, 2013, and during the year then ended, the City was in compliance with those ratios. The following is a summary of the changes in long-term debt of the City for the year ended September 30, 2013: Balance Balance Due October 1, September 30, Within 2012 Additions Reductions 2013 One Year Governmental Activities Revenue Bonds Payable $ 136,915 $ 0 $ (67,712) $ 69,203 $ 69,203 Compensated Absences 598,925 381,453 (415,578) 564,800 195,576 OPEB Obligation 112,021 23,705 0 135,726 0 Total Governmental Activities - Long-term Liabilities $ 847,861 $ 405,158 $ (483,290) $ 769,729 $ 264,779 Business-type Activities State Revolving Fund Loans $ 8,283,255 $ 0 $ (456,173) $ 7,827,082 $ 164,475 Revenue Bonds Payable 16,946,937 0 (1,012,772) 15,934,165 1,050,992 Less Deferred Amounts: For Issuance Discounts (133,861) 0 10,297 (123,564) 0 Loss on Bond Refunding (1,169,626) 0 91,043 (1,078,583) 0 Total Revenue Bonds Payable 15,643,450 0 (911,432) 14,732,018 1,050,992 Total Bonds/Loans Payable 23,926,705 0 (1,367,605) 22,559,100 1,215,467 Compensated Absences 289,501 145,932 (174,344) 261,089 81,499 OPEB Obligation 36,342 7,730 0 44,072 0 Total Business-type Activities - Long-term Liabilities $ 24,252,548 $ 153,662 $ (1,541,949) $ 22,864,261 $ 1,296,966 DRAFT 31 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 6 - Long-term Debt (Concluded) Conduit Debt The City has issued Health Facility Revenue and Refunding Bonds to provide financial assistance to private sector entities for the acquisition and construction of health care facilities deemed to be in the public interest. These bonds are secured by the financed property and are payable solely from the payments received on the underlying mortgage loans. There is no obligation on the part of the City or any political subdivision for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of September 30, 2013, there was one series of Health Facility Revenue and Refunding Bonds outstanding, with an aggregate principal amount payable of $40,050,000. Pledged Revenue The City has pledged certain revenues to repay certain bonds and notes outstanding as of September 30, 2013. The following table reports the revenues, sometimes net of related operating expenses, pledged for each debt issue, the amounts of such revenues received in the current year, the current year principal and interest paid on the debt, the approximate percentage of each revenue which is pledged to meet the debt obligation, and the date through which the revenue is pledged under the debt agreement, and the total pledged future revenues for each debt, which is the amount of the remaining principal and interest on the bonds and notes at September 30, 2013: Outstanding Principal Estimated Principal Pledged Revenue and Interest Percentage and Pledged Description Revenue Received Paid Pledged Interest Through 1999– Utility System Utility Refunding Bonds Service Tax $ 480,539 $ 162,027 33.72% $ 158,939 2014 2004– Utility System Utility Refunding Bonds Revenues 3,644,174 1,448,711 39.75% 18,729,373 2025 2010A-1– Utility System Utility Revenue Bonds Revenues 3,644,174 77,930 2.14% 1,009,822 2026 2010B – Utility System Utility Refunding Bonds Revenues 3,644,174 58,558 1.61% 780,511 2026 Florida Department of Environmental Utility Protection, SRF Loan Revenues 3,644,174 49,879 1.37% 872,878 2031 Florida Department of Environmental Utility Protection, SRF Loan Revenues 3,644,174 650,358 17.85% 9,576,232 2032 DRAFT 32 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 7 - Defined Benefit Pension Plans Plan Descriptions and Contribution Information The City maintains two separate single-employer defined benefitpension plans, one for police officers and one for general employees, which cover substantially all full-time City employees hired before September 1, 2008. Full-time employees hired on or after September 1, 2008,are covered by the defined contribution plan disclosed in Note 8. The pension plans do not issue separate stand-alone financial statements. Combining statements are included in the supplementary information to the basic financial statements. Membership of each plan consists of the following at September 30, 2013, the date of the latest actuarial valuation: General Employees Police Retirees, Disabled Members and Beneficiaries Receiving Benefits 56 20 Terminated Plan Members Entitled to but Not Yet Receiving Benefits 11 4 Active Plan Members 56 22 Total 123 46 Ŷ General Employees’ Retirement Plan Ɣ Plan Description The General Employees’ Retirement Plan (Plan) provides retirement, disability and death benefits to Plan members and their beneficiaries. The City Commission has the authority to establish and amend the benefit provisions of the Plan. Ɣ Contributions The City is required to contribute at an actuarially determined rate (26.34% of valuation payroll for the year ended September 30, 2013).Plan members are required to contribute 6.0% of their annual covered salary. Contribution requirements are established by City code, which may be amended by the City Commission. Ŷ Police Retirement Plan Ɣ Plan Description The Police Retirement Plan (Plan) provides retirement, disability and death benefits to Plan members and their beneficiaries. The Plan is governed by the Policemen’s Pension Board of Trustees, although the City Commission retains the authority to establish and amend the benefit provisions of the Plan. Ɣ Contributions Plan members are required to contribute 7.0% of their annual covered salary. The City is required to contribute,at actuarially determined rates, if State of Florida contributions are not sufficient (combined City and State contributions were 40.86% of valuation payroll for the year ended September 30, 2013). Per City Code, the City Commission may amend established contribution requirements. Other Pension Plan Information The Annual Required Contribution (ARC) for the current year wasdetermined as part of the September 30, 2013actuarial valuationsfor the General Employees’ and Police Retirement Plans using the entry-age actuarial cost method. The actuarial assumptions include an8.0% rate of return oninvestments,projected salary increases of 5.0% to 14.0% per year including price inflation of 3.0% and a payroll growth assumption based on the level dollar method. The assumptions did not include postretirement benefit increases. DRAFT 33 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note7 - Defined Benefit Pension Plans (Concluded) Other Pension Plan Information (Concluded) The actuarial value of assets was determined using techniques that spread the effects of short- term volatility in the market value of investments over a four-year period. The unfunded actuarial accrued liabilities are being amortized over remaining amortization periods of one to thirty years as a level percentage of active member payroll. Three-year trend information: Fiscal Year Ended Annual Pension Percentage of Net Pension September 30 Cost (APC) APC Contributed Asset/(Liability) General Employees 2011 $ 722,769 100% $ 0 2012 998,516 100% 0 2013 1,044,392 100% 0 Police 2011 $ 487,032 100% $ 0 2012 628,898 100% 0 2013 606,741 100.4% 2,271 Funded Status and Funding Progress The following is funded status information for each Plan as of September 30, 2013, the most recent actuarial valuation date and is intended to help users assess: (1) the Plan’s funded status on a going concern basis; and (2) progress being made toward accumulating the assets needed to pay benefits when due. General Employees’ Retirement Plan Total Actuarial Accrued Liability$ (17,282,000) Actuarial Value of Assets (Market Value was $13,770,711) 13,816,000 Unfunded Actuarial Accrued Liability $ (3,466,000) The General Employees’ Retirement Plan is 79.9% funded and the Unfunded Actuarial Accrued Liability represents 126.8% of covered payroll as of September 30, 2013. Police Retirement Plan Total Actuarial Accrued Liability$ (10,895,000) Actuarial Value of Assets (Market Value was $7,331,629) 7,429,000 Unfunded Actuarial Accrued Liability $ (3,466,000) The Police Retirement Plan is 68.20% funded and the Unfunded Actuarial Accrued Liability represents 254.8% of covered payroll as of September 30, 2013. The schedule of funding progress, presented as Required Supplementary Information (RSI) following the notes to the financialstatements, presents multiyear trend information about whether the actuarial value of Plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. DRAFT 34 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 8 - Deferred Compensation Plan The City passed an ordinance in 2013 closing the General Employees’ defined benefit plan to new entrants and creating the City of Atlantic Beach Defined Contribution Plan. The City’s 457 defined contribution plan isadministered throughICMA,which coversalleligible employeesemployed with the City on or after September 1, 2008,who arenot covered by the City’s Police Officers’defined benefit plan.Under the 457 Plan, the Citycontributes an employer matching contribution of up to 6% of earnings during the first ten years of service. Following ten years of service,the City contributes a fixed contribution of 4% of earnings. Employees have the option to voluntarily contribute to the plan. Employer matching contributions from the City were $76,092 and $0 for the years ended September 30, 2013and 2012, respectively. Under the plan, an employee is considered fully vested after 5 years of completed service. Note 9 - Postemployment Benefits Other Than Pensions Plan Description The City of Atlantic Beach administers a single-employer defined benefit health care plan (Plan) that provides medical insurance benefits to its employees and their eligible dependents. In accordance with Section 112.0801 of the Florida Statutes, because the City provides a medical plan to active employees of the City and their eligible dependents, the City is also required to provide retirees with the opportunity to participate in this Plan. Benefit provisions for the Plan are established by the City Commission and may be amended by the City Commission. The City does not issue stand-alone financial statements for the Plan. Membership in the Plan consisted of the following, as of October 1, 2012, the date of the latest actuarial valuation: Retirees and Beneficiaries Receiving Benefits 2 Active Plan Members 90 Total 92 Funding Policy Contribution rates for the Plan are established on an annual basis by the City Commission. Eligible retirees and their covered dependents receiving benefits contribute 100% of the blended (active and retiree combined) equivalent premium rates. While the City does not directly contribute towards the costs of retiree premiums via an explicit subsidy, the ability of retirees to obtain health insurance coverage at a blended, group rate constitutes a significant economic benefit to retirees, or an “implicit” subsidy. This implicit subsidy isconsidered to be another postemployment benefit (OPEB) obligation of the City. The City is currently funding this OPEB obligation on a pay-as-you-go basis. ARC amounted to $43,758 for the current fiscal year. The annual required contribution is based ona rate of 1.0% of projected payroll of $4,204,177 or an average $486per active participant. For the year ended September30, 2013, the Cityestimated it implicitly subsidized $12,552 of health care costs for its retirees and covered dependents. This implied subsidy reduced the annual OPEB cost to a net expense of $31,435 after interest on the Net OPEB Obligation and adjustments to ARC. DRAFT 35 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 9 - Postemployment Benefits Other Than Pensions (Continued) Annual OPEB Cost and Net OPEB Obligation The City’s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the City’s net OPEB obligation to the retiree health plan: Annual Required Contribution $ 43,758 Interest on Net OPEB Obligation 5,935 Adjustment to Annual Required Contribution (5,706) Annual OPEB Cost (Expense)43,987 Employer Contribution (12,552) Increase in Net OPEB Obligation 31,435 Net OPEB Obligation - Beginning of Year 148,363 Net OPEB Obligation - End of Year $ 179,798 The City reflected the $31,345 increase in net OPEB obligation at September 30, 2013, by recording an obligation of $23,705for governmental activities and $7,730 for business-type activities in its government-wide statement of net position. The utility fund reported a net OPEB obligation of $29,314, while the stormwater fund, sanitation fund, and building code enforcement fund reported $8,856, $0, and $5,902, respectively. The OPEB obligation is a function of annual required contributions, interest, adjustments to the annual required contribution, annual pension costs and actual employers’ contributions made to the Plan. No trust or agency fund has been established for the Plan. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation as of September 30, 2013, are presented below. Percentage Fiscal Annual of Annual Net Year OPEB OPEB Cost OPEB Ended Cost Contributed Obligation September 30, 2011 $ 58,794 32.9% $ 104,351 September 30, 2012 62,159 29.2% 148,363 September 30, 2013 43,987 28.5% 179,798 Funded Status and Funding Progress As of October 1, 2012,the date of the latest actuarial valuation, the actuarial accrued liability for benefits was $360,584, all of which was unfunded. The covered payroll (annualpayroll of active employeescovered by the Plan) was $4,204,177, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 8.58%. The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to DRAFT 36 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 9 - Postemployment Benefits Other Than Pensions (Concluded) Funded Status and Funding Progress (Concluded) continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of Plan assets is increasing or decreasing over time, relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations. In the actuarial valuation as of October 1, 2012, the date of the latest actuarial valuation,the Entry-Age Normal Actuarial Cost Method was used, which spreads the costs evenly as a percent of pay throughout the collective careers of those in the covered workforce. The unfunded actuarial accrued liability is being amortized using a level (principal and interest combined) percent of payroll over a 26-year period. Other significant actuarial assumptions include a 4% discount rate, an annual health care cost trend rate of -17%, followed by 11% for the next year, followed by 7.5% for the next year, reduced by decrementsof 0.5% each year to the ultimate value of 5%, projected salary increases of 4% annually (including general price inflation of 3%), and future participation rates of 15% up to Medicare eligibility with a 2% participation rate thereafter. Note 10 - Interfund Accounts Individual fund interfund receivables and payables at September 30, 2013, consist of the following: Due Due from Other to Other Funds Funds General $ 9,097 $ 0 Nonmajor Governmental 0 (9,097) Interfundreceivable/payables are due to timing differences associated with grant reimbursements. The receivable/payables are expected to be received/paid within one year. Note 11 - Interfund Transfers Transfers of resources from a fund receiving revenue to the fund through which the resources are to be expended are recorded as transfers and are reported as other financing sources (uses) in the governmental funds and as transfers in (out) in the proprietary funds. Following is a summary of interfund transfers for the year ended September 30, 2013: DRAFT 37 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Continued) Note 11 - Interfund Transfers (Concluded) Transfers In Nonmajor Stormwater General Building CodeGovernmental Total Transfers Out Fund Fund Fund Funds Transfers Nonmajor Governmental Funds$ 252,000 $ 77,696 $ 0 $ 71,000 $ 400,696 Utility Fund0 629,860 0 0 629,860 Sanitation Fund0 267,898 0 0 267,898 General Fund0 0 31,000 0 31,000 Total Transfers $ 252,000 $ 975,454 $ 31,000 $ 71,000 $ 1,329,454 Transfers are used to move revenues from the fund that ordinance or budget requires to collect them to the fund that ordinance or budget requires to expend them. Note 12 - Commitments As of September 30, 2013, the City had outstanding commitments on contracts in progress as follows: Unexpended Project TypeContract Amounts Utility System Improvements $ 370,830 Stormwater System Improvements 21,693 General Government Improvements 232,213 Building Code Enforcement 525 On June 2, 1999, the City entered into an agreement with the City of Jacksonville, Florida, whereas the City of Jacksonville will provide advanced life support and fire services to the residents and businesses located in the City. The term of the agreement shall be from the effective date and continuing for a period of 25 years unless terminated earlier by the parties (such parties must provide a one year notice). For the year ended September 30, 2013, the City incurred $1,005,332 in services under this agreement. The amount will be adjusted annually by an amount equal to 103% of the previous year’s amount for all services provided by the City of Jacksonville. Note 13 - Contingencies The City is a defendant in several lawsuits which arose in the ordinary course of the City’s business. To the extent the outcome of such litigation has been determined to result in probable loss to the City, an estimated loss has been accrued in the accompanying financial statements. The outcome of theremaining claims cannot be determined at this time. The City of Atlantic Beach and the City of Jacksonville are currently in discussions concerning the terms of an interlocal agreement with regard to the disposal of residential waste. The agreement allows Atlantic Beach free tippage at the landfill until Jacksonville charges a uniform rate. The agreement contains certain criteria, that when met, would trigger the City to begin paying those tippage fees. Jacksonville asserts that under terms of the agreement, the City should have begun payingtipping fees beginning October 2011. The DRAFT 38 CITY OF ATLANTIC BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 (Concluded) Note 13 - Contingencies (Concluded) City’s position is that the criteria have not been fully met and that no tipping fees are due at this time. Annual tipping fees are estimated to be approximately $400,000. Based on the City’s position, no provision has been made in the accompanying financial statements related to this issue. Note 14 - Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the City carries commercial insurance. Insurance against losses are provided through the Public Risk Insurance Agency and LB Bryan and Company for the following types of risk: Ŷ Workers’ Compensation and Employer’s Liability Ŷ General Liability Ŷ Automobile Liability Ŷ Public Officials’ Liability Ŷ Automobile Physical Damage Ŷ Property Coverage Ŷ Accidental Death and Dismemberment The City’s coverage for workers’ compensation is under a retrospectively rated policy. Premiums are accrued based on the ultimate cost to-date of the City’s experience for this type of risk. DRAFT REQUIRED SUPPLEMENTARY INFORMATION DRAFT 39 CITY OF ATLANTIC BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF PENSIONFUNDING PROGRESS SEPTEMBER 30, 2013 General Employees’Retirement Plan Actuarial UAAL as Actuarial Accrued Unfunded Annual Percentage Valuation Value of Liability AAL Funded Covered of Covered Date Assets (AAL) (UAAL) Ratio Payroll Payroll 9/30/08* $ 9,209,000 $ 12,624,000 $ 3,415,000 72.9% $ 3,727,000 91.6% 9/30/09 9,841,000 13,682,000 3,841,000 71.9% 4,019,000 95.6% 9/30/10 10,618,000 15,180,000 4,562,000 69.9% 3,838,000 118.9% 9/30/11 11,119,000 16,053,000 4,934,000 69.3% 3,738,000 132.0% 9/30/12** 12,465,000 16,599,000 4,134,000 75.1% 3,072,000 134.6% 9/30/13 13,816,000 17,282,000 3,466,000 79.9% 2,733,000 126.8% Police Retirement Plan Actuarial UAAL as Actuarial Accrued Unfunded Annual Percentage Valuation Value of Liability AAL Funded Covered of Covered Date Assets (AAL) (UAAL) Ratio Payroll Payroll 9/30/08 $ 5,764,000 $ 8,112,000 $ 2,348,000 71.1% $ 1,476,000 159.1% 9/30/09* 5,922,000 8,689,000 2,767,000 68.2% 1,697,000 163.1% 9/30/10* 6,164,000 9,449,000 3,285,000 65.2% 1,639,000 200.4% 9/30/11 6,305,000 10,065,000 3,760,000 62.6% 1,606,000 234.1% 9/30/12** 6,880,000 10,559,000 3,679,000 65.2% 1,548,000 237.7% 9/30/13 7,429,000 10,895,000 3,466,000 68.2% 1,360,000 254.80% *Afterchanges in benefits and/or actuarial assumptions and/or actuarial cost methods. ** Reflects the Actuarial Impact Statement for Ordinance 58-13-37. Analysis of the dollar amounts of actuarial value of assets, actuarial accrued liability, or unfunded actuarial accrued liability in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability provides one indication of the system’s funded status on a going concern basis. Analysis of this percentageover time indicates whether the system is becoming financially stronger or weaker. Generally,the greater this percentage,the stronger the plan. The unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial accrued liability as a percentage of covered payroll approximately adjusts for the effects of inflation and aids analysis of the progress being made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this percentage, the stronger the plan. DRAFT 40 CITY OF ATLANTIC BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF CONTRIBUTIONS FROM EMPLOYER AND OTHER CONTRIBUTING ENTITIES SEPTEMBER 30, 2013 General Employees’ Retirement Plan Contribution Annual Rate as a Required Year Ended Percent of Contributed Percentage September 30 Payroll (ARC) Contributed 2008 13.62% $ 457,005100% 2009 14.03% 528,428100% 2010 14.84% 599,292100% 2011 16.6% 722,769100% 2012 24.53% 998,516100% 2013 26.34% 1,044,392100% The information presented in the required supplementary schedules was determined as part of the actuarial valuation at the dates indicated. Additional information for the general employees’ retirement plan as of the latest actuarial valuation follows: Valuation Date September 30, 2013 Contribution Rate Employer31.52% Plan Members6.0% Actuarial Cost Method Entry Age Amortization Method Closed, Level % of Pay Method Equivalent Single Amortization Period 10.0Years Asset Valuation Method 4-Year Smoothed Actuarial Assumptions Investment Rate of Return 8.0% Projected Salary Increases 5.5%- 14.0% Includes Price Inflation 3.0% Cost-of-Living Adjustments None Payroll Growth Assumption None (Level Dollar Method) DRAFT 41 CITY OF ATLANTIC BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES OF CONTRIBUTIONS FROM EMPLOYER AND OTHER CONTRIBUTING ENTITIES SEPTEMBER 30, 2013 (Concluded) Police Retirement Plan Contribution Annual Rate as a Required Year Ended Percent of Contributed September 30 Payroll (ARC) 2008 22.80% $ 309,841 2009 21.93% 345,280 2010 26.62% 425,823 2011 26.49% 487,032 2012 36.18% 628,898 2013 35.63% 606,741 The information presented in the required supplementary schedules was determined as part of the actuarial valuation at the dates indicated. Additional information for the police retirement plan as of the latest actuarial valuation follows: Valuation Date September 30, 2013 Contribution Rates Employer 40.86% PlanMembers7.0% Actuarial Cost Method Entry Age Amortization Method Closed, Level % of Pay Method Equivalent SingleAmortization Period 11.01Years Asset Valuation Method 4-Year Smoothed Actuarial Assumptions Investment Rate of Return 8.0% Projected Salary Increases 5.0%- 23.0% Includes Price Inflation 3.0% Cost-of-Living Adjustments None Payroll Growth Assumption 1.88% DRAFT 42 CITY OF ATLANTIC BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION OTHER POSTEMPLOYMENTBENEFITS PLAN SCHEDULE OF FUNDING PROGRESS SEPTEMBER 30, 2013 Actuarial UAAL as Actuarial Accrued Unfunded Annual Percentage Valuation Value of Liability AAL Funded Covered of Covered Date Assets (AAL) (UAAL) Ratio Payroll Payroll 9/30/06 $ 0 $ 470,703 $ 470,703 0.0% $ 4,812,000 9.78% 10/1/09 0 497,883 497,883 0.0% 5,828,339 8.54% 10/1/12 0 360,584 360,584 0.0% 4,204,177 8.58% Analysis of the dollar amounts of actuarial value of assets, actuarial accrued liability, or unfunded actuarial accrued liability in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability provides one indication of the system’s funded status on a going concern basis. Analysis of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the plan. The unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial accrued liability as a percentage of covered payroll approximately adjusts for the effects of inflation and aids analysis of the progress being made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this percentage, the stronger the plan. DRAFT 43 Variance With Final Budget - Budgeted Amounts Actual Positive OriginalFinalAmounts *(Negative) Revenues Property Taxes 3,816,716$3,816,716$3,843,755$27,039$ Nonproperty Taxes 1,226,4371,226,4371,197,336(29,101) Permits, Fees and Special Assessments 871,520871,520830,708(40,812) Intergovernmental Revenues 1,520,1351,520,1351,567,42547,290 Fines and Forfeitures 79,64079,640224,758145,118 Charges for Services 747,704747,704725,294(22,410) Interest Income 75,25075,250(128,430)(203,680) Miscellaneous Revenues 15,150343,816409,13565,319 Interfund Charges 1,436,0681,436,0681,435,569 (499) Total Revenues 9,788,62010,117,28610,105,550(11,736) Expenditures Governing Body: City Commission 42,64542,64540,225 2,420 City Clerk 256,946278,410270,758 7,652 City Attorney 107,618159,918152,109 7,809 Total Governing Body 407,209480,973463,09217,881 City Administration: City Manager 266,721267,781263,366 4,415 General Government 443,723773,005751,94721,058 Human Resources 189,719188,828187,272 1,556 Information Technology 462,679485,252465,37619,876 Finance 1,066,1661,094,6501,027,89866,752 Total City Administration 2,429,0082,809,5162,695,859113,657 Planning and Zoning 178,062179,431151,76627,665 Public Safety: Police 3,560,4733,617,3643,508,384108,980 School Crossing Guards 9,700 9,80810,717 (909) Animal Control 104,637106,92793,98512,942 Fire 1,223,6871,225,1831,212,48412,699 Code Enforcement 91,71898,37987,20611,173 Total Public Safety 4,990,2155,057,6614,912,776144,885 CITY OF ATLANTIC BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION AND CHANGES IN FUND BALANCES SCHEDULE OF REVENUES, EXPENDITURES, BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2013 DRAFT 44 Variance With Final Budget - Budgeted Amounts Actual Positive OriginalFinalAmounts *(Negative) Expenditures (Concluded) Public Works: Administration and Streets 1,300,173$1,321,625$1,222,945$98,680$ Fleet Maintenance 284,640284,640238,45146,189 Total Public Works 1,584,8131,606,2651,461,396144,869 Parks and Recreation: Recreation and Special Events 397,376406,151390,43615,715 Parks Maintenance 728,640758,495666,03092,465 Total Parks and Recreation 1,126,0161,164,6461,056,466108,180 (Total Expenditures)(10,715,323)(11,298,492)(10,741,355)557,137 (Deficiency) of Revenues (Under) Expenditures (926,703)(1,181,206)(635,805)545,401 Other Financing Sources (Uses) Transfers in 970,258975,454975,454 0 Transfers (out)(31,000)(31,000)(31,000)0 Sale of General Fixed Assets 10,00010,000 0(10,000) Total Other Financing Sources (Uses)949,258954,454944,454(10,000) Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses 22,555(226,752)308,649535,401 Fund Balances, Beginning of Year 6,187,5116,187,5116,187,511 0 Fund Balances, End of Year 6,210,066$5,960,759$6,496,160$535,401$ * Actual amounts include a reversal of $57,495 prior year encumbrance roll-forward, plus current year encumbrance roll-forward of $81,523. BUDGET AND ACTUAL - GENERAL FUND (Concluded) FOR THE YEAR ENDED SEPTEMBER 30, 2013 CITY OF ATLANTIC BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES DRAFT 45 CITY OF ATLANTIC BEACH, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION NOTE TO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2013 Budgets and BudgetaryAccounting General governmental revenues and expenditures accounted for in budgetary funds are controlled by a budgetary accounting system in accordance with various legal requirements which govern the City’s operations. Budgets are monitored at varying levels of classification detail; however, expenditures cannot legally exceed total appropriations at the individual fund level. Encumbrances are recorded. Unexpended items which are unencumbered at year-end must be reappropriated in the subsequent year. Budgets are adopted for all governmental funds (general, special revenue, debt service and capital projects funds). The City Manager is authorized to transfer budgeted amounts within departments within any fund; however, any revisions that increase the total expenditures of any department or fund must be approved by the City Commission. All necessary supplemental appropriations are adopted by the City Commission and are included in the reported budgetary data. The budget presented in the accompanying required supplemental information is prepared in conformity with accounting principles generally accepted in the United States of America. DRAFT SUPPLEMENTARY INFORMATION DRAFT 46 Convention TreeLocal OptionDevelopmentHalf-centCourt CostEMG - FEMARadio ReplacementGas TaxTaxSales TaxTrainingWind RetrofitCommunication Assets Equity in Pooled Cash and Investments6,493$22,554$85,148$420,413$121,770$0$2,901$ Due from Other Governments 069,70023,593117,695509 0 1,627 Total Assets 6,49392,254108,741538,108122,279 0 4,528 Liabilities and Fund Balances Liabilities Accounts Payable and Accrued Liabilities 0 0 048,172 0 0 1,674 Due to Other Funds 0 0 0 0 0 0 0 Deposits 0 0 0 0 0 0 0 Deferred Revenue 0 0 0 0 0 0 0 Total Liabilities 0 0 048,172 0 0 1,674 Fund Balances Restricted for: Public Safety 0 0 0 0122,279 0 2,854 Road Maintenance and Construction 092,254 0 0 0 0 0 Parks and Recreation 0 0 0 0 0 0 0 Debt Service Reserve 0 0 0 0 0 0 0 Other Capital Projects 0 0 0489,936 0 0 0 Other Purposes 0 0108,741 0 0 0 0 Committed: Conservation and Resource Management 6,493 0 0 0 0 0 0 Unassigned 0 0 0 0 0 0 0 Total Fund Balances 6,49392,254108,741489,936122,279 0 2,854 Total Liabilities and Fund Balances 6,493$92,254$108,741$538,108$122,279$0$4,528$ Special Revenue Funds CITY OF ATLANTIC BEACH, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2013, WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012 2013 DRAFT 47 Totals Totals Community Special Nonmajor ContrabandDevelopmentPoliceEnergyRevenuesDebtCapitalGovernmental2012 ForfeitureBlock GrantsGrantsGrantsFundsServiceProjectsFundsTotals 21,280$0$0$0$680,559$73,113$2,724,230$3,477,902$3,214,612$ 07,6419,097 0229,862 0 0229,862456,736 21,2807,6419,097 0910,42173,1132,724,2303,707,7643,671,348 07,641 0 057,487 0 057,48751,652 0 09,097 09,097 0 09,097213,265 7,166 0 0 07,166 0 07,166 6,340 0 0 0 0 0 0 0 0157,380 7,1667,6419,097 0 73,750 0 073,750428,637 14,114 0 0 0139,247 0 0139,247158,580 0 0 0 092,254 0 092,254123,526 0 0 0 0 0 0 0 0 1,194 0 0 0 0 073,113 073,11375,350 0 0 0 0489,936 02,724,2303,214,1662,982,216 0 0 0 0108,741 0 0108,74152,732 0 0 0 06,493 0 06,493 6,493 0 0 0 0 0 0 0 0(157,380) 14,114 0 0 0836,67173,1132,724,2303,634,0143,242,711 21,280$7,641$9,097$0$910,421$73,113$2,724,230$3,707,764$3,671,348$ 2013 Special Revenue Funds DRAFT 48 Convention TreeLocal OptionDevelopmentHalf-centCourt Cost EMG - FEMARadio ReplacementGas TaxTaxSales TaxTrainingWind Retrofit Communication Revenues Taxes0$423,141$90,381$684,187$0$0$0$ Other Intergovernmental Revenues 0 0 0 0 014,216 0 Charges for Services 0 0 0310 0 0 0 Fines and Forfeitures 0 0 0 06,329 019,512 Investment Earnings (Loss)0(5,306)(1,482)(7,123)(2,375)0 (3) Miscellaneous Revenues 0 0 0 0 0 0 0 Total Revenues 0417,83588,899677,3743,95414,21619,509 Expenditures Current: Culture and Recreation 0 0 0 0 0 0 0 Public Safety 0 0 0 013,505 016,742 Road Maintenance and Construction 0305,607 0 0 0 0 0 Debt Service: Principal 00 00000 Interest and Other 0 0 0 0 0 0 0 Capital Outlay 0 032,890130,048 018,954 0 (Total Expenditures)0(305,607)(32,890)(130,048)(13,505)(18,954)(16,742) Excess (Deficiency) of Revenues Over (Under) Expenditures 0112,22856,009547,326(9,551)(4,738)2,767 Other Financing Sources (Uses) Transfers in 0 0 0 0 0 0 0 Transfers (out)0(143,500)0(252,000)0(5,196)0 Total Other Financing Sources (Uses)0(143,500)0(252,000)0(5,196)0 Net Change in Fund Balances 0(31,272)56,009295,326(9,551)(9,934)2,767 Fund Balances, Beginning of Year 6,493123,52652,732194,610131,8309,934 87 Fund Balances, End of Year 6,493$92,254$108,741$489,936$122,279$0$2,854$ CITY OF ATLANTIC BEACH, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012 2013 Special Revenue Funds FOR THE YEAR ENDED SEPTEMBER 30, 2013, DRAFT 49 Totals Totals CommunitySpecialNonmajor ContrabandDevelopmentPoliceEnergyRevenueDebtCapitalGovernmental2012 ForfeitureBlock GrantsGrantsGrantsFundsServiceProjectsFundsTotals 0$0$0$0$1,197,709$ 0$0$1,197,709$1,153,071$ 022,29181,225157,380275,112 0 0275,112586,886 0 0 0 0310 0 0 310 0 4,514 0 0 030,355 0 030,35539,110 (763)0 0 0(17,052)(1,209)(54,636)(72,897)114,030 000000007,848 3,75122,29181,225157,3801,486,434(1,209)(54,636)1,430,5891,900,945 0000000 059,607 1,417 078,440 0110,104 0 0110,104162,217 0 0 0 0305,607 0 0305,607330,766 0000067,712067,71263,684 000004,31604,3167,100 14,88322,2912,785 0221,851 0 0221,851613,231 (16,300)(22,291)(81,225)0(637,562)(72,028)0(709,590)(1,236,605) (12,549)0 0157,380848,872(73,237)(54,636)720,999664,340 0000071,000071,000580,934 0000(400,696)0 0(400,696)(906,000) 0 0 0 0(400,696)71,000 0(329,696)(325,066) (12,549)0 0157,380448,176(2,237)(54,636)391,303339,274 26,663 0 0(157,380)388,49575,350 2,778,8663,242,7112,903,437 14,114$0$0$0$836,671$73,113$2,724,230$ 3,634,014$3,242,711$ Special Revenue Funds 2013 DRAFT 50 PoliceGeneral Officers'Employees' RetirementRetirement20132012 PlanPlanTotalsTotals Assets Cash and Cash Equivalents82,413$48,330$130,743$86,828$ Prepaids2,9152,9155,8300 Interest Receivable27,7036,39434,09728,197 Investments at Fair Value7,538,21213,803,09221,341,30419,832,927 Total Assets 7,651,24313,860,73121,511,97419,947,952 Liabilities Accounts Payable and Accrued Liabilities0900900424 Excess Premium Tax Liability120,4540 120,454120,454 DROP Plan Payable199,16089,120288,280198,554 Total Liabilities 319,61490,020409,634319,432 Total Net Position Held in Trust for Pension Benefits7,331,629$13,770,711$21,102,340$19,628,520$ WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2012 Pension Trust Funds CITY OF ATLANTIC BEACH, FLORIDA COMBINING STATEMENT OF NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2013, DRAFT 51 PoliceGeneral Officers'Employees' RetirementRetirement20132012 PlanPlanTotalsTotals Additions Contributions: Employer517,935$1,044,392$1,562,327$1,538,619$ Employees77,406180,750258,156261,992 State of Florida91,077091,07788,795 Total Contributions686,4181,225,1421,911,5601,889,406 Net (Decrease) Increase in Fair Value of Investments247,703481,465729,1682,218,699 Interest and Dividends146,121274,716420,837443,921 Miscellaneous Revenue26,58731,61958,2060 Total Additions 1,106,8292,012,9423,119,7714,552,026 Deductions Refunds of Contributions0118,126118,12612,751 Benefits651,941729,4471,381,3881,254,883 Investment Expenses30,85753,93684,793103,133 Administrative Expenses27,09534,54961,64457,614 Total Deductions 709,893936,0581,645,9511,428,381 Net Increase 396,9361,076,8841,473,8203,123,645 Net Position, Beginning of Year 6,934,69312,693,82719,628,52016,504,875 Net Position, End of Year 7,331,629$13,770,711$21,102,340$19,628,520$ WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012 Pension Trust Funds CITY OF ATLANTIC BEACH, FLORIDA COMBINING STATEMENT OF CHANGES IN NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2013, DRAFT 52 2009 2010201120122013 Revenues Operating Revenues: Water: Customer Charges 2,738,565$3,188,599$3,382,973$3,069,998$3,006,787$ Miscellaneous Charges 40,90644,85946,42448,81552,996 Total Water 2,779,4713,233,4583,429,3973,118,8133,059,783 Sewer: Customer Charges 4,112,335 4,644,0905,085,3185,015,3584,953,619 Miscellaneous Charges 3,7697,52820,0063,3031,651 Total Sewer 4,116,1044,651,6185,105,3245,018,6614,955,270 Total Operating Revenues 6,895,5757,885,0768,534,7218,137,4748,015,053 Nonoperating Revenues: Investment Income (Loss): Water 7,963153,782108,762197,492(115,023) Sewer 6,8865,361(16,367)(21,010)18,426 Total Nonoperating Revenues 14,849159,14392,395176,482(96,597) Total Revenues 6,910,4248,044,2198,627,1168,313,9567,918,456 Expenses Operating Expenses: Water 1,087,2831,120,1721,292,9481,303,7081,228,763 Sewer 2,111,0972,367,6312,569,7482,493,5002,005,653 Total Operating Expenses 3,198,3803,487,8033,862,6963,797,2083,234,416 Administrative, Nondivisional and Other: Water 634,541554,538545,971518,506521,600 Sewer 1,142,214681,893685,074696,922674,514 Total Administrative, Non- divisional and Other 1,776,7551,236,4311,231,0451,215,4281,196,114 (Total Expenses)(4,975,135)(4,724,234)(5,093,741)(5,012,636)(4,430,530) Net Revenues Available for Debt Service 1,935,2893,319,9853,533,3753,301,3203,487,926 Nonoperating Income (Expense) Interest Expense (732,939)(710,196)(726,058)(766,111)(996,199) Loan Amortization (14,730)(14,730)(25,712)(12,787)(14,654) Total Nonoperating (Expense)(747,669)(724,926)(751,770)(778,898)(1,010,853) Net Income Before Depreciation and Operating Transfers 1,187,620$2,595,059$2,781,605$2,522,422$2,477,073$ FOR THE YEARS ENDED SEPTEMBER 30, 2009 THROUGH SEPTEMBER 30, 2013 HISTORICAL REVENUES AND EXPENSES CITY OF ATLANTIC BEACH, FLORIDA DRAFT 53 2013 2012 Gross Revenues Utility 8,146,988$8,127,246$ Connection Charges 25,011 8,246 Interest (97,294)176,482 Total Gross Revenues 8,074,705 8,311,974 Operating Expenses Personal Services 1,761,806 1,808,192 Contractual Services 654,600 841,708 Supplies 333,387 331,039 Repairs and Maintenance 101,929 123,310 Utilities 382,694 629,185 Intergovernmental Charges 982,292 1,047,909 Other Expenses 213,823 232,292 (Total Operating Expenses)(4,430,531)(5,013,635) Total Net Revenues in Accordance with Bond Resolutions 3,644,174$3,298,339$ Total Debt Service 2,285,436$1,631,133$ Debt Service Coverage Ratio 159.45%202.21% Required Debt Service Coverage Ratio 100.00%100.00% (a) Rate Stabilization Fund: Balance, Beginning of Year 400,000$400,000$ Transfer/Redeposit to Revenue Fund 0 0 Balance, End of Year 400,000$400,000$ CITY OF ATLANTIC BEACH, FLORIDA SCHEDULES OF NET REVENUES IN ACCORDANCE WITH BOND RESOLUTIONS ENTERPRISE FUNDS (WATER AND SEWER) FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND SEPTEMBER 30, 2012 DRAFT 54 YearElectricityCommunicationsGasFuel OilTotal 2009430,774$600,716$25,815$18$1,057,323$ 2010486,475624,25426,158341,136,921 2011487,585604,56728,062331,120,247 2012452,183567,90923,187141,043,293 2013459,672576,83920,849171,057,377 YearTotal 20094,089,288$ 20104,146,432 20113,968,233 20123,961,395 20133,843,755 Ad Valorem Tax Collections (Last Five Years) CITY OF ATLANTIC BEACH, FLORIDA OTHER BOND COVENANT DISCLOSURES FOR THE YEARS ENDED SEPTEMBER 30, 2009 THROUGH SEPTEMBER 30, 2013 Utility Service Tax Collections (Last Five Years) DRAFT 55 Annual Billings Fleet Landing (Retirement Community)369,808$ Navy (Federal Government)295,071 Oaks of Atlantic Beach (Mobile Home Park)137,344 City of Atlantic Beach, Florida 141,366 Sea Oats Plantation (Apartment Complex)135,001 Lakes of Mayport (Apartment Complex)131,993 John Creek Estate (Mobile Home Park)116,528 One Ocean Resort (Hotel)110,640 Mayport Trace (Apartment Complex)109,687 Hanna Park (Regional Park)103,193 Total 1,650,631$ CITY OF ATLANTIC BEACH, FLORIDA MAJOR UTILITY CUSTOMERS FOR THE YEAR ENDED SEPTEMBER 30, 2013 (UNAUDITED) DRAFT 56 An n u a l AverageAverage To t a l P e r c e n t a g e DemandPercentage Ye a r P o p u l a t i o n C h a n g e C A B B U C T o t a l C A B B U C T o t a l ( M G D ) C h a n g e 20 0 4 2 4 , 0 0 7 2 . 4 % 5 , 2 2 2 2 , 5 9 3 7 , 8 1 5 2, 0 0 6 2 , 2 8 1 4 , 2 8 7 2 . 9 3 - 5 . 1 5 % 20 0 5 2 2 , 9 1 4 - 4 . 5 % 5 , 2 6 3 2 , 5 9 0 7 , 8 5 3 2, 3 6 7 1 , 9 3 9 4 , 3 0 6 2 . 7 5 - 6 . 1 4 % 20 0 6 2 3 , 2 0 8 1 . 3 % 5 , 2 5 6 2 , 4 3 0 7 , 6 8 6 2, 1 0 7 2 , 1 6 4 4 , 2 7 1 2 . 7 3 - 0 . 7 3 % 20 0 7 2 3 , 1 5 1 - 0 . 2 % 5 , 2 8 3 2 , 3 4 6 7 , 6 2 9 1, 8 9 5 2 , 0 7 9 3 , 9 7 4 2 . 6 9 - 1 . 4 7 % 20 0 8 2 3 , 2 0 0 0 . 2 % 5 , 2 8 5 2 , 3 4 1 7 , 6 2 6 2, 0 0 6 2 , 2 8 8 4 , 2 9 4 2 . 5 0 - 7 . 0 6 % 20 0 9 2 3 , 0 5 8 - 0 . 6 % 5 , 1 6 6 2 , 3 4 2 7 , 5 0 8 1, 9 1 7 2 , 1 5 9 4 , 0 7 6 2 . 3 0 - 8 . 0 0 % 20 1 0 2 2 , 9 0 8 - 0 . 6 % 5 , 1 7 1 2 , 3 2 6 7 , 4 9 7 1 , 9 0 4 2 , 1 3 5 4 , 0 3 9 2 . 3 2 0 . 8 7 % 20 1 1 21 , 2 0 5 - 7 . 4 % 5 , 1 7 9 2 , 3 5 3 7 , 5 3 2 1 , 9 0 3 2 , 1 3 4 4 , 0 3 7 2 . 4 1 3 . 8 8 % 20 1 2 20 , 9 5 2 - 1 . 2 % 5 , 1 9 5 2 , 3 1 8 7 , 5 1 3 1, 8 9 8 2 , 1 3 0 4 , 0 2 8 2 . 2 7 - 5 . 8 1 % 20 1 3 20 , 8 7 5 - 0 . 4 % 5 , 2 1 8 2 , 3 4 9 7 , 5 6 7 1 , 9 0 4 2 , 1 3 5 4 , 0 3 9 1 . 9 9 - 1 2 . 3 3 % At l a n t i c B e a c h D i v i s i o n ( C A B ) Bu c c a n e e r D i v i s i o n ( B U C ) Si n g l e U n i t Mu l t i - U n i t Wa t e r S y s t e m C u s t o m e r s CI T Y O F A T L A N T I C B E A C H , F L O R I D A SU M M A R Y O F W A T E R U S A G E FO R T H E Y E A R S E N D E D S E P T E M B E R 3 0 , 2 0 0 4 T H R O U G H S E P T E M B E R 3 0 , 2 0 1 3 (U N A U D I T E D ) DR A F T 57 An n u a l Av e r a g e Annual Pe r c e n t a g e Fl o w Percentage Ye a r Po p u l a t i o n C h a n g e S i n g l e U n i t M u l t i - U n i t To t a l (M G D ) Change 20 0 4 13 , 9 1 1 3. 7 0 % 4, 9 1 3 1, 9 7 8 6, 8 9 1 1. 5 9 8 0 -8.06% 20 0 5 14 , 0 6 4 1. 1 0 % 4, 9 9 9 2, 3 8 7 7, 3 8 6 1. 8 1 6 0 13.64% 20 0 6 14 , 0 7 9 0. 1 0 % 5, 0 2 0 2, 1 1 1 7, 1 3 1 1. 5 9 9 0 -11.95% 20 0 7 14 , 0 1 5 -0 . 5 0 % 5, 0 5 7 1, 9 0 0 6, 9 5 7 1. 6 3 7 0 2.38% 20 0 8 13 , 8 1 9 -1 . 4 0 % 5, 0 8 6 1, 9 0 4 6, 9 9 0 1. 6 3 8 0 0.06% 20 0 9 13 , 8 1 9 0. 0 0 % 4, 9 9 7 1, 9 0 3 6, 9 0 0 1. 5 8 2 0 -3.42% 20 1 0 13 , 7 7 9 -0 . 3 0 % 4, 9 8 7 1, 9 1 2 6, 8 9 9 1. 5 1 9 0 -3.98% 20 1 1 12 , 6 5 5 -8 . 2 0 % 5, 0 4 1 1, 7 9 1 6, 8 3 2 1. 4 7 6 2 -2.82% 20 1 2 12 , 7 1 8 0. 5 0 % 5, 1 6 8 1, 9 0 3 7, 0 7 1 1. 5 3 9 7 4.30% 20 1 3 12 , 6 7 0 -0 . 3 8 % 5, 2 0 0 1, 9 1 6 7, 1 1 6 1. 8 0 5 2 17.24% (U N A U D I T E D ) Se w e r C u s t o m e r s CI T Y O F A T L A N T I C B E A C H , F L O R I D A SU M M A R Y O F W A S T E W A T E R T R E A T M E N T AT L A N T I C B E A C H S E W E R D I V I S I O N FO R T H E Y E A R S E N D E D S E P T E M B E R 3 0 , 2 0 0 4 T H R O U G H S E P T E M B E R 3 0 , 2 0 1 3 DR A F T 58 An n u a l Av e r a g e Annual Pe r c e n t a g e Fl o w Percentage Ye a r P o p u l a t i o n C h a n g e S i n g l e U n i t M u l t i - U n i t To t a l (M G D ) Change 20 0 4 10 , 0 9 6 0. 7 0 % 2, 5 0 4 2, 4 9 7 5, 0 0 1 0. 8 2 4 0 -2.25% 20 0 5 8, 8 5 0 -1 2 . 3 0 % 2, 5 0 3 2, 1 4 5 4, 6 4 8 0. 7 4 6 0 -9.47% 20 0 6 9, 1 2 9 3. 2 0 % 2, 3 5 6 2, 2 6 8 4, 6 2 4 0. 6 8 2 0 -8.58% 20 0 7 9, 1 3 6 0. 1 0 % 2, 2 6 7 2, 2 6 8 4, 5 3 5 0. 7 1 2 0 4.40% 20 0 8 9, 3 8 1 2. 7 0 % 2, 2 6 3 2, 4 8 2 4, 7 4 5 0. 7 0 4 0 -1.12% 20 0 9 9, 2 3 9 -1 . 5 0 % 2, 2 5 8 2, 3 5 5 4, 6 1 3 0. 6 5 1 0 -7.53% 20 1 0 9, 1 2 9 -1 . 2 0 % 2, 2 4 3 2, 3 2 8 4, 5 7 1 0. 5 7 2 0 -12.14% 20 1 1 8, 5 5 0 -6 . 3 0 % 2, 2 8 2 2, 3 3 4 4, 6 1 6 0. 6 1 6 5 7.78% 20 1 2 8, 2 3 4 -3 . 8 4 % 2, 2 4 9 2, 3 2 9 4, 5 7 8 0. 5 0 8 8 -17.47% 20 1 3 * 8, 2 0 5 -0 . 3 5 % 2, 2 7 5 2, 3 3 3 4, 6 0 8 0. 0 0 0 0 -100.00% * A t t h e e n d o f 2 0 1 2 , t h e O u t s i d e C i t y s e w e r t r e a t m e n t p l a n t c l o s e d a n d f l o w s w e r e d i v e r t e d t o t h e i n s i d e C i t y p l a n t . (U N A U D I T E D ) Se w e r C u s t o m e r s CI T Y O F A T L A N T I C B E A C H , F L O R I D A SU M M A R Y O F W A S T E W A T E R T R E A T M E N T OU T S I D E C I T Y S E W E R D I V I S I O N FO R T H E Y E A R S E N D E D S E P T E M B E R 3 0 , 2 0 0 4 T H R O U G H S E P T E M B E R 3 0 , 2 0 1 3 DR A F T ADDITIONALELEMENTS OF REPORT PREPAREDINACCORDANCE WITH GOVERNMENT AUDITINGSTANDARDS,ISSUED BY THE COMPTROLLER GENERAL OF THE UNITED STATES; THE RULES OF THE AUDITOR GENERAL OF THESTATE OFFLORIDA;AND OTHER CONTRACT REQUIREMENTS DRAFT 59 CF D A Gr a n t / C o n t r a c t C o n t r a c t Pr o g r a m Funds Nu m b e r Nu m b e r Pe r i o d Aw a r d s E x p e n d i t u r e s * R e c e i v e d Fe d e r a l A w a r d s 14 . 2 1 8 B 1 0 U C 1 2 0 0 1 7 / 5 6 2 9 - 5 4 1 0 / 0 1 / 2 0 1 2 - 0 9 / 3 0 / 2 0 1 3 1 , 4 3 4 $ 1 , 4 3 4 $ 1,434$ 14 . 2 1 8 B 1 1 U C 1 2 0 0 - 1 7 / 5 6 2 9 - 5 4 1 0 / 0 1 / 2 0 1 2 - 0 9 / 3 0 / 2 0 1 3 7 9 , 0 6 4 2 0 , 8 5 7 20,857 80 , 4 9 8 2 2 , 2 9 1 22,291 80 , 4 9 8 2 2 , 2 9 1 22,291 Ha z a r d M i t i g a t i o n G r a n t P r o g r a m 9 7 . 0 3 9 1 2 H M - 3 G - 0 4 - 2 6 - 0 2 - 0 0 5 05 / 2 4 / 2 0 1 2 - 0 3 / 3 1 / 2 0 1 4 2 9 , 8 0 2 1 4 , 2 1 6 14,216 97 . 0 6 7 0 3 / 0 4 / 2 0 1 3 - 6 / 3 0 / 2 0 1 3 1 , 3 5 1 1 , 3 5 1 0 31 , 1 5 3 15,567 14,216 16 . 6 0 7 2 0 1 0 - B U B X - 1 0 0 5 3 1 2 7 04 / 0 1 / 2 0 1 0 - 0 8 / 3 1 / 2 0 1 2 2 , 2 0 5 0 167 B u l l e t p r o o f V e s t P a r t n e r s h i p P r o g r a m 16 . 6 0 7 2 0 1 1 - B U B X - 1 1 0 5 9 3 7 5 0 4 / 0 1 / 2 0 1 1 - 0 8 / 3 1 / 2 0 1 3 1 , 7 5 4 710 1,043 16 . 6 0 7 2 0 1 2 - B U B X - 1 2 0 6 1 4 0 7 04 / 0 1 / 2 0 1 2 - 0 8 / 3 1 / 2 0 1 4 1 , 0 5 0 1,050 0 16 . 6 0 7 2 0 1 3 - B U B X - 1 3 0 6 9 0 2 5 04 / 0 1 / 2 0 1 3 - 0 8 / 3 1 / 2 0 1 5 2 , 3 3 3 864 0 S u b t o t a l E x p e n d i t u r e s - 1 6 . 6 0 7 7,342 2,624 1,210 16 . 7 3 8 2 0 1 3 - J A G C - D U V A - 1 - D 7 - 0 5 9 1 0 / 0 1 / 2 0 1 0 - 0 9 / 3 0 / 2 0 1 1 3 6 , 4 4 0 36,440 33,773 16 . 7 3 8 2 0 1 3 - J A G C - D U V A - 2 - D 7 - 1 0 9 10 / 0 1 / 2 0 1 1 - 0 9 / 3 0 / 2 0 1 2 4 2 , 0 0 0 42,000 35,570 16 . 7 3 8 2 0 1 3 - J A G D - D U V A - 2 - D 8 - 0 2 3 1 0 / 0 1 / 2 0 1 1 - 0 9 / 3 0 / 2 0 1 2 2 , 7 8 5 2,785 2,785 81 , 2 2 5 81,225 72,128 To t a l U . S . D e p a r t m e n t o f J u s t i c e 88 , 5 6 7 83,849 73,338 an d C o n s u m e r S e r v i c e s : AR R A - 8 1 . 0 4 1 1 7 4 9 5 / A R S 0 2 8 01 / 3 1 / 2 0 1 1 - 0 7 / 3 1 / 2 0 1 2 2 3 4 , 7 8 9 0 157,380 23 4 , 7 8 9 0 157,380 To t a l U . S . D e p a r t m e n t o f E n e r g y Di r e c t P r o g r a m s : St a t e E n e r g y P r o g r a m Ed w a r d B y r n e M e m o r i a l J u s t i c e A s s i s t a n c e G r a n t P r o g r a m In d i r e c t P r o g r a m s : Pa s s e d T h r o u g h F l o r i d a D e p a r t m e n t o f L a w E n f o r c e m e n t : U. S . D e p a r t m e n t o f E n e r g y In d i r e c t P r o g r a m s : Su b t o t a l E x p e n d i t u r e s - 1 6 . 7 3 8 Bu l l e t p r o o f V e s t P a r t n e r s h i p P r o g r a m Pa s s e d T h r o u g h F l o r i d a D e p a r t m e n t o f A g r i c u l t u r e Ed w a r d B y r n e M e m o r i a l J u s t i c e A s s i s t a n c e G r a n t P r o g r a m Ed w a r d B y r n e M e m o r i a l J u s t i c e A s s i s t a n c e G r a n t P r o g r a m Bu l l e t p r o o f V e s t P a r t n e r s h i p P r o g r a m Bu l l e t p r o o f V e s t P a r t n e r s h i p P r o g r a m Pass e d T h r o u g h F l o r i d a D i v i s i o n o f E m e r g e n c y M a n a g e m e n t : U. S . D e p a r t m e n t o f J u s t i c e Pa s s e d T h r o u g h C i t y o f J a c k s o n v i l l e , F l o r i d a : Ur b a n A r e a S e c u r i t y I n t i a t i v e To t a l U . S . D e p a r t m e n t o f H o m e l a n d S e c u r i t y Co m m u n i t y D e v e l o p m e n t B l o c k G r a n t ( C D B G ) In d i r e c t P r o g r a m s : Pa s s e d T h r o u g h C i t y o f J a c k s o n v i l l e , F l o r i d a : U. S . D e p a r t m e n t o f H o m e l a n d S e c u r i t y To t a l U . S . D e p a r t m e n t o f H o u s i n g a n d U r b a n D e v e l o p m e n t Su b t o t a l E x p e n d i t u r e s - 1 4 . 2 1 8 CI T Y O F A T L A N T I C B E A C H , F L O R I D A SC H E D U L E O F E X P E N D I T U R E S O F F E D E R A L A W A R D S FO R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 3 Co m m u n i t y D e v e l o p m e n t B l o c k G r a n t ( C D B G ) AN D S T A T E F I N A N C I A L A S S I S T A N C E P R O J E C T S Gr a n t o r / P a s s - T h r o u g h E n t i t y U. S . D e p a r t m e n t o f H o u s i n g a n d U r b a n D e v e l o p m e n t In d i r e c t P r o g r a m s : DR A F T 60 (C o n c l u d e d ) CF D A Gr a n t / C o n t r a c t C o n t r a c t Pr o g r a m Funds Nu m b e r Nu m b e r Pe r i o d Aw a r d s E x p e n d i t u r e s * R e c e i v e d U. S . E x e c u t i v e O f f i c e o f t h e P r e s i d e n t In d i r e c t P r o g r a m s : Pa s s e d T h r o u g h S t . J o h n s C o u n t y S h e r i f f s O f f i c e : No r t h F l o r i d a H i g h I n t e n s i t y D r u g T r a f f i c k i n g A r e a M a r i t i m e an d L a n d I n v e s t i g a t i o n a n d I n t e r d u c t i o n s I n i t i a t i v e 95 . 0 0 1 G1 3 N F 0 0 0 1 A 02 / 1 4 / 2 0 1 3 - 0 6 / 1 4 / 2 0 1 4 2 0 , 0 0 0 $ 373$ 373$ To t a l U . S . E x e c u t i v e O f f i c e o f t h e P r e s i d e n t 20 , 0 0 0 373 373 In d i r e c t P r o g r a m s : Pa s s e d T h r o u g h F l o r i d a D e p a r t m e n t o f E n v i r o n m e n t a l P r o t e c t i o n : CM 2 4 5 06 / 1 1 / 2 0 1 3 - 0 3 / 3 0 / 2 0 1 4 1 7 , 5 0 0 0 0 17 , 5 0 0 0 0 To t a l F e d e r a l E x p e n d i t u r e s 47 2 , 5 0 7 122,080 267,598 St a t e F i n a n c i a l A s s i s t a n c e 37 . 0 7 7 WW 1 6 0 7 0 0 N/ A 10 , 3 6 8 , 5 7 6 0 0 To t a l S t a t e F i n a n c i a l A s s i s t a n c e 10 , 3 6 8 , 5 7 6 0 0 To t a l E x p e n d i t u r e s o f F e d e r a l A w a r d s a n d S t a t e F i n a n c i a l A s s i s t a n c e 10 , 8 4 1 , 0 8 3 $ 122,080$ 267,598$ * I n c l u d e s g r a n t e x p e n d i t u r e s o n l y ( m a t c h i n g f u n d s n o t r e p o r t e d ) . F l o r i d a D e p a r t m e n t o f E n v i r o n m e n t a l P r o t e c t i o n Di r e c t P r o j e c t s : Gr a n t o r / P a s s - T h r o u g h E n t i t y FO R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 3 St a t e w i d e S u r f a c e W a t e r R e s t o r a t i o n a n d W a s t e w a t e r P r o j e c t s To t a l U . S . D e p a r t m e n t o f C o m m e r c e Fl o r i d a C o a s t a l M a n a g e m e n t P r o g r a m CI T Y O F A T L A N T I C B E A C H , F L O R I D A SC H E D U L E O F E X P E N D I T U R E S O F F E D E R A L A W A R D S AN D S T A T E F I N A N C I A L A S S I S T A N C E P R O J E C T S U. S . D e p a r t m e n t o f C o m m e r c e DR A F T 61 CITY OF ATLANTIC BEACH, FLORIDA NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE PROJECTS FOR THE YEAR ENDED SEPTEMBER 30, 2013 Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awardsand state financial assistance projects includes the federal and state awards activity of the City of Atlantic Beach, Florida, under programs of the federal government and projects of the state government for the year ended September 30, 2013. The information is presented in accordance with the requirement of OMB Circular A-133, Audits of State and Local Governments and Non-Profit Organizations and the State of Florida Single Audit Act. Because the schedule presents only a selected portion of the operations of the City, it is not intended and does not present the financial position, changes in net positionor cash flows of the City. Expenditures reported on the schedule are presented on theaccrual basis of accounting. DRAFT 62 Fiscal Year 2012-2013 Grant No. 5629-54 Amount of Award (Per City of Jacksonville Budget Ordinance)80,498$(A) Actual Funds Received from City of Jacksonville in Last Audit Period 0 Actual Funds Received this Period(22,291) Amount Earned but Not Received this Period0 Unspent Award Amount 58,207$ Expenditure of City Funds (A) City Fiscal Year 2011-2012 Grant #5629-51 - $80,498 Actual 10/1/2012Remaining Budgeted 9/30/2013 Balance Area Neighborhood Infrastructure Improvements # 004799 / BU11UC1200171,434$1,434$0$ Donner Park Improvements # 004415 / B09UC1200-17 79,06420,857 58,207 Total 80,498$22,291$58,207$ CITY OF ATLANTIC BEACH, FLORIDA SCHEDULE OF SOURCE AND EXPENDITURE OF THE CITY GRANT FUNDS PER ORDINANCE CODE CHAPTER 118.301(e) FOR FISCAL YEAR 2012-2013 City of Jacksonville Public Service Grants Received as a Subgrant Recipient Per Interlocal Agreement Source of City Funds Project / Federal Grant Number DRAFT 63 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OFBASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor, City Commissioners and Interim City Manager Atlantic Beach, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Atlantic Beach, Florida, (the City), as of and for the year ended September 30, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated __________. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies,in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. DRAFT 64 Honorable Mayor, City Commissioners and Interim City Manager Atlantic Beach, Florida INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS (Concluded) Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’sinternal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. ______________________ Gainesville, Florida DRAFT 65 MANAGEMENT LETTER Honorable Mayor, City Commissioners and Interim City Manager Atlantic Beach, Florida We have audited the basic financial statements of the City of Atlantic Beach, Florida (the City), as of and for the fiscal year ended September 30, 2013, and have issued our report thereon dated ___________. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. We have issued our independent auditors’ report on internal control over financial reporting and compliance and other mattersbased on an audit of the financial statements performed in accordance with Government Auditing Standards. Disclosures in those reports and schedule, which aredated ___________, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which governs the conduct of local governmental entity audits performed in theState of Florida. This letter includes the following information, which is not included in the aforementioned auditors’ report or schedule. Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no comments made in the preceding annual financial audit report. Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding investment of public funds. In connection with our audit, we determined that the City complied with Section 218.415, Florida Statutes. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)4., Rules of the Auditor General, requires that we addressnoncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with the audit, we did not have any such findings. Section 10.554(1)(i)5., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information is included in Note 1 to the financial statements. DRAFT 66 Honorable Mayor, City Commissioners and Interim City Manager Atlantic Beach, Florida MANAGEMENT LETTER (Concluded) Section 10.554(1)(i)6.a., Rules of the Auditor General, requires a statement to be included as to whether or not the local government has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the City does not meet any of the conditions described in Section 218.503(1), Florida Statutes. Section 10.554(1)(i)6.b., Rules of the Auditor General, requires that we determine whether the annual financial report for the City for the fiscal year ended September 30, 2013, was filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2013. In connection with our audit, we determined that these two reports were in agreement. Pursuant to Section 10.554(1)(i)6.c. and 10.556(7), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the City’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, and applicable management, and is not intended to be and should not be used by anyone other than the specified parties. _______________ Gainesville, Florida DRAFT CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGEN DA IT EM II ti C MARCil 10, 201 '1 AGENDA ITEM: Award Bid for East Coast Drive Drainage and Streetscape Improvements SUBMITIED BY: Riel< Carper, P .E., Public Worl<s Director (LC, February 12, 2014 DATE: STRATEGIC PLAN LINK: 14. Stormwater Master Plan Projects. BACKGROUND: The purpose of this Stormwater Project was to resolve in term ittent BUDGET: flooding at the East Coast Drive and Atlantic Blvd intersection caused by a too small storm pipe running from Atlantic Blvd to Ahern Street. Because of the constructi on required for a resolution meeting the City's Drainage Level of Service Standard s while not causing new stormwater issues downstream (Sherry Drive), Staff proposed to include a Streetscape element to the project that would make East Coast Drive off Atlantic and Ahern Street between East Coast and Ocean Drives match the existing Town Center Streetscape. This proposal was approved and funding included in the FV 13-14 Budget. As In itially designed, the bids for t his project were substantial ly over budget (lowest bid $612,000). In November, the Commission approved Staff's recommendation to reject all bids and authorized development of a reduced project to meet budget. The stormwater model of the revised project shows that street flooding will not occur through the 5 Year storm with water levels decreased from existing conditions for all storms. Bid 14-1213-12R was opened on February 12, 2014. There were four b ids to construct the project. The low bidder was J.B. Coxwell Contracti ng at $221,856 .64, which includes a 10% contingency . Budget balance for the combined project for the East Coast Drive Drainage Improvements (PW 1306) and Streetscape Imp rovements (PW 1401) is $396,686. RECOMMENDATION: Based on bid analysis and favorable references, Staff recommends th e Commission approve awarding the contract to J.B. Coxwell Contracting and authorize the City Manager to execute the Cont ract Documents on the City's behalf. AITACHMENTS: Bid Tabulation Sheet CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA nr:M 1/40 MARCil I ll, 20 14 AGENDA ITEM: Asphalt Repairs for the Public Works/Utilities Department SUBMITTED BY: Rick Carper, P.E ., Public Works Directo vt-L DATE: February 3, 2014 STRATEGIC PLAN LINK: None BACKGROUND: The City's annual contract for small asphalt paving repairs with Tom 's Asphalt Repairs, Inc. expires o n February 28, 2014. Mr. Stan Miller, President and Owner of Tom's Asphalt Repairs , Inc., has agreed to extend the contract for another year at the current prices (2011 ). The City has the option of extending the current contract for two (2) one {1 ) year periods . This proposed extension will be the first. RECOMMENDATION: Extend the contract for one year at the current prices. ATTACHMENTS: BUDGET: Letter signed by Stan Miller, President -Owner of Tom 's Asphalt Repairs., Inc. agreeing to the extension. Fiscal Year 13/14 Budget: 001-5002-541 .34-00 4 70-0000-538 .34-00 400-5504-533.34-00 410-5506-535.34-00 Total $10,000.00 $10,000 .00 $ 7,000.00 $ 7.000.00 $34,000 .00 REVIEWED BY CITY MANAGER:____,l___;'l.___;_(/......;;.~>=_...,..;...;....:;~.::....=u=::...y-=-7 --------- U.LI Uo:JI LtJ.lY J..o:Jo J..O F!llbmary 3, 2014 Stan Miller President :Jt:J4/Ll:l'l:l4 !om's Asphalt Repairs, In.c. 7l35 Beach Blvd, Jacksonville, Florida 3221.6 Dear Mr. Miller: IUMS AS~HALI ~EPAIRS AGENDA ITEM# 4D MARCH 10, 2014 CITY OF ATLt\NTJCBEACli DBPARTMENT OF PUBLIC WORKS 120D SANDPIPER LANE ATLANTIC B6ACH, FLORIDA 3::1.'233·4.318 TELEPHONE: (904) 247·58:14 FAX: (904) 247·5843 SUNCOM: 852-58j4 www.coab.us As you ru:e aware, the C<n:\tl.'Mt with the City of Atlantlc B~ch for asphalt repairs expires on February 28; 2014. We would like to extend the contract for EU)other Y<"..at at the current p:rioos, if this 1s acc0ptable to yow· corn.pany.lf acceptable, plellBe sign below and tetum to me before Febtuary 7, 2014, so .I can prepare a staff report for the City CommissioJl to accept the ex:te:nsio:a We look forward to l'ecommending that we continue our contract with your company. ~.incr$'rely). /? !:;&::>~~ Phll Nodine Streets and Maintenance Division Director TOM'S ASPHALT REPAKRS, INC. AGREES TO EXTEND TKiCJE CONTRACT FOR ONE YEAR FOR THE SAME PRl!CE. -~/11r~--1 oJ-63-l'f- stan Miller, President Date AGENDA ITEM: DATE: SUBMITTED BY: BACKGROUND: STAFF REPORT City of Atlantic Beach Commission Meeting 9-1-1 Inter-Local Agreement FY 2014 Februruy 4, 2014 ~~u Michael D. Classey-Chief of Police AClENDA II'EM II tiE MARCil tO , 20 14 Duval Co un !{' co lle cts a user fee on all telephone lin es in the co unty to oOset the expenses of providing 13911 services . Jackso nville purchases the TI9 11 emergency equipm ent for the answer in g s tation s inc ludin g the three beach cities. Each yea J\ Jacksonville reimburses th e citi es of AtJantic Beach, Neptun e Beach, and Jacksonville Beach up to 30% oflheil· personnel costs for Emergency Comm unicati on Operators. We have agre ed on a reimbursement of the ex penses for emergency communicaLions based on 30% of the call s attributed to E911. On a quarterly basis, the citi es provide documentat i on ()f th e it· emergency com munications expenses includin g salary , benefits, and training. J ackso nville reimbur ses up to 30% of those cos ts. The num15 er in th e attached papet'Work is a "not to exceed" ugure. The amount is ba se d up on last year's actual expenses l:lnd 9 11 reve nues. T he actual reimbursemen t wi ll be based 0 11 th e actual expenses in c urred by The City of Atlantic Beach. BUDGET: The net effect of this contract is that it wi ll provide up to $70,356 in reve nu e to the City of Atlantic Beach over the next year. RECOMMENDATIONS: Staff recommends th e approval of the Inter-Local Agre~meni Amendment fo r the Distribution of9-l-I Funds for Ca ll -Taker Salaries, in c lud ing the a uth ori zat ion to r th e Mayor and City Manager to sign the paperwork . ATTACHMENTS: Letter G·om Sheriff Joh n Rutherford Jacksonville Sheriff's Office. Amendment N umb e r four to: Inter-Loca l Agreement fi·om City of Jacksonville with signa ture pages. John H. Rutherford Sheriff January 21,2014 City of Atlantic Beach OFFICE OF THE SHERIFF CONSOLIDATED CITY OF JACKSONVILLE 501 EAST BAY STREET • JACKSONVILLE, FLORIDA 32202-2975 Attention Mayor Carolyn Woods. 800 Seminole Road Atlantic Beach, FL 32233 Reference: Amendment No. 4 to 911 Interlocal Agreement between the City of Jacksonville and the City of Atlantic Beach, Florida Dear Mayor Woods: AGENDA ITEM# 4E MARCH 10, 2014 Forwarded herewith is one (1) original of the above referenced Amendment No.4 to Contract No. 5629-46 between the City of Jacksonville and the City of Atlantic Beach, Florida. Please have the original executed and return with proper attestation to my attention. Sincerely, JOHN H. RUTHERFORD SHERIFF William J. Clement, CPA Chief of Budget & Management ENCLOSURE ~ .~ A Nationally Accredited Agency An Equal Opportunity Employer 2. ATLANTIC BEACH shall receive a distribution proportion of the 9-1-1 User Fee calculated by taking the total Call-Takers actual salary expenditures from ATLANTIC BEACH, multiplying that amount by 30% (based on call volume data provided by each PSAP agency) and adding 30% for benefits and training. The Sheriff's Office may also include other factors such as changes in the 9-1-1 call volume data, percentage and inflationary increases or decreases, and the impact of wireless calls on each agency, to determine the distribution amount. The maximum amount to be distributed by JACKSONVILLE as a result of this calculation for ATLANTIC BEACH for Fiscal Year 2013-2014 is "SEVENTY THOUSAND, THREE HUNDRED FIFTY- SIX and 00/100 DOLLARS ($70,356.00)" 3. Section 6, in said Agreement, is amended, in part to revise dates to reflect the Fiscal Year 2013-2014 and, as amended, shall read as follows: "6. The salary period covered by Amendment Number Four to Agreement shall commence retroactively to October 1, 2013 which is the beginning of Fiscal Year 2013-2014 This Agreement shall become effective on the date it is recorded in the Official Records of Duval County, and shall remain effective through_September 30, 2014." 4. JACKSONVILLE will record this Amendment Number Four to Interlocal Agreement in the Official Records of Duval County, as required by Section 163.01(11), Florida Statutes. SAVE AND EXCEPT for the express amendments provided in this instrument, the provisions, terms and conditions of said Agreement shall remain unchanged and shall continue in full force and effect. [Remainder of page intentionally left blank. Signature page follows immediately.] 2 AGENDA ITEM# 4E MARCH 10, 2014 IN WITNESS WHEREOF, the City of Atlantic Beach, by and through its respective authorized representatives, has caused this Agreement to be executed on the day and year first above written. ATTEST: By: _________ _ Donna L. Bartle, City Clerk 800 Seminole Road Atfantic Beach, FL 32233 STATE OF FLORIDA) · )ss. COUNTY OF DUVAL) CITY OF ATLANTIC BEACH By: ___________ _ Carolyn Woods, Mayor 800 Seminole Road Atlantic Beach, FL 32233 By: ___________ _ Nelson VanLiere, City Manager 800 Seminole Road Atlantic Beach, Florida 32233 The foregoing instrument was acknowledged before me this day of _____ _ 20_, by Carolyn Woods, Nelson VanLiere and Donna L. Bartle, the Mayor, the City Manager and the City Clerk, respectively, of the City of Atlantic Beach, a municipal corporation in Duval County, Florida. Such persons: (notary must check applicable box) D are personally k;nown to me; or D produced a current _______ driver's license as identification; or D produced as identification __________ (Sign) ___________ (Print) NOTARY PUBLIC My Commission expires: _____ _ (NOTARIAL SEAL) G:\Gov't Ojlerations\NEILLM\CONTRAC1\ATLANTIC BEACH Agreement EXECUTION ORIGINAL Amd#2 for 2011-2012 ILA Atlantic Beach (3).doc 4 GRS AGENDA ITEM# 5A MARCH 10, 2014 Gabriel Roeder Smith & Company Consultants & Actuaries CITY OF ATLANTIC BEACH GENERAL EMPLOYEES' RETIREMENT SYSTEM ACTUARIAL VALUATION REPORT SEPTEMBER 30, 2013 ANNUAL EMPLOYER CONTRIBUTION IS DETERMINED BY THIS VALUATION TO BE PAID IN THE EMPLOYER FISCAL YEAR ENDING SEPTEMBER 30, 2015 GRS January 7, 2014 Gabriel Roeder Smith & Company Consulrmns & Acmaries The Board of Trustees City of Atlantic Beach General Employee Retirement System Atlantic Beach, Florida Dear Board Members: One East Brow.ud Blvd. Suite 505 Ft.. L1uderdalc, FL .l.H01-HI71 954.527.1616 phone 95•1.525.0083 fax www.gllbriclmcdt-r.corn We are pleased to submit herein our September 30, 2013 Actuarial Valuation Repmt for the City of Atlantic Beach General Employees' Retirement System. The contribution results apply to the Plan Year ending September 30, 2014 and to the City's fiscal year ending September 30, 2015. This repmt was prepared at the request of the Board of Trustees and is intended for use by the Pension Plan and those designated or approved by the Board of Trustees. This report may be provided to parties other than the Pension Plan only in its entirety and only with the permission of the Board of Trustees. The purpose of the valuation is to measure the Plan's funding progress, to determine the employer contribution rate for the fiscal year ending September 30, 2015 and to determine the actuarial information for Governmental Accounting Standards Board (GASB) Statements No. 25 and No. 27. This repmt should not be relied on for any purpose other than the purpose described above. The developed findings included in this report consider data or other information through September 30, 2013. Future actuarial measurements may differ significantly from the current measurements presented in this repmt due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as pmt of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. The calculations are based upon assumptions regarding future events, which may or may not materialize. They are also based upon current plan provisions that are outlined in the report. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, or that conditions have changed since the calculations were made, you should contact the author of this repmt prior to relying on information in the repmt. The valuation was based upon information furnished by the City, concerning Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We checked for internal and year-to-year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or completeness of the information provided by the City. The undersigned actuaries are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The signing actuaries are independent of the plan sponsor. The Board of Trustees January 7, 2014 Page 2 This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Retirement Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. Gabriel, Roeder, Smith & Company will be pleased to answer questions pertaining to the valuation and to meet with you to review this Report. Respectfully submitted, GABRIEL, ROEDER, SMITH AND COMPANY James J. Rizzo, ASA, MAAA Senior Consultant & Actuary Piotr Krekora, ASA, MAAA Senior Actuarial Analyst Gabriel, Roeder, Smith and Company TABLE OF CONTENTS SECTION TITLE A EXECUTIVE SUMMARY B VALUATION RESULTS 1. Participant Data 2. Annual Required Contribution 3. Actuarial Value ofBenefits and Assets 4. Financial Soundness 5. Actuarial Gains and Losses 6. Recent Hist01y of Valuation Results 7. Recent History of Required and Actual Contributions 8. Actuarial Assumptions and Cost Method C PENSION FUND INFORMATION 1. Summaty of Assets 2. Summary of Fund's Income and Disbursements 3. Reconciliation of DROP Accounts 4. Actuarial Value of Assets 5. Investment Rate ofReturn D FINANCIAL ACCOUNTING INFORMATION 1. FASB No. 35 2. GASB No. 25 3. GASB No. 27 E MISCELLANEOUS INFORMATION F G 1. Reconciliation of Membership Data 2. Statistical Data SUMMARY OF PLAN PROVISIONS COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS A-1 B-1 B-2 B-3 B-4 B-8 B-12 B-14 B-15 C-1 C-2 C-3 C-4 C-6 D-1 D-2 D-4 E-1 E-2 F-1 G-1 Circular 230 Notice: Pursuant to regulations issued by the IRS, to the extent this communication (or any attachment) concerns tax matters, it is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) marketing or recommending to another party any tax-related matter addressed within. Each taxpayer should seek advice based on the individual's circwnstances from an independent tax advisor. GRS SECTION A EXECUTIVE SUMMARY Revisions in Actuarial Assumptions and Methods Amottization method was changed in connection with the plan amendment to amottize future gains and losses over a decreased period of I 0 years using a level dollar method to reflect the nature of a closed plan. There were no revisions in actuarial assumptions or methods for the current year. Actuarial Experience Actuarial gains occur in a year whenever the experience of the plan is better than was assumed. For example, if investment performance were better than the level being assumed in the actuarial valuation and costing process, then an actuarial gain results and would have the effect of lowering the Minimum Required Contribution for the year. Whenever more employees terminate employment than were assumed would terminate, fewer employees are then expected to actually retire from the City, resulting in an actuarial gain for the plan. Actuarial losses occur in a year whenever the experience of the plan is worse than was assumed. In the examples given above, if the reverse were to occur, then actuarial losses would result. As another example, if salaries increased in one year higher than was assumed, an actuarial loss would occur. The actuarial valuation cost method which determines the Minimum Required Contribution is designed to produce contribution requirements which remain level as a percent of payroll for an open plan whenever the experience of the plan matches the actuarial assumptions used. Contribution Requirements are also level whenever actuarial losses exactly offset actuarial gains. Analysis of Change in Employer Contribution The increase in the Employer Contribution as a percent of pay is primarily due to the plan closure resulting in a decreased payroll and a change in the amortization method to level dollar (equivalent to lowering the assumed payroll growth rate to 0%). The components of change in the actuarially required contribution are as follows: Contribution rate last year* Payment on UAAL Experience gain/loss Change in administrative expense Change in normal cost before expenses Revision in benefits Revision in assumptions/methods Contribution rate this year 29.19 % 2.72 ( 1.60) 0.33 0.95 0.00 0.00 31.59 % *Reflects the Actuarial Impact Statement for Ordinance 58-13-37. There was a net actuarial gain this year which is due to the lower than expected salmy increases (1.3% actual vs. 5.9% assumed). The actuarial gain was offset slightly by the valuation asset return being 7.6% when compared to the 8.0% assumption and by an increase in the administrative expenses. The remainder of this Repott includes detailed actuarial valuation results, financial information, miscellaneous information and statistics, and a summmy of plan provisions. GRS City of Atlantic Beach General Employees' Retirement System 9/30/2013 Actuarial Valuation I A-2 SECTIONB VALUATION RESULTS ACTUARIAL ASSUMPTIONS AND COST METHOD Valuation Methods Actuarial Cost Method -The actuarial cost method is a procedure for allocating the actuarial present value of benefits and expenses to time periods. Normal cost and the allocation of benefit values between service rendered before and after the valuation date were determined using the Entry-Age Actuarial Cost Method. The entry-age actuarial cost method allocates the actuarial present value of each member's projected benefits on a level basis over the member's pensionable compensation between the entry age of the member and the estimated active status exit ages. The portion of the actuarial present value allocated to the valuation year is called the normal cost. The pmtion of the actuarial present value not provided for by the actuarial present value of future normal costs is called the actuarial accrued liability. Deducting accrued assets from the actuarial accrued liability dete1mines the unfunded actuarial accrued liability. Financing of Unfimded Actuarial Accrued Liabilities-The unfunded actuarial accrued liability was financed as a level dollar. Actuarial Value of Assets -The Actuarial Value of Assets phases in the difference between the expected and actual return on market value of assets at the rate of 25% per year. The Actuarial Value of Assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the Market Value of plan assets and whose upper limit is 120% of the Market Value of plan assets. During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than Market Value. During periods when investment performance is less than assumed rate, Actuarial Value of Assets will tend to be greater than Market Value. Valuation Assumptions The actuarial assumptions used in the valuation are shown in this Section. GRS City of Atlantic Beach General Employees' Retirement System 9/30/2013 Actuarial Valuation I B-15 Economic Assumptions The investment return rate assumed in the valuation is 8.0% per year, compounded annually (net of investment expenses). The wage inflation rate assumed in this valuation was 4% per year. The Wage Inflation Rate is defined to be the portion of total pay increases for an individual that are due to macroeconomic forces including productivity, price inflation, and labor market conditions. For an ongoing plan with a constant active population, a long term payroll growth rate often converges to the assumed rate of wage inflation. The wage inflation rate does not include pay changes related to individual merit and seniority effects. The price inflation rate assumed in this valuation was 3.00% per year. The plan does not provide for automatic post-retirement cost of living adjustments (COLA) of retiree benefits. Ad-hoc COLA increases have been adopted in the past upon approval by the City. Most recently, such increases have been granted in 1987, 1996 and 2001. No assumptions are made regarding future adjustments. Any such increases will be recognized as they occur. The total rate of return is defined as earnings resulting from interest, dividends, realized gains (losses) and unrealized appreciation (depreciation) less investment-related expenses, all divided by the beginning market value of the fund, adjusted for cash flow during the year. Total rate of return is as the assumed to be 8.0% per year, net of investment-related expenses. The rates ofsalmy increases used in the valuation are illustrated in the following table (rates below include 3% price inflation). GRS Annual Rates for Salary Increase for Sample Ages Age: Expected Increase City of Atlantic Beach General Employees' Retirement System 20 14.0% 30 40 50 60 8.7% 6.5% 6.0% 5.5% 9/30/2013 Actuarial Valuation I B-16 Demographic Assumptions The mortality rates used were taken from the gender specific RP-2000 Combined Healthy Pmiicipant Mmiality Tables for males and females, with generational projections from the year 2000 Projection Scale AA. Sample mortality rates and life expectancy factors illustrated below apply to the valuation year and are projected to change in the future years. Sample Probability of Future Life Attained Dying Next Year Expectancy (years) Ages (in 2013) Men Women Men Women 50 0.17% 0.13% 34.17 35.58 55 0.28 0.24 29.05 30.61 60 0.55 0.47 24.13 25.84 65 1.06 0.91 19.53 21.35 70 1.82 1.57 15.35 17.24 75 3.15 2.53 11.58 13.52 80 5.65 4.19 8.38 10.22 This assumption is used to measure the probabilities of each benefit payment being made after retirement. For active members, the probabilities of dying before retirement were based upon the same mortality table as members dying after retirement. All deaths before retirement are assumed to be non-service connected. The rates of retirement used to measure the probability of eligible members retiring under normal and early retirement eligibility during the next year were as follows: GRS Normal or Early Reitrement/DROP Retirement Percent of Eligible Ages Employees Retiring 55 15% 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 City of Atlantic Beach General Employees' Retirement System 10% 10% 10% 10% 20% 15% 15% 15% 20% 30% 40% 50% 50% 50% 100% 9/30/2013 Actuarial Valuation I B-17 Rates of separation from active members/tip were as shown below (rates do not apply to members eligible to retire and do not include separation on account of death or disability). This assumption is used to yield the probabilities of members remaining in employment. Rates of Separation from Active Employment Sample Years of Ages Service Assumptions ALL 0 28.61% 20.78% 2 16.94% 3 11.67% 4 7.41% 25 5 & Over 3.70% 30 3.50% 35 3.20% 40 3.00% 45 2.70% 50 2.20% 55 2.00% 60 2.00% Rates of disability among active members (0% of disabilities are assumed to be service-connected). Sample Ages 20 25 30 35 40 45 50 55 60 Percent Becoming Disabled Within Next Year Men Women 0.07% 0.07% 0.09% 0.09% 0.10% 0.10% 0.14% 0.14% 0.21% 0.21% 0.32% 0.32% 0.52% 0.52% 0.92% 0.92% 1.53% 1.53% The mortality table was set forward ten years from the age at disability for projecting disability costs. GRS City of Atlantic Beach General Employees' Retirement System 9/30/2013 Actuarial Valuation I B-18 Administrative & Investment Expenses Benefit Service Decrement Operation Decrement Timing Eligibility Testing Forfeitures Incidence of Contributions Marriage Assumption Normal Form of Benefit Pay Increase Timing Service Credit Accruals Miscellaneous and Technical Assumptions Annual administrative expenses are assumed to be equal to the actual expenses paid during the preceding fiscal year. Investment expenses are offset against gross investment income. Assumed administrative expenses are added to the Normal Cost. Exact fractional service is used to determine the amount of benefit payable. Disability and mortality decrements do not operate during the first 5 years of service. Disability and separation do not operate during retirement eligibility. Decrements of all types are assumed to occur at mid-year. Eligibility for benefits is determined based upon the age nearest bi1thday and service nearest whole year on the date the decrement is assumed to occur. Vested members who terminate with a benefit wmth less than 100% of their own accumulated contributions were assumed to forfeit their vested benefit. Employer contributions are assumed to be received in 12 equal monthly installments. Member contributions are assumed to be received continuously throughout the year based upon the computed percent of payroll shown in this report, and the actual payroll payable at the time contributions are made. 80% of members are assumed to be married for purposes of death-in- service benefits. Male spouses are assumed to be three years older than female participants and female spouses are assumed to be three years younger than male participants for active member valuation purposes. The normal form of benefit is a life annuity. Beginning of fiscal year. This is equivalent to assuming that repmted pays represent the actual amount paid during the previous fiscal year. It is assumed that members accrue one year of service credit per year. GRS City of Atlantic Beach General Employees' Retirement System 9/30/2013 Actuarial Valuation I B-19 GLOSSARY OF TERMS Actuarial Accrued Liability The difference between (i) the actuarial present value of future plan benefits, and (ii) the actuarial present value of future normal cost. Sometimes referred to as "accrued liability" or "past service liability." Accrued Service The service credited under the plan which was rendered before the date of the actuarial valuation. Actuarial Assumptions Estimates of future plan experience with respect to rates of mortality, disability, turnover, retirement, rate or rates of investment income and salary increases. Decrement assumptions (rates of mortality, disability, turnover and retirement) are generally based on past experience, often modified for projected changes in conditions. Economic assumptions (salary increases and investment income) consist of an underlying rate in an inflation-free environment plus a provision for a long-term average rate of inflation. Actuarial Cost Method A mathematical budgeting procedure for allocating the dollar amount of the "actuarial present value of future plan benefits" between the actuarial present value of future normal cost and the actuarial accrued liability. Sometimes referred to as the "actuarial funding method." Actuarial Equivalent Actuarial Present Value Amortization Experience Gain (Loss) Normal Cost Reserve Account Unfunded Actuarial Accrued Liability Valuation Assets A single amount or series of amounts of equal value to another single amount or series of amounts, computed on the basis of the rate(s) of interest and mmiality tables used by the plan. The amount of funds presently required to provide a payment or series of payments in the future. It is determined by discounting the future payments at a predetermined rate of interest, taking into account the probability of payment. Paying off an interest-bearing liability by means of periodic payments of interest and principal, as opposed to paying it off with a lump sum payment. A measure of the difference between actual experience and that expected based upon a set of actuarial assumptions during the period between two actuarial valuation dates, in accordance with the actuarial cost method being used. The annual cost assigned, under the actuarial funding method, to current and subsequent plan years. Sometimes referred to as "current service cost." Any payment toward the unfunded actuarial accrued liability is not part of the normal cost. An account used to indicate that funds have been set aside for a specific purpose and is not generally available for other uses. The difference between the actuarial accrued liability and valuation assets. Sometimes referred to as "unfunded accrued liability." The value of current plan assets recognized for valuation purposes. Generally based on market value plus a portion of unrealized appreciation or depreciation. GRS City of Atlantic Beach General Employees' Retirement System 9/30/2013 Actuarial Valuation I B-20 SECTION C PENSION FUND INFORMATION ACTUARIAL VALUE OF ASSETS As of September 30, 2013 Valuation assets are calculated using a smoothed market value over a period of four ( 4) years, as prescribed under Internal Revenue Procedure 2000-40. The asset value determined under this method will be adjusted to be no greater than 120% and no less than 80% of the fair market value. Under this method, the actuarial value of assets is equal to the market value of assets less a decreasing fraction ( 1/nth per year, where n equals the number of years in the smoothing period) of the gain or loss for each of the preceding 3 years. Under this method, a gain or loss for a year is determined by calculating the difference between the expected market value of the assets at the valuation date and the actual market value of the assets at the valuation date. The expected value of the assets for the year is the market value of the assets at the valuation date for the prior year brought forward with interest at the valuation interest rate to the valuation date for the current year plus contributions minus disbursements (i.e., benefits paid and expenses), all adjusted with interest at the valuation rate to the valuation date for the current year. If the expected value is less than the market value, the difference is a gain. Conversely, if the expected value is greater than the market value, the difference is a loss. Calculation of Valuation Assets is shown on the following page. GRS City of Atlantic Beach General Employees' Retirement System 9/30/2013 Actuarial Valuation I C-4 DEVELOPMENT OF FUNDING VALUE OF ASSETS AS OF SEPTEMBER 30 2011 A. Preliminary actuarial value from prior year $ 10,618,038 $ B. Market value beginning of prior year 10,417,807 C. Market value end of prior year 10,448,470 D. Non-investment net cash flow [contributions-(benefits & expenses)] 279,399 E. Investment retnm I. Actual market value retnrn net of investment expenses: C -B -D (248,736) 2. Expected retnm of8.00% 844,600 3. Excess/( shortfall) to be phased-in: El -E2 (1,093,336) F. Phased-in recognition of investment retnrn (4 Year Recognition) I. Current year: 25% ofE3 (273,334) 2. 25% of excess/(shmtfall) from first prior year 52,867 3. 25% of excess/(shmtfall) from second prior year 43,244 4. 25% of excess/( shortfall) from third prior year (445,351) 5. Total phased-in recognition of investment retum (622,574) G. Actnarial value end of year I. Preliminary actuarial value end of year: A+ D+ E2+ F5 11,119,463 2. Upper corridor limit: 120% of C 12,538,164 3. Lower corridor limit: 80% ofC 8,358,776 4. Adjustment to reflect retroactive plan closure 5. Actuarial value end of year* 11,119,463 H. Difference between market value and actnarial value (670,993) I. Ratio of Funding Value to Market Value 106% *Offset for DROP Reserve made prior Ia the calculation of valuation assets. GRS **Reflects the Actuarial Impact Statement for Ordinance 58-13-37. City of Atlantic Beach General Employees' Retirement System 2012** 2013 2014 II, 119,463 $ 12,465,289 $ 13,815,833 10,448,470 12,693,827 13,770,711 12,693,827 13,770,711 490,441 343,020 ** 1,754,916 733,896 855,495 1,029,227 899,421 (295,331) 224,855 (73,833) (273,334) 224,855 (73,833) 52,867 (273,334) 224,855 43,244 52,867 (273,334) 47,632 (69,445) (122,312) 12,513,031 13,815,833 15,232,592 16,524,853 10,155,062 11,016,569 (47,742) 12,465,289 13,815,833 180,796 ( 45, 122) 99% 100% 9/30/20 13 Actuarial Valuation I C-5 SECTIOND FINANCIAL ACCOUNTING INFORMATION REQUIRED SUPPLEMENTARY INFORMATION GASB Statement No. 25 and No. 27 The infommtion presented in the required supplementary schedules was determined as part of the actuarial valuation at the dates indicated. Additional Information as of the latest actuarial valuation: GRS Valuation Date Contribution Rates: Employer Plan Members Actuarial Cost Method Amotiization Method Amortization Period Asset Valuation Method Actuarial Assumptions: Investment rate of return Projected salary increases Includes price inflation Cost-of-living adjustments Payroll Growth Assumption City of Atlantic Beach General Employees' Retirement System September 30, 2013 31.52% 6.00% Entry Age Closed, Level Dollar Method 10 Years See Section entitled "Actuarial Value of Assets" 8.0% 5.5%-14.0% 3.0% None None (Level Dollar Method) 9/30/2013 Actuarial Valuation I D-5 SECTIONE MISCELLANEOUS INFORMATION NUMBER ADDED TO AND REMOVED FROM ACTIVE MEMBERSHIP Number Added Terminations During Year Active Year Ended September 30 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013** 5-yr. Totals 2009-2013 Expected for 2014 During Year A E 12 11 12 6 14 17 7 6 9 8 7 10 12 11 12 10 10 14 10 11 8 7 7 6 6 2 4 7 6 7 8 7 Q Q 24 23 A Represents actual number. Normal Retirement A E 1 0.5 0 0.5 1 0.8 2 0.8 1 1.2 1 1.2 2 0.8 2 1.2 2 0.8 5 2.4 1 1.8 0 3.2 0 3.8 4 4.4 5 5.3 2 4.3 2 4.6 16 22.3 4.9 E Represents expected number. Disability Died-in Retirement Service A E A E 1 0.2 0 0.2 0 0.2 0 0.2 1 0.2 0 0.2 0 0.1 0 0.1 0 0.1 1 0.1 0 0.2 0 0.1 0 0.2 0 0.1 0 0.2 0 0.1 0 0.2 0 0.2 0 0.1 0 0.2 1 0.2 0 0.2 0 0.1 0 0.2 0 0.1 0 0.2 0 0.1 0 0.2 1 0.1 0 0.3 0 0.2 1 0.2 Q 0.2 Q 0.2 1 0.8 1 1.1 0.1 0.2 *Reflects the Actuarial Impact Statement for Ordinance 58-13-37. **No employees will be added following the closure of the plan. GRS City of Atlantic Beach General Employees' Retirement System Withdrawal Members Vested Other Total End of A A A E Year 2 7 9 8.2 76 0 6 6 8.3 82 0 15 15 8.3 79 0 4 4 7.5 70 1 5 6 7.6 71 2 7 9 8.1 68 0 9 9 10.8 84 1 7 8 10.0 86 1 11 12 9.4 82 0 6 6 8.5 81 1 4 5 8.1 82 1 5 6 7.8 83 1 1 2 6.9 87 0 3 3 6.8 84 1 0 1 5.7 83 2 2 4 4.8 63* Q 1 1 5.1 56 12 29.3 0.7 9/30/2013 Actuarial Valuation I E-3 Retired Members and Beneficiary Data Historical Schedule Added Removed Net Increase Year Ended Annual Annual Annual September 30 No. Pensions No. Pensions No. Pensions 1999 1 2,128 1 2,128 2000 6 78,522 3 32,513 3 46,009 2001 17,716 * I 17,716 2002 3 23,184 26,801 2 (3,617) 2003 2 32,159 5,889 26,270 2004 2 35,900 2 17,160 18,740 2005 3 47,505 5,774 2 41,730 2006 6 82,446 3 29,272 3 53,174 2007 3 51,425 3 51,425 2008 9,217 9,217 2009 2 17,424 2 5,992 11,432 2010 4 95,156 3 13,790 1 81,366 2011 9 105,409 1 14,326 8 91,083 2012 4 77,393 0 4 77,393 2013 6 160,587 1 12,284 5 148,303 Expected for 2014 * Includes a one-time 5. 0% cost-ofliving increase. GRS City of Atlantic Beach General Employees' Retirement System Expected End ofYear Removals Annual Annual No. Pensions No. Pensions 23 174,013 0.5 3,779 26 220,022 0.6 4,196 27 237,738 0.6 4,543 29 234,121 0.7 5,355 30 260,391 0.9 6,159 30 279,131 1.0 6,956 32 320,861 1.0 7,331 35 374,035 1.0 7,917 38 425,460 1.1 8,798 38 425,460 1.3 10,328 38 436,892 1.3 11,534 39 518,258 1.2 11,854 47 609,341 1.2 12,414 51 686,734 1.2 12,623 56 834,402 1.3 14,605 1.4 15,651 9/30/2013 Actuarial Valuation I E-4 SECTIONF SUMMARY OF PLAN PROVISIONS A. Ordinances: Plan established under the Code of Ordinances for the City of Atlantic Beach, Florida, Patt II, Chapter 2, Article VI, Division 3 and was most recently amended and restated under Ordinance No. 5 8-13-3 7 passed and adopted on June 10, 2013. The Plan is also governed by certain provisions ofPatt VII, Chapter 112, Florida Statutes (F.S.) and the Internal Revenue Code. B. Effective Date December 22, 1975 C. Plan Year October 1 through September 30 D. Type of Plan Qualified, governmental defined benefit retirement plan; for GASB purposes it is a sole employer plan. E. Eligibility Requirements The plan is currently closed to new entrants. Prior to closure, the plan included all City employees, other than police officers or firefighters, who normally worked more than I ,000 hours annually and who were not elected officials, temporary or contractual employees, or executives or depatiments heads that elected not to participate. They became members on the date of employment. F. Credited Service Service is measured as the total number of years and fractional pmts of years, but credited to the nearest one-twelfth (1/12) of a year. No service will be credited for any periods of employment for which the member received a refund of their employee contributions. G. Compensation Base salary or wages paid for services rendered to the City including longevity pay, ove1time pay, cost of living payments, holidays and personal leave taken. Compensation excludes payments of unused personal leave, uniform or equipment allowances, or any reimbursement of expenses. H. Final Average Compensation (FAC) Average monthly rate of Compensation during the highest 60 consecutive months of Credited Service out of the last 120 months preceding the date of termination or retirement. GRS City of Atlantic Beach General Employees' Retirement System 9/30/20 13 Actuarial Valuation I F -1 I. Normal Retirement Eligibility: Benefit: Normal Form of Benefit: A participant may retire on the first day of the month coincident with or next following age 60 with 5 or more years of Credited Service. For employees hired before April24, 2005: 2.85% ofFAC times Credited Service. Benefit is limited to 100% ofFAC. For employees hired on or after April 24, 2005: 2.50% ofF AC times Credited Service. Benefit is limited to 100% ofF AC. Life Annuity; other options are also available. J. Early Retirement Eligibility: Benefit: Normal Form of Benefit: A member may elect to retire earlier than the Normal Retirement Eligibility upon attainment of age 55 with 5 years of Credited Service. The Normal Retirement Benefit is actuarially reduced for each year by which the member's Early Retirement date precedes age 60. Life Annuity; other options are also available. K. Delayed Retirement Same as Normal Retirement taking into account compensation earned and service credited until the date of actual employment termination. L. Service Connected Disability Eligibility: Benefit: Normal Form of Benefit: Any member with 5 or more continuous years of Credited Service who becomes totally and permanently disabled and unable to render useful and efficient service to the City is eligible for a disability benefit. The benefit is calculated as if the member was eligible for Normal Retirement and is payable retroactively to the later of; the last day on payroll, or the date of application for disability benefits. Life Annuity; other options are also available. GRS City of Atlantic Beach General Employees' Retirement System 9/30/2013 Actuarial Valuation I F-2 M. Non-Service Connected Disability Eligibility: Benefit: Normal Form of Benefit: Any member with 5 or more continuous years of Credited Service who becomes totally and permanently disabled and unable to render useful and efficient service to the City is eligible for a disability benefit. The benefit is calculated as if the member was eligible for Normal Retirement and is payable retroactively to the later of; the last day on payroll, or the date of application for disability benefits. Life Annuity; other options are also available. N. Pre-Retirement Death Eligibility: Benefit: Normal Form of Benefit: Any member with 5 or more years of Credited Service is eligible for a death benefit. Upon the death of a member, the designated beneficiary shall be paid an actuarially reduced benefit based on one hundred (100) percent survivor pension notwithstanding that the member may not have satisfied the conditions for retirement. If there are no beneficiaries designated by the member, then a benefit shall be paid to the surviving spouse or, if no surviving spouse, a reduced benefit will be paid to the member's unmarried children. If spouse is receiving benefits described above, no children's benefits are payable. If spouse is not receiving benefits, children under age 19, or age 23 if a full time student, will receive equal shares of 50% of the member's Normal Retirement Benefit under the Life Annuity option based upon service and F AC as of the date of death. Payable for the life of the member's beneficiary or spouse. Children's benefits are payable until age 19 or age 23 if a full time student. 0. Post Retirement Death Benefit determined by the form of benefit elected upon retirement. P. Optional Forms In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are the 50%, 66 2/3%, 75% or 100% Joint and Survivor options. A Social Security option is also available for members retiring prior to the time they are eligible for Social Security retirement benefits. Q. Vested Termination Eligibility: Benefit: A participant has earned a non-forfeitable right to Plan benefits after the completion of 5 or more years of Credited Service. The benefit is the member's vested portion of the accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the Normal or Early Retirement date. GRS City of Atlantic Beach General Employees' Retirement System 9/30/2013 Actuarial Valuation I F-3 Vested Termination-Continued Normal Form of Benefit: Life Annuity; other options are also available. R. Refunds Eligibility: Benefit: Optionally, vested participants may also withdraw their contributions in lieu of the deferred benefits otherwise due. The member who terminates employment receives a lump-sum payment of their employee contributions with interest. S. Member Contributions 6% of Compensation T. Employer Contributions u. The amount determined by the actuary to pay the normal cost and an amortization of the unfunded actuarial accrued liabilities, along with employee contributions. Following are contribution rates per recent valuations: Contribution Year Beginning City Member Total 10/1/2009 14.84% 5.000% 19.84% 10/1/2010 16.60% 5.000% 21.60% 10/1/2011 24.53% 5.000% 29.53% 10/1/2012 26.34% 5.000% 31.34% I 0/112013 29.19% 6.000% 35.19% I 0/1/2014 31.59% 6.000% 37.59% Cost of Living Increases The plan does not provide for automatic post-retirement cost of living adjustments (COLA) of retiree benefits. V. Changes from Previous Valuation See the Discussion of Valuation Results Section of this report under the Revisions in Benefits heading. W. Gain-sharing benefits Not applicable. GRS City of Atlantic Beach General Employees' Retirement System 9/30/2013 Actuarial Valuation I F-4 X. Deferred Retirement Option Plan Eligibility: Benefit: Maximum Plan members are eligible for the DROP upon attainment of age 55 with 5 years of Credited Service. All members must make a written election to participate in the DROP. The member's Credited Service and F AC are frozen upon entry into the DROP. The monthly retirement benefit as described under Normal Retirement is calculated based upon the frozen Credited Service and F AC. Benefits for members entering the DROP prior to age 60 will be actuarially reduced for Early Retirement. DROP Period: 60 months Interest Credited: Normal Form of Benefit: Pmticipants' DROP account balances will be credited in accordance with the self-directed options selected by the participant who entered the program prior to July 1, 2013. For all other pmticipants, DROP account balances will be credited qumterly with interest based on Plan's net investment earnings for that qumter. Lump Sum or roll-over to a qualified retirement account. GRS City of Atlantic Beach General Employees' Retirement System 9/30/2013 Actuarial Valuation I F-5 SECTIONG COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS GRS AGENDA ITEM# 5B MARCH 10, 2014 Gabriel Roeder Smith & Company Consultants & Actuaries CITY OF ATLANTIC BEACH POLICE OFFICERS' RETIREMENT SYSTEM ACTUARIAL VALUATION REPORT SEPTEMBER 30, 2013 ANNUAL EMPLOYER CONTRIBUTION IS DETERMINED BY THIS VALUATION TO BE PAID IN THE EMPLOYER FISCAL YEAR ENDING SEPTEMBER 30, 2015 GRS January 22,2014 Gabriel Roeder Smith & Company Consllltonts & r\cm~rics The Board of Trustees City of Atlantic Beach Police Officers' Retirement System Atlantic Beach, Florida Dear Board Members: One East Brow.ll'd Blvd. Suite 50S Ft, LuHlerdalc, FL .lHOI-l!l7l lJ$4.527.1616 phone 954.525.0083 fax www.gabridrqed~r.cotn We are pleased to submit herein our September 30, 2013 Actuarial Valuation Repott for the City of Atlantic Beach Police Officers' Retirement System. The contribution results apply to the City's fiscal year ending September 30, 2015. This repott was prepared at the request of the Board of Trustees and is intended for use by the Pension Plan and those designated or approved by the Board of Trustees. This report may be provided to parties other than the Pension Plan only in its entirety and only with the permission of the Board of Trustees. The purpose of the valuation is to measure the Plan's funding progress, to determine the employer contribution rate for the fiscal year ending September 30, 2015 and to determine the actuarial information for Governmental Accounting Standards Board (GASB) Statements No. 25 and No. 27. This repott should not be relied on for any purpose other than the purpose described above. The developed findings included in this report consider data or other information through September 30, 2013. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as pmt of the natural operation of the methodology used for these measurements (such as the end of an amottization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. The scope of an actuarial valuation does not include an analysis of the potential range of such future measurements. The calculations are based upon assumptions regarding future events, which may or may not materialize. They are also based upon present and proposed plan provisions that are outlined in the report. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, or that conditions have changed since the calculations were made, you should contact the author of this repott prior to relying on information in the repott. The valuation was based upon information furnished by the City, concerning Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We checked for internal and year-to-year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or completeness of the information provided by the City. Furthermore, this report was prepared using certain assumptions prescribed by the Board as described in Section B. The Board of Tmstees January 22, 2014 Page 2 The undersigned actuaries are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The signing actuaries are independent of the plan sponsor. Gabriel, Roeder, Smith & Company will be pleased to answer questions pe1taining to the valuation and to meet with you to review this Repmi. Respectfully submitted, GABRIEL, ROEDER, SMITH AND COMPANY James J. Rizzo, ASA, MAAA Senior Consultant & Actuary Piotr Krekora, ASA, MAAA Consultant & Actuary Gabriel, Roeder, Smith and Company TABLE OF CONTENTS SECTION TITLE A EXECUTIVE SUMMARY B VALUATION RESULTS 1. Participant Data 2. Annual Required Contribution 3. Actuarial Value of Benefits and Assets 4. State Premium Tax Revenues 5. Financial Soundness 6. Actuarial Gains and Losses 7. Recent History of Valuation Results 8. Recent History of Required and Actual Contributions 9. Actuarial Assumptions and Cost Method C PENSION FUND INFORMATION 1. Summary of Assets 2. Summary of Fund's Income and Disbursements 3. Reconciliation of DROP Accounts 4. Actuarial Value of Assets 5. Investment Rate of Return D FINANCIAL ACCOUNTING INFORMATION 1. F ASB No. 35 2. GASB No. 25 3. GASB No. 27 E MISCELLANEOUS INFORMATION F G 1. Reconciliation of Membership Data 2. Statistical Data SUMMARY OF PLAN PROVISIONS COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS A-1 B-1 B-2 B-3 B-4 B-5 B-9 B-13 B-15 B-16 C-1 C-2 C-3 C-4 C-6 D-1 D-2 D-4 E-1 E-2 F-1 G-1 Circular 230 Notice: Pursuant to regulations issued by the IRS, to the extent this communication (or any attachment) concerns tax matters, it is not intended or >vritten to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) marketing or recommending to another party any tax-related matter addressed within. Each taxpayer should seek advice based on the individual's circumstances from an independent tax advisor. GRS SECTION A EXECUTIVE SUMMARY GRS Revisions in Benefits The following benefit changes apply to new entrants who enter the plan on or after January I, 2013: • Normal Retirement eligibility has been changed to the earlier of (i) Age 55 with 10 years of Credited Service and (ii) Age 52 with 25 years of Credited Service. • The benefit accrual rate has been lowered from 3.0% to 2.0% per year. • The vesting schedule has been increased from a 5 year cliff to a IO year cliff. • Employee Contribution rate has been increased to 8%. In addition, results for the prior year have been updated to reflect the most recent actuarial impact statement for Ordinance Number 58-13-36. Plan changes resulting from the ordinance include a gradual increase in the employee contribution rate until it reaches 8.0% for years beginning October I, 20I4, an increase in the non- service connected disability eligibility requirement from 5 years to 8.3333 years and a limit of 300 hours of overtime to be included in pensionable compensation. There were no changes in benefits for retirees and vested terminated employees as of the effective date of the ordinance. Revisions in Actuarial Assumptions or Methods There were no revisions in actuarial assumptions or methods for the current year, except for the assumed employee contribution rate which is currently at 7.0% as adopted in Ordinance 58-I3-36 described above and scheduled to increase to 8% after September 30, 20I4. Actuarial Experience Actuarial gains occur in a year whenever the experience of the plan is better than was assumed. For example, if investment performance were better than the level being assumed in the actuarial valuation and costing process, then an actuarial gain results and would have the effect of lowering the Minimum Required Contribution for the year. Whenever more employees terminate employment than were assumed would terminate, fewer employees are then expected to actually retire from the City, resulting in an actuarial gain for the plan. Actuarial losses occur in a year whenever the experience of the plan is worse than was assumed. In the examples given above, if the reverse were to occur, then actuarial losses would result. As another example, if salaries increased in one year were higher than assumed, an actuarial loss would occur. The actuarial valuation cost method which determines the Minimum Required Contribution is designed to produce contribution requirements which remain level as a percent of payroll whenever the experience of the plan matches the actuarial assumptions used. Contribution Requirements are also level whenever actuarial losses exactly offset actuarial gains. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I A-2 Analysis of Change in Employer Contribution The components of change in the actuarially required contribution are as follows: Contribution rate last year 35.47 % Payment on UAAL 7.57 Experience (gain)/loss (1.89) Change in administrative expense 0.33 Change in normal cost before expenses 0.27 Revision in benefits 0.00 Revision in assumptions/methods 0.00 Change in State Revenue (0.89) Contribution rate this year 40.85 % Although the plan experienced a net actuarial gain, the contribution determined in this valuation increased slightly from last year as discussed below. The gain was primarily due to lower than expected salary increases of 2.3% versus a 7.5% assumption. The gain was pmiially offset by losses from an investment return of 7.5% on the actuarial value of assets when compared to the 8.0% assumption. Administrative expenses were more than the previous year by 0.33% of pay. The dollar amount of the State Revenue is expected to increase slightly and due to a recent payroll reduction it will represent a larger percentage of the projected payroll. There was a decrease in the IO-year average payroll growth rate (from 2.62% to 1.88%). The covered payroll is expected to grow at the rate of 4% in the long term. However, in accordance with the requirements of Ch. II2.64 (5) (a), F.S. this assumed payroll growth used in developing the amortization payments, cannot exceed the actual average mmual payroll growth rate based on the last I 0 years. This limit has been affecting amortization amounts for the last three years. Due to a decrease in the I 0-year average, the ammiization payment of the UAAL increased this year, adding to the actuarial losses described previously, which ultimately increased the contribution. In addition, the decrease in the payroll caused the payment of the UAAL to be a greater percent of payroll. The remainder of this Repmi includes detailed actuarial valuation results, financial information, miscellaneous information and statistics, and a summmy of plan provisions. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I A-3 SECTION B VALUATION RESULTS STATE PREMIUM TAX REVENUES A. Accumulated Excess Premium Tax Revenues at the Beginning of the Year B. Chapter 185 Receipts During Fiscal Year Ending 9/30/2013 C. Chapter 185 "Frozen" Receipts During Fiscal Year Ending 9/30/1998 D. QualifYing Benefit Improvements Since Chapter 99-1 Effective Date E. Excess 185 Receipts During Fiscal Year Ending 9/30/2013* F. Accumulated Excess Premium Tax Revenues as of9/30/2013 not less than beginning of the year. Minimum Compliance ($18,517) A. Early retirement eligibility at 50 & 10 B. Normal retirement eligibility at 55 & 10 C. 10 year certain and life normal fmm Year Ending 9/30/2013 Cumulative $ 120,454 $ 91,077 1,417,767 70,289 1,115,363 18,517 185,170 0 120,454 Potential Future Benefits Extra Benefits A. None proposed *Note: During the Fiscal Year ended 9/30/2013, "Chapter 185 receipts" totaled $91,077. This amount is greater than the base amount of State premium tax moneys that was available in the past to be used by the City to satisfY pmt of the Annual Required Contribution. However, per the current interpretation of the law, subject to an actuarial certification, the City has now access to all Chapter 185 revenue to fund contribution requirements and consequently there was no increase in the Accumulated Excess Premium Tax Revenues (item E above). Note: Cumulative amounts presented in the I 0/1/2012 repmt inadvertently omitted 2011 additions. Amounts presented above have been developed by correcting this omission. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I B-4 ACTUARIAL ASSUMPTIONS AND COST METHOD Valuation Methods Actuarial Cost Method -The actuarial cost method is a procedure for allocating the actuarial present value of benefits and expenses to time periods. Normal cost and the allocation of benefit values between service rendered before and after the valuation date were determined using the Entry-Age Actuarial Cost Method. The entry-age actuarial cost method allocates the actuarial present value of each member's projected benefits on a level basis over the member's pensionable compensation between the entry age of the member and the estimated active status exit ages. The portion of the actuarial present value allocated to the valuation year is called the normal cost. The portion of the actuarial present value not provided for by the actuarial present value of future normal costs is called the actuarial accrued liability. Deducting accrued assets from the actuarial accrued liability determines the unfunded actuarial accrued liability. Financing of Unfunded Actuarial Accrued Liabilities-The unfunded actuarial accrued liability was financed as a level percent of member payroll. Actuarial Value of Assets-The Actuarial Value of Assets phases in the difference between the expected and actual return on market value of assets at the rate of 25% per year. The Actuarial Value of Assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the Market Value of plan assets and whose upper limit is 120% of the Market Value of plan assets. During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than Market Value. During periods when investment performance is less than assumed rate, Actuarial Value of Assets will tend to be greater than Market Value. Valuation Assumptions The actuarial assumptions used in the valuation are shown in this Section. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I B-16 Economic Assumptions The investment return rate assumed in the valuations is 8.00% per year, compounded annually (net of investment expenses). The price inflation rate assumed in this valuation was 3% per year. The plan does not provide for automatic post-retirement cost of living adjustments (COLA) of retiree benefits. Ad-hoc COLA increases have been adopted in the past upon approval by the City. Most recently, such increases have been granted in 1987, 1996 and 2001. No assumptions are made regarding future adjustments. Any such increases will be recognized as they occur. The payroll growth rate would be 4%, except that it is limited this year due the lower actual payroll growth rate over the last I 0 years in accordance with the requirements of Ch. 112.64 (5) (a), F.S. The rate used to amortize the unfunded actuarial accrued liabilities is 1.88% per year. The total rate of return is defined as earnings resulting from interest, dividends, realized gains (losses) and unrealized appreciation (depreciation) divided by the beginning market value of the fund, adjusted for cash flow during the year. Total rate of return is as the assumed to be 8.00% per year, net of investment-related expenses. The rates of salary increases used in the valuation are illustrated in the following table. GRS Annual Rates for Salary Increase for Sample Ages Age: Expected Increase City of Atlantic Beach Police Officers' Retirement System 20 30 23.0% 9.8% 40 50 60 6.6% 5.7% 5.0% 9/30/2013 Actuarial Valuation I B-17 Demographic Assumptions The mortality rates used were taken from the gender specific RP-2000 Combined Healthy Participant Mortality Tables for males and females, with generational projections from the year 2000 Projection Scale AA. Sample mortality rates and life expectancy factors illustrated below apply to the valuation year and are projected to change in the future years. Sample Probability of Future Life Attained Dying Next Year Expectancy (years) Ages (in 2013) Men Women Men Women 50 0.17% 0.13% 34.17 35.58 55 0.28 0.24 29.05 30.61 60 0.55 0.47 24.13 25.84 65 1.06 0.91 19.53 21.35 70 1.82 1.57 15.35 17.24 75 3.15 2.53 11.58 13.52 80 5.65 4.19 8.38 10.22 This assumption is used to measure the probabilities of each benefit payment being made after retirement. For active members, the probabilities of dying before and after retirement were based upon the same mortality table as members dying after retirement. All deaths before retirement are assumed to be non-service connected. The rates of retiremeut used to measure the probability of eligible members retiring under normal and early retirement eligibility during the next year were as follows: GRS Normal Retirement/DROP Retirement Ages 45 46 47 48 49 50 51 52-58 59 60 61-64 65 City of Atlantic Beach Police Officers' Retirement System Percent of Eligible Employees Retiring 40% 10% 10% 10% 40% 50% 50% 50% 50% 50% 50% 100% 9/30/2013 Actuarial Valuation I B-18 Early Retirement/DROP Retirement Percent of Eligible Ages Employees Retiring 50 10% 51 10% 52 10% 53 10% 54 10% Rates of separation from active membership were as shown below (rates do not apply to members eligible to retire and do not include separation on account of death or disability). This assumption is used to model the probabilities of members remaining in employment. Rates of Separation from Active Employment Sample Ages ALL 25 30 35 40 45 50 55 60 Years of Service 0 2 3 4 5 & Over Assumptions 34.00% 23.00% 16.00% 12.00% 9.00% 5.88% 5.32% 4.40% 3.70% 3.20% 2.40% 1.40% 1.00% Rates of Disability among after members Percent Becoming Disabled Within Next Year Sample Ages Men Women 20 0.14% 0.14% 25 0.15% 0.15% 30 0.18% 0.18% 35 0.23% 0.23% 40 0.30% 0.30% 45 0.51% 0.51% 50 1.00% 1.00% 55 1.55% 1.55% 60 0.00% 0.00% The mortality table was set forward ten years for projecting disability costs. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I B-19 Miscellaneous and Technical Assumptions Administrative & Investment Expenses Benefit Service Decrement Operation Decrement Timing Eligibility Testing Fmfeitures Incidence of Contributions Marriage Assumption Normal Form of Benefit Pay Increase Timing Service Credit Accruals Annual administrative expenses are assumed to be equal to the actual expenses paid during the preceding fiscal year. Investment expenses are offset against gross investment income. Assumed administrative expenses are added to the Normal Cost. Exact fractional service is used to determine the amount of benefit payable. Disability and mortality decrements do not operate during the first 5 years of service. Disability and separation do not operate during retirement eligibility. Decrements of all types are assumed to occur mid year. Eligibility for benefits is determined based upon the age nearest birthday and service nearest whole year on the date the decrement is assumed to occur. Vested members who terminate with a benefit worth less than 100% of their own accumulated contributions were assumed to forfeit their vested benefit. Employer contributions are assumed to be received in 12 equal monthly installments. Member contributions are assumed to be received continuously throughout the year based upon the computed percent of payroll shown in this report, and the actual payroll payable at the time contributions are made. 80% of members are assumed to be married for purposes of death-in- service benefits. Male spouses are assumed to be three years older than female participants and female spouses are assumed to be three years younger than male participants for active member valuation purposes. The normal form of benefit is a life annuity with I 0 year certain. Beginning of fiscal year. This is equivalent to assuming that reported pays represent the actual amount paid during the previous fiscal year. It is assumed that members accrue one year of service credit per year. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I B-20 GLOSSARY OF TERMS Actuarial Accrued Liability The difference between (i) the actuarial present value of future plan benefits, and (ii) the actuarial present value of future normal cost. Sometimes referred to as "accrued liability" or "past service liability." Accrued Service The service credited under the plan which was rendered before the date of the actuarial valuation. Actuarial Assumptions Estimates of future plan experience with respect to rates of mortality, disability, turnover, retirement, rate or rates of investment income and salary increases. Decrement assumptions (rates of mortality, disability, turnover and retirement) are generally based on past experience, often modified for projected changes in conditions. Economic assumptions (salary increases and investment income) consist of an underlying rate in an inflation-free environment plus a provision for a long-term average rate of inflation. Actuarial Cost Method A mathematical budgeting procedure for allocating the dollar amount of the "actuarial present value of future plan benefits" between the actuarial present value of future normal cost and the actuarial accrued liability. Sometimes referred to as the "actuarial funding method." Actuarial Equivalent Actuarial Present Value Amortization Experience Gain (Loss) Normal Cost Reserve Account Unfunded Actuarial Accrued Liability Valuation Assets A single amount or series of amounts of equal value to another single amount or series of amounts, computed on the basis of the rate(s) of interest and mortality tables used by the plan. The amount of funds presently required to provide a payment or series of payments in the future. It is determined by discounting the future payments at a predetermined rate of interest, taking into account the probability of payment. Paying off an interest-bearing liability by means of periodic payments of interest and principal, as opposed to paying it off with a lump sum payment. A measure of the difference between actual experience and that expected based upon a set of actuarial assumptions during the period between two actuarial valuation dates, in accordance with the actuarial cost method being used. The annual cost assigned, under the actuarial funding method, to current and subsequent plan years. Sometimes referred to as "current service cost." Any payment toward the unfunded actuarial accrued liability is not part of the normal cost. An account used to indicate that funds have been set aside for a specific purpose and is not generally available for other uses. The difference between the actuarial accrued liability and valuation assets. Sometimes referred to as "unfunded accrued liability." The value of current plan assets recognized for valuation purposes. Generally based on market value plus a portion of unrealized appreciation or depreciation. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I B-21 SECTION C PENSION FUND INFORMATION ACTUARIAL VALUE OF ASSETS As of September 30, 2013 Valuation assets are calculated using a smoothed market value over a period of four ( 4) years, as prescribed under Internal Revenue Procedure 2000-40. The asset value determined under this method will be adjusted to be no greater than 120% and no less than 80% of the fair market value. Under this method, the actuarial value of assets is equal to the market value of assets less a decreasing fi·action (1/nth per year, where n equals the number of years in the smoothing period) ofthe gain or loss for each of the preceding 3 years. Under this method, a gain or loss for a year is determined by calculating the difference between the expected market value of the assets at the valuation date and the actual market value of the assets at the valuation date. The expected value of the assets for the year is the market value of the assets at the valuation date for the prior year brought forward with interest at the valuation interest rate to the valuation date for the current year plus contributions minus disbursements (i.e., benefits paid and expenses), all adjusted with interest at the valuation rate to the valuation date for the current year. If the expected value is less than the market value, the difference is a gain. Conversely, if the expected value is greater than the market value, the difference is a loss. Calculation of Valuation Assets is shown on the following page. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I C-4 DEVELOPMENT OF FUNDING VALUE OF ASSETS AS OF SEPTEMBER 30 2011 A. Preliminary actuarial value from prior year $ 6,164,269 B. Market value beginning of prior year 6,010,957 C. Market value end of prior year 6,056,405 D. Non-investment net cash flow [ contributions-(benefits & expenses)] 7,860 E. Investment return I. Actual market value return net of investment expenses: C -B -D 37,588 2. Expected return of 8.00% 481,191 3. Excess/( shortfall) to be phased-in: El -E2 (443,603) F. Phased-in recognition of investment return (4 Year Recognition) I. Current year: 25% ofE3 (1 10,901) 2. 25% of excess/(shmtfall) from first prior year 38,538 3. 25% of excess/( shortfall) from second prior year 6,855 4. 25% of excess/( shortfall) from third prior year (282,636) 5. Total phased-in recognition of investment return (348,144) G. Actuarial value end of year I. Preliminary actuarial value end of year: A+ D + E2 + F5 6,305,176 2. Upper corridor limit: 120% of C 7,267,686 3. Lower corridor limit: 80% ofC 4,845,124 4. Actuarial value end of year * 6,305,176 H. Difference between market value and actuarial value (248,771) I. Ratio of Funding Value to Market Value 104% * Offset for DROP Reserve made prior to the calculation of valuation assets. GRS City of Atlantic Beach Police Officers' Retirement System 2012 2013 2014 $ 6,305,176 $ 6,880,124 $ 7,428,849 6,056,405 6,934,693 7,331,629 6,934,693 7,331,629 73,718 33,969 804,570 362,967 487,461 556,134 317,109 (193,167) 79,277 (48,292) (I 10,901) 79,277 (48,292) 38,538 (110,901) 79,277 6,855 38,538 (I 10,901) 13,769 (41,378) (79,916) 6,880,124 7,428,849 8,321,632 8,797,955 5,547,754 5,865,303 6,880,124 7,428,849 54,569 (97,220) 99% 101% 9/30/2013 Actuarial Valuation I C-5 SECTION D FINANCIAL ACCOUNTING INFORMATION REQUIRED SUPPLEMENTARY INFORMATION GASB Statement No. 25 and No. 27 The information presented in the required supplementary schedules was determined as part of the actuarial valuation at the dates indicated. Additional Information as of the latest actuarial valuation: GRS Valuation Date Contribution Rates: Employer Plan Members Actuarial Cost Method Amortization Method Equivalent Single Amortization Period Asset Valuation Method Actuarial Assumptions: Investment rate of return Projected salary increases Includes price inflation Cost-of-living adjustments Payroll Growth Assumption City of Atlantic Beach Police Officers' Retirement System September 30, 2013 40.86% 7.0% Entry Age Closed, Level % of Pay Method 11.01 Years See Section entitled "Actuarial Value of Assets" 8.0% 5.0%-23.0% 3.0% None 1.88% 9/30/2013 Actuarial Valuation I D-5 SECTION E MISCELLANEOUS INFORMATION NUMBER ADDED TO AND REMOVED FROM ACTIVE MEMBERSHIP Year Ended September 30 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 5-yr. Totals 2009-2013 Expected for 2014 Number Added During Year A E 3 6 9 4 3 4 2 4 4 3 5 4 5 4 3 3 3 4 2 2 Q 1 13 17 A Represents actual number. Normal Retirement A E 0 0.1 0 0.3 2 0.6 1 1.0 1 0.2 I 0.1 I 0.1 0 0.4 2 1.0 I 1.0 ! 1.0 5 3.5 0.4 E Represents expected number. Terminations During Year Disability Died-in Withdrawal Retirement Service Vested Other Total A E A E A A A E I 0.1 0 0.0 2 3 5 1.3 0 0.0 0 0.0 2 2 4 1.1 0 0.0 0 0.0 I I 2 1.9 0 0.0 0 0.0 I 2 3 1.8 0 0.0 0 0.0 0 2 2 1.5 0 0.0 0 0.0 0 3 3 1.6 0 0.0 0 0.0 0 3 3 1.6 1* 0.0 0 0.0 1* 1 3 1.4 0 0.0 0 0.0 0 2 2 2.5 0 0.1 0 0.0 0 I I 2.5 Q 0.1 Q 0.0 Q ~ ~ 2.5 I 0.2 0 0.0 12 10.4 0.1 0.0 2.2 *Member retroactively approved for duty disability benefits (previously reported as vested terminated) Active Members End of Year 22 27 26 24 25 26 27 27 26 26 22 GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I E-3 Retired Members and Beneficiary Data Historical Schedule** Added Removed Net Increase September 30 No. Pensions No. Pensions No. Pensions 2003 2 30,148 2 30,148 2004 2005 2 I 06,731 2 106,731 2006 34,521 9,796 0 24,724 2007 43,455 43,455 2008 2 63,781 2 63,781 2009 2010 6,319 * I 14,935 (8,616) 2011 2 84,469 0 2 84,469 2012 2 68,629 * 0 2 68,629 2013 1 48,017 * 0 1 48,017 Expected for 2014 * One-time adjustment correcting past undmpayments ** Includes member retroactively approved for duty disabililty GRS City of Atlantic Beach Police Officers' Retirement System Expected End ofYear Removals No. Pensions No. Pensions 11 235,310 0.1 2,072 11 235,310 0.2 2,683 13 342,041 0.2 2,933 13 366,765 0.2 3,809 14 410,220 0.2 3,922 16 474,001 0.2 4,510 16 474,001 0.2 5,200 15 465,385 0.2 5,200 17 549,854 0.2 5,200 21 618,483 0.3 5,761 22 666,500 0.2 4,950 0.2 5,547 9/30/2013 Actuarial Valuation I E-4 SECTION F SUMMARY OF PLAN PROVISIONS A. Ordinances: Plan established under the Code of Ordinances for the City of Atlantic Beach, Florida, Part II, Chapter 2, Article VI, Division 4 and was most recently amended and restated under Ordinance No. 58-13-36 passed and adopted on June 10, 2013. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida Statutes (F.S.), F. S. 185 and the Internal Revenue Code. B. Effective Date December 22, 1975, Restated under Division 4 on July 10, 2000 C. Plan Year October 1 through September 30 D. Type of Plan Qualified, governmental defined benefit retirement plan; for GASB purposes it is a sole employer plan. E. Eligibility Requirements All full time sworn City police officers, who normally work more than 1,000 hours annually and are not an elected officials, temporary or contractual employees, or executives or departments heads who have elected not to pmiicipate, will become members on the date of employment. F. Credited Service Service is measured as the total number of years and fractional parts of years, but credited to the nearest one-twelfth (1/12) of a year. No service will be credited for any periods of employment for which the member received a refund of their employee contributions. G. Compensation Base salary or wages paid for services rendered to the City including longevity pay, overtime pay not to exceed 300 hours, cost of living payments, holiday and personal leave taken and incentive pay. Compensation excludes payments of unused personal leave, uniform or equipment allowances, extra duty or special detail pay on behalf of a second party employer, or any reimbursement of expenses. H. Final Average Compensation (FAC) Average monthly rate of Compensation during the highest 60 consecutive months of Credited Service out of the last 120 months preceding the date of termination or retirement. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I F-1 I. Normal Retirement Eligibility: Benefit: Normal Form of Benefit: For members hired prior to January 1, 2013 A participant may retire on the first day of the month coincident with or next following the earlier of: (1) 25 years of Credited Service regardless of age, or (2) age 50 with 20 years of Credited Service, or (3) age 55 with 10 years of Credited Service, or ( 4) age 60 with 5 years of Credited Service. For members hired on or after January 1, 2013 A participant may retire on the first day of the month coincident with or next following the earlier of: (1) Age 55 with 10 years of Credited Service, or (2) age 52 with 25 years of Credited Service. For members hired prior to January 1, 2013 3.00% ofFAC times Credited Service. Benefit is limited to 100% ofFAC. For members hired on or after January 1, 2013 2.00% ofFAC times Credited Service. Benefit is limited to 100% ofFAC. 10 Years Certain and Life thereafter; other options are also available. J. Early Retirement Eligibility: Benefit: Normal Form of Benefit: A member may elect to retire earlier than the Normal Retirement Eligibility upon attainment of age 50 with 10 years of Credited Service. The Normal Retirement Benefit is actuarially reduced by 3% for each year by which the member's Early Retirement date precedes the member's normal retirement age. 10 year certain and life thereafter; other options are also available. K. Delayed Retirement Same as Normal Retirement taking into account compensation earned and service credited until the date of actual employment termination. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I F-2 L. Service Connected Disability Eligibility: Benefit: Normal Form of Benefit: Any member who becomes totally and permanently disabled due to a service related injmy or illness and is deemed unable to render useful and efficient service to the City as a police officer is eligible for a disability benefit. The benefit is calculated as if the member was eligible for Normal Retirement and is payable retroactively to the later of; the last day on payroll, or the date of application for disability benefits. The minimum for a service connected disability benefit is 42% ofF AC. 1 0 year ce1iain and life thereafter. M. Non-Service Connected Disability Eligibility: Benefit: Normal Form of Benefit: Any member with 8 1/3 or more years of Credited Service who becomes totally and permanently disabled and is deemed unable to render useful and efficient service to the City as a police officer is eligible for a disability benefit. The benefit is calculated as if the member was eligible for Normal Retirement and is payable retroactively to the later of; the last day on payroll, or the date of application for disability benefits. The minimum for a non-service connected disability benefit is 25% of F AC if the member had at least 8 1/3 years of Credited Service. 10 year certain and life thereafter. N. Pre-Retirement Death Eligibility: Benefit: Normal Form of Benefit: Any member with 5 or more years of Credited Service is eligible for a death benefit. Upon the death of a member, the designated beneficiary shall be paid an actuarially reduced standard ten (10) year certain and life survivor pension notwithstanding that the member may not have satisfied the conditions for retirement. If there are no beneficiaries designated by the member, then a benefit shall be paid to the surviving spouse or, if no surviving spouse, a reduced benefit will be paid to the member's unmarried children. If spouse is receiving benefits described above, no children's benefits are payable. If spouse is not receiving benefits, children under age 19, or age 23 if an unmarried fulltime student, will receive equal shares of 50% of the member's Normal Retirement Benefit under the Life Annuity option based upon service and F AC as of the date of death. Payable for the life of the member's beneficiary or spouse. Children's benefits are payable until age 19 or age 23 if an unmarried full time student. 0. Post Retirement Death GRS Benefit determined by the form of benefit elected upon retirement. City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I F-3 P. Optional Forms In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are a Life Annuity, or the 50%, 66 2/3%, 75% or 100% Joint and Survivor options. A Social Security option is also available for members retiring prior to the time they are eligible for Social Security retirement benefits. Q. Vested Termination Eligibility: Benefit: Normal Form of Benefit: For members hired prior to January 1, 2013 A participant has earned a non-forfeitable right to Plan benefits after the completion of 5 or more years of Credited Service. For members hired on or after January 1, 2013 A pmiicipant has earned a non-forfeitable right to Plan benefits after the completion of 10 or more years of Credited Service The benefit is the member's vested pmiion of the accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the Normal Retirement date. I 0 year certain and life thereafter; other options are also available. Member's terminating employment with less than 5 years of Credited Service will receive a refund of their own accumulated contributions. R. Refunds Eligibility: Benefit: All non-vested members are eligible. Optionally, vested participants may also withdraw their contributions in lieu of the deferred benefits otherwise due. Vested members may delay withdrawal of funds for up to five years. The member who terminates employment receives a lump-sum payment of their employee contributions with interest. S. Member Contributions 7% as of October I, 2013 and increasing to 8% as of October 1, 20 14. T. Premium Tax Monies A distribution of casualty insurance premium tax monies collected by the State pursuant to Chapter 185 Florida Statutes. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I F-4 U. Employer Contributions v. The amount determined by the actuary to pay the normal cost and an amortization of the unfunded actuarial accrued liabilities, along with employee contributions and Chapter 185 monies. Following are contribution rates per recent valuations: Plan Year Beginning City Sec 185 Member Total 10/1/2008 16.44% 5.49% 4.815% 26.75% 10/1/2009 21.07% 5.55% 4.815% 31.44% 10/1/2010 21.66% 4.83% 4.815% 31.31% 10/1/2011 31.07% 5.11% 4.815% 41.00% 10/1/2012 30.13% 5.21% 5.111% 40.45% 10/1/2013 35.47% 5.57% 6.000% 47.04% Cost of Living Increases The plan does not provide for automatic post-retirement cost of living adjustments (COLA) of retiree benefits. W. Changes from Previous Valuation See the Discussion of Valuation Results Section of this report under the Revisions in Benefits heading. X. Gain-sharing benefits Not applicable. Y. Deferred Retirement Option Plan Eligibility: Benefit: Maximum DROP Period: Interest Credited: Normal Fonn of Benefit: Upon obtaining Normal or Early Retirement eligibility. All members must make a written election to participate in the DROP. The member's Credited Service and FAC are frozen upon entry into the DROP. The monthly retirement benefit as described under Normal Retirement is calculated based upon the frozen Credited Service and F AC. Benefits for members entering the DROP upon Early Retirement eligibility will be actuarially reduced as described for Early Retirement. 60 months Pmticipants' DROP account balances will be credited in accordance with the self-directed options selected by the pmticipant who entered the program prior to July 1, 2013. For all other pmticipants, DROP account balances will be credited qumterly with interest based on Plan's net investment earnings for that quarter. Lump Sum or roll-over to a qualified retirement account. GRS City of Atlantic Beach Police Officers' Retirement System 9/30/2013 Actuarial Valuation I F-5 SECTION G COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS STAFF REPORT City of Atlantic Beach Commission Meeting AMENDED AGENDA ITEM# 6A MARCH 10,2014 AGENDA ITEM: Resolution for Florida Inland Navigation District (FIND) Grant Applications SUBMITTED BY: Rick Carper, P.E., Public Works Director ;2..C- DATE: February 20, 2014 STRATEGIC PLAN LINK: Goal12 Marsh Master Plan Improvements-directly related to goal of increasing access and usage of City Marsh Preserves. BACKGROUND: Proposed FIND Grant Projects: Marsh Preserves Launch, Fishing & Public Access Improvements, Phase 2-Construction- Estimated Total Costs-$250,000 City Match: $125,000 Marsh Preserves Multipurpose_Path, Phase 2-Construction of Initial Segment 1- Estimated Total Cost for first segment-$450,000 City Match: $225,000 The Preserve Parks, encompassing more than 400 acres of wetlands and marshes located on or adjacent to the Intracoastal Waterway (ICW), currently have observation platforms, a fishing pier, floating docks, restrooms, and education kiosks and pavilions. These parks are part of a paddling trail system for canoes and kayaks, and also have foot trails for nature observation and studies. The purpose of these projects is to expand public access to recreational and educational areas. The proposed kayak/canoe launch will provide additional ADA access directly to the ICW and its adjoining waterways north of Dutton Island. The viewing/fishing piers provide the opportunity to view and access the associated ICW marshes for environmental education, nature observation and fishing for residents and users that have not had access in the past. The Marsh Preserves Pedestrian Path will provide a handicap accessible, walking or biking path from Tideviews Preserve to Dutton Island Road with direct access to AB and COJ's Dutton Island Preserves. It will provide more access to and from the City's facilities, and will enhance the interrelationship between the Atlantic Beach Marsh Preserves, COJ's Dutton II and the Florida Circumnavigational Saltwater Paddling Trail. The Pedestrian Path project will be accomplished over multiple years with planning, engineering, permitting beginning soon with the award of the Design Contract to Hanson Professional Services, and construction as Phase 2 (will have multiple phases of construction as budget permits). As a result, the City will budget the match funding over the course of several years. "Bed Tax" money is an acceptable source to match the grant funding, and staff recommends utilizing "Bed Tax" funding for this purpose as shown in the current Long Range Financial Plan. However, if the "Bed Tax" funding is not sufficient to cover the full match, then the General Fund will serve as a fallback source. AMENDED AGENDA ITEM# 6A MARCH 10,2014 The Florida Inland Navigation District requires a resolution (see attachment) to be submitted with the application for funding, and the application is required to be submitted by Aprill, 2014. BUDGET: This resolution states that the City is committed to providing $125,000 to match a FIND Grant to construct a canoe I kayak launch at the north end of Dutton Island Preserve and two marsh overlooks, and $225,000 for construction of Segment 1 of the Marsh Pedestrian Path. Funds will be requested in the 2014-2015 budget to be approved later this year. RECOMMENDATIONS: Approve the attached resolution and authorize the City Manager to sign the applications for the Florida Inland Navigation Districts Waterways Assistance Program grants. ATTACHMENTS: Resolution 14-03 ' REVIEWED BY CITY MANAGER: -PZ (/--7 C:C.:W ATTACHMENT E-6 RESOLUTION No. 14-03 FOR ASSISTANCE 2014 UNDER THE FLORIDA INLAND NAVIGATION DISTRICT WATERWAYS ASSISTANCE PROGRAM WHEREAS, THE City of Atlantic Beach is interested in carrying out the following described projects for the enjoyment of the citizenry of Atlantic Beach and the State of Florida: AMENDED AGENDA ITEM# 6A MARCH 10,2014 Project Title Marsh Preserves Launch, Fishing & Public Access Improvements Phase 2 Total Estimated Cost$ 250,000 Brief Description of Project: Phase 2 is the construction of the Marsh Preserves Launch, Fishing & Public Access Improvements (Phase 1, previously approved by FIND included design, engineering and permitting). The improvements will include a new accessible non-motorized boat launch on the northern tip of Dutton Island with associated walkways and boardwalks; a new viewing/fishing pier that is ADA accessible near the existing Dutton Island entrance; and a new viewing/fishing pier on the east side of River Branch Preserve to provide direct access to the Marsh Preserves from the surrounding residential area. AND, Project Title Marsh Preserves Multipurpose Trail Phase 2 Total Estimated Cost-Phase 2A-$450,000 is for construction oflnitial Segment Brief Description of Project: Phase 1 (design, engineering and permitting) is in progress using City funds only. Phase 2 will be construction in multiple phases of the Marsh Preserves Multipurpose Trail will connect Tideviews Preserve with Dutton Island Road, allowing direct access to both Atlantic Beach and City of Jacksonville's Dutton Island Preserves. The ADA accessible path will travel on or near the marsh front along the eastern edge of the River Branch Preserve. AND, Florida Inland Navigation District financial assistance is required for the program mentioned above, NOW THEREFORE, be it resolved by the City of Atlantic Beach that the project described above be authorized, AND, be it further resolved that said City of Atlantic Beach make application to the Florida Inland Navigation District in the amount of 50% of the actual cost of the project in behalf of said City of Atlantic Beach, AND, be it further resolved by the City of Atlantic Beach that it certifies to the following: 1. That it will accept the terms and conditions set forth in FIND Rule 66B-2 F.A.C. and which will be a part of the Project Agreement for any assistance awarded under the attached proposal. 2. That it is in complete accord with the attached proposal and that it will carry out the Program in the manner described in the proposal and any plans and specifications attached Form No. 90-21 (Effective date 12-17-90, Rev. 10-14-92) AMENDED AGENDA ITEM# 6A MARCil 10,2014 thereto unless prior approval for any change has been received from the District. 3. That it has the ability and intention to finance its share of the cost of the project and that the project will be operated and maintained at the expense of said City of Atlantic Beach for public use. 4. That it will not discriminate against any person on the basis of race, color or national origin in the use of any property or facility acquired or developed pursuant to this proposal, and shall comply with the terms and intent ofthe Title VI of the Civil Rights Act of 1964, P. L. 88-352 (1964) and design and construct all facilities to comply fully with statutes relating to accessibility by handicapped persons as well as other federal, state and local laws, rules and requirements. 5. That it will maintain adequate financial records on the proposed project to substantiate claims for reimbursement. 6. That it will make available to FIND if requested, a post-audit of expenses incurred on the project prior to, or in conjunction with, request for the final 10% of the funding agreed to by FIND. This is to certify that the foregoing is a true and correct copy of a resolution duly and legally adopted by the Atlantic Beach City Commission at a legal meeting held on this 1oth day of March 2014. Attest Signature Title Title (2) Form No. 90-21 (Effective date 12-17-90, Rev. 10-14-92) AGENDA ITEM: SUBMITTED BY: DATE: CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT Public Hearing for SPA-13-001000715 AGENDA ITEM# 7A MARCH 10,2014 Michael Griffin, CBO, CFM -Building and Zoning Director M/ Jeremy Hubsch-Redevelopment and Zoning Coordinator v "'fP February 12, 2014 STRATEGIC PLAN LINK: Goal Number 7, Mayport Corridor. This goal is to build, encourage, and support a vibrant commercial corridor and strong residential neighborhoods along Mayport Road and adjoining neighborhoods. BACKGROUND: The applicants are requesting to rezone a 7.2 acre property that is currently zoned Commercial Limited (CL) and Residential General Multi-Family (RG-M) to a Special Planned Area (SPA) for up to 80 residential units. The property is located on the eastem side of the Mayport Road flyover, near Atlantic Boulevard. As proposed, the project will consist of a variety of multi-family dwelling types that include duplex, triplex, and quadplex units. The property is in a Residential High Density Future Land Use District, which allows a maximum of 20 units per acre. The proposed project has a density of 11.2 units per acre. The applicants are seeking to create a unique development that would not ordinarily be allowed in a traditional zoning district. The Community Development Board staff report details the specifics of the development, waivers requested, and sections of the Comprehensive Plan that relate to the project. The Community Development Board considered this request along with comments from staff, the public and the applicants at the November 19th meeting, and the Board recommended approval by a vote of 6-0. The board found the request consistent with the Comprehensive Plan and Future Land Use Map, as well as Division 6 of the Land Development Regulations, which relates to Special Planned Area Districts (SPA) BUDGET: None. RECOMMENDATION: Motion to approve Ordinance 90-14-221, known as SPA 13- 00100075, as recommended by the Community Development Board. ATTACHMENTS: Draft minutes ofthe November 19, 2013 Community Development Board meeting; copy of Community Development Board staff report; copy of SPA-13-00 100075 application. Copy of Proposed Ordinance 90-14-221. REVIEWED BY CITY MANAGER: ----·q, ~~ ,zG· r_..-, , =J Draft Afinutes oft he November 19, 2013 regular meeting oft he Community Development Board MINUTES OF THE REGULAR MEETING OF THE COMMUNITY DEVELOPMENT BOARD November 19, 2013 ,·<->: .:}/ AGENDA ITEM# 7A MARCH 10, 2014 1. CALL TO ORDER.-6:06pm : :,::/ Chair Brea Paul verified the presence of a quQruhf.~ith)he attendance of, Kelly Elmore, Harley Parkes, Patrick Stratton and Sylvia ?im,rn<Jr1s. Thir)leeting was called to order at 6:06pm. Also present was the B~il~ihg and Zoning >Director, Michael Griffin, Redevelopment and Zoning Coordinatdr,)eremy Hubsch and Rftording Secretary Jenny Walker. Kirk Hanson arrived at 7:00pm;'J~son Burgesswas absent. :.> 2. ADOPTION OF MEETING MINUTES-October 15, 2013: .· Brea Paul called for a moti6ht9'approve the<llliriu{~s of the October 1:5, 2013 regular meeting. Kelly Elmore moved that minutes be approved as written. Patrick Stratton seconded the motion and it ca~ri~d.byK\Ibt(C! of 7-0. .· .. , ___ -' ,, ____ _ 3. OLD BUSINESfiv6ne .. 4. REPORTS. .. .. . . .. · .. A: Boats. and Tr~fl~fs. ~r~i ;alii as}<ed,for~a vote by show of hands to take the Agenda out of order ancliliscuss B~ats artd Tfailers ahead of New Business based on the number'iNcwzen~<l[l :at~endance to 'speak on this topic. Brea Paul stated the Boats and Trailers Ordinance was discussed at the October 15th meeting and the Board ',>'•'--> ''-"-~--~- had asked stafHor some additional details to include the actual number of violations ___ ', -->'-','•, '{.", ,-. that were actually'presenf Michael Griffin spoke stating the Board asked for some s{te.}J()undary inl<:lr!nation, Code Enforcement information and staff did a survey of 80% ofAtlantic<Beach and found that there were21 boat violations, 13 of the violatiCJri~theJ)~·<lt;; could be relocated on the property and be found in compliance. 28 boats W~r~::found in compliance. Five trailers and campers were found in violation and/9 trailers and campers were found in compliance. On the Code Enforcement issues we average 10 complaints per month for boats and trailers or recreational vehicles in the front yard Mr. Griffin refreshed_the boards memory that Jacksonville, St. Augustine, Neptune Beach and St. Johns County has the same regulations of no boats or trailers in the front 20ft front yard setback Jacksonville Beach allows one 20 ft boat in the front yard setback Atlantic Beach is less restrictive than Jacksonville, Neptune Beach, St. Augustine and St. Johns County by allowing the boat to be 15ft from the front property line. The Board also asked for some boundary information. Mr. Griffin showed a plat of the Park Terrace subdivision stated that when plats are set up houses are set up on the lot with generally a 20ft setback, anything beyond that 20ft setback is in the right of way. He then showed several examples of compliant lots and noncompliant lots boats, Page 1 of5 Draft Minutes of theN ovember 19, 2013 regular meeting of the Community Development Board AGENDA ITEM# 7A MARCH 10,2014 trailers and campers. Kelly Elmore questioned how long time wise can a boat or recreational vehicle be in the right of way before Code Enforcement will ticket it. Mr. Griffin responded stating Code Enforcement will leave a courtesy notice first giving a reasonable time. Mr. Elmore asked and if the homeowner states that it is a visitor and it will be removed in a few days? Mr. Griffin stated the City will work with them before taking any code enforcement action. The first speaker was Mr. Paul Gunsaulis, 780 Begonia Street. Mr. Gunsaulis stated that because everyone in Atlantic Beach has different lot lines, he feels the only way the City can uniformly enforce the Boats and Trailers Ordinance is to change the wording on b (2) from stating "15 ft setback from the lot line" to read ~1Ej_ft, setback from street pavement:' He states that would put him in complianc!=d>:Tlie second speaker was Michael Hampton, 651 Begonia Street. He stateq,.spnH~hne from the City came out to his property yesterday and told him he coqlc(W)5e do\1\Tn 2 trees on the lot and move his boat back and be in compliance. He~aidit is absurd for him to remove trees and ,•, '·'-. ···.v•,•, that too many trees have been rerrib\Jifd in Atlantic BE\ach already. He states again that "he will not remove his bga'f) t_lYe City can fine liirri all they want, he will not move his boat". The third spea,K¢r was Linda Spencei, 28? Magnolia Street. She agrees with homeowners havini lip me rights gut her neighbors have their boat parked right underneath her bedroom windoW;<-She is in favor of the Ordinance the way itis. Final speakeris Chris Lambeft:s6&357 12th St. Believe~the issues with Boats and Trailers started hecause of the J3.l::k of Code Enforcement on this ordinance in the past. Mr. Lafub~r~ph: believes th~t our codes are too lax for boats aesthetically and the noi?eJactar: ~hd ~hat th{(City should increase the setback for boats, trajlers<md recreation~} vehitles) Kelly Elniore_stated thatthis ordinance is in place fotareason and we d~haye th«=most}ax,ordibarice compared to surrounding muqicipalities.· He feels the 'bfdinalice should be left just as it is. The ordinance ,' ·> ,,· .. ·. \ ·,:, ,_/·>.·i>.' '.('' · .. ·, w'ithholds_the stanciard aestheticthr6ughout the City. Harley Parkes stated that he agrees with: Mr. Elmore. Sylvia Sim\nons stated that she drove all over the City and V\T<l~ surprised Cit h()W: ·fe'Y yiolatiOn$, she saw. Ms. Simmons stated reducing the requii'«=ment maY result in cr~a,ting In ore boats and trailers. She doesn't think the Ordinance-~houlcl be changed Mall-; Brea Paul says she concurs with all the other board memliers, we liave the mosthx code already. . . . . . . ' . . . .. · Kelly Elmore h:t~d~ a rr1~tionto keep the Boats and Trailers Ordinance as written in · pl£lce, unaltered H(lrley Parkes seconded the motion and it carried by a vote of 6-0. 5. NEW BUSINESS . . . _·.·. ,· .· "<· ,"/ A. SPA-13-0010Q07~ ~UBLIC BEARING)-201 Mayport Road Staff Report Request for Special Planned Area (SPA) rezoning as permitted by Sections 24-116 through 24-126, to allow a maximum of 80 residential units. The · property is currently zoned Commercial Limited (CL) and Residential General-Multi-Family (RG-M). The Future Land Use Designation High Density (RB). Jeremy Hubsch, Redevelopment and Zoning Coordinator gave a presentation about SPA-13-00100075. Mr. Hubsch showed an aerial of the. site and described the neighboring sites. Stated that the site was formerly a development of 96 units that had been previously torn down roughly 10 years ago. He then showed a Future Land Use Map and discussed density of surrounding Page 2 of5 AGENDA ITEM# 7 A MARCH 10,2014 Draft Minutes of the November 19, 2013 regular meetii1g ofthe Community Development Board Applicant Comment properties and the zoning. Subject property is 7.2 acres and the applicants are proposing a maximum of 80 residential units. Maximum~ allOwable density is 20 units in a Residential High Density L<li;~d Use, and the applicants are proposing a development with 11.2 units per acre, so it is below the maximum density. The ·. , applicants are proposing 4 unit types, Single family, duplex, triplex and quadplex. ·As it is currently designed, there will be only one single family home. They will be providing 2 parking spaces per unit and 20· visitor parking spac~f There will be a 10ft landscape buffer along. Mayport Road, whi6fi/ is required per our Mayport Corridor Standards. There Wilfb:~.a Sft landscape buffer along the entire North~rn, Southefr{§kd Ea~t~rn property boundary, which is not required by qufcode. TheCp}nrnercial Corridor standards for construction xr(~tedals along Mayp4}t. Road will be met. It is anticipated thaf t.be. proposed 80 unitL~ill be mostly duplex, triplex, ana quadplex puildings.< The applicant~ do not yet know what customer dehl>~nd will{b~:' like, and thus would like the flexibilitY to· alter the Lnh< ty~·~ shown on the site plan, while maintai~Yng the same genei~llayout. The SPA clearly states that any modi{i~(ltiOhtthat change<·~he use, building height, density, puffers and o'.pen spate} and ac2~ss points/driveways will need to cdme back ·before .the>(C9rnmunity Development Board and Cohlmission a~r~quiF~d per Sec~l()n 24-124. Habitat for Humanity plan~ tq create a~ H,bA to maintain the project in perpetuity, but at this t'ime the Hbl\documents have not yet been created. Mr. Hubsc:h statgs. that; P;.,er Section 24-62.c.2, the Community Deyelqpme~r 13oa~d ·~nail "Indicate the relationship of the proposed rezoni.ng 1:6 the comprehensive plan for the city and ·. provide a finding that the requested change in zoning is consistent \rvith the (:()riiprehensive." He then discussed some of the goals, obNctives, <md policies of the comprehensive plan that are rel~yant to this project. Mr. Hubsch gave an overview of the thlrt~en waivers that the applicants are requesting. He also gave )h6verv.i~w ofthe boards required actions. He also stated that · > shff does not have any recommendations at this time and will be leaving the decision up to the board. The applicant, 'Jay McGarvey, Chairman of Beaches Habitat stated that they are very excited to present this model community for the residents of Atlantic Beach. He states that this development will dress up Mayport Road. He then introduced the President of Beaches Habftat, Mr. Brian Wheeler. Mr. Wheeler presented several examp'les of other neighborhoods that have developed using the same traditional neighborhood design that Habitat is ·. ·' Page 3 of5 AGENDA ITEM# 7 A MARCH 10, 2014 Draft Minutes of the November 19, 2013 regular meeting of the Community Development Board Public Comment Motion proposing. He showed computer images of the before and after of the site. He also showed example floor plans of the units. He discussed parking, sidewalks, front and rear yards, landscaping and drainage on the projeCt. Kelly Elmore stated he is concerned given the location and the density request, will crime and home values become an issue .. Mr. Wheeler stated that he feels there is a difference in behavior of renters of high density apartments and homeowners. He then discussed all of the requirements the prospective homeowners must c:Rmply with before being given the privilege of home ownership With/Beaches Habitat. Mr. Elmore then asked how the deveiC>pffl~Dt is handling stormwater. Mr. Wheeler pointed· out that~dst:HflN..vill drain under the park to a underground systerr~·treated withth~)~?<isting concrete that is on- site and the rest::fMalready currently f)q\(Ving to Mayport Road. Habitat will work~{th FOOT concerning ih~\kainage issues. ··.· ·, ,->:::>\, The fits(. plJblic speaker vv~s.(rVl.~tthew Chimumerito, 632 Main Street, ·~tated;he is very gla8 to see something going into the "bombed c):uf'''~flelt~r. His concerns were regarding how many more of th··~se type homes.or de~~lopments are going to be coming Up in Atlantic>Beach?./ls'At.lantic ·Beach going to become totally fotused on Be~ches H~bit~t hori,'es? He was also concerned about the I~A of stora:g{With no gar~g~~ and having the front and rear porch~_s.~tart serving'C!s garages with outside storage. The second .,pul:)lic: sp~5:1ker was· fYii.~e Whalen, business owner on Mayport Road, Mr. Wll'~f~n stated he thinks this is the wrong location for ... this project. Is A~l~ritic Beach going to become the "poster boy" . <for Be~ch~s Habitat. He thinks this is too many low income people in<qne prbJ~ct and that this will turn back into what the Palms tJfll~d into an'd that it will close businesses on Mayport Road. ' ~·. ,·~ K.irkl:lanson had questions regarding if they grant the variances for fhi~·SPA do they have to do the same for all future SPA's. The bo.~rd decided theya~e decided on a case by case basis. Brea Paul was concerned about the park being turned into ·a retention pond for drainage. Mr. Hubsch stated that then that change would have to come before the board again. Sylvia Simmons made motion to approve SPA-13-00100075 and it was seconded by Harley Parkes. It was unanimously approved 6-0. Page 4 of5 Project Description AGENDA ITEM# 7 A MARCH 10, 2014 Habitat for Humanity is seeking to use the Special Planned Area District (SPA) to create a unique development that otherwise would not be allowed by a conventional zoning district in Atlantic Beach. Planned developments generally enable flexibility for building setbacks, lot widths, and lot coverage; in exchange for the creation of park space, open space, and landscaped buffers. Per Section 24-116 of the Atlantic Beach Land Development Regulations, "The purpose of the special planned area district is to create a mechanism to establish a plan of development or redevelopment for a site where the property owner and the community's interests cannot be best served by the provisions of the conventional zoning districts, and where assurances and commitments are necessary to protect the interests of both the property owner and the public, and also the unique qualities of the City of Atlantic Beach." The proposed project has smaller lot widths and building setbacks, and higher lot coverage than allowed in a standard development in Atlantic Beach. However, this is a unique development for Atlantic Beach. The applicants have described the design of the development as a Traditional Neighborhood Development (TND). While staff does not believe the development to be a fully fledged TND, it does display some elements from a design standpoint such as a centrally located park space, alleys, front porches, and walkability. The scale of the project and location along a stretch of Mayport Road that has no left turn lanes is a deterrent to the mixed use (commercial/retail) component of a Traditional Neighborhood Development. Additionally, the development is lacking connectivity to adjacent neighborhoods, which often occurs in a TND. The SPA is providing a centrally located park space, though not required to per Atlantic Beach Code. Only developments over 10 acres must provide recreation per 24-257. However, this project can hypothetically have a higher population than a 10 acre development in a Residential Low Density Future Land Use, which has a maximum density of 6 units per acre. The applicants are providing 5 feet oflandscaped buffers along the entire northern, eastern, and southern property boundaries, though not required to by code. There will be a 10' landscaped buffer along the entire Mayport Road facing corridor, which is required by the Atlantic Beach Commercial Corridor development standards outlined in 24-171. It is anticipated that the proposed 80 units will be mostly duplex, triplex, and quadplex buildings. The applicants do not yet know what customer demand will be like, and thus would like the flexibility to alter the unit type shown on the site plan, while maintaining the same general layout. The SPA text clearly states that any modifications that change the use, building height, density, buffers and open space, and access points/driveways will need to come back before the Community Development Board and Commission as required per Section 24-124. The units will be sold fee simple to Habitat for Humanity participants. The SPA proposes 2 parking spaces per dwelling unit as required by code, as well as an additional minimum 20 visitor spaces. Habitat for Humanity plans to create an HOA to maintain the project in perpetuity, but at this time the HOA documents have not yet been created. Per the SPA text, membership in the HOA will be mandatory for all homeowners, and all open space, retention areas, park, and landscaping will be maintained by the HOA. The commercial corridor development standards outlined in Section 24-171, which pertain to all structures within 100 feet of Mayport Road, state that all new buildings shall be made of brick, wood, stucco, decorative masonry, exterior insulation and finish systems (EIFS), architectural or split-faced type block, or other finish materials with similar appearance and texture. It also states that metal clad, corrugated metal, plywood or oriented strand board (OSB), and exposed plain concrete are not permitted. The applicants have submitted architectural renderings for the project that are consistent with this requirement (attached). Given the location of the site at the entrance to Mayport Road and its visibility from Atlantic Boulevard, staff believes it is important to ensure that this project will be aesthetically pleasing. At this time the city's Public Works Director has a few outstanding construction level comments that need to be worked out with the applicants prior to this item going to the City Commission. Additionally the City of Jacksonville Fire Department is still in the process of reviewing the project for any public safety issues. It is an!icipated that these will be cleared up shortly. Page 2 of8 Compatibility AGENDA ITEM# 7 A MARCH 10,2014 The proposed project is generally compatible with adjacent properties. To the east is another multi-family project, to the north is a small fast food restaurant, and to the south is a mini-storage facility, which faces the opposite direction. According to section 24-177 (e), the applicants are not required to provide any buffers between adjacent parcels. If they were required to provide a buffer, it would need to be ten feet wide where bordering an incompatible use. The applicants have chosen to provide a 5 foot wide landscaped buffer along the east, north, and south property lines. As previously mentioned, they are also providing a 10 foot wide landscaped buffer along Mayport Road. Below is a table of the Future Land Use and Zoning of adjacent parcels: Direction Future Land Use Category Zoning District East Residential-High Density (RH) Residential General, Multi- Family (RG-M) West Commercial (CM) Commercial General (CG) North Residential-Low Density (RL) Commercial Limited (CL) and Residential, General, Multi- Family (RG-M} South Commercial (CM) Commercial General (CG) D I s d d eve opment tan ar s Lot and Building Maximum allowed density per land 20 units/acre use Proposed density 11.2 units/acre Maximum number of units 80 Maximum Lot coverage by Parcel Parcel Type 1 (Single Family): 65% Parcel Type 2 (Duplex): 65%. Parcel Type 3 (Triplex): 65% Parcel Type 4 (Quadplex): 65% Minimum lot width (rectangular Parcel Type 1 (S.F.): Min. Width-32 feet; Min. Area-2,900 s.f. shaped lots only) and Minimum Lot Parcel Type 2 (Duplex): Min. Width-50 feet; Min. Area-4,600 s. f. Area by Parcel Parcel Type 3 (Triplex): Min. Width-68 feet; Min. Area-6,250 s.f. Parcel Type 4 (Quadplex): Min. Width-84 feet; Min. Area -7,725 s.f. Average Lot coverage by Individual End Unit: 60% units within a Duplex, Triplex or Inside Unit: 75% Quadplex Parcel Minimum lot width (rectangular End Unit: Min. Width-26 feet; Min. Area-2,300 s.f. shaped lots only) and Minimum Lot Inside Unit: Min. Width -16 feet; Min. Area -1,450 s.f. Area by individual units within a Duplex, Triplex or Quadplex Parcel Minimum Lot Frontage for Any For irregular shaped lot, the minimum frontage can be no less than 10' less Irregular Shaped Lot than minimum lot width Minimum floor area {per unit) 1,000 SF {enclosed air conditioned living area) Maximum building height 35 feet, principle dwelling; 15 feet, accessory structure-Per COAB LDC Minimum Primary building separation 10 feet Minimum front setback (rectangular Parcel Types 1-4: 8 feet open air porches, shaped lots only) 12 feet exterior building wall Page 3 of 8 Minimum front setback (irregular shaped lots) Parcel Types 1-4: 4 feet for open air porches AGENDA ITEM# 7A MARCH 10, 20 I 4 8 feet for exterior building wall (for a maximum one unit per building) most closely located to the irregular portion of the lot front boundary. Minimum side setback (all All Parcel Types: 5 feet structures) Minimum rear setback (principal dwelling) Minimum Driveway I Parking area Setback Accessory Structure Setback Comprehensive Plan All Corner Lots: To maintain a clear sight triangle at intersections, no obstructions to vision exceeding 4feet in height shall be allowed within the straight line connection of a 10 foot offset from the intersecting right-of- way lines of two streets. Parcel Type 1-4: 15 feet 3 feet from side property line I Parking space dimension begins 2 feet from property line. 3 feet from side or rear lot lines; not allowed in front of unit Per Section 24-62.c.2, the Community Development Board shall "Indicate the relationship of the proposed rezoning to the comprehensive plan for the city and provide a finding that the requested change in zoning is consistent with the comprehensive plan." Below are a few goals, objectives, and policies of the comprehensive plan that are relevant to this project. Consistency with the comprehensive plan is one of the findings of fact necessary for approval of the SPA. GoalA.1 The City shall manage growth and redevelopment in a manner which results in a pattern of land uses that: 1) encourages, creates and maintains a healthy and aesthetically pleasing built environment, 2) avoids blighting influences, 4) maintains the City's distinct residential community character Objective A.1.3-Maintaining Residential Character The City shall encourage future development and redevelopment, which 1) retains the exceptionally high quality of life and the predominantly residential character of the City of Atlantic Beach ... and, 3) provides for varied and diverse recreational opportunities ... and which provides for and maintains energy efficient land use patterns. Objective A.1.5-Sound Development Patterns The City shall maintain development patterns which 1) prevent blighting influences 2) foster diverse and stable neighborhoods ... 4) provide proper locations for ... energy efficient land use patterns, and 5) encourage healthy and aesthetically pleasing living conditions. Policy A.1.5.5 Flexible regulatory methods shall be utilized to provide incentives for achieving environmental enhancement, economical land development and energy efficient patters of land use that provide for an appropriate mix of uses within the City. Policy 1.5.8 The City shall permit residential development only in compliance with the residential density limitations as set forth within the Land Development Regulations, and as designated on the Future Land Use Map in accordance with the following table. Objective A.1.6 The City shall preserve the sound structural condition and the diverse character of the built environment of the City and shall encourage development programs and activities that are directed at infill development as well as the conservation, redevelopment and re-use of existing structures and the preservation of and re-investment in older neighborhoods. Page 4 of 8 Policy A.1.6.3 AGENDA ITEM# 7A MARCH 10,2014 The City shall discourage redevelopment practices that displace very low, low and moderate-income residents. Objective A.1.10 The City shall continue to maintain a development character which is compact in form, orderly in its land use patter, and diversified in its makeup so as to ensure employment opportunities, affordable housing, a pleasant living environment, and cost effective and energy efficient public services. PolicyA.1.10.4 The City shall actively support the appropriate redevelopment and in fill development of the Mayport Road corridor. Retail and service uses that sustain neighborhoods and encourage a more aesthetically pleasing and pedestrian friendly environment shall be encouraged. New development along Mayport Road shall be in compliance with the Commercial Corridor Development Standards as set forth within the Land Development Regulations. Objective A.1.11 The City shall provide for land use, development and redevelopment in an efficient manner, which supports the land use designations as set forth within the 2010-2020 Future Land Use Map; which enforces the residential densities and the limitations upon the type and intensity of uses, and which results in development appropriate to the sensitive coastal location of the City, particularly with respect to the predominantly residential character and small-town scale of the City. PolicyA.1.14.1 The City shall continue to maintain an energy efficient land use pattern and shall continue to promote the use of transit and alternative methods of transportation that decrease reliance on the automobile. PolicyA.1.14.2 The City shall continue to encourage and develop the "walk-ability and bike-ability" of the City as a means to promote the physical health of the City's residents Waivers The applicants are requesting thirteen waivers. Section 24-121 states "The special planned area district should not be construed as a mechanism to diminish the requirements set forth elsewhere within this chapter or other chapters of the City Code. Waivers to existing development standards shall be approved by the city commission and only upon demonstration that an alternative standard will provide a better development outcome with respect to the quality of design and development form." The waivers requested by the applicants are essentially areas where certain aspects of the SPA differ from the standard requirements of the code. It should be noted that the practical purpose of planned developments is to seek relief from standard setbacks, lots sizes, and lot widths. These types of items are typically not listed as waivers in a PUD/SPA. For instance, in the Atlantic Beach Country Club SPA, there are several lot types and building setbacks that are smaller than allowed by Atlantic Beach's zoning districts, but there were no waivers listed in the staff report or SPA text. In this case, the applicants have chosen to provide all areas where the development varies from what is allowed by code. Waivers 4-10 are all examples of items that are often times not considered a traditional waiver in a planned development. These items generally relate to requests for lesser setbacks, lot sizes and widths; and greater Impervious Surface Ratio (ISR). As pointed out earlier, increased landscaping, open space, and park space is often a tradeoff for allowing these types of requests in a planned development. Waivers 1-3 relate to requests for limited relief from landscaping requirements. Waiver 11 requests a reduction in setbacks for accessory structures. Waivers 12 and 13 are requests for relief for roadway standards. The City Commission has the power to grant. deny. or alter any of these waivers. The Community Development Board shall take them into consideration when making a recommendation. Page 5 of 8 AGENDA ITEM# 7A MARCH 10, 2014 1. Per section 24-171, Commercial Corridor, it references Div: 8 Landscaping which requires 50% of the required trees along the Mayport frontage road be shade trees. Due to the adjacent overhead power, shade trees are not permitted to be located in this proximity to the power lines; therefore, this buffer will only include understory trees and palm trees. 2. Per Section 23-30, Minimum Tree requirements under Division 4 General provision, which is later referenced by Division 8, For triplex parcels, we are requesting to 33% shade tree versus the required 50% shade tree requirement. Overall, there will be 40% shade trees on the development parcels. This reduction of shade trees is off-set from the additional planting that has been provided elsewhere on the property that is not required by code. 3. Per Section 23-30, Minimum Tree requirements under Division 4 General provision, we are requesting to plant 3" caliper trees versus the required 4" caliper trees. This reduction in size is requested due to availability of non- shade plant material along with costs, and is off-set from the additional planting that has been provided elsewhere on the property that is not required by code. Please note, that only required trees on-site are located on the individual residential parcels and the Landscape Enhancement area to Mayport. 4. Per Sec. 24-88 which requires for "high density residential development, a minimum lot area of two-thousand one hundred seventy-five (2,175) square feet for each dwelling unit." We request for duplex units through quaplex units, that the outside unit have a minimum lot size of2,300 SF, and inside units have a minimum lot size of 1,450 SF. 5. Per Section 24-108 (d)(1) minimum lot area requirement for "Single-family dwellings" requires seven thousand five hundred (7,500) square feet". Our single-family lot is 2,900 sf. 6. Per Section 24-108, minimum yard requirements, requires "Front Yard setback: Twenty (20) feet." Our request is 8 foot from open porches (12 foot from building) for rectangular lots. On irregular lots we request a minimum 4 foot for open air porches, 8 feet for exterior building wall (for a maximum one unit per building) most closely located to the irregular portion of the lot front boundary. 7. Per Section 24-108, minimum yard requirements which requires "Rear Yard setback: Twenty (20) feet." We request 15 feet. 8. Per section 24-108, minimum side requirements require: a. Single-family dwellings: Combined fifteen (15) total feet and five (5) minimum feet either side. b. Two-family (duplex) dwellings and townhouse: Seven and one-half (7.5) each side." We request side setbacks of 5 feet. On corner lots: To maintain a clear sight triangle at intersections, no obstructions to vision exceeding 4 feet in height shall be allowed within the straight line connection of a 10 foot offset from the intersecting right-of-way lines of two streets. 9. Per section 24-108, minimum lot width requirements of ten (75) feet. We request 32 feet for a single family lot, 50 feet for a duplex parcel and 68 feet for a triplex parcel type. 10. Per section 24-108, Building Restrictions which requires "The building restrictions for the RG-M zoning district shall be a 50% Maximum impervious surface. For Parcel Types 1 through 4 we request a 65% maximum impervious surface. Furthermore, on the individual units we request an average 60% impervious on exterior units and 75% impervious on internal units. 11. Per Section 24-151, Accessory Structures, Detached carports have a 5 foot side and rear yard setback requirements, and private garages have a 10 foot rear and side yard setback. We request all accessory structures have a minimum 3 foot side and rear yard setback Page 6 of 8 AGENDA ITEM# 7 A MARCH 10, 2014 12. Per section 24-2 52 (i) cul-de-sac's require a minimum 50 foot right-of-way. We request a 44 foot right-of-way for an approximate 200 feet in length. 13. Per section, 24-252 (c)(1) which states "Any subdivision ofland, which creates more than ten (10) residential lots shall provide two (2) separate access points, unless other provisions, such as permanent easements, are made for emergency ingress, and provided that such entrances will not adversely affect the street system." We are providing two access points however, only one will be for ingress. REQUIRED ACTION The Community Development Board may consider a motion to recommend approval of the Habitat for Humanity SPA (Application SPA-13-00100075) to the City Commission, a rezoning to Special Planned Area for lands described within said application, approving the site development plan and adopting the application and supporting documents, and all terms and conditions as set forth therein, subject to conditions enumerated, and provided the following, or similar, findings of fact: (1) The request for rezoning has been fully considered after public hearing with legal notice duly published as required by law. (2) The rezoning to Special Planned Area is consistent with the Comprehensive Plan and the Future land Use Designation of Residential, High Density. (3) The rezoning is consistent with the land Development Regulations, specifically Division 6, establishing standards for Special Planned Areas. (4) The rezoning and the site development plan are consistent with the stated definition, intent and purpose of Special Planned Areas. (5) The zoning district classification of Special Planned Area, and the specific uses and special conditions as set forth herein, are consistent and compatible with surrounding development. The Community Development Board may consider a motion to recommend denial of the Habitat for Humanity SPA (Application SPA-13-00100075) to the City Commission, a rezoning to Special Planned Area for lands described within said application, provided the following, or similar, findings of fact: (1) The rezoning to Special Planned Area is not consistent with the Comprehensive Plan and the Future land Use Designation of Residential low Density because (2) The rezoning is not consistent with the land Development Regulations, specifically Division 6, establishing standards for Special Planned Areas because (3) The zoning district classification of Special Planned Area and the specific uses and special conditions as set forth herein are not consistent or compatible with surrounding development because Page 7 of 8 AGENDA ITEM# 7A MARCH 10, 2014 ~Beaches .wtf Habitat for Humanity® Ownership and Commitment: Beaches Habitat for Humanity has unified control of the subject property and is committed to proceed with the proposed development in accordance with the ordinance creating the special planned area. Beaches Habitat for Humanity is committed to proceed with the proposed development according to the plans and schedule approved by the ordinance, and will continue operation and maintenance of all privately owned areas, functions and facilities, which will not be operated or maintained by the City pursuant to written agreement. Beaches Habitat for Humanity is committed to bind all successors and assigns in title to any commitments included within the ordinance creating the special planned area which shall also include by reference the application for rezoning and the approved plan of development, and which shall be recorded with the Clerk of Courts of Duval County. Beaches Habitat for Humanity will form the 201 Mayport Road Neighborhood Association, Inc., a Florida non-profit corporation, for the continued ownership and maintenance of the right-of-ways, common open space, retention areas, park and landscaping. Membership in the association shall be mandatory for ;yt property owners within the SPA development plan. Beaches Habitat reserves the right to deed the ~~ht-of-way and alley b~ck to the City while still maintaining the landscape. BY:~~/ ~re of ovirler October 15, 2013 Date Debbie Jones Print Name 797 Mayport Road, Atlantic Beach, FL 32233 o Office: (904) 241-1222 8 Fax: (904) 241-4310 www .beacheshabitat.org I ' Prepared by and return to: Lawrence V. Ansbacher, Esq. Ansbacher & Schneider, P.A. 5150 Belfort Road, Building 100 Jacksonville, FL 32256 Doc# 2013241113, OR BK 16531 p Number Pages: 3 age 2248, Reco~ded 09/18/2013 at 02:17 PM ~~~~;;lssell CLERK CIRCUIT COURT DUVAL RECORDING $27.00 DEED DOC ST $7700.00 SPECIAL WARRANTY DEED 1. Grantor's name and address is: CENTERSTATE BANK OF FLORIDA, N.A., A National Banking Corporation 1234 King Street Jacksonville, FL 32204 2. Grantee's name and address is: BEACHES HABITAT FOR HUMANITY, INC., a Florida non-profit corporation 797 Mayport Road Atlantic Beach, FL 32233 Grantee's tax identification number is: _______ _ AGENDA ITEM# 7A MARCH 10,2014 The terms Grantor and Grantee shall be non-gender specific, singular or plural, as the context permits or requires, and include heirs, personal representatives, successors or assigns where applicable and permitted. 3. The real property ("Property") conveyed hereby is described as follows: A tract of land lying in the Castro Y. Ferrer Grant, Section 38, Township 2 South, Range 29 East, Atlantic Beach, Duval County, and more particularly described as follows: · For a point of reference commence at the intersection of the Northerly line of Atlantic Boulevard and the Easterly line of Mayport Road; thence run North 20 degrees 28' 35" East along said Easterly line of Mayport Road, a distance of 360 feet to a point of beginning; thence run North 89 degrees 19' 35" East parallel to said Northerly line of Atlantic Boulevard, a distance of 612.38 feet; thence run North 7 degrees 04' 25" West, a distance of 691.90 feet; thence run North 69 degrees 31' 25" West a distance of 251.01 feet to the Easterly right of way line of said Mayport Road; thence run South 20 degrees 28' 35" West along said Easterly right of line of Mayport Road, a distance of 834.36 feet to said point of beginning, together with all tenements, hereditaments, easements and appurtenances belonging to or benefiting such property. The Property Appraiser's Parcel Identification Number is 177649-0000 4. Grantor for good and valuable consideration plus the sum of $10.00 the receipt whereof is hereby acknowledged, hereby grants, bargains, sells and conveys to Grantee the Property to have and to hold in fee simple forever. 5. Grantor fully warrants title to the Property and will defend the same against the lawful claims of all persons whomsoever claiming by, thro'Llgh or under Grantor, but not otherwise, except for those certain "Permitted Exceptions" more particularly described on such Exhibit attached hereto and, by this reference, made a part hereof. EXCEPT AS EXPRESSLY SET FORTH IN THIS DEED, GRANTOR HAS MADE NO, AND EXPRESSLY DISCLAIMS ALL, REPRESENTATIONS, WARRANTIES, COVENANTS AND CONTRACTS OF EVERY KIND AND CHARACTER, EXPRESS OR IMPLIED OR ARISING BY 130172.03 Special Warranty Deed Last Saved: 13.9.1 0 12:28 PM PERMITIED EXCEPTIONS AGENDA ITEM# 7A MARCH 10, 2014 1. General or special taxes and assessments required to be paid in the year 2013 and subsequent years which are not yet due and payable. 2. Downguy Easement to Jacksonville Electric Authority filed September 24, 1985 in Official Records Book 6018, page 1256, of the current public records of Duval County, Florida. 3. Grant of Easement to Mediaone of Greater Florida, Inc. as filed May 19, 2000 in Official Records Book 9629, page 901, of the current public records of Duval County, Florida. 4. Easement to Southern Bell Telephone and Telegraph Company filed January 31, 1961 in Official Records Book 1196, page 308, of the current public records of Duval County, Florida. 4. Facts, matters and things disclosed on a current survey of the Property. 201 MAYPORT ROAD AGENDA ITEM# 7 A MARCH 10, 2014 Future Land Use Designations and Zoning Districts for Adjacent Parcels Direction Future Land Use Category Zoning District East Residential-High Density (RH) Residential General, Multi- Family (RG-M) West Commercial (CM) Commercial General (CG) North Residential -Low Density (RL) Commercial Limited (CL) and Residential, General, Multi- Family (RG-M) South Commercial (CM) Commercial General (CG) Source: COAB Future Land Use and Zoning Maps Ill. Permitted and Prohibited Uses The following section lists the permitted uses for the 201 Mayport Road SPA. • A mixture of single-family dwelling units; duplex, triplex and quadplex buildings sold as fee simple units; in totat not to exceed 80 units • Privately maintained Neighborhood Park with ancillary amenity building or structures • Privately maintained common open space which may include • Stormwater enhancements • Community Gardens • Community Amenity Facility • Mail Kiosk I Gazebo I Fire Pit I Other community amenities • Accessory Structures on individual lots (rear yard only) • Detached garages I carports • Storage Shed • Residential scaled fencing less than 42" in height within internal portions and western frontage of the development • 6' in height screen fencing I wall for the north, south and east perimeters • Temporary Sales and Construction Trailers IV. Development Density The SPA rezoning requests a maximum of 80 dwelling units representing a density of 11.2 units per acre. This represents a 44% reduction below the maximum density of 20 dwelling units per acre allowed by the Residential High Density land use designation; and a 20% reduction from the prior residential development. V. Development Standards Development standards have been created to ensure contextual design elements. This section describes the various types of development standards proposed for 201 Mayport Road. The current SPA site plan reflects a site plan version with 78 dwelling units, which includes a mixture of single-family units, duplex, triplex and quadplex buildings in which units will be sold fee simple. The intent of this SPA is to allow Beaches Habitat the flexibility to alter the unit type based upon customer demand, while maintaining a maximum density of 80 total units. The developer is required to meet all portions of the COAB Land Development Code (LDCL unless stated within the following development standards text and waiver section of the SPA requirements. Page 2 of 9 201 MAYPORT ROAD AGENDA ITEM# 7A MARCH 10, 2014 A. Buildings and Lots: The following table lists the proposed lot and building requirements for the development. Lot and Building Requirements Maximum allowed density per land 20 units/acre use Proposed density 11.2 units/acre Maximum number of units 80 Maximum Lot coverage by Parcel* Parcel Type 1 (Single Family): 65% Parcel Type 2 (Duplex): 65%. Parcel Type 3 (Triplex): 65% Parcel Type 4 (Quadplex): 65% Minimum lot width (rectangular Parcel Type 1 (S.F.): Min. Width-32 feet; Min. Area-2,900 s.f. shaped lots only) and Minimum Lot Parcel Type 2 (Duplex): Min. Width-50 feet; Min. Area-4,600 s.f. Area by Parcel* Parcel Type 3 (Triplex): Min. Width-68 feet; Min. Area-6,250 s.f. Parcel Type 4 (Quadplex): Min. Width-84 feet; Min. Area -7,725 s.f. Average Lot coverage by Individual End Unit: 60% units within a Duplex, Triplex or Inside Unit: 75% Quadplex Parcel* (Note: In total, the Parcel Type allows for a Maximum Lot Coverage Of 65%) Minimum lot width (rectangular End Unit: Min. Width-26 feet; Min. Area-2,300 s.f. shaped lots only) and Minimum Lot Inside Unit: Min. Width-16 feet; Min. Area -1,450 s.f. Area by individual units within a Duplex, Triplex or Quadplex Parcel* Minimum Lot Frontage for Any For irregular shaped lot, the minimum frontage can be no less than 10' less Irregular Shaped Lot than minimum lot width Minimum floor area (per unit) 1,000 SF (enclosed air conditioned living area) Maximum building height 35 feet, principle dwelling; 15 feet, accessory structure-Per COAB LDC Minimum Primary building separation 10 feet Minimum front setback (rectangular Parcel Types 1-4: 8 feet open air porches, shaped lots only)* 12 feet exterior building wall Minimum front setback (irregular Parcel Types 1-4: 4 feet for open air porches shaped lots)* 8 feet for exterior building wall (for a maximum one unit per building) most closely located to the irregular portion of the lot front boundary. Minimum side setback (all All Parcel Types: 5 feet structures)* All Corner Lots: To maintain a clear sight triangle at intersections, no obstructions to vision exceeding 4feet in height shall be allowed within the straight line connection of a 10 foot offset from the intersecting right-of- way lines of two streets. Minimum rear setback (principal Parcel Type 1-4: 15 feet dwelling)* Minimum Driveway I Parking area 3 feet from side property line I Parking space dimension begins 2 feet from Setback property line. Accessory Structure Setback 3 feet from side or rear lot lines; not allowed in front of unit * These relate to specific areas where we are requesting waivers. See page 8. Page 3 of 9 201 MAYPORT ROAD B. Projections into Required Yards: AGENDA ITEM# 7A MARCH 10,2014 Stoops, balconies, awnings, bay windows, and roof overhangs may encroach into the required front yards, not to exceed 3 feet. Side and rear yards shall be measured from the property line to the outside wall of the principal structure. Projections may occur within the required side and rear yards, such as roof overhangs and bay windows, but shall not exceed two feet. In addition, chimneys may project up to one foot into the side or rear yard. C. Swimming Pools and Hot Tubs: In-ground swimming pools and hot tubs are permitted. Pool enclosures should be located only at the rear of the property and shall be no wider than the width of the principal structure. The minimum side yard setbacks for pools, decks, and pool enclosures shall be equal to the side yard requirements of each residential lot, as noted in the Lot and Building Criteria section of this SPA. Pools that do not contain a screen enclosure shall have a minimum of a five foot setback, including deck, from the rear property line. Above ground hot tubs are permitted with architectural review approval of the site and landscaping. No above ground swimming pools are permitted. All pools shall meet current COAB LDC standards. Although not currently planned for, the community is permitted to construct an HOA managed community swimming facility within the common opens space area at a future date. D. Buffering, Landscaping and Vegetation: There are many sections where this SPA eSCEEDS the required landscape requirements by the COAB LDC. This has been done through additional landscaping and buffering to the surrounding commercial and residential properties to the north, south and east. Furthermore, the community will have enhanced landscaping within the internal loop road of the development. All landscaping within the rights-of-ways, alley ways, and common open space will be commonly maintained and replaced by the HOA. All landscaping commonly maintained by the HOA requires irrigation. Residents within the community will not be allowed to remove any installed landscaping within the commonly maintained areas managed by the HOA. It is currently envisioned that Individual lot landscaping will be maintained by the individual property owner. The residential buildings include a small storage area on the rear side of each unit to house lawn equipment. The applicant will include the landscape plans as a part of the Preliminary Site Plan submittal to COAB. D.l: Mayport Road Landscape Enhancement: A ten foot wide landscape enhancement shall be provided along Mayport Road (SR AlA) per the Commercial Corridor Code under Division 7, Section 24-171. This landscape enhancement area may include walls and/or fencing not to exceed 42 inches in height, and community sidewalks. The intent of this landscape enhancement is to include a residentially scaled landscape buffer to Mayport Road to include a curvilinear row of shrubs, and a mixture of understory trees, and palm trees. Shrubs I native grasses within this enhancement area will be planted with a 7 gallon container at time of installation to provide an instant landscape screen. Shade trees will not be planted within this enhancement area due to the proximity of the power lines along Mayport Road. Understory trees and palm trees will be planted no less than one tree for every 50 linear feet within this enhancement area. Trees may be clustered but shall be no more than 75 feet apart. For the purpose of this enhancement area, understory trees will be planted with a minimum caliper 3 inch; or if multi-stem, a minimum of 3 stems that total3 inches in caliper size; or palm trees with a minimum 10 foot clear trunk. D.2: Northern and Southern Perimeter Landscape buffer: Although not required by code, a five foot wide landscape buffer has been located adjacent to the northern and southern property boundaries that abuts the commercial developments. This Landscape Buffer has been considered and incorporated into the side yards of individual lots and alley widths. This will include a continuous landscape area with shrubs, ground covers, tree coverage, mulch and grass. No Jess than one tree for every 50 linear feet shall be planted within this buffer. Trees may be clustered but shall be no more than 75 feet apart. Page 4 of 9 201 MAYPORT ROAD AGENDA ITEM# 7A MARCH 10,2014 These Perimeter Buffers may also include a visual screen where existing fencing/walls are acceptable, which maybe a six foot tall wood, or masonry wall, or landscaping. Planted trees within these buffers will be planted with a minimum 2" caliper trunk and/or palm trees with a minimum 8 foot clear trunk. 0.3: Eastern Perimeter Buffer: Although not required by code, a five foot wide landscape buffer has been located between the alley pavement and the abutting property to the east. The adjoining property includes a six foot black aluminum picket fence. This buffer will include a continuous landscape area with shrubs, ground covers, tree coverage, mulch and grass. No less than one tree for every 50 linear feet shall be planted within this buffer. Trees may be clustered but shall be no more than 75 feet apart. These Perimeter Buffers may also include a visual screen where existing fencing/walls are acceptable, which may be a six foot tall wood, or masonry wall, or landscaping. Planted trees within these buffers will be planted with a minimum 2" caliper trunk and/or palm trees with a minimum 8 foot clear trunk. 0.4: Interior Central Loop Road Right-of-Way Landscaping: The Central Loop Road and Right-of-Way includes a boulevard entryway, which merges into a 2-lane roadway, then to a one-way loop road around a central community park. Although not required by code, the boulevard portion of the road shall include for a mixture of shade, understory and palm trees, along with shrubs, ground covers, mulch and grass, within the internal median and outside the edge of pavement within this segment of the right-of-way. Although not required by code, the two-way portion of the Central Loop shall allow for a mixture of shade, understory and palm trees, along with shrubs, ground covers, mulch and grass. Although not required by code, the one-way loop road centered on a community park shall allow a similar mixture of planting on the residential frontage portion of the right-of-way. As designed, the interior portion of the right-of- way has been designed to allow use with emergency vehicles. No vegetation other than sod shall be allowed within the first 3 feet of the back of pavement on the interior portion of this right-of-way to allow for an open 20 foot width for emergency vehicles. 0.5: Interior Common Area Landscaping: Common areas within the SPA shall allow landscaping at the developer's discretion. 0.6: Interior Individual Parcel Landscaping: For the purposes of this submittal, other than single family units that will meet the interior lot requirements by code, other required trees will be considered on a per parcel basis (building type). The minimum tree planting requirements proposed will comply with the matrix below. Parcel Type Typical SF Required Trees Provided Trees Duplex Parcel 4,600 SF 1 u I 1s 1 u I 1 s Triplex Parcel 6,250 SF 1U/2S 2 u I 1 s Quadplex Parcel 7,725 SF 2U/2S 2 u I 2 s The above matrix when evaluated over all of the duplex, triplex and quadplex parcels, equates to 40% shade trees and 60% understory (U) trees, which is less than the required 50% shade (S) threes. It will be typical that where lots abut each other, many of the larger shade trees will be placed in the rear of each parcel and on the property line between two parcels, to allow for the greatest amount of room for the root ball to grow. This reduction of shade tree planting on an individual parcel is off-set with the additional non-required planting that has been provided across the entire development. Page 5 of 9 201 MAYPORT ROAD E. Entry Sign age and Lighting: AGENDA ITEM# 7A MARCH 10, 2014 As permitted in Section 17-28 of the COAB LDC, identification signage bearing the development name may be placed at the residential main entrance. "201 Mayport Road" signage will include one ground mounted sign at the entry located on Mayport Road within the landscaped median; or a combination of signage and columns that incorporates two signs on the sides of the entry drive and a column with plaque within the median. Lighting ofthe sign(s) will also be provided. Neighborhood Identification signage and illumination shall comply with the maximum sign area, sign height, and minimum setbacks of Section 17-28. Should neighborhood identification signage be incorporated into two signs on either side oft he entry drive, the combination of sign area shall be consistent with the maximum 32 square feet as code requires. Any additional street sign age will comply with the current COAB LDC. Street lighting will comply with the current COAB LDC and in accordance with JEA service agreements. F. Vehicular Circulation, Project Access and Parking: As shown on the Sketch Plan, the development will have two vehicular access points to Mayport Road. The main entry road will consist of two-way traffic with 20 feet of pavement, measured from edge of asphalt to edge of asphalt within a minimum 44 foot right-of-way. The boulevard portion of this main entry Road will include one way drive aisles consisting of 15 feet of pavement measured from edge of asphalt to edge of asphalt. This main road will transition to a one way loop road which consists of 15 feet of pavement measured from edge of asphalt to edge of asphalt. In keeping with the traditional neighborhood design, all of the homes will have parking in the rear off a 20 foot alley-way. The alley will include a minimum of 14 foot of pavement, but will be maintained clear of vertical obstructions for the entire width of the alley, other than where the alley is widened or abuts a perimeter property boundary. A one-way exit drive to Mayport Road has been located close to the southern portion of the property and is accessed within the internal alleyway system. Upon completion Beaches Habitat reserves the right to deed the pavement areas that meet City Code within the right-of-way and alley back to the City. The Community HOA will maintain all landscaping within the rights-of-way. Parallel parking has been planned for along the main loop road and measures 8' x 22'in size to the edge of asphalt. Each dwelling unit shall provide a minimum of two off-street parking spaces. Off street parking is sized at 9 feet wide by 18 feet long. Parking has been designed to have a two foot setback from the rear or side property lines, adjacent to the alleyways. This two foot off-set from the rear property line allows the alley way pavement area to be expanded to 24 feet in width, which meets typical code, when parking is located on either side of the alley. In certain situations, double tandem parking has been provided on irregular lots, but still accommodates two cars. Although the site plan currently shows 32 additional visitor spaces, for the purpose of this SPA, at project build-out, the development will require 1 visitor space for every 4 units or a maximum of 20 visitor spaces. Visitor parking should be spread throughout the development. G. Pedestrian Circulation and Recreation/ Open Space Amenities: 201 Mayport Road will feature a minimum four foot wide sidewalk within the right-of-way of the main loop road. Additional sidewalk enhancements are located within the development. Where sidewalks abut the parking areas, the sidewalk width may be a minimum of six foot wide when adjacent to either a grade transition, curb stop or pavement transition. Common open space may include landscaping, surface and/or subsurface stormwater enhancements, benches and/or shade structures (such as gazebos/mail kiosk). The area designated for the community park, while currently planned for passive recreational use, could be used for a more active recreational community amenity, such as a playground, community facility or swimming facility. Page 6 of9 201 MAYPORT ROAD H. Fencing: AGENDA ITEM# 7 A MARCH 10,2014 Residential fencing on individual units are limited to 42" height in both the front, side and rear property, unless adjacent to the overall SPA perimeter boundary. Fencing will not be allowed in the front yards of individual parcels fronting Mayport Road. Fencing material and appearance will be limited by the covenants and restrictions of the HOA, but at minimum materials and style must be consistent with one adjoining lot. All fencing much be consistent with the COAB LDC. I. Accessory Structure: Accessory structures shall comply with COAB LDC other than setbacks as described on page 3, Lot Table. J. Utilities: All Utilities will be located underground. Water and wastewater will be provided by the COAB and are available ·within the vicinity. Existing overhead electric that runs along Mayport road will be retained. K. Stormwater: Storm water retention and treatment will meet the requirements of the St. Johns River Water Management District (SJRWMD), FOOT and COAB. Maintenance of the drainage facilities will be the responsibility of the 201 Mayport Road Neighborhood Association, Inc. L. Model Homes: Beaches Habitat reserves the right to obtain a building permit for one model building per building type, prior to the full site work, utility connection and storm water enhancement being fully permitted. The certificate of occupancy for such building cannot be attained until infrastructure for that designated phase is complete. M. Home Occupations: Any requested home occupations shall comply with COAB LDC. N. Variances I Modifications: Any variances to the site design criteria as specified in this SPA shall be processed in the same manner as specified in Sec. 24-124 of the COAB LDC. VI. Neighborhood Association The common open space, retention areas, park and landscaping described in this text will be owned and maintained by the neighborhood Home Owners Association, Inc., a Florida non-profit corporation, to be formed. Membership in the association shall be mandatory for all property owners within the SPA development plan. As discussed previously, Beaches Habitat reserves the right to deed the pavement areas within the right-of-way and alley back to the City while still maintaining the common area landscaping. VII. Deed Restrictions and Architectural Review Board Prior to the sale of any lots, a "Declaration of Covenants, Conditions, and Restrictions for 201 Mayport Road" (Declaration) will be prepared for this project. Architectural standards and use restrictions will be provided for in the Declaration. An additional document containing design guidelines may be prepared which may outline the specific design guidelines for the various lots, and the architectural and landscaping requirements for the project. An Architectural Review Board may be established to review and approve or deny plans for each lot, based upon the design guidelines document. Formulation of this Board and how it will be run will be provided in the Declaration. VIII. Phasing 201 Mayport Road will be constructed in phases to be determined based upon engineering criteria and market conditions. Per COAB, LDC, any phase must include a vehicular accessible route for trash and emergency vehicles, along with complying with that phase's stormwater enhancements. Page 7 of 9 201 Mayport Road SPA Application Waivers The following are the waivers requested: 201 MAYPORT ROAD AGENDA ITEM# 7A MARCH 10,2014 1. Per section 24-171, Commercial Corridor, it references Div. 8 Landscaping which requires 50% of the required trees along the Mayport frontage road be shade trees. Due to the adjacent overhead power, shade trees are not permitted to be located in this proximity to the power lines; therefore, this buffer will only include understory trees and palm trees. 2. Per Section 23-30, Minimum Tree requirements under Division 4 General provision, which is later referenced by Division 8, For triplex parcels, we are requesting to 33% shade tree versus the required 50% shade tree requirement. Overall, there will be 40% shade trees on the development parcels. This reduction of shade trees is off-set from the additional planting that has been provided elsewhere on the property that is not required by code. 3. Per Section 23-30, Minimum Tree requirements under Division 4 General provision, we are requesting to plant 3" caliper trees versus the required 4" caliper trees. This reduction in size is requested due to availability of non-shade plant material along with costs, and is off-set from the additional planting that has been provided elsewhere on the property that is not required by code. Please note, that only required trees on-site are located on the individual residential parcels and the Landscape Enhancement area to Mayport. 4. Per Sec. 24-88 which requires for "high density residential development, a minimum lot area of two- thousand one hundred seventy-five (2,175) square feet for each dwelling unit." We request for duplex units through quaplex units, that the outside unit have a minimum lot size of 2,300 SF, and inside units have a minimum lot size of 1A50 SF. 5. Per Section 24-108 (d)(1) minimum lot area requirement for "Single-family dwellings" requires seven thousand five hundred (7,500) square feet". Our single-family lot is 2,900 sf. 6. Per Section 24-108, minimum yard requirements, requires "Front Yard setback: Twenty (20) feet." Our request is 8 foot from open porches (12 foot from building) for rectangular lots. On irregular lots we request a minimum 4 foot for open air porches, 8 feet for exterior building wall (for a maximum one unit per building) most closely located to the irregular portion of the lot front boundary. 7. Per Section 24-108, minimum yard requirements which requires "Rear Yard setback: Twenty (20) feet." We request 15 feet. 8. Per section 24-108, minimum side requirements require: a. Single-family dwellings: Combined fifteen (15) total feet and five (5) minimum feet either side. b. Two-family (duplex) dwellings and townhouse: Seven and one-half (7.5) each side." We request side setbacks of 5 feet. On corner lots: To maintain a clear sight triangle at intersections, no obstructions to vision exceeding 4 feet in height shall be allowed within the straight line connection of a 10 foot offset from the intersecting right-of-way lines of two streets. 9. Per section 24-108, minimum lot width requirements often (10) feet. We request 32 feet for a single family lot, 50 feet for a duplex parcel and 68 feet for a triplex parcel type. 10. Per section 24-108, Building Restrictions which requires "The building restrictions for the RG-M zoning district shall be a 50% Maximum impervious surface. For Parcel Types 1 through 4 we request a 65% maximum impervious surface. Furthermore, on the individual units we request an average 60% impervious on exterior units and 75% impervious on internal units. 11. Per Section 24-151, Accessory Structures, Detached carports have a 5 foot side and rear yard setback requirements, and private garages have a 10 foot rear and side yard setback. We request all accessory structures have a minimum 3 foot side and rear yard setback. Page 8 of 9 201 MAYPORT ROAD AGENDA ITEM# 7 A MARCH 10, 2014 12. Per section 24-252 (i) cul-de-sac's require a minimum 50 foot right-of-way. We request a 44 foot right- of-way for an approximate 200 feet in length. 13. Per section, 24-252 (c)(1) which states "Any subdivision of land, which creates more than ten (10} residential lots shall provide two (2) separate access points, unless other provisions, such as permanent easements, are made for emergency ingress, and provided that such entrances will not adversely affect the street system." We are providing two access points however, only one will be for ingress. Page 9 of 9 AGENDA ITEM# 7A MARCH 10, 2014 ORDINANCE NO. 90-14-221 AMENDED AGENDA ITEM# 7A MARCH 10,2014 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, DUVAL COUNTY, FLORIDA, REZONING PARCEL IDENTIFICATION NUMBER 177649-0000 FROM COMMERCIAL LIMITED (CL) AND RESIDENTIAL MULTI-FAMILY (RG-M) TO A SPECIAL PLANNED AREA (SPA) AS PERMITTED BY SECTIONS 24-116 THROUGH 24-126 OF THE CODE OF ORDINANCES TO ALLOW A MAXIMUM OF EIGHTY (80) RESIDENTIAL UNITS, PROVIDING FOR SPECIAL CONDITIONS; PROVIDING FINDINGS OF FACT; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE AND RECORDING. WHEREAS, the City Commission of the City of Atlantic Beach, Florida, finds the application for a Special Planned Area (SPA) at 201 Mayport Road by the Beaches Habitat for Humanity, Inc. shall provide for orderly growth; encourage the appropriate use of land; protect and improve the health, safety, comfort, good order, appearance, and general welfare of the public and serve to continue consistency with the Comprehensive Plan; and WHEREAS, in the City's duty to protect the public and in order to support the growth and future enhancements of the Mayport Road corridor, the Beaches Habitat for Humanity, Inc. agrees to conditions as detailed in this ordinance which may only be altered by the City Commission; and WHEREAS, after required notice was published, a public hearing was held by the Community Development Board on the 19th day of November 2013 at 6:00p.m. A public hearing was held on the 24th day of February 2014. Introduction and First Reading of the proposed ordinance by the City Commission was held on the lOth day of March 2014 at 6:30p.m. ORDINANCE NO. 90-14-221 Page 1 of7 AMENDED AGENDA ITEM # 7 A MARCH 10,2014 Second Reading of the proposed ordinance and a public hearing to hear, consider and adopt said ordinance was held on the 24th day ofMarch 2014 at 6:30p.m. NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA: SECTION 1. Zoning Change Approved. That the application of the Beaches Habitat for Humanity, Inc., the property title owner of record as indicated in file number SPA-13-00100075, along with supporting documentation for the Special Planned Area submitted to the City of Atlantic Beach, Florida on October 161h, 2013, which is attached hereto as Exhibit A and incorporated as part of this ordinance, is approved and the zoning classification shall be changed for approximately 7.2 acres as described by the legal description of parcel identification number 177649-0000 attached hereto as Exhibit B from Commercial Limited (CL) and Residential Multi-Family (RG-M) to a Special Planned Area (SPA) as permitted by Sections 24-116 through 24-126 of the Code of Ordinances to allow a maximum of eighty (80) residential units. SECTION 2. Development. That development of the lands within this Special Planned Area shall proceed in accordance with the application of the Beaches Habitat for Humanity, Inc., in file number SPA-13-00100075, along with supporting documentation, and incorporated as Exhibit A by reference and made part of this ordinance. SECTION 3. Special Condition. Development within this Special Planned Area shall be similar to and consistent with the design concepts, architectural designs, quality of building materials to be used, styles depicted within renderings and drawings as contained within the application in Exhibit A and presented before the City Commission. Moreover, the Beaches Habitat for Humanity, Inc. agrees to the following special conditions, and that each of the following conditions may be enforced as zoning rules and ORDINANCE NO. 90-14-221 Page 2 of7 regulations pursuant to the City's Charter, ordinances and Florida Statutes: AMENDED AGENDA ITEM# 7A MARCH 10,2014 1. The City acknowledges the intention of Beaches Habitat for Humanity, Inc. is to establish the 201 Mayport Home Owners Association, Inc., or a differently named home owners association with a similar purpose ("HOA") and thereafter transfer rights, responsibilities and obligations to the HOA while maintaining a voting seat. In the event that the City determines the HOA is unable or unwilling to comply with the provisions of this Ordinance, Beaches Habitat for Humanity, Inc. shall re-assume control of the HOA relating to the following: a. Common Areas and Maintenance Areas shall be defined in Exhibit B; b. Beaches Habitat for Humanity, Inc. shall provide necessary funding to finance the maintenance, repmr and upkeep of the Common Areas and Maintenance Areas; c. Beaches Habitat for Humanity, Inc. shall own and maintain the community center; d. Beaches Habitat for Humanity, Inc. shall maintain all retention ponds, storm water and drainage systems; e. No property within the SPA may be rented; f. Beaches Habitat for Humanity, Inc. is obligated to maintain, upkeep, and repair the condition of all Common Areas and Maintenance Areas in an attractive condition as originally installed including, but not limited to: repair and replace roofs; gutters; downspouts; paint or stain exterior building surfaces, including doors and door trim; and windows. g. In the event that title to any portion of the property is conveyed to the City, ORDINANCE NO. 90-14-221 Page 3 of7 AMENDED AGENDA ITEM# 7A MARCH 10,2014 Beaches Habitat for Humanity, Inc. agrees to remain responsible and obligated to maintain all landscaped areas, walkways, recreational facilities and signs within the right-of-ways and alleys. 2. An intent of this Section is to ensure maintenance activities are completed as necessary or desirable to maintain an attractive uniform appearance of each property. 3. For a period of thirty (30) years, Beaches Habitat for Humanity, Inc.'s responsibilities and obligations under this ordinance are not assignable or transferable without prior approval and an amendment to this Ordinance by the City Commission for Atlantic Beach. SECTION 4. Findings of Fact. The need and justification for approval of the Beaches Habitat for Humanity's application have been reviewed and considered in accordance with the Comprehensive Plan, Land Development Regulations and applicable zoning regulations whereby the City Commission finds: A. The application for a change in zoning to a Special Planned Area from Commercial Limited (CL) and Residential Multi-Family (RG-M), has been considered fully following a public hearing before and a recommendation from the Community Development Board and after public hearing before the City Commission with legal notice duly published as required by law. B. The Beaches Habitat for Humanity's application for a Special Planned Area is consistent with the 2020 Comprehensive Plan Future Land Use Map, as amended, and the future land use designation of Residential High Density. Moreover, the proposed project is generally compatible with the adjacent properties. C. The Beaches Habitat for Humanity's application for a Special Planned Area 1s ORDINANCE NO. 90-14-221 Page 4 of7 AMENDED AGENDA ITEM# 7A MARCH 10,2014 consistent with the Land Development Regulations, specifically Division 6, establishing standards for Special Planned Areas. Further, the specific land to be redeveloped consisted previously of a higher residential density, ninety-eight (98) multi-family complex, and said lands to be redeveloped are not composed of open land, water, marsh and wetland areas. D. The Beaches Habitat for Humanity's application for a Special Planned Area does not adversely affect the orderly development of the City, as embodied within Chapter 24, specifically Article III, Division 6 of the Land Development Regulations and within the Comprehensive Plan. E. The Beaches Habitat for Humanity's application for a Special Planned Area is consistent with the stated definition, intent and purpose of Special Planned Areas relating to a change in zoning and the site development plan. F. The zoning district designation of a Special Planned Area and the specific uses and special conditions as set forth herein are consistent and compatible with surrounding development and the proposed site development plan will not adversely affect the health and safety of residents in the area and will not be detrimental to the natural environment or to the use or development of adjacent properties or the general neighborhood. SECTION 5. Conflict. In the event of any conflict between the request and supporting documentation contained in Exhibit A and this ordinance, the provisions of this ordinance shall prevail. If any portion of this ordinance is in conflict with any portion of any other ordinance, then the provisions ofthis ordinance shall govern. To the extent they do not conflict with the unique specific provisions of this Special Planned Area, all provisions of the Land Development ORDINANCE NO. 90-14-221 Page 5 of7 AMENDED AGENDA ITEM# 7A MARCH 10,2014 Regulations, as such may be amended from time to time, shall be applicable to this development; except that modifications to this Special Planned Area by variance or special use shall be prohibited except as allowed by the Land Development Regulations, and except to the degree that the development may qualify for vested rights in accordance with applicable ordinances and laws. Notwithstanding any provision of this ordinance, no portion of any Building Code, Comprehensive Plan or any regulation aside from those set forth within the Land Development Regulations shall be deemed waived or varied by any provision herein. SECTION 6. Severability. If any section, sentence, clause or phrase of this ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this ordinance. SECTION 7. Effective Date and Recording. This Ordinance shall take effect immediately upon its final passage and adoption and shall be recorded in a book kept and maintained by the Clerk of the City of Atlantic Beach, Duval County, Florida. ORDINANCE NO. 90-14-221 Page 6 of7 AMENDED AGENDA ITEM# 7A MARCH 10,2014 PASSED by the City Commission on first reading this lOth day of March 2014. PASSED by the City Commission after public hearing on second and final reading this 24th day of March 2014. ATTEST: DONNAL. BARTLE City Clerk CAROLYN WOODS Mayor, Presiding Officer Approved as to form and correctness: RICHARD KOMANDO City Attorney ORDINANCE NO. 90-14-221 Page 7 of7 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Habitat Project-Ma~rt Road SUBMITTED BY: Michael D. Classe~ Chief of Police DATE: February 27, 2014 STRATEGIC PLAN LINK: N/A BACKGROUND: AMENDED AGENDA ITEM# 7A MARCH 10.2014 Following the ongoing Commission discussions on the above, the Mayor requested the Police Department provide a Public Safety review of the project. This is a newly proposed development consisting of a maximum of 80 total single family units constructed as a series of duplex, triplex and quadplex buildings. This property has been uninhabited since 2004. Prior to that, the property was an apartment complex with approximately 100 units. The review consists of three parts: traffic safety, crime and fire/medical services. The traffic and crime sections contain historical data from the early 2000's when the property was last occupied. As the site plan indicates, the furthest most western units have a setback of 22 feet from roadway. Within that setback, there will be a fence and a landscape buffer including shrubs and trees. Mayport Road is a 6 lane divided highway traveling North/South with a 45 mph speed limit and a high volume of traffic. There has been some safety concerns expressed about the development being located right off Mayport Road due to the anticipated number of children that may live there. Staff reviewed all pedestrian accidents that occurred between 2000 and 2004, when the apartments were occupied. The location range was from Atlantic Blvd to the 500 block of Mayport Road. There were a total of 4 pedestrian accidents in the stated location during the specified years. None of the accidents involved a juvenile and none ofthe accidents resulted in a fatality. Three ofthe accidents were the fault of the pedestrian and one was the driver's fault. Staff also reviewed the crime reports from 2002 through 2004. There were 43 Part I crimes (Larceny- 19, Burglary-17 Vehicle Theft-4 and Robbery-3). In addition, there were 32 Assault/Battery crimes which are not Part I crimes. As a comparison, the prior Atlantic Arms apartments on Cornell lane had 100 units and a total of 85 Part I crimes during the same time period. This is almost double the number of crimes that occurred at the Palms Apartments. Historical knowledge indicates that both complexes had some amount of subsidized housing. One limitation of the crime analysis is that it does not reflect crimes that may have occurred in close proximity to the apartments and that may have been committed by or because of apartment residents. Staff has presented in two recent annual reports that the apartments on Cornell Lane were purchased AMENDED AGENDA ITEM# 7A MARCH 10,2014 over a year ago and are under new management. They vacated the complex so they could remodel the apartments. A substantial drop in crime occurred during that period. When the apartments re-opened management adopted a higher standard for resident approvals. While the apartments are near full occupancy, the higher application standards has contributed to a much lower crime rate than when it was under the previous ownership. Staff also reviewed the project with Jacksonville Fire Rescue Department. JFRD will have to review and approve the final set of plans prior to the project moving forward. JFRD staff advised that they need 20 feet of unobstructed roadway for emergency equipment. This assumes no parking would be permitted on the roadway. If parking were allowed, the roadway width would need to be increased to compensate for that. Fire Department staff advised that they need to be able to get within 50 feet of the structure. This could be accomplished from the alley behind the buildings although this would not be the ideal scenario. In conclusion, the traffic data indicated that there were no juvenile pedestrian accidents that occurred during the period reviewed. When reviewing a roadway for pedestrian crossing, one consideration is the presence of attractors or generators. Specifically as it relates to this project, the question would be why would a juvenile be crossing Mayport Road? With the exception of Veteran's Park, there really is no substantial area of interest or attractor for a child to cross the roadway. If the project has a playground or park facility, that further reduces a reason to cross. Based upon the data, staff has nothing factual to substantiate that this would be a problem. Second, the crime reports while the property was occupied with apartments indicated that there was roughly halfthe number of Part I crimes as the apartments on Cornell Lane. Further, when the Avesta Seaside apartments were opened, the crime rate was significantly reduced from the prior ownership, due in large part to a better applicant screening process. Crime rates are very difficult to predict as they are influenced by many factors. It is generally accepted that owner occupied residences result in overall less problems than multi-family housing units. It is also noted that the Habitat project is limited to a maximum of 80 units whereas there were 100 apartments there previously. Staff would anticipate that the application process for home ownership would be more stringent than it was for the prior apartments. Based upon that assumption, it would be reasonable to infer that crime rates would be lower than under the prior use. As far as Fire/EMS concerns and according to JFRD staff, the 20 foot alley access is acceptable for emergency vehicle ingress/egress. They can access the structures from behind although that is not the preferred method. JFRD will need to approve the final plans prior to the project moving forward. BUDGET: N/A RECOMMENDATION: For information purposes only ATTACHMENTS: None REVIEWED BY CITY , / ~ • MANAGER: --71. V~ ~/ -7 AGENDA lT EM: SUBM ITTED BY : DATE: C ITY OF ATLANTIC BEAC H CIT Y COMM fSS ION MEETING STAFF RE PORT AGENDA ITEM II 71J MAR Cil 10.20 14 Through lo ts betwee n Be nch A venue and Ocean Bouleva rd Michae l Griffin , C BO, CFM Building and Zo nin g Director ~ February 12, 2014 ST RAT EG IC PLAN LI NK: No ne BACKGROUND: Atlached is a copy of the Novemb4jr 19 , 20 13 s taff rc pod submitted to the Co mmunity Developme nt Board (COB) to di scuss C ity Code Section 24-8 4 (c) which re lates to thro ugh lots alon g Beach Avenue and Ocean Boul eva rd . This section require s doubl e fi·o nt age lot s ex tending from Beach A ve nu e to Ocean Bou levard to have the front yard face Ocean Bou levard. As in di ca ted to the C OB, I 0 of lh e 22 tl:u·o ugh lo ts a lready front and ha ve a Beach Avenue ad d ress. Only 4 through lots are add ressed and front a long Ocea n Boulevard, the o th er lo ts have s id e stree t addresses. Currentl y th e o rdin ance re quires an ex istin g through property to redirect the fi·o nt yard to Ocean Avenue if th e ex isting s tructu re is dem olished and rebuilt. Staffrequcsts th e Co mmi ss io n eliminate this porti on of Section 24-84 to a ll ow thro ug h lots to front o nto either Beac h Avenue or Ocean Bou levard. Below is a li st of thJ'Ough lot addresses frontin g onto Beach Aven ue. 120 Beach A venue 0 Be ac h Avenue (u npubl ished address) 250 Beach A venue 136 Beac h A ve nu e 178 Beach A ven ue 328 Beach A ve nue 436 Beach A venue 620 Bea ch A ve nue 360 Beach Avenue 578 Beach Ave nu e The COB voted un a11 imous ly (see attached draft minutes) to reques t Section 24-84 (c) be amended to all ow tlu·oug h lots a lon g Beach Avenue and Ocea n Bou levard to front alon g Beach Avenue. Our Publi c Wo rk s Department does not o bje ct to tbi s amendm ent and docs not co nsi d er thi. as ad din g a traffic impact upon Uti · porti o n of Beac h Avenue. BUDG ET: RECO MM EN DA TfON : ATTAC HM EN TS : No Impact Appro va l of Ordi nance 90-I 4-222 whi ch amend s Section 24-84 of th e C ity Co de to repeal co nditions of lo ts ex tendin g between Beach Avenue and Ocean Bou levard as rec omm ended by th e Co mmunity De ve lopment Board. November 19, 2013 COB staff re po rt a nd dra n minu fe . Ordinance 90-14-222 City of Atlantic Beach Building and Zoning Department 800 Semin ole Road At lant ic Bea ch, Florida 32233 Telephone (904) 247 -5800 Pax (904) 247 -5805 www.coab.us Memorandum To : Co mmunity Development Board From: Michael Griffin, CBO, C FM Building and Zo ning Directo r Date: Novemb er 5, 20 13 Rc: Through lots betw een Beach Avenue and Ocean Boulevard AG ENDA 1'1 EM II 71J MI\RCIIJ0,2(}t tf This is to request n recomm endation from the Communi.ty Deve lopment Board to the C ity Commission that through lo ts between Beach A venu e and Ocean Bolllevard be a ll owed to have front yards that access along Beach Avenue. C ity Co de Sect ion 24-84. (c) Doubl e fi·ontage lot s s tat es, ''Special treatment of Ocean Boulevard lots with d ouhle .frontage. For double frontage lo ts extending between Beach Avenue and Ocean Boulevard, the required front yard sha]l be the yard, whi ch face s Ocean Boulevard.'' Currentl y th ere arc 22 total throu gh lots between Beach A ve nue and Ocean Boul eva rd with I 0 lo ts addressed on Beach Avenue, 5 lot s addressed o n s id e streets, 4 lots with Ocean Bou levard addresses, and 3 vacant lo ts with no address. Given the current available access and street width there docs not appear to be a reaso n Beac h A venu e cannot hand le the po ssi bl e 7 properties that ma y wa nt to have access to Beach Avenue. Our Publ ic Works Dep artment has no objection to allowing the rem ainder of lots to front onto Ocean Boul eva rd. ORDINANCE NO. 90-14-222 AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING CHAPTER 24, ARTICLE III, DIVISION 4, SECTION 24-84 OF THE CODE OF ORDINANCES, LAND DEVELOPMENT REGULATIONS, TO REPEAL CONDITIONS OF LOTS EXTENDING BETWEEN BEACH A VENUE AND OCEAN BOULEVARD; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. AGENDA ITEM# 7B MARCH 10,2014 WHEREAS, the City Commission of the City of Atlantic Beach, Florida, finds that it is necessary to amend Chapter 24, Article III, Division 4, Section 24-84 of the Atlantic Beach Code of Ordinances. NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA: SECTION 1. Regulation Amended. That Section 24-84 of the Code of Ordinances, specifically the Land Development Regulations of the City of Atlantic Beach, Florida, is hereby amended to read as follows: Sec. 24-84. Double frontage lots. (a) Double frontage lots. On double frontage lots, the required front yard shall be provided on each street, except for lots as set forth below and as set forth in section 24-88 (b) Special treatment of ocean-front Lots. For lots having frontage on the Atlantic Ocean, the front yard shall be the yard which faces the Atlantic Ocean, and the required front yard shall be measured from the lot line parallel to or nearest the ocean. (c) Special treatment of Ocean Boultward lots with double frontage. For double frontage lots extending betv;een Beach Avenue and Ocean Boulevard, the required front yard shall be the yard, which faces Ocean Boulevard. ORDINANCE NO. 90-14-222 Page 1 of2 AGENDA ITEM# 7B MARCH 10,2014 SECTION 2. Conflict. If any portion of this ordinance is in conflict with any portion of any other ordinance, then the provisions of this ordinance shall govern. SECTION 3. Severability. If any section, sentence, clause or phrase of this ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this ordinance. SECTION 4. Effective Date. This Ordinance shall take effect immediately upon its final passage and adoption. PASSED by the City Commission on first reading this 24111 day of February 2014. PASS ED by the City Commission on second and final reading this 10111 day of March 2014. ATTEST: DONNA L. BARTLE, City Clerk CAROLYN WOODS, Mayor, Presiding Officer Approved as to form and correctness: RICHARD KOMANDO, City Attorney ORDINANCE NO. 90-14-222 Page 2 of2 AGENDA ITEM# 7B MARCH 10, 2014 Draft Minutes of the October 15, 2013 regular meeting of the Community Development Board was seconded by Harley Parkes. It was unanimously approved 6-0. 6. REPORTS. A. Through Lots. Michael Griffin stated that this item is to request a recommendation from the Community Development Board to the City Commission to repeal Section 24-84. (c) The Land Development Code which relates to double frontage lots which requires new structures built in between Beach Avenue and Ocean Blvd. to actually front onto Ocean Blvd. Currently there are only 4 lots with Ocean Blvd addresses and 10 lots addressed on Beach Avenue, and 3 vacant lots with no address. Sylvia Simmons is concerned about letting homeowners place 6ft tall fences right along Ocean Blvd. Mr. Parkes stated that the economic value of having a Beach Ave. address is not arguable. Kelly Elmore made a motion to amend the code to allow through lots between Beach Ave. to Ocean Blvd. to front on Beach Ave. Mr. Stratton seconded the motion. The motion was unanimously approved 6-0. B. Tree Ordinance. Michael Griffin stated that the Tree Ordinance is not up for discussion for this evening. Mr. Griffin stated this is just a heads up that this will be coming up in the December meeting. Mr. Elmore stated he will be missing the December lih meeting. Brea Paul stated that Jason Burgess will not be staying on the board and the new board member will be Linda Lanier. 7. ADJOURNMENT-8 :31 PM Brea Paul, Chair Attest Page 5 of5 AGENDA IT EM: SU BMITTED 8\': CITY OF ATLANTIC BEACH CITY COMM ISSION MEETING STAFF UEPORT Pu blic Hear in g for UBEX-13-001 000 77 Mi chael Griffin , CBU , CFM Build in g and Zo nin g Director Jeremy r lub sch Redevelopment and Zo nin g Coordin ator DATE: February 14, 20 14 STRATEGIC rLAN LINK: N/A AGENDA ITEM II 8A MAR HI(), 2UI4 BACKGROUND: The applicants arc seek ing a Use-By-Exception for a Pa nera Bread at I 02 1 Atl anti c B o ulevard, wh ich is loca ted in a n ou lparce l in the LA Fit ness Shoppin g Center. The restaurn nt wi ll be 4,125 squm c feet and is proposed to hav e a driv e thro ugh lane. Section 24.111 (c) (4) of the Lan d Development Code requires a Use-By -Exception for ''Resm ura nts with driv e -through se rvi ce wh e re the site co ntains la nes d edicat ed s ole ly t o drive-throu gh bu si ness". Res taura nts with clrive-thru la nes are required to get a Use-By-Exce ption s beca use they can pote ntia lly have negative impacts on surr oundi ng ne ighborhoods or prope rti es . In this partlcul ar instance, s t a ff is of th e opinion th a t th ere will be minim a l nega tjv e impacts [if a ny) as a result of th e dri ve thru lane . The outparcel whet'e the Pa nera is pro po se d is lo ca ted far away from a ny res id e nt ial home s, with the nea res t being behjnd th e LA Fitn ess on Cava ll a Ro ad. There at·c also t hree different ingress/egress access points to the property. Th ere is a signali zed en trance on Atlantic Bou leva rd, an d access driveways on Royal Pa lm s and Aqu atic Drives . There are cu rrently two restaura nts with drive-thru la nes on Atlantic Boul eva rd on th e Atlantic Beach side. They a re McDon a lds a nd Dunkin Do nu ts. The Dunkin Do nuts was pre viou sly a pproved as a Use-By-Exception i n 2006 and McDonalds was gra ndfath e red in. T he Community Deve lopment Board cons id ered thi s request a long wi th co mm e nt s ft ·o m taff, th e public a nd th e applicaJli S althe Janu ary 21 51 meetin g, a nd th e Boa rd reco mm e nd ed a pp rova l by a vote uf7-0. BUDGET: None . RECOMMENl>A TJON : Moti on to approve UB EX 13-00 I 000 77, as re cl)mmcnd ed by the Comm un ity Develo pment Board. ATTACHMENTS: Draft minutes of th e January 2 1, 20 14 Community Deve lop ment B oard meetin g; copy of Comm uni ty Deve lopm e nt Boa rd s tnffrepo1t; co py o f UBE.X-13-00 1000 77 appli ca ti o n. AGENDA ITEM II 81\ M/\f{C'II IIJ, 20 1 1~ Draft Minntt:s tift/11! Ja/luary 21, l fJJ.Irl!gnlarmceting of tile Comunmii,Y Devclnptn enl JJocwd MINUTES OF THE REGULAR MEETING OF THE COMMUNITY DEVELOPMENT BOARD January 21,2014 1. CALL TO ORDER.-6:00pm Chair Brea Paul verified the presence of a quorum with the attendance of, Kelly Elmore, Harley Parkes, Patrick Stratton, I( irk Hanson and Linda Lanier. The meeting was called to order at 6 :00pm . Also present was the Building and Zoning Director, Michael Griffin, Redeve lopment an d Zoning Coordinator, Jeremy Hubsch and Recording Secretary Jenny Walker. Sylvia Simmons arrived at 6:05pm. Brea Paul int roduced the new m ember Linda Lanier. 2. ADOPTION OF MEETING MINUTES-November19, 2013. Brea Paul called for a motion to approve the minutes of the November 19, 2013 regular meeting. Kelly Elmore moved that minutes be approved as written. Patrick Stratton seconded the motion and it carried by a vote of 7-0. 3. PUBLlC COMMENT. Chair Brea Paul stated that the City Commission requested that the Community Development Board hear additional comments from the public regal'ding the Beaches Habitat project on Mayport Road Brea opened the floor for public comments. Public Mike Whalen, 1420 Mayport Road, states that he doesn't know how the Community Development Board cou ld approve Beaches Habitats' pt·oject on Mayport Road . H e slated for the record that he is a total proponent for Hab i tat for Humanity but he feels this would be gutting our zoning regulatio ns. He can't believe that we co uld put th ese families at risk by cr ammi ng th e m all in one ce ntral location walled in by commercia l districts. By sticking 80 families in same socio- economic gro up, it i s not going to do the families nor the children a ny goott He says we are condemning these families to a si tuation they can never get out of. He said that the location is in a Commercia l Corridor and th at Bea ches Habitat should be in a Residential Corridor. He stated several locations around the cou ntry where these same type of commu nities fell apart. 4. OLD BUSINESS. None. Pa ge I of5 AGENDA ITEM# SA MARCH 10,2014 Draft Minutes of the Jam1my 21, 2014 regular meeting of the Community Development Board 5. NEW BUSINESS. A. UBEX-13-00100077(PUBLIC HEARING) Staff Report Applicant Comment Public Comment Board Discussion Motion Request for use-by-exception to allow a drive-thru permitted service lane associated with a restaurant per Land Development Regulations Section 24-111 (c) (4). Jeremy Hubsch, Redevelopment and Zoning Coordinator gave a presentation about UBEX-13-00100077. He stated that both the Use by Exception and Zoning Variance are for Panera Bread. It will be located in the outparcel of the L.A. Fitness shopping center. He showed an aerial map of the location. The proposal is for a 4125 square foot Panera Bread with a drive thru lane. Our zoning code requires a Use by Exception approval when a restaurant opens that will have a drive thru lane, due to the fact that a drive thru lane could have some negative impact on surrounding residential areas. Some of those impacts were lighting and the noise from the speaker. Mr. Hubsch showed on the map that there really isn't any residential areas in close proximity to the proposed site. The closest residential area is buffered by the shopping center. He showed that there will more than enough parking also. There are 3 findings of fact for approval and 3 findings of fact for denial which are to be consistent with the Comprehensive Plan, compliant with the Zoning Regulations and consistent with the CG Zoning along Atlantic Blvd. Jeremy Hubsch introduced the applicant, Lance Willis, architect and designer, who flew down from St. Louis to be present. He stated that they did research on Atlantic Beach, visited the site and got a feel for the demographics here and the residents. They also research the existing architecture and try to stay in line with the elements already in Atlantic Beach. Building was positioned to accommodate the drive thru lane. None. Harley Parkes believes this is the type of business we should be encouraging in Atlantic Beach. Motion made by Kirk Hanson to approve. Seconded by Sylvia Simmons. Motion is passed unanimously. Page 2 of5 SUGGESTED ACTION TO RECOMMEND DENIAL AGENDA ITEM# SA MARCH 10, 2014 The Community Development Board may consider a motion to recommend denial to the City Commission of a requested Use-by-Exception (File No. UBEX 13-00100077) to allow for a drive- thru seiVice lane associated with a restaurant, within the Commercial General (CG) Zoning District and located at 1021 Atlantic Boulevard provided: 1. Approval of this Use-by-Exception is not consistent with the intent of the Comprehensive Plan. 2. Approval of this Use-by-Exception is not in compliance with the requirements of Section 24-63, Zoning, Subdivision and Land Development Regulations. 3. The requested use is not consistent with Section 24-111 (c) in that the proposed use is found to be inconsistent with the uses permitted in the CG zoning districts and is not compatible with surrounding development along Atlantic Boulevard. Page 3 of 3 EXHIBIT A AGENDA ITEM# SA MARCH 10, 2014 The review of an application for a Use-by-Exception shall consider the following items. Please address each of the following as applicable to your specific application. 1. fugress and egress to property and proposed Structures thereon with particular reference to vehicular and pedestrian safety and convenience, traffic flow and control and access in case of frre or catastrophe. Ingress and egress to the property is provided via an existing signalized entrance on Atlantic Blvd. and full access driveways on Royal Palms Dr. and Aquatic Dr. Safe and convenient pedestrian access is provided by dedicated sidewalks to the public sidewalks and bus stop on Atlantic Blvd. 2. Parking and Loading Spaces, where required, with particular attention to the items in (1) above. The existing shopping center provides more parking than required by City Code. All but four (4) required parking spaces will be provided within the lease parcel for the drive-thru restaurant. A cross parking and access agreement will address the use of the shopping center's parking. Loading will be provided from the adjacent drive aisle. 3. The potential for any adverse impacts to adjoining properties and properties generally in the area resulting from excessive noise, glare and lighting, odor, traffic and similar characteristics of the Use-by-Exception being requested. The proposed drive-thru is immediately adjacent to a car wash drive-thru and the Atlantic Blvd right-of-way The drive-thru will be located on an outparcel to the existing shopping center. 4. Refuse, trash collection and service areas, with particular reference to items (1) and (2) above; A dumpster with enclosure will be provided onsite with convenient accessibility and a dedicated sidewalk to the restaurant. 5. Utilities, with reference to locations, availability and compatibility; Water, sewer and power services will be extended from existing mains immediately east of the subject site per coordination with the City and JEA. 6. If adjacent uses are different types of uses, describe type of screening and buffering that will be provided between your use and the adjacent use. Adjacent uses are compatible. An existing planted landscaped buffer exists to the east and will be improved with additional onsite landscaping per City Code. 7. Signs, if any, and proposed exterior lighting, with reference to glare, traffic safety, economic effects and compatibility and harmony with properties in the District; (See Signs and Advertising, Chapter 17 .) Signs and exterior lighting will be designed to meet City Code. 8. Required Yards and other Open Space. Show building setbacks and areas of open space on site plan. 9. General compatibility with adjacent properties and other property in the surrounding Zoning District as well as consistency with applicable provisions of the Comprehensive Plan. Proposed development is compatible with adjacent properties and will comply with the comprehensive plan. Other information you may wish to provide: ----------------------- CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Tree ordinance revisions SUBMITIED BY: Michael Griffin, CBO, CFM ~ Building and Zoning Director DATE: January 27, 2014 1\0 ENDA ITRM II 8B MARC II10,2014 STRATEGIC PLAN LINK: Goa l to consider possible changes to tree ordinance BACKGROUND: The City Commissio n as a part of the Strategic Planning process asked for a review of Chapter 23 Protection of Trees and Native Vegetation. Including an assessment of the Tree Ordinance as described. "Background and Description: This goa l is to consider possible amendments to the City's tree ordinance. Some citizens have approached t he City Commission with concerns that the tree canopy may be d isappearing in At lantic Beach and that the City's tree ordinance regulating the remova l of trees in connection with construction projects shou ld be strengthened and expanded. A second request was that regu lations on removing boundary trees (trees along property lines) should be discussed. The goal is to consider what, if any, changes may be necessary and desirable." On January 21, 2014 the Community Deve lopment Board (see attached staff report and draft minutes) discussed this issue and determined the current regulati ons may be strengthened by extend i ng the allowab le required time for tree mitigation If deve lopment occurs following removing any tree from six months to twelve months. Additionally, the Community Development Board discussed boundary trees (trees along property lines) and determined, with a recommendation from the City Attorney's office, and staff that boundary trees if damaged or removed without both property owner's permission shou ld be a civi l matter hand led by current Florida property rights law. BUDGET: No impact RECOMMENDATION: Accept Community Development Board recommendation to extend the six month time l im it for tree mitigation to twelve months In Chapter 23 Protection of Trees and Native Vegetation and request staff to draft an ordinance to amend . ATTACHMENTS: January 21, 2014 Community Development Board minutes and staff report. AGENDA ITEM# 8B MARCH 10,2014 2) Recommend a list of trees that should be protected from removal unless approval is given based upon extenuating circumstances. A listing as below of protected trees may be developed and removal of such trees could be regulated. The trees below could be included in the definition of Heritage Tree. Species Common name Diameter breast height Juniperus virginiana Eastern Red Cedar 30" Magnolia grandiflora Southern Magnolia 30" Quercus virginiana Live Oak 30" Quercus laurifloia Laurel Oak 36" Quercus phellos Willow Oak 36" Acer rubrum Red Maple 36" Taxodium distichum Bald Cypress 30" Ilex opaca American Holly 20" Comus florida Flowering Dogwood 15" Cary a Hickory (except pecan) 36" 3) Recommend permits be requiredfor the removal of any regulated tree regardless of intention to develop the property and to mitigate for the removal. A list of regulated trees is located in the tree ordinance under Section 23-8 Definitions. This would encumber property owners to develop a site plan for permitting and review showing all trees that exist on-site including trees that will be removed so that staff may determine mitigation requirements. This is also adding additional work to City staff for review/permitting/inspection and record keeping of the removed trees. Below are tree permitting requirements for surrounding jurisdictions. Jacksonville-Tree removal permits are required for any protected tree which is any tree with a diameter breast height of six inches or more located on any lot within 20 feet of a street right of way or a tree with a diameter breast height of eight inches or more located within ten feet of any other property line, or a tree with a diameter breast height of 11.5 inches or more located elsewhere on the property. Neptune Beach-Tree removal permits are required for any protected tree greater than six inches or more in diameter or two feet in circumference. Palm and pine trees are excluded from permitting. Heritage and Champion trees which are basically as described above in our proposed definition may only be removed by approval of the Community Development Board, or if a part of a new subdivision by the City Commission. Jacksonville Beach-Tree removal permits are required for any protected tree which is any tree with a diameter breast height of more than 6 inches. There are exceptions for pine and a palm trees 2 Draft Minutes of the Jamtmy 21, 2014 regular meeting of the Community Development Board 6. REPORTS. AGENDA ITEM# 8B MARCH 10, 2014 A. Tree Ordinance. Michael Griffin stated that the City Commission as a part of the Strategic Planning process has asked for a review of the Chapter 23 Protection of Trees and Native Vegetation. This includes an assessment of the Tree Ordinance as described. This goal is to consider possible amendments to the City's tree ordinance. Some citizens have approached the City Commission with concerns that the tree canopy may be disappearing in Atlantic Beach and that the City's tree ordinance regulating the removal of trees in connection with construction projects should be strengthened and expanded. A second request was that regulations on removing boundary trees should be discussed. The goal is to consider what, if any, changes are necessary and desirable. The first issue is regarding permit issuance. Staff comments are that there are three possible options: 1. Recommend no changes to the existing tree ordinance. 2. Recommend a list of trees that should be protected from removal unless approval is given based upon extenuating circumstances. 3. Recommend permits be required for the removal of any regulated tree regardless of intention to develop the property and to mitigate for the removal. Sylvia Simmons suggested that they review other municipalities tree ordinances and also stated that all trees are not equal. The board all agreed that there should be more community education regarding trees. Mr. Griffin stated that staff recommends changing the code regarding Section 23-22. Exemptions from the requirement for a permit. This section allows trees to be removed without the issuance of a tree permit so long as no development (valued at less that $10,000) will occur on the property within 6 months subsequent to the trees being removed. Any trees removed with a tree permit will be required to mitigate for any removed trees. However, trees removed without a tree permit are not required to be replaced with mitigation unless construction is commenced with 6 months from the date of tree removal. The change he recommends is to replace the 6 months verbage with 12 months. Harley Parkes made a motion to change it to 12 months and Linda Lanier seconded the motion. It passed unanimously. The board also agreed to have no action on the second matter regarding boundary trees. 7. ADJOURNMENT-7:35 PM Page 4 of5 City of Atlantic Beach Building and Zoning Department 800 Sem in ole Road At lanti c Beac h, Flor ida 32233 Telephone (904) 247 -5800 rax (904) 247-5 805 www.coab .us Memorandum To: Ne lso n Van Lierc , inte rim City Man age r Fro m: Mi chae l Griffin , CBO, CFM Buildi ng and Zo nin g Director ~ Da te: Feb ru ary L3, 20 14 Re: Sign Code Amo rt iza ti o n for January I, 20 15 UPDAT ED MEMORANDUM AG I~NDJ\ ITEM It 8C M J\RCI I 10,20 14 As you are aware, in September o f 2002 , the City co mpleted a s ub stan ti ve re-write or Chapter 17 or the City Code sign regul atio ns. One of the more sign ificant c hanges made was to es tabli s h a maxi mum hdghl of eight feel for new free standing signs, and a max imum widt h of twelve feet. The City a lso provided a s unset provision, requ irin g signs to come in to complian ce wit h the amended regu lation s by Septembe r 09, 2012 . On Sept em ber 26 , 20 ll the City extended the dale of co mplian ce to Janu ary I . 20 15. Therefore, s taff will commence wi th a s ign invento ry , within the next lew weeks, o f signage througho ut lhe City. The allachcd notice wi ll be se nt lo a ll sign o wner s th a t are not in compl iance informin g th em or Lh e requirements. T hose s igns th at are not in co mplian ce by .Janu ary 1, 20 15 wi ll be sent official notice to make correcti o ns or code enforcement ac tio n m ay be ta ken. UPDATE-Buildjng and Zoning has compl eted a survey of non-co nlorm i11g signagc Rnd found th a t approximately 60 s ign s continue to exist and a pproxi mately 20 sign s have been remed ied. Allached is a lis t of th e no n-co nfonn in g sign s wi th addresses and we have noted thtJ permi.t number for s ign s th at have been brought i nto com pl ia nce. Bui ld in g a nd Zon in g is ready to send the attached leiter to propett y owners UHlt rema in in vio lati o n. Pl ease le t me know if we s ho uld proceed . l fyou have any q uest io ns, or need ad diti ona l inlbrma tion please let me kno w. Address 297 Aquatic Dr 363 Atlantic Blvd. *363 Atlantic Blvd. 375 Atlantic Blvd. 403 Atlantic Blvd. 425 Atlantic Blvd. 435 Atlantic Blvd. 469 Atlantic Blvd. 501 Atlantic Blvd. 535 Atlantic Blvd. 599 Atlantic Blvd. 615 Atlantic Blvd. 619 Atlantic Blvd. 675 Atlantic Blvd. 715 Atlantic Blvd. 719 Atlantic Blvd. 725 Atlantic Blvd. 751 Atlantic Blvd. 801 Atlantic Blvd. 815 Atlantic Blvd. 835 Atlantic Blvd. 1021 Atlantic Blvd. 1031 Atlantic Blvd. 1051 Atlantic Blvd. 1067 Atlantic Blvd. 1071 Atlantic Blvd. 1073 Atlantic Blvd. 1075 Atlantic Blvd. 1079 Atlantic Blvd. 1089 Atlantic Blvd. 1099 Atlantic Blvd. 1177 Atlantic Blvd. 37 W 8th Street 1 Fleet Landing Blvd 1541 Main Street 1575 Main Street 120 Mayport Road *160 Mayport Road 310 Mayport Road 499 Mayport Road 501 Mayport Road 510 Mayport Road 645 Mayport Road 660 Mayport Road 680 Mayport Road 750 Mayport Road List of freestanding and wall signs Type ofBusiness Beaches Aquatic Shoppes of Northshore Shoppes of Northshore Prudential Realty Permit #06-32923 Radio Shack Salt Air Motel McDonalds Subway Strip Mall Beach Diner Strip Mall Eakin and Sneed Attorneys Coral Reef Animal Hosp. Permit #03-26553 Monahan's Calvin Cole Day Spa BPGas Dunkin Donuts Permit #07 -1461 North Beach Center (2) Permit #03-26501 Atlantic Theaters Jax Federal Permit #07 -78 8 Pizza Hut Permit #09-793 Sea Breeze Car Wash Atlantic Shopping Center Permit #13-3473 Wells Fargo Permit #10-1393 Advance Auto Parts Jiffy Lube Permit #10-255 Pier 1 Imports Permit # 11-2434 Atlantic Storage Doggie Day Care Permit #08-1694 Strip Mall Strip Mall Pawn Shop Irrigation Business Wilson Trailers Fleet Landing Permit #10-1227 Solar Business ABC Business Center Singleton's Trailer Park Harbor Tavern Atlantic Storage Chinese Food Hanna Park Food Mart All Star Automotive Permit #04-28532 Multi-office Complex Strip Business Center Atlantic Beach Assembly Permit #06-33992 Tropic Air Conditioning AGENDA ITEM# 8C MARCH 10,2014 801 Mayport Road 980 Mayport Road 980 Mayport Road 1001 Mayport Road 1110 Mayport Road 1130 Mayport Road *1130 Mayport Road 1050 Mayport Road 1197 Mayport Road 1200 Mayport Road 1211 Mayport Road 1221 Mayport Road 1260 Mayport Road 1400 Mayport Road 1420 Mayport Road 1500 Mayport Road 1600 Mayport Road 1650 Mayport Road 1770 Mayport Road 1790 Mayport Road 1850 Mayport Road 1919 Mayport Road 1939 Mayport Road 1996 Mayport Road 2383 Mayport Road 2389 Mayport Road 2401 Mayport Road 2405 Mayport Road 2425 Mayport Road * 25 Royal Palms Dr. 295 Royal Palms Dr. *31 Seminole Road 31 Seminole Road 32 Seminole Road 28 Sherry Drive Signs in Right of Way 297 Aquatic Dr 657 LevyRd 1200 Mayport Road *Non-conforming Wall Signs Updated Feb. 6, 2014 Texaco Billboard Pylon Sign (Old Beaches Custom Auto) US Post Office Car Wash Auto Clinic Strip Mall Business Auto Clinic Strip Mall Business First Baptist Safari Gas Permit #processing AEGI Engineers (sign in R/W) Mayport and Simmons Road) BP Gas Permit #04-29364 Strip Mall Business Atlantic Imaging Atlantic Motor Sports Specialty Marine Hardees Citgo Gas U-Haul American Storage Roland's Seafood Food Mart Rick's Used Cars Stitches and Screens New Friendship Church Pan Am Storage Best Western Quality Inn Walgreens Kangaroo Cleaners & Seafood Kitchen ABC Liquors King Strip Mall King Strip Mall Sunnyland Laundry The Palms Beaches Aquatic RIW Permit #09-544 Permit #06-33333 Permit #09-1260 Permit #10-643 Levy Road Boat Storage (sign in right of way) AEGI Engineers (sign in R/W) Mayport and Simmons Road) AGENDA ITEM# 8C MARCH 10,2014 2-3-14 Steve Swain 149 Oceanwalk Drive South Atlantic Beach, FL 32233 Oceanwalk Association, Inc. Architectural Review Committee 1-28-14 Meeting -Richard Vinas, Chairman AGENDA ITEM# SD MARCH 10,2014 We approved your landscape plan for the previously approved circular drive way. Please notify the committee when you have completed this project. Best regards, Richard Vinas ARC CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AOENDA ITe M II RE MARCif 10,20 14 AGENDA ITEM : Robert Street Ditch -Approva l of Design Proposal Rick Carper, P.E., Public Works Director A-SUBM ITIED BY: DATE: January 31, 2014 STRATEG IC PLAN LINK: Stormwater Master Plan Projects BACKGROUND: During Budget workshops for the c urrent year, Staff was directed to contact FOOT to ascertain If a cost sharing agreement was possible for the desired bank stabilization project. Staff obtained a cost proposal for d esign of the proj ect from Hanson Professiona l Services, one of the City's General Engineering Consultants (GEe). Hanson was selected because they are also an FOOT GEC. After Staff review and revision, the draft proposal was submitted to FOOT for review. FOOT has committed to sharing costs for the proposed bank sta bilization project with Atlantic Beach paying for Design and Permitting and FOOT p ayi ng actual construction costs. The attached scope from Hanson Professional Services Is for design and permitti ng services that will then be constructed by FOOT. The fee proposed by Hanson for this work is $43,066.90, of which approximately $14,000 is for sub consultant work efforts (survey and geotechnical engineering). RECOMMENDATION: That the Commission authorize Staff to direct Hanson to proceed with design and permitting as discussed in the attached Scope Proposal. BUDGET: The current budget contains $50,000 In Stormwater Account 001-5002~541 - 6300 designated for Robert Street Ditch Im provements. ATIACHMENTS: 1. Roberts Street Ditch Scope of Services -Hanson REVIEWED BY CITY MANAGER:..._.:.....;/;.._ . ....;.'--.:'..;;11-'t__,:::::-'J...o. .... , ~,~,1'--------- Exhibit "A" SCOPE OF SERVICES Robert Street Outfall AGENDA ITEM# 8E MARCH 10, 2014 SR AlA I Mayport Road from Robert Street to Dudley Street Duval County I. DESCRIPTION The City of Atlantic Beach, hereinafter called the COAB, requires professional services for the preparation of a complete set of construction documents for the ditch improvements between Robert Street and Dudley Street in Duval County. The plans and specifications will conform to the FDOT Standards and guidelines. It is the Consultant's responsibility to utilize the very best engineering judgment and practices during prosecution of the work commissioned under this contract. The Consultant shall demonstrate good management practices while working on this project. These include communication with the COAB, the FDOT and others as necessary; documentation; and management of time and resources. The Consultant shall set up and maintain a contract file throughout the design of the project. II. BACKGROUND The FDOT ditch work area is approximately 550 linear feet in length beginning at Robert Street and terminating at Dudley Street. Within this area, there are a number of areas exhibiting bank erosion and shoaling, which the COAB wishes to correct. The ditch currently has vegetated embankments. III. OBJECTIVES The Consultant has been requested by the COAB to provide a complete set of construction documents for the following ditch improvements: • Stabilization and regarding of both banks and bottom of ditch from Robert Street to Lewis Street and from Lewis Street to Dudley Street in an effort to recreate the historical cross sectional area. Stabilization is proposed to be achieved through use of a Geoweb Channel Protection System. This is a cell containment system with topsoil in fill to stabilize the 1.5:1 embankments. Additional non-standard anchorage is required at the crest of the slope due to limited right-of-way width. • Complete and submit all required permit applications to The St. Johns River Water Management District (SJRWMD) and the Army Corps of Engineers. No flow HANSON PROFESSIONAL SERVICES INC. 1 OF 2 AGENDA ITEM# 8E MARCH 10, 2014 analysis is included in this effort. It is anticipated that there will not be a need to demonstrate to the SJR WMD that proposed improvements will not adversely affect drainage conditions, both upstream and downstream ofthe project area and complies with the COAB Master Stormwater Plan. The original construction plans will be provided as evidence of this project falling under a maintenance dredge classification. The permit application with the SJRWMD will be filed as a Notice General ERP Permit. • COAB Design Submittals to be at 30%, 60%, 100% and Final milestones. IV. DELIVERABLES TO INCLUDE: • Survey tasks will include Topographic Survey from Robert Street to Dutton Island Road and establishing Right-of-Way lines and preparing Temporary Construction Easements (TCE) as necessary from Robert Street to Dudley Street. • A geotechnical exploration will be performed to provide subsurface data to evaluate potential dredging conditions and erosion control measures. This effort will include 2 Standard Penetration Tests (SPT) for slope stability and 2 hand auger borings to determine subsurface soil conditions. The geotechnical analysis will include determination of native soil properties such as angle of internal friction, cohesion, unit weight and angle of shearing resistance. • Construction Plans will be prepared in accordance with COAB, FHW A and FDOT Standards, policies, procedures, memorandums and directions from the Department's Project Manager for the COAB and FDOT. Construction plan set will include: o Cover Sheet o Typical Section Sheet o General Notes o Project Layout o Plan/Profile Sheets (to also reflect erosion control features) o Miscellaneous Drainage Detail Sheets o Cross Sections-Assumes@ 50' intervals • Drainage Technical Memorandum • Complete Project Specifications including the Geoweb Channel Protection System • Preparation of quantities and Engineer Estimates HANSON PROFESSIONAL SERVICES INC. 2 OF 2 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGL::NDA IT ~M II Ili· MAR Cil 10 ,20 111 AGENDA ITEM: Rose Park Improvements -Dog Park Completion Rick Carper, P.E., Public Works Director P-SUBMITTED BY: DATE: January 29, 2014 STRATEGIC PLAN LINK: No link . BACKGROUND: At the January 27'h Workshop, Staff briefed the Commission on f unding needed for completion of the Rose Park dog park. The proposed scope of work will replace the existing wood picket fence with a decorative metal fence, similar to that Installed along theW. Plaza Drive side of Rose Park, an electronic access system and controlled gate, a dual leve l water fountain, sod and irrigation system modifications. Intent is to remove the existing p layground and play area border using City Forces before the fencing portion Is constructed, then modify the existing irrigation system and install new sod in the play area . The consensus of the Commission at the Workshop was to reallocate funds from the proposed Bu ll Park Gazebo ($40,000 in account 001-6020-572-6300) to pay f or these improvements. BUDGET: The $225,000 budget for Rose Park Improvements has been expended or is obligated (awaiting co mpletion of fina l punch li st items and submission of contractor 's final pay reque st). Additional funds will be required wi th reallo ca tion discussed above as an option for fund ing th e remaining dog park work. RECOMMENDATION: Authorize the City Manager to move $40,000 in account 001-6020-572- 6300 from Project PM1402 (Gazebo) to Project 1302 (Rose Park). ATTACHMENTS: 1. Rose Park Dog Park Construction Estimate CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT 1\ClENI>A 1'1 EM II SG MI\R CIII0.201il AGENDA ITEM: Options for City Sani tation Contract SUBMITTED BY: Rick Carper, P .E., Public Works Director ;U_, DATE: February 7, 2014 STRAGTEGIC PLAN LINK: None BACKGROUND: The City's Sanitation Contract with Advanced Disposal (ADS) expires on May 31, 2014. Because of ongoing discussions wi th COJ regard ing possible so lutions to the tipping fee issue , ADS , a t AS 's request and as reported to the Commission in November, agreed to a three mon th extension of the contract. After three months, the extension becomes month by month, with a minimum 90 day notice of intent to modify that agreement (attachment 1 ). There are three primary options for the City's Sanitation Pickup a nd Haul Contract for the Commission to consider. This staff report does not address any aspect of prior tipping fees . 1. Extend the current contra ct with Advanced Disposal (ADS) (attachment 1 ): The current contract specifica ll y a llows extensions (see attachm ent 4) as agreed to by the City and the Hauler. Pro: Rate offered by ADS in attachmeht 2, (currently $15 .7911 residence per month); will now include the lan dfill tipping fee, resulting in an effective residential rate of approximately $11.33 I residence per month (based on 2013 actual tonn age hauled to Trail Ridge Landfill); As part of the extensi on proposal, ADS offers to Implement single stream , toter recycling at no additional cost: Known, excepti onal level of service , including fu ll time supervisor in town whenever an ADS truck is performing residential pickup of any kind ; Con : Proposal does not commit contractor to buying all new vehicles as would be required if the contract is rebid . 2. Rebid the contract: Pro: Open competition; allows modification of current standards for coll ecti on if desired (no s ignificant changes other th an switc h to toters for recycling proposed at this time); Con: As evalu ated by Redman Consultin g Group (attachment 3), would probably not result in better pricing than proposed in the ADS extension offer; Bid preparation costs estimated to be .$8 ,000 to $10,000 for consult ant services (bid document preparation , evaluation of b id s and negotiations wi th selected hauler), plus significant staff time required for a ll phases including transition efforts if a new hauler selected. 3. Accept the COJ offer to provide Pickup and Haul services: (would result in shift to Southland I Republic Services and fully automa ted collection of trash). AGEN DA ITE M H 1!0 M/\RCII10.201 ·1 Pro: Fixes rate at the Jacksonville Residential Rate of $12.65/ residence per month which includes tipping fee (actual payment to hauler is -$10.59); For additional cost ( .... $1 .15/ residence per month), Republic Services wou ld provide a full time, in town Supervisor. Con: AB loses control of directly resolving problems with garbage collection ; all problems are reported by calling the COJ Care line (630-CITY); No protection against rate increases (City would pay same rate per residence as COJ residents , limited by Ordinance to max of $18 .00/month); AB would still have to rebid Commercial (dumpster) pickup contract, probably resulting in higher rate because of separation from residential contract. This may result in two separate haulers performing sanitation duties in AB; Some areas of AB are not suited for automated collection because of trees along the residential roadways , With automated collection, either residents wou l d need to change toter placement to an area where there would be no overhead issues or the City wou ld need to spend time and money to trim trees and continue to keep them trimmed therefore add ing additional pressure on the budget and manpower. Fully Automated method has driver only in collection vehicle, trash I garbage must be in toter to be coll ected, material on the ground would not be picked up. Hau ler would not be responsib le for repairs or replacement of City owned toters res ul ting in additional work load on City Forces; Recycling collection will become biweekly, with 96 gallon toters. Hauler stated that recycling toters provided would be repositioned from existing customers swapped under COJ proposal, not new toters and will belong to COJ, not AB. Note: Staff anticipates sh ift to toter pickup for single stream recycl ing for all three options, (65 gallon toter with weekly pickup if ADS, 96 gallon toter with biweekly pickup if Republic, if rebid , AB can specify required option). Single stream recycling with toters has been shown to provide a significant increase in recycling rate, reducing the amount of trash taken to the landfi ll , while also reducing amount of wind borne litter originating from open recycling bins. BUDGET: Sanitation services are budgeted in account 420-4201 -534-3401 (Pickup and Haul Contract), with original budget of $1,250,000. Balance after four months of service is approximately $833,000 . RECOMMENDATION: Staff recommends exercising the option for extension contained in the current contract with Advanced Disposal Contract for seven years and authorizing the City Manager to negotiate the extension for the City. ATI ACHMENTS: 1. Existing Month to Month Extension with ADS 2. ADS Proposal Regarding Extension of Existing Solid Waste Contract. 3 . Redman Consulting Group Evaluation of the ADS Proposal 4. Excerpt from Existing Contract regarding Extensions REVIEWED BY CITY MANAGER: -77 U--,_ ;«~-../ Advanced Disposal November 4, 2013 Mr. Rick Carper Public Works Director City of Atlantic Beach 1200 Sandpiper Ln. Atlantic Beach, FL 32233 AGENDA ITEM# SG MARCH 10, 2014 RE: Agreement Between the City of Atlantic Beach and Advanced Disposal Services Jacksonville, LLC for Solid Waste, Yard Waste and Recycling Collection and Disposal Services Dear Mr. Carper, On May 31, 2007 Advanced Disposal Services entered into the above referenced Agreement for a seven (7) year term until May 31, 2014. As discussed, Advanced Disposal would agree to extend the agreement for an additional three (3) month period. After such time the agreement would then extend for one (1) month on a month to month basis. Any modification to the extension agreement must be made ninety (90) days prior to the date to be modified. This letter is to agree to the terms listed above upon council approval. Sincerely, Chris Hagan Municipal Marketing and Governmental Affairs Cc: Jim Hanson 7580 Philips Highway • Jacksonville, FL 32256 tel (907) 731-3440 • fax (904) 731-7094 • www.AdvancedDisposal.com Printed on reclfcled paper. Please recycle. ~::, January 22, 20 14 Rick Carper Public Works Director City of Atlantic Beach 1200 Sandpiper Ln Atlantic Beach , FL 32233 Mr. Carper, AGENDA ITEM II 80 MAR Cil 1(), 20 14 Per our conversation on January 16, Advanced Disposal would like to continue our relationship with the City of Atlantic Beach and renew our existing agreement. 1t has been stated several times by city staff and city officia ls that Advanced Disposal provides exceptional service. This service provides for an onsite supervisor during the hours of operation, 95 gaiJon carts with city logo, curbside recycling, curbside yard waste and commercial pickup for tbc businesses within the c ity limits. If the City of Atlantic Beach were to extend the existing agTeement at its current rate, Advanced Di sposaJ wou ld then agree to provide ali of the services listed abov e as we ll as placing an additional 65 gallon recycling cart for all residences within the city limits . Advanced Disposal will a lso agree to pay aJl disposal fees related to the resident ial collection in the City. Tbe current contract between Advanced Disposal and The City of Atlantic Beach expires May 31, 2014. As discussed~ we would like to extend the em-rent contract for an additional 7 years. We Jook forward to providing the quality service you have come to expect and continue our mutual ly beneficial relationship . Thanks again for youJ Ume and please do not hesitate to call my cell at (904) 219-9842 ifl can be of any assistance. Sincere ly, Chris Hagan Municipal Marketing and Governmenta l Affairs 90 Fon Wade Road, Suite: 200 Ponte Vedra, Fl 32081 Tel (901'll 737-7900 FaH(904)636-0699 AdllancedDispos<ll.c;om Consulting, In' February 3, 2014 Mr. Rick Carper Director of Public Works 1200 Sandpiper Lane Atlantic Beach, Florida 32233 Subject: Solid waste collection rate review and comparison Dear Mr. Carper: AGENDA ITEM# 8G MARCH 10, 2014 As per your request our company has reviewed the various rates and the types of services provided for in the various municipalities as set forth in the City of Jacksonville (COJ) auditor general's report you supplied us. What we found was the rates within that report reflected the rates which those various municipalities charged each residential unit as opposed to what those municipalities actually paid the contractors for providing those services. What we found was a very wide range of charges to the actual customer versus what those municipalities actually paid for those services. Also, we found a wide range of additional costs in the form of disposal cost where some of the municipalities included the disposal cost and others charged the resident a separate line item as an additional cost for disposal. One example used by the COJ auditor was Palm Beach County where the cost for collection of the various categories of waste was $12.60 per month per resident plus the County billed on the tax rolls an additional cost for disposal in the amount of $174.00 annually or equal to $14.50 per month per residential unit. See attached spread sheet. As we investigated further we found the average cost, for the municipalities showing a combination of collection and disposal, to be $21.32 per residential unit monthly. The municipalities which did not show the disposal cost was $12.99 per residential unit monthly. Once we calculated the various disposal costs throughout those areas we found the average disposal cost to be $6.23 per residential unit monthly making the average monthly cost in the amount of $19.22 per residential unit monthly. After reviewing the local area pricing and services we found the disposal cost, based on actual tonnage reports and the disposal cost at COJ, to equal $4.46 per residential unit monthly. Adding this amount to the average of the area pricing of$12.99 per residential 7{)11 S. Atl~ntie Ave:nue • New Smyrna Beach, fL ~216\l • Offl~e: 300-427:-9$$9 • Fax: 38&427:4549 •· y,· •. • ·•• · ····. ~itg~ti~on\· · · · .·· ·· ·· ··· ··· · ····· AGENDA ITEM# 8G MARCH 10, 2014 unit monthly without disposal cost for a total average cost of $17.45 per residential unit monthly. We have taken this a step further by calculating what the effect may have on the current cost pricing for Jacksonville Beach and Neptune Beach if their service was reduced from 2 x per week waste collection, 1 x per week yard waste and 1 x per week recycling to 1 x per week waste collection, 1 x per week yard waste collection and 1 x per week recycling. We assume that change in service may have as much as a 20% cost reduction then making all things equal by adding in the disposal cost. The City of Jacksonville Beach's cost with a disposal component would be $16.25 and the City of Neptune Beach would be $16.12. The average ofyour two sister Cities with a reduction in service levels including a disposal cost would be approximately $16.19 per residential unit monthly. See attached spread sheet. Conclusion: The letter of offer from your current waste collection company, Advanced Disposal as per their letter dated January 17, 2014, for a rate of $15.79 per residential unit monthly including disposal is 2.5% lower than the estimated rate of your sister Cities if they choose to allow a reduction in service. Your actual cost for collection would be $11.33 without disposal which is 28% lower than your present rate. Based on the comparison of various municipalities and the quality of service being delivered from your current waste collection company it would be our opinion the City of Atlantic Beach would not receive better pricing by going through the competitive bid or request for proposal process. The key is for you and the City to decide if you are pleased with the level of service you are receiving for your residents and businesses and if the price is a fair price. Our conclusion; the pricing is a very fair price. You may want to seek a moratorium on any Consumer Price Index (CPI) increases for a minimum of 2 years on a 7 year renewal. The CPI forgiveness should not be an accrued amount, it should be a true forgiveness and as a result starting the CPI increase at the beginning of the third year. If you have any questions please do not hesitate to call on me. We would be available at any time to meet with you and the City Manager or City Attorney if they would like to discuss this issue further. Sincerely, William S. Redman Senior Vice President CONTRACT AND FRANCHISE AGREEMENT FOR SOLID WASTE, YARD WASTE AND RECYCLING COLLECTION AND DISPOSAL SERVICES (Excerpt) SECTION 6 -CONTRACTOR'S RELATION TO THE CITY I. EXTENSION OF CONTRACT AGENDA ITEM# SG MARCH 10,2014 The initial term of this contact may be extended for additional seven (7) terms, under the existing terms and conditions or as modified through additional negotiations, if either party notifies the other in writing, not less than 180 days prior to the expiration of the initial term or subsequent term, of the party's desire to renew the contract. This contract may be extended by mutual consent of the parties. Any extensions or modification of the initial contract shall be ratified by the Atlantic Beach City Commission. CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGEN DA ITEM II 811 MARCIII0,20Jil AGENDA ITEM: Donner Park Baseball Field Improvements CDBG 2014 Rick Carper, P.E., Public Works Dit·ector flL... SUBMITTED BY: DATE: February 13, 2014 STRATEGIC PLAN LINK: CDBG Grant Projects for Mayport Road Area Improvements BACKGROUND: Bids were opened for the Donner Park Baseball Field Improvements COBG 2014 (PM1403) Bid 1314-04 on Wednesday February 5th . One (1) bid was received which exceeded the authorized budget. Core Construction submitted a bid for $122,602.00 . Staff has evaluated the bid and determined that it is feasible to reach the budgeted amount ($75,000.00) by removing most requirements for Outfield Reconstruction aspect of the project. This will require authorization to negotiate with the one bidder on the terms of the bid award. Upon initial discussions with Core Construction, it was determined with the requirement changes to outfield reconstruction and completion of the remaining aspects of the project the job could be completed fo r $73,802 .00. Without the outfield reconstruction the field will sti ll be greatly improved and become a tournament re ady field for ABAA to use which is the driving force for this project. The outfield is currently safe and playable and can be rebuilt at a later time. CDBG grant r:>rojects require a Mandatory Pre-Bid Me eting which was held on January 23. Five (5) construction companies attended . As stated, only one (1) submitted a bid . PW requested a No Bid Form response from the four (4) other companies present at Pre-Bid . Responses were received from two (2) of the companies, Callaway Contracting and Hager Construction Company. Based on analyzing the project requirements and response from the companies, rebidding would probably not lower the price and wou ld on ly delay the project, as there is no guarantee more bids would come back. Consultation with COJ CDBG staff confirms that because awarding a bid to the sole bidder is allowed with COAB purchasing standards, this would be an authorized contract award and shall be eligible for COAB reimbursement. This is a unique project that is not a typical construction company's focus and the CDBG Section 3 documentation requirements can be a deterrent to some companies bidding . The no bid responses are attached . BUDGET: A total of $75,000 .00 was budgeted in the FY 2014 for this project (account 001 -6020-572-6300, PM 1403). RECOMMENDATION: The Commission authorize s staff to negotiate with Core Construction to bring cost within budget as discussed above and authorize the City Manager to approve negotiations up to the budgeted amount. Alternatively, th e Commission may reject the bid and the City will rebid the project. ATTACHMENTS: 1 . 2. 3. Bid Tab No Bid Form: Callaway Contracting No Bid Form : Hager Construc!ion '--/ _,., REVIEWED BY CITY MANAGER: __ ~'·..:../._ . ...;..t""'-...:.:r:......:.a.:o.:a:::......;;:;v<--~a:c ... =--~t'--------- DONNER PARK IM PROVEMENTS CDBG 2014 BASEBALL FIELD UPGRADES PHASE II BID NO 13 14-04 NO BID FORM AGENDA ITEM ll 81 I MAR Cil 10,201 11 If your firm cannot submit a bid at this time please provide the information requested in the space provided below and return to Patty Drake Purchasing Agent City of At lantic Beach pdrake@coab. us Fax : 904-247-5819 We have received the Invitation for Bid No . 1314-04 ope nin g date February 5, 201 4. We were unable to submit a bid at this time for the foll owing reason s: At the time we attended the pre -bid meeting . we were unaware of the scope. After learning the scope. it was determined that this size project would not be feasible for us to compete verv well. In addition, the Section 3 requirements ca n be challenging for us to me et. We appreciate the opportunity and we lool< forward to future CAB lettings. Name of Firm : Callaway Contracting Address: 10950 New Berlin Road Jacksonvi ll e. FL 32226 Name and Title : J. David Hinson Signature : DONNER PARK IMPROVEMENTS CDBG 2014 BASEBALL FIELD UPGRADES PHASE II BID NO 13 14-04 NO BID FORM AGE NDA ITEM II 81-1 MAR CIII0.2014 If your f irm cannot submit a bid at this time please provide the information requested in the space provided below and return to Patty Drake Purchasing Agent City of Atlantic Beach pdrake@coab.us We have received the Invitation for Bid No:~~12-~i-~~Jn~~1 9ate February 5, 2014 . We were unable to submit a bid at this tim e for the following reasons : We did not have enough time because we are currently working on bidding East Coast Drainage Im provements of Atlantic Beach . Name of Firm : Hager Construction Company Address : 2 03 7 Gilmore Street Jacksonvill e, Fl. 32204 Name and T itle : Katherine Johnson --------------- Signature: Katherine Johnson ______________ _ CITY OF ATlANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITgM #!!I MARCil 10, 20 1·1 AGENDA ITEM : Pub lic Works Building Ca nopy Replacement Rick Carper, P.E., Public Works Director ~ SUBMITTED BY : DATE: February 13, 2014 STRATEG IC PlAN LINK: None. BACKGROUND : I n October, aft er Staff n ot ed significa nt corr os ion on vi si bl e members, an engin eering eva lu ation of the Public Works building east face canopy was performed. The eva lu ation revea led the canopy to b e in ve r y poor condition w ith se vere deterioration of beams an d co lumns and rusted areas around screw penetrations in the roof deck. In telephone co nversat ion with th e in specto r during report preparation, he urged replacement of t h e roof before the next storm season . To get an idea of cost to perform the necessary repairs, Staff consulted w ith Harrell Cons truction and requested a n inspection and quote. The recommended repair, to remove and replace the ex isting ca nopy was $68,700. Less preferred alternatives were t o 1) remove entire canopy without rep lacement -$16,540; or 2) to remove entire canopy a nd rep lace only the ca n opy over the fu el ing area -$31,300. BUDGET: Th ere are n o funds b udgeted for a repa i r of this magnitude. A budget mod w ould be requ i red. RECOMMENDATION: Staff recommends a budget modification too add $75,000 to PW Admin acco unt 001 -5001-541-46001 Repair and Maintenance to allow a 10% continge ncy on th e proposed r ep airs ATTACHMENT: (1) Hurlsb erg Engin ee rin g Eva l ua tion Report (excerpt) Re: 1200 Sandpiper Lane November 4, 2013 Page 2 of2 photographs 4 through 17) AGENDA ITEM # 8I MARCH 10, 2014 Overall this structure is in very poor condition. In the event of strong winds from a thunderstorm this area could collapse. The zee purlins that support the roof panels are light gauge material. These are severely deteriorated in some locations and in my opinion cannot be repaired. The beams and columns are deteriorated but they can be repaired by welding new steel plate to the damaged areas. Based on the rusted areas around the screw penetrations in the roof deck it will also need to be replaced. Conclusions: The roof deck and zee purlins supporting the roof will need to be replaced. Although the steel beams and columns are repairable, it may not be a cost effective solution. To prepare the steel for repairs and painting, a white metal sandblasting (SSPC-SP-5) would be required. This would be followed by the repairs and a paint system designed to resist the exposed environment in this location. This type of surface preparation and paint system can be very costly on site. It may be less expensive to replace the whole system with new material and a shop applied paint system that is specified for this exposure. I would suggest metal building manufacturers as a provider for this type of structure. CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AMENDED 1\Gl!ND/\ ITEM II SJ MARCil 10,20 111 AGENDA ITEM: Engineering Design of Storm water Improvements for the Saltair Neighborhood (RFP #14-02) SUBMIITED BY: Rick Carper, P.E., Public Works Director J1-C., DATE: February 20, 2014 STRATEGIC PLAN LINK: 12. Stormwater Master Plan Projects BACKGROUND: The Public Works Department advertised a Request for Proposals (RFP) for Professional Engineering Services for Final Engineering Design for Stormwater Improvements the Saltair Neighborhood and Sidewalk on Sturdivant Avenue (RFP #14- 02), receiving seven proposals. The firms that submitted proposals were Applied Technology & Management (ATM), Ayres Associates; CPH Engineers, Edwards Engineeri ng, Eisman & Russo, Genesis Group and Hanson Professional Services . After staff evaluation, the top three firms were ranked in the following order: 1 st _ Ayres Associates 2nd -Edwards Engineering 3rd -ATM Ayres Associates was the top-ranked firm for several reasons. They were ranked at the top in all three major grading criteri a (project team, past similar experience and project approach). Their Project Team Includes engineers who have experience in stormwater retrofits, providing multiple examples of recent project experience similar to this project and the proposed project manager was the engineer with the most experience on this type of project noted on review of the RFPs. BUDGET: The current budget contains $380,000 for Engineering, Permitting and Construction of the storm water improvements in the Saltair neighborhood and sidewalk construction on Sturdivant Avenue ($250,000 from Account 470-0000-538-6300 and $130,000 from Half Cent Sales Tax Account 131-5002-541-6300 for sidewalk). RECOMMENDATION: Authorize staff to begin negotiations with the top-ranked firm, Ayres Associates, for engineering services for the Stormwater Improvements for the Saltair Neighborhood and Sidewalk on Sturdivant Avenue. ATIACHMENT: Evaluation of Proposals Rating Sheet (Proposals are on file at the City Clerk's Office) REVIEWED BY CITY MANAGER: __ 7....~./_._//::_a-..____:_.:.;..;1_:.......;~=-=--------- CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT 1\MENDf.D AGENDA ITliM /I &K MARC H I 0, 20 I '' AGENDA ITEM: Engineering Design of Stormwater and Streetscape Improvements for Seminole Road South of City Hall (RFP #14-03) SUBMITTED BY: Rick Carper, P.E., Public Works Director /lC DATE: February 20, 2014 STRATEGIC PLAN LINK; 12. Stormwater Master Plan Projects BACKGROUND : The Public Works Department advertised a Request for Proposals (RFP) for Professional Engineering Services for Final Engineering Design for Stormwater and Streetscape Improvements for Sem inole Road South of City Hall (RFP #14-03), receiving five proposals. The firms that submitted proposals were, Ayres Associates; C&ES Consultants, CPH Engineers, Edwards Engineering, and Genesis Group . After staff eval uation, the top thr ee firms were ranked in the following order: 1st-Genesi s Group 2nd-Ayres Associates 3rd -Edwards Engineering Genesis Group was the top-ranked firm for seve ral reasons . They were ranked at the top in two of the three major grading criteria (past similar experience and project approach). Their Project Team includes engi neers who have significant experience in stormwater retrofits, and the most experience with streetscaping, providing multiple examples of rece nt projects similar to this project. BUDGET: The current budget contains $490,000 for Engineering, Permitting and Con struction of the Stormwater and Streetscape Improvements for Seminole Road South of City Hall ($240,000 from Stormwater Account 470-0000-538-63 00and $250,000 from Half Cent Sales Tax Account 131-5002-541-6300). RECOMMENDATION: Authorize staff to begin negotiations with the top-ranked firm, Genesis Group, for engineering services for t he Sto rmwater Improvements for Stormwater and Streetscape Improvements for Seminole Road South of City Ha ll. ATTACHMENT: Eva lu ation of Proposals Rating Sheet (Proposals are on file at the City Clerk's Office) REVIEWED BY CITY MANAGER: __ /-..~..7_?.....;;~...;;;~~c..-~£..:.~__;=t'~-------- CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REI)ORT AGENDA ITEM: Crosswalk Enhan ce ments DATE: February 12, 2 01 4 ~u SUlJMlTTED BY : M ichae l D. Classey. C hiefof Po li ce SRATEGlC PLAN LI NK: N/A BACKGROUND: AO GNDA ITEM It 8L MARC il 10,20 14 T he Co mmi ssio n a ppr oved add in g a crosswalk at Se minol e and Dav id at th e Dece mb er meetin g. Fo ll owin g the a ppro va l, Co mmi ss ioner Hill req uested inform ation on in stalling a crosswa lk enhan ce ment at. this same in tersection. S tarr has co ndu cted researc h and the Recta ngul ar Rapid Flas h Bea~.:o n (RRFB) syste ms were identifi ed as an exce ll en t o pti on. Basica ll y t he Pedes trian Cross in g signs are in corporated in to the po le whi ch has 2 se ts of rectangular LED beaco ns th at fl as h when the crosswa lk butt on is activated. A p hotog raph of thi s ty pe system is atiached ro r rev iew. T hese sys tems repo rtedl y have a hi gher v isibility and co m pli ance ratin g with some ve ndo rs claiming an 80% or hi gher dri ver yie ld ra te. Oth er systems inc lud e ova l or oth e r shaped li ghts a nd a thi rd opti on :s to i nst all i n grotmd li ghting. These opti ons are e ither less vis ibl e or are o ld er tec hn ology. The RRFB system is purchased wiU1 a so lar power supply so insta ll ati on cos t woul d be less and th ere wo ul d be no need for a n ex tern a l power suppl y. T he pu rc hase and install ati on cos ts wou ld be approx ima te ly $11 ,0 00. The average ann ual mai ntena nce cos ts wo ul d be a bout $300. Base d upon the crosswa lk eva lu ati on da ta, thi s intersecti on is not expected to be at the to p o f th e li s t fo r a public safe ty justi ficat ion of the eq uipm ent. However, after di scu ss ion with Publi c Wo rks sta n: it may be a viab le opti on to be considered wi th tile Sem in ole Road Street sca pes Design. BUDGET: T here is curren tl y no bud get "for the purc hase or ma inte nance orthi s system. The initial purchase and in sta ll a tio n wo ul d be $1 1,000 wit h an ave rage an nu al mai ntenance cost of $3 0 0. RECOMMENDAT IONS: ror Comm iss ion review. ATTACHMENTS: Photograph of the R RFB system. REVIEWED BY CITY MANAGER : -;/,/. t a-, . .;:1'-?1..( AGENDA ITEM # 8L MARC il 10,20 14 Highlights Atlantic Beach Police Department Annual Report for 2013 AGENDA ITEM# 8M MARCH 10,2014 The police department completed three "Yield to Life; Look All-Ways" pedestrian and bicyclist safety campaigns this year; focusing on selected areas based upon crash data. The campaign raised a lot of awareness and several media outlets covered the campaign. Hundreds of safety pamphlets and t-shirts were handed out to citizens in conjunction with education by the police officers. Many local businesses participated by handing out brochures, hanging up campaign posters, and putting the campaign slogan on their outdoor signs. One full time officer remains dedicated to the COPS (Community Oriented Policing) program. This officer spends much of his time interacting with citizens within the community, building positive relationships, patrolling on a bicycle to allow more citizen interaction, and visiting the community centers and city parks on a daily basis. He contacts local transients and people in need to offer resources, and is a familiar face to most local business owners. The COPS officer works closely with other city departments on a regular basis such as code enforcement and the park rangers. The salary of the COPS position remains predominantly grant funded. The Atlantic Beach Police Department continues to have an exceptional emergency response time. The average emergency response for the 2013 year was 2 minutes and 55 second. The police department conducted a citizen satisfaction survey this year. They were asked to answer many questions regarding the quality of life, police service, interactions with police and their level of satisfaction. On a scale of 1 to 4 with 4 being the highest, the overall score was 3.4. 111 completed surveys from citizens were received. Prior surveys were administered in 2004 and 2010 with scores of 3.4 and 3.5 respectively. The department also began the planning and development of Citizen Police Academy. The CPA is scheduled to begin on March 6, 2014 and will run for 11 weeks. Crime Citywide, Part 1 crimes (murder, rape, robbery, aggravated assault, burglary, larceny and auto theft) have increased 14% in 2013 as compared to 2012 (418 crimes reported in 2013 as compared to 367 in 2012). However, that is still well below the 2011 figures which were 472. The 2012 statistics were artificially low due to a large multifamily complex which essentially was unoccupied most of that year for remodeling. It was reported at the end of2012 that the crime rate would be expected to rebound once the units became inhabited. • Sovereign Citizens • Criminal Patrol Operations • Dealing with Difficult Citizens • Advanced Roadside Impaired Driving Enforcement • Active Shooter Training • Interview and Interrogation Techniques • FDLE Evidence Training • How to Handle Conflict and Confrontation • Social Media and Internet Investigations Course • Before, During and After a Critical Incident Course AGENDA ITEM# 8M MARCH 10, 2014 Advanced training keeps employees current and on the cutting edge of Public Safety techniques, trends and strategies. The Department believes a better trained employee results in the delivery of a higher quality of service. The above list does not include classes taken by the employees who are enrolled in various college degree programs.